Charity Registration No. 1120748
Company Registration No. 06263604 (England and Wales)
YESHIVAS LEV SIMCHA LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
YESHIVAS LEV SIMCHA LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr Y Rigel Mr J Goldman
Charity number 1120748 Company number 06263604 Registered office 17 Margaret Road London N16 6UX Independent examiner Mr J Silver FCCA
Mr J Silver FCCA Precision Ltd 32 Castlewood Road N16 6DW
YESHIVAS LEV SIMCHA LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 |
| Independent examiner's report | 2 |
| Statement of financial activities | 3 |
| Balance sheet | 4 |
| Statement of cash flows | 5 |
| Notes to the financial statements | 6 - 12 |
YESHIVAS LEV SIMCHA LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2020
The trustees present their report and financial statements for the year ended 31 August 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) .
Objectives and activities
The objects for which the company wa s established are the advancement of O rthodox Jewish religious education generally and in particular but not exclusively to maintain administer and manage the Talmudical college known as Yeshivas Lev Simcha.
The Trustees confirm their compliance with the duty to have due regard to the Public Benefit guidance p ublished by the Charity Commission when reviewing the Charity's aims and objectives in planning future activities .
Achievements and performance
During the year the charity raised substantial funds, and has applied all of the funds towards the activities in running the college and supporting charities whose objectives are in line with the charity's objectives.
Financial review
In the year under review the charity generated income of £ 831,473 (2019: £665,660) and incurred expenses of £772,296 (2019: £659,037) resulting in net incoming resources of £59,177 .
The charity's statement of financial activities shows total free reserves of £56,300 . The trustees are satisfied with the results for the year .
The trustees do not seek to maintain reserves, other than to ensure that they can continue the activities of the charity.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
There are no current plans to change the activities or modus operandi in the foreseeable future.
Structure, governance and management
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charity is constituted as a limited company, and was formed on 30 May 2007. The company is managed and controlled by the directors who are the trustees, and who meet regularly. The company commenced its activity on 1 September 2007.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Y Rigel
Mr J Goldman
It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' r eport was approved by the Board of Trustees.
..............................
Mr Y Rigel
Trustee Dated: .........................
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YESHIVAS LEV SIMCHA LTD
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF YESHIVAS LEV SIMCHA LTD
I report to the trustees on my examination of the financial statements of Yeshivas Lev Simcha Ltd (the charity) for the year ended 31 August 2020.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
J Silver FCCA Precision Ltd 32 Castlewood Road N16 6DW
Dated: .........................
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YESHIVAS LEV SIMCHA LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020
| Unrestricted funds 2020 Notes £ Income from: Donations and legacies 3 831,452 Investments 4 21 Total income 831,473 Expenditure on: Raising funds 5 2,040 Charitable activities 6 770,256 Total resources expended 772,296 Net income for the year/ Net movement in funds 59,177 Fund balances at 1 September 2019 (2,877) Fund balances at 31 August 2020 56,300 |
Total 2019 £ 664,357 1,303 665,660 13,240 645,797 659,037 6,623 (9,500) (2,877) |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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YESHIVAS LEV SIMCHA LTD
BALANCE SHEET
AS AT 31 AUGUST 2020
| Notes Fixed assets Tangible assets 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets/(liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets/(liabilities) Income funds Unrestricted funds |
2020 £ 2,537 144,240 146,777 (77,252) |
£ 35,108 69,525 104,633 (48,333) 56,300 56,300 56,300 |
2019 £ 28,787 22,748 51,535 (70,143) |
£ 15,731 (18,608) (2,877) - (2,877) (2,877) (2,877) |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2020.
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
..............................
Mr Y Rigel Trustee
Company Registration No. 06263604
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YESHIVAS LEV SIMCHA LTD
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020
| Notes Cash flows from operating activities Cash generated from operations 16 Investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Financing activities Proceeds of new bank loans Net cash generated from/(used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2020 £ (28,154) 21 50,000 |
£ 99,625 (28,133) 50,000 121,492 22,748 144,240 |
2019 £ (7,994) 1,303 - |
£ 17,380 (6,691) - 10,689 12,059 22,748 |
|---|---|---|---|---|
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
Charity information
Yeshivas Lev Simcha Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 Margaret Road, London, N16 6UX.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
The financial statements have been prepared on a going concern basis as the trustees are of the opinion that the charity will continue for the foreseeable future based upon the continued financial support from the community.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment 20 % Reducing Balance Method Computers 20 % Reducing Balance Method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There have been no material adjustments based on estimations and assumptions during the financial year.
3 Donations and legacies
| Unrestricted funds 2020 £ Donations and gifts 754,712 Government grants 76,740 831,452 |
Total 2019 £ 664,357 - 664,357 |
|---|---|
Government grants relate to amounts received under the Coronavirus Job Retention Scheme and the loan interest paid by the government under the Bounce Back Loan Scheme.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
4 Investments
| Unrestricted funds 2020 £ Rental income - Interest receivable 21 21 Raising funds Unrestricted funds 2020 £ Fundraising and publicity Other fundraising costs 2,040 2,040 |
Total 2019 £ 1,300 3 1,303 Total 2019 £ 13,240 13,240 |
|---|---|
5 Raising funds
6 Charitable activities
| College Expenditure Charitable Expenditure 2020 2020 £ £ Staff costs 245,145 - Depreciation and impairment 8,777 - College running costs 385,430 - 639,352 - Grant funding of activities (see note ) - 121,771 Share of governance costs (see note 7) 9,133 - 648,485 121,771 |
Total 2020 College Expenditure 2019 £ £ 245,145 246,486 8,777 3,933 385,430 337,396 639,352 587,815 121,771 52,723 9,133 5,259 770,256 645,797 |
|---|---|
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
7 Support costs
| Support costs Governance costs £ £ Accountancy - 1,800 Legal and professional - 6,091 Bank Charges - 1,242 - 9,133 Analysed between Charitable activities - 9,133 |
2020 £ 1,800 6,091 1,242 9,133 9,133 |
2019 £ 1,800 1,750 1,709 5,259 5,259 |
|---|---|---|
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
Number of employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs Other pension costs |
2020 Number 30 2020 £ 242,341 2,369 435 245,145 |
2019 Number 33 2019 £ 242,259 4,227 - 246,486 |
|---|---|---|
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
| 10 Tangible fixed assets Plant and equipment Computers £ £ Cost At 1 September 2019 7,429 15,587 Additions 27,579 575 At 31 August 2020 35,008 16,162 Depreciation and impairment At 1 September 2019 1,826 5,459 Depreciation charged in the year 6,636 2,141 At 31 August 2020 8,462 7,600 Carrying amount At 31 August 2020 26,546 8,562 At 31 August 2019 5,603 10,128 11 Debtors 2020 Amounts falling due within one year: £ Other debtors 2,537 12 Loans and overdrafts 2020 £ Bank loans 50,000 Payable within one year 1,667 Payable after one year 48,333 |
Total £ 23,016 28,154 51,170 7,285 8,777 16,062 35,108 15,731 2019 £ 28,787 2019 £ - - - |
|---|---|
The long-term loan relates to a loan received under the government backed Bounce back loan scheme.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020
| 13 | Creditors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Notes | £ | £ | ||
| Bank loans | 12 | 1,667 | - | |
| Other taxation and social security | 5,082 | 1,180 | ||
| Trade creditors | 6,936 | 42,825 | ||
| Other creditors | 34,685 | - | ||
| Accruals and deferred income | 28,882 | 26,138 | ||
| 77,252 | 70,143 | |||
| 14 | Creditors: amounts falling due after more than one year | |||
| 2020 | 2019 | |||
| Notes | £ | £ | ||
| Bank loans | 12 | 48,333 | - | |
| 15 | Related party transactions | |||
| There were no disclosable related party transactions during the year (2019 - none). | ||||
| 16 | Cash generated from operations | 2020 | 2019 | |
| £ | £ | |||
| Surplus for the year | 59,177 | 6,623 | ||
| Adjustments for: | ||||
| Investment income recognised in statement of financial activities | (21) | (1,303) | ||
| Depreciation and impairment of tangible fixed assets | 8,777 | 3,933 | ||
| Movements in working capital: | ||||
| Decrease/(increase) in debtors | 26,250 | (2,851) | ||
| Increase in creditors | 5,442 | 10,978 | ||
| Cash generated from operations | 99,625 | 17,380 | ||
| 17 | Analysis of changes in net funds | |||
| At | 1 September | Cash flows | At 31 August | |
| 2019 | 2020 | |||
| £ | £ | £ | ||
| Cash at bank and in hand | 22,748 | 121,492 | 144,240 | |
| Loans falling due within one year | - | (1,667) | (1,667) | |
| Loans falling due after more than one year | - | (48,333) | (48,333) | |
| 22,748 | 71,492 | 94,240 |
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