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2020-08-31-accounts

Charity Registration No. 1170620

Company Registration No. 09164396 (England and Wales)

KOLLEL MISHKON YAKOV

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

KOLLEL MISHKON YAKOV

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rabbi Y D Hershberg Mr E Feldman Rabbi J L Weiss Charity number 1170620 Company number 09164396 Principal address 8 Gilda Crescent London N16 6JP UK Registered office 32 Castlewood Road London N16 6DW London N16 6DW Independent examiner Mr J Silver FCCA Precision Ltd 32 Castlewood Road London N16 6DW

KOLLEL MISHKON YAKOV

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 11

KOLLEL MISHKON YAKOV

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report and financial statements for the year ended 31 August 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects are the advancement of the Orthodox Jewish Religion, the advancement of Orthodox Jewish education and the prevention and relief of poverty.

The charity achieves these objectives primarily through providing grants to educational institutions and individuals, and operating an academy for the learning of higher Rabbinical studies and Jewish learning for young men in the UK.

The trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the charity's aims and objectives and in planning future activities .

The charity is funded by donations. Grants are made to charitable institutions and organisations which accord with the objects of the charity. The trustees consider all requests which they receive and make donations based on the level of funds available.

Achievements and performance

The charity continued its philanthropic activities in support of religious educational and other charitable activities during the year.

In the year under review the charity generated income of £ 209,904 and incurred expenses of £187,212 resulting in net incoming resources of £22,692 .

Financial review

The financial position of the charity is satisfactory. The charity's statement of financial activities shows total free reserves of £ 48,671 as at the 31 August 2020 .

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level which will not impinge on its ability to continue its charitable activities.

Under the Trust Deed, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy.

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association .

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Rabbi Y D Hershberg Mr E Feldman Rabbi J L Weiss

KOLLEL MISHKON YAKOV

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The power to appoint new trustees is vested in the current board. It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures.

The day to day affairs of the charity are administered by the trustees.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' r eport was approved by the Board of Trustees.

..............................

Rabbi Y D Hershberg

Trustee Dated: .........................

KOLLEL MISHKON YAKOV

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KOLLEL MISHKON YAKOV

I report to the trustees on my examination of the financial statements of Kollel Mishkon Yakov (the charity) for the year ended 31 August 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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 that in any material respect:

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 financial statements to be reached.

J Silver FCCA Independent Examiner Precision Ltd 32 Castlewood Road N16 6DW

Dated: .........................

KOLLEL MISHKON YAKOV

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
funds
2020
Notes
£
Income from:
Donations and legacies
3
209,904
Expenditure on:
Charitable activities
4
187,212
Net income/(expenditure) for the year/
Net movement in funds
22,692
Fund balances at 1 September 2019
25,979
Fund balances at 31 August 2020
48,671		 Total
2019
£
295,548
309,201
(13,653)
39,632
25,979

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

KOLLEL MISHKON YAKOV

BALANCE SHEET

AS AT 31 AUGUST 2020

2020
Notes
£
Current assets
Debtors
9
135,811
Cash at bank and in hand
18,645
154,456
Creditors: amounts falling due within
one year
10
(105,785)
Net current assets
Income funds
Unrestricted funds		 2019
£
£
138,395
5,392
143,787
(117,808)
48,671
48,671
48,671		 £
25,979
25,979
25,979

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2020.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................

..............................

Rabbi Y D Hershberg Trustee

Company Registration No. 09164396

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Charity information

Kollel Mishkon Yakov is a private company limited by guarantee incorporated in England and Wales and is a registered charity in England and Wales. The address of the registered office is 32 Castlewood Road, London, N16 6DW.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.5 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:

E xpenditure 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.

All costs are a l located 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.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The preparation of the se financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.

3 Donations and legacies

Unrestricted
funds
2020
£
Donations and gifts
193,318
Government grants
16,586
209,904		 Total
2019
£
295,548
-
295,548

The above grants relate to payments received under the Coronavirus Job Retention Scheme.

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

4 Charitable activities

Charitable
Expenditure
Academy
Expenditure
2020
2020
£
£
Staff costs
-
66,622
Costs of Academy
-
13,147
-
79,769
Grant funding of activities (see note 5)
103,650
-
Share of governance costs (see note 6)
3,793
-
107,443
79,769		 Total
2020
£
66,622
13,147
79,769
103,650
3,793
187,212		 Total
2019
£
61,511
11,391
72,902
232,291
4,008
309,201

5 Grants payable

Charitable
Charitable
Expenditure
Expenditure
2020
2019
£
£
Grants to institutions:
Kolel Belz Machnovke Limited -
86,870
Care All Ltd 5,500
-
Other 3,250
11,832
8,750
98,702
Grants to individuals 94,900
133,589
103,650
232,291

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

6 Support costs

Support
costs
Governance
costs
£
£
Accountancy
-
1,200
Legal and professional
-
2,590
Bank charges
-
3
-
3,793
Analysed between
Charitable activities
-
3,793		 2020
£
1,200
2,590
3
3,793
3,793		 2019
£
1,200
2,601
207
4,008
4,008

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
9
Debtors
Amounts falling due within one year:
Other debtors		 2020
Number
10
2020
£
66,622
2020
£
135,811		 2019
Number
10
2019
£
61,511
2019
£
138,395

Other debtors includes £99,476 (2019: £119,395) due from Kolel Belz Machnovkeh Limited and £19,000 (2019: £19,000) due from Ridgesave Limited of which certain of the Trustees of the Charitable Company are also Trustees of the debtor charitable companies. The loans were interest free and are repayable on demand. In the opinion of the Trustees the amounts are fully recoverable .

KOLLEL MISHKON YAKOV

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

10 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
447
102,518
2,820
105,785		 2019
£
140
116,468
1,200
117,808

Included in other creditors is £31,550 (2019: £39,000) due to a company in which one of the trustees is also a director and £70,968 (2019: £77,468) is due to one of the trustees. The loans a re interest free and repayable on demand.

11 Related party transactions

Other than the transactions disclosed in notes 9 & 10 t here were no disclosable related party transactions during the year (2019 - none).