Charity Registration No. 1132781
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | D.R. Straus |
|---|---|
| C.J.S. Straus | |
| J. Stone | |
| Charity number | 1132781 |
| Principal address | Unit 10, Delta Court |
| Manor Way | |
| Borehamwood | |
| Hertfordshire | |
| WD6 1FJ | |
| Auditor | Marti Stenton ACA |
| Morris Palmer Limited | |
| Barttelot Court | |
| Barttelot Road | |
| Horsham | |
| West Sussex | |
| RH12 1DQ | |
| Bankers | Barclays Bank plc |
| Leicester | |
| LE87 2BB |
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 3 |
| Independent auditor's report | 4 - 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the financial statements | 9 - 15 |
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
TRUSTEES REPORT
FOR THE YEAR ENDED 31 OCTOBER 2020
The trustees present their report and financial statements for the year ended 31 October 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Herbert and Stefanie Straus Memorial Trust's deed of trust , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The Herbert and Stefanie Straus Memorial Trust's objects as set out in the charity's Trust deed are to provide grants to individuals and organisations for Jewish and non-Jewish causes for people in need. The polic ies adopted in furtherance of these objects are the charity's grant making policies and investment policies. T here ha ve been no change s in these policies during the year.
The trustees have had due regard to guidance issued by the Charity Commission in deciding what activities the Herbert and Stefanie Straus Memorial Trust should undertake.
The charity's main activity is to issue grants in accordance with its Trust deed and to invest in its listed investment portfolio to secure an income stream for the charity. The trustees have had regard to the guidance issued by the Charity Commission on public benefit throughout the period.
The charity has established its grant making policy to achieve its objects for the public benefit. The charity aims to provide grants to individuals and organisations for Jewish and non-Jewish causes for people in need. The grant making policy is reviewed annually to ensure that it reflects the charity's objects and thereby advances public benefit.
Achievements and performance
During the year, the charity invested £2,015,101 (2019 - £39,003) in its listed investment portfolios and will continue to invest in this way for the foreseeable future so as to provide a secure and long-term income stream that will enable the charity to continue to contribute to various good causes as intended.
During the year, the charity made donations to good causes in the sum of £45,000 (2019 - £75,000) in accordance with the charity's objectives.
During the year, income of £26,803 (2019 - £32,631) was received from the charity's listed investment portfolio and the future income stream can be seen to be encouraging.
Financial review
The charity's income in the year included £26,803 (2019 - £32,631) from listed investments, £nil (2019 - £nil) of other interest receivable, £625,000 (2019 - £nil) from donations, £nil (2019 - £nil) of other income and an overall loss of £51,005 (2019 - £87,674 gain) from the revaluations and gains/losses on investments. Total outgoing resources amounted to £54,882 (2019 - £83,834) resulting in a net surplus for the year of £545,916 (2019 - £36,471).
As at 31 October 2020, net current assets amounted to £1,146,080 (2019 - £2,541,569) and net assets amounted to £4,443,282 (2019 - £3,897,366). The balance of unrestricted funds at 31 October 2020 amounted to £4,443,282 (2019 - £3,897,366). The trustees consider this fund to be primarily an investment fund held to generate income to further the charity's objectives.
The trustees acknowledge that there has been minimal impact on the charity during the Covid-19 pandemic as it is not reliant on public donations.
The charity requires its substantial level of reserves to maintain its investment fund and income levels going forward. The cash funds will be used to purchase further investments in due course when the timing is considered to be appropriate to minimise the risk of loss due to potential downward movements in stock markets. It is intended that the charity will hold a minimum of 2% of total unrestricted funds or the equivalent of one year's expected donations, whichever is greater, as cash to meet the day to day expenses of the charity.
The charity's listed investment portfolio is handled by investment managers who seek to maximise the total return on the funds within the constraints of a medium to low risk investment portfolio.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
TRUSTEES REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
The trustees have assessed the major risks to which the Herbert and Stefanie Straus Memorial Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees consider variability of investment returns on the investment portfolio to constitute the charity's major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio.
Plans for the future
The Charity plans to invest the funds held so as to provide a secure and long-term income from which charitable contributions shall be made to Jewish and non-Jewish causes for people in need.
Structure, governance and management
The Herbert and Stefanie Straus Memorial Trust is a registered charity, number 1132781, and is constituted under a Trust deed dated 14 August 2009 and updated on 28 October 2009. The principal address is Unit 10, Delta Court, Manor Way, Borehamwood, Hertfordshire, WD6 1FJ. The Herbert and Stefanie Straus Memorial Trust was established by an initial gift of £5,000 from the late Mr Peter F. Straus. The Herbert and Stefanie Straus Memorial Trust does not actively fundraise and seeks to continue the charitable work desired by the donor through the careful stewardship of its existing resources.
The trustees who served during the year and up to the date of signature of the financial statements were: D.R. Straus C.J.S. Straus J. Stone
New trustees may be appointed by the existing trustees at any time either by way of replacement or addition.
The board of trustees administers the charity, makes all the decisions and meets regularly.
New trustees are provided with guidance both in writing and orally to brief them on their legal obligations under charity law.
All trustees give their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in the notes to the accounts as necessary. Trustees are required to disclose all relevant interests and in accordance with the Trust's policy, withdraw from decisions where a conflict of interest arises. Neither the Trust nor any of the trustees have any conflicting interests but any such interests would be disclosed.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
TRUSTEES REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
Statement of Trustees responsibilities
The trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Herbert and Stefanie Straus Memorial Trust and of the incoming resources and application of resources of the Herbert and Stefanie Straus Memorial Trust for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Herbert and Stefanie Straus Memorial Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Herbert and Stefanie Straus Memorial Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees r eport was approved by the Board of Trustees.
D.R. Straus
Trustee Dated: 12 October 2021
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
Opinion
We have audited the financial statements of Herbert and Stefanie Straus Memorial Trust (the ‘Herbert and Stefanie Straus Memorial Trust’) for the year ended 31 October 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 October 2020 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Herbert and Stefanie Straus Memorial Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the Trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Herbert and Stefanie Straus Memorial Trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees r eport; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
Responsibilities of trustees
As explained more fully in the s tatement of Trustees r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the Herbert and Stefanie Straus Memorial Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http s ://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matter s
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Marti Stenton ACA (Senior Statutory Auditor) for and on behalf of Morris Palmer Limited 13 October 2021 Chartered Accountants Statutory Auditor Barttelot Court Barttelot Road Horsham West Sussex RH12 1DQ
Morris Palmer Limited is eligible for appointment as auditor of the Herbert and Stefanie Straus Memorial Trust by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2020
| Notes Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Raising funds 5 Charitable activities 6 Total resources expended Net (losses)/gains on investments 10 Net movement in funds Fund balances at 1 November 2019 Fund balances at 31 October 2020 |
2020 £ 625,000 26,803 651,803 6,632 48,250 54,882 (51,005) 545,916 3,897,366 4,443,282 |
2019 £ - 32,631 |
|---|---|---|
| 32,631 | ||
| 6,734 | ||
| 77,100 | ||
| 83,834 | ||
| 87,674 | ||
| 36,471 3,860,895 |
||
| 3,897,366 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities and are in relation to unrestricted funds.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
BALANCE SHEET
AS AT 31 OCTOBER 2020
| Notes Fixed assets Investments 12 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Income funds Unrestricted funds General unrestricted funds Revaluation reserve |
£ 125,000 1,024,460 1,149,460 (3,380) 4,139,966 303,316 |
2020 £ 3,297,202 1,146,080 4,443,282 4,443,282 4,443,282 |
£ - 2,543,669 2,543,669 (2,100) 3,551,911 345,455 |
2019 £ 1,355,797 2,541,569 3,897,366 3,897,366 3,897,366 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on 12 October 2021
D.R. Straus Trustee
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2020
| 2020 Notes £ £ Cash flows from operating activities Cash generated from/(absorbed by) operations 17 446,398 Investing activities Purchase of investments (2,015,101) Proceeds on disposal of investments 22,691 Investment income received 26,803 Net cash (used in)/generated from investing activities (1,965,607) Net cash used in financing activities - Net decrease in cash and cash equivalents (1,519,209) Cash and cash equivalents at beginning of year 2,543,669 Cash and cash equivalents at end of year 1,024,460 |
£ (39,003) 45,015 32,631 |
2019 £ (85,724) 38,643 - (47,081) 2,590,750 2,543,669 |
|---|---|---|
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020
1 Accounting policies
Charity information
Herbert and Stefanie Straus Memorial Trust is a charity registered in England and Wales, number 1132781, and is constituted under a trust deed dated 14 August 2009 and updated on 28 October 2009. The principal address is Unit 10, Delta Court, Manor Way, Borehamwood, Hertfordshire, WD6 1FJ.
1.1 Accounting convention
The accounts have been prepared in accordance with the Herbert and Stefanie Straus Memorial Trust's deed of trust, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Herbert and Stefanie Straus Memorial Trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the Herbert and Stefanie Straus Memorial Trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the Herbert and Stefanie Straus Memorial Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the Herbert and Stefanie Straus Memorial Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Herbert and Stefanie Straus Memorial Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Herbert and Stefanie Straus Memorial Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisors of the dividend yield of the investment portfolio.
1.5 Expenditure
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Costs of generating funds are those costs incurred in attracting voluntary income, or incurred in trading activities undertaken to raise funds.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020
1 Accounting policies
(Continued)
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the direct pay and non-pay costs and support costs relating to those activities.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice and have been allocated to activity cost categories on a basis consistent with the use of resources. These costs include costs related to independent examination and legal fees together with an apportionment of overhead and support costs.
Support costs include administrative office functions, and have been allocated to activity cost categories on a basis consistent with the use of resources.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date using the closing quoted market price . Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The Herbert and Stefanie Straus Memorial Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Herbert and Stefanie Straus Memorial Trust's balance sheet when the Herbert and Stefanie Straus Memorial Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in net income/(expenditure) , except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020
1 Accounting policies
(Continued)
Impairment of financial assets
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Herbert and Stefanie Straus Memorial Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Herbert and Stefanie Straus Memorial Trust’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the Herbert and Stefanie Straus Memorial Trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
No significant judgements have had to be made by the trustees in preparing these financial statements.
Key sources of estimation uncertainty
There were no key sources of estimation uncertainty in preparing these financial statements.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
| 3 Donations and legacies Unrestricted funds 2020 £ Donations and gifts 625,000 £625,000 (2019 - £nil) was attributable to unrestricted funds. 4 Investments 2020 £ Income from listed investments 26,803 £26,803 (2019 - £32,631) was attributable to unrestricted funds. 5 Raising funds 2020 £ Investment management 6,632 £6,632 (2019 - £6,734) of investment management costs was attributable to unrestricted funds. 6 Charitable activities 2020 £ Donations paid out 45,000 Charges 150 45,150 Share of governance costs (see note 7) 3,100 48,250 £48,250 (2019 - £77,100) was attributable to unrestricted funds. |
Total 2019 £ - |
|---|---|
| 2019 £ 32,631 |
|
| 2019 £ 6,734 |
|
| 2019 £ 75,000 - |
|
| 75,000 2,100 |
|
| 77,100 | |
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
7 Support costs
| Support costs Governance costs £ £ Audit fees - 1,000 Accountancy - 2,100 - 3,100 Analysed between Charitable activities - 3,100 |
2020 £ 1,000 2,100 3,100 3,100 |
2019 Basis of allocation £ - Governance 2,100 Governance 2,100 2,100 |
|---|---|---|
Governance costs includes £ 3,100 (2019 - £2,100 ) for audit (2019 - independent examination) and taxation services.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Herbert and Stefanie Straus Memorial Trust during the year.
9 Employees
The average monthly number of employees during the year was:
| 2020 | 2019 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
| Net (losses) / gains on investments | ||
| 2020 | 2019 | |
| £ | £ | |
| Revaluation of investments | (42,139) | 72,581 |
| (Loss) / gain on sale of investments | (8,866) | 15,093 |
| (51,005) | 87,674 |
10 Net (losses) / gains on investments
11 Taxation
The Herbert and Stefanie Straus Memorial Trust is a registered charity, number 1132781, and is exempt from income and capital gains tax under the provisions of section 466 to 493 of the Corporation Tax Act 2010 and Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
12 Fixed asset investments
| Listed investments £ Cost or valuation At 1 November 2019 1,340,244 Additions 2,015,101 Valuation changes (42,139) Fees and charges - Disposals (36,269) At 31 October 2020 3,276,937 Carrying amount At 31 October 2020 3,276,937 At 31 October 2019 1,340,244 Investments at fair value comprise: Listed investment portfolio Cash held within the investment portfolio |
Cash in portfolio 15,553 38,747 - (6,632) (27,403) 20,265 20,265 15,553 2020 £ 3,276,937 20,265 3,297,202 |
Total £ 1,355,797 2,053,848 (42,139) (6,632) (63,672) 3,297,202 3,297,202 1,355,797 2019 £ 1,340,244 15,553 1,355,797 |
|---|---|---|
Fixed asset investments revalued
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sale s and purchases are recognised at the date of trade at cost (that is their transaction value).
The comparable historical cost of the investment portfolio is £2,973,467 (2019 - £994,097).
The main risk to the charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as the charity's investments are mainly traded in markets with good liquidity and high trading volumes. The charity manages these investment risks by retaining expert advisors who seek to maximise the total return on the funds within the constraints of a medium to low risk investment portfolio.
| 13 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Equity instruments measured at fair value Carrying amount of financial liabilities Measured at amortised cost |
2020 £ 125,000 3,297,202 3,380 |
2019 £ - 1,355,797 2,100 |
|---|---|---|
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HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
| 14 Debtors Amounts falling due within one year: Other debtors All debtors relate to unrestricted funds. 15 Creditors: amounts falling due within one year Other creditors Accruals and deferred income All creditors relate to unrestricted funds. |
2020 £ 125,000 2020 £ 280 3,100 3,380 |
2019 £ - 2019 £ - 2,100 2,100 |
|---|---|---|
16 Related party transactions
During the year, C J S Straus, a Trustee of the Charity, made a donation of £500,000 (2019 - £nil) to the Herbert and Stefanie Straus Memorial Trust.
| 17 Cash generated from operations 2020 £ Surplus for the year 545,916 Adjustments for: Investment income recognised in statement of financial activities (26,803) Loss/(gain) on disposal of investments 8,866 Fair value gains and losses on investments 42,139 Movements in working capital: (Increase) in debtors (125,000) Increase/(decrease) in creditors 1,280 Cash generated from/(absorbed by) operations 446,398 |
2019 £ 36,471 (32,631) (15,093) (72,581) - (1,890) (85,724) |
|---|---|
18 Analysis of changes in net funds
The Herbert and Stefanie Straus Memorial Trust had no debt during the year.
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