COMPANY REGISTRATION NUMBER: 10067677 CHARITY REGISTRATION NUMBER: 1167432
Rubislaw Foundation Company Limited by Guarantee Consolidated Financial Statements 31 December 2020
HAFFNER HOFF LTD
Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
Rubislaw Foundation
Company Limited by Guarantee
Consolidated Financial Statements
Year ended 31 December 2020
| Pages | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 to 5 |
| Independent auditor's report to the members | 6 to 11 |
| Consolidated statement of financial activities (including income | |
| and expenditure account) | 12 |
| Consolidated balance sheet | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Notes to the consolidated financial statements | 16 to 25 |
Rubislaw Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2020
The trustees, who are also the directors for the purposes of company law, present their report and the consolidated financial statements of the charity for the year ended 31 December 2020.
Reference and administrative details
Registered charity name Rubislaw Foundation Charity registration number 1167432 Company registration number 10067677 Principal office and registered 2nd Floor - Parkgates office Bury New Road Prestwich Manchetser M25 0TL The trustees D Bistricer T Rudinsky M Richman Auditor Haffner Hoff Ltd Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
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Rubislaw Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2020
Structure, governance and management
Rubislaw Foundation is constituted by Memorandum and Articles of Association and is a company limited by guarantee. It was incorporated on 16 March 2016 as a company and the company number is 10067677. It was registered as a charity on 18 May 1981 with a charity number 1167432.
The Charity is run by the trustees who all act in an honorary capacity. A new trustee would receive copies of the previous years' Annual Report and Accounts and a copy of the Charity Commission leaflet 'The Essential Trustee : What you need to know'.
Group structure and relationships The charity has the following wholly owned non-charitable subsidiaries;
F.Parham Limited (Company number 00252045) Wembley Metro Limited (Company number 12278442) Hempstead Valley Investments Limited (Company number 11885347)
Hempstead Valley Investments Limited is a partner together with Hempstead Valley Holdings Limited (Company number 11866865) in Hempstead Valley LLP (Company number OC426327) which holds legal title to the Hempstead Valley Shopping Centre,
The subsidiaries are property trading and investment companies incorporated in England and Wales.
Risk Management
The trustees have identified and reviewed 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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Rubislaw Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2020
Objectives and activities
The charity's objects are; a) for the public benefit to promote the education of people of all ages around the world in such ways as the charity trustees think fit, including awarding to such persons scholarships, maintenance allowances or grants; or by grants to charities or other organizations worldwide that provide education;
b) the prevention or relief of poverty or financial hardship anywhere in the world by providing: grants or loans to individuals in need and/or charities, or other organizations working to prevent or relieve poverty or financial hardship;
c) to advance the orthodox Jewish religion worldwide for the benefit of the public in accordance with the principles of the code of Jewish law (shulchan aruch).
Public Benefit Policy
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Grant-Making Policy
The Charity receives many applications for grants, both by mail and verbally. Each application is considered against the criteria established by the Charity is well known within its community and there are many requests for grants. Feedback received is used to monitor the quality of grants.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
Achievements and performance
During the year the charity made grants totalling £700 in furtherance of its objectives. The last two years have seen the charity focus on purchasing two significant investments. The intention is to expand its charitable activities in future years once the investments and related financing have stabilised.
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Rubislaw Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2020
Financial review
As at 31 December 2020 the group had a deficiency in free reserves of £6,741,055 (2019 : £14,071,438). However there are no material uncertainties about the charity's ability to continue. There are £6.285m of loan creditors from connected parties who have given their assurance that they will not call in these to the detriment of the cash flow of the charity. Therefore the trustees consider the charity not to be financially exposed.
Reserves Policy
It is the policy of the Charity to hold reserves sufficient to maintain regular grants. As the charity is presently largely reliant on donations received from trading companies where profits levels are variable, the Trustees feel it would be prudent to maintain reserves at such a level that would enable the charity to generate its own income to meet this aim.
Investment Policy
The trustees have considered the most appropriate policy for investing funds and have invested in a property.
The charity invested in the Hempstead Valley Shopping Centre in Kent and in an apartment block in Wembley in 2019 and the trustees believe these to be sound investments.
Coronavirus
The trustees have considered the impact of coronavirus on the charity and specifically on the value of the investment properties. There are no material indications yet to suggest a reduction in the values. Revenues from the properties have been robust in the next financial year (2020). The Shopping Centre’s primary revenue stream is from Ground Rent which has been received in full in this and in the next financial year and is not directly susceptible to fluctuations in demand. The apartment block in Wembley has produced a steady return of 5% in this financial year and has followed the pattern of residential property country-wide, more than maintaining their value during the pandemic.
Plans for future periods
The charity has adequate resources to continue distributing funds to other charities in accordance with its objects.
Trustees' responsibilities statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the consolidated 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 consolidated 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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Rubislaw Foundation
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2020
In preparing these consolidated 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 consolidated financial statements;
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prepare the consolidated 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 consolidated 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 trustees' annual report and the strategic report were approved on 4 March 2022 and signed on behalf of the board of trustees by:
D A Bistricer Trustee
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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation
Year ended 31 December 2020
Opinion
We have audited the consolidated financial statements of Rubislaw Foundation (the 'charity') for the year ended 31 December 2020 which comprise the consolidated statement of financial activities (including income and expenditure account), consolidated balance sheet, 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 our opinion the consolidated financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 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
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the consolidated 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 consolidated 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 consolidated financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the consolidated 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 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 consolidated financial statements are authorised for issue.
Our 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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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation (continued)
Year ended 31 December 2020
Other information
The other information comprises the information included in the annual report, other than the consolidated financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the consolidated financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise 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 consolidated financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our 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 consolidated financial statements are prepared is consistent with the consolidated financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are 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, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the consolidated 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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we have not received all the information and explanations we require for our audit.
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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation (continued)
Year ended 31 December 2020
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 consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated 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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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation (continued)
Year ended 31 December 2020
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 our 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 consolidated 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 detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Auditor's approach to assessing the risks of material misstatement due to irregularities, including fraud Detail the auditor's approach to assessing the risks of material misstatement due to fraud and NOCLAR.
Our approach was as follows:
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:-
Charity Act 2011 - as this entity is a charity;
AML provisions - inherent with all organisations.
FRS 102 reporting framework.
HMRC regulations for charities and gift aid reclaim
Data protection
The following particular considerations in respect of fraud were assessed. We assessed the risks of material misstatement in respect of fraud as follows:
Reviewed unusual or large transactions; Complex transactions if applicable; Analytical procedures; One off transactions.
We made fraud enquiries of during the audit from:-
Management;
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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation (continued)
Year ended 31 December 2020
those charged with governance;
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;
legal counsel as applicable;
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.
Reviewing the entity's policies and procedures for compliance with those laws and regulations based on our knowledge of the client and the regulations.
Follow up of all suspected non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud that will be fully documented
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the consolidated 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 our 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 we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our 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 consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Rubislaw Foundation
Company Limited by Guarantee
Independent Auditor's Report to the Members of Rubislaw Foundation (continued)
Year ended 31 December 2020
We 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 we identify during our audit.
Use of our 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. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Dov Schwarz (Senior Statutory Auditor)
For and on behalf of Haffner Hoff Ltd Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
4 March 2022
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Rubislaw Foundation
Company Limited by Guarantee
Consolidated Statement of Financial Activities (Including Income and Expenditure Account)
Year ended 31 December 2020
| 2020 | 2020 | 2019 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Investment income | 5 | 2,092,194 | 2,092,194 | 1,165,254 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 2,092,194 | 2,092,194 | 1,165,254 | |
| ========================================= | ========================================= | ========================================= | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 6 | 1,404,961 | 1,404,961 | 827,376 |
| Expenditure on charitable activities | 7,8 | 24,741 | 24,741 | 50,347 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 1,429,702 | 1,429,702 | 877,723 | |
| ========================================= | ========================================= | ========================================= | ||
| Net gains on investments | 11 | – | – | 14,152,089 |
| ----------------------------------------- | ----------------------------------------- | ---------------------------------------------- | ||
| Net income and net movement in funds | 662,492 | 662,492 | 14,439,620 | |
| ========================================= | ========================================= | ============================================== | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 15,759,916 | 15,759,916 | 1,320,296 | |
| ---------------------------------------------- | ---------------------------------------------- | ---------------------------------------------- | ||
| Total funds carried forward | 16,422,408 | 16,422,408 | 15,759,916 | |
| ============================================== | ============================================== | ============================================== |
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 16 to 25 form part of these consolidated financial statements.
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Rubislaw Foundation
Company Limited by Guarantee
Balance Sheet
31 December 2020
Consolidated
| Consolidated | 2020 | 2019 | |
| Note | £ | £ | |
| Fixed assets | |||
| Investments | 15 | 63,675,464 | 63,683,809 |
| Current assets | |||
| Debtors | 17 | 79,773 | 16,195 |
| Cash at bank and in hand | 220,362 | 237,391 | |
| -------------------------------- | -------------------------------- | ||
| 300,135 | 253,586 | ||
| Creditors: amounts falling due within one year | 18 | 7,041,190 | 14,325,024 |
| ----------------------------------------- | ---------------------------------------------- | ||
| Net current liabilities | 6,741,055 | 14,071,438 | |
| ---------------------------------------------- | ---------------------------------------------- | ||
| Total assets less current liabilities | 56,934,409 | 49,612,371 | |
| Creditors: amounts falling due after more than one year | 19 | 40,512,001 | 33,852,455 |
| ---------------------------------------------- | ---------------------------------------------- | ||
| Net assets | 16,422,408 | 15,759,916 | |
| ============================================== | ============================================== | ||
| Funds of the charity | |||
| Unrestricted funds | 16,422,408 | 15,759,916 | |
| ---------------------------------------------- | ---------------------------------------------- | ||
| Total charity funds | 21 | 16,422,408 | 15,759,916 |
| ============================================== | ============================================== |
These consolidated financial statements were approved by the board of trustees and authorised for issue on 4 March 2022, and are signed on behalf of the board by:
D A Bistricer Trustee
The notes on pages 16 to 25 form part of these consolidated financial statements.
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Rubislaw Foundation
Company Limited by Guarantee
Balance Sheet
31 December 2020
| Parent | 2020 | 2019 | ||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Current assets | ||||
| Debtors | 17 | 22,088,937 | 28,785,550 | |
| Cash at bank and in hand | 853 | 1,021 | ||
| ---------------------------------------------- | ---------------------------------------------- | |||
| 22,089,790 | 28,786,571 | |||
| Creditors: amounts falling due within one year | 18 | 5,367,001 | 12,662,635 | |
| ---------------------------------------------- | ---------------------------------------------- | |||
| Net current assets | 16,722,789 | 16,123,936 | ||
| ---------------------------------------------- | ---------------------------------------------- | |||
| Total assets less current liabilities | 16,722,789 | 16,123,936 | ||
| ---------------------------------------------- | ---------------------------------------------- | |||
| Net assets | 16,722,789 | 16,123,936 | ||
| ============================================== | ============================================== | |||
| Funds of the charity | ||||
| Unrestricted funds | 16,722,789 | 16,123,936 | ||
| ---------------------------------------------- | ---------------------------------------------- | |||
| Total charity funds | 21 | 16,722,789 | 16,123,936 | |
| ============================================== | ============================================== |
These financial statements were approved by the board of trustees and authorised for issue on 4 March 2022.
D A Bistricer Trustee
The notes on pages 16 to 25 form part of these consolidated financial statements.
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Rubislaw Foundation
Company Limited by Guarantee
Consolidated Statement of Cash Flows
Year ended 31 December 2020
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 662,492 | 14,439,620 |
| Adjustments for: | ||
| Net gains on investments | – | (14,152,089) |
| Dividends, interest and rents from investments | (2,092,194) | (1,150,769) |
| Other interest receivable and similar income | – | (14,485) |
| Accrued expenses | 19,814 | 25,004 |
| Changes in: | ||
| Trade and other debtors | (63,578) | 249,514 |
| Trade and other creditors | (7,253,066) | 13,991,966 |
| ----------------------------------------- | ---------------------------------------------- | |
| Cash generated from operations | (8,726,532) | 13,388,761 |
| Interest paid | 25,026 | 76,953 |
| Interest received | – | 14,485 |
| ----------------------------------------- | ---------------------------------------------- | |
| Net cash (used in)/from operating activities | (8,701,506) | 13,480,199 |
| ========================================= | ============================================== | |
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | 2,092,194 | 1,150,769 |
| Purchases of other investments | (655) | (48,606,799) |
| Movements on other investments | (9,000) | 75,079 |
| ----------------------------------------- | ---------------------------------------------- | |
| Net cash from/(used in) investing activities | 2,082,539 | (47,380,951) |
| ========================================= | ============================================== | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 6,583,938 | 34,078,456 |
| ----------------------------------------- | ---------------------------------------------- | |
| Net cash from financing activities | 6,583,938 | 34,078,456 |
| ========================================= | ============================================== | |
| Net (decrease)/increase in cash and cash equivalents | (35,029) | 177,704 |
| Cash and cash equivalents at beginning of year | 237,391 | 59,687 |
| -------------------------------- | ---------------------------------------------- | |
| Cash and cash equivalents at end of year | 220,362 | 237,391 |
| ================================ | ============================================== |
The notes on pages 16 to 25 form part of these consolidated financial statements.
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Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements
Year ended 31 December 2020
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 2nd Floor - Parkgates, Bury New Road, Prestwich, Manchetser, M25 0TL.
2. Statement of compliance
These consolidated 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 consolidated 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 consolidated 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. See note in Financial Review section in Trustees’ Report
Judgements and key sources of estimation uncertainty
The main judgements, estimates or assumptions that affect the amounts reported are the valuation of the Investments which are updated to fair value on information prepared by trustees.
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.
Incoming resources
All income is 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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Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
3. Accounting policies (continued)
Incoming resources (continued)
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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.
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, noncharitable 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.
Investments
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in income or expenditure.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
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Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
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 cashgenerating 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 entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or paable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
4. Limited by guarantee
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.
5. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Income from investment properties | 2,092,194 | 2,092,194 | 1,150,769 | 1,150,769 |
| Other interest receivable | – | – | 14,485 | 14,485 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | |
| 2,092,194 | 2,092,194 | 1,165,254 | 1,165,254 | |
| ========================================= | ========================================= | ========================================= | ========================================= |
- 18 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
6. Investment management costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Rent collection | (99) | (99) |
– | – |
| Property repairs and maintenance | ||||
| charges | 96,003 | 96,003 | 2,690 | 2,690 |
| Loan interest | 1,198,585 | 1,198,585 | 809,722 | 809,722 |
| Finance costs | 19,227 | 19,227 | 5,625 | 5,625 |
| Insurance | 25,441 | 25,441 | 3,872 | 3,872 |
| Commissions | 51,516 | 51,516 | 5,096 | 5,096 |
| Other costs | 14,288 | 14,288 | 371 | 371 |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | -------------------------------- | |
| 1,404,961 | 1,404,961 | 827,376 | 827,376 | |
| ========================================= | ========================================= | ================================ | ================================ | |
| Expenditure on charitable activities | by fund type | |||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Grants payable | 700 | 700 | 22,440 | 22,440 |
| Support costs | 24,041 | 24,041 | 27,907 | 27,907 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 24,741 | 24,741 | 50,347 | 50,347 | |
| ============================ | ============================ | ============================ | ============================ | |
| Expenditure on charitable activities | by activity type | |||
| Grant funding | Support | Total funds | Total fund | |
| of activities | costs | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Grants payable | 700 | – | 700 | 22,440 |
| Governance costs | – | 24,041 | 24,041 | 27,907 |
| -------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 700 | 24,041 | 24,741 | 50,347 | |
| ============== | ============================ | ============================ | ============================ | |
| Analysis of grants | ||||
| 2020 | 2019 | |||
| £ | £ | |||
| Grants to institutions | ||||
| Friends of Yeshiva Luzern | – | 15,000 | ||
| Further grants below £3,000 | 700 | 7,440 | ||
| -------------- | ---------------------------- | |||
| 700 | 22,440 | |||
| -------------- | ---------------------------- | |||
| Total grants | 700 | 22,440 | ||
| ============== | ============================ |
7. Expenditure on charitable activities by fund type
8. Expenditure on charitable activities by activity type
9. Analysis of grants
The above grants were made to institutions and went towards the following purposes; the relief of poverty, relief of those in need by reason of ill health or disability, the advancement of Jewish religion and the advancement of Jewish religious education.
- 19 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
10. Taxation
The corporation tax charge in these accounts relates to F. Parham Ltd, a subsidiary undertaking.
11. Net gains on investments
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Gains on revaluation of investment | ||||
| property | – | – | 49,872,091 | 49,872,091 |
| Losses on other investment assets | – | – | (35,720,002) | (35,720,002) |
| -------------- | -------------- | ---------------------------------------------- | ---------------------------------------------- | |
| – | – | 14,152,089 | 14,152,089 | |
| ============== | ============== | ============================================== | ============================================== |
Gains on revaluation of investment property in the prior year represent the uplift to market value on acquisition of the Hempstead Valley Shopping Centre, previously held at cost.
The loss on other investment assets in the prior yearrepresents the loss in the value of the equity in the subsidiary undertaking, F Parham Ltd on transfer of the property to another group entity.
12. Auditors remuneration
| 2020 | 2019 | ||
|---|---|---|---|
| £ | £ | ||
| Fees | payable for the audit of the consolidated financial statements | 8,400 | 8,000 |
| ======================= | ======================= | ||
| Fees | payable to the charity's auditor and its associates for other services: | ||
| Other | non-audit services | 8,550 | 9,900 |
| ======================= | ======================= |
13. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2020 | 2019 |
|---|---|
| £ | £ |
| Nil | Nil |
The average head count of employees during the year was Nil (2019: Nil).
No employee received employee benefits of more than £60,000 during the year (2019: Nil).
14. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received or expenses reimbursed by the trustees.
- 20 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
15. Investments
| Investment | |
|---|---|
| properties | |
| £ | |
| Cost or valuation | |
| At 1 January 2020 | 63,674,809 |
| Additions | 655 |
| ---------------------------------------------- | |
| At 31 December 2020 | 63,675,464 |
| ============================================== | |
| Impairment | |
| At 1 January 2020 and 31 December 2020 | |
| Carrying amount | |
| At 31 December 2020 | 63,675,464 |
| ============================================== | |
| At 31 December 2019 | 63,674,809 |
| ============================================== |
All investments shown above are held at valuation.
Investment properties
The investment properties are stated at market value as per the recent professional valuations by qualified valuers with recent experience of similar properties.
There are no investments in the parent accounts as the properties are held in the subsidiary undertakings.
16. Investment entities
Subsidiaries and other investments
| Percentage | |||
|---|---|---|---|
| Class of | of shares | ||
| Registered office | share | held | |
| Subsidiary undertakings | |||
| F.Parham Limited | 1st Floor Cloister House | ||
| New Bailey Street | Ordinary | – | |
| Salford | |||
| M3 5FS | |||
| Wembley Metro Limited | 1st Floor Cloister House | Ordinary | 100 |
| New Bailey Street | |||
| Salford | |||
| M3 5FS | |||
| Hempstead Valley Investments Limited 1st Floor Cloister House | Ordinary | 100 | |
| New Bailey Street | |||
| Salford | |||
| M3 5FS |
- 21 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
The results for subsidiaries and other undertakings are as follows:
| Capital and | reserves | Profit/(loss) for | the year | |
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Subsidiary undertakings | ||||
| F.Parham Limited | (444,800) | (443,900) | (900) | (830) |
| Wembley Metro Limited | (185,768) | – | (185,769) | – |
| Hempstead Valley Investments Limited | (1,799) | (899) | (900) | (900) |
| ================================ | ================================ | ================================ | ============== | |
| Debtors | ||||
| 2020 | 2019 | |||
| £ | £ | |||
| Prepayments and accrued income | 18,931 | 16,195 | ||
| Other debtors | 60,842 | – | ||
──────── |
──────── |
|||
| 79,773 | 16,195 | |||
════════ |
════════ |
17. Debtors
The parent accounts show £22,089,747 (2019-£28,784,650) owed by the group and related undertakings to the parent.
A further £43 (2019-£900) is included in Other debtors in the parent representing a VAT repayment due, this is subsumed in the VAT liability in the group.
18. Creditors: amounts falling due within one year
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts (Secured) | 300,000 | 300,001 |
| Accruals and deferred income | 401,897 | 357,057 |
| Other creditors | 6,339,293 | 13,667,966 |
| ----------------------------------------- | ---------------------------------------------- | |
| 7,041,190 | 14,325,024 | |
| ========================================= | ============================================== |
Included in Accruals is £29,400 (2019- £17,400) due by the parent as audit and accountancy fees.
Included in Other creditors is £5,337,001 (2019-£12,645,235) due by the parent to its subsidiaries.
19. Creditors: amounts falling due after more than one year
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts (Secured) | 40,362,394 | 33,778,455 |
| Social security and other taxes | 149,607 | 74,000 |
| ---------------------------------------------- | ---------------------------------------------- | |
| 40,512,001 | 33,852,455 |
- 22 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
============================================== ============================================== Deferred income 2020 2019 £ £ Amount deferred in year 250,000 250,000
20. Deferred income
- 23 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
21. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | Gains and | |||||
| 1 | January | 20 | Income | Expenditure | losses | At 31 Dec 20 |
| £ | £ | £ | £ | £ | ||
| General funds | 15,759,916 | 2,092,194 | (1,429,702) | – | 16,422,408 | |
| ============================================== | ========================================= | ========================================= | ============== | ============================================== | ||
| At | ||||||
| At | Gains and | 31 December | ||||
| 1 | January | 19 | Income | Expenditure | losses | 2019 |
| £ | £ | £ | £ | £ | ||
| General funds | 1,320,296 | 1,165,254 | (877,723) | 14,152,089 | 15,759,916 | |
| ========================================= | ========================================= | ================================ | ============================================== | ============================================== | ||
| Analysis of net assets between funds | ||||||
| Unrestricted | Total Funds | |||||
| Funds | 2020 | |||||
| £ | £ | |||||
| Investments | 63,675,464 | 63,675,464 | ||||
| Current assets | 300,135 | 300,135 | ||||
| Creditors less than 1 year | (7,041,190) | (7,041,190) |
||||
| Creditors greater than 1 year | (40,512,001) | (40,512,001) | ||||
| ---------------------------------------------- | ---------------------------------------------- | |||||
| Net assets | 16,422,408 | 16,422,408 | ||||
| ============================================== | ============================================== | |||||
| Unrestricted | Total Funds | |||||
| Funds | 2019 | |||||
| £ | £ | |||||
| Investments | 63,683,809 | 63,683,809 | ||||
| Current assets | 253,586 | 253,586 | ||||
| Creditors less than 1 year | (14,325,024) | (14,325,024) | ||||
| Creditors greater than 1 year | (33,852,455) | (33,852,455) | ||||
| ---------------------------------------------- | ---------------------------------------------- | |||||
| Net assets | 15,759,916 | 15,759,916 | ||||
| ============================================== | ============================================== |
22. Analysis of net assets between funds
23. Analysis of changes in net debt
| At | At | ||
|---|---|---|---|
| 1 Jan 2020 | Cash flows | 31 Dec 2020 | |
| £ | £ | £ | |
| Cash at bank and in hand | 237,391 | (17,029) | 220,362 |
| Debt due within one year | (300,001) | 1 | (300,000) |
| Debt due after one year | (33,778,455) | (6,583,939) | (40,362,394) |
| ---------------------------------------------- | ----------------------------------------- | ---------------------------------------------- | |
| (33,841,065) | (6,600,967) | (40,442,032) | |
| ============================================== | ========================================= | ============================================== |
- 24 -
Rubislaw Foundation
Company Limited by Guarantee
Notes to the Consolidated Financial Statements (continued)
Year ended 31 December 2020
24. Related parties
Mr D A Bistricer, trustee of Rubislaw Foundation, is also a director and shareholder of Talisker (UK) Corporation.
£5,900,601 (2019:£13,208,235) was owing to Talisker (UK) Corporation during the year.
Mr D A Bistricer, trustee of Rubislaw Foundation, is also a director and shareholder of Didactic Global LLC.
Didactic Global LLC lent £385,074 (2019:£388,887) to Hempstead Valley LLP, a component of the Rubislaw Foundation group during the year.
The above loans are interest free and repayable on demand.
25. Taxation
Rubislaw Foundation is a registered charity and therefore is not liable to income tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
- 25 -