Charity registration number 1139316
Company registration number 07428770 (England and Wales)
THE TMC TRUST LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2022
THE TMC TRUST LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Samuel Grosz |
|---|---|
| Daniel Ost | |
| Teresa Ost | |
| Charity number | 1139316 |
| Company number | 07428770 |
| Registered office | c/o 75 Maygrove Road |
| West Hampstead | |
| London | |
| NW6 2EG | |
| NW6 2EG | |
| Independent examiner | Goldwins Limited |
| 75 Maygrove Road | |
| West Hampstead | |
| London | |
| NW6 2EG |
THE TMC TRUST LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
THE TMC TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 NOVEMBER 2022
The trustees present their annual report and financial statements for the year ended 30 November 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and Articles of Association, the Companies Act 2006 and "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
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The relief of poverty particularly but not exclusively among persons of the Jewish faith in any part of the world.
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The advancement of the Jewish religion in any part of the world.
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The advancement of education of the public in any part of the world in the knowledge of the Jewish religion and Jewish history and culture.
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Such other charitable purposes for the benefit of persons particularly but not exclusively of the Jewish faith in any part of the world as the trustees shall from time to time decide.
Public benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees believe that the charity achieves a public benefit by providing these services as detailed earlier in this report.
Achievements and performance
Significant activities and achievements against objectives
The Charity has been raising funds in the form of donations and loans to assist with the building of the ‘Beis Hamedresh Kehal Chasidim’ synagogue at 213 Golders Green Road, London NW11.
During the year The Charity paid donations of £99,000 (2021: £79,000) to other charitable organisations for advancement of education and other charitable objectives.
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The current level of free reserves, being the unrestricted funds not committed or invested in tangible fixed assets, is £467,991 (2021: £362,373). Having regard to the future development of the building, the Directors have set a target level of free reserves which equates to approximately 6 months of expenditure. This will enable the Charity to continue its current activities and allow it to respond quickly in the event of an emergency. They intend to continue their fundraising efforts with a view to achieving the target level. The reserves policy is reviewed annually.
Structure, governance and management
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Samuel Grosz Daniel Ost Teresa Ost
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
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THE TMC TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
The trustees, who are also the directors of The TMC Trust Limited for the purpose 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 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 charitable company for that year.
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 Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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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 operation.
The trustees are responsible for keeping adequate accounting records that 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.
The trustees' report was approved by the Board of Trustees.
Samuel Grosz
Trustee
29 November 2023
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THE TMC TRUST LIMITED
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE TMC TRUST LIMITED
I report to the trustees on my examination of the financial statements of The TMC Trust Limited (the charity) for the year ended 30 November 2022.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Stephen Goodwin FCA CTA Goldwins Limited Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG
Dated: 29 November 2023
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THE TMC TRUST LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 93,036 | 10,800 |
| Investments | 4 | 225,790 | 221,604 |
| Total income | 318,826 | 232,404 | |
| Charitable activities | 5 | 213,208 | 204,339 |
| Net income and movement in funds | 105,618 | 28,065 | |
| Reconciliation of funds: | |||
| Fund balances at 1 December 2021 | 2,154,263 | 2,126,198 | |
| Fund balances at 30 November 2022 | 2,259,881 | 2,154,263 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THE TMC TRUST LIMITED
BALANCE SHEET
AS AT 30 NOVEMBER 2022
| Notes Fixed assets Tangible assets 11 Investment property 12 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Net assets The funds of the charity Unrestricted funds - general Unrestricted funds - Revaluation reserve |
2022 £ £ 68,155 6,375,000 6,443,155 3,016 167,444 (164,428) 6,278,727 (4,018,846) 2,259,881 467,991 1,791,890 2,259,881 |
2021 £ £ 90,874 6,375,000 6,465,874 4,000 152,090 (148,090) 6,317,784 (4,163,521) 2,154,263 362,373 1,791,890 2,154,263 |
|---|---|---|
The notes on pages 6 to 12 form part of these financial statements.
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 November 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the trustees on 29 November 2023
Samuel Grosz
Trustee
Company registration number 07428770 (England and Wales)
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2022
1 Accounting policies
Charity information
The TMC Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is c/o 75 Maygrove Road, West Hampstead, London, NW6 2EG. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to 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.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to 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 time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 93,036 | 10,800 |
4 Income from investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Rental income | 225,777 | 221,602 |
| Interest receivable | 13 | 2 |
| 225,790 | 221,604 |
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
5 Expenditure on charitable activities
| Charitable | Charitable | ||
|---|---|---|---|
| activities | activities | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Direct costs | |||
| Donations to institutions | 99,000 | 79,000 | |
| Legal and professional fees | 1,000 | 18,452 | |
| 100,000 | 97,452 | ||
| Share of support and governance costs (see note 6) | |||
| Support | 111,714 | 102,087 | |
| Governance | 1,494 | 4,800 | |
| 213,208 | 204,339 | ||
| Analysis by fund | |||
| Unrestricted funds - general | 213,208 | 204,339 | |
| 6 | Support costs allocated to activities | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Depreciation | 22,719 | 30,292 | |
| Advertisement | 150 | 576 | |
| Bank Charges | 845 | 562 | |
| Loan interest | 62,931 | 50,828 | |
| Commission | 8,954 | 7,635 | |
| Insurance | 3,980 | 3,605 | |
| Repairs and mainenance | 12,135 | 12,419 | |
| - | (3,830) | ||
| Governance costs | 1,494 | 4,800 | |
| 113,208 | 106,887 | ||
| Analysed between: | |||
| Charitable activities | 113,208 | 106,887 | |
| 7 | Net movement in funds | 2022 | 2021 |
| £ | £ | ||
| Net movement in funds is stated after charging/(crediting) | |||
| Depreciation of owned tangible fixed assets | 22,719 | 30,292 | |
| Interest payable | 62,931 | 50,828 | |
| Independent examination fees | 1,494 | 4,800 |
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
The average monthly number of employees during the year was:
| Total There were no employees whose annual remuneration was more than £60,000. |
2022 Number - |
2021 Number - |
|---|---|---|
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Tangible fixed assets
| 11 | Tangible fixed assets | |
|---|---|---|
| Fixtures and | ||
| fittings | ||
| £ | ||
| Cost | ||
| At 1 December 2021 | 307,055 | |
| At 30 November 2022 | 307,055 | |
| Depreciation and impairment | ||
| At 1 December 2021 | 216,181 | |
| Depreciation charged in the year | 22,719 | |
| At 30 November 2022 | 238,900 | |
| Carrying amount | ||
| At 30 November 2022 | 68,155 | |
| At 30 November 2021 | 90,874 | |
| All of the above assets are used for charitable purposes. | ||
| 12 | Investment property | |
| 2022 | ||
| £ | ||
| Fair value | ||
| At 1 December 2021 and 30 November 2022 | 6,375,000 |
Investment properties valuations were reviewed by the Trustees during the year after reviewing the present condition of the properties and values of similar properties in the surrounding area.
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
13 Loans and overdrafts
| Bank loans Payable within one year Payable after one year |
2022 £ 1,596,275 145,330 1,450,945 |
2021 £ 1,657,954 |
|---|---|---|
| 124,320 1,533,634 |
Bank loans are secured against the Charity's properties 213-215 Golders Green Road London NW11 9BY.
14 Creditors: amounts falling due within one year
| Notes Bank loans 13 Other creditors Accruals and deferred income Creditors: amounts falling due after more than one year Notes Bank loans 13 Other creditors |
2022 £ 145,330 11,080 11,034 167,444 2022 £ 1,450,945 2,567,901 4,018,846 |
2021 £ 124,320 12,230 15,540 |
|---|---|---|
| 152,090 | ||
| 2021 £ 1,533,634 2,629,887 |
||
| 4,163,521 |
15 Creditors: amounts falling due after more than one year
16 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 | Incoming | Resources | At 30 | |
|---|---|---|---|---|
| December | resources | expended | November | |
| 2021 | 2022 | |||
| £ | £ | £ | £ | |
| Revaluation reserves | 1,791,890 | - | - | 1,791,890 |
| General funds | 362,373 | 318,826 | (213,208) | 467,991 |
| 2,154,263 | 318,826 | (213,208) | 2,259,881 |
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THE TMC TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2022
| 16 | Unrestricted funds | (Continued) | |||
|---|---|---|---|---|---|
| Previous year: | At 1 | Incoming | Resources | At 30 | |
| December | resources | expended | November | ||
| 2020 | 2021 | ||||
| £ | £ | £ | £ | ||
| Revaluation reserves | 1,791,890 | - | - | 1,791,890 | |
| General funds | 334,308 | 232,404 | (204,339) | 362,373 | |
| 2,126,198 | 232,404 | (204,339) | 2,154,263 | ||
| 17 | Related party transactions | ||||
| As at the year end, the charity owed the | following trustees: | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Samuel Grosz | 241,537 | 272,403 | |||
| Daniel Ost | 219,480 | 219,480 |
The charity also owed to the following companies in which one or more trustees or their family members are company direcrtors:
| company direcrtors: | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Woodland Green Limited | 1,445,729 | 1,435,329 |
| Power Estates Limited | 499 | 31,800 |
| Eginaville Limited | 257,674 | 257,674 |
| Edan Properties Limited | 128,000 | 128,000 |
| Evering Estates Limited | - | 20,920 |
| Finebrick Limited | 5,750 | 5,750 |
| STO Properties Limited | 134,000 | 134,000 |
| Golden Manor Estates Limited | 10,641 | 10,641 |
| MP Lane Limited | 3,290 | 3,290 |
| HMB Trading Limited | 15,000 | 15,000 |
| SGR1 Limited | 10,701 | - |
| Skenshire Limited | 95,600 | 95,600 |
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