REGISTERED CHARITY NUMBER: 1161222
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
FOR
MERCAZ HATORAH NETZACH YISROEL
Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
MERCAZ HATORAH NETZACH YISROEL
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Statement of Financial Position | 5 | ||
| Statement of Cash Flows | 6 | ||
| Notes to the Statement of Cash Flows | 7 | ||
| Notes to the Financial Statements | 8 | to | 12 |
MERCAZ HATORAH NETZACH YISROEL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
The trustees present their report with the financial statements of the charity for the year ended 31st December 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 objectives are as follows:-
To advance the orthodox jewish faith in such ways as the Charity Trustees think fit, including by awarding scholarships, maintenance allowances or grants to students to enable them to pursue further studies at an Institute of Advanced Jewish Studies.
Public benefit
The trustees have considered the Charity Commission's general guidance on public benefit in deciding what activities the charity should undertake.
As stated on the 'Objectives and Activities' section, the charity provides education and supports poverty and illness amongst members of the Jewish faith.
The trustee consider that the activities explained above, satisfy the public benefit requirement.
ACHIEVEMENT AND PERFORMANCE
The consequences of the Covid-19 outbreak have adversely affected the National economy however our supporters have rallied around to ensure that the charity was not adversely affected by the pandemic and their efforts have been successful. In addition the pandemic is not expected to affect the charity's ability to continue as a going concern for the next twelve months but a small reduction in donations is viewed as being inevitable.
FINANCIAL REVIEW
The statement of financial activities show net incoming resources for the year of a revenue nature of £991,052 (2019 - £983,921) and net realised outgoing resources of £989,128 (2019 - £981,276) resulting in a surplus of £1,921 (2019 - surplus of £2,645) .The total reserves at the year end are £4,781 (2019 - £2,857).
FUTURE PLANS
The need for our services is increasing and we plan to continue doing what we can to assist. However, the trustees realise that we must use the resources we have wisely and so we will continue to target those problems where we have expertise to make the most difference. We therefore intend to continue our approach of education and training with further projects to build on the previous ones.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Organisational structure
The trust is an unincorporated trust, constituted under a Trust Deed dated 1 September 2014 as amended by deed dated 2 April 2015. The trustees are appointed by the Board of Trustees, who would normally appoint new trustees to fill vacancies arising through resignation or death of an existing trustee. At the Trustees' meeting, the trustees agree the broad strategy and areas of activity for the trust, including consideration of risk management policies and performance.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number
1161222
Principal address
81 Leeside Crescent London NW11 0JL
Page 1
MERCAZ HATORAH NETZACH YISROEL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
Trustees
D Markovic M Strom Mrs. C P Spitzer J Cope
Independent Examiner Akiva Kahan FCA Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
Approved by order of the board of trustees on 25th October 2021 and signed on its behalf by:
M Strom - Trustee
Page 2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MERCAZ HATORAH NETZACH YISROEL
Independent examiner's report to the trustees of Mercaz Hatorah Netzach Yisroel
I report to the charity trustees on my examination of the accounts of Mercaz Hatorah Netzach Yisroel (the Trust) for the year ended 31st December 2020.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCA which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 accounts to be reached.
Akiva Kahan FCA Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
Date: October 2021
Page 3
MERCAZ HATORAH NETZACH YISROEL
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
| 2020 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 991,052 EXPENDITURE ON Raising funds 3 22,725 Charitable activities 4 Advertising 6,596 Student Grants 955,893 Administrative expenses 568 Accountancy 700 Study books and reference materials 2,646 Total 989,128 NET INCOME 1,924 RECONCILIATION OF FUNDS Total funds brought forward 2,857 TOTAL FUNDS CARRIED FORWARD 4,781 |
2019 Total funds £ 983,921 15,242 6,240 956,384 533 700 2,177 |
|---|---|
| 981,276 | |
| 2,645 212 |
|
| 2,857 |
The notes form part of these financial statements
Page 4
MERCAZ HATORAH NETZACH YISROEL
STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2020
| 2020 | 2019 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| CURRENT ASSETS | |||
| Cash at bank | 5,481 | 3,557 | |
| CREDITORS | |||
| Amounts falling due within one year | 9 | (700) | (700) |
| NET CURRENT ASSETS | 4,781 | 2,857 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 4,781 | 2,857 | |
| NET ASSETS | 4,781 | 2,857 | |
| FUNDS | 10 | ||
| Unrestricted funds | 4,781 | 2,857 | |
| TOTAL FUNDS | 4,781 | 2,857 |
The financial statements were approved by the Board of Trustees and authorised for issue on 25th October 2021 and were signed on its behalf by:
M Strom - Trustee
The notes form part of these financial statements
Page 5
MERCAZ HATORAH NETZACH YISROEL
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020
| 2020 | 2019 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Cash flows from operating activities | |||
| Cash generated from operations | 1 | 1,924 | 2,645 |
| Net cash provided by operating activities | 1,924 | 2,645 | |
| Change in cash and cash equivalents in the | |||
| reporting period | 1,924 | 2,645 | |
| Cash and cash equivalents at the beginning of | |||
| the reporting period | 3,557 | 912 | |
| Cash and cash equivalents at the end of the | |||
| reporting period | 5,481 | 3,557 |
The notes form part of these financial statements
Page 6
MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2020 | 2019 | ||
|---|---|---|---|
| £ | £ | ||
| Net income for the reporting period (as per the Statement of Financial | |||
| Activities) | 1,924 | 2,645 | |
| Adjustments for: | |||
| Net cash provided by operations | 1,924 | 2,645 | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1/1/20 | Cash flow | At 31/12/20 | |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 3,557 | 1,924 | 5,481 |
| 3,557 | 1,924 | 5,481 | |
| Total | 3,557 | 1,924 | 5,481 |
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
Page 7
MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, 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 Charities Act 2011. 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.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. DONATIONS AND LEGACIES
| DONATIONS AND LEGACIES | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Donations | 991,052 | 983,921 |
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MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
3. RAISING FUNDS
Raising donations and legacies
| Raising donations and legacies | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Fund raising events | 22,725 | 15,242 |
4. CHARITABLE ACTIVITIES COSTS
| Advertising Student Grants Administrative expenses Accountancy Study books and reference materials GRANTS PAYABLE Student Grants Administrative expenses SUPPORT COSTS Accountancy |
Direct Costs £ 6,596 - 568 - 2,646 9,810 |
Grant funding of activities (see note 5) £ - 955,893 - - - 955,893 |
Support costs (see note 6) Totals £ £ - 6,596 - 955,893 - 568 700 700 - 2,646 700 966,403 2020 2019 £ £ 955,893 956,384 - (700) 955,893 955,684 Governance costs £ 700 |
|---|---|---|---|
5. GRANTS PAYABLE
6. SUPPORT COSTS
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
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MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
| 8. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | |||
|---|---|---|---|---|---|
| Unrestricted | |||||
| fund | |||||
| £ | |||||
| INCOME AND ENDOWMENTS FROM | |||||
| Donations and legacies | 983,921 | ||||
| EXPENDITURE ON | |||||
| Raising funds | 15,242 | ||||
| Charitable activities | |||||
| Advertising | 6,240 | ||||
| Student Grants | 956,384 | ||||
| Administrative expenses | 533 | ||||
| Accountancy | 700 | ||||
| Study books and reference materials | 2,177 | ||||
| Total | 981,276 | ||||
| NET INCOME | 2,645 | ||||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 212 | ||||
| TOTAL FUNDS CARRIED FORWARD | 2,857 | ||||
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Other creditors | 700 | 700 | |||
| 10. | MOVEMENT IN FUNDS | ||||
| Net | |||||
| movement | At | ||||
| At 1/1/20 | in funds | 31/12/20 | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 2,857 | 1,924 | 4,781 | ||
| TOTAL FUNDS | 2,857 | 1,924 | 4,781 |
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MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
10. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 991,052 991,052 |
Resources Movement expended in funds £ £ (989,128) 1,924 (989,128) 1,924 |
Resources Movement expended in funds £ £ (989,128) 1,924 (989,128) 1,924 |
|---|---|---|---|
| 1,924 |
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS Comparative net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
At 1/1/19 £ 212 212 Incoming resources £ 983,921 983,921 |
Net movement At in funds 31/12/19 £ £ 2,645 2,857 2,645 2,857 Resources Movement expended in funds £ £ (981,276) 2,645 (981,276) 2,645 |
Net movement At in funds 31/12/19 £ £ 2,645 2,857 2,645 2,857 Resources Movement expended in funds £ £ (981,276) 2,645 (981,276) 2,645 |
|---|---|---|---|
| 2,645 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1/1/19 | in funds | 31/12/20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 212 | 4,569 | 4,781 |
| TOTAL FUNDS | 212 | 4,569 | 4,781 |
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MERCAZ HATORAH NETZACH YISROEL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
10. MOVEMENT IN FUNDS - continued
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 | 1,974,973 | (1,970,404 ) | 4,569 |
| TOTAL FUNDS | 1,974,973 | (1,970,404 ) | 4,569 |
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st December 2020.
Page 12