Charity Registration No. 263726
THE MICHAEL AND ILSE KATZ FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
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 2023
The Trustees present their report and financial statements for The Michael and Ilse Katz Foundation ("the Foundation") 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 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 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.
No grants were paid to any institutions and organisations during the year (2022: 23 grants totalling £93,000) as detailed in note 6 of the financial statements. Following the recent passing of two Trustees, the current Trustees decided it was necessary to have a period of review to ensure that the charitable objects were being served in the most efficient way possible, hence why no grants were paid during the current year. Going forward, the Trustees plan to give out more funding to a smaller number of charities with a longer term commitment over a period of three to five years.
Financial review
The net income for the year before gains and losses amounted to £108,147 (2022: £5,674).
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 unrestricted reserves of £3,018,499 (2022: £3,144,150).
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.
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THE MICHAEL AND ILSE KATZ FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
Structure, governance and management
The Foundation is an unincorporated charity registered in England and Wales.
The Trustees who served during the year were:
The Lord Nathan Jonathan Azis O Azis (Deceased 15 October 2022)
The Trustees report was approved by the Board of Trustees and signed on its behalf by:
.............................. Jonathan Azis Trustee January 22, 2024 Dated: .........................
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THE MICHAEL AND ILSE KATZ FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 5 APRIL 2023
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:
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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 UK 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 business.
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.
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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 2023, 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:
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Accounting records were not kept in respect of the Foundation as required by section 130 of the 2011 Act; or
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The financial statements do not accord with those records; or
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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
23/01/24 Dated: .........................
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THE MICHAEL AND ILSE KATZ FOUNDATION
UNAUDITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2023
| Notes Income from: Investments 3 Expenditure on: Raising funds 4 Charitable activities 5 Total expenditure Net income and net movement in funds before (losses)/gains on investments Net (losses)/gains on revaluation of investments 10 Net movement in funds Fund balances at 6 April Fund balances at 5 April |
2023 £ 127,037 9,230 9,660 18,890 108,147 (233,798) (125,651) 3,144,150 3,018,499 |
2022 £ 120,023 |
|---|---|---|
| 9,949 104,400 |
||
| 114,349 | ||
| 5,674 94,825 |
||
| 100,499 3,043,651 |
||
| 3,144,150 |
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.
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THE MICHAEL AND ILSE KATZ FOUNDATION
UNAUDITED BALANCE SHEET
AS AT 5 APRIL 2023
| 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 |
2023 £ £ 2,756,262 272,012 (9,775) 262,237 3,018,499 3,018,499 3,018,499 |
2022 £ £ 2,990,060 164,567 (10,477) 154,090 3,144,150 3,144,150 3,144,150 |
2022 £ £ 2,990,060 164,567 (10,477) 154,090 3,144,150 3,144,150 3,144,150 |
|---|---|---|---|
| 3,144,150 | |||
| 3,144,150 | |||
| 3,144,150 |
January 22, 2024 The financial statements were approved by the Trustees on .........................
.............................. Jonathan Azis Trustee
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
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).
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 £3,018,499 (2022: £3,144,150), 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.
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
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 fair 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.
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
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 |
2023 £ 122,862 4,175 127,037 |
2022 £ 120,006 17 |
|---|---|---|
| 120,023 |
4 Raising funds
| Investment management fees | 2023 £ 9,230 9,230 |
2022 £ 9,949 |
|---|---|---|
| 9,949 |
5 Charitable activities
| Grant funding of activities (see note 6) Support costs (see note 7) |
2023 £ - 9,660 9,660 |
2022 £ 93,000 11,400 |
|---|---|---|
| 104,400 |
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
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 Deafblind UK Durrell Wildlife Conservation Trust Federation Jewish Relief Organisation Holocaust Educational Trust Jewish Blind and Physically Handicapped Society Jewish Care Motor Neurons Disease Association Nightingale Hammerson Norwood Children and Families First - Ravenswood Ohel Sarah UK Sense - Trust Shaare Zedek Medical Centre Shooting Star Children's Hospice The Worshipful Company of Butchers |
2023 £ - - - - - - - - - - - - - - - - - - - - - - - - |
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 |
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
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 |
2023 £ 2,160 3,750 3,750 9,660 9,660 |
2022 £ 4,320 3,540 3,540 |
|---|---|---|
| 11,400 | ||
| 11,400 |
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 (losses)/gains on investments
| Revaluation of investments 11 Fixed asset investments |
2023 £ (233,798) |
2022 £ 94,825 |
|---|---|---|
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 6 April 2022 | 2,990,060 |
| Valuation changes | (233,798) |
| At 5 April 2023 | 2,756,262 |
| Carrying amount | |
| At 5 April 2023 | 2,756,262 |
| At 5 April 2022 | 2,990,060 |
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THE MICHAEL AND ILSE KATZ FOUNDATION
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
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 |
2023 £ - 9,775 9,775 2023 £ 2,756,262 |
2022 £ 1,080 9,397 |
| 10,477 | ||
| 2022 £ 2,990,060 |
14 Related party transactions
J Azis, Trustee of the Michael and Illse Katz Foundation, is a member of Parke Partnership LLP.
During the year fees of £2,160 (2022: £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 2023 the amount owed to Parke Partnership LLP was £nil (2022: £1,080).
Payment of such fees is allowed in accordance with clause 9a of the Deed of Settlement.
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