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2021-04-05-accounts

THE LAURENCE MOD￿0 CHARITABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED S APIUL 2021 Hackeryoung (hartEFedAccDuntants

THE LAURENCE MODIANO 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 LAURENCE MODIANO CHARITABLE TRUST

1

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their report and financial statements for the year ended 5 April 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, 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)".

Reference and Administrative Information

Charity Number: 1172973

Principal Office

4th Floor, Broad Street House, 55 Old Broad Street, London EC2M 1RX.

Trustees

Laurence Modiano Jon Saul Nathan Fredrik Carstens

Independent Examiner

Julie Mellowes FCCA of

UHY Hacker Young, Quadrant House, 4 Thomas More Square, London E1W 1YW.

Investment Advisors

Alvarium Investments Limited, 10 Old Burlington Street, London, W1S 3AG. LGT Vestra LLP, 14 Cornhill, London, EC3V 3NR.

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 year grants have been made to other organisations that are themselves charitable in nature.

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 grant making policy and in making awards.

Grant Making Policy

Proposals for grants are generated internally. External applications for funding are not considered.

Achievement and Performance

Grants of £303,188 (2020: £191,782) were awarded during the year.

THE LAURENCE MODIANO CHARITABLE TRUST

2

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2021

Plans for the Future

The charity will continue to support charitable activity particularly in, but not limited to, the cultural sector of the arts.

Financial Review

Incoming resources of the charity for the period amounted to £45,024 (2020: £854,603).

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 consider that investment performance is satisfactory.

Reserves Policy

The trustees' aim is to maintain free reserves in unrestricted funds at a level that will provide sufficient funds to respond to applications for grants and ensure that there are sufficient funds available to cover governance costs. As at 5 April 2021 the unrestricted fund balance amounted to £7,458,253 (2020: £5,989,934). This may be used in accordance with the charity's objectives, at the discretion of the Trustees.

Structure, Governance and Management

The trust is an unincorporated body, constituted under a trust deed dated 20 February 2017 and is a registered charity, number 1172973. The trust was established by an initial gift of £5,000 from Laurence Modiano. 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.

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.

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 reporting period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

THE LAURENCE MODIANO CHARITABLE TRUST

3

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2021

Statement of trustees' responsibilities (continued)

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and which 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

A pproved by the Trustees on Ja nuary 2022 and signed on their behalf by:

…………………………………..

J on Saul Nathan T rustee

VHY Hx*•r YtyJrw4 LLP Hackeryoung 4 Th(yna5 Plrfye Elw IIW Chèlie￿o ￿(￿Intsnts INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE LAURENCE MODIANO CHARITABLE TRUST FOR THE YEAR ENDED 5 APRIL 2021 I report to the trustees on my examinotion of th¢ ￿0￿nts of The Laurence Modiano Charitable Trust for the year ¢nded 5 Aprtl 2021. which are sd out on pages 5 to I l. This report is made solely to the ¢hariry's In￿le¢s. as a b(Mty, in accordan¢e with section 145 of the Char%lies Act 2011. My examinwion has been undertaken $0 that I might slat¢ to the ¢hariry's tyustees those matters l atn required to stale to them in an independent examiner'5 retM)rt and for no other purpose. To the fvllest extent pemittted by law, I do not accept or assume responsibilrty to anyone other than the charity's trustees &5 a body, for my examination. for this reporL or for the opinions I have f¢)rnied. R¢$pon5ibilities and basi5 of report A5 the charity trustees of the Trust, you are responsible for the preparntion of the ac¢ounts in a¢cordance with the requiretnents of the Charities Act 2011 (the Act,). I report in respect of my examination of the T[￿￿te&s, accounts carried out under se¢tion 145 of th¢ 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charty Commission under section 14515Xb) of the 2011 Ath. Independ¢nt ¢xAmin¢r's 5tat¢m¢nt I have CO￿pIeted tn>' examination. I Conf￿ that no rnalters have come lo my attention in connection wÉth the examination giving me cause to believe that in any material respect". {1) accounting record$ were not kept in r￿ct of the Tn]st as required by wtion 130 of the Act- or (21 the accounts do not accord with those records. or (3) the accounts do not comply with the applicable requir¢m¢nt5 conc￿1n8 the fonn and content of accounts set out in the Charities (Accounts and Reponsl Regulations 2008 other than any requiremeni thai the aceounts give a'true and faiP view which is not a matter considered &5 pan of on independent examination. I have no con¢erns and have com¢ across no other matters in connection with the examination to which attention Should be drawn in thi5 report in order to enable a proper understanding of the accounts to be reached. Julie Mellowes FCCA UHY Hocker Young Quadrant House 4 Thomas More Square LoDdon Elw IYW Date.. 2%ILJanuary 2022

THE LAURENCE MODIANO CHARITABLE TRUST

5

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
2021 2020
Unrestricted Unrestricted
funds funds
Note £ £
Income and endowments from:
Donations and legacies 2 - 811,876
Investment income 3 45,024 42,727
Total income 45,024 854,603
Expenditure on:
Raising funds 4 (9,402) (10,452)
Charitable activities 5 (308,867) (199,645)
Total expenditure (318,269) (210,097)
Net (expenditure)/income before gains/(losses)
on investments (273,245) 644,506
Net gains/(losses) on investments 9 1,741,609 (374,025)
Net (loss)/gain on foreign currency transactions (45) 19,696
Net movement in funds 1,468,319 290,177
Reconciliation of funds:
Total funds brought forward 5,989,934 5,699,757
Total funds carried forward £7,458,253 £5,989,934
----- End of picture text -----

All recognised gains and losses have been included in the Statement of Financial Activities and are derived from the continuing activities of the Charitable Trust.

THE LAURENCE MODIANO CHARITABLE TRUST

6

BALANCE SHEET

AS AT 5 APRIL 2021

----- Start of picture text -----
2021 2020
Note
£ £ £ £
Fixed assets
Investments at market value 9 7,529,122 6,067,219
Current assets
Cash at bank 10 13,416 17,842
13,416 17,842
Creditors: amounts falling due
within one year 11 (84,285) (60,127)
Net current (liabilities)/assets (70,869) (42,285)
Total assets less current liabilities 7,458,253 6,024,934
Creditors: amounts falling due after
more than one year 12 - (35,000)
Net assets £7,458,253 £5,989,934
The funds of the charity
Unrestricted funds 7,458,253 5,989,934
Total funds £7,458,253 £5,989,934
----- End of picture text -----

The financ ial statements on pages 5 to 11 were approved by the Trustees on January 2022 and are signed on their be half by:

………… …………………. Jon Saul N a th an Trustee

THE LAURENCE MODIANO CHARITABLE TRUST

7

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

Charity information

The Laurence Modiano Charitable Trust is a Charitable Trust established under a Trust Deed dated 20 February 2017.

1.1 Accounting convention

The 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 their 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.

The financial statements have been prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

These 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 charity 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

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.

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.

1.6 Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

THE LAURENCE MODIANO CHARITABLE TRUST

8

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

1.7 Charitable activities

The expenditure on charitable activities includes grants and governance costs.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice, including all management and administrative costs.

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 stated at market value as at the balance sheet date.

1.11 Gains and losses on investments

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 period. 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.

THE LAURENCE MODIANO CHARITABLE TRUST

9

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

2 Donations and legacies
Legacies
3 Investment income
Interest on cash deposits
4 Expenditure on raising funds
5 Expenditure on charitable activities
Governance costs (see note 7)
Grants awarded (see note 6)
Dividends and interest on listed investments
Investment management fees		 2021
£
-
-
£
2021
£
45,023
1
£45,024
2021
£
9,402
£9,402
2021
£
303,188
5,679
£308,867		 2020
£
811,876
£811,876
2020
£
41,224
1,503
£42,727
2020
£
10,452
£10,452
2020
£
191,782
7,863
£199,645

6 Analysis of grants

The charity undertook no direct charitable activities but awarded grants to a number of institutions in furtherance of its charitable activities.

Grants awarded during the year:
Music and the Arts
Humanitarian Aid
Education		 2021
£
292,833
-
10,355
£303,188		 2020
£
186,782
5,000
-
£191,782

THE LAURENCE MODIANO CHARITABLE TRUST

10

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

7 Governance costs
Management and administration
Accountancy fees
Audit fees
Independent examination fees
Bank charges		 2021
£
4,600
-
1,020
59
£5,679		 2020
£
4,362
3,456
-
45
£7,863

8 Staff costs

No staff were employed during the period by the charity, the daily administration of the charity being carried out by the trustees.

9 Fixed asset investments
Market value as at 5 April 2020
Additions to investments at cost
Disposal proceeds from investments
Realised gain on disposal of investments
Unrealised gain/(loss) on revaluation of investments
Market value at 5 April 2021
10 Analysis of current assets
Cash at bank
Alvarium Investments Limited
LGT Vestra LLP
Total cash		 2021
£
6,067,219
1,502,574
(1,782,280)
119,271
1,622,338
£7,529,122
2021
£
3,110
10,306
£13,416		 2020
£
4,556,848
5,759,994
(3,875,598)
1,614
(375,639)
£6,067,219
2020
£
2,309
15,533
£17,842

THE LAURENCE MODIANO CHARITABLE TRUST

11

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
11 Creditors: amounts falling due within one year 2021 2020
£ £
Accountancy fees 7,432 7,062
Audit fees 3,456 6,756
-
Independent examination fees 1,020
Investment management fees 2,377 2,126
Grants awarded for future payment 70,000 44,183
£84,285 £60,127
12 Creditors: amounts falling due after more than one year 2021 2020
£ £
-
Grants awarded for future payment 35,000
£ - 35,000
----- End of picture text -----

13 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

14 Related party transactions

During the year the charity received a legacy of £Nil (2020: £811,876) from the Estate of Barbara Modiano, the mother of the trustee Laurence Modiano. During the year the charity awarded grants of £256,492 (2020: £154,000) to Philharmonia Limited (registered charity number 250277) of which the trustees Laurence Modiano and Jon Saul Nathan are also trustees.