**Charity Registration No. 1117028**
**Company Registration No. 05915569 (England and Wales)**
## **BETTER WORLD CHARITY LIMITED**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **BETTER WORLD CHARITY LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mrs E Marlow E C Shutes Mr D M Solomon L Marks (Appointed 2 August 2022) **Charity number** 1117028 **Company number** 05915569 **Principal address** Kaye House 2 Monks Way London NW11 0AF **Registered office** 2nd Floor 167-169 Great Portland St London W1W 5PF **Independent examiner** Sam Rogoff & Co Ltd 167-169 Great Portland St London W1W 5PF
## **BETTER WORLD CHARITY LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent examiner's report|6 - 7|
|Statement of financial activities|8|
|Balance sheet|9 - 10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 23|
## **BETTER WORLD CHARITY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their report for Better World Charity Ltd (Reg No. 1117028/ Company number 05915569) and financial statements for the year ended 31 December 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 Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity's objects, which are set out in its Memorandum of Association as follows;
(a) To promote the spiritual and moral advancement of humanity through education, self-improvement and the encouragement of individuals to undertake a variety of volunteer programmes and in particular by promoting charitable activities.
(b) To promote the education of Jewish individuals and the alleviation of poverty among Jewish and wider communities throughout the world.
(c) Other charitable activities that the trustees may from time to time determine.
(d) To advance the education of the public in general on the subject of Well-being and Mental Health
The trustees confirm that they have complied with their duty and referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives and in planning future activities and setting it’s educational strategy and plans for the year.
The Charity carries out these objects for the public benefit by operating four main projects, known as the Rabbinical Training Academy (RTA), Tikun, Light Up A Life and the Three Principles Conference. Each works within its own designated budget and funds.
## _Rabbinic Training Academy_
This programme aims to help create a better quality of Jewish Leader today for the challenges of tomorrow. Known as The Rabbinic Training Academy (RTA) it is a learning and development programme for Rabbinic students and their families who are beginning their professional journey in Communal Leadership and Education.
Traditionally, rabbis have spent the vast majority of their training focusing on Jewish law. They often train in a vacuum which is very different from many of the realities of the professional world they must face in their future leadership roles. Inexperienced in the wider world, they must assume the role of religious, moral and spiritual leadership and responsibility, which often places people’s emotional wellbeing in their hands.
The RTA aims to change how rabbinic leaders operate and educate within their communities so that they become more open minded and humane, more humble and caring as well as more understanding in how to provide guidance and support in an ever changing world. This will enable rabbinic leaders to play a significant role in contributing towards a healthier Jewish community and ultimately a better world.
## Tikun
The Tikun project shares spiritual and practical Jewish wisdom on a variety of issues including happiness, developing healthy relationships and public contribution primarily, although not exclusively, for Jewish individuals. This has a profound effect on the individual, as well as the society within which they live.
Tikun is not looking for people simply to learn but to learn in order _to do._ For people to be better human beings rather than simply learning how to become one. It educates individuals to consider what their society, their community and their world needs and for them to respond accordingly. Tikun aims for people to become role models and leaders who will inspire those around them and start to create a grassroots movement of social change.
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## **BETTER WORLD CHARITY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## _Light Up A Life (LUAL)_
LUAL is an annual winter seasonal activity that aims to unite people from across London in an expansive volunteer and giving drive over the annual winter holiday period between 25[th] December – 1[st] January. Working in conjunction with numerous other charities and organisations both large and small, the project goals:
- To place volunteers where they are needed most, in homeless shelters, hospitals, hospices, old age
- homes and care facilities across London.
- Through small acts of kindness, to give a feeling of warmth, care and love to those who may be feeling lonely or left out at that time of year.
- To demonstrate appreciation and thanks for the good we receive from the public services which are very often taken for granted in UK society.
_3PUK Conference_
The Three Principles Conference is a 3 day event which was held virtually in 2020 and 2021 owing to the covid19 pandemic. Prior to the pandemic the conference was held at a large conference venue in London. The aim of the conference is to unlock every individual’s ability to discover an improved experience of life or wellbeing through an understanding of how the mind works in a relevant, enjoyable and accessible way.
When people feel comfortable with their own lives they are more able to live contently and more meaningfully contribute to the lives of others. With poor mental health becoming increasingly prevalent, the conference provides a means by which people may find their own sense of personal stability and wellbeing putting them on a path of resilience, healthy values and peace of mind.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Project Review and Development**
The Trustees are continually looking to review and develop the current programmes to best satisfy the objectives of the charity. This is demonstrated by the RTA programme, one of whose aims is to better meet objectives in the education of Jewish individuals. As part of ongoing reviews, this programme is continually being appraised so as to improve the experience of the those partaking in it and to further clarify the charity’s aims for future years.
## **Achievements and Performance**
Brief highlights of successful programmes this year include:
- The RTA programme took in a new cohort (Cohort Gimel) in September 2021. The programme was reduced from eighteen months to twelve months as it was felt that this was sufficient time to teach the syllabus. This was proven correct. The shorter programme also saves the charity money. Three individuals started this programme and overlapped with the previous cohort of five rabbis for six months. This was a pilot to see if overlapping cohorts would work and has proven that it can.
- Although the pandemic was basically finished by the start of this cohort, most places to visit remained off limits still - e.g. psychiatric ward, hospice, hospitals etc.
- The 2021 3PUK Conference had over 1000 attendees in a fully virtual setting. The price to attend the conference was greatly subsidised owing to them being online only and free places were given to all NHS workers as a gesture of thanks for the remarkable and difficult work done by them during the pandemic. The organisers of the conference were delighted that so many NHS workers were able to take advantage of this offer and that they were able to give something back to those who were giving so much to the country during the covid-19 pandemic. The conference chose this year to reach out to communities of colour. It was felt that we were not welcoming enough to such communities and we went out of our way to invite speakers from these communities specifically and make them feel comfortable. As a result, the demographic of the conference changed from perhaps 5 or 6 in a thousand to 10-20% attending from these communities.
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## **BETTER WORLD CHARITY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
Even though the conference was fully online, the event was received extremely positively and the feedback received was very encouraging especially in respect to the online nature of the conference which worked far better than the organisers believed was possible. The conference welcomed back many previous speakers as well as a number of new speakers some of whom have come through the Better World programme. Our idea, based on the success of the virtual format, was to test a hybrid event in 2022. At time of writing, this was incredibly successful and the trustees will provide a fuller update next year.
A virtual one day Three Principles event took place in November 2021 which was attended by over 400 people.
- Light Up A Life was also successful in 2021 with 1,600 volunteers giving their time to help the charity’s projects. This was an increase of 50% over the previous year. The charity arranged 110 activities with some of the highlights being an Educational In School Wrap-A-Thon which saw over 800 school children from 6 Jewish High Schools wrapping chocolates which were then delivered to numerous locations including Norwood Care Homes, NHS Hospitals, Noah’s Ark Children’s Hospice, The Oli Leigh Trust and Hope for the Homeless in Barnet. There were also a wide range of virtual projects which included sending virtual Light Up A Life Chanukah cards to Jami, running virtual cooking sessions for AgeUK and running virtual arts and crafts activities for Camp Simcha.
Some of Light Up A Life’s new partnerships in 2021 were with The Board of Deputies, the Yoni Jesner Foundation and JLGB.
Significant changes in safeguarding laws have made the future of the programme unviable, however, and the trustees very reluctantly took the decision to close the programme down. It was offered to other charities, but at time of writing, none have been willing to continue its great work.
## **Financial review**
2021 was once again a successful year both in programme impact and for the financial affairs of the charity which has built upon its previous success in prudent financial planning, fundraising and the management of its activities and funds. It has continued to develop plans and has taken steps to increase its funding base, resources and programming to reflect the continuing demand for its services and activities.
The Trustees continue to be pleased with the level of funding generated from the activities themselves, thus demonstrating that the charity is becoming less reliant on external private donations. It should be noted that this aspect has had no effect on the charity’s programmes which are still wholly accessible to the financially disadvantaged with all programmes available to everyone regardless of their personal financial circumstances.
Having considered the suggestion of an independent fundraiser, it was decided not to follow this advice. The charity is very niche in its proposition and Rabbi Rosenblatt, the CEO, is best positioned to articulate the vision and direction of the charity. A professional fundraiser would be a financial risk for the charity and the trustees to not believe it is a risk worth taking.
As a charity that continues to raise a large proportion of its funds from private individuals, the Trustees recognise the major risk to the organisation should these donors choose not to give to the charity in the future. To mitigate that risk the Trustees are continually looking to expand the donor base and increase the geographic and demographic reach of its fundraising activities and efforts including instigating an online ‘matching funds’ fundraising campaign.
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## **BETTER WORLD CHARITY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
At the end of the accounting period the charity had reserves of circa £3,000, compared to circa £74,000 in the previous year. Although the trustees like to run the charity with at least a month’s budget in advance (around £45,000), as reserves, nevertheless, there is a yearly donation that has historically come in for the past fifteen years, of £75,000, early in January.
Given a cash flow challenge at the end of December, the trustees felt it was reasonable to pay all creditors, even though that ran the balance very low, but rely on this committed donation as charity reserves for the first week in January. It did indeed come in the first week in January as it has every year and reserves returned immediately to their expected level.
With the country, and indeed the world, heading into deeper financial challenges, the Trustees feel that the fundraising situation remains difficult to predict and fluid in nature. Consequently, the Trustees are closely monitoring the levels of funding being received by the charity and its financial position in general and we believe we have taken due care to ensure that changes have been and will be implemented to ensure the going concern of Better World Charity Ltd.
## **Structure, governance and management**
The charity is a company limited by guarantee and its governing documents therefore are its Memorandum and Articles of Association.
None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of winding up.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mrs E Marlow E C Shutes Mr D M Solomon P Crocker (Resigned 7 July 2021) L Marks (Appointed 2 August 2022)
There is no specific policy in place for the recruitment, appointment, induction and training of trustees.
All trustees gave of their time freely and no trustee remuneration was paid during this year.
During 2021 Better World Limited relocated to its new operating premises at Kaye House, 2 Monks Way, London, NW11 0AF.
The organisations registered address remains at 2[nd] Floor, 169 Great Portland Street, London, W1W 5PF and the website address remains as https://betterworldcharity.org/
The affairs of the charity are governed by the Board of Trustees, of which Mrs Marlow is the Chairperson. They are responsible for setting the strategic direction of the charity, consideration of reserves, risk management, performance review and setting general organisational policy.
The Board of Trustees have decided to delegate the day to day operation of the organisation to its Management Committee, which reports directly to the Board of Trustees. From time to time the Management Committee contracts with specialised consultants and involves experienced volunteers from the business community in a variety of areas in order to establish best practice in the organisation’s activities. The Management Committee operates the charity along departmental lines. The Chief Executive Officer continued to be Shaul Rosenblatt and Avril Robbins continued as Chief Operating Officer during the year.
The Trustees regularly assess the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the significant potential risks.
The trustees’ report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
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## **BETTER WORLD CHARITY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees' report was approved by the Board of Trustees.
## **Mrs E Marlow**
Trustee Dated: 8 November 2022
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## **BETTER WORLD CHARITY LIMITED**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF BETTER WORLD CHARITY LIMITED**
I report to the trustees (who are also Directors for the purpose of company law) on my examination of the accounts of Better World Charity Limited (the charity) for the year ended 31 December 2021, which comprises the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and related notes.
This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
As permitted by Direction 2, issued by the Charity Commission the firm for which I work has provided the Company with bookkeeping services during the year ended 31st December 2020. As a consequence I have followed the requirement of the FRC’s Ethical Standard when undertaking this assignment.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
- I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
- 6 -
## **BETTER WORLD CHARITY LIMITED**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) TO THE TRUSTEES OF BETTER WORLD CHARITY LIMITED**
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.
Emily Brown BSC(Hons) FCA ICAEW Sam Rogoff & Co Ltd 167-169 Great Portland St London W1W 5PF
Dated: .........................
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## **BETTER WORLD CHARITY LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Voluntary Income
**3**
560,558
13,516
Charitable activities
**4**
83,166
-
Investments
**5**
12
-
Other income
**6**
-
-
**Total income**
643,736
13,516
**Expenditure on:**
Charitable activities
**7**
703,434
11,426
Other
**11**
11,531
-
**Total resources**
**expended**
714,965
11,426
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(71,229)
2,090
Fund balances at 1
January 2021
73,947
4,750
**Fund balances at 31**
**December 2021**
2,718
6,840|**Total**
Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
**£**
**£**
574,074
611,167
-
83,166
44,644
-
12
4
-
-
199
-
657,252
656,014
-
714,860
622,818
14,400
11,531
-
-
726,391
622,818
14,400
(69,139)
33,196
(14,400)
78,697
40,751
19,150
9,558
73,947
4,750|Total
2020
**£**
611,167
44,644
4
199|
|---|---|---|
|||656,014|
|||637,218|
|||-|
|||637,218|
|||18,796
59,901|
|||78,697|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **BETTER WORLD CHARITY LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**2021**
**2020**
**Notes**
**£**
**£**
**£**
**Fixed assets**
Tangible assets
**12**
29,970
**Current assets**
Stocks
**13**
300
300
Debtors
**14**
36,995
2,964
Cash at bank and in hand
22,335
57,872
59,630
61,136
**Creditors: amounts falling due within**
**one year**
**16**
(70,042)
(14,576)
Net current (liabilities)/assets
(10,412)
**Total assets less current liabilities**
19,558
**Creditors: amounts falling due after**
**more than one year**
**17**
(10,000)
**Net assets**
9,558
**Income funds**
Restricted funds
6,840
Unrestricted funds
2,718
9,558|**£**
32,137
46,560|
|---|---|
||78,697
-|
||78,697|
||4,750
73,947|
||78,697|
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## **BETTER WORLD CHARITY LIMITED**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 DECEMBER 2021**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.
The trustees' responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
Under Companies Act 2006, S454, on a voluntary basis, the trustees can amend these financial statements if they subsequently prove to be defective.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 8 November 2022
Mrs E Marlow
## **Trustee**
## **Company Registration No. 05915569**
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## **BETTER WORLD CHARITY LIMITED**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**2021**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**21**
(31,562)
**Investing activities**
Purchase of tangible fixed assets
(13,989)
Proceeds on disposal of tangible fixed
assets
-
Investment income received
12
**Net cash used in investing activities**
(13,977)
**Financing activities**
Repayment of borrowings
10,000
**Net cash generated from/(used in)**
**financing activities**
10,000
**Net (decrease)/increase in cash and cash**
**equivalents**
(35,539)
Cash and cash equivalents at beginning of year
57,872
**Cash and cash equivalents at end of year**
22,333|**2020**
**£**
(553)
199
4
-|**£**
2,425
(350)
-
2,075
55,795
57,870|
|---|---|---|
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**BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Better World Charity Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 2nd Floor, 167-169 Great Portland St, London, W1W 5PF.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
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.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Apportionment of Support Costs**
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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
Expenditure is recognised once there is a legal or 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.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure which cannot be attributable to a single activity has been apportioned between support costs and charitable activities on a reasonable, justifiable and consistent basis.
Management regularly reviews cost allocations and decides the apportionment between the various activates and functions supported by specific costs.
This includes:
- usage of a resource or activity in terms of time taken, capacity used
- per capita, based on the number of people employed within an activity
- time, where staff duties span more than one activity
## **1.5 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:
Other Assets No depreciation required Leasehold improvements 25% Reducing Balance Plant and machinery 33% Reducing Balance Fixtures, fittings & equipment 25% Reducing Balance Computers 25% 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.
## **1.6 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).
## **1.7 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
## **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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **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.
- 14 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.12 Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Voluntary Income**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
530,937
13,516
Government Grant Income
29,621
-
560,558
13,516
**Donations and gifts**
Tikun
530,938
13,516
530,937
13,516|**Total Unrestricted**
**funds**
**2021**
**2020**
**£**
**£**
544,453
609,135
29,621
2,032
574,074
611,167
544,454
609,135
544,453
609,135|**Total Unrestricted**
**funds**
**2021**
**2020**
**£**
**£**
544,453
609,135
29,621
2,032
574,074
611,167
544,454
609,135
544,453
609,135|
|---|---|---|
|||611,167|
|||609,135|
|||609,135|
During the year, Better World Charity Ltd received £19,621 of government grants under the Coronavirus Job Retention Scheme (CJRS).
- 15 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**4**|**Charitable activities**|||
|---|---|---|---|
|||**Charitable**|
**Charitable**|
|||**income**|**income**|
|||**2021**|**2020**|
|||**£**|**£**|
||Conferences/ Seminars/ Programmes|83,166|44,644|
|**5**|**Investments**|||
|||**Unrestricted **|**Unrestricted**|
|||**funds**|**funds**|
|||**2021**|**2020**|
|||**£**|**£**|
||Interest receivable|12|4|
|**6**|**Other income**|||
|||**Total **|**Unrestricted**|
||||**funds**|
|||**2021**|**2020**|
|||**£**|**£**|
||Net gain on disposal of tangible fixed assets|-|199|
- 16 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **7 Charitable activities**
|**Unrestricted**
**Expenditure**
**Restricted**
**Expenditure**
**£**
**£**
Conference Costs
93,214
-
Charitable assistance costs
-
11,426
Tikun Donations and Cost of Donations
25,620
-
Rabbi training activity
455,198
-
Light Up A Life Costs
55,902
-
629,934
11,426
Support Costs (see note 8)
67,269
-
Governance Costs (see note 8)
6,231
-
703,434
11,426
**Analysis by fund**
Unrestricted funds
703,434
-
Restricted funds
-
11,426
703,434
11,426
**For the year ended 31 December 2020**
Unrestricted funds
622,818
-
Restricted funds
-
14,400
622,818
14,400|**Total**
**2021**
**£**
93,214
11,426
25,620
455,198
55,902
641,360
67,269
6,231
714,860
703,434
11,426
714,860|**Total**
**2020**
**£**
76,899
14,400
15,787
426,149
5,576|
|---|---|---|
|||538,811
95,525
2,882|
|||637,218|
|||622,818
14,400|
|||637,218|
- 17 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
26,392
-
Depreciation
4,908
-
Rent and Rates
5,735
-
Accountancy
23,468
-
Marketing and PR
201
-
Legal and professional
447
-
Premises & Insurance
1,924
-
Light and Heat
317
-
Postage and Stationery
1,130
-
Telephone
386
-
Software & Subscript.
1,703
-
Consultancy
-
-
Bank charges
658
-
Legal and professional
-
2,826
Rent and Rates
-
2,390
Software & Subscript.
-
437
Light and Heat
-
132
Premises & Insurance
-
446
67,269
6,231
Analysed between
Charitable activities
67,269
6,231|**2021**
**£**
26,392
4,908
5,735
23,468
201
447
1,924
317
1,130
386
1,703
-
658
2,826
2,390
437
132
446
73,500
73,500|**2020 Basis of allocation**
**£**
45,396 Support
5,373 Support
2,181 Support
8,060 Support
- Support
- Support
3,039 Support
874 Support
392 Support
963 Support
1,432 Support
27,336 Support
479 Support
Support
2,640 Governance
242 Governance
- Governance
- Governance
- Governance
98,407
98,407|
|---|---|---|
Governance costs includes payments to the independent examiners of £2,640 inclusive of VAT(2020: £2,640) for fees relating to the independent examination. Fees relating to bookkeeping, management accounts, payroll, statutory work and adhoc services totalled £23,468 inclusive of VAT (2020: £8,060).
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity.
## **10 Employees**
The average monthly number of employees during the year was:
|**2021**|**2020**|
|---|---|
|**Number**|**Number**|
|9|9|
- 18 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**10**|**Employees**||**(Continued)**|
|---|---|---|---|
||**Employment costs**|**2021**|**2020**|
|||**£**|**£**|
||Support Costs|||
||Wages and salaries|23,843|42,511|
||Social security costs|2,075|1,978|
||Other pension costs|474|907|
|||26,392|45,396|
||Charitable Actitivities|||
||Wages and salaries|213,661|128,141|
||Social security costs|17,081|9,501|
||Other pension costs|4,437|1,495|
|||235,179|139,137|
||There were no employees whose annual remuneration was £60,000 or more.|||
|**11**|**Other**|||
|||**Unrestricted**|**Total**|
|||**funds**||
||||**£**|
|||**2021**|**2020**|
||Net loss on disposal of tamgible fixed assets|11,531|-|
|||11,531|-|
- 19 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **12 Tangible fixed assets**
|**Tangible fixed assets**|||||||
|---|---|---|---|---|---|---|
||**Other Assets**|**Leasehold**|**Plant and**|**Fixtures,**|**Computers**|**Total**|
|||**improvements**|**machinery**|**fittings &**|||
|||||**equipment**|||
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Cost**|||||||
|At 1 January 2021|16,093|20,500|6,317|32,700|-|75,610|
|Additions|-|1,869|-|10,621|1,499|13,989|
|Disposals|-|(20,500)|-|-|-|(20,500)|
|At 31 December 2021|16,093|1,869|6,317|43,321|1,499|69,099|
|**Depreciation and impairment**|||||||
|At 1 January 2021|-|8,969|6,317|28,186|-|43,472|
|Depreciation charged in the year|-|467|-|3,784|375|4,626|
|Eliminated in respect of disposals|-|(8,969)|-|-|-|(8,969)|
|At 31 December 2021|-|467|6,317|31,970|375|39,129|
|**Carrying amount**|||||||
|At 31 December 2021|16,093|1,402|-|11,351|1,124|29,970|
|At 31 December 2020|16,093|11,531|-|4,513|-|32,137|
- 20 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**12**
**Tangible fixed assets**
**13**
**Stocks**
Finished goods and goods for resale
**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**Amounts falling due after more than one year:**
Other debtors
**Total debtors**
**15**
**Loans and overdrafts**
Other loans
Payable after one year
**16**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**(Continued)**
**2021**
**2020**
**£**
**£**
300
300
**2021**
**2020**
**£**
**£**
996
2,906
50
58
14,949
-
15,995
2,964
**2021**
**2020**
**£**
**£**
21,000
-
36,995
2,964
**2021**
**2020**
**£**
**£**
10,000
-
10,000
-
**2021**
**2020**
**£**
**£**
10,428
6,061
33,530
2,200
20,694
925
5,390
5,390
70,042
14,576|**(Continued)**
**2021**
**2020**
**£**
**£**
300
300
**2021**
**2020**
**£**
**£**
996
2,906
50
58
14,949
-
15,995
2,964
**2021**
**2020**
**£**
**£**
21,000
-
36,995
2,964
**2021**
**2020**
**£**
**£**
10,000
-
10,000
-
**2021**
**2020**
**£**
**£**
10,428
6,061
33,530
2,200
20,694
925
5,390
5,390
70,042
14,576|
|---|---|---|
|||**2020**
**£**
2,906
58
-|
|||2,964|
|||**2020**
**£**
-|
|||2,964|
|||**2020**
**£**
-|
|||-|
|||**2020**
**£**
6,061
2,200
925
5,390|
|||14,576|
- 21 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **17 Creditors: amounts falling due after more than one year**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Borrowings|10,000|-|
## **18 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £474 (2020 - £907).
## **19 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Tangible assets
29,970
-
Current assets/(liabilities)
(17,252)
6,840
Long term liabilities
(10,000)
-
2,718
6,840|**Total**
Unrestricted
funds
Restricted
funds
**2021**
2020
2020
**£**
£
£
29,970
32,137
-
(10,412)
41,810
4,750
(10,000)
-
-
9,558
73,947
4,750|Total
2020
£
32,137
46,560
-|
|---|---|---|
|||78,697|
## **20 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|100,833|70,096|
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
- 22 -
## **BETTER WORLD CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **20 Related party transactions**
**(Continued)**
## Related party name: CR Practice Ltd
Related party relationship: Company controlled by close family member of the chief executive officer Transaction description: Provision of services looking after the wellbeing of staff and Rabbis Aggregate amount received in period: £35,151.
## Related party name: Vievma Ltd
Related party relationship: Company controlled by close member of the chief operating officer Transaction description: Provision of services in event management. Aggregate amount received in period: £20,300.
|**21**
**Cash generated from operations**
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss/(gain) on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash (absorbed by)/generated from operations**
**22**
**Analysis of changes in net funds**
**At 1**
Cash at bank and in hand
Loans falling due after more than one year|**2021**
**2020**
**£**
**£**
(69,139)
18,796
(12)
(4)
11,531
(199)
4,908
5,373
(34,316)
8,878
55,466
(30,419)
(31,562)
2,425
**January**
**2021**
**Cash flows At 31 December**
**2021**
**£**
**£**
**£**
57,872
(35,537)
22,335
-
(10,000)
(10,000)
57,872
(45,537)
12,335|
|---|---|
- 23 -