COMPANY REGISTRATION NUMBER: 02831224 CHARITY REGISTRATION NUMBER: 1049458
Beis Chinuch Lebonos Limited Company Limited by Guarantee Financial Statements
31 August 2024
BRINDLEY GOLDSTEIN LIMITED
Chartered accountants & statutory auditor 103 High Street Waltham Cross Herts EN8 7AN
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Financial Statements
Year ended 31 August 2024
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 7 |
| Statement of financial activities (including income and | |
| expenditure account) | 12 |
| Statement of financial position | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 |
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 August 2024
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 August 2024.
Reference and administrative details
| Registered charity name | Beis Chinuch Lebonos Limited |
|---|---|
| Charity registration number | 1049458 |
| Company registration number | 02831224 |
| Principal office and registered | 103 High Street |
| office | Waltham Cross |
| EN8 7AN | |
| England | |
| The trustees | |
| N Spitzer | |
| E Spitzer | |
| A Schechter | |
| Rabbi C Teitelbaum | |
| Company secretary | Neil Spitzer |
| Auditor | Brindley Goldstein Limited |
| Chartered accountants & statutory auditor | |
| 103 High Street | |
| Waltham Cross | |
| Herts | |
| EN8 7AN |
1
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2024
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 29 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 its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
The trustees, who are also 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
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
The company's policy 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 at a level as agreed with Forty Limited. The school also has an associated charity called Kids N' Action, which provides essential sports, arts, and both on- and off-site activities for disadvantaged local young people. Kids N' Action programmes have improved the attainment levels, 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.
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.
2
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2024
Objectives and activities
The charity's objects are to provide a full and well-balanced education to members of the Orthodox Jewish community, enabling the pupils to become functioning and contributing members of society.
In furtherance of this objective, the charity operates an independent Orthodox Jewish crèche, nursery and school in North London providing childcare and education for approximately 860 pupils, aged from 3 months to 16 years.
The School is funded through voluntary donations and government grants for education. Additional income is generated through nursery provision and childcare services, including breakfast and after-school clubs. Nursery places for children aged 2 to 4 are subsidized by the local authority for between 15 and 30 hours per week.
The school's policy is to accept all eligible children regardless of their parents' financial circumstances; any shortfall is covered by donations from charitable trusts, foundations, and local philanthropists.
The trustees confirm that they have referred to guidance contained in the Charity Commission's 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 government in the form of grants in respect of education. The aim of the charity is to maintain a stable flow of income, sufficient to cover the costs of running the school.
The principal objective of the charity is to provide a full and well-balanced education in a safe and supportive learning environment. The trustees also aim to expand the school as necessary, as demand for places increases due to population growth in the local area.
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 on the basis of 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.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
3
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2024
Achievements and performance
Review of activities and achievements
The school was opened in 1987. The trustees are gratified 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 GCSEs. The school has extremely high pass rates across a variety of subjects at GCSE level, which is very encouraging, particularly considering the wide spectrum of ability among pupils, including those who are statement or have disabilities.
Fundraising via donations continued during the year, helping ensure the objectives set by the charity were achieved. The charity received donations and childcare income of £3,207,827 (2023: £2,965,942).
The school occupies premises owned by Forty Limited. These premises continue to be expanded and refurbished to include new facilities to cater for the growing number of applicants. The school continues to admit three classes per year, equating to approximately 70 children annually. As the school expands, further building work has been agreed upon to accommodate the increasing intake. A lift has been installed to provide disabled access to all floors of the school. Rent is paid at a level agreed with Forty Limited.
The charity will continue to apply for and secure government and local authority funding for school places and for its nursery and pre-school services, including a community drop-in crèche
Reserves
The trustees ensure that sufficient reserves are available to cover foreseeable commitments. In addition, the trustees have received undertakings from local supporters to cover any deficit should such a need 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 those risks.
Risk Management Review
A review of the potential risks faced by the charity has been undertaken. These are seen to be primarily in the areas of property safety and financial control. Appropriate and reasonable systems are in place to cover foreseeable eventualities. Further reviews will be conducted periodically.
4
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2024
Financial review
The charity received income, including grants from the local authority, of £1,077,063, contributing to a total income of £4,459,679 for the year (2023: £4,193,534).
The costs of running the school and charity for the year amounted to £4,538,879 (2023: £4,189,965), resulting in a deficit for the year of £77,700.
The fund balance at the year-end stands at a deficit of £19,522 (2023: £58,178 surplus).
Trustees' responsibilities statement
The trustees, who are also directors for the purposes 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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.
5
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2024
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The trustees' annual report and the strategic report were approved on 22 May 2025 and signed on behalf of the board of trustees by:
A Schechter Trustee
6
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Independent Auditor's Report to the Members of Beis Chinuch Lebonos Limited
Year ended 31 August 2024
Opinion
We have audited the financial statements of Beis Chinuch Lebonos Limited (the 'charity') for the year ended 31 August 2024 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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:
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give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
7
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Independent Auditor's Report to the Members of Beis Chinuch Lebonos
Limited (continued)
Year ended 31 August 2024
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, except to the extent otherwise explicitly stated in our report, 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
8
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Independent Auditor's Report to the Members of Beis Chinuch Lebonos
Limited (continued)
Year ended 31 August 2024
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes 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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and testing journal entries and the overall accounting records, particularly those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with relevant laws and regulations.
Testing key revenue lines, for evidence of management bias.
Verification of key assets.
Obtaining third-party confirmation of material balances.
Documenting and verifying all significant related party balances and transactions.
Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.
9
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Independent Auditor's Report to the Members of Beis Chinuch Lebonos
Limited (continued)
Year ended 31 August 2024
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
10
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Independent Auditor's Report to the Members of Beis Chinuch Lebonos
Limited (continued)
Year ended 31 August 2024
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
C.H. Goldstein FCA (Senior Statutory Auditor)
For and on behalf of Brindley Goldstein Limited Chartered accountants & statutory auditor 103 High Street Waltham Cross Herts EN8 7AN
22 May 2025
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Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 31 August 2024
| 2024 | 2024 | 2023 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and Childcare | 5 | 4,443,313 | 4,443,313 | 4,181,135 |
| Charitable activities | 6 | 16,366 | 16,366 | 12,399 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 4,459,679 | 4,459,679 | 4,193,534 | |
| ========================================= | ========================================= | ========================================= | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Costs of raising donations and legacies | 7 | 12,594 | 12,594 | 11,232 |
| Expenditure on charitable activities | 8,9 | 4,524,785 | 4,524,785 | 4,178,733 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 4,537,379 | 4,537,379 | 4,189,965 | |
| ========================================= | ========================================= | ========================================= | ||
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Net (expenditure)/income and net movement in funds | (77,700) | (77,700) | 3,569 | |
| ========================================= | ========================================= | ========================================= | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 58,178 | 58,178 | 54,609 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | (19,522) | (19,522) | 58,178 | |
| ========================================= | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 15 to 24 form part of these financial statements.
12
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Statement of Financial Position
31 August 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Intangible assets | 15 | 14,715 | 28,410 |
| Tangible fixed assets | 16 | 112,325 | 111,535 |
| -------------------------------- | -------------------------------- | ||
| 127,040 | 139,945 | ||
| Current assets | |||
| Debtors | 17 | 441,988 | 532,297 |
| Cash at bank and in hand | 16,558 | 68,976 | |
| -------------------------------- | -------------------------------- | ||
| 458,546 | 601,273 | ||
| Creditors: amounts falling due within one year | 18 | 592,459 | 657,916 |
| -------------------------------- | -------------------------------- | ||
| Net current liabilities | 133,913 | 56,643 | |
| -------------------------------- | -------------------------------- | ||
| Total assets less current liabilities | (6,873) | 83,302 | |
| Creditors: amounts falling due after more than one year | 19 | 12,649 | 25,124 |
| ---------------------------- | ---------------------------- | ||
| Net liabilities | (19,522) | 58,178 | |
| ============================ | ============================ | ||
| Funds of the charity | |||
| Unrestricted funds | (19,522) | 58,178 | |
| ---------------------------- | ---------------------------- | ||
| Total charity funds | 23 | (19,522) ============================ |
58,178 ============================ |
These financial statements were approved by the board of trustees and authorised for issue on 22 May 2025, and are signed on behalf of the board by:
A Schechter Trustee
The notes on pages 15 to 24 form part of these financial statements.
13
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Statement of Cash Flows
Year ended 31 August 2024
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net (expenditure)/income | (77,700) | 3,569 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 28,893 | 27,639 |
| Amortisation of intangible assets | 13,695 | 13,695 |
| Government grant income | – | (7,500) |
| Interest payable and similar charges | 10,396 | 16,953 |
| Accrued income | (133,280) | (297,297) |
| Changes in: | ||
| Trade and other debtors | 226,529 | 282,623 |
| Trade and other creditors | (67,573) | 17,758 |
| -------------------------------- | -------------------------------- | |
| Cash generated from operations | 960 | 57,440 |
| Interest paid | (10,396) | (16,953) |
| ---------------------------- | ---------------------------- | |
| Net cash (used in)/from operating activities | (9,436) | 40,487 |
| ============================ | ============================ | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (29,683) | (22,834) |
| ---------------------------- | ---------------------------- | |
| Net cash used in investing activities | (29,683) | (22,834) |
| ============================ | ============================ | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | (10,000) | (10,000) |
| Government grant income | – | 7,500 |
| Payments of finance lease liabilities | (3,299) | (3,299) |
| ---------------------------- | ---------------------------- | |
| Net cash used in financing activities | (13,299) | (5,799) |
| ============================ | ============================ | |
| Net (decrease)/increase in cash and cash equivalents | (52,418) | 11,854 |
| Cash and cash equivalents at beginning of year | 68,976 | 57,122 |
| ---------------------------- | ---------------------------- | |
| Cash and cash equivalents at end of year | 16,558 | 68,976 |
| ============================ | ============================ |
The notes on pages 15 to 24 form part of these financial statements.
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Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 August 2024
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 103 High Street, Waltham Cross, EN8 7AN, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
There are no judgements and estimates.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
15
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
3. Accounting policies (continued)
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software
- 20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25% reducing balance Motor vehicles - 25% reducing balance Fixtures, fittings and - 15% reducing balance equipment
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Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
3. Accounting policies (continued)
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
18
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
3. Accounting policies (continued)
Defined contribution plans (continued)
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Limited by guarantee
The company is limited by guarantee and has no share capital. Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.
5. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations & Child Care | 3,207,827 | 3,207,827 | 2,965,942 | 2,965,942 |
| Grants | ||||
| Grants: Security Grant | 113,356 | 113,356 | 70,400 | 70,400 |
| Grants: Statemented students | 272,292 | 272,292 | 404,795 | 404,795 |
| Grants: Under 5 | 849,838 | 849,838 | 732,498 | 732,498 |
| Government grant income | – | – | 7,500 | 7,500 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | |
| 4,443,313 | 4,443,313 | 4,181,135 | 4,181,135 | |
| ========================================= | ========================================= | ========================================= | ========================================= |
6. Charitable activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Rental income | 11,206 | 11,206 | 12,399 | 12,399 |
| Sales | 5,160 | 5,160 | – | – |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 16,366 | 16,366 | 12,399 | 12,399 | |
| ============================ | ============================ | ============================ | ============================ |
7. Costs of raising donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Costs of raising donations and | ||||
| legacies - Donations | 12,594 | 12,594 | 11,232 | 11,232 |
| ============================ | ============================ | ============================ | ============================ |
19
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
8. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2024 |
Funds | 2023 | ||
| £ | £ | £ | £ | ||
| Charitable activities | 1,956,597 | 1,956,597 |
2,079,789 | 2,079,789 | |
| Support costs | 2,568,188 | 2,568,188 |
2,098,944 | 2,098,944 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| 4,524,785 | 4,524,785 |
4,178,733 | 4,178,733 | ||
| ========================================= | ========================================= | ========================================= | ========================================= | ||
| 9. | Expenditure on charitable activities by activity type | ||||
| Activities | |||||
| undertaken | Support |
Total funds | Total fund | ||
| directly | costs |
2024 | 2023 | ||
| £ | £ | £ | £ | ||
| Charitable activities | 1,956,597 | 2,556,548 |
4,513,145 | 4,170,033 | |
| Governance costs | – | 11,640 |
11,640 | 8,700 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| 1,956,597 | 2,568,188 |
4,524,785 | 4,178,733 | ||
| ========================================= | ========================================= | ========================================= | ========================================= | ||
| 10. | Analysis of support costs | ||||
| Analysis of | |||||
| support costs | |||||
| activity 1 | Total 2024 | Total 2023 | |||
| £ | £ | £ | |||
| Staff costs | 2,556,548 | 2,556,548 | 2,090,244 | ||
| ========================================= | ========================================= | ========================================= | |||
| 11. | Net (expenditure)/income | ||||
| Net (expenditure)/income is stated after charging/(crediting): | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Amortisation of intangible assets | 13,695 | 13,695 | |||
| Depreciation of tangible fixed assets | 28,893 | 27,639 | |||
| ============================ | ============================ | ||||
| 12. | Auditors remuneration | ||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Fees payable for the audit of the financial statements | 11,640 | 8,700 | |||
| ============================ | ======================= |
20
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
13. Staff costs
| The total staff costs and employee benefits for the reporting period are analysed as | The total staff costs and employee benefits for the reporting period are analysed as | follows: |
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Wages and salaries | 2,556,548 | 2,090,244 |
| Employer contributions to pension plans | 6,852 | 13,572 |
| ----------------------------------------- | ----------------------------------------- | |
| 2,563,400 | 2,103,816 | |
| ========================================= | ========================================= | |
| The average head count of employees during the year was 310 (2023: 294). | The average | |
| number of full-time equivalent employees during the year is analysed as follows: | ||
| 2024 | 2023 | |
| No. | No. | |
| Number of staff | 310 | 294 |
| ============== | ============== |
No employee received employee benefits of more than £60,000 during the year (2023: Nil).
14. Trustee remuneration and expenses
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
15. Intangible assets
| Intangible | |
|---|---|
| asset | |
| £ | |
| Cost | |
| At 1 September 2023 and 31 August 2024 | 68,475 |
| ============================ | |
| Amortisation | |
| At 1 September 2023 | 40,065 |
| Charge for the year | 13,695 |
| ---------------------------- | |
| At 31 August 2024 | 53,760 |
| ============================ | |
| Carrying amount | |
| At 31 August 2024 | 14,715 |
| ============================ | |
| At 31 August 2023 | 28,410 |
| ============================ |
21
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
16. Tangible fixed assets
| Plant and | Motor | |||
|---|---|---|---|---|
| machinery | vehicles | Equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 September 2023 | 235,094 | 40,987 | 202,722 | 478,803 |
| Additions | – | 26,400 | 3,283 | 29,683 |
| -------------------------------- | ---------------------------- | -------------------------------- | -------------------------------- | |
| At 31 August 2024 | 235,094 | 67,387 | 206,005 | 508,486 |
| ================================ | ============================ | ================================ | ================================ | |
| Depreciation | ||||
| At 1 September 2023 | 200,933 | 24,437 | 141,898 | 367,268 |
| Charge for the year | 8,540 | 10,737 | 9,616 | 28,893 |
| -------------------------------- | ---------------------------- | -------------------------------- | -------------------------------- | |
| At 31 August 2024 | 209,473 | 35,174 | 151,514 | 396,161 |
| ================================ | ============================ | ================================ | ================================ | |
| Carrying amount | ||||
| At 31 August 2024 | 25,621 | 32,213 | 54,491 | 112,325 |
| ================================ | ============================ | ================================ | ================================ | |
| At 31 August 2023 | 34,161 | 16,550 | 60,824 | 111,535 |
| ================================ | ============================ | ================================ | ================================ | |
| Debtors | ||||
| 2024 | 2023 | |||
| £ | £ | |||
| Trade debtors | 4,471 | 235,000 | ||
| Prepayments and accrued income | 433,517 | 297,297 | ||
| Other debtors | 4,000 | – | ||
| -------------------------------- | -------------------------------- | |||
| 441,988 | 532,297 | |||
| ================================ | ================================ | |||
| Creditors: amounts falling due within one year | ||||
| 2024 | 2023 | |||
| £ | £ | |||
| Bank loans and overdrafts | 10,000 | 10,824 | ||
| Trade creditors | 278,104 | 364,272 | ||
| Accruals and deferred income | 11,640 | 8,700 | ||
| Obligations under finance leases and hire purchase contracts | 3,850 | 3,850 | ||
| Other creditors | 288,865 | 270,270 | ||
| -------------------------------- | -------------------------------- | |||
| 592,459 | 657,916 | |||
| ================================ | ================================ | |||
| Creditors: amounts falling due after more than one | year | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Bank loans and overdrafts | 7,500 | 16,676 | ||
| Obligations under finance leases and hire purchase contracts | 5,149 | 8,448 | ||
| ---------------------------- | ---------------------------- | |||
| 12,649 | 25,124 | |||
| ============================ | ============================ |
17. Debtors
18. Creditors: amounts falling due within one year
19. Creditors: amounts falling due after more than one year
22
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
| as follows: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Not later than 1 year | 3,850 | 3,850 |
| Later than 1 year and not later than 5 years | 5,149 | 8,448 |
| ----------------------- | ---------------------------- | |
| 8,999 | 12,298 | |
| ======================= | ============================ |
21. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £6,852 (2023: £13,572).
22. Government grants
The amounts recognised in the financial statements for government grants are as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Recognised in income from donations and legacies: | ||
| Government grants income | – | 7,500 |
| ============== | ======================= |
23. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | At | |||||
| 1 | September | 31 | August 2 | |||
| 2023 | Income | Expenditure | 024 | |||
| £ | £ | £ | £ | |||
| General funds | 58,178 | 4,459,679 | (4,537,379) | (19,522) | ||
| ============================ | ========================================= | ========================================= | ============================ | |||
| At | At | |||||
| 1 | September | 31 | August 20 | |||
| 2022 | Income | Expenditure | 23 | |||
| £ | £ | £ | £ | |||
| General funds | 54,609 | 4,193,534 | (4,189,965) | 58,178 | ||
| ============================ | ========================================= | ========================================= | ============================ |
23
Beis Chinuch Lebonos Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2024
24. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2024 | |
| £ | £ | |
| Tangible fixed assets | 127,040 | 127,040 |
| Current assets | 458,546 | 458,546 |
| Creditors less than 1 year | (592,459) | (592,459) |
| Creditors greater than 1 year | (12,649) | (12,649) |
| -------------------------------- | -------------------------------- | |
| Net liabilities | (19,522) | (19,522) |
| ================================ | ================================ | |
| Unrestricted | Total Funds | |
| Funds | 2023 | |
| £ | £ | |
| Tangible fixed assets | 139,945 | 139,945 |
| Current assets | 601,273 | 601,273 |
| Creditors less than 1 year | (657,916) | (657,916) |
| Creditors greater than 1 year | (25,124) | (25,124) |
| -------------------------------- | -------------------------------- | |
| Net liabilities | 58,178 | 58,178 |
| ================================ | ================================ |
25. Analysis of changes in net debt
| At | At | ||
|---|---|---|---|
| 1 Sep 2023 | Cash flows | 31 Aug 2024 | |
| £ | £ | £ | |
| Cash at bank and in hand | 68,976 | (52,418) | 16,558 |
| Debt due within one year | (14,674) | 824 | (13,850) |
| Debt due after one year | (25,124) | 12,475 | (12,649) |
| ---------------------------- | ---------------------------- | ---------------------------- | |
| 29,178 | (39,119) | (9,941) |
|
| ============================ | ============================ | ============================ |
26. Related parties
Beis Chinuch Lebonos Limited is connected to two charitable companies, Forty Limited and Kids N'Action 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 Schechter, 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 Limited paid Forty Ltd £910,000 (2023: £950,000) rent in respect of the school building.
Beis Chinuch Lebonos Ltd Received £11,206 (2023: £12,399) rent from Kids N'Action Ltd in respect of use of some of the building.
There were no other related party transactions in the year.
24