Charity registration number 1092671
BRITISH FRIENDS OF KUPAT HA'IR
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
BRITISH FRIENDS OF KUPAT HA'IR
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr. J. D. G. Kruskal Mr. M. C. Elzas Mr. D. Lobenstein Charity number 1092671 Principal address 93 Fairholt Road London N16 5EP Auditor Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
BRITISH FRIENDS OF KUPAT HA'IR
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent auditor's report | 3 - 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the financial statements | 9 - 13 |
BRITISH FRIENDS OF KUPAT HA'IR
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).
Objectives and activities
The primary object of the charity is to raise funds for and and make grants to Kupat Ha'ir, Israel. The objects of this charity are the relief of poverty and the relief of the aged, feeble and infirm amongst persons of the Jewish faith in any part of the world, and in particular in the town of Bnei Brak, Israel.
The objective is achieved through heightening public awareness of the charity and through the collection of monetary donations from individuals and companies.
There have been no changes in objects and policies during the year.
Apart from the trustees. the charity has not engaged volunteers.
Public benefit
The trustees have paid due regard to the public benefit guidance issued by the charity commission in deciding the allocation of funds.
Achievements and performance
Grants are made to organisations in accordance with the objectives of the charity.
Financial review
Resulting from the hard work of all those involved, total incoming resources for the year amounted to £1,655,128 (2021: £722,122). Grants to Kupat Ha'ir , Israel during the year amounted to £1,581,162 (2021: £700,000).
Grants are made dependent upon incoming resources and the Trustees wish to thank all those who contributed so generously through the year and whose contributions have made such a difference to Kupat Ha'ir, Israel.
In the current year, fundraising appeals were launched prior to Jewish festivals. These were successful in raising funds that were forwarded to the Israel branch of Kupat Ha'ir, to be used by the charity in fulfilment of its goals.
The charity's assets are held in the form of cash at bank. No investments are held.
The charity aims to distribute its unrestricted funds as soon as it is able , however at the same time sufficient reserves are maintained to meet grant payments for the foreseeable future. At the year end unrestricted reserves totalled £46,426 (2021: £33,098).
The trustees have examined the major strategic business and operational risks which the charity faces and confirmed that systems have been established to enable regular reports to be made so that necessary steps can be taken to lessen these risks.
Plans for future periods
The Trustees believe that there is scope for the continuation and development of the activities of the charity.
Structure, governance and management
The charity is governed by a Trust Deed dated 1st of April 2002. The charity is a registered charity (charity number 1092671) in England and Wales and is unincorporated. The address of the principal office is 93 Fairholt Road, London, N16 5EP.
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BRITISH FRIENDS OF KUPAT HA'IR
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
The trustees who served during the year and up to the date of signature of the financial statements were: Mr. J. D. G. Kruskal Mr. M. C. Elzas Mr. D. Lobenstein
When appointing new Trustees, efforts are made to recruit individuals with a breadth of interests, social awareness and knowledge of the Jewish community . Potential and newly appointed Trustees are provided with full information about the work of the charity.
The trustees determine the general policy of the charity and are responsible for its day to day running.
They meet regularly to assess the payment of grants.
Statement of trustees' responsibilities
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 trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
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 Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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' report was approved by the Board of Trustees.
Mr. D. Lobenstein Trustee
18 January 2023
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BRITISH FRIENDS OF KUPAT HA'IR
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF BRITISH FRIENDS OF KUPAT HA'IR
Opinion
We have audited the financial statements of British Friends of Kupat Ha'ir (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 March 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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
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.
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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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BRITISH FRIENDS OF KUPAT HA'IR
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH FRIENDS OF KUPAT HA'IR
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, 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 cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
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We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards).
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We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
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Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of noncompliance.
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We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
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We performed analytical procedures to identify any unusual or unexpected relationships.
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We examined supporting documents for all material balances, transactions and disclosures.
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We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions.
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We reviewed the Board of trustees’ minutes.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
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BRITISH FRIENDS OF KUPAT HA'IR
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH FRIENDS OF KUPAT HA'IR
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Landau Morley LLP 18 January 2023 Chartered Accountants Statutory Auditor 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
Landau Morley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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BRITISH FRIENDS OF KUPAT HA'IR
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 661,035 994,082 Investments 4 11 - Total income 661,046 994,082 Expenditure on: Charitable activities 5 647,718 964,082 Net income/(expenditure) for the year/ Net movement in funds 13,328 30,000 Fund balances at 1 April 2021 33,098 - Fund balances at 31 March 2022 46,426 30,000 |
Total Unrestricted funds 2022 2021 £ £ 1,655,117 722,103 11 19 1,655,128 722,122 1,611,800 737,579 43,328 (15,457) 33,098 48,555 76,426 33,098 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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BRITISH FRIENDS OF KUPAT HA'IR
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Income funds Restricted funds 11 Unrestricted funds |
2022 £ 79,426 (3,000) |
£ 76,426 30,000 46,426 76,426 |
2021 £ 33,098 - |
£ 33,098 |
|---|---|---|---|---|
| - 33,098 |
||||
| 33,098 |
The financial statements were approved by the Trustees on 18 January 2023
Mr. D. Lobenstein Trustee
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BRITISH FRIENDS OF KUPAT HA'IR
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
| Notes Cash flows from operating activities Cash generated from/(absorbed by) operations 14 Investing activities Investment income received Net cash generated from investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ 11 |
£ 46,317 11 - 46,328 33,098 79,426 |
2021 £ £ (15,476) 19 19 - (15,457) 48,555 33,098 |
|---|---|---|---|
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BRITISH FRIENDS OF KUPAT HA'IR
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
British Friends of Kupat Ha'ir is a charity registered in England and Wales and is unincorporated. The address of the principal office is 93 Fairholt Road, London, N16 5EP.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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. Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable sims for the benefit of its beneficiaries, including those support costs and costs relating to governance of the charity apportioned to its charitable activities.
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BRITISH FRIENDS OF KUPAT HA'IR
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | Restricted | Total | Unrestricted | |
|---|---|---|---|---|
| funds | funds | funds | ||
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Donations and gifts | 661,035 | 994,082 | 1,655,117 | 722,103 |
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 11 | 19 |
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BRITISH FRIENDS OF KUPAT HA'IR
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
5 Charitable activities
| Grant funding of activities (see note 6) Share of support costs (see note 7) Analysis by fund Unrestricted funds Restricted funds |
2022 £ 1,581,162 30,638 1,611,800 647,718 964,082 1,611,800 |
2021 £ 700,000 37,579 |
|---|---|---|
| 737,579 | ||
| 737,579 - |
||
| 737,579 |
6 Grants payable
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Grants to institutions: | ||
| Kupat Ha'ir, Bnei Brak | 1,581,162 | 700,000 |
Grants totalling £1,581,162 (2021: £700,000) were made to Kupat Ha'ir, Israel for the purpose of the relief of property and the relief of the aged, feeble and infirm in Israel.
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BRITISH FRIENDS OF KUPAT HA'IR
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
7 Support costs
| Support costs £ Advertising and PPS 21,589 Telephone 1,009 Bank and credit card charges 850 Audit and Accountancy fees 7,190 30,638 Analysed between Charitable activities 30,638 Support costs include governance costs of £7,190 (2021: £1,680). |
2022 £ 21,589 1,009 850 7,190 30,638 30,638 |
2021 £ 34,090 864 945 1,680 |
|---|---|---|
| 37,579 | ||
| 37,579 | ||
Support costs include £5,740 (2021: £1,680) payable to the Auditor.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration, reimbursement of expenses or benefits from the charity during the year.
9 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Number | Number | ||
| Total | - | - | |
| There were no employees whose annual remuneration was more than £60,000. | |||
| 10 | Creditors: amounts falling due within one year | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Accruals and deferred income | 3,000 | - |
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BRITISH FRIENDS OF KUPAT HA'IR
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
11 Restricted funds
The funds of the charity include restricted funds comprising the following amounts donated for specific purposes
| Movement | Movement in funds | Movement in funds | |||||
|---|---|---|---|---|---|---|---|
| in funds | |||||||
| Incoming | Balance at |
Incoming | Resources | Balance at | |||
| resources | 1 April | 2021 | resources | expended | 31 March | ||
| £ | £ | £ | £ | 2022 £ |
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| Specific appeals | - | - | 994,082 | (964,082) | 30,000 | ||
| 12 | Analysis of net assets between funds | ||||||
| Unrestricted | Restricted | Total | Unrestricted | ||||
| funds | funds | funds | |||||
| 2022 | 2022 | 2022 | 2021 | ||||
| £ | £ | £ | £ | ||||
| Fund balances at 31 March 2022 are represented | |||||||
| by: | |||||||
| Current assets/(liabilities) | 46,426 | 30,000 | 76,426 | 33,098 | |||
| 46,426 | 30,000 | 76,426 | 33,098 | ||||
| 13 | Related party transactions | ||||||
| There were no disclosable related party transactions during the year (2021 - none). | |||||||
| 14 | Cash generated from operations | 2022 | 2021 | ||||
| £ | £ | ||||||
| Surplus/(deficit) for the year | 43,328 | (15,457) | |||||
| Adjustments for: | |||||||
| Investment income recognised in statement of financial | activities | (11) | (19) | ||||
| Movements in working capital: | |||||||
| Increase in creditors | 3,000 | - | |||||
| Cash generated from/(absorbed by) operations | 46,317 | (15,476) | |||||
| 15 | Analysis of changes in net funds | ||||||
| The charity had no debt during the year. |
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