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2021-01-23-accounts

THE SACHS FOUNDATION

Trustees’ Report

and Financial Statements

for the year ended 23 January 2021

Registered Charity Number 1181874

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

CONTENTS

Page
Charity information 1
Trustees’report 2
Independent auditor’sreport 4
Statement of financial activities 6
Balance sheet 7
Accounting policies 8
Notes to the financial statements 10

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

CHARITY INFORMATION

Trustees

Paul Anthony Sachs (Settlor) Beverley Jane Sachs (Settlor) Coutts & Co (to 05 April 2021) Ludlow Trust Company Limited (from 06 April 2021)

Principal office

1st Floor Tower Wharf Cheese Lane Bristol BS2 0JJ

Registered charity number

1181874

Independent Auditor

Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Bankers and investment managers

Coutts & Co 440 Strand London WC2R 0QS

Page 1

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

TRUSTEES’ REPORT

The trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 23 January 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

STRUCTURE GOVERNANCE AND MANAGEMENT

The Sachs Foundation is a registered charity constituted under a trust deed dated 23 January 2019, and registered as a charity 5 February 2019.

The trust is controlled by the trustees. The power to appoint and remove trustees rests with the settlor trustees, or survivors of them, during their lifetime and subject to this is exercisable by the trustees from time to time.

On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by the existing co-trustees on the constitution of the Foundation, the day-to-day management, responsibilities of the trustees, the current objectives and future plans.

The trustees have assessed the major risks to which the charity is exposed. The trustees believe that by ensuring controls exist over key financial systems incorporating Coutts & Co’s systems and controls they have established effective systems to mitigate those risks.

OBJECTIVES AND ACTIVITIES

The charity’s objects are:

“To apply the income, and all or such part or parts of the capital, at such time or times and in such manner to, or for the benefit of such charities or such exclusively charitable purposes according to the law of England and Wales in any part of the world as the trustees may in their discretion think fit.”

In pursuance of its objects, the charity’s income, and, at the absolute discretion of the trustees, its capital, is applied in making grants to charitable organisations.

In determining how the charity should pursue its objects, the trustees have had regard to the Charity Commission's guidance on public benefit.

ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW

During the period under review the donations to the trust totalled £5,000,000 with associated gift at of £1,250,000 which have been added to the capital fund. Incoming resources for the period totalled £451,207 consisting of investment income of £15,156 and transfers from the capital fund of £436,051.

Charitable expenditure in the period comprised grants to charitable organisations totalling £436,180 while support and governance costs amounted to £12,882 with investment management fees of £3,602 giving total resources expended of £452,664.

Given the availability of the expendable endowment fund the trustees do not consider that the charity needs to maintain any significant free reserves although they recognise that such reserves will arise from time to time. As at 23 January 2021 free reserves were a surplus of £2,051.

PLANS FOR FUTURE PERIODS

The trustees intend to continue the charity’s grant-making activity.

Page 2

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

TRUSTEES’ REPORT

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 & Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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.

APPOINTMENT OF INDEPENDENT AUDITOR

For the period under review the charity exceeded the audit threshold and appointed Blue Spire Limited as auditors. Blue Spire Limited have expressed their willingness to remain as auditors of the charity.

Approved by the trustees and signed on their behalf.

Julian Doughty on behalf of Ludlow Trust Company Limited Trustee

11 October 2021 Date

Page 3

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANAURY 2021

INDEPENDENT AUDITORS’ REPORT

Independent Auditors’ Report to the Trustees of The Sachs Foundation

Opinion

We have audited the financial statements of The Sachs Foundation (the ‘charity’) for the year ended 23 January 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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 trustees’ report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Page 4

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

INDEPENDENT AUDITORS’ REPORT

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of financial statements which 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report 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, outlined 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Cawley Priory South Pallant Chichester West Sussex Blue Spire Limited, Statutory Auditor PO19 1SY 11 October 2021 Date

Blue Spire Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 5

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Investments
2
Total
EXPENDITURE ON:
Raising funds
3
Charitable activities
4
Total
Net gains/(losses) on investments
8
Net Income/(expenditure)
Transfers between funds
11
Net movement in funds
Reconciliation of funds:
Total funds brought forward
11
Total funds carried forward
11
Income
Fund
£
-
15,156
15,156
-
449,062
449,062
-
(433,906)
436,051
2,145
(94)
2,051
Capital
Fund
£
6,250,000
-
6,250,000
3,602
-
3,602
81,891
6,328,289
(436,051)
5,892,238
188,062
6,080,300
2021
Total
Funds
£
6,250,000
15,156
6,265,156
3,602
449,062
452,664
81,891
5,894,383
-
5,894,383
187,968
6,082,351
2020
Total
Funds
£
204,210
707
204,917
-
16,949
16,949
-
187,968
-
187,968
-
187,968

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.

Page 6

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

BALANCE SHEET AS AT 23 JANUARY 2021

Note
FIXED ASSETS
Investments
8
CURRENT ASSETS
Cash at hand and in bank
Total current assets
CURRENT LIABILITIES
Creditors: amounts falling due within one year
9
Net current assets/(liabilities)
Net assets/(liabilities)
THE FUNDS OF THE CHARITY
Capital (expendable endowment)
10, 11
Income
10, 11
Total charity funds
£
£
5,025,898
1,071,234
1,071,234
14,780
1,056,454
6,082,352
6,080,300
2,051
6,082,351
2021
188,768
188,768
800
-
187,968
187,968
188,062
(94)
187,968

The notes on pages 10 to 13 form part of the financial statements

Approved by the trustees and signed on their behalf

Julian Doughty on behalf of Ludlow Trust Company Limited Trustee

11 October 2021 Date

Page 7

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

ACCOUNTING POLICIES

General information, scope and basis of the financial statements

The Sachs Foundation is a registered unincorporated charity, established under a trust deed, in England and Wales. The address of the principal office is given in the charity information of these financial statements and the nature of the charity’s operations and principal activities are detailed in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below.

Statement of cash flows

The charity does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following expenditure headings:

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support and governance costs are those that assist the work of the charity but do not directly represent charitable activities. They are incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in the governance of the charity and primarily associated with the constitution and statutory requirements.

VAT

The charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA.

Taxation

The Charity is an exempt Charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the Charity's activities.

Page 8

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

ACCOUNTING POLICIES

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Where investments are denominated in currencies other than Sterling, transactions are translated at the rate prevailing at the date of the transaction and year end values are calculated using the exchange rate prevailing at the year end.

Debtors receivable and creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand and cash balances within the investment portfolio available for investment transaction purposes.

Fund accounting

Unrestricted income funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Capital (endowment) funds comprise the original gifts introduced by the settlor trustees and associated gift aid, together with the accumulated realised and unrealised surpluses arising on investments acquired with those gifts, less any donations made out of capital. The capital funds are expendable at the discretion of the trustees. Investment management charges and legal advice relating to the fund are charged against the fund. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 9

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies

Donations to trust
Gift aid
2. Income from investments
Income from investment assets
Interest on cash deposits
3. Raising funds
Investment management fees
Unrestricted
Funds
£
-
-
-
Unrestricted
Funds
£
14,888
268
15,156
Unrestricted
Funds
£
-
-
Endowment
Funds
£
5,000,000
1,250,000
6,250,000
Endowment
Funds
£
-
-
-
Endowment
Funds
£
3,602
3,602
2021
Total
Funds
£
5,000,000
1,250,000
6,250,000
2021
Total
Funds
£
14,888
268
15,156
2021
Total
Funds
£
3,602
3,602
Unrestricted
Funds
£
-
-
-
Unrestricted
Funds
£
-
707
707
Unrestricted
Funds
£
-
-
Endowment
Funds
£
204,210
-
204,210
Endowment
Funds
£
-
-
-
Endowment
Funds
£
-
-
2020
Total
Funds
£
204,210
-
204,210
2020
Total
Funds
£
-
707
707
2020
Total
Funds
£
-
-

4. Expenditure on charitable activities

Grants to institutions (see note 5)
Support and governance costs
Administrative management fees
Independent auditor's fee
Unrestricted
Funds
£
436,180
10,782
2,100
449,062
Endowment
Funds
£
-
-
-
-
2021
Total
Funds
£
436,180
10,782
2,100
449,062
Unrestricted
Funds
£
9,900
7,049
-
16,949
Endowment
Funds
£
-
-
-
-
2020
Total
Funds
£
9,900
7,049
-
16,949

Page 10

THE SACHS FOUNDATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

NOTES TO THE FINANCIAL STATEMENTS

5. Grants to institutions - one payment unless indicated

Chanctonbury PCC
Charlynne Boddie Ministries
13 payments
Crisis UK
Life Community Church Storrington
2 payments
Life Impact International
Life Support
7 payments
The Community Church Storrington
23 payments
2021
Total
Funds
£
10,000
18,000
20,000
330,000
10,550
28,580
19,050
436,180

6. Independent auditor's fees

6. Independent auditor's fees
Auditor's fee - audit Unrestricted
Funds
£
2,100
2,100
Endowment
Funds
£
-
-
2021
Total
Funds
£
2,100
2,100
Unrestricted
Funds
£
-
-
Endowment
Funds
£
-
-
2020
Total
Funds
£
-
-

7. Related party transactions

Fees payable to Coutts & Co, which was a trustee of the charity throughout the period, are included in notes 3 and 4 for investment management and administration services respectively as authorised under section 6 of the Trust Deed. At the balance sheet date £3,600 and £9,080 was accrued in respect of investment management and administrative charges.

The Trust has no employees, all administration being carried out by the trustees.

Other than the fees noted above, no remuneration was paid to nor expenses paid to or on behalf of any trustee during the period under review.

8. Fixed asset investments - Listed

Additions
Disposals at proceeds
Change in market value
Gains/(losses) on investments
2021
£
5,207,700
(263,693)
81,891
5,025,898
81,891
81,891
2020
£
-
-
-
-
-
-

Page 11

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

9. Creditors: amounts falling due within one year

9. Creditors: amounts falling due within one year
Accruals - Audit fees
Accruals - Administrative Management fees
Accruals - Investment Management fees
2021
£
2,100
9,080
3,600
14,780
2020
£
-
800
-
800

10. Analysis of net assets between funds

Fixed assets investments
Net current assets
Unrestricted
Funds
£
-
2,052
2,052
Endowment
Funds
£
5,025,898
1,054,402
6,080,300
2021
Total
Funds
£
5,025,898
1,056,454
6,082,352
Unrestricted
Funds
£
-
(94)
(94)
Endowment
Funds
£
-
188,062
188,062
2020
Total
Funds
£
-
187,968
187,968

11. Net movement in funds

11. Net movement in funds
Endowment funds
Unrestricted funds
Endowment funds
Unrestricted funds
Year ended 23 January 2021
Total funds
brought
resources
£
188,062
(94)
187,968
Total
incoming
resources
£
6,250,000
15,156
6,265,156
Total
resources
expended
£
(3,602)
(449,062)
(452,664)
Year ended 23
Transfers
between
funds
£
(436,051)
436,051
-
January 2020
Gains/(losses)
on investment
assets
£
81,891
-
81,891
Total funds
carried
forward
£
6,080,300
2,051
6,082,351
Total funds
brought
resources
£
-
-
-
Total
incoming
resources
£
204,210
707
204,917
Total
resources
expended
£
-
(16,949)
(16,949)
Transfers
between
funds
£
(16,148)
16,148
-
Gains/(losses)
on investment
assets
£
-
-
-
Total funds
carried
forward
£
188,062
(94)
187,968

The transfer from endowment to unrestricted funds was implemented to provide resources for grant awards in furtherance of the charity's objectives.

Page 12

FINANCIAL STATEMENTS FOR THE YEAR ENDED 23 JANUARY 2021

THE SACHS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

12. Financial instruments

The carrying amounts of the charity's financial instruments are as follows:

12. Financial instruments
The carrying amounts of the charity's financial instruments are as follows:
2021
Total
Funds
£
Financial assets
Measured at fair value through net income/(expenditure):
Fixed asset investments
5,025,898
5,025,898
The income, expense, net gains and net losses attributable to the charity's financial instruments are summarised as follows:
2021
Total
Funds
£
Income and expense
Financial assets measured at fair value through net income/(expenditure)
Investment income
14,888
Investment management fees
(3,602)
11,286
Net gains and losses (including changes In fair value)
Financial assets measured at fair value through net income/(expenditure)
Net gains/(losses) on investments
81,891
81,891
2020
Total
Funds
£
-
-
2020
Total
Funds
£
-
-
-
-
-

Fixed asset investments are held at fair value with valuations obtained by reference to market prices from the appropriate stock exchange, bid prices and last traded prices where applicable.

Page 13