2021-01-31-accounts - Bc Trust

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REGISTERED COMPANY NUMBER: 08366365 (England and Wales) REGISTERED CHARITY NUMBER: 1155555

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2020

FOR

BC TRUST

Venitt and Greaves Statutory Auditors Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL

BC TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2020

		Page
Report of the Trustees	1	to	3
Report of the Independent Auditors	4	to	5
Statement of Financial Activities		6
Statement of Financial Position	7	to	8
Statement of Cash Flows		9
Notes to the Statement of Cash Flows		10
Notes to the Financial Statements	11	to	16

BC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 January 2020. The trustees have adopted the provisions of 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

Objectives and aims

The principal activities of the charitable company in the year under review were that of the advancement of education and religious practice in accordance with the teachings of the Orthodox Jewish faith, and the relief of poverty.

The financial results of the Charitable Company's activities for the year ended 31 January 2020 are fully reflected in the attached financial statements together with the notes thereon.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aim and objectives and in planning the charity's future activities. The aims of the charitable company for the public benefit are detailed in the Objectives and Activities section of the report.

Grantmaking

Grants are made at the discretion of the trustees and in accordance with the principal objectives of the charitable company.

STRATEGIC REPORT

Achievement and performance

Charitable activities

During the year under review the charity received donations that amounted to £642,495 (2019: £879,593) and the charity made grants to institutions that amounted to £97,150 (2019: £50,197).

Investment performance

During the year under review the charity received rental income of £240,656 (2019: £262,718).

Financial review

Principal funding sources

The charity is financially dependent on income from investment property and charitable donations. During the year under review, the charity acquired investment property, further securing sustainable source of funds for future.

Investment policy and objectives

The company's memorandum and articles of association, which permit the company's funds to be invested in securities or properties of any kind and situated anywhere in the world, control the trustees' investment powers.

The trustees will consider suitable investments as and when they arise.

Reserves policy

The reserves policy is to ensure that there is a sufficient stream of income to meet the ongoing calls made on the charity including the possibility of providing capital assets for the needs of charitable institutions.

Going concern

The trustees are confident that the charity will continue to operate in the foreseeable future.

Future plans

There are no current plans to change the activities or modus operandi in the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, its memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 1

BC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of new trustees

It is not currently the intention of the trustees of the charity to appoint new trustees. Should this situation change in the future, the trustees will apply suitable recruitment and training procedures.

Related parties

Details of transactions with related parties are disclosed in the notes to the financial statements.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

08366365 (England and Wales)

Registered Charity number

1155555

Registered office

50 Wellington Avenue London N15 6BA

Trustees

M Rothfeld B D Rudzinski N Rudzinski Y Y Silberstein

Company Secretary

N Rudzinski

Auditors

Venitt and Greaves Statutory Auditors Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of BC Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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BC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Venitt and Greaves, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 16 November 2020 and signed on the board's behalf by:

N Rudzinski - Trustee

Page 3

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BC TRUST

Opinion

We have audited the financial statements of BC Trust (the 'charitable company') for the year ended 31 January 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 January 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 Report of the Independent Auditors 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.

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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
the charitable company has not kept adequate accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BC TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

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 a Report of the Independent Auditors 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.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Venitt and Greaves Statutory Auditors Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 115 Craven Park Road

South Tottenham London N15 6BL

16 November 2020

Page 5

BC TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY 2020

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Raising funds 4 Charitable activities 5 Charitable Other Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	31.1.20 Unrestricted fund £ 642,495 240,656 883,151 467,597 97,150 91,586 656,333 226,818 4,217,876 4,444,694	31.1.19 Total funds £ 879,593 262,718
		1,142,311 428,758 50,197 7,018
		485,973
		656,338 3,561,538
		4,217,876

The notes form part of these financial statements

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BC TRUST

STATEMENT OF FINANCIAL POSITION 31 JANUARY 2020

Notes FIXED ASSETS Investment property 11 CURRENT ASSETS Debtors 12 Cash at bank CREDITORS Amounts falling due within one year 13 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 14 NET ASSETS FUNDS 16 Unrestricted funds TOTAL FUNDS	31.1.20 Unrestricted fund £ 10,491,035 270,760 24,623 295,383 (1,602,328 ) (1,306,945 ) 9,184,090 (4,739,396 ) 4,444,694 4,444,694 4,444,694	31.1.19 Total funds £ 10,420,934 195,760 66,119 261,879 (4,208,083 ) (3,946,204 ) 6,474,730 (2,256,854 ) 4,217,876 4,217,876 4,217,876

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2020.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on 16 November 2020 and were signed on its behalf by:

The notes form part of these financial statements

continued...

Page 7

BC TRUST

STATEMENT OF FINANCIAL POSITION - continued 31 JANUARY 2020

B D Rudzinski - Trustee

N Rudzinski - Trustee

The notes form part of these financial statements

Page 8

BC TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2020

Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Cash flows from investing activities Purchase of investment property Net cash used in investing activities Cash flows from financing activities New loans in year Loan repayments in year Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	31.1.20 £ (718,320) (718,320) (70,101) (70,101) 2,820,000 (2,073,075 ) 746,925 (41,496) 66,119 24,623	31.1.19 £ 2,295,541 2,295,541 (4,670,934 ) (4,670,934 ) 1,656,135 - 1,656,135 (719,258) 785,377 66,119

The notes form part of these financial statements

Page 9

BC TRUST

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2020

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
			31.1.20	31.1.19
			£	£
	Net income for the reporting period (as per the Statement of Financial
	Activities)		226,818	656,338
	Adjustments for:
	(Increase)/decrease in debtors		(75,000)	457,979
	(Decrease)/increase in creditors		(870,138)	1,181,224
	Net cash (used in)/provided by operations		(718,320)	2,295,541
2.	ANALYSIS OF CHANGES IN NET DEBT
		At 1.2.19	Cash flow	At 31.1.20
		£	£	£
	Net cash
	Cash at bank	66,119	(41,496)	24,623
		66,119	(41,496)	24,623
	Debt
	Debts falling due within 1 year	(1,735,617 )	1,735,617	-
	Debts falling due after 1 year	(2,256,854 )	(2,482,542 )	(4,739,396 )
		(3,992,471 )	(746,925)	(4,739,396 )
	Total	(3,926,352 )	(788,421)	(4,714,773 )

The notes form part of these financial statements

Page 10

BC TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

2. DONATIONS AND LEGACIES

3.

Donations INVESTMENT INCOME Rents received	31.1.20 £ 642,495 31.1.20 £ 240,656	31.1.19 £ 879,593
		31.1.19 £ 262,718

continued...

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BC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2020

4. RAISING FUNDS

Raising donations and legacies

	Raising donations and legacies
			31.1.20	31.1.19
			£	£
	Fund raising events		82,955	84,953
	Investment management costs
			31.1.20	31.1.19
			£	£
	Management commissions		12,352	14,881
	Property repairs		23,017	17,512
	Bank loan interests		296,699	284,485
	Legal & professional fees		49,259	26,695
	Insurance		3,315	232
			384,642	343,805
	Aggregate amounts		467,597	428,758
5.	CHARITABLE ACTIVITIES COSTS
				Grant
				funding of
				activities
				(see note
				6)
				£
	Charitable			97,150
6.	GRANTS PAYABLE
			31.1.20	31.1.19
			£	£
	Charitable		97,150	50,197
7.	SUPPORT COSTS
			Governance
		Finance	costs	Totals
		£	£	£
	Other resources expended	87,386	4,200	91,586

continued...

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BC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2020

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

	31.1.20	31.1.19
	£	£
Auditors' remuneration	4,200	4,200

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2020 nor for the year ended 31 January 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 January 2020 nor for the year ended 31 January 2019.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Raising funds Charitable activities Charitable Other Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted fund £ 879,593 262,718
	1,142,311 428,758 50,197 7,018
	485,973
	656,338 3,561,538
	4,217,876

continued...

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BC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2020

11. INVESTMENT PROPERTY

FAIR VALUE At 1 February 2019 Additions At 31 January 2020 NET BOOK VALUE At 31 January 2020 At 31 January 2019 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.1.20 £ Other debtors 270,760 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.1.20 £ Bank loans and overdrafts (see note 15) - Other creditors 1,593,928 Accrued expenses 8,400 1,602,328 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.1.20 £ Bank loans (see note 15) 4,739,396 15. LOANS An analysis of the maturity of loans is given below: 31.1.20 £ Amounts falling due within one year on demand: Bank loans - Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal 1,919,396 Repayable otherwise than by instalments: Bank loans more 5 yrs non-inst 2,820,000		£ 10,420,934 70,101	£ 10,420,934 70,101
		10,491,035
		10,491,035
		10,420,934
		31.1.19 £ 195,760 31.1.19 £ 1,735,617 2,468,266 4,200	31.1.19 £ 195,760
		4,208,083
		31.1.19 £ 2,256,854
		31.1.19 £ 1,735,617
		2,256,854 -

continued...

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BC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2020

16. MOVEMENT IN FUNDS

At 1.2.19 £ Unrestricted funds General fund 4,217,876 TOTAL FUNDS 4,217,876 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 883,151 TOTAL FUNDS 883,151 Comparatives for movement in funds At 1.2.18 £ Unrestricted funds General fund 3,561,538 TOTAL FUNDS 3,561,538 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,142,311 TOTAL FUNDS 1,142,311		Net movement in funds £ 226,818 226,818 Resources expended £ (656,333) (656,333) Net movement in funds £ 656,338 656,338 Resources expended £ (485,973) (485,973)	At 31.1.20 £ 4,444,694 4,444,694 Movement in funds £ 226,818 226,818 At 31.1.19 £ 4,217,876 4,217,876 Movement in funds £ 656,338 656,338

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continued...

BC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2020

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund TOTAL FUNDS	At 1.2.18 £ 3,561,538 3,561,538	Net movement in funds £ 883,156 883,156	At 31.1.20 £ 4,444,694
			4,444,694

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	2,025,462	(1,142,306 )	883,156
TOTAL FUNDS	2,025,462	(1,142,306 )	883,156

17. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 January 2020.

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