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2020-12-31-accounts

Charity Registration No. 802083

THE POSK FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE POSK FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Kaczmarek Dr A Ostoja-Ostaszewski R Wisniowski (Chair) A Zakrzewski M Zaremba Charity number 802083 Registered office 238-246 King Street London UK W6 0RF Auditor Bright Grahame Murray Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG Bankers Barclays Bank UK PLC 75 King Street Hammersmith W6 9HY

THE POSK FOUNDATION

CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent auditor's report 5 - 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 15

THE POSK FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are pleased to present their report and the audited financial statements for the year ended 31 December 2020, which have been prepared in accordance with the accounting policies set out on page 10 and comply with the Charity's trust deed and applicable law. The administrative information on page 1 forms part of this report.

Objectives and activities

The POSK Foundation was formed to support the charitable objectives of POSK

The objects of the Charity are the advancement of the arts, culture or heritage; the provision of recreational facilities in the interests of social welfare; the advancement of education; the relief of poverty and the relief of those in need; and in particular:

In furtherance of these objects the Charity may make grants of money to other persons or bodies who provide for these objects.

The Charity was established with the objective to build a permanent endowment fund which would be invested in perpetuity to provide an income to support the Charity’s Objects and for this purpose the Trustees had the power to accumulate the income of the Charity for a period of 21 years from its establishment. This period expired on 4 September 2011.

The Charity achieves its objectives by providing grants, loans and financial support to other charities, principally The Polish Social and Cultural Association, the details of which are set out in the Financial Review below.

Achievements and performance

Financial review

During the year, the Charity made grants of £111,000 to POSK (2019 - £60,000) in support of the general purposes of that charity.

During the year the Charity earned investment income of £97,522 which represents an average return of 2.92% (2019 - £112,596: 3.57% average return). The total return (before donations) for 2020 was a positive 3.08% (2019: negative return of (14.41%) which is in line with sector indices.

Investment policy

The Foundation’s investments consist of Common Investment Funds (CIF), Charity Authorised Investment Funds (CAIFs) and cash on deposit. There are no restrictions on the Foundation’s power to invest. The investment strategy is reviewed by the Trustees periodically and takes account of the market conditions and demands for funds for furthering the objects of the Charity. The Trustees adopt a low risk investment strategy and there is no intention to change this in the near future.

THE POSK FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

The Charity is governed by a Trust Deed dated 6 May 2009.

There are a minimum of three and a maximum of five trustees. The Treasurer of the Polish Social and Cultural Association (Registered Charity No. 236745) (“POSK”) is ex-officio the chair of the Trustees of the Charity. The other Trustees can be appointed and removed by resolution of the Council of POSK.

The Trustees meet as required to effect the management of the Charity. Tasks and activities may be delegated to individual or groups of Trustees as appropriate.

The Charity shares premises with POSK and receives administrative support from the staff of POSK.

Trustees who served throughout the year were:

J Kaczmarek Dr A Ostoja-Ostaszewski R Wisniowski A Zakrzewski M Zaremba

Training of Trustees

There are no formal policies and procedures for the training and induction of Trustees. Persons elected as Trustees are usually familiar with the Charity and/or charitable organisations in general and are therefore considered capable.

Murdzenski and Jagodzinski Funds

The Charity received a bequest from the Will of Mr T. Murdzenski to hold the bequest as a permanent endowment and utilise the income to award prizes for outstanding literary, scientific or fine art work.

The Charity received a bequest from the Will of Mr Z. K. Jagodzinski to hold the bequest as a permanent endowment and utilise the income for the benefit of the Polish Library at POSK.

Financial and Operational Review

During the year, the Charity made grants of £111,000 to POSK (2019 - £60,000) in support of the general purposes of that charity.

During the year the Charity earned investment income of £97,521 which represents an average return of 2.92% (2019 - £112,596: 3.57% average return). The total return (before donations) for 2020 was 3.08% (2019: 14.41%) which is in line with sector indices.

Charity’s Public Benefit

The Trustees have complied with their duty in Section 17 of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission. The Trustees have taken the Charity Commission’s public benefit guidance into account when making any decision it is relevant to.

The Trustees have ensured that all activities throughout the year have been in the interest of public benefit. This is evidenced as detailed within the objectives and activities by the financial support given to POSK of £111,000 to assist the charity in its continuing advancement of the arts, culture or heritage and provision of recreational facilities available to the general public.

THE POSK FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Risk management

The trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate the Charity's exposure to the major risks. The principal risks and uncertainties facing the Charity are:

(a) Diminution in the value of the investment portfolio.

(b) POSK’s ongoing funding requirements leading to selling down of the Charity’s investment portfolio

Reserves

The reserves held by the Foundation are £83,441. The purpose of these reserves is to provide a secure income stream to enable the Charity to fulfil its objects including the maintenance and development of the POSK building and the development of POSK's social and cultural activities.

R Wisniowski (Chair)

Trustee Dated: 2 August 2021

THE POSK FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees are responsible for preparing the Trustees' Report and the 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 year.

In preparing these accounts, 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 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.

THE POSK FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE POSK FOUNDATION

Opinion

We have audited the accounts of The Posk Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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.

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:

THE POSK FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE POSK FOUNDATION

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trusteesare responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’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 auditors 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 accounts 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 accounts.

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

Other matters which we are required to address

Your attention is drawn to the fact that the charity has prepared accounts 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) 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 accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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.

THE POSK FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE POSK FOUNDATION

Mark Cole (Senior Statutory Auditor) for and on behalf of Bright Grahame Murray

Chartered Accountants

Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG

20 August 2021

Bright Grahame Murray is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006

THE POSK FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted Endowment
funds
funds
funds
Notes
£
£
£
Income from:
Income from investments
3
86,432
11,090
-
Expenditure on:
Charitable activities
4
113,220
-
-
Net gains/(losses) on
investments
9
-
-
5,386
Net movement in funds
(26,788)
11,090
5,386
Fund balances at 1 January
2020
110,229
141,372
3,097,701
Fund balances at 31 December
2020
83,441
152,462
3,103,087		 Total
2020
£
97,522
113,220
5,386
(10,312)
3,349,302
3,338,990		 Total
2019
£
112,596
62,815
341,903
391,684
2,957,618
3,349,302

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

All income and expenditure derive from continuing activities.

THE POSK FOUNDATION

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Investments
10
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds - general
12
Income funds
Restricted funds
13
Unrestricted funds		 2020
£
£
3,246,291
94,499
(1,800)
92,699
3,338,990
3,103,087
152,462
83,441
3,338,990		 2019
£
£
3,337,895
13,207
(1,800)
11,407
3,349,302
3,097,701
141,372
110,229
3,349,302

The financial statements were approved by the Trustees on 2 August 2021

R Wisniowski (Chair) Trustee

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The POSK Foundation is an unincorporated registered charity governed by a Trust Deed dated 6th May 2009. The operating address is 238-246 King Street, London, W6 ORF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity'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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

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

1.2 Going concern

At the time of approving the financial statements , the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements .

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

Investment income is included when receivable.

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

All support costs are allocated to the one charitable activity of POSK Foundation.

1.6 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.

1.7 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.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from investments

Unrestricted Restricted
funds
funds
£
£
Income from investments
86,113
10,399
Interest receivable
319
691
86,432
11,090
For the year ended 31 December 2019
101,425
11,171		 Total
2020
£
96,512
1,010
97,522		 Total
2019
£
111,079
1,517
112,596
112,596

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Grant funding of activities (see note 5)
Share of governance costs (see note 6)
Grants payable
Grants to institutions:
Polish Social and Cultural Association		 2020
£
111,000
2,220
113,220
2020
£
111,000		 2019
£
60,000
2,815
62,815
2019
£
60,000

5 Grants payable

6 Support costs

Support
costs
Governance
costs
£
£
Audit fees
-
2,220
-
2,220
Analysed between
Charitable activities
-
2,220		 2020
£
2,220
2,220
2,220		 2019 Basis of allocation
£
2,815 Governance
2,815
2,815

Governance costs includes payments to the auditors of £ 2,220 (2019- £ 2,815 ) for audit fees.

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

There were no employees during the year.

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Net gains/(losses) on investments

2020 2019
£ £
Revaluation of investments 5,386 341,903

10 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2020
3,097,701
Valuation changes
5,386
Disposals
-
At 31 December 2020
3,103,087
Carrying amount
At 31 December 2020
3,103,087
At 31 December 2019
3,097,701		 Cash in
portfolio
240,194
-
(96,991)
143,203
143,203
240,194		 Total
£
3,337,895
5,386
(96,991)
3,246,290
3,246,290
3,337,895

Fixed asset investment revaluation

The listed investments were revalued at market value as at the year end. The historical cost value is £2,525,730 (201 9: £2,525,730).

11 Creditors: amounts falling due within one year

2020 2019
£ £
Accruals and deferred income 1,800 1,800

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources
Revaluations		 Balance at 31
January resources expended
gains and		 December
2020 losses 2020
£ £ £
£		 £
Permanent endowments
Murdzenski fund 170,303 - -
10,940		 181,243
Jagodinski fund 168,465 - -
10,822		 179,287
Capital fund 2,758,933 - -
(16,376)
2,742,557
3,097,701 - -
5,386		 3,103,087

The Charity received a bequest from the Will of Mr T. Murdzenski to hold the bequest as a permanent endowment and utilise the income to award prizes for outstanding literary, scientific or fine art work.

The Charity received a bequest from the Will of Mr Z. K. Jagodzinski to hold the bequest as a permanent endowment and utilise the income for the benefit of the Polish Library at POSK.

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at 1 Incoming Resources
Balance at 31
January resources expended
December
2020 2020
£ £ £
£
Murdzenski fund 94,181 5,666 -
99,847
Jagodzinski fund 47,191 5,424 -
52,615
141,372 11,090 -
152,462

THE POSK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Endowment
funds
£
£
£
Fund balances at 31 December 2020 are
represented by:
Investments
1,140
142,063
3,103,088
Current assets/(liabilities)
82,300
10,399
-
83,440
152,462
3,103,088		 Total
£
3,246,291
92,699
3,338,990

15 Related party transactions

Mr R. Wisniowski and Mr A. Zakrzewski are Directors of POSK. Mr R. Wisniowski, Mr M Zaremba and Mr A. Zakrzewski are members of the Council of POSK.

During the year the Charity donated £ 111 ,000 ( 2019: £60,000 ) to POSK from unrestricted funds.