Charity Registration No. 1144942
Company Registration No. 07756378 (England and Wales)
KOLEL BELZ MACHNOVKEH LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
KOLEL BELZ MACHNOVKEH LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Rabbi Y D Hershberg Rabbi J L Weiss Rabbi M Weiss Rabbi S Z Englander
Charity number 1144942 Company number 07756378 Registered office 32 Castlewood Road London N16 6DW
Independent examiner
Mr J Silver FCCA Precision Ltd 32 Castlewood Road London N16 6DW
KOLEL BELZ MACHNOVKEH 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 |
KOLEL BELZ MACHNOVKEH LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021
The trustees present their annual report and financial statements for the year ended 31 August 2021.
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 governing document, 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
The charity's objects are the advancement of the Orthodox Jewish Religion, the advancement of Orthodox Jewish education and education generally.
The charity achieves these objectives primarily through providing grants to educational institutions and individuals, and operating an academy for the learning of higher Rabbinical studies and Jewish learning for young men in the UK.
The charity is also involved in the refurbishment and running of a synagogue.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
The charity continued its philanthropic activities in support of religious educational and other charitable activities during the year.
In the year under review the charity generated income of £ 456,015 and incurred expenses of £198,462 resulting in net incoming resources of £257,553 .
Financial review
The financial position of the charity is satisfactory. The charity's statement of financial activities shows total of £ 1,178,508 as at the 31 August 2021 .
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 which will not impinge on its ability to continue its charitable activities.
Under the Trust Deed, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy.
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.
Structure, governance and management
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.
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:
Rabbi Y D Hershberg Rabbi J L Weiss Rabbi M Weiss Rabbi S Z Englander
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KOLEL BELZ MACHNOVKEH LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
The power to appoint new trustees is vested in the current board. It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures.
The day to day affairs of the charity are administered by the trustees.
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.
The trustees' r eport was approved by the Board of Trustees.
.............................. Rabbi Y D Hershberg Trustee Dated: .........................
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KOLEL BELZ MACHNOVKEH LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF KOLEL BELZ MACHNOVKEH LIMITED
I report to the trustees on my examination of the financial statements of Kolel Belz Machnovkeh Limited (the charity) for the year ended 31 August 2021.
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 , 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.
J Silver FCCA Independent Examiner Precision Ltd 32 Castlewood Road N16 6DW Dated: .........................
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KOLEL BELZ MACHNOVKEH LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds |
||
| 2021 | 2020 |
||
| Notes | £ |
£ |
|
| Income from: | |||
| Donations and legacies | 3 | 456,015 | 257,275 |
| Expenditure on: | |||
| Charitable activities | 4 | 198,462 | 193,859 |
| Net income for the year/ | |||
| Net movement in funds | 257,553 | 63,416 |
|
| Fund balances at 1 September 2020 | 920,955 | 857,539 |
|
| Fund balances at 31 August 2021 | 1,178,508 | 920,955 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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KOLEL BELZ MACHNOVKEH LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2021
| Notes Fixed assets Tangible assets 9 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 12 Net assets Income funds Unrestricted funds |
2021 £ £ 3,086,486 2,720 (295,131) (292,411) 2,794,075 (1,615,567) 1,178,508 1,178,508 1,178,508 |
2020 £ £ 2,595,014 80,862 (169,169) (88,307) 2,506,707 (1,585,752) 920,955 920,955 920,955 |
|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021.
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 .........................
..............................
Rabbi Y D Hershberg Trustee
Company Registration No. 07756378
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
Charity information
Kolel Belz Machnovkeh Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 32 Castlewood Road, London, N16 6DW.
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 a mounts 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 , not withstanding the charity's net current liabilities, due to the ongoing support from the community. 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 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 Incoming resources
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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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates .
Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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.
Freehold land and assets in the course of construction are not depreciated.
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 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 ) .
1.8 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.
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 p aymen ts 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.
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
The preparation of these financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 455,627 | 253,420 |
| Government grants | 388 | 3,855 |
| 456,015 | 257,275 |
The above grants relate to payments received under the Coronavirus Job Retention Scheme.
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
4 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| 2021 | 2020 |
|
| £ | £ |
|
| Staff costs | 16,409 | 17,114 |
| Charitable expenditure | 67,864 | 64,210 |
| Finance expense | 52,831 | 54,267 |
| 137,104 | 135,591 |
|
| Grant funding of activities (see note 5) | 60,000 | 57,000 |
| Share of governance costs (see note 6) | 1,358 | 1,268 |
| 198,462 | 193,859 |
5 Grants payable
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| 2021 | 2020 |
|
| £ | £ |
|
| Grants to institutions: | ||
| Mifal Hachesed Vehatzdokoh | 7,500 | 20,000 |
| Friends of Beis Chinuch Lebonos | - | 12,000 |
| Mercaz Hatorah Belz Machnovke | - | 10,000 |
| Care All Ltd | - | 5,000 |
| Friends of Beis Soroh Schneirer | 20,000 | - |
| 27,500 | 47,000 |
|
| Grants to individuals | 32,500 | 10,000 |
| 60,000 | 57,000 |
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
6 Support costs
| Support costs Governance costs £ £ Accountancy - 1,080 Bank charges - 278 - 1,358 Analysed between Charitable activities - 1,358 |
2021 Support costs Governance costs £ £ £ 1,080 - 1,080 278 - 188 1,358 - 1,268 1,358 - 1,268 |
2020 £ 1,080 188 1,268 1,268 |
|---|---|---|
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 3 | 3 | |
| Employment costs | 2021 | 2020 |
| £ | £ | |
| Wages and salaries | 16,409 | 17,114 |
There were no employees whose annual remuneration was more than £60,000.
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
| 9 Tangible fixed assets Cost At 1 September 2020 Additions At 31 August 2021 Carrying amount At 31 August 2021 At 31 August 2020 10 Loans and overdrafts Bank loans Payable after one year |
Freehold land and buildings £ 2,595,014 491,472 3,086,486 3,086,486 2,595,014 2021 2020 £ £ 1,402,567 1,372,752 1,402,567 1,372,752 |
|---|---|
The long-term loans are secured by fixed charges over the charity's freehold property.
11 Creditors: amounts falling due within one year
| Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2021 £ 198 48,927 243,846 2,160 295,131 |
2020 £ 145 26,000 141,944 1,080 169,169 |
|---|---|---|
Included in other creditors is an amount of £222,376 (2020: £113,076) due to entities which some of the trustees and their close family members of this charity, are also directors or trustees. Also included in other creditors is an amount of £5,000 (2020: £7,500) due to a trustee of the charity.
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KOLEL BELZ MACHNOVKEH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
12 Creditors: amounts falling due after more than one year
| Notes Bank loans 10 Other creditors |
2021 £ 1,402,567 213,000 1,615,567 |
2020 £ 1,372,752 213,000 1,585,752 |
|---|---|---|
Other creditors is an amount due to a charity which some of the trustees of this charity and their close family members are also trustees.
13 Related party transactions
During the year the charity paid £1,800 for services provided to the charity by close family members of the trustees.
Apart from the above and the related party disclosures in note 11 and 12 t here were no disclosable related party transactions during the year (2020 - none) .
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