2021-03-31-accounts - Chevras Machzikei Mesifta

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CHARITY REGISTRATION NUMBER: 1104022

CHEVRAS MACHZIKEI MESIFTA Unaudited Financial Statements 31 March 2021

BRINDLEY GOLDSTEIN LIMITED

Chartered accountants 103 High Street Waltham Cross Herts EN8 7AN

CHEVRAS MACHZIKEI MESIFTA

Financial Statements

Year ended 31 March 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	3
Statement of financial activities	4
Statement of financial position	5
Statement of cash flows	6
Notes to the financial statements	7

CHEVRAS MACHZIKEI MESIFTA

Trustees' Annual Report

Year ended 31 March 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Registered charity name CHEVRAS MACHZIKEI MESIFTA Charity registration number 1104022 Principal office 28 Cranwich Road London N16 5JX The trustees Mr P. Karniol Mr P. Benedikt Mrs D. Mutzen Independent examiner Charles Goldstein FCA 103 High Street Waltham Cross Herts EN8 7AN

Structure, governance and management

The Charity is controlled by its governing document a Deed dated 26 February 2004 and constitutes an unincorporated charity.

The trustees administer the day-today affairs of the Charity. None of the Trustees have any beneficial interest in the Charity.

Recruitment, Induction and Training

It is not the intention of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment, induction and training procedures.

Risk Management

The trustees have identified and reviewed the major risks to which the charity is exposed. Both manual and automated checks are regularly invoked, particularly those relating to the operations and finance of the charity. The trustees are satisfied that these systems and procedures mitigate any perceived risks.

CHEVRAS MACHZIKEI MESIFTA

Trustees' Annual Report (continued)

Year ended 31 March 2021

Objectives and activities

The charity was formed for the advancement of orthodox jewish religious education throughout the world and in particular by supporting the charitable work of the Talmudic institute The Mesifta Academy, in Jerusalem, Israel.

The Mestifa Academy runs a higher college for the study of Jewish Talmudical Law. In addition to its educational activities, the Mesifa Academy makes grants to needy individuals in Israel.

Public Benefit

The trustees confirm their compliance with the duty to have regard to the Public Benefit guidance published by the Charity Commission when reviewing the Charity's aims and objectives in planning future activities.

Grant Making Policy

Grants are made to charitable institutions and organisations which accord with the objects of the Charity.

Achievements and performance

The charity continued to receive donations during the period and thus was able to continue with the programme of grants to The Mesifta Academy in Israel. The aggregate donations made during the year was £787,230. No change of activities is envisaged in the immediate future.

Financial review

The financial results of the Charity's activities for the year reflected in the attached financial statements together with the notes thereon.

Reserves Policy

Funds are remitted to The Mestifa Academy on a regular basis and no specific fund is maintained.

Plans for future periods

There are no current plans to change the activities or modus operandi in the foreseeable future.

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

Mr P. Karniol Trustee

CHEVRAS MACHZIKEI MESIFTA

Independent Examiner's Report to the Trustees of CHEVRAS MACHZIKEI MESIFTA

Year ended 31 March 2021

I report to the trustees on my examination of the financial statements of CHEVRAS MACHZIKEI MESIFTA ('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 Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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 the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the financial statements do not accord with those records; or
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 accounts to be reached.

Charles Goldstein FCA Independent Examiner 103 High Street Waltham Cross Herts EN8 7AN

CHEVRAS MACHZIKEI MESIFTA

Statement of Financial Activities

Year ended 31 March 2021

		2021		2020
		Unrestricted
		fundsTotal funds		Total funds
	Note	£	£	£
Income and endowments
Donations and legacies	4	806,632	806,632	785,183
		--------------------------------	--------------------------------	--------------------------------
Total income		806,632	806,632	785,183
		================================	================================	================================
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies	5	6,209	6,209	11,280
Expenditure on charitable activities	6,7	788,430	788,430	805,800
Other expenditure	10	246	246	365
		--------------------------------	--------------------------------	--------------------------------
Total expenditure		794,885	794,885	817,445
		================================	================================	================================
		--------------------------------	--------------------------------	--------------------------------
Net income/(expenditure) and net movement in funds		11,747	11,747	(32,262)
		================================	================================	================================
Reconciliation of funds
Total funds brought forward		171,472	171,472	203,733
		--------------------------------	--------------------------------	--------------------------------
Total funds carried forward		183,219	183,219	171,471
		================================	================================	================================

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 7 to 12 form part of these financial statements.

CHEVRAS MACHZIKEI MESIFTA

Statement of Financial Position

31 March 2021

		2021	2020
	Note	£	£
Fixed assets
Investments	14	182,199	182,199
Current assets
Cash at bank and in hand		67,530	5,422
Creditors: amounts falling due within one year	15	16,510	16,150
		----------------------------	----------------------------
Net current assets		51,020	(10,728)
		--------------------------------	--------------------------------
Total assets less current liabilities		233,219	171,471
Creditors: amounts falling due after more than one year	16	50,000	–
		--------------------------------	--------------------------------
Net assets		183,219	171,471
		================================	================================
Funds of the charity
Unrestricted funds		183,219	171,471
		--------------------------------	--------------------------------
Total charity funds	17	183,219 ================================	171,471 ================================

These financial statements were approved by the board of trustees and authorised for issue on 31 March 2021, and are signed on behalf of the board by:

Mr P. Karniol Trustee

The notes on pages 7 to 12 form part of these financial statements.

CHEVRAS MACHZIKEI MESIFTA

Statement of Cash Flows

Year ended 31 March 2021

	2021	2020
	£	£
Cash flows from operating activities
Net income/(expenditure)	11,747	(32,262)
Adjustments for:
Accrued income	–	(1,180)
Other operating cash flow adjustment	1	–
Changes in:
Trade and other creditors	360	(15,460)
	----------------------------	----------------------------
Cash generated from operations	12,108	(48,902)
	----------------------------	----------------------------
Net cash from/(used in) operating activities	12,108	(48,902)
	============================	============================
Cash flows from financing activities
Proceeds from borrowings	50,000	–
	----------------------------	----------------------------
Net cash from financing activities	50,000	–
	============================	============================
Net increase/(decrease) in cash and cash equivalents	62,108	(48,902)
Cash and cash equivalents at beginning of year	5,422	54,324
	----------------------------	----------------------------
Cash and cash equivalents at end of year	67,530	5,422
	============================	============================

The notes on pages 7 to 12 form part of these financial statements.

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 28 Cranwich Road, London, N16 5JX.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

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

Judgements and key sources of estimation uncertainty

There are no judgements and estimates.

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.

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

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:

income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
legacy income is recognised when receipt is probable and entitlement is established.
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

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:

expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

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.

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

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 cash-generating 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.

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.

4. Donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Donations
Donations received	806,632	806,632	785,183	785,183
	================================	================================	================================	================================

5. Costs of raising donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Costs of raising donations and
legacies - Donations	6,209	6,209	11,280	11,280
	=======================	=======================	============================	============================

6. Expenditure on charitable activities by fund type

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Donations Made	787,230	787,230	804,600	804,600
Support costs	1,200	1,200	1,200	1,200
	--------------------------------	--------------------------------	--------------------------------	--------------------------------
	788,430	788,430	805,800	805,800
	================================	================================	================================	================================

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements (continued)

Year ended 31 March 2021

7. Expenditure on charitable activities by activity type

	Grant funding	Support	Total funds	Total fund
	of activities	costs	2021	2020
	£	£	£	£
Donations Made	787,230	–	787,230	804,600
Governance costs	–	1,200	1,200	1,200
	--------------------------------	-----------------------	--------------------------------	--------------------------------
	787,230	1,200	788,430	805,800
	================================	=======================	================================	================================

8. Analysis of support costs

		Analysis of
		support costs
		activity 1	Total 2021	Total 2020
		£	£	£
	General office	6,209	6,209	–
	Finance costs	246	246	–
	Governance costs	1,200	1,200	–
		-----------------------	-----------------------	--------------
		7,655	7,655	–
		=======================	=======================	==============
9.	Analysis of grants
			2021	2020
			£	£
	Grants to institutions
	The Mesifta Academy, Jerusalem, Israel		787,230	–
			--------------------------------	--------------
	Total grants		787,230	–
			================================	==============

10. Other expenditure

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Bank charges	246	246	365	365
	==============	==============	==============	==============
Independent examination fees
			2021	2020
			£	£
Fees payable to the independent examiner for:
Independent examination of the financial statements			1,200	–
			=======================	==============

11. Independent examination fees

12. Staff costs

The average head count of employees during the year was Nil (2020: Nil).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements (continued)

Year ended 31 March 2021

13. Trustee remuneration and expenses

There were no trustees' remuneration or other benefits for the year ended 31 March 20201 nor for the year ended 31 March 2020.

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

14. Investments

	Other
	investments
	£
Cost or valuation
At 1 April 2020	182,199
Additions	–
	--------------------------------
At 31 March 2021	182,199
	================================
Impairment
At 1 April 2020 and 31 March 2021	–
	================================
Carrying amount
At 31 March 2021	182,199
	================================
At 31 March 2020	182,199
	================================

All investments shown above are held at valuation.

15. Creditors: amounts falling due within one year

	2021	2020
	£	£
Trade creditors	3,140	2,780
Accruals and deferred income	1,200	1,200
Other creditors	12,170	12,170
	----------------------------	----------------------------
	16,510	16,150
	============================	============================
Creditors: amounts falling due after more than one year
	2021	2020
	£	£
Bank loans and overdrafts	50,000	–
	============================	==============

16. Creditors: amounts falling due after more than one year

CHEVRAS MACHZIKEI MESIFTA

Notes to the Financial Statements (continued)

Year ended 31 March 2021

17. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
				At
	At			31 March 20
	1 April 2020	Income	Expenditure	21
	£	£	£	£
General funds	171,472	806,632	(794,885)	183,219
	================================	================================	================================	================================
				At
	At			31 March 20
	1 April 2019	Income	Expenditure	20
	£	£	£	£
General funds	203,733	785,183	(817,445)	171,471
	================================	================================	================================	================================
Analysis of net assets between funds
			Unrestricted	Total Funds
			Funds	2021
			£	£
Investments			182,199	182,199
Current assets			67,530	67,530
Creditors less than 1 year			(16,510)	(16,510)
Creditors greater than 1 year			(50,000)	(50,000)
			--------------------------------	--------------------------------
Net assets			183,219	183,219
			================================	================================
			Unrestricted	Total Funds
			Funds	2020
			£	£
Investments			182,199	182,199
Current assets			5,422	5,422
Creditors less than 1 year			(16,150)	(16,150)
Creditors greater than 1 year			–	–
			--------------------------------	--------------------------------
Net assets			171,471	171,471
			================================	================================

18. Analysis of net assets between funds

19. Analysis of changes in net debt

			At
	At 1 Apr 2020	Cash flows	31 Mar 2021
	£	£	£
Cash at bank and in hand	5,422	62,108	67,530
Debt due after one year	–	(50,000)	(50,000)
	-----------------------	----------------------------	----------------------------
	5,422	12,108	17,530
	=======================	============================	============================

20. Related parties

There were no related party transactions for the year ended 31 March 2021.