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2021-04-05-accounts

Charity number: 1002594

BRITISH FRIENDS OF OR CHADASH ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

BRITISH FRIENDS OF OR CHADASH

CONTENTS

Page
Reference and administrative details of the charity, its trustees and advisers 1
Trustees' report 2 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 13

BRITISH FRIENDS OF OR CHADASH

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2021

Trustees

Rabbi C Vahab

C Rayden B Perl MBE

Charity registered number

1002594

Principal office

Suite 2 De Walden Court 85 - 89 New Cavendish Street London W1W 6XD

Accountants

Blick Rothenberg Limited Chartered Accountants 16 Great Queen Street Covent Garden London WC2B 5AH

Bankers

National Westminster Bank Plc PO Box 2027 125 Great Portland Street London W1A 1GA

Page 1

BRITISH FRIENDS OF OR CHADASH

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their annual report together with the financial statements of British Friends of Or Chadash for the year 6 April 2020 to 5 April 2021.

Structure, governance and management

a. Methods of appointment or election of trustees

The trust deed states that the charity should have a minimum of three trustees. Trustees are appointed by a majority of existing trustees in accordance with the trust deed and are given an induction, which involves an awareness of a trustee's responsibilities, the governing document, administrative procedures, the history and philosophical approach of the charity.

b. Organisational structure and decision-making

The charity was established by a trust deed dated 5 February 1991. All matters of policy are taken by the trustees in general meetings. Day to day management of the charity is delegated to Rabbi C Vahab.

c. Risk management

The trustees examine the major risks that the charity faces each financial year, and have developed systems to monitor and control these risks to mitigate any impact they may have on the charity in the future.

Objectives and activities

a. Policies and objectives

The objects of the charity are:

There have been no changes in the objectives of the charity during the year. The trustees are confident that donations provided during the year satisfied the objectives of the charity and intend to continue making donations at their discretion in the forseeable future.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning for the future.

b. Grant-making policies

The charity itself operates only in a grant-making capacity; it is not a functional charity having fixed costs or other forward obligations. The trustees are entitled to, and do, apply income and capital for the funding of the activities of Girls' Town Or Chadash, a charity registered in Israel and it is not their practice to commit themselves in advance to specific expenditure on future planned activities.

Page 2

BRITISH FRIENDS OF OR CHADASH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Achievements and performance

a. Review of activities

The trustees present their financial statements for the year ended 5 April 2021 which show income for the year of £67,240 (2020: £81,813) and charitable donations of £43,660 (2020: £78,890). Donations received include the conversion of the loan from the Huntingdon Foundation of £12,500. After support costs, the overall movement in fund balances for the year was a increase of £16,925 (2020: decrease of £2,589).

b. Income generation

The charity achieved its objectives for the public benefit by raising funds for, and donating a total, of £43,660 (2020: £78,890) to the Girls' Town Or Chadash in Israel during the year. Or Chadash is a voluntary aided school in Israel providing education to girls from disadvantaged homes.

The charity does not fundraise from the general public but from a network of supporters in the UK. It maintains contact with those indviduals to target fundraising.

Financial review

a. Reserves policy

The trustees have taken the view that at this stage they do not need to have in place a reserves policy. Reserves as at 5 April 2021 comprise a general purpose fund. This fund had a deficit of £2,919 (2020: deficit of £19,844).

The deficit arises because the charity has unpaid creditors which exceed the cash balance. The Trustees are making plans to pay the creditors more promptly to return the charity to positive funds.

b. Deficit

There is a deficit on general funds of £2,919 (2020: deficit of £19,844).

The trustees have assessed the expected future donations and have agreed an appropriate repayment plan with creditors, so that the charity can return to surplus.

Plans for future periods

The charity plans to continue to raise funds and donate them to Girls' Town Or Chadash in the forseeable future.

Page 3

BRITISH FRIENDS OF OR CHADASH TRUSTEES. REPORT ICONTINUED) FOR ThE YEAR ENDED 5 APRIL 2021 Statement of tru•t•M' r•sp(Thlbllllles The trustee5 ve responsible for PTeparwvJ the tru6tee8' report and the fi'nanc￿1 stat￿nentS In accordance wtth applicabb law ¥nd United lQ'ngdThn Accounting StarKlants (United Wdom Generally Accepted Accounting PrxtKel. The l&Y applicable to charities kn England & Wthg requwes the trusieeg to Fry)ar• finarKial statements ts each finan¢ial year wthi¢h 9i¥p a tnm and lair of state of affairs of the charity and of its incoming resources and opplicion of resouTCOS, Incl￿11￿ its wKome and expendiiure. for that perh￿. In preparM19 thèBe financial statements. the trustee8 are reqund to: select Suitthle ￿Counti￿a pcAicies and Ihen apply Ihem consi8tenty. ob8enM the methods ar￿ princpjes ofthe Charitie8 SORP IFRS 102).. m&ke judgments and accountiig est•natss that aro reason8bta and prudgnl" 8tat8 whether applicable UK Accounting Slandards (FRS 102) hava bggn fOlhyw￿. Suty.￿t to any material departures discbsed and expbin6d in the finan¢ial $tat¢m6nts" prepare the financial statements w the goirvJ Con￿ basis unless it is inewopriate to presume that the ¢hanty will c(rtinu8 in bu3in8ss. The tnffjtees are responslbfe for keep￿ adequate a(x￿nting are ¥vfficienl to show and explain th8 ¢hariV8 tran&￿tIonS and di%clotse with Ttssonablg acGurary * any tyne the firwcial position of the charity and enable them lo ensure that the finanaaf statements compty with the Charitm Act 2011. the Charity (Accounts and Reports) Regulat￿nS 2(K)8 and the provisions of the Trust deed. Thty arn a150 rosponsibkn for safeguarding the assets of the charity and hence for tsknng r￿Sonab￿ Sty for th8 PT8ventK)n and detection of fraud and other irregularibe5. Approved by onser of the ofthe board of aThl iigned ￿ tI￿r bthair ty.. C Raydon Trustee Data: 7 February 2022 Page 4

BRITISH FRIENDS OF OR CHADASH INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 5 APRIL 2021

Independent examiner's report to the trustees of British Friends of Or Chadash ('the charity')

I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the 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 been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: Ye 7 t (oe =) Dated: 7 February 2022 Mark Hart FCA CTA

Blick Rothenberg Limited

Chartered Accountants 16 Great Queen Street Covent Garden London WC2B 5AH

Page 5

BRITISH FRIENDS OF OR CHADASH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
Income from:
Donations and legacies
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
67,240
67,240
196
50,119
50,315
16,925
(19,844)
16,925
(2,919)		 Total
funds
2021
£
67,240
67,240
196
50,119
50,315
16,925
(19,844)
16,925
(2,919)		 Total
funds
2020
£
81,813
81,813
200
84,202
84,402
(2,589)
(17,255)
(2,589)
(19,844)

The notes on pages 8 to 13 form part of these financial statements.

Page 6

BRITISH FAIENDS OF OR CHADASH BALANCE SHEET FOR THE YEAR ENDED S APRIL 2021 20 2020 Currnnt •s••ts Debtors Cash 8t bank and in harKI 800 232 6.164 1,032 Cr•ditors'. ￿ounts faling ilhin ong 110.7ZJ) 120,8781 Net current Ilabllltl•• 12.919 (19,8441 Totsl asmts lem cun•nt Ilabllltl•• (2,9191 (19,8441 Totsl n•1 Ilablllllfjs (2.9191 (19.8441 Ch•rlty funds Reslricted funds Unrestrirled funds (2.9191 (19,844) Total fvnds 12.919) 119.844) The finan￿￿ statements apwrynd f•KI authcffi8•d for issue ty the trustees and sign•J on their behaff by: C Rayd•n Trustee D9: 7 February 2022 The nol08 on pages 8 10 13 fNm part of these financial stat￿*￿. Page 7

BRITISH FRIENDS OF OR CHADASH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements are presented in Sterling (£).

British Friends of Or Chadash meets the definition of a public benefit entity under FRS 102.

1.2 Going concern

The charity operates only in a grant-making capacity; it is not a functional charity having fixed costs or other forward obligations. The trustees are entitled to, and do, apply income and capital for the funding of the activities of Girls' Town Or Chadash, a charity registered in Israel and it is not their practice to commit themselves in advance to specific expenditure on future planned activities. Therefore, the trustees consider the going concern basis to be appropriate.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Page 8

BRITISH FRIENDS OF OR CHADASH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. Accounting policies (continued)

1.5 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

The costs of generating voluntary income comprise those costs associated with fundraising by the charity.

1.6 Interest receivable

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.

1.7 Concessionary loans

Concessionary loans are initially recorded at the consideration received and are subsequently held at amortised cost based on the implied interest rate of the loan.

1.8 Financial instruments

The charity has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the charity becomes party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

The charity’s policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Page 9

BRITISH FRIENDS OF OR CHADASH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. Accounting policies (continued)

Financial instruments (continued)

Impairment of financial assets

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2. Income from donations and legacies

Unrestricted Total
funds funds
2021 2021
£ £
Donations 67,240 67,240

Included within donations received is the conversion of the loan from the Huntingdon Foundation.

Page 10

BRITISH FRIENDS OF OR CHADASH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. Income from donations and legacies (continued)

Unrestricted Total
funds funds
2020 2020
£ £
Donations 81,813 81,813

3. Costs of raising voluntary income

Unrestricted
funds
2021
£
Travel, subsistence and telephone
196
Unrestricted
funds
2020
£
Travel, subsistence and telephone
200		 Total
funds
2021
£
196
Total
funds
2020
£
200

4. Analysis of expenditure by activities

Grant
funding of Support Total
activities costs funds
2021 2021 2021
£ £ £
Direct costs 43,660 6,459 50,119

Page 11

BRITISH FRIENDS OF OR CHADASH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

4. Analysis of expenditure by activities (continued)

Grant
funding of Support Total
activities costs funds
2020 2020 2020
£ £ £
Direct costs 78,890 5,312 84,202

5. Grants to Institutions

Donations to Girls' Town Or Chadash
Donations to Girls' Town Or Chadash		 Grants to
Institutions
2021
£
43,660
Grants to
Institutions
2020
£
78,890		 Total
funds
2021
£
43,660
Total
funds
2020
£
78,890

6. Net expenditure

There were no employees during the year or the previous year. No trustee received any remuneration (2020: £Nil) for their services and no trustee was reimbursed for expenses incurred on behalf of the charity.

7. Debtors

2021 2020
£ £
Other debtors 1,640 800

Page 12

BRITISH FRIENDS OF OR CHADASH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

8. Creditors: Amounts falling due within one year

Other loans
Accruals		 2021
£
-
10,723
10,723		 2020
£
12,500
8,376
20,876

Other loans comprised an interest free loan from The Huntingdon Foundation which was repayable on demand. The loan was converted into a donation in the year.

9. Statement of funds

Statement of funds - current year

Unrestricted funds
General Fund
Statement of funds - prior year
Unrestricted funds
General Fund		 Brought
forward
£
(19,844)
Brought
forward
£
(17,255)		 Income
£
67,240
Income
£
81,813		 Resources
expended
£
(50,315)
Resources
expended
£
(84,402)		 Balance at 5
April 2021
£
(2,919)
Balance at
5 April 2020
£
(19,844)

10. Controlling party

The trustees consider there to be no ultimate controlling party.

Page 13