## **Chazak** 

Company number 07485527 Charity number 1142937 

Trustees’ Report 

And 

Financial Statements 

For the year ended 

31 December 2022 



## **Chazak** 

|Contents|Page|
|---|---|
|Legal and administrative information|1|
|Trustees’report|2–6|
|Auditor’sreport|7-10|
|Statement of financial activities|11|
|Balance sheet|12|
|Cash flow|13|
|Notes to the financial statements|14 - 21|





## **Chazak** 

## **Legal and administrative information** 

## **Directors / Trustees** 

M Abadi Mr J Moradoff (Chairman) Mr N Hikmet 

## **Company Secretary** 

Rabbi M Levy 

## **Key Management Personnel** 

Y David 

## **Registered Office** 

64 Brent Street London NW4 2ES 

## **Details of Incorporation** 

The company was incorporated on 7 January 2011 in England under company registration number 07485527, and was registered with the Charity Commission on 19 July 2011, governed by its memorandum and articles of association, charity number 1142937. 

## **Auditors** 

## **Goldwins Limited** 

75 Maygrove Road West Hampstead London NW6 2EG 

## **Bankers** 

National Westminster Bank Plc 5 Central Circus Hendon Central London NW4 3LE 

1 



## **Chazak** 

Trustees’ Report 

The Trustees, who are also directors of the Charity for the purposes of the Companies Act, submit their report and the financial statements of Chazak Ltd (the Company) for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the company comply with current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in 2015. 

Legal and administrative information set out on page 1 forms part of this report. 

## **Structure, Governance and Finance** 

The company was incorporated on 7 January 2011 as a company limited by guarantee and registered as a charitable company on 19 July 2011. Its objectives are the advancement of education in Jewish religion, culture, history and heritage. 

The Trustees, who are also the directors for the purpose of company law, and who served during the year were M Abadi, J Moradoff and N Hikmet. None of the trustees have any beneficial interest in the company. The Trustees are the Members of the Company with limited liability to contribute £1 each in the event of a winding up of the Company. 

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The number of trustees shall not be subject to any maximum but shall not be less than two. The appointment and training of a new trustee is subject to the oversight of current trustees. 

There are no specific restrictions imposed by the governing document concerning the way the Charity can operate. 

## **Charity’s Objectives and Activities** 

Chazak was established to empower today’s younger generation of Jews to connect in a meaningful way to their Jewish heritage. The strengthening of their Jewish identity will help to develop the Jewish community and its leadership for the future. The Charity has a particular focus on drawing inspiration from the rich heritage and history of Sephardic Jewry. The Charity works alongside and in conjunction with existing communities and organisations in the field in order to further inspire young British Jews of Sephardic descent with a pride and commitment to their culture, heritage and continuity. 

The Charity has built an excellent working relationship with a variety of Jewish schools in London, providing classes on a daily and weekly basis, as well as educational events at Synagogues, private houses and in social settings. 

2 



## **Chazak** 

Trustees’ Report (continued) 

## **Public Benefit** 

The Trustees acknowledge the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance on public benefit. All activities undertaken by Chazak are for the public benefit. With a focus on providing Jewish culture, identity, history and heritage, the organisation’s operation is very much geared to providing benefit to the Jewish and wider community as is highlighted by the activities reported herein. By sharing with today’s generation of Jews an understanding of their roots and history, the Charity aims to instill a sense of moral responsibility and leadership within society as a whole. This will also continue to be central to its future plans. 

## **Achievements and Performance** 

Chazak has recovered and grown its full programming following the Covid-19 pandemic. 

The Beis Hamidrash at the Post Office on Brent Street remains a significant learning centre for students and Young Professionals. Chazak also continues to run a community centre at 64 Brent Street. This Centre has been used for a range of events, including programmes, classes and activities for schools, students of bar and bar mitzvah age, sixth formers, university students and adult groups. 

The main achievements of the Charity in the year under review include: 

• Teaching weekly classes in Hasmonean Boys’ and Girls’ School, JFS, Immanuel College. 

• Providing classes and events in a variety of local Synagogues, including Spanish & Portuguese (Lauderdale Rd), Od Yosef Hai, Tiferet Eyal, Anshei Shalom, Porat Yosef, Heichal Leah, and Ohel David. 

• Delivering classes to a variety of audiences at private homes across London. 

• Delivering the Chazak Ladies Academy with shirium and programmes on Mental Health , Torah and Cooking 

• Growing the Chazak Bet Hamidrash on Brampton Grove, with daily prayer services, with classes for participants either before or after prayers. 

• Establishing The Warehouse – Mental health programming for young people as well as sefl defence classes. 

Taking into account all of the events and classes provided, the Charity is impacting on the lives of approximately 17,000 young and older people every year (approximately 65,000 participations annually) with many of those having daily contact with Chazak’s inspirational programmes. 

3 



## **Chazak** 

Trustees’ Report (continued) 

## **Financial Review** 

Chazak generated a deficit of £78,840 (2021: surplus of £186,488) during the year. It was able to generate a significant increase in donations and gifts of £1,225,848 (2021: £945,197) in anticipation of the expansion of programmes in 2023. Expenditure in 2022 was £1,364,383 (2021, £874,324). The centre in Los Angeles and New York continued to grow, based on income raised in USA. With the level of reserves brought forward at 1 January 2022 the Trustees have confidence to continue invest in a range of programmes to benefit the community during 2023. 

Chazak is supported by a broad spectrum of donors from across the community, ranging from grassroots student-level program participants and alumni to a number of philanthropists who partner with our charity and help encourage our activities. 

Most fundraising is done through direct relationships with our partners and through effective communication of the importance of our work to the wider audience of our supporters. 

All Chazak expenditure is focused on creating the wide range of successful high quality educational courses and popular, impactful activities that deliver our stated charitable objectives. 

## **Fundraising** 

Chazak is committed to the highest standards in fundraising. At all times it aims to ensure that its processes and staff are respectful, open, honest and accountable to our supporters and the public. 

Chazak is a medium sized charity that principally raises funds from individuals, family trusts and foundations, and companies who have a connection with and support the work of the Charity. Its approach is generally on a personal level, but the Charity also raises funds through community events and activities. 

Fundraising approaches made by Chazak are personal and targeted, focussed on those individuals and institutions who have expressed interest in its work. Chazak does not engage in large scale fundraising activities like mass mailings, unsolicited telephone fundraising or door-to-door campaigns. 

Chazak has a small fundraising team. The Chief Executive is responsible for the day to day management of fundraising activities. The Trustees provide oversight of fundraising strategy and delivery. The Fundraising Team receive regular training and guidance and aim to adhere to methods of best practise including the Fundraising Regulator’s Code of Fundraising Practice. 

Under no circumstances does Chazak share personal information of its supporters for the purposes of third party marketing or processing. 

There have been no complaints about fundraising activities reported in the year to 31 December 2022, or subsequently. 

Chazak has not used third party organisations for its fundraising activities during 2022. 

4 



## **Chazak** 

Trustees’ Report (continued) 

## **Key Risks and Uncertainties** 

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. A reduction in donor base could cause cash flow issues; any delayed receipt of pledged donations income could also potentially cause cash flow issues. The major risks facing the Charity are reviewed regularly at management meetings. Regular reviews of cash flow projections and budget forecasts are also undertaken, as well as a continual drive to manage expenditure. 

## **Plans for the Future** 

The Trustees plan to continue with the current programmes including expanding our Centres of Learning and Ladies On Line courses and to develop further relationships with schools and synagogues. 

Having opened an international branch in Los Angeles and New York, Chazak has started planning international events bringing together the three branches. 

## **Reserves Policy** 

Chazak needs free reserves to enable it to fulfil its charitable obligations and commitments that it enters into. The Charity also requires reserves to ensure continuance of these obligations in the eventuality of any unexpected revenue shortfall. At 31 December 2022 free reserves were £320,401 (2021: £387,035). The Trustees aim for the Charity to hold free reserves equal to not less than 3 months of normal running costs, approximately £175,000. 

The Trustees are satisfied that the level of Free Reserves is adequate to deliver adjusted programmes and resources. The Board will continue to review the Charity’s reserves and its policy annually; more frequently if circumstances dictate. 

5 



## **Chazak** 

Trustees’ Report (continued) 

## **Trustees’ Responsibilities in Relation to the Accounts** 

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. 

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Trustees are required to: 

a. select suitable accounting policies and then apply them consistently; 

b. make judgements and estimates that are reasonable and prudent; 

c. follow applicable UK accounting standards and the Statement of Recommended Practice, subject to any departures disclosed and explained in the accounts; 

d. prepare the accounts 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 are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and was approved by the Trustees on 23 October 2023 and signed on their behalf by: 

## **J Moradoff Trustee** 

6 



## **Independent Auditor’s Report** 

## **To the members of Chazak** 

## **Opinion** 

We have audited the financial statements of Chazak for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, statement of cash flows and the related notes. 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). 

## **Opinion on financial statements** 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended: 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 Auditorʼs 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 FRCʼs 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 directors with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditorʼs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

7 



## **Independent Auditor’s Report** 

## **To the members of Chazak** 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinion on other matter prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ report (incorporating the directors’ report) have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of the trustees** 

As explained more fully in the Trustees’ Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

8 



## **Independent Auditor’s Report** 

## **To the members of Chazak** 

In preparing the financial statements, the trustees are responsible for assessing the Charityʼs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. 

## **Our responsibilities for the audit of the financial statements** 

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 auditorʼs 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. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: 

- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to: 

   - Detecting, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; 

   - Detecting of the risks of fraud and responding whether they have knowledge of any actual or suspected fraud; 

   - The internal controls in place to mitigate risks related to fraud or non-compliance with laws and regulations. 

- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. 

- We performed analytical procedures to detect any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor’s report. 

9 



## **Independent Auditor’s Report** 

## **To the members of Chazak** 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the charity’s members 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 members as a body, for our audit work, for this report, or for the opinions we have formed. 

**Anthony Epton (Senior Statutory Auditor) for and on behalf of Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London  NW6 2EG** 

23 October 2023 

10 



## **Chazak** 

## **Statement of financial activities** 

## (incorporating an income and expenditure account) 

## **For the year ended 31 December 2022** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>**3**<br>Charitable activities:<br>**4**<br>Participant payments<br>Job Retention Scheme Grant income<br>Kick Start grant income<br>Investment income<br>**5**<br>Other income<br>**6**<br>**Total income**<br>**Expenditure on:**<br>**7**<br>Raising funds:<br>Donor fundraising costs<br>Costs of Fundraising Campaign<br>Charitable activities:<br>Jewish education<br>**Total expenditure**<br>Net gains / (losses) on investments<br>**8**<br>Transfers between funds<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**<br>**Net (expenditure)/income for the year**<br>**Net (expenditure)/income before net gains /**<br>**(losses) on investments**|**Unrestricted**<br>**funds**<br>**£**<br>1,225,848<br>-<br>-<br>22,225<br>5,850<br>37,563<br>1,291,486<br>-<br>5,943<br>1,364,383<br>1,370,326<br>-<br>(78,840)<br>-<br>(78,840)<br>514,609<br>435,769<br>(78,840)|**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>**-**<br>-<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**|**2022**<br>**Total**<br>**funds**<br>**£**<br>**1,225,848**<br>**-**<br>**-**<br>**22,225**<br>**5,850**<br>**37,563**<br>**1,291,486**<br>**-**<br>**5,943**<br>**1,364,383**<br>**1,370,326**<br>**(78,840)**<br>**-**<br>**(78,840)**<br>**-**<br>**(78,840)**<br>**514,609**<br>**435,769**|2021<br>Total<br>funds<br>£<br>945,197<br>57,212<br>51,027<br>6,522<br>-<br>32,451|
|---|---|---|---|---|
|||||1,092,409|
|||||11,931<br>19,666<br>874,324|
|||||905,921|
|||||-<br>186,488|
|||||186,488<br>-|
|||||186,488<br>328,121|
|||||514,609|



All of the above results are derived from continuing activities. 

The attached notes form part of these financial statements. 

11 



**Chazak Balance sheet As at 31 December 2022** 

|**Note**<br>**Fixed assets:**<br>**11**<br>**Current assets:**<br>**12**<br>**Liabilities:**<br>**13**<br>**14**<br>**15**<br>Total unrestricted funds<br>Debtors<br>Unrestricted funds:<br>**Funds**<br>**Total funds**<br>Cash at bank and in hand<br>Creditors: amounts falling due within one year<br>**Net current assets**<br>**Total net assets**<br>Fund accounting<br>Tangible assets|**2022**<br>**£**<br>**351,074**<br>**58,779**|**2022**<br>**£**<br>**115,368**|**2021**<br>£<br>58,910<br>364,510|**2021**<br>£<br>127,573|
|---|---|---|---|---|
|||**115,368**<br>**320,401**||127,573<br>387,036|
||**409,853**<br>**89,452**||423,420<br>36,384||
||**435,769**||514,609||
|||**435,769**||514,609|
|||**435,769**||514,609|
||||||
|||**435,769**||514,609|



The financial statements have been prepared in accordance with the special provisions for small companies under Part15 of the Companies Act 2006. 

Approved by the trustees on 23 October 2023 

and signed on their behalf by: 

## **J Moradoff Trustee** 

12 



**Chazak Statement of cash flows For the year ended 31 December 2022** 

|**Chazak**<br>**For theyear ended 31 December 2022**<br>**Statement of cash flows**|**Chazak**<br>**For theyear ended 31 December 2022**<br>**Statement of cash flows**||||
|---|---|---|---|---|
|**Note**<br>**2022**<br>**£**<br>**Cash flows from operating activities:**<br>Net cash provided by / (used in) operating activities<br>**16**<br>**Cash flows from investing activities:**<br>Purchase of property, plant and equipment<br>(14,420)<br>Increase in funds from credit card loans<br>-<br>**Cash provided by / (used in) investing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>**17**<br>Change in cash and cash equivalents due to exchange<br>rate movements||**2022**<br>**£**<br>(291,311)<br>(14,420)<br>(305,731)<br>364,510<br>-|**2021**<br>£<br>(48,472)<br>3,980|**2021**<br>£<br>222,154<br>(44,492)<br>177,662<br>186,848<br>-|
||||||
|||58,779||364,510|



13 



**Chazak Notes to the financial statements For the year ended 31 December 2022** 

## **1 Accounting policies** 

## **a) Basis of preparation** 

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP FRS 102) and the Companies Act 2006. 

The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. 

## **b) Going concern** 

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

## **c) Income** 

Donations are accounted for when the Charity becomes entitled to the donation and any conditions for receipt are met. 

Donations from school partners represent voluntary contributions towards the running costs of the Charity received from schools at which the Charity provides events and classes. Other income includes rental income earned from renting out residential accommodation within its building. 

## **d) Fund accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity. 

## **e) Expenditure and irrecoverable VAT** 

Cost of fundraising activities are those costs incurred in attracting voluntary income. 

Charitable activities include expenditure associated with the delivery of its activities and include both the direct costs and support costs relating to these activities. 

Support costs have been allocated to the expenditure categories based on the management’s estimate of the proportion of time and resources consumed by each of the key activities of the Charity. 

## **f) Tangible fixed assets** 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

Improvements to leasehold property - 10% straight line on Fixtures and fittings - 10% straight line on Motor vehicles - 25% straight line on 

Additions to tangible fixed assets of less than £1,000 are treated as an expense. 

## **g) Debtors** 

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## **h) Cash at bank and in hand** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

14 



**Chazak Notes to the financial statements For the year ended 31 December 2022** 

## **1 Accounting policies (continued)** 

## **i) Creditors and provisions** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **j) Government Grants** 

Grants are accounted for under the performance model as permitted by the Charity SORP. Coronavirus Job Retention Scheme grant income is therefore recognised on a straight line basis over the furlough period for each relevant employee. Income from Kick Start job creation scheme is recognised as grants are received. 

## **k) Financial Instruments** 

The Charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. 

## **l) Key Judgements and Estimates** 

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.  The estimates and underlying 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 on-going basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods. 

The trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty. 

Having reviewed the financial position the trustees consider that there are no material uncertainities about the Charity’s ability to continue as a going concern and have reasonable expectations that the Charity has adequate resources to continue its changed activities for the foreseeable future. Accordingly they continue to adopt the going concern basis of accounting in preparing the annual financial statements. 

15 



## **Chazak** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2022** 

|**Chazak**<br>**Notes to the financial statements**<br>**For theyear ended 31 December 2022**||||
|---|---|---|---|
|**2**<br>**Detailed comparatives for the statement of financial activities**<br>**2021**<br>£<br>**Income from:**<br>Donations and legacies<br>945,197<br>58779<br>Charitable activities:<br>Participant payments<br>57,212<br>Job Retention Scheme Grant income<br>51,027<br>Kick Start grant income<br>6,522<br>Other income<br>32,451<br>**Total income**<br>1,092,409<br>**Expenditure on:**<br>Raising funds<br>31,597<br>Charitable activities:<br>Jewish education<br>874,324<br>**Total expenditure**<br>905,921<br>186,488<br>Net gains / (losses) on investments<br>-<br>**Net income / expenditure**<br>186,488<br>Transfers between funds<br>-<br>**Net movement in funds**<br>186,488<br>**Reconciliation of funds:**<br>Total funds brought forward<br>328,121<br>**Total funds carried forward**<br>514,609<br>**3**<br>**Income from donations and legacies**<br>£<br>£<br>Donations and legacies<br>1,225,848<br>-<br>**Total**<br>1,225,848<br>**-**<br>**4**<br>**Income from charitable activities**<br>Unrestricted<br>£<br>£<br>Participant payments<br>-<br>-<br>Job Retention Scheme Grant income<br>-<br>-<br>Kick Start grant income<br>22,225<br>-<br>**Total**<br>22,225<br>-<br>**5**<br>**Investment income**<br>Unrestricted<br>£<br>£<br>Rental income<br>5,850<br>-<br>**Total**<br>5,850<br>-<br>**6**<br>**Other income**<br>Unrestricted<br>£<br>£<br>Other income<br>37,563<br>-<br>**Total**<br>37,563<br>-<br>Restricted<br>Restricted<br>Restricted<br>Unrestricted<br>**Net income / expenditure before gains /**<br>**(losses) on investments**<br>**Unrestricted**<br>Restricted|**2021**<br>£<br>-<br>-<br>-<br>-<br>-<br>**Restricted**|**1021**<br>**Total**<br>£<br>945,197<br>57,212<br>51,027<br>6,522<br>32,451<br>1,092,409<br>31,597<br>874,324<br>905,921<br>186,488<br>**-**<br>186,488<br>**-**<br>186,488<br>328,121<br>514,609<br>2021<br>Total<br>£<br>£<br>£<br>945,197<br>-<br>945,197<br>**945,197**<br>**-**<br>**945,197**<br>2021<br>Unrestricted<br>Total<br>£<br>£<br>£<br>57,212<br>-<br>57,212<br>51,027<br>-<br>51,027<br>6,522<br>-<br>6,522<br>114,761<br>-<br>114,761<br>2021<br>Unrestricted<br>Total<br>£<br>£<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>2021<br>Unrestricted<br>Total<br>£<br>£<br>£<br>32,451<br>-<br>32,451<br>32,451<br>-<br>32,451<br>Restricted<br>Unrestricted<br>Restricted<br>Restricted<br>Restricted||
||-|||
||-<br>-|||
||-|||
||-<br>-|||
||-<br>-|||
||-<br>-|||
||-|||
||**2022**<br>**Total**<br>**£**<br>**1,225,848**|||
||**1,225,848**|**945,197**||
||**2022**<br>**Total**<br>**£**<br>**-**<br>**-**<br>**22,225**|||
||**22,225**|114,761||
||**2022**<br>**Total**<br>**£**<br>**5,850**|||
||**5,850**|-||
||**2022**<br>**Total**<br>**£**<br>**37,563**|||
||**37,563**|32,451|32,451|



16 



**Chazak Notes to the financial statements For the year ended 31 December 2022** 

## **7 Analysis of expenditure** 

|**Analysis of expenditure**||||||
|---|---|---|---|---|---|
|Basis of<br>allocation<br>Donor fundraising costs<br>Direct<br>Costs of Fundraising Campaign<br>Direct<br>Staff costs<br>Direct<br>Programme & trip expenditure<br>Direct<br>Outsource staffing<br>Direct<br>General office<br>Direct<br>Audit fee<br>Direct<br>Support costs<br>**Total expenditure 2022**<br>Total expenditure 2021|Cost of raising<br>funds<br>General<br>-<br>5,943<br>-<br>-<br>-<br>-<br>-<br>5,943<br>-<br>**5,943**<br>31,597|Charitable<br>activities|Support costs<br>£<br>-<br>-<br>-<br>-<br>-<br>513,406<br>5,040<br>518,446<br>(518,446)<br>**-**<br>-|**2022 Total**<br>**£**<br>**-**<br>**5,943**<br>**378,961**<br>**392,185**<br>**74,791**<br>**513,406**<br>**5,040**<br>**1,370,326**<br>-<br>**1,370,326**<br>-|2021 Total<br>£<br>11,931<br>19,666<br>420,872<br>182,708<br>62,078<br>206,987<br>1,679|
|||Jewish<br>education<br>£<br>-<br>-<br>378,961<br>392,185<br>74,791<br>-<br>-<br>845,937<br>518,446<br>**1,364,383**<br>874,324||||
||||||905,921<br>-|
||||||**-**|
||||||905,921|



Of the total expenditure, £1,370,326 was unrestricted (2021: £905,921). 

## **7a Analysis of expenditure (prior year)** 

|**Analysis of expenditure (prior year)**||||||
|---|---|---|---|---|---|
|Basis of<br>allocation<br>Donor fundraising costs<br>Direct<br>Costs of Fundraising Campaign<br>Direct<br>Staff costs<br>Direct<br>Programme & trip expenditure<br>Direct<br>Outsource staffing<br>Direct<br>General office<br>Direct<br>Audit fee<br>Direct<br>**Total expenditure 2021**<br>Total expenditure 2020|Cost of raising<br>funds<br>General<br>11,931<br>19,666<br>-<br>-<br>-<br>-<br>-<br>31,597<br>-<br>**31,597**<br>**-**|Charitable<br>activities|Support costs<br>£<br>-<br>-<br>34,610<br>-<br>-<br>206,987<br>1,679<br>243,276<br>(243,276)<br>**-**<br>**-**|**2021 Total**<br>**£**<br>**11,931**<br>**19,666**<br>**420,872**<br>**182,708**<br>**62,078**<br>**206,987**<br>**1,679**<br>**905,921**<br>-<br>**905,921**<br>**-**|2020 Total<br>£<br>5,062<br>-<br>223,772<br>98,581<br>90,296<br>164,627<br>1,200|
|||Jewish<br>education<br>£<br>-<br>-<br>386,262<br>182,708<br>62,078<br>-<br>-<br>631,048<br>243,276<br>**874,324**<br>**583,538**||||
||||||583,538<br>-|
||||||**-**|
||||||**583,538**|



Of the total expenditure, £905,921 was unrestricted (2020: £583,538). 

17 



**Chazak Notes to the financial statements For the year ended 31 December 2022** 

## **8 Net income / (expenditure) for the year** 

|This is stated after charging / (crediting):<br>Operating lease rentals:<br>Property<br>Depreciation<br>Auditor's remuneration:<br>Audit fees|**2022**<br>**£**<br>**111,125**<br>**26,625**<br>**4,500**|**2021**<br>**£**<br>51,200<br>24,882<br>1,679|
|---|---|---|



## **9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** 

|Staff costs were as follows:<br>Salaries and wages<br>Social security costs<br>Employer`s pension|**2022**<br>**£**<br>**354,509**<br>**19,275**<br>**5,177**|2021<br>£<br>396,059<br>21,001<br>3,812|
|---|---|---|
||**378,961**|420,872|



The total remuneration of the key management personnel were £43,494 (2021: £82,829). No employee received salaries at a rate of more than £60,000 per annum. 

The charity trustees were not paid or received any other benefits from employment with the Company in the year (2021: Nil). Neither were they reimbursed expenses during the year (2021: Nil). No charity trustee received payment for professional or other services supplied to the charity (2021: Nil). 

## **Staff numbers** 

The average number of employees (head count based on number of staff employed) during the year was as follows: 

|Education<br>Support|**2022**<br>**No.**<br>**5**<br>**2**|2021<br>No.<br>5<br>2|
|---|---|---|
||**7**|7|



## **10 Taxation** 

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 

18 



**Chazak** 

## **Notes to the financial statements For the year ended 31 December 2022** 

|**11**<br>**Tangible fixed assets**<br>**Cost**<br>At the start of the year<br>Additions in year<br>Disposals in year<br>At the end of the year<br>**Depreciation**<br>At the start of the year<br>Charge for the year<br>Eliminated on disposal<br>At the end of the year<br>**Net book value**<br>**At the end of the year**<br>At the start of the year<br>All of the above assets are used for charitable purposes.<br>**12**<br>**Debtors**<br>Trade debtors<br>Other debtors<br>**13**<br>**Creditors: amounts falling due within one year**<br>Trade creditors<br>Bank Credit cards<br>Other creditors<br>Taxation and social security<br>Accruals and deferred income|£<br>216,486<br>13,920<br>-<br>Leasehold<br>Improvement|£<br>44,083<br>500<br>-<br><br>Fixtures and<br>fittings|£<br>5,500<br>-<br>-<br>Motor Vehicle|**Total**<br>**£**<br>**266,069**<br>**14,420**<br>**-**|
|---|---|---|---|---|
||230,406|~~44,583~~|5,500|**280,489**|
||116,366<br>23,041<br>-|21,786<br>3,240<br>-<br>|344<br>344<br>-|**138,496**<br>**26,625**<br>**-**|
||139,407|~~25,026~~|688|**165,121**|
||90,999|19,557|4,812|**115,368**|
||100,120|22,297|5,156|**127,573**|
||||**2022**<br>**£**<br>**6,590**<br>**344,484**|2021<br>£<br>-<br>58,910|
||||**351,074**|58,910|
||||**2022**<br>**£**<br>**73,959**<br>**7,393**<br>**650**<br>**4,650**<br>**2,800**|2021<br>£<br>12,803<br>5,484<br>1,526<br>13,121<br>3,450|
||||**89,452**|36,384|



19 



**Chazak** 

## **Notes to the financial statements For the year ended 31 December 2022** 

## **14 Analysis of net assets between funds** 

|Tangible fixed assets<br>Net current assets<br>**Net assets at the end of the year**<br>**14a Analysis of net assets between funds (prior year)**<br>Tangible fixed assets<br>Net current assets<br>**Net assets at the end of the year**<br>**15**<br>**Movements in funds**<br>£<br>**Unrestricted funds:**<br>General funds<br>**514,609**<br>**Total unrestricted funds**<br>**514,609**<br>**15a Movements in funds (prior year)**<br>£<br>**Unrestricted funds:**<br>General funds<br>328,121<br>**Total unrestricted funds**<br>**328,121**<br>At the start<br>of the year<br>At the start<br>of the year|Tangible fixed assets<br>Net current assets<br>**Net assets at the end of the year**<br>**14a Analysis of net assets between funds (prior year)**<br>Tangible fixed assets<br>Net current assets<br>**Net assets at the end of the year**<br>**15**<br>**Movements in funds**<br>£<br>**Unrestricted funds:**<br>General funds<br>**514,609**<br>**Total unrestricted funds**<br>**514,609**<br>**15a Movements in funds (prior year)**<br>£<br>**Unrestricted funds:**<br>General funds<br>328,121<br>**Total unrestricted funds**<br>**328,121**<br>At the start<br>of the year<br>At the start<br>of the year|General<br>unrestricted<br>£<br>115,368<br>320,401|Designated<br>£<br>-<br>-|Restricted<br>£<br>-<br>-|**Total    funds**<br>**£**<br>**115,368**<br>**320,401**|
|---|---|---|---|---|---|
|||435,769|-|**-**|**435,769**|
|||General<br>unrestricted<br>£<br>127,573<br>387,036|Designated<br>£<br>-<br>-|Restricted<br>£<br>-<br>-|**Total    funds**<br>**£**<br>**127,573**<br>**387,036**|
|||514,609|-|**-**|**514,609**|
|||£<br>1,291,486<br>Incoming<br>resources &<br>gains|£<br>(1,370,326)<br>Outgoing<br>resources &<br>losses|Transfers<br>£<br>-|**£**<br>**435,769**<br>**At the end of**<br>**the year**|
||**514,609**|**1,291,486**|**(1,370,326)**|**-**|**435,769**|
||£<br>328,121<br>At the start<br>of the year|£<br>1,092,409<br>Incoming<br>resources &<br>gains|£<br>(905,921)<br>Outgoing<br>resources &<br>losses|Transfers<br>£<br>-|**£**<br>514,609<br>**At the end of**<br>**the year**|
||**328,121**|**1,092,409**|**(905,921)**|**-**|**514,609**|



20 



**Chazak Notes to the financial statements For the year ended 31 December 2022** 

## **16 Reconciliation of net income / (expenditure) to net cash flow from operating activities** 

|**Net (expenditure)/ income for the reporting period**<br>**(as per the statement of financial activities)**<br>Depreciation<br>(Increase)/ decrease in debtors<br>Increase/ (decrease) in creditors<br>**Net cash provided by / (used in) operating activities**|**2022**<br>**£**<br>**(78,840)**<br>**26,625**<br>**(292,164)**<br>**53,068**|2021<br>£<br>186,488<br>24,882<br>1,673<br>9,111|
|---|---|---|
||**(291,311)**|222,154|



## **17 Analysis of cash and cash equivalents** 

|**Analysis of cash and cash equivalents**<br>Cash at bank and in hand<br>**Total cash and cash equivalents**|£<br>364,510<br>At 1 January<br>2022|Cash flows<br>£<br>(305,731)|£<br>-<br>Other changes|**£**<br>**58,779**<br>**At 31**<br>**December**<br>**2022**|
|---|---|---|---|---|
||364,510|(305,731)|**-**|**58,779**|



## **18 Operating lease commitments** 

Total future minimum lease payments under non-cancellable operating leases are as follows: 

|Less than 1 year<br>1 - 5 years|**2022**<br>2021<br>**£**<br>£<br>**52,500**<br>119,475<br>**-**<br>52,500<br>**52,500**<br>171,975<br>Property|**2022**<br>2021<br>**£**<br>£<br>**52,500**<br>119,475<br>**-**<br>52,500<br>**52,500**<br>171,975<br>Property|
|---|---|---|
||**52,500**|171,975|



## **19 Legal status of the charity** 

The charity is a company limited by guarantee and has no share capital. 

## **20 Related party transactions** 

In January 2022 the charity made an advance of £285,000 to Rabbi Moshe Levy, to ensure his continued employment with the charity by facilitating a house purchase. The duration of the loan is 11 years with the interest rate set at 0.1%. The loan outstanding at 31 December 2022 was £266,500. 

## **21 Control** 

Up to 31 December 2021, The Company was a 100% subsidiary of Jewish Futures Trust Limited, a  limited  liability  company, registered  number  07884678  and  a  registered  charity  number 1151066. Jewish Futures Trust is involved in public education and cultural activities. From 1 January 2022 the charity become independent and the members will contribute £1 each on any evenutal winding up. 

21