MERCAZ HATORAH NETZACH YISROEL Charity No. 1161222 Annual report and financial statements For the year ended 31st December 2024
Mercaz Hatorah Netzach Yisroel For the year ended 31st December 2024 Contents Page Reference and administrative information Trustees, annual report Independent auditors. report Statement of financial activities {incorporating an income and expenditure account) Balance sheet Statement of cash flows 10 Notes to the financial statements 11-17
Mercaz Hatorah Netzach Yisroel Reference and administrative information For the year ended 31st December 2024 Trustees: D Markovic M Strom J Cope Charity number: 1161222 Registered office: 81 Leeside Crescent, London, NW11 OJL Auditors: Goldwins Limited 75 Maygrove Road West Hampstead London NW6 2EG www.goldwins.co.uk
Mercaz Hatorah Netzach Yisroel Reference and administrative information For the year ended 31st December 2024 The trustees present their report together with the financial statements of the charity for the year ended 31 st December 2024. 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 The principal objectives of the charity are: To advance the orthodox Jewish faith in such ways as the trustees think fit, including by awarding scholarships, Maintenan 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. Achievements and performance During the year, the charity has continued to operate the charitable activities and meet its objectives. The charity's supporters have rallied around to ensure the charity's ability to continue as a going concern for the next twelve months. The trustees are exptIOnallY grateful to all of the organisations and individuals for their continued support of the charity. The plans for the coming financial year are very ambitious but the trustees are working hard to ensure that financial supporters are kept informed of the charity's progress and the funds pledged for the year will allow the trustees to carry out their plans. Financial review Financial position The statement of financial activities shows net incoming resour$ for the year of a revenue nature of £1,426,681 12023.. £1,285,376) and net realised outgoing resour$ of £1,427,810 {2023 £1,252,402) resulting in a deficit of £1,12912023.' surplus of £32,974). The total reseNes at the year end are £69,031 (2023- £70,160). Reserves policy The reserves policy takes into account the need to deal with short-term volatility of income without having to suddenly cut expenditure. The trustees would aim to retain funds equivalent to 3-6 months expenditure to take account of any potential short fall in donations in future. The reserves policy and target level are reviewed by the trustees on an annual basis, together with any steps necessary to align the actual level with the target over time.
Mercaz Hatorah Netzach Yisroel Reference and administrative information For the year ended 31st December 2024 Plans for the future The need for our services is increasing and we plan to continue doing what we can to assist. However, the trustees realise thatwe must use the resources we have wisely and so wewill 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 goveming document, a deed of trust and constitutes an unincorporated charity. Statement of responsibilities of the trustees The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with 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). The law applicable to charities in England & Wales 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 income and expenditure of the charity for that period. 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 judgments and accounting 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, and 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 maintaining proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deedlconstitution. They are also responsible for safeguarding the assets of the charity and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Mercaz Hatorah Netzach Yisroel Reference and administrative information For the year ended 315t December 2024 Statement as to disclosure to our auditors In so far as the trustees are aware.. •There ts no relevant audrt information of thich the charty'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 InfortIOn and to establish that the audrtors are amre of that infomRtion. Auditora Goldwins Limitod ré rgappointod a= th¢ ouditors of the chorty durin9 th¢ ytar and hav¢ expivi>¢rJ their willingness to continue in that capacity. The tsu5tees' annual report ha5 been approved ty the trustees on 2811012025 thèir behaff by., and signed on om- Trustee
IINDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERCAZ HATORAH NETZACH YISROEL Opinion We have audited the financial statements of Mercaz Hatorah Netzach Yisroel (the 'Charity'l for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, 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, 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 Charity's affairs as at 31 December 2024 and of its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) IISAS (UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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 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 colleclively, may cast significant doubl on the charily's abilily 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 Ihe responsibilities of the directors with respect to going conrn are described in the relevant sections of this report. 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 auditor's report Ihereon. Our opinion on the financial slalemenls does not cover the other information and, except to the extent othenmise expliGitly 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 othenmise 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 material misstatement of the other information. If, based on the work we have performed, we
IINDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERCAZ HATORAH NETZACH YISROEL onclude that there is a material misstatement of this other infomiation, we are required lo report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion.. sufficient accounting records have not been kept., the financial statements are not in agreement with the accounting records and returns,. or we have not obtained all the information and explanations necessary for the purposes of our audit. Responsibilities of the trustees As explained more fully in the truslees, responsibilities statement, the trustees 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 they 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 Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going conrn basis of accounting unless the trustees either intend to liquidate the Charity or to ase 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 misslatemenl, whether due to fraud or error, and to issue an auditor's 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 {UKI will always delect 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 delect material misslalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-complian with laws and regulations, our ProdureS included the following.. We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures.. We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial slalements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
IINDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERCAZ HATORAH NETZACH YISROEL We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We perfomed analytical procedures to identify any unusual or unexpected relationships that may indicale risks of material misstatement due to fraud. In addressing the risk of fraud through management override of controls, we tested the appropriateness of joumal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transaclions that are unusual or those outside the normal course of business. 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.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required lo state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not acpt or assume responsibility to anyone other than the Charity and the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. G(Jldwin& Goldwins Limited Statutory Auditor and Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG 2911012025 Goldwins Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Mercaz Hatorah Netzach Yisroel Statement of financial activities {incorporating an income and expenditure account) For the ear ended 31 December 2024 2024 2023 Unrestricted Restricted Fund Fund Total Fund Total Fund Note Income from.. Donation5 and legacies 1 .426.681 1,426,681 1.285.376 Total Income 1 .426,681 ,426,681 1,285.376 Expenditu on: Raising funds Charitable activitie5 16,772 1.411,038 16.772 28,828 1,411,038 1,223,574 Total expendlture 1,427,810 ,427,810 1,252,402 Net Income l {expendlture) for the year 11 129) (1,129) 32,974 Transfers between funds Net Income l {expendlture) before other recognlsed galns and losses 11 129) (1,129) 32,974 Net movement in funds 11,1291 (1,129) 32.974 Reconclllatlon of funds: Total funds brought fOard 70,160 70.160 37.186 Total funds carrled forward 69.031 69,031 70.160 All of the above re5uIt5 are derived from continuing activitie5. There were no other reiognised gain5 or 1055e5 other than those stated above. Movements in funds are disclosed in Note 12 to the financial starements.
Mercaz Hatorah Netzach Ylsroel Balance sheet Ag at 31 December 2024 2024 2023 Noie Current assets: Debtors Cash at bank and In hand 57,700 16,731 78.050 2,910 Llabllltles.. Creditttr£: amniJtr)ts falling wlthin on• year 74.431 80,960 io 5,400 10.60Q Net ¢urrertt r4$5ttJ 69,031 70.160 Total a55ets less current Ilabllltles 69.031 70,160 Total net assets 69,031 70.160 The funds of the charlty.. UnrestrlctÈd Income funds: General fund5 12 69,031 70,160 Total unrestricted funds 69,031 70,160 Totsl Eharlty fuwHJ> 69.037 70.160 The financlal stat*ments were approved by the trustèes on 2811012025 and signed on their behalf by M Strom Trustee
Mercaz Hatorah Netzach Yisroel Statement of cash flows For the ar ended 31 December 2024 Note 2024 2023 Cash flows from operatlng actlvltles Net cash provlded by l (used In) operatlng acrlvltles 13,821 2.124 Cash flows from investing activities.. Dividends, interesi and renis from investments Net cash provlded bv l (used In) Investlng actlvltles Net cash provlded bv l (used In) flnanclng actlvltles Change In cash and cash equlvalents In the year 13,821 2.124 Cash and cash equivalents at the beginning of the year 2,910 786 Cash and cash equlvalents at the end of the year 16,731 2,910
Mercaz Hatorah Netzach Yisroel Notes to the flnanclal statements For the ear ended 31 December 2024 Accounilng pollcles a) Basis of preparation The financial statements of the charity. which is a public benefit eniity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 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 IFRS 1021 (effective I January 20191,, 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. b) Golng concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a going coniern. The trustees do not ionsider that there are any sources of estimation uniertainty at the reporting date that have a significant risk of causing a material adj ustment to the carrying amounts of assets and liabilities within the next reporting period. c) Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. d) Donatlons of glfts. servlces and facllltles Donated professional services and donated facilities are recogni5ed as income when the charity has control over the item or received the service, any conditions associated with the donation have been met. the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021, volunteer time is not recognised so refer to the trustee5' annual report for more information about their contribution. On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market,. a corresponding amount is then recognised in expenditure in the period of receipt. e) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity,. this is normally upon notif ication of the interest paid or payable by the bank. Fund accountlng Restricted funds are to be used for specific purpose5 as laid down by the donor. Expenditure which meet5 these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. g) Expendlture and Irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings.. Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
Mercaz Hatorah Netzach Yisroel Notes to the flnanclal statements For the ear ended 31 December 2024 Accounting policies (continued) Expenditure on charitable activities includes the costs of delivering services, undertaken to further the purposes of the charity and their associated support costs. Other expenditure represents those items not falling into any other heading Grants offered 5ubjeit to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. h) Allocation of support costs Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost relared 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. i) Operating leases Rental charges are charged on a straight line basis over the term of the lease. j) Tangible fixed assets Depreciation costs are allocated to activitie5 on the bas15 of the use of the related asset5 in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. k) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. l) Cash at bank and in hand Cash at bank and cash 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. Cash balances exclude any funds held on behalf of service users. m) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation ian be measured or estimated reliably. Creditor5 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. n) 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. o) Pensions The charity doe5 not operate a stakeholder pension scheme.
Mercaz Hatorah Netzach Yisroel Notes to the flnanclal statements For the ear ended 31 December 2024 2 Detailed comparatives for the Statement of financial activities 2023 Total Unrestricted Restricted Income from: Donation5 and legacies Charitable activities 1,285,376 1,285,376 Investments Total Income Expenditure on.. Raising funds Charitable activities 1.285.376 1,285.376 28.828 28.828 -student Grants 1,223,574 1,223,574 Total expenditure 1,252,402 1,252,402 Net income l expenditure before gains l (losses) on investments Net gains I (losses) on investments 32,974 32,974 Net income / expenditure Transfers between funds 32,974 32,974 Net movement in funds 32,974 37,186 32,974 37.186 Toral funds brought fOard Total funds carried forward 70,160 70,160 3 Income from donations and legacies 2024 Total 2023 Total Unrestricted Restricted Donations 1,426,681 1,426,681 1,285,376 1,426.681 1 ,426,681 1,285.376
Mercaz Hatorah Netzach Yisroel Notes to the financial statements For the year ended 31 December 2024 4 Analysis of expenditure Cost of raising funds Chariiable Suppon activities costs 2024 Total 2023 Total Fundraising events Direct cost 16.772 16,772 28,828 Student grants Housing and cost of living grants Advertising Study books and reference materials Travel cosrs Telephone Postage and stationery Computer expense5 Insurance 1,020.023 369.899 2,004 481 1.020.023 369.899 2,004 481 1,198,826 2,182 677 10.827 10,827 260 150 900 951 15,272 334 260 150 979 900 951 Support Costs AccoutaNcy Bank charges Audit fee5 (i 001 143 143 5,400 5,400 5,400 16,772 1,403,234 7,804 1.427.810 1,252,402 7,804 17,8041 Suppon costs Total expenditure 2024 16.772 .411,038 1.427.810 Total expenditure 2023 28.828 1,223.574 1,252,402 The total expenditure £1.427,810 was unrestricted 12023." £1.252.4021. Analysis of expenditure Iprior yearl Cost of raising fund5 Charitable activitie5 Support C05t5 2023 Total Fund raisiny events Direct cost Srudeni grants Advertising Study books and reference materials Travel costs Telephone Postage and stationery Support Costs Accoutancy Bank charge5 Audit fee5 28.828 28,828 1,198,826 2,182 677 15.272 1,198,826 2,182 677 15,272 334 979 334 979 11001 (i 001 5.400 5,400 28.828 1,2 16.957 6.617 6.617 16.6171 1.252,402 Support costs Total expenditure 2023 28.828 1,223.574 1,252,402
Mercaz Hatorah Netzach Yi5roel Notes to the financial statements For the year ended 31 December 2024 Net incoming resources for the year This is stated after charging I crediting.. 2024 2023 Auditors, remuneration (excluding VATI.. Audit 4,500 4,500 Analysis of staff costs, trustee remuneratlon and expenses. and the cost of key management personnel The charity did not employ staff during the year12023.. Nill. The charity trustees were not paid or received any other benefits from employment with the charity in the year12023'. £nill. No trustees received payment for professional or other services supplied to the charity12023'. £nill. Trustees, reimbursement of travel and subsistence costs is £Nil Related party transactions There are no related party transactions to disclose for 2024 12023-. none). Taxation The charity is exempt from tax on its charitable activitie5. Debtors 2024 2023 Other debtors 57,700 78,050 57,700 78,050 l O Creditors: amounts falling due within one year 2024 2023 Accruals 5,400 10,800 5,400 10,800
Mercaz Hatorah Netzach Yi5roel Notes to the financial statements For the year ended 31 December 2024 I l Analysis of net assets between funds General unrestricted Designated Restricted Total funds Current assets Current liabilities 74,431 15,4001 74,431 15.400) Net assets at the end of the year 69,031 69,031 Comparative for analysis of net assets between funds (prior yearl General Designated Restricted Total funds Current asset5 Current liabilities 80,960 110.8001 80,960 110.8001 Net assets at the end of the year 70,160 70,160 12 Movement5 in funds Incoming At the start resources & of the year gains Outgoing resources & losses At the end of the year Transfers Unrestricted funds: General funds 70.160 1.426,681 11.427.810) 69,031 funds 70.160 1,426,681 11,427,810) 69,031 Total funds 70.160 1.426,681 11.427.810) 69,031 Comparative for movement in funds {prior yearl Incoming At the start resources & of the year gains Outgoing resources & losse5 At the end of the year Transfers Unrestricted funds= General funds 37,186 1,285,376 11,252,4021 70,160 Total unrestricted funds 37.186 1,285,376 11.252.4021 70,160 Total funds 37,186 1,285,376 11,252.4021 70,160
Mercaz Hatorah Netzach Yi5roel Notes to the financial statements For the year ended 31 December 2024 13 Reconciliation of net income l (expenditure) to net cash flow from operating activities 2024 2023 Net income I lexpenditurel for the reporting period (as per the statement of financial activities) Depreciation charges Ilncrease)Idecrease in debtors Increasel(decreasel in creditors (1,129) 32,974 20,350 (5,400) 21,950 152,8001 Net cash provided by I (used in) operating activities 13,821 2,124 14 Analysis of cash and cash equivalents At31 December 2024 At l January 2024 Other changes Cash flows Cash in hand 2,910 13,821 16,731 Total cash and cash equlvalents 2,910 13,821 16,731