Charity registration number 1132781
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023
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 Independent examiner Marti Stenton FCA 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 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
TRUSTEES REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
The trustees present their annual report and financial statements for the year ended 31 October 2023.
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 policies adopted in furtherance of these objects are the charity's grant making policies and investment policies. There have been no changes 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 £569,342 (2022 - £885,261) 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 £16,750 (2022 - £37,000) in accordance with the charity's objectives.
During the year, income of £67,205 (2022 - £66,230) 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 £67,205 (2022 - £66,230) from listed investments, £nil (2022 - £425) of other interest receivable, £nil (2022 - £nil) from donations, £nil (2022 - £nil) of other income and an overall loss of £99,832 (2022 - £372,011) from the revaluations and gains/losses on investments. Total outgoing resources amounted to £42,893 (2022- £65,189) resulting in a net deficit for the year of £75,520 (2022 - £370,545).
As at 31 October 2023, net current assets amounted to £667,902 (2022 - £642,521) and net assets amounted to £4,511,337 (2022 - £4,586,857). The balance of unrestricted funds at 31 October 2023 amounted to £4,511,337 (2022 - £4,586,857). The trustees consider this fund to be primarily an investment fund held to generate income to further the charity's objectives.
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.
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.
- 1 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST TRUSTEES REPORT ICONTINUEDI FOR THE YEAR ENDED 31 OCTOBER 2023 The truslees consideT variability ol investment relums on the Investment portlolio lo con81ilule IhÉ charity's major lin2ncial risk. This 15 miligaled by rèlalning expert investment managers and having a diversified investment portfolio. Plans for the future The Charity plans lo invest the funds hold so a$ to provide a secure and long-lemi Income from which charil8ble cortribullons shall bo made to Jewish and non-JÉwl8h causes for people In neod. Stricturpi governanco and management The Herbert and StÈlani8 Straus Memorial fiu5t is a registered ch8rlly, number 1132781, and is constituted under a Trust deed dated 14 August 2009 and upd8léd on 28 October 2009. The prlncipal address 18 Unil 10, Della CoLIrt, Maior Way, Borehamwood, Hertfordshire, W06 1 FJ. Th8 Herbert and Slelanie Straus M¢morlal Trust was establish&d by an inillal gift 01 £5,000 from the laltr Mr Peter F. Strau8. The klèrbert and Slelanie Strau5 M¢morfal Trust does nol actively fundraisè and seeks lo conllnu¢ the eharllable work deslred by the donor Ihrough th8 CAreful stewardship of Ils existing resources. The trustees who Served during the year and up lo the dale of Signalurg of the financlal slalemenl$ were.. D.F.. Slr8us C.J.S. Straus J. Stone New Iruslegs may b¢ gppolnled by the exlsllng Iruslo•$ at any Ilme ellher by way ol repl8cem•nt or addlllon. The board ol Irusle¢$ admSn151er$ the charity, makes all Ihe daclslons and meets regularly. ew Irusle88 are provldod wlth guldanc• both In wrillng and orally lo bri¢f thom on th8ir legal obllgallons under ¢harlly lsw. All trustees give Ihelr lime freely and no Iruslee rernunerallon was pald in tho yeBr. Oelalls of Iruslee exp$n88s an related p¥riy Iransaclionj are dlsclosed in 1116 notes lo the accounts &$ nècessary. Tru81ees are r&qulred lo disclose all relevant Inlore$ls and in aceordance with lh& Trust'5 poll¢y, wllhdraw from csecisions wherè a contlicl of Interest arises. Nerth8r th* Trust nor any ol trusleeB hav¢ any con111¢llng interest8 but ony such inl¢re8ts would be dl$¢losad. Trustees report wa8 8pprov9d by the Boord ol Tru¥laas. TrL'51ee Da=6d.' 14 Juno 2024
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
I report to the trustees on my examination of the financial statements of Herbert and Stefanie Straus Memorial Trust (the Herbert and Stefanie Straus Memorial Trust) for the year ended 31 October 2023.
Responsibilities and basis of report
As the trustees of the Herbert and Stefanie Straus Memorial Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Herbert and Stefanie Straus Memorial Trust’s accounts carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
1 accounting records were not kept in respect of the Herbert and Stefanie Straus Memorial Trust as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Marti Stenton FCA
Morris Palmer Limited Chartered Accountants and Statutory Auditor Barttelot Court Barttelot Road Horsham West Sussex RH12 1DQ
Dated: 17 June 2024
- 3 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
| Notes Income from: Investments 3 Expenditure on: Raising funds 4 Charitable activities 5 Total resources expended Net (losses)/gains on investments 9 Net movement in funds Fund balances at 1 November 2022 Fund balances at 31 October 2023 |
2023 £ 67,205 23,623 19,270 42,893 (99,832) (75,520) 4,586,857 4,511,337 |
2022 £ 66,655 25,589 39,600 65,189 (372,011) (370,545) 4,957,402 4,586,857 |
|---|---|---|
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.
- 4 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST BALANCE SHEET AS AT 31 OCTOBER 2023 2D23 2022 Not•s Fixed assets Inv•slmen18 3.843,435 3,944,336 Cuyent as$èts Cash al bank and In hand e73,100 e45,201 Crodltors: amounts falllng due wlthin on* ytrar 15,198} {2,6801 Ne- current asset$ 667.902 642,521 Tolal assets les8 current Ilab115tle¥ 4.511,237 4,588,857 Inc#)me fund¥ Ge1eral unreslrl¢led funds RealuatIOn r?seive 4,132,147 379,190 4.111,989 474,8e8 4,511.337 4.58S,857 4,511,337 4,56£1,857 rinancial 81i18menl8 were approved by the Tru51ee$ on 14 June 2024 .R. Strau$ Trustee
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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 Herbert and Stefanie Straus Memorial Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Herbert and Stefanie Straus Memorial Trust. Monetary amounts 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.
- 6 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
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.
- 7 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
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 payments 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.
- 8 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
3 Investments
| 2023 £ Income from listed investments 67,205 Interest receivable - 67,205 £67,205 (2022 - £66,655) was attributable to unrestricted funds. Raising funds 2023 £ Investment management 23,623 |
2021 £ 66,230 425 |
|---|---|
| 66,655 | |
| 2022 £ 25,589 |
4 Raising funds
£23,623 (2022 - £25,589) of investment management costs was attributable to unrestricted funds.
5 Charitable activities
| Donations paid out Share of governance costs (see note 6) |
2023 £ 16,750 2,520 19,270 |
2022 £ 37,000 2,600 |
|---|---|---|
| 39,600 |
£19,270 (2022 - £39,600) was attributable to unrestricted funds.
6 Support costs
| Support costs Governance costs £ £ Accountancy - 2,520 - 2,520 Analysed between Charitable activities - 2,520 |
2023 £ 2,520 2,520 2,520 |
2022 Basis of allocation £ 2,600 Governance 2,600 2,600 |
|---|---|---|
Governance costs includes £2,520 (2022 - £2,600) for independent examination and taxation services.
- 9 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
7 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.
8 Employees
The average monthly number of employees during the year was:
| Total Net (losses) / gains on investments Revaluation of investments (Loss)/gain on sale of investments |
2023 2022 Number Number - - 2023 2022 £ £ (95,678) (395,119) (4,154) 23,108 (99,832) (372,011) |
|---|---|
9 Net (losses) / gains on investments
10 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.
- 10 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11 Fixed asset investments
| Listed investments £ Cost or valuation At 1 November 2022 3,812,232 Additions 569,342 Valuation changes (95,678) Disposals (571,760) At 31 October 2023 3,714,136 Carrying amount At 31 October 2023 3,714,136 At 31 October 2022 3,812,232 Investments at fair value comprise: Listed investment portfolio Cash held within the investment portfolio |
Cash in portfolio 132,104 - - (2,805) 129,299 129,299 132,104 2023 £ 3,714,136 129,299 3,843,435 |
Total £ 3,944,336 569,342 (95,678) (574,565) |
|---|---|---|
| 3,843,435 | ||
| 3,843,435 | ||
| 3,944,336 | ||
| 2022 £ 3,812,232 132,104 |
||
| 3,944,336 |
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 sales 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 £3,392,535 (2022 - £3,395,101).
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.
| 12 Financial instruments Carrying amount of financial assets Equity instruments measured at fair value Carrying amount of financial liabilities Measured at amortised cost |
2023 £ 3,843,435 5,198 |
2022 £ 3,944,336 |
|---|---|---|
| 2,680 |
- 11 -
HERBERT AND STEFANIE STRAUS MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
13 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other creditors Accruals and deferred income All creditors relate to unrestricted funds. |
2023 £ 2,400 278 2,520 5,198 |
2022 £ - 280 2,400 |
| 2,680 | ||
14 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
- 12 -