REGISTERED COMPANY NUMBER: 06303541 (England and Wales) REGISTERED CHARITY NUMBER: 1121469
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
FOR
HASDEI AVOT CHARITABLE TRUST
Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
HASDEI AVOT CHARITABLE TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Statement of Financial Position | 6 | ||
| Statement of Cash Flows | 7 | ||
| Notes to the Statement of Cash Flows | 8 | ||
| Notes to the Financial Statements | 9 | to | 15 |
HASDEI AVOT CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
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 31st December 2020. 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 is constituted as a company limited by guarantee, and is therefore governed by a Memorandum and Articles of Association. The Charity is registered with the Charity Commission.
The Charity's object and its principal activities must be: To provide grants and donations for individuals or such charitable associations, bodies and organizations, for the purpose of advancing education, relieving poverty, sickness and the needs of the elderly and disabled, as the trustees in their absolute discretion must think fit.
Public benefit
The trustees have carefully considered the public benefit requirements and their duty to ensure that they are compliant with them. They feel that the activities as detailed below, must more than adequately, satisfy the public benefit requirement.
The trustees must continue to operate within the confines of the charity objectives namely in the respect of the providing grants and donations to individuals or such charitable organizations for the advancement of education, relief of poverty, sickness and the need of the elderly and disabled.
The charity must provide grants to a broad section of the community and grant applications must be vetted carefully. Where the grants are given, the trustees must follow it through to ensure that the grants are used for the purposes for which they are needed.
The trustees are of the opinion that the following through of these grants ensure that the aims and objects of the charity is met.
ACHIEVEMENT AND PERFORMANCE
The Trustees consider the performance of the Charity during the period to be satisfactory, and note that more voluntary donations have been received during the year to support the objective of the charity.
FINANCIAL REVIEW
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. As all income is derived from voluntary donations, the trustees review this position on a regular basis.
In view of this the trustees aim to maintain a level of reserves sufficient to meet three months basic operating costs.
Having regard to the above the Trustees are of the opinion that the cash reserves held as at the year end would be sufficient to meet three months basic operating costs and, they intend to increase the reserves held in the forthcoming year.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
The trustees have considered the effect of the COVID-19 outbreak that has been spreading throughout the world in early 2020 on the Charity's activities. The assessment related to disruption that might be caused to the Charity's operations. At the date of approval of these financial statements, the trustees have assessed the extent and quantum of the disruption which remains uncertain at this time. The trustees have prepared cash flow forecasts and profit projections which demonstrate the charity can continue as a going concern.
The Statement of Financial Activities shows a net deficit for the year of £11,891 ( 2019: £102,338).The reserves fund as at 31st December 2020 was £1,770,281 ( 2019 : £1,782,172).
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HASDEI AVOT CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
FUTURE PLANS
We are confident that our supporters will provide us with contributions at a level to support the objects of the charity.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
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.
Recruitment and appointment of new trustees
All Directors of the company are also Trustees of the charity, and there are no other Trustees. All of the Trustees named on page 1 served throughout the year. The Board has the power to appoint additional Trustees as it considers fit to do so.
Organisational structure
The Charity is organized so that the Directors and Trustees must meet regularly to manage its affairs. There are two part time administrators, who manage the day to day administration of the Charity.
Risk management
The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, must provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risks.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
06303541 (England and Wales)
Registered Charity number
1121469
Registered office
923 Finchley Road Golders Green London NW11 7PE
Trustees
M G Abadi Director and Trustee D P Lyons Director and Trustee F Resnik De Abadi Director and Trustee
Company Secretary
Mrs F Resnik De Abadi
Independent Examiner
Akiva Kahan FCA ICAEW Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
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HASDEI AVOT CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
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 26th September 2021 and signed on its behalf by:
M G Abadi - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HASDEI AVOT CHARITABLE TRUST
Independent examiner's report to the trustees of Hasdei Avot Charitable Trust ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st December 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW 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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts 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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the accounts 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 accounts to be reached.
Akiva Kahan FCA ICAEW Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
Date: .....September 2021
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HASDEI AVOT CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Investment income 3 Total EXPENDITURE ON Charitable activities 4 Charitable donations and associated costs Net Foreign exchange loss/gain Finance costs Accountancy, professional and legal fees (Gain)/Loss on disposal of investment Total Net gains on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2020 Unrestricted fund £ 332,629 8,206 340,835 493,744 94,942 480 3,834 79,543 672,543 319,817 (11,891) 1,782,172 1,770,281 |
2019 Total funds £ 374,500 686 375,186 498,509 23,520 530 3,359 (9,861) 516,057 38,533 (102,338) 1,884,510 1,782,172 |
|---|---|---|
The notes form part of these financial statements
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HASDEI AVOT CHARITABLE TRUST
STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2020
| Notes FIXED ASSETS Investments 10 CURRENT ASSETS Debtors 11 Cash at bank CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds TOTAL FUNDS |
2020 Unrestricted fund £ 1,711,747 4,200 60,206 64,406 (5,872) 58,534 1,770,281 1,770,281 1,770,281 1,770,281 |
2019 Total funds £ 1,703,859 5,000 79,185 84,185 (5,872) 78,313 1,782,172 1,782,172 1,782,172 1,782,172 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.
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 26th September 2021 and were signed on its behalf by:
M G Abadi - Trustee
The notes form part of these financial statements
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HASDEI AVOT CHARITABLE TRUST
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Purchase of fixed asset investments Sale of tangible fixed assets Sale of fixed asset investments Interest received Dividends received Net cash provided by investing 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 |
2020 £ (488,658) (488,658) (591,353) (79,543) 1,132,369 124 8,082 469,679 (18,979) 79,185 60,206 |
2019 £ (154,028) (154,028) (1,703,859 ) 9,861 1,900,804 686 - 207,492 53,464 25,721 79,185 |
|---|---|---|
The notes form part of these financial statements
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net expenditure for the reporting period (as per the Statement of Financial Activities) Adjustments for: Gain on investments Loss/(profit) on disposal of fixed assets Interest received Dividends received Unrealized gain Decrease in debtors Decrease in creditors Net cash used in operations |
2020 £ (11,891) (319,817) 79,543 (124) (8,082) (229,087) 800 - (488,658) |
2019 £ (102,338) (38,533) (9,861) (686) - - 500 (3,110) (154,028) |
|---|---|---|
- ANALYSIS OF CHANGES IN NET FUNDS
| At 1/1/20 | Cash flow | At 31/12/20 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 79,185 | (18,979) | 60,206 |
| 79,185 | (18,979) | 60,206 | |
| Total | 79,185 | (18,979) | 60,206 |
The notes form part of these financial statements
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. LEGAL STATUS OF THE CHARITY
The Charity is established by a declaration of Trust dated 5th July 2007, as amended by special resolution dated 10th October 2007, a certificate of incorporation on change of name of 19th December 2007, was amended on 5th December 2017.
2. 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
All income must be recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities must be 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 must 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.
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 statement of financial position 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
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
2. ACCOUNTING POLICIES - continued
Financial instruments
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.
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.
3. INVESTMENT INCOME
During the year, there was a disposal of the investment held which resulted in the loss on disposal amounting to £79,543 (2019 : profit of £9,861).
4. CHARITABLE ACTIVITIES COSTS
| Charitable donations and associated costs Net Foreign exchange loss/gain Finance costs Accountancy, professional and legal fees (Gain)/Loss on disposal of investment |
Direct Costs £ 493,744 - - - - 493,744 |
Support costs (see note 5) £ - 94,942 480 3,834 79,543 178,799 |
Totals £ 493,744 94,942 480 3,834 79,543 |
|---|---|---|---|
| 672,543 |
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
5. SUPPORT COSTS
6.
| Net Foreign exchange loss/gain Finance costs Accountancy, professional and legal fees (Gain)/Loss on disposal of investment NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): (Deficit)/surplus on disposal of fixed assets |
Governance Finance costs £ £ 94,942 - 480 - - 3,834 - 79,543 95,422 83,377 2020 £ 79,543 |
Totals £ 94,942 480 3,834 79,543 178,799 2019 £ (9,861) |
|---|---|---|
(Deficit)/surplus on disposal of fixed assets
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
8. STAFF COSTS
There were no employees during the year. ( 2019: NIL)
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Charitable activities Charitable donations and associated costs Net Foreign exchange loss/gain Finance costs Accountancy, professional and legal fees (Gain)/Loss on disposal of investment Total |
Unrestricted fund £ 374,500 686 375,186 498,509 23,520 530 3,359 (9,861) 516,057 |
|---|---|
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
| 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Net gains on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 10. FIXED ASSET INVESTMENTS MARKET VALUE At 1st January 2020 Additions Disposals Unrealized gain /(loss) At 31st December 2020 NET BOOK VALUE At 31st December 2020 At 31st December 2019 The fixed asset investment are listed Ordinary Securities . The market value of the investment as at 31/12/20 (2019 : £1,703,859). 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 £ Other debtors 4,200 |
Unrestricted fund £ 38,533 (102,338) 1,884,510 1,782,172 Listed investments £ 1,703,859 591,353 (812,552) 229,087 1,711,747 1,711,747 1,703,859 s £1,711,747 2019 £ 5,000 |
|
|---|---|---|
| wa |
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other creditors Accruals and deferred income MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 340,835 TOTAL FUNDS 340,835 Comparatives for movement in funds Unrestricted funds General fund TOTAL FUNDS |
At 1/1/20 £ 1,782,172 1,782,172 Resources expended £ (672,543) (672,543) At 1/1/19 £ 1,884,510 1,884,510 |
2020 £ 2,872 3,000 5,872 Net movement in funds £ (11,891) (11,891) Gains and losses £ 319,817 319,817 Net movement in funds £ (102,338) (102,338) |
2019 £ 2,872 3,000 5,872 At 31/12/20 £ 1,770,281 |
|
|---|---|---|---|---|
| 1,770,281 | ||||
| Movement in funds £ (11,891) (11,891) At 31/12/19 £ 1,782,172 |
||||
| 1,782,172 |
13. MOVEMENT IN FUNDS
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
13. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 375,186 375,186 |
Resources expended £ (516,057) (516,057) |
Gains and Movement losses in funds £ £ 38,533 (102,338) 38,533 (102,338) |
Gains and Movement losses in funds £ £ 38,533 (102,338) 38,533 (102,338) |
|---|---|---|---|---|
| (102,338) |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1/1/19 £ 1,884,510 1,884,510 |
Net movement in funds £ (114,229) (114,229) |
At 31/12/20 £ 1,770,281 |
|---|---|---|---|
| 1,770,281 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming Resources resources expended £ £ 716,021 (1,188,600 ) 716,021 (1,188,600 ) |
Gains and Movement losses in funds £ £ 358,350 (114,229) 358,350 (114,229) |
Gains and Movement losses in funds £ £ 358,350 (114,229) 358,350 (114,229) |
|---|---|---|---|
| (114,229) |
14. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st December 2020.
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HASDEI AVOT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
15. TRANSACTIONS WITH DIRECTORS AND TRUSTEES
Other creditors totalling £2,872 (2019 : £2,872) is a loan given by Gems Advisors Limited, a company in which Mr Abadi is a director, to Hasdei Avot Charitable Trust and was still owed at the end of the year.
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