CHARITY REGISTRATION NUMBER: 1104022
CHEVRAS MACHZIKEI MESIFTA Unaudited Financial Statements
31 March 2022
BRINDLEY GOLDSTEIN LIMITED
Chartered accountants 103 High Street Waltham Cross Herts EN8 7AN
CHEVRAS MACHZIKEI MESIFTA
Financial Statements
Year ended 31 March 2022
| 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 2022
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.
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 indentified 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.
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CHEVRAS MACHZIKEI MESIFTA
Trustees' Annual Report (continued)
Year ended 31 March 2022
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 £561,582.90. 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 27 January 2023 and signed on behalf of the board of trustees by:
Mr P. Karniol Trustee
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CHEVRAS MACHZIKEI MESIFTA
Independent Examiner's Report to the Trustees of CHEVRAS MACHZIKEI MESIFTA
Year ended 31 March 2022
I report to the trustees on my examination of the financial statements of CHEVRAS MACHZIKEI MESIFTA ('the charity') for the year ended 31 March 2022.
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
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the financial statements do not accord with those records; or
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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
27 January 2023
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CHEVRAS MACHZIKEI MESIFTA
Statement of Financial Activities
Year ended 31 March 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| Unrestricted | ||||
| fundsTotal funds | Total funds | |||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 522,373 | 522,373 | 806,632 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 522,373 | 522,373 | 806,632 | |
| ================================ | ================================ | ================================ | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Costs of raising donations and legacies | 5 | – | – | 6,209 |
| Expenditure on charitable activities | 6,7 | 562,783 | 562,783 | 788,430 |
| Other expenditure | 10 | 2,443 | 2,443 | 246 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 565,226 | 565,226 | 794,885 | |
| ================================ | ================================ | ================================ | ||
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Net (expenditure)/income and net movement in funds | (42,853) | (42,853) | 11,747 | |
| ================================ | ================================ | ================================ | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 183,219 | 183,219 | 171,472 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 140,366 | 140,366 | 183,219 | |
| ================================ | ================================ | ================================ |
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.
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CHEVRAS MACHZIKEI MESIFTA
Statement of Financial Position
31 March 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Investments | 14 | 182,199 | 182,199 |
| Current assets | |||
| Cash at bank and in hand | 2,233 | 67,530 | |
| Creditors: amounts falling due within one year | 15 | 2,399 | 16,510 |
| ----------------------- | ---------------------------- | ||
| Net current liabilities | (166) | 51,020 | |
| -------------------------------- | -------------------------------- | ||
| Total assets less current liabilities | 182,033 | 233,219 | |
| Creditors: amounts falling due after more than one year | 16 | 41,667 | 50,000 |
| -------------------------------- | -------------------------------- | ||
| Net assets | 140,366 | 183,219 | |
| ================================ | ================================ | ||
| Funds of the charity | |||
| Unrestricted funds | 140,366 | 183,219 | |
| -------------------------------- | -------------------------------- | ||
| Total charity funds | 17 | 140,366 ================================ |
183,219 ================================ |
These financial statements were approved by the board of trustees and authorised for issue on 27 January 2023, 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.
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CHEVRAS MACHZIKEI MESIFTA
Statement of Cash Flows
Year ended 31 March 2022
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net (expenditure)/income | (42,853) | 11,747 |
| Adjustments for: | ||
| Other operating cash flow adjustment | – | 1 |
| Changes in: | ||
| Trade and other creditors | (14,111) | 360 |
| ---------------------------- | ---------------------------- | |
| Cash generated from operations | (56,964) | 12,108 |
| ---------------------------- | ---------------------------- | |
| Net cash (used in)/from operating activities | (56,964) | 12,108 |
| ============================ | ============================ | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | (8,333) | 50,000 |
| ---------------------------- | ---------------------------- | |
| Net cash (used in)/from financing activities | (8,333) | 50,000 |
| ============================ | ============================ | |
| Net (decrease)/increase in cash and cash equivalents | (65,297) | 62,108 |
| Cash and cash equivalents at beginning of year | 67,530 | 5,422 |
| ---------------------------- | ---------------------------- | |
| Cash and cash equivalents at end of year | 2,233 | 67,530 |
| ============================ | ============================ |
The notes on pages 7 to 12 form part of these financial statements.
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements
Year ended 31 March 2022
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.
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements (continued)
Year ended 31 March 2022
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.
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legacy income is recognised when receipt is probable and entitlement is established.
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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.
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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:
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expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
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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.
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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.
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements (continued)
Year ended 31 March 2022
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 | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations received | 522,373 | 522,373 | 806,632 | 806,632 |
| ================================ | ================================ | ================================ | ================================ |
5. Costs of raising donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Costs of raising donations and | ||||
| legacies - Donations | – | – | 6,209 | 6,209 |
| ============== | ============== | ======================= | ======================= |
6. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Donations Made | 561,583 | 561,583 | 787,230 | 787,230 |
| Support costs | 1,200 | 1,200 | 1,200 | 1,200 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 562,783 | 562,783 | 788,430 | 788,430 | |
| ================================ | ================================ | ================================ | ================================ |
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements (continued)
Year ended 31 March 2022
7. Expenditure on charitable activities by activity type
| Grant funding | Support | Total funds | Total fund | ||
|---|---|---|---|---|---|
| of activities | costs | 2022 | 2021 | ||
| £ | £ | £ | £ | ||
| Donations Made | 561,583 | – | 561,583 | 787,230 | |
| Governance costs | – | 1,200 | 1,200 | 1,200 | |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| 561,583 | 1,200 | 562,783 | 788,430 | ||
| ================================ | ======================= | ================================ | ================================ | ||
| 8. | Analysis of support costs | ||||
| Total 2022 | Total 2021 | ||||
| £ | £ | ||||
| General office | – | 6,209 | |||
| Finance costs | 2,443 | 246 | |||
| Governance costs | 1,200 | 1,200 | |||
| -------------- | ----------------------- | ||||
| 3,643 | 7,655 | ||||
| ============== | ======================= | ||||
| 9. | Analysis of grants | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Grants to institutions | |||||
| The Mesifta Academy, Jerusalem, Israel | 561,583 | 787,230 | |||
| -------------- | -------------------------------- | ||||
| Total grants | 561,583 | 787,230 | |||
| ============== | ================================ | ||||
| 10. | Other expenditure | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Bank charges | 1,485 | 1,485 | 246 | 246 | |
| Bounce Back Loan Interest | 958 | 958 | – | – | |
| ----------------------- | ----------------------- | -------------- | -------------- | ||
| 2,443 | 2,443 | 246 | 246 | ||
| ======================= | ======================= | ============== | ============== | ||
| 11. | Independent examination fees | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 1,200 | 1,200 | |||
| ============== | ======================= |
12. Staff costs
The average head count of employees during the year was Nil (2021: Nil).
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements (continued)
Year ended 31 March 2022
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 2021 | 182,199 | |
| Additions | – | |
| -------------------------------- | ||
| At 31 March 2022 | 182,199 | |
| ================================ | ||
| Impairment | ||
| At 1 April 2021 and 31 March 2022 | – | |
| ================================ | ||
| Carrying amount | ||
| At 31 March 2022 | 182,199 | |
| ================================ | ||
| At 31 March 2021 | 182,199 | |
| ================================ | ||
| All investments shown above are held at valuation. | ||
| Creditors: amounts falling due within one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Trade creditors | 1,199 | 3,140 |
| Accruals and deferred income | 1,200 | 1,200 |
| Other creditors | – | 12,170 |
| ----------------------- | ---------------------------- | |
| 2,399 | 16,510 | |
| ======================= | ============================ | |
| Creditors: amounts falling due after more than one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Bank loans and overdrafts | 41,667 | 50,000 |
| ============================ | ============================ |
All investments shown above are held at valuation.
15. Creditors: amounts falling due within one year
16. Creditors: amounts falling due after more than one year
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CHEVRAS MACHZIKEI MESIFTA
Notes to the Financial Statements (continued)
Year ended 31 March 2022
17. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | ||||||
| At | 31 March | 20 | ||||
| 1 | April 2021 | Income | Expenditure | 22 | ||
| £ | £ | £ | £ | |||
| General funds | 183,219 | 522,373 | (565,226) | 140,366 |
||
| ================================ | ================================ | ================================ | ================================ | |||
| At | ||||||
| At | 31 March | 20 | ||||
| 1 | April 2020 | Income | Expenditure | 21 | ||
| £ | £ | £ | £ | |||
| General funds | 171,472 | 806,632 | (794,885) | 183,219 |
||
| ================================ | ================================ | ================================ | ================================ |
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