Charity registration number 1120748
Company registration number 06263604 (England and Wales)
YESHIVAS LEV SIMCHA LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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 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 - 13 |
YESHIVAS LEV SIMCHA LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2023
The trustees present their annual report and financial statements for the year ended 31 August 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The objects for which the company was established are the advancement of Orthodox 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 published by the Charity Commission when reviewing the Charity's aims and objectives in planning future activities.
Achievements and performance
The charity continued its charitable activities, and managed to raise substantial funds, which it has applied towards the activities in running the college, reducing the charity's deficit, 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 £812,992 (2022: £873,857) and incurred expenses of £794,390 (2022: £846,168) resulting in net incoming resources of £18.602.
At the year end the charity had unrestricted funds of £15,691. 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' report was approved by the Board of Trustees. f Rigel
..............................
Mr Y Rigel
Trustee Dated: ......................... May 28, 2024
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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 2023.
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 2023
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 777,400 | 832,310 |
| Charitable activities | 4 | 35,514 | 41,543 |
| Investments | 5 | 78 | 4 |
| Total income | 812,992 | 873,857 | |
| Expenditure on: | |||
| Raising funds | 6 | 41,887 | 30,340 |
| Charitable activities | 7 | 752,503 | 815,828 |
| Total expenditure | 794,390 | 846,168 | |
| Net income for the year/ | |||
| Net movement in funds | 18,602 | 27,689 | |
| Fund balances at 1 September 2022 | (2,911) | (30,600) | |
| Fund balances at 31 August 2023 | 15,691 | (2,911) |
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 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 12 | 85,888 | 82,499 | ||
| Current assets | |||||
| Debtors | 13 | 68,462 | 53,428 | ||
| Cash at bank and in hand | 15,753 | 16,923 | |||
| 84,215 | 70,351 | ||||
| Creditors: amounts falling due within | |||||
| one year | 15 | (123,826) | (122,831) | ||
| Net current liabilities | (39,611) | (52,480) | |||
| Total assets less current liabilities | 46,277 | 30,019 | |||
| Creditors: amounts falling due after | |||||
| more than one year | 16 | (30,586) | (32,930) | ||
| Net assets/(liabilities) | 15,691 | (2,911) | |||
| Income funds | |||||
| Unrestricted funds | 15,691 | (2,911) | |||
| 15,691 | (2,911) |
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 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 number 06263604
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YESHIVAS LEV SIMCHA LTD
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023
| 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |||
| Cash flows from operating activities | |||||||
| Cash generated from operations | 19 | 28,932 | 60,067 | ||||
| Investing activities | |||||||
| Purchase of tangible fixed assets | (24,861) | (48,478) | |||||
| Investment income received | 78 | 4 | |||||
| Net cash used in investing activities | (24,783) | (48,474) | |||||
| Financing activities | |||||||
| Repayment of bank loans | (5,319) | (8,276) | |||||
| Net cash used in financing activities | (5,319) | (8,276) | |||||
| Net (decrease)/increase in cash and cash | |||||||
| equivalents | (1,170) | 3,317 | |||||
| Cash and cash equivalents at beginning of year | 16,923 | 13,606 | |||||
| Cash and cash equivalents at end of year | 15,753 | 16,923 |
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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 amounts 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 notwithstanding the current reserves deficit, 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.
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 2023
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 the statement of financial activities.
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).
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023
1 Accounting policies
(Continued)
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 ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 777,400 | 828,122 |
| Government grants | - | 4,188 |
| 777,400 | 832,310 |
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.
4 Charitable activities
| Charitable | Charitable | |
|---|---|---|
| Income | Income | |
| 2023 | 2022 | |
| £ | £ | |
| Services provided | - | 1,050 |
| Charitable rental income | - | 500 |
| Reimbursed expenditure | 35,514 | 39,993 |
| 35,514 | 41,543 |
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
5 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Interest receivable | 78 | 4 |
6 Raising funds
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Fundraising and publicity | ||
| Staging fundraising events | 4,250 | 7,479 |
| Advertising | 610 | 1,986 |
| Other fundraising costs | 37,027 | 20,875 |
| Fundraising and publicity | 41,887 | 30,340 |
| 41,887 | 30,340 |
7 Charitable activities
| College Expenditure Charitable Expenditure 2023 2023 £ £ Staff costs 255,305 - Depreciation and impairment 21,472 - College running costs 433,288 - 710,065 - Grant funding of activities (see note ) - 34,516 Share of governance costs (see note 8) 7,922 - 717,987 34,516 |
Total 2023 £ 255,305 21,472 433,288 710,065 34,516 7,922 752,503 |
Total 2022 £ 248,860 20,625 492,571 |
|---|---|---|
| 762,056 43,026 10,746 |
||
| 815,828 |
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023
8 Support costs
| Accountancy Legal and professional Bank Charges Analysed between Charitable activities |
Support costs Governance costs £ £ - 4,200 - 454 - 3,268 - 7,922 - 7,922 |
2023 £ 4,200 454 3,268 7,922 7,922 |
2022 £ 4,560 3,370 2,816 |
|---|---|---|---|
| 10,746 | |||
| 10,746 |
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs Other pension costs |
2023 Number 31 2023 £ 254,751 - 554 255,305 |
2022 Number 31 |
|---|---|---|
| 2022 £ 247,107 764 989 |
||
| 248,860 |
There were no employees whose annual remuneration was more than £60,000.
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
| 12 Tangible fixed assets Plant and equipment Computers £ £ Cost At 1 September 2022 113,473 19,374 Additions 24,119 742 At 31 August 2023 137,592 20,116 Depreciation and impairment At 1 September 2022 38,832 11,516 Depreciation charged in the year 19,752 1,720 At 31 August 2023 58,584 13,236 Carrying amount At 31 August 2023 79,008 6,880 At 31 August 2022 74,641 7,858 13 Debtors 2023 Amounts falling due within one year: £ Other debtors 68,462 14 Loans and overdrafts 2023 £ Bank loans 35,886 Payable within one year 5,300 Payable after one year 30,586 |
Total £ 132,847 24,861 |
|---|---|
| 157,708 | |
| 50,348 21,472 |
|
| 71,820 | |
| 85,888 | |
| 82,499 | |
| 2022 £ 53,428 |
|
| 2022 £ 41,205 |
|
| 8,275 32,930 |
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 2023
15 Creditors: amounts falling due within one year
| Notes Bank loans 14 Other taxation and social security Trade creditors Other creditors Accruals and deferred income Creditors: amounts falling due after more than one year Notes Bank loans 14 |
2023 £ 5,300 3,048 49,000 10,000 56,478 123,826 2023 £ 30,586 |
2022 £ 8,275 (370) 72,094 7,000 35,832 122,831 2022 £ 32,930 |
|---|---|---|
16 Creditors: amounts falling due after more than one year
17 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £554 (2022 - £989).
18 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
| 19 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors Increase in creditors Cash generated from operations |
2023 £ 18,602 (78) 21,472 (15,034) 3,970 28,932 |
2022 £ 27,689 (4) 20,625 (29,756) 41,513 60,067 |
|---|---|---|
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YESHIVAS LEV SIMCHA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023
| 20 | Analysis of changes in net (debt)/funds | |||
|---|---|---|---|---|
| At 1 September | Cash flows | At 31 August | ||
| 2022 | 2023 | |||
| £ | £ | £ | ||
| Cash at bank and in hand | 16,923 | (1,170) | 15,753 | |
| Loans falling due within one year | (8,275) | 2,975 | (5,300) | |
| Loans falling due after more than one year | (32,930) | 2,344 | (30,586) | |
| (24,282) | 4,149 | (20,133) |
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