2023-04-30-accounts

Charity Registration No. 1159336

Company Registration No. 08978316 (England and Wales)

HASHOMER HATZAIR

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

Sobell Rhodes LLP The Kinetic Centre Theobald Street Elstree Borehamwood Hertfordshire WD6 4PJ

HASHOMER HATZAIR

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Pauline Rosalyn Levis
	John Laurens Strawson
	Deborah Helen Sacks
	Lawrence Ross Joffe
	Micha Drori
	Yehuda James Erdman
	Alison Prager
Secretary	John Laurens Strawson
Charity number	1159336
Company number	08978316
Principal address	33 Alexander Road
	London
	United Kingdom
	N19 3PF
Registered office	33 Alexander Road
	London
	United Kingdom
	N19 3PF
Independent examiner	Sobell Rhodes LLP
	The Kinetic Centre
	Theobald Street
	Elstree
	Borehamwood
	Hertfordshire
	WD6 4PJ
Bankers	Barclays Bank Plc
	1 Churchill Place
	London
	E14 5HP
Solicitors	Stone King LLP
	Boundary House
	91 Charter House
	London
	EC1M 6HR

HASHOMER HATZAIR

CONTENTS

	Page
Trustees' report	1 - 2
Independent examiner's report	4
Statement of financial activities	5
Balance sheet	6
Notes to the financial statements	7 - 12

HASHOMER HATZAIR

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 APRIL 2023

The trustees, who are directors for the purposes of company law,Trustees present their report and financial statements for the year ended 30 April 2023.

The trustees have remained the same during the during and are:

John Strawson, Chair of the Trustees and Company Secretary Pauline Levis, Deborah Sacks Allison Prager Lawrence Joffe Yehuda Erdman Micha Drori

Trustees are appointed by the Board of Trustees under article 5 the Articles of Association. Trustees are sought from those in community with an interest and expertise in the areas of the objectives of the charity set in paragraph 2.

Objectives and activities

Objects and aims

The objects of the Charity are:

1. the advancement of education, in particular in relation to Jewish Values, history and culture

2. the promotion of religious, cultural, social and racial harmony, in particular between Jewish and other peoples,with a particular focus on Jewish young people.

These objectives are implemented through grants to organizations which carry out one or other of these objectives and to individuals so they can pursue activities which foster these objectives.

Grant making policies

There has been continuing regular support for the educational, cultural and social activities of Meretz UK (http:// www.meretz.org.uk) which has provided a series of seminars and public meetings on recently published books, cultural contribution and other forum which promote Jewish values and harmonious relations between Jews and non-Jews in Britain, Israel and Palestine. Activities have been both in person and online. The grant has remained at approximately £20,740 despite inflation.

Achievements and performance

The ability of Hashomer Hatzair to continue to operate and fund activities in Israel and the UK has in the main been due the reserves that had been acquired. This has proved to have been a wise policy although it cannot be permanent feature of our financial environment.

Financial review

The current year has seen the uncertainties of the 2022-23 continue. The income derived from Hashomer House is subject to an increasingly softening market for commercial rents. As a result we commissioned Knotts Architects to provide alternative uses. There were two plans one for concerting the building into residential property and the other for commercial purposes. Both plans would have involved considerable investment which would have had to be raised in the form of loans. With rising interest rates at the time this seemed unwise. Our long term tenant Levy-Cohen asked to surrender the existing lease and to rent for two years a smaller amount the building. Fortunately, our new tenant in the basement Yeladim negotiated a new lease to incorporate the vacated floor. They have also invested in improving the building. The Charity made a small contribution of £5,000. A historic electricity bill that been unintentionally acquired over two decades was settled in this period. As a result of the uncertainties, we suspended grants to projects in Israel and focused on providing support for Meretz UK.

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HASHOMER HATZAIR

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

Policy on reserves

Our policy is to keep £50,000 in our funds. This figure has been reduced due to a review of overall financial situation.

The Trustees' report was approved by the Board of Trustees.

John Laurens Strawson

Trustee Dated: 13 January 2024

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HASHOMER HATZAIR

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 APRIL 2023

The Trustees, who are also the directors of Hashomer Hatzair for the purpose 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 which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

The Trustees are responsible for keeping adequate accounting records that 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.

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HASHOMER HATZAIR

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HASHOMER HATZAIR

I report to the Trustees on my examination of the financial statements of Hashomer Hatzair (the Charity) for the year ended 30 April 2023.

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

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:

• 1 accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

• 2 the financial statements do not accord with those records; or

• 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

• 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.

Sobell Rhodes LLP

Jeremy Leboff, FCCA Sobell Rhodes LLP The Kinetic Centre Theobald Street Elstree Borehamwood Hertfordshire WD6 4PJ United Kingdom

Dated: 13 January 2024

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HASHOMER HATZAIR

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 APRIL 2023

		Unrestricted	Unrestricted
		funds	funds
		2023	2022
	Notes	£	£
Income and endowments from:
Rental income		36,888	39,667
Expenditure on:
Expenditure		54,942	84,850
Total expenditure		54,942	84,850
Net expenditure for the year/
Net outgoing resources		(18,054)	(45,183)
Net movement in funds		(18,054)	(45,183)
Fund balances at 1 May 2022		2,126,575	2,171,758
Fund balances at 30 April 2023		2,108,521	2,126,575

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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HASHOMER HATZAIR

BALANCE SHEET

AS AT 30 APRIL 2023

Notes Fixed assets Investment property 6 Current assets Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Total assets less current liabilities Income funds Unrestricted funds	2023 £ £ 2,000,000 7,050 108,579 115,629 (7,108) 108,521 2,108,521 2,108,521 2,108,521	2022 £ £ 2,000,000 18,095 114,171 132,266 (5,691) 126,575 2,126,575 2,126,575 2,126,575	2022 £ £ 2,000,000 18,095 114,171 132,266 (5,691) 126,575 2,126,575 2,126,575 2,126,575
			2,126,575
			2,126,575
			2,126,575

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 April 2023.

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 13 January 2024

John Laurens Strawson Trustee

Company registration number 08978316

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

Charity information

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: 33 Alexander Road London N19 3PF

The principal place of business is: 33 Alexander Road London N19 3PF

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 amounts in these financial statements are rounded to the nearest £1.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

1.2 Going concern

The trustees have a reasonable expectation the company will continue to have adequate resources to fund its working capital for the foreseeable future. The trustees have carried out a detailed assessment of the viability of the charity following to uncertainty over current economic condition due to higher inflation.

As a result of their review, the trustees have taken appropriate measures to enable them to have a reasonable expectation that the charity will have sufficient working capital for a period of at least 12 months from the date these financial statements have been approved.

On the basis of the above, the trustees are of the opinion that there is no material uncertainty relating to going concern and therefore it is appropriate to prepare these financial statements on a going concern basis.

1.3 Income and endowments

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 the income receivable can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

1.4 Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

1.5 Investment properties

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the trustees. The trustees use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

1.6 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.

1.7 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.8 Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

2 Analysis of governance and support costs

Website costs Bank charges Telephone and internet Sundry expense Travel and subsistence Accountancy fees Legal and professional	Support costs Governance costs £ £ 750 - - 156 288 - 1,093 - 883 - 5,004 - 19,611 - 27,629 156	2023Support costs Governance costs £ £ £ 750 - 156 - 179 288 209 - 1,093 812 - 883 62 - 5,004 5,594 - 19,611 4,212 - 27,785 10,889 179	2022 £ - 179 209 812 62 5,594 4,212
			11,068

3 Trustees

During the year the charity made the following transactions with trustees:

During the year the trustees were reimbursed for travel and subsistence of £883 (2022: £62). No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any other benefits from the charity during the year.

4 Employees

The average monthly number of employees during the year was:

	2023	2022
	Number	Number
Total	-	-

There were no employees whose annual remuneration was more than £60,000.

5 Taxation

The company is a registered charity and its activities are not subject to taxation.

6 Investment property

Investment property
	2023
	£
Fair value
At 1 May 2022 and 30 April 2023	2,000,000

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

7 Debtors

7 Debtors
Amounts falling due within one year: Trade debtors 8 Creditors: amounts falling due within one year Notes Deferred income Accruals and deferred income	2023 £ 7,050 2023 £ 1,417 5,691 7,108	2022 £ 18,095
		2022 £ - 5,691
		5,691

9 Unrestricted Funds

General Designated Total	Balance at 1 May 2021 £ 71,758 2,100,000 2,171,758	Movement in funds Incoming resources Resources expended £ £ 39,667 (84,850) - - 39,667 84,850	Balance at 1 May 2022 £ 26,575 2,100,000 2,126,575	Movement in funds Incoming resources Resources expended Balance at 30 April 2023 £ £ £ 36,888 (54,942) 8,521 - - 2,100,000 36,888 54,942 2,108,521	Movement in funds Incoming resources Resources expended Balance at 30 April 2023 £ £ £ 36,888 (54,942) 8,521 - - 2,100,000 36,888 54,942 2,108,521
		Incoming resources		Incoming resources
		£ 39,667 - 39,667		£ 36,888 - 36,888
					2,108,521

10 Related party transactions

There were no disclosable related party transactions during the year.

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

Detailed Statement of Financial activities
	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Income and endowments from:
Rental income (analysed below)	36,888	39,667
Expenditure on:
Charitable activities (analysed below)	54,942	84,850
Total expenditure	54,942	84,850
Net outgoing resources	(18,054)	(45,183)
Net movement in funds	(18,054)	(45,183)
Fund balances at 1 May 2022	2,126,575	55,725
Fund balances at 30 April 2023	2,108,521	2,126,575

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HASHOMER HATZAIR

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

	Unrestricted	Unrestricted
	funds	funds
Other income	2023	2022
	£	£
Rental income	36,888	39,667
	36,888	39,667
	Unrestricted	Unrestricted
Expenditures	funds	funds
	2023	2022
	£	£
Grants payable- institutions	(20,740)	(70,350)
Website costs	(750)	-
Telephone and internet	(288)	(209)
Insurance	(1,469)	(1,382)
Repairs and maintenance	(4,948)	(2,050)
Sundry expenses	(1,093)	(812)
Bank charges	(156)	(179)
Travel and subsistence	(883)	(62)
Accountancy fees	(5,004)	(5,594)
Legal and professional fees	(19,611)	(4,212)
	(54,942)	(84,850)

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