Charity Registration No. 1180783
THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION CIO ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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 - 11 |
THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 2 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 and activities
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:-
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charities connected with the Jewish community; and
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charities which support charitable projects in Israel; and
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charities which focus on music and the arts; and
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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 14 donations during the period totalling £30,712. The largest donation made during the year was £10,000 to the Jerusalem Academy of Music & Dance. The charity made a payment of £71,500 to the Royal College of Music in line with the agreement entered into in the previous year. At 31 December 2022 £357,000 of this grant remains unpaid and has been included in the creditors of the Charity (note 13), of which £71,500 is due within 1 year.
Financial review
Income for 2022 totalled £242, being interest on bank deposits. Expenditure totalled £34,298 and the net movement on investments was a loss of £138,060 leading to a total net movement in funds loss of £172,116.
Reserves policy
At 31 December 2022, the charity held reserves of £535,736 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 manages the investment portfolio of the charity in accordance with the charity's Investment Policy. The bulk of its funds are 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.
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
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
27 October 2023
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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 2022
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 2022, 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 Chartered Accountants
Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG
27 October 2023
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Investments | 3 | 242 | 2 |
| Expenditure on: | |||
| Charitable activities | 4 | 34,298 | 553,232 |
| Net gains/(losses) on investments | 10 | (138,060) | 53,082 |
| Net movement in funds | (172,116) | (500,148) | |
| Fund balances at 1 January 2022 | 707,852 | 1,208,000 | |
| Fund balances at 31 December 2022 | 535,736 | 707,852 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
BALANCE SHEET
AS AT 31 DECEMBER 2022
| Notes Fixed assets Investments 11 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 13 Net assets Income funds Unrestricted funds |
2022 £ £ 871,187 26,199 (76,150) (49,951) 821,236 (285,500) 535,736 535,736 535,736 |
2021 £ £ 1,084,168 56,534 (75,850) (19,316) 1,064,852 (357,000) 707,852 707,852 707,852 |
|---|---|---|
The financial statements were approved by the Trustees on 27 October 2023
Lilian Hochhauser CBE (Chair) Simon Hochhauser Trustee Trustee
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2022
1 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.
2 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.
2.1 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.
2.2 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.
2.3 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.
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2 Accounting policies
(Continued)
2.4 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.
2.5 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.
2.6 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.
2.7 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.
2.8 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.
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
2 Accounting policies
(Continued)
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 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.
3 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 242 | 2 |
4 Charitable activities
| Grant funding of activities (see note 5) Share of governance costs (see note 7) |
2022 £ 30,712 3,586 34,298 |
2021 £ 549,950 3,282 |
|---|---|---|
| 553,232 |
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
5 Grants payable
| Grants to institutions: Israel Philharmonic Orchestra Foundation UK Community Security Trust Ohel Sarah UK Jewish Blind and Disabled KKL Charity accounts The Jerusalem Academy of Music & Dance Hatzola Trust Limited Freinds of the Sick The Wigmore Hall Trust Royal College of Music Friends of Alyn Save A Child's Heart Other |
2022 £ 2,000 2,000 3,000 1,000 - 10,000 1,000 1,000 10,000 - - - 712 30,712 |
2021 £ - 1,500 1,000 - 9,600 - - 1,300 20,000 500,000 10,000 1,500 5,050 |
|---|---|---|
| 549,950 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Support costs
| Support costs | |||
|---|---|---|---|
| Accountancy Bank Charges Legal and professional Analysed between Charitable activities |
Support costs Governance costs £ £ - 3,360 - 163 - 63 - 3,586 - 3,586 |
2022 £ 3,360 163 63 3,586 3,586 |
2021 £ 3,210 10 62 |
| 3,282 | |||
| 3,282 |
8 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
8 Employees
(Continued)
There were no employees whose annual remuneration was more than £60,000.
9 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
10 Net gains/(losses) on investments
| Unrestricted Unrestricted | Unrestricted Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Revaluation of investments | (126,132) | 53,951 |
| Gain/(loss) on sale of investments | (11,928) | (869) |
| (138,060) | 53,082 |
11 Fixed asset investments
| Investments | |
|---|---|
| £ | |
| Cost or valuation | |
| At 1 January 2022 | 1,084,168 |
| Valuation changes | (126,053) |
| Disposals | (86,928) |
| At 31 December 2022 | 871,187 |
| Carrying amount | |
| At 31 December 2022 | 871,187 |
| At 31 December 2021 | 1,084,168 |
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THE VICTOR AND LILIAN HOCHHAUSER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| 11 Fixed asset investments Investments at fair value comprise: UK Equity Funds Cash on interest bearing deposits |
(Continued) 2022 2021 £ £ 870,056 1,083,116 1,131 1,052 871,187 1,084,168 |
(Continued) 2022 2021 £ £ 870,056 1,083,116 1,131 1,052 871,187 1,084,168 |
|---|---|---|
| 1,084,168 |
All investments are carried at their fair value.
12 Creditors: amounts falling due within one year
| Other creditors Accruals and deferred income |
2022 £ 71,500 4,650 76,150 |
2021 £ 71,500 4,350 |
|---|---|---|
| 75,850 |
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 | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Other creditors | 285,500 | 357,000 |
Included within other creditors is a grant payable to the Royal College of Music of £285,500. Under the terms of the agreement, the charity granted a total of £500,000 over seven years. The grant provides for six annual tuition scholarships known as The Victor and Lilian Hochhauser scholarships.
14 Taxation
The charity is exempt from Corporation Tax as all its income is charitable and is applied for charitable purposes.
15 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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