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2021-04-05-accounts

Charity number: 209058

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

J E JOSEPH CHARITABLE FUND

CONTENTS

Page
Reference and administrative details of the Fund, its Trustee and advisers 1
Trustee's report 2 - 8
Trustee's responsibilities statement 9
Independent auditor's report on the financial statements 10 - 13
Statement of financial activities 14
Balance sheet 15
Notes to the financial statements 16 - 27

J E JOSEPH CHARITABLE FUND

REFERENCE AND ADMINISTRATIVE DETAILS OF THE FUND, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2021

Trustee

Representatives of J. E. Joseph Trustee Company Limited

Charity registered number

209058

Principal office

10 Compass Close, Edgware, Middlesex, HA8 8HU

Secretary

R Leon

Chairman

E Mocatta

Independent auditor

Blick Rothenberg Audit LLP, Palladium House, 1 - 4 Argyll Street, London, W1F 7LD

Bankers

C Hoare & Co, 37 Fleet Street, London, EC4P 4DQ

Investment advisor

Cazenove Capital Management Limited, 1 London Wall Place, London, EC27 5AU

Page 1

J E JOSEPH CHARITABLE FUND

TRUSTEE'S REPORT FOR THE YEAR ENDED 5 APRIL 2021

The Directors of the Corporate Trustee ("the Directors") present their annual report together with the audited financial statements of the Fund for the year from 6 April 2020 to 5 April 2021.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the 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).

Objectives and activities

a. Policies and objectives

The objects of the Fund are defined as charitable purposes for the benefit of the Jewish community, national and overseas, namely:

The Directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

The beneficial area was defined as national (areas mentioned in the codicil included London and Manchester) and overseas (including Israel and India). It was agreed in 1996 to regularise the distribution of grants by the adoption of broad guidelines whereby the Fund's distributable annual income would be allocated as 55% to Home charities, 35% to Israeli charities, 5% to Eastern (India) charities and 5% to sundry charities. The broad guidelines are still in place, though the figures have varied due to the greater need in Israel. In recent years, Israel's actual percentage has been on average higher and Home charities lower, as the Fund no longer supports some very large Home charities (see grant making policy). This year the percentage awarded in the UK was 64%, with the introduction of one new charity, 2% in India, and 34% in Israel. The total awarded in grants was £149,250, assisting over forty charities.

In setting objectives and planning for activities, the Directors have given due consideration to general guidance published by the Charity Commission relating to public benefit.

Page 2

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Objectives and activities (continued)

b. Grant-making policies

Applications for grants, from both new and existing applicants, are reviewed throughout the year, taking into account each applicant's activity and benefit to the community, its financial needs, the difference that assistance will make and whether alternative sources of income may be available, always in accordance with the Fund's objects. The Fund receives many more applications for consideration than it can support from its distributable income. Therefore, the Directors decided to reduce the number of awards made to large charitable organisations, some previously supported for many years, where the loss of the Fund's relatively small sums would not have a significant impact on their activities. This enabled the Fund to select new, worthy recipients in the UK and Israel. In general, grants are made to organisations rather than individuals, although help has occasionally been given in particular cases that could result in benefits for the wider community. The grants are approved and authorised by the Directors at a grants meeting, which takes place once a year, after the accounts have been approved and the level of income known.

In accordance with the governing documents, the capital of the Endowment Fund must be held permanently by the Fund, and is not available for grants.

Unlike the practice of previous years, due to the coronavirus pandemic ("COVID-19"), it was not possible for the secretary and Directors to visit both current and new applicants. The charities faced additional challenges, due to the COVID-19, which were taken into account by the Directors when considering the grant allocations. There was no doubt that the grants made a difference. These charities played a vital role in their respective fields.

As per the policy previously introduced, the Directors decided to reduce or not award grants to those charities with large incomes and multimillion-pound budgets. Grants would be directed more towards smaller charities, where the Fund's grants made a difference and were relatively important to them. This policy was implemented at the grants meeting. It was felt that in many cases, especially with regard to charities based in Israel, the financial information provided with the applications, in the form of audited accounts were too often not up to date. This was not helpful when deciding on grants. A majority of charities filed accounts to the end of December. To enable them to provide more relevant accounts, the grants meeting was held once again later in the year, in December 2020. This policy change had been very successful, with all the Israeli charities submitting more up to date accounts, which the Directors had found very helpful. It was also now a necessary condition that prompt submission of accounts to the monitoring authorities (e.g. the Charity Commission) had to be implemented.

Even more than in previous years, the Fund received many more applications than it could support from its limited funds available for distribution. However, the Fund does try, whenever possible, to respond favourably to new applications each year. This year, a grant was awarded to one new charity, Tiferet Eyal Synagogue, in Hendon, London. It was a growing community, where fundraising opportunities had been adversely affected by COVID-19. It also caters for a substantial number of members of Indian descent, which is important, given the Fund’s origin, at a time when it was proving difficult to increase the support in India. In total, fifteen new charities had been awarded grants in the last four years. As previously, we withdrew support from a small number of charities that would not be very affected by not receiving our grants.

In spite of Covid-19, as shown in Note 16, the Fund was able to support 27 charities in the U.K. with a total of £96,750 in grants. Some have received assistance for many years, others have been introduced more recently, with specific programs or general needs, suggested by them. In addition, 13 charities in Israel received grants totalling £50,000, at a time of great need. The charities are active in areas such as education, children and adult disabilities, relief of poverty, soup kitchens and care for the elderly, mainly in Jerusalem, but also in other Israeli cities. India presents challenges, with regard to governance and monitoring of the Fund’s grants to the charities receiving assistance.

Page 3

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Achievements and performance

a. Review of activities

The Statement of Financial Activities set out on page 14 of the financial statements shows how the Fund's incoming resources have been expended in the year ended 5 April 2021.

Total incoming resources amounted to £112,214 (2020: £178,288), which comprised income from investments. The Fund does not actively fundraise from the public.

Resources expended amounted to £242,419 (2020: £238,821), with £149,250 (2020: £152,000) defrayed in making grants, £71,314 (2020: £61,180) on investment management fees and £21,855 (2020: £25,641) on support and governance costs.

The investment portfolio generated net gains of £1,151,479 (2020: suffered net losses of £798,405).

Overall, the net increase in funds for the year was £1,021,274 (2020: net decrease of £858,938).

The statement of financial position set out on page 15 of the financial statements shows the financial position of the Fund at 5 April 2021.

The market value of the investments was £5,712,232 (2020: £4,530,574). Cash held within the investment portfolio amounted to £114,890 (2020: £223,708).

Current assets of £178,481 (2020: £227,997) is represented by accrued interest of £1,562 (2020: £7,105), and cash at bank of £176,919 (2020: £220,892).

Current liabilities of £17,250 (2020: £15,200) is represented by grants pledged, and paid after the year end, of £7,500 (2020: £9,500) and accrued expenditure of £9,750 (2020: £5,700).

The resulting net assets amount to £5,988,353 (2020: £4,967,079) which is represented by the accumulated balances on the permanent endowment fund of £5,840,200 (2020: £4,760,035) and the unrestricted income fund of £148,153 (2020: £207,044). The net assets of the Fund’s permanent endowment are held to generate sustainable income in order to support the Fund's activities. The net assets of the unrestricted income fund are to be applied towards the Fund's grant making activities and to meet the Fund's ongoing overheads and administrative expenses.

Page 4

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Achievements and performance (continued)

b. Investment policy and performance

As at 5 April 2021 the total funds were £5,988,353 an increase of 20.6% on the brought forward funds of £4,967,079. This is following a recovery of the stock markets this year. COVID-19 caused the stock markets to decrease substantially last year. Since 2008, the negative years had been 2011 (-2.3%), 2018 (-3.9%) and 2020 (-16.9%).

Within the portfolio, allocations to fixed income, absolute return, cash & gold have helped offset the negative equity returns while maintaining a spread of manager by style and selection. The trustees are confident that the investment values will rebound following an increase in consumer confidence after the year-end.

The investment income decreased to £112,214 compared to last year's income of £178,288. This decrease reflects the lower yields offered on securities, especially in the UK. It is also due to the adoption of a Total Return policy on income, following comprehensive discussions with the Fund Manager, Cazenove. A Total Return approach reduces the impact of market and dividend falls. It also gives charity investors greater flexibility. The portfolio is evolving to a fully global approach to equity investment. Charities may also be enabled to make slightly higher withdrawals, than with a strategy targeting an income only approach. This is because equities produce real capital returns over the period. It also provides the flexibility to increase diversification. The Directors agree an amount for distribution. Given returns of UK inflation +3% per annum are targeted, it makes sense to distribute 3% of the portfolio’s value each year. This figure is also similar to the portfolio’s historic income yield. Hence the figure of 3% was agreed.

The Directors continued to be prudent in their grant allocations, which totalled £149,250 (2020 - £152,000). A list of organisations that the Fund issued grants to is set out in note 6 of the financial statements.

Financial review

a. Going concern

The income of the Fund is almost entirely derived from investments held by an investment portfolio managed by Cazenove. The investment portfolio holds a diverse range of investments which reduce the investment holding risk. COVID-19 and the resulting lockdown saw a decline and then a recovery in global stock markets. The Directors are also aware of the possibility of reduced dividend and interest income. There are however significant unrestricted funds available and they consider that the Fund would continue to meet its obligations as they fall due.

The Directors therefore consider that there are no material uncertainties concerning the Fund’s ability to continue as a going concern.

b. Reserves policy

The free reserves of the trust as at 5 April 2021, which are the unrestricted funds, amounted to £148,153 (2020: £207,044). It is the policy of the Trust to allocate grants within six months of the accounts for the previous financial year being approved, up to a level in line with the unrestricted distributable income funds shown in those accounts. Thereby there will always be sufficient funds to cover management, administration and support costs and to respond to emergency applications for grants which arise from time to time.

The charity held endowment funds of £5,840,200, an increase on last year's £4,760,035.

Page 5

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

c. Principal risks and uncertainties

Equities, as measured by the MSCI World Index, fell last year, as investors digested the implications of Covid on company earnings and balance sheets. Economists expected a contraction in Global GDP of 3% in 2020, the worst outcome since the 1930’s. In fact, the contraction was 3.7%, slightly worse. The UK economy shrank by 1.5% in the first three months of this year, but grew by 2.1% in March. In 2020 it shrank by 9.9%. The forecast recovery in Global GDP is +5.3%. Amongst the risks, are the effects of new strains of the pandemic and more recently, worries about inflation.

Incomes will likely to be lower this year, as companies continue to preserve cash. This volatility showed the value of our fund’s diversified approach to asset allocation, protecting the portfolio.

d. Financial risk management objectives and policies

The Directors have assessed the major risks to which the Fund is exposed, in particular those related to the operations and finances of the Fund, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Structure, governance and management

a. Constitution

The trust was founded by will proved with a codicil thereto in the Principal Registry on 29 August 1946, in accordance with the wishes of Mr Joseph Edgar Joseph (1882 - 1946). It is a registered charity; No. 209058. In 1994 the Sophia Joseph Fund for Jerusalem, founded in 1961, was amalgamated with the Fund.

In 2019, the charity completed the setting up of the Corporate Trustee, J. E. Joseph Trustee Company Limited, as Trustee of the J. E. Joseph Charitable Fund. The new company had been registered with Companies House on the 6 June 2018 and incorporated as private limited company. Throughout the process, the Fund was guided and advised by Womble Bond Dickinson, an established firm of solicitors with much experience in this field. The Trustees of the Fund had been seeking to restructure the Charity in order to ensure that the assets can be held efficiently and the trustee body benefits from limited liability. The individual Trustees were no longer Trustees of the Fund, but were instead appointed as directors of the Corporate Trustee, which itself had been appointed as the sole Trustee of the Fund. As stated, it was necessary to update the Fund’s structure in the light of its growing size and the new legislation introduced by the Charity Commission, with regard to data protection, charity grant awards and Trustee liability. The Corporate Trustee itself has a £nil balance sheet and has filed dormant company accounts for the year to 5 April 2021.

Page 6

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Structure, governance and management (continued)

b. Methods of appointment or election of Directors

The management of the Fund is the responsibility of the directors of the Corporate Trustee who are elected and co-opted under the terms of the Trust deed. The Fund's recruitment needs are considered with the nominating bodies as needed. The administration of the Fund is dealt with by its secretary in consultation with the Directors of the Corporate Trustee. There are no employees. The Directors meet regularly, as needed, reviewing its investment strategy and authorising all grants. The Fund is aware of the need to provide training to its Directors as considered necessary.

In previous years, the following fixed-term Trustee appointments were made. Each of the persons listed below were appointed as directors of the Corporate Trustee on 6 June 2018 and resigned as Trustees of the Fund on 6 April 2019. At the same time, J. E. Joseph Trustee Company Limited was appointed as the sole Corporate Trustee in place of the previous Trustees.

c. Related party relationships

Transactions with related parties are set out in note 16.

Page 7

J E JOSEPH CHARITABLE FUND TRUSTEE'S REPORT {COMTINUED) FOR THE YEAR ENDED 5 APRIL 2021 Dlsclosure ol Inlorniation to audiior Each of the persons who are appointed as Directors of the Cryraie Tnjstee 8t the time when this TrLtslee's roport is approved has confirmed that.. so far as that the Truste8 is aware. there 18 Th) relevant audit inf(wmalion of which the ¢harty'8 audltor is urware, and th81 the Trustee h88 taken all the 8lep8 that ought to have been taken 8¥ a Trustee In order to be aw8re of any reLgvanl audit infoimalion and lo estsblk8h that the chanvs auditor is aware of that infomilon. Approved by (*dw oflhe merthrs of the boAfd of tXreclor8 of the Co￿•rate Tru6te8 and signed on their b8half by: RgpTesonlat oof J. E. Joseph Tru$t•o C¢)mpany Llmltod Trustee Dale.. 7" T-l>- 2021 Page 8

J E JOSEPH CHARITABLE FUND

STATEMENT OF TRUSTEE'S RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2021

The Trustee is responsible for preparing the Trustee's 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 Trustee to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Fund and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the Fund's transactions and disclose with reasonable accuracy at any time the financial position of the Fund 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 Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 9

J E JOSEPH CHARITABLE FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF J E JOSEPH CHARITABLE FUND

FOR THE YEAR ENDED 5 APRIL 2021

Opinion

We have audited the financial statements of J E Joseph Charitable Fund (the 'Fund') for the year ended 5 April 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 United Kingdom, including the Financial Reporting Council'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 Trustee's 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 Trustee with respect to going concern are described in the relevant sections of this report.

Page 10

J E JOSEPH CHARITABLE FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF J E JOSEPH CHARITABLE FUND (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Other information

The Trustee is responsible for the other information. The other information comprises the information included in the Annual 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 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustee's responsibilities statement, the Trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustee 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 Trustee is responsible for assessing the Fund'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 Trustee either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.

Page 11

J E JOSEPH CHARITABLE FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF J E JOSEPH CHARITABLE FUND (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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:

We assessed the susceptibility of the Fund’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 12

J E JOSEPH CHARITABLE FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF J E JOSEPH CHARITABLE FUND (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the corporate trustee and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Fund's trustee, 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 Fund's trustee 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 Fund and its Trustee, as a body, for our audit work, for this report, or for the opinions we have formed.

Blick Rothenberg Audit LLP

Chartered Accountants Statutory Auditor Palladium House 1 - 4 Argyll Street London W1F 7LD

Date: 12 July 2021

Blick Rothenberg Audit LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 13

J E JOSEPH CHARITABLE FUND

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
Income and endowments from:
Investments
3
Total income and endowments
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Net expenditure before net
gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
112,214
112,214
-
171,105
171,105
(58,891)
-
(58,891)
207,044
(58,891)
148,153		 Endowment
funds
2021
£
-
-
71,314
-
71,314
(71,314)
1,151,479
1,080,165
4,760,035
1,080,165
5,840,200		 Total
funds
2021
£
112,214
112,214
71,314
171,105
242,419
(130,205)
1,151,479
1,021,274
4,967,079
1,021,274
5,988,353		 Total
funds
2020
£
178,288
178,288
61,180
177,641
238,821
(60,533)
(798,405)
(858,938)
5,826,017
(858,938)
4,967,079

The Statement of financial activities includes all gains and losses recognised in the year.

Page 14

J E JOSEPH CHARITABLE FUND BALANCE SHEET FOR THE YEAR ENDED 5 APRIL 2021 2021 2020 Flxed assets Investments Currfrnl assets 10 5,827.122 4,754,282 Debtor8 a¥h at bank and In hand 11 1,662 176,919 7,105 220.892 178.481 227,997 Credltors: anounts fglllng due withMI one year 12 117.260) (15,21XIi Net ¢ufront 888ets 161.231 212,797 Total a8$ets lus current Ilabllltl 5,988.353 4.967,079 Total not a880ts 5,988,353 4,967,079 Charlty ltsnd• Endowment lund8 Unrestrlct8d fun¢JB 14 14 6.840,200 148,163 4,760,035 207,044 Tolal fund8 6,988,363 4,967,079 The financi ents were approvgj 8nd authoriged for i98ue byth8 Trustee and 81gned on their behalf by.. Ropre80ntatl J. E. Joseph Trustee steè Company Umlt•d Date: ?+L Th8 notes on pages 16 10 27 fo part of these ffinancial statement& Page 15

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. General information

The J E Joseph Charitable Fund is a Registered Charity in England and Wales with charity number 209058. It's principal address is 10 Compass Close, Edgware, Middlesex, HA8 8HU.

The financial statements are presented in Sterling (£).

2. Accounting policies

2.1 Basis of preparation of financial statements

The accounts (financial statements) have been prepared in accordance with the relevant version of the 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and 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 relevant version of the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 not to prepare a Statement of Cash Flows.

J E Joseph Charitable Fund meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The income of the Fund is almost entirely derived from investments held by an investment portfolio managed by Cazenove. The investment portfolio holds a diverse range of investments which reduce the investment holding risk. COVID-19 and the resulting lockdown saw a decline and then a recovery in global stock markets. The Directors are also aware of the possibility of reduced dividend and interest income. There are however significant unrestricted funds available and they consider that the Fund would continue to meet its obligations as they fall due.

The Directors therefore consider that there are no material uncertainties concerning the Fund’s ability to continue as a going concern.

2.3 Income

All income is recognised once the Fund has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Dividend and other investment income is recognised on an accruals basis once the Fund is entitled to its receipt. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 16

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. Accounting policies (continued)

2.4 Expenditure

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.

Expenditure on raising funds includes all expenditure incurred by the Fund to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Fund's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Fund; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

Investments held as fixed assets are shown at cost less provision for impairment.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Fund anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Page 17

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. Accounting policies (continued)

2.9 Financial instruments

The Fund has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the Fund becomes party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Fund after deducting all of its liabilities.

The Fund’s policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including other debtors, cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including other 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Impairment of financial assets

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the statement of financial activities.

Page 18

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. Accounting policies (continued)

Financial instruments (continued)

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Fund and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

2.11 Permanent endowment fund

The Funds has a single permanent endowment which is managed on a total return basis. The Trustee may allocate any part of the unapplied total return to the general purposes of the Trust, namely to promote the Fund's charitable objectives through making grants to appropriate institutions.

3. Investment income

Unrestricted
funds
2021
£
Dividends and fixed income securities
112,172
Interest on deposits
42
112,214		 Total
funds
2021
£
112,172
42
112,214		 Total
funds
2020
£
176,758
1,530
178,288

Page 19

J E JOSEPH CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

4. Investment management costs

Endowment Total Total
funds funds funds
2021 2021 2020
£ £ £
Investment management fees 71,314 71,314 61,180

5. Analysis of expenditure by activities

Home - General
Home - Schools
Far East
Israeli
Total 2020		 Grant
funding of
activities
2021
£
93,750
3,000
2,500
50,000
149,250
152,000		 Support
costs
2021
£
13,729
439
366
7,321
21,855
25,641		 Total
funds
2021
£
107,479
3,439
2,866
57,321
171,105
177,641		 Total
funds
2020
£
101,092
4,675
13,440
58,434
177,641

Analysis of support costs

Share of support
costs
Share of
governance
costs
Total 2020		 Home -
General
2021
£
5,236
8,493
13,729
14,591		 Home -
Schools
2021
£
168
271
439
675		 Far East
2021
£
140
226
366
1,940		 Israeli
2021
£
2,792
4,529
7,321
8,434		 Total
funds
2021
£
8,336
13,519
21,855
25,641		 Total
funds
2020
£
9,842
15,799
25,641

Page 20

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

6. Analysis of grants

During the year, the Fund made the following grants:

Ilford Eastern Sephardi Synagogue
University Jewish Chaplaincy Board
S&P Synagogue Welfare Board
Jewish Choice
Jewish Future Trust
Aish Ha'Torah
S&P Sephardi Community
Ezra U'Marpeh
Hospital Kosher Meals Services
Resource
Jewish Deaf Association
Raphael
Yad La'Em
Jewel
Step by Step
Camp Simcha
Paperweight Trust
JAMI
Mesila
Moishe House
March of the Living
Kisharon Day School
Sir Jacob Sassoon Charity Trust
World ORT UK
Gate of Heaven Synagogue in Thane
The Future Generation Fund
AKIM Jerusalem
Melabev
Shalva
Feuerstein Institute
Elul
Pardes Institute of Jewish Studies
Jerusalem Conservatory Hassadna
MANNA (UK branch of Meir Panim)
AKIM Haifa
Sunbeams
Jewish Volunteering Network (JVN)
Gift (Part of Jewish Futures Trust)
Bevis Marks Synagogue Heritage Foundation
Yeshivat Har Etzion
Jacob Benjamin Elias Synagogue
Jaffa Institute
Enosh
Tiferet Eyal Synagogue		 Amount
Home -
General
Home -
Schools
Far East
Israeli
2020
£
£
£
£
£
£
2,000
2,000
-
-
-
1,250
7,500
7,500
-
-
-
7,500
5,500
5,500
-
-
-
5,500
7,500
7,500
-
-
-
7,500
-
-
-
-
-
2,000
2,000
2,000
-
-
-
-
3,000
3,000
-
-
-
3,000
4,000
4,000
-
-
-
4,000
3,500
3,500
-
-
-
3,000
3,500
3,500
-
-
-
3,500
3,000
3,000
-
-
-
3,000
3,500
3,500
-
-
-
3,000
2,750
2,750
-
-
-
2,500
3,000
3,000
-
-
-
2,500
3,000
3,000
-
-
-
3,000
3,500
3,500
-
-
-
3,500
4,500
4,500
-
-
-
4,000
4,500
4,500
-
-
-
4,000
2,500
2,500
-
-
-
2,500
3,500
3,500
-
-
-
3,500
2,500
2,500
-
-
-
2,500
3,000
-
3,000
-
-
4,000
-
-
-
-
-
7,500
-
-
-
-
-
2,000
2,500
-
-
2,500
-
2,000
5,000
-
-
-
5,000
6,000
3,000
-
-
-
3,000
3,000
4,500
-
-
-
4,500
4,500
7,000
-
-
-
7,000
7,000
3,000
-
-
-
3,000
3,000
2,000
-
-
-
2,000
2,000
5,000
-
-
-
5,000
5,000
5,500
-
-
-
5,500
5,000
5,500
-
-
-
5,500
5,000
2,500
-
-
-
2,500
2,500
3,500
3,500
-
-
-
3,000
3,000
3,000
-
-
-
3,000
3,000
3,000
-
-
-
3,000
5,000
5,000
-
-
-
5,000
3,000
-
-
-
3,000
3,000
2,000
2,000
-
-
-
1,250
2,000
-
-
-
2,000
2,000
2,000
-
-
-
2,000
2,000
2,500
2,500
-
-
-
-
149,250
93,750
3,000
2,500
50,000
152,000

7. Auditor's remuneration

The auditor's remuneration amounts to an auditor fee of £6,000 (2020 - £5,700).

Page 21

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

8. Staff costs

There were no employees under contracts of employment during the year or the prior year.

No employee received remuneration amounting to more than £60,000 in either year.

9. Trustee's remuneration and expenses

During the year, no Directors of the Corporate Trustee received any remuneration or other benefits (2020 - £NIL).

During the year ended 5 April 2021, no Director or Trustee expenses have been incurred (2020 - £NIL).

10. Fixed asset investments

Cost or valuation
At 6 April 2020
Additions
Disposals
Revaluations
Cash movements
At 5 April 2021
Net book value
At 5 April 2021
At 5 April 2020		 Listed
investments
£
4,530,574
3,146,584
(2,685,333)
720,407
-
5,712,232
5,712,232
4,530,574		 Cash held in
investment
portfolio
£
223,708
-
-
-
(108,818)
114,890
114,890
223,708		 Total
£
4,754,282
3,146,584
(2,685,333)
720,407
(108,818)
5,827,122
5,827,122
4,754,282

Page 22

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Listed investments held at market value comprise:

UK Fixed Interest Securities
UK Equity Shares
Non-UK Equity Shares
Alternative Investments - Portfolio Funds
Alternative Investments - Property Funds
Alternative Investments - Asset Finance Income Funds
Non-UK Fixed Interest Securities		 2021
£
81,965
662,126
3,581,362
478,288
436,192
-
472,299
5,712,232		 2020
£
209,045
868,200
2,280,667
292,761
450,611
106,352
322,938
4,530,574

If listed investments had been valued under the historical cost convention they would have been included in the balance sheet at a cost of £5,004,946 (2020: £4,543,910).

11. Debtors

2021 2020
£ £
Due within one year
Prepayments and accrued income 1,562 7,105

12. Creditors: Amounts falling due within one year

2021 2020
£ £
Accruals and deferred income 17,250 15,200

Page 23

J E JOSEPH CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

13. Financial instruments

Financial assets
Financial assets measured at fair value through income and expenditure
Financial liabilities
Financial liabilities measured at amortised cost		 2021
£
5,712,232
2021
£
17,250		 2020
£
4,530,574
2020
£
15,200

Financial assets measured at fair value through income and expenditure comprise listed investments held within an investment portfolio.

Financial liabilities measured at amortised cost comprise other creditors.

Page 24

J E JOSEPH CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

14. Statement of funds

Statement of funds - current year

Balance at 6 Gains/ Balance at 5
April 2020 Income Expenditure (Losses) April 2021
£ £ £ £ £
Unrestricted funds
General Funds - all funds 207,044 112,214 (171,105) - 148,153
Endowment funds
Endowment Funds - all funds 4,760,035 - (71,314) 1,151,479 5,840,200
Total of funds 4,967,079 112,214 (242,419) 1,151,479 5,988,353
Statement of funds - prior year
Balance at Gains/ Balance at
6 April 2019 Income Expenditure (Losses) 5 April 2020
£ £ £ £ £
Unrestricted funds
General Funds - all funds 206,397 178,288 (177,641) - 207,044
Endowment funds
Endowment Funds - all funds 5,619,620 - (61,180) (798,405) 4,760,035
Total of funds 5,826,017 178,288 (238,821) (798,405) 4,967,079

Page 25

J E JOSEPH CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Fixed asset investments
-
Current assets
165,403
Creditors due within one year
(17,250)
Total
148,153
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£
Fixed asset investments
-
Current assets
222,244
Creditors due within one year
(15,200)
Total
207,044		 Endowment
funds
2021
£
5,827,122
13,078
-
5,840,200
Endowment
funds
2020
£
4,754,282
5,753
-
4,760,035		 Total
funds
2021
£
5,827,122
178,481
(17,250)
5,988,353
Total
funds
2020
£
4,754,282
227,997
(15,200)
4,967,079

Page 26

J E JOSEPH CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

16. Related party transactions

2021 2020
£ £
Grants to related parties 41,000 36,500

During the year, a grant payment of £5,500 (2020 - £5,500) was made to the S&P Sephardi Community Welfare Board, which is the nominating body of S Kendal.

During the year, a grant payment of £7,000 (2020 - £7,000) was made to the UK Friends of Shalva and a grant payment of £5,000 (2020 - £5,000) was made to Pardes, of which J Corré serves a Trustee.

During the year, a grant payment of £3,000 (2020 - £3,000) was made to The Jewish Deaf Association and a grant payment of £4,500 (2020 - £4,000), of which R Shemtob act as a Trustee during the year. The wife of R Shemtob is also a Trustee of the UK Friends of Shalva.

During the year, a grant payment of £5,500 (2020 - £5,000) was made to MANNA, of which M Sabah serves as a trustee.

During the year, a grant payment of £2,500 (2020 - £Nil) was made to Tiferet Eyal Synagogue, of which A Simon serves as a trustee.

During the year, a grant payment of £3,500 (2020 - £3,000) was made to Raphael and a grant payment of £4,500 (2020 - £4,000) to the PaperWeight Trust, of which the wife of S Pack serves as a Trustee.

The individuals listed above also serve as Directors of the Corporate Trustee, J. E. Joseph Trustee Company Limited.

17. Controlling party

The controlling parent is J. E. Joseph Trustee Company Limited, a company limited by guarantee registered in England and Wales. Its registered office is 10 Compass Close, Edgware, Middlesex, HA8 8HU. The company is dormant and acts as a Corporate Trustee to the Fund. The company is entitled to exemption from preparing consolidated financial statements under s383 of the Companies Act 2006.

Page 27