COMPANY REGISTRATION NUMBER: 9391498 CHARITY REGISTRATION NUMBER: 1161835
Gateshead Kehilla Building Foundation Company Limited by Guarantee
Financial Statements
30 June 2021
ACCOUNTS & BUSINESS SOLUTIONS LIMITED
Chartered Certified Accountants & statutory auditor 158 Cromwell Road
Salford M6 6DE
Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Financial Statements
Year ended 30 June 2021
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 6 |
| Statement of financial activities (including income and | |
| expenditure account) | 12 |
| Statement of financial position | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 |
Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 30 June 2021
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 30 June 2021.
Reference and administrative details
| Registered charity name | Gateshead Kehilla Building Foundation |
|---|---|
| Charity registration number | 1161835 |
| Company registration number | 9391498 |
| Principal office and registered | 271 Coatsworth Road |
| office | Gateshead |
| Tyne & Wear | |
| NE8 4LJ | |
| The trustees | |
| L Bamberger | |
| B Davis | |
| P Z Schechter | |
| A H Zahn | |
| Auditor | Accounts & Business Solutions Limited |
| Chartered Certified Accountants & statutory auditor | |
| 158 Cromwell Road | |
| Salford | |
| M6 6DE | |
| Bankers | |
| Unity Trust Bank Plc | |
| 9 Brindleyplace | |
| Birmingham | |
| B1 2HB |
- 1 -
Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 June 2021
Structure, governance and management
Gateshead Kehilla Building Foundation is constituted by Memorandum and Articles of Association and is a company limited by guarantee. It was incorporated on 15 January 2015 as a company and the company number is 9391498. It was registered as a charity on 26 May 2015 with a charity number 1161835.
Recruitment and appointment of new trustees would be in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.
There is no chief executive officer. The day-to-day affairs are undertaken by Mr J Bernstein on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The risks faced by the trust are principally operational risks from ineffective grant making. These risks are managed by the trustees researching potential beneficiaries before granting donations.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all grants.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 June 2021
Objectives and activities
The objects of the charity are: (i) to advance the orthodox Jewish religion in the North of England for the benefit of the public by building, providing and maintaining communal building or buildings for religious purposes for the Jewish community; (ii) to promote any charitable purpose for the benefit of the community as the trustees may decide from time to time determine.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.
Grant making policy
The charity is funded by donations. The charity only pays out grants in line with the above objects.
There were no individual grants made during the year.
The application of the funds by way of grants is either to institutions or individuals.
The trustees consider they have met the public benefit test and outline these achievements below.
The trustees measure the success of achieving the stated aims by the number and value of grants paid out for each object or by way of fixed asset expenditure. The grants or payments paid out in the year are detailed in the notes to the accounts and the trustees consider they have met their aims successfully this year.
The trustees consider the shorter term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 June 2021
Achievements and performance
The charity received £832,468 in donations and £6,537 in charitable income during the year.
The charity spent £473,621 on construction and professional fees for the building of a new community centre for the Jewish community in Gateshead. No depreciation has been charged on these costs.
There were no grants paid out in the year but support costs amounting to £14,638 were paid out in the year.
There were fundraising costs incurred during the year amounting to £928.
There were no related party transactions in the reporting period.
There was an overall net incoming of resources for the year amounting to £809,572.
Financial review
The trustees consider that the year was an excellent one in terms of donations received and the progress made towards the new community centre.
The trustees are delighted to have made many valuable contributions to the community and hope to be able to do so for many years to come.
Reserves policy
The Unrestricted Fund represents the unrestricted funds arising from past operating results. The Trust is currently distributing as much of its income as possible.
In considering the financial obligations of the charity, the trustees have resolved to maintain a minimum reserve, being the current assets of the charity. The fixed assets are not deemed by the trustees to be freely available to distribute.
The Trustees are satisfied that the balance of the Fund is an acceptable level of reserves given the nature of revenue receipts against grants payable.
The reserves stand at £5,516,643, all of which are unrestricted.
Trustees' responsibilities statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 30 June 2021
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
The trustees' annual report and the strategic report were approved on 24 February 2022 and signed on behalf of the board of trustees by:
B Davis Trustee
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building Foundation
Year ended 30 June 2021
Opinion
I have audited the financial statements of Gateshead Kehilla Building Foundation (the 'charity') for the year ended 30 June 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In my opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 30 June 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Conclusions relating to going concern
In auditing the financial statements, I 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 I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
My responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building
Foundation (continued)
Year ended 30 June 2021
Other information
The other information comprises the information included in the annual report, other than the financial statements and my auditor’s report thereon. The trustees are responsible for the other information. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am 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 I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.
I have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In my opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which i am required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, I have not identified material misstatements in the trustees' report.
I have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires me to report to you if, in my opinion:
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adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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I have not received all the information and explanations I require for my audit.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building Foundation (continued)
Year ended 30 June 2021
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building
Foundation (continued)
Year ended 30 June 2021
Auditor's responsibilities for the audit of the financial statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to including: -
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Charity Act 2011 - as this entity is a charity;
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AML provisions - inherent with all organisations.
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FRS 102 reporting framework.
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HMRC regulations for charities and gift aid reclaim
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Data protection
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CJRS
The following particular considerations in respect of fraud were assessed. We assessed the risks of material misstatement in respect of fraud as follows:
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Reviewed unusual or large transactions;
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Complex transactions if applicable;
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Analytical procedures;
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One off transactions.
We made fraud enquiries during the audit from: -
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Management;
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those charged with governance;
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other analytical procedures to identify any unusual or unexpected relationships;" the audit team discussions to identify particular areas to misstatement or fraud;" the audit team attempted to identify any fraud risk factors in its discussion of related party relationships and transactions (ISA (UK) 550;
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legal counsel as applicable;
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Audit procedures designed to respond to the risks of NOCLAR.
Based on the results of our risk assessment we designed our audit procedures to identify noncompliance with such laws and regulations identified above.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building Foundation (continued)
Year ended 30 June 2021
As part of an audit in accordance with ISAs (UK), I exercise professional judgment and maintain professional scepticism throughout the audit. I also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Gateshead Kehilla Building Foundation (continued)
Year ended 30 June 2021
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Use of my report
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. My audit work has been undertaken so that I might state to the charity's members those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for my audit work, for this report, or for the opinions I have formed.
Mr H Davies FCCA Accounts & Business Solutions Limited Chartered Certified Accountants & statutory auditor 158 Cromwell Road Salford M6 6DE
24 February 2022
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 30 June 2021
| 2021 | 2021 | 2020 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 5 | 832,468 | 832,468 | 1,312,208 |
| Charitable activities | 6 | 6,357 | 6,357 | – |
| -------------------------------- | -------------------------------- | ----------------------------------------- | ||
| Total income | 838,825 | 838,825 | 1,312,208 | |
| ================================ | ================================ | ========================================= | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Costs of raising donations and legacies | 7 | 928 | 928 | – |
| Expenditure on charitable activities | 8,9 | 28,325 | 28,325 | 10,027 |
| -------------------------------- | -------------------------------- | ----------------------------------------- | ||
| Total expenditure | 29,253 | 29,253 | 10,027 | |
| ================================ | ================================ | ========================================= | ||
| -------------------------------- | -------------------------------- | ----------------------------------------- | ||
| Net income and net movement in funds | 809,572 | 809,572 | 1,302,181 | |
| ================================ | ================================ | ========================================= | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 4,707,071 | 4,707,071 | 3,404,890 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 5,516,643 | 5,516,643 | 4,707,071 | |
| ========================================= | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 15 to 21 form part of these financial statements.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Statement of Financial Position
30 June 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 14 | 6,105,832 | 5,589,352 | |
| Current assets | ||||
| Cash at bank and in hand | 379,458 | 147,229 | ||
| Creditors: amounts falling due within one year | 15 | 919,211 | 1,029,510 | |
| -------------------------------- | ----------------------------------------- | |||
| Net current liabilities | 539,753 | 882,281 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total assets less current liabilities | 5,566,079 | 4,707,071 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 16 | 49,436 | – | |
| ----------------------------------------- | ----------------------------------------- | |||
| Net assets | 5,516,643 | 4,707,071 | ||
| ========================================= | ========================================= | |||
| Funds of the charity | ||||
| Unrestricted funds | 5,516,643 | 4,707,071 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total charity funds | 17 | 5,516,643 | 4,707,071 | |
| ========================================= | ========================================= |
These accounts have been prepared in accordance with the provisions applicable to companies' subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 24 February 2022, and are signed on behalf of the board by:
B Davis Trustee
The notes on pages 15 to 21 form part of these financial statements.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Statement of Cash Flows
Year ended 30 June 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 809,572 | 1,302,181 |
| Adjustments for: | ||
| Interest payable and similar charges | 1,378 | 1,417 |
| Accrued (income)/expenses | (99,860) | 47,016 |
| Changes in: | ||
| Trade and other creditors | (10,439) | (74,040) |
| -------------------------------- | ----------------------------------------- | |
| Cash generated from operations | 700,651 | 1,276,574 |
| Interest paid | (1,378) | (1,417) |
| -------------------------------- | ----------------------------------------- | |
| Net cash from operating activities | 699,273 | 1,275,157 |
| ================================ | ========================================= | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (516,480) | (2,313,177) |
| -------------------------------- | ----------------------------------------- | |
| Net cash used in investing activities | (516,480) | (2,313,177) |
| ================================ | ========================================= | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 49,436 | – |
| -------------------------------- | ----------------------------------------- | |
| Net cash from financing activities | 49,436 | – |
| ================================ | ========================================= | |
| Net increase/(decrease) in cash and cash equivalents | 232,229 | (1,038,020) |
| Cash and cash equivalents at beginning of year | 147,229 | 1,185,249 |
| -------------------------------- | ----------------------------------------- | |
| Cash and cash equivalents at end of year | 379,458 | 147,229 |
| ================================ | ========================================= |
The notes on pages 15 to 21 form part of these financial statements.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 30 June 2021
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 271 Coatsworth Road, Gateshead, Tyne & Wear, NE8 4LJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Fair value
Debtors and creditors are stated at fair value.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Tangible assets
All fixed assets are initially recorded at cost. No depreciation has been charged. No depreciation will be charged until the functional property has been brought into use.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
3. Accounting policies (continued)
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
3. Accounting policies (continued)
Financial instruments (continued)
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Limited by guarantee
Gateshead Kehilla Building Foundation is a registered charity and a company limited by guarantee and does not have a share capital. In the event of the charity being wound up, members are required to contribute an amount not exceeding £10.
5. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations | 832,468 | 832,468 | 1,312,208 | 1,312,208 |
| ================================ | ================================ | ========================================= | ========================================= | |
| Charitable activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Sale of goods/services as part of | ||||
| direct charitable activities | 6,357 | 6,357 | – | – |
| ======================= | ======================= | ============== | ============== | |
| Costs of raising donations and | legacies | |||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Costs of raising donations and | ||||
| legacies - Donations | 928 | 928 | – | – |
| ============== | ============== | ============== | ============== |
6. Charitable activities
7. Costs of raising donations and legacies
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
8. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Synagogue functions | 13,687 | 13,687 | – | – |
| Support costs | 14,638 | 14,638 | 10,027 | 10,027 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 28,325 | 28,325 | 10,027 | 10,027 | |
| ============================ | ============================ | ============================ | ============================ |
9. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Support |
Total funds | Total fund | |
| directly | costs |
2021 | 2020 | |
| £ | £ | £ | £ | |
| Synagogue functions | 13,687 | 12,088 |
25,775 | 5,889 |
| Governance costs | – | 2,550 |
2,550 | 4,138 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 13,687 | 14,638 |
28,325 | 10,027 | |
| ============================ | ============================ | ============================ | ============================ | |
| Analysis of support costs | ||||
| Analysis of | ||||
| support costs | Total 2021 | Total 2020 | ||
| £ | £ | £ | ||
| Premises | 3,900 | 3,900 | – | |
| Communications and IT | 40 | 40 | 259 | |
| General office | 6,770 | 6,770 | 521 | |
| Finance costs | 1,378 | 1,378 | 1,417 | |
| Governance costs | 2,550 | 2,550 | 4,138 | |
| Event and fundraising costs | – | – | 3,692 | |
| ---------------------------- | ---------------------------- | ---------------------------- | ||
| 14,638 | 14,638 | 10,027 | ||
| ============================ | ============================ | ============================ | ||
| Auditors’ remuneration | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Fees payable for the audit of the financial statements | 3,700 | 3,700 | ||
| ======================= | ======================= |
10. Analysis of support costs
11. Auditors’ remuneration
12. Staff costs
There were no employees during the period.
13. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
14. Tangible fixed assets
| Land and | Fixtures and | |||
|---|---|---|---|---|
| buildings | fittings | Total | ||
| £ | £ | £ | ||
| Cost | ||||
| At 1 July 2020 | 5,575,162 | 14,190 | 5,589,352 | |
| Additions | 473,621 | 42,859 | 516,480 | |
| ----------------------------------------- | ---------------------------- | ----------------------------------------- | ||
| At 30 June 2021 | 6,048,783 | 57,049 | 6,105,832 | |
| ========================================= | ============================ | ========================================= | ||
| Depreciation | ||||
| At 1 July 2020 and 30 June 2021 | – | – | – | |
| ========================================= | ============================ | ========================================= | ||
| Carrying amount | ||||
| At 30 June 2021 | 6,048,783 | 57,049 | 6,105,832 | |
| ========================================= | ============================ | ========================================= | ||
| At 30 June 2020 | 5,575,162 | 14,190 | 5,589,352 | |
| ========================================= | ============================ | ========================================= | ||
| Creditors: amounts falling due within one year | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Accruals and deferred income | 3,750 | 103,610 | ||
| Other creditors | 915,461 | 925,900 | ||
| -------------------------------- | ----------------------------------------- | |||
| 919,211 | 1,029,510 | |||
| ================================ | ========================================= | |||
| Creditors: amounts falling due after more than one | year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Bank loans and overdrafts | 49,436 | – | ||
| ============================ | ============== | |||
| Analysis of charitable funds | ||||
| Unrestricted funds | ||||
| At | ||||
| At | 30 June 202 | |||
| 1 July 2020 | Income | Expenditure | 1 | |
| £ | £ | £ | £ | |
| General funds | 4,707,071 | 838,825 | (29,253) | 5,516,643 |
| ========================================= | ================================ | ============================ | ========================================= | |
| At | At | |||
| 1 July 2019 | Income | Expenditure | 30 June 2020 | |
| £ | £ | £ | £ | |
| General funds | 3,404,890 | 1,312,208 | (10,027) | 4,707,071 |
| ========================================= | ========================================= | ============================ | ========================================= |
15. Creditors: amounts falling due within one year
16. Creditors: amounts falling due after more than one year
17. Analysis of charitable funds
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Gateshead Kehilla Building Foundation
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 30 June 2021
18. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2021 | |
| £ | £ | |
| Tangible fixed assets | 6,105,832 | 6,105,832 |
| Current assets | 379,458 | 379,458 |
| Creditors less than 1 year | (919,211) | (919,211) |
| Creditors greater than 1 year | (49,436) | (49,436) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 5,516,643 | 5,516,643 |
| ========================================= | ========================================= | |
| Unrestricted | Total Funds | |
| Funds | 2020 | |
| £ | £ | |
| Tangible fixed assets | 5,589,352 | 5,589,352 |
| Current assets | 147,229 | 147,229 |
| Creditors less than 1 year | (1,029,510) | (1,029,510) |
| Creditors greater than 1 year | – | – |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 4,707,071 | 4,707,071 |
| ========================================= | ========================================= |
19. Analysis of changes in net debt
| At | |||
|---|---|---|---|
| At 1 Jul 2020 | Cash flows | 30 Jun 2021 | |
| £ | £ | £ | |
| Cash at bank and in hand | 147,229 | 232,229 | 379,458 |
| Debt due after one year | – | (49,436) | (49,436) |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 147,229 | 182,793 | 330,022 | |
| ================================ | ================================ | ================================ |
20. Taxation
Gateshead Kehilla Building Foundation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
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