WHITE ROCK ROSE LIMITED
REPORT & UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022
Company Number: 07680244 England & Wales
Charity Number: 1145186 England & Wales
WHITE ROCK ROSE LIMITED
CONTENTS
-
2 Company and Charity Information
-
3-4 Trustees' Report
-
5 Statement of Financial Activities 6 Balance Sheet
-
7-10 Notes to the Financial Statements 11 Independent Examiner's Report
Page 1 of 11
WHITE ROCK ROSE LIMITED
COMPANY AND CHARITY INFORMATION
Charity Name White Rock Rose Limited (or WRR Charity) Date of Incorporation 23rd June 2011 Company Number 07680244 (England & Wales) Charity Registration Number 1145186 (England & Wales) Registered on 21st December 2011
HMRC Charity Registration Number EW10538 Registered Office Bridge House Ashley Road Hale Altrincham WA14 2UT
Directors/Trustees Martin Peters Richard George Norris The Directors of the Company are its Trustees for the purposes of charity law, and throughout the Report and Financial Statements they are referred to interchangeably as Directors or Trustees. Members Martin Peters Richard George Norris Cromwell Corporate Protector Limited (from 2nd May 2023)
Independent Examiner Jeffrey Lishak FCA Jones & Partners Limited Chartered Accountants Butler House 177 - 178 Tottenham Court Road London W1T 7AF
Page 2 of 11
WHITE ROCK ROSE LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022
Structure, Governance and Management
The Charity is a Company limited by guarantee, with no share capital. It was established under a Memorandum of Association which defined its objects and powers as a charitable company.
Governance is regulated by the Company's Articles of Association.
The Trustees, who are also the Directors for the purposes of company law, serving during the year were:
Martin Peters Richard George Norris
The two member Board of Trustees manage and administer the Charity
Neither of the Trustees has any beneficial interest in the Company. The Trustees are also Members of the Company and each guarantees to contribute £1 in the event of a winding up.
Risk Management
The Trustees have assessed the major risks to which the Charity is exposed, including the situation explained in Note 12, and are satisfied that procedures are in place to mitigate exposure to them.
Objectives
The Trustees have temporarily suspended the Charity's direct operations. During the year to 31st December 2022, it continued to confine its activities to encouraging, supporting, financing and organising others in furthering the Charity's originally stated objectives, principally in Israel, that of promoting and directly assisting disadvantaged young people. This is being achieved by arranging for the Company's principal benefactor to fund the current activities directly. The Financial Statements for the year reflect the Company's position as a funding conduit between the principal benefactor and the beneficiaries, an unwanted procedure brought about by the circumstances of the legal case against the Company's former Israeli Accountant.
Covid-19
The Covid-19 Pandemic proved to be a challenge for the Company's Israeli charity worker and her volunteers in their delivery of services; however, with ingenuity and exceptional effort, services to disadvantaged young people have been maintained at much the same level. With the continued support of The Star Trust, the Company's income has not been significantly affected by the Pandemic and its financial position at 31st December 2022 is unaffected.
Appointment of Trustees
Any person admitted to be a Trustee shall, at the same time, become a member of the Company. Only persons over the age of 16 may be admitted to membership. Every applicant to membership has to sign an application form and provide such other information or evidence as the Trustees may require. Membership applications are determined within two months of the date on which they were received by the Company. The Trustees have absolute discretion to accept or reject any application and need not give their reasons for doing so.
Page 3 of 11
WHITE ROCK ROSE LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 (continued)
Public Benefit
The Trustees have taken account of the statutory reporting introduced in 2009 to illustrate how in practice the activities of the Charity meet the legal public benefit requirement. In this respect, the Trustees have noted and paid due regard to the Charity Commission's statutory guidance that is relevant to the Charity's mission, and have indicated in this report the activities which illustrate how the Charity's work fulfils its mission and the significant benefits it brings to individuals and communities in poverty areas, irrespective of their race, religion or creed.
Achievements and Performance
Although the Charity's activities were inhibited during the year, it operated satisfactorily in accord with its reduced objectives as set out in Objectives above.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. Wherever possible, it involves others, so that the Charity's funds are leveraged by money, services and personnel provided by others, with the burden of risk, safeguarding and similar issues entirely borne by such others.
Financial Review
The Statement of Financial Activities for the year is set out on Page 5 of this Report and Financial Statements.
The Trustees are satisfied with the result and the year end financial position.
Reserves Policy
It remains the policy of the Charity that the proportion of its funds, which have been designated for a specific use should be maintained at a level equivalent to between three and six months of future anticipated expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves was under pressure during the year due to the continued non-settlement of the charity's action against its Israeli Accountants which is further explained in Note 12. The Charity's principal funders are aware of the position, are supportive and agree with the Reserve Policy, and have agreed to reinstate the full six months level once the action is resolved.
Independent Examiner
For the financial year ended 31st December 2022, the Company was entitled to exemption from audit under S477 of the Companies Act 2006, relating to small companies, and the Members have not required the Company to obtain an audit of its accounts for the year in question in accordance with S476 of that Act.
The Company, being a Registered Charity, is required to have its accounts independently examined by virtue of its annual income being in excess of £25,000. The Trustees have appointed J Lishak of Jones & Partners Limited, Chartered Accountants, to carry out this function for the year ended 31st December 2022.
Signed on behalf of the Trustees by
Richard G Norris Trustee/Director
Dated …….......….......... 2023
Page 4 of 11
WHITE ROCK ROSE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022
| Notes Incoming resources Donations 3 Expenditure Expenditure on charitable activities 4 Governance and administration costs 4 Total expenditure Surplus for the year Balance brought forward Balance carried forward |
2022 £ 107,767 (105,564) (2,203) (107,767) - 125,495 £125,495 |
2021 £ 283,053 |
|---|---|---|
| (278,274) (2,779) |
||
| (281,053) | ||
| 2,000 123,495 |
||
| £125,495 |
The above Statement of Financial Activities complies with the requirements of an Income and Expenditure Account under the Companies Act 2006
The Statement includes all gains and losses recognised in the year.
All income and expenditure relate to continuing activities
The notes on pages 7 to 10 form part of these financial statements.
Page 5 of 11
WHITE ROCK ROSE LIMITED
BALANCE SHEET AS AT 31ST DECEMBER 2022
| Notes Current assets 7 & 11 Debtors Cash at bank Current liabilities 9 Net assets The funds of the Charity Unrestricted fund Total Charity funds Creditors falling due within one year |
2022 £ 73,207 56,591 129,798 (4,303) £125,495 125,495 £125,495 |
2021 £ 75,783 56,591 |
|---|---|---|
| 132,374 (6,879) |
||
| £125,495 | ||
| 125,495 | ||
| £125,495 |
These Unaudited Financial Statements have been prepared in accordance with Section 398 of the Companies Act 2006, and Section 138 of the Charities Act 2011, and are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the Annual Accounts required by the Companies Act 2006 and are for circulation to members of the Company.
For the financial year ended 31st December 2022, the Company was entitled to exemption from audit under Section 477, Companies Act 2006, and no notice has been deposited under Section 476.
The Directors acknowledge their responsibilities for ensuring that the Company keeps accounting records which comply with Section 386 of the Act, and for preparing accounts which give a true and fair view of the state of affairs of the Company as at the end of the financial period and of its net incoming and outgoing resources for the financial period in accordance with the requirements of Sections 394 and 395, and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts so applicable
Approved by the Trustees on …......................... 2023 and signed on their behalf by
Martin Peters
Trustee/Director
The notes on pages 7 to 10 form part of these financial statements
Page 6 of 11
WHITE ROCK ROSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
1) Accounting policies
The principal accounting policies adopted in the preparation of these financial statements are as follows:-
A) Basis of preparation
These 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005'), the Financial Reporting Standard 102 and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.
B) Going concern
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
C) Incoming resources
Incoming resources are included in the statement of financial activities when the company becomes entitled to the resources
D) Charitable expenditure
Charitable expenditure is accounted for on an accruals basis.
E) Foreign currencies
These financial statements are denominated in Sterling, as, in the opinion of the Directors, this is appropriate to the Company's charitable activities and its United Kingdom registrations. Transactions in foreign currencies are recorded at the rate of exchange at the end of the financial year. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. Gains and losses arising on translation, and on transactions during the year, are recorded in the statement of financial activities.
F) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are restricted funds of the Charity, which the Trustees have decided, under their discretionary powers, to set aside for a specific purpose. Restricted funds are donations which a donor has specified are to be solely used for particular area of the Charity's work or for specific projects being undertaken by the Charity.
G) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 7 of 11
WHITE ROCK ROSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
1) Accounting policies (cont'd)
H) Debtors
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
I) Creditors
Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.
J) Status
The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 2. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.
2) Taxation
The charity is exempt from UK corporation tax on its charitable activities
| 3) Incoming Resources Donations 4) Expenditure Charitable activities Donations made Governance and administration costs Accountancy fees - Independent Examiner's fees Accountancy fees - other services |
2022 £ £107,767 105,564 £105,564 2,100 103 £2,203 |
2021 £ £283,053 |
|---|---|---|
| 278,274 | ||
| £278,274 | ||
| 2,100 679 |
||
| £2,779 |
5) Analysis of donations made
The charity does not make grants to individuals. All grants are made to the following institutions in furtherance of WRR's charitable aims.
| Institution receiving grant support Kid Im Atid Tov United Service Organisation British Friends of United Hatzalah |
2022 2021 £ £ 105,564 130,126 - 74,074 - 74,074 £105,564 £278,273 |
|---|---|
Page 8 of 11
WHITE ROCK ROSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
6) Employees
The Charity has no employees (2021: £Nil), however, indirectly through a local service company, it has the services of one professional charity worker in Israel. Payment is met by the Star Trust directly.
7) Trustees
Neither of the Trustees (nor any persons directly connected with them) received any remuneration or expenses during the year (2021: £Nil).
8) Current Assets
| Cash at bank Client Account balance Donations receivable |
2022 £ 56,591 71,004 2,203 £129,798 |
2021 £ 56,591 71,004 4,779 |
|---|---|---|
| £132,374 |
The Cash at Bank is a blocked amount and linked to the court action explained in "PostBalance Sheet Events" in Note 12. The Charity's bank balance is held in the Clients Account of the former Israeli Accountants. The blocked bank account should be freed on a successful outcome to the Court Action.
9) Other Expenditure
Certain small items of administrative expenditure were paid on behalf of the Charity by benefactors.
| 10) Creditors: amounts falling due within one year Accruals 11) Fund Accounting |
2022 £ £4,303 |
2021 £ £6,879 |
|---|---|---|
At 31st December 2022 (and 31st December 2021) all funds held were unrestricted general funds to support the Charity's objectives and are held at the discretion of the Trustees
Page 9 of 11
WHITE ROCK ROSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
- 12) Post Balance Sheet Events and Potential Liability Included in Debtors is an amount of £71,004 (NIS 307,127) retained by the Company's former Israeli Accountant, without authorisation. The Accountant has issued invoices for nonexistent services to cover their retention and an alleged tax liability thereon. These invoices, which have been strongly disputed and rejected, give rise to a notional liability to the Accountant of £21,414 (NIS 102,786) which has not been included in these accounts as a liability.
A number of Court Hearings aiming to recover the unauthorised retention and extinguish the alleged liability have occurred, culminating in a stated final hearing before a Judge with experience and expertise in such matters; a Court-ordered specialist's report was presented. The Judge has asked (September 2023) for the parties to present their final representations and he will then announce his decision, no date being given, but it is considered unlikely to be immediate. The Company's Israeli Lawyers remain confident of a favourable conclusion; they consider the Specialist's Report was helpful in sustaining the Company's position. The Directors have carefully reviewed (September 2023) the position; although remaining optimistic of a full recovery, they believe they must add a note of caution. The number of hearings and the significant delays are discouraging and unhelpful, however the Directors still consider no financial provision is required in the 2022 Accounts in view of the undoubted strength of the Company's position, the favourable Expert's Report and the Lawyers' confidence of recoverability.
13) Related Party Transactions
No transactions between the Charity and related parties have occurred in the year other than as noted in these financial statements and routine transactions pursuant to the Charity's normal activities, separate disclosure of which is not required.
Martin Peters is a Director and the sole shareholder of Cromwell Corporate Protector Limited the new Member of the Company from 2nd May 2023.
Page 10 of 11
WHITE ROCK ROSE LIMITED
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022
I report on the financial statements of White Rock Rose Limited (‘the company’/ ‘the charity’) for the year ended 31 December 2022 set out on pages 5 to 10.
Respective responsibilities of Trustees and Independent Examiner
The Trustees, who are also the directors of the company for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not
Having satisfied myself that the company is not subject to audit under charity or company law and is
-
ꞏ examine the financial statements under section 145 of the Act;
-
ꞏ follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act;
-
ꞏ state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with the General Directions given by the Charities Commissioners. An examination includes a review of the accounting records kept by the charity and a
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
-
which gives me reasonable cause to believe that in any material respect the requirements:
-
(a) to keep accounting records in accordance with section 386 of the Companies Act 2006; and
-
(b) to prepare financial statements which accord with the accounting records comply with the
have not been met: or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Jeffrey Lishak FCA
Jones & Partners Limited Chartered Accountants & Statutory Auditors 2nd Floor, Butler House 177-178 Tottenham Court Road London W1T 7AF Date:
Page 11 of 11