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8/9/2019 The Charles Wolfson Charitable Trust Accounts 2007
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ty
Charity Regis t rat ion Number 238043
The CharlesWolfson Charitable Trust
Financial statements
5 April 2007
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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
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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.
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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).
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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.
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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.
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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.
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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:
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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
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THE CHARLESWOLFSON CHARITABLE TRUST
Trust statement of financial activities
Year ended 5 April 2007
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
The notes on pages 1 3 to 24 form part of these financial statements
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THE CHARLES WOLFSON CHARITABLE TRUST
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
The notes on pages 1 3 to 24 form part of these financial statements
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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
The notes on pages 1 3 to 24 form part of these financial statements
1 1
Trustees
: < 0 ' A a . . . .
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THE CHARLES WOLFSON CHARITABLE TRUST
Consolidated cash f low statement
Year ended 5 April 2007
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)
The notes on pages 1 3 to 24 form part of these financial statements
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements
Year ended 5 April 2007
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.
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i
THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements (continued)
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements (continued)
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to the financial statements ( c o n t i n u e d )
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to the financial statements ( c o n t i n u e d )
Year ended 5 April 2007
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.
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THE CHARLES WOLFSON CHARITABLE TRUSTI Notes to the financial statements (continued)
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to the financial statements (c o n t i n u e d )
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to the financial statements (c o n t i n u e d )
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements (continued)
1 8. Subsidiary undertakings
Interests in group undertakings at the balance sheet date are as follows:
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements (continued)
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e financial statements (continued)
Year ended 5 April 2007
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
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THE CHARLES WOLFSON CHARITABLE TRUST
Notes to th e f inancial statements (continued)
Year ended 5 April 2007
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