**REGISTERED CHARITY NUMBER: 1126075** 

## **REPORT OF THE TRUSTEES AND** 

## **FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 30 JUNE 2022** 

## **FOR** 

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

Raffingers LLP, Statutory Auditor Chartered Certified Accountants 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 2022** 

|||**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|18|





**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2022** 

The trustees present their report with the financial statements of the charity for the year ended 30 June 2022. 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 2022** 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Charitable activities** 

During the year the charity received charitable donations in excess of £8.8m, 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 effects of the Covid-19 pandemic continued to affect 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 £8.5m 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 2022 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 £588,297 (2021: £233,897). 

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 2022 are shown in the attached financial statements. 

Total income for the year increased from £7,762,028 to £8,895,705. Total expenditure increased from £7,664,526 to £8,541,305 in comparison with the previous period. There was a net increase in funds of £354,400 with total funds carried forward of £588,297 (2021: £233,897). 

## **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. 

## **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 2022** 

## **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 

Page 3 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **REPORT OF THE TRUSTEES** 

## **for the year ended 30 June 2022** 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

## **Auditors** 

Raffingers LLP, Statutory Auditor Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

## **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 2023 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 2022 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 2022 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. 

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 company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector; 

- We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to 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); Employment Law; Data Protection Legislation; The Code of Fundraising Practice; and Safeguarding Regulations as they affect the direct charitable activities of the charity; 

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

We assessed the susceptibility of the company'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. 

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

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

- tested the appropriateness of journal entries; 

- tested authorisation of expenditure; 

- 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; and 

- reviewing correspondence with HMRC and relevant regulators. 

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 directors 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, Statutory Auditor Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

26 April 2023 

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 2022** 

|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**<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>8,895,705<br>-<br>8,541,305<br>8,541,305<br>354,400<br>233,897<br>588,297|2022<br>Total<br>funds<br>£<br>8,895,705<br>-<br>8,541,305<br>8,541,305<br>354,400<br>233,897<br>588,297|2021<br>Total<br>funds<br>£<br>7,762,028|
|---|---|---|---|---|
|||||2,150<br>7,662,376|
|||||7,664,526|
|||||97,502<br>136,395|
|||||233,897|



The notes form part of these financial statements 

Page 9 



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

## **BALANCE SHEET 30 June 2022** 

|Unrestricted<br>funds<br>Notes<br>£<br>**CURRENT ASSETS**<br>Cash at bank<br>-<br>**CREDITORS**<br>Amounts falling due within one year<br>7<br>-<br>**NET CURRENT ASSETS**<br>-<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>-<br>**NET ASSETS**<br>-<br>**FUNDS**<br>8<br>Restricted funds<br>**TOTAL FUNDS**|Restricted<br>fund<br>£<br>597,297<br>(9,000)<br>588,297<br>588,297<br>588,297|2022<br>Total<br>funds<br>£<br>597,297<br>(9,000)<br>588,297<br>588,297<br>588,297<br>588,297<br>588,297|2021<br>Total<br>funds<br>£<br>242,297<br>(8,400)<br>233,897<br>233,897<br>233,897<br>233,897<br>233,897|
|---|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 26 April 2023 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 2022** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash provided by operating activities<br>**Change in cash and cash equivalents in the**<br>**reporting period**<br>**Cash and cash equivalents at the beginning**<br>**of the reporting period**<br>**Cash and cash equivalents at the end of the**<br>**reporting period**|2022<br>£<br>355,000<br>355,000<br>355,000<br>242,297<br>597,297|2021<br>£<br>127,104|
|---|---|---|
|||127,104|
||||
|||127,104<br>115,193|
|||242,297|



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 2022** 

## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**Net income for the reporting period (as per the Statement of Financial**<br>**Activities)**<br>**Adjustments for:**<br>Decrease in debtors<br>Increase in creditors<br>**Net cash provided by operations**|2022<br>£<br>354,400<br>-<br>600<br>355,000|2021<br>£<br>97,502<br>27,802<br>1,800|
|---|---|---|
|||127,104|



## **2.** 

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

||At 1.7.21|Cash flow|At 30.6.22|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|242,297|355,000|597,297|
||242,297|355,000|597,297|
|**Total**|242,297|355,000|597,297|



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 2022** 

## **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 2022. 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. 

## **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... 

Page 13 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2022** 

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

## **Fund accounting** 

## **Unrestricted funds** 

General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. 

## **Restricted funds** 

Restricted funds are the accumulation of all donations given to the charity and grants distributed. These are subject  to restrictions of the donor. Under normal circumstances these restrictions will be honoured if they fall within the objects of the charity. 

## **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**|||
|---|---|---|
||2022|2021|
||£|£|
|Donations|8,895,705|7,762,028|



continued... 

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**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2022** 

## **3. CHARITABLE ACTIVITIES COSTS** 

|Provision of education and relief of<br>poverty<br>**4.**<br>**GRANTS PAYABLE**<br>Provision of education and relief of poverty<br>The total grants paid to institutions during the year was as follows:<br>Beis Aharon TT Activity Centre<br>Agudos Yeshivas Belz Machnovke<br>Beis Hamedrash Kedushas Aharon<br>Beis Havaad Jerusalem<br>Belz Machnivka<br>Bezel Hachochma<br>Building Fund Beitar Mikva<br>Building Fund Beth Shemesh<br>Chasdei Yitzchok Keren Ezra Lemishpachos<br>Huos<br>Ezer Leyoldos Beis Brocho Dechasidei Belz Machnovke<br>Heichalei Hakodesh<br>Hichel Ahron<br>Hogei Torah<br>Kimche Depische<br>Kollel Beis Yosef Meir<br>Kollel in Yeshiva<br>Lishmor Chukotav<br>Maamodos<br>Mechudodin<br>Mosdos Beth Shemesh<br>Mosdos Jerusalem<br>North London Welfare and Educational Foundation<br>Orchot Chasidim<br>Rechov Bruchim Synagogue<br>Reshet Hakollelim<br>Talmud Torah Bene Aharon<br>Talmud Torah Heichal Aharon Bene Berak<br>Yeshiva Gedola Bene Berak<br>Yeshiva Ketana Bene Berak<br>Yeshiva Ketane Elad<br>Grants less than £50,000|Grant<br>funding of<br>activities<br>(see note<br>4)<br>£<br>8,480,511|Support<br>costs (see<br>note 5)<br>£<br>60,794<br>2022<br>£<br>8,480,511|Totals<br>£<br>8,541,305<br>2021<br>£<br>7,649,113|
|---|---|---|---|
||||2022|
|||||
||||67,750|
||||54,250|
||||56,500|
||||51,046|
||||91,822|
||||135,600|
||||58,000|
||||54,250|
||||50,300|
||||79,265|
||||50,600|
||||521,314|
||||66,778|
||||121,700|
||||50,000|
||||53,181|
||||61,912|
||||139,581|
||||66,000|
||||99,565|
||||59,800|
||||60,681|
||||57,000|
||||59,003|
||||55,350|
||||60,200|
||||143,995|
||||53,850|
||||65,400|
||||57,700|
||||59,901|
|||||
||||4,376,750|
|||||



continued... 

Page 15 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2022** 

## **4. GRANTS PAYABLE - continued** 

|**Total**|**7,039,044**|
|---|---|
|The total grants paid to individuals during the year was as follows:||
|Individuals|1,441,467|



## **5. SUPPORT COSTS** 

|**SUPPORT COSTS**|||||
|---|---|---|---|---|
||||Governance||
||Management|Finance|costs|Totals|
||£|£|£|£|
|Provision of education and relief of poverty|48,000|3,194|9,600|60,794|



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

There were no trustees' remuneration or other benefits for the year ended 30 June 2022 nor for the year ended 30 June 2021. 

## **Trustees' expenses** 

There were no  trustees' expenses paid for the year ended 30 June 2022 nor for the year ended 30 June 2021. 

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

|Other creditors<br>**8.**<br>**MOVEMENT IN FUNDS**<br>**Restricted funds**<br>Restricted<br>**TOTAL FUNDS**<br>Net movement in funds, included in the above are as follows:<br>**Restricted funds**<br>Restricted<br>**TOTAL FUNDS**|At 1.7.21<br>£<br>233,897<br>233,897<br>Incoming<br>resources<br>£<br>8,895,705<br>8,895,705|2022<br>£<br>9,000<br>Net<br>movement<br>in funds<br>£<br>354,400<br>354,400<br>Resources<br>expended<br>£<br>(8,541,305)<br>(8,541,305)|2021<br>£<br>8,400<br>At<br>30.6.22<br>£<br>588,297<br>588,297<br>Movement<br>in funds<br>£<br>354,400<br>354,400|
|---|---|---|---|



continued... 

Page 16 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2022** 

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

## **Comparatives for movement in funds** 

|At 1.7.20<br>£<br>**Restricted funds**<br>Restricted<br>136,395<br>**TOTAL FUNDS**<br>136,395<br>Comparative 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|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)|At<br>30.6.21<br>£<br>233,897<br>233,897<br>Movement<br>in funds<br>£<br>97,502<br>97,502|
|---|---|---|



## **Restricted funds** 

Restricted funds comprises amounts received during the year from donors in response to fundraising campaigns run by branches under the umbrella of the Belz Macnivka institutions in Israel. All the donations were applied in accordance with the donors wishes. All the donations were applied to causes which were in accordance with the objects of the charity, as specified in the Trustees' Report and primarily to support he charitable activities of the Mercaz Hatorah Belz Macnivka Institutions in Israel. Due to the large number of individual funds it is not practical to report on each fund activity. The balance of restricted funds at the year end were distributed shortly after the year end. 

## **9. CONTINGENT LIABILITIES** 

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

continued... 

Page 17 



**FRIENDS OF MERCAZ HATORAH BELZ MACNIVKA** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 June 2022** 

## **10. CAPITAL COMMITMENTS** 

At 30 June 2022 and 30 June 2021 the charity had no capital commitments which had been contracted for but not provided in the financial statements. 

## **11. RELATED PARTY DISCLOSURES** 

There were no related party transactions for the year ended 30 June 2022. 

## **12. AUDITOR LIABILITY LIMITATION AGREEMENT** 

The charity has entered into a liability limitation agreement with Raffingers, the statutory auditor, on 8 June 2022, in respect of the statutory audit for the year ended 30 June 2022. 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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