REGISTERED CHARITY NUMBER: 1003102
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
FOR
THE GEVURATH ARI TORAH ACADEMY TRUST
Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
THE GEVURATH ARI TORAH ACADEMY TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement of Financial Activities | 6 | ||
| Statement of Financial Position | 7 | ||
| Statement of Cash Flows | 8 | ||
| Notes to the Statement of Cash Flows | 9 | ||
| Notes to the Financial Statements | 10 | to | 14 |
| Detailed Statement of Financial Activities | 15 |
THE GEVURATH ARI TORAH ACADEMY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES Objectives and aims
To Advance education in and the religion of the orthodox Jewish Faith.
The Objects of the Charity and how it is attempting to achieve them
Objectives and activities
The trust was set up under a deed of trust and the object of the charity is to support financially the "Gevurath Ari Torah Academy" in North Jerusalem, Israel, which extends major bursaries to gifted scholars of the Talmud, thus enabling them to devote at least ten hours a day (five days a week) to their target of completing in-depth study of all 63 tractates of the Talmud, together with the main commentaries and the work of earlier and later codifiers. The ultimate decision regarding who is to be considered eligible (i.e. competent) for financial support, rests with the trustees in the UK. This is in accordance with the Charity Commission's stipulation, insofar as the projects are assisted and maintained through funds emanating from the UK. With regard to the specific sum to be allotted to each individual, this too (by the Charity Commission's stipulation) is determined by the trustees who take into obvious consideration the number of children in the family, their ages, special needs if any and other aspects that have pertinent bearing on this issue. The trustees in London, in conjunction with the faculty of the Academy, make exhaustive enquiries as to the capabilities of potential recipients, the result of this being the fortifying fact that to date each and every student chosen for the project has satisfied the examiners.
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THE GEVURATH ARI TORAH ACADEMY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
OBJECTIVES AND ACTIVITIES
Public benefit
In compliance with Charity Commission requirements, the trustees confirm herein in their annual report that they have had due regard for the Commission's public benefit guidance. With this in mind the trustees wish to state that their efforts to further authentic Torah education is to be seen as a public benefit of no mean stature. The reason for this is as follows:
The Jewish nation since its inception at Mount Sinai has been instructed to deem the study and knowledge of the Torah as its foremost obligation, without which the continuity of the nation as a whole is in peril of coming to a close and it is no idle statement that the Jews are the "People of the Book". By tradition, the oral law given to Moses - the Talmud - is no less important than the written law (the Five Books and Scriptures). Accordingly, diligent study of the Talmud carried on to the present day, has throughout the ages been looked upon by both Jewish luminaries and learned laymen as the most elevated act of service to the Al-mighty, to the Jewish people, indeed to all inhabitants of the world. The reason for this, as laid down manifold in the Torah itself, is that by virtue of the Al-mighty's will being done, He looks with a benign eye upon all of His creation, the result of which is magnanimous munificence to all of mankind. Apart from this, though it is not here the platform to elucidate upon the spiritual treasures contained in the Holy Scriptures and Talmud, suffice to say that students who imbibe these laws and ethics and later impart their efforts to others, are most certainly a source of benefit to all with whom they come into contact. In this way, by virtue of its vibrant activity of supporting study of the Talmud, the "Gevurath Ari Torah Academy Trust" (established in the UK in 1991) sees itself as a benefactor to mankind as a whole. This was the object of its establishment, an aim that is being pursued today with undiminished vigour.
The Talmudical academy of the same name, (Gevurath Ari literally translated means "Strength of the Lion"), was founded in the ancient city of Jerusalem in the year 1984 as a monument to the memory of His noble Excellence, Dean of the "Mir" Grand Talmudical Academy (founded in Polish Lithuania in 1814), Rav Chaim Leib (Lion) Shmulevitz obm (1903-1979), himself a monumental pillar of Talmud knowledge and princely good traits who instructed tens of thousands along the enviable path of the Torah, trust and integrity. The Gevurath Ari Torah Academy is today an eminent bastion of diligent Talmud study, and the trust is maintaining the academy's yearly budget in its entirety, views with pride and satisfaction the fulfilment of the role it has chosen for itself. This is the role that is as has been and will remain unchanged, whereby prosperity - spiritual and material - will take the place of strife and bloodshed, even in all corners of the world.
During the course of the outgoing year, as indeed during preceding years, the trustees raised funds by approaching knowledgeable laymen of means in the business world, all of whom have either visited the academy or have first-hand report of its educational activities and unique achievements. The number of supporters is relatively small in comparison to other organisations. It is the belief of the trustees to devote concerted effort in eliciting larger financial assistance from a few than smaller sums from the many. The success of this approach is happily due to the increasing eminence the academy is gaining amongst prestigious houses of learning. Additionally, the trustees who have access to world Jewish leaders, laymen and educationalists alike, ask of them to intercede with wealthy supporters with the result that the Gevurath Ari Torah Academy is not categorised as just another academy in quest of funds.
Objectives and activities
In retrospect, the extent to which the trust has achieved its charitable aims, can be judged by the considerable number of students enrolled to take part in the project. The academy is after all enabled to enrol students only by virtue of its trust's ardent fundraising. Thousand upon thousands of hours devoted by gifted scholars to in-depth study of laws pertaining to all aspects of the ancient Jewish religion still adhered to in our day, will most definitely yield impressive result in the direction of enhancing the lives of religiously inclined people the world over, a public benefit of no mean stature. Indeed it is the public benefit factor that is in the mind of the trustees in all decisions. This is because apart from being a legal requirement as enacted by the Charity Commission for England and Wales, it is receiving feedback from the academy's faculty in Jerusalem, as well as from its beneficiaries (i.e. the students), as to how they are progressing, and suggestions by the trustees for yet more improvement are always well received and acted upon wherever relevant.
ACHIEVEMENT AND PERFORMANCE
Achievement and performance
The charity has raised £676,193 (2020 : £1,212,711) to achieve its objective stated above, all of this is paid over to the Academy in Israel or in student bursaries to provide much needed funding there.
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THE GEVURATH ARI TORAH ACADEMY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
FINANCIAL REVIEW
Reserves policy
The trust's policy on reserves is that it tries to maintain as little reserves as possible as it feels that the funds are better expended than reserved.
On the odd occasion that there are surplus fund for a few days or weeks, theses are placed on treasurers deposit at the best available rates with the trust's bankers.
The Statement of Financial Activities shows a net deficit for the year of £2,977 (2020 £71,688) .This will be netted off against the unrestricted reserves brought forward. The unrestricted reserves fund as at 31st March 2021 was £-280,477 (2020 : £-277,500).
Future plans
These are to continue support to the fullest possible extent of the "Gevurath Ari Torah Academy" thus enabling very gifted students of the Talmud to continue their studies unhampered by financial worries.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Organisational structure
There are three trustees as stated below. They meet on a regular basis to discuss the affairs of the trust. The frequency of the meetings depends on the location of Rabbi Baddiel who is often found continuing his good work and lecturing to students in Israel. All decisions are based on a majority decision of the trustees but in almost all cases the votes are unanimous.
The trustees have the power of appointment of trustees provided that a majority of the trustees should be resident in the United Kingdom.
Related parties
All donations shown in the accounts are to The Gevurath Ari Torah Academy, a registered Israeli charity.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1003102
Principal address
18 Darenth Road Stamford Hill London N16 6EJ
Trustees
Rabbi Y C Baddiel C Lopian A Hercz
Independent Examiner
Malcolm Venitt A.C.A. Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
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THE GEVURATH ARI TORAH ACADEMY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
Approved by order of the board of trustees on 22 December 2021 and signed on its behalf by:
Rabbi Y C Baddiel - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE GEVURATH ARI TORAH ACADEMY TRUST
Independent examiner's report to the trustees of The Gevurath Ari Torah Academy Trust
I report to the charity trustees on my examination of the accounts of The Gevurath Ari Torah Academy Trust (the Trust) for the year ended 31 March 2021.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of A.C.A. which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
Malcolm Venitt A.C.A. Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
22 December 2021
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THE GEVURATH ARI TORAH ACADEMY TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 EXPENDITURE ON Charitable activities 3 Grants to Institutions Other Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31.3.21 Unrestricted fund £ 676,193 676,170 3,000 679,170 (2,977) (277,500) (280,477) |
31.3.20 Total funds £ 1,212,711 1,281,399 3,000 1,284,399 (71,688) (205,812) (277,500) |
|---|---|---|
The notes form part of these financial statements
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THE GEVURATH ARI TORAH ACADEMY TRUST
STATEMENT OF FINANCIAL POSITION 31 MARCH 2021
| 31.3.21 Unrestricted fund Notes £ CURRENT ASSETS Cash at bank 72,523 CREDITORS Amounts falling due within one year 8 (303,000) NET CURRENT ASSETS/(LIABILITIES) (230,477) TOTAL ASSETS LESS CURRENT LIABILITIES (230,477) CREDITORS Amounts falling due after more than one year 9 (50,000) NET ASSETS/(LIABILITIES) (280,477) FUNDS 11 Unrestricted funds (280,477) TOTAL FUNDS (280,477) |
31.3.20 Total funds £ 28,500 (306,000) (277,500) (277,500) - (277,500) (277,500) (277,500) |
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 22 December 2021 and were signed on its behalf by:
A Hercz - Trustee
The notes form part of these financial statements
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THE GEVURATH ARI TORAH ACADEMY TRUST
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| 31.3.21 | 31.3.20 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Cash flows from operating activities | |||
| Cash generated from operations | 1 | (5,977) | (68,688) |
| Net cash used in operating activities | (5,977) | (68,688) | |
| Cash flows from financing activities | |||
| New loans in year | 50,000 | - | |
| Net cash provided by financing activities | 50,000 | - | |
| Change in cash and cash equivalents in | |||
| the reporting period | 44,023 | (68,688) | |
| Cash and cash equivalents at the | |||
| beginning of the reporting period | 28,500 | 97,188 | |
| Cash and cash equivalents at the end of | |||
| the reporting period | 72,523 | 28,500 |
The notes form part of these financial statements
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | |||
|---|---|---|---|
| 31.3.21 | 31.3.20 | ||
| £ | £ | ||
| Net expenditure for the reporting period (as per the Statement of | |||
| Financial Activities) | (2,977) | (71,688) | |
| Adjustments for: | |||
| (Decrease)/increase in creditors | (3,000) | 3,000 | |
| Net cash used in operations | (5,977) | (68,688) | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| At | 1.4.20 | Cash flow | At 31.3.21 |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 28,500 | 44,023 | 72,523 |
| 28,500 | 44,023 | 72,523 | |
| Debt | |||
| Debts falling due after 1 year | - | (50,000) | (50,000) |
| - | (50,000) | (50,000) | |
| Total | 28,500 | (5,977) | 22,523 |
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. DONATIONS AND LEGACIES
| Donations Gift aid |
31.3.21 £ 676,193 - 676,193 |
31.3.20 £ 1,159,461 53,250 |
|---|---|---|
| 1,212,711 |
continued...
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
3. CHARITABLE ACTIVITIES COSTS
| Grants to Institutions 4. GRANTS PAYABLE Grants to Institutions 5. SUPPORT COSTS Other resources expended |
31.3.21 £ 676,170 |
Grant funding of activities (see note 4) £ 676,170 31.3.20 £ 1,281,399 Governance costs £ 3,000 |
|---|---|---|
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies EXPENDITURE ON Charitable activities Grants to Institutions Other Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward |
Unrestricted fund £ 1,212,711 1,281,399 3,000 |
|---|---|
| 1,284,399 | |
| (71,688) (205,812) |
continued...
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
| 7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | ||
|---|---|---|---|---|---|---|
| Unrestricted | ||||||
| fund | ||||||
| £ | ||||||
| TOTAL FUNDS CARRIED FORWARD | (277,500) | |||||
| 8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||||
| 31.3.21 | 31.3.20 | |||||
| £ | £ | |||||
| Other creditors | 303,000 | 306,000 | ||||
| 9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN | ONE YEAR | ||||
| 31.3.21 | 31.3.20 | |||||
| £ | £ | |||||
| Bank loans (see note 10) | 50,000 | - | ||||
| 10. | LOANS | |||||
| An analysis of the maturity of loans is given below: | ||||||
| 31.3.21 | 31.3.20 | |||||
| £ | £ | |||||
| Amounts falling due in more than five years: | ||||||
| Repayable by instalments: | ||||||
| Bank loans more 5 yr by instal | 50,000 | - | ||||
| Bank loan represents £50,000 received under Bounceback Loan Scheme (BBL). The loan is unsecured, interest | ||||||
| free for the first year, then capped at 2.5% and guaranteed by HM Government. | ||||||
| 11. | MOVEMENT IN FUNDS | |||||
| Net | ||||||
| movement | At | |||||
| At | 1.4.20 | in funds | 31.3.21 | |||
| £ | £ | £ | ||||
| Unrestricted funds | ||||||
| General fund | (277,500) | (2,977) | (280,477) | |||
| TOTAL FUNDS | (277,500) | (2,977) | (280,477) | |||
| Net movement in funds, included in the above are as follows: | ||||||
| Incoming | Resources | Movement | ||||
| resources | expended | in funds | ||||
| £ | £ | £ | ||||
| Unrestricted funds | ||||||
| General fund | 676,193 | (679,170) | (2,977) | |||
| TOTAL FUNDS | 676,193 | (679,170) | (2,977) |
continued...
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
11. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1.4.19 £ Unrestricted funds General fund (205,812) TOTAL FUNDS (205,812) Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,212,711 TOTAL FUNDS 1,212,711 |
Net movement in funds £ (71,688) (71,688) Resources expended £ (1,284,399 ) (1,284,399 ) |
At 31.3.20 £ (277,500) (277,500) Movement in funds £ (71,688) (71,688) |
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.4.19 £ (205,812) (205,812) |
Net movement in funds £ (74,665) (74,665) |
At 31.3.21 £ (280,477) (280,477) |
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 1,888,904 | (1,963,569 ) | (74,665) |
| TOTAL FUNDS | 1,888,904 | (1,963,569 ) | (74,665) |
continued...
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THE GEVURATH ARI TORAH ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2021.
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THE GEVURATH ARI TORAH ACADEMY TRUST
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Total incoming resources EXPENDITURE Charitable activities Grants to institutions Support costs Governance costs Auditors' remuneration Accountancy fee Total resources expended Net expenditure |
31.3.21 £ 676,193 - 676,193 676,193 676,170 - 3,000 3,000 679,170 (2,977) |
31.3.20 £ 1,159,461 53,250 1,212,711 1,212,711 1,281,399 3,000 - 3,000 1,284,399 (71,688) |
|---|---|---|
This page does not form part of the statutory financial statements
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