Registered number: 08323156 Charity number: 1151993
TIKVA UK
(A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
RPGCC Chartered Accountants & Statutory Auditor 40 Gracechurch Street London EC3V 0BT
TIKVA UK
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Trustees' responsibilities statement | 7 |
| Independent auditors' report on the financial statements | 8 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 - 24 |
TIKVA UK
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023
| Trustees | Marius Barnett |
|---|---|
| Adam Bloom | |
| Refael Kruskal | |
| Dr Anthony Moshal | |
| Company registered number 08323156 Charity registered number 1151993 Registered office 2nd Floor Lyttelton House London N2 0EF Chief executive officer Karen Bodenstein Independent auditors RPGCC Chartered Accountant & Statutory Auditor 40 Gracechurch Street London EC3V 0BT |
Page 1
TIKVA UK
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their annual report together with the audited financial statements of the Tikva UK for the year 1 January 2023 to 31 December 2023. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The charitable company is established for the general benefit of Jewish children and young people being educated at the Tikva children's homes and schools in Odessa in Ukraine, by the provision of financial and such other exclusively charitable assistance as the Trustees in their absolute discretion consider appropriate.
Tikva provides a warm, compassionate home, essential social services and a quality education. Until recently Tikva was committed to revitalising the growing Jewish community in Odessa. However, in the wake of war, our scope has broadened significantly. We’ve undertaken the monumental task of rescuing both children and elderly individuals from the ravages of the conflict in Ukraine, while simultaneously providing ongoing care for those left behind. Our work also includes the support of our refugees in Bucharest and the continued care of our alumni in Israel. The future remains uncertain.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Activities undertaken to achieve objectives
Tikva’s core mission is to care for the homeless, abandoned and abused Jewish children of Ukraine and neighbouring regions of the former Soviet Union. By providing a warm, compassionate home, essential social services and a quality education, while revitalising the growing Jewish community of Odessa. Additionally, Tikva offers its graduates the opportunity for a brighter future through university education in Odessa or immigration to Israel, where Tikva continues its educational and support services.
The charity achieves its objectives through its grant making activity to Tikva Corp, a US charity based in New York which directly supports the Jewish community in Odessa. A detailed overview of the activities carried out by Tikva Corp can be found on tikvaodessa.org.
c. Grant-making policies
The charity exclusively makes grants to Tikva Corp, an associated US charity which shares the charity's objects and for which Tikva UK is a fundraising arm.
d. Main activities undertaken to further the Charity's purposes for the public benefit
Through emergency appeals the charity is actively engaged in high profile general fundraising as well as donations raised from individuals and corporations who all had previous involvement with the charity, many of them trustees or former beneficiaries. The charity's main activity to further its objective is the support of Tikva Corp by means of grants.
Page 2
TIKVA UK
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance
a. Key performance indicators
The charity's main key performance indicator is an immediate increase in its fundraising activities to ensure the safe health and well being of the community in its exclusive care during this terrible time while keeping its costs at a low level.
b. Review of activities
The attached financial statements show the current state of finances, which the Trustees consider to be sound. It is intended that all funds generated will be donated to Tikva Corp in the US which administers all operations in Odessa.
The Trustees are in constant contact with the Tikva Odessa team, based in Romania, to monitor their progress and ascertain their financial requirements, which the charity assists in meeting.
c. Fundraising activities and income generation
The charity is actively involved in fundraising activities either through regular donations from individuals and corporations. Members of the public are only approached if the charity has had previous contact with them and are registered on its database (Raiser's Edge), for which their prior agreement is required. Potential donors are approached by email, post or newsletter and are given the opportunity to opt out from receiving any fundraising communication from the charity.
During the year ended 31 December 2023 and through to September 2024, the charity did not receive any complaints about its fundraising activities and practices.
Financial review
a. Going concern
During the year, the charity made a deficit of £179,366 (2022: surplus of £222,494) and held funds of £196,895 (2022: £376,261). Incoming resources amounted to £6,201,880 (2022: £7,702,667), which represents grants and donation, and outgoing resources amounted to £6,381,246 (2022: £7,480,173), which comprise grants to Tikva Corp, the company's sister charity in the United States, and associated fundraising and support costs which are detailed in the notes to the accounts.
All amounts represent general funds as the charity does not hold any restricted funds.
After making appropriate enquiries within the charity, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
The Trustees consider that sufficient, but not excessive, reserves should be retained to meet the commitments of the charity. The trustees consider the main commitments to be staff salaries and variable running costs which differ from month to month. For this reason, the trustees are of the opinion that reserves should not fall below £100,000.
Page 3
TIKVA UK
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
c. Principal risks and uncertainties
The Trustees have assessed the principal risks to which Tikva UK is exposed and are satisfied that systems are in place to mitigate our exposure to them.
The trustees consider the risks which the charity faces as straightforward and manageable due to the lack of complexity involved in the running of the charity and its affairs.
d. Capital projects
All our long term capital projects that had been planned for the homes are now on hold, due to the circumstances described above.
Structure, governance and management
a. Constitution
Tikva UK is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. The principal object of the company is to provide education for Jewish children and young people through Tikva children's homes and schools in Odessa in the Ukraine.
b. Methods of appointment or election of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co opted under the terms of the Articles of Association. To be considered for the role of trustee, an individual will need to have had previous involvement with and knowledge of the charity.
c. Organisational structure and decision-making policies
The Charity has been carrying on the activities of The British Friends of Tikva Odessa (Charity no. 1111996) from May 2014 onward. The Trustees believe that the merger of the two charities has been in the best interests of the objects of both charitable organisations.
British Friends of Tikva Odessa was established by a Trust Deed dated 23 May 2005. Tikva UK was registered with the Charity Commission under the number 1151993 on 13 May 2013. The Trustees confirm that they have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year.
d. Policies adopted for the induction and training of Trustees
The trustees are of the opinion that no specific training or indicution procedures are necessary for new trustees as only individuals with previous involvement with the charity are considered as trustees. The suitability for the role of trustee is reviewed by the Board on an ongoing basis.
e. Pay policy for key management personnel
The trustees of the charity are considered to be key management personnel and are not remunerated for their roles in this capacity. Other employed key management personnel receive a fixed salary, which is benchmarked against salaries in similar organisations in and around London and nationally. Key management remuneration is fixed by the Trustees. The Trustee board take the final decision on salary increases for all staff.
Page 4
TIKVA UK
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Structure, governance and management (continued)
f. Principal activities
Despite the enormous upheaval, the principal activity of the charity continues to focus on support, social, health and education, of the Jewish community from Odessa by way of grant making to Tikva Corp. There remains in Odessa, despite the situation, a core Tikva team which continues its support for the people who either chosen not to leave, cannot leave or need to be found.
Background
Our Children
Identifying Children in Need
Our children come to Tikva as young as new borns and stay until they are at least 16 years of age, emotionally and academically ready to begin life in Israel, or continue their studies at Tikva’s University Program in Odessa. These bright and inquisitive children flourish in our care, despite the fact that most arrive with medical, psychological, developmental and social difficulties due to their traumatic early experiences. Many of our children also have siblings and cousins who are reunited in our homes. Tikva strives to ensure that each child’s needs are met so that he or she can develop into a fully functioning, self sufficient adult who is then able to become a contributing member of society.
Tikva has worked tirelessly since 1994 to locate Jewish children in need from the southern regions of the former Soviet Union. Tikva reaches 25 regions throughout Ukraine, six regions in Belarus and 2 regions in Moldova.
Tikva deal with three different types of ‘Orphans’
Orphans
These children do not have parents. They are usually found in state orphanages, separated from their brothers and sisters.
Social Orphans
These children may have parents and/ or living adult relatives, but they are neglectful and abusive caretakers. The children often come to Tikva after running away from home or being abandoned by a caretaker. Tikva serves in effect as a permanent foster home for these children, assuming all custodial responsibilities. A western style or family based foster care system does not exist in Ukraine.
Extreme Poverty
These children have at least one parent or family member that would like to take care of the child, but simply cannot afford to give the child the basic necessities needed for survival. These children often stay in contact with their family even after arriving at Tikva, and continue to see them on weekends and holidays.
Tikva employs a full time staff member who is in charge of locating orphans and other children in need. ‘Need’ is defined by the same definition the Ukrainian government uses for admittance into State orphanage.
Intake process
After the child arrives at the home, a doctor and a psychologist evaluate the child and a nurse and caretaker help the child adjust to the home and school. After admission, most children stay in the home until they are at least 16 years old (end of the 10th grade).
Whilst the above background empirically explains the Tikva community and how it worked , this work continues despite the war and once members of the community, and children in particular, have been identified arrangements are made for evacuation to a safe haven .
Page 5
TIKVA UK
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Plans for future periods
The charity will continue with its emergency efforts to bring in a steady revenue to support the evacuated community. The Trustees will also continue working with many trusts and foundations and high net worth individuals to increase income from donations.
Members' liability
The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
-
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, RPGCC, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
Adam Bloom Trustee Date:
Page 6
TIKVA UK
(A company limited by guarantee)
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. 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 of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on its behalf by:
................................................ Adam Bloom Trustee Date:
Page 7
TIKVA UK
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIKVA UK
Opinion
We have audited the financial statements of Tikva UK (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 related notes, 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:
-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure 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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company'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.
n our evaluation of the directors' conclusions, we considered the risks associated with the company’s business model, including the effects arising from macro-economic uncertainties such as COVID-19 and analysed how those risks might affect the company's financial resources or ability to continue operations over the period of twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the company will continue in operation.
Page 8
TIKVA UK (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIKVA UK (CONTINUED)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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, except to the extent otherwise explicitly stated in our report, 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.
Capability of the audit to detect irregularities including fraud
We gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, compliance with Companies Act 2006 and FRS102.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
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agreement of the financial statement disclosures to underlying supporting documentation;
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enquiries of management;
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review of minutes of board meetings throughout the period; and
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obtaining an understanding of the control environment in monitoring compliance with laws and regulations.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' report has been prepared in accordance with applicable legal requirements.
Page 9
TIKVA UK
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIKVA UK (CONTINUED)
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
Responsibilities of 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 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 charitable company'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 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditors' 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 auditors' 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 is detailed in the relevant paragraph above.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
Page 10
TIKVA UK
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIKVA UK (CONTINUED)
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 charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Jeremy Tyrrell BA (Hons) FCA (senior statutory auditor) for and on behalf of
RPGCC Chartered Accountant & Statutory Auditor 40 Gracechurch Street London EC3V 0BT
Date:
Page 11
TIKVA UK
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023
| Note Income from: Donations and legacies 4 Total income Expenditure on: Raising funds 5 Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 6,201,880 6,201,880 280,399 6,100,847 6,381,246 (179,366) 376,261 (179,366) 196,895 |
Total funds 2023 £ 6,201,880 6,201,880 280,399 6,100,847 6,381,246 (179,366) 376,261 (179,366) 196,895 |
Total funds 2022 £ 7,702,667 |
|---|---|---|---|
| 7,702,667 | |||
| 116,581 7,363,592 |
|||
| 7,480,173 | |||
| 222,494 | |||
| 153,767 222,494 |
|||
| 376,261 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15 to 24 form part of these financial statements.
Page 12
TIKVA UK (A company limited by guarantee) REGISTERED NUMBER: 08323156
BALANCE SHEET AS AT 31 DECEMBER 2023
| Note Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds Unrestricted funds Total funds |
132,291 75,760 208,051 (11,156) |
2023 £ 196,895 196,895 196,895 - 196,895 196,895 |
301,408 89,830 391,238 (14,977) |
2022 £ 376,261 |
|---|---|---|---|---|
| 376,261 | ||||
| 376,261 | ||||
| - 376,261 |
||||
| 376,261 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
Adam Bloom
Date:
The notes on pages 15 to 24 form part of these financial statements.
Page 13
TIKVA UK
(A company limited by guarantee)
| STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 15 to 24 form part of these financial statements |
2023 £ (14,070) - - (14,070) 89,830 75,760 |
2022 £ 1,167 |
|---|---|---|
| - | ||
| - | ||
| 1,167 88,663 |
||
| 89,830 | ||
Page 14
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. General information
The charity is a company limited by guarantee registered in England and Wales, company number 08323156. Its registered office address is 2 Lyttelton Road, Londdon, N2 0EF, which is also its principal place of operation.
The principal activity of the charity continued to be that of promoting the education and wellbeing of Jewish children and adolescents in Odessa (Ukraine).
The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per memeber of the charity.
The financial statements have been prepared in GBP and all amounts have been rounded to the nearest £.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Tikva UK 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.
2.2 Going concern
Based on their assessment of the charity's finances and general circumstances, the trustees are of the opinion that the charity is a going concern for at least 12 months following the date on which the balance sheet was signed. The majority of the charity's outgoing resources are grants paid to the sister charity, Tikva Corp, whihc is based in the USA. The level of these grants is flexible and can be adjusted to the level of incoming resources received by the charity.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Page 15
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
2.5 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.6 Cash at bank and in hand
Cash at bank and 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.
2.7 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
Page 16
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.8 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.9 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. The charity only has general, unrestricted funds.
3. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. However, the trustees are of the opinion that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
4. Income from donations and legacies
| Unrestricted funds 2023 £ Donations 6,201,880 Unrestricted funds 2022 £ Donations 7,702,667 |
Total funds 2023 £ 6,201,880 |
|---|---|
| Total funds 2022 £ 7,702,667 |
Page 17
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
5. Expenditure on raising funds
Costs of raising voluntary income
| Unrestricted funds 2023 £ Direct fundraising costs 174,289 Allocated centrally incurred fundraising and governance costs 106,110 280,399 Unrestricted funds 2022 £ Direct fundraising costs 64,412 Allocated centrally incurred fundraising and governance costs 52,169 116,581 |
Total funds 2023 £ 174,289 106,110 |
|---|---|
| 280,399 | |
| Total funds 2022 £ 64,412 52,169 |
|
| 116,581 |
Page 18
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
|
|---|---|
| 6. Analysis of grants Grants to Institutions 2023 £ Tikva Corp 5,795,760 Grants to Institutions 2022 £ Tikva Corp 7,154,924 7. Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2023 £ Support of the Jewish Population in Ukraine 6,100,847 Unrestricted funds 2022 £ Support of the Jewish Population in Ukraine 7,363,592 |
Total funds 2023 £ 5,795,760 |
| Total funds 2022 £ 7,154,924 |
|
| Total 2023 £ 6,100,847 |
|
| Total 2022 £ 7,363,592 |
Page 19
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Analysis of expenditure by activities
| Support of the Jewish Population in Ukraine Support of the Jewish Population in Ukraine |
Grant funding of activities 2023 £ 5,795,760 Grant funding of activities 2022 £ 7,154,924 |
Support costs 2023 £ 305,087 Support costs 2022 £ 208,668 |
Total funds 2023 £ 6,100,847 |
|---|---|---|---|
| Total funds 2022 £ 7,363,592 |
Page 20
TIKVA UK (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Computer & Software Audit Fee Rent Equipment Hire Subscriptions Travelling Recruitment Expenses Bank & Card Processing Charges Advertising Other staff related expenditure Sundry Exchange Rate Variances Postage & Carriage Telephone & Fax Insurance Professional Fees Auditors' remuneration Fees payable to the Charity's auditor for the audit of the Charity's annual accounts |
Total funds 2023 £ 149,637 14,702 3,528 46,080 245 637 6,388 6,720 3,134 53,003 10,059 4,541 (43) 1,418 2,421 2,408 209 305,087 2023 £ 5,040 |
Total funds 2022 £ 170,842 8,526 3,960 57,600 1,715 731 - - 2,696 6,639 - 3,615 (52,099) 1,446 997 1,847 153 208,668 2022 £ 4,740 |
|---|---|---|
9. Auditors' remuneration
Page 21
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2023 £ 169,774 15,613 31,660 217,047 |
2022 £ 189,846 23,706 - |
|---|---|---|
| 213,552 |
The average number of persons employed by the Charity during the year was as follows:
| Trustees Administration and Operations |
2023 No. 4 4 8 |
2022 No. 4 4 |
|---|---|---|
| 8 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2023 | 2022 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £110,001 | - £120,000 | 1 | - |
| In the band £120,001 | - £130,000 | - | 1 |
Apart from the trustees, key management comprises the Chief Executive Officer. The total remuneration for the year for key management was £119,083 (2022: £120,744).
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL) .
12. Debtors
| Due within one year Prepayments and accrued income Tax recoverable |
2023 £ 10,783 121,508 132,291 |
2022 £ 8,844 292,564 |
|---|---|---|
| 301,408 |
Page 22
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
13. Creditors: Amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income |
2023 £ 6,046 760 4,350 11,156 |
2022 £ 7,116 3,121 4,740 |
|---|---|---|
| 14,977 |
14. Related party transactions
During the year, the charity received donations of £622,775 (2022: £1,333,699) from trustees or entities controlled by trustees.
During the year, donations of £1,274,743 (2022: £1,809,398) were sent directly to the charity's sister organisation, Tikva Corp, which is resident in the United States. These donations are included in incoming resources.
Total grants and donations to Tikva Corp amounted to £5,795,760 (2022: £7,154,824).
R Kruskal is a trustee in both Tikva Corp and Tikva UK.
15. Funds
The charity only has unrestricted, general funds. All amounts in the accounts therefore represent unrestricted, general funds.
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Decrease/(increase) in debtors Decrease in creditors Net cash provided by/(used in) operating activities |
2023 £ (179,366) 169,117 (3,821) (14,070) |
2022 £ 222,494 |
|---|---|---|
| (218,022) (3,305) |
||
| 1,167 |
Page 23
TIKVA UK
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
17. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents Analysis of changes in net debt Cash at bank and in hand |
At 1 January 2023 £ 89,830 89,830 |
2023 £ 75,760 75,760 Cash flows £ (14,070) (14,070) |
2022 £ 89,830 |
|---|---|---|---|
| 89,830 | |||
| At 31 December 2023 £ 75,760 |
|||
| 75,760 |
18. Analysis of changes in net debt
Page 24