2023-08-31-accounts - Mgs Charitable Trust

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REGISTERED CHARITY NUMBER: 1134732

Report of the Trustees and

Financial Statements FOR THE YEAR ENDED 31 August 2023

for

MGS CHARITABLE TRUST

Melinek Fine LLP Chartered Accountants Statutory Auditors 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 2023

	Page
Report of the Trustees	1 to 2
Report of the Independent Auditors	3 to 5
Statement of Financial Activities	6
Balance Sheet	7
Cash Flow Statement	8
Notes to the Cash Flow Statement	9
Notes to the Financial Statements	10 to 13

MGS CHARITABLE TRUST

Report of the Trustees

FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their report with the financial statements of the charity for the year ended 31 August 2023. 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 £1,262,026 (2022: £1,681,565) were paid to Menorah Grammar School.

The financial results of the Charity's activities for the year ended 31 August 2023 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 2023 the charity has total funds of £21,266 (2022: £82,819), 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 Mr Raphael Klopmann

Page 1

MGS CHARITABLE TRUST

FOR THE YEAR ENDED 31 AUGUST 2023

Report of the Trustees

REFERENCE AND ADMINISTRATIVE DETAILS Auditors

Melinek Fine LLP Chartered Accountants Statutory Auditors 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

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 24 April 2024 and signed on its behalf by:

Mr Daniel Jacob Goldberg - Trustee

Page 2

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 2023 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:

give a true and fair view of the state of the charity's affairs as at 31 August 2023 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 3

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the trustees and other management ( as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related legislation). We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the trustees.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We addressed the risk of fraud through management override of controls, by 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.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Page 4

Report of the Independent Auditors to the Trustees of MGS Charitable Trust

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 Statutory Auditors First Floor, Winston House 349 Regents Park Road London N3 1DH

24 April 2024

Page 5

MGS CHARITABLE TRUST

Statement of Financial Activities

FOR THE YEAR ENDED 31 AUGUST 2023

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Raising funds 4 Charitable activities 5 Charitable activities Grants to Menorah Grammar School Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	2023 Unrestricted fund £ 1,238,845 286 1,239,131 32,568 6,090 1,262,026 1,300,684 (61,553) 82,819 21,266	2022 Total funds £ 1,657,383 9 1,657,392 49,313 5,876 1,681,565 1,736,754 (79,362) 162,181 82,819

The notes form part of these financial statements

Page 6

MGS CHARITABLE TRUST

Balance Sheet

31 AUGUST 2023

2023 Unrestricted fund Notes £ CURRENT ASSETS Cash at bank 32,666 CREDITORS Amounts falling due within one year 11 (11,400) NET CURRENT ASSETS 21,266 TOTAL ASSETS LESS CURRENT LIABILITIES 21,266 NET ASSETS 21,266 FUNDS 12 Unrestricted funds 21,266 TOTAL FUNDS 21,266	2022 Total funds £ 88,519 (5,700) 82,819 82,819 82,819 82,819 82,819

The financial statements were approved by the Board of Trustees and authorised for issue on 24 April 2024 and were signed on its behalf by:

Mr Daniel Jacob Goldberg - Trustee

The notes form part of these financial statements

Page 7

MGS CHARITABLE TRUST

Cash Flow Statement

FOR THE YEAR ENDED 31 AUGUST 2023

Notes Cash flows from operating activities Cash generated from operations 1 Net cash 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	2023 £ (56,139) (56,139) 286 286 (55,853) 88,519 32,666	2022 £ (79,071) (79,071) 9 9 (79,062) 167,581 88,519

The notes form part of these financial statements

Page 8

MGS CHARITABLE TRUST

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 AUGUST 2023

1.	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM	OPERATING ACTIVITIES	OPERATING ACTIVITIES
			2023	2022
			£	£
	Net expenditure for the reporting period (as per	the Statement of
	Financial Activities)		(61,553)	(79,362)
	Adjustments for:
	Interest received		(286)	(9)
	Increase in creditors		5,700	300
	Net cash used in operations		(56,139)	(79,071)
2.	ANALYSIS OF CHANGES IN NET FUNDS
		At 1.9.22	Cash flow	At 31.8.23
		£	£	£
	Net cash
	Cash at bank	88,519	(55,853)	32,666
		88,519	(55,853)	32,666
	Total	88,519	(55,853)	32,666

The notes form part of these financial statements

Page 9

MGS CHARITABLE TRUST

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2023

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

Donations Gift aid 3. INVESTMENT INCOME Deposit account interest	2023 £ 1,187,562 51,283 1,238,845 2023 £ 286	2022 £ 1,646,330 11,053 1,657,383 2022 £ 9

continued...

Page 10

MGS CHARITABLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

4. RAISING FUNDS

Raising donations and legacies

Premises expenses Fundraising costs 5. CHARITABLE ACTIVITIES COSTS Grant funding of activities (see note 6) £ Charitable activities - Grants to Menorah Grammar School 1,262,026 1,262,026 6. GRANTS PAYABLE Grants to Menorah Grammar School 7. SUPPORT COSTS Finance £ Charitable activities 390 8. AUDITORS' REMUNERATION Fees payable to the charity's auditors for the audit of the charity's financial statements	2023 £ 32,568 - 32,568 Support costs (see note 7) £ 6,090 - 6,090 2023 £ 1,262,026 Governance costs £ 5,700 2023 £ 3,600	2022 £ 34,050 15,263 49,313 Totals £ 6,090 1,262,026 1,268,116 2022 £ 1,681,565 Totals £ 6,090 2022 £ 3,600

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

continued...

Page 11

MGS CHARITABLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

10. STAFF COSTS

The average monthly number of employees during the year is nil (2022: nil).

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Other creditors	2023 £ 5,700 5,700 11,400	2022 £ - 5,700 5,700

12. MOVEMENT IN FUNDS

At 1.9.22 £ Unrestricted funds General fund 82,819 TOTAL FUNDS 82,819 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,239,131 TOTAL FUNDS 1,239,131 Comparatives for movement in funds At 1.9.21 £ Unrestricted funds General fund 162,181 TOTAL FUNDS 162,181 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,657,392 TOTAL FUNDS 1,657,392	Net movement in funds £ (61,553) (61,553) Resources expended £ (1,300,684) (1,300,684) Net movement in funds £ (79,362) (79,362) Resources expended £ (1,736,754) (1,736,754)	At 31.8.23 £ 21,266 21,266 Movement in funds £ (61,553) (61,553) At 31.8.22 £ 82,819 82,819 Movement in funds £ (79,362) (79,362)

continued...

Page 12

MGS CHARITABLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2023

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2023.

Page 13