Charity number: 1137199 MIZRACHI (UK) ISRAEL SUPPORT TRUST UNAUDITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
MIZRACHI IUKI ISRAEL SUPPORT TRUST CONTENTS Page Reference and Administrative Details of the Charity. its Trustees and Advisers Trustees. Report Independent Examiner's Report 10 statement of Financial Activities Balanco Sheot 12 Statement of Cash Flows 13 Notes to the Flnanclal Ststements 14-29
MIZRACHI IUKI ISRAEL SUPPORT TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees D D Morris S Blumgart G Kurland M Fruhman S Melnick M Bauernfreund A Harris J Silberstein lappointed 8 July 2024} Charity registered number 1137199 Registered address 2 Hallswelle Road London NW11 ODJ Principal operating office 44a Albert Road London NW4 2SJ Chief executive officer Rabbi A Shaw Independent Examiner lan Saunderson FCA BKL Audit LLP 35 Ballards Lane London N3 1XW Page 1
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together with the financial statements of the Charity for the year to 31 December 2023. Objectives and activities a. Polieies and objectives The objectives of the charity are to further promote the work of Mizrachi by working in schools, communities and Campus to strengthen the Jewish community's connection to Modern Orthodoxy and a strong eonnection to the Stale of Israel. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit." running a charity IPB21'. b. Strategies for achieving objeetives Mizrachi UK primarily focuses on strengthening Jewish identity within the UK and providing SUPFX)rt to Israel in areas of greatest need. Additionally, we periodically collaborate with other partners and communities, with particular emphasis on the UK Jewish community- c. Activities undertaken to achieve objeetives Leadership Programming Mizrachi UK is committed lo identifying, training, and deploying young British men and women to serve 8S the next generation of Rabbis and female educators through the Mizrachi Rabbinic81 Fellowship Programme. This initiative aims to equip p8rtiClP8nts with the skills and knowledge necessary to lead within the UK Jewish community. Community Engagement We facilitate a diverse range of programming throughout the UK, which includes speaker tours, localized cultural aclivilies, and unique productions. Our flagship events, such as the Weekend of Inspiration and Day of Inspiration, are designed to foster engagement and conneetion within the community, providing enriching experiences for all p8rtiClP8nts. Yehudi The Yehudi programme aims lo promote positive Jewish experiences that enhance the Jewish identity of youth through peer-to-peer leadership. This initiative involves eonnecting young people with inspiring madriehim during 8 variety of events and activities. Additionally, we focus on recruiting, training, and mentoring sixlh-form and university students to become madrichim and mentors, thereby ealing pathways for leadership opportunities within the Jewish educational sector. d. Grant-making policies The Mizrachi Rabbinical Fellowship Programme provides educational opportunities for young British men and women through their studies in Israel. Applicants musl meet rigorous criteria to qualify for the programme. Those who are SUCssful and demonslrale a need for financial support are awarded grants to help cover their living expenses while studying in Israel. These grants are provided with the understanding that recipients will return lo the UK lo become the next generation of Rabbis and female educators. Page 2
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities leontinuedl e. Volunteers In 2023, the Yehudi Year 6 progomme rectuited 85 Year 12 volunteers to setve 8S youth leaders Imadrichiml for Year 6 parbcipants completing their primary eduealion. These volunteers provide programming for over 330 Year 6 students and are supported by 18 mentors and three senior leaders. The previous Cohort of Year 12 volunteers transitioned to Year 13 and continued their volunteering involvement with the programme, facilitating sessions for over 480 Year 7 students, with similar mentor and senior leader SUPFX)rt structures in place. The programming will extend through to Year 11, when it is expected that these students will re-enler the Yehudi framework as madrichim when they reach Year 12. Similady, Year 12 madrichim will have opportunities lo progress into mentorship roles, preparing them for future leadership positions within the community and possible entry into the Mizrachi Fellowship Programme. To enhance their training and leadership skills, the volunteers participated in training sessions and attended regular meetings with their mentors. The charity is guided by a board of seven ttustees Ilisled belowl, who provide oversight to the executive team in making effective decisions, fulfilling the charity's mission, maintaining financial accountability, and ensuring compliance with our goveming documents and legal reqU1MentS. Trustees formally meet with the executive team approximately three to four times 8 year, along with inform81 discussions throughout the year. Grant allocations are discussed at least monthly between these Trustees and the Executive Director. f. Main activities undertaken to further the Charty's purposes for the public benefit Leadership P[ramMIng Mizrachi UK is committed lo identifying, training, and deploying young British men and women to serve 8S the next generation of Rabbis and female educators through the Mizrachi Rabbinical Fellowship Programme. This initiative aims to equip participants with the skills and knowledge necessary to lead within the Jewish community- Community Engagement We facilitate a diverse range of programming throughout the UK, which includes speaker tours, localised cultural aclivilies, and unique productions. Our flagship events, such as the Weekend of Inspiration and Day of Inspiration, are designed to foster engagement and connection within the community, providing enriching experiences for all p8rtiClP8nts. Yehudi The Yehudi programme aims lo promote positive Jewish experiences that enhance the Jewish identity of youth through peer-to-peer leadership. This initiative involves eonnecting young people with inspiring madriehim during 8 variety of events and activities. Additionally, we focus on recruiting, training, and mentoring sixlh-form and university students to become madrichim, mentors, and members of the senior leadership team, thereby creating pathways for leadership opportunities within the Jewish educational sector. Page 3
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Aehievements and performance a. Key performance indicators Leadershi Pro ramme Twelve graduate couples have successfully completed the Rabbinical Fellowship Programme since its InptIOn in September 2016. Graduate couples have sucSsfUllY been recruited and employed by notable UK Jewish Synagogue and Communal organisalions where they work tirelessly lo strengthen engagement within the community. Mizrachi UK introduced the Alumni Programme in September 2023 to foster a supportive network among Fellows, enhan support for Current 8nd former Fellows 8nd to track the long-term impact of Fellows on their communities Al 31 December 2023 two participant couples are currently enrolled in the Fellowship programme. One Shlichim couple lives and works in the Manchester community and are engaged in strengthening local communities connection lo Israel. Communi En ement Mizrachi UK hosted a four-day event, Weekend of Inspiration and Day of Inspiration, from Thursday 16 to Sunday 19 May 2024, featuring 33 scholars and educators from Israel. 11 included Shabbat programming in over 49 communities and a Day of Inspiration on Sunday, with keynote addresses and workshops for hundreds of attendees partiClP8nts in London and Manchester communities 3,000 people have opted in lo receive the weekly emailed journal Sludenl Bel Midrash Programming impacts between 50 10 90 secondary school and university students on a weekly basis The weekly Bet Midrash Programming effects 30 10 40 adults on a weekly basis Our publications continue lo be produced and enjoyed. The Hamizrachi magazine published for Chagim was made available online with over 25,000 printed copies distributed lo over 40 communities across the UK. Yehudi 85 Year 12 volunteers truited madrichim to deliver content to over 330 Year 6 students, supported by 18 mentors and three senior leaders 60 Yar 13 volunteers facilitating sessions for over 460 Year 7 students, with similar mentor and senior leader support structures in pla. 18 posl-gap year students were identified and appointed as mentors lo support the new cohort of Year 12 madrichim. Existing mentors remained in situ to support the Year 13 volunteers. A mix of 80 youth leaders, mentors and senior leaders attended a successful weekend residential as part of the volunteer onboarding process. Page 4
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Aehievements and performance Icontinuedl b. Review of activities Mizrachi UK continues lo work with the community to strengthen Jewish identity and its support for Israel. Through its work in schools, shuls and campuses across the country Mizrachi UK delivers ils three core elements of Leadership Programming, Community Engagement and Yehudi. Leadershi Pro ramme The Mizrachi Rabbinical Fellowship Programme galvanises UK Jewish communities, schools and communal organisations through Semicha and leadership education training of young British men and women through their studies in Israel. 11 is expected that they return lo the UK as strong Rabbinical leaders and female educators lo inspire and strengthen communal engagement. Two graduate couples of the programme returned to the UK in 2023. They were SUCssfUllY placed within the community, bringing the total graduate couples working in the UK community lo e1Ve. We look forward to welcoming back to the UK further graduate couples in 2024. Communi En emenl P ramme Mizrachi UK runs an array of community engagement programming across the UK. The programming includes speaker tours featuring local and international educators, publications such as Hamizrachi and the Tzurba HaRabbanim learning programme, as well as bespoke localised community cultural activities. c. Factors relevant to achieve objectives External Challenges.. Economic UnrtaInty and geopolitical conflict will impact on the charity's ability to function effectively. These factors can influence community engagement and overall operational effectiveness as charitable giving by supporters may be diverted elsewhere. Programme Recruitment Difficulties.. Effective recruitment of Yehudi volunteers and Fellowship candidates is crucial for maintaining leadership quality and ensuring programming delivery. Importance of Core Work.. The strategic focus on core wort< (Leadership Programming, Community Engagement, and Yehudil may need to be re-aligned with effective planning and resour allocation. The need for adequate staffing and infrastructure can impact our capacity lo support programme delivery and volunteer management. Community Collaboration.. The commitment lo continue working with schools, synagogues, and community organisations reflects the importance of stskeholder engagement, which is vital for achieving objectives related to Jewish identity and engagement. d. Fundraising activities and income generation The charity will continue to secure funding through existing donor re18tionships as well as bmnching out lo new trusts and foundations. New donor relationships are actively being explored. Notwithstanding the cost of living crisis, conflict in the Middle E8St and Ukraine, presenting a fundraising challenge, MErachi UK plans to run a crowdfunding campaign in December 2024. Page 5
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review a. Going coneem After making appropriate enquiries the Trustees have 8 reasonable expectation that the Charity has adequate resources to continue in operation81 existence for the foreseeable future following the support provided by the Trustees. For this reason, they continue lo adopt the going concern basis in preparing the financial stalèmenls. Further details regarding the adoption of the going concern basis can be found in the accounting policies. b. Reserves policy The reserves policy of the Charity requires a three month reserve. As of 31 December 2022 the reserves we in 8 deficit. Therefore reliance on the charity being a going coneern has been placed on the support of the Iruslees. c. Financial position at the year end During the year, the Charity received donations and other income of £ 897,38612022 - £ 739,9281. Expenditure in the year lotalled £ 1,066,70012022 £ 1,107,916) leaving an in year deficit of £ 169,31412022 £1367,98811. Reserves at the year end stood at a deficit of £ 337,26012022 - £ 167,9461. As detailed above, the trustees aim lo improve the financial standing of the Charity- Page 6
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 d. Principal risks and uncertainties The events of October 7th, coupled with the unpeedented rise in antisemitism, are expected to have a profound and18Sting impact on our community. Increased safely and security concerns regarding events and activities may foster feelings of vulnembility and lead lo potenti81 withdrawal from community engagement and the 8rr8y of programming offerings. As antisemitism rises, community members may find themselves reassessing their Jewish identity. In response, Mizrachi UK must be prepared to foster communal solidarity and provide additional programmes, events and sources 10 address these challenges, thereby pulling further pressure on existing staffing and fi'nancial sources. There is a concern that fundraising will be challenging as charitable giving will be diverted to supported Israeli based charities instead of local Jewish charities. The ongoing difficulties in recruiting high-caliber eandidales for the Mizr8chi R8bbinic81 Fellowship may impede effective suecession planning, complicating our efforts lo ppare future leaders and maintain continuity within the community. Attr8Cting lop-lier candidates often requires competitive grant packages, which may be challenging for our charity in the current economic climate. A lack of qualified candidates can diminish the quality of leadership, ultimately 8ffecting the effectiveness of our programmes and initiatives. As we expand, the need for sufficient staffing and infrastructure to support Yehudi and its volunteers is becoming increasingly essential. Additionally, il is imFlOrtanl to streamline volunteering opportunities to facilitate easier connections and encoufftge ongoing commitment. In this conlexl, the work Mizrachi UK does in ils three core areas-Leadership Programming, Community Engagement, and Yehudi-has never been MO essential, despite the dwindling resources available to deliver these vital services. Mizrachi UK will continue to collaborate with schools, synagogues, and community organisations to strengthen Jewish engagement and identity. By vitalIZIng grassroots leadership and identifying enterprising and talented young individuals early on, we aim to cultlV8te a strong pool of passionate and committed future leaders and educators. e. Financial risk management objectives and polieies The Trustees have examined the major strategic, business and opemtional risks which the charity faS and confi'rm that systems are in place to protect the charity's assets. f. Principal funding The charity is reliant on donations for the funding of the charity. These resources allow the charity lo continue its significant plans to give grants to good causes throughout the community, run educational activities and soci81 events surrounding the Slate of Israel. Structure, govemance and management a. Constitution The Charity is a ch8riL9ble trust formed under a trust deed dated 5th February 2010. 11 is registered with the Charity Commission of Eng18nd and Wales, Charity Number 1137199. Page 7
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, govemance and management Icontinuedl b. Methods of appointment or election of Trustees The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. c. Organisational structure and deeision-making policies The Trustees are involved with governance, major fundraising activities and donor relationships, senior staff appointments, ad hoe matters esc81aled by the Chief Executive. Day to day running of the charity is delegated lo the Chief Executive Officer. Trustees". The are 8 Trustees D Morris S Blumgart G Kurland M Fruhman S Melnick M BaUernfUnd A Harris J Silberstein lappointed 8 July 20241 d. Policies adopted for the induction and training of Trustees All new Trustees te1ve specialist tfftining to the role that they hold, provided by existing Trustees. New Trustees are encouraged lo review the most recent financial statements to famili8rise themselves with the day lo day running of the charity. e. Pay policy for key management personnel The pay awards are reviewed anually by the Trustees. Pay is normally considered in accordance with similar roles in other comparable org8nisations. f. Related party relationships Mizrachi UK works closely with Mizrachi Worldwide. They facilitate the Rabbinical Fellowship Programme in Israel and assist Mizrachi UK in supporting the delivery of sludenl trips lo Israel. There is a shared ethos but they are separate entities. Relationships with Bnei Akiva Worldwide and Bnei Akiva UK also exist with respect lo Mizrachi UK support of their Shlchim Programme. There is a shared ethos bul they are separate entities. g. Financial risk management The Trustees have assessed the major slralegic, business, and operational risks which the charity faces and confirm that systems are in pla to protect the charity's assets. The Trustees believe that by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. Page 8
MIZRACHI IUKI ISRAEL SUPPORT TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Plans for future periods Mizrachi UK is actively fundmising to support the 8re8s of Leadership Progmmming, Community Engagement and to grow the Yehudi Programme. Statement of Trustees. responsibilities The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Gener811y Accepted Accounting Praclicel. The law applicable to ch8rilies in England & Wales requires the Trustees lo prepare financial statements for each financial which give a true and fair view of the stale of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these finanei81 statements, the Trustees are required to". select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP IFRS 1021", make judgments and accounting estimates that are reasonable and prudent", stale whether applicable UK Accounting Stsndards IFRS 1021 have been followed, subject lo 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 adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy al any lime the financial position of the Charity and 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 members of the board of Trustees and signed on their behalf by.. J Silberstein Trustee Dale.. 3011012024 Page 9
MIZRACHI IUKI ISRAEL SUPPORT TRUST INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Independent Examinerfs Report to the Trustees of Mizrachi IUKI Israel Support Trust I'the Charity'l I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2023. Responsibilities and Basis of Report As the Trustees of the Charity you are responsible for the preparation of the accounts in 8ecord8nce with the requirements of the Charities Act 2011 I'the 2011 ACVI. I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent Examiner's Statement Since the Charity's gross income exceeded £250,000 your examiner musl be 8 member of 8 body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accounlanls in England and Wales., which is one of the listed bodies. I have completed my examination. I confirm that no matters, other than those fully detailed below, have come lo my allenlion in connection with the examination giving me reasonable cause lo believe that in any material respect.. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act", or the accounts do not accord with those records., or the accounts do not comply with the applicable requirements conceming the form and Content of accounts set out in the Ch8rilies (Aceounls and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and f81¢ view which is not a matter considered as part of an independent examinab'on. I confirm that there are no other matters to which your attention should be drawn lo enable a proper understanding of the accounts to be reached. Disclosure Section We draw allenlion lo the disclosures around going cOnM in the Iruslees, report and note 1.2 in the financial slalements, which indicate that the funds of the charity do not cover the commilled expenditure for the first months of 2024. These events or conditions indicate that the charity is reliant on the support of the trustees in order lo remain a going concern. This report is made solely to the Charity's Trustees, as a body, in aecordance with Part 4 of the Charities IAecounts and Reports) Regulations 2008. My work has been undertaken so that I might stale lo the Charity's Trustees those matters l am required to slate to them in an Independent Examiner's Report and for no other purpose. To the fullest exlenl permitted by 18w, I do not accept or assume rèsponsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report. Signed.. /A> SAwzJ&rM& Dated.. 3011012024 lan Saunderson FCA BKL Audit LLP 35 Ballards Lane London N3 1XW Page 10
MIZRACHI IUKI ISRAEL SUPPORT TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Charitable activities 601.441 277.121 18,824 620.265 277.121 578.344 761,584 Total income 878,562 18,824 897,386 739,928 Expenditure on: Charitable activities 1,057.903 8.797 1,066.700 1,107,916 Total expendlture 1,057.903 8.797 1,066.700 1,107,916 Net movement in funds 1179.3411 10.027 1169.3141 (367,988) Reconciliation of funds.. Total funds brought forward Nel movement in funds (198.013) 1179,3411 30.067 10.027 (167.946) 1169,3141 200,042 (367,988) Total funds carrigd forward 1377.3541 40.094 1337.2601 (167,946J The Ststemenl of Financial Activities includes all gains and losses recognised in the year. The notes on pages 14 to 29 form part of these financial statements. Page11
MIZRACHI IUKI ISRAEL SUPPORT TRUST BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Tangible assets 10 2,727 2,047 2,727 2.047 Current assets Debtors Cash al bank and in hand 11 15,029 10.259 3,054 72, 792 25.288 T5,846 Creditors." amounts falling due within one year 12 1350,4701 (220, 893) Net current liabilities 1325,182) (145.047) Total assets less current liabilities 1322.455} (143,000) Creditors." amounts falling due after more than one year 13 {14,805} 124,946) Total net assets 1337,260) (167.946) Charity funds Reslricled funds Unrestricted funds 14 40,094 1377.354} 30,067 (198,013) 14 Totsl funds 1337.260} (167.946) The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. J Silberstein Trustee Dale. 3011012024 The notes on pages 14 to 29 form part of these fin8nci81 statements. Page 12
MIZRACHI IUKI ISRAEL SUPPORT TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operatlng actlvltles Nel cash used in operating activities 1100,3971 (121.091) Purchase of tangible fixed assets Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing other non-cash movements 12,2461 50,000 19,8901 100,000 (89.646) (19,479) Net cash provlded byllused Inl flnanclng actlvltles 40,110 {9.1251 Change in eash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 162,5331 1130,2161 72,792 203.008 Cash and cash equlvalents at the end ofthe year 10,259 72, 792 The notes on pages 14 to 29 form part of these financial statements Page 13
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies 1.1 Basis of preparation of financial ststements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 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 IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. Mizrachi IUKI Israel Support Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are Initially recognised al historical cost or transaction value unless otherwise stated in the relevant accounting policy. 1.2 Going concern Al the balance sheet date of the charity, ils nel funds did not cover ils committed expenditure for the first 3 months of 2024. However, the Trustees have prepared the accounts on a going concern basis, due to a commitment from the Trustees to support the charity. As such, the trLJStees consider that the charity is able to continue ils activities for a period of at least twelve months from the date of signature of these accounts and the accounts have therefore been prepared on a going concem basis. 1.3 Income All income is recognised once the Charity has entillemenl lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to donations reTrived under Gift ikn'd or deeds of covenant is recognised at the lime of the donation. 1.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. ExpenditLJre is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs inVoed in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable aclivib.es is incurred on direcUy undertaking the activities which further the Charity's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer Is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions allaching are fulfilled. Grants offered subject to conditions which have not been met al the year end are noted as a commitment, bul not accrued as expenditure. Page 14
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinuedl 1.4 Expenditure {continued) All expenditure is inclusive of irrecoverable VAT. 1.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity,. this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 1.6 Tangible fixed assets and depreciation Tangible fixed assets costing £NIL or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their eslimaled useful lives, Depreciation is provided on the following bases.. Fixtures and fittings Computer equipment 33D/o straight line 33Q/o straight line 1.7 Debtors Trade and other debtors are recognised at the selllemenl amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. 1.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 1.9 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet dale as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the Charity anlicipales il will pay to sellle the debt or the amount il has received as advanced payments for the goods or services it musl provide. Provisions are measured al the best estimate of the amounts required to sellle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rale that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. Page 15
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinuedl 1.10 Fund accounting General funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted fvnds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial statements. Income from donations and legacies Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Donations Grants 590,941 10,500 590.941 29.324 18,824 601,441 18,824 620.265 Unrestricted funds 2022 Restrictgd funds 2022 Total funds 2022 Donations Grants 519,589 25.000 519,589 58. 755 33, 155 544,589 33, 755 578,344 Page 16
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charitable activities Unrestricted funds 2023 Total funds 2023 Events Teaching Educational Programme Book sales Magazine income 177,427 96,950 1,744 1,000 177,427 96.950 1.744 1.000 Total 2023 277,121 277.121 Unrestrictgd funds 2022 Total funds 2022 Income from charitsble activities - Events Events Educational programs Book sales Magazine income 500 10,418 86,547 1, 064 3, 055 5QO 70.418 86,547 1.064 3,055 Total 2022 161,584 161,584 Analysls of grants Grants to Individuals 2023 Total funds 2023 Israel scholarships 110,153 110,153 Page 17
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of grants Icontinuedl GTrnts lo Individuals 2022 Total funds 2022 Israel scholarships 128, 603 128,603 Analysis of gxpenditure on charitable activitios Unrestrictod Restricted funds funds 2023 2023 Total 2023 Support costs Direct costs 202,714 745,036 110,153 202.714 753,833 110,153 8,797 Grants 1,057,903 8,797 1,066.700 Unrestricted funds 2022 Restricted funds 2022 Tol81 2022 Support costs Direct costs Grants 315.619 650.269 128,603 315.619 663.694 128,603 13,425 1.094.491 13,425 1, 107.916 Page 18
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities Icontinuedl Summary by expenditure type Staff costs Depreciation Other costs 2023 2023 2023 Total 2023 Events Teaching Mizrachi Fellowship Programme Expenses 48,009 340,374 1,566 153,139 413,459 110,153 202.714 753,833 110.153 388,383 1,566 676,751 1,066.700 Staff costs Depreciation 2022 2022 Other wsts 2022 Total 2022 Events Teaching Mizrachi Fellowship Programme Expenses 76.013 338,694 1, 796 237,810 325, 000 128, 603 315,619 663.694 128,603 414.707 1. 796 691,413 1, 107,916 Analysls of expendlture by actlvltles Activities undertaken directty 2023 Grant funding of activities 2023 Support costs 2023 Total funds 2023 Events 202,714 202,714 753.833 110.153 Teaching Mizrachi Fellowship Programme Expenses 753,833 110,153 753,833 110,153 202,714 1,066,700 Page 19
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Icontinuedl Activities undertaken directly 2022 Grant funding ol activities 2022 Support costs 2022 Total funds 2022 Events Teaching Mizrachi Fellowship Programme Expenses 315, 619 315,619 663,694 128.603 663,694 128,603 663,694 128,603 315, 619 1, 107,916 Anatysis of direct costs Advancing ot Jewish Religion 2023 Total funds 2023 staff costs 340,374 34,020 332,876 46,563 340.374 34.020 332,876 46,563 Educational programme Events Magazine expenses 753,833 753.833 AdvancNng of Jewish Religion 2022 Total funds 2022 Stsff costs Educational programme Guest speakers and trips Magazine Èxpenses 338,694 16,259 262,482 46,259 338,694 16,259 262,482 46,259 663.694 663,694 Page 20
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Icontinuedl Analysis of support costs Advancing of Jewish Religion 2023 Total funds 2023 Staff costs Depreciation Rent IT Costs Phone charges Bank charges General expenses Literature, publishing and printing Travel 48,009 1,566 20,205 16,424 4,078 250 48,009 1,566 20,205 16.424 4,078 250 43,671 79 4,243 7,384 48,939 43,671 79 4,243 7,384 48,939 Accounting fees Shaliach expenses Loan interest li 253 253 Postage Advertising Stsff training 1,478 3,906 2,229 1,478 3,906 2,229 202,714 202,714 Page 21
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Icontinuedl Analysis of support costs Icontinuedl Advancing of Jewish Religion 2022 Total funds 2022 Staff costs Depreciab'on Rent IT Costs Phone charges Bank charges General expenses 76.013 1, 796 18.720 11,362 2, 726 311 76,013 7,796 18,720 11,362 2, 726 311 40.699 40,699 k- li Literature publishing and printing Travel Accounting fees Shaliach expenses Loan interest 118 2,677 6,182 126.873 1,002 20,813 307 118 2,677 6,182 126,873 1,002 20,813 307 Bad debt Postage Advertising Legal expenses Motor vehicle expenses Staff training 2.122 1, 715 479 1, 704 2,122 1,715 479 1,704 315,619 315,619 Independent examinerfs remuneration 2023 2022 Fees payable lo the Charity's independent examiner for the independent examination of the Charity's annual accounts Fees payable to the Charity's independent examiner in respect of". All other servi$ not included above 3,970 3,434 1,872 1.060 Page 22
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 staff costs 2023 2022 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 327,056 13,318 48,009 338.486 23.625 52,596 388,383 414,707 The average number of persons employed by the Charity during the year was as follows.. 2023 No. 2022 No. Employees 14 27 The number of employees whose employee benefits {excluding employer pension costs) exceeded £60,000 was.. 2023 No. 2022 No. From £140,001 10 £150,000 The lolal amount of employee remuneration benefits received by key management personnel was £190,91312022. £192,689). Trustees. remuneration and expensos During the year, no Trustees reiVed any remuneration or other benefits (2022- £NIL). During the year ended 31 December 2023, no Trustee expenses have been incurred (2022- £NILJ. Page 23
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 10. Tangible fixed assets Fixtures and fittings Computer equipment Total Cost or valuatlon At 1 January 2023 Additions 10,211 2,026 10,211 2,246 220 At 31 December 2023 220 12,237 12,457 Depreciation At 1 January 2023 Charge for the year 8,164 1,493 8,164 1,566 73 At 31 December 2023 73 9,657 9,730 Net book value At 31 December 2023 147 2,580 2,727 At 31 Detser 2022 2,047 2,047 11. Debtors 2023 2022 Due within ong ygar Trade debtors 12,034 2,995 465 Other debtors 2,589 15,029 3,054 Page 24
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. Creditors: Amounts falling due within one year 2023 2022 Bank loans other loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income 10,142 150,000 121,152 53,161 3,662 12,353 9.891 100.000 41,031 41,652 4.077 24.242 350,470 220,893 13. Creditors: Amounts falling due after more than one year 2023 2022 Bank loans 14,805 24,946 Page 25
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Statement of funds statement of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expenditure Unrestricted funds General funds 1198.013) 878.562 11.057.903) (377.354) Restrlcted funds Chidon Hatsnach Mizrachi Fellowship Programme 3.307 26.760 6,324 12.500 18.7971 834 39.260 30,067 18,824 18,7971 40,094 Total of funds 1167.946) 897,386 11,066,700) 1337.2601 Chidon Halanach.. The aim of Chidon HaTanach is to promote and celebrate Tanach study amongst Jewish youth lo both deepen Torah knowledge and strengthen Jewish identity. Yeshiva & Seminary fundraising campaign.. The aim of the fundraising campaign was to assist Yeshivol and Seminaries in Israel offset the increased infrastructure costs associated with operating their programs during the pandemic. These are the educational establishments where our Fellows study. The Mizrachi Fellowship Programmes creates the next generation of Modern Orthodox Religious Zionist Rabbis and Educators. They are funded through three lo five years of study in Israel to obtain the necessary qualifications with the expectation they return lo the UK live and work in our communities, partner organisalions and schools. Page 26
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Statement of funds (continued) statement of funds - prior year Balance at 31 December 2022 Balance al 1 January 2022 Incon7e Expenditure Unrestricted funds General Funds - all funds 190,305 706, 173 (1,094,491) (198,013) Restrlcted funds Chidon Hatsnach Mizrachi Fellowship Programme 697 9,040 16,035 17,720 f13,425) 3.307 26, 760 9,737 33, 755 (13,425) 30,067 Total of funds 200.042 739,928 fl, 107,916) (167.946) 15. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 2,727 114,8061 1350,4701 114,8051 2.727 25.288 1350,4701 114.8051 40,094 Totsl 1377,3541 40,094 {337.2601 Page 27
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Analysis of net assets between funds {continuedl Analysis of net assets between funds - prior year Unrestricted funds 2022 Reslricled funds 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 2.047 45,779 (220.893) {24,946J 2.047 30,067 75,846 (220,893) (24.946) Total (198,013) 30,067 (167,946) 16. Re¢on¢iliation of net movement in fvnds to net cash flow from operating activities 2023 2022 Nel expenditure for the year las per Slalement of Financial Aclivitiesl 1169,3141 (367,988) Adjustments for: Depreciation charges Decreasellincreasel in debtors Increase in creditors 1,566 (11,9751 79,326 143, 796 59,969 Net cash used in operating activities 1100,3971 (164.223) 17. Analysis of cash and cash equivalents 2023 2022 Cash in h8nd 10,259 72, 792 Total cash and cash equivalents 10,259 72. 792 Page 28
MIZRACHI IUKI ISRAEL SUPPORT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. Analysis of changes in net debt At1 January 2023 Cash flows At31 December 2023 Cash al bank and in hand Debt due within 1 year Debt due after 1 year 72,792 1109.8911 {24,9461 162.5331 150.2511 10,141 10.259 (160.1421 114,8051 {62.0451 {102,6431 1164.6881 19. Related party transactions Included in other creditors is a balance of £Nil 12022.. £5051 owed to Rabbi Andrew Shaw, the Chief Executive Officer. During the year, donations tolalling £272,504 12022.. £368,000) were received from the trustees and companies owned by the trustees. Included in other loans is a balance of £150,00012022.' £100,000) owed to a Iruslee. Page 29