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2021-07-31-accounts

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

COMPANY REGISTRATION NUMBER: 03812319

CHARITY REGISTRATION NUMBER: 1081386

Starlow Charities Limited

Company Limited by Guarantee Financial Statements

31 July 2021

COHEN ARNOLD

Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Financial Statements

Year ended 31 July 2021

Pages
Trustees' annual report (incorporating the director's report) 1 to 6
Independent auditor's report to the members 7 to 11
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 to 23

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 July 2021

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 July 2021.

Reference and administrative details

Registered charity name Starlow Charities Limited Charity registration number 1081386 Company registration number 03812319 Principal office and registered New Burlington House office 1075 Finchley Road London NW11 0PU The trustees A Shwarts E Low A Low Mr B D Rudzinski Mr I Hochhauser Auditor Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU Bankers Barclays Bank Plc Leicester LE87 2BB

Structure, governance and management

Governing Document

Starlow Charities Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 15th July 1999.

Appointment, Training and Recruitment of Trustees

As set out in the Articles of Association the members of the charity shall be unlimited.

Membership shall be open to anyone the Trustees, by a majority vote, agree will further the aims and objectives of the Charity.

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.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 July 2021

Structure, governance and management (continued)

Organisation

The number of Members of the Company shall be unlimited and the Trustees may from time to time determine such classes of membership as the Commissioners shall see fit providing that the classification of such membership is designed to further the aims and objects of the Charity.

Employee and Trustee Remuneration

The charity has no staff other than the 5 trustees all of whom give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2020:5).

The charity did not meet any expenses (2020: £nil) incurred by the trustees for services provided to the charity.

Risk Management

The trustees have identified and reviewed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate those risks.

Financial risk management and policies

The charity holds or issues financial instruments in order to achieve three main objectives being:

a) to finance its operations

b) to manage its exposure to interest and currency risks arising from operations and from its sources of finance; and

c) to generate funds.

In addition various financial instruments (e.g. debtors, creditors, prepayments and accruals) arise directly from the charity's operations.

Credit risk

The charity monitors credit risk closely and considers that its current policies of credit risk checks meets its objectives of managing exposure to credit risk.

The charity has no significant concentrations of credit risk. Amounts shown in the balance sheet represent the maximum anticipated credit risk exposure.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Covid-19 Pandemic

The trustees have considered the impact of the post balance sheet Covid-19 pandemic on the income of the charity and the valuation of its assets. The current downturn in the UK economy may lead to a fall in investment income of the Charity resulting in the Charity limiting its grant making activities. The full financial effects of the pandemic on the valuation of assets cannot currently be quantified.

The outbreak of covid-19 during 2020 has presented the charity with some challenges regarding investment income which the trustess believe will continue for the foreseeable future. This risk is beyond the control of the charity and represents uncertainty to the income of the charity.

Notwithstanding the uncertainties mentioned, the financial statements have been prepared in

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 July 2021

Structure, governance and management (continued)

accordance with the accounting principles appropriate to a going concern, as the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the charity and available sources of finance. The Trustees recognise that they have the ability to to exercise control over the charity's grant making charitable activities due to the absence of any legally binding obligations.

Objectives and activities

The objects of the charity are:

The trustees have considered the Charity Commission's general guidance on public benefit.

Aims, objectives and activities for public benefit

The aim of the charity is to be self funding from the income from its investment assets, namely the investment properties.

The charity does not engage in fund raising activities, however welcomes donations from other charities and organisations to fund its activities.

The aim of the charity (both short term and long term) is grant making in order to meet its primary objectives as set out above. The charity makes grants to other charities and success is measured by the grants it makes in a year and utilising past reserves in lean times.

Public Benefit

The trustees confirm that they have referred to the guidelines contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policies for the year and complied with its duty to have due regard to the commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

The grant making policy of the charity as stated below helps the charity to fulfill its duty to act for the public benefit in accordance with section 4 of the Charities Act 2011.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 July 2021

Objectives and activities (continued)

Grant making policy

This charity was established to support the activities of Jewish religious organisations, especially in the field of education and to provide philanthropic aid to the needy. Grants are made to charitable institutions and organisations which conform to the objects of the charity after the trustees have satisfied themselves as to the bona fides of the recipients. Donations are made to organisations providing a sound religious education in accordance with doctrines and principles of traditional Judaism and to institutions set up to provide aid to the needy, with a view to achieving the objects of the charity.

In doing so, the charity has complied with its duty to act for the public benefit in accordance with section 4 of The Charities Act 2011.

Starlow Charities Limited regularly supports charitable organisations and institutions both in respect of revenue and capital projects.

Achievements and performance

The main areas of charitable activity are the provision of financial support to Jewish organisations engaging in education, advancement of religion in accordance with the Jewish faith and to give philanthropic aid to the needy. This year Starlow Charities Limited distributed donations of £1.1m (2020: £1.2m).

Financial review

The charity is dependant on grants and donations received from other charities and organisations as well as its investment activities. The rental income that arose from the charity's investment properties this year was £505,424 (2020: £448,919) and income from loan interest was £152,688 (2020: £71,869), after including the small amount of bank interest received £5 (2020: £47) total investment income for the year amounted to £658,117 (2020:£520,835). Besides this £79,497 (2020 : £554,300) were received as donations from other charities and organisations.

Key performance indicators (KPIs)

The Trustees monitor the Charity's performance progress against its strategic objectives and the financial performance of its operations on a regular basis. Performance is assessed against the strategy and expectations using financial and non financial measures. The most significant KPIs used by the charity are as follows:

ty are as follows:
2021 2020
£ £
Grants and donations received 79,497 554,300
Investment income 658,117 520,835
Donations paid out 1,069,010 1,205,393

Investment Powers and Performance

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit provided any moneys are not immediately required for use in connection with any of its objects. The trustees regularly review the charity's position and needs in respect of the investment policy.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 July 2021

Plans for future periods

The charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory incoming resources.

Fixed Assets

The charity holds investment property in order to generate funds to finance its grant making activities.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely administrative costs of the charity for the next year.

At the year end, the charity had £8,082,311 (2020: £8,761,125) of realised free reserves and £90,850 (2020: £90,850) of unrealised reserves.

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:

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.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 July 2021

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

26/5/2022 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

A Low Trustee

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Starlow Charities Limited

Year ended 31 July 2021

Opinion

We have audited the financial statements of Starlow Charities Limited (the 'charity') for the year ended 31 July 2021 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:

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.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Starlow Charities Limited (continued)

Year ended 31 July 2021

Emphasis of matter

In forming our opinion of the financial statements, which is not modified, we would draw attention to the material uncertainty as reported in page 2 of the Trustees' Annual Report: Covid-19 Pandemic.

Uncertainties related to the effects of Covid-19 are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as the valuation of investment property and related disclosures, and the appropriateness of the going concern basis of preparation of the financial statements. These depend on assessments of the future economic environment and the company's future prospects and performance.

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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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Starlow Charities Limited (continued)

Year ended 31 July 2021

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 and the Charities Act 2011 requires us to report to you if, in our opinion:

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.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Starlow Charities Limited (continued)

Year ended 31 July 2021

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:

 We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the trustees (directors) and senior management and identified which were most significant with respect to the financial statements. We identified financial reporting legislation (including related companies legislation) and taxation legislation as being most significant to these financial statements. We communicated these identified frameworks throughout our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise noncompliance with laws and regulations.

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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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Starlow Charities Limited (continued)

Year ended 31 July 2021

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.

Moshe Broner-Cohen (Senior Statutory Auditor)

For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

26/5/2022 Date: ............................................

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 July 2021

Year ended 31 July 2021 2021
2021 2020
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 79,497 79,497 554,300
Investment income 6 658,117 658,117 520,835
  
Total income 737,614 737,614 1,075,135
  
Expenditure
Expenditure on raising funds:
Investment management costs 7 (155,214) (155,214) (150,742)
Expenditure on charitable activities 8,9 (1,261,214) (1,261,214) (1,421,121)
  
Total expenditure (1,416,428) (1,416,428) (1,571,863)
  
  
Net expenditure and net movement in funds (678,814) (678,814) (496,728)
  
Reconciliation of funds
Total funds brought forward 8,851,975 8,851,975 9,348,703
  
Total funds carried forward 8,173,161 8,173,161 8,851,975
  

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 23 form part of these financial statements.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Statement of Financial Position

31 July 2021

31 July 2021
2021 2020
Note £ £ £
Fixed assets
Tangible fixed assets 14 10,102,362 10,102,362
Current assets
Debtors 15 2,820,646 3,623,993
Cash at bank and in hand 55,284 32,423
 
2,875,930 3,656,416
Creditors: amounts falling due within one year 16 (302,134) (248,898)
 
Net current assets 2,573,796 3,407,518
 
Total assets less current liabilities 12,676,158 13,509,880
Creditors: amounts falling due after more than
one year 17 (4,502,997) (4,657,905)
 
Net assets 8,173,161 8,851,975
 
Funds of the charity
Unrestricted funds 8,173,161 8,851,975
 
Total charity funds 18 8,173,161 8,851,975
 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 26/5/2022........................, and are signed on behalf of the board by:

A Low Trustee

The notes on pages 15 to 23 form part of these financial statements.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 July 2021

Year ended 31 July 2021
2021 2020
£ £
Cash flows from operating activities
Net expenditure (678,814) (496,728)
Adjustments for:
Dividends, interest and rents from investments (505,424) (448,919)
Other interest receivable and similar income (152,693) (71,916)
Interest payable and similar charges 36,922 61,762
Accrued expenses/(income) 6,600 (6,040)
Changes in:
Trade and other debtors 803,347 463,671
Trade and other creditors 43,526 35,070
 
Cash generated from operations (446,536) (463,100)
Interest paid (37,312) (61,329)
Interest received 152,693 71,916
 
Net cash used in operating activities (331,155) (452,513)
 
Cash flows from investing activities
Dividends, interest and rents from investments 505,424 448,919
Purchase of tangible assets – (1,032,962)
 
Net cash from/(used in) investing activities 505,424 (584,043)
 
Cash flows from financing activities
Proceeds from borrowings (151,408) 956,562
 
Net cash (used in)/from financing activities (151,408) 956,562
 
Net increase/(decrease) in cash and cash equivalents 22,861 (79,994)
Cash and cash equivalents at beginning of year 32,423 112,417
 
Cash and cash equivalents at end of year 55,284 32,423
 

The notes on pages 15 to 23 form part of these financial statements.

- 14 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 July 2021

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 New Burlington House, 1075 Finchley Road, London, NW11 0PU.

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

Incoming Resources

All donations are recognised in the Statement of Financial Activities (SOFA) of the charity when received. All other income is recognised on a receivable basis.

Liability Recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Charitable Activities

Charitable activities are only recognised in the accounts when paid.

Governance Costs

Governance costs include the cost of the preparation and audit of the financial statements and the cost of any legal advice to the trustees on governance or constitutional matters.

Fund Accounting

General unrestricted funds comprise the accumulated surplus or deficit on the statement of financial activities. 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 or donors for specific purposes. There are no designated funds as at the Balance Sheet date.

Non-charitable commercial funds are funds which have been accumulated in the subsidiaries.

Taxation

The Charity is not liable to direct taxation (Corporation Tax) on its income which falls within the various exemptions available to registered charities. The Charity is not registered for valued added tax (VAT) and is therefore unable to reclaim any input tax it suffers on its purchases. Expenditure in the accounts is therefore shown inclusive of VAT where appropriate.

- 15 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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.

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:

- 16 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

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:

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.

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.

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 cashgenerating 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.

- 17 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

Impairment of fixed assets (continued)

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.

Financial instruments

A financial asset or a financial liability is recognised only when the charity 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.

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.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

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.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

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.

4. Limited by guarantee

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

- 18 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

5. Donations and legacies

Donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations
Donations received 79,497 79,497 554,300 554,300
   
Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Income from investment properties 505,424 505,424 448,919 448,919
Bank interest receivable 5 5 47 47
Loan interest receivable 152,688 152,688 71,869 71,869
   
658,117 658,117 520,835 520,835
   

6. Investment income

Loan interest receivable during the year was received from companies connected with the trustees or their family members.

7. Investment management costs

Investment management costs
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Property repairs and maintenance
charges 46,696 46,696 63,028 63,028
Insurance 26,922 26,922 15,971 15,971
Council and Water Rates 1,935 1,935 7,873 7,873
Management, Lettings and Lease Fees 27,978 27,978 16,054 16,054
Gas and Electricity 5,316 5,316 6,364 6,364
Cleaning and Caretaking 20,411 20,411 32,982 32,982
Legal and Professional 25,956 25,956 8,470 8,470
   
155,214 155,214 150,742 150,742
   
Expenditure on charitable activities by fund type
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations Paid 1,069,010 1,069,010 1,205,393 1,205,393
Support costs 192,204 192,204 215,728 215,728
   
1,261,214 1,261,214 1,421,121 1,421,121
   

8. Expenditure on charitable activities by fund type

- 19 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

9. Expenditure on charitable activities by activity type

Grant funding Total funds Total fund
of activities Support costs 2021 2020
£ £ £ £
Donations Paid 1,069,010 – 1,069,010 1,205,393
Governance costs – 192,204 192,204 215,728
   
1,069,010 192,204 1,261,214 1,421,121
   
10. Analysis of support costs
Administration
costs Finance costs Total 2021 Total 2020
£ £ £ £
Governance costs 11,385 180,819 192,204 215,728
   
11. Analysis of grants
2021 2020
£ £
Grants to institutions
United Talmudical Association Ltd. – 40,500
Ezer V'hatzala Ltd. – 66,700
Ezer Bekovoid Ltd. 154,240 101,000
Chevras Mo'oz Ladol 219,000 208,900
Trenhill Limited – 50,715
Keren Ezra Mimeitzar 132,000 209,000
Chesed Shel Emes – 40,900
Tchabe Kollel Ltd 52,700 –
Less than £40,000 511,070 487,678
 
1,069,010 1,205,393
 
Total grants 1,069,010 1,205,393
 

The charity has during the year made charitable donations to various institutions and individuals and the donations have been made for general charitable purposes.

12. Auditors remuneration

Fees payable for the audit of the financial statements

2021 2020
£ £
10,990
		 3,960


13. Trustee remuneration and expenses

The Charity has no staff other than the 5 trustees, all of whom give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2020: £nil).

The Charity did not meet any individual expenses (2020: £nil) incurred by the Trustees for services provided to the Charity.

- 20 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

14. Tangible fixed assets

14. Tangible fixed assets
Land and
buildings
£
Cost
At 1 August 2020 and 31 July 2021 10,102,362

Depreciation
At 1 August 2020 and 31 July 2021 –

Carrying amount
At 31 July 2021 10,102,362

At 31 July 2020 10,102,362

15. Debtors
2021 2020
£ £
Trade debtors 133,101 101,431
Prepayments and accrued income 11,759 47,488
Other debtors 2,675,786 3,475,074
 
2,820,646 3,623,993
 

The analysis of Other debtors due after more than one year is as follows:

2021 2020
£ £
Paldon Investments Limited 206,296 658,125
Timesquare Properties Limited – 29,548
Prostar Holdings Limited 2,453,144 2,771,127
 
2,659,440 3,458,800
 

The above loans were made to companies connected with the trustees or their families and all loans are secured against properties of the various companies

Interest on the loan with Timesquare Properties Ltd is charged at 6.5% per annum and the loan was fully repayed in our year.

Interest on the loan with Paldon Investments Ltd is charged at 5% per annum and the loan is due for repayment on 12 July 2023. Trustees Mr A Low and Mrs E Low are directors of this company.

Interest on the loan with Prostar Holdings Ltd is charged at 5% per annum and the loan is due for repayment on 12 July 2023. Trustee Mr A Shwarts is a director of this company.

- 21 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

16. Creditors: amounts falling due within one year

16. Creditors: amounts falling due within one year
2021 2020
£ £
Bank loans and overdrafts 153,500 150,000
Trade creditors 102,764 74,238
Accruals and deferred income 30,870 24,660
Other creditors 15,000 –
 
302,134 248,898
 
17. Creditors: amounts falling due after more than one year
2021 2020
£ £
Bank loans and overdrafts 4,502,997 4,657,905
 
Loan Maturity Analysis
2021 2020
£ £
Due in less than 1 Year 153,500 150,000
Due between 2 to 5 Years 615,000 600,000
Due in more than 5 Years 3,887,997 4,057,905
 
Total Due 4,656,497 4,807,905
Amount due in less than 1 year (153,500) (150,000)
 
Total due in more than 1 Year 4,502,997 4,657,905
 

18. Analysis of charitable funds

Unrestricted funds

At 1 At 31
August 2020 Income Expenditure July 2021
£ £ £ £
General funds 8,761,125 737,614 (1,416,428) 8,082,311
Fair value reserve 90,850 – – 90,850
   
8,851,975 737,614 (1,416,428) 8,173,161
   
At 1 At 31
August 2019 Income Expenditure July 2020
£ £ £ £
General funds 9,257,853 1,075,135 (1,571,863) 8,761,125
Fair value reserve 90,850 – – 90,850
   
9,348,703
		 1,075,135
		 (1,571,863)
		 8,851,975


- 22 -

DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

19. Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Total Funds
Funds 2021
£ £
Tangible fixed assets 10,102,362 10,102,362
Current assets 2,875,930 2,875,930
Creditors less than 1 year (302,134) (302,134)
Creditors greater than 1 year (4,502,997) (4,502,997)
 
Net assets 8,173,161 8,173,161
 
Unrestricted Total Funds
Funds 2020
£ £
Tangible fixed assets 10,102,362 10,102,362
Current assets 3,656,416 3,656,416
Creditors less than 1 year (248,898) (248,898)
Creditors greater than 1 year (4,657,905) (4,657,905)
 
Net assets 8,851,975 8,851,975
 
Analysis of changes in net debt
At At
1 Aug 2020 Cash flows 31 Jul 2021
£ £ £
Cash at bank and in hand 32,423 22,861 55,284
Debt due within one year (150,000) (3,500) (153,500)
Debt due after one year (4,657,905) 154,908 (4,502,997)
  
(4,775,482) 174,269 (4,601,213)
  

20. Analysis of changes in net debt

21. Related parties

Donations received includes amounts aggregating £Nil (2020: £100,000) from Lexton Investments Limited and £Nil (2020: £175,000) from Lowdale Properties Limited, companies connected to trustees.

Related party debtors have been disclosed in note 15.

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DocuSign Envelope ID: CCAAAD2A-0D06-425D-BC10-DA78D092F9A1

Starlow Charities Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 July 2021

19. Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Total Funds
Funds 2021
£ £
Tangible fixed assets 10,102,362 10,102,362
Current assets 2,875,930 2,875,930
Creditors less than 1 year (302,134) (302,134)
Creditors greater than 1 year (4,502,997) (4,502,997)
 
Net assets 8,173,161 8,173,161
 
Unrestricted Total Funds
Funds 2020
£ £
Tangible fixed assets 10,102,362 10,102,362
Current assets 3,626,553 3,626,553
Creditors less than 1 year (219,035) (219,035)
Creditors greater than 1 year (4,657,905) (4,657,905)
 
Net assets 8,851,975 8,851,975
 
Analysis of changes in net debt
At At
1 Aug 2020 Cash flows 31 Jul 2021
£ £ £
Cash at bank and in hand 32,423 22,861 55,284
Debt due within one year (150,000) (3,500) (153,500)
Debt due after one year (4,657,905) 154,908 (4,502,997)
  
(4,775,482) 174,269 (4,601,213)
  

20. Analysis of changes in net debt

21. Related parties

Donations received includes amounts aggregating £Nil (2020: £100,000) from Lexton Investments Limited and £Nil (2020: £175,000) from Lowdale Properties Limited, companies connected to trustees.

Related party debtors have been disclosed in note 15.

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