Charity Registration No. 1102612
THE BRITISH FRIENDS OF ZICHRON MENACHEM ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
THE BRITISH FRIENDS OF ZICHRON MENACHEM
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr. E. Seliger Mr. B Resnick Mr. R Green Charity number 1102612 Principal address 30 Brookside Road London NW11 9NE Independent examiner Mike Haberfeld BSc FCA Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling ME19 4JQ Solicitors RadcliffesLeBrasseur 5 Great College Street Westminster London SW1P 3SJ
THE BRITISH FRIENDS OF ZICHRON MENACHEM
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 13 |
THE BRITISH FRIENDS OF ZICHRON MENACHEM
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their annual report and financial statements for the year ended 31 March 2021.
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 2019)
Objectives and activities
The ultimate purpose of the charity is to increase the quality of life of children with cancer and their families.
The charity achieves its objectives by holding triennial summer camps in the UK for young cancer patients and biennial "respite holidays" for the parents of children suffering from cancer. A secondary objective is to provide intermittent financial support to Zichron Menachem in Israel to assist it with its broad activities. These funds have played a role in growth and development of Zichron Menachem in Israel, helping make it the first support organisation that families turn to for support and advice after a child is diagnosed with cancer.
The charity raises funds to support its charitable activities by holding specific events to increase awareness of the charity as well as specific fundraising activities. An example of a specific campaign is the hair cutting campaign where young women are encouraged to grow their hair and raise sponsorship. The hair is then cut and used to make wigs for the cancer patients in Israel and the UK.
Volunteers are used to a limited extent and assist with summer camps, respite holidays and fundraising events.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its activities for the year and, as can be seen from this Report, the charity's aims are for the public benefit.
Achievements and performance
Covid-19 meant that the charity was unable to host the annual respite trip for Israeli parents of children suffering from cancer in Israel.
In addition, we were unable to hold our fundraising hair parties. However, girls continued to donate their hair and raise sponsorship for us.
A newsletter was sent out in December 2020 to our supporters which helped to raise funds.
Funds were sent to Zichron Menachem in Israel towards the refurbishment of the Dream Centre kitchen and equipment of the youth room.
Financial review
A summary of the charity's transactions and of its financial position is shown in the financial statements together with the accompanying notes.
Due to Bank Leumi closing the type of account we held with them, it was necessary to open a new account in October 2020 with the CAF bank. A “savings” account was also opened.
The policy on reserves is to build up funds, in particular to meet camp expenses and specific requests from Zichron Menachem in Israel. At the year end, the Charity held unrestricted free reserves of £171,676 (2020: £111,629).
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.
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management
The British Friends of Zichron Menachem is governed by a Trust Deed, dated 21 January 2004.
The charity is informally affiliated to Zichron Menachem, an Israeli charity which provides support and assistance to Israeli children who have cancer, and their families. Therefore, locally the charity works closely with Zichron Menachem in Israel to ensure that the UK activities and contribution are focused and relevant.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr. E. Seliger Mr. B Resnick Mr. R Green
The trustees have complementary skills that help run the charity effectively. Mr Seliger is the day-to-day manager of Zichron Menachem UK and is the primary liason with Zichron Menachem in Israel; Mr Resnick is an accountant by profession and oversees governance and finance; Mr Green founded the emergency response and ambulance service Hatzola and he brings an understanding of health and wellness to the charity.
The power of appointing trustees is vested in the existing trustees. New trustees are recruited from personal contacts of existing trustees. Induction will be carried out by discussion with existing trustees and training will depend on their previous knowledge and experience.
The trustees determine the general policy of the charity. Mr. E. Seliger acts as Chairman and is responsible for overseeing the day to day running of the UK activities.
The trustees' report was approved by the Board of Trustees.
Mr. E. Seliger Trustee
10 January 2022
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE BRITISH FRIENDS OF ZICHRON MENACHEM
I report to the trustees on my examination of the financial statements of The British Friends of Zichron Menachem (the charity) for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of 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
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:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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.
Mike Haberfeld BSc FCA
Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
Dated: 12 January 2022
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 2 117,842 33,179 Investments 3 - - Total income 117,842 33,179 Expenditure on: Raising funds 4 41,731 - Charitable activities 5 16,321 26,554 Total resources expended 58,052 26,554 Net gains/(losses) on investments - - Gross transfers between funds - - Net income/(expenditure) for the year/ Net movement in funds 59,790 6,625 Fund balances at 1 April 2020 112,910 26,375 Fund balances at 31 March 2021 172,700 33,000 |
Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 151,021 202,350 93,445 - 593 - 151,021 202,943 93,445 41,731 64,133 - 42,875 261,629 72,730 84,606 325,762 72,730 - 3,584 - - (1,900) 1,900 66,415 (121,135) 22,615 139,285 234,045 3,760 205,700 112,910 26,375 |
Total 2020 £ 295,795 593 296,388 64,133 334,359 398,492 3,584 - (98,520) 237,805 139,285 |
|---|---|---|
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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THE BRITISH FRIENDS OF ZICHRON MENACHEM
BALANCE SHEET
AS AT 31 MARCH 2021
| Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Restricted funds 12 Unrestricted funds General funds 13 |
2021 £ 2,219 208,028 210,247 (5,571) 172,700 |
£ 1,024 204,676 205,700 33,000 172,700 205,700 |
2020 £ 28,530 118,210 146,740 (8,736) 112,910 |
£ 1,281 138,004 |
|---|---|---|---|---|
| 139,285 | ||||
| 26,375 112,910 |
||||
| 139,285 |
The financial statements were approved by the Trustees on 10 January 2022
Mr. E. Seliger Trustee
Mr. B Resnick Trustee
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
The British Friends of Zichron Menachem is an unincorporated charity, registered in England and Wales, whose principal address is 30 Brookside Road, London, NW11 9NE.
1.1 Accounting convention
The financial statements have been prepared in accordance 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 2019). 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 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. In arriving at that conclusion, due consideration has been given to the impact of Covid-19 on the charities activities and finances.
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.
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.
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.
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal and 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.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office equipment 20% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 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.
1.9 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.
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 97,517 1,179 Legacies receivable 15,000 32,000 Coronavirus job retention scheme grant 5,325 - 117,842 33,179 |
Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 98,696 177,350 93,445 47,000 25,000 - 5,325 - - 151,021 202,350 93,445 |
Total 2020 £ 270,795 25,000 - |
|---|---|---|
| 295,795 |
3 Investments
| Total | Unrestricted | |
|---|---|---|
| funds | ||
| 2021 | 2020 | |
| £ | £ | |
| Other investment income | - | 593 |
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
4 Raising funds
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Fundraising and publicity | |||
| Fundraising events | 2,105 | 6,827 | |
| Consultancy | - | 4,404 | |
| Advertising | 8,757 | 22,180 | |
| Support costs | 30,869 | 30,722 | |
| Fundraising and publicity | 41,731 | 64,133 | |
| 41,731 | 64,133 | ||
| Charitable activities | |||
| 2021 | 2020 | ||
| £ | £ | ||
| Camp | 442 | 195,971 | |
| Donations to Zichron Menachem Israel | 26,554 | 85,000 | |
| Cancer patient project | - | 37,730 | |
| 26,996 | 318,701 | ||
| Share of support costs (see note 6) | 10,510 | 10,406 | |
| Share of governance costs (see note 6) | 5,369 | 5,252 | |
| 42,875 | 334,359 | ||
| Analysis by fund | |||
| Unrestricted funds | 16,321 | 261,629 | |
| Restricted funds | 26,554 | 72,730 | |
| 42,875 | 334,359 |
5 Charitable activities
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
6 Support costs
| Support costs Governance costs £ £ Staff costs 26,075 - Accountancy fees - 3,936 Bank charges and interest - 1,433 Premises costs 8,811 - Office costs 6,237 - Sundry - - Depreciation 256 - 41,379 5,369 Analysed between Fundraising 30,869 - Charitable activities 10,510 5,369 41,379 5,369 |
2021 Support costs Governance costs £ £ £ 26,075 24,515 - 3,936 - 3,708 1,433 - 1,544 8,811 8,453 - 6,237 7,877 - - (37) - 256 320 - 46,748 41,128 5,252 30,869 30,722 - 15,879 10,406 5,252 46,748 41,128 5,252 |
2020 £ 24,515 3,708 1,544 8,453 7,877 (37) 320 |
|---|---|---|
| 46,380 | ||
| 30,722 15,658 |
||
| 46,380 |
7 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.
8 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 2 | 2 | |
| Employment costs | 2021 | 2020 |
| £ | £ | |
| Wages and salaries | 25,769 | 24,206 |
| Other pension costs | 306 | 309 |
| 26,075 | 24,515 |
There were no employees whose annual remuneration was more than £60,000.
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
| 9 Tangible fixed assets Cost At 1 April 2020 At 31 March 2021 Depreciation and impairment At 1 April 2020 Depreciation charged in the year At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020 10 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income 11 Creditors: amounts falling due within one year Other taxation and social security Other creditors Accruals and deferred income |
Office equipment £ 6,665 6,665 5,385 256 5,641 1,024 1,281 2021 2020 £ £ 1,013 27,124 1,206 1,406 2,219 28,530 2021 2020 £ £ 412 971 1,259 60 3,900 7,705 5,571 8,736 |
Office equipment £ 6,665 6,665 5,385 256 5,641 1,024 1,281 2021 2020 £ £ 1,013 27,124 1,206 1,406 2,219 28,530 2021 2020 £ £ 412 971 1,259 60 3,900 7,705 5,571 8,736 |
|---|---|---|
| 6,665 | ||
| 5,385 256 |
||
| 5,641 | ||
| 1,024 | ||
| 1,281 | ||
| 2020 £ 27,124 1,406 |
||
| 28,530 | ||
| 2020 £ 971 60 7,705 |
||
| 8,736 |
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| Restricted funds | The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: | Movement in funds Movement in funds |
Balance at Income/ Resources Transfers Balance at Income/ Resources Balance at |
1 April 2019 (Expenditure) expended 1 April 2020 (Expenditure) expended 31 March 2021 |
£ £ £ £ £ £ £ £ |
Pet therapy - 35,000 (35,000) - - - - - |
Cancer patient project 3,760 33,970 (37,730) - - - - - |
Kitchen refurbishment - 3,475 - 1,900 5,375 1,179 (6,554) - |
Parent Camp - 21,000 - - 21,000 - - 21,000 |
Dream Centre - youth room - - - - - 20,000 (20,000) - |
Dreamobile - - - - - 12,000 - 12,000 |
3,760 93,445 (72,730) 1,900 26,375 33,179 (26,554) 33,000 |
The Pet Therapy funds relates to amounts used for an outdoor pet area in the day centre in Israel, where sick children can interact with the animals. | The cancer patient project relates to amounts received and expended to assist a cancer patient who required specific cancer treatment. | The kitchen refurbishment funds relates to amounts contributed by the Hale & District Hebrew Congregation towards the refurbishment of the kitchens at the Zichron | Menachem Dream Centre in Jerusalem. | The Parent Camp funds relates to money received from The Bluston Charitable Settlement to be used towards the cost of the next Parents' Respite Trip in the | future. | The Dream Centre fund has been created by a contribution towards the youth room refurbishment at the Zichron Menachem Dream Centre in Jerusalem. The | money has been contributed by a legacy. | The Dreamobile fund relates to money contributed by a legacy towards the upkeep of the Zichron Menachem mobile clinic in Israel. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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THE BRITISH FRIENDS OF ZICHRON MENACHEM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
13 Unrestricted funds
| 13 | Unrestricted funds | |||||||
|---|---|---|---|---|---|---|---|---|
| Movement in funds | ||||||||
| Balance at | Income | Expenditure | Balance at | |||||
| 1 April 2020 | 31 March 2021 | |||||||
| £ | £ | £ | £ | |||||
| General funds | 112,910 | 117,842 | (58,052) | 172,700 | ||||
| 112,910 | 117,842 | (58,052) | 172,700 | |||||
| 14 | Analysis of net assets | between funds | ||||||
| Unrestricted | Restricted |
Total |
Unrestricted | Restricted |
Total |
|||
| funds | funds | funds | funds | |||||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |||
| £ | £ | £ | £ | £ | £ | |||
| Fund balances at 31 | ||||||||
| March 2021 are | ||||||||
| represented by: | ||||||||
| Tangible assets | 1,024 | - | 1,024 | 1,281 | - | 1,281 | ||
| Current assets/ | ||||||||
| (liabilities) | 171,676 | 33,000 | 204,676 | 111,629 | 26,375 | 138,004 | ||
| 172,700 | 33,000 | 205,700 | 112,910 | 26,375 | 139,285 |
15 Related party transactions
During the year, a market value rent of £7,200 (2020: £7,200) was payable to E. Seliger, a trustee, by the charity for office space. Additionally, in relation to the occupation of the premises, amounts totalling £1,611 (2020: £1,253) were payable directly to third party suppliers for utilities.
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