COMPANY REGISTRATION NUMBER: 06129840 CHARITY REGISTRATION NUMBER: 1118526
North West London Communal Mikvah Limited Company Limited by Guarantee Financial Statements
31 December 2022
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 2022
| 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 19 |
North West London Communal Mikvah Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2022
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 2022.
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.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2022
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 2022 free reserves amounted to £2,510.
As at 31 December 2022 the charity had £4,458,517 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.
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DocuSign Envelope ID: 1850469D-06E3-4883-9FF7-EBF1A37F1C21
North West London Communal Mikvah Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2022
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 30 June 2023 and signed on behalf of the board of trustees by:
Mr A W Levison Trustee
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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 2022
Opinion
We have audited the financial statements of North West London Communal Mikvah Limited (the 'charity') for the year ended 31 December 2022 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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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.
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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 2022
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:
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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
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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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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.
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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 2022
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.
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We discussed with the trustees and senior management the policies and procedures regarding compliance with these legal and regulatory frameworks.
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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.
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Based on this understanding we designed our audit procedures to identify non-compliance with
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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.
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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 2022
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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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.
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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.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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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.
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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.
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North W¢st IA)ndoD Communal Mikvah Limited Company Limited by Guarantee IndepeDd¢nt Auditor's Report to the Members of Nortb West London CommwiAI Mikvah Limited Year ended 31 December 2022 We communicate with those charged with governan¢¢ regarding, 2morJg oih¢r rnatlers, the plann¢d scope and timing of th¢ audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report Thi5 report is made solely to the charity's members, &g a body, in accordance with Chapter 3 of Part 16 of the Companies A¢t 2006. Our audit work has been undertaken so that we miglji State to the charity's mernbers those matters we are r¢quired 10 state to them in an auditor's report and for no other purpose. To the fUllt extent p¢rmitted bylow. we do not accept or assume responsibility to anyone other than the ¢harity and the charity's members as a body, for our audit work, for this report. or for the opinions we hav¢ fornied. Dov Harris FCA (Senior Statutory Auditor) For and on behalf of Cohen Arnold Chart¢red accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NWII OPU 30 June 2023
North West London Communal Mikvah Limited
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 31 December 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 114,733 | 135,903 | 250,636 | 305,323 |
| Charitable activities | 6 | 4,010 | – | 4,010 | 4,257 |
| Other income | 7 | 41,789 | – | 41,789 | 51,682 |
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | ||
| Total income | 160,532 | 135,903 | 296,435 | 361,262 | |
| ===================================== | ===================================== | ===================================== | ===================================== | ||
| Expenditure | |||||
| Expenditure on charitable activities | 8,9 | 466,106 | – | 466,106 | 436,688 |
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | ||
| Total expenditure | 466,106 | – | 466,106 | 436,688 | |
| ===================================== | ===================================== | ===================================== | ===================================== | ||
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | ||
| Net expenditure | (305,574) | 135,903 | (169,671) | (75,426) | |
| ===================================== | ===================================== | ===================================== | ===================================== | ||
| Transfers between funds | 135,903 | (135,903) | – | – | |
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | ||
| Net movement in funds | (169,671) | – | (169,671) | (75,426) | |
| Reconciliation of funds | |||||
| Total funds brought forward | 4,628,188 | – | 4,628,188 | 4,703,614 | |
| ----------------------------------------------- | ------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Total funds carried forward | 4,458,517 | – | 4,458,517 | 4,628,188 | |
| =============================================== | ===================================== | =============================================== | =============================================== |
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 19 form part of these financial statements.
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DocuSign Envelope ID: 1850469D-06E3-4883-9FF7-EBF1A37F1C21
North West London Communal Mikvah Limited
Company Limited by Guarantee
Statement of Financial Position
| 31 December | 31 December | 2022 | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Note | £ | £ | £ | £ | ||
| Fixed assets | ||||||
| Tangible fixed assets | 14 | 5,597,219 | 5,756,238 | |||
| Current assets | ||||||
| Debtors | 15 | 7,913 | 11,112 | |||
| Cash at bank and in hand | 33,736 | 73,637 | ||||
| ------------------------------- | ------------------------------- | |||||
| 41,649 | 84,749 | |||||
| Creditors: amounts falling due | ||||||
| within one year | 17 | 39,139 | 40,396 | |||
| ------------------------------- | ------------------------------- | |||||
| Net current assets | 2,510 | 44,353 | ||||
| ----------------------------------------------- | ----------------------------------------------- | |||||
| Total assets less current liabilities | 5,599,729 | 5,800,591 | ||||
| Creditors: amounts falling due after | ||||||
| more than one year | 18 | 1,141,212 | 1,172,403 | |||
| ----------------------------------------------- | ----------------------------------------------- | |||||
| Net assets | 4,458,517 | 4,628,188 | ||||
| =============================================== | =============================================== | |||||
| Funds of the charity | ||||||
| Unrestricted funds | 4,458,517 | 4,628,188 | ||||
| ----------------------------------------------- | ----------------------------------------------- | |||||
| Total charity funds | 19 | 4,458,517 =============================================== |
4,628,188 =============================================== |
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 30 June 2023, and are signed on behalf of the board by:
Mr A W Levison Trustee
The notes on pages 12 to 19 form part of these financial statements.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Statement of Cash Flows
Year ended 31 December 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash flows from operating activities | |||
| Net expenditure | (169,671) | (75,426) | |
| Adjustments for: | |||
| Depreciation of tangible fixed assets | 210,529 | 217,710 | |
| Interest payable and similar charges | 62,196 | 18,226 | |
| Changes in: | |||
| Trade and other debtors | 3,199 | (5,077) | |
| Trade and other creditors | (62,162) | 77,667 | |
| ------------------------------------- | ------------------------------------- | ||
| Cash generated from operations | 44,091 | 233,100 | |
| Interest paid | (62,196) | (18,226) | |
| ------------------------------- | ------------------------------------- | ||
| Net cash (used in)/from operating activities | (18,105) | 214,874 | |
| =============================== | ===================================== | ||
| Cash flows from investing activities | |||
| Purchase of tangible assets | (51,510) | (309,810) | |
| ------------------------------- | ------------------------------------- | ||
| Net cash used in investing activities | (51,510) | (309,810) | |
| =============================== | ===================================== | ||
| Cash flows from financing activities | |||
| Proceeds from borrowings | 28,809 | (18,537) | |
| ------------------------------- | ------------------------------------- | ||
| Net cash from/(used in) financing activities | 28,809 | (18,537) | |
| =============================== | ===================================== | ||
| Net decrease in cash and cash equivalents | (40,806) | (113,473) | |
| Cash and cash equivalents at beginning of year | 73,637 | 187,110 | |
| ------------------------------- | ------------------------------------- | ||
| Cash and cash equivalents at end of year | 16 | 32,831 | 73,637 |
| =============================== | ===================================== |
The notes on pages 12 to 19 form part of these financial statements.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 December 2022
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.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
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.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
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 | 2022 | ||
| £ | £ | £ | ||
| Donations | ||||
| Donations | 114,733 | 135,903 | 250,636 | |
| ===================================== | ===================================== | ===================================== | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Donations | ||||
| Donations | 94,881 | 210,442 | 305,323 | |
| =============================== | ===================================== | ===================================== | ||
| Charitable activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| User contributions | 4,010 | 4,010 | 4,257 | 4,257 |
| ========================== | ========================== | ========================== | ========================== | |
| Other income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Rental income | 41,789 | 41,789 | 37,502 | 37,502 |
| Coronavirus Job Retention Scheme | ||||
| Grant | – | – | 14,180 | 14,180 |
| ------------------------------- | ------------------------------- | ------------------------------- | ------------------------------- | |
| 41,789 | 41,789 | 51,682 | 51,682 | |
| =============================== | =============================== | =============================== | =============================== |
6. Charitable activities
7. Other income
- 15 -
North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
8. Expenditure on charitable activities by fund type
| Expenditure on charitable activities | by fund type | |||
|---|---|---|---|---|
| Unrestricted | Total Funds |
Unrestricted | Total Funds | |
| Funds | 2022 |
Funds | 2021 | |
| £ | £ | £ | £ | |
| Charitable activities | 460,350 | 460,350 |
431,162 | 431,162 |
| Support costs | 5,756 | 5,756 |
5,526 | 5,526 |
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | |
| 466,106 | 466,106 |
436,688 | 436,688 | |
| ===================================== | ===================================== | ===================================== | ===================================== | |
| Expenditure on charitable activities | by activity type | |||
| Activities | ||||
| undertaken | Total funds | Total fund | ||
| directly | Support costs | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Charitable activities | 460,350 | – |
460,350 | 431,162 |
| Governance costs | – | 5,756 |
5,756 | 5,526 |
| ------------------------------------- | -------------------------- | ------------------------------------- | ------------------------------------- | |
| 460,350 | 5,756 |
466,106 | 436,688 | |
| ===================================== | ========================== | ===================================== | ===================================== | |
| Net expenditure | ||||
| Net expenditure is stated after charging/(crediting): | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 210,529 | 217,710 | ||
| ===================================== | ===================================== | |||
| Auditors remuneration | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Fees payable for the audit of the financial statements | 6,600 ========================== |
6,600 ========================== |
9. Expenditure on charitable activities by activity type
10. Net expenditure
11. Auditors remuneration
12. Staff costs
The average head count of employees during the year was 2 (2021: 2).
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
13. 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.
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North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
14. Tangible fixed assets
| 14. | Tangible fixed assets | ||||
|---|---|---|---|---|---|
| Freehold | Plant and | Fixtures and | |||
| property | machinery | fittings | Total | ||
| £ | £ | £ | £ | ||
| Cost | |||||
| At 1 January 2022 | 6,329,483 | 958,595 | 165,719 | 7,453,797 | |
| Additions | 51,510 | – | – | 51,510 | |
| ----------------------------------------------- | ------------------------------------- | ------------------------------------- | ----------------------------------------------- | ||
| At 31 December 2022 | 6,380,993 | 958,595 | 165,719 | 7,505,307 | |
| =============================================== | ===================================== | ===================================== | =============================================== | ||
| Depreciation | |||||
| At 1 January 2022 | 1,576,841 | 95,860 | 24,858 | 1,697,559 | |
| Charge for the year | 96,083 | 86,274 | 28,172 | 210,529 | |
| ----------------------------------------------- | ------------------------------------- | ------------------------------------- | ----------------------------------------------- | ||
| At 31 December 2022 | 1,672,924 | 182,134 | 53,030 | 1,908,088 | |
| =============================================== | ===================================== | ===================================== | =============================================== | ||
| Carrying amount | |||||
| At 31 December 2022 | 4,708,069 | 776,461 | 112,689 | 5,597,219 | |
| =============================================== | ===================================== | ===================================== | =============================================== | ||
| At 31 December 2021 | 4,752,642 | 862,735 | 140,861 | 5,756,238 | |
| =============================================== | ===================================== | ===================================== | =============================================== | ||
| 15. | Debtors | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Trade debtors | 4,475 | 4,475 | |||
| Other debtors | 3,438 | 6,637 | |||
| -------------------------- | ------------------------------- | ||||
| 7,913 | 11,112 | ||||
| ========================== | =============================== | ||||
| 16. | Creditors: amounts falling due within one year | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Bank loans and overdrafts | 16,853 | 15,948 | |||
| Trade creditors | 16,786 | 18,948 | |||
| Accruals and deferred income | 5,500 | 5,500 | |||
| ------------------------------- | ------------------------------- | ||||
| 39,139 | 40,396 | ||||
| =============================== | =============================== | ||||
| 17. | Creditors: amounts falling due after more than one | year | |||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Bank loans and overdrafts | 893,712 | 864,903 | |||
| Other creditors | 247,500 | 307,500 | |||
| ----------------------------------------------- | ----------------------------------------------- | ||||
| 1,141,212 | 1,172,403 | ||||
| =============================================== | =============================================== |
- 17 -
North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
18. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | |||||
|---|---|---|---|---|---|
| At | At | ||||
| 1 January | 31 December | ||||
| 2022 | Income | Expenditure | Transfers | 2022 | |
| £ | £ | £ | £ | £ | |
| General funds | 4,628,188 | 160,532 | (466,106) | 135,903 | 4,458,517 |
| =============================================== | ===================================== | ===================================== | ===================================== | =============================================== | |
| 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 |
| =============================================== | ===================================== | ===================================== | ===================================== | =============================================== | |
| Restricted funds | |||||
| At | At | ||||
| 1 January | 31 December | ||||
| 2022 | Income | Expenditure | Transfers | 2022 | |
| £ | £ | £ | £ | £ | |
| Building Fund | – | 135,903 | – | (135,903) | – |
| ================ | ===================================== | ================ | ===================================== | ================ | |
| At | At | ||||
| 1 January | 31 December | ||||
| 2021 | Income | Expenditure | Transfers | 2021 | |
| £ | £ | £ | £ | £ | |
| Building Fund | – | 210,442 | – | (210,442) | – |
| ================ | ===================================== | ================ | ===================================== | ================ |
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.
- 18 -
North West London Communal Mikvah Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2022
19. Analysis of net assets between funds
| Analysis of net assets between funds | |||
|---|---|---|---|
| Unrestricted | Total Funds | ||
| Funds | 2022 | ||
| £ | £ | ||
| Tangible fixed assets | 5,597,219 | 5,597,219 | |
| Current assets | 37,306 | 37,306 | |
| Creditors less than 1 year | (34,796) | (34,796) |
|
| Creditors greater than 1 year | (1,141,212) | (1,141,212) |
|
| ----------------------------------------------- | ----------------------------------------------- | ||
| Net assets | 4,458,517 | 4,458,517 | |
| =============================================== | =============================================== | ||
| 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 | |
| =============================================== | =============================================== | ||
| Analysis of changes in net debt | |||
| At | At | ||
| 1 Jan 2022 | Cash flows | 31 Dec 2022 | |
| £ | £ | £ | |
| Cash at bank and in hand | 73,637 | (39,901) | 33,736 |
| Bank overdrafts | – | (905) | (905) |
| Debt due within one year | (15,948) | – | (15,948) |
| Debt due after one year | (864,903) | (28,809) | (893,712) |
| ------------------------------------- | ------------------------------- | ------------------------------------- | |
| (807,214) | (69,615) | (876,829) |
|
| ===================================== | =============================== | ===================================== |
20. Analysis of changes in net debt
21. 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 £45,618 (2021: £39,636).
- 19 -