Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Reglstered Charity: 248136 THE MICHAEL MARKS CHARITABLE TRUST FINANCIAL STATEMELYrs FOR THE YEAR ETr4DED 31ST JANUARY. 2023 Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 THE MICHAEL MARKS CHAIUTABLE TRUST INDEX TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JANUARY, 2023 Page Legal and administrative infomiation Report of th¢ Tr￿Stee$ Indep¢ndent Auditors, Report Statemerrt of Financial Activities Balance Sheet 10-17 Noles to the Financial Statements Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page I THE MICHAEL MARKS CHARITABLE TRUST LEGAL & ADMINISTRATIVE INFORMATION FOR THE YEAR ETrIDED 31ST JANUARY, 2023 Charity registration number 248136 Trystees Marina Lady Marks Professor Sir Christopher White Mr Noel Annesley Registered Address 5 Elm Tree Ro&d, London, NW8 9JY Auditors Shipleys LLP 10 Orange Street, Haymarket. London. WC2H 7DQ Legal Advisers Charles Russell 5 Fleet Pla¢e, London. EC4M 7RD Bankers EFG Privat¢ Bank Limited Leconfield House. Curzon Streel. London, WIJ 5JB Broker5 EFG Private Bank Limited Leconfield House. Curzon Street, London, WIJ 5JB Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 2 THE MICHAEL MARKS CHAIUTABLE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JANUARY, 2023 Th¢ TnLStees present their annual report and financial statements of the Trust for ihe year ended 31st January 2023. The fmancial statements h&v¢ been prepared in a¢cordance with ihe accounting policies set out in Note l and comply with the Trust's constitutio￿ the Chorilies Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Accounting and Reporting by Charities: Statemcnt of Recommended Pradi¢e applicable to charities preparing their a¢c4)unls in a￿ordanCe with the Financial Reporting Standard applieable in the UK and Republic of Ireland (FRS 102). STRUCTURE, GOVERNANCE AND MANAGEMENr Objects The Michacl Marks Charitable Trust is r¢gistered with the Charity Cornmissioners (registration number 248136). The Deed of Trust dated 15th March 1966 15 the goveming document of the Trust. The objects of the Trust are to apply capilal and income to, towards or for ihe benefit of, such ¢haritsble putyoses or charitable institulions as th¢ Trustees in their absolute discretion shall detern?ine. In pursuance of such objectivcs the TnLStees have decided to exercise their discretion in favour of charitable objects concern¢d with the educatio￿ environment and the arts. The TrLLStees Consider unsolicited applications when re¢eiv¢d. Trustees Marina, Lady MArks. Professor Sir Christopher White and Mr Noel Annesl¢y served througboul the year ended 3 1st January. 2023. The Trustees llleet as and when necessary to consider grant applications and this is usually once a y¢ar. They met in June 2022. Re¢rultment and AppointmeDt of Trustees Trustees are appoint¢d by the existing Trustees whenever a vacancy occurs. Other than mari[￿ Lady Marks and Sir Christopher White, they are initially appoint¢d for tEuee years but reappointment following that time is possible if thc retiring TNstee continu¢s lo be available. Trustee Induction and TrainiDg All the Trustee5 are familiar with the pra¢tical work of the Trust. Following their nomination, new Irustees ar¢ invited lo attend a training session to familiarise thems¢lves with the Trust and the context within whi¢h it opeTates. Thesc ¢over: The main obligations of the Board of Trustees. Resourcing and ihe Current financial position as set out in the latest published accounts. Future plans and obj¢¢tives. RTSK MANAGEMFNT The trust¢¢s perforn] a review to identify the major risks to which the Trust is exposed and hay¢ estsblished systems and procedures to mitigate these risks. The Truslees havc identified the major risk to which the Tnjst is exposed as being poor investment perfonnance and the PTevailing 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 th¢ investments are fully maintained by a qu￿7r1ed investment manager and regularly reviewed by the Trusl¢es. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 3 THE MICHAEL MARKS CHAIUTABLE TRUST REPORT OF THE TRUSTF.ES- CONTINUED FOR THE YEAR ENDED 31ST JANUARY, 2023 OBJECTIVF,S AND AcfiviTIES FOR THE PUBLIC BENEFIT The Objecis of the Trust are shown above. To meet these, the Trust has lo gener￿¢ 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 conta¢t with the specific artrds. The Trustees confirnj that they have referred fo the guidance contained in th¢ Charity CoJnmission guidance on public bencfii when Teviewing the Trusvs aims and objectives and in planning the activities and grant-making policy for ihe y¢ar. The trustees of the Trust give their time freely and ￿ceive no remuneration for their servi￿S. INVESTMENTS The powcrs provided under the Trust tked are broad and general and th¢re are no r¢strictions on th¢ Trust. poweI to invest. The Trustees review investmcnts to consider the risk profile and the income requirement5. They take professional advice on th¢ purchase and sale of investments where this is deemed necessary. RESERVES The Trust maintains a single general r¢serve that can be used for any purpose deemed in keeping with the charitsble objectives of the Tru5L RFSERVES POLICY AND FtrruRE PLANS The TNstees' &im is to retain a total unrestri¢l¢d fund of a minimum of £5.0￿.000 io generate sufficient investment income to pay chariiabl¢ grants of up to £250,000 each year. During the year, the Trust generated income of £143,837 and grants of £85,780 were made. The reserves and the policy are moDltored and Teview¢d annually. During the ye￿. lh¢ general unrestri¢ted fund de¢reased by £681,121 to £5,004,483 (2022: £5.725.604). The unrestricted fund is mainiaincd lo pay all future commitments made by the Trnstees. to ¢ovcr one year's management costs and to respond to unsolieiled applications that arise from time to tim¢. Thc trustees will continue to review unsolicited applications and pay out grant5 subject to the in¢ome received by the Trust. Due to the panderni¢. the trustees have changed their application PTOCCSS so that appli¢ations arc now reccived electronically rather than through the post. ACHIEVEMENTS AND FINAI¥CIAL REVIEW The Statement of Financial Activilies for the year discloses a net income before gains and losses on investments of £54,662 (2022- nei ¢xpeDse of £9.987). Total in¢ome amounted to £143,837. an increase of £15,946 in comparison with the p￿ViOUS year. Expenditu￿ on charitable expenditur¢ decreased by £45,115 to £90,620 which the Trustees acknowledge is not in line with their overall policy to pay ¢haritable grants of up to £250,000 per annum. Due to the uncertainty surrounding the Coronavirus pandemic, the trustees have been cautious in setting the l¢vel of commitments this year. Governance Costs ore in line with the previous year. Investments are held to generatc a sustainable income in support of the activities of the Trust and all asscts are staled in the balance sheet at market value. The total fund decreased by 16.90/0 Compared with an in¢rease of 5.19t)/o in 2022. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 4 THE MICHAEL MARKS CHARITABLE TRUST REPORT OF THE TRUSTEES- CONTINUED FOR THE YEAR ENDED 31ST JANUARY, 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing tlie Truslees, Repori and the financial 8taiement8 in Jccordance with applicable law and United Kingdom Accouiiting Si8iidards including Ihe Financial Reporting Siandard applicable In the UK and Republic of Irelattd (FRS 102) (United Kingdom Gencrally Ac¢epted Accounting Praciice). The laiv applicable lo charili¢s in Eu¥lai)d 8nd Wales requires the TtU5tees to prepar¢ fInan¢ial statements for each financial year which giv¢ a true and Fair view of Ihe stale of affairs of lh¢ Trust and of the incoming resources and applicolion of resouices of tli¢ TNst for that period. In preparing these financial statements, lh¢ Trusiecs a]t r¢quTred 10: select suitable accounting polici¢s and apply them ¢onsistently' obserye the meihods and principles of the Cl)arilies SORP. make judgements and estimates that are r¢gsonable and prudent- State wheth¢T appli¢abl¢ accounting s¢andards hav¢ bccn followed. subject to any deparNTe5 disclosed and explained in the financial statements. and prepare t]ie financ7#1 siaiements on a going concern basis unl¢ss il 18 inappropriate to presume that the Trust will continue in business. The TrUs￿eS are responsible for keepin8 proper aecounting Fecords which disclose with reasonable atcuracy at any time ihe financial position of the Trust and enEble them to ensuT¢ thar (he financial statements comply wilh the Cliariiies Act 2011. Ihe Chariry (Accounts and Reports) Regulations and the provisions of the Trust Deed. Th¢> are also r¢5ponsible for safeguarding the ass¢ts of the Tr￿St and hence for tsking reasonable steps for the prevention and detection olfraud and oth¢r ittegularities. The Trustees are r¢spoDsible for tli¢ mainienanc¢ and integrity of the Trust and the finan¢ial infomation included on the T￿$1'S website lif any). Legislktion in the United Kingdom governing the preparation and dissemination of financial stsiements may diff¢r from legislaiion in other jurisdictions. By Order of the Tru5tee5 Aod signed on thelr beth￿rby: Marin4 L¥dy Marf Trustee Dale Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 5 INDEPENDENT AUDfTORS* REPORT TO THE TRUSTEES OF THE MICHAEL MARKS CHARrrABLE TRUST Opinion We have audited the financial staternents of The Michael Marks Charitable Trust for the year ended 31st January, 2023 which Comprise the Statemenl of Financial Activities. Ihe Balance Sheet and the related notes, including a summary of signifEcant accounting policies. Th¢ financial reporting framework that has bee applicd in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The FinAncial Reporting Standard applicable in the UK and Republi¢ of Ireland (United Kingdom Generally Accepted Accounting Pra¢ti¢e). In our opinion ihe financial 5tat¢m¢nts: give a tnte and fair view of the stste of the Trust's affairs &s at 3 1st January. 2023 and of ils income and expenditure for the year then ended. have been properly prepar¢d in accordance with United Kingdom Generally Acceptcd Ac£4)unting Practice. and have been prepared in accordan¢¢ wilh the requirements of the Charities Act 2011. Basts for DpinloD We conducted our audit in a¢¢ordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in th¢ auditor's responsibilities for the audit of the financial statements section of our report. We are independ¢nt of the Trust in accordance with the ethical requir¢ments that are relevant to our audit of the fitjancial statern¢nts in the UK including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with th¢se r¢quirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Cots¢lusions relating to goKng coDcer In audiiing the financial s¢atements, we have concluded that the In]stees' use of the gosng concem basi5 Of accounting in the preparation of the financial state￿¢nts is appropriate. Bas¢d on the work we have perfomicd. we have not id¢ntified any material unGertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charity's ability to continue Ls going ¢oncem for a p¢riod of at least twelve months fTom when the financial ststemeThts ar¢ authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going ¢oncern are des¢ribed in the Televay)t sections of this report. Other Information The other information comprises the information included in the annual report, other than the financial slateni¢nts and our auditor'5 report thereon. The trustees are responsible for the other infomiation. Our opinion on the financial statements does not cover the othu information and we do not express any forni of assurance conclusion th¢reon. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 6 INDEPENDKNf AUDITORS, REPORT TO THE TRUSTEES OF THE MICHAEL MARKS CHARITABLE TRUST- coNfiNUED In connection with our audit of the financial statements. our reS￿)nsIbIlity is 10 read the other information an in doing 50. ¢onsider whether the other inforniation is materially Inco￿ls1¢nI with the financial stat¢ments or our knowledge obtained in the audit or otherwise appears to be maicrially misstated. If we identify such material inconsistencies or app￿ell¢ material misstatejnents. we are required to detenninc whether there is a material misslatcmenl in the financial staiements or a material misststement of th¢ other infomation. If, b￿ed on the work we have perfornied, we conclude that there is a materia] misstatem¢nt of this olher infomation, we are required to report that fact. We have noihing to report in this regard. Matters on which we are required to report by exeeption In lighi of the knowledge and understanding of the charity and its environment obtained in the course of the audil. we have nol identified material mi55tst¢ments 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 R¢ports) Regulations 2(K>8 requires us to report to you if. in our opinion.. the inforni&tion given in the fmancial statements is inconsistent in any material respect with th¢ tn￿tees. sufficient a￿oUnting records have not been kept. or th¢ financial statements are not in agreement with the a￿oUntIng records. or we have not received all the inforn￿tIon and explanations w¢ require for our audit. RespoD$lbilities of trustees explained more fully in the trustees, r¢sponsibilities statement. the trustees aff responsible for tl preparation of th¢ f￿￿nCIal statements and for being satisfied that they give a true artd fair view. and for such internal control as ihe Irustees del¢rtnine is necessary to enable the preparation of financial statements that ar¢ free from material misstatement. whether due to fraud or error. In prepmring the financial statement5, the trustees are responsible for assessing the Trusvs ability to continue &$ a going concern, disclosing, applicable, matter3 related to going concern and using the going ¢oncem b&sis of accounting unle55 the trustees either intend to liquidate the Trust or to cease operations, or have no realistic al(ernative but to do so. Auditor's responsibilities for tbe audit of the financi41 statements We have been appointed as audAtOT uThJer section 145 of the Charities Act 201 l and report in accordanc¢ with the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain re&%onable assurance about whether the financial statements as a whole are free from material misstatement. whetheT duc to fraud or error. and to issue an auditor'5 T¢POrt thal includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit cotLdu¢ted in accorda￿e with ISAS (UK) will always detect a rnaterial misslatement when it exisls. MisstatenLents ¢an arise from fraud or error and are consideied materia] if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users lak¢n on the basis of these financial statements. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pagc 7 INDEPENDENf AUDITORS, REPORT TO THE TRUSTEES OF THE MICHAEL MARKS CHARITABLE TRUST- CONTINUED Irregularities, including fraud. ar¢ insÉan¢es of non-compliance with laws and regulations. We desi procedures in line with our responsibilitie& outlined above. to detect material mLSStatements in respect of irregularities, including fraud. The exlenl to whi¢h our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the charity's aclivities, controls and laws and reEulations and assessed the susceplibility of the charity's financi￿ slatements to materia] misstatement from irregularities, in¢luding fraud. We deterniined that the laws and re¥ulations that are most signifJ¢ant to the charity ar¢ the Charities (Accounts and Rewrts) Regulations 2008, the Charities Act 2011, the Financial Reporting Standard appli¢able in ihe UK and Republic of Ireland (FRS 102). Accounting and Reporting by Clwities.. Stat¢ment of Recommended Practice applicable io Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Rcpublic of Ireland (FRS 102) (Charities SORP FRS 102) and the Trust Deed. Based on this underslattding we designed our &udit procedures to delecting irregularities. including fraud. Testing undertak¢n includcd making enquiries of those charg¢d with gOV￿nance. journal entry testing. review of bank letters, trustee minutes and governing document. reviewing financial statement disclosures and testing to supporting do¢Lllnentation to assess complsance with applicable laws and regulations. These pro¢edur¢s were designed to provide re&sonable assurance thAt the financial 5tale]nents weTe free from fraud or error. A further de5eTiPtion of our re5ponsibilitie5 for th¢ audit of the financial statements is located on the Fil￿7¢1a1 Reporting Council's website at: www.frc.org.uklauditor51esponsibilities. This d￿CrIptIon forms part of our auditor's report. We ¢ommunicate with those charged with govem8n¢¢ regarding, among other matters. thc planned scop¢ 8nd timing of the audit and significant audit findings. including any significant deficiencies in internal control that we identify during our audiL Use ofour report This report is made sol¢ly to the Trust's trvslees. &8 a biHJy, in a￿ordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has bcen undertaken so that we might state to the Trust's tnjstees those malters we are required to state to them in an audiloes report and for no other putpose. To the fullest extent permitted by law, w¢ do not acc¢pt or ￿sume responsibility to anyone other than the Trust and the Trust's tnjstees as a body, for our audit work, for this report, or for the opinions we have fornied. W4sL Shfiplrys LLP Chartered Account4nts & Statutory Auditors 10 Orange Strect Haymark Lo}￿On WC2H 7DQ 15 November 2023 Shipleys LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for apwintment as auditor of a company under section 1212 of the Companies Act 2006. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 8 THE MICHAEL MARKS CHARITABLE TRUST srATEMENT OF FINANCIAL ACTKVITIES FOR THE YEAR ENDED 31ST JAIWARY, 2023 2023 UDrestricted 2022 Unrestricted Notes INCOME Investment income 143,837 127,891 TOTAL INCOME 143.837 127,891 ExPEND￿URE Costs of raising funds Expenditure on charitable activities (1,445) 90,620 2,143 135,735 TOTAL EXPENDrruRE 89,175 137,878 NFT INCOMKI(EXPENSE) AND NET MOVEMENT BEFORE GAINS AIID LOSSFS ON INVESTMENTS 54,662 (9,987) Net (losses) I gains on investments (735,783) 249.319 NET MOVEMENTS IN FUND (681.121) 239.332 UNRESTRICTED FUND BAIANCE BROUGHT FORWARD AT 1ST FEBRUARY, 2022 5,725,604 5,486,272 iNRESTRICTED FUND BALAIYCK CARRIED FORWARD AT 31ST JANUARY, 2023 £5.044,483 £5.725.604 The notes on pages 10 to 17 fonn an inlcgral part of these financial statements. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pagc 9 TIIE MICIIAF.I. MARKS CFIARITAIII,F. I'RUST BAI,ANcf..8llF.FT AS AT IIST JANUARY, 2Q23 21123 Unrestrleted 2022 UNre$trl¢ted Notc5 FIXED ASSETS Ini'osmienLs 3,753,331 4,346.559 Ci1RRENT ASSETS Debiors Cash at bank 47,312 1.289,780 46,584 1.392.301 1.337.092 1,438,885 CURRENT LIABILITIES CREDITORS: Amounts f*llinz due ithith oue year (45.940) (44,340) NET CURRENT .4SSETS 1,291,152 1,394,545 TOTAL ASSETS LESS cifRRENT LIABILITIES 5,044.483 5.741.104 CREDITORS: AmouDts faUinE due After more than One year 10 (15,500) NET ASSETS £5.044.483 £5,725,604 Represented by: UNRESTIUCTED FUNDS £5.044.483 £5.725,604 Approved by tbe Trustees i& /ii IJ 4T¢ signed on their behalf by: Marina, Lady Marks Trustee Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page lo THE MICHAEL MARKS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMKLYrs FOR THE YEAR ENDED 31ST JATrIUARY, 2023 ACCOUNTING POLICIES 1.1 General Inforni8ti0 The Michael Marks Charitable Trust is an unincowirited trust governed by a tLVSt d¢¢d and registered with the Charity Commission in Englartd. The principal address 15 5 Elm Tr¢¢ Road, London. NW8 9JY. The obj¢ctives of the trust are set out on page 2. 1.2 B45is of Aeeounting The financial statements have been prepar¢d under the historical cost conventio￿ with items recognised ￿ cost or transaction value unlcss c>therwise stated in the relevant ac¢ounting policy. The financial statements have been prepared in accordan¢e with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Accounting and Reporting by Charities: Statem¢nt of Recommended Practice applicable to Charities pr¢paring their accounts in accordance with the Financial Reporting Standard applieable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102) and the Charities Act 2011. The fmancial s12tements have been prepared to give a'true and fair, view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to th¢ ¢xtent required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities prep8ring their accounts in accord&nce with the Financia] Reporting Standard appli¢able in the UK and Republic of Ireland (FRS 102) eff¢¢tive l January 2019 rathcr than the Accounting and Reporting by Charities: Statement of Recommended Practice ¢ffective from l April 21X)5 which has sinc¢ been withdrawn. The Trll8t meets the definition of a publi¢ benefit entity undeT FRS 102. The functional currency of the trust is considered to be pounds sterling because that IS the ¢urrency of th¢ primary economic environment in which the Trust operates. The financial statements are also pr¢sented in pounds sterling. ALnounts are presented to the nearest £. unless otherwise stated. There are no signifi¢ant area5 requiring material judgements. eslimates or assumptioThs. 1.3 Casb flow ststement Th¢ tn￿1 has taken advantage of the exemption in the Charities SORP FRS 102 from thc requirement to produce a cash flow statement on the grounds that it is a small charity. 1.4 Prcpar&tion ofthe accounts oll a going eollc¢rn basis The trustees consider that therc are no matcrial uncertainties about the trust'5 ability to conlinue as a going concern for al Icast twelve months from the dale tsf approving the a¢¢ounts. The trustees have conside￿d the investment perfomance during the year and the level of ¢urrent commilm¢nts. The most sigmificant areas of uncertainty that affe¢t the future carrying valuc of assets held by the Trust are Ihc level of investment return and the perforniance of investmcnt markets. The accounts have been prepared on a going wncern basis. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pagell THE MtCHAEL MARKS CHARITABLE TRUST NOTES TO THE FtNANCIAL STATEMENTS- CONfiNUED FOR THE YEAR ENDED 31ST JANUARY, 2023 ACCOUNTING POLICIES (con¢lnued) 1.5 Income All income is recognised once the trust has entitlement to the in¢ome. it is probable that the income will be received and the amount of income receivable can be measured reliably. Inieresl on funds held on deposit is included when receivable and the amount can k measured reliably by the trust. this is normally upon notification of the intcrest paid or payabl¢ by the bank. Dividends are recognis¢d once the dividend has been declared and notification has been reccived of Ihe dividend due. This is normally upon notification by our investment advisor of the dividend yield of th¢ investment portfolio. 1.6 Eipenditure Liabilili¢s are re¢ognised as expenditure as soon as there is a legal or ¢onstructive obligation committing the tntst lo Ihat expenditure, it 15 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 th¢ investment portfolio. Expenditure of ¢haritable activities includes grants made and gov¢rnance costs. Grants payable are payments made lo third parties in the furtheran¢e of the chaTiiable objectives of the Irust. Unconditiot￿l grant offers are acctved once ihe recipient has been notified of th¢ grant award. The notification gives the r¢¢ipient a Twonable expectation that they will receive the granL Grants awards that are subjecl to the recipieni fulfilling performance ¢onditions are only accrued when the recipient h2s been notified of ihe 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 Colldilions un(kr the control of the TnLSt that would perniit the Tr￿St to avoid making the future payment settlement is probable and the effect of discounting is material. The discount raie used is the average ral¢ of iThve5tment yield in the year in which the grant award is made. This discount rnte is regarded by the trustees as providing the most current available estimate of th¢ Op￿)rtunIty c05t of money reflecling the time va]ue of money to the Trust. Governance costs represents those costs of strategic management of the Tn]st and of complying with onstitutional and stat￿ory requirements. Irrecoverable VAT i5 Charg￿ against the expenditure heading for whi¢h it was incurred. 1.7 Foreign rnrrencies Foreign currency transactions are initially recorded in the fun¢lional currency, by applying the spot exchange rale as at the date of the transaction. Monetary ass¢ts and liabilities denominated in forei currencies are translated at the exchang¢ rdte ruling at the rep)rting date, with any gains or losse5 being taken lo the statement of financial activities. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 12 THE MtCHAEL MARKS CHARITABLE TRUST NOTES TO THE FINANCL4L STATEMEwfs- CONTINUED FOR THK YEAR Ef4DED 31ST JANUARY, 2013 ACCOUNTING POLICIES (conginued) 1.8 Inv￿lMentS Investments are a forni of basi¢ financial instrument and are initially recognised at their transaction value and subsequently at their fair value as at the batance sheet date using the closing quoted market price. The Statemenl of Financial Activities includes the net gains and losses arising on reva]uations and disp05als throughout the year. 1.9 Gains and Logses on Investments All gains and losses are taken to ttLe Si&t¢ment of Financial Activities when they arise. Realised gains and losses on investment5 are calculated &s the difference between sal¢s proceeds and their opwing carrying value or their purchase value if acquired subs¢quent to the first day of th¢ financial year. Unrea]is¢d gains and195s¢s are calculated Is the difference between the fair value at the year end and their carrying value. R¢alised and unrealised investment gains and loss¢s are combined in the Statement of Financial Aclivities. 1.10 Cash #t bank Cash at bank and cash in hond includes cash and short tern) highly liquid invcstm¢nts with a short malurity of thtte months or less frorn the date of acquisilion or opening of the deposit or similar account. 1.11 Financial instruments The trust only has financial assets and financial liabilities of a kind that qualify as basic financial inslnmients. Basic financial instruments are initially recognised at tsansa¢lioTh value and subsequently measured at their 5¢tt1ement value. 1.12 Fulld A¢couDting The U￿¢strICted fund comprises funds to ￿ us¢d in pursuance of the Trust's objectives at the discretion of the Trustees. INVESTMENT INCOME 2023 2022 Dividends Interesl from bonds Interest on bank deposits 15.193 110.969 17,675 14,240 113,322 329 £143.837 £127.891 COSTS OF RAISING FUNDS Investrllent ¢ustody fees ror¢ign currency (gains) I losses 3,477 (4,922) 3.656 (1,513) (£1.445) £2,143 Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 13 THE MICHAEL MARKS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31ST JAI￿ARY, 2023 EXPENDITURE ON CHARITABLE ACTIvrrIES The Trust undertakes its charitable Activities through grani making and &w￿ded ￿an(S to a number of institutions in furthera￿¢ of its chariuble activities. Gov¢rnance costs are allocat¢d to the grant making activities as ihis is the sole activity of th¢ Trust. Grants to instiMtions Governance rosts (note 5) 85,780 4,840 130.895 4,840 £90,620 £135.735 Grants were mad¢ during the year or provided &s charitabl¢ commitments ai the end of the year to the following organisations:. Classics For All Clean Rivers Trust Curfew A¢tion Dulwich Picture Gallery Durrell Wildlife Conservation Trust Etaireia Messeniakon Spoudon Felix Project Greenwi¢h Foundation for Old Royal Naval College Harvard Centre of Helleni¢ sfvdies Keatslshelley Mwnorial Association London Wildlife Trust Manchester City Galleries Trust National Theatre Nottinghamshire Wildlif¢ T￿$t Orch¢strd Of The Age Of Enlightenment Oxford Philharnionic Orchestra Princc's Countyside Fund Rub¢nianum Se¢ret World Wildlifc Rescue St Paul's Pro-cathcdral Suffolk Building Preservation Trust Trash Hero World Wordsworth Trust 2,180 5.000 3.OIN) io.i>oo 3.745 3,000 3,000 5,000 5,000 3.500 3,000 3,150 5,000 io,ooo 10,000 5,000 4.000 46,500 5,000 5,000 10,O(K) 5,000 5,000 25,600 26,000 £85.780 £130,895 During the year, the charity provided grants of £50.600 (2022.. £113,000) to clLariti¢s relating to the arts. £30,000 (2022= £14,895) for the environment and £5,180 (2022.. £3,000) for education. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Page 14 THE MICHAEL MARKS CHARTTABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONfiNUED FOR THE YEAR ENDED 31ST JANUARY, 2023 GOVERNANCE COSTS 2023 2022 Audit fees Accountancy fees 2.340 2.51X) 2,340 2,500 £4.840 £4,840 Auditors remuneration consisted of audit fees of £2,340 (2022.. £2,340) and accountancy f¢¢s of £2,500 (2022.. £2.500). TRUSTEES* AND STAFF REMUNERATION AND RELATED PARTIF,S The Trustee5 re¢eiv¢d no remufteration OT ¢xpenses during ihe year (2022: £nil). No transactions with r¢lated parties were undertaken such &s are required to be disclosed und¢r FRS 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" or the Chariiies SORP FRS 102. The Trthst did not employ any stsff during the ye8r. Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pag¢ 15 THE MICHAEL MARKS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS- CONTtNUED FOR THE YEAR ENDED 31ST JANUARY, 2023 FIXED ASSET INVESTMEwrs Cash held Listed as part of Investments portfolio Total Market Value at 1st February, 2022 Disposals in year Net loss on revaluation Deposit of c&th 4.346.559 (433,206) (735,783) 4,346,559 (433.206) (735.783) 575,761 575,761 Market Value at 31s¢ Januaryy 2023 £3,177,570 £575,761 £3.753,331 Historlul Cost At 31st January. 2023 £2.937,144 £575.76] £3.512,905 At 31st January. 2022 £3,360,999 £3.360,999 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: 2023 2022 Equities Bonds Cash held &s part of ￿rtfoliO 1,190,618 1,986.952 575.761 1,599,559 2.747,000 £3.753.331 £4,346,559 All investments are carried at fair value. Investments in equities and bontis are all traded in quoted public markets, primarily the kn)ndon Siock Exchange. Th¢ b￿15 of foir Yalue for quoted investments is equivalent to tbe market value, using the bid price. Asset sales and purchases are recognised at the date of trade al cost (that is theiT transaction value). Holdings representing more than 50/L¥ of the market value of the Trusl's investments: Holding Market Valu¢ Marks & Spencer Group pl Ordinary Shares of 25p each Glen¢ore Finance 3.125Yo 26103126 Deutsche Telckom 3.1250/0 06102134 511.910 300.000 300,000 £746,365 £285.195 £262,710 Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pagc 16 THE MICHAEL MARKS CHARrrABLE TRUST NOTES TO TIIE FINANCIAL STATEMENfs- CONTINUED FOR THE YEAR ENDED 31ST JANUARY, 2023 FIXED ASSETS INVESTMENTS (conlinued) The tnain forni of financial risk faced by the charity 1$ that of volatility in equity markets and investment market5 due to wid¢r ¢conomic conditions, the attitude of investors to investment risL and changes in sentimellt Concerning equitie5 aud within particular sector5 or sub sectors. This risk is mitigated by obtaining investment advice and ensuring a diversified portfolio is held. 2023 DEBTORS 2022 Accrued income £47,312 £46.584 CREDITORS: Amounts fAlliDg du¢ withln ODe yeJ)r Ac¢ruais Charitable Commitments (Note I l) 4,840 41,100 4,840 39,500 £45,940 £44,340 10. CREDITORS: Amounts falllng due after one year Charitable Commitments (Nol¢ I l) £15.500 Docusign En¥ÈlopÈ ID." 07EA11E7-06BB-477(kA19&241816A50B50 Pagc 17 THE MICHAEL MARKS CHARITABLE TRUST NOTES TO THK FINANCIAL STATEMKNfs - CONTINUED FOR THE YEAR ENDED 31ST JANUARY, 2023 10. CHARITABLE COMMITMENTS Provision h&$ been made in the financial statements for the following material charitable commitments. the amounts shown being the gross grants'.- Wordsworth Tn￿t Oxford Philharnionic Orchestra 25.600 15,51MI Wiihin one year Withtn two years Reeonciliation of Charitable Commltments 2023 2022 Commitments at 1st February. 2022 Payments made in year Commilment5 made in year 55,000 (39,500) 25,600 25,500 (25,500) 55,000 Commithients at 31st January, 2023 £41,100 £55,000 CommAthients at 31s1 January) 2023 are payable as follows:_ Within one year After more than one year 41.100 39,500 15.500 £41.100 £55,000 11. CONTINGENT lIABIL￿IEs There w¢r¢ no contingent liabilitie5 as at 31st January. 2023. 12. TAXATIOIY Thc Tr￿st 15 exempt from i&x on income and gains to the extent that thes¢ are applied to its charitable objects.