Charity Registration No. 257950
THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2022
THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | M Sternberg KC KCFO |
|---|---|
| Martn Arthur Malcom Slowe FRICS | |
| Noam Tamir | |
| Martn David Paisner CBE | |
| Charity number | 257950 |
| Principal address | Star House |
| 104/ 108 Grafon Road | |
| London | |
| NW5 4BA | |
| Auditor | HW Fisher LLP |
| Acre House | |
| 11-15 William Road | |
| London | |
| NW1 3ER | |
| United Kingdom | |
| Bankers | Barclays Bank plc |
| 1 Churchill Place | |
| London | |
| E14 5HP | |
| Solicitors | Payne Hicks Beach |
| 10 New Square | |
| Lincolns Inn | |
| London | |
| WC2A 3QG |
THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Statement of Trustees' responsibilites | 4 |
| Independent auditor's report | 5 - 7 |
| Statement of fnancial actvites | 8 |
| Balance sheet | 9 |
| Notes to the fnancial statements | 10 - 21 |
THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 5 APRIL 2022
The Trustees present their report and financial statements for the year ended 5 April 2022.
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 from 1 January 2019).
Objectives and activities
The Charitable Trust is constituted by Trust Deed (dated 20 December 1968; amended on 12 March 2008; further amended on 21 August 2013) and its public benefit objectives and aims are to apply the Trust Fund and Income thereof for general charitable purposes, in particular by the making of grants to charitable institutions, and the furtherance of the interfaith activities to promote racial and religious harmony.
Charitable grants are made and interfaith activities promoted and supported as decided by the Trustees from time to time, Details of significant activities are given below.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Grant-Making Policy
The Trustees meet from time to time to consider the making of charitable grants to institutions and to review any applications for grants that have been received. During the year the charity made grants of £198,768 (2021: £220,490) for general and specific charitable purposes; details of grants are shown in the notes to the financial statements and these grants supported the public benefit activities of those institutions.
Safeguarding
Although the Foundation does not work directly with children or vulnerable adults, it may provide funding to other charities that work with these groups. As such the trustees seek to ensure, through proportionate and reasonable due diligence, that charities which they support take their responsibilities seriously and that they have adequate and appropriate safeguards in place. The trustees intend to review their safeguarding policy and procedures on an annual basis.
Achievements and performance
The trustees consider that the performance of the charity this year has been satisfactory. During the year the Foundation made grants to charitable institutions for general charitable purposes. The Times Sternberg Age Awards ceremony had been scheduled to take place at 11 Downing Street as soon as pandemic regulations and guidance allowed. The Judges had already selected the winners of the awards but the ceremony had had to be delayed. The ceremony for The Time Sternberg Active Life Awards eventually took place in late November 2021 at 11 Downing Street, with the kind permission of the Chancellor of the Exchequer. Baroness Ros Altman CBE presented the prizes, a managing editor of The Times spoke, and the event was hosted by Michael Sternberg KC KCFO, holder of the Cross of the Order of Merit of the Federal Republic of Germany, who is the Chair of the Foundation. He also broadcast on Times Radio about the event. Immediately thereafter, planning began for the next competition, with the next Awards date fixed for 9 February 2023 at 11 Downing Street again with the kind permission of the Chancellor of the Exchequer.
The Trustees have continued the promotion and support of education in the field of racial and religious activities (interfaith activities), in particular, between the three Abrahamic faiths (Christian, Jewish and Muslim), and the education in and understanding of their fundamental tenets and beliefs. Events and activities in this respect included ongoing dialogue and meetings in relation to the unique Jewish Christian Muslim health care co-operation project in Israel operated by the Faith and Belief Forum. The Sternberg Interfaith Gold Medallion is a prestigious award which recognises exceptional interfaith contributions. The Trustees are actively planning three further awards in 2023.
The Rt. Reverend and Rt Honourable, Lord Chartres, the former Bishop of London, gave an interfaith lecture under the aegis of the Foundation at Gray’s Inn in November 2021, which was a very well attended lecture and aroused much interest.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
Financial review
The main source of the charity's income is investment income in the form of rental income received from investment properties. The trustees consider that the income yield is considerably more attractive than might reasonably be obtained in other areas with a similar risk (minimum) profile and the investment property portfolio is considered to represent a good overall investment return.
Details of income and expenditure are shown in the Statement of Financial Activities and the notes to the financial statements give details of the expenditure which has supported the activities of the Charitable Foundation during the year in meeting its key objectives.
The charity's assets are held for general charitable purposes as specified in the Trust Deed dated 20 December 1968 and the Board of Trustees consider that the financial position of the charity at 5 April 2022 is satisfactory.
The quoted investments and freehold, leasehold and ground rent investment properties held by the charity have been acquired in accordance with the powers available to the trustees. The trustees' have estimated the fair values of the investment properties and the quoted investments details are shown in the notes to the Financial Statements.
During the year there were unrealised gains of £210,000 (2021: nil) and unrealised losses of £nil (2021: £320,000) on investment properties.
Reserves Policy
The Trustees have examined the requirement for free reserves which are those unrestricted funds not invested in Fixed Assets. It is the policy of the charity to maintain free reserves at a level considered adequate to provide sufficient funds to enable it to meet its charitable commitments as they fall due; the free reserves amounted to £310,036 (2021: £381,416). Designated funds have been created up to an amount equivalent to the value of fixed assets held as these represent funds not immediately available for making charitable grants or for making payments for general charitable purposes. Designated funds amounted to £3,418,657 (2021: £3,209,816).
Risk Management
The trustees continually review the affairs of the charity to identify any major risks which the charity faces. In order to lessen such risks, the trustees previously appointed Property Management Agents to manage all of the charity's investment properties and report to the trustees with their recommendations in regard thereto; the trustees consider that thisappointment, combined with the policy of maintaining Free Reserves and Designated Funds at the levels set out above, will ensure that the charity has sufficient resources in the event of adverse conditions arising. The trustees consider that the charity does not face any other significant business or operational risks.
Future Plans
The charity will continue its current activities for public benefit.
Structure, governance and management
Appointment of trustees is governed by the Trust Deed of the charity. The trustees are responsible for the day to day administration of the charity and hold periodic trustees' meetings.
The Trustees who served during the year and up to the date of signature of the financial statements were: M Sternberg KC KCFO Reverend Doctor Marcus Christopher Rossi Braybrooke MA MPhil (Retired 1 May 2022) Martin Arthur Malcom Slowe FRICS Noam Tamir Martin David Paisner CBE
The Board of Trustees is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing trustee. The Board of Trustees ensures that the skill requirements of trustees are kept under review. New trustees, if required, are sought by recommendation from existing trustees and are given a synopsis of the history of the charity, its development, current activities and future plans, and the required training is given by existing trustees
The Sir Sigmund Sternberg Charitable Foundation wishes to express its appreciation of the efforts of its trustees and of the hard work of its staff over the last year.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
Details of the related party transactions are shown in note 23 of the Notes to the Financial Statements.
Investment Powers
The Trust Deed authorises the trustees to make and hold investments using the general funds of the charity.
The Trustees' report was approved by the Board of Trustees.
M Sternberg KC KCFO
Trustee Dated: 26 January 2023
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 5 APRIL 2022
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
Opinion
We have audited the financial statements of The Sir Sigmund Sternberg Charitable Foundation (the ‘Charity’) for the year ended 5 April 2022 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including 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).
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In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 5 April 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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.
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:
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the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
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 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.
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.
As part of our planning process:
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We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud.
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We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: the Charity SORP, FRS 102, and the Charities Act 2011.
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We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
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Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
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The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
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Identifying and testing the transactions including journal entries in the accounting records, in particular those that were significant and unusual.
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Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
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� Reviewing Board Minutes.
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Obtaining confirmation of ownership of investment properties from the Land Registry.
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Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
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Documenting and verifying all significant related party balances and transactions.
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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
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 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
HW Fisher LLP
Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom
30 January 2023
HW Fisher LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 5 APRIL 2022
| Unrestricted Unrestricted funds funds general designated 2022 2022 Notes £ £ Income from: Investments 3 272,906 - Expenditure on: Property management 4 75,830 - Charitable actvites 5 269,615 - Total resources expended 345,445 - Net gains/(losses) on investments 11 210,000 - Net incoming/(outgoing) resources before transfers 137,461 - Gross transfers between funds 12 (208,841) 208,841 Net expenditure for the year/ Net movement in funds (71,380) 208,841 Fund balances at 6 April 2021 As originally reported 405,299 3,209,816 Prior year adjustment 7 (23,883) - As restated 381,416 3,209,816 Fund balances at 5 April 2022 310,036 3,418,657 |
Total Unrestricted Unrestricted funds funds general designated 2022 2021 2021 £ £ £ 272,906 240,736 - 75,830 65,220 - 269,615 291,500 - 345,445 356,720 - 210,000 (320,000) - 137,461 (435,984) - - 321,363 (321,363) 137,461 (114,621) (321,363) 3,615,115 496,037 3,531,179 (23,883) - - 3,591,232 496,037 3,531,179 3,728,693 381,416 3,209,816 |
Total restated 2021 £ 240,736 65,220 291,500 356,720 (320,000) (435,984) - (435,984) 4,027,216 - 4,027,216 3,591,232 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
BALANCE SHEET
AS AT 5 APRIL 2022
| Notes Fixed assets Tangible assets 13 Investment propertes 14 Investments 15 Current assets Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilites Income funds Unrestricted funds Designated funds 20 General unrestricted funds |
2022 £ 31,184 336,667 367,851 (57,815) 3,418,657 310,036 |
£ 6,567 3,411,060 1,030 3,418,657 310,036 3,728,693 3,728,693 3,728,693 |
2021 restated £ 70,316 396,371 466,687 (85,271) 3,209,816 381,416 |
£ 7,726 3,201,060 1,030 |
|---|---|---|---|---|
| 3,209,816 381,416 |
||||
| 3,591,232 | ||||
| 3,591,232 | ||||
| 3,591,232 |
The financial statements were approved by the Trustees on 26 January 2023
M Sternberg KC KCFO
Trustee
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
The Sir Sigmund Sternberg Charitable Foundation is an unincorporated charity registered with the Charity Commission for England and Wales.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charity's governing document, 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 Charity has taken advantage of the provisions in the SORP for charities applying FRS 102, but which are small, not to prepare a statement of cash flows.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
The Foundation is a grant making charity and its expenditure is largely discretionary. 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
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds comprise funds to maintained to distinguish between fixed assets and those more general funds available for charitable use. The purposes and uses of the designated funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Resources expended
Support Costs are charged on an accruals basis. Grants are charged in the year when paid or when funds for future grants are committed; they comprise payments to third party institutions in accordance with the charitable objects of the charity and its public benefit objectives.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 15% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.8 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.10 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.
The Charity has financial assets and financial liabilities only of a kind that qualify as basic financial instruments. Basic financial instruments other than fixed asset investments are initially recognised at transaction value and subsequently measured at their settlement value.
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. Investment properties have been revalued at the year end date by one of the Trustees, Martin Slowe FRICS, at an estimate of fair value. There are no estimation uncertainties in the financial statements.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
3 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2022 | 2021 | |
| £ | £ | |
| Rental income | 272,906 | 240,316 |
| Interest receivable | - | 420 |
| 272,906 | 240,736 |
4 Property management
| Unrestricted | Unrestricted | |||
|---|---|---|---|---|
| funds | funds | |||
| general | general | |||
| Restated | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Property | management | expenses | 75,830 | 65,220 |
| 75,830 | 65,220 |
Property management expenses above include managing agents’ commissions on the collection of rents, the day to day management of the property portfolio, including issues relating to rent arrears, advice on lease renewals and sales also any agent’s commissions on sales.
5 Charitable activities
| General purposes Interfaith Actvites 2022 2022 £ £ Event costs 7,854 - Grant funding of actvites (see note 6) 20,210 178,558 Share of support costs (see note 8) - 37,659 Share of governance costs (see note 8) - 25,334 28,064 241,551 |
Total 2022 General purposes Interfaith Actvites 2021 2021 £ £ £ 7,854 10,000 - 198,768 34,966 185,524 37,659 - 44,818 25,334 - 16,192 269,615 44,966 246,534 |
Total 2021 £ 10,000 220,490 44,818 16,192 |
|---|---|---|
| 291,500 |
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
6 Grants payable
| General purposes Interfaith Actvites 2022 2022 £ £ Grants to insttutons: The Faith and Belief Forum (formerly The Three Faiths Forum) - 145,228 Faith and Belief Forum - donaton towards ofce costs - 33,330 Woolf Insttute 10,000 - World Congress of Faiths 3,530 - Queens College Cambridge - - New Israel Fund 5,000 - Royal College of Speech and Language Therapists - - Liberal Jewish Synagogue - - Other 1,680 - 20,210 178,558 |
Total 2022 General purposes Interfaith Actvites 2021 2021 £ £ £ 145,228 - 165,264 33,330 - 20,260 10,000 10,000 - 3,530 3,500 - - 6,500 - 5,000 5,000 - - 2,000 - - 2,000 - 1,680 5,966 - 198,768 34,966 185,524 |
Total 2021 £ 165,264 20,260 10,000 3,500 6,500 5,000 2,000 2,000 5,966 |
|---|---|---|
| 220,490 |
7 Prior year adjustment
The prior year adjustment relates to property management expenditure that was recorded in the year 2021/22 but which related to the prior year. In the comparative year, property management expenses and accruals have both been increased by £23,883.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 8 Support costs Support costs Governance costs £ £ Staf costs 14,809 - Depreciaton 1,159 - Ofce service charges and rates 4,425 - Ofce Rent 5,000 - Cleaning 2,939 - Insurance 500 - Sundry Expenses 768 - Printng and Statonery 496 - Telephone and Fax 7,563 - Audit fees - 11,100 Accountancy - 4,837 Legal and professional - 9,397 37,659 25,334 Analysed between Charitable actvites 37,659 25,334 |
2022 Support costs Governance costs £ £ £ 14,809 24,935 - 1,159 1,363 - 4,425 3,861 - 5,000 4,000 - 2,939 1,152 - 500 - - 768 - - 496 1,593 - 7,563 7,914 - 11,100 - 8,250 4,837 - 6,191 9,397 - 1,751 62,993 44,818 16,192 62,993 44,818 16,192 |
2021 £ 24,935 1,363 3,861 4,000 1,152 - - 1,593 7,914 8,250 6,191 1,751 |
|---|---|---|
| 61,010 | ||
| 61,010 |
Governance costs includes payments to the auditors of £11,100 (2021: £8,250) for audit fees and £4,837 for VAT advice and accountancy including an under-provision of £716 (2021: £6,191).
9 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
10 Employees
Number of employees
The average monthly number of employees during the year was:
| Administraton Employment costs Wages and salaries Social security costs |
2022 Number 1 2022 £ 14,809 - 14,809 |
2021 Number 2 |
|---|---|---|
| 2021 £ 23,625 1,310 |
||
| 24,935 |
There were no employees whose emoluments exceeded £60,000 (2021: nil).
11 Net gains/(losses) on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2022 | 2021 | |
| £ | £ | |
| Revaluaton of investment propertes | 210,000 | (320,000) |
12 Transfers
Transfers represent the adjustment to designated funds to reflect the fixed asset fund balances.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 13 Tangible fxed assets Fixtures Cost At 6 April 2021 At 5 April 2022 Depreciaton and impairment At 6 April 2021 Depreciaton charged in the year At 5 April 2022 Carrying amount At 5 April 2022 At 5 April 2021 14 Investment property Fair value At 6 April 2021 Net gains or losses through fair value adjustments At 5 April 2022 Investment propertes comprise the following: Freehold Propertes 2,4,6 & 8 The Bridge, Chippenham, Wilts 10 & 12 The Bridge, Chippenham, Wilts 14 & 16 The Bridge, Chippenham, Wilts 18 The Bridge, Chippenham, Wilts 20/22 The Bridge, Chippenham, Wilts 47 Union Street, Aldershot, Hants Long Leasehold Propertes Supermarket, 41 St John's Way, Corringham, Essex Short Leasehold Propertes Ground and First Floors of Star House, 104/108 Grafon Road, London, NW5 |
and ftngs £ 94,911 |
|---|---|
| 94,911 | |
| 87,185 1,159 |
|
| 88,344 | |
| 6,567 | |
| 7,726 | |
| 2022 £ 3,201,060 210,000 |
|
| 3,411,060 | |
Market Value represents the trustees' best estimate of the values of the investment properties at the year end. In addition, ground rents of £1,060 are included above.
Historical acquisition value £2,417,165
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 14 Investment property Freehold Long leasehold Short leasehold 15 Fixed asset investments Cost or valuaton At 6 April 2021 & 5 April 2022 Carrying amount At 05 April 2022 At 05 April 2021 16 Financial instruments Carrying amount of fnancial assets Instruments measured at fair value through proft or loss 17 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income |
(Contnued) 2022 2021 £ £ 2,750,000 2,550,000 400,000 400,000 260,000 250,000 3,410,000 3,200,000 Quoted Securites (Non-UK) £ 1,030 1,030 1,030 2022 2021 £ £ 1,030 1,030 2022 2021 £ £ 1,547 1,547 29,637 68,769 31,184 70,316 |
(Contnued) 2022 2021 £ £ 2,750,000 2,550,000 400,000 400,000 260,000 250,000 3,410,000 3,200,000 Quoted Securites (Non-UK) £ 1,030 1,030 1,030 2022 2021 £ £ 1,030 1,030 2022 2021 £ £ 1,547 1,547 29,637 68,769 31,184 70,316 |
|---|---|---|
| £ 1,030 |
||
| 1,030 | ||
| 1,030 | ||
| 2021 £ 1,030 |
||
| 2021 £ 1,547 68,769 |
||
| 70,316 |
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
18 Creditors: amounts falling due within one year
| Notes Other taxaton and social security Deferred income 19 Other creditors Accruals 19 Deferred income Arising from rental income |
2022 £ 4,581 38,848 1,984 12,402 57,815 2022 £ 38,848 |
2021 Restated £ 9,335 37,559 1,984 36,393 |
|---|---|---|
| 85,271 | ||
| 2021 £ 37,559 |
The income deferred in the current year is £38,848 (2021: £37,559) with amounts released in the year of £37,559 (2021: £37,098). This is deferred as rental income was received relating to a period post 5 April 2022.
20 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Balance at 6 April 2020 £ Tangible fxed assets 9,089 Fixed asset investments 1,030 Investment property 3,521,060 3,531,179 |
Transfers Balance at 6 April 2021 £ £ (1,363) 7,726 - 1,030 (320,000) 3,201,060 (321,363) 3,209,816 |
Transfers Balance at 5 April 2022 £ £ (1,159) 6,567 - 1,030 210,000 3,411,060 208,841 3,418,657 |
Transfers Balance at 5 April 2022 £ £ (1,159) 6,567 - 1,030 210,000 3,411,060 208,841 3,418,657 |
|---|---|---|---|
| 3,418,657 |
The designated fund represent the net book value of fixed assets and have been created as these represent funds not immediately available for charitable grants or for the promotion and support of education in the field of racial harmony (interfaith activities). Each year an amount is transferred to or from these funds which represents the movements in the net book value of fixed assets in the year.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 21 Analysis of net assets between funds General Reserves Designated funds- Fixed Assets 2022 2022 £ £ Fund balances at 5 April 2022 are represented by: Tangible assets - 6,567 Investment propertes - 3,411,060 Investments - 1,030 Current assets/(liabilites) 310,036 - 310,036 3,418,657 |
Total 2022 £ 6,567 3,411,060 1,030 310,036 3,728,693 |
General Reserves Designated funds- Fixed Assets 2021 2021 Restated £ £ - 7,726 - 3,201,060 - 1,030 381,416 - 381,416 3,209,816 |
Total 2021 Restated £ 7,726 3,201,060 1,030 381,416 |
|---|---|---|---|
| 3,591,232 |
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
22 Operating lease commitments
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:
| Within one year Between two and fve years |
2022 £ 1,940 - 1,940 |
2021 £ 4,000 1,940 |
|---|---|---|
| 5,940 |
During the year the charity leased premises at a commercial rental of £4,000 (2021: £4,000) per annum all of which is recognised as an expense. The lease is for a period of 42 years from 29 September 2012 subject to the charity's right to determine the lease on expiry of the tenth, twentieth, thirtieth or fortieth years of the term of the lease.
23 Related party transactions
Finer Homes Limited
The Charity leased office premises from Finer Homes Limited, a company of which Martin Slowe and Noam Tamir are directors, at a rent of £4,000 per annum for the year to 5 April 2022 (2021: £4,000). Finer Homes Limited was entitled to receive £30,418 (2021: £23,883) from the charity relating to service charges.
The Charity leases part of one of its premises to a relation of one of the Trustees for a commercial rent of £5,000 per annum (2021: £5,000) the rate having been independently assessed.
Martin Slowe Property Services Limited (MSPS)
Martin Slowe Property Services Limited (MSPS) is property manager of the charity. Martin Slowe, a chartered surveyor, is neither a director nor an employee nor a shareholder of MSPS and has not received any remuneration from MSPS. A consultancy fee of £36,000 (2021: £36,000) was paid by MSPS to Martin Slowe Consultancy Limited.
Faith and Belief Forum
The Charity made a grant to the Faith and Belief Forum of £145,228 (2021: £165,264) a charity of which Michael Sternberg QC and Noam Tamir are trustees. A donation towards the office costs of £33,330 (2021: £20,260) was also made.
New Israel Fund
£5,000 (2021: £5,000) was granted to the New Israel Fund a charity of which Noam Tamir and Martin Paisner CBE are trustees.
Payne Hicks Beach
£5,400 was paid to Payne Hicks Beach for legal advice to the trustees, a Firm in which Martin Paisner CBE is a partner.
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THE SIR SIGMUND STERNBERG CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
24 Legacy receivable
The balance of the residuary estate of the late Sir Sigmund Sternberg, whatever that eventually may amount to, is held for the trustees of the charitable foundation.
Under the will of the late Sir Sigmund Sternberg, who died on 18 October 2016, this charity was left whatever might be left within the residuary estate of the deceased, after inter alia (1) All the costs of the administration of the estate had been discharged; (2) The payment of all inheritance tax and all other taxes had been completed; (3) The payment of all specific bequests; and (4) the exercise by the Executors of the Estate of powers expressly conferred upon them under the will of the testator.
When the estate is wound up, the residuary estate is likely to comprise a significant number of “A” ordinary shares in Starmount (Securities) Ltd. This is an unquoted property investment company. The value of this bequest of the residuary estate is not currently ascertainable, inter alia because the administration of the estate is continuing. Whilst there is clarity over the description of the gift under the terms of the will, it has not been brought into account in these financial statements of this Charity for the year ended 5 April 2022, principally because its ultimate extent and its value when it vests is currently unknown.
Michael Sternberg QC and Noam Tamir are Executors of the Estate of the late Sir Sigmund Sternberg; they are also together with Martin Slowe, Directors of Starmount (Securities) Limited
25
Contingent liability
The charity owns a long lease of two floors at Star House, 105, Grafton Road, Kentish Town, London NW5 4BA . The lease contains a qualified repairing covenant so the Charity has in this respect a liability to the freeholder of the building which is a firm called Finer Homes Limited. Three of the trustees of the charity are directors of Finer Homes Limited and the shares in Finer Homes Limited are held currently by the executors of the estate of the late Sir Sigmund Sternberg, who are themselves also trustees of the charity. In the year covered by these accounts no issues arose in relation to these relationships or the liability.
However it is likely that in succeeding years matters will arise requiring payment by the charity towards its repairing obligations under the lease. At that point the trustees of the charity will take expert building surveying advice. It is not possible at this stage to quantify what those liabilities might amount to.
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