MIHRAN & AZNIV ESSEFIAN CHARITABLE TRUST Financial Statements For The Year Ended 31 March 2024
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Officers and Advisers Governing Document: Trust Charity Registration No: 275074 ErKJtaThY & Wales. Main office: The M71 Jran and AznN Essefian Charilable Trust PO Box 7453 Londcfft WIA 3XF Trustees: Ms R Avartouknan (Chairperson) Ms V Gulbenkian Dr A N Selian Matian Mrs S L Simor Administrator. Ms M Ovanessoff Investment Manager. JM Finn & Co 25 Cpthall Avenue Londc EC2R 7AH Bankers: National Wesbninw Bank plc Cty of Ldon Qffi 1 pnn'S Street Lond EC2R 8BP Independent Examiner. Hovnan Hampartsoumian BA FCA Hovnan & Co Limited Chartered Ac£J)untants 106 Ashur5t Road CockfosteTS Bamet Herts EN4 9LG Page Contents: Trustees. Annual ReFKWt IndyTrJent Examwws ReF Statement Of FinaTrial Pthitses Balance Sheet Aco)urrtirKJ Poli¢ies and Notes 7-11
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Trustees. Annual Report for the year ended 31 March 2024 The Trustees present their annual reFKyt tcxJthr vmh ts financi81 statements for the year ended 31 March 2024. The Trustees )ftfirm that the annual repx)rt and financial statements of the Charty comply with the current statutory requirements. the requirements of the djariS goveming document ancl the proWsnS of the Statement of Re&)mmended Practi (SORP). appii(able to charibes preparing their accounts in aCrnrdan wilh the Finan(aal Repottrng Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019. Objectives The object of ttrE Trust is to promote any one or more charitabk object or (Jiects for the benefft of Membe of the AMlan cMmunity whereveruw shall be ng gerEraEty. In fiJrther8n of the TrS objects the Trustees offer schoL3rship grants to unNersty students of Annenian origin and grants to Organi5aticx arKI institutions to prle SFwfic educalv)nal, ltural and charitable activities for the berfft of the Amlan Communty throughoLrt the world. Publlc Benefft The Trustees have referred to Ihe gUan Cntained in the Chanty Commission's general guidancE on public benefft when reviewing the Tntst's aims and ot1.11¥eS and in planning future acbvthes. The grants made during the year have benefited the publTrc in the fijrther education of Amienian slLtderts studying in the UK and Amienia and in SUPPLYknTrJ othral. edutxlijnal and tharitable athtties in the Armenian communty. Achievements in year (including financial re¥le) During the year the Trustees have grantoj £30.000 (2023: £30,000) 10 196 (2023: 222} students studying at various higher educatior)al establishments in Gyurnri, ranging from £35 to £220 per sludenL £15,000 12023: £15.0(x)) to 226 (2023: 236) students in Vanadzor. rydnging from £40 to £135 per studenl. and £5.800 to 1 student in Yerevan {the same as in 2023). £12,000 was granted in the fomi of scholarships to 2 Armenk3n students in the UK (2023: £20,000 to 4 students in the UK). During their liFetime. Ihe Essefian brother5 made regular donations to the SL Tarkmanchats Schcx)l in Jerusalem and the Surp Pirgic Hospital in Istanbul. Therefcts it is fftting to continue contributing to these institutions for as k)ng as i( is finan(ially wabl8 to do so. However, the lingering impact of political events across the world, have all Ixjntributed to poor eo)rn)mr conditK)ns that have had an adverse impact on the perf(Man of the TrS asset FKlrtfdio. In wew of the above, the Trustees prrxeeded wtth the regular donation to Ihe St. Tarkmanchatz SchLK)I in Jerusalem this year decided to waive toth the regular donation to the SUTP Pirgic Hosprtal in Istanbul arKI to the Hayastan AtkAmienian Fund GB. A dOnalic of £1.000 was made to Ihe Armenian musi1 Assembty. which has oth¥ dorm. Since the beginning of 2014. the Trust's inojme C(sIstS of dividends and capital growth of the investment F(Jrttolio, with rnin ccrtibuti)ns from interest on bank deFS1. Structure, Governance and Managemènt The Charity is govemed by a Tnjst in a setllemerrt derAared by the late brothers, Hawp Mihrdn Essefian and Yervant Mihran E$sern on 21st December 1977. The Trust is an unincorporated assocÈation administered by four Trustees and ce administrator as named on officers and adviso page. Al the Trustees serva a volunlary unpaid basis and [Ve no expenses. No staff are currently employed by the Trust but the self*rnployed Admink%lrat(Y is paid.
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Trustees. Annual Report for the year ended 31 March 2024 Investnt Policy The Trustees have wide erS to invest the mCleS of the Charity as they think fit. The current portfolio is primarity invested in Maic equities viilh an even balan belween UK-focused aThJ global securilies and an ethical element vthere F4)ssible. The srities are prof10ndl1Y manaFd by JM Finn & Co. Resenrns Policy In terns of Charity Law, the Trust Fund is an expendab endowment. The tTUStees therefore have a duty to spend the incrme reserves generaled from the Trust Fund within a reasonable time of receipL However, initial schjlarships are awarded on the basis trt a thdent will te supported lor each year of their degree course. subject to rtain ndit)nS being meL TherefCe, in any particular year, the trustees wll aim to maintain sufficient funds in the reserves to cl)mperate for a potential drop in income in the years subwuent to each initial award. The Trust Fund ojnsists soldy of the orwJinal cal capital gawisllosses. Invesknent in(x)me is held in the Accumulated Fund. The trustees aim to keep spending in line th net income. although a Trust dedaration allows for up to 5% of the c2Pital of the invesbments to be used to meet the Charitys objectives in any one year. Furthennore. the Trustees have the power to spend the capital of Ihe fiJTh on charitable purposes rflhey so determine. Risk Review The Trustees have identifd and assessed Ihe 40r risks to which the Charity is exposed, in particular tFK)se related to the operation arKI finarKes of the Charity. Try are satsfied that the Charity's exposure to these risks is at an acceptsble kveL Wrth the Sngering impacts of war in Europe, Brexit and covid, the markets renined volatile during the period. A of C2k was realised when selling securities1£23k loss in 2023) but the overall value of the pthlio increased o£45k, or 3V., during the pericxj, hawng fallen 12% overthe wior year. In line the Trust. QJTrent stregic aim, the Net Movement in FurK15 was much less negattve during this peiiod {down £27k) than during Ihe prk)r peri(KJ (down £208k}. The excessive fall in asset value during the pn'or year had been largety dtse to the Liz Tnkss Administration's mini budget of 23.09.22 and the later (L)Ilapse of SirKn Valley Bank. Credit Suisse etc. The improvement in Net Movement of Funds was thef0 eXtrerne welcome. even though Tt is still a net decrease. Grant ¢(xnmitments during the peric#J had been (xrt bad( wherever possible. The income reserves (built up over the Tnjsys eaty years) were entirety depleted, requiring a transfer of £43k from the TnJst Fund to the Acojmulated Fund. This transfer wdl w4thin the '5 % of the capital of the investments, (£1.52m as al 31.03.24) pemiitted by the Trust Deed. The Tnjstees will aim to build up and maintain a small postbve income reSee in the medium b long tem), but they recognise that current market CcdIOnS prevent them from achieving this g)al in the short temi. They will continue to focus ther grant-makiTrJ on students in J¥Thenia. lIe cuiting bad( grdnts to Sdents in the UK. Going Concern The Trustees have a reasonable expertaknon that the charity has *uate resour to Continue in operational existen for the fweeabie fulure. For this reason they continue to adopt the going cOnM basis in prepariThJ the ffinan¢ial statements. Future Plans The Trust intends to continue its (Entra] of distritxrting all income received, to eligible beneficiaries in the fomi of grants in aXOrdan wrfth the Tnjst Deed.
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Trustees. Annual Report for the year ended 31 March 2024 Connected Charities The Tnjstees CCsIder Benltan Tnjst (reg. No. 277253) as a conne(aed Charity in that it shares the same Tnjstees. self-employed adminithr and Maui Offi. Responsibilities of Trustees The Trustees are restxmsible f{ preparing Ihe Tnjstees. Pmual RetNJrt and the financial statements in acIxYdan with appaicabk law and United FQngdcxn Acixwnling Standards (United lfjngdom Generally Accepted A¢untIng Pra1). The law appli(able to chaTittes in EnglaTrJ & Wales requtres the Trustees to prepare financBI statements fc¥ each financial year. Under that law the Trustees have elected to prepare the financial st*ements in accordan wilh Untted Kingdll Generally Accept&J Ac£x)unting Practi (United fjngdom Accounting Slandards and applicate law). und charity law the Trustees must not approve the financial statements unless they are satisfied that trw give a true and fair vbew of the state of affairs ofthe Chanty and of i& incoming resour and application of resour of the Charity for that period. In preparing the financial statements the Trustees are requir1 to: ' select suitable aixounling p(Aiues and then app them (xrnsistenty. observe the methods and princieS in the Charittes SORP; ' make judgemen15 and accounting estimates that are reasonable and prudentr, . state whether appli(2ble a(xy)untiro starKlarts have been folknved. sutyect to any material departures disclosed and explained in the financial statements: and ' prepare the finanual $ements on the goiro conrn basi8 UTrs it is InappSPriate to presume that thè Chariiy will continue n operation. The Trustees are responsible for keepirKJ ad&]uaie accounting re(S that are sufficient to and explain the Chariws transactions and disdose wtth reasonable accuraGy at any time the financi81 positi¢)n of the Charity and enatre them to ensure that trje finarrial statements o)mply wtth the chareS Act 2011. the Charity {Ac(xnts arKI Repts) Regulations and the provision ofthe trust deed. They are also responsible for safeguarding the"8&sets (rf the Charity arKI hen for taknng reasonable steps for the prevention and detedion of fraud and otrEr irregularilies. Approved by the Trustees on 24tkA st Zc>2W and signed on b8haff ofthe Board Ms R A Vartoukian Trustee- Chairperson
MIHRAN & AZNN ESSEFIAN CHARrrABLE TRUST Independent examinerfs report to the trustees of Mihran & Azniv Essefian Charitable Trust I reput on the accounts of the Trust the year er1 31 Marth 2024, which are set oul on pages 5 to 11. Respective responsibilities oltrustees and examiner The charitys trustees are r&8WlSitAe for ts preparati ofts a(xx)unts. The dwritys trustees consKler that an 8udrt is not required fof this year under secjion 144{21 of Charibes 2011 fthe Charitbes Acfl and that an independent examination 15 need&J. 11 15 my responsiknlty to: examine the accwnts under s&tion 145 ofthe chareS ACL to fcAlow the procedures la down in the general Directhjns &¥ven by Charity commiss (under sectif 14515Xb) ofthe cth8res Aci and to statewhether part)Jlar matt$ have ¢yxne to my atten1K. Basls of Independènt Èxaminerfs report My examination was carried out in aoly)rdan with general Directions gNen by the Charity COMMhIO. An examination includes a rewew of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes conshleration of any unusual rtems or disclosures in Ihe acunts. and seeking explanations from the trustees conceming any suth matters. The pr(edureS undertakan do not provide 811 the eviden that would be required in an audit. and consequenuy no opinion is given as to whether the accounis present a 'true and fairf wew and the is limited to those matters set out in the statement below. Independent examinefs statemo In connection with my examination. no material matters have come to my attention which gNes me cause to belseve that in any material respect the a¢nting rerdS were rb)t kept in a¢c(Ndance wilh section 130 of the Charitles Acl: or thè accounts did not accord wrth the attounting records.. or the accounts did not cornkY wilh the apiCable requirements 0)nrnIng the fomi and content of accounls set in the chariti.es (Accounts and Reports) RegJlalions 2008 other than any requirement that the ac(t>unts gtve a ITue and fairf view whith is not a matter nSIdered as parl of an independent examinabon. I have no concems and have come across no other matter5 in connection with the examination to which att8ntion s)Uld be drawn in this rekxjrt in order to enable a proper underslanding of the aUnts to be reached. Hampartso mian BA. FCA Hovnan & Co LimiÈed Chartered Ac¢ountsnts 106 Ashurst Road, Coelrfostèrs, Barne( Herts. EN4 9LG - 944r£ 202Lk
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST
Statement of Financial Activities for the year ended 31 March 2024
Accumulated
Fund
2024
TTUSt
Fund
2024
Total A¢xumulated
Funds
Fund
2024
2023
Trust
Fund
2023
Total
Funds
2023
Note
Income and endowments
Investment income
Oiher
42.758
42.758
44,451
44,451
Total income
42,758
42,758
44,451
Expendlture on:
Cost of raising funds
Charitable activiknes
7.593
7,593
Total expenditure
7.1%7
91.932
101,799
101,799
Net
Incomel{expenditure)
for the yoar before
Gainslllosses)
{42.10n
17,06n (49,174)
(57.348)
(57.348)
Net gainl(losses) on
Investments
Realised gaIng{lo$) r
investments
Unrealised gainsl(losses)
on investsnents
(22.098) (22.098)
{22.942) (22.942)
44,720
44.720
{127.335) (127,335)
Net
incomel
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Balance sheet as at 31 March 2024 2024 2023 Fixed assets Investments 1.492.825 1.447.610 1.492.825 1,447,610 Current assets Debtors Cash at bank 1,601 4.857 3.557 71,713 75,270 Liabili*es.' Amounts falliry due within one year 5.117 2,160 Net current assets 1.341 73,110 Total assets less current liabllities 1fv94,167 1,520,719 Repr&sented by. Trust Fund 10. 11 1,W34,167 1,520,719 Accumulated FurMI 10. 11 1.494167 1.520.719 App1ved autr)rised for issue by the TTUStee5 on 202¥ and signed on its behalf. Ms R A Vartoukian Trustee- Chalrperson The notes on pages 7 to 11 form part of Ihese financial statements.
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Notes to the financial statements for the year ended 31 March 2024 ACCOUKnNG POUCIES (al A¢UntIng ¢onvenlion The finan(ial staterrts are prepared in arxxKdaThE Y1h the statem of Re(x)mmended Practice "Acwunting and Reporting by Chartbes- preparing their acccKJnts in accordan with the Financial ReFKting Standard applicable in the UK arKI Republic of Ireland (FRS 102) issued on 16 JUW 2014 and Finanoa] ReF(Srting Standard applicable in the United Kingdom and Republic of Irdand {FRS 1021 and Charibes Act 2011 as amended by the Chaiities Act 2022. Exemption has been taken frcm preparing a (2sh Ik)w statement under'sectiim 7 Statement of Cash Flows. as pemiitted by FRS 102 on the grounds that the Trust qualifies as a small entty. The aUnts have been prepared under the historical cost o)nvention. {b) Donations. le9aaes and sirnilar irKoming re50ur¢es Donations, legacies and similar incomiro resour are reJn$ed On trte ch8rity has entitlement to the inCXxr, there is sufficient rtaInty of rlpl arKI so it is probable that tF income will be recewed. and the rnetary value of Irne measured reliabty. (c Investment inawne Income from investments is induded in the ststent of finan(aal activ(tEs in the year in which it is rece[Vab. (d) Cost of raising funds The CO of generating funts o)nsists of irwestrrnI management and rtain legal fees charged on an accruals basis induding VAT (e) Charitable activities The exrEndilure on charitable actsvitjes indude5 grants mJe. g0Veman costs and support costs. Included within this category are costs asated audiL arKI costs of complying (fj Grants Applio%1ions grants in Vanadzor and Gyumri are ojnsidered by local administrators working on behalf of the Tnjstees. They are ac(n on an a(ThiS basis where the third paty has a reasonable expedation that they will receive the grant Where funds allow, applications for grants in the UK will be consider&Y by the Trustees from university students of Armenian origin. as well as Armenian educall(x, (x]Ural and Sal organisations. Priority is gNen by the Trustees to urwjgj slud. (g) Fixed assets Investments are indud8J at market value at the baL9nce sheet date. Any gain or loss on revaluation is taken to the Statement of Financial A(*vTbes. (h) Funds unrestrict fijnds are thjse general funds rved and ublised in furtheran of the objects of the charity. Funds where the captial is held to generate ino)me for charttable purposes are accounted k)r as exFendaiJe endovfftt fijnds (TTUSI Fund). The temis of the endowment allow the (spita of the fijnd to te spent rf the tnjstees so determe.
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Notes to the financial statements for the year ended 31 March 2024 Taxation policy The charity is a lstej charity aThJ is exempt from income. (xKwraiion taK and capital gains tax there the inc(me and gains are used for charItae purpc6e& Cost of raisirry funds Accumulated Fund 2024 Trust Total Accumulated Fund Funds Fund 2024 2024 2023 Trust Total Fund Funds 2023 2023 Investment Manaent costs 7.L%7 7.(7 7.593 7,593 7.C67 7.067 7.593 7,593 Investment managent ¢osts relaling to the en(&m fvnd are tharged to the Trust Fund rather than the AcMULated Fund from thks yew omvarts. Grants 2024 2023 University scholarships UK students12024: 2 students. 2023.. 4 sdents) Yerevan, Arrnenia12024: 1 studenL 2023: 1 student) Gyumri, AMnIal2024. 196 students: 2023". 260 students) Vanadzor. Amienia12024: 226 studerrts; 2023: 236 students} 12,(KKJ 5,800 20,IJJ) 30,(M)O 70,800 Olher grants Hayastsn Al AJmenran Fund SUTP Pirgich Armenian Hospital. Isl8nbul TaTkmanchats Sd*)ol. Annenian Patriarchate of J$alern Amienian Musi(zl Assembty, Yerevan 2.000 500 2,500 3.000 Totsl Grants 65,800 73,300 Expendlture on tharitable activitles Accumulated Fund 2024 Trust Total Accumulated Fund Funds Fund 2024 2024 2023 Trust T¢)tal Fund Funds 2023 2023 Grants (Note 3) Admin and accountancy Bank charges Operattonal fees, Amenia Independent Examiner Legal Fees Professional Insurance Office expense 65,8Th) 11,550 174 73,31KJ 11,550 169 3,IKJO 2,180 1.512 1,940 555 n,300 11,550 169 3,000 2,180 1,512 1,940 555 11.550 174 1,571 1,5T1 84.865 84.865 94.206 94.206
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Notes to the financial statements for the year ended 31 March 2024 Fixed assets investments (Contd.) 2024 2023 Quoted investmont Market value at 1 April 2023 Addtbons Disposals at opening market value Net unrealised gain in the year 1.447,610 305,230 1304,735) 44.720 1,693.069 40,132 1158.2561 1127,335) Market value at 31 March 2024 1A92.825 1,447,610 Historical ¢ost ai 31 March 2024 1.325,204 1,283,466 Investments at market value UK Overs&qs 2024 2024 Total 2024 UK Overseas 2023 2023 2023 UK Gllts Bond Funds Inveslment Funds Infrastructure Propety 155.3FA) 139.184 468.710 28.879 33.092 155.360 139.184 607.225 1.075.935 60,375 89,254 33,092 139,244 819,463 80,347 54.747 139.244 204,817 1.024,280 148,992 229.339 54,747 825,225 667.8 1.492.825 1,093,801 353.809 1.447,610 2024 Material Investmer Man UK ICVC GLG Undervabjed Assets Prof D I IFSL Evenkyje Inv Funds ICVC Ino)me C Inc Vanguard Funts plc FTSE tknloped Eurp exUK UCITS EfF Inc Vanguard Funds plc SE All Workl ETF Inc Nav Fundsmsth Equty Fund Equty I Inc Nav 153,314 146,975 142,004 100,465 131.649 2024 2023 Investment Income UK income Overseas ino)me UK Property Income 32,602 29,461 12,429 2,561 647 42,758 44,451
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Notes to the financial statements for the year ended 31 March 2024 Funds Transfers Having c£JnsKJewl the obligations of the TNst, the Trustees exercised thetr power to convert £42,107 {2023: £5,078) from the Fund to Accumulated Fund to 4)ent on the furtherance of the chanty's wrposes. Debtor¥ 2024 2023 PrepayTnents and wued rrKome 1,601 3,557 Liabililies 2024 2023 Amounts falling due within one year. Accruals 5,117 2,160 Employees 2024 2023 The average monthty nurnt i)f employees duriTr3 the year was: 10. Analysis of Charitable Funds Balance at 30.06.23 Share of Net Income Balance at 29.06.24 Grants Galnsl Paid Transfers Losses Funds al Expendable Endowment bl Unrestricted Fund 1.520.719 (7.067) (42,1071 22,622 1.494.167 23.693 (65,800) 42,107 TOTAL 1,520.719 16.626 (65,800) 22.622 1.494.167 a) The expendable endowment fund vras establish8J by the tequest OF the late Essefian family to form the TnJst Fund. The teThs of the endowment allow the caprf(al of the fund to be spent rf the trustees so determine. bl The unrestricted funds are avali able to be spentfor any purF¥)ses ofthe d)arity. 10
MIHRAN & AZNIV ESSEFIAN CHARrrABLE TRUST Notes to the financial statements for the year ended 31 March 2024 11. Analysis of funds by assets and liabilities Accumulated Fund 2024 Trust Fund 2024 Tolal Accumulated Funds Fund 2024 2023 Trust Fund 2023 Total Funds 2023 1.493.284 1.49J.284 {5.11n (5,117) 1,522.879 1.520,879 (2.1601 12.160) Liabilities 1,494167 1A94.167 1.520.719 1.520,719 12. Transactions with Trustees and connected persons The Trustees seNe a volurttary basis and re remuneration or expenses. No trustee expenses We in1rred by the charity. The day4cpday running Oft Tnjst is contracted to a self*mploy administrator who is paKJ. The thartty does not have any employees. The Trustees consider The Benlian Trust Ireg. No. 2T1253) as a connected Chariiy in that it shares the same Trust, selF-empk)yed administrator and Main Offi¢e. There were no transacti¢$ with The Benlian Trust during the perK#J. 11