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2021-12-31-accounts

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 2021

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 2021

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Statement of Financial Position 6 to 7
Statement of Cash Flows 8
Notes to the Statement of Cash Flows 9
Notes to the Financial Statements 10 to 16

HASDEI AVOT CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

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 2021. 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.

Page 1

HASDEI AVOT CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

FINANCIAL REVIEW

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 surplus for the year of £71,325 ( 2020: £11,891 deficit).The reserves fund as at 31st December 2021 was £1,841,606 ( 2020 : £1,770,281).

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

Page 2

HASDEI AVOT CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS 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

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 22nd September 2022 and signed on its behalf by:

M G Abadi - Trustee

Page 3

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 2021.

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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 2022

Page 4

HASDEI AVOT CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2021

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		 2021
Unrestricted
fund
£
455,750
16,124
471,874
527,946
(9,257)
419
5,513
-
524,621
124,072
71,325
1,770,281
1,841,606		 2020
Total
funds
£
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

The notes form part of these financial statements

Page 5

HASDEI AVOT CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2021

Notes
FIXED ASSETS
Investments
9
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
12
Unrestricted funds
TOTAL FUNDS		 2021
Unrestricted
fund
£
1,769,065
19,950
58,463
78,413
(5,872)
72,541
1,841,606
1,841,606
1,841,606
1,841,606		 2020
Total
funds
£
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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

Page 6

HASDEI AVOT CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION - continued 31ST DECEMBER 2021

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 22nd September 2022 and were signed on its behalf by:

M G Abadi - Trustee

The notes form part of these financial statements

Page 7

HASDEI AVOT CHARITABLE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2021

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		 2021
£
(236,480)
(236,480)
1
-
218,612
-
16,124
234,737
(1,743)
60,206
58,463		 2020
£
(488,658)
(488,658)
(591,353)
(79,543)
1,132,369
124
8,082
469,679
(18,979)
79,185
60,206

The notes form part of these financial statements

Page 8

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Gain on investments
Loss on disposal of fixed assets
Interest received
Dividends received
Unrealized gain
(Increase)/decrease in debtors
Net cash used in operations		 2021
£
71,325
(124,072)
-
-
(16,124)
(151,859)
(15,750)
(236,480)		 2020
£
(11,891)
(319,817)
79,543
(124)
(8,082)
(229,087)
800
(488,658)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/21
Cash flow
At
£
£
Net cash
Cash at bank
60,206
(1,743)
60,206
(1,743)
Total
60,206
(1,743)		 31/12/21
£
58,463
58,463
58,463

The notes form part of these financial statements

Page 9

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

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.

Page 10

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

2. ACCOUNTING POLICIES - continued

Financial instruments

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.

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 no disposal of the investment.

4. CHARITABLE ACTIVITIES COSTS

Charitable donations and associated
costs
Net Foreign exchange loss/gain
Finance costs
Accountancy, professional and legal
fees		 Direct
Costs
£
527,946
-
-
-
527,946		 Support
costs (see
note 5)
£
-
(9,257)
419
5,513
(3,325)		 Totals
£
527,946
(9,257)
419
5,513
524,621

Page 11

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

5. SUPPORT COSTS

Governance Governance
Finance costs Totals
£ £ £
Net Foreign exchange loss/gain (9,257) - (9,257)
Finance costs 419 - 419
Accountancy, professional and legal fees - 5,513 5,513
(8,838) 5,513 (3,325)
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2021 2020
£ £
Deficit on disposal of fixed assets - 79,543

6. NET INCOME/(EXPENDITURE)

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.

8. 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
Net gains on investments		 Unrestricted
fund
£
332,629
8,206
340,835
493,744
94,942
480
3,834
79,543
672,543
319,817

Page 12

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

8.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
9.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1st January 2021
Additions
Disposals
Unrealized gain /(loss)
At 31st December 2021
NET BOOK VALUE
At 31st December 2021
At 31st December 2020		 Unrestricted
fund
£
(11,891)
1,782,172
1,770,281
Listed
investments
£
1,711,747
(1)
(94,540)
151,859
1,769,065
1,769,065
1,711,747

The fixed asset investment are listed Ordinary Securities . The market value of the investment as at 31/12/21 was £1,769,065 (2020 : £1,711,747).

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020
£ £
Other debtors 19,950 4,200

Page 13

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other creditors
Accruals and deferred income
12.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as
Unrestricted funds
General fund
TOTAL FUNDS		 follows:
Incoming
resources
£
471,874
471,874		 At 1/1/21
£
1,770,281
1,770,281
Resources
expended
£
(524,621)
(524,621)		 2021
£
2,872
3,000
5,872
Net
movement
in funds
£
71,325
71,325
Gains and
losses
£
124,072
124,072		 2020
£
2,872
3,000
5,872
At
31/12/21
£
1,841,606		 2020
£
2,872
3,000
5,872
At
31/12/21
£
1,841,606		 2020
£
2,872
3,000
5,872
1,841,606
Movement
in funds
£
71,325
71,325
71,325

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS		 At 1/1/20
£
1,782,172
1,782,172		 Net
movement
in funds
£
(11,891)
(11,891)		 At
31/12/20
£
1,770,281
1,770,281

Page 14

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

12. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
340,835
340,835		 Resources
expended
£
(672,543)
(672,543)		 Gains and
Movement
losses
in funds
£
£
319,817
(11,891)
319,817
(11,891)		 Gains and
Movement
losses
in funds
£
£
319,817
(11,891)
319,817
(11,891)
(11,891)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1/1/20
£
1,782,172
1,782,172		 Net
movement
in funds
£
59,434
59,434		 At
31/12/21
£
1,841,606
1,841,606

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
£
£
812,709
(1,197,164 )
812,709
(1,197,164 )		 Gains and
Movement
losses
in funds
£
£
443,889
59,434
443,889
59,434		 Gains and
Movement
losses
in funds
£
£
443,889
59,434
443,889
59,434
59,434

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st December 2021.

Page 15

HASDEI AVOT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

14. TRANSACTIONS WITH DIRECTORS AND TRUSTEES

Other creditors totalling £2,872 (2020 : £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.

Page 16