**Charity Registration No. 1180783** **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION CIO ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Lilian Hochhauser CBE (Chair) Shari Greenberg Simon Hochhauser Mark Sofer Daniel Hochhauser **Charity number** 1180783 **Accountants** Bright Grahame Murray Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 2| |Accountants' report|3| |Statement of financial activities|4| |Balance sheet|5| |Notes to the financial statements|6 - 12| ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ The trustees present their annual report and financial statements for the year ended 31 December 2021. 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)” (as amended for accounting periods commencing from 1 January 2016). ## **Objectives, activities and aims** The charity's objects are, as approved by the Charity Commission, the advancement of such charitable purposes as the trustees in their absolute discretion consider appropriate. The aims of the charity are mainly to support other charities in their work by the granting of donations for either general use or specific projects, which reflects the purposes for which the charity was set up to further. The trustees have agreed that the primary areas of focus for the charity will be as follows:- - charities connected with the Jewish community; and - charities which support charitable projects in Israel; and - charities which focus on music and the arts; and - charities which provide social care or health care or which fund medical research. ## **Public Benefit** The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** The charity made 24 donations during the period totalling £549,950. The largest donation made during the year was £500,000 to the Royal College of Music. On 31 January 2021, the charity entered into an agreement with the Royal College of Music. Under the terms of the agreement, the Charity will grant a total of £500,000 over seven years, commencing in the 2021-2022 academic year. The grant will provide for six annual tuition scholarships to be known as The Victor and Lilian Hochhauser Scholarships. At 31 December 2021 £428,500 of this grant remains unpaid and has been included in the creditors of the Charity, of which £71,500 is due within 1 year. ## **Financial review** Income for 2021 totalled £2, being interest on bank deposits. Expenditure totalled £553,232 and the net position was a deficit of £500,148. ## **Reserves policy** At 31 December 2021, the charity held reserves of £707,852. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained. Capital funds are maintained in order to generate investment income and to fund the charity's objectives as no other fund-raising activities are undertaken. ## **Risk management** The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. The principal risk faced by the Charity lies in the performance of its investments. The trustees consider that the variability of investment returns constitute financial risk, which is mitigated by retaining experienced and expert investment managers. ## **Investment of Funds** On 25 September 2020, the charity entered into an agreement with Sarasin & Partners LLP ("Sarasin") whereby Sarasin will manage the investment portfolio of the charity in accordance with the charity's Investment Policy. The bulk of its funds are subsequently held in the Sarasin portfolio. ## **Plans for future periods** The charity has no plans to change its current objectives and activities and intends to continue making donations as long as resources are available. - 1 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **Structure, governance and management** The charity is a registered Charitable Incorporated Organisation (CIO) (Charity registration no 1180783), registered on 21 November 2018. It is governed by a constitution which established the objects and powers of the charitable organisation. The trustees who served during the year and up to the date of signature of the financial statements were: Lilian Hochhauser CBE (Chair) Shari Greenberg Simon Hochhauser Mark Sofer Daniel Hochhauser All of the above trustees were appointed on 21 November 2018. Apart from the first charity trustees listed above who are appointed for lifetime, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity. All trustees give their time voluntarily and receive no benefits from the charity. The founders of the CIO were Victor Hochhauser and Lilian Hochhauser. The organisational structure is such that the trustees are the officers of the organisation. The board of trustees meets regularly and gives detailed consideration to monitoring the progress of the charity in achieving its performance and objectives. This includes separating out returns from investments, governance reviews, grant strategies, approving grant applications as well as identification and management of risk. The trustees' report was approved by the Board of Trustees. ## **Lilian Hochhauser CBE (Chair)** Trustee Dated: 26 October 2022 - 2 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **CHARTERED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2021** In order to assist you to fulfil your duties under the Charities Act 2011, we have prepared for your approval the financial statements of The Victor and Lilian Hochhauser Foundation for the year ended 31 December 2021, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 28 July 2020. Our work has been undertaken solely to prepare for your approval the financial statements of The Victor and Lilian Hochhauser Foundation and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Victor and Lilian Hochhauser Foundation and the charity's trustees as a body, for our work or for this report. It is your duty to ensure that The Victor and Lilian Hochhauser Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of The Victor and Lilian Hochhauser Foundation. You consider that The Victor and Lilian Hochhauser Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.} We have not been instructed to carry out an audit or a review of the financial statements of The Victor and Lilian Hochhauser Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. ## **Bright Grahame Murray** 26 October 2022 ## **Chartered Accountants** Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG - 3 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ |||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2021**|**2020**| ||**Notes**|**£**|**£**| |**Income from:**|||| |Donations and legacies|**3**|-|41,875| |Investments|**4**|2|2,461| |**Total income**||2|44,336| |**Expenditure on:**|||| |Charitable activities|**5**|553,232|71,270| |Net gains/(losses) on investments|**10**|53,082|31,094| |**Net movement in funds**||(500,148)|4,160| |Fund balances at 1 January 2021||1,208,000|1,203,840| |**Fund balances at 31 December 2021**||707,852|1,208,000| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 4 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **BALANCE SHEET** ## _**AS AT 31 DECEMBER 2021**_ |**Notes**
**Fixed assets**
Investments
**11**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
Net current (liabilities)/assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**13**
**Net assets**
**Income funds**
Unrestricted funds|**2021**
**£**
**£**
1,084,168
56,534
(75,850)
(19,316)
1,064,852
(357,000)
707,852
707,852
707,852|**2020**
**£**
**£**
1,131,094
79,006
(2,100)
76,906
1,208,000
-
1,208,000
1,208,000
1,208,000|**2020**
**£**
**£**
1,131,094
79,006
(2,100)
76,906
1,208,000
-
1,208,000
1,208,000
1,208,000| |---|---|---|---| ||||1,208,000
-| ||||1,208,000| ||||1,208,000| ||||1,208,000| The financial statements were approved by the Trustees on 26 October 2022 Lilian Hochhauser CBE (Chair) Simon Hochhauser **Trustee Trustee** - 5 - **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** ## **Charity information** The Victor and Lilian Hochhauser Foundation is a registered Charitable Incorporated Organisation (CIO) (Charity registration no 1180783), registered on 21 November 2018. It is governed by a constitution which established the objects and powers of the charitable organisation. ## **1.1 Accounting convention** The accounts have been prepared in accordance 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The charity 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 have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The 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 £. The accounts have been prepared under the historical cost convention, except for valuation of investments which are stated 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** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Incoming resources** Income is recognised when the charity 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 charity 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 charity 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. - 6 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Resources expended** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. All expenditure is included in the Statement of Financial Activities on an accruals basis. Donations are payments made to third parties in the furtherance of the charitable objects of the Foundation, and are accounted for when the Trustees have agreed to pay the donation without conditions. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## **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. Investments are held and managed by a third party asset management firm, Sarasin & Partners LLP, and year end valuations are based on the portfolio report provided. ## **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 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. - 7 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans 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 charity’s contractual obligations expire or are discharged or cancelled. ## **2 Critical accounting estimates and judgements** In the application of the charity’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. There were no critical accounting judgements and estimates made by the trustees in the preparation of these financial statements. ## **3 Donations and legacies** ||**Total**|Unrestricted| |---|---|---| |||funds| ||**2021**|2020| ||**£**|£| |Donations and gifts|-|41,875| ## **4 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Interest receivable|2|2,461| - 8 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **5 Charitable activities** |Grant funding of activities (see note 6)
Share of governance costs (see note 7)|**2021**
**£**
549,950
3,282
553,232|**2020**
**£**
64,285
6,985| |---|---|---| |||71,270| **6 Grants payable** |Grants to institutions:
Israel Philharmonic Orchestra Foundation UK
Anglo-Israel Association
Ohel Sarah UK
British Emunah Fund
KKL Charity Accounts
Royal Academy of Dance
United Synagogue
University Jewish Chaplaincy
University College London Hospitals Charity
Shabbaton Choir
Tzedek
Board of Deputies Charitable Foundation
Royal College of Music
Wigmore Hall
Friends of Alyn
Save a Child's Heart
Community Security Trust
Other|**2021**
**£**
-
-
1,000
-
9,600
-
1,300
-
-
-
-
-
500,000
20,000
10,000
1,500
1,500
5,050
549,950|**2020**
**£**
2,000
5,000
1,000
1,000
6,685
5,000
100
4,000
25,000
1,000
1,000
3,000
3,000
-
-
-
-
6,500| |---|---|---| |||64,285| - 9 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **7 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Accountancy
-
3,210
Bank Charges
-
10
Legal and professional
-
62
-
3,282
Analysed between
Charitable activities
-
3,282|**2021**
**£**
3,210
10
62
3,282
3,282|**2020**
**£**
3,084
1
3,900| |---|---|---| |||6,985| |||6,985| ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. ## **9 Employees** The average monthly number of employees during the year was: |The average monthly number of employees during the year was:||| |---|---|---| ||**2021**|**2020**| ||**Number**|**Number**| |Total|-|-| |There were no employees whose annual remuneration was more than £60,000.||| ## **10 Net gains/(losses) on investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Revaluation of investments|53,951|31,094| |Gain/(loss) on sale of investments|(869)|-| ||53,082|31,094| - 10 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **11 Fixed asset investments** |**Cost or valuation**
At 1 January 2021
Valuation changes
Disposals
At 31 December 2021
**Carrying amount**
At 31 December 2021
At 31 December 2020|**0**
**£**
1,131,094
53,082
(100,008| |---|---| ||1,084,168| ||1,084,168| ||1,131,094| |Investments at fair value comprise:
UK Equity Funds
Cash on interest bearing deposits|**2021**
**£**
1,083,116
1,052
1,084,168|**2020**
**£**
1,130,080
1,014| |---|---|---| |||1,131,094| All investments are carried at their fair value. ## **12 Creditors: amounts falling due within one year** |Other creditors
Accruals and deferred income|**2021**
**£**
71,500
4,350
75,850|**2020**
**£**
-
2,100| |---|---|---| |||2,100| Included within other creditors is a grant payable to the Royal College of Music of £71,500 (Note 13). ## **13 Creditors: amounts falling due after more than one year** |**Creditors: amounts falling due after more than**|**one year**|| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |Other creditors|357,000|-| Included within other creditors is a grant payable to the Royal College of Music of £357,000. Under the terms of the agreement, the charity will grant a total of £500,000 over seven years. The grant provides for six annual tuition scholarships known as The Victor and Lilian Hochhauser scholarships. - 11 - ## **THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **14 Related party transactions** During the year the charity entered into the following transactions with related parties. The charity received gross donations totalling £nil from the trustees (2021: £41,875). During the year the charity made no grants to institutions where potential conflicts of interest were present. ## **15 Taxation** The charity is exempt from Corporation Tax as all its income is charitable and is applied for charitable purposes. - 12 -