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← The Karenza Foundation

2024-04-05-accounts

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Registered Charity Number 264520

ACCOUNTS FOR THE YEAR ENDED

5TH APRIL 2024

Rathbones Trust Company

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Index

1-4 Trustees' Annual Report
5 Independent Examiner's Report
6 Statement of Financial Activities
7 Balance Sheet
8-14 Notes to the Accounts

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Trustees' Annual Report

The Trustees have pleasure in submitting their Annual Report and Financial Statements for the year ended 5th April 2024.

Objectives and Activities of the Charity

The Karenza Foundation is governed by a Settlement Deed dated 1st August 1972.

In accordance with the governing document, the Trustees hold the funds and income thereof for such exclusively charitable purposes as they see fit. The Trustees meet with the charity's objectives by making grants for the public benefit to charitable bodies or institutions at the Trustees' discretion.

The trustees aim to distribute net income arising each financial year and have the power to apply

the capital of the trust fund at their discretion as they see fit in order to meet with their objectives.

The charitable trustees continue to bear in mind the settlor’s attachment to the area of Cornwall when

considering opportunities to provide funding.

Achievements and Performance

Grant makings:

During the year the Trustees resolved to make a donation which is detailed in Note 7 to the accounts.

The Trustees have complied with s17(5) of Charities Act 2011 and have had due regard to the guidance issued on Public Benefit by the Charity Commission when exercising relevant powers or duties.

Financial Review

Review of the Activities of the Charity:

The Endowment Funds (capital) are held to generate income from which donations are made. Income from investments and interest totalled £45,249 (£42,198 in 2023) and £5,508 (£5,564 in 2023) was spent raising the funds in the form of investment management costs. Total expended on charitable activities was £33,960 (£23,840 in 2023).

Gains / (losses) are realised on the sale and revaluation of investment assets. During the year, net gains arose totalling £87,368 (£120,228 net losses in 2023).

There was a net increase in funds for the year of £93,149 (£107,434 net decease in 2023).

Page 1

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Trustees' Annual Report

The Trustees held total funds as at 5 April 2024 of £1,406,475, of which £81,351 represented Unrestricted Income Funds, held predominantly in investments and cash at the year-end. This compared with total Funds held of £1,313,327 as at 5 April 2023, of which £70,063 represented Unrestricted Income Funds.

Reserves:

General reserves are unrestricted income funds, freely available to spend on furthering the charity's purposes. General reserves are those which remain after the Trustees have set aside amounts required for specific purposes, such as designated funds. Restricted Funds, Expendable Endowment and Permanent Endowment are excluded when Trustees consider the Reserves of the Charity.

It is not the intention of the Trustees to build up income reserves, with all funds being available for spending at the Trustees' discretion. The Trustees consider designating funds if supporting multi-year charitable projects, but all donations continue to be subject to review and approval. The Trustees liaise with the investment manager regularly to ensure they are aware of any forward commitments, which are then taken into account when managing the Charity's investments and transfers made between Expendable Endowment and Unrestricted Income as necessary. Accordingly, the Trustees consider the balance of Unrestricted Income Funds held at the financial year-end to be General Reserves.

Investments:

Most of the Trustees' capital is invested on the stock market. The value of the Trust's portfolio as at 5th April 2024 totalled £1,359,433, an increase from £1,255,056 as at 5th April 2023. The Trustees have reviewed the position and are satisfied with the performance.

Investment Policies:

As there are no specific restrictions of investment powers under the governing deed, the Trustees have full discretion over the investments. The Trustees have delegated Rathbones Investment Management to have full discretionary day to day control of the investments. In accordance with the Trustee Act 2000, as this duty has been delegated, the Trustees are establishing a Policy Statement. Assets have been acquired and disposed of in accordance with the powers available to the Trustees.

Risk Assessment

The Charity Trustees have given consideration to the major risks to which the charity is exposed and are satisfied that systems or procedures have been established in order to manage those risks. After considering the areas of governance, operation, finance, environmental and compliance the Trustees have identified that major negative fluctuations in investment assets could cause a material risk to the Charity's funds. In order to mitigate this risk and in accordance with s15 Trustee Act 2000 a Trustees' Policy Statement shall be adhered to by the Investment Manager, which will then be regularly reviewed against investment performance.

Structure, governance and management

This charitable trust was created by Ernest Charles Uren and its Trustees are governed by a deed

dated 1st August 1972.

Power to appoint new Trustees is vested in the then current Trustees.

Page 2

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Trustees' Annual Report

New Trustees will be selected due to their expertise, what they can bring to the Charity and their relationship with the current Trustees. Procedures have not been adopted for the induction and training of new Trustees. All Trustees ensure that they are aware of their duties and continue to operate within current guidelines by discussing at meeting all issues arising as advised by the Charity Commission and Rathbones Trust Company Limited.

The Trustees meet at least annually to review performance, applications for funding and any other matters arising.

Reference and Administration Details

Registered No: 264520 Principal Office: The Paw House, 3 The Fairways, Lanhydrock, Bodmin, Cornwall, PL30 5BW

Trustees who Edward J Uren served during the Mrs A F Uren year:

Independent Mrs Kerry Roberts, C/o Port of Liverpool Building, Pier Head, Liverpool, L3 1NW Examiner:

Accounts and Tax: Rathbones Trust Co Ltd, Port of Liverpool Building, Pier Head, Liverpool, L3 1NW

Investment Rathbones Investment Management Ltd, 30 Gresham Street, London, EC2V 7QN Management: Bankers: Barclays Bank, Leicester, LE87 2BB

Plans for the future

The Trustees will continue to seek out charities with a particular focus to benefit the community of Cornwall.

The Trustees are satisfied that the charity's assets are available and adequate to fulfil its current objectives which will continue for the foreseeable future.

Page 3

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Trustees' Annual Report

Statement of Trustees' responsibilities for the annual accounts

The Trustees are responsible for preparing the Trustees' Annual Report and Financial Statement 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 its income and application of resources for that year.

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure 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.

Approved by the Board of Trustees and signed on its behalf by:

E J Uren - Chairman

04 February 2025 | 7:57 AM PST

Date

Page 4

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Independent Examiner's Report

Independent examiner's report to the Trustees of the Karenza Foundation (264520)

I report to the Trustees on my examination of the accounts of the above charity ("the Trust") for ended 5th April 2024, which are set out on pages 6 to 14.

Responsibilities of the Trustees and Independent Examiner

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act"). You consider that an audit is not required under s144 of the Act and that an independent examination is needed.

I report in respect of my examination of the charity's accounts carried out under section 145 of the 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 Act. It is my responsibility to state whether particular matters have come to my attention.

Basis of Independent Examiner's Report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair' view. The report is limited to those matters set out in the statement below.

Independent Examiner's statement

I am a member of an approved body subject to the provisions of the Revised Ethical Standard 2019 issued by the Financial Reporting Council (FRC). Rathbones Trust Company has provided bookkeeping services in accordance with the terms of engagement signed by the Trustees and I do not report to the bookkeeper in any respect. I give due consideration to the FRC's Revised Ethical Standard 2019 at all times.

I have completed my examination and confirm that no matters have come to my attention which give me cause to believe that in any material respect:

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 for a proper understanding of the accounts to be reached.

04 February 2025 | 3:58 PM GMT

Kerry Roberts TEP FMAAT MCSI Date C/o Port of Liverpool Building, Pier Head, Liverpool

Page 5

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Statement of Financial Activities

----- Start of picture text -----
Unrestricted Expendable Total Total
Notes Funds Endowment Funds Funds
2024 2024 2024 2023
£ £ £ £
Income and Endowments from:
Investments 4 44,833 0 44,833 42,080
Other income 5 416 0 416 118
Total Income 45,249 0 45,249 42,198
Expenditure on:
Raising funds 6 0 5,508 5,508 5,564
Charitable activities 7 33,960 0 33,960 23,840
Total Expenditure 33,960 5,508 39,468 29,404
Net Income / (Expenditure) 11,289 (5,508) 5,781 12,794
Transfers between funds 15 0 0 0 0
Net gains / losses on investments 10 0 87,368 87,368 (120,228)
Net Movement in Funds 11,289 81,860 93,149 (107,434)
Balance brought forward at 6th April 2023 70,063 1,243,264 1,313,327 1,420,761
Balance carried forward at 5th April 2024 81,351 1,325,124 1,406,475 1,313,327
----- End of picture text -----

The notes on pages 8 to 14 form part of these accounts.

Page 6

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Balance Sheet

Notes
Fixed Assets
Investments at Market Value
10
Current Assets
Debtor
11
Cash at bank and in hand
12
LESS: Current Liabilities
Creditors: amounts falling due
within one year
13
Net Current Assets
Total Net Assets at 5th April 2024
Funds of the Charity:
15
Total Funds at 5th April 2024		 Unrestricted Expendable
Total
Funds Endowment
Funds
2024
2024
2024
£
£
£
49,566
1,309,867
1,359,433
49,566
1,309,867
1,359,433
1,235
0
1,235
39,670
15,257
54,927
40,905
15,257
56,162
9,120
0
9,120
31,785
15,257
47,042
81,351
1,325,124
1,406,475
81,351
1,325,124
1,406,475		 Total
Funds
2023
£
1,255,056
1,255,056
2,036
64,396
66,432
8,160
58,272
1,313,327
1,313,327

Approved by the Board of Trustees and signed on its behalf by:

Edward J Uren

04 February 2025 | 7:57 AM PST Date

The notes on pages 8 to 14 form part of these accounts.

Page 7

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

1 Charity Information

The Karenza Foundation is governed by a Settlement Deed dated 1st August 1972 and registered in England and Wales. The principal address is The Paw House, 3 The Fairways, Lanhydrock, Bodmin Cornwall, PL30 5BW.

2 Accounting Policies

These financial statements have been prepared in accordance with 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 Charities Act 2011 and FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

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

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

The accounts have been prepared on the historical cost convention, modified to include the revaluation of investments at fair value. The principal accounting policies adopted are set out below.

The charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

Going Concern

The Trustees have assessed whether the use of Going Concern is appropriate and have concluded that the charity has adequate resources and reserves to enable it to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity's ability to continue as a going concern and thus the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the financial statements.

Charitable Funds

Unrestricted funds are available for use at the discretion of the charity in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Unrestricted Funds of capital have been classified as Expendable Endowment Funds in these accounts.

The charity holds Endowment Funds which are expendable and primarily for income generation. Monies are invested by the trustees into shareholdings. The Expendable Endowment fund increases or decreases in line with the investment valuation. Transfers from the Endowment fund to Unrestricted fund are made at the Trustees' discretion.

Income

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.

Page 8

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income Tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

All dividend income is recorded net and includes tax deducted only when it is repayable to the Charity.

Expenditure

Expenditure is recognised when there is a legal or constructive obligation for which it is more likely than not that a transfer of economic benefit will be required in settlement and the amount can be reliably measured as at the reporting date. A constructive obligation exists where the charity has communicated the commitment to provide particular goods, services or funding to the recipient by the reporting date and there are no conditions attached to its payment falling due after the reporting date.

Cash grants made are recognised when paid.

Provisions for liabilities must be recognised when either the timing or the amount of future expenditure required to settle the obligation is uncertain. These are distinguished separately on the balance sheet. If a transfer of resources in no longer required, provisions are reversed and charged to the SoFA.

Governance costs

Governance costs comprise all costs involving public accountability of the charity and its compliance with with regulation and good practice.

Investments

Investments held in the fund are included at their market value as follows:

Investments are classified as a fixed asset and only classified as a current asset where the intention of the trustees is to dispose of the asset and not reinvest the proceeds.

Other recognised Gains and Losses

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost and are charged or credited to the Statement Of Financial Activities in the year of disposal.

Page 9

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities resulting from revaluing investments to market value at the Balance Sheet date.

Taxation

The charity is not liable to income or capital gains tax on its charitable activities. Irrecoverable VAT is included in the asset cost or the expense to which it relates.

Cash and cash equivalents

Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes. 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 and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet 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 debtors and cash and bank balances, are initially measured at 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 present value of the future receipts discounted at a market rate of interest. Financial assets classed as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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.

Cancellation of financial liabilities

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

Page 10

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

3 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.

4 Investment income
UK Income
Unit Trust Income
Unit Trust Interest
Fixed Interest
Other Income
Overseas Income
Overseas Interest
5 Other Income
Bank interest
6 Raising funds
Rathbones Investment Management fees		 2024
£
18,465
16,558
2,569
2,142
1,140
2,913
1,045
44,833
2024
£
416
416
2024
£
5,508
5,508		 2023
£
17,479
16,076
1,813
1,233
1,631
2,933
915
42,080
2023
£
118
118
2023
£
5,564
5,564

Page 11

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

7 Charitable Activities
Grant making:
To institutions:
Cornwall Community Foundation
Total Grants
Governance Costs (note 8)
Total Charitable Activities
8 Governance costs
Accountancy and administration fees
Independent Examination fees		 2024
£
30,000
30,000
3,960
33,960
2024
£
3,000
960
3,960		 2023
£
20,000
20,000
3,840
23,840
2023
£
3,000
840
3,840

9 Details of certain expenditure

No amounts were paid to the trustees in remuneration or repayment of out-of-pocket expenses during the year ended 5th April 2024 or 5th April 2023.

10 Investments
Value at
Purchases
Sales
Realised
Unrealised
06/04/2023
at cost
proceeds
Gain/(Loss)
Gain/Loss
Listed:
UK Bonds
121,509
68,357
39,958
(945)
3,241
Overseas
309,182
53,381
59,542
(5,899)
65,765
UK Equities & Unit Trusts
785,358
4,030
9,259
229
29,524
Property Funds
39,007
0
0
0
(4,547)
1,255,056
125,768
108,759
(6,615)
93,983
11 Debtor
2024
£
Investment income receivable
1,235
1,235		 Value at
05/04/2024
152,204
362,887
809,882
34,460
1,359,433
2023
£
2,036
2,036

Page 12

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

12 Cash at bank and in hand
Cash at bank
13 Creditors and accruals
Rathbones Trust Company
Rathbones Trust Company prior years
14 Financial Instruments
Carrying amount of financial assets
Debt instruments receivable within one year
- Debtor
- Cash
Carrying amount of financial liabilities
Payable within one year
- Creditors
Instruments measured at fair value
Investments at value
15 Movements between funds Balance at
06/04/23
Income
£
£
Expendable Endowment
Investments
1,243,264
0
Unrestricted funds:
General funds
70,063
45,249
Total funds
1,313,327
45,249		 2024
2023
£
£
54,927
64,396
54,927
64,396
2024
2023
£
£
3,960
3,840
5,160
4,320
9,120
8,160
Expendable Unrestricted
Total
Total
Endowment
Funds
Funds
Funds
2024
2024
2024
2023
£
£
£
£
0
1,235
1,235
2,036
15,257
39,670
54,927
64,396
15,257
40,905
56,162
66,431
0
9,120
9,120
8,160
1,309,867
49,566
1,359,433
1,255,056
Gains /
Transfer
Balance at
Expenditure
(Losses)
of funds
05/04/24
£
£
£
£
(5,508)
87,368
0
1,325,124
(33,960)
0
0
81,351
(39,468)
87,368
0
1,406,475

Page 13

Docusign Envelope ID: EFAC1A41-937F-40C3-A946-2F12A1EC7DD6

THE KARENZA FOUNDATION

Accounts for the year ended 5th April 2024

Notes to the Accounts

16 Related Party Transactions

Organisations of which the trustees of this charity have an interest in are always properly declared and and acknowledged during determination of applications. If such a situation arises, the trustee with the related party interest does not participate in the decision making process other than to clarify facts.

There were no related party transactions during this or the previous financial year that require disclosure.

During the year ended 5 April 2024, the Trustees had no interest with any charitable organisation as listed in note 7 to the accounts.

17 Comparative Statement of Financial Activities

Income and Endowments from:
Investments
Total Income
Expenditure on:
Raising funds
Charitable activities
Total Expenditure
Net gains / losses on investments
Net Movement in Funds
Balance brought forward at 6th April 2022
Balance carried forward at 5th April 2023		 Expendable Unrestricted
Total
Endowment
Funds
Funds
2023
2023
2023
£
£
£
0
42,198
42,198
0
42,198
42,198
5,564
0
5,564
0
23,840
23,840
5,564
23,840
29,404
(120,228)
0
(120,228)
(125,792)
18,358
(107,434)
1,376,559
44,202
1,420,761
1,250,767
62,560
1,313,327

Page 14