The Charles Wolfson Charitable Trust Accounts 2007

8/9/2019 The Charles Wolfson Charitable Trust Accounts 2007

http://slidepdf.com/reader/full/the-charles-wolfson-charitable-trust-accounts-2007 1/25

ty

Charity Regis t rat ion Number 238043

The CharlesWolfson Charitable Trust

Financial statements

5 April 2007



THE CHARLES WOLFSON CHARITABLE TRUSTCompany informat ion

Governing InstrumentDeed of Trust executed on 14 July 1960

SettlorsCharles Wolfson

Lord Wol fson of Sunningdale

Trustees

Lord Wol fson of SunningdaleThe Hon Simon Adam Wolfson

The Hon Andrew Daniel Wol fson

D r S ara L ev ene

Secreta ry

Michael Morr is Franks

Correspondent

Mrs R Crawford

Address12 9 Battenhall Road

Worces te r WR5 2BU

Auditor

Chantrey Vel lacot t DFK LL PChartered AccountantsRussell Square House

10-12 Russell Square

LondonWC1 B 5L F

Bankers

Bank of Scotland

14 /1 6 Cockspu r StreetLondon

SW1Y 5 1 3 1 -

Solicitors

William Sturges & Co

Burwood House14-16 Caxton Street

London

SW1H OQY

Investment prope rty managersMERJS Limited

26/28 Hallam Street

LondonW1W 6NS

Charity registrat ion number

238043

Inland Revenue referenceXN2027

1



THE CHARLES WOLFSON CHARITABLE TRUSTTrustees' report

The t rustees p resen t their report and f inancial statements of The Cha rl es Wolfson Chari tab le Trust (" the Trust" ) and the

group for the year ended 5 Apr il 2007, which includes the adminis trative in formation set ou t on page 1 .

The "group" means the Trust and Benesco Charity Limited ("Benesco") and it s wholly-owned subsidia ry companies, HeathRetail Holdings Limited and Hea th Reta il One Limited.

Reference and administrative details of the chari ty , i ts trustees and advisors

The charity number, p resent trustees and advisors are given on page 1 .

Trustees

The t rus tees who held of f ice throughout t he year, unless otherwise stated, were as fol lows:

Lord Wolfson ofSunningdale (Chairman)

The Hon Simon Adam Wolfson

The Hon Andrew Dan ie l Wo l f son

D r S ara L ev ene

Structure, governance and management

Governing document

The Trust is a registered charity and is governed by a Deed of Trust executed on 14 July 1960.

Appointment of trustees, organisational structure and related parties

The Trust is administered by the trustees who are appointed by th e settlors during their lifetime and thereafter by the

continuing trustees. They meet quarterly and receive regular reports on the group's properties and finances from it s

►~ property managers and other advisors.

The Trust is a grant-making charity which derives the bulk of it s income from grants received from Benesco, wh ich is a

registered charity and a company ( limited by guarantee) whose investments are held in property.

~ It is t he dec lared policy of t he trustees tha t the majority of the trustees of th is cha rity mus t be members of Benesco, and the

majority of the members of Benesco will consist of trustees of this Trust who have the power to appoint and remove directors,

and Benesco is thereby controlled by this chari ty . Because the Trust thereby controls Benesco, the trustees are present ingconsolidated financial statements including the combined assets, liabilities and income of the Trust and of Benesco and it s

subsidiary companies as a group.

Risk management s ta t ement

The tr us tees have examined th e major strategic, business and operational risks which th e g roup faces and confirm that

systems have been established to enable these risks to be managed to an acceptable level.

Objectives and activities

The objective of the Trust is to apply the income to such charitable purposes as th e trustees shall select.

Th e policies adopted to fu rther the Trust's object ives include the making of direct grants of money , the provision of loans,

on which the interest is wa ived and the provision of rent- free premises. Direct grants of money constitute well over 9 5% of

the charitable application of funds.

Although the trustees of the Trust and the directors of Benesco have power to app ly both capital and income to charitablepurposes, the medium and long term policy ha s been to preserve the cap ita l and to ex pen d the in come, a f te r g iv ingconsideration to the effects of inflation.

It is cons ide red tha t it is no t practical to make an y predetermined annual allocation between the various grant headings,

especially as it is sometimes appropr iate no t to f ul ly distribute in a part icu la r year in order to accommodate large projectswhich extend over more than one year.

The directors of Benesco have chosen to focus on proper ty investment because , a f te r a ll ow ing f or a nnua l r unning c os tsand renewals and refurbishment, the rental in c ome ove r the years tends to keep pace with inflation, so long as th e portfoliois well spread in app ropr ia te p rope rt ie s. I ncome from property does no t include monies spent and r ecouped by way of

reimbursement from lessees, such as service charges, insurance premiums and the usual outgoings recovered.

2



V"

Objectives and activities (continued)

Grant making policy

It is the trustees' normal pol icy no t to make g rant s to individuals and to make grants in the UK only to registered charities,or to hospitals and schools and s imi lar char itable institutions. The intention is to d i rec t g ran ts to the major a reas listed

below, especially for capital or fixed term projects, and with particular, but no t exclusive, regard to the needs of the Jewishcommunity. This statement of objectives is no t intended as a formal limitation of the way that the trustees may exercisetheir discret ion f rom time to time.

1 . Medicine

2. Educat ion

3. Wel fare

The group in suitable circumstances ha s purchased buildings to be made avai lab le to other char it ies so that e f fective ly the

income which shou ld o therw ise be derived from such property, or most of it , is foregone by way of conferring a grant or

benefit to the other charities to ass is t them in the work forwhic h the g roup wishes to give support.

Achievements and performance

Investment policy and property report

The group's investment policy is primarily to focus on property providing a good rental income, to enable it to support its

charitable object ives, combined with long term secur ity to ensure the longev it y of the charity.

With this in mind, supported by the services of pro fess ional p roper ty managers , the group invests to build what it considers

to be a high quali ty portfo l io wi th th e v ast majority in commercial and non-residential property le t to bus ines s tenants . T he

trustees cons ide r t his policy to have been successful over previous years and durin g the current year given both the

income generation and the unreal ised increases in property values.

At the balance sheet date, th e group's prope rty po rtfolio consisted of:

1. 10 commercial holdings, all of which were freehold and which represent well over 95% of the prope rty po rtfolio; and

2. 1 property wh ich the g roup made available to other charities on a rent-free o r rent-reduced basis.

►~ The port fo li o has been built up over 30 years, the first purchase having been made in Februa ry 1977.

The o rig inal cost of the prope rt ies, excluding those made ava ilab le to other charities, at the balance sheet date was

THE CHARLES WOLFSON CHARITABLE TRUSTTrustees' repo rt (continued)

£68,914,655 (2006: £68,709,856) against a current value of £144,734,000 (2006: £129,984,000). The rent roll at

Apri l 2007 was £7,201,092 (2006: £7,233,000).

The t rus tees have con tinued their policy of upgrading build ings as and when required. Upgrades have again been carried

out du ring the year which have resu lted in increased rental income and increased por tf ol io v al ue . F urth er upgrades are

currently in hand which will continue to contribute posit ively towards both the ren ta l i ncome and t he capital values of the

properties.

The changes in fixed assets during the yea r are summarised in t he notes to the f inanc ia l s ta temen ts . The proper ties held by

the chari table company and it s subsid ia ry undertakings at 5 April 2007 have been valued by the group's propertymanagers on a market va lue basis at approximate ly £145,214,000 (2006: £132,359,000) as compared to their total original

cost of £68,981,215 (2006: £69,512,951) .

Grants madeIn the year to 5 Apri l 2007, £6,148,925 (2006: £6 ,6 20,6 60 ) has been donated by t he g roup by way of direct grants to operative

chari ties . Indiv idual donations are listed in note 20 to these financial statements.

Major projects in c luded g rants to Cambridge Univers it y (£2 ,000,000) and G reat Ormond S treet Hosp ita l (ECMO Unit)

(£1,000,000).

3



THE CHARLES WOLFSON CHARITABLE TRUSTTrustees' report (continued)

Financial review

Ne t incoming resources for the group fo r the year, before grants payable and renta ls foregone on charitably le t propertiesof £6,148,925 (2006: £6 ,620 ,660 ) a re £6 ,590 ,502 (2006: £7,030,845).

After a surplus on revaluation of investment prope rt ies and investments of £15,018,779 (2006: £18,456,786) and a realisedde fi c it on sales of prope rt ies of £16,429 (2006: surplus of £1,340,422), the net movement in funds for the year is£15,443,927 (2006: £20,207,393).

Fund balances at the year end are £160,197,642 (2006: £144,753,715) of which £154,138,141 (2006: £140,829,524) isrepresented by investment propert ies and investments, and the balance of £6,059,501 (2006: £3 ,924 ,191 ) is availablereserves for grant commitments and working capital.

Reserves policy

In order to prov ide income to enable the g roup to fulf i l its chari table objectives and make grants, it is necessary to maintain

and fund assets to generate this income. The group therefore must retain unrestricted funds at least equal to the value ofthe property and other f ixed asset investments, together with addit ional funds to accommodate grant allocations fo r largep ro jects whic h ex tend over more than one year.

Plans for fu ture periods

At the bal ance shee t da te , the trustees had committed to support a number of projects by means of g rants for per iods of

two or three years . D u rin g p re vio us y ea rs the trustees have committed £6 ,000,000 f rom the group towards the theatresdevelopment on the Chelsea site of th e Royal Marsden Hosp ita l. D urin g this year stage payments of th is g rant of £Nil

(2006: £3,000,000) have been made by the group. The balance of this grant (£3,000,000), together with other committed

grants , the most significant ofwhich ar e to Cambridge University (E2,000,000) and Great Ormond S treet Hosp ita l (ECMO

Unit ) (£1,000,000) , have been provided fo r in these f inancia l s tatements (see note 11 and 12).

The t rustees a lso cust omaril y make annual bu t uncommitted grants to major providers in t he educat ional and welfare fields

and fo r scientific and medica l research. As these g rants r equir e satis fa c to ry annua l r epor ts and review, medical projectsbeing also subject to review by t he T rus t' s medical adviser, the grants are considered uncommitted and have no t been

provided fo r in these statements.

It is t he t rus tees' i nten ti on to continue to preserve t he capital , invested predominate ly in property, with an emphasis on

commerc ia l r at he r t han resident ia l propert ies . Not withstanding th e need to accommodate large projects as referred to

above, the t rus tees' current policy is to matc h expenditure to incoming resources over the medium term.

Tax status

The Trust is entitled to exemption from taxation on income and capital gains to the extent tha t it s funds are applied for

charitable purposes.

Auditor

A resolution to reappoint Chantrey Vellacott DFK LLP will be proposed at the f o rthcoming annua l general meeting.

Statement of trustees' responsibi l it ies

The t rustees are respons ib le for preparing the f inancial statements in accordance with applicable law and regulations.

Charity l aw requir es the trustees to prepare f inancia l s tatements fo r each f inanc ia l year. Under tha t law the trustees haveelected to prepare their f inancia l s tatements in accordance with United Kingdom Genera ll y Accepted Accounting Practice

(United K ingdom Account ing S tanda rds and applicable la w). T he f in an cia l s ta tements are r equir ed by law to give a true

and fair view of the state of affairs of the Trust and of the g roup and of t he surplus or def ici t of the Trust and of the g roupfo r that period. In prepar ing these financial statements the trustees are required to:

• select su itable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been fol lowed, subject to any mate ria l departures

disclosed and explained in the f inancia l s tatements;

• prepare the financ ial statements on the g oing c on ce rn ba sis unless it is inappropriate to presume that the Trustand the group will continue in existence.

4



THE CHARLES WOLFSON CHARITABLE TRUSTTrustees' report (c o n t i n u e d )

Statementof t rustees' responsibi li ties (continued)

Each trustee ha s ta ke n a ll ste ps th at they ought to have taken as trustees in order to make themselves aw are of an y

information relevant to the audit and to ensure tha t the auditor is aware of al l relevant audit informat ion. As far as each

trustee is aware, there is no re levant audit in formation ofwhich the char ity 's auditor is unaware.

Th e trustees are responsible for keeping proper accounting records wh ich d isclose wi th reasonable accuracy a t any timeth e financial position of the Trust and th e group and enables them to ensure that th e financial statements comply with theCharities Act 1993. They are a lso responsible for safeguarding the assets of the Trust and the group and hence for takingreasonable steps for th e prevention and detection of fraud and other irregularities.

This report was approved by the trustees on .

72-1~~~~ and signed on their behalf.

5



THE CHARLES WOLFSON CHARITABLE TRUSTIndependent auditor's report to th e trustees of The Charles Wolfson Charitable Trust

We have aud i ted the f inancia l s tatements of The Char le s Wo lf son Char it ab le T rus t f or the year ended 5 April 2007 which

comprise the Consol idated and Trust statement of f inanc ia l ac ti vi ti es , Consol idated and Trust balanc e sheets ,

Consolidated cash f low statement, and the related notes. These f inancial s ta tements have bee n p re pa re d un de r theaccounting policies set ou t therein.

This report is m ad e solely to the Trust 's trustees, as a body, in accordance w ith sec tion 44 of the Chari ties Act 1993 . Ouraudit work ha s been undertaken so that we might state to the Trust 's t rus tees those matters we are required to state to

them in an auditor's report and fo r no other purpose. T o the fu llest extent permi tted by law, we do no t accept or assumeresponsibility to anyone other than the Trust and t he T rus t' s t rus tees as a body, for ou r aud i t work , fo r this report, or fo r theopinions we have fo rmed .

Respective responsibilities of the trustees an d auditor

The t rustees ' responsibil ities for preparing the trustees' report and the f inanc ia l s ta temen ts in accordance with applicable

law and United K ingdom Account ing S tanda rds (United Kingdom Generally Accep ted Account ing Practice) are set ou t in

the Statement of Trustees' Responsibil ities.

We have been appointed auditor under section 43 of the Chari ti es Ac t 19 93 and report in accordance with regulations

made under section 44 of that Act. Our responsib i li ty is to audit the f inanc ia l statements in accordance with relevant legal

and regulatory requirements and In ternat ional Standards on Auditing (U K and Ireland) .

We report to yo u our opinion as to whether the financial statements give a true and fair view and are properly prepared inaccordance with the Chari ti es Ac t 1993 .

We r eport t o you whether in our opin ion the information given in t he t rus tees' report is consisten t w ith the f inancial

statements.

We also report to you if, in our op in ion, the Trust and the group have no t kept p roper accoun ting records, if we have no t

received al l the information and explanations we require for ou r audit, or if information spec if ied by law rega rd ing tr us tees '

remuneration and other t ransact ions is no t disclosed.

We read other info rmation con ta ined in the trustees' report, and consider the implications fo r our repor t if we become

aware of an y misstatements within it .

Basis of audit opinion

We conduc te d our aud it in accordance with International Standards on Auditing ( UK and Ireland) issued by the AuditingPractices Board. An audit includes examination, on a test basis, of ev idence relevant to the amounts and disclosures in

the f inanc ia l statements. It also includes an assessment of the significant estimates and j udgements made by the trusteesin the preparation of the f inancial statements, and ofwhether the accounting policies are appropriate to the Trust 's and thegroup 's c i rcumstances, consistently applied and adequate ly d isc losed.

We planned and perfo rmed our audit so as to obtain al l the information and explanations which we cons idered necessary

in order to provide us with sufficient evidence to give reasonable assurance that the f inancial statements are free from

material misstatement, whether caused by fraud o r other i rregu lar ity or error. In forming our opinion we also evaluated the

overall adequacy of the presentation of information in the f inanc ia l statements.

6



THE CHARLES WOLFSON CHARITABLE TRUSTIndependent auditor's repo rt to th e trustees of The Char les Wolfson Charitable Trust ( c o n t i n u e d )

• the f inanc ial s ta tements give a true and fair view, in accordance with United K ingdom Gene ra ll y Accepted

Accounting Pract ice, of the state of the Trust 's and group's affairs as at 5 Apri l 2007 and of its incoming resourcesand application of resources, for the year then ended; and

the financial statements have been properly prepared in accordance with the Chari ti es Ac t 1993 ; and

the in formation given in the t rustees ' report is consistent with the f inancial statements.

u -, , e - ~ i t u 1~t)-N c OLOL Q

CHANTREY VELLACOTT DFK LLP

Opinion

In ou r opinion:

Ch a rtered Accountants

Registered Auditor

London

Date:

7



THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated statement of financial activities

Tota l incoming resources

Resources expended

Costs of generating funds

Charitable activ it ies

Governance costs

Total resources expended

Net incoming resources

for th e year before transfers

Movement in funds

Net income fo r th e year

Gains and losses on revaluations

and investment asset disposals

Surplus on revaluation

- Investment propert ies- Investments

Real ised (def ici t) /surplus on sale

of investment properties

Net movement in funds

Fund balances b rough t forward

Fund balances carr ied forward

Unres tr ic ted fundsGeneral D esignated 2007 2006

Notes funds funds Total Total

£ £ £ £

2 6 ,89 0,249 - 6,890,249 7,395,764

542,005 - 542,005 719,8893 29,069 - 29 ,069 186 , 109

21 5,6 9 3 - 215,693 233,603

7,677,016 - 7,677,016 8,535,365

4 922,774 - 9 22,774 1 ,362,083

5 6 ,289 ,665 - 6,289,665 6,740,097

6 23,000 - 23,000 23,000

7,235,439 - 7,235,439 8,125,180

441,577

14a

441,577

441 ,577 41 0,1 85

441,577 410,185

7a - 14 ,565,162 14,565,162 17,203,649

8 - 453,617 453,617 1,253,137

14a (16 ,429) ( 16,429) 1,340,422

441,577 15,002,350 15,443,927 20,207,393

27,231 ,548 1 17,522,1 67 144,753,715 124,546,322

27,673,125 132,524,517 160,197, 642 144,753,715

The notes on pages 1 3 to 24 form part of these financial statements

Year ended 5 April 2007

Incoming resources

Incoming resources from generated funds

Investment income

- Rental income- Bank in te rest

- O ther interes t

- D i vidends

8



THE CHARLESWOLFSON CHARITABLE TRUST

Trust statement of financial activities


Incoming resources

Incoming resources from generated funds

Investment income- Renta l i ncome

- Bank in te rest

- Other interest

- Div idends

Notes

2

3

Unres tr ic ted fundsGeneral Designated 2007 2006

funds funds Total Tota l

£ £ £ £

47,118

215,693

47,118 32,987

- 3,802

215,693 233,603

262,811 262,811 270,392

Incoming resources from charitable activities

Grants receivable fromBenesco Chari ty Limited 5,700,000 - 5,700,000 6,000,000

Tota l incoming resources 5,962,811 - 5,962,811 6,270,392

Resources expended

Costs of genera ting funds

Charitable activities

Governance costs

Total resources expended

Net incoming resou rces for th e year

4

5 5,817,057 - 5,817,057 6,134,026

6 4,000 - 4,000 4,000

5,821,057 - 5,821,057 6,138,026

141,754 141,754 132,366

Gains and losses on revaluations

and investment asset disposals

Surplus on revaluation of investments 8 - 453,617 453,617 1,253,137

Net movement in fund s 1 41 ,754 453,617 595,371 1,385,503

Funds balances brought forward 206 ,305 8,06 3,376 8,269,681 6,884,178

Fund ba lances carried forward 348,059 8,51 6 ,9 9 3 8,865,052 8,269,681


9




Consolidated balance sheet

5 April 2007

Notes 2007 2006

£ FFixed assets

Tangible assets 7a 145,214,001 132,359,001Investments 8 8,924,140 8,470,523

Intangible assets 9 - -

154,138,141 140,829,524

Current assetsDebtors 10 3,676,945 3,123,219

Cash at ba nk , inc luding deposits 12,905,733 10,299,688

16 , 582,678 13,422,907

Creditors: amounts falling due within one year 11 (7,749,500) (5,987,836)

Net current assets 8,833,178 7,435,071

Total assets less current liabilities 162,971,319 148,264,595

Creditors: amounts fall ing due after more th an one year 1 2 (2,773,677) (3,510,880)

Ne t assets 160,197,642 144,753,715

Unrestricted fundsGeneral funds 13 a 27,673,125 27,231,548

Designated funds 14 a 132,524,517 117,522,167

160,197, 642 144,753, 71 5

These f inanc ia l s ta tements have been approved by th e board of trustees and authorised for issue on

and s igned on thei r behal f . 1 1

Trustees

D r Levene


10



I

T HE CHARLES WOLFSON CHARITABLE TRUST

Trust balance sheet

5 April 2007

Notes 2007 2006

£ £

Fixed assets

Tangible assets 7b 1 1Investments 8 8,924,140 8,470,523

8,924,141 8,470,524

Current assetsDebtors 10 6,000,000 4,730,755

Cash at bank, inc luding deposits 600,615 922,552

6,600,615 5,653,307

Creditors: amounts falling due within one year 11 ( 4,636,027) (3,093,270)

Net current assets 1,964,588 2,560,037

Tota l assets less current liabilities 10,888,729 11,030,561

Creditors: amounts falling due after more than one year 12 (2,023,677) (2,760,880)

Net assets 8,865,052 8,269 ,681

Unrestricted funds

General funds 13b 348,059 206,305

Designated funds 14b 8,516,993 8,063,376

8,865,052 8,269,681

These financial statements have been approved b y the boa rd of trustees and authorised for issue on ~~~....and signed on their behalf.

A Wolfson

D r Levene


1 1

Trustees

: < 0 ' A a . . . .




Consolidated cash f low statement


Net cash inflow from operating activities

Notes 2007 2006

£ F

15a 129,005 1,847,088

Returns on investments and servicing of finance

Div idends rece ived 215,693 233,603

Interest received 567,614 746,005

Net cash inflow f rom returns on investment and servicing of finance 783,307 979,608

Capital expenditurePurchase of tangible fixed assets ( 204,838) (30,533,851)

Sale of tangible fixed assets 1,898,571 21,653,345

Net cash inf low/(outf low) from capital expenditure

Increase/(decrease) in cash in the year

1,693,733 (8,880,506)

15b, 15c 2,606,045 (6,053,810)


12




Notes to th e financial statements


1. Accounting policies

The f inancia l s tatements have been prepared in accordance with the Statement of Recommended Practice,

Accounting and Reporting by Charities (S ORP 2005) issued in March 2005, and applicable AccountingStandards. A summary of the more important accounti ng policies which have been consistently applied is se t ou t

below.

1.1 Account ing convent ion

The f inancial statements are prepared under the historical cost convention as modified by the revaluation of

certain f ixed assets.

1.2 Financial instruments

Financial assets such as c ash and deb to rs are measured at the present value of the amounts receivable, less an

allowance for the expected level of doubtful r ece ivables . F inanc ia l liabilities such as t rade c red i to rs , loan s a nd

f inance leases a re measured at the present value of the obligation. An equity instrument is any cont rac t that

evidences a residual interest in the assets of th e Trust after deduct ing all of its liabilities.

1.3 Basis of consolidationThe group financial statements consolidate the financial statements of the Trust and Benesco and its subsidiary

undertakings on a l in e b y line basis for the f inancial yea r ended 5 April 2007.

1.4 Designated funds

Designated funds are as follows:

Prope rty and investment capi ta l fund

Reali sed surp luses on th e disposal of investment proper ties and investments are t ransferred to the capital fund.

In the trustees' opinion this shou ld ensu re that there are suff ic ient funds to guarantee th e continued ex is tence of

the charity. Unreal ised revaluation surpluses are also transferred to the capital fund.

1 .5 Tangible fixed assets and depreciation

Investment prope rtiesInvestment properties are revalued annually and inc luded in th e balance sheet at their market value. The surplus

or defic i t over book va lue is t ransferred to the revaluation fund which forms part o f t he capi ta l fund. A l though this

accounting policy is in accordance with the appli cable account ing standard, SSAP 1 9, Accounting for investment

properties, it is a departure from the general requirement of the Companies Act 1985 fo r all tangible assets to be

depreciated. In the opinion of th e trustees compliance with the standard is necessary for the financial statements

to give a true and fair v iew . Dep rec ia tion is only one of th e many factors reflected in the annual valuat ion and th e

amount of this which might otherwise have been charged cannot be separately i den ti fi ed or quantified.

Office equipment and motor vehiclesDepreciat ion is charged a t th e following rates:

Off i ce equipment - 1 5% pe r annum on a reducing balance basis, o r 2 0% on a straight line basis

Motor vehi c le - 25% on a reducing balance basis

Capital isation policyIndiv idual i tems under £1,000 are no t capitalised un less part of a larger pro jec t o r asset purchase.

1.6 Fixed asset Investments

Fixed asset i nvestments ar e carried at market value. The surplus arising on revaluation is t ransferred to the

revaluation reserve which forms part of the property and investment capital fund.

1. 7 Income from investments

I ncome f rom investments is inc luded, together with the related ta x credi t , in the income and expenditure account

on the accruals basis.

1.8 Deposit and loan interest

Interest is inc luded in the income and expenditure account on a receivable basis.

13



i


Notes to th e financial statements (continued)


1 . Accounting policies (continued)

1.9 Provision of se rvices

The t rustees of the Trust and the directors of Benes co and it s subsidiary companies re ce ive no remunerat ion fortheir serv ices . Furthermore, no va lue has been attributed to the provision of services by the trustees or directors.

1.10 Incoming resources and resources expended

I nc om ing resou rces, in c lud ing rent and interest, are r ecogn ised when rece ivable. For leasehold investment

properties g round ren ts payable are netted aga inst r en t receivable f rom th at property to give a true and fair

reflection of property income.

Donations and l egac ies a re accounted for on a receivable basis . Grants payable are recognised in full at the

point at which a legal or constructive obligation arises. I f t hese obligations are fo r a period of greater than one

year, the creditor for the part due a fte r more than one year from the balance sheet date is disclosed as such. No

discount f ac to rs a re applied to such l iabil it ie s. All other r esour ces expended are recognised as they become

payable.

1 . 10 Service chargeAs agents of the g roup, MERJS Limited the group 's investment property managers, manage the serv ice charge

account on behalf of the tenants of the group's investment properties. All costs, including th os e re la tin g to th e

employment of 6 staff (2006: 1 2) a re reimbursed by the tenants.

These costs and reimbursements are not inc luded in the income and expenditure account of the g roup as they are

incurred solely on behalf of the tenants and consequent ly are deal t with in the servi ce c ha rg e a cc oun ts of MERJS

Limited with regard to each property.

2. Investment income - Rental incomeGroup T r u s t

2007 2006 2007 2006

£ £ £ £

Rents receivable 6,749,285 7,285,489 - -less: ground rents - (59,725) - -

Charitable rent foregone

6,749,285 7,225,764

140,964 170,000

Total rental income 6,890,249 7,395,764

3. Investment income - Other interestGroup T r u s t

2007 2006 2007 2006

£ £ £ £

Loan interest receivable 21,984 21,460 - -Other interest receivable 7,085 164,649 - 3,802

Total other interest 29,069 186 ,109

14

3,802






4. Costs of generating funds

Group Trust

Property expenses

Repa ir s, rates and other non-

rechargeable property expenses

Irrecoverable service charges

Prope rt y management expenses

Agents' management fees notrecoverable

Agents' rent review and letting fees

Legalexpenses

Total property expenses

5. Charitable activities

Gran ts payable ( see Note 20 )

Indemnity Insurance - charity

Indemnity Insurance - trustees

Consultancy & professional fees

General off ice expenditure

Sundry expenses

Medical advisor's expenses

Pension costs

Depreciation

2007 2006 2007 2006

£ £ £ £

337,629 356,444

(29,517) 340,794

308,112 697,238

348,024 305,765

116,071 133,504

150,567 225,576

614,662 664,845

922,774 1,362,083

Group T r u s t

2007 2006 2007 2006

£ £ £ £

6,148,925 6 ,620,660 5,786,592 6,100,200

13,686 13,686 4,687 4,687

521 521 521 521

63,474 59,702 10,635 8,923

23,174 27,307 2,552 1,582

27,891 221 76 113

- 1 ,025 - 1,025

11,994 14,001 11,994 14,001

- 2,974 - 2,974

6,289,665 6,740,097 5,817,057 6,134,026

No trustees were reimbursed fo r any expenses as trustees du ring thi s year or the previous year.

6 . Governance costs

Audi t fees

Group

2007 2006

£ £

23,000 23,000

T r u s t

2007 2006

£ £

4,000 4,000

15




Notes to the financial statements ( c o n t i n u e d )


7. Tangible f ixed assets

(a)Group Vehicle and

Investment prope rties officeFreehold Leasehold equipment Total

£ £ £ £

Cost or valuationAt 6 Apri l 2006 132,359,000 - 136 ,614 132,495,614

Addit ions 204,838 - - 204,838

Surplus on revaluation 1 4,565,1 62 - - 14,565,162

Disposals (1 ,915,000) - - (1,915,000)

At 5 April 2 007

Depreciation

At 6 April 2006

Charge fo r the yearDisposals

At 5 April 2007

1 45,21 4,000 - 1 36 ,6 1 4 1 45,350,6 1 4

1 36 ,6 1 3 1 36 ,6 1 3

136 , 6 13 136 ,613

Net book value

At 5 April 2 007 145,214,000 - 1 145,214,001

At 5 April 2006 1 32,359 ,000 - 1 132,359,001

The in ve stment p rope rtie s have been valued by the T rust's property managers on a market va lue basis as at

5 April 2007.

If stated under histori cal cost pr inc iples, the comparableamounts f or the investment proper ties would be:

2007 2006

£ £

Cost 68,981,215 69,512,951

16




Notes to the financial statements ( c o n t i n u e d )


7. Tangible fixed assets (continued)

(b) Trust

Cost or valuation

At 6 April 2006

Addit ions

Disposals

At 5 April 2007

Depreciation

At 6 April 2006

Charge fo r the year

Disposals

At 5 April 2007

Net book value

At 5 April 2007

At 5 April 2006

8. Fixed asset investments

Market va lue at 6 April 2006

Surplus on revaluation

Vehicle and

officeequipment Total

£ £

4 3 2 432

4 3 2 4 3 2

431 431

431 431

Group T r u s t

2007 2006 2007 2006

£ £ £ £

8,470,523 7,217,386 8,470,523 7,217,386

453,617 1 ,253,137 453,617 1,253,137

Market value at 5 April 2007 8,924,140 8,470,523 8,924,140 8,470,523

These investments are listed on the London International S to ck E x c hange. The Trust 's investments at

5 April 2006 consisted of o rd i na ry sha res in Burberry G roup plc and Great Un iver sa l S to res plc. At

5 April 2007, as a result of the restructuring of Great Universal Stores plc within the year under r ev iew, the

Trust's investments now consist of o rd ina ry sha res in Burberry G roup plc and the two newly-formed

companies of H ome Reta il Group plc and Experian plc. If stated under historical cost princ iples , the

comparable amounts for the investments would be :

Cost

Group T r u s t

2007 2006 2007 2006

£ £ £ £407,146 407,146 407,146 407,146

Cost represents th e market va lue of the investments at the date when they were settled on the Trus t.

17



THE CHARLES WOLFSON CHARITABLE TRUSTI Notes to the financial statements (continued)


9 . Intangible assets - Group

CostAt 6 April 2006 and 5 April 2007

Amortisation

At 6 April 2006 and 5 April 2007

Net book value

At 5 April 2006 and 5 April 2007

10. Debtors

Du e from managing agentsRent arrears

Service charges recoverable

Benesco Chari ty L im ited

Other deb tors and prepayments

Included with in group other deb tors and prepayments is a deposit of £630,500 rela ti ng to the purchase of an

investment property in Camden, London , the purchase ofwhich was completed in August 2007.

Group other debtors inc lude an amount of £300,000 (2006: £300,000) which is due after one year.

11 . Creditors: amounts falling duewithin one year

Other taxes and social security

Other credi tors

Accruals and deferred income

Grants committed

Goodwill

£

59,186

59,186

Group T r u s t

2007 2006 2007 2006

£ £ £ £

2,489,081 2,374,823 - -

57,505 269,969 - -

37,368 17,001 - -

- - 6,000,000 4,700,000

1,092,991 461,426 - 30,755

3,676,945 3,123,219 6,000,000 4,730,755

Group T r u s t

2007 2006 2007 2006

£ £ £ F -

174,557 206,029 - -

246,135 199 ,235 - -

1,950,285 1,745,842 7,504 6 ,540

5,378,523 3,836,730 4,628,523 3,086,730

7,749,500 5,987,836 4,636,027 3,093,270

1 2. Creditors: amounts falling due aftermore than oneyear

Grants committed

Group T r u s t

2007 2006 2007 2006

£ £ £ £

2,773,677 3,510,880 2,023,677 2,760,880

18




Notes to the financial statements (c o n t i n u e d )


13 . General fund

a) Group

At 6 April 2006Net movement in funds

At5 April 2007

2007 2006

£ £

27,231,548 26,716 ,248441,577 515,300

27,673,125 27,231,548

b) Trust

At 6 April 2006

Net movement in funds

At 5 April 2007

14 . Designated funds

a) Group

B At 6 April 2006

Movement in fundMovement due to revaluation in year

Realised (deficit)/ surplus on sale

of investment prope r t ies

At 5 April 2007

b) Trust

At 6 April 2006

Movement due to revaluation in year

At 5 Apri l 2007

2007 2006

£ £

206,305 73,939

141 ,754 132,366

348,059 206,305

Prope rty and investment

capital fund

Realised Unrealised

surplus on revaluation 2007 2006

disposal reserve Total Total

£ £ £ £

46,612,742 70,909,425 117,522,167 97,830,074

(105 ,115 )15,018,779 15,018,779 18,456,786

1 ,161 ,997 (1 ,178,426) ( 16,429) 1,340,422

47,774,739 84,749 ,778 132,524,517 117,522,167

Prope rty and investment

capital fund

Realised Unrealisedsurplus on revaluation 2007 2006

disposal reserve Total Total£ £ £ £

8,063,376 8,063,376 6,810,239

453,617 453,617 1,253,137

8,516,993 8,516,993 8,063,376

19




Notes to the financial statements (c o n t i n u e d )


1 5. Notes to the cash flow statement

a) Reconciliation of net income for the year to

net cash inflow from operating activities

2007 2006

£ £

Net income for th e year

Dividend receivable

Interest receivable

Depreciation

( increase)/decrease in debtors

Increase/(decrease) in credi tors

Net cash in fl ow from operating activities

b) Analysis of changes in net debt

27,673,125 132,524,517 160 , 197 ,642

Trust G eneral Designatedfund funds Total

£ £ £

Fixed assets 407,1 48 8,51 6 ,9 93 8,924,141

Current assets 6 ,600 ,615 - 6 ,600 ,615

Creditors (6,659,704) - (6,659,704)

348,059 8,51 6 ,9 93 8,865,052

C ash at bank and in hand

441,577 410 ,185

(215,693) (233,603)

(571,074) (741,349)

- 2,974

(550,266) 2,765,853

1,024,461 (356,972)

129,005 1,847,088

At 6 A p r i l A t 5 A p r i l

2006 Cashflow 2007

£ £ £

10,299 ,688 2,606,045 12,905,733

c) Reconciliation of net cashflow to movement in netdebt

Increase/(decrease) in cash in the year

Net funds at th e beginning of the year

Net funds at the end of the year

2007 2006

£ £

2,606,045 (6,053,810)

10 , 299,688 16,353,498

12,905,733 10, 299 ,688

16 . Analysis of ne t assets between funds

Group General Designated

Funds funds Total

£ £ £

Fixed assets 21,613,624 132,524,517 154,138,141

Current assets 16,582,678 - 16,582,678

Creditors (10,523,177) - (10,523,177)

1 7. Related party transactions

These f inancial statements inc lude the costs of legal expenses amounting to £156,055 (2006: £332,952) provided

to the group by i ts so li c itors Wi l li am Sturges & Co, of which M M Franks, company secretary of Benesco Charity

Limited, is a partner. This represents professional fees charged at commercial rates. £150,567 (2006: £225,576)is inc luded in direct property expenses and the balance of £5,488 (2006: £107,376), which relates to th e sale of

assets, ha s been se t agains t the sa le proceeds .

2 0





1 8. Subsidiary undertakings

Interests in group undertakings at the balance sheet date are as follows:


Name of undertaking

Proportion of nominal

Description value of issued

Country of of shares shares held by

incorporation held Group Trust

Benesco Charity Limited England (See note below)

Heath Retail Holdings Limited Eng land £1 Ordinary 100% 100%

Heath Retail One Limited England £1 Ordinary 100% -

Benesco Chari ty L im ited is a company limited by guarantee. The company c onsid e rs T he Charles Wolfson

Char itable Trust to be its holding organisation.

The p rin c ipal activity of Benesco Char ity L im ited continued to be the management of funds invested mainly in

property to r aise money for distribution to charity.

1 9 . Capital commitments

Committed to but not provided for

in the financial statements

Group T r u s t

2007 2006 2007 2006

£ £ £ £

302,840 151 ,260

2 1






20. Donations

Medica l research & facilities

Acquired Aphasia T rus t

Asthma UK

British Diabetic Associat ion

British Dyslexics

British Heart Foundation

Cancer Resear ch UK

Chai Cancer Care

Heartline Associat ion

Hemi Help (Cerebra l Pa lsy)

Inst itute for Complementary Medic ine

Institute ofOrthopaedics

King Edward V II 's Hospita l

Lee Smith Research Foundat ion

Leukaemia Research Fund

Marie Curie Cancer Care

MIND

Multiple Sc leros is Resource Centre

Prostate Cancer Research Cent re

Speech Language & Hearing Centre

Spinal ResearchSt. Marks Hospital Foundation

Tavistock Trust for Aphasia

University ofOxford-Surgery

5,00050,000

5005,000

1,000

2002,500

1,000

2,000

84,055

1,450

5,00022,500

10,0001,000

500

2,00010,000

5,000

50,000500

5,000

87,196

351,401

Education

Angela Ruskin University

>BEFORE Trust

t

4

Bntish Fnends o f t he Anel Inst itute

CE R

Chi cken Shed Theatre Trust

Dyson Perr ins Museum Trust

Federation of Synagogues

FSET PoliteiaHasmonean Pr imary School

Highbury Grove School

Holocaust Educational TrustImmanuel College

Inst itute for Pol icy ResearchJewish Music Institute

Jews Free School

London Jewish Cultural Centre

United Synagogue

19 ,910

25,000

35,000

10,0001,000

5,0003,750

10,000

33,11247,419

25,0001,000

5,0006,0002,000

15,000

5,000

249,191

22






20. Donations (continued)

Welfare

Aguda Israel Organisation of GB

AISH Hatorah

Anglo- Israe l Associat ion

Aspire

Breakaway

British Friends of th e Jaf fa Inst itute ( for ch i ldren)

British WIZO

Central Schoo l of Ballet

Central Synagogue General Charities Fund

Centre for Jewish Chr is t ian Relations

Changing Faces

Che lsea Pensioners Appea l

Civitas

Colfe's Charitable TrustCommunity Security Trust

Council for a Beautiful Israel

Cricket Foundation

Dogs for th e Disabled

Duke of York Sports Foundat ion

Dunkirk Little Ships Restoration Trust

Eastside Young Leaders Academy

Elephant Family

Fenely LibraryFoundation & Friends of Royal Botanic Gardens Kew

Friends of Beit Issie Shapiro

Friends of Bnei Akiva

Friends ofGeneral Orphans H ome f or Girls - Jerusalem

Hampstead TheatreHannah Levy House

Home Farm T r u s t

Hospi ta l Kosher Mea ls Service

Institute of Economic Affairs

1 . Rescue

Israel Diaspora TrustJewish Care

Jewish Marriage Council

Level 2 Youth Projec t

Listening Books

Lord Lieutenants Fund for Youth in Cornwall

Lords TavernersMaccab i GB

MudchuteNational Chi ldrens Or ches tr a o f GB

National Youth Theatre of G B

Nightingale House Home for Aged Jews

North London Hospice Group

Norwood

Ohel Sa rahOutward Bound Trust

Peace Insight

Perdiswell Young Peoples Leisure Clubs

Policy Exchange

Primary Club

Rainbow Trust

Remap

Subtotal carried forward to next page

2 3

4,750150,000

5,000

500

7,5001,000

1,000

500

10,000

5,0001,000

500,00020,000

2,00060,0005,000

1,000

500

10,0001,000

5,000

1,000

2,000

41,00010,000

25,0004,750

5,0005,0004,000

500

10,0005,000

2,000

350,000

1,000

1,0005,000

1,000

5001,500

2,0001,000

500150,000

7,50010,000

2,500250

1,000

3,00075,000

500

5,0002,000

1,526,250



L


Notes to th e f inancial statements (continued)


20 . Donations (con t inued )

Welfare (cont inued)

Subtotal brought forward f rom prev ious page

Richard House Chi ldren's Hospice

Royal College ofMusic

Safe Hounds

Shabaton Choir

Social Affairs Unit

SSAFA Forces Help Central Office

3C's Charity

Trinity College Ho liday Scheme

United Trusts

University Chaplaincy Board

Whee l Powe r

Wooden Spoon SocietyWor ld Jewish Relief

ZS V Trust

1,526,250

2502,000

5,000

5,00010,000

1,000

5002,000

30,000

1,000

1,000

500

1 , 0 0 0

500

1,586,000

Provision for committed future grant payments

Oxford Radcliffe (Professor Aziz)

Optima

Great Ormond Street Hospital (ECMO Unit)

Cambridge University

200,000

400,000

1,000,0002,000,000

3,600,000

Total -Trust

Other

B'nai Br ith H i ll el Foundat ion (Bournemouth)

Child Bereavement Trust

B'nai Brith Hillel Foundat ion (Leicester)

Magen David Adorn UK

5,786,592

6,052

21 ,984

93,333100,000

221,369

Rentals foregone on charitably let properties

B'nai Brith Hillel Foundation

Family Wel fare Associat ion

118 ,964

22,000

140 ,964

Total - Group 6 ,148,925

Date post:	30-May-2018
Category:	Documents
Upload:	spin-watch
View:	216 times
Download:	0 times

The Charles Wolfson Charitable Trust Accounts 2007

Documents