REGISTERED CHARITY NUMBER: 1134732
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
FOR
MGS CHARITABLE TRUST
Melinek Fine LLP Chartered Accountants First Floor, Winston House 349 Regents Park Road London N3 1DH
MGS CHARITABLE TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Report of the Independent Auditors | 3 | to | 4 |
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Cash Flow Statement | 7 | ||
| Notes to the Cash Flow Statement | 8 | ||
| Notes to the Financial Statements | 9 | to | 13 |
MGS CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020
The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
The Charity's objectives are the advancement of Education and Religion of the Jewish Faith in accordance with Orthodox Practice, and in particular to maintain and provide support for Menorah Grammar School for Boys.
The main activities for the period were to obtain donations from individuals and institutions and utilise these funds to enable the Charity to pursue its objectives.
The Trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the Charity Commission when reviewing the charity's aims and objectives.
ACHIEVEMENT AND PERFORMANCE
The Charity is satisfied with its overall performance during the year and has continued to meet its objectives with regard to the level of donations made during the year to Menorah Grammar School and its operating company RABG Memorial Limited for the furtherance of religious and educational purposes.
During the year donations totalling £971,000 (2019: £902,829) were paid to Menorah Grammar School.
The financial results of the Charity's activities for the year ended 31 August 2020 are fully reflected in the attached Financial Statements together with the notes theron.
FINANCIAL REVIEW
Reserves policy
It is the policy of the Charity to maintain unrestricted funds, which are the free reserves of the Charity at a level which the Trustees think appropriate, after considering the future commitments of the Charity for the next year.
As at 31 August 2020 the charity has total funds of £334 ,240 (2019: £66,180), all of which are free reserves.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
MGS Charitable Trust is constituted and governed by its Trust Deed dated 13 February 2009 and is an unincorporated Charity registered with the charity commission (Registration No. 1134732).
The day to day affairs of the Charity are administered by the Board of Trustees. None of the Trustees have any beneficial interest in the Charity.
It is not currently the intention of the Trustees of the Charity to appoint new Trustees. Should the situation change in the future, the Trustees will apply suitable recruitment and training procedures.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1134732
Principal address
2 Cranbourne Gardens London NW11 0HP
Trustees
Mr Jonathan Hager Mr Daniel Jacob Goldberg (appointed 18.6.20) Mr Raphael Klopmann (appointed 18.6.20) Mr Allan Charles Becker (resigned 18.6.20) Mr Joseph Pearlman (resigned 18.6.20)
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MGS CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020
REFERENCE AND ADMINISTRATIVE DETAILS Auditors
Melinek Fine LLP Chartered Accountants First Floor, Winston House 349 Regents Park Road London N3 1DH
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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable 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 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 24 June 2021 and signed on its behalf by:
Mr Daniel Jacob Goldberg - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MGS CHARITABLE TRUST
Opinion
We have audited the financial statements of MGS Charitable Trust (the 'charity') for the year ended 31 August 2020 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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 31 August 2020 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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 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.
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:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MGS CHARITABLE TRUST
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.
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.
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.
Other matters
The comparative figures in the financial statements are unaudited as no audit was carried out in the prior year.
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.
Melinek Fine LLP Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 First Floor, Winston House 349 Regents Park Road London N3 1DH
24 June 2021
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MGS CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020
| 2020 | 2019 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 2 | 1,299,572 | 935,335 |
| Investment income | 3 | 41 | 1,061 |
| Total | 1,299,613 | 936,396 | |
| EXPENDITURE ON | |||
| Raising funds | 4 | 54,292 | 32,025 |
| Charitable activities | 5 | ||
| Charitable activities | 977,261 | 940,758 | |
| Total | 1,031,553 | 972,783 | |
| NET INCOME/(EXPENDITURE) | 268,060 | (36,387) | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 66,180 | 102,567 | |
| TOTAL FUNDS CARRIED FORWARD | 334,240 | 66,180 |
The notes form part of these financial statements
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MGS CHARITABLE TRUST
BALANCE SHEET 31 AUGUST 2020
| 2020 | 2019 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| CURRENT ASSETS | |||
| Debtors | 12 | 13,588 | 28,550 |
| Cash at bank | 326,052 | 44,218 | |
| 339,640 | 72,768 | ||
| CREDITORS | |||
| Amounts falling due within one year | 13 | (5,400) | (6,588) |
| NET CURRENT ASSETS | 334,240 | 66,180 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 334,240 | 66,180 | |
| NET ASSETS | 334,240 | 66,180 | |
| FUNDS | 14 | ||
| Unrestricted funds | 334,240 | 66,180 | |
| TOTAL FUNDS | 334,240 | 66,180 |
The financial statements were approved by the Board of Trustees and authorised for issue on 24 June 2021 and were signed on its behalf by:
Mr Daniel Jacob Goldberg - Trustee
The notes form part of these financial statements
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MGS CHARITABLE TRUST
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2020 £ 281,793 281,793 41 41 281,834 44,218 326,052 |
2019 £ (12,448) (12,448) 1,061 1,061 (11,387) 55,605 44,218 |
|---|---|---|
The notes form part of these financial statements
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MGS CHARITABLE TRUST
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Interest received Decrease in debtors Decrease in creditors Net cash provided by/(used in) operations |
2020 £ 268,060 (41) 14,962 (1,188) 281,793 |
2019 £ (36,387) (1,061) 25,000 - (12,448) |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.9.19 | Cash flow | At 31.8.20 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 44,218 | 281,834 | 326,052 |
| 44,218 | 281,834 | 326,052 | |
| Total | 44,218 | 281,834 | 326,052 |
The notes form part of these financial statements
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MGS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
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 offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. DONATIONS AND LEGACIES
| 2. | DONATIONS AND LEGACIES | ||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| Donations | 1,299,572 | 935,335 | |
| 3. | INVESTMENT INCOME | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Deposit account interest | 41 | 1,061 |
continued...
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MGS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020
4. RAISING FUNDS
| Raising donations and legacies | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| Premises expenses | 33,843 | - | ||
| Fundraising costs | 20,449 | 32,025 | ||
| 54,292 | 32,025 | |||
| 5. | CHARITABLE ACTIVITIES COSTS | |||
| Grant | ||||
| funding of | ||||
| activities | Support | |||
| (see note | costs (see | |||
| 6) | note 7) | Totals | ||
| £ | £ | £ | ||
| Charitable activities | 971,000 | 6,261 | 977,261 | |
| 6. | GRANTS PAYABLE | |||
| 2020 | 2019 | |||
| £ | £ | |||
| Charitable activities | 971,000 | 938,334 | ||
| A summary of donations made during the year is as follows: | ||||
| Name of charitable organisation | Amount | |||
| (£) | ||||
| RABG Memorial Fund Ltd | 971,000 | |||
| 7. | SUPPORT COSTS | |||
| Governance | ||||
| Finance | costs | Totals | ||
| £ | £ | £ | ||
| Charitable activities | 861 | 5,400 | 6,261 | |
| 8. | AUDITORS' REMUNERATION | |||
| 2020 | 2019 | |||
| £ | £ | |||
| Fees payable to the charity's auditors for the audit of the charity's | financial | |||
| statements | 3,600 | - |
continued...
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MGS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020
9. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.
10. STAFF COSTS
The average monthly number of employees during the year is Nil (2019:Nil).
11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| fund | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Donations and legacies | 935,335 |
| Investment income | 1,061 |
| Total | 936,396 |
| EXPENDITURE ON | |
| Raising funds | 32,025 |
| Charitable activities | |
| Charitable activities | 940,758 |
| Total | 972,783 |
| NET INCOME/(EXPENDITURE) | (36,387) |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward | 102,567 |
| TOTAL FUNDS CARRIED FORWARD | 66,180 |
continued...
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MGS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| Other debtors | - | 28,550 | ||
| Prepayments and accrued income | 13,588 | - | ||
| 13,588 | 28,550 | |||
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 2020 | 2019 | |||
| £ | £ | |||
| Other creditors | 5,400 | 6,588 | ||
| 14. | MOVEMENT IN FUNDS | |||
| Net | ||||
| movement | At | |||
| At 1.9.19 | in funds | 31.8.20 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 66,180 | 268,060 | 334,240 | |
| TOTAL FUNDS | 66,180 | 268,060 | 334,240 | |
| Net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 1,299,613 | (1,031,553) | 268,060 | |
| TOTAL FUNDS | 1,299,613 | (1,031,553) | 268,060 | |
| Comparatives for movement in funds | ||||
| Net | ||||
| movement | At | |||
| At 1.9.18 | in funds | 31.8.19 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 102,567 | (36,387) | 66,180 | |
| TOTAL FUNDS | 102,567 | (36,387) | 66,180 |
continued...
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MGS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020
14. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 936,396 936,396 |
Resources Movement expended in funds £ £ (972,783) (36,387) (972,783) (36,387) |
|---|---|---|
15. RELATED PARTY DISCLOSURES
Included in the accounts are donations totalling £nil (2019: £94,202) received from Companies and Charities with common Directors or Trustees.
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