**REGISTERED CHARITY NUMBER: 1126075** 

## **REPORT OF THE TRUSTEES AND** 

## **FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 30 JUNE 2021** 

## **FOR** 

## **FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

Raffingers LLP 19-20 Bourne Court 

Southend Road Woodford Green Essex IG8 8HD 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 30 June 2021** 

|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|4|
|**Report of the Independent Auditors**|5|to|8|
|**Statement of Financial Activities**||9||
|**Balance Sheet**||10||
|**Cash Flow Statement**||11||
|**Notes to the Cash Flow Statement**||12||
|**Notes to the Financial Statements**|13|to|17|





**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2021** 

The trustees present their report with the financial statements of the charity for the year ended 30 June 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 primary objective of the charity is to support the charitable activities of the Mercaz Hatorah Belz Macnivka institutions in Israel. Other charitable activities include the relief of poverty, hardship and distress within the United Kingdom and abroad, the advancement of Jewish education within the United Kingdom and abroad, and the advancement of the Orthodox Jewish religion within the United Kingdom and abroad. 

The activities of the charity are to receive charitable donations to be applied towards the charity's stated objectives. 

In furtherance of these objectives the charity: 

- Provides bursaries to full time and part time students of the wider Mercaz Hatorah Belz Macnivka network of institutions; 

- Provides grants to qualifying institutions who are involved in the furtherance of the Jewish Faith and in advancing Jewish Education; 

- Provides grants and bursaries to qualifying needy families and individuals. 

## **Public benefit** 

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit, and 'The Advancement of Religion for the Public Benefit' in particular, when reviewing the aim and objectives and in planning the charity's future activities.The aims of the charitable company for the public benefit are detailed in the 'Objectives and Activities' section of this report and the main activities undertaken in order to carry out the charitable company's aims for the public benefit are outlined under 'Achievements and Performance' below. 

## **Grantmaking** 

The charity principally supports the institutions of Belz Macnivka in the United Kingdom, Israel and around the world. The trustees are in regular contact with senior members of the institutions around the world who report on the activities of the institutions and on  funding requirements. 

Donations received are generally designated for specific causes within the Belz Macnivka network of institutions, however the trustees consider applications from the general public and seek to make donations which meet the charity's objectives and satisfy the principals set out within the Trust Deed. All applications are carefully considered and assistance provided according to circumstances and funds then available. 

Page 1 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2021** 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Charitable activities** 

During the year the charity received charitable donations in excess of £7.7m, all of which have been applied for charitable purposes. Funds continue to be accumulated in the short term to fund the construction and development of premises for use as a synagogue and community centre in Israel by the Belz Macnivka movement. 

The charity is currently assisting with funding the purchase and construction of a new headquarters in Israel. Currently the costs of acquiring the land and developing the site have exceeded £27m. The total cost for this project is anticipated to be £35m. The expansion is necessary due to the convergence of followers from all over the world participating in the Jewish Holidays. As many as 500 - 1,000 followers spend the Jewish Festivals with the Rebbi. The trustees are pleased to report that as a result of the generosity of its supporters the lower two floors of the headquarters have been brought into use and that work is progressing steadily on the upper floors. 

The Rabbinical leadership of the Belz institutions in Israel support and maintain a large network of educational, religious and communal facilities. Discretionary grants are also provided to needy families who face financial hardship. In addition, the Rebbi has an open door policy and he sees hundreds of people weekly who come to seek his counsel and his blessing. He holds several weekly gatherings, mainly on Saturdays which are attended by large crowds who draw inspiration from his teachings. In order to fund the activities of the institutions, regular collections are made from supporters worldwide. 

The Covid-19 pandemic, which continued during the year, caused illness and job losses amongst many families in the United Kingdom and abroad. The charity was able to help alleviate some of the financial burden by providing financial assistance to those that were effected. 

The trustees are pleased to report that in the year under review, grants in excess of £7.6m were distributed to institutions and individuals in accordance with its grant making policy. 

## **FINANCIAL REVIEW** 

## **Reserves policy** 

The trustees have established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on activities and receiving resources through voluntary donations. The trustees consider that the ideal level of reserves as at 30 June 2021 would be about one to two month's expenditure. However, the charity is operated as a grant giving charity, and the trustees' policy is to seek to distribute the bulk of the income arising in each financial year as it becomes available. 

Restricted reserves at the year end were £233,897 (2020: 136,395). 

Whilst the charity does not have any financial commitments, the trustees are actively pursuing sources of funding in order to ensure that there are sufficient reserves to provide financial stability and flexibility. 

## **Financial results** 

The financial results for the year to 30 June 2021 are shown in the attached financial statements. 

Total income for the year decreased from £9,683,832 to £7,762,028. Total expenditure decreased from £9,723,152 to £7,664,526 in comparison with the previous period. There was a net increase in funds of £97,502 with total funds carried forward of £233,897 (2020: £136,395). 

## **FUTURE PLANS** 

Friends of Mercaz Hatorah Belz Macnivka will continue to support the charitable institutions within the wider network of the Belz Macnivka movement as well as other charitable causes which are in line with its Objects. 

Since the beginning of 2020, the Covid-19 pandemic has developed rapidly, with significant social and economic impact. We have taken a number of measures to monitor and ensure the health and safety of our employees, volunteers and end beneficiaries. At this stage the impact on our ability to continue with our charitable activities is not significant and we have adapted our activities to comply with government's policies and guidance. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. 

Page 2 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2021** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees** 

Trustees may be appointed by the existing trustees at any time, either to fill a casual vacancy or as an addition to the existing trustees. Any trustees so appointed will hold office only until the next Annual General Meeting and will then be eligible for re-election. 

No trustee had any beneficial interest in any contract with the charitable entity during the year. 

Potential trustees are invited to informally attend trustee meetings prior to appointment and a comprehensive induction programme is available. Additionally individual trustees may undertake external training in a particular area of their role on the Governing Body. 

## **Organisational structure** 

The board of trustees administers the charity. The board meets quarterly. 

## **Induction and training of new trustees** 

The charitable entity strives to ensure equal opportunities and diversity in the employment of staff and trustee appointments. Selection criteria and procedures are regularly reviewed to ensure that individuals are selected, promoted and treated on the basis of their relevant merits and abilities. 

## **Risk management** 

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

## **Fundraising** 

The charity has a good reputation within the local community and has a large pool of regular donors who wish to have a part in the charitable activities of the charity. Existing donors often recommend and encourage other philanthropists to pledge their support to the success of the charity. 

The charity is committed to the principals set out by the Fundraising Regulator in its Code of Fundraising Practice. When donors are approached, this is done with sensitivity and respect and with regard to their circumstances. 

The trustees are pleased to report that no complaints were received in the past twelve months in relation to its fundraising activities. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 

1126075 

## **Principal address** 

83-95 Bethune Road London N16 5ED 

## **Trustees** 

Mrs G Krautwirt E Y Brander M Lieber 

## **Auditors** 

Raffingers LLP 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

Page 3 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2021** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 26 April 2022 and signed on its behalf by: 

Mrs G Krautwirt - Trustee 

Page 4 



**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **Opinion** 

We have audited the financial statements of Friends of Mercaz Hatorah Belz Macnivka (the 'charity') for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 30 June 2021 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

Page 5 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to  fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

Page 6 



**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- we identified the laws and regulations applicable to the charity through discussions with management and from our commercial knowledge and experience of the sector Friends of Mercaz Hatorah Belz Macnivka belongs to; 

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the association, including the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019), Trustees Act, Bribery Act and data protection; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations, including the ones that ensure that the grants are used for intended purposes. 

To address the risk of fraud through management bias and override of controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 

- investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; 

- enquiring of management as to actual and potential litigation and claims. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may  involve deliberate concealment or collusion. 

Page 7 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Raffingers LLP 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

26 April 2022 

Raffingers LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 

Page 8 



## **FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **for the year ended 30 June 2021** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>**EXPENDITURE ON**<br>Raising funds<br>**Charitable activities**<br>3<br>Provision of education and relief of poverty<br>**Total**<br>**NET INCOME/(EXPENDITURE)**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Restricted<br>fund<br>£<br>7,762,028<br>2,150<br>7,662,376<br>7,664,526<br>97,502<br>136,395<br>233,897|2021<br>Total<br>funds<br>£<br>7,762,028<br>2,150<br>7,662,376<br>7,664,526<br>97,502<br>136,395<br>233,897|2020<br>Total<br>funds<br>£<br>9,683,832<br>3,977<br>9,719,175<br>9,723,152<br>(39,320)<br>175,715<br>136,395|
|---|---|---|---|---|



The notes form part of these financial statements 

Page 9 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **BALANCE SHEET** 

## **30 June 2021** 

|Unrestricted<br>funds<br>Notes<br>£<br>**CURRENT ASSETS**<br>Debtors<br>7<br>-<br>Cash at bank<br>-<br>-<br>**CREDITORS**<br>Amounts falling due within one year<br>8<br>-<br>**NET CURRENT ASSETS**<br>-<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>-<br>**NET ASSETS**<br>-<br>**FUNDS**<br>9<br>Restricted funds<br>**TOTAL FUNDS**|Restricted<br>fund<br>£<br>-<br>242,297<br>242,297<br>(8,400)<br>233,897<br>233,897<br>233,897|2021<br>Total<br>funds<br>£<br>-<br>242,297<br>242,297<br>(8,400)<br>233,897<br>233,897<br>233,897<br>233,897<br>233,897|2020<br>Total<br>funds<br>£<br>27,802<br>115,193<br>142,995<br>(6,600)<br>136,395<br>136,395<br>136,395<br>136,395<br>136,395|
|---|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 26 April 2022 and were signed on its behalf by: 

G Krautwirt - Trustee 

The notes form part of these financial statements 

Page 10 



## **FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **CASH FLOW STATEMENT** 

## **for the year ended 30 June 2021** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash provided by/(used in) operating activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|2021<br>£<br>127,104<br>127,104<br>127,104<br>115,193<br>242,297|2020<br>£<br>(120,121)<br>(120,121)<br>(120,121)<br>235,314<br>115,193|
|---|---|---|



The notes form part of these financial statements 

Page 11 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE CASH FLOW STATEMENT** 

## **for the year ended 30 June 2021** 

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

|**OPERATING ACTIVITIES**|||
|---|---|---|
|**Net income/(expenditure) for the reporting period (as per the**<br>**Statement of Financial Activities)**<br>**Adjustments for:**<br>Decrease/(increase) in debtors<br>Increase/(decrease) in creditors<br>**Net cash provided by/(used in) operations**|2021<br>£<br>97,502<br>27,802<br>1,800<br>127,104|2020<br>£<br>(39,320)<br>(27,801)<br>(53,000)|
|||(120,121)|



## 2. **ANALYSIS OF CHANGES IN NET FUNDS** 

||At 1.7.20|Cash flow|At 30.6.21|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|115,193|127,104|242,297|
||115,193|127,104|242,297|
|**Total**|115,193|127,104|242,297|



The notes form part of these financial statements 

Page 12 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention. 

## **Income** 

All income is 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 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 payable are included in the period when any relevant conditions are met by the receiving entity. Payment of later instalments of a grant usually requires satisfactory progress reports from the project. 

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. 

## **Going concern** 

The trustees, having made appropriate enquiries, consider that adequate resources exists for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the period ended 30 June 2021. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. 

The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet the liabilities as they fall due. In arriving at the conclusion, the trustees have considered the potential implications of the effects of Covid-19 on the charity. The figures for the period under consideration have not been impacted by Covid-19 and the trustees are confident that no adjustments are necessary to the carrying value of the assets held at the balance sheet date. 

## **Charitable activities** 

Charitable activities comprise of grants payable in furtherance of the charitable objectives of the charity. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. 

## **Governance costs** 

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to the strategic management of the charity. 

## **Allocation and apportionment of costs** 

Overhead and support costs relating to charitable activities have been apportioned based on usage. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

continued... 

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**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2021** 

## **1. ACCOUNTING POLICIES - continued** 

## **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. 

## **Cash at bank and in hand** 

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months form the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. 

## **Creditors and provision** 

Creditors and provision are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provision are recognised at the moment the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material. 

## **Debtors** 

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to be present value of the future cash receipt where such discounting is material. 

## **Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. 

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method. 

## **2. DONATIONS AND LEGACIES** 

|**DONATIONS AND LEGACIES**|||
|---|---|---|
||2021|2020|
||£|£|
|Donations|7,762,028|9,683,832|



## **3. CHARITABLE ACTIVITIES COSTS** 

|**CHARITABLE ACTIVITIES COSTS**||||
|---|---|---|---|
||Grant|||
||funding of|||
||activities|Support||
||(see note|costs (see||
||4)|note 5)|Totals|
||£|£|£|
|Provision of education and relief of||||
|poverty|7,649,113|13,263|7,662,376|



continued... 

Page 14 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2021** 

## **4. GRANTS PAYABLE** 

|**GRANTS PAYABLE**|||
|---|---|---|
|Provision of education and relief of poverty<br>The total grants paid to institutions during the year was as follows:|2021<br>£<br>7,649,113|2020<br>£<br>9,708,331|
|||2021|
||||
|Beis Hamedrash Kedushas Aharon||52,600|
|Beis Hamidrash Maran Shlita||52,050|
|Beis Havaad Jerusalem||122,931|
|Bezel Hachochmo||107,115|
|Building Fund Beitar Mikva||55,700|
|Chaburos Avreichim||59,861|
|Ezer Lesimchas Jerusalem Rabbi Reichman||52,900|
|Heichalei Hakodesh Zichron Ahron||316,597|
|Hogei Torah||83,176|
|Irgun Mechudodin||67,254|
|Kimche Depischa||144,307|
|Kollel Beis Yosef Meir||60,224|
|Kollel Chosen Yeshuos In Ashdod||57,270|
|Kollel Erev Beitar||57,910|
|Kollel in Yeshiva||61,824|
|Lishmor Chukotav||573,600|
|Maamodos||60,500|
|Mosdes Belz||133,974|
|Mosdos Beth Shemesh||54,300|
|Mosdos Yerushalayim||121,471|
|Orchot Chaim||59,674|
|Reshet Hakollelim||56,900|
|Talmud Torah Bnei Aharon Jerusalem||190,466|
|Talmud Torah Heichal Aharon Bnei Brak||54,950|
|TTBA London||56,815|
|Yeshiva Ketana Bene Berak||56,550|
|Yeshiva Lezeirim Belz Machnovke Elad||50,900|
||||
|Grants less than £50,000||3,181,053|
||||
|**Total**||**6,000,872**|
|The total grants paid to individuals during the year was as follows:|||
|<br>Individuals||1,648,241|



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continued... 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued** 

## **for the year ended 30 June 2021** 

## **5. SUPPORT COSTS** 

|Management<br>£<br>Raising donations and legacies<br>2,150<br>Provision of education and relief of poverty<br>-<br>2,150|Governance<br>Finance<br>costs<br>£<br>£<br>-<br>-<br>3,063<br>10,200<br>3,063<br>10,200|Totals<br>£<br>2,150<br>13,263|
|---|---|---|
|||15,413|



## **6. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no trustees' remuneration or other benefits for the year ended 30 June 2021 nor for the year ended 30 June 2020. 

## **Trustees' expenses** 

There were no  trustees' expenses paid for the year ended 30 June 2021 nor for the year ended 30 June 2020. 

## **7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Other debtors<br>**8.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Other creditors<br>**9.**<br>**MOVEMENT IN FUNDS**<br>At 1.7.20<br>£<br>**Restricted funds**<br>Restricted<br>136,395<br>**TOTAL FUNDS**<br>136,395<br>Net movement in funds, included in the above are as follows:<br>Incoming<br>resources<br>£<br>**Restricted funds**<br>Restricted<br>7,762,028<br>**TOTAL FUNDS**<br>7,762,028|2021<br>£<br>-<br>2021<br>£<br>8,400<br>Net<br>movement<br>in funds<br>£<br>97,502<br>97,502<br>Resources<br>expended<br>£<br>(7,664,526 )<br>(7,664,526 )|2020<br>£<br>27,802<br>2020<br>£<br>6,600<br>At<br>30.6.21<br>£<br>233,897<br>233,897<br>Movement<br>in funds<br>£<br>97,502|2020<br>£<br>27,802<br>2020<br>£<br>6,600<br>At<br>30.6.21<br>£<br>233,897|2020<br>£<br>27,802|2020<br>£<br>27,802|
|---|---|---|---|---|---|
||||||2020<br>£<br>6,600|
||||233,897|||
|||97,502||||



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**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2021** 

## **9. MOVEMENT IN FUNDS - continued** 

## **Comparatives for movement in funds** 

|At 1.7.19<br>£<br>**Restricted funds**<br>Restricted<br>175,715<br>**TOTAL FUNDS**<br>175,715<br>Comparative net movement in funds, included in the above are as follows:<br>Incoming<br>resources<br>£<br>**Restricted funds**<br>Restricted<br>9,683,832<br>**TOTAL FUNDS**<br>9,683,832|Net<br>movement<br>in funds<br>£<br>(39,320)<br>(39,320)<br>Resources<br>expended<br>£<br>(9,723,152 )<br>(9,723,152 )|At<br>30.6.20<br>£<br>136,395<br>136,395<br>Movement<br>in funds<br>£<br>(39,320)<br>(39,320)|
|---|---|---|



## **Restricted funds** 

Restricted funds comprise amounts raised from campaigns for specific projects or institutions. 

## **10. CONTINGENT LIABILITIES** 

There were no contingent liabilities at either the beginning or end of the financial year. 

## **11. CAPITAL COMMITMENTS** 

At 30 June 2021 and 30 June 2020 the charity had no capital commitments which had been contracted for but not provided in the financial statements. 

## **12. RELATED PARTY DISCLOSURES** 

There were no related party transactions for the year ended 30 June 2021. 

## **13. AUDITOR LIABILITY LIMITATION AGREEMENT** 

The charity has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the year ended 30 June 2021.The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements. 

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