**REGISTERED COMPANY NUMBER: 09816576 (England and Wales) REGISTERED CHARITY NUMBER: 1166465**
## **REPORT OF THE TRUSTEES AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020**
## **FOR**
## **TCHERNOBEL FOUNDATION LIMITED**
Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
**TCHERNOBEL FOUNDATION LIMITED**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|3|
|**Independent Examiner's Report**||4||
|**Statement of Financial Activities**||5||
|**Statement of Financial Position**|6|to|7|
|**Statement of Cash Flows**||8||
|**Notes to the Statement of Cash Flows**||9||
|**Notes to the Financial Statements**|10|to|15|
**TCHERNOBEL FOUNDATION LIMITED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 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 of the company are: a) to advance the orthodox Jewish faith for the benefit of the public.
b) to promote any other exclusively charitable objects and purposes as the trustees see fit provided that they are regarded as charitable by the law of England and Wales.
To achieve its charitable objective, the charity procured premises for the construction of synagogue in 2016. The synagogue is a congregation formed with the objects of advancing the Jewish faith by the provision and maintenance of public worship and for such other charitable purposes as the governing body shall determine.
## **Public benefit**
The trustees confirm that they have referred to the guidance contained in the Charity's Commission's general guidance on public benefit when reviewing the charity's aims and objectives and planning future activities and setting the grant making policy for the year.
## **Grantmaking**
Grants are made at the discretion of the trustees and in accordance with the objectives of the charity. During the year under review, all the funds were utilized in construction of the synagogue. Grant was not made during the year.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
The charity received donations of £675,950 (2019: £378,626) during the year under review. The charity organized events which were addressed by a Rabbi imparting religious knowledge onto the attendees.
## **FINANCIAL REVIEW**
## **Principal funding sources**
The principal source of funding for the charity comes from voluntary donations from individuals and businesses associated with the trustees.
## **Reserves policy**
The trustees have a policy of maintaining unrestricted funds at an adequate level, which are the free reserves of the charity. The voluntary donations collected during the year under review are sufficient to cover the administrative and support costs of the charity.
## **Going concern**
The trustees are confident that the charity will continue to operate in the foreseeable future.
## **FUTURE PLANS**
The charity plans to continue its activities subject to satisfactory incoming resources.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, its memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Page 1
## **TCHERNOBEL FOUNDATION LIMITED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Recruitment and appointment of new trustees**
The directors of the company are also charity trustees for the purposes of charity law. The appointment, retirement and removal of directors are governed by the Article of Association.
The charity may by ordinary resolution appoint a person who is willing to act as a director (s31, AOA) subject to qualifying conditions set out in Articles of Association.
Under the requirement of Section 29 of the Articles of Association, the trustees must retire from the office at the first annual general meeting after which they must be re-elected. The trustees have been reelected to assume office until the next annual general meeting.
## **Induction and training of new trustees**
The trustees have not currently envisaged appointment of new trustees. Should the situation change in the future, the trustees will apply suitable recruitment and training procedures.
## **Related parties**
Related party transactions and balances are disclosed in the notes to the financial statements.
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
09816576 (England and Wales)
## **Registered Charity number**
1166465
## **Registered office**
1 Heather Lodge St Kildas Road London N16 5BT
## **Trustees**
D Kuflik Company Director J Ollech A Spitzer C E Josefovitz
## **Company Secretary**
M Bindinger
Page 2
**TCHERNOBEL FOUNDATION LIMITED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020**
## **REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner**
M A VENITT A.C.A Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
Approved by order of the board of trustees on 9 November 2020 and signed on its behalf by:
C E Josefovitz - Trustee
Page 3
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF TCHERNOBEL FOUNDATION LIMITED**
## **Independent examiner's report to the trustees of Tchernobel Foundation Limited ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2020.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 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 A.C.A which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
M A VENITT A.C.A Venitt and Greaves Chartered Accountants 115 Craven Park Road South Tottenham London N15 6BL
9 November 2020
Page 4
## **TCHERNOBEL FOUNDATION LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**EXPENDITURE ON**
Raising funds
3
**Charitable activities**
4
Religious event
Other
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|31.10.20
Unrestricted
funds
£
675,950
6,895
54,137
30,626
91,658
584,292
1,441,118
2,025,410|31.10.19
Total
funds
£
378,626
920
7,095
19,019|
|---|---|---|
|||27,034|
|||351,592
1,089,526|
|||1,441,118|
The notes form part of these financial statements
Page 5
## **TCHERNOBEL FOUNDATION LIMITED**
## **STATEMENT OF FINANCIAL POSITION 31 OCTOBER 2020**
|Notes
**FIXED ASSETS**
Tangible assets
9
**CURRENT ASSETS**
Cash at bank
**CREDITORS**
Amounts falling due within one year
10
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
11
Unrestricted funds:
General fund
Revaluation Reserve
**TOTAL FUNDS**|31.10.20
Unrestricted
funds
£
2,720,764
369
(695,723)
(695,354)
2,025,410
2,025,410
1,878,944
146,466
2,025,410
2,025,410|31.10.19
Total
funds
£
2,231,681
976
(791,539)
(790,563)
1,441,118
1,441,118
1,294,652
146,466
1,441,118
1,441,118|
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 6
continued...
**TCHERNOBEL FOUNDATION LIMITED**
## **STATEMENT OF FINANCIAL POSITION - continued 31 OCTOBER 2020**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved and authorized for issue by the Board of Trustees and authorised for issue on 9 November 2020 and were signed on its behalf by:
C E Josefovitz - Trustee
The notes form part of these financial statements
Page 7
## **TCHERNOBEL FOUNDATION LIMITED**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2020**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Net cash used in investing activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning**
**of the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|31.10.20
£
510,876
(22,400)
488,476
(489,083)
(489,083)
(607)
976
369|31.10.19
£
900,999
-
900,999
(902,781)
(902,781)
(1,782)
2,758
976|
|---|---|---|
The notes form part of these financial statements
Page 8
## **TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2020**
|**1.**|**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM**|**OPERATING ACTIVITIES**|**OPERATING ACTIVITIES**|
|---|---|---|---|
|||31.10.20|31.10.19|
|||£|£|
||**Net income for the reporting period (as per the Statement of Financial**|||
||**Activities)**|584,292|351,592|
||**Adjustments for:**|||
||Interest paid|22,400|-|
||Decrease in debtors|-|428|
||(Decrease)/increase in creditors|(95,816)|548,979|
||**Net cash provided by operations**|510,876|900,999|
|2.|**ANALYSIS OF CHANGES IN NET FUNDS**|||
||At 1.11.19|Cash flow|At 31.10.20|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|976|(607)|369|
||976|(607)|369|
|**Total**|976|(607)|369|
The notes form part of these financial statements
Page 9
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Critical accounting judgements and key sources of estimation uncertainty**
The preparation of the financial statements under Charities SORP (FRS 102) requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the process of applying the entity's accounting policies, the trustees used their knowledge of local properties and market condition to estimate the fair value of the freehold property whch has significant effect on the amounts recognized in the financial statements.
## **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.
## **Governance costs**
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and includes the independent examination fees and costs linked to the strategic management of the charity.
## **Tangible fixed assets**
The class of "Long leasehold" included in tangible fixed asset is measured initially at cost and subsequently at revalued amount being its fair value at the date of revaluation less any subsequent accumulated depreciation and accumulated impairment losses.
Land is not depreciated and building is depreciation at nil rate.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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.
continued...
Page 10
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2020**
## **1. ACCOUNTING POLICIES - continued**
## **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 recognized at transaction value and subsequently measured at their settlement value.
## **2. DONATIONS AND LEGACIES**
|Donations
**3.**
**RAISING FUNDS**
**Raising donations and legacies**
Food expenses
**4.**
**CHARITABLE ACTIVITIES COSTS**
Religious event
**5.**
**SUPPORT COSTS**
Management
£
Other resources expended
5,908
**6.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Independent examination fees|31.10.20
£
675,950
31.10.20
£
6,895
Governance
Finance
costs
£
£
23,038
1,680
31.10.20
£
1,680|31.10.19
£
378,626|
|---|---|---|
|||31.10.19
£
920
Direct
Costs
£
54,137
Totals
£
30,626
31.10.19
£
1,320|
continued...
Page 11
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2020**
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 October 2020 nor for the year ended 31 October 2019.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 October 2020 nor for the year ended 31 October 2019.
## **8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
## **9.**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Religious event
Other
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 November 2019
Additions
At 31 October 2020
**NET BOOK VALUE**
At 31 October 2020
At 31 October 2019||Unrestricted
funds
£
378,626
920
7,095
19,019|
|---|---|---|
|||27,034|
|||351,592
1,089,526|
|||1,441,118|
|||Long
leasehold
£
2,231,681
489,083
2,720,764
2,720,764
2,231,681|
||||
||||
||||
continued...
Page 12
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2020**
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Other creditors
Loan creditors
Accrued expenses|31.10.20
£
120
692,003
3,600
695,723|31.10.19
£
119
789,500
1,920|
|---|---|---|
|||791,539|
Loan creditors includes an interest free, short term loan of £51,500 (2019: £402,500) from Yesamach Levav Trust, (related party) secured by personal guarantee from charity trustees Mr. C Josefovitz and Mr. D Kuflik.
## **11. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Revaluation Reserve
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
Revaluation Reserve
**TOTAL FUNDS**|At
1.11.19
£
1,294,652
146,466
1,441,118
1,441,118
Incoming
resources
£
675,950
675,950
At
1.11.18
£
943,060
146,466
1,089,526
1,089,526||Net
movement
in funds
£
584,292
-
584,292
584,292
Resources
expended
£
(91,658)
(91,658)
Net
movement
in funds
£
351,592
-
351,592
351,592|At
31.10.20
£
1,878,944
146,466|
|---|---|---|---|---|
|||||2,025,410|
|||||2,025,410|
|||||Movement
in funds
£
584,292
584,292
At
31.10.19
£
1,294,652
146,466|
|||||1,441,118|
|||||1,441,118|
continued...
Page 13
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2020**
## **11. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
378,626
378,626|Resources
Movement
expended
in funds
£
£
(27,034)
351,592
(27,034)
351,592|Resources
Movement
expended
in funds
£
£
(27,034)
351,592
(27,034)
351,592|
|---|---|---|---|
||||351,592|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
Revaluation Reserve
**TOTAL FUNDS**|At
1.11.18
£
943,060
146,466
1,089,526
1,089,526|Net
movement
in funds
£
935,884
-
935,884
935,884|At
31.10.20
£
1,878,944
146,466|
|---|---|---|---|
||||2,025,410|
||||2,025,410|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
1,054,576
**TOTAL FUNDS**
1,054,576|Resources
Movement
expended
in funds
£
£
(118,692)
935,884
(118,692)
935,884|Resources
Movement
expended
in funds
£
£
(118,692)
935,884
(118,692)
935,884|
|---|---|---|
|||935,884|
continued...
Page 14
**TCHERNOBEL FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2020**
## **12. RELATED PARTY DISCLOSURES**
During the year under review, the charity had the following related party transactions and balance with Yesamach Levav Trust, a charity related by virtue of related trustees. The following balance is included within the loan creditors balance of note 10.
||Amount in £|
|---|---|
|**Opening loan balance**|**402,500**|
|Loan received|411,200|
|Loan repaid|762,200|
|**Closing loan balance**|**51,500**|
Apart from the related party transactions and balance stated above, there are no other related party transaction that require disclosure.
Page 15