**REGISTERED COMPANY NUMBER: 09041095 (England and Wales) REGISTERED CHARITY NUMBER: 1164583** **Report of the Trustees and** **Financial Statements for the Year Ended 31 May 2023** **for** **The Max Barney Foundation (A Company Limited by Guarantee)** ## **The Max Barney Foundation** **Contents of the Financial Statements for the year ended 31 May 2023** |||**Page**|| |---|---|---|---| |**Reference and Administrative Details**||1|| |**Report of the Trustees**|2|to|3| |**Report of the Independent Auditors**|4|to|6| |**Statement of Financial Activities**||7|| |**Balance Sheet**|8|to|9| |**Cash Flow Statement**||10|| |**Notes to the Financial Statements**|11|to|19| ## **The Max Barney Foundation** **Reference and Administrative Details for the year ended 31 May 2023** **Trustees** A Bard M H Goldstein G Phillips **Registered office** 168 Shoreditch High Street London E1 6HU **Registered company number** 09041095 (England and Wales) **Registered charity number** 1164583 **Independent Auditors** Cooper Parry Group Limited Statutory Auditor New Derwent House 69-73 Theobalds Road London WC1X 8TA **Principal bankers** Royal Bank of Scotland Threadneedle Street London EC2R 8LA Page 1 ## **The Max Barney Foundation (Registered number: 09041095)** **Report of the Trustees for the year ended 31 May 2023** The trustees, who are also directors under company law, present their report and financial statements for the year ended 31 May 2023. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice "SORP" applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019. ## **Objectives and activities** ## **Objectives and aims** The purposes for which the charity is established are to provide relief for unemployment through vocational training and job creation and other general charitable activities. ## **Public benefit** The trustees have had regard to the Charity Commission's guidance on public benefit. The significant activities undertaken to further the charity's purposes for the public benefit and hence the details of the issues the charity seeks to tackle and the changes and differences it seeks to make are included below. ## **Grantmaking policy** The charity achieves its objectives by making grants considered by the trustees. ## **Achievement and performance** The charity has continued to bring in significant resources during a difficult period and hence have distributed over £1m to charities in support of its charitable objectives. ## **Financial review** ## **Financial position** The charity received income in the year of £3,999,643 (2022: £2,546,845), and incurred costs of generating funds of £8,532 (2022: £24,111). Governance costs incurred amounted to £32,727 (2022: £6,975). Governance and support costs are included in the total charitable expenditure shown in the Statement of Financial Activities "SOFA". In the year the grants payable totalled £1,585,952 (2022: £1,338,634). A breakdown of grants by charitable objective is shown in the notes. At 31 May 2023 the charity had net assets of £4,211,994 (2022: £1,856,994) in unrestricted funds. ## **Reserves policy** The charity has a low level of administrative expenses and therefore the reserves policy is limited to holding funds to fulfil future grant making opportunities in support of the charitable objectives. ## **Future plans** The charity hopes to continue to expand its reach through grants and donations. ## **Structure, governance and management** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Induction and training of new trustees** There are no plans to recruit additional trustees at present. Once new trustees join the board we do not necessarily provide formal training. They are advised of a trustee's duties and responsibilities as outlined in the Charity Commission website. Page 2 ## **The Max Barney Foundation (Registered number: 09041095)** **Report of the Trustees for the year ended 31 May 2023** ## **Structure, governance and management** All of the directors are members of the company and guarantee to contribute no more than £1 in the event of a winding up. The organisation of the charity currently comprises a Board of Directors/Trustees who meet on average each quarter to consider and plan grant making and any other matters relating to the charity. The power of appointing new trustees is vested in the Board. ## **Statement of trustees' responsibilities** The trustees (who are also the directors of The Max Barney Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## **Auditors** The audit business of Haines Watts London LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts London LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The Auditors, Cooper Parry Group Limited, have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the board of trustees on ............................................. and signed on its behalf by: .................................................................... M H Goldstein - Trustee Page 3 **Report of the Independent Auditors to the Trustees of The Max Barney Foundation** ## **Opinion** We have audited the financial statements of The Max Barney Foundation (the 'charitable company') for the year ended 31 May 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice). - In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 May 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 this gives rise to a material misstatement in the financial statements themselves. 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or - the charitable company has not kept adequate accounting records; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. Page 4 **Report of the Independent Auditors to the Trustees of The Max Barney Foundation** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company'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 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** We have been appointed as auditors 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 a Report of the Independent Auditors 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outline above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, and UK taxation legislation. - We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance. - We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. - Based on this understanding, we designed specific appropriate audit procedures to identify instances of on-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. - Identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity's internal control. Page 5 Report OT the IndependentAIEililor5 to tlic Trustees of 'riie Max BAJ'iiey f4oundatio Bvliiale thL appxwrialeness of accounting PK>licies used and the iea50nableness of a¢counting eslimates and ielated dis¢loswes Jna(l¥ by the trustees. ConcliMl¢ on the appropriateness of th¢ trustees, use ofthe going concei'n basis of Rccountii?g and, b2%d oti the aidit evidence obtained. whdhei. a mat¢i'iJl iJn¢¢rlointy exists relJt¢d io cvtnts ￿. coriditions that may cast 5igniFIcaiil doubt on t￿e chai'ity's abffility to tonlinuc as a going collLeFtt. Ilwc collcliide that a jiiat￿la[ iinceilain(y exists, wc aTe requiied to di?w allentiotj ill OUL audiloi s reporl lo the ielated disclo￿1[¢8 in the finaiicial sl&(¢m¢nts oi., if siich disclosutes are inadcouate, lo ii)odify oiir opinion. OUJ. ¢oncliisions aiE based oll the audit c￿denCe obtained up lo the date of OLir aiiditor's rwrl. How'EvEJ' futuit events oi. Conditiotis inay ¢ause the chaiily to cease to continiie as a goin8 ¢on¢ein. Evaluatc thc ovelall piesentation, stru¢tur¢ and content of the fitmncial slatcnienls, I￿clU￿.7]g the dis¢losuirs, and wh¢ih¢r lh¢ finan¢ial slal¢ments iypi'esefftt the undej'lying ts'atisactions LVL'nis in a mllTmer that a¢hieve fail. Pfe$Clllalion. We cotntnunicate with thosE chai'gLd ￿111 goyernancc Tcgaidin& among othei in#tt¢iE, th¢ plann¢d scope and tin]in8 of the aiidit #nd significant aiidit findings, iii¢liiding any si￿1ficallt defjciencies itL ilitcimal ¢onlToI that we identify dw'iiig our audii. A fujther des¢i'iption of our iEsponsibililics for the aiidil of the finaucial stateilleiits is Iwated on ihe Vinancikl Repoiting C4iJn¢il's website at wvw.rTC.oJ'g.I￿auditOiE1eSponS￿b]ljties. Tbi5 desci"iplioll fomis pail oloui. Report of the Indtp¢iideni Aiiditors. Use of our rcpoi't This report is made solely lo thc charitable conipany's thistees, as a body, in accordan¢¢ Nith Part 4 of the Charities (Accol￿ls and Repoils) Regulations 2008. Our audit work kns been iindcrl&ken so th&t we lliight slat¢ to lh¢ ¢harilabl¢ CO￿panY'S tsustees those mattel's we I'¢quir¢d to state lo Ih¢ni in an aiiditors, repoit foi. nts othcr puwose. To ihe fiLllest extent peru]itted by law, wc do not tsc¢¢pt or aSs￿me ie.qponsibility to ally￿le othei than the Ch￿"Itable company and the ¢haEitable compa tiustees as R body, for our audkt woi'k, fortiiis irport, or for the opinions we have foitlled. Jane Wills (Senior sta￿t0]Y Auditoj.) for aTrd on behalf of Cooper P￿ry G￿llP Limilcd Stamtoiy Aiiditoi. N¢w Derw¢nt House 69-73 Theobalds Road London WCIX8TA Date: ...... P&ge 6 ## **The Max Barney Foundation** ## **Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 May 2023** |**Notes**
**Income and endowments from**
Donations and legacies
2
Investment income
3
**Total**
**Expenditure on**
**Charitable activities**
4
Relief of unemployment through vocational
training
Relief of unemployment through job creation
General charitable causes
Other
**Total**
Net gains/(losses) on investments
**NET INCOME**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**2023**
**£**
3,999,643
26,178
4,025,821
1,221,883
283,785
118,126
41,259
1,665,053
(5,768)
2,355,000
1,856,994
4,211,994|**2022**
**£**
2,546,845
-
2,546,845
648,468
499,659
190,507
31,086
1,369,720
(26,500)
1,150,625
706,369
1,856,994| |---|---|---| The notes form part of these financial statements Page 7 ## **The Max Barney Foundation (Registered number: 09041095)** **Balance Sheet 31 May 2023** |**Notes**
**Fixed assets**
Investments
11
**Current assets**
Debtors
12
Cash at bank
**Creditors**
Amounts falling due within one year
13
**Net current assets**
**Total assets less current liabilities**
**NET ASSETS**
**Funds**
14
Unrestricted funds
**Total funds**|**2023**
**£**
19,076
1,274,003
3,088,116
4,362,119
(169,201)
4,192,918
4,211,994
4,211,994
4,211,994
4,211,994|**2022**
**£**
24,844
319,147
1,522,795
1,841,942
(9,792)
1,832,150
1,856,994
1,856,994
1,856,994
1,856,994| |---|---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023. The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011. The notes form part of these financial statements Page 8 ## **The Max Barney Foundation (Registered number: 09041095)** **Balance Sheet - continued 31 May 2023** These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: ............................................. M H Goldstein - Trustee The notes form part of these financial statements Page 9 ## **The Max Barney Foundation** **Cash Flow Statement for the year ended 31 May 2023** |**Notes**
**Cash flows from operating activities**
Cash generated from operations
16
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of fixed asset investments
Sale of fixed asset investments
Repayment of loans receivable
Provision of finance
Interest received
Net cash (used in)/provided by investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|**2023**
**£**
1,874,445
1,874,445
(19,076)
19,076
-
(335,302)
26,178
(309,124)
1,565,321
1,522,795
3,088,116|**2022**
**£**
1,243,296
1,243,296
-
-
23,733
-
-
23,733
1,267,029
255,766
1,522,795| |---|---|---| The notes form part of these financial statements Page 10 **The Max Barney Foundation** **Notes to the Financial Statements for the year ended 31 May 2023** ## **1. Accounting policies** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **Critical accounting judgements and key sources of estimation uncertainty** In the application of the 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 assumptions are based on experience and other factors that are considered to be relevant. As such actual results may differ from these estimates which are reviewed on an ongoing basis and recognised when appropriate. The critical judgement that the trustees have made in the process of applying the charity's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below: ## Assessing indicators and impairment In assessing whether there have been any indicators or impairment of assets, the trustees have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience or recoverability. There have been no indicators of impairments identified during the current financial year. ## Key sources of estimation uncertainty Due to the straight forward nature of the charity's activities, the trustees do not believe that there are any estimation uncertainty's that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Page 11 **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **1. Accounting policies - continued** ## **Expenditure** Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Charitable activities** Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## **Governance costs** These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustee's meetings and reimbursed expenses. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. At the current time the charity does not operate any restricted funds. ## **Foreign currencies** Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. ## **Donations** Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Debtors** Debtors are recognised at their recoverable amounts at the balance sheet date. ## **Trade Creditors** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Page 12 **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **1. Accounting policies - continued** Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost. ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity. ## **Financial instruments** All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. Investments held in listed entities are initially recognised at cost and then revalued at fair value based on open market values at each reporting period end. ## **Going concern** The trustees have considered the appropriateness of adopting the going concern basis in preparing the financial statements for the year ended 31 May 2023. The trustees have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and therefore, they continue to adopt the going concern basis of accounting in the financial statements. Page 13 ## **The Max Barney Foundation** ## **Notes to the Financial Statements - continued** **for the year ended 31 May 2023** ## **2. Donations and legacies** |Donations
Gift aid
**3.**
**Investment income**
Interest receivable - trading|**2023**
**£**
3,199,715
799,928
3,999,643
**2023**
**£**
26,178|**2022**
**£**
2,337,120
209,725
2,546,845
**2022**
**£**
-| |---|---|---| |||| ## **4. Charitable activities costs** |**4.**
**Charitable activities costs**||||| |---|---|---|---|---| |**Direct**
**Costs**
**£**
Relief of unemployment through
vocational training
-
Relief of unemployment through job
creation
-
General charitable causes
56,613
56,613
**5.**
**Grants payable**
Relief of unemployment through vocational training
Relief of unemployment through job creation
General charitable causes|**Direct**
**Costs**
**£**
-
-
56,613
56,613|**Grant**
**funding of**
**activities**
**(see note**
**5)**
**£**
1,221,883
283,785
80,284
1,585,952|**Support**
**costs (see**
**note 6)**
**£**
-
-
(18,771)
(18,771)|**Totals**
**£**
1,221,883
283,785
118,126
1,623,794
**2022**
**£**
648,468
499,659
190,507
1,338,634| ||||**2023**
**£**
1,221,883
283,785
80,284
1,585,952|| All significant grants payable were made to institutions. Material grants payable to institutions during the period are as follows: |**Name of the Institution**|**2023**|**2022**| |---|---|---| ||**£**|**£**| |Friends of the Barzilair Medical Center Inc|170,488|83,128| |Friends of the Edith Wolfson Medical Center|223,327|48,956| |Hatzola Edgware|175,000|| |American Jewish Joint Distribution Committee (UK) Trust|219,151|75,000| |Laniado Hospital|166,726|171,544| |The Work Avenue Foundation|100,000|70,000| Page 14 ## **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **6. Support costs** |**Support costs**|| |---|---| |**Governance**
**Management**
**Finance**
**costs**
**£**
**£**
**£**
Other resources expended
8,459
73
32,727
General charitable causes
-
-
(18,771)
8,459
73
13,956|**Totals**
**£**
41,259
(18,771)| ||22,488| ## **7. Net income/(expenditure)** Net income/(expenditure) is stated after charging/(crediting): |Auditors' remuneration|**2023**
**£**
13,956|**2022**
**£**
6,975| |---|---|---| ## **8. Trustees' remuneration and benefits** Other than trustee's expenses paid there were no trustees' remuneration or other benefits for the year ended 31 May 2023 nor for the year ended 31 May 2022. ## **Trustees' expenses** During the year a trustee incurred expenses of £3,288 (2022: £6,090) carrying out activities in support of the charity. There were no other trustees' expenses paid for the year ended 31 May 2023 and no other trustees' expenses for the year ended 31 May 2022. ## **9. Staff costs** There were no staff costs for the year ended 31 May 2023 nor for the year ended 31 May 2022. The average monthly number of employees during the year was NIL (2022- NIL). No employees received emoluments in excess of £60,000. ## **10. Comparatives for the statement of financial activities** |**Comparatives for the statement of financial activities**|| |---|---| ||**Unrestricted**| ||**fund**| ||**£**| |**Income and endowments from**|| |Donations and legacies|2,546,845| |**Expenditure on**|| |**Charitable activities**|| |Relief of unemployment through vocational|| |training|648,468| |Relief of unemployment through job creation|499,659| |General charitable causes|190,507| Page 15 ## **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **10. Comparatives for the statement of financial activities - continued** ||||**Unrestricted**| |---|---|---|---| ||||**fund**| ||||**£**| |Other|||31,086| |**Total**|||1,369,720| |Net gains/(losses) on investments|||(26,500)| |**NET INCOME**|||1,150,625| |**Reconciliation of funds**|||| |Total funds brought forward|||706,369| |**Total funds carried forward**|||1,856,994| |**Fixed asset investments**|||| ||**Listed**|**Unlisted**|| ||**investments**|**investments**|**Totals**| ||**£**|**£**|**£**| |**Market value**|||| |At 1 June 2022|24,844|-|24,844| |Additions|-|19,076|19,076| |Disposals|(24,844)|-|(24,844)| |At 31 May 2023|-|19,076|19,076| |**Net book value**|||| |At 31 May 2023|-|19,076|19,076| |At 31 May 2022|24,844|-|24,844| |There were no investment assets outside the UK.|||| ## **11. Fixed asset investments** Cost or valuation at 31 May 2023 is represented by: |**Listed**
**Unlisted**
**investments**
**investments**
**£**
**£**
Valuation in 2022
24,844
-
Valuation in 2023
(24,844)
19,076
-
19,076|**Totals**
**£**
24,844
(5,768)
19,076| |---|---| The fixed asset investments relate to unlisted investments held in the UK. These were received in exchange for shares previously held in a listed company after the voluntary liquidation of the company on 24th February 2023. Page 16 ## **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **11. Fixed asset investments - continued** The shares in the listed company were transferred to the Max Barney Foundation in March 2021 at a historical cost of £51,344. ## **12. Debtors: amounts falling due within one year** |Amounts recoverable on contract
Other debtors|**2023**
**£**
445,169
828,834
1,274,003|**2022**
**£**
109,867
209,280| |---|---|---| |||319,147| The amounts recoverable on contract relate to historic financing extended to an institution that undertakes activities in line with the charity's charitable objectives. Repayment of the receivable is expected to begin July 2024 and be fully repaid July 2030. ## **13. Creditors: amounts falling due within one year** |Other creditors
Accruals and deferred income|**2023**
**£**
160,075
9,126
169,201|**2022**
**£**
5,892
3,900| |---|---|---| |||9,792| ## **14. Movement in funds** |**Unrestricted funds**
General fund
**TOTAL FUNDS**
Net movement in funds, included in the above a
**Unrestricted funds**
General fund
**TOTAL FUNDS**|re as follows:
**Incoming**
**resources**
**£**
4,025,821
4,025,821|**At 1/6/22**
**£**
1,856,994
1,856,994
**Resources**
**expended**
**£**
(1,665,053)
(1,665,053)|**Net**
**movement**
**in funds**
**£**
2,355,000
2,355,000
**Gains and**
**losses**
**£**
(5,768)
(5,768)|**At 31/5/23**
**£**
4,211,994
4,211,994
**Movement**
**in funds**
**£**
2,355,000
2,355,000| |---|---|---|---|---| Page 17 ## **The Max Barney Foundation** ## **Notes to the Financial Statements - continued** **for the year ended 31 May 2023** ## **14. Movement in funds - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
**TOTAL FUNDS**|**At 1/6/21**
**£**
706,369
706,369|**Net**
**movement**
**in funds**
**£**
1,150,625
1,150,625|**At 31/5/22**
**£**
1,856,994| |---|---|---|---| ||||1,856,994| Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|**Incoming**
**resources**
**£**
2,546,845
2,546,845|**Resources**
**expended**
**£**
(1,369,720)
(1,369,720)|**Gains and**
**losses**
**£**
(26,500)
(26,500)|**Movement**
**in funds**
**£**
1,150,625| |---|---|---|---|---| |||||1,150,625| A current year 12 months and prior year 12 months combined position is as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|**At 1/6/21**
**£**
706,369
706,369|**Net**
**movement**
**in funds**
**£**
3,505,625
3,505,625|**At 31/5/23**
**£**
4,211,994| |---|---|---|---| ||||4,211,994| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|**Incoming**
**resources**
**£**
6,572,666
6,572,666|**Resources**
**expended**
**£**
(3,034,773)
(3,034,773)|**Gains and**
**losses**
**£**
(32,268)
(32,268)|**Movement**
**in funds**
**£**
3,505,625| |---|---|---|---|---| |||||3,505,625| Page 18 ## **The Max Barney Foundation** **Notes to the Financial Statements - continued for the year ended 31 May 2023** ## **15. Related party disclosures** Donations amounting to £73,826 (2022: £80,000) received in the year were from trustees. During the year the foundation made a donation of £20,500 (2022: £42,500) to the London School of Jewish Studies which is a related party through Gary Phillips and £10,000 to United Synagogue which is related by Michael Goldstein. ## **16. Reconciliation of net income to net cash flow from operating activities** |**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Losses on investments
Interest received
Loans receivable forgiven by donations
Increase in debtors
Increase in creditors
**Net cash provided by operations**|**2023**
**£**
2,355,000
5,768
(26,178)
-
(619,554)
159,409
1,874,445|**2022**
**£**
1,150,625
26,500
-
80,000
(18,280)
4,451
1,243,296| |---|---|---| ## **17. Analysis of changes in net funds** |**Net cash**
Cash at bank
**Total**|**At 1/6/22**
**£**
1,522,795
1,522,795
1,522,795|**Cash flow**
**£**
1,565,321
1,565,321
1,565,321|**At 31/5/23**
**£**
3,088,116
3,088,116
3,088,116| |---|---|---|---| Page 19