REGISTERED COMPANY NUMBER: 06131792 (England and Wales) REGISTERED CHARITY NUMBER: 1119362
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2024
FOR
JEWISH LEARNING EXCHANGE BUILDING LIMITED
Joseph Kahan Associates LLP Registered Auditors Chartered Accountants 923 Finchley Road London NW11 7PE
JEWISH LEARNING EXCHANGE BUILDING LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2024
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Report of the Independent Auditors | 4 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | ||
| Cash Flow Statement | 10 | ||
| Notes to the Cash Flow Statement | 11 | ||
| Notes to the Financial Statements | 12 | to | 21 |
JEWISH LEARNING EXCHANGE BUILDING LIMITED (REGISTERED NUMBER: 06131792)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2024
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28th February 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's object and principal activity continues to be that of the advancement of Orthodox Jewish Religious Education amongst members of the Jewish Faith.
The charity is organized so that the directors and trustees meet regularly to manage its affairs and deal with the day to day administration.
ACHIEVEMENT AND PERFORMANCE
The trustees are pleased with the transfer across from it sister charity JLE ( Registered Charity 292886) of the Investment Property 66 The Drive, London NW11. This was done in order to keep all the properties "under one entity" and thus make management of them more efficient and allow for economies of scale.
FINANCIAL REVIEW
Financial position
The Statement of Financial Activities shows cash reserves of £76,869 (2023 £8,870) as at 28th February 2024.
The Statement of Financial Activities shows a deficit for the year of £352,028 (of which £27,972 is a realised surplus) (2023 : surplus - £705,224 of which £67,177 is a realised surplus). The reserves show a surplus of £4,556,960 (2023 - £4,908,988).
Reserves policy
The charity's reserves policy is to maintain sufficient reserves to enable the charity to continue its activities and services at a meaningful level, should there be a drop in income. The trustees review this position on a regular basis.
In view of this the trustees normally aim to maintain a level of reserves sufficient to meet three months basic operating cost. However as the charity is in the middle of restructuring the Investment Property portfolio and adding to it , Trustees have temporarily departed from this policy.
Principal risks and uncertainties
The Trustees are well aware of the risks posed by the Covid-19 pandemic to the Charity. TheTrustees are however confident that they can maximize the rental yield of the property portfolio and they are actively working to achieve this, and the results of this are already reflected in this years accounts.
FUTURE PLANS
The charity has engaged in a modernisation and expansion project at 152-154 Golders Green Road, the headquarters of its sister charity the Jewish Learning Exchange (JLE) so as to provide a vibrant and exciting environment from which the JLE can operate out of. and attract even more young professionals and students.
To this end the charity has entered into an agreement granting a lease at a peppercorn rent on one third of the roofspace at 152-154 Golders Green Road, to a local property development company in exchange for the developer to build an additional floor on this site in furtherance of the JLE's expansion plans.
The trustees continue to seek ways to maximize the charitable company's income from its investments to enable it to continue its charitable objectives.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED (REGISTERED NUMBER: 06131792)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2024
STRUCTURE, GOVERNANCE AND MANAGEMENT
Trustee and Organisational Structure
The charity is constituted as a company limited by guarantee and is therefore governed by a Memorandum and Articles of Association. All directors of the company are also trustees of the charity and there are no other trustees. All of the trustees named above served throughout the period. The board has the power to appoint additional trustees as and when it considers fit to do so.
Risk management
The charity trustees have considered the major risks to which the charity is exposed. Major risks are risks that will affect the charity's operational performance and aims and objectives. The charity review these risks on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. The trustees believe that the present level of funding is adequate to support the continuation of the charity's object as to provide Orthodox Jewish Religious Education.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
06131792 (England and Wales)
Registered Charity number
1119362
Registered office
152-154 Golders Green Road Golders Green London NW11 8HE
Trustees
A Cohen D P Lyons S Douer S A Melnick (appointed 28.2.2024)
Auditors
Joseph Kahan Associates LLP Registered Auditors Chartered Accountants 923 Finchley Road London NW11 7PE
REVIEW OF THE CHARITY
The charitable company was incorporated on 28 February 2007. The charity was formed to purchase and run the building at 152-154 Golders Green Road, London NW11 8HE and associated properties. The original building is run as an educational and social centre housing the programmes and administration offices of the Jewish Learning Exchange (Charity No.292886). The purchase of the building was completed in June 2007 and the charity raised significant sums from private benefactors and charitable trusts, and by taking a mortgage. The charity has further purchased property to facilitate for the growth in the organisation.
In the view of the Trustees the funds held are Restricted Funds.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED (REGISTERED NUMBER: 06131792)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2024
DECLARATION OF PUBLIC BENEFIT
The Trustees have considered the Charity Commission's general guidance on public benefit in deciding what activities the charity should undertake.
The 'Objectives and Activities' section explains the charity's activities which are open to anyone of the Orthodox Jewish faith.
TRUSTEES' RESPONSIBILITY STATEMENT
The trustees (who are also the directors of Jewish Learning Exchange Building Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and 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 charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The Charities Auditors , Joseph Kahan Associates LLP were appointed to their role as of 22nd November 2021.
The auditors, Joseph Kahan Associates LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 27th November 2024 and signed on its behalf by:
A Cohen - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JEWISH LEARNING EXCHANGE BUILDING LIMITED
Opinion
We have audited the financial statements of Jewish Learning Exchange Building Limited (the 'charitable company') for the year ended 28th February 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 28th February 2024 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; and
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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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JEWISH LEARNING EXCHANGE BUILDING LIMITED
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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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 take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JEWISH LEARNING EXCHANGE BUILDING LIMITED
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquires of management and the Trustees were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.
The following laws and regulations were identified as being of significance to the entity:
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Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards,the Companies Act 2006 , the Charities SORP FRS102) and Charity Law.
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Those laws and regulations for which non - compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with the charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JEWISH LEARNING EXCHANGE BUILDING LIMITED
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Akiva Kahan (Senior Statutory Auditor) for and on behalf of Joseph Kahan Associates LLP Registered Auditors Chartered Accountants 923 Finchley Road London NW11 7PE
29th November 2024
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2024
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Property Management Investment income 2 Total EXPENDITURE ON Charitable activities Property Management Governance Finance costs Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ - - - - - - - - - - - - |
Restricted funds £ 10,377 214 422,746 433,337 57,881 24,139 323,345 405,365 (380,000) (352,028) 4,908,988 4,556,960 |
2024 Total funds £ 10,377 214 422,746 433,337 57,881 24,139 323,345 405,365 (380,000) (352,028) 4,908,988 4,556,960 |
2023 Total funds £ 5,330 - 358,884 |
|---|---|---|---|---|
| 364,214 | ||||
| 146,086 16,885 134,066 |
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| 297,037 | ||||
| 638,047 | ||||
| 705,224 4,203,764 |
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| 4,908,988 |
The notes form part of these financial statements
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JEWISH LEARNING EXCHANGE BUILDING LIMITED (REGISTERED NUMBER: 06131792)
BALANCE SHEET 28TH FEBRUARY 2024
| Notes FIXED ASSETS Tangible assets 8 Investment property 9 CURRENT ASSETS Debtors 10 Investments 11 Cash at bank CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 13 NET ASSETS FUNDS 15 Restricted funds TOTAL FUNDS |
Unrestricted fund £ - - - - - - - - - - - - |
Restricted funds £ 159,757 8,165,000 8,324,757 98,436 645,690 76,869 820,995 (117,397) 703,598 9,028,355 (4,471,395 ) 4,556,960 |
2024 Total funds £ 159,757 8,165,000 8,324,757 98,436 645,690 76,869 820,995 (117,397) 703,598 9,028,355 (4,471,395 ) 4,556,960 4,556,960 4,556,960 |
2023 Total funds £ 113,610 8,545,000 8,658,610 87,097 - 8,870 95,967 (40,166) 55,801 8,714,411 (3,805,423 ) 4,908,988 4,908,988 4,908,988 |
|---|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 27th November 2024 and were signed on its behalf by:
A Cohen - Trustee
The notes form part of these financial statements
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 28TH FEBRUARY 2024
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Purchase of investment property Purchase of current asset investments Interest received Net cash used in investing activities Cash flows from financing activities New loans in year Loan repayments in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2024 £ (256,994) (256,994) (53,423) - (645,689) 45,690 (653,422) 1,100,000 (121,585) 978,415 67,999 8,870 76,869 |
2023 £ 1,470,330 1,470,330 - (1,456,953 ) - - (1,456,953 ) 190,445 (220,000) (29,555) (16,178) 25,048 8,870 |
|---|---|---|
The notes form part of these financial statements
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 28TH FEBRUARY 2024
1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Losses/(gain) on investments Interest received (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash (used in)/provided by operations |
2024 £ (352,028) 7,276 380,000 (45,690) (11,339) (235,213) (256,994) |
2023 £ 705,224 9,701 (638,047) - 557,809 835,643 1,470,330 |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET DEBT
| At 1/3/23 | Cash flow | At 28/2/24 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 8,870 | 67,999 | 76,869 |
| 8,870 | 67,999 | 76,869 | |
| Liquid resources | |||
| Deposits included in cash | - | - | - |
| Current asset investments | - | 645,690 | 645,690 |
| - | 645,690 | 645,690 | |
| Debt | |||
| Debts falling due within 1 year | (30,000) | - | (30,000) |
| Debts falling due after 1 year | (2,959,189 ) | (978,415) | (3,937,604 ) |
| (2,989,189 ) | (978,415) | (3,967,604 ) | |
| Total | (2,980,319 ) | (264,726) | (3,245,045 ) |
The notes form part of these financial statements
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2024
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Going concern
The Trustees have reviewed the charities operations and have no material uncertainties about the charity's ability to continue as a going concern .
Income
Recognition of Incoming Resources
Income is derived on a receivable basis from property rental receipts
These resources are included in the Statement of Financial Activities (SOFA) when all of the following criteria are met:
- ~ the Charity or its subsidiaries have entitlement to the funds;
~ the receipt of the income is considered probable; and
- ~ the monetary value can be measured with sufficient reliability.
Incoming Resources with Related Expenditure
Where incoming resources have related expenditure (as with fundraising Contract or investment income) the incoming resources and related expenditure are reported gross in the SOFA.
Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.The expenditure is related specifically for the acquisition and maintenance of the associated properties.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - not provided Fixtures, fittings and equipment - 25% on reducing balance
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
1. ACCOUNTING POLICIES - continued
Investment property
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investments properties are recognised initially at cost.
Subsequent to initial recognition:
a) Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and
b) No depreciation is provided in respect of the investment properties applying the fair value model.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Financial instruments
The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
1. ACCOUNTING POLICIES - continued
Financial instruments
Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.
2. INVESTMENT INCOME
| Rents received Bank interest received Curr asset inv income |
2024 £ 376,749 307 45,690 422,746 |
2023 £ 358,884 - - |
|---|---|---|
| 358,884 |
3. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Auditors' remuneration | 5,400 | 5,400 |
| Other non-audit services | 1,000 | 1,000 |
| Depreciation - owned assets | 7,276 | 9,701 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 28th February 2024 nor for the year ended 28th February 2023.
Trustees' expenses
There were no trustees' expenses paid for the year ended 28th February 2024 nor for the year ended 28th February 2023.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
5. STAFF COSTS
There were no staff costs for the year ended 28th February 2024 nor for the year ended 28th February 2023.
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Charitable activities Property Management Governance Finance costs Total Net gains on investments NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 7. INTANGIBLE FIXED ASSETS COST At 1st March 2023 and 28th February 2024 AMORTISATION At 1st March 2023 and 28th February 2024 NET BOOK VALUE At 28th February 2024 At 28th February 2023 |
Unrestricted fund £ - - - - - - - - - - - |
Restricted funds £ 5,330 358,884 364,214 146,086 16,885 134,066 297,037 638,047 705,224 4,203,764 4,908,988 |
Total funds £ 5,330 358,884 |
|
|---|---|---|---|---|
| 364,214 | ||||
| 146,086 16,885 134,066 |
||||
| 297,037 | ||||
| 638,047 | ||||
| 705,224 4,203,764 |
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| 4,908,988 | ||||
| Goodwill £ 400,000 400,000 - - |
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
8. TANGIBLE FIXED ASSETS
| Improvements to property £ COST At 1st March 2023 84,506 Additions 53,423 At 28th February 2024 137,929 DEPRECIATION At 1st March 2023 - Charge for year - At 28th February 2024 - NET BOOK VALUE At 28th February 2024 137,929 At 28th February 2023 84,506 9. INVESTMENT PROPERTY FAIR VALUE At 1st March 2023 Revaluation At 28th February 2024 NET BOOK VALUE At 28th February 2024 At 28th February 2023 |
Fixtures, fittings and equipment £ 89,244 - 89,244 60,140 7,276 67,416 21,828 29,104 |
Totals £ 173,750 53,423 227,173 60,140 7,276 67,416 159,757 113,610 £ 8,545,000 (380,000) 8,165,000 8,165,000 8,545,000 |
|---|---|---|
The professional valuation of investment property has been undertaken for bank lending purposes as follows:
1.152 - 154 Golders Green - the professional valuation was prepared by Freya Morrow MRICS ( RICS no.6600209) of Allsop LLP on 20th December 2022 with a fair value of £4,170,000.
-
115 Princes Park Avenue - the professional valuation was prepared by Daniel Lightstone BA Assoc RICS ( RICS no.6338346) of Bellevenue Mortlakes on 14th March 2023 with a fair value of £1,900,000.
-
66 The Drive the professional valuation was prepared by Joshua O'Rawe BA MRICS of Copping Joyce Surveyors Limited on 20th September 2022 with fair value of £2,095,000.
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
9. INVESTMENT PROPERTY - continued
Fair value at 28th February 2024 is represented by:
| Valuation in 2023 Valuation in 2024 Cost 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Payment on Account Prepayments 11. CURRENT ASSET INVESTMENTS Money held on Deposit 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans (see note 14) Tenants Deposit Account VAT Deferred rental income Accrued expenses |
2024 £ 95,046 - 3,390 98,436 2024 £ 645,690 2024 £ 30,000 66,000 1,930 9,167 10,300 117,397 |
£ 638,047 (380,000) 7,906,953 8,165,000 2023 £ 66,500 16,434 4,163 87,097 2023 £ - 2023 £ 30,000 - 166 - 10,000 40,166 |
£ 638,047 (380,000) 7,906,953 8,165,000 2023 £ 66,500 16,434 4,163 87,097 2023 £ - 2023 £ 30,000 - 166 - 10,000 40,166 |
||
|---|---|---|---|---|---|
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Bank loans (see note 14) Deferred Grant Income Jewish Learning Exchange Charity |
2024 £ 3,937,604 - 533,791 4,471,395 |
2023 £ 2,959,189 9,943 836,291 |
|---|---|---|
| 3,805,423 |
14. LOANS
An analysis of the maturity of loans is given below:
| Amounts falling due within one year on demand: Bank loans Amounts falling due between two and five years: Bank loans - 2-5 years |
2024 £ 30,000 3,937,604 |
2023 £ 30,000 |
|---|---|---|
| 2,959,189 |
The loan from Principality Building Society is secured by way of first legal charge over the Freehold Property Known as 152-154 Golders Green Road, Golders Green, London , NW11 8HE.
The loan from Unity Trust Bank is secured by a Deed of Debenture incorporating a fixed and floating charge over the asset of the charity.
15. MOVEMENT IN FUNDS
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
At 1/3/23 £ 4,270,941 638,047 4,908,988 4,908,988 |
Net movement in funds £ 27,972 (380,000) (352,028) (352,028) |
At 28/2/24 £ 4,298,913 258,047 |
|---|---|---|---|
| 4,556,960 | |||
| 4,556,960 |
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
15. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 433,337 - 433,337 433,337 |
Resources expended £ (405,365) - (405,365) (405,365) |
Gains and Movement losses in funds £ £ - 27,972 (380,000) (380,000) (380,000) (352,028) (380,000) (352,028) |
Gains and Movement losses in funds £ £ - 27,972 (380,000) (380,000) (380,000) (352,028) (380,000) (352,028) |
|---|---|---|---|---|
| (352,028) | ||||
| (352,028) |
Comparatives for movement in funds
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
At 1/3/22 £ 4,203,764 - 4,203,764 4,203,764 |
Net movement in funds £ 67,177 638,047 705,224 705,224 |
At 28/2/23 £ 4,270,941 638,047 |
|---|---|---|---|
| 4,908,988 | |||
| 4,908,988 |
Comparative net movement in funds, included in the above are as follows:
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 364,214 - 364,214 364,214 |
Resources expended £ (297,037) - (297,037) (297,037) |
Gains and Movement losses in funds £ £ - 67,177 638,047 638,047 638,047 705,224 638,047 705,224 |
Gains and Movement losses in funds £ £ - 67,177 638,047 638,047 638,047 705,224 638,047 705,224 |
|---|---|---|---|---|
| 705,224 | ||||
| 705,224 |
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
15. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
At 1/3/22 £ 4,203,764 - 4,203,764 4,203,764 |
Net movement in funds £ 95,149 258,047 353,196 353,196 |
At 28/2/24 £ 4,298,913 258,047 |
|---|---|---|---|
| 4,556,960 | |||
| 4,556,960 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Restricted funds Restricted Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 797,551 - 797,551 797,551 |
Resources expended £ (702,402) - (702,402) (702,402) |
Gains and Movement losses in funds £ £ - 95,149 258,047 258,047 258,047 353,196 258,047 353,196 |
Gains and Movement losses in funds £ £ - 95,149 258,047 258,047 258,047 353,196 258,047 353,196 |
|---|---|---|---|---|
| 353,196 | ||||
| 353,196 |
16. CONTINGENT LIABILITIES
The Charity has entered into an agreement with a third party whereby upon the sale of 115 Princes Park Avenue, London , NW11 0JS, the third party will share in the profit based upon a formula determined and agreed upon, on the purchase of the property. As at the year end the estimated liability amounts to just over £700,000.
17. RELATED PARTY DISCLOSURES
All the trustees are also trustees of Jewish Learning Exchange ( UK Registered Charity No.292886). Jewish Learning Exchange occupied a property which is owned by the Jewish Learning Exchange Building Ltd for its operations and paid rent during the year totalling £160,000 (2022 - £120,000).
Included in creditors due after more than one year is £533,791 (2023 :£836,291) due to an entity with Trustees in common with the directors/Trustees of the charitable company.
During the year a company in which one of the trustees served as a director received management agent fees amounting to £21,279 ( 2023: £14,455).
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JEWISH LEARNING EXCHANGE BUILDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
18. ACCOUNTING ESTIMATES AND JUDGEMENTS
Property Valuations
The valuation of the company's property portfolio is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore, the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions.
19. RESTRICTED FUND
This represents property purchased as a result of public funding campaigns to raise requisite funds to purchase property from which the related party charity Jewish Learning Exchange can trade, as well as apply rental income profits to Jewish Learning Exchange in furtherance of its objects.
Page 21