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2022-04-05-accounts

Charity Registration No. 263726

THE MICHAEL AND ILSE KATZ FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

THE MICHAEL AND ILSE KATZ FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees The Lord Nathan Jonathan Azis Charity number 263726 Registered office Westwood Manor Bradford on Avon Wiltshire BA15 2AF Independent examiner RSM UK Tax and Accounting Limited Davidson House Forbury Square Reading Berkshire RG1 3EU Investment advisors Schroder & Co Limited 1 London Wall Place London EC2Y 5AU

THE MICHAEL AND ILSE KATZ FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees present their report and financial statements for The Michael and Ilse Katz Foundation ("the Foundation") 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 Foundation's trust deed, the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS 102.

Objectives and activities

The Foundation's objective is to benefit humanitarian needs through making grants to appropriate institutions and individuals.

The Foundation's principal activity is making grants. The Trustees consider applications for grants from institutions and individuals on their merits.

The Trustees have paid due regard to public benefit guidance issued by the Charity Commission in deciding what activities the Foundation should undertake.

The appointment of new or additional Trustees rests with the existing Trustees in accordance with clause 13 of the Deed of Settlement.

Achievements and performance

Grants are awarded to applicants at the Trustees' discretion. Applications are considered in relation to the prevention and relief of suffering and those in need. Applications from organisations focussing on medical and age support are given particular consideration. Likewise, interests of the late settlors will be at the Trustees' discretion.

During the year grants were paid to 23 (2021: 24) institutions and organisations totalling £93,000 (2021: £104,000) as detailed in note 6 to the financial statements.

Financial review

The net income for the year before gains and losses amounted to £5,674 (2021: net expenditure of £5,983).

Reserves policy

The Trustees' policy is to maintain reserves so that there is sufficient income arising from the assets and investments held to maintain the current level of donations and grants. In the event that the investment income is insufficient the Trustees would use the reserves to maintain the desired level of donations and grants. At the year end the charity had reserves of £3,144,150 (2021: £3,043,651).

Investment policy

The Trustees have wide investment powers, without restriction. The investment managers are Cazenove Capital, part of the Schroders Group. The present investment policy is to seek a long term balance between capital preservation, on the one hand, and income maximisation on the other because donations, in the past, have exceeded annual income, and may well do so in the future.

The investment policy of the Foundation is on a low risk basis and the finances are monitored regularly by the Trustees. The Trustees are therefore satisfied that they have taken the necessary steps to minimise the operational risks of the Foundation.

Risk management

The Trustees have assessed the major risks to which the Foundation is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

The Foundation has existed for some 50 years and it plans to continue to provide donations to various charities

from the investment income that it generates.

THE MICHAEL AND ILSE KATZ FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Structure, governance and management

The Foundation is an unincorporated charity registered in England and Wales.

The Trustees who served during the year were:

N Gilbert (Deceased 1 January 2022) O Azis (Deceased 15 October 2022) The Lord Nathan Jonathan Azis

The Trustees report was approved by the Board of Trustees and signed on its behalf by:

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.............................. Jonathan Azis Trustee November 11, 2022 Dated: .........................

THE MICHAEL AND ILSE KATZ FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees are responsible for preparing a Trustees' annual report and 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 Foundation and of the incoming resources and application of resources of the Foundation for that year.

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

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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 Foundation and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE MICHAEL AND ILSE KATZ FOUNDATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE MICHAEL AND ILSE KATZ FOUNDATION

I report to the Trustees on my examination of the financial statements of The Michael and Ilse Katz Foundation (‘the Foundation’) for the year ended 5 April 2022, which are set out on pages 5 to 12.

Responsibilities and basis of report

As the Trustees of the Foundation you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the Foundation’s financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.

RSM UK Tax and Accounting Limited provided book-keeping services to the charity during the year and I have applied the FRC's Revised Ethical Standard in carrying out my independent examination.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

  1. Accounting records were not kept in respect of the Foundation as required by section 130 of the 2011 Act; or

  2. The financial statements do not accord with those records; or

  3. The financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Kerry Gallagher

Kerry Gallagher, FCA

The Institute of Chartered Accountants in England and Wales For and on behalf of RSM UK Tax and Accounting Limited Chartered Accountants Davidson House Forbury Square Reading Berkshire RG1 3EU

14/11/22 Dated: .........................

THE MICHAEL AND ILSE KATZ FOUNDATION

UNAUDITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 5 APRIL 2022

Notes
Income from:
Investments
3
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Net income/(expenditure) and net movement in funds before gains on
investments
Net gains on revaluation of investments
10
Net movement in funds
Fund balances at 6 April
Fund balances at 5 April		 2022
£
120,023
9,949
104,400
114,349
5,674
94,825
100,499
3,043,651
3,144,150		 2021
£
117,775
8,826
114,932
123,758
(5,983)
520,238
514,255
2,529,396
3,043,651

The Statement of Financial Activities includes all gains and losses recognised in the year.

All activities in the current and prior year relate to unrestricted funds.

All income and expenditure derive from continuing activities.

THE MICHAEL AND ILSE KATZ FOUNDATION

UNAUDITED BALANCE SHEET

AS AT 5 APRIL 2022

Notes
Fixed assets
Investments
11
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
The funds of the charity:
Unrestricted funds		 2022
£
£
2,990,060
164,567
(10,477)
154,090
3,144,150
3,144,150
3,144,150		 2021
£
£
2,895,235
157,361
(8,945)
148,416
3,043,651
3,043,651
3,043,651		 2021
£
£
2,895,235
157,361
(8,945)
148,416
3,043,651
3,043,651
3,043,651
3,043,651
3,043,651
3,043,651

November 11, 2022 The financial statements were approved by the Trustees on .........................

.............................. Jonathan Azis

Trustee

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Charity information

The Michael and Ilse Katz Foundation is a charitable trust set up in 1971, governed by a Trust Deed dated 12 March 1971. The Settlors were the late Mr Michael Katz OBE and his late wife, Mrs Ilse Katz. The Foundation is registered in England and Wales. The registered office is Westwood Manor, Bradford on Avon, Wiltshire, BA15 2AF.

1.1 Accounting convention

These financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Foundation is a Public Benefit Entity as defined by FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the second edition of the Charities Statement of Recommended Practice issued in October 2019 applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of 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 Foundation has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Trustees have considered the working capital position and the current and expected results of the Foundation. At the period end, the Foundation had total assets less current liabilities of £3,144,150 (2021: £3,043,651), including a strong cash balance and investments balance. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

All funds are unrestricted and held for the general use of the Foundation in accordance with its Deed of Settlement.

1.4 Income

Income is recognised when the Foundation 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.

Income from investments is accounted for on a receivable basis.

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies (Continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure.

Costs of generating funds comprise those costs directly attributable to managing the investment portfolio and raising investment income.

Grants payable are charged in the year when the offer is conveyed to the recipient.

Governance costs comprise the legal and administrative costs of running the charity as a legal entity.

1.6 Fixed asset investments

Quoted fixed asset investments are included in the financial statements at market value. Any movements due to realised gains and losses or unrealised gains and losses on revaluation are reflected in the Statement of Financial Activities.

1.7 Cash and cash equivalents

Cash and cash equivalents comprises of cash included within the charity's investment portfolio which is held to meet short-term cash commitments as they fall due, rather than for investment purposes.

1.8 Financial instruments

The Foundation 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 Foundation's Balance Sheet when the Foundation 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 includes 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, which include trade and other creditors, 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.

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

2 Critical accounting estimates and judgements

In the application of the Foundation’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.

There are no critical judgements or estimates that affect these financial statements.

3 Investment income

Income from listed investments
Deposit interest on investment accounts
Deposit interest on current accounts		 2022
£
120,006
17
-
120,023		 2021
£
117,756
12
7
117,775

4 Raising funds

Investment management fees
Charitable activities
Grant funding of activities (see note 6)
Support costs (see note 7)
 2022
£
9,949
9,949
2022
£
93,000
11,400
104,400		 2021
£
8,826
8,826
2021
£
104,000
10,932
114,932

5 Charitable activities

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

6 Grants payable

Grants to institutions:
Age Concern Enfield
Blind Veterans UK (St Dunstans)
Bournemouth Symphony Orchestra
British Ex-Servicemens' Wheelchair Sports Association (BEWSA)
British Fund for World Jewish Relief
British Limbless Ex-Servicemens' Association
Camp Simcha for Sick Children
CLIC Sargent
Combat Stress - Ex-Services Mental Welfare Society
Community Security Trust (CST)
Deafblind UK
Durrell Wildlife Conservation Trust
Federation Jewish Relief Organisation
Hannah Levy House Trust
Holocaust Educational Trust
Jewish Blind and Disabled Association
Jewish Blind and Physically Handicapped Society
Jewish Care
Motor Neurons Disease Association
Nightingale Hammerson
Norwood Children and Families First - Ravenswood
Ohel Sarah UK
Royal National Institute of Blind People
Save a Child's Heart
SENSE Deaf and Blind Children
Sense - Trust
Shaare Zedek Medical Centre
Shooting Star Children's Hospice
The Worshipful Company of Butchers
UCL Institute of Opthalmology
Yad Vashem UK Foundation		 2022
£
6,000
2,000
6,000
2,000
10,000
2,000
2,000
4,000
4,000
-
5,000
2,000
2,000
-
5,000
-
2,000
6,000
3,000
6,000
6,000
3,000
-
-
-
2,000
2,000
6,000
5,000
-
-
93,000		 2021
£
8,000
2,000
5,000
2,000
-
2,000
-
4,000
2,000
2,000
5,000
2,000
-
5,000
5,000
2,000
-
8,000
-
6,000
6,000
3,000
2,000
2,000
2,000
-
-
7,000
4,000
15,000
3,000
104,000

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

7 Support costs

Support costs consist entirely of governance costs and these are analysed below.

Legal and professional
Independent examiner's fees
Accountancy fees to independent examiner
Analysed between:
Charitable activities		 2022
£
4,320
3,540
3,540
11,400
11,400		 2021
£
4,320
3,360
3,252
10,932
10,932

8 Employees

There were no employees during the current or prior year.

9 Trustees

None of the Trustees received any remuneration from the Foundation during the current or prior year or have incurred expenses on behalf of the Foundation.

10 Net gains on investments

Revaluation of investments
11
Fixed asset investments
Cost or valuation
At 5 April 2021
Valuation changes
At 5 April 2022
Carrying amount
At 5 April 2022
At 5 April 2021		 2022
2021
£
£
94,825
520,238
Listed
investments
£
2,895,235
94,825
2,990,060
2,990,060
2,895,235		 2021
£
520,238
2,990,060
2,990,060
2,895,235

THE MICHAEL AND ILSE KATZ FOUNDATION

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

12 Creditors: amounts falling due within one year

12
Creditors: amounts falling due within one year
Trade creditors
Accruals
13
Financial instruments
Carrying amount of financial assets
Equity instruments measured at fair value		 2022
£
1,080
9,397
10,477
2022
£
2,990,060		 2021
£
-
8,945
8,945
2021
£
2,895,235

14 Related party transactions

O Azis and J Azis, Trustees of The Michael and Ilse Katz Foundation, are members of Parke Partnership LLP.

During the year fees of £4,320 (2021: £4,320) were paid to Parke Partnership LLP in respect of administrative and investment management services provided to the charity. At the year ended 5 April 2022 the amount owed to Parke Partnership LLP was £1,080 (2021: £nil).

Payment of such fees is allowed in accordance with clause 9a of the Deed of Settlement.