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2021-03-31-accounts

Charity Registration No. 288293

KENNEDY LEIGH CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

KENNEDY LEIGH CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms C E Berman
Mr A Foux
Mr B Goldkorn
Mr G Goldkorn
Mrs A Sorkin
Mr J Sorkin
Mr M Sorkin
Administrator Ms N Shoffman
Charity number 288293
Principal address Ort House
126 Albert Street
London
NW1 7NE
Auditor Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
NW9 6BX
Bankers SG Kleinwort Hambros Bank Limited
8 St James Square
London
SW1Y4JU
Solicitors Goldkorns Solicitors
25 Southampton Buildings
London
WC2A 1AL
Investment advisors Schroder & Co Ltd
12 Moorgate
London
EC2R 6DA
Veritas Investment Management
90 Long Acre
London
WC2E 9RA
Sarasin and Partners
100 St Paul's Churchyard
London
EC4M 8BU

KENNEDY LEIGH CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Rothschild Wealth Management (UK) Limited St Swithins Lane London EC4N 8AL Property Agents Bidwells Trumpington Road Cambridge CB 2LD

KENNEDY LEIGH CHARITABLE TRUST

CONTENTS

Page
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Independent auditor's report 8 - 11
Statement of financial activities 12
Statement of financial position 13
Statement of cash flows 14
Notes to the financial statements 15 - 24

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and financial statements for the year ended 31 March 2021.

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 Trust's governing document, 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) (updated October 2019)".

Objectives and activities

The Trust seeks to support projects and causes which will improve and enrich all parts of society as confirmed in their mission statement detailed later in this report. Significant focus was given this year upon the advancement of medicine and education as well as the relief of poverty for the public benefit. These aims are supported by the objectives of the Trust as set out in the original trust deed which are:

In line with the objects the Trust focuses the majority of its work in Israel and the remainder in the UK concentrating its strategy on the following programmes carried out for the public benefit:

In setting our programmes going forward we have regard to both the Charity Commission's general guidance on public benefit and prevention and relief of poverty for the public benefit. The Trustees always ensure that the programmes we undertake are in line with our charitable objects and aims.

The charity delivers its charitable aims as follows:

The Trustees have formulated their guidelines in a mission statement an excerpt of which is detailed below:

"The Trust will support projects and causes which will improve and enrich the lives of all parts of society, not least those of the young, the needy, the disadvantaged and the underprivileged. In meeting its objectives the Trust expects to become involved in a wide range of activities. The Trust is able to provide several forms of support and will consider the funding of capital projects, and running costs. The Trust is non-political and non- religious in nature.".

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Grant making policy

The current grant policy of the Trustees is to distribute annually the income and, at the Trustees’ discretion, a proportion of the capital appreciation that the Trust may have experienced over the preceding years. The funds available for distribution outside of Israel are all but committed for the foreseeable future to several UK charities. The Trustees are therefore unable to consider applications for funding from charitable organisations outside of Israel at this time. The Trust excludes applications from private individuals. Details of grants made are set out in the notes to the accounts.

The Trustees all take an active role in the management of the charity to ensure its aims are fulfilled. Regular contact is made with the beneficiaries in order to attempt to establish the needs of charities and the level of financial assistance that may be appropriate.

During the year the charity distributed £510,612 (2020: £519,491) in furtherance of its objectives. The Board considered a varied number of projects introduced by the Trustees themselves, by the Trust's consultant in Israel and through direct approaches to the administrator. In the event a range of donations were made to worthy causes in Israel, along with the standing charitable commitments to UK charities. The beneficiaries of new and continuing significant donations made for the public benefit were as follows:

1. The advancement of health or the saving of lives

CHAI Lifeline - The Trust has supported this organisation for many years. The Trustees at their last review of the list of perennials agreed they wished to continue supporting CHAI Lifeline at the same level of funding of £17,500 per annum. A one-off donation of £5,000 was made during the year, taking the total donations to £22,500.

Jewish Association for the Mentally Ill (JAMI) - The Trust has supported this organisation for many years. The Trustees at their last review of the list of perennials agreed they wished to continue supporting JAMI at the same level of funding of £5,000 per annum.

Magen David Adom - Over the years the Trust has had a long relationship with MDA. A one-off donation of £5,000 was made during the year.

Save a Child’s Heart (SACH) - In October 2020 the Kennedy Leigh Charitable Trust considered a request for support from SACH which is an organisation that saves the lives of critically ill children suffering from heart disease in countries where access to paediatric heart care is limited or non-existent. Through bringing children to Israel for medical care, performing missions abroad, and training medical personnel, SACH brings hope to families, communities, and countries. As Israel’s preeminent humanitarian organization, SACH is transforming paediatric cardiac care around the world.

The Trustees agreed to support the request with a donation to Save a Child’s Heart for the amount of $150,000 in total to be paid over two years. Of the annual donation of $76,00 (£57,692), $29,500 will be used to train a Palestinian Physician and $46,500 will be used for the Heart of the Matter programme for the treatment of five Palestinian Children.

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

2. The advancement of education

Hebrew University of Jerusalem - Research Complex for Ecosystem Services in Agriculture - The Trust has had a long association with this highly regarded academic institution. In 2013 the Trustees agreed they would like to find a big project to support in memory of Leila Foux and Lesley Berman. Following the consideration of several projects and many discussions, visits and meetings with the University the Trustees agreed in July 2015 to commit £1million to establish the Research Complex for Ecosystem Services in Agriculture at the Rehovot campus. The project commenced in June 2016 and was completed in July 2020.

Hebrew University of Jerusalem ELSC for Brain Sciences centre – Further to the above in November 2015 following discussions and meetings with the University and having agreed to support the major project at the Rehovot campus (see above) it was agreed to fund a Doctoral Fellowship at the ELSC for Brain Sciences centre at the Givat Ram campus. It is named The Leila Foux Doctoral Fellowship in Neuroscience and will run for 25 years at a cost of $20,000 per annum.

Derech Kfar Programme - In May 2019 the Trustees agreed to support the IsraElite Young Women’s Leadership program which recruits mainly from the Ethiopian community, with a commitment of £30,000. This was paid out during the year.

3. The advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or

equality or diversity

Hillel - The Right to Choose - is a volunteer organization with the aim of promoting the successful integration of young people who leave the Haredi (ultra-Orthodox) communities in Israel to join modern and pluralistic society. Hillel is the only organization in Israel that supports ex-Haredi individuals. Between 2017-2020 the Trustees have supported various programmes including the single mother's scholarship programme and scholarships for single fathers to help them become part of secular Israeli society when they leave their community for one. The Trustees at their last review of the list of perennials agreed to add Hillel scholarships to the perennial list with a commitment of £12,500 p.a. During the year, a couple of smaller one-off donations were made, taking the total donations to £19,500.

Shatil – NIF – In December 2019 the Trustees considered the project, Improving the Economic Situation of the Bedouin - Israelis in the Negev. A proposal which aims at mentoring and strengthening the capacity of Bedouin leaders to access significant government funding. This would also give them leverage to government policies and decision-making bodies which could potentially have a huge impact on the local Bedouin communities. The Trustees agreed to make a commitment of £15,000 per annum for two years. Along with the £15,000 commitment paid out during the year, a one-off donation of £5,000 was made.

4. The advancement of the arts, culture, heritage or science

Jerusalem Print Workshop – This organisation runs a unique Graphic Arts project which brings artists and master printers together to collaborate on creating works using a variety of printmaking techniques. The Trust has been supporting this organisation's work for a number of years. The Trustees at their last review of the list of perennials agreed they wished to continue supporting Jerusalem Print Workshop at the same level of funding of £12,500 p.a.

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Hebrew Union College- Jerusalem Secular Yeshiva – In December 2019, the Trustees considered the ‘ Teachers Lounge Programme.’ It is a programme created in memory of Shira Banki, a teenager who was murdered in an extremist attack. The programme addresses tolerance and understanding within the group of between 15 to 20 Jewish and Arab teachers both from secular and religious communities. It provides a safe forum to explore and exchange their cultural, traditional and spiritual identities and to discuss communal educational challenges. It is an annual professional development programme and is accredited by the Israel Ministry of Education. The Trustees agreed to commit £15,000 per annum for 2 years to the programme.

Jerusalem Culture Unlimited (JCU) – In September 2020 the Trustees considered a proposal from JCU to support a new programme for Israeli Ethiopian Artists Leadership Network to support young Ethiopian artists. The Trustees agreed to support the programme with a grant of $5,000 per annum for two years.

5. The relief of those in need, by reason of youth, age, ill health, disability, financial hardship or other disadvantage.

Jewish Care - The Trustees have had a long association with this organisation. In 1999 the Trust provided a substantial donation to establish the Kennedy Leigh Homecare service which was to be named in perpetuity. Following on from that the Trustees committed £10,000 per annum to help with the running costs of the service. In October 2013 the Trustees agreed to commit to a donation of £10,000 per annum for seven years for the majority of the Jewish Care fleet of buses to be named The Kennedy Leigh Shuttle; this was done in lieu of the Trust giving way to the naming rights of the homecare service so as to enable Jewish Care to raise further funds in support of this invaluable service. Along with the £10,000 commitment, a further donation of £10,000 was made to support a new project.

Guide Dogs for Israel - In December 2017 the Trustees considered a proposal from the Guide Dogs for Israel which is the only one of its kind in Israel. The Trustees agreed to commit $100k over 4 years to support 4 guide dog partnerships (from birth to retirement) at a cost of $25,000 each. This donation was made in memory of Sarah Jane Leigh. The final two payments were both made this year, resulting in $50,000 being donated during the year.

Post balance sheet commitment:

ELIYA - The Association for Blind and Visually Impaired Children in Israel - In June 2021 and October 2021 the Trustees considered two projects put forward by Eliya - the Hydrotherapy Programme for partially blind infants and children as well as totally blind children and the White Cane Programme for totally blind children. The Trustees agreed to commit $15k to each of the two projects.

6. Other purposes currently recognised as charitable and any new charitable purposes which are similar to another charitable purpose

Community Security Trust (CST) - The Trust has supported this organisation for many years. The Trustees at their last review of the list of perennials agreed to continue their commitment to CST at the same level of £10,000 but to ask that the grant be specifically directed towards the work the CST is doing with university students through its Student and University Campus Activity programme.

Impact of Covid 19 statement

Due to Covid 19 the Trustees were unable to make any visits to projects both in the UK or Israel in the period under review.

In recognition of the extra demand on resources of various medical facilities and other organisations in the UK and Israel as a result of the pandemic the Trustees made additional and discretionary donations totalling £137,500.

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Financial review

The net income for the year amounted to £2,594,881 (2020 – net expenditure of £1,349,954). This is stated after taking into account net gains on investments of £2,727,714 (2020 - net losses of 1,217,025). The Trust paid grants to various charitable organisations in the year and these totalled £510,612 (2020: £519,491).

Total income was £502,521 (2020- £570,427) which is a decrease of £67,906 in income during the year compared to the previous year. This was as a result of lower investment income.

Total expenditure in the year was £635,534 (2020: £703,356), a decrease on the prior year of £67,822. This was mainly due to a decrease in the level of grants payable, and a decrease in the investment management fees. Support costs and governance costs were lower than the prior year at £50,656 (2020: £73,183). This was a result of costs of £20,796 incurred in 2020 in relation to the publishing and launch of book that details the history of the Trust.

A gain arose on the quoted investment portfolio of £2,614,060 (2020: loss of £1,153,430) in the year, due to positive market conditions, with a final portfolio value at the balance sheet date of £18,842,413 (2020: £16,139,150). A loss arose of £26,147 (2020: loss £63,595) in respect of foreign currency deposits retained. The investment property held by the charity was revalued during the year, resulting in a £130,000 fair value gain. Thus, the overall gains on investment assets was £2,727,714 (2020: loss of £1,217,025) which was reported in the Statement of Financial Activities.

Reserves are that part of the charity's funds that are freely available for its general purposes i.e. the resources it has available once it has met its commitments and covered its other planned expenditure. The Trust requires a level of reserves to cover any unexpected contingencies in its day-to-day operations and to ensure that it has sufficient funds available to continue its grant making policy for the foreseeable future. In order to achieve this objective, the Trustees must take into account the current investment climate with its associated low returns.

The charity held unrestricted funds at the balance sheet date of £23,998,590 (2020: £20,263,322) after the sum of £281,600 (2020: £1,421,987) of designated funds are taken into account.

The Trustees have adopted a policy of diversifying its investments into UK Treasury stocks and other funds, including equities, bonds and property, to achieve a better balance between income and capital growth. Overall, the Trustees take a cautious view on investment policy with a view to protecting the trust assets but looking to broadly match appropriate performance indices for the investments made in equity-based products.

The assets of the Trust at the year-end included investments in property interests (£3.05m, 16%), in fixed interest investments (£3.50m, 19%), and in equities and similar funds (£12.29m, 65%). The Trustees believe that this asset allocation provides security, enhances the income flow of the charity whilst allowing an opportunity for capital growth.

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and have developed a risk management strategy which involves the following:

KENNEDY LEIGH CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Plans for future periods

In line with its stated public benefit objectives the charity has entered into the future commitments as detailed previously in this report and also detailed in Note 18 to the accounts.

Structure, governance and management

The Charitable Trust is constituted under the terms of a Deed dated 14th October 1983 and a subsequent scheme altering the investment policy of the Trust dated 29th November 1999. The Trustees may invest the trust fund entirely at their own discretion.

The Trustees who served during the year and up to the date of signature of the financial statements were: Ms CE Berman

Mr A Foux Mr G Goldkorn Mr AM Sorkin Mrs A Sorkin Mr J Sorkin Mr B Goldkorn

Ms C Berman was appointed as Chairman for a period of two years with effect from 1 February 2020.

Under the terms of the original Trust deed the Board has the power to appoint new Trustees by invitation.

All Trustees are kept up to date with ongoing developments in charity law and practice with appropriate training courses being considered if appropriate. It is the policy of the Board to provide new Trustees with all relevant information appertaining to the charity and its affairs upon induction in order that they can obtain a sufficient level of knowledge to enable them to perform their roles effectively.

The Trustees meet formally up to six times a year as well as having ad hoc informal discussions. The decisions of the Trustees are recorded by written minute and the daily management of the Trust is the responsibility of the administrator. Ms N Shoffman is the appointed administrator of the Trust.

The Trustees' report was approved by the Board of Trustees.

Ms C E Berman

Trustee

Date: 11 January 2022

KENNEDY LEIGH CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

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 Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KENNEDY LEIGH CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF KENNEDY LEIGH CHARITABLE TRUST

Opinion

We have audited the financial statements of Kennedy Leigh Charitable Trust (the ‘Trust’) for the year ended 31 March 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

KENNEDY LEIGH CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF KENNEDY LEIGH CHARITABLE TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

KENNEDY LEIGH CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF KENNEDY LEIGH CHARITABLE TRUST

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit procedures performed included the reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, the Charities Act, Employment Laws, Tax and Pensions legislation and Health & Safety legislation.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) 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.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

KENNEDY LEIGH CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF KENNEDY LEIGH CHARITABLE TRUST

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gedalia Waldman B.A, F.C.A

Grunberg & Co Limited

Chartered Accountants Statutory Auditor

Date: 27th January 2022 5 Technology Park Colindeep Lane Colindale London United Kingdom NW9 6BX

Grunberg & Co Limited is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

KENNEDY LEIGH CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Unrestricted
funds
funds
general Movement in
funds
2021
2021
Notes
£
£
Income from:
Investments
3
502,521
-
Expenditure on:
Raising funds
4
57,740
-
Charitable activities
5
577,614
-
Total resources expended
635,354
-
Net gains/(losses) on
investments
10
2,727,714
-
Net incoming/(outgoing)
resources before transfers
2,594,881
-
Gross transfers between
funds
1,140,387
(1,140,387)
Net movement in funds
3,735,268
(1,140,387)
Fund balances at 1 April 2020
20,263,322
1,421,987
Fund balances at 31 March 2021
23,998,590
281,600		 Total
Unrestricted
Unrestricted
funds
funds
general Movement in
funds
2021
2020
2020
£
£
£
502,521
570,427
-
57,740
94,335
-
577,614
609,021
-
635,354
703,356
-
2,727,714
(1,217,025)
-
2,594,881
(1,349,954)
-
-
(107,350)
107,350
2,594,881
(1,457,304)
107,350
21,685,309
21,720,626
1,314,637
24,280,190
20,263,322
1,421,987		 Total
2020
£
570,427
94,335
609,021
703,356
(1,217,025)
(1,349,954)
-
(1,349,954)
23,035,263
21,685,309

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

KENNEDY LEIGH CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
11
Investment properties
12
Investments
13
Current assets
Debtors
15
Investments
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds - Movement in funds
19
Unrestricted funds - general		 2021
£
£
772
4,030,000
18,842,413
22,873,185
28,522
268,833
1,140,650
1,438,005
(31,000)
1,407,005
24,280,190
281,600
23,998,590
24,280,190		 2020
£
£
125
3,900,000
16,139,150
20,039,275
52,171
414,291
1,211,742
1,678,204
(32,170)
1,646,034
21,685,309
1,421,987
20,263,322
21,685,309		 2020
£
£
125
3,900,000
16,139,150
20,039,275
52,171
414,291
1,211,742
1,678,204
(32,170)
1,646,034
21,685,309
1,421,987
20,263,322
21,685,309
20,039,275
1,646,034
21,685,309
1,421,987
20,263,322
21,685,309

The financial statements were approved by the Trustees on 11 January 2022.

Mr J Sorkin Mr B Goldkorn Trustee Trustee

KENNEDY LEIGH CHARITABLE TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash absorbed by operations
21
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds on disposal of investments
Investment income received
Net cash generated from investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
CASH FLOW OUT OF BALANCE BY:		 2021
£
£
(628,965)
(904)
(878,221)
789,556
501,984
412,415
-
(216,550)
1,626,033
1,409,483
(216,550)		 2020
£
£
(805,838)
-
(12,522,772)
13,290,806
572,066
1,340,100
-
534,262
1,091,771
1,626,033
534,262

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Kennedy Leigh Charitable Trust is an unincorporated charity governed by a trust deed.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Trust is a Public Benefit Entity as defined by FRS 102.

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 Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

Having reviewed the trust's financial forecasts and expected future cash flows, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. The trust holds good cash reserves to shelter against the impact of the current coronavirus pandemic. In addition, announcements by government of various initiatives to support businesses to address short-term income shortfalls should enable the trust to continue operationally. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 March 2021.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes, namely the provision of future grants.

1.4 Income

Income is recognised when the Trust 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. The main income of the Trust is derived from quoted investments. Income received from UK quoted investments is recognised as income when receivable together with any recoverable tax credits. No relief is recoverable for such credits paid on dividend income.

All other income is accounted for on an accruals basis.

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Any irrecoverable VAT is charged against the expenditure heading to which it relates.

The costs of raising funds are represented by costs relating to the management of the investment portfolios of the charity as well as expenses attributable to the management and letting of the property interests owned.

Grants payable are payments made to third parties in the furtherance of the charitable activities of the Trust. Grants are recognised in the accounts when paid or when the Trustees have agreed to pay the grant without condition. At the end of each year a review is carried out in respect of future charitable commitments to be made and a note to the accounts in included in respect of the total commitments.

Charitable expenditure includes grants payable, consultancy fees and trustee expenses incurred regarding the provision and supervision of charitable projects. Support costs are also included under charitable expenditure in line with the Statement of Recommended Practice.

Support costs comprise governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers 25%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

No item of expenditure is capitalised as fixed assets additions unless it exceeds the sum of £500.

1.7 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 at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.10 Cash and cash equivalents

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.

1.11 Financial instruments

The Trust 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 Trust's balance sheet when the Trust 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 transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, 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 payments 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 creditors 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 creditors 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 Trust’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

The Trust does not operate a pension scheme. Contributions made to a personal scheme of an employee are charged in the accounts as they become payable.

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.14 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15 Taxation

As a registered charity the Society is exempt from taxation on its activities which fall within the scope of part 10 ITA 2007 and section 256 of the Taxation of Chargeable Gains Act 1992.

2 Critical accounting estimates and judgements

In the application of the Trust’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.

3 Investments

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Rental income 52,687 52,003
Income from listed investments 447,605 514,356
Interest receivable 2,229 4,068
502,521 570,427

4 Raising funds

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4
5		 Raising funds
Trading costs
Property management expenses
Investment management fees
Charitable activities		 19,946
37,794
57,740		 22,686
71,649
94,335
Consultancy fees
Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)
6
Grants payable
Grants to institutions		 2021
£
16,346
510,612
37,872
12,784
577,614
2021
£
510,612		 2020
£
16,347
519,491
61,390
11,793
609,021
2020
£
519,491

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Support costs

Support costs
Governance
costs
£
£
Staff costs
18,423
-
Depreciation
257
-
Office overheads
18,088
-
Other expenses
1,104
-
Audit fees
-
12,000
Accountancy
-
784
37,872
12,784
Analysed between
Charitable activities
37,872
12,784		 2021 Support costs
Governance
costs
£
£
£
18,423
18,218
-
257
41
-
18,088
21,648
-
1,104
21,483
-
12,000
-
11,280
784
-
513
50,656
61,390
11,793
50,656
61,390
11,793		 2020
£
18,218
41
21,648
21,483
11,280
513
73,183
73,183

Governance costs includes payments to the auditors of £12,000 (2020: £11,280) for audit fees.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year. No expenses were reimbursed to the Trustees in the year.

9 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
1 1
Employment costs 2021 2020
£ £
Wages and salaries 18,000 18,000
Other pension costs 423 218
18,423 18,218

There were no employees whose annual remuneration was more than £60,000.

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Revaluation of investments 2,640,207 (3,981,572)
(Loss)/gain on sale of investments (26,146) 2,828,143
Gain on revaluation of investment properties 130,000 -
Loss on sale of foreign currency (16,346) (63,595)
2,727,714 (1,217,025)
11 Tangible fixed assets
Computers
£
Cost
At 1 April 2020 3,239
Additions 904
At 31 March 2021 4,143
Depreciation and impairment
At 1 April 2020 3,114
Depreciation charged in the year 257
At 31 March 2021 3,371
Carrying amount
At 31 March 2021 772
At 31 March 2020 125
12 Investment property
2021
£
Fair value
At 1 April 2020 3,900,000
Net gains through fair value adjustments 130,000
At 31 March 2021 4,030,000

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12 Investment property

Investment property comprises land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Bidwells Chartered Surveyors, who are not connected with the Trust. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. A fair value uplift of £130,000 was made during the year.

The historical cost of the investment property was £850,000 (2020: £850,000).

Freehold
13
Fixed asset investments
Cost or valuation
At 1 April 2020
Additions
Valuation changes
Disposals
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
14
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Cash at bank
Instruments measured at fair value through profit or loss
Cash held in investments
Carrying amount of financial liabilities
Measured at amortised cost		 2021
2020
£
£
4,030,000
3,900,000
Listed
investments
£
16,139,150
878,221
2,640,207
(815,165)
18,842,413
18,842,413
16,139,150
2021
2020
£
£
28,522
23,032
1,140,650
1,211,742
18,842,413
16,139,150
268,833
414,291
30,610
31,472		 2021
2020
£
£
4,030,000
3,900,000
Listed
investments
£
16,139,150
878,221
2,640,207
(815,165)
18,842,413
18,842,413
16,139,150
2021
2020
£
£
28,522
23,032
1,140,650
1,211,742
18,842,413
16,139,150
268,833
414,291
30,610
31,472
18,842,413
18,842,413
16,139,150
2020
£
23,032
1,211,742
16,139,150
414,291
31,472

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14
Financial instruments
15
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
16
Current asset investments
Cash held for investment
Current asset investments comprise of cash held in investment portfolios.
17
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2021
2021
£
15,485
13,037
28,522
2021
£
268,833
2021
£
390
30,610
31,000		 2020
2020
£
23,032
29,139
52,171
2020
£
414,291
2020
£
698
31,472
32,170

Commitments

The trustees had commitments to charitable organisations at the year end, which are included in the accounts as designated funds, as follows:

Within one year
After more than one year		 2021
2020
£
£
198,100
220,011
83,500
1,201,976
281,600
1,421,987

KENNEDY LEIGH CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

19 Unrestricted funds - Movement in funds

These are unrestricted funds which are material to the Trust's activities made up as follows:

Movement in funds
General funds
Designated
funds
£
£
Balance at 1 April 2020
17,166,993
1,421,987
Income
502,521
-
Expenditure
(635,354)
-
Transfer between funds
1,140,387
(1,140,387)
On investment disposals
(26,147)
-
Quoted investments
1,679,013
-
Foreign currency
(16,346)
-
Investment property
-
-
19,811,067
281,600		 Revaluation
reserve
3
£
3,096,329
-
-
-
-
961,195
-
130,000
4,187,524		 Balance at
1 March 2021
£
21,685,309
502,521
(635,354)
-
(26,147)
2,640,208
(16,346)
130,000
24,280,190		 Total at
1 April 2020
£
23,035,263
570,427
(703,356)
-
2,828,143
(3,981,572)
(63,596)
-
21,685,309

20 Related party transactions

There were no disclosable related party transactions during the year (2020 - £65,000).

21 Cash generated from operations

Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss/(gain) on disposal of investments
Fair value gains on investment properties
Fair value (gains) and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease) in creditors
Cash absorbed by operations		 2021
£
2,594,881
(502,521)
26,146
(130,000)
(2,640,207)
257
23,649
(1,170)
(628,965)		 2020
£
(1,349,954)
(570,427)
(2,828,143)
-
3,981,572
41
(37,837)
(1,090)
(805,838)

22 Analysis of changes in net funds

The Trust had no debt during the year.