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2020-08-31-accounts

Charity Registration No. 1100332

Company Registration No. 04877476 (England and Wales)

BRITISH FRIENDS OF BOYS TOWN JERUSALEM

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees I H Brecker
E Ehrhardt
J R Moshi
Professor S L Stanton
D Garbacz
I Z Mockton (Appointed 23 August 2020)
T R Laws (Appointed 23 August 2020)
Charity number 1100332
Company number 4877476
Registered office Schaller House
44a Albert Road
London
NW4 2SJ
Independent examiner Gerald Edelman
73 Cornhill
London
EC3V 3QQ

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 16

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees who are also directors of the Charity for the purpose of the Companies Act 2006, present their report and financial statements for the year ended 31 August 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The main objectives of the Charity are as follows:

The School

Boys Town Jerusalem ('the School') is a residential school encompassing grades 7-12 and a two-year College of Applied Engineering. The curriculum, which is certified by Israel’s Ministry of Education, combines the timeless values of Jewish heritage, secular education and applied technology relevant for contemporary society. British Friends of Boys Town Jerusalem helps support of all who share its vision of turning otherwise disadvantaged Israeli youth into productive citizens of tomorrow.

All the students come from disadvantaged backgrounds and 95% require financial assistance in order to receive a first-class secular education, broad Jewish curriculum, full residential boarding facilities, three freshly-prepared meals each day, dedicated counselling & special needs services, one-to-one tutoring support, & extra-curricular programme spanning educational, sporting, volunteering, social and communal activities.

Activities

During the period to 31st August 2020, a number of the Charity’s planned events were cancelled due to the pandemic, such as the Golf Day. In the face of the UK lockdown, the Charity relied on increasing the frequency of postal and email campaigns to its existing customer base.

The only notable fundraising event was the 13th Annual Choral Festival took place at the Artsdepot in London on the 9th February 2020. The day was hosted by Jonny Caplan from Amazon’s TechTalk series and had 8 Jewish Primary Schools participating with more than 700 guests.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

Achievements & Performance

Over 7,500 boys have graduated from Boys Town, Jerusalem since it opened in 1949 and, despite their disadvantaged backgrounds, these young men have gone on to make major contributions to their communities and the State of Israel. Academic results for the school significantly exceed the national average, with a 96% pass rate in Israel’s Bagrut exams compared to the national average of 70%.

Boys Town Jerusalem has transformed the lives of thousands of young Israelis, giving them and the state of Israel a brighter future. Today, 930 boys attend this remarkable school. The graduates continue to be best placed to contribute back to Israeli society.

The charitable work of British Friends of Boys Town Jerusalem supports Israel’s most vulnerable children by providing them with the self belief and skills they require to benefit from a constructive future.

The notable milestones achieved during this financial year were:

The trustees are pleased with the consequences of removing the overheads associated running the UK office, both in financial and operational terms. In a period where only 8 of the 12 months benefited from these saving, the Charity nevertheless delivered a substantially improved gross to net income conversion. This action has also improved the Charity’s credibility with high value discerning donors.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

The transition to a new operational model has been relatively smooth and has been supported by the use of video communications such as Zoom to maintain regular dialogue between with UK trustees and the operations at the School. The period has already translated in efficiencies and synergies through the Charity’s closer integration with its worldwide sister charities.

Unfortunately, Covid-19 wiped out the event program scheduled for the second half of the year. The pandemic has created uncertainties amongst the Charity’s donor base and has highlighted several higher profile charities that may be competing for donations. The Charity was also impacted by the sudden unanticipated resignation of its Chairman due to ill health, who all trustees are delighted has had a good recovery and pleased that he has accepted an honorary VicePresident position.

In view of these issues raised as well as some indications from the start of the following financial year, there are concerns whether the Charity can sustain the level of gross income raised during previous years, especially as the trustees note this year’s results have benefited from an exceptional one-off high value donor donation as last year’s figures did from an exceptional one-off legacy.

Public benefit

British Friends of Boys Town Jerusalem is to benefit economically deprived youth in Israel to give then a hope and a future by practical support from donations made by individuals and organisations worldwide.

The trustees have considered the objectives and activities and concluded:

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

Plans for future periods

In view of the sustained impact of Covid-19, the trustees have cancelled the tri-annual dinner which would have taken place at the start of 2021. The choral festival is planned to be moved to an online forum which will feature pupils worldwide and not just those from UK schools as in previous years which is a good example of the Charity working more in a joined-up manner with its overseas counterparts. The Charity has commenced started delivering a range of virtual events to new and existing donors and aims to recommence outdoor events where possible such as the Golf Day.

The Charity intends to look for voluntary administrative assistance to support the UK trustees who have fulfilled this role to date, as campaigns remain reliant on a high volume of paper through the UK post.

Reserves policy

The policy is to maintain the equivalent of one quarter of budgeted operating expenditure as unrestricted reserves in order to cover shortfalls. Since the removal of the staff and office rent, there is no longer a requirement to meet monthly overheads, and the planning horizon is now focused largely on the scale and timing of income expenditure from upcoming campaigns.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

In the first four months of the financial year, the trustees delegated day to day running of the Charity to the Executive Development Director, who was a full-time employee based at Alexander House in London. After a six-week transition period, this role was effectively handed over to the UK Development Coordinator, Joshua Churney, based at the School. The Executive Development Director and the UK Development Coordinator were responsible for delivering the various day to day operational activities under the guidance of the trustees such as fundraising, marketing communications, and visits to the School, as well as delivering global synergies (such as combining marketing communications and leveraging functional expertise) with the International Development Director, Yoni Strimber, who is also based at the School and overseas fundraising worldwide including across United States, Canada, Israel and Australia.

The trustees are divided into two subcommittees; the Finance Committee, led by the Treasurer, broadly responsible for accounting, reporting & fund management of the Charity; the Events Committee broadly responsible for the planning & execution of events. All trustees are tasked with fund raising.

The Chairman is responsible for setting the agenda for trustee meetings, ensuring trustees receive accurate, timely and clear information, keeping track of the contribution of individual trustees, and acting as the lead representative for presenting the Charity externally. Whilst all trustees are responsible for setting the Charity’s direction and strategy, the chairman’s role is to gain consensus for any agreed policy. In the event a unanimous decision is not reached amongst trustees, the Chairman communicates the final agreed decision.

The trustees believe that at all times there should be a minimum of three trustees and therefore a minimum of three board directors. Any of the existing trustees have the opportunity to put forward prospective trustees for consideration. Prospective trustees have an interview and are then invited to attend a meeting as an observer before an offer is made to join the board. In the event the trustees are not unanimous in the recruitment decision, the final decision on whether a trustee should be appointed to the board remains with the Chairman.

British Friends of Boys Town Jerusalem is a company limited by guarantee without share capital. Its governance is determined by the memorandum and articles of association dated August 2003.

The trustees have considered the Charity’s commission’s public benefit guidance in the decision making and operation of British Friends of Boys Town Jerusalem. No significant departure from the guidance has been noted. The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

I H Brecker E Ehrhardt J R Moshi S A Myers (Resigned 6 March 2020) K S Reuben (Resigned 14 April 2020) L Reuben (Resigned 14 April 2020) Professor S L Stanton D Garbacz I Z Mockton (Appointed 23 August 2020) T R Laws (Appointed 23 August 2020)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute a maximum of £10 each in the event of a winding up.

Chairman

D Garbacz

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees' report was approved by the Board of Trustees.

.............................. J R Moshi

Trustee Dated: 10[th] March 2021

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF BRITISH FRIENDS OF BOYS TOWN JERUSALEM

I report to the Trustees on my examination of the financial statements of British Friends of Boys Town Jerusalem (the Charity) for the year ended 31 August 2020.

Responsibilities and basis of report

As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. fad Geb Gerald Edelman

73 Cornhill London EC3V 3QQ

Dated: 10 March 2021

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
Restricted
Total
funds
funds
2020
2020
2020
Notes
£
£
£
Income from:
Donations and legacies
3
220,818
26,517
247,335
Other trading activities
4
9,471
-
9,471
Investments
5
105
-
105
Total income
230,394
26,517
256,911
Expenditure on:
Raising funds
6
15,805
-
15,805
Charitable activties
273,084
-
273,084
Professional fees
6,152
-
6,152
Staff and training costs
33,146
-
33,146
Other office overheads
12,172
-
12,172
Restricted charitable expenditure
7
-
26,517
26,517
Total resources expended
340,359
26,517
366,876
Net (expenditure)/income for the year/
Net movement in funds
(109,965)
-
(109,965)
Fund balances at 1 September 2019
206,401
-
206,401
Fund balances at 31 August 2020
96,436
-
96,436		 Total
2019
£
281,155
20,109
112
301,376
31,806
-
9,360
85,934
18,716
5,925
151,741
149,635
56,767
206,401

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

All income and expenditure derive from continuing activities.

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

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 AUGUST 2020

2020 2019
Notes £ £ £ £
Current assets
Debtors 10 15,883 32,518
Cash at bank and in hand 83,153 183,207
99,036 215,725
Creditors: amounts falling due within
one year 11 (2,600) (9,324)
Net current assets 96,436 206,401
Income funds
Unrestricted funds 96,436 206,401
96,436 206,401

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2020.

The directors acknowledge their responsibilities for ensuring that the Charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 10[th] March 2021.

..............................

J R Moshi Trustee

Company Registration No. 04877476

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Charity information

British Friends of Boys Town Jerusalem is a private company limited by guarantee incorporated in England and Wales. The registered office is Schaller House, 44a Albert Road, London, NW4 2SJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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. 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.

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

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

1.4 Incoming resources

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

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

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

1.5 Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derecognition of financial liabilities

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

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.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

3. Donations and legacies

Donations and gifts
Donations and gifts
High Value Donors
RH Appeal
Chanukah Appeal
Fundraising Brochure 2020 (2019)
General Donations
Gift Aid
Corona Campaign
Foundation Grant Income
Choral Festival
Golf Day
Legacy Giving
Monthly Giving
Diary
Patron Campaign
Pesach Appeal
Simcha/Condolence
Bar Mitzvah Gift
In Memory
Purim Appeal
School Tzedaka
Maccabi Fun Run
Kol Nidre Appeal
Summer Camp
Restricted Income		 Unrestricted
funds
2020
£
220,818
65,400
49,444
299
7,110
12,287
7,468
1,159
-
17,775
-
6,500
3,801
360
10,000
26,221
185
225
598
-
-
-
6,880
5,106
-
220,818		 Restricted
funds
2020
£
26,517
18,517
8,000
26,517		 Total
2020
£
247,335
65,400
49,444
299
7,110
12,287
7,468
1,159
18,517
17,775
6,500
3,801
360
10,000
26,221
185
225
598
-
-
-
6,880
5,106
8,000
247,335		 Total
2019
£
281,155
-
52,449
-
17,000
17,375
9,612
-
5,925
2,163
7,863
103,036
2,649
4,785
22,500
28,811
2,100
3,877
470
230
10
300
-
-
-
281,155

Included within the 2020 High Value Donors figure is an amount of £50,000 from a single donor. The High Value Donor category was created during this financial year, and the 2019 income has not been restated.

Included within the 2019 Legacy Giving is an amount of £101,036 from a single donor .

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

4 Charitable activities

Charitable Charitable activities Charitable activities
activities
2020 2019
£ £
Other trading activities 9,471 20,109
Choral Festival 9,471 9,088
Golf Day Tickets - 7,751
Golf Day Raffle - 3,270
9,471 20,109
Investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Interest receivable 105 112

5 Investments

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

6 Raising funds

Unrestricted
funds
2020
£
Fundraising
Rosh Hashanah Appeal
2,929
Pesach Appeal
3,147
Annual Diary
761
Choral Festival
8,605
General advertising & Marketing
-
Bar Mitzvah Programme
-
Events committee
63
Fundraising Brochure
300
General Donation
-
In Memory Giving - Campaign
-
Maccabi Fun Run
-
Monthly Giving Campaign
-
Patron Campaign
-
Fundraising and publicity
15,805		 Total
2019
£
2,629
2,952
3,311
4,853
570
80
13,622
1,635
180
159
550
1,235
30
31,806

7 Restricted fund expenditure

Charitable expenditure

Charitable Charitable
Expenditure Expenditure
2020 2019
£ £
26,517 5,925

A donation of $7,500 from the Kirsh Foundation was received in both the 2020 and 2019 financial years, which was originated by British Friends of Boys Town Jerusalem but sent directly to the school. In 2020, the Reuben Foundation sponsored two boys for the School's 2-year College of Applied Engineering Program for $15,500.

8 Trustees

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

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

9 Employees

The average monthly number of employees during the year was:

No employees received emoluments in excess of £60,000.
10
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
12
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at 31 August 2020 are
represented by:
Current assets/(liabilities)
96,436
-
96,436
-		 2020
Number
2
2020
£
7,350
4,364
11,714
2020
£
-
1,400
-
1,200
2,600
Total
2020
£
96,436
96,436		 2019
Number
3
2019
£
26,625
5,895
32,520
2019
£
975
7,012
395
942
9,324
Total
2019
£
206,401
206,401

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

13 Related party transactions

A total of £284 (2019: £864.00) was paid to Habuah UK Limited for annual business broadband & telephony. Trustees Lee Reuben & Kate Reuben, were Directors of this company during the reporting period. A total of £324.60 (2019:£267.29) was paid to Initial Incentives Limited for various promotional items associated with fund raising events. Trustee Lee Reuben was a Director of this company during the reporting period.