**COMPANY REGISTRATION NUMBER: 06129840 CHARITY REGISTRATION NUMBER: 1118526**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Financial Statements**
## **31 December 2021**
## **COHEN ARNOLD**
Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 December 2021**
||**Pages**|
|---|---|
|Trustees' annual report (incorporating the director's report)|**1 to 3**|
|Independent auditor's report to the members|**4 to 8**|
|Statement of financial activities (including income and expenditure||
|account)|**9**|
|Statement of financial position|**10**|
|Statement of cash flows|**11**|
|Notes to the financial statements|**12 to 20**|
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 December 2021**
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2021.
## **Reference and administrative details**
**Registered charity name** North West London Communal Mikvah Limited **Charity registration number** 1118526 **Company registration number** 06129840 **Principal office and registered** 40 Golders Green Crescent **office** London NW11 8LD
## **The trustees**
Mr A J Bloom Mr L A Foux Mr A W Levison **Auditor** Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
## **Structure, governance and management**
## **Governing document**
The charity is a company limited by guarantee incorporated on 27 February 2007 and registered as a charity on 26 March 2007. The company was formed under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
## **Appointment of trustees**
Trustees are appointed according to the Articles of Association.
## **Trustee induction and training**
New trustees undergo a briefing on their legal obligations under company and charity law.
## **Organisational structure**
The board of trustees administers the charity.
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure that appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees are satisfied that systems are in place to manage those risks.
**1**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Objectives and activities**
The charity's objective is the provision and maintenance of ritual baths and the advancement of the jewish religion and education.
The aim of the charity is the management and maintenance of mikvaoth in the North West London area.
The trustees and directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The charitable aims are set out in the objectives and activities paragraphs. The trustees consider this satisfies the public benefit criteria in the North West London area. There is no private benefit obtained as a result of the charity's activities.
## **Achievements and performance**
The charity is satisfied with its overall achievements and performance during the year. As well as continuing to maintain and operate the mikvah in Golders Green, the charity completed the process of building a new mikvah in the Hendon area.
## **Financial review**
The trustees consider that the performance of the charity has been satisfactory bearing in mind the economic climate.
The charity's principle funding sources are donations from individuals and corporate sponsors together with rental income, which have historically been sufficient to permit the charity to continue in operation for the foreseeable future.
## **Reserves policy**
It is the policy of the trustees to accumulate free reserves (not committed or invested in tangible fixed assets) in order for it to be a going concern and to meet the expanding requirements of the community by building more ritual baths and by granting financial assistance for the advancement of the Jewish religion and education. As at 31 December 2021 free reserves amounted to £44,353.
As at 31 December 2021 the charity had £4,628,188 in Unrestricted Funds.
## **Going Concern**
The trustees are of the opinion that the charity is able to continue as a going concern.
## **Plans for future periods**
To continue with the maintenance of mikvaoth in the North West London area.
## **Trustees' responsibilities statement**
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
**2**
Nortb West London Mikvah Limitrd
Company Limited by Guarantee
Trustees, Annual Report (locorporalinE the Director's Report)
Year ended 31 December 2021
In Dreparing thegtr financial R131ements. the inleet sre required to"
3cleLi suitable accountuw wlicitra then awly them consislently.
observe the methL>Js principles in the alle*ble Chantie$ SORP.
make Judgments ejti estim8tes thet are re&wnable ATMI prudent:
prepare the financial statements on the conc¢rn basis unless It is inAppropriale to presume
that the ¢haritv will conTIn in FMLsiness.
The trustees are TesKX)nsible for keepin8 a&qy8t¢ Oun11nu records that are suffi¢i¢nt 10 Show and
explain the charitys trdnsa¢t?ons disclose with relsonable accuracy at time the financia]
sition of the ¢harrty atkd enable thLm) to cnswe that the fuwicial s¢atem¢nts comply with t
Companies Act 2006. Th¢y are also r¢spIble for Safeguardu the asscts of the Cknrity and hence
for iakm¥ reasonable steps for th¢ pTevents"on and daection of fraud and other IeIltieS.
Audltor
Each of the SOnS who Is a trustee * the d*e of appToval of this Tel confim15 th*..
30 as thty awar¢. there Js relevam auth"t onnatIon of which the dwily'3 auditor is
unawBre.' 8nd
th¢y hav¢ taken all sieps thai they ¢)u¥trrt to have lakcn as a lrnslee to make th¢m5elves aware of
any relevant audit and io e9blIsh Ihat ihe chan'ws auditor is awwe of that
Information.
Smill ¢ompany provl#lonJ
This report has been prepared m a¢¢ordance with prOvlOn1 applicable to ¢ompanie¥ entitled lo
the small compdrnes emptiOn.
The ¢ntte5, annual rewt was approved C 25 Odob¢r ?2 alld 51Sd on bdJ8lf of Ihe boArd of
tru5teeJ by..
Mr A W Levison
Tntsiee
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of North West London Communal Mikvah Limited**
## **Year ended 31 December 2021**
## **Opinion**
We have audited the financial statements of North West London Communal Mikvah Limited (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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.
**4**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of North West London Communal Mikvah Limited** _**(continued)**_
## **Year ended 31 December 2021**
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:
- the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
**5**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of North West London Communal Mikvah Limited** _**(continued)**_
## **Year ended 31 December 2021**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity through discussion with the trustees and senior management and identified which were most significant with respect to the financial statements. We identified financial reporting legislation (including related companies legislation), charities legislation and taxation legislation as being most significant to these financial statements. We communicated these identified frameworks throughout our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.
- We discussed with the trustees and senior management the policies and procedures regarding compliance with these legal and regulatory frameworks.
- We assessed the susceptibility of the charity's financial statements to material misstatement due to non-compliance of legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees and senior management during the planning and finalisation phases of our audit and using proprietary disclosure checklists. This was determined to be low.
- Based on this understanding we designed our audit procedures to identify non-compliance with the identified legal and regulatory framework, which were part of our procedures on the related financial statement items. Our procedures included reviewing the charity's internal controls policies and procedures, reviewing the minutes of board meetings and correspondence with regulatory bodies including HMRC, testing transactions outside the normal course of the business and journal entries, and discussions with the trustees and senior management.
**6**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of North West London Communal Mikvah Limited** _**(continued)**_
## **Year ended 31 December 2021**
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
**7**
North West LAbndon Communal Mikvah mited
Company Limited by Guarantee
Independent Auditor's Report to the Members of North West London Communal
Mikvah Limited
Year ended 31 Deeember 2021
We communicate with those charged with governance regarding, among oih¢r matters, the planned
scope and timing of the audil and significant audit findillgs. including any significant deficiencies in
internal control that we identify during our audit.
Use of our reporl
This report is made solely to the charity's members, as a body, in a¢¢ord8nce with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's
Tnetnbers those matters we are required to state to them in an audilor's report and for no other purp05e.
To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than
the ¢harity and ihe charity's members as a body, for our audit work, for this report, or for the opinions
we ha e formed.
Dov Harris FCA IS¢nior Statutory Auditor)
For and on behalf of
Cohen Arnold
Chartered accountants & statutory auditor
New Burlington House
1075 Finchley Road
LONDON
NWII OPU
25 October 2022
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Statement of Financial Activities (including income and expenditure account)**
## **Year ended 31 December 2021**
||||**2021**||2020|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|94,881|210,442|305,323|666,913|
|Charitable activities|**6**|4,257|–|4,257|7,487|
|Investment income|**7**|–|–|–|50|
|Other income|**8**|51,682|–|51,682|278,306|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Total income**||150,820|210,442|361,262|952,756|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|**Expenditure**||||||
|Expenditure on charitable activities|**9,10**|436,688|–|436,688|372,318|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Total expenditure**||436,688|–|436,688|372,318|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Net (expenditure)/income**||(285,868)|210,442|(75,426)|580,438|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|Transfers between funds||210,442|(210,442)|–|–|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Net movement in funds**||(75,426)|–|(75,426)|580,438|
|**Reconciliation of funds**||||||
|Total funds brought forward||4,703,614|–|4,703,614|4,123,176|
|||`─────────────`|`──────────`|`─────────────`|`─────────────`|
|**Total funds carried forward**||4,628,188|–|4,628,188|4,703,614|
|||`═════════════`|`══════════`|`═════════════`|`═════════════`|
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 12 to 20 form part of these financial statements.**
**9**
North M'est London Communal Mikvab Limital
Company Limited by GuaravAte¢
ststeme•t of Financial Position
31 December 2021
2021
2020
Fixed 158ets
Tan8ible fkxed assets
Current *sJets
Debtors
Cash ai bank" at]d in hd
15 5.756.238
5.064.138
16
11.112
73.637
6,035
187.110
84,749
193.145
Creditors: 4rnounts falllng d#e withlffi one ye•r
tt eurrent •Mets
40,196
45.229
44.353
147.916
Total qJJets la• current Ilabililies
S.3.591
18 1.17?.403
5,81?054
Creditor8: Amounts fAllin£ d4*aft¢r wore (hiD •neye4r
Net
1.108.440
4.628.188
4.703.614
Fundi of the eharlty
Unrestricted fijnds
4.628.188
4.703.614
Totsl ¢lArity (¥ndJ
19 4,628.188
4.703,614
These fina11 statements h&ve bttn prewed in accordanc¢ with the provisions applicable to
companies subject to thc $mall corn•¢$,
These fina¢Kial ststements were approved by the bcwd of trustees and authorised fLY issue oft ?S
Oclobcr 202?
- and signed t¢half of tk* t#)ard by..
Mr A W Levison
Tn1¢¢
io
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Statement of Cash Flows**
## **Year ended 31 December 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net (expenditure)/income|(75,426)|580,438|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|217,710|142,880|
|Other interest receivable and similar income|–|(50)|
|Interest payable and similar charges|18,226|26,944|
|Gains on disposal of tangible fixed assets|–|(223,102)|
|Accrued income|–|(2,000)|
|_Changes in:_|||
|Trade and other debtors|(5,077)|5,415|
|Trade and other creditors|77,667|(976)|
||`──────────`|`──────────`|
|Cash generated from operations|233,100|529,549|
|Interest paid|(18,226)|(26,944)|
|Interest received|–|50|
||`──────────`|`──────────`|
|Net cash from operating activities|214,874|502,655|
||`══════════`|`══════════`|
|**Cash flows from investing activities**|||
|Purchase of tangible assets|(309,810)|(1,167,077)|
|Proceeds from sale of tangible assets|–|430,000|
||`──────────`|`─────────────`|
|Net cash used in investing activities|(309,810)|(737,077)|
||`══════════`|`═════════════`|
|**Cash flows from financing activities**|||
|Proceeds from borrowings|(18,537)|(390,949)|
||`──────────`|`─────────────`|
|Net cash used in financing activities|(18,537)|(390,949)|
||`══════════`|`═════════════`|
|**Net decrease in cash and cash equivalents**|(113,473)|(625,371)|
|**Cash and cash equivalents at beginning of year**|187,110|812,481|
||`──────────`|`──────────`|
|**Cash and cash equivalents at end of year**|73,637|187,110|
||`══════════`|`══════════`|
**The notes on pages 12 to 20 form part of these financial statements.**
**11**
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements**
## **Year ended 31 December 2021**
## **1. General information**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 40 Golders Green Crescent, London, NW11 8LD.
## **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 Companies Act 2006.
## **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**
The trustees are of the opinion that the charity is able to continue as a going concern.
## **Judgements and key sources of estimation uncertainty**
In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.
## **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.
**12**
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Incoming resources**
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Tangible assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
**13**
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Tangible assets** _**(continued)**_
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2% straight line Plant and machinery - 10% straight line Fixtures and fittings - 20% straight line
## **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.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
**14**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **4. Limited by guarantee**
The charity is a company limited by guarantee and has no share capital.
## **5. Donations and legacies**
|**Donations and legacies**||||
|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|
||Funds|Funds|**2021**|
||£|£|**£**|
|**Donations**||||
|Donations|94,881|210,442|305,323|
||`═════════`|`══════════`|
`══════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2020|
||£|£|£|
|**Donations**||||
|Donations|94,973|571,940|666,913|
||`═════════`|`══════════`|
`══════════`|
## **6. Charitable activities**
|**6.**|**Charitable activities**|||||
|---|---|---|---|---|---|
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||User contributions|4,257|4,257|7,487|7,487|
|||`═══════`|
`═══════`|`═══════`|`═══════`|
|**7.**|**Investment income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Bank interest receivable|–|–|50|50|
|||`════`|
`════`|`════`|`════`|
**15**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **8. Other income**
|**Other income**|||||
|---|---|---|---|---|
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Gain on disposal of tangible fixed|||||
|assets held for charity's own use|–|–|223,102|223,102|
|Rental income|37,502|37,502|37,105|37,105|
|Coronavirus Job Retention Scheme|||||
|Grant|14,180|14,180|18,099|18,099|
||`─────────`|
`─────────`|`──────────`|`──────────`|
||51,682|51,682|278,306|278,306|
||`═════════`|
`═════════`|`══════════`|`══════════`|
## **9. Expenditure on charitable activities by fund type**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Charitable activities|431,162|431,162|366,992|366,992|
|Support costs|5,526|5,526|5,326|5,326|
||`──────────`|
`──────────`|`──────────`|`──────────`|
||436,688|436,688|372,318|372,318|
||`══════════`|
`══════════`|`══════════`|`══════════`|
## **10. Expenditure on charitable activities by activity type**
|**Expenditure on charitable activities by**|**activity type**||||
|---|---|---|---|---|
||Activities||||
||undertaken||**Total funds**|Total fund|
||directly Support costs||**2021**|2020|
||£|£|**£**|£|
|Charitable activities|431,162|–|431,162|366,992|
|Governance costs|–|5,526|5,526|5,326|
||`──────────`|`───────`|`──────────`|`──────────`|
||431,162|5,526|436,688|372,318|
||`══════════`|`═══════`|`══════════`|`══════════`|
|**Net (expenditure)/income**|||||
|Net (expenditure)/income is stated after charging/(crediting):|||||
||||**2021**|2020|
||||**£**|£|
|Depreciation of tangible fixed assets|||217,710|142,880|
|Gains on disposal of tangible fixed assets|||–|(223,102)|
||||`══════════`|`══════════`|
|**Auditors remuneration**|||||
||||**2021**|2020|
||||**£**|£|
|Fees payable for the audit of the financial|statements||6,600|6,600|
||||`═══════`|`═══════`|
## **11. Net (expenditure)/income**
## **12. Auditors remuneration**
**16**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **13. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Wages and salaries|56,579|63,563|
|Social security costs|–|269|
|Employer contributions to pension plans|225|230|
||`─────────`|`─────────`|
||56,804|64,062|
||`═════════`|`═════════`|
The average head count of employees during the year was 7 (2020: 8).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
## **14. Trustee remuneration and expenses**
There was no remuneration paid to the trustees. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity.
## **15. Tangible fixed assets**
||Freehold|Plant and|Fixtures and||
|---|---|---|---|---|
||property|machinery|fittings|**Total**|
||£|£|£|**£**|
|**Cost**|||||
|At 1 January 2021|7,143,987|–|–|7,143,987|
|Additions|309,810|–|–|309,810|
|Transfers|(1,124,314)|958,595|165,719|–|
||`─────────────`|`──────────`|`──────────`|`─────────────`|
|**At 31 December 2021**|6,329,483|958,595|165,719|7,453,797|
||`═════════════`|`══════════`|`══════════`|`═════════════`|
|**Depreciation**|||||
|At 1 January 2021|1,479,849|–|–|1,479,849|
|Charge for the year|96,992|95,860|24,858|217,710|
||`─────────────`|`──────────`|`──────────`|`─────────────`|
|**At 31 December 2021**|1,576,841|95,860|24,858|1,697,559|
||`═════════════`|`══════════`|`══════════`|`═════════════`|
|**Carrying amount**|||||
|**At 31 December 2021**|4,752,642|862,735|140,861|5,756,238|
||`═════════════`|`══════════`|`══════════`|`═════════════`|
|At 31 December 2020|5,664,138|–|–|5,664,138|
||`═════════════`|`══════════`|`══════════`|`═════════════`|
**17**
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **15. Tangible fixed assets** _**(continued)**_
During the past few years, construction works have been taking place at one of the charity's properties. All of these costs were originally classified as freehold property. However, as works have now completed, costs relating to plant & machinery and fixtures & fittings have been reallocated to so that they can be depreciated at their appropriate rates.
## **16. Debtors**
|**Debtors**|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Trade debtors|4,475|6,035|
|Other debtors|6,637|–|
||`─────────`|`───────`|
||11,112|6,035|
||`═════════`|`═══════`|
|**Creditors:** **amounts falling due within one year**|||
||**2021**|2020|
||**£**|£|
|Bank loans and overdrafts|15,948|15,948|
|Trade creditors|18,948|23,368|
|Accruals and deferred income|5,500|5,500|
|Social security and other taxes|–|413|
||`─────────`|`─────────`|
||40,396|45,229|
||`═════════`|`═════════`|
|**Creditors:** **amounts falling due after more than one year**|||
||**2021**|2020|
||**£**|£|
|Bank loans and overdrafts|864,903|883,440|
|Other creditors|307,500|225,000|
||`─────────────`|`─────────────`|
||1,172,403|1,108,440|
||`═════════════`|`═════════════`|
## **17. Creditors: amounts falling due within one year**
## **18. Creditors: amounts falling due after more than one year**
## **19. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At||||**At**|
||1 January||||**31 December**|
||2021|Income|Expenditure|Transfers|
**2021**|
||£|£|£|£|£|
|General funds|4,703,614|150,820|(436,688)|210,442|
4,628,188|
||`═════════════`|`══════════`|`══════════`|`══════════`|
`═════════════`|
||At||||At|
||1 January||||31 December|
||2020|Income|Expenditure|Transfers|
2020|
||£|£|£|£|£|
|General funds|3,740,171|380,816|(372,318)|954,945|
4,703,614|
||`═════════════`|`══════════`|`══════════`|`══════════`|
`═════════════`|
**18**
**North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **19. Analysis of charitable funds** _**(continued)**_
## **Restricted funds**
|**Restricted funds**|||||||
|---|---|---|---|---|---|---|
|||At||||**At**|
||1|January|||**31**|**December**|
|||2021|Income|Expenditure|Transfers|**2021**|
|||£|£|£|£|£|
|Building Fund||–|210,442|–|(210,442)|–|
|||`════`|`══════════`|`════`|`══════════`|`════`|
|||At||||At|
||1|January|||31|December|
|||2020|Income|Expenditure|Transfers|2020|
|||£|£|£|£|£|
|Building Fund||383,005|571,940|–|(954,945)|–|
|||`══════════`|`══════════`|`════`|`══════════`|`════`|
Transfers between funds relates to restricted income spent on capital expenditure. It is the policy of the charity to move these to unrestricted funds once it has been spent unless there are restricting conditions even after the income has been spent.
## **20. Analysis of net assets between funds**
|**Analysis of net assets between funds**|||
|---|---|---|
||Unrestricted|**Total Funds**|
||Funds|**2021**|
||£|**£**|
|Tangible fixed assets|5,756,238|5,756,238|
|Current assets|84,749|84,749|
|Creditors less than 1 year|(40,396)|
(40,396)|
|Creditors greater than 1 year|(1,172,403)|
(1,172,403)|
||`─────────────`|`─────────────`|
|**Net assets**|4,628,188|4,628,188|
||`═════════════`|`═════════════`|
||Unrestricted|Total Funds|
||Funds|2020|
||£|£|
|Tangible fixed assets|5,664,138|5,664,138|
|Current assets|193,145|193,145|
|Creditors less than 1 year|(45,229)|
(45,229)|
|Creditors greater than 1 year|(1,108,440)|
(1,108,440)|
||`─────────────`|`─────────────`|
|**Net assets**|4,703,614|4,703,614|
||`═════════════`|`═════════════`|
**19**
## **North West London Communal Mikvah Limited**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **21. Analysis of changes in net debt**
|**Analysis of changes in net debt**||||
|---|---|---|---|
||||**At**|
||At 1 Jan 2021|Cash flows|**31 Dec 2021**|
||£|£|**£**|
|Cash at bank and in hand|187,110|(113,473)|
73,637|
|Debt due within one year|(15,948)|–|(15,948)|
|Debt due after one year|(883,440)|18,537|(864,903)|
||`──────────`|`──────────`|`──────────`|
||(712,278)|(94,936)|
(807,214)|
||`══════════`|`══════════`|`══════════`|
## **22. Related parties**
A company related to one of the trustees provided cleaning services to the premises and buildings operated by the charity. These services were charged at below commercial rates and amounted to £39,636 (2020: £42,620).
**20**