THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
CONTENTS
| Index | Page | Page | |
|---|---|---|---|
| Trustees' report | 1 | - | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Accounts | 7 | - | 11 |
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
1
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 5 APRIL 2023
The trustees present their report and accounts for the year ended 5 April 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, 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)".
Principal Office
4 Woodtree Close, London, NW4 1HQ.
Trustees
Laurence Paul Markham Howard Spencer Dudley James Stebbings
Independent Examiner
Rachel Chim of
UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London, E1W 1YW.
Accountants
UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London, E1W 1YW.
Bankers
Coutts & Co, 440 Strand, London, WC2R 0QS.
Investment advisors
Rathbone Investment Management, 8 Finsbury Circus, London, EC2M 7AZ
Objectives and Activities
The object of the trust is to apply the capital and/or the income of the trust fund for such charitable purposes as the trustees in their absolute discretion think fit. During this period grants have been made to other charitable organisations to advance the objective of the charity.
Public Benefit
The trustees have complied with section 17(5) of the 2011 Charities Act, having due regard for the Charity Commission's guidance on public benefit when reviewing the trust's aims and objectives, when setting the grants making policy and in making awards.
Grant Making Policy
Proposals for grants are generated internally. External applications for funding are not considered. The trustees will set a grant-making policy which is in accordance with the wishes of the settlor.
Achievement and Performance
During the year 11 grants totalling £223,500 were approved compared with 10 grants totalling £151,000 in the previous period. The trustees consider that these represent an appropriate exercise of their discretionary powers.
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
2
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 5 APRIL 2023
Financial Review
The charity's income resources for the year amounted to £95,113 and included distributions from the Estates of Pauline Berman and Harold Berman.
The charity is reliant on the income generated by its investments and further donations.
Investment Policy and Performance
There are no restrictions on the trustees’ power to invest. The trustees' investment managers are mandated with the objective of achieving capital growth with a designated risk profile of 'medium to higher'. The trustees consider that overall investment performance for the year was satisfactory
Reserves Policy
The charity operates only in a grant making capacity, it is not a functional charity incurring fixed costs or other ongoing obligations. The trustees' aim is to maintain free reserves at a level that will provide sufficient to respond to applications for grants and ensure that there are sufficient funds available to cover its expenditure on charitable activities. The unrestricted fund balance amounted to £701,906 as at the year-end which may be used in accordance with the charity's objectives, at the discretion of the trustees. All of the investments held in fixed assets are redeemable at short notice.
The trustees have discretionary power to accumulate the income of the charity as an accretion to the capital of the charity.
Structure, Governance and Management
The trust is an unincorporated body, constituted under a trust deed dated 9 November 2005 and is a registered charity, number 1170764. The trust does not actively fundraise and maintains a careful stewardship of its existing resources.
The power of appointing new or additional trustees is exercisable by the existing trustees. The trustees meet at such intervals as they consider appropriate being not less than once per annum.
The charity has no full time or part time employees or volunteers to assist in the running of the charity, the daily administration being carried out by the trustees themselves.
Risk Management
The trustees have reviewed the major risks that impact on the work of the trust. The systems that have been established enable the trustees to review and take necessary steps to lessen these risks.
Safeguarding
Although the charity does not work directly with children or other vulnerable beneficiaries it does provide funding to other charities that do. The charity seeks to ensure, through proportionate and reasonable due diligence, that other charities take their responsibilities seriously and that safeguards are in place to protect vulnerable people.
Plans for the Future
The trustees have no immediate plans to change any of the objects, activities or policies described above.
THE PAULINE & HAROLD BERMAN CHAIUTABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED S APRIL 2023 Ststemenl of trustees. responsibilitie8 The trustees are resw)s1b1e for their perii)dic reEx)rt and fuwKial Statements in accordance with applicable law and United Kingdom Accounting StaDdants (United Kingdom Generally Accepted Accoiinting Practice). The law. applicable lo charities in England and Wales requires the trustees to prepare financial ststements for each financial reFK>rting riod which give a true and fair view of the charity's state of affairs. its incoming resources and the application of Its resource5. In preparing these financial sthments. the trustees are required w: - select suitable a¢cthJnting wlicies and then opply them nSisteIly. - observe the methods and principles in the Charities SOKP. . make judgernents and estima that are te&sonable and prudenl - slate whether applicable accounting standards have ken followed subjeci to any mthrial departures di5GluwJ and rxplaiIiril in aLLuunL¥; - pPTr Lh¥ finiLIa1 siak¥mvnis vn thy'vin LunL1. t.15 unlrs5 il is iiyptvpriuir (v pr¢sUtiK tliai charity will Contin its 0rations. The trustees are reswnsible for keepin8 SUtTicient accoLmtin8 records that disclose with reasonable accuracy at any lime the financial p)sition of the chariry and ensure thai their financial statements comply wilh the Charitie5 Act 2011. the Charity (Accounts and ReEK>rtsl Regulations 21KTr8 and the PIOViSjOE15 of the trust dccd. They arc a150 trspn5iblc for 5afesuardins the a55¢ts of th¢ chari¢y and taking reasonable step5 for the prevention and delection of fraud and other irregularities. Approvcd by th¢ TnJste¢s on .... ...... ..2023 and si8n¢d on thcir bewf ty. Laurence Paul Mrkhgm Trustee Da..
Y Youty LLP QLran1 (Se 4 Tb(xrrd5 Ie Soudre LtyKbn EIW 1YW Hackeryoung Chartered AccNntants THE PAULINE & HAROLD BERMAN CHARfrABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRuEEs OF THE PAULINE & HAROLD BERMAN CHARrrABLE TRUST FOR THE YEAR ENDED 5 APIUL 2023 I report to the tntee5 on my examination of the accounts of The Pauline & Harold Bernwi Charitable Trnt for the y¢ar ended 5 April 202J. wkn.ch are set out on pages 5 to I l. This report is made solely to the clwity's trustees, as a body, in accordance with section 145 of the Chariti¢5 Act 201 l. My examination has been undertaken so thai I might state to the charity's trustees th05¢ malteTS I arn required to state to them in an independent examinerfs report and for no other purpose. To thc full¢st extent permitted by law, I do not accept or assume responsibility to anyone other than the charity5 trust¢¢s as a body, for my examination, for this repo¢ or for the opinions I have fomied. Responsibilities #ud b#$ts Of report As the charity trustees of the Charity you are restKbnsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act.). I report in respect of my examination of the Truslee's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the appllcable Directtons given by the Charity Comtnission under 5CCtion 145{5Kb) of the 201 l Acl. Independent examiDer'5 Statement I have completed my examination. I confinn that no material matters have come to my attention in ¢onne¢tion wilh the examinaiion giving me cause to believe thar in any Tnakrial respect- ( l) accounting records were not kept in respect of the Trust as required by section 130 of the Act. ot (2) the accounts do not accord with those records; or (3} the accounts do t1 comply with the applicable requirements conceming the fomt and content of accounts sei oul in the Charities (Accounts and Report5) Regulations 28 other than any r¢quirement that the accounts ve a 'true and fai¢ vi¢w 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 io whi¢h attention should be drdHn in this report in order to enable a proper und¢tandIng of the a¢¢ounts to be rea¢hed. Rachel Chim UHY Haok¢r Young LLP Quadrant House 4 Thomas More Square London Elw IYW Date.. ?02
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
5
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 5 APRIL 2023
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2023 2022
Unrestricted Unrestricted
funds funds
Note £ £
Income and endowments from:
Investments 3 18,485 18,583
Legacies:
Harold Berman Estate 2 64,995 -
Pauline Berman Estate 2 11,633 -
Total income 95,113 18,583
Expenditure on:
Raising funds (investment management fees) (6,136) (8,004)
Charitable activities 4 (230,340) (156,250)
Total expenditure (236,476) (164,254)
Net expenditure before gains / losses
on investments (141,363) (145,671)
Net gains / (losses) on investment assets 8 (77,901) 39,624
Net movement in funds (219,264) (106,047)
Reconciliation of funds
Total funds brought forward 921,170 1,027,217
Total funds carried forward £701,906 £921,170
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All recognised gains and losses have been included in the Statement of Financial Activities and are derived from the continuing activities of the Charity.
THE PAULINE & HAKOLD 1SEKTrTAJY LHAKI"I"AISLE TKUST BALANCE SHEET AS AT 5 APRIL 2023 2011 Total 2022 Total Note Fixed a55e Inve5mients at markei value 634.398 780,937 Current ets Cash at bank Debtors 74.71¥4 145.685 io 979 1.106 75.778 146.791 C.iirreDt libililies Creditors falling due within one year Net current assets (8.270) (6.558) 67.508 140.233 Total llet a&¥ets £701.906 £921,170 The funds of the ebarity Unrestri¢ted fut)ds 701.906 921.170 Total funds £701.Wb LY21.17V The financial ststements on pages 5 to I I were approved by the Tnle¢S on . and are signed on their haIr by: Laurence Paul Markham Tniqtee
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
7
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
1 Accounting policies
Charity information
The Pauline & Harold Berman Charitable Trust is a Charitable Trust established under the terms of its constitutional trust deed dated 9 November 2005.
1.1 Accounting convention
These financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.
These financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
These finanocial statements have been prepared under the historical cost convention unless otherwise stated in the corresponding notes, 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 these financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Consequently the trustees continue to adopt the going concern basis of accounting in preparing their financial statements.
1.3 Charitable funds
All funds are unrestricted. Both the capital and income of the charity can therefore be applied at the discretion of the trustees in furtherance of the charitable objectives of the trust.
1.4 Income recognition
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt (so it is probable that the income will be received) and the amount of income receivable can be measured reliably. Income and donations and legacies is recognised when the charity has entitlement to the funds. Investment income is accounted for on the basis of net amounts receivable. This is normally when the investment managers are notified of the interest receivable or dividend declared. Any tax deducted and recoverable will be recognised in the trustees' financial statements when it is repaid by HMRC.
1.5 Expenditure recognition
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.
Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the trust.
These financial statements include a provision for the cost of their preparation and independent examination.
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
8
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
1 Accounting policies (continued)
1.6 Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended respectively.
1.7 Charitable activities
Expenditure on charitable activities includes grants and support costs.
Support costs are allocated equally across each category of grant making activity and comprise management and administration expenditure relating to charitable activities. Support costs are detailed in note 6.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
1.8 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.
1.9 Financial instruments
The charity 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 charity's balance sheet when the charity 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.
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.
1.10 Investments
Investments are initially recognised at transaction value and subsequently at the balance sheet date. Listed investments are re-measured at fair value using the closing mid-market value as at the balance sheet date.
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
9
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
1.11 Realised gains and losses
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and their opening carrying value or their acquisition cost if acquired during the current financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
2 Donations and legacies
No donations were received during the current year. Legacies of £64,995 (2022: nil) from the Harold Berman Estate and £11,633 (2022: nil) from the Pauline Berman Estate were received during the year.
| 3 Investment income Interest from cash deposits 4 Expenditure on charitable activities Income from listed investments Support costs (see note 6) Grants awarded (see note 5) |
2023 £ 17,959 526 £18,485 2023 £ 223,500 6,840 £230,340 |
2022 £ 18,583 - £18,583 2022 £ 151,000 5,250 £156,250 |
|---|---|---|
5 Grant making activities
During the year the charity awarded grants to a number of charitable institutions in furtherance of its charitable activities. The charity did not engage in direct charitable activities or award grants to any individual person or persons.
| Grants awarded by category: Health and life preservation: St Lukes Hospice Langdon Foundation Harrow Ms Therapy Centre Jewish Deaf Association Princess Alice Hospice The Brain Tumour Charity Welfare and poverty relief: Nightingale Hammerson Jewish Care Education: Boys Clubhouse Ben Uri Gallery & Museum General charitable Total grants awarded during the year |
2023 £ 30,000 35,000 15,000 10,000 7,500 5,000 50,000 50,000 20,000 1,000 |
2023 £ 102,500 100,000 21,000 - £223,500 |
2022 £ 53,000 14,500 - 83,500 £151,000 |
|---|---|---|---|
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
10
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
| 6 Support costs Accountancy fees Independent Examiner's fees Bank charges |
Management / Governance Administration Total costs costs 2023 £ £ £ 5,040 - 5,040 1,800 - 1,800 - - - £6,840 £- £6,840 |
Total 2022 £ 4,800 - 450 £5,250 |
|---|---|---|
7 Staff costs
No staff were employed during the period by the charity, the daily administration of the charity being carried out by the trustees.
| 8 Fixed asset investments Market value at 5 April 2022 Additions to investments at cost Disposal proceeds Realised gain/(loss) on disposal of investments Unrealised gain/(loss) on revaluation of investments Market value at 5 April 2023 9 Analysis of current assets Cash at bank Coutts & Co - Current account Rathbones Investment Management - Capital account - Income account - Income Accumulation account Total cash 10 Debtors Accrued income The Estate of Harold Berman deceased. Total debtors |
2023 £ 780,937 88,730 (157,368) (10,003) (67,898) £634,398 2023 £ 55,953 888 783 17,175 £74,799 2023 £ 979 - £979 |
2022 £ 923,024 122,511 (304,222) 15,887 23,737 £780,937 2022 £ 122,620 518 1,741 20,806 £145,685 2022 £ 1,101 5 £1,106 |
|---|---|---|
THE PAULINE & HAROLD BERMAN CHARITABLE TRUST
11
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
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11 Analysis of liabilities 2023 2022
£ £
Creditors falling due within one year
Accountant's fees 5,040 4,800
-
Independent examiner's fees 1,800
Investment manager's fees 1,430 1,758
Total liabilities £8,270 £6,558
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12 Trustees' remuneration
No trustee or any person connected with a trustee has received or is due to receive any remuneration for the year directly or indirectly from the charity's funds.
No trustee has been reimbursed for expenses during the year.