COMPANY REGISTRATION NUMBER: 6935713 CHARITY REGISTRATION NUMBER: 1130433
The Gateshead Cheder Ltd Company Limited by Guarantee Financial Statements
30 November 2021
HAFFNER HOFF LTD
Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
The Gateshead Cheder Ltd
Company Limited by Guarantee
Financial Statements
Year ended 30 November 2021
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 7 |
| Statement of financial activities (including income and | |
| expenditure account) | 13 |
| Statement of financial position | 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 |
The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 30 November 2021
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 30 November 2021.
Reference and administrative details
Registered charity name The Gateshead Cheder Ltd Charity registration number 1130433 Company registration number 6935713 Principal office and registered Tynegate Precinct office Sunderland Road Gateshead Tyne & Wear NE8 3HY The trustees S Kohn P Abenson Auditor Haffner Hoff Ltd Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL Bankers Lloyds Bank plc 15 West Street Gateshead Tyne & Wear NE8 1DP
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 November 2021
Structure, governance and management
The Gateshead Cheder Ltd is constituted by Memorandum and Articles of Association and is a company limited by guarantee. It was incorporated on 16 June 2009 as a company and the company number is 6935713. It was registered as a charity on 30 June 2009 with a charity number 1130433.
Organisation
The trustees are responsible for the control and direction of the school together with the governors. The day to day running of the school is carried out by the trustees in consultation with the senior management team.
Recruitment of trustees
Recruitment and appointment of new trustees is in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.
There is no chief executive officer. The day-to-day affairs are undertaken by Mr C Karniol on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.
Training and induction of trustees is applied as applicable.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The risks faced by the trust are principally operational risks from ineffective running of the school. These risks are managed by the trustees ensuring the right staff are utilised and the right policies are implemented.
In terms of financial risk, this is dependent on the efficient collection of voluntary contributions from parents and on charitable contributions from members of the local community. If external fund raising is not maximised this can have a negative impact on the school with regard to the recruitment of the most suitably qualified teachers as well as on extra-curricular activities. Acquisition of educational material would also be restricted.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all aspects of the school management.
Risk Management
The process of examining the risks to which the charity is exposed is ongoing and the trustees are planning to further develop systems to monitor and control these risks in order to lessen their potential impact on the Charity.
Public Benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity’s aims and objectives and in planning future activities.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 November 2021
Objectives and activities
Objects
The objects of the charity are (i) the advancement of orthodox Jewish religious education and education in general and (ii) the advancement of such other objects as are for the benefit of the public and are charitable according to English Law.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.
Grant making policy
The charity pays out grants in line with the objects as stated in the Memorandum and Articles of Association.
Principal Activities of the year
The charity is funded by voluntary contributions, grants and donations. The charity provides education to children in the Gateshead area.
Objectives for the year
This year, the focus has been on the continued achievement of academic performance.
The trustees consider they have met the public benefit test and outline these achievements below.
The trustees consider the shorter term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 November 2021
Achievements and performance
During the year the charity received £79,079 in voluntary contributions, £786,948 in childcare fees, £4,781 in transportation fees, £17,325 in services rendered and £186,538 in donations.
The charity paid out £1,399,919 for teaching, direct educational expenditure and support costs. The charity was successful in dispensing education to children of various ages during the year. The charity operated a school called a Cheder that educated 293 boys aged 3 to 11 in the Gateshead area.
The school was subject to a material change OFSTED inspection during the year. The trustees report that the school was informed it did not meet the independent schools standard relevant to the material change. The material change has already been implemented and the school has submitted to the DFE all the necessary requirements and is waiting a reply.
The charity also had grants receivable from CST and Gateshead MBC and others amounting to £346,719 during the year.
The charity also received £25,407 from the JRS scheme relating to covid support.
Grants totalling £42,125 were paid out to needy individuals and various other educational establishments during the year. These grants were made in line with the stated objects of the charity.
There were no investments made during the year.
Related party transactions are as disclosed in the notes to the accounts.
Fundraising costs incurred during the year are as detailed in the notes to the accounts as applicable.
The building is not owned by the charity but the school has all rights and obligations on the building as well as all risks and rewards associated with it. The trustees have chosen to show the property so that users of the accounts gain a better understanding of what is actually happening in the charity.
There was an overall net income and net movement in funds for the year amounting to £28,553 representing net expenditure on the restricted fund of £26,228 as well as £54,781 net income on the unrestricted fund.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 November 2021
Financial review
The trustees feel that the activity reflects the profile and standing within the local community. The impact for future year's expenditure is self-evident and the trustees would like to record their appreciation for all the financial and other support received from benefactors during the course of the year.
Reserves policy
The Unrestricted Fund represents the unrestricted funds arising from past operating results. The free reserves represented by the current assets are in a healthy state.
It is the policy of the charity to maintain unrestricted funds at a level sufficient to cover unforeseen and major expenditure and shortfalls in income. The trustees remain confident in their ability to raise the necessary funds, thereby adhering to the stated policy and to the maintenance of a balanced budget. Additionally, most of the current liabilities and all of the long-term liabilities are interest free loans from well-wishers who want the school to succeed and would not call them in to the detriment of the charity.
The free reserves, represented by the net current assets of the charity stand at £79,324. The trustees are aware of the position of net liabilities and are confident that this will not affect the going concern of the charity.
Coronavirus
The charity was not materially affected this year by coronavirus.
Plans for future periods
The trustees plan to continue raising funds for projects in line with the memorandum and articles of association and to pursue those educational objectives and projects by operating and maintaining the school with all the resources available to the charity.
Trustees' responsibilities statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 November 2021
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
The trustees' annual report and the strategic report were approved on 30 August 2022 and signed on behalf of the board of trustees by:
P Abenson Trustee
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd
Year ended 30 November 2021
Opinion
We have audited the financial statements of The Gateshead Cheder Ltd (the ‘Charity') for the year ended 30 November 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 30 November 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006 and 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 auditor's 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.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd (continued)
Year ended 30 November 2021
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd (continued)
Year ended 30 November 2021
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd (continued)
Year ended 30 November 2021
Auditor's responsibilities for the audit of the financial statements
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 an auditor’s report 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to (a) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; (b) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; (c) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; (d) the matters identified as to how and where fraud might occur in the financial statements and any potential indicators of fraud.
In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code, UK tax legislation and UK Charity Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
As a result of performing the above, we identified no key audit matters relating to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd (continued)
Year ended 30 November 2021
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
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 Auditors.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Independent Auditor's Report to the Members of The Gateshead Cheder Ltd (continued)
Year ended 30 November 2021
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Howard Schwalbe ACA (Senior Statutory Auditor)
2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
For and on behalf of Haffner Hoff Ltd Accountants & statutory auditor
30 August 2022
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 30 November 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 212,176 | 346,719 | 558,895 | 667,547 |
| Investment income | 6 | 1 | – | 1 | 7 |
| Other income | 7 | 888,133 | – | 888,133 | 804,417 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 1,100,310 | 346,719 | 1,447,029 | 1,471,971 | |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| Expenditure | |||||
| Expenditure on raising funds: | |||||
| Costs of other trading activities | 8 | 18,557 | – | 18,557 | 54,527 |
| Expenditure on charitable activities | 9,10 | 1,026,972 | 372,947 | 1,399,919 | 1,377,556 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 1,045,529 | 372,947 | 1,418,476 | 1,432,083 | |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Net income and net movement in funds | 54,781 | (26,228) | 28,553 | 39,888 | |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 1,272,681 | 26,228 | 1,298,909 | 1,259,022 | |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 1,327,462 | – | 1,327,462 | 1,298,909 | |
| ========================================= | ================================ | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 16 to 26 form part of these financial statements.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Statement of Financial Position
30 November 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 17 | 1,507,638 | 1,492,690 | |
| Current assets | ||||
| Debtors | 18 | 182,123 | 73,354 | |
| Cash at bank and in hand | 58,630 | 94,486 | ||
| -------------------------------- | -------------------------------- | |||
| 240,753 | 167,840 | |||
| Creditors: amounts falling due within one year | 19 | 161,429 | 135,120 | |
| -------------------------------- | -------------------------------- | |||
| Net current assets | 79,324 | 32,720 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total assets less current liabilities | 1,586,962 | 1,525,410 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 20 | 259,500 | 226,500 | |
| ----------------------------------------- | ----------------------------------------- | |||
| Net assets | 1,327,462 | 1,298,910 | ||
| ========================================= | ========================================= | |||
| Funds of the charity | ||||
| Restricted funds | – | 44,158 | ||
| Unrestricted funds: | ||||
| Revaluation reserve | 1,060,000 | 1,060,000 | ||
| Other unrestricted income funds | 267,462 | 194,751 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total unrestricted funds | 1,327,462 | 1,254,751 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total charity funds | 22 | 1,327,462 | 1,298,909 | |
| ========================================= | ========================================= |
These financial statements were approved by the board of trustees and authorised for issue on 30 August 2022, and are signed on behalf of the board by:
P Abenson Trustee
The notes on pages 16 to 26 form part of these financial statements.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Statement of Cash Flows
Year ended 30 November 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 28,553 | 39,888 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 11,030 | 10,883 |
| Other interest receivable and similar income | (1) | (7) |
| Accrued expenses | 12,213 | 5,017 |
| Changes in: | ||
| Trade and other debtors | (108,769) | 101,370 |
| Trade and other creditors | (77,904) | (95,539) |
| -------------------------------- | -------------------------------- | |
| Cash generated from operations | (134,878) | 61,612 |
| Interest received | 1 | 7 |
| -------------------------------- | ---------------------------- | |
| Net cash (used in)/from operating activities | (134,877) | 61,619 |
| ================================ | ============================ | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (25,978) | (2,118) |
| -------------------------------- | ---------------------------- | |
| Net cash used in investing activities | (25,978) | (2,118) |
| ================================ | ============================ | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 125,000 | – |
| -------------------------------- | ---------------------------- | |
| Net cash from financing activities | 125,000 | – |
| ================================ | ============================ | |
| Net (decrease)/increase in cash and cash equivalents | (35,855) | 59,501 |
| Cash and cash equivalents at beginning of year | 94,486 | 34,985 |
| ---------------------------- | ---------------------------- | |
| Cash and cash equivalents at end of year | 58,631 | 94,486 |
| ============================ | ============================ |
The notes on pages 16 to 26 form part of these financial statements.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 30 November 2021
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Tynegate Precinct, Sunderland Road, Gateshead, Tyne & Wear, NE8 3HY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue because the loan creditors have confirmed that they will not call in their interest free loans to the detriment of the cash flow of the charity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.
Fund accounting
Unrestricted funds are those available for use for general purposes at the discretion of the charity trustees and governors in furtherance of the charity's objects.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
3. Accounting policies (continued)
Tangible assets
The building is not owned by the charity but the school has all the rights and obligations on the building, as well as all the risks and rewards associated with it.
The trustees have chosen to show the property in the accounts so that users of the accounts gain a better understanding as to what is happening in the charity.
The tangible assets are adjusted to reflect the fair value of the property.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings - 15% straight line Equipment - 15% straight line
The trustees have decided not to depreciate the freehold property on the basis that the current carrying value represents the open market value of the property.
This is not in keeping with the Companies Act requirements but is done on grounds of true and fair.
This is primarily due to the building being maintained to a high standard and is in good order.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
- 18 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
3. Accounting policies (continued)
Financial instruments (continued)
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
- 19 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
4. Limited by guarantee
The Gateshead Cheder Ltd is a registered charity and a company limited by guarantee and does not have a share capital. In the event of the charity being wound up, members are required to contribute an amount not exceeding £10.
5. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 186,769 | – | 186,769 |
| Grants | |||
| Grants received from public authority | – | 274,857 | 274,857 |
| C S T grants receivable | – | 71,862 | 71,862 |
| J R S Grants | 25,407 | – | 25,407 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 212,176 | 346,719 | 558,895 | |
| ================================ | ================================ | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 205,460 | – | 205,460 |
| Grants | |||
| Grants received from public authority | – | 287,330 | 287,330 |
| C S T grants receivable | – | 60,793 | 60,793 |
| J R S Grants | 113,964 | – | 113,964 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 319,424 | 348,123 | 667,547 | |
| ================================ | ================================ | ================================ |
6. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Bank interest receivable | 1 | 1 | 7 | 7 |
| ============== | ============== | ============== | ============== |
- 20 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
7. Other income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Voluntary contributions | 79,079 | 79,079 | 52,020 | 52,020 |
| Childcare fees | 786,948 | 786,948 | 734,058 | 734,058 |
| Transport fees | 4,781 | 4,781 | 16,879 | 16,879 |
| Services Rendered | 17,325 | 17,325 | 1,460 | 1,460 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 888,133 | 888,133 | 804,417 | 804,417 | |
| ================================ | ================================ | ================================ | ================================ |
8. Costs of other trading activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Advertising, promotions & appeals | 18,557 | 18,557 | 54,527 | 54,527 |
| ============================ | ============================ | ============================ | ============================ |
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Teaching & direct educational expenditure | 978,486 | 372,947 | 1,351,433 |
| Support costs | 48,486 | – | 48,486 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | |
| 1,026,972 | 372,947 | 1,399,919 | |
| ========================================= | ================================ | ========================================= | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Teaching & direct educational expenditure | 936,160 | 330,193 | 1,266,353 |
| Support costs | 111,204 | – | 111,203 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | |
| 1,047,364 | 330,193 | 1,377,556 | |
| ========================================= | ================================ | ========================================= |
10. Expenditure on charitable activities by activity type
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Grant funding |
Support | Total funds | Total fund | |
| directly | of activities |
costs | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Teaching & direct | |||||
| educational expenditure | 1,309,308 | 42,125 |
39,247 | 1,390,680 | 1,368,697 |
| Governance costs | – | – |
9,239 | 9,239 | 8,859 |
| ----------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------------------- | ----------------------------------------- | |
| 1,309,308 | 42,125 |
48,486 | 1,399,919 | 1,377,556 | |
| ========================================= | ============================ | ============================ | ========================================= | ========================================= |
- 21 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
11. Analysis of support costs
| Analysis of | ||||
|---|---|---|---|---|
| support costs | Total 2021 | Total 2020 | ||
| £ | £ | £ | ||
| Staff costs | 27,766 | 27,766 | 38,847 | |
| General office | 11,481 | 11,481 | 63,497 | |
| Governance costs | 9,239 | 9,239 | 8,859 | |
| ---------------------------- | ---------------------------- | -------------------------------- | ||
| 48,486 | 48,486 | 111,203 | ||
| ============================ | ============================ | ================================ | ||
| 12. | Analysis of grants | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Grants to institutions | ||||
| Gateshead Kollel | 25,000 | 30,000 | ||
| Other educational grants | 17,125 | 12,200 | ||
| ---------------------------- | ---------------------------- | |||
| 42,125 | 42,200 | |||
| ---------------------------- | ---------------------------- | |||
| Total grants | 42,125 | 42,200 | ||
| ============================ | ============================ | |||
| 13. | Net income | |||
| Net income is stated after charging/(crediting): | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 11,030 | 10,883 | ||
| ============================ | ============================ | |||
| 14. | Auditors’ remuneration | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Fees payable for the audit of the financial statements | 6,600 | 6,000 | ||
| ======================= | ======================= | |||
| Fees payable to the charity's auditor and its associates for other services: | ||||
| Other non-audit services | 2,640 | 2,856 | ||
| ======================= | ======================= | |||
| 15. | Staff costs |
- 22 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
15. Staff costs (continued)
The average head count of employees during the year was 52 (2020: 53). The average number of full-time equivalent employees during the year is analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Number of administrative staff | 3 | 3 |
| Number of teaching staff (full & part time) | 55 | 56 |
| -------------- | -------------- | |
| 58 | 59 | |
| ============== | ============== |
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
16. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
17. Tangible fixed assets
| Land and | Fixtures and | |||
|---|---|---|---|---|
| buildings | fittings | Equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 December 2020 | 1,469,864 | 60,460 | 12,095 | 1,542,419 |
| Additions | 25,000 | – | 978 | 25,978 |
| ----------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------------------- | |
| At 30 November 2021 | 1,494,864 | 60,460 | 13,073 | 1,568,397 |
| ========================================= | ============================ | ============================ | ========================================= | |
| Depreciation | ||||
| At 1 December 2020 | – | 40,605 | 9,124 | 49,729 |
| Charge for the year | – | 9,069 | 1,961 | 11,030 |
| ----------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------------------- | |
| At 30 November 2021 | – | 49,674 | 11,085 | 60,759 |
| ========================================= | ============================ | ============================ | ========================================= | |
| Carrying amount | ||||
| At 30 November 2021 | 1,494,864 | 10,786 | 1,988 | 1,507,638 |
| ========================================= | ============================ | ============================ | ========================================= | |
| At 30 November 2020 | 1,469,864 | 19,855 | 2,971 | 1,492,690 |
| ========================================= | ============================ | ============================ | ========================================= |
The building is not owned by the charity but the school has all the rights and obligations on the building, as well as all the risks and rewards associated with it.
The trustees have chosen to show the property in the accounts so that users of the accounts gain a better understanding as to what is happening in the charity.
The tangible assets are adjusted to reflect the fair value of the property.
- 23 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
18. Debtors
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade debtors | 134,301 | 39,499 |
| Loans | 16,219 | – |
| Other debtors | 31,603 | 33,855 |
| -------------------------------- | ---------------------------- | |
| 182,123 | 73,354 | |
| ================================ | ============================ | |
| Creditors: amounts falling due within one year | ||
| 2021 | 2020 | |
| £ | £ | |
| Trade creditors | 42,985 | 14,342 |
| Accruals and deferred income | 33,030 | 20,817 |
| Other creditors | 85,414 | 99,961 |
| -------------------------------- | -------------------------------- | |
| 161,429 | 135,120 | |
| ================================ | ================================ | |
| Creditors: amounts falling due after more than one year | ||
| 2021 | 2020 | |
| £ | £ | |
| Bank loans and overdrafts | 125,000 | – |
| Other creditors | 134,500 | 226,500 |
| -------------------------------- | -------------------------------- | |
| 259,500 | 226,500 | |
| ================================ | ================================ |
19. Creditors: amounts falling due within one year
20. Creditors: amounts falling due after more than one year
Bank loans and overdrafts are secured on the freehold land and buildings of the charity.
21. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,077 (2020: £2,240).
- 24 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
22. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||
|---|---|---|---|---|
| At 01 | At 30 | |||
| Dec 2020 | Income | Expenditure | Nov 2021 | |
| £ | £ | £ | £ | |
| General funds | 212,681 | 1,100,310 | (1,045,529) | 267,462 |
| Revaluation reserve | 1,060,000 | – | – | 1,060,000 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | |
| 1,272,681 | 1,100,310 | (1,045,529) | 1,327,462 | |
| ========================================= | ========================================= | ========================================= | ========================================= | |
| At 01 | At 30 | |||
| Dec 2019 | Income | Expenditure | Nov 2020 | |
| £ | £ | £ | £ | |
| General funds | 172,794 | 1,123,848 | (1,101,891) | 194,751 |
| Revaluation reserve | 1,060,000 | – | – | 1,060,000 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | |
| 1,232,794 | 1,123,848 | (1,101,891) | 1,254,751 | |
| ========================================= | ========================================= | ========================================= | ========================================= | |
| Restricted funds | ||||
| At 01 | At 30 | |||
| Dec 2020 | Income | Expenditure | Nov 2021 | |
| £ | £ | £ | £ | |
| Restricted fund - grants receivable | 26,228 | 346,719 | (372,947) | – |
| ============================ | ================================ | ================================ | ============== | |
| At 01 | At 30 | |||
| Dec 2019 | Income | Expenditure | Nov 2020 | |
| £ | £ | £ | £ | |
| Restricted fund - grants receivable | 26,228 | 348,123 | (330,193) | 44,158 |
| ============================ | ================================ | ================================ | ============================ |
- 25 -
The Gateshead Cheder Ltd
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 November 2021
23. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Tangible fixed assets | 1,507,638 | – | 1,507,638 |
| Current assets | 240,753 | – | 240,753 |
| Creditors less than 1 year | (161,429) | – | (161,429) |
| Creditors greater than 1 year | (259,500) | – | (259,500) |
| ----------------------------------------- | -------------- | ----------------------------------------- | |
| Net assets | 1,327,462 | – | 1,327,462 |
| ========================================= | ============== | ========================================= | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets | 1,492,690 | – | 1,492,690 |
| Current assets | 89,831 | 44,158 | 133,989 |
| Creditors less than 1 year | (101,269) | – | (101,269) |
| Creditors greater than 1 year | (226,500) | – | (226,500) |
| ----------------------------------------- | ---------------------------- | ----------------------------------------- | |
| Net assets | 1,254,752 | 44,158 | 1,298,910 |
| ========================================= | ============================ | ========================================= | |
| Analysis of changes in net debt | |||
| At | At | ||
| 1 Dec 2020 | Cash flows | 30 Nov 2021 | |
| £ | £ | £ | |
| Cash at bank and in hand | 94,486 | (35,856) | 58,630 |
| Debt due after one year | – | (125,000) | (125,000) |
| ---------------------------- | -------------------------------- | -------------------------------- | |
| 94,486 | (160,856) | (66,370) |
|
| ============================ | ================================ | ================================ |
24. Analysis of changes in net debt
25. Related parties
Mr P Abenson, trustee of The Gateshead Cheder Ltd, lent various sums in a prior period to The Gateshead Cheder Ltd on an interest free and long-term basis. The balance at the year-end amounted to £15,600.
26. Taxation
The Gateshead Cheder Ltd is a registered charity and therefore is not liable to income tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
- 26 -