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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 05622994 (England and Wales) REGISTERED CHARITY NUMBER: 1116612

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 December 2022

for

NES FOUNDATION LTD (A COMPANY LIMITED BY GUARANTEE)

Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

NES FOUNDATION LTD

Contents of the Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 2
Report of the Independent Auditors 3 to 5
Statement of Financial Activities 6
Balance Sheet 7
Cash Flow Statement 8
Notes to the Cash Flow Statement 9
Notes to the Financial Statements 10 to 16
Detailed Statement of Financial Activities 17

NES FOUNDATION LTD

Report of the Trustees for the Year Ended 31 December 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The main objects of the charity are the relief of poverty, furtherance of the Jewish religious faith and education. This has been achieved by granting funds to UK Charities, who fulfill the above criteria .

Public benefit

In setting the charity's objectives the Trustees have given careful consideration to the Charity Commission's guidance on public benefit.

STRATEGIC REPORT

Reserves policy

The present level of reserves is adequate to support the continuation of our activities and the trustees consider the financial position of the Charity to be satisfactory.

The statement of Financial Activities shows net surplus for the year of £212,599 (2021: £51,777 net deficit) and our reserves stand at £7,440,603 (2021: £7,228,004) in total.

Future plans

There are no significant future developments to report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Risk management

The Trustees have examined the main investment risks to which the Charity is exposed to and is satisfied that systems are in place to mitigate such risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

05622994 (England and Wales)

Registered Charity number

1116612

Registered office

5 North End Road London NW11 7RJ

Trustees

Mr S Morgenstern Mr N Sheinfeld Mrs R Sheinfeld

Company Secretary

Mrs R Morgenstern

Senior Statutory Auditor

Mr A Heller

Page 1

NES FOUNDATION LTD

Report of the Trustees for the Year Ended 31 December 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Nes Foundation Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Martin + Heller, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 30 October 2023 and signed on the board's behalf by:

Mr N Sheinfeld - Trustee

Page 2

Report of the Independent Auditors to the Members of Nes Foundation Ltd

Opinion

We have audited the financial statements of Nes Foundation Ltd (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 3

Report of the Independent Auditors to the Members of Nes Foundation Ltd

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our audit will determine materiality and assess the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.

Our audit procedures are designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one result from error, as fraud may involve deliberate concealment by, for example forgery, misrepresentations or through collusion.

We did not identify any key audit matters relating to irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 4

Report of the Independent Auditors to the Members of Nes Foundation Ltd

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr A Heller (Senior Statutory Auditor) for and on behalf of Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

30 October 2023

Page 5

NES FOUNDATION LTD

Statement of Financial Activities for the Year Ended 31 December 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Grants to Institutions
Support costs
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
31.12.22
Unrestricted
fund
£
335,134
446,987
782,121
222,526
446,412
10,584
679,522
110,000
212,599
7,228,004
7,440,603
31.12.21
Total
funds
£
105,590
476,018
581,608
185,790
438,744
8,851
633,385
-
(51,777)
7,279,781
7,228,004

The notes form part of these financial statements

Page 6

NES FOUNDATION LTD

Balance Sheet 31 December 2022

Notes
FIXED ASSETS
Tangible assets
11
Investments
Investments
12
Investment property
13
CURRENT ASSETS
Debtors
14
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS
FUNDS
18
Unrestricted funds
TOTAL FUNDS
31.12.22
Unrestricted
fund
£
9,462
100
9,459,623
9,469,185
28,807
120,185
148,992
(174,160)
(25,168)
9,444,017
(2,003,414 )
7,440,603
7,440,603
7,440,603
31.12.21
Total
funds
£
11,551
100
9,215,923
9,227,574
30,178
32,484
62,662
(81,800)
(19,138)
9,208,436
(1,980,432 )
7,228,004
7,228,004
7,228,004

The financial statements were approved by the Board of Trustees and authorised for issue on 30 October 2023 and were signed on its behalf by:

Mr N Sheinfeld - Trustee

The notes form part of these financial statements

Page 7

NES FOUNDATION LTD

Cash Flow Statement for the Year Ended 31 December 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investment property
Sale of investment property
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period
31.12.22
£
294,324
(85,194)
209,130
(1,065)
(383,700)
250,000
(134,765)
13,336
13,336
87,701
32,484
120,185
31.12.21
£
39,105
(61,866)
(22,761)
(1,792)
-
-
(1,792)
(7,820)
(7,820)
(32,373)
64,857
32,484

The notes form part of these financial statements

Page 8

NES FOUNDATION LTD

Notes to the Cash Flow Statement for the Year Ended 31 December 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
31.12.22 31.12.21
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 212,599 (51,777)
Adjustments for:
Depreciation charges 3,154 3,850
Losses on investments (110,000) -
Interest paid 85,194 61,866
Decrease in debtors 1,371 167,946
Increase/(decrease) in creditors 102,006 (142,780)
Net cash provided by operations 294,324 39,105
ANALYSIS OF CHANGES IN NET DEBT
At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank 32,484 87,701 120,185
32,484 87,701 120,185
Debt
Debts falling due within 1 year (44,487) 9,646 (34,841)
Debts falling due after 1 year (1,980,432 ) (22,982) (2,003,414 )
(2,024,919 ) (13,336) (2,038,255 )
Total (1,992,435 ) 74,365 (1,918,070 )

2. ANALYSIS OF CHANGES IN NET DEBT

The notes form part of these financial statements

Page 9

NES FOUNDATION LTD

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Allocation and apportionment of costs

The trustees have allocated all the support cost to the charities sole activity, namely 'Grants to Institutions'.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Investment property fixtures & fittings - 25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
31.12.22 31.12.21
£ £
Donations 335,134 105,590

continued...

Page 10

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

3. INVESTMENT INCOME

Rents received
Other Income
4.
RAISING FUNDS
Investment management costs
Portfolio management
Rates & water
Legal & professional fees
Light & heat
Insurance
Property repairs
Ground rent
Depreciation
Interest payable and similar charges
5.
CHARITABLE ACTIVITIES COSTS
Grants to Institutions
6.
GRANTS PAYABLE
Grants to Institutions
31.12.22
31.12.21
£
£
446,987
456,479
-
19,539
446,987
476,018
31.12.22
31.12.21
£
£
41,874
45,522
2,610
547
4,280
1,158
2,152
1,993
19,621
17,041
61,841
52,013
1,800
1,800
3,154
3,850
85,194
61,866
222,526
185,790
Grant
funding of
activities
(see note
6)
£
446,412
31.12.22
31.12.21
£
£
446,412
438,744
31.12.21
£
456,479
19,539
476,018
31.12.21
£
45,522
547
1,158
1,993
17,041
52,013
1,800
3,850
61,866
185,790
31.12.21
£
438,744

continued...

Page 11

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

6.
GRANTS PAYABLE - continued
The total grants paid to institutions during the year was as follows:
Achisomoch
Ben Amram Charitable Trust
British Friends of Nadvorne
Care All Limited
Chasdei Sorele
Friends of Yeshivas Daas Sholem Shotz
Ichud Mosdos Gur Limited
Keren Chochmas Shlomo Trust
Keren Hatzolas Doros Alei Siach
Kollel Viznitz London
Live and Learn
Mifal Hachesed Vehatzdoko
Mosdot Ohavei Torah
Sheves Achim Reception Trust
Shir Chesed Beis Yisroel
Start Upright
Yeshivas Lev Simcha Limited
Woodstock Sinclair Trust
Yeshivas Torah Ohr
Zlotchiv
Donations less than £10,000
7.
SUPPORT COSTS
Other resources expended
8.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
31.12.22
31.12.21
£
£
18,790
15,000
-
10,000
10,000
-
-
35,000
-
11,000
-
15,000
54,000
30,000
110,000
49,000
-
18,000
11,000
10,000
-
12,000
18,000
10,000
41,545
-
-
101,100
97,110
10,000
-
21,000
9,802
-
-
10,000
-
22,000
11,000
-
65,165
59,644
446,412
438,744
Governance
costs
£
10,584
31.12.22
31.12.21
£
£
2,100
2,100
3,154
3,851

continued...

Page 12

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

10. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.12.22 31.12.21
Trustees 3 3
No employees received emoluments in excess of £60,000.
11. TANGIBLE FIXED ASSETS
Investment
property
fixtures
& fittings
£
COST
At 1 January 2022 56,013
Additions 1,065
At 31 December 2022 57,078
DEPRECIATION
At 1 January 2022 44,462
Charge for year 3,154
At 31 December 2022 47,616
NET BOOK VALUE
At 31 December 2022 9,462
At 31 December 2021 11,551
12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 January 2022 and 31 December 2022 100
NET BOOK VALUE
At 31 December 2022 100
At 31 December 2021 100

There were no investment assets outside the UK.

continued...

Page 13

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

12. FIXED ASSET INVESTMENTS - continued

The investment represent share capital in Merryhall Limited, which was dormant throughout the year.

13. INVESTMENT PROPERTY

FAIR VALUE
At 1 January 2022
Additions
Disposals
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
Fair value at 31 December 2022 is represented by:
Valuation in 2016
Cost
£
9,215,923
383,700
(140,000)
9,459,623
9,459,623
9,215,923
£
238,226
9,221,397
9,459,623

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 17)
VAT
Other creditors
Accrued expenses
31.12.22
£
17,492
11,315
28,807
31.12.22
£
34,841
666
126,653
12,000
174,160
31.12.21
£
18,365
11,813
30,178
31.12.21
£
44,487
666
24,047
12,600
81,800

continued...

Page 14

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 17)
17.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling due in more than five years:
Repayable otherwise than by instalments:
Bank loans more 5 yrs non-inst
18.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
follows:
Incoming
resources
£
782,121
782,121
At 1.1.22
£
7,228,004
7,228,004
Resources
expended
£
(679,522)
(679,522)
At 1.1.21
£
7,279,781
7,279,781
31.12.22
£
2,003,414
31.12.22
£
34,841
2,003,414
Net
movement
in funds
£
212,599
212,599
Gains and
losses
£
110,000
110,000
Net
movement
in funds
£
(51,777)
(51,777)
31.12.21
£
1,980,432
31.12.21
£
44,487
1,980,432
At
31.12.22
£
7,440,603
7,440,603
Movement
in funds
£
212,599
212,599
At
31.12.21
£
7,228,004
7,228,004

Page 15

continued...

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
581,608
581,608
Resources
Movement
expended
in funds
£
£
(633,385)
(51,777)
(633,385)
(51,777)
Resources
Movement
expended
in funds
£
£
(633,385)
(51,777)
(633,385)
(51,777)
(51,777)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
At 1.1.21
£
7,279,781
7,279,781
Net
movement
in funds
£
160,822
160,822
At
31.12.22
£
7,440,603
7,440,603

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,363,729
(1,312,907 )
TOTAL FUNDS
1,363,729
(1,312,907 )
Gains and
Movement
losses
in funds
£
£
110,000
160,822
110,000
160,822
Gains and
Movement
losses
in funds
£
£
110,000
160,822
110,000
160,822
160,822

19. RELATED PARTY DISCLOSURES

£334,698 (2021: £105,590) was donated to the charity from companies, of which the Trustees are Directors.

Page 16

NES FOUNDATION LTD

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

Detailed Statement of Financial Activities
for the Year Ended 31 December 2022
31.12.22 31.12.21
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 335,134 105,590
Investment income
Rents received 446,987 456,479
Other Income - 19,539
446,987 476,018
Total incoming resources 782,121 581,608
EXPENDITURE
Investment management costs
Portfolio management 41,874 45,522
Rates & water 2,610 547
Legal & professional fees 4,280 1,158
Light & heat 2,152 1,993
Insurance 19,621 17,041
Property repairs 61,841 52,013
Ground rent 1,800 1,800
Depreciation of tangible fixed assets 3,154 3,850
Bank interest 85,194 61,866
222,526 185,790
Charitable activities
Grants to institutions 446,412 438,744
Support costs
Governance costs
Auditors' remuneration 2,100 2,100
Bank charges 411 858
Accountancy fees 4,200 4,200
Legal fees 3,873 1,693
10,584 8,851
Total resources expended 679,522 633,385
Net income/(expenditure) before gains and
losses 102,599 (51,777)
Realised recognised gains and losses
Realised gains/(losses) on investment property 110,000 -
Net income/(expenditure) 212,599 (51,777)

This page does not form part of the statutory financial statements

Page 17