CHARITY REGISTRATION NUMBER: 1050963
The New Rachmistrivka Synagogue Trust
Financial Statements
30 September 2020
COHEN ARNOLD
Chartered accountants& statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
The New Rachmistrivka Synagogue Trust
Financial Statements
Year ended 30 September 2020
| Pages | |
|---|---|
| Trustees' annual report | 1 to 2 |
| Independent auditor's report to the members | 3 to 6 |
| Statement of financial activities | 7 |
| Statement of financial position | 8 |
| Statement of cash flows | 9 |
| Notes to the financial statements | 10 to 14 |
The New Rachmistrivka Synagogue Trust
Trustees' Annual Report
Year ended 30 September 2020
The trustees present their report and the financial statements of the charity for the year ended 30 September 2020.
Reference and administrative details
Registered charity name The New Rachmistrivka Synagogue Trust Charity registration number 1050963 Principal office 12 Portland Avenue LONDON N16 6ET The trustees Mr M Stern Mr D Margulies Mrs R Margulies Auditor Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
Structure, governance and management
The New Rachmistrivka Synagogue Trust is constituted and governed by its Trust Deed dated 28 June 1995 and is an unincorporated charity registered with the Charity Commission (Registration No. 1050963).
The day to day affairs of the Charity are administered by the Board of Trustees, the Chair of which is Mr M Stern.
It is not currently the intention of the Trustees of the Charity to appoint new Trustees. Should the situation change in the future, the Trustees will apply suitable recruitment and training procedures.
None of the Trustees have any beneficial interest in the charity.
Objectives and activities
The Charity's objectives are to promote the Jewish religion and to advance Jewish religious education.
The main activity of the charity is to make grants to Rachmistrivka Institutions.
The Trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the Charity's aims and objectives and in planning future activities.
Achievements and performance
The Trustees consider that the performance of the Charity this year has been most satisfactory.
The aggregate donations made during the year was £1,626,525. No change of activities is envisaged in the immediate future.
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The New Rachmistrivka Synagogue Trust
Trustees' Annual Report (continued)
Year ended 30 September 2020
Financial review
Reserves Policy
The trustees aim to maintain reserves in order that they can continue to fulfil the objects of the Charity.
As at 30 September 2020 the Charity had £18,737 in Unrestricted Funds.
Risk policy
The trustees have identified and reviewed the major risks to which the Charity is exposed, in particular those related to the activities and finance of the Charity, and are satisfied that systems are in place to manage those risks.
Going concern
The charity's main activity is grant making. The trustees have not made any binding commitments and as such are able to control the level of donations and ensure the continued viability of the charity, even during the current uncertainties caused by the global covid-19 pandemic.
Plans for future periods
The Charity plans continuing the activities outlined above in the forthcoming years subject to satisfactory incoming resources.
Trustees' responsibilities statement
The trustees 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).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources, of the charity 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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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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. 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.
The trustees' annual report was approved on 27 July 2021 and signed on behalf of the board of trustees by:
Mr M Stern Trustee
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The New Rachmistrivka Synagogue Trust
Independent Auditor's Report to the Members of The New Rachmistrivka Synagogue Trust
Year ended 30 September 2020
Opinion
We have audited the financial statements of The New Rachmistrivka Synagogue Trust (the 'charity') for the year ended 30 September 2020 which comprise the statement of financial activities, 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 30 September 2020 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 Charities Act 2011.
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:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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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.
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The New Rachmistrivka Synagogue Trust
Independent Auditor's Report to the Members of The New Rachmistrivka Synagogue
Trust (continued)
Year ended 30 September 2020
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.
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 Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees 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.
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The New Rachmistrivka Synagogue Trust
Independent Auditor's Report to the Members of The New Rachmistrivka Synagogue
Trust (continued)
Year ended 30 September 2020
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.
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.
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The New Rachmistrivka Synagogue Trust
Independent Auditor's Report to the Members of The New Rachmistrivka Synagogue
Trust (continued)
Year ended 30 September 2020
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 section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.
New Burlington House 1075 Finchley Road LONDON NW11 0PU
Cohen Arnold Chartered accountants & statutory auditor
27 July 2021
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The New Rachmistrivka Synagogue Trust
Statement of Financial Activities
Year ended 30 September 2020
| 2020 | 2020 | 2019 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 1,663,464 | 1,663,464 | 1,857,041 |
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| Total income | 1,663,464 | 1,663,464 | 1,857,041 | |
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| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Costs of raising donations and legacies | 5 | 30,083 | 30,083 | 126,742 |
| Expenditure on charitable activities | 6,7 | 1,645,943 | 1,645,943 | 1,737,135 |
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| Total expenditure | 1,676,026 | 1,676,026 | 1,863,877 | |
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||
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| Net expenditure and net movement in funds | (12,562) | (12,562) | (6,836) | |
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| Reconciliation of funds | ||||
| Total funds brought forward | 31,299 | 31,299 | 38,135 | |
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| Total funds carried forward | 18,737═════════════ |
18,737═════════════ |
31,299═════════════ |
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 10 to 14 form part of these financial statements.
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The New Rachmistrivka Synagogue Trust
Statement of Financial Position
30 September 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Current assets | ||||
| Cash at bank and in hand | 35,237 | 48,999 | ||
| Creditors: amounts falling due within one year | 11 | 16,500 | 17,700 | |
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| Net current assets | 18,737 | 31,299 | ||
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| Total assets less current liabilities | 18,737 | 31,299 | ||
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| Net assets | 18,737 | 31,299 | ||
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| Funds of the charity | ||||
| Unrestricted funds | 18,737 | 31,299 | ||
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| Total charity funds | 12 | 18,737 | 31,299 | |
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These financial statements were approved by the board of trustees and authorised for issue on 27 July 2021, and are signed on behalf of the board by:
Mr M Stern
Trustee
The notes on pages 10 to 14 form part of these financial statements.
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The New Rachmistrivka Synagogue Trust
Statement of Cash Flows
Year ended 30 September 2020
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net expenditure | (12,562) | (6,836) |
| Adjustments for: | ||
| Accrued income | (1,200) | – |
| Changes in: | ||
| Trade and other creditors | – | 5,000 |
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|
| Cash generated from operations | (13,762) | (1,836) |
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|
| Net cash used in operating activities | (13,762) | (1,836) |
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|
| Net decrease in cash and cash equivalents | (13,762) | (1,836) |
| Cash and cash equivalents at beginning of year | 48,999 | 50,835 |
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|
| Cash and cash equivalents at end of year | 35,237 | 48,999 |
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The notes on pages 10 to 14 form part of these financial statements.
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The New Rachmistrivka Synagogue Trust
Notes to the Financial Statements
Year ended 30 September 2020
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 12 Portland Avenue, London, N16 6ET.
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 Charities Act 2011.
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
The charity's main activity is grant making. The trustees have not made any binding commitments and as such are able to control the level of donations and ensure the the continued viability of the charity, even during the current uncertainties caused by the global covid-19 pandemic.
Judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the charity's accounting policies. There are no areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.
Fund accounting
General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.
Restricted funds are funds subject to specific restricted conditions imposed by donors. There are no restricted funds as at the Balance Sheet date.
Designated funds are funds which have been set aside at the discretion of the Trustees for specific purposes. There are no designated funds as at the Balance Sheet date.
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The New Rachmistrivka Synagogue Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2020
3. Accounting policies (continued)
Incoming resources
All income is 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:
- 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.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. The following specific policies are applied to particular categories of expenditure:
- charitable donations are recognised in the statement of financial activities when paid.
Expenditure is classified under headings of the statement of financial activities to which it relates.
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.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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The New Rachmistrivka Synagogue Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2020
4. Donations and legacies
| Donations and legacies | ||||
|---|---|---|---|---|
| Unrestricted | Total Funds |
Unrestricted | Total Funds | |
| Funds | 2020 |
Funds | 2019 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations Received | 1,663,464 | 1,663,464 |
1,857,041 | 1,857,041 |
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|
| Costs of raising donations and legacies | ||||
| Unrestricted | Total Funds |
Unrestricted | Total Funds | |
| Funds | 2020 |
Funds | 2019 | |
| £ | £ | £ | £ | |
| Costs of raising donations and legacies | ||||
| - Donations | 30,083 | 30,083 |
126,742 | 126,742 |
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|
| Expenditure on charitable activities by fund type | ||||
| Unrestricted | Total Funds |
Unrestricted | Total Funds | |
| Funds | 2020 |
Funds | 2019 | |
| £ | £ | £ | £ | |
| Grants in furtherance of charity's | ||||
| objectives | 1,626,525 | 1,626,525 |
1,723,173 | 1,723,173 |
| Support costs | 19,418 | 19,418 |
13,962 | 13,962 |
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|
| 1,645,943 | 1,645,943 |
1,737,135 | 1,737,135 | |
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|
| Expenditure on charitable activities by activity type | ||||
| Grant funding | Total funds | Total fund | ||
| of activities | Support costs | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Grants in furtherance of charity's | ||||
| objectives | 1,626,525 | 2,648 |
1,629,173 | 1,728,638 |
| Governance costs | – | 16,770 |
16,770 | 8,497 |
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|
| 1,626,525 | 19,418 |
1,645,943 | 1,737,135 | |
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5. Costs of raising donations and legacies
6. Expenditure on charitable activities by fund type
7. Expenditure on charitable activities by activity type
Of the total grants paid, £1,597,446 (2019: £1,612,723) went to support the Rachmistrivka Institutions and institutions connected to Rachmistrivka. All grants were paid to institutions.
8. Net expenditure
Net expenditure is stated after charging/(crediting):
| Net expenditure is stated after charging/(crediting): | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Foreign exchange differences | – | (6) |
| Fees payable for the audit of the financial statements | 6,000 | 7,560 |
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9. Staff costs
No salaries or wages were paid to employees, including the members of the committee, during the year.
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The New Rachmistrivka Synagogue Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2020
10. Trustee remuneration and expenses
The charity did not meet any individual expenses incurred by the trustees for services provided to the charity.
11. Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Accruals and deferred income | 6,000 | 7,200 |
| Loan Creditors | 10,500 | 10,500 |
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|
| 16,500 | 17,700 | |
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12. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | ||||||
| At | 1 Oct 2019 | Income |
Expenditure | 30 Sep 2020 | ||
| £ | £ | £ | £ | |||
| General funds | 31,299 | 1,663,464 |
(1,676,026) | 18,737 |
||
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| At | ||||||
| At | 1 Oct 2018 | Income |
Expenditure | 30 Sep 2019 | ||
| £ | £ | £ | £ | |||
| General funds | 38,135 | 1,857,041 |
(1,863,877) | 31,299 |
||
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| 13. | Analysis of net assets between funds | |||||
| Unrestricted | Total Funds | |||||
| Funds | 2020 | |||||
| £ | £ | |||||
| Current assets | 35,237 | 35,237 | ||||
| Creditors less than 1 year | (16,500) | (16,500) |
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| Net assets | 18,737 | 18,737 | ||||
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| Unrestricted | Total Funds | |||||
| Funds | 2019 | |||||
| £ | £ | |||||
| Current assets | 48,999 | 48,999 | ||||
| Creditors less than 1 year | (17,700) | (17,700) |
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| Net assets | 31,299 | 31,299 | ||||
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| 14. | Analysis of changes in net debt | |||||
| At | ||||||
| At 1 Oct 2019 | Cash flows | 30 Sep 2020 | ||||
| £ | £ | £ | ||||
| Cash at bank and in hand | 48,999 | (13,762) | 35,237 |
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The New Rachmistrivka Synagogue Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2020
15. Related parties
Loan creditors in Note 11 relates to £5,000 due to M Stern (2019: £5,000) and £5,500 to a company of which M Stern is a director (2019: £5,500). There are no interest charges and the amounts are repayable on demand.
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