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2023-04-05-accounts

Charity registration number 256893

THE ARCHIE SHERMAN CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

THE ARCHIE SHERMAN CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees M J Gee
A H S Morgenthau
R Freedman
A Simon
Charity number 256893
Principal address 274a Kentish Town Road
London
NW5 2AA
Auditor TC Group
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers Barclays Bank plc
Cardiff Queen St
Leicester
LE87 2BB
Solicitors Nicholas and Co
10-12 Bourlet Close
London
W1W 7BR

THE ARCHIE SHERMAN CHARITABLE TRUST

CONTENTS

Page
Statement of trustees' responsibilities 1
Trustees' report 2 - 4
Independent auditor's report 5 - 7
Statement of financial activities 8
Statement of financial position 9
Statement of cash flows 10
Notes to the financial statements 11 - 23

THE ARCHIE SHERMAN CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2023

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 trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

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

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE ARCHIE SHERMAN CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2023

The trustees present their report and audited financial statements for the year ended 5 April 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, the Charities Act 2011 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) (effective 1 January 2019)".

Objectives and activities for the public benefit

The charity's objectives include the support of a wide range of charitable organisations at the discretion of the trustees and as set out in the declaration of trust.

The objective of the charity is to maintain, and where possible to increase, the level of income and to distribute the income to chosen charitable beneficiaries exclusively to benefit education and training, overseas aid, arts and culture, health and general charitable purposes.

The charity's overall strategy to achieve the objective is effective management of its property portfolio to maximise rental returns. The charity's resources are reviewed at the regular trustees' meetings to allow informed decisions to be made on grant commitments.

The charity makes small and large grants to a wide variety of charities based in the UK and overseas. When the charity is approached to assist with substantial capital or building projects, the trustees undertake due diligence before deciding whether to make a commitment. Where the charity has made a commitment to make payments over several years, the trustees monitor the progress of the project before releasing payments.

The charity has not made use of any volunteers during the year.

The trustees review all commitments on a forwards five-year basis. In particular, the charity entered into the following commitments:

Tel Aviv University - $500,000 over 5 years to renovate 5 laboratories.

Yemin Orde - Renovate Children's House - $600,000 over 5 years to rebuild the oldest children's house at Yemin Orde.

Reichman University - $135,000 over 3 years to provide 3 scholarships per year.

Yad Vashem - $150,000 over 3 years to fund increased cyber security.

Shaare Zedek - $300,000 over 4 years to contribute to research into cancer radiotherapy.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year.

THE ARCHIE SHERMAN CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

Achievements and performance

Level of Income

Overall, the charity's investment income increased by £89,949 (2022: decreased by £84,780) compared to the previous year. Rental and other property income receivable increased by £101,410 (2022: decreased by £84,740) whilst interest receivable increased by £3 (2022: decreased by £40). Notwithstanding the continued difficult circumstances prevailing in the UK commercial property market during the year, the trustees are satisfied with the performance of the portfolio.

Income Distribution

During the year, 195.6% (2022: 75.6%) of the year's net incoming resources were distributed and committed to charitable beneficiaries to benefit education and training, overseas aid, art and culture, health and general charitable purposes, including support and governance costs allocated to those charitable activities.

Unrestricted Funds

The charity's financial position at the end of the period was entirely satisfactory. The unrestricted funds during the financial year decreased by 5% (2022: increase of 2%) compared to the previous year.

Factors relevant to achievement of objectives

Rental income is the main source of incoming resources. The prevailing market conditions have a significant effect on income generated, and conditions during the year continued to be difficult with commercial properties suffering from lower rental yields as a result of a continued decline in the popularity of UK high streets. The trustees attempt to mitigate these effects by negotiating rent with existing and new tenants to ensure a satisfactory income for the trust while recognising the reality of the tough economic conditions currently facing tenants.

The percentage of funds distributed and committed to charitable causes will vary from year to year because the trustees' grant making decisions are based on estimates and projections of income receivable which are naturally subject to change.

The trustees are responsible for monitoring the charity's investment management and governance costs in order to maximise funds available for charitable purposes.

Financial review

The Statement of Financial Activities, set out on page 8 of the financial statements, shows how the charity's incoming resources have been expended during the year ended 5 April 2023.

The charity continues to hold a substantial fund base from which the income generated is distributed through grant making activities.

The charity's assets are held in order to generate income for charitable donations. The main asset of the charity is a portfolio of commercial properties. The fair value of the investment property portfolio was assessed by M J Gee as at 5 April 2023.

Net incoming resources available for distribution during the year were £894,735 (2022: £722,530), which were used to fund charitable expenditure and governance costs totalling £1,748,267 (2022: £546,391). At 5 April 2023 the charity held net assets of £18,076,245 (2022: £18,688,579). Projected grants payable over the next five years which the charity had committed to by the year end are approximately £1,242,247 (2022: £299,000) in total and at 5 April 2023 had been fully accounted for as grant commitments payable.

Investment policy

The trustees follow a policy of maximising the return on investments while ensuring acceptable levels of risk. The trustees meet regularly to discuss whether performance has been matched to objectives.

Policy on reserves

Reserves consist of unrestricted funds. It is the policy of the charity to distribute up to 100% of net income, in addition to any undistributed unrestricted funds, at the discretion of the trustees. Liquid funds are maintained at a level which is considered adequate to cover short term requirements.

THE ARCHIE SHERMAN CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

Risk management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Risk assessments are carried out in order to ascertain the likelihood of a risk event occurring, of its potential impact, and whether any cost effective mitigating action may be taken. Potential risks have been identified and are reviewed on a regular basis.

Plans for the future

The future plans and objectives of the charity are to maintain and where possible to increase the level of income and to distribute the income to chosen charitable beneficiaries.

To ensure that future plans and objectives are set, reviewed, and on target, trustees hold regular meetings to compare and discuss the budgeted and actual income/distributions and where necessary seek counsel from professional advisors.

Structure, governance and management

The charity was established by a charitable trust deed on 3 April 1967.

The trustees who served during the year were: M J Gee A H S Morgenthau R Freedman A Simon

The power to appoint new or additional trustees is vested in the trustees. In exercising this power, the trustees would use their own network of contacts, including family members, to identify suitable candidates possessing the necessary knowledge and skills to act as trustees. Trustees are expected to identify their training needs and to take measures to ensure that these needs are met.

The charity has four trustees including a chartered accountant and a solicitor. Day to day matters are handled at the charity's office and regular meetings of the trustees are held. The trustees review all commitments on a forward five-year basis so that new projects can be undertaken and income is made available.

In 1997 the trustees made charitable settlements of £50 each to establish three new charitable trusts. Two of these trusts, the Jacqueline & Michael Gee Charitable Trust and the Diana and Allan Morgenthau Charitable Trust are controlled by the trustees M J Gee and A H S Morgenthau respectively and their wives.

The charity's property portfolio is managed on a professional basis by Archie Sherman Administration Limited of which M J Gee is a director and sole shareholder.

The trustees have not received any remuneration during the year. Details of expenses, fees and related party transactions are disclosed in notes 9 and 21 to the financial statements.

On behalf of the board of trustees

M J Gee

Trustee Dated: 8 March 2024

THE ARCHIE SHERMAN CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE ARCHIE SHERMAN CHARITABLE TRUST

Opinion

We have audited the financial statements of The Archie Sherman Charitable Trust (the ‘charity’) for the year ended 5 April 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

THE ARCHIE SHERMAN CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ARCHIE SHERMAN CHARITABLE TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

THE ARCHIE SHERMAN CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ARCHIE SHERMAN CHARITABLE TRUST

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

Use of our report

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

TC Group

11 March 2024

Statutory Auditor

Devonshire House 1 Devonshire Street London W1W 5DR

TC Group 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.

THE ARCHIE SHERMAN CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 5 APRIL 2023

2023 2022
Notes £ £
Income from:
Investment income 3 1,177,835 1,076,422
Expenditure on:
Raising funds 4 283,100 353,892
Net incoming resources 894,735 722,530
Charitable activities
Education and training 5 1,130,082 39,031
Overseas aid 5 21,525 22,199
Arts and culture and general charitable causes 5 278,241 396,972
Health 5 318,419 88,189
Total charitable expenditure 1,748,267 546,391
Total expenditure 2,031,367 900,283
Net gains/(losses) on investments 12 241,198 102,976
Net movement in funds (612,334) 279,115
Fund balances at 6 April 2022 18,688,579 18,409,464
Fund balances at 5 April 2023 18,076,245 18,688,579

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

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

THE ARCHIE SHERMAN CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2023

2023 2023 2022 2022
Notes £ £ £ £
Fixed assets
Investment properties 13 17,182,668 16,889,067
Investments 14 979,854 988,656
18,162,522 17,877,723
Current assets
Trade and other receivables 15 123,743 114,383
Cash at bank and in hand 1,522,859 1,443,514
1,646,602 1,557,897
Current liabilities 16 (920,272) (575,752)
Net current assets 726,330 982,145
Total assets less current liabilities 18,888,852 18,859,868
Non-current liabilities 17 (812,607) (171,289)
Net assets 18,076,245 18,688,579
Income funds
Unrestricted funds 18,076,245 18,688,579
18,076,245 18,688,579

The notes on pages 11 to 22 form part of these financial statements

The financial statements were approved by the Trustees on 8 March 2024

M J Gee Trustee

THE ARCHIE SHERMAN CHARITABLE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2023

2023 2023 2022 2022
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 22 (1,054,889) (1,092,538)
Investing activities
Improvements to investment property (43,601) -
Investment income received 1,177,835 1,076,422
Net cash generated from investing
activities 1,134,234 1,076,422
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash
equivalents 79,345 (16,116)
Cash and cash equivalents at beginning of year 1,443,514 1,467,882
Effect of foreign exchange rates - (8,252)
Cash and cash equivalents at end of year 1,522,859 1,443,514

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

1 Accounting policies

Charity information

The Archie Sherman Charitable Trust is a charity registered in England and Wales. The charity's principal address is 274a Kentish Town Road, London, NW5 2AA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

The charity's unrestricted funds are attributable to the original amount settled on the charity, subsequent settlements, accumulated realised and unrealised capital gains/losses and undistributed income. Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

1.4 Incoming resources

Investment income is earned through holdings of assets for investment purposes such as shares and property. Income includes interest and rent and is recognised when the amount can be measured reliably. Interest income is recognised using the effective interest method and rental income is recognised as the charity’s right to receive payment is established.

1.5 Resources expended

Expenditure on grants is recorded once the charity has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier.

Other expenditure is included in the financial statements on an accruals basis.

Charitable activities include expenditure associated with grants payable, support costs and governance costs.

Support costs include staff, office and other costs incurred in the running of the charity.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs and governance costs have been apportioned against each individual charitable activity.

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

1 Accounting policies

(Continued)

1.6 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.

1.7 Non-current investments

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured 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 revaluation and disposals throughout the year.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's statement of financial position when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

1 Accounting policies

(Continued)

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Differences arising on commitments in foreign currencies are allocated against the relevant heading under charitable activities. Differences on bank balances are included with support costs.

1.12 Charitable commitments

Charitable commitments are provided as liabilities, discounted at an appropriate rate, and shown as grants payable where they are legally or constructively binding. The excess of charitable commitments paid over the discounted commitments previously provided are treated as unwinding charges and included as part of grants payable.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Valuation of investment properties

Investment properties are recognised at fair value, with changes in fair value being recognised through profit or loss. The investment properties are stated at the trustees' valuation on an open market basis. There is an inevitable degree of judgement involved and value can only ultimately be reliably tested in the market itself.

3 Investment income

Rental and other property income
Interest receivable		 2023
£
1,177,832
3
1,177,835		 2022
£
1,076,422
-
1,076,422

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

4 Raising funds

Property related costs 2023
£
283,100
283,100		 2022
£
353,892
353,892

Property related costs comprise £126,000 (2022: £121,359) of management fees together with other property related expenditure of £157,100 (2022: £232,533).

5 Charitable activities

Education
and training
£
Grant funding of activities
(see note 6)
1,043,136
Foreign exchange
7,391
Share of support costs
(see note 7)
53,475
Share of governance
costs (see note 7)
26,080
1,130,082
Analysis by fund
Unrestricted funds
1,130,082
1,130,082
For the year ended 5 April 2022
Unrestricted funds
39,031
39,031		 Overseas
aid
Arts and
culture and
general
charitable
causes
£
£
20,000
258,525
-
-
1,025
13,253
500
6,463
21,525
278,241
21,525
278,241
21,525
278,241
22,199
396,972
22,199
396,972		 Health
£
295,855
-
15,167
7,397
318,419
318,419
318,419
88,189
88,189		 Total
2023
£
1,617,516
7,391
82,920
40,440
1,748,267
1,748,267
1,748,267		 Total
2022
£
427,883
7,460
73,168
37,880
546,391
546,391
546,391

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

6 Grants payable

Education
and training
£
Grants to institutions:
The Diana and Allan
Morgenthau Charitable
Trust
-
The Jacqueline and
Michael Gee Charitable
Trust
-
The Rosalyn and
Nicholas Springer
Charitable Trust
-
Yad Vashem - Cyber
Security
115,085
Jewish Child's Day - The
Netanya Foundation
Jewish Child's Day
-
Yemin Orde - Renovate
Children's House
447,152
Jewish Care
-
Royal Opera House
Covent Garden
Foundation
-
The Royal National
Theatre
-
Norwood Ravenswood
-
Nightingale Hammerson
-
Community Security
Trust
-
Youth Aliyah - Child
Rescue (Yemin Orde)
-
Glyndebourne
Productions Limited
-
The British Friends of the
Jaffa Institute
-
Shaare Zedek UK
-
The Royal Academy of
Arts
-
UK Friends of I.D.C.
103,727
Carried forward
665,964		 Education
and training
£
Grants to institutions:
The Diana and Allan
Morgenthau Charitable
Trust
-
The Jacqueline and
Michael Gee Charitable
Trust
-
The Rosalyn and
Nicholas Springer
Charitable Trust
-
Yad Vashem - Cyber
Security
115,085
Jewish Child's Day - The
Netanya Foundation
Jewish Child's Day
-
Yemin Orde - Renovate
Children's House
447,152
Jewish Care
-
Royal Opera House
Covent Garden
Foundation
-
The Royal National
Theatre
-
Norwood Ravenswood
-
Nightingale Hammerson
-
Community Security
Trust
-
Youth Aliyah - Child
Rescue (Yemin Orde)
-
Glyndebourne
Productions Limited
-
The British Friends of the
Jaffa Institute
-
Shaare Zedek UK
-
The Royal Academy of
Arts
-
UK Friends of I.D.C.
103,727
Carried forward
665,964		 Overseas
aid
Arts and
culture and
general
charitable
causes
£
£
-
45,000
-
45,000
-
45,000
-
-
10,000
-
-
-
-
-
-
-
-
8,250
-
20,000
-
-
-
-
-
15,000
-
-
-
2,100
-
6,100
-
-
-
17,000
-
-
10,000
203,450		 Health
£
-
-
-
-
-
-
37,500
-
-
30,000
15,000
-
-
-
-
213,354
-
-
295,854		 Total
£
45,000
45,000
45,000
115,085
10,000
-
447,152
37,500
8,250
20,000
30,000
15,000
15,000
-
2,100
6,100
213,354
17,000
103,727
1,175,268		 2022
£
55,500
60,000
60,000
-
9,000
31,375
-
37,500
17,500
20,000
-
15,000
15,000
3,428
2,100
5,200
2,381
17,000
22,220
£
-
-
-
115,085
-
447,152
-
-
-
-
-
-
-
-
-
-
-
103,727
665,964
373,204

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

6
Grants payable
Education
and training
£
Brought forward
665,964
Tel Aviv University Trust
-
Tel Aviv University -
Renovate
Laboratories
372,628
My Israel
-
Chai-Lifeline Cancer
Care
Save a Child's Heart
4,545
Magen David Adom
UK
-
ITC The Israel Tennis
Club
-
The Central British
Fund for World
Jewish Relief
-
The Jerusalem
Foundation
-
1,043,137		 6
Grants payable
Education
and training
£
Brought forward
665,964
Tel Aviv University Trust
-
Tel Aviv University -
Renovate
Laboratories
372,628
My Israel
-
Chai-Lifeline Cancer
Care
Save a Child's Heart
4,545
Magen David Adom
UK
-
ITC The Israel Tennis
Club
-
The Central British
Fund for World
Jewish Relief
-
The Jerusalem
Foundation
-
1,043,137		 Overseas
aid
Arts and
culture and
general
charitable
causes
£
£
10,000
203,450
-
-
-
-
-
5,000
-
-
10,000
-
-
33,075
-
17,000
-
-
20,000
258,525		 Health
£
295,854
-
-
-
-
-
-
-
-
295,854		 Total
2022
£
£
(Continued)
1,175,268
373,204
-
3,427
372,628
-
5,000
2,500
-
5,000
4,545
6,125
10,000
33,075
-
17,000
20,000
-
17,625
1,617,516
427,881		 Total
2022
£
£
(Continued)
1,175,268
373,204
-
3,427
372,628
-
5,000
2,500
-
5,000
4,545
6,125
10,000
33,075
-
17,000
20,000
-
17,625
1,617,516
427,881
£
665,964
-
372,628
-
4,545
-
-
-
-
1,043,137
427,881

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

7 Support costs

Staff costs
Office service charges
Travelling
Overseas representatives
Other costs
Foreign exchange
Audit fees
Accountancy
Legal and professional
Insurance
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
41,331
-
12,501
4,167
2,730
-
26,262
-
96
-
-
-
-
7,000
-
25,400
-
1,685
-
2,188
82,920
40,440
82,920
40,440		 2023
£
41,331
16,668
2,730
26,262
96
-
7,000
25,400
1,685
2,188
123,360
123,360		 2022
£
41,238
14,846
-
20,746
93
(44
7,000
25,310
-
1,859
111,048
111,048

Office service charges payable of £16,668 (2022: £14,846) have been allocated between support costs (75%) and governance costs (25%) based on an estimate of usage.

The total support and governance costs attributable to charitable activities are apportioned pro rata to the cost of grants.

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

9 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor:
Audit of the charity's annual accounts
Non-audit services
All other non-audit services		 2023
£
7,000
26,700		 2022
£
7,000
25,310

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

10 Employees

Number of employees

Administration
Employment costs
Wages and salaries
Social security costs		 2023
Number
1
2023
£
41,331
-
41,331		 2022
Number
1
2022
£
40,825
413
41,238

There were no employees whose annual remuneration was £60,000 or more.

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

12 Net gains/(losses) on investments

Revaluation of investments
Revaluation of investment properties
Investment properties
Fair value
At 6 April 2022
Additions
Net gains or losses through fair value adjustments
At 5 April 2023		 2023
£
(8,802)
250,000
241,198		 2022
£
102,976
-
102,976
2023
£
16,889,067
43,601
250,000
17,182,668

13 Investment properties

M J Gee is a trustee of the charity with considerable knowledge and experience of the properties and his company Archie Sherman Administration Limited manages the Trust's portfolio of investment properties. The properties have been stated at their fair values as at 5 April 2023, as assessed by M J Gee based on an assessment of rental yields together with other relevant factors and agreed by the other trustees.

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

14 Fixed asset investments

Notes
Investments in subsidiaries
20
Listed investments
Listed investments included above:
Listed investments carrying amount		 2023
£
203
979,651
979,854
2023
£
979,651		 2022
£
203
988,453
988,656
2022
£
988,453

Movements in non-current investments

Movements in non-current investments
Listed
Investments
Investments
in
subsidiaries
£
£
Cost or valuation
At 6 April 2022
988,453
203
Valuation changes
(8,802)
-
At 5 April 2023
979,651
203
Carrying amount
At 5 April 2023
979,651
203
At 5 April 2022
988,453
203
15
Trade and other receivables
2023
Amounts falling due within one year:
£
Amount due from subsidiary
1,309
Other receivables
122,434
123,743		 Total
£
988,656
(8,802)
979,854
979,854
988,656
2022
£
1,159
113,224
114,383

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

16 Current liabilities

Other taxation and social security
Grants payable
Other payables
Accruals and deferred income
Non-current liabilities
Grants payable		 2023
£
10,165
429,640
152,321
328,146
920,272
2023
£
812,607		 2022
£
7,304
127,717
151,177
289,554
575,752
2022
£
171,289

17 Non-current liabilities

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 6 April
2022
£
18,688,579
At 6 April
2021
£
18,409,464		 Incoming
resources
£
1,177,835
Incoming
resources
£
1,076,422		 Resources
expended
£
(2,031,367)
Resources
expended
£
(900,283)		 Gains and
losses
£
241,198
Gains and
losses
£
102,976		 At 5 April
2023
£
18,076,245
At 5 April
2022
£
18,688,579

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

19 Grant commitments

Charitable
commitments
accrued
£
Grant commitments recognised at the start of the year 299,006
Commitments made in the year 1,617,516
Grants paid during the year (681,666)
Foreign exchange difference on commitments 7,391
Amount of grant commitments recognised at 5 April 2022 1,242,247
Grant commitments at 5 April 2022 recognised as:
Due within one year: 429,640
Due over one year: 812,607
1,242,247

20 Subsidiaries

These financial statements are separate charity financial statements for The Archie Sherman Charitable Trust.

Details of the charity's subsidiaries at 5 April 2023 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indire
ct
Archie Sherman Trust England & Wales Dormant Ordinary 100.00
Nominees Limited (Company
Number 00915582)
ASCT Developments Limited England & Wales Dormant Ordinary 100.00
(Company Number 03741751)
Thamawell Limited (Company England & Wales Dormant Ordinary 50.00
Number 00851792)

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

20 Subsidiaries

(Continued)

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Archie Sherman Trust
Nominees Limited
(Company Number
00915582) - 100
ASCT Developments Limited
(Company Number
03741751) (97) (569)
Thamawell Limited
(Company Number
00851792) (97) (368)

The charity's subsidiaries are nominee companies which hold no assets in their own right.

21 Related party transactions

During the year the charity made donations of £45,000 (2022: £55,500) to the Diana and Allan Morgenthau Charitable Trust (a charity of which A H S Morgenthau is also a trustee) and £45,000 (2022: £60,000) to the Jacqueline and Michael Gee Charitable Trust (a charity of which M J Gee is also a trustee).

During the year the charity also made donations of £6,100 (2022: 5,200) to the British Friends of the Jaffa Institute (a charity of which A H S Morgenthau is also a trustee).

During the year the charity paid property management fees of £126,000 (2022: £121,359) and office service charges of £16,668 (2022: £14,846) to Archie Sherman Administration Limited, a company controlled by M J Gee.

At the year end the charity owed Archie Sherman Administration Limited £16,992 (2022: £32,053).

At the year end, the charity's subsidiary undertaking, ASCT Developments Limited ("the company"), owed the charity £1,103 (2022: £1,053). The company was dormant during the year.

THE ARCHIE SHERMAN CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

22 Cash generated from operations 2023 2022
£ £
(Deficit)/surpus for the year (612,334) 279,115
Adjustments for:
Investment income recognised in statement of financial activities (1,177,835) (1,076,422)
Foreign exchange differences - 8,252
Fair value gains and losses on investment properties (250,000) -
Fair value gains and losses on investments 8,802 (102,976)
Movements in working capital:
(Increase)/decrease in trade and other receivables (9,360) 29,549
Increase/(decrease) in trade and other payables 985,838 (230,056)
Cash absorbed by operations (1,054,889) (1,092,538)
23 Analysis of changes in net funds

The charity had no material debt during the year.