**Registered Charity: 248136** ## **THE MICHAEL MARKS CHARITABLE TRUST** **FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **THE MICHAEL MARKS CHARITABLE TRUST** **INDEX TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **Page** ||1||Legal and administrative information| |---|---|---|---| |2|-|4|Report of the Trustees| |5|-|7|Independent Auditors’ Report| ||8||Statement of Financial Activities| ||9||Balance Sheet| |10|-|17|Notes to the Financial Statements| Page 1 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **LEGAL & ADMINISTRATIVE INFORMATION** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **Charity registration number** 248136 ## **Trustees** Marina, Lady Marks Professor Sir Christopher White Mr Noel Annesley ## **Registered Address** 5 Elm Tree Road, London, NW8 9JY ## **Auditors** Shipleys LLP 10 Orange Street, Haymarket, London, WC2H 7DQ ## **Legal Advisers** Charles Russell 5 Fleet Place, London, EC4M 7RD ## **Bankers** EFG Private Bank Limited Leconfield House, Curzon Street, London, W1J 5JB ## **Brokers** EFG Private Bank Limited Leconfield House, Curzon Street, London, W1J 5JB Page 2 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** The Trustees present their annual report and financial statements of the Trust for the year ended 31st January 2021. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Trust’s constitution, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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). ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Objects** The Michael Marks Charitable Trust is registered with the Charity Commissioners (registration number 248136). The Deed of Trust dated 15th March 1966 is the governing document of the Trust. The objects of the Trust are to apply capital and income to, towards or for the benefit of, such charitable purposes or charitable institutions as the Trustees in their absolute discretion shall determine. In pursuance of such objectives the Trustees have decided to exercise their discretion in favour of charitable objects concerned with the education, environment and the arts. The Trustees consider unsolicited applications when received. ## **Trustees** Marina, Lady Marks, Professor Sir Christopher White and Mr Noel Annesley served throughout the year ended 31st January, 2021. The Trustees meet as and when necessary to consider grant applications and this is usually once a year. They met in June 2019 but were unable to meet in person in 2020 due to the coronavirus pandemic. All decisions were made electronically during the year. ## **Recruitment and Appointment of Trustees** Trustees are appointed by the existing Trustees whenever a vacancy occurs. Other than Marina, Lady Marks and Sir Christopher White, they are initially appointed for three years but reappointment following that time is possible if the retiring Trustee continues to be available. ## **Trustee Induction and Training** All the Trustees are familiar with the practical work of the Trust. Following their nomination, new trustees are invited to attend a training session to familiarise themselves with the Trust and the context within which it operates. These cover: - The main obligations of the Board of Trustees. - Resourcing and the current financial position as set out in the latest published accounts. - Future plans and objectives. ## **RISK MANAGEMENT** The trustees perform a review to identify the major risks to which the Trust is exposed and have established systems and procedures to mitigate these risks. The Trustees have identified the major risk to which the Trust is exposed as being poor investment performance and the prevailing uncertainty in the national and international economies. The risk has been mitigated by ensuring that a diversified and conservative investment portfolio is held, advice is regularly sought and the investments are fully maintained by a qualified investment manager and regularly reviewed by the Trustees. Page 3 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **REPORT OF THE TRUSTEES – CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT** The Objects of the Trust are shown above. To meet these, the Trust has to generate income and capital growth from its investments. By making grants to other charities who support the environment, education and the arts, those three areas will be improved for all people who come into contact with the specific areas. The Trustees confirm that they have referred to the guidance contained in the Charity Commission guidance on public benefit when reviewing the Trust's aims and objectives and in planning the activities and grant-making policy for the year. The trustees of the Trust give their time freely and receive no remuneration for their services. ## **INVESTMENTS** The powers provided under the Trust Deed are broad and general and there are no restrictions on the Trust’s power to invest. The Trustees review investments to consider the risk profile and the income requirements. They take professional advice on the purchase and sale of investments where this is deemed necessary. ## **RESERVES** The Trust maintains a single general reserve that can be used for any purpose deemed in keeping with the charitable objectives of the Trust. ## **RESERVES POLICY AND FUTURE PLANS** The Trustees’ aim is to retain a total unrestricted fund of a minimum of £5,000,000 to generate sufficient investment income to pay charitable grants of up to £250,000 each year. During the year, the Trust generated income of £125,008 and grants of £27,500 were made. Due to the uncertainty surrounding the Coronavirus pandemic, the trustees decided to only make donations to their ongoing beneficiaries and the donations committed to at the prior year end. The reserves and the policy are monitored and reviewed annually. During the year, the general unrestricted fund decreased by £33,039 to £5,486,272 (2020: £5,519,311). The unrestricted fund is maintained to pay all future commitments made by the Trustees, to cover one year’s management costs and to respond to unsolicited applications that arise from time to time. The trustees will continue to review unsolicited applications and pay out grants subject to the income received by the Trust. Due to the pandemic, the trustees have changed their application process so that applications are now received electronically rather than through the post. ## **ACHIEVEMENTS AND FINANCIAL REVIEW** The Statement of Financial Activities for the year discloses a net income before gains and losses on investments of £89,457 (2020: net expense of £59,366). Total income amounted to £125,008, a decrease of £58,023 in comparison with the previous year. The decrease is due to no dividends being received during the year. Expenditure on charitable expenditure decreased by £206,812 to £32,340 which the Trustees acknowledge is not in line with their overall policy to pay charitable grants of up to £250,000 per annum. Due to the uncertainty surrounding the Coronavirus pandemic, the trustees decided to only make donations to their ongoing beneficiaries and the donations committed to at the prior year end. Governance costs are in line with the previous year. Investments are held to generate a sustainable income in support of the activities of the Trust and all assets are stated in the balance sheet at market value. The total fund decreased by 2.41% compared with a decrease of 6.41% in 2020. Page 4 THE MICHAEL MARKS CHARITABLE TRUST REPORT OF THE TRUSTEES- CONTINUED FOR THE YEAR E￿￿ED 31ST JANUARY, 2021 COVID-19 DUr1D￿ Ebr Y#￿ thr knlwity has b¢cn impaG*d by th¢ COVID-19 pandemic with a rcduction in invtstment value5 and income. The tr￿8¢ceS are monitoiing the portfolio and will tske investment advice ￿ necessary. The trust¢e5 have considered the level of current conllnithients and are confident that the charity has sufficient available cash balances to m¢d its liabilities as they fall due for a period of at le&si twelve months from approval of the8¢ ￿￿O￿nIs. STATEMENT OF TRUSTEES, RESPOYStBtLrrtES The Trustets are responsiTr*le for preparing the Trustees, Report and the financial sTatemenLS in accordance wilh applicable law and United Kingdom Aecounling Standards including the Financial RcEx)rting Standard applicable in the UK and Republic of Ireland (FRS 102) (United Kingdom Generally Acccptcd A¢wunting Practice). Th¢ law Jpplicablc to clwitics in England and Wal¢s t¢quires the TNste¢s to prcparc financial statuncnts for each finaDcial year which give a true and fair vicw of the state of affairs of the Trust and of the incoming resources and application of r¢sourees of the Trusi for thai period In prepanns these financial statements, the Trustees are required to.. select SUiEablc accounting poltei¢s and apply them consistenily: observe th¢ rneth￿ and principles of the Charities SOIiP; make judgements and esiitnates that are reasonable and prud stale whether applicable accouniing standgrds have been followed subject lo any departures disclosed and explained in the finan¢tal statements; and prepare the financial sthtLments on a 8oin8 concern basig unless it is inappropriaie to presume that the Tn]st will continue in busincss. The Trustees #re rcsw)nsible for keeping proper accounting records which disclose with reasonable accuracy al aDy time the fllwicial posiuon of th¢ Trust and enable them to ¢Usu￿ that ihc financial sthtem¢llts COU]ply with thr Chariiir¥ ALI 2011. th¢ Clwity (Accounts and Rcportsl Rcgulations Jnd th¢ provisions of tbe Trust Deed. They also responsible for safeguarding the ass¢ts of the Trust and hence for tsking reasonable sleps for the prevention and detection of fraud &nd other irregularities. The Tnwees are responsible for the maint¢nance and iniegriry of ihe Trust and the financial inforniation included on Ehe Trust's website (if any). Lewsl8tion in the United Kingdom governing the prwarntion and thssemitthtion of financial ststements may differ from legislation in other jurtsdictions. By Order of tht Trnstees •nd signed on their beh￿£ by: Lady Marks Trustee Date . S.-11_..&021 Page 5 ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF** ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **Opinion** We have audited the financial statements of The Michael Marks Charitable Trust for the year ended 31st January, 2021 which comprise the Statement of Financial Activities, the Balance Sheet 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 FRS 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: - give a true and fair view of the state of the Trust’s affairs as at 31st January, 2021 and of its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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 Trust 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Page 6 ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF** ## **THE MICHAEL MARKS CHARITABLE TRUST – CONTINUED** 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** In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 Trust'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 Trust 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 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. Page 7 ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF** ## **THE MICHAEL MARKS CHARITABLE TRUST – CONTINUED** 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 obtained an understanding of the charity’s activities, controls and laws and regulations and assessed the susceptibility of the charity’s financial statements to material misstatement from irregularities, including fraud. - We determined that the laws and regulations that are most significant to the charity are the Charities (Accounts and Reports) Regulations 2008, the Charities Act 2011, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), 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) (Charities SORP FRS 102) and the Trust Deed. - Based on this understanding we designed our audit procedures to detecting irregularities, including fraud. Testing undertaken included making enquiries of those charged with governance; journal entry testing; review of bank letters, trustee minutes and governing document; reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorʼs report. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ## **Use of our report** This report is made solely to the Trust's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Trust'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 Trust and the Trust's trustees as a body, for our audit work, for this report, or for the opinions we have formed. **Shipleys LLP Chartered Accountants & Statutory Auditors** 10 Orange Street Haymarket London WC2H 7DQ **9 November 2021** Shipleys 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 8 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** |||**2021**|**2020**| |---|---|---|---| |||**Unrestricted**|**Unrestricted**| ||**Notes**|**£**|**£**| |**INCOME**|||| |Investment income|2|125,008|183,031| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |**TOTAL INCOME**||125,008|183,031| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |**EXPENDITURE**|||| |Costs of raising funds|3|3,211|3,245| |Expenditure on charitable activities|4|32,340|239,152| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |**TOTAL EXPENDITURE**||35,551|242,397| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |**NET (EXPENSE)/INCOME AND NET MOVEMENT BEFORE**|||| |**GAINS AND LOSSES ON INVESTMENTS**||89,457|(59,366)| |Net losses on investments|7|(122,496)|(341,773)| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |**NET MOVEMENTS IN FUND**||(33,039)|(401,139)| |**UNRESTRICTED FUND BALANCE BROUGHT FORWARD**|||| |**AT 1ST FEBRUARY, 2020**||5,519,311|5,920,450| |||¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯| |**UNRESTRICTED FUND BALANCE CARRIED FORWARD**|||| |**AT 31ST JANUARY, 2021**||£5,486,272|£5,519,311| |||=======|=======| The notes on pages 10 to 17 form an integral part of these financial statements. Page 9 THE MICHAEL MARKS CHARITABLE TRUST BALANCE SHEET S AT 31ST JKYUARY. 2021 2021 2020 Unre5trlcled Notes FIXED ASSETS Investhjcnts 4,805.647 5,084.053 CURRENT ASSETS Ikbiors Cash at bank 48,332 667,473 46,862 455,021 715.805 501.883 CURRENT LIABILrriES CREDrroRS: Amounts (aUin8 due withln olle yexr (35,180) (66.625) NET CURRENT ASSETS 680.625 435.258 TOTAL ASSETS LFSS CiIRREWT LIABILITtES 5.486272 5.519.311 NET ASSETS £5.486272 £5.519.311 Represented by: UNRESIIUCTED FUNDS £5,486.272 £5,519.311 Approved by the Trustees on And *re Jlgned on tbefir behalf by: Lady Marks Trujtce Th¢ notes on pages 10 ￿ 17 forni an integral part of these financial stat¢ments, Page 10 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **1. ACCOUNTING POLICIES** ## **1.1 General information** The Michael Marks Charitable Trust is an unincorporated trust governed by a trust deed and registered with the Charity Commission in England. The principal address is 5 Elm Tree Road, London, NW8 9JY. The objectives of the trust are set out on page 2. ## **1.2 Basis of Accounting** The financial statements have been prepared under the historical cost convention, with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), 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) – (Charities SORP FRS 102) and the Charities Act 2011. The 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Trust meets the definition of a public benefit entity under FRS 102. The functional currency of the trust is considered to be pounds sterling because that is the currency of the primary economic environment in which the Trust operates. The financial statements are also presented in pounds sterling. Amounts are presented to the nearest £, unless otherwise stated. There are no significant areas requiring material judgements, estimates or assumptions. ## **1.3 Cash flow statement** The trust has taken advantage of the exemption in the Charities SORP FRS 102 from the requirement to produce a cash flow statement on the grounds that it is a small charity. ## **1.4 Preparation of the accounts on a going concern basis** The trustees consider that there are no material uncertainties about the trust’s ability to continue as a going concern for at least twelve months from the date of approving the accounts. The trustees have considered the investment performance during the year and the level of current commitments. The most significant areas of uncertainty that affect the future carrying value of assets held by the Trust are the level of investment return and the performance of investment markets. The accounts have been prepared on a going concern basis. Page 11 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **1. ACCOUNTING POLICIES** _**(continued)**_ ## **1.5 Income** All income is recognised once the trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the trust; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio. ## **1.6 Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Costs of raising funds comprise the costs associated with managing the investment portfolio. Expenditure of charitable activities includes grants made and governance costs. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust. Unconditional grant offers are accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust. The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Trust that would permit the Trust to avoid making the future payments, settlement is probable and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the Trust. Governance costs represents those costs of strategic management of the Trust and of complying with constitutional and statutory requirements. Irrecoverable VAT is charged against the expenditure heading for which it was incurred. Page 12 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **1. ACCOUNTING POLICIES** _**(continued)**_ ## **1.7 Investments** Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year. ## **1.8 Gains and Losses on Investments** All gains and losses are taken to the Statement of Financial Activities when they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. ## **1.9 Cash at bank** Cash at bank and cash 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. ## **1.10 Financial instruments** The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **1.11 Fund Accounting** The unrestricted fund comprises funds to be used in pursuance of the Trust’s objectives at the discretion of the Trustees. |**2.**|**INVESTMENT INCOME**|**2021**|**2020**| |---|---|---|---| ||Dividends|-|56,310| ||Interest from bonds|118,070|111,391| ||Interest on bank deposits|6,938|15,330| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯| |||£125,008|£183,031| |||======|======| |**3.**|**COSTS OF RAISING FUNDS**|**£**|**£**| ||Investment custody fees|£3,211|£3,245| |||=====|====| Page 13 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **4. EXPENDITURE ON CHARITABLE ACTIVITIES** The Trust undertakes its charitable activities through grant making and awarded grants to a number of institutions in furtherance of its charitable activities. Governance costs are allocated to the grant making activities as this is the sole activity of the Trust. |activities as this is the sole activity of the Trust.||| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |Grants to institutions|27,500|234,312| |Governance costs (note 5)|4,840|4,840| ||¯¯¯¯¯¯¯|¯¯¯¯¯¯| ||£32,340|£239,152| ||======|======| |Grants were made during the year or provided as charitable commitments at the end of the year to the||| |following organisations:-||| |Ashmolean Museum Oxford University|-|10,000| |Berwick Conservation Trust|-|5,000| |Birmingham Opera Company|-|3,500| |British Library|-|15,932| |Clean Rivers Trust|-|5,000| |Dulwich Picture Gallery|-|5,000| |Etaireia Messeniakon Spoudon|-|3,000| |Future Trees Trust|-|2,000| |Greek Archaeological Society of Great Britain|-|500| |Harper Asprey Wildlife Rescue|-|980| |HART Wildlife Rescue|-|1,000| |Harvard Centre of Hellenic Studies|3,500|3,500| |Jewish Community of Thessaloniki|-|22,500| |Landmark Trust|-|5,000| |London Wildlife Trust|-|5,000| |National Portrait Gallery|-|7,000| |National Theatre|-|7,500| |Oxford Philharmonic Orchestra|-|29,800| |Parochial Church Council Of The Ecclesiastical|-|| |Parish Of St Lenard||1,000| |Red Squirrel South West Project|-|5,000| |Scottish Baroque Ensemble|-|20,000| |Sea Life Trust|-|5,000| |Sound Waves SCIO|-|3,000| ||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| |Carried Forward|3,500|166,212| Grants were made during the year or provided as charitable commitments at the end of the year to the following organisations:- Page 14 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **4. EXPENDITURE ON CHARITABLE ACTIVITIES** _**(continued)**_ ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |Brought forward|3,500|166,212| |Species Recovery Trust|-|3,200| |Suffolk Building Preservation Trust|-|2,000| |Surfers against sewage|-|3,000| |Teatru Manoel|-|10,000| |Theatre Lab Company|-|3,000| |Thomas Heatherly Educational Trust|-|17,900| |Wildfoul and Wetlands Trust|-|5,000| |Wild Planet Trust|-|2,000| |Wordsworth Trust|24,000|22,000| ||¯¯¯¯¯¯¯|¯¯¯¯¯¯¯| ||£27,500|£234,312| ||======|======| During the year, the charity provided grants of £27,500 (2020: £141,732) to charities relating to the arts, £nil (2020: £49,180) for the environment and £nil (2020: £43,400) for education. ## **5.** ## **GOVERNANCE COSTS** |**GOVERNANCE COSTS**||| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |Audit fees|2,340|2,340| |Accountancy fees|2,500|2,500| ||¯¯¯¯¯¯|¯¯¯¯¯| ||£4,840|£4,840| ||=====|====| Auditors remuneration consisted of audit fees of £2,340 (2020: £2,340) and accountancy fees of £2,500 (2020: £2,500). ## **6. TRUSTEES’ AND STAFF REMUNERATION AND RELATED PARTIES** The Trustees received no remuneration or expenses during the year (2020: £nil). No transactions with related parties were undertaken such as are required to be disclosed under FRS 102 “The Financial Reporting Standard applicable in the UK and the Republic of Ireland” or the Charities SORP FRS 102. The Trust did not employ any staff during the year. Page 15 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** |**7.**|**FIXED ASSET INVESTMENTS**||**Cash held**|| |---|---|---|---|---| |||**Listed**|**as part of**|| |||**Investments**|
**portfolio**|**Total**| |||**£**|**£**|**£**| ||Market Value at 1st February, 2020|4,084,053|1,000,000|£5,084,053| ||Disposals in year|(156,250)|-|(156,250)| ||Net loss on revaluation|(122,496)|-|(122,496)| ||Deposit of cash|-|340|340| |||¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯| ||Market Value at 31st January, 2021|£3,805,307|£1,000,340|£4,805,647| |||¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯| ||**Historical Cost**|||| ||At 31st January, 2021|£3,069,120|£1,000,340|£4,069,460| |||=======|=======|========| ||At 31st January, 2020|£3,223,608|£1,000,000|£4,223,608| |||=======|=======|========| All the above are UK investments held in safe custody for the Trust by EFG Private Bank Ltd. Investments at fair value comprise the following: ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |Equities|724,609|900,962| |Bonds|3,080,698|3,183,091| |Cash held as part of portfolio|1,000,340|1,000,000| ||¯¯¯¯¯¯¯¯|¯¯¯¯¯¯¯¯| ||£4,805,647|£5,084,053| ||=======|=======| All investments are carried at fair value. Investments in equities and bonds are all traded in quoted public markets, primarily the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). Holdings representing more than 5% of the market value of the Trust’s investments: ||**Holding**|**Market Value**| |---|---|---| |Marks & Spencer Group plc||| |Ordinary Shares of 25p each|511,910|£724,609| |Glencore Finance 3.125% 26/03/26|300,000|£324,285| |Deutsche Telekom 3.125% 06/02/34|300,000|£359,571| |Rabobank Nederland 4.875% 10/1/23|400,000|£435,744| ||======|========| Page 16 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **7. FIXED ASSETS INVESTMENTS** _**(continued)**_ The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. This risk is mitigated by obtaining investment advice and ensuring a diversified portfolio is held. |**8.**|**DEBTORS**|**2021**|**2020**| |---|---|---|---| |||**£**|**£**| ||Accrued income|£48,332|£46,862| |||=====|=====| |**9.**|**CREDITORS: Amounts falling due within one year**|**£**|**£**| ||Accruals|9,680|4,840| ||Charitable Commitments (Note 10)|25,500|61,785| |||¯¯¯¯¯¯¯|¯¯¯¯¯¯| |||£35,180|£66,625| |||======|======| ## **10. CHARITABLE COMMITMENTS** Provision has been made in the financial statements for the following material charitable commitments, the amounts shown being the gross grants:- |||**£**|| |---|---|---|---| |Wordsworth Trust||22,000|Within one year| |British Library||3,500|Within one year| |||=====|| |**Reconciliation of Charitable Commitments**|**2021**||**2020**| ||**£**||**£**| |Commitments at 1st February, 2020|61,785||35,428| |Payments made in year|(61,785)||(35,428)| |Commitments made in year|25,500||61,785| ||¯¯¯¯¯¯¯||¯¯¯¯¯¯¯| |Commitments at 31st January, 2021|£25,500||£61,785| ||======||======| |Commitments at 31st January, 2021 are payable as follows:-|||| |Within one year|25,500||61,785| |After more than one year|-||-| ||¯¯¯¯¯||¯¯¯¯¯¯¯| ||£25,500||£61,785| ||======||======| Page 17 ## **THE MICHAEL MARKS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED** ## **FOR THE YEAR ENDED 31ST JANUARY, 2021** ## **11. CONTINGENT LIABILITIES** There were no contingent liabilities as at 31st January, 2021. ## **12. TAXATION** The Trust is exempt from tax on income and gains to the extent that these are applied to its charitable objects.