**CHARITY REGISTRATION NUMBER: 251090** 

## **THE M & L CHARITABLE TRUST FINANCIAL STATEMENTS** 

**31 DECEMBER 2022** 

## **COHEN ARNOLD** 

Chartered Accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU 



## **THE M & L CHARITABLE TRUST** 

## **FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 DECEMBER 2022** 

||**PAGE**|
|---|---|
|Trustees' annual report|**1**|
|Independent auditor's report to the members|**5**|
|Statement of financial activities|**10**|
|Statement of financial position|**11**|
|Statement of cash flows|**12**|
|Notes to the financial statements|**13**|





**THE M & L CHARITABLE TRUST TRUSTEES' ANNUAL REPORT** 

**YEAR ENDED 31 DECEMBER 2022** 

The trustees present their report and the financial statements of the charity for the year ended 31 December 2022. 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

**Registered charity name** The M & L Charitable Trust **Charity registration number** 251090 **Principal office** New Burlington House 1075 Finchley Road London NW11 0PU **THE TRUSTEES** Mrs M Meimann Ms C J Kitsberg **Auditor** Cohen Arnold Chartered Accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU **Bankers** Barclays Bank Plc Leicester LE87 2BB 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The charity is an unincorporated charity registered with the Charity Commission (Registration No. 251090). The charity is governed by its trust deed dated 9 September 1966. 

The day-to-day affairs of the charity are administered by the board of trustees. 

It is not currently the intention of the trustees of the charity to appoint new trustees. Should the situation change in the future, the trustees will apply suitable recruitment and training procedures. 

The power of appointing additional trustees vests with the current trustees. 

The induction process for any newly appointed trustee comprises an initial meeting with the serving trustees to cover investment policy, the grant making process and the powers and responsibilities of the trustee board. After appointment, new trustees will be provided with copies of accounts, annual returns and investment reports. 

**- 1 -** 



**THE M & L CHARITABLE TRUST** 

## **TRUSTEES' ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **OBJECTIVES AND ACTIVITIES** 

The objectives of the trust are to provide grants for the benefit of such one or more charitable institutions within or outside the UK, as the trustees may from time to time at their discretion determine. 

The trustees meet to consider their objectives and areas of activity for the trust, including consideration of grant making, investment, reserves and risk management policies and performance. 

The trust derives its income from investments and incoming donations. 

## **ACHIEVEMENTS AND PERFORMANCE** 

During the year, the charity continued its philanthropic activities in support of culture, social welfare and health & education and aggregate donations were paid in the sum of £49,200 (2021: £67,580). 

The benefits that these charities provide include: 

Promotion of the arts Relief of sickness and disabilities Support for education and assisting the needy 

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when setting their grant making policy for the year, in line with the trust's aims and objectives. 

The trustees are satisfied that all grants made during the year are for the benefit of the public and that the benefits of each and every grant is clearly identifiable. 

The financial results of the charity's activities for the year to 31 December 2022 are fully reflected in the attached accounts. 

## **FINANCIAL REVIEW** 

The accounts have been prepared in accordance with the charity trust deed and applicable law. 

Principal sources of funds are through donations and investment income. 

## **Reserves policy** 

It is the policy of the charity to maintain unrestricted funds at a level which the trustees think appropriate after considering the future commitments of the charity and the likely costs of the charity for the next year. 

At 31 December 2022, the charity had total funds of £3,179,724 all of which are unrestricted funds. 

## **Grant making policy** 

Grants are made to charitable institutions and organisations which accord with the objects of the charity. 

The trustees are approached for donations by a wide variety of charitable institutions operating all over England (and also abroad). The trustees consider all requests which they receive and make donations based on the level of funds available. 

**- 2 -** 



**THE M & L CHARITABLE TRUST** 

## **TRUSTEES' ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

_**(continued)**_ 

## **Investment powers and policy and objectives** 

The trustees invest in a diverse spread of equities aiming for a balance between income and capital growth. 

Under the memorandum and articles of association, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy. 

## **PLANS FOR FUTURE PERIODS** 

The trustees are satisfied with their grant making priorities and it is their intention to continue to support charitable institutions. 

## **PRINCIPAL RISKS AND UNCERTAINTIES** 

## **Risk Management** 

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to manage these risks. 

## **TRUSTEES' RESPONSIBILITIES STATEMENT** 

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the applicable Charities SORP; 

- make judgments and accounting estimates that are reasonable and prudent; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

**- 3 -** 



**THE M & L CHARITABLE TRUST** 

## **TRUSTEES' ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

The trustees' annual report was approved on 13 September 2023 and signed on behalf of the board of trustees by: 

**MRS M MEIMANN** Trustee 

**- 4 -** 



**THE M & L CHARITABLE TRUST** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE M & L CHARITABLE TRUST** 

## **YEAR ENDED 31 DECEMBER 2022** 

## **OPINION** 

We have audited the financial statements of The M & L Charitable Trust (the 'charity') for the year ended 31 December 2022 which comprise the statement of financial activities, statement of financial position, 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 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 charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **CONCLUSIONS RELATING TO GOING CONCERN** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

**- 5 -** 



**THE M & L CHARITABLE TRUST** 

**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE M & L CHARITABLE TRUST** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION** 

In the 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 trustees' report. 

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: 

- the information given in the trustees' report is inconsistent in any material respect with the financial statements; or 

- adequate accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

**- 6 -** 



**THE M & L CHARITABLE TRUST** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE M & L CHARITABLE TRUST** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS** 

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 obtained an understanding of the legal and regulatory frameworks that are applicable to the charity, and determined that the most relevant to the presentation of the financial statements are those that relate to the reporting legislation (UK GAAP and the Charities Act 2011), the relevant tax regulations in the United Kingdom, the UK General Data Protection Regulation (GDPR), Health & Safety Regulations and the Bribery Act. We understood how the charity is complying with those frameworks through discussion with the trustees and senior management, and by identifying the charity's policies and procedures regarding compliance with laws and regulations. We also identified those members of management who have the primary responsibility for ensuring compliance with laws and regulations, and for reporting any known instances of non-compliance to the trustees. We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations. 

- We discussed with the trustees and senior management the policies and procedures regarding compliance with these legal and regulatory frameworks. 

- We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur, by reviewing the charity's identified risks and enquiry with the trustees and senior management during the planning and finalisation phases of our audit. The susceptibility to such material misstatement was determined to be low. 

- Based on this understanding we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items. Our procedures included reviewing the charity's internal controls policies and procedures, reviewing the minutes of board meetings and correspondence with regulatory bodies including HMRC, testing transactions outside the normal course of the business and journal entries, and discussions with the trustees and senior management. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 

**- 7 -** 



**THE M & L CHARITABLE TRUST** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE M & L CHARITABLE TRUST** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

**- 8 -** 



**THE M & L CHARITABLE TRUST** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE M & L CHARITABLE TRUST** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

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 charity's members, 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 charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. 

## **DAVID GOLDBERG FCA DCHA (SENIOR STATUTORY AUDITOR)** 

For and on behalf of Cohen Arnold Chartered Accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU 13 September 2023 

**- 9 -** 



## **THE M & L CHARITABLE TRUST** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **YEAR ENDED 31 DECEMBER 2022** 

|||**2022**|**2022**|2021|
|---|---|---|---|---|
|||Unrestricted|||
|||funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|£|
|**INCOME AND ENDOWMENTS**|||||
|Donations and legacies|**4**|335,250|**335,250**|628,600|
|Investment income|**5**|186,389|**186,389**|122,168|
|||-------------------------------------|-------------------------------------|-------------------------------------|
|**TOTAL INCOME**||521,639|**521,639**|750,768|
|||=====================================|=====================================|=====================================|
|**EXPENDITURE**|||||
|Expenditure on raising funds:|||||
|Investment management costs|**6**|(1,288)|**(1,288)**|(1,222)|
|Expenditure on charitable activities|**7,8**|(52,861)|**(52,861)**|(73,946)|
|||-------------------------------------|-------------------------------------|-------------------------------------|
|**TOTAL EXPENDITURE**||(54,149)|**(54,149)**|(75,168)|
|||=====================================|=====================================|=====================================|
|Net (losses)/gains on investments|**10**|(626,452)|**(626,452)**|319,873|
|||-------------------------------------|-------------------------------------|-------------------------------------|
|**NET (EXPENDITURE)/INCOME AND NET**|||||
|**MOVEMENT IN FUNDS**||(158,962)|**(158,962)**|995,473|
|||=====================================|=====================================|=====================================|
|**RECONCILIATION OF FUNDS**|||||
|Total funds brought forward||3,338,686|**3,338,686**|2,343,213|
|||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
|**TOTAL FUNDS CARRIED FORWARD**||3,179,724|**3,179,724**|3,338,686|
|||===============================================|===============================================|===============================================|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

**The notes on pages 13 to 18 form part of these financial statements.** 

**- 10 -** 



## **THE M & L CHARITABLE TRUST** 

## **STATEMENT OF FINANCIAL POSITION** 

## **31 DECEMBER 2022** 

|||**2022**||2021||
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|£|
|**FIXED ASSETS**||||||
|Investments|**14**||**3,265,491**||3,721,178|
|**CURRENT ASSETS**||||||
|Cash at bank and in hand||**2,034**||11,704||
|**CREDITORS: amounts falling due**||||||
|**within one year**|**15**|**(43,360)**||(344,200)||
|||-------------------------------||-------------------------------------||
|**NET CURRENT LIABILITIES**|||**(41,326)**||(332,496)|
||||-----------------------------------------------||-----------------------------------------------|
|**TOTAL ASSETS LESS CURRENT**||||||
|**LIABILITIES**|||**3,224,165**||3,388,682|
|**CREDITORS: amounts falling due**||||||
|**after more than one year**|**16**||**(44,441)**||(49,996)|
||||-----------------------------------------------||-----------------------------------------------|
|**NET ASSETS**|||**3,179,724**||3,338,686|
||||===============================================||===============================================|
|**FUNDS OF THE CHARITY**||||||
|Unrestricted funds|||**3,179,724**||3,338,686|
||||-----------------------------------------------||-----------------------------------------------|
|**TOTAL CHARITY FUNDS**|**17**||**3,179,724**||3,338,686|
||||===============================================||===============================================|



These financial statements were approved by the board of trustees and authorised for issue on 13 September 2023, and are signed on behalf of the board by: 

**MRS M MEIMANN** Trustee 

**The notes on pages 13 to 18 form part of these financial statements.** 

**- 11 -** 



## **THE M & L CHARITABLE TRUST** 

## **STATEMENT OF CASH FLOWS** 

## **YEAR ENDED 31 DECEMBER 2022** 

|**YEAR ENDED 31 DECEMBER 2022**|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|**CASH FLOWS FROM OPERATING ACTIVITIES**|||
|Net (expenditure)/income|**(158,962)**|995,473|
|_Adjustments for:_|||
|Net (losses)/gains on investments|**626,452**|(319,873)|
|Dividends, interest and rents from investments|**(185,051)**|(122,091)|
|Other interest receivable and similar income|**(50)**|(77)|
|Accrued (income)/expenses|**(840)**|4,200|
|_Changes in:_|||
|Trade and other creditors|**(300,000)**|340,000|
||-------------------------------------|-------------------------------------|
|Cash generated from operations|**(18,451)**|897,632|
|Interest received|**50**|77|
||-------------------------------|-------------------------------------|
|Net cash (used in)/from operating activities|**(18,401)**|897,709|
||===============================|=====================================|
|**CASH FLOWS FROM INVESTING ACTIVITIES**|||
|Dividends, interest and rents from investments|**185,051**|122,091|
|Purchases of other investments|**(773,481)**|(1,333,265)|
|Proceeds from sale of other investments|**602,716**|319,633|
||-------------------------------------|-----------------------------------------------|
|Net cash from/(used in) investing activities|**14,286**|(891,541)|
||=====================================|===============================================|
|**CASH FLOWS FROM FINANCING ACTIVITIES**|||
|Proceeds from borrowings|**–**|(4)|
|Repayments of borrowings|**(5,555)**|–|
||-------------------------------------|-----------------------------------------------|
|Net cash used in financing activities|**(5,555)**|(4)|
||=====================================|===============================================|
|**NET (DECREASE)/INCREASE IN CASH AND CASH**|||
|**EQUIVALENTS**|**(9,670)**|6,164|
|**CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR**|**11,704**|5,540|
||-------------------------------|-------------------------------|
|**CASH AND CASH EQUIVALENTS AT END OF YEAR**|**2,034**|11,704|
||===============================|===============================|



**The notes on pages 13 to 18 form part of these financial statements.** 

**- 12 -** 



**THE M & L CHARITABLE TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 DECEMBER 2022** 

## **1. GENERAL INFORMATION** 

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is New Burlington House, 1075 Finchley Road, London, NW11 0PU. 

## **2. STATEMENT OF COMPLIANCE** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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) (Charities SORP (FRS 102)) and the Charities Act 2011. 

## **3. ACCOUNTING POLICIES** 

## **Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going concern** 

There are no material uncertainties about the charity's ability to continue. 

## **Judgements and key sources of estimation uncertainty** 

There are no judgements, estimates and assumptions that affect the amounts reported. 

## **Fund accounting** 

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. 

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. 

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds. 

## **Incoming resources** 

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. 

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

## **Expenditure and liabilities** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

**- 13 -** 



**THE M & L CHARITABLE TRUST** 

**NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **3. ACCOUNTING POLICIES** _**(continued)**_ 

## **Expenditure and liabilities** _**(continued)**_ 

Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. 

Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **Grants payable** 

Grants payable are charged to the statement of financial activities once the charity has made a commitment to pay the grant and this has been communicated to the beneficiary or the grant has been paid, whichever is earlier. 

## **Investments** 

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment. 

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure. 

## **Financial instruments** 

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. 

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. 

Debt instruments are subsequently measured at amortised cost. 

## **4. DONATIONS AND LEGACIES** 

||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|**DONATIONS**|||||
|Donations|335,250|**335,250**|628,600|628,600|
||=====================================|=====================================|=====================================|=====================================|



**- 14 -** 



**THE M & L CHARITABLE TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **5. INVESTMENT INCOME** 

|**INVESTMENT INCOME**|||||
|---|---|---|---|---|
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Income from listed investments|186,339|**186,339**|122,091|122,091|
|Bank interest receivable|50|**50**|77|77|
||-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
||186,389|**186,389**|122,168|122,168|
||=====================================|=====================================|=====================================|=====================================|



## **6. INVESTMENT MANAGEMENT COSTS** 

||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Interest payable|1,288|**1,288**|1,222|1,222|
||==========================|==========================|==========================|==========================|
|**EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE**|||||
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Charitable activities|49,200|**49,200**|67,580|67,580|
|Support costs|3,661|**3,661**|6,366|6,366|
||-------------------------------|-------------------------------|-------------------------------|-------------------------------|
||52,861<br>===============================|**52,861**<br>===============================|73,946<br>===============================|73,946<br>===============================|



## **7. EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE** 

## **8. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE** 

||Grant||||
|---|---|---|---|---|
||funding of||**Total funds**|Total fund|
||activities|Support costs|**2022**|2021|
||£|£|**£**|£|
|Charitable activities|49,200|<br>–|**49,200**|67,580|
|Governance costs|–|<br>3,661|**3,661**|6,366|
||-------------------------------|--------------------------|-------------------------------|-------------------------------|
||49,200|<br>3,661|**52,861**|73,946|
||===============================|==========================|===============================|===============================|



The following is a list of donations paid out during the year: 

||**2022**|
|---|---|
||**£**|
|Noa Girls|**20,000**|
|The City of London School Charitable Trust|**18,000**|
|The Chicken Soup Shelter|**5,950**|
|Royal Opera House Covent Garden Foundation|**5,250**|
||-------------------------------|
||**49,200**|
||===============================|



All grants and donations were paid to charitable institutions for the purposes of culture, social welfare and health and education. 

**- 15 -** 



## **THE M & L CHARITABLE TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **9. ANALYSIS OF GRANTS** 

|**9.**|**ANALYSIS OF GRANTS**|||
|---|---|---|---|
|||**2022**|2021|
|||**£**|£|
||**GRANTS TO INSTITUTIONS**|||
||Grants to institutions|**49,200**|67,580|
|||-------------------------------|-------------------------------|
||Total grants|**49,200**|67,580|
|||===============================|===============================|
|**10.**|**NET (LOSSES)/GAINS ON INVESTMENTS**|||



||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Gains/(losses) on disposal of listed|||||
|investments|(194,799)|<br>**(194,799)**|150,734|150,734|
|Gains/(losses) on revaluation of listed|||||
|investments|(431,653)|<br>**(431,653)**|169,139|169,139|
||-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
||(626,452)|<br>**(626,452)**|319,873|319,873|
||=====================================|=====================================|=====================================|=====================================|
|**NET (EXPENDITURE)/INCOME**|||||
|Net (expenditure)/income is stated after|charging/(crediting):||||
||||**2022**|2021|
||||**£**|£|
|Fees payable for the audit of the financial statements|||**3,661**<br>==========================|4,199<br>==========================|



## **11. NET (EXPENDITURE)/INCOME** 

## **12. STAFF COSTS** 

The average head count of employees during the year was Nil (2021: Nil). 

No employee received employee benefits during the year (2021: Nil). 

## **13. TRUSTEE REMUNERATION AND EXPENSES** 

There was no remuneration paid to the trustees. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity. 

**- 16 -** 



**THE M & L CHARITABLE TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **14. INVESTMENTS** 

|**INVESTMENTS**||||
|---|---|---|---|
||Quoted|Unquoted||
||Shares|Shares|**Total**|
||£|£|**£**|
|**Fair value**||||
|At 1 January 2022|3,703,993|17,185|**3,721,178**|
|Additions|773,481|–|**773,481**|
|Disposals|(797,515)|–|**(797,515)**|
|Fair value movements|(431,653)|–|**(431,653)**|
||-----------------------------------------------|-------------------------------|-----------------------------------------------|
|**At 31 December 2022**|3,248,306|17,185|**3,265,491**|
||===============================================|===============================|===============================================|
|**Impairment**||||
|**At 1 January 2022 and 31 December 2022**||–|**–**|
|||===============================|===============================================|
|**Carrying amount**||||
|**At 31 December 2022**|3,248,306|17,185|**3,265,491**|
||===============================================|===============================|===============================================|
|At 31 December 2021|3,703,993|17,185|3,721,178|
||===============================================|===============================|===============================================|



All investments shown above are held at valuation. 

## **Financial assets held at fair value** 

The fair value of the Listed Investments at the balance sheet date are determined using quoted prices. The fair value of the unlisted investment has been calculated using the share price of 32p per share taken from the shareholders' report. 

The historical cost of investments is £3,780,097. 

## **15. CREDITORS: amounts falling due within one year** 

|**15.**|**CREDITORS:** **amounts falling due within one year**|||
|---|---|---|---|
|||**2022**|2021|
|||**£**|£|
||Accruals and deferred income|**3,360**|4,200|
||Other creditors|**40,000**|340,000|
|||-------------------------------|-------------------------------------|
|||**43,360**|344,200|
|||===============================|=====================================|
|**16.**|**CREDITORS:** **amounts falling due after more than one year**|||
|||**2022**|2021|
|||**£**|£|
||Bank loans and overdrafts|**44,441**|49,996|
|||===============================|===============================|



**- 17 -** 



**THE M & L CHARITABLE TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 31 DECEMBER 2022** 

## **17. ANALYSIS OF CHARITABLE FUNDS** 

## **Unrestricted funds** 

|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At||||**At**|
||1 January|||Gains and|**31 December**|
||2022|Income|Expenditure|losses|**2022**|
||£|£|£|£|**£**|
|General funds|3,338,686|521,639|(54,149)|(626,452)|**3,179,724**|
||===============================================|=====================================|===============================|=====================================|===============================================|
||At||||At|
||1 January|||Gains and|<br>31 December|
||2021|Income|Expenditure|losses|<br>2021|
||£|£|£|£|£|
|General funds|2,343,213|750,768|(75,168)|319,873|<br>3,338,686|
||===============================================|=====================================|===============================|=====================================|===============================================|



## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

||Unrestricted|**Total Funds**|
|---|---|---|
||Funds|**2022**|
||£|**£**|
|Investments|3,265,490|**3,265,490**|
|Current assets|2,035|**2,035**|
|Creditors less than 1 year|(43,360)|<br>**(43,360)**|
|Creditors greater than 1 year|(44,441)|<br>**(44,441)**|
||-----------------------------------------------|-----------------------------------------------|
|**Net assets**|3,179,724|**3,179,724**|
||===============================================|===============================================|
||Unrestricted|Total Funds|
||Funds|2021|
||£|£|
|Investments|3,721,178|3,721,178|
|Current assets|11,704|11,704|
|Creditors less than 1 year|(344,200)|<br>(344,200)|
|Creditors greater than 1 year|(49,996)|<br>(49,996)|
||-----------------------------------------------|-----------------------------------------------|
|**Net assets**|3,338,686<br>===============================================|3,338,686<br>===============================================|



## **19. ANALYSIS OF CHANGES IN NET DEBT** 

||At||**At**|
|---|---|---|---|
||1 Jan 2022|Cash flows|**31 Dec 2022**|
||£|£|**£**|
|Cash at bank and in hand|11,704|(9,670)|<br>**2,034**|
|Debt due after one year|(49,996)|5,555|**(44,441)**|
||-------------------------------|--------------------------|-------------------------------|
||(38,292)|(4,115)|<br>**(42,407)**|
||===============================|==========================|===============================|



## **20. RELATED PARTIES** 

Charitable donations totalling £335,250 were paid to the charity from the trustees and companies related to the trustees. Included in creditors is a £40,000 interest free loan due to companies related to the trustees. 

**- 18 -**