Charity Reglstratlon No. 1049458
.Company Regirtration No. 02831224 (England and Wales)
I*Èis ¢HINucH
LE8014OS
Bels Chinuch lebonos Limited
IAnnual report and financial statements
For the year ended 31 August 2020
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,,7titure

**Trustees** 

**Secretary** 

**Charity number** 

**Company number** 

**Principal address** 

**Registered office** 

**Auditor** 

**Bankers** 

Neil Spitzer Esther Spitzer Rabbi Chanoch Teitelbaum Abraham Schechter 

Neil Spitzer 

1049458 

02831224 

Woodbury Down Centre Woodbury Down London N4 2SH 

1st Floor, Cloister House Riverside New Bailey Street Manchester M3 5FS 

Lopian Gross Barnett & Co 1st Floor, Cloister House Riverside New Bailey Street Manchester M3 5FS 

Barclays Bank PLC Kingsland Leicester LE87 2BB 



## **Page** 

**Trustees report** 

1 - 3 

**Statement of Trustees responsibilities Independent auditor's report** 

4 

5 - 7 

**Statement of financial activities** 8 **Balance sheet** 9 **Statement of cash flows** 10 **Notes to the financial statements** 

11 - 21 




**Mr N. Spitzer** ~~**Mr C Teitelbaum Mr A. Schechter M**~~ **rs E. Spitzer** 


**----- Start of picture text -----**<br>
Mr H. Teitelbaum<br>**----- End of picture text -----**<br>





**----- Start of picture text -----**<br>
Mrs Y. Domb   BA hons  Mrs Grossberger  Mrs M. Melavski<br>Mrs Z. Erlich  Mrs M. Spitzer  Mrs E. Wachs<br>Mrs B. Schneck  Mrs T. Brinner  Mrs B. Warhaftig<br>Mrs R. Reich  Mrs L. Klein  Mrs R. Weiss<br>**----- End of picture text -----**<br>





The trustees present their report and financial statements for the year ended 31 August 2020. 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". 

## **Objectives and activities** 

The charity's objectsare to provide a full and well balanced education to members of the Chareidi community, enabling the pupils to become functioning and contributing members of society. In furtherance of  this objective, the charity operates an independent crèche, nursery and school in North  London providing childcare and education for approximately 860 pupils, aged from 3 months to 16 years. The  trustees confirm that they have referred to guidance contained in the commissioners' general guidance on  public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the  grant making policy for the year. 


The charity's main income is generated from a combination of voluntary donation income and from the  council in the form of grants in respect of education. The aims of the charity is to maintain a stable flow of  income, sufficient enough to cover the costs of the running the school. 

The principle objective of the charity is to provide a full and well balanced education in a safe and supporting learning environment. The trustees also aim to expand the school as necessary as demand for places in the establishment increase with an increasing local population. 

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. 

The charity maintained its significant activities in the year. This consisted of maintaining its income flows to fund its activities to enable high quality education to be provided on an ongoing basis. When considering which pupils to admit, the school does not discriminate between them upon the personal circumstances of their parents. 

The charity pays rent to Forty Limited. Forty Limited owns the building that the charity uses as the school  and nursery. The funds received are used to help maintain the building and extend it as required. The charity's policy is to distribute excess funds in assisting with the upkeep of the school building 

The future plans for the charity is to build a community function hall that could be used for after school activities. 

## **Achievements and performance** 

## **Review of activities and achievements** 

The school was opened in 1987. The trustees are gratified to be able to report a sustained increase in numbers to a total of 860 pupils with ages ranging from 3 months to 16 years. BCL follows the national curriculum leading to GCSE. The school has extremely high pass rates in a variety of subjects at GCSE level, which is very encouraging, especially when considering that the pupils cover a very wide spectrum of ability, including statemented and disabled children and young people. 

The school charges fees on a sliding scale to cater for families on low income and nursery children from age 2 to 4 years of age are subsidised by the local authority for between 15 hours and 30 hours per week. The  policy of the school is to accept all eligible children irrespective of the ability of their parents to pay. Any  deficits are covered by donations from charitable trusts and foundations as well as from local philanthropists. 

Fundraising via the receipt of donations continued in the year ensuring objectives set by the charity were achieved. The charity received donation income of £2,521,679. 


1 



## **Financial review** 

Although fundraising remains extremely challenging, Especially this year due to the current world pandemic situation the trustees are encouraged with the fact that planned implementation to seek and recruit skilled and experience volunteers is showing evidence of succeeding a consistent income for the year of £2,521,679. The charity received further income including grants from the local authority of £1,233,068 giving total income in the year of £3,754,747. 


The costs of running the school and the charity in the year came to £3,389,233. After grants paid in the year of £228,000, the charity had a net surplus in the year of £137,514. 

The fund balance at the year end is £809,069 which will be used to assist with planned expansion. The level  of fundraising to date must continue if the trust is to continue with its plans for the future. 

## **Reserves** 

The trustees ensure that there are sufficient reserves available to cover foreseeable commitments. In addition, the trustees have received undertakings from local supporters to cover any deficit if such should arise. 

## **Governance and internal control** 

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. 

## **Risk management** 

A review of the potential risks that are faced by the charity has been undertaken. These are seen to be in the  areas of property safety and financial control. Appropriate and reasonable systems are in place to cover  foreseeable eventualities. Further reviews will be undertaken from time to time. 

The school occupies premises owned by a connected charitable company called Forty Limited. The premises continue to be expanded and refurbished to include new facilities to cater for the growing number of children applying to the school and it continued to accept 3 classes per year which means approximately 70 children per year. As the school continues to grow, further expansion has been agreed so as to accommodate. A lift has been installed to provide disabled access to all floors of the school. Rent is paid on a level, as agreed with Forty Limited. 

We will continue to apply and obtain government and local authority funding for school places where available and the nursery and pre-school facilities which includes a community drop in crèche . 

## **Structure, governance and management** 

## **Governing document** 

The charity is a company limited by guarantee and accordingly does not have share capital. The charity is governed by its Memorandum and Articles of Association dated 29th June 1993. 

Every member of the company undertakes to contribute such an amount as may be required, not exceeding £1, to the assets of the charitable company in the event of it being wound up while her or she is a member, or within one year after he or she ceases to be a member. 

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Neil Spitzer 

Esther Spitzer 

Rabbi Chanoch Teitelbaum Abraham Schechter 

2 



The board of trustees may elect or remove the Chair or any other officers that it wishes. Officers shall be appointed from among the trustees, by a majority vote. 

None of the trustees have any beneficial interest in the company.  None 

of the trustees are entitled to any remuneration for their services. 

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU). 

The company's current policy concerning the payment of trade creditors is to: 

- settle the terms of payment with suppliers when agreeing the terms of each transaction; 

- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and 

- pay in accordance with the company's contractual and other legal obligations. 

## **Organisational structure** 

The charity's activity is the running of a crèche, nursery and school for the Orthodox Jewish community. The charity is under the direction of the trustees who are appointed at the annual general meeting. The charity has a full time administrator as well as office staff, in addition to teachers and volunteer assistants. No remuneration is taken by any trustee. 

All decisions made on behalf of the charity are made by the trustees. 

The School occupies premises owned by a connected charitable company called Forty Limited and rent is paid on a level as agreed with Forty Limited. 

The school also has an associated charity called Kids N'Action which provides desperately needed sports, arts and both on and off site activities for disadvantaged local young people. Kids N' Action programmes have improved the attainment levels as well as social skills and motivation of the children who attend the school. 

Details of transactions with related parties are disclosed in the notes to the financial statements. 

## **Auditor** 

In accordance with the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the company will be put at a General Meeting. 

## **Disclosure of information to auditor** 

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to  the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate  steps to identify such relevant information and to establish that the auditor is aware of such information. 

The Trustees report was approved by the Board of Trustees. 

## **Neil Spitzer** 

Trustee Dated: 13 August 2021 

3 



The trustees, who are also the directors of Beis Chinuch Lebonos Limited for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law  and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources,  including the income and expenditure, of the charitable company for that year. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

-state whether applicable accounting standards have been followed, subject to any material departures  disclosed and explained in the financial statements 

-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the  charity will continue in operation. 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

4 



## **Opinion** 

We have audited the financial statements of Beis Chinuch Lebonos Limited (the ‘charity’) for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion, the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

- the Trustees use of the going concern basis of accounting in the preparation of the financial statements is  not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

5 



## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the Trustees report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the statement of Trustees responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue  as a going concern, disclosing, as applicable, matters related to going concern and using the going concern  basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with  the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

_T W O R G_ 

6 



## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities  (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the  charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity  and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

**Jonathan Brodie ACA (Senior Statutory Auditor) for and on behalf of Lopian Gross Barnett & Co** 

13 August 2021 

**Chartered Accountants Statutory Auditor** 

1st Floor, Cloister House Riverside New Bailey Street Manchester M3 5FS 

7 



|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2020**|2019|
||**Notes**|**£**|**£**|
|**Income and endowments from:**||||
|Voluntary income||||
||**3**|2,521,679|2,734,721|
|Charitable activities|**4**|911,123|855,491|
|Investments|**5**|48,635|35,220|
|Other income|**6**|273,310|-|
|**Total income**||3,754,747|3,625,432|
|**Expenditure on:**||||
|Raising funds|**7**|10,613|7,073|
|Charitable activities|**8**|3,606,620|3,738,776|
|**Total resources expended**||3,617,233|3,745,849|
|**Net income/(expenditure) for the year/**||||
|**Net movement in funds**||137,514|(120,417)|
|Fund balances at 1 September 2019||671,555|791,972|
|**Fund balances at 31 August 2020**||809,069|671,555|



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

All income and expenditure derive from continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

8 



|||||
|---|---|---|---|
|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**14**<br>**Current assets**<br>Debtors<br>**15**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within**<br>**one year**<br>**17**<br>Net current assets<br>**Total assets less current liabilities**<br>**Creditors: amounts falling due after**<br>**more than one year**<br>**18**<br>**Net assets**<br>**Income funds**<br>Unrestricted funds|**2020**<br>**£**<br>**£**<br>101,021<br>1,245,594<br>20,265<br>1,265,859<br>(510,311)<br>755,548<br>856,569<br>(47,500)<br>809,069<br>809,069<br>809,069||**2019**<br>**£**<br>**£**<br>83,195<br>1,447,789<br>23,301<br>1,471,090<br>(882,730)<br>588,360<br>671,555<br>-<br>671,555<br>671,555<br>671,555|
||1,265,859<br>(510,311)||1,471,090<br>(882,730)|
|||||
|||856,569<br>(47,500)||
|||809,069||
|||809,069||
|||809,069||



The financial statements were approved by the Trustees on 13 August 2021 

Neil Spitzer **Trustee** 

## **Company Registration No. 02831224** 

9 



|**Notes**<br>**Cash flows from operating activities**<br>Cash (absorbed by)/generated from<br>**21**<br>operations<br>**Investing activities**<br>Purchase of tangible fixed assets<br>Income from investment<br>**Net cash generated from investing**<br>**activities**<br>**Financing activities**<br>Repayment of bank loans<br>**Net cash generated from/(used in)**<br>**financing activities**<br>**Net increase in cash and cash equivalents**<br>Cash and cash equivalents at beginning of year<br>**Cash and cash equivalents at end of year**<br>**Relating to:**<br>Cash at bank and in hand<br>Bank overdrafts included in creditors<br>payable within one year|**2020**<br>**£**<br>(45,318)<br>48,635||**£**<br>(52,870)<br>3,317<br>50,000|**2019**<br>**£**<br>(29,731)<br>35,220||**£**<br>15,412<br>5,489<br>-|
|---|---|---|---|---|---|---|
||50,000|||-|||
||||||||
||||447<br>10,605|||20,901<br>(10,296)|
||||11,052|||10,605|
||||20,265<br>(9,213)|||23,301<br>(12,696)|



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**1** 

## **Accounting policies** 

## **Charity information** 

Beis Chinuch Lebonos Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 1st Floor Cloister House, Riverside, New Bailey Street, Manchester M3  5FS. 

## **1.** 

## **Accounting convention** 

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. 

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

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

## **2.** 

## **Going concern** 

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

## **3.** 

## **Charitable funds** 

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. 

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

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

## **4.** 

## **Income** 

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

**1** 10 



**1** 

**5.** 

**6.** 

**7.** 

## **Accounting policies** 

**(Continued)** 

## **Expenditure** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. 

Costs of generating funds comprise the costs associated with attracting voluntary income. 

Charitable expenditure comprises those incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

Support costs are those costs incurred directly in achieving the charity's objectives. 

Governance costs comprise all costs involved in the public accountability of the charity and its compliance with the regulation of good practice. These costs include costs related to statutory audit and direct governing costs. 

## **Tangible fixed assets** 

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Plant and machinery 25% reducing balance Fixtures, fittings & equipment 15% reducing balance Motor vehicles 25% reducing balance 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. 

## **Impairment of fixed assets** 

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 

## **8.** 

## **Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 

## **9.** 

## **Financial instruments** 

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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. 

12 



**1** 

**10.** 

## **Accounting policies** 

**(Continued)** 

## _**Basic financial assets**_ 

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. 

## _**Basic financial liabilities**_ 

Basic financial liabilities, including creditors and bank loans 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. Financial liabilities classified as payable within one year are not amortised. 

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

## _**Derecognition of financial liabilities**_ 

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. 

## **Employee benefits** 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services  are received. 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

**11. Government grants** 

Grant income relates to furlough income under Coronavirus Job Retention Scheme. Cash payments were made to compensate for part of the wages, associated national insurance and employer contributions of employees who have been placed on furlough. There is also a Government-paid interest element, as the company took out a Government-backed bounce back loan during the year. 

This grant income has been recognised under the performance model whereby entitlement to the grant only passes to the company when relevant employees are placed on furlough. Grant income is recognised on a straight line basis over the furlough period for each employee. 

Grants received before the recognition criteria are satisfied is recognised as a liability. 

13 



**2** 

**3** 

## **Critical accounting estimates and judgements** 

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

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

## **Voluntary income** 

|Donations and gifts<br>**Charitable activities**<br>**received**<br>**and other**<br>**grant income**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Other income<br>748,146<br>162,977<br>**Investments**<br>Rental income<br>**Grant funding Special Needs**|**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**2020**<br>**£**<br>2019<br>£<br>2,521,679<br>2,734,721<br>**2020**<br>**received**<br>**and other**<br>**grant income**<br>**2019**<br>**£**<br>**2019**<br>**£**<br>**2019**<br>**£**<br>**£**<br>911,123<br>648,408<br>207,083 855,491<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**2020**<br>**£**<br>2019<br>£<br>48,635<br>35,220<br>**Total Grantfunding Special Needs**<br>**Total**|
|---|---|



**4** 

**5 Investments** 

14 



**6** 

**7** 

**8** 

## **Other income** 

|COVID-19 grant income<br>**Raising funds**<br>Advertising and fundraising<br>Other fundraising costs<br>**Charitable activities**<br>Staff costs<br>Other school running costs<br>Grant funding of activities<br>(see note 9)<br>Share of support costs<br>(see note 10)<br>Share of governance costs<br>(see note 10)|**School Donations**<br>**running to other UK**<br>**costs**<br>**charities**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>1,864,282<br>-<br>218,982<br>-<br>2,083,264<br>-<br>-<br>228,000<br>1,287,556<br>-<br>7,800<br>-<br>3,378,620<br>228,000|**Total**<br>**2020**<br>**£**<br>1,864,282<br>218,982<br>2,083,264<br>228,000<br>1,287,556<br>7,800<br>3,606,620|**Unrestricted**<br>**funds**<br>Total<br>**2020**<br>**£**<br>2019<br>£<br>273,310<br>-<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**2020**<br>**£**<br>2019<br>£<br>10,613<br>7,073<br>10,613<br>7,073<br>**School Donations**<br>**running to other UK**<br>**Total**<br>**2019**<br>**costs**<br>**charities**<br>**2019**<br>**2019**<br>**£**<br>**£**<br>**£**<br>1,632,052<br>-<br>1,632,052<br>325,036<br>-<br>325,036<br>1,957,088<br>-<br>1,957,088<br>-<br>591,610<br>591,610<br>1,182,278<br>-<br>1,182,278<br>7,800<br>-<br>7,800<br>3,147,166<br>591,610<br>3,738,776|
|---|---|---|---|



15 



## **9 Grants payable** 

||**Donations**|<br>Donations to|
|---|---|---|
||**to other UK**|<br>other UK|
||**charities**|charities|
||**2020**|2019|
||**£**|£|
|Grants to institutions:|||
|Other|228,000|<br>591,610|
|Most of the donations paid in the year were to Forty Limited, the owner of the school building that Beis|||
|Chinuch Lebonos operates from.|||



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**10 Support costs** 

**11 Trustees** 

|Depreciation<br>Rent and rates<br>Insurances<br>Light, heat and water<br>Repairs and<br>maintenance<br>Security costs<br>Motor and travelling<br>costs<br>Legal and professional<br>costs<br>Communication and<br>information technology<br>Other office expenses<br>Bank charges and<br>interest<br>Audit fees<br>Analysed between<br>Charitable activities|**Support**<br>**Governance**<br>**costs**<br>**costs**<br>**£**<br>**£**<br>27,492<br>-<br>840,812<br>-<br>33,007<br>-<br>4,526<br>-<br>44,512<br>-<br>80,143<br>-<br>59,394<br>-<br>50,467<br>-<br>26,365<br>-<br>57,982<br>-<br>62,856<br>-<br>-<br>7,800<br>1,287,556<br>7,800<br>1,287,556<br>7,800|**2020**<br>**£**<br>27,492<br>840,812<br>33,007<br>4,526<br>44,512<br>80,143<br>59,394<br>50,467<br>26,365<br>57,982<br>62,856<br>7,800<br>1,295,356<br>1,295,356|Support<br>Governance<br>costs<br>costs<br>£<br>£<br>22,341<br>-<br>846,699<br>-<br>26,284<br>-<br>16,581<br>-<br>61,819<br>-<br>107,828<br>-<br>22,589<br>-<br>7,067<br>-<br>10,979<br>-<br>51,102<br>-<br>8,989<br>-<br>-<br>7,800<br>1,182,278<br>7,800<br>1,182,278<br>7,800||2019<br>£<br>22,341<br>846,699<br>26,284<br>16,581<br>61,819<br>107,828<br>22,589<br>7,067<br>10,979<br>51,102<br>8,989<br>7,800|
|---|---|---|---|---|---|
||1,287,556||1,182,278||1,190,078|
||1,287,556||1,182,278||1,190,078|



The rent of £840,000 (2019 - £840,000) is paid to Forty Limited, which is a connected charity that owns the school buildings. 

Governance costs includes payments to the auditors of £7,800 (2019- £7,800) for audit fees. 

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

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

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**12 Employees** 

The average monthly number of employees during the year was: 

|**Employment costs**<br>Wages and salaries|**2020**<br>**Number**<br>200<br>**2020**<br>**£**<br>1,864,282|**2019**<br>**Number**<br>200|
|---|---|---|
|||**2019**<br>**£**<br>1,632,052|



**13** 

## **Taxation** 

The activities of Beis Chinuch Lebonos Limited are exempt from direct taxation under Part 11 of the Corporation Tax Act 2010. 

**14** 


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## **Tangible fixed assets** 

|**Cost**<br>At 1 September 2019<br>Additions<br>At 31 August 2020<br>**Depreciation and impairment**<br>At 1 September 2019<br>Depreciation charged in the year<br>At 31 August 2020<br>**Carrying amount**<br>At 31 August 2020<br>At 31 August 2019<br>**Debtors**<br>**Amounts falling due within one year:**<br>Other debtors|**Plant and**<br>**machinery**<br>**£**<br>183,585<br>33,320<br>216,905<br>136,614<br>20,073<br>156,687<br>60,218<br>46,971|**Fixtures,**<br>**fittings &**<br>**equipment**<br>**Motor vehicles**<br>**£**<br>**£**<br>140,717<br>3,153<br>11,998<br>-<br>152,715<br>3,153<br>106,354<br>1,292<br>6,954<br>465<br>113,308<br>1,757<br>39,407<br>1,396<br>34,363<br>1,861<br>**2020**<br>**£**<br>1,245,594|**Total**<br>**£**<br>327,455<br>45,318<br>372,773<br>244,260<br>27,492<br>271,752<br>101,021|
|---|---|---|---|
|||152,715||
|||106,354<br>6,954||
|||113,308||
|||39,407||
|||34,363|83,195|
||||**2019**<br>**£**<br>1,447,789|



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**16** 

## **Loans and overdrafts** 

|**Loans and overdrafts**|||
|---|---|---|
|Bank overdrafts<br>Bounce back loan<br>Payable within one year<br>Payable after one year|**2020**<br>**£**<br>9,213<br>50,000<br>59,213<br>11,713<br>47,500|**2019**<br>**£**<br>12,696<br>-|
|||12,696|
|||12,696<br>-|



The charity received a government-backed bounce back loan during the year for £50,000. The loan is over 60 months with a 2.5% interest rate, with no interest or repayments due within the first year. 

## **17** 

**18** 

## **Creditors: amounts falling due within one year** 

|**Notes**<br>Bank loans and overdrafts<br>**16**<br>Trade creditors<br>Other creditors<br>Accruals and deferred income<br>**Creditors: amounts falling due after more than one year**<br>**Notes**<br>Bank loans<br>**16**|**2020**<br>**£**<br>11,713<br>88,423<br>402,375<br>7,800<br>510,311<br>**2020**<br>**£**<br>47,500|**2019**<br>**£**<br>12,696<br>140,607<br>720,068<br>9,359|
|---|---|---|
|||882,730|
|||**2019**<br>**£**<br>-|



**19 Response to Covid-19** 

The Directors have closely monitored the Government guidance in response to the Covid-19 Pandemic and have implemented measures in line with Governmental guidelines. The Directors have assessed the  impact of Covid-19 on the group and conclude that there are no items resulting from the Covid-19  Pandemic which require disclosure beyond those that have been disclosed elsewhere in the accounts. 

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**20 Related party transactions** 

Beis Chinuch Lebonos Limited is connected to two charitable companies, Forty Limited and Kids N'Action Limited as follows: 

1)Mr R Spitzer, a trustee of Forty Limited, is the father of N Spitzer and husband of E Spitzer, who are both trustees of Beis Chinuch Lebonos Limited. 

2)Mr A Schecter, the administrator of Beis Chinuch Lebonos Limited is also the administrator of both Forty Limited and Kids N'Action Limited. 

During the year, Beis Chinuch Lebonos Ltd paid Forty Ltd £840,000 (2019: £840,000) rent in respect of the school building in the year. Additionally, the charity paid Forty Ltd £227,000 (2019: £591,610) in donations. 

Beis Chinuch Lebonos Ltd received £35,650 (2019: £19,120) of rent from Kids N'Action Ltd in respect of  the use of some of the building. 

There were no other related party transactions in the year. 

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**21** 

22 

**Cash generated from operations** 

|**Cash generated from operations**<br>Surplus/(deficit) for the year<br>Adjustments for:<br>Investment income recognised in statement of financial activities<br>Depreciation and impairment of tangible fixed assets<br>Movements in working capital:<br>Decrease in debtors<br>(Decrease)/increase in creditors<br>**Cash (absorbed by)/generated from operations**<br>**Analysis of changes in net debt**<br>**At 1 September**<br>**2019**<br>**£**<br>Cash at bank and in hand<br>23,301<br>Bank overdrafts<br>(12,696)<br>10,605<br>Loans falling due within one year<br>-<br>Loans falling due after more than one year<br>-<br>10,605|**Cash generated from operations**<br>Surplus/(deficit) for the year<br>Adjustments for:<br>Investment income recognised in statement of financial activities<br>Depreciation and impairment of tangible fixed assets<br>Movements in working capital:<br>Decrease in debtors<br>(Decrease)/increase in creditors<br>**Cash (absorbed by)/generated from operations**<br>**Analysis of changes in net debt**<br>**At 1 September**<br>**2019**<br>**£**<br>Cash at bank and in hand<br>23,301<br>Bank overdrafts<br>(12,696)<br>10,605<br>Loans falling due within one year<br>-<br>Loans falling due after more than one year<br>-<br>10,605|**Cash generated from operations**<br>Surplus/(deficit) for the year<br>Adjustments for:<br>Investment income recognised in statement of financial activities<br>Depreciation and impairment of tangible fixed assets<br>Movements in working capital:<br>Decrease in debtors<br>(Decrease)/increase in creditors<br>**Cash (absorbed by)/generated from operations**<br>**Analysis of changes in net debt**<br>**At 1 September**<br>**2019**<br>**£**<br>Cash at bank and in hand<br>23,301<br>Bank overdrafts<br>(12,696)<br>10,605<br>Loans falling due within one year<br>-<br>Loans falling due after more than one year<br>-<br>10,605||**2020**<br>**£**<br>137,514<br>(48,635)<br>27,492<br>202,195<br>(371,436)|**2019**<br>**£**<br>(120,418)<br>(35,220)<br>22,341<br>32,087<br>116,622|
|---|---|---|---|---|---|
|||||(52,870)|15,412|
||||**Cash flows**<br>**At**<br>**£**<br>(3,036)<br>3,483||**31 August**<br>**2020**<br>**£**<br>20,265<br>(9,213)|
|||10,605<br>-<br>-||447<br>(2,500)<br>(47,500)|11,052<br>(2,500)<br>(47,500)|
|||10,605||(49,553)|(38,948)|



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