Charity Number 278078
THE JOSEPH LEVY ENDOWMENT TRUST ANNUAL REPORT AND ACCOUNTS
31 MARCH 2022
THE JOSEPH LEVY ENDOWMENT TRUST
| Contents | Pages |
|---|---|
| Reports | |
| Reference and administrative information | 3 |
| Trustees’ report | 4 - 8 |
| Statement of Trustees’ Responsibilities | 9 |
| Independent Examiner’s report | 10 |
| Accounts | |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Cash Flow Statement | 13 |
| Principal accounting policies | 14 - 16 |
| Notes to the accounts | 17 - 19 |
THE JOSEPH LEVY ENDOWMENT TRUST REFERENCE AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 MARCH 2022
TRUSTEES
Stephen David Moss, CBE Morenike Ajayi (elected 26 April 2021), MBE Roger Merton, MBE David Miller Keith Ward (resigned 26 April 2021)
PRINCIPAL OFFICE
47-49 Pitfield Street London N1 6DA
CHARITY REGISTRATION NUMBER
278078
INDEPENDENT EXAMINER
Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW
BANKERS
National Westminster Bank plc Docklands South Quay Branch 54 Marsh Wall West India Quay London E14 6LJ
INVESTMENT MANAGERS
Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU
SOLICITORS
Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE
Page | 3
THE JOSEPH LEVY ENDOWMENT TRUST TRUSTEES’ REPORT
YEAR ENDED 31 MARCH 2022
The Trustees present their statutory report with the accounts of The Joseph Levy Endowment Trust (“the Trust”) for the year ended 31 March 2022. The Trust is a registered charity with an address at 49 Pitfield Street, London, N1 6DA.
The accounts have been prepared in accordance with the accounting policies set out on pages 1416 therein and comply with the charity’s trust deed, applicable laws and the requirements of Statement of Recommended Practice on “Accounting and Reporting by Charities” (Charities SORP FRS 102). There have been no changes in the policies adopted by the charity during the year.
Governance, structure and management
Constitution
The Joseph Levy Endowment Trust (formerly The Federation Trust) is governed by a trust dated 8 May 1979 as amended by the Federation Trust Deed dated 10 January 1996 and the Deed of Appointment dated 24 November 2009. It is registered as a charity, Registration No. 278078.
Objectives and activities
The Trust’s main object is to promote and support the instruction of young people of all classes in the principles of discipline, loyalty and good citizenship in such ways that the Trustees think fit and in particular by the furtherance of the charitable purposes of the Federation of London Youth Clubs.
Organisation
The Trust has no staff. All of the decision-making and management of the Trust is carried out by the Trustees who meet at least once per year, and more frequently when they consider it necessary. The day-to-day administration of the Trust is carried out by London Youth staff.
Trustees
All Trustees are elected for an unrestricted term, except Roger Merton MBE, independent Trustee, who was appointed for a second three-year term which will conclude in July 2024, when he will be eligible for re-election. The power of appointment of new Trustees vests in London Youth. The following Trustees were in office during the year:
Stephen David Moss, CBE Morenike Ajayi, MBE (elected 26 April 2021) Roger Merton, MBE (re-elected 28 July 2021) David Miller Keith Ward (resigned 26 April 2021)
The Trustees confirm that they have referred to the guidance in the Charity Commission’s general advice on public benefit when reviewing the Trust’s aims and objectives.
In 2021, the Board also welcomed James Jason as the Levy Family Representative to the Trust.
Grant making policy
The Trust’s policy is to make grants to organisations working with young people in London with similar objects to that of the Trust.
Investment policy
There are no restrictions on the Trust’s power to invest. The Trustees’ strategy is to establish a firm capital base to maximise the capital growth and income from its investments so that the Trust can make enduring contributions through its grants to organisations with similar objectives.
Page | 4
THE JOSEPH LEVY ENDOWMENT TRUST TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2022
The investment approach had been on a Total Return basis since January 2019. However, in recognition that declining market performance during the period of the pandemic required a drawdown of capital in order to maintain the 4% Total Return requirement agreed with its investment managers, the Trust resolved in July 2021 to revert to the investment method whereby the only dividend to be received will be the actual dividend generated by the portfolio. This was executed in October 2021.
The total amount of drawdown from capital for the period to 31 March 2022 was £25,038 (2021: £20,336) which amount is now effectively ‘ringfenced’ within the Trust’s Cash at Bank figure of £101,993 as at 31 March 2022 (2021: £34,007) and will require the permission of the Levy family before it can be expended.
Achievements and performance
The charity relies on income from investments, together with investment gains, to fund its grantmaking activities in year.
Although investment income in 2021-22 achieved almost 97% of 2020-21 levels at £48,668 (2021: £50,269), gains on investments were less than 14% of prior year at £40,480 (2021: £293,218).
As a result, the Board decided to temporarily suspend its grant-making activities, with £nil awards (2021: £30,000) being made to The Federation of London Youth Clubs (T/A “London Youth”) in year. However, the Board made a commitment in July 2021 to release capital funding of up to £560k to support the installation of a biomass boiler at London Youth’s outdoor centre at Woodrow High House; reflecting the arrangement extended to London Youth in 2015 in respect of a similar project at its other outdoor centre at Hindleap Warren.
Future Plans
The Trust’s future plans are to continue to promote and support the wellbeing and achievement of young Londoners in such ways that the Trustees think fit and, in particular, by the furtherance of the charitable purposes of London Youth. The Board will continue to monitor the performance of its investment portfolio, the value of which stood at £1,671,436 as at 31 March 2022 (2021: £1,635,658) and will continue to achieve its charitable objectives by reinstating its grant-making activities in 202223. The intended draw-down of capital funds committed to London Youth was not initiated in the financial year ending 2021-22 as anticipated due to supply chain issues, and this activity is anticipated to commence in 2022-23.
Key management personnel remuneration
One of the Trustees, Keith Ward, stepped down from his role as Treasurer of the Trust on 26 April 2021 and from his role as Treasurer of London Youth, having served the three consecutive terms of office comprising nine years in total and has been replaced by Morenike Ajayi, MBE. Roger Merton, MBE, having served three years of a three-year term, was re-elected for a further year on 28 July 2021.
Financial review
The Trust derives its income in the form of dividend income from its investment portfolio and interest received. Income for the period to 31 March 2022 totalled £48,668 (2021: £50,269). Having recovered investment losses incurred in the period to 31 March 2020 of £120,767k as a result of net gains of £293,218 in the period to 31 March 2021, the Trust’s share portfolio saw only modest gains of £40,480 (2021: £293,218) in the financial year ending 31 March 2022. Similarly, investment income has continued to decline; down from £76,753 in the year ended 31 March 2020 to £50,269 in the year ended 31 March 2021, with a further 3% reduction to £48,668 for the year ended 31 March 2022.
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THE JOSEPH LEVY ENDOWMENT TRUST TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2022
As a result of this market volatility, the Board resolved to temporarily suspend its grant-giving activities for the year under review.
The commitment in July 2021 to release capital funding of up to £560k to support the installation of a biomass boiler at London Youth’s outdoor centre at Woodrow High House was not initiated in the financial year ending 2021-22 as anticipated due to supply chain issues and this activity is anticipated to commence in 2022-23.
Total charitable expenditure in the year to 31 March 2022 totalled £2,310, comprising Governance Costs only (2021: £4,190); £nil grants were awarded to London Youth in year (2021: £30,000).
The value of the Trust’s investment portfolio held as at 31 March 2022 was £1,671,436 (2021: £1,635,658).
Reserves policy
Total funds as at 31 March 2022 amounted to £1,771,976 (2021: £1,685,138).
The fund held as listed investments within the expendable endowment fund ensures the Trust has sufficient resources to carry on making discretionary grants as the Trustees think fit, with due regard to the level of investment income available to fund such grants. Where there is insufficient income and interest to fund such grants, the Trustees may withhold grant payments and/or seek permission of the Levy family representative to draw down a portion of the expendable endowment.
At 31 March 2022, the expendable endowment had total funds of £1,696,474 (2021: £1,655,994). General funds held were £75,502 (2021: £29,144). Of the General fund held, £25,038 (2021: £20,336) represents the cumulative amount withdrawn from the investment portfolio during the financial year and, as such, requires permission from the Levy family to be spent – see Note 2 .
There being no operational costs to the charity other than Governance costs, which were £2,310 in 2022 (2021: £4,190), the Trustees consider that a Reserve figure of £5,000 (2021: £4,500) is adequate to ensure that the governance duties of the Trust are appropriately discharged.
The Trustees consider therefore that the balance of the expendable General fund[1] at £50,464 (2021: £8,808), which exclude accumulated withdrawals from the investment portfolio - being £25,038 as at 31 March 2022 (2021: £20,336) - is sufficient to cover the Reserves requirement.
Grant payments are varied by the Trust in accordance with income earned on investments. Excluding grant payments, the level of the expendable General Fund reserve is equivalent to 10 years’ expenditure which the Trustees believe to be more than sufficient to cover the Reserves Policy requirement.
Additional funds totalling £25,038 (2021: £20,336) may be available to expend from the Endowment Fund, subject to the agreement of the Levy family.
The Trust will seek to reduce the number of years’ Reserves cover by recommencing its grantmaking activities in 2022-23.
1 The value of the expendable fund at the disposal of the Trust; excluding those funds which relate to investment capital disposals which require the permission of the Levy family to be spent down.
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THE JOSEPH LEVY ENDOWMENT TRUST TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2022
Risk management
The Trustees have always received a regular flow of information about both the finances and operations of the Trust. The Trustees have assessed the major risks to which the Trust is exposed through their risk management policy. These are:
- Investment risk – the Trust’s assets are comprised of investments, which are used to generate its income. An investment policy is in place to mitigate risks associated with management of these assets and the performance of the investments, which are professionally managed, is regularly reviewed by the Trustees.
In light of unprecedented events arising from the Covid-19 pandemic and subsequent market effects, the Trustees will continue to work with its investment managers to manage and mitigate, where possible, any further negative impact of this ongoing crisis on the performance of the investment fund.
The Trust can also mitigate the risk of income variation by varying or ceasing its grant payment programme, which constitutes its principal expenditure, in order to conserve funds.
On this basis, the Board took the decision in 2021-22, in light of other capital commitments made to London Youth, to temporarily suspend its grant-making activities to build up sufficient Reserves during this period of volatile market performance, as a result of which £nil was donated to London Youth for the year ended 31 March 2022 (2021: £30,000).
Further, in recognition that declining market performance during this extended period has necessitated the cumulative drawdown of capital of £25,038 to 31 March 2022 (2021: £20,336) in order to maintain the 4% Total Return requirement agreed with its investment managers, the Trust resolved to revert to the investment method whereby the only dividend to be received will be the actual dividend generated by the portfolio.
These revisions were finalised with the investment managers in October 2021.
-
Financial risk – the risk of financial mismanagement or fraud – the Trust has very few financial transactions, primarily receipt of income from investment managers, donations, bank charges and governance costs. Accountancy services are carried out on behalf of the Trustees by qualified staff employed by London Youth; these staff are employed under that organisation’s recruitment practices, which are understood to be thorough. The financial information for the Trust is held separately from that of London Youth.
-
Conflict of interest – the Trust works closely with London Youth in whose favour income from the Trust is paid. Three of the Trustees are the Chair, Deputy Chair and Treasurer of London Youth, which could create a conflict of interest situation, mitigated by the appointment of an independent Trustee.
A conflict of interest policy is in place to manage any risk of conflict.
- Child protection risk – the Trust has a child protection policy in place, and this risk is mitigated by the fact it is a grant making charity and does not work directly with children and young people.
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THE JOSEPH LEVY ENDOWMENT TRUST TRUSTEES’ REPORT
YEAR ENDED 31 MARCH 2022
Going concern
The Trustees have assessed the ability of the Trust to continue as a going concern. Informing this conclusion, a period of at least 12 months from the date of signing the financial statements has been considered. The Trust has been in a position to withstand the immediate impact of the COVID-19 pandemic and will continue to manage its finances so as to limit any further impact of the pandemic on its operations.
The Trust holds a permanent endowment fund on which it received investment income to fund grants. A key area of uncertainty relates to the current market turmoil on the valuation of investments and returns. However, this can be accommodated within the reserves. Also, there is flexibility in the level of grants approved.
Despite the healthy opening reserves position of £1,685,138 as at 1 April 2021 (2020: £1,375,841), of which less than 2% or £29,144 (2020: £13,065) related to General Funds, only £8,808 (2020: £5,502) was completely at the disposal of the Trust.
The Trustees therefore took a cautious approach towards discretionary spend in 2021-22 by temporarily suspending its grant-making activities to London Youth and replacing that with a commitment to support a capital project up to the value of £560k.
As at year end 31 March 2022, the balance of the expendable General fund[2] was £50,464 (2021: £8,808), which exclude amounts withdrawn from the investment portfolio - being £25,038 (2021: £20,336) - is sufficient to cover the Reserves requirement. Further, these additional funds may be available to expend from General Fund, subject to the agreement of the Levy family.
The general fund ratio (excluding drawdown of investments) to average annual expenditure (governance costs) of 10:1 is deemed sufficient to cover operating costs for 2022-23.
Having conducted this review of the Trust’s reserves position, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2 The value of the expendable fund at the disposal of the Trust; excluding those funds which relate to investment capital disposals which require the permission of the Levy family to be spent down.
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THE JOSEPH LEVY ENDOWMENT TRUST STATEMENT OF TRUSTEES’ RESPONSIBILITIES YEAR ENDED 31 MARCH 2022
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Trustees’ report and accounts 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 accounts 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 period. In preparing these accounts, 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 Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities’ SORP FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 that the accounts 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.
Signed on behalf of the Trustees:
Stephen Moss, CBE Chair
Approved by the Trustees on the 28 November 2022
Page | 9
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE JOSEPH LEVY ENDOWMENT TRUST
I report to the trustees on my examination of the accounts of The Joseph Levy Endowment Trust for the year ended 31 March 2022 which are set out on pages 11-13.
This report is made solely to the charity’s trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity, the charity’s members as a body and the charity’s trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts 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 Act.
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 cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts 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 accounts to be reached.
Julia Poulter Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Date: 30 November 2022
Page | 10
THE JOSEPH LEVY ENDOWMENT TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022
| INCOME Investment Income Total income EXPENDITURE Raising Funds Charitable activities Expenditure Net investment gains/ (losses) Net income / (expenditure) Transfers between funds Net movement in funds Reconciliation of funds Balance brought forward at 1 April 2021(2020) Balances carried forward at 31 March 2022(2021) |
Unrestricted general fund £ 48,668 48,668 - 2,310 2,310 |
Unrestricted general fund £ 48,668 48,668 - 2,310 2,310 |
Expendable endowment £ - - - |
Total Funds 2022 £ 48,668 48,668 - 2,310 |
Unrestricted general fund £ 50,269 50,269 - 34,190 |
Expendable endowment £ - - - |
Total Funds 2021 £ 50,269 50,269 - 34,190 |
|---|---|---|---|---|---|---|---|
| - 40,480 40,480 - 40,480 1,655,994 1,696,474 |
2,310 | 34,190 - 16,079 - 16,079 13,065 29,144 |
- 293,218 293,218 - 293,218 1,362,776 1,655,994 |
34,190 | |||
| - 46,358 - 46,358 29,144 75,502 |
40,480 86,838 - 86,838 1,685,138 1,771,976 |
293,218 309,297 - 309,297 1,375,841 |
|||||
| 1,685,138 |
All of the Trust’s activities derived from continuing operations during the above two financial years.
The notes on pages 17 to 19 form part of these financial statements.
Page | 11
THE JOSEPH LEVY ENDOWMENT TRUST BALANCE SHEET
AS AT 31 MARCH 2022
| Notes FIXED ASSETS Investments 2 CURRENT ASSETS Cash at bank and in hand Debtors 3 CREDITORS:amounts falling due within one year 4 NET CURRENT ASSETS TOTAL NET ASSETS REPRESENTED BY: FUNDS AND RESERVE Unrestricted funds General funds 5 Expendable endowment fund 5 TOTAL FUNDS |
£ 101,993 467 102,460 1,920 |
2022 £ 1,671,436 100,540 1,771,976 75,502 1,696,474 1,771,976 |
2021 £ 1,635,658 |
|---|---|---|---|
| 34,007 17,493 |
|||
| 51,500 2,020 |
|||
| 49,480 | |||
| 1,685,138 | |||
| 29,144 1,655,994 |
|||
| 1,685,138 |
Approved by the Trustees on 28 November 2022 and were signed on its behalf by:
Stephen Moss, CBE
Chair
The notes on pages 17 to 19 form part of these financial statements
Page | 12
THE JOSEPH LEVY ENDOWMENT TRUST CASHFLOW STATEMENT
YEAR ENDED 31 MARCH 2022
Statement of Cash flows
| Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activities: Net dividends and interest from investments Investment Manager Fees Proceeds from sale of investments Purchase of investments Net cash provided by (used in) investing activities Change in cash and cash equivalents in the reporting year Cash and cash equivalents at the beginning of the reporting year Cash and cash equivalents at the end of the reporting year Cash and cash equivalents 01/04/21 £ Cash at bank and in hand 34,007 Cash held as investments 18,041 Total cash and cash equivalents 52,048 Reconciliation of net income (expenditure) to net cash flow from operating activities Net income / (expenditure) for the reporting period as per the statement of financial activities Unrealised Loss/(Gains) on investments Realised gains on investments Dividends and interest from investments Investment management fees Increase / (decrease) in debtors (Increase)/decrease in creditors Net cash provided by (used in) operating activities |
2022 £ (19,235) 48,668 - 20,998 - 69,667 50,431 52,048 102,479 Cashflow £ 67,986 (17,555) 50,431 2022 £ 86,838 (35,778) (4,702) (48,668) - (17,026) 100 (19,235) |
2021 £ (37,215) 50,269 - 2,806 - 53,075 15,858 36,190 52,048 31/03/22 £ 101,933 486 |
|||||
|---|---|---|---|---|---|---|---|
| 102,479 2021 £ 309,297 (280,445) (12,773) (50,269) - (3,185) 160 (37,215) |
|||||||
2022 £ 86,838 (35,778) (4,702) (48,668) - (17,026) 100 (19,235) |
|||||||
The notes on pages 17 to 19 form part of these financial statements
Page | 13
THE JOSEPH LEVY ENDOWMENT TRUST PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 31 MARCH 2022
Basis of preparation of the accounts
The accounts (financial statements) have been prepared on the basis of historical cost convention adjusted for fair value of investments, in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK generally Accepted Practice.
The Joseph Levy Endowment Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going Concern Statement
The Going Concern statement as at year ended 31 March 2021 advised caution in relation to the ongoing impact of the pandemic on investment income and the need to review discretionary spend. As a result of temporarily suspending its grant-making activities, the Trust consolidated its General Fund (net of investment disposals) from £8,808 at year end 2021 to £50,464 by 31 March 2022.
The Trust recorded a healthier reserves position by year end 31 March 2022 of £1,771,976 (2021: £1,685,138), of which £1,696,474 (2021: £1,655,994) relates to the endowment fund and, while the Trust will remain cautious in response to ongoing market volatility, it anticipates that it will resume its grant-making activities in 2022-23; the general fund ratio (excluding drawdown of investments) having improved from 6:1 as at 31 March 2021 to 10:1 as at 31 March 2022. The current level of General Fund (net of investment disposals) is therefore deemed sufficient to cover the Trusts committed (governance) costs and other operating costs for 2022-23.
Having conducted this review of the Trust’s reserves position, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The Trustees have assessed the ability of the Trust to continue as a going concern. Informing this conclusion, a period of at least 12 months from the date of signing the financial statements has been considered.
The Trust holds a permanent endowment fund on which it received investment income to fund grants. A key area of uncertainty relates to the current market turmoil on the valuation of investments and returns. However, this can be accommodated within the reserves. Also, there is flexibility in the level of grants approved. Therefore, the Trustees have concluded that the Trust has a reasonable expectation that there are adequate reserves to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on a going concern basis.
Income Policy
All income is credited to the statement of financial activities when there is entitlement, it can be measured and it is probable. Investment income is credited to the statement of financial activities in the period in which the Trust is entitled to receipt and the amount can be measured with reasonable certainty.
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THE JOSEPH LEVY ENDOWMENT TRUST PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 31 MARCH 2022
Expenditure
Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered. The Trust does not have any expenditure on staff costs as it does not have any employees.
Expenditure comprises the following:
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a. The cost of raising funds includes the fees paid to investment managers in connection with the Trust’s listed investments.
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b. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions.
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c. Governance costs comprise those costs directly attributable to compliance with statutory requirements.
Investments
Investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise.
Fund accounting
The general fund comprises those monies which may be used towards meeting the charitable objectives of the Trust at the discretion of the Trustees.
The expendable endowment fund is invested to generate income for the future but can be expended with the permission of the family representative.
Volunteers
The Trust has no volunteers except for its Trustees.
Financial Instruments
Joseph Levy Endowment Trust has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand. Financial liabilities held at amortised cost comprise trade creditors and accruals.
Investments, including bonds held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised with income and expenditure.
At the balance sheet date, the charity held financial assets at fair value of £1,671,436 (2021: £1,635,658).
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charity’s accounting policies which are described above, Trustees are required to make judgements, estimates and assumption about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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THE JOSEPH LEVY ENDOWMENT TRUST PRINCIPAL ACCOUNTING POLICIES
YEAR ENDED 31 MARCH 2022
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 if the revision affects only that period, or in the period of the revision and future periods is the revision affects the current and future periods.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
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THE JOSEPH LEVY ENDOWMENT TRUST NOTES TO THE ACCOUNTS
YEAR ENDED 31 MARCH 2022
| 1. GOVERANCE COSTS Accountancy and audit fees Insurance charges Bank charges and Subscriptions Independent Examiner’s (2020-21: Auditor’s) Remuneration: Audit fees (additional in 2019-20) Independent Examination (2021: Audit) 2. INVESTMENTS Listed investments Market value at 1 April 2021 Disposals at carrying value Net investment gains/(losses) Market value at 31 March 2021 Cash held by investment managers for reinvestment Cost of listed investments at 31 March 2021 Listed investments held at 31 March 2021 comprised the following: Fixed Income Equities Property Alternative Investments Liquid Assets 3. DEBTORS Accrued income 4. CREDITORS Accruals |
2022 £ 1,920 286 105 2,311 - 1,600 |
2021 £ 3,720 368 102 |
|
|---|---|---|---|
| 4,190 | |||
| 1,500 1,600 |
|||
| 1,600 2022 £ 1,617,617 (4,702) 58,035 1,670,950 486 1,671,436 1,291,496 2022 £ 211,195 1,245,067 38,153 127,088 49,933 1,671,436 2022 £ 467 467 2021 £ 1,920 1,920 |
3,100 | ||
| 2021 £ 1,327,204 (12,773) 303,186 |
|||
| 1,617,617 18,041 |
|||
| 1,635,658 | |||
| 1,312,250 | |||
| 2021 £ 254,652 1,209,694 16,282 75,950 79,080 |
|||
| 1,635,658 | |||
| 2021 £ 17,493 17,493 2020 £ 2,020 2,020 |
Page | 17
THE JOSEPH LEVY ENDOWMENT TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022
| 5. FUNDS General fund Expendable endowment General fund Expendable endowment |
At 1 April 2021 £ 29,144 1,655,994 1,685,138 At 1 April 2020 £ 13,065 1,362,766 1,375,831 |
Income £ 48,668 - 48,668 Income £ 50,269 - 50,269 |
Expenditure £ (2,310) - (2,310) Expenditure £ (34,190) - (34,190) |
Gains / (losses) £ - - 40,480 40,480 Gains / (losses) £ - 293,218 293,218 |
Transfers £ - - - Transfers £ - - - |
At 31 March 2022 £ 75,502 1,696,474 |
|---|---|---|---|---|---|---|
| 1,771,976 | ||||||
| At 31 March 2021 £ 29,144 1,655,994 |
||||||
| 1,685,138 |
The Trust’s policy is to make grants to organisations working with young people in London with similar objects to that of the Trust.
The fund held as listed investments within the expendable endowment fund ensures the Trust has sufficient resources to carry on making grants as the Trustees think fit, with due regard to the level of investment income available to fund such grants.
The Cash at Bank figure at 31 March 2022 of £101,993 (2021: £34,007) included the sum of £25,038 (2021: £20,336) which represents the effective amount of investment fund disposal, there being insufficient income and interest to cover the total return of 4% required within the total return on investment approach applied to the fund between January 2019 and October 2021.
This sum should not be spent without the Levy family permission as it effectively forms part of the investment fund until such time as it can be formally released to General Fund.
6. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Fund balances at 31 March 2022 Are represented by: Investments Current assets Creditors: amounts falling due within one year TOTAL NET ASSETS |
General fund £ - 77,422 (1,920) 75,502 |
Expendable endowment fund £ 1,671,436 25,038 1,696,474 |
Total 2022 £ 1,671,436 102,460 (1,920) |
|---|---|---|---|
| 1,771,976 |
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THE JOSEPH LEVY ENDOWMENT TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022
| Fund balances at 31 March 2021 Are represented by: Investments Current assets Creditors: amounts falling due within one year TOTAL NET ASSETS |
General fund £ - 31,164 (2,020) 29,144 |
Expendable endowment fund £ 1,635,658 20,336 1,655,994 |
Total 2021 £ 1,635,658 51,500 (2,020) |
|---|---|---|---|
| 1,685,138 |
7.
CONNECTED CHARITY
The Federation of London Youth Clubs (charity registration 303324, company registration 258577) has three Trustees in common with the Trust who, in the year under review comprised Stephen Moss, CBE, Keith Ward (until 26 April 2021), David Miller and Morenike Ajayi (from 26 April 2021). All administration is carried out at the same address as The Federation of London Youth Clubs (T/A “London Youth”), however, the Trust operates as a distinct independent charity. The Trust made grants of £nil (2021: £30,000) to The Federation of London Youth Clubs during the year.
8.
TAXATION
The Trust is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
9. RELATED PARTIES
There have been no related party transactions during the year.
10. POST BALANCE SHEET EVENT NOTE
The Trust continues to review the impact of the extended pandemic on its finances and operations. In the year ending 2022, the Trust decided to temporarily suspend its grantmaking activities but intends to resume these in the financial year 2022-23, having established sufficient general fund to distribute. Otherwise, the pandemic has not had a significant impact on the Charity’s operations as set out in the going concern assessment in the accounting policies. There have been no material changes in activity since the balance sheet date.
11. TRUSTEE REMUNERATION
None of the Trustees received any remuneration for any work carried out from the charity during the financial year ended 2022 (2021: £nil). The amount paid to Trustees for expenses during the financial year ended 2022 was £nil (2021: £nil).
12. STAFF COSTS
The Joseph Levy Endowment Trust does not have any employees. Accountancy and Company Secretarial services are provided on a pro-bono basis by London Youth. The value of these pro-bono services is not considered to be material.
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