Charity registration number 1139320
MIFAL HACHESED VEHATZEDOKOH
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
MIFAL HACHESED VEHATZEDOKOH
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr Y Sprung Mr N Spitzer Mrs M Sprung Charity number 1139320 Principal address 9 Davis Court Saw Mill Way London N16 6AG Auditor F M C B 3rd Floor Hathaway House Popes Drive Finchley London N3 1QF
MIFAL HACHESED VEHATZEDOKOH
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent auditor's report | 4 - 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of cash flows | 9 |
| Notes to the financial statements | 10 - 13 |
MIFAL HACHESED VEHATZEDOKOH
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
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 deed of trust dated 1 December 2010, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019).
Objectives and activities
The charity's objects are to advance the orthodox Jewish faith, to advance orthodox Jewish religious education, to relieve poverty, sickness and infirmity amongst members of the Jewish faith and for such other purposes as are for the public benefit and recognised as charitable in accordance with the laws of England and Wales.
The charity achieves its objectives principally by collecting voluntary donations and using them to pay grants. Grants are paid to orthodox Jewish institutions and individuals.
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Grants paid to institutions can be to advance religious education and/or the relief of poverty, sickness and infirmity.
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Grants paid to individuals are for the relief of poverty, sickness and infirmity.
The charity aims to maximise the donations it receives thereby increasing the number of grants it can pay. Donations are paid as grants as they are received.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and in setting grant making policy.
Achievements and performance
The charity has continued making grants in accordance with its objectives and activities. The trustees are satisfied with the activities of the charity and the amount paid in grants.
In the year the charity made 51 grants to institutions amounting to £278,473 (2022: 86 grants amounting to £349,481) and 1,472 grants to individuals amounting to £5,173,582 (2022: 1,272 grants amounting to £4,318,902).
Fund Raising
The charity puts potential beneficiaries in contact with possible donors and they decide whether to sponsor individuals. Donors tend to be regular supporters of the charity. Donors also contribute to the charity to support the sponsorship of religious institutions. The charity has not received any complaints regarding its fund raising activities.
Financial review
Total incoming resources during the year amounted to £5,439,490 (2022: £4,789,928) which is attributable to donations received.
Total resources expended in the year amounted to £5,460,785 (2022: £4,675,827) of which £5,452,055 (2022: £4,668,383) were grants.
At 31 December 2023 the charity had current assets of £120,031 (2022: £140,126) and creditors falling due within one year of £7,800 (2022: £6,600) giving net current assets of £112,231 (2022: £133,526), the amount of the charity's reserves.
Reserve policy
The charity has continued to support appropriate charitable causes. Funding for them is from donations which the charity distributes as they are received. The policy of the charity is to maximise the funds that it raises so that it can continue to meet its aims and objectives in the future. At 31 December 2023 the charity had unrestricted funds of £112,231 (2022: £133,526).
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MIFAL HACHESED VEHATZEDOKOH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Risk
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. The principal risk identified is a fall in donations which may prevent the charity from carrying on its activities.
Plans for the future
The trustees aim to maintain and develop the activities of the charity by ensuring that it is adequately funded and that those funds are applied towards the objectives and activities of the charity.
Structure, governance and management
The charity is registered with the Charity Commission in England and Wales (registered number 1139320). The governing document of the charity is its trust deed dated 1 December 2010.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr Y Sprung Mr N Spitzer Mrs M Sprung
The charity is managed exclusively by its trustees and the total number of trustees cannot exceed five. The trustees shall hold two ordinary meetings each year and any other meetings shall take place at their discretion. Decisions are decided by majority vote. The trustees have the power to appoint new trustees. They are appointed on the basis of the skill and experience that they can bring to the management of the charity.
The charity operates purely on a voluntary basis.
The trustees periodically evaluate possible training requirements to best suit the charity's objectives.
Y Sprung is responsible for the day to day management of the charity.
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 (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales 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 of the charity 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;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 sufficient 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 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.
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MIFAL HACHESED VEHATZEDOKOH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees' report was approved by the Board of Trustees.
Mr Y Sprung Trustee 27 October 2024
Mr N Spitzer Trustee 27 October 2024
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MIFAL HACHESED VEHATZEDOKOH
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF MIFAL HACHESED VEHATZEDOKOH
Opinion
We have audited the financial statements of Mifal Hachesed Vehatzedokoh (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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MIFAL HACHESED VEHATZEDOKOH
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MIFAL HACHESED VEHATZEDOKOH
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered information including the following:
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the nature of the charity and its environment;
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results of our enquiries of trustees and management regarding identification and assessment of the risks of irregularities;
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the internal controls and procedures established to detect and mitigate risks of fraud or non-compliance with laws and regulations;
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the legal and regulatory framework that the charity operates in;
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considering factors that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate.
As a result of considering the above we use audit procedures to respond to any potential risks. Procedures used include the following:
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reviewing the financial statement disclosures and testing supporting documentation to assess compliance with provisions of relevant laws and regulations which have a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of trustees and management to obtain an understanding of any provisions and testing the appropriateness of journal entries and other adjustments;
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evaluating the rationale of any significant transactions that are unusual or outside the normal course of activities.
In addition to the above procedures the engagement team remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above 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 would become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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MIFAL HACHESED VEHATZEDOKOH
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MIFAL HACHESED VEHATZEDOKOH
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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Suzanne Freeda BA FCA (Senior Statutory Auditor) for and on behalf of F M C B 29 October 2024
Chartered Accountants Statutory Auditor
3rd Floor Hathaway House Popes Drive Finchley London N3 1QF
F M C B is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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MIFAL HACHESED VEHATZEDOKOH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 5,439,490 | 4,789,928 |
| Expenditure on: | |||
| Charitable activities | 3 | 5,460,785 | 4,675,827 |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (21,295) | 114,101 | |
| Fund balances at 1 January 2023 | 133,526 | 19,425 | |
| Fund balances at 31 December 2023 | 112,231 | 133,526 |
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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MIFAL HACHESED VEHATZEDOKOH
BALANCE SHEET
AS AT 31 DECEMBER 2023
| Notes Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets The funds of the charity Unrestricted funds |
2023 £ - 120,031 120,031 (7,800) |
£ 112,231 112,231 112,231 |
2022 £ 50,000 90,126 140,126 (6,600) |
£ 133,526 |
|---|---|---|---|---|
| 133,526 | ||||
| 133,526 |
The financial statements were approved by the trustees on 27 October 2024
| Mr Y Sprung | Mr N Spitzer |
|---|---|
| Trustee | Trustee |
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MIFAL HACHESED VEHATZEDOKOH
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
| 2023 Notes £ Cash flows from operating activities Cash generated from operations 13 Net cash used in investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ £ 29,905 - - 29,905 90,126 120,031 |
£ 89,101 - - |
|---|---|---|
| 89,101 1,025 |
||
| 90,126 |
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MIFAL HACHESED VEHATZEDOKOH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Mifal Hachesed Vehatzedokoh is registered as a charity with the Charity Commission in England and Wales. The principal office address is Flat 9, Davis Court, Saw Mill Way, London N16 6AG.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's trust deed dated 1 December 2010, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019 ). The charity is a Public Benefit Entity as defined by FRS 102.
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 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 unless the funds have been designated for other purposes.
All the charity's funds are unrestricted, it has no restricted or endowed funds.
1.4 Income
Income is recognised when the charity is legally entitled to it, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Grants are recognised in the accounts once the application has been approved.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial instruments, which include debtors and bank balances, are measured at transaction price and subsequently carried at cost less impairment losses for bad and doubtful debts as they are receivable within one year.
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MIFAL HACHESED VEHATZEDOKOH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities which include creditors are initially recognised at transaction price and are not amortised as they are payable within one year.
2 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 5,439,490 | 4,789,928 |
| Charitable activities | ||
| 2023 | 2022 | |
| £ | £ | |
| Grant funding of activities (see note 6) | 5,452,055 | 4,668,383 |
| Share of support costs (see note 4) | 1,530 | 844 |
| Share of governance costs (see note 4) | 7,200 | 6,600 |
| 5,460,785 | 4,675,827 | |
| Costs allocated to activities | ||
| 2023 | 2022 | |
| £ | £ | |
| Bank charges | 930 | 844 |
| Legal & professional | 600 | - |
| Audit fees | 7,200 | 6,600 |
| 8,730 | 7,444 |
- 3 Charitable activities
4 Costs allocated to activities
5 Trustees
None of the trustees (or any persons connected with them) received any remuneration, expenses or benefits from the charity during the two years ended 31 December 2023.
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MIFAL HACHESED VEHATZEDOKOH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
6 Grants payable
| Grants payable | ||
|---|---|---|
| Grants to institutions: Religious colleges and charities Relief of poverty, sickness and infirmity Grants to individuals |
2023 £ 278,473 - 278,473 5,173,582 5,452,055 |
2022 £ 176,371 173,110 |
| 349,481 4,318,902 |
||
| 4,668,383 |
Grants payable are in accordance with the objectives and activities of the charity.
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Grants to institutions are for the advancement of religious education and the relief of poverty, sickness and infirmity amongst the Jewish faith.
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Grants to individuals are to members of the Jewish faith for the relief of poverty, sickness and infirmity.
Within the grants to institutions are payments to Yeshiva Darkei Chaim totalling £125,000. All other grants to institutions were under £30,000. A full list of these grants is available upon request.
7 Employees
There were no employees during the two years ended 31 December 2023.
8 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
9 Debtors
| 9 Debtors |
||
|---|---|---|
| Amounts falling due within one year: Other debtors 10 Creditors: amounts falling due within one year Accruals |
2023 £ - 2023 £ 7,800 |
2022 £ 50,000 |
| 2022 £ 6,600 |
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MIFAL HACHESED VEHATZEDOKOH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
11 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.
| At General funds Previous year: At General funds |
1 January 2023 Incoming resources Resources expended At 31 December 2023 £ £ £ £ 133,526 5,439,490 (5,460,785) 112,231 1 January 2022 Incoming resources Resources expended At 31 December 2022 £ £ £ £ 19,425 4,789,928 (4,675,827) 133,526 |
|---|---|
12 Related party transactions
Transactions with related parties
During the year the charity entered into the following transactions with related parties:
The charity paid grants to Lev Echod Cancer Care totalling £23,148. Mrs M Sprung is a trustee of both charities.
| 13 Cash generated from operations (Deficit)/surpus for the year Movements in working capital: Decrease/(increase) in debtors Increase in creditors Cash generated from operations |
2023 £ (21,295) 50,000 1,200 29,905 |
2022 £ 114,101 (25,000) - 89,101 |
|---|---|---|
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