Charity Registration No. 272225
THE ARCHIE SHERMAN CARDIFF FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2022
THE ARCHIE SHERMAN CARDIFF FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees M J Gee A H S Morgenthau R Freedman Charity number 272225 Principal address 274a Kentish Town Road London NW5 2AA Independent examiner Henry Charles FCA Citroen Wells Chartered Accountants Devonshire House London W1W 5DR Bankers Barclays Bank plc Cardiff Queen St Leicester LE87 2BB Solicitors Nicholas and Co 18-22 Wigmore Street London W1U 2RG
THE ARCHIE SHERMAN CARDIFF FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of trustees' responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Statement of financial position | 6 |
| Notes to the financial statements | 7 - 12 |
THE ARCHIE SHERMAN CARDIFF 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 charitable trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The charity's objectives include wide charitable purposes at the discretion of the trustees. There are no restricted or endowment funds. The charity's objectives are to generate income from its investment property portfolio in order to make charitable contributions as the trustees see fit.
The charity owns a portfolio of commercial properties. The charity retains the services of a property manager, Archie Sherman Administration Limited, in order to achieve the best return on its investment property portfolio and hence generation of income to meet its charitable objectives.
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the charity's aims and objectives, in planning future activities and setting the grant making policy for the year.
In accordance with the charity's objectives, donations are made to a wide range of charitable causes which directly benefit people in the field of education and training, overseas aid, healthcare, and the general community.
Achievements and performance
The charity generates income from its investments in order to make charitable contributions to wide charitable purposes at the discretion of the trustees to benefit education and training, overseas aid, healthcare, and the community.
Financial review
The Statement of Financial Activities, set out on page 5 of the financial statements, shows how the charity's incoming resources have been expended during the year ended 5 April 2022.
The charity continues to maintain a fund base from which the income generated is distributed through grant making activities.
The charity's assets are held in order to generate income for charitable donations.
Income
Overall the charity's investment income has decreased by 4.9% to £136,678 (2021: Decreased by 9.8% to £143,729). The decrease is a result of decreases in occupancy rates.
Investment income is made up of £136,678 (2021: £143,724) rental and other property income and interest receivable of £nil (2021: £5).
Charitable contributions
£45,650 (2021: £47,700) was distributed and committed to charitable beneficiaries during the year to benefit education & training, overseas aid and the community.
Unrestricted funds
During the year ended 5 April 2022 the charity generated a surplus for the year of £34,564 (2021: £54,045). At 5 April 2022 the charity was in a strong position with net assets of approximately £2.3m and funds available to meet all obligations.
The charity's unrestricted funds at the year end totalled £2,320,047 (2021: £2,285,483).
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Reserves policy
It is the policy of the charity to distribute up to 100% of net income, or more, provided this does not conflict with the charity's policy to maintain free reserves, as represented by net current assets, at a level which is considered adequate to cover short term requirements and to retain adequate liquid resources to meet current projected payments or to respond to an emergency. At the balance sheet date, the charity had net current assets of £231,635 (2021: £197,071). The Trustees are satisfied that the current level of reserves is appropriate to the charity's circumstances.
Investment policy and performance
The charity follows a policy of maximising the return on investments while ensuring acceptable levels of risk. The trustees consider whether performance has been matched to objectives.
Risk management
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for the future
The charity's future plan is to work in a most efficient and effective way towards achieving its objectives and receiving the best return on its investments.
The charity plans to continue to find suitable and deserving causes to provide grant funding for projects which comply with the charity's objectives.
Structure, governance and management
The charity was established by a charitable trust deed on 16 July 1976.
The policies adopted in furtherance of these objects are normally almost exclusively to benefit education and training, overseas aid, healthcare and the community.
The trustees who served during the year and up to the date of signature of the financial statements were: M J Gee
A H S Morgenthau
R Freedman
The power of appointing a new or additional trustee is vested in the trustees, but the total number of trustees shall not exceed four.
Day to day matters and management of the properties are dealt with by the manager, Archie Sherman Administration Limited.
Trustees are expected to identify their training needs and to take measures to ensure that these needs are met.
On behalf of the trustees
M J Gee
Trustee Dated: 18 January 2023
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THE ARCHIE SHERMAN CARDIFF 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 ARCHIE SHERMAN CARDIFF FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE ARCHIE SHERMAN CARDIFF FOUNDATION
I report to the trustees on my examination of the financial statements of The Archie Sherman Cardiff Foundation (the charity) for the year ended 5 April 2022.
Responsibilities and basis of report
As the trustees of the charity 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 charity’s financial statements carried out under section 145 of the 2011 Act. 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.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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 financial statements 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.
Henry Charles FCA
The Institute of Chartered Accountants in England and Wales (ICAEW) Independent examiner
Devonshire House 1 Devonshire Street London W1W 5DR
Dated: 19 January 2023
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 5 APRIL 2022
| Notes Income from: Investment income 3 Expenditure on: Raising funds Property related costs 4 Charitable activities Community 5 Overseas aid 5 Education & Training 5 Total charitable expenditure Total expenditure Net income for the year/ Net movement in funds Reconciliation of funds: Total fund brought forward at 6 April 2021 Total fund carried forward at 5 April 2022 |
2022 £ 136,678 46,802 32,594 19,689 3,029 55,312 102,114 34,564 2,285,483 2,320,047 |
2021 £ 143,729 |
|---|---|---|
| 35,628 | ||
| - 54,056 - |
||
| 54,056 | ||
| 89,684 | ||
| 54,045 2,231,438 |
||
| 2,285,483 |
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 ARCHIE SHERMAN CARDIFF FOUNDATION
STATEMENT OF FINANCIAL POSITION
AS AT 5 APRIL 2022
| Notes Fixed assets Investment properties 10 Current assets Trade and other receivables 11 Cash at bank and in hand Current liabilities Other payables 12 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
£ 34,100 251,600 285,700 54,065 |
2022 £ 2,088,412 231,635 2,320,047 2,320,047 2,320,047 |
£ 34,113 222,387 256,500 59,429 |
2021 £ 2,088,412 197,071 |
|---|---|---|---|---|
| 2,285,483 | ||||
| 2,285,483 | ||||
| 2,285,483 |
The financial statements were approved by the Trustees on 18 January 2023
M J Gee Trustee
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
The Archie Sherman Cardiff Foundation is a charity registered in England and Wales. The charity's business address is 274a Kentish Town Road, London, NW5 2AA. The nature of the charity's operations and principal activities are set out in the Trustee's Report.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charitable trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The 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.
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 on the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Incoming resources
All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Income receivable under property leases is recognised on a straight line basis over the lease term. Lease incentives are also recognised on a straight-line basis as a reduction in income over the lease term, except for leases which began before the date of transition to FRS 102 for which incentives remain recognised over the period to the first rent review date (in accordance with the transitional exemption offered by FRS 102).
Deferred income represents rent received in advance as at the year end.
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.5 Resources expended
Resources expended are included in the statements of financial activities on an accruals basis.
Costs of generating funds comprise those costs directly attributable to the management of investment properties.
Grants awarded are charged in the year when the offer is conveyed to the recipient, irrespective of the period covered by the grant, such grants being recognised as expenditure.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
1.6 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 as at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
The property portfolio is valued by one of the trustees M J Gee, a director of Archie Sherman Administration Limited which manages the portfolio, who has considerable knowledge and experience of the properties. Rental yields and the climate surrounding the location of the properties are also taken into consideration.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including trade and other payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.9 Foreign exchange
Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in governance costs.
1.10 Grant-making policy and provision for commitments
Where the charity has entered into a legally enforceable contract to make charitable grants in future periods, this expenditure is recognised in the period in which the contract is made. This is also the case where there is a constructive obligation to make such grants.
Expenditure resulting from provisions that arise due to a legal constructive obligation is, therefore, recognised in full in the charity's financial statements as soon as the obligation arises.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows;
Valuation of investment properties
Investment properties are recognised at fair value, with changes in fair value being recognised through profit or loss. The investment properties are stated at the trustees' valuation on an open market basis. There is an inevitable degree of judgement involved and value can only ultimately be reliably tested in the market itself.
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
3 Investment income
| Unrestricted funds 2022 £ Rental income 136,678 Interest receivable - 136,678 Raising funds 2022 £ Property related costs 46,802 46,802 |
Total 2021 £ 143,724 5 |
|---|---|
| 143,729 | |
| 2021 £ 35,628 |
|
| 35,628 |
4 Raising funds
5 Charitable activities
| Community Overseas aid Education & Training 2022 2022 2022 £ £ £ Grant funding of activities (see note 6) 26,900 16,250 2,500 Share of governance costs (see note 7) 5,694 3,439 529 32,594 19,689 3,029 |
Total 2022 Overseas aid 2021 £ £ 45,650 47,700 9,662 6,356 55,312 54,056 |
Total 2022 Overseas aid 2021 £ £ 45,650 47,700 9,662 6,356 55,312 54,056 |
|---|---|---|
| 54,056 |
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
6 Grants payable
| Community £ Grants to institutions: UK Toremet Limited - Jewish Child's Day - The British Friends of the Jaffa Institute - March of the Living (UK) Limited - Yad Vashem UK Foundation 17,500 UK Friends of Freddie Krivine Limited 5,000 Friends of Yad Sarah 4,000 Royal British Legion Industries Ltd 200 Localgiving Foundation 200 26,900 Governance costs Independent examination fees Independent examiners' fees for other services Trustee fees Bank charges Loss on foreign exchange |
Overseas aid Education & Training £ £ - - 16,250 - - - - 2,500 - - - - - - - - - - 16,250 2,500 |
Total £ - 16,250 - 2,500 17,500 5,000 4,000 200 200 45,650 2022 £ 6,615 2,835 - 203 9 9,662 |
2021 £ 18,200 28,500 1,000 - - - - - - |
|---|---|---|---|
| 47,700 | |||
| 2021 £ 6,500 2,818 (3,176) 121 93 |
|||
| 6,356 |
7 Governance costs
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year. No expenses were reimbursed to any trustee (or any persons connected with them) during the year.
The credit of £3,176 in the prior year Trustees' fees related to a previous over-accrual.
9 Employees
There were no employees in the current or prior year.
10 Investment property
| Investment property | |
|---|---|
| 2022 | |
| £ | |
| Fair value | |
| At 6 April 2021 and 5 April 2022 | 2,088,412 |
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THE ARCHIE SHERMAN CARDIFF FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
10 Investment property
(Continued)
M J Gee is a trustee of the charity with considerable knowledge and experience of the properties and his company, Archie Sherman Administration Limited, manages the Trust's portfolio of investment properties. M J Gee considers that the book value of the properties represents their fair value at 5 April 2022.
11 Trade and other receivables
| Trade and other receivables | ||
|---|---|---|
| 2022 | 2021 | |
| Amounts falling due within one year: | £ | £ |
| Other receivables | 34,100 | 34,113 |
No amounts (2021: £1,993) are due after more than one year.
| 12 Other creditors falling due within one year Other payables Accruals and deferred income |
2022 £ 22,765 31,300 54,065 |
2021 £ 22,765 36,664 |
|---|---|---|
| 59,429 |
13 Related party transactions
Included within property related costs are fees of £18,000 (2021: £18,000) payable during the year to Archie Sherman Administration Limited in respect of property management. At the year end £1,519 (2021: £1,910) was owed by Archie Sherman Administration Limited. M J Gee is also a director and the sole shareholder of Archie Sherman Administration Limited.
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