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2024-03-31-accounts

CHARITY REGISTRATION NUMBER: 1171009

Hearo Trust Fund Unaudited Financial Statements

31 March 2024

HAFFNER HOFF LTD

Accountants 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

Hearo Trust Fund

Financial Statements

Year ended 31 March 2024

Page
Trustees' annual report 1
Independent examiner's report to the trustees 6
Statement of financial activities 7
Statement of financial position 8
Notes to the financial statements 9

Hearo Trust Fund

Trustees' Annual Report

Year ended 31 March 2024

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2024.

Reference and administrative details

Registered charity name Hearo Trust Fund Charity registration number 1171009 Principal office 79 Windsor Road Prestwich Manchester M25 0DB The trustees T Adler C M Hassell S Roberts Independent examiner Mr Howard Schwalbe ACA 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

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Hearo Trust Fund

Trustees' Annual Report (continued)

Year ended 31 March 2024

Structure, governance and management

Hearo Trust Fund is an unincorporated charity constituted under a trust deed dated 06 July 2016. It is a registered charity with a charity number being 1171009 and was registered as a charity on 06 January 2017.

Recruitment and appointment of new trustees would be in line with the Trust Deed and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.

There is no chief executive officer. The day-to-day affairs are undertaken by Mr C M Hassell on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.

There are no policies for the induction or training of new trustees.

Risk review

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.

The risks faced by the trust are principally operational risks from ineffective grant making. These risks are managed by the trustees researching potential beneficiaries before granting donations.

Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all grants.

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Hearo Trust Fund

Trustees' Annual Report (continued)

Year ended 31 March 2024

Objectives and activities

The objects of the charity are: (i) For the public benefit 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 organisations worldwide that provide education. (ii) 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 organisations working to prevent or relieve poverty of financial hardship. (iii) 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

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.

Grant making policy

The charity has established its grant making policy to achieve its objects for the public benefit. The charity invites applications for funding through contacting local philanthropists to contribute towards projects that both the trustees and the philanthropists feel are appropriate for the charities objects.

The application of the funds by way of grants is to either institutions or individuals and is almost always to institutions.

The trustees consider they have met the public benefit test and outline these achievements below.

The trustees measure the success of achieving the stated aims by the number and value of grants paid out for each object. The grants paid out in the year are detailed in the notes to the accounts and the trustees consider they have met their aims successfully this year.

The trustees consider the shorter-term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.

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Hearo Trust Fund

Trustees' Annual Report (continued)

Year ended 31 March 2024

Achievements and performance

The charity received £137,567 in donations and grants during the year and £128,790 was paid out by way of grants and support costs. These grants were made in line with the stated objects of the charity and were for educational or relief of poverty purposes.

The charity also had investment income receivable during the year amounting to £18,200 with associated costs amounting to £4,871.

The charity has low governance costs comprising professional fees.

All other office costs are borne by a local benefactor and the trustees wish to record their appreciation to the benefactor for the free use of their offices.

Grants over £1,000 made during the year to institutions are as detailed in the accounts.

There were no material fundraising costs during the year.

Related party transactions are disclosed as applicable in the notes to the accounts.

There was a net income and net movement in funds for the year amounting to £22,106.

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Hearo Trust Fund

Trustees' Annual Report (continued)

Year ended 31 March 2024

Financial review

Investment performance

The investments of the charity have all performed reasonably well in the year with gross returns of 7% overall on investment. This is acceptable when compared to returns from bank deposits for which returns are far lower and do not allow for a capital growth potential.

These property investment returns are not overly exposed to any loan to value covenants that would put these investments at risk.

The trustees feel that the activity reflects the profile and standing within the local community. Overall the year was acceptable in terms of income generated from donations and grants paid out.

The impact for future year's expenditure is self-evident and the trustees would like to record their appreciation for all the financial support received from benefactors during the course of the year.

Reserves policy

The unrestricted fund represents the unrestricted funds arising from past operating results.

The trustees are satisfied that the balance of the fund is an acceptable level of reserves given the nature of revenue receipts against grants payable.

In considering the limited financial obligations of the charity, the trustees have resolved to maintain a minimum reserve roughly equal to the net current assets of the charity.

The trustees have considered the fair value of the investment property and the trustees consider the holding value to be the fair value.

The trustees are delighted to have made valuable contributions to the community as a result of this income and hope to be able to do so for many years to come.

The free reserves of the charity, being the net current assets, amounted to £6,505, all of which are unrestricted.

The trustees' annual report was approved on 8 January 2025 and signed on behalf of the board of trustees by:

S Roberts

Trustee

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Hearo Trust Fund

Independent Examiner's Report to the Trustees of Hearo Trust Fund

Year ended 31 March 2024

I report to the trustees on my examination of the financial statements of Hearo Trust Fund ('the charity') for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

Mr Howard Schwalbe ACA

Independent Examiner

2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

8 January 2025

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Hearo Trust Fund

Statement of Financial Activities

Year ended 31 March 2024

2024 2023
Unrestricted
fundsTotal funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 4 137,567 137,567 186,319
Investment income 5 18,200 18,200 16,775
-------------------------------- -------------------------------- --------------------------------
Total income 155,767 155,767 203,094
================================ ================================ ================================
Expenditure
Expenditure on raising funds:
Investment management costs 6 4,871 4,871 5,516
Expenditure on charitable activities 7,8 128,790 128,790 262,480
-------------------------------- -------------------------------- --------------------------------
Total expenditure 133,661 133,661 267,996
================================ ================================ ================================
-------------------------------- -------------------------------- --------------------------------
Net income/(expenditure) and net movement in funds 22,106 22,106 (64,902)
================================ ================================ ================================
Reconciliation of funds
Total funds brought forward 145,464 145,464 210,366
-------------------------------- -------------------------------- --------------------------------
Total funds carried forward 167,570 167,570 145,464
================================ ================================ ================================

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 9 to 17 form part of these financial statements.

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Hearo Trust Fund

Statement of Financial Position

31 March 2024

2024 2023
Note £ £
Fixed assets
Investments 14 230,000 230,000
Current assets
Debtors 15 10,000
Cash at bank and in hand 32,195 11,833
---------------------------- ----------------------------
42,195 11,833
Creditors: amounts falling due within one year 16 35,690 24,933
---------------------------- ----------------------------
Net current assets 6,505 (13,100)
-------------------------------- --------------------------------
Total assets less current liabilities 236,505 216,900
Creditors: amounts falling due after more than one year 17 68,935 71,436
-------------------------------- --------------------------------
Net assets 167,570 145,464
================================ ================================
Funds of the charity
Unrestricted funds:
Revaluation reserve 100,000 100,000
Other unrestricted income funds 67,570 45,464
-------------------------------- --------------------------------
Total unrestricted funds 167,570 145,464
-------------------------------- --------------------------------
Total charity funds 18 167,570 145,464
================================ ================================

These financial statements were approved by the board of trustees and authorised for issue on 8 January 2025, and are signed on behalf of the board by:

C M Hassell Trustee

The notes on pages 9 to 17 form part of these financial statements.

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Hearo Trust Fund

Notes to the Financial Statements

Year ended 31 March 2024

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 79 Windsor Road, Prestwich, Manchester, M25 0DB.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

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

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

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:

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

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3. Accounting policies (continued)

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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3. Accounting policies (continued)

Financial instruments (continued)

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2024
£ £ £
Donations
Donations 137,567 137,567
Grants
Grants receivable
-------------------------------- -------------- --------------------------------
137,567 137,567
================================ ============== ================================
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations
Donations 133,319 133,319
Grants
Grants receivable 53,000 53,000
-------------------------------- ---------------------------- --------------------------------
133,319 53,000 186,319
================================ ============================ ================================
5. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2024 Funds 2023
£ £ £ £
Income from investment properties 18,200 18,200 16,775 16,775
============================ ============================ ============================ ============================

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

6. Investment management costs

Unrestricted Total Funds Unrestricted Total Funds
Funds 2024 Funds 2023
£ £ £ £
Rent collection and property costs 2,055 2,055 1,678 1,678
Property repairs and maintenance
charges 302 302 1,382 1,382
Finance costs 2,514 2,514 2,456 2,456
----------------------- ----------------------- ----------------------- -----------------------
4,871 4,871 5,516 5,516
======================= ======================= ======================= =======================

7. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2024
£ £ £
Charitable grants 127,552 127,552
Support costs 1,238 1,238
-------------------------------- -------------- --------------------------------
128,790 128,790
================================ ============== ================================
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Charitable grants 208,184 53,000 261,184
Support costs 1,296 1,296
-------------------------------- ---------------------------- --------------------------------
209,480 53,000 262,480
================================ ============================ ================================

8. Expenditure on charitable activities by activity type

Activities

Activities
undertaken
Grant funding
Support Total funds Total fund
directly
of activities
costs 2024 2023
£ £ £ £ £
Charitable grants 17,428
110,124
218 127,770 261,460
Governance costs
1,020 1,020 1,020
---------------------------- -------------------------------- ----------------------- -------------------------------- --------------------------------
17,428
110,124
1,238 128,790 262,480
============================ ================================ ======================= ================================ ================================

9. Analysis of support costs

Analysis of
support costs Total 2024 Total 2023
£ £ £
General office 218 218 276
Governance costs 1,020 1,020 1,020
----------------------- ----------------------- -----------------------
1,238 1,238 1,296
======================= ======================= =======================

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

10. Analysis of grants

2024 2023
£ £
Grants to institutions
Community Grants 56,838 64,168
Educational Grants 6,490 16,115
Grants under £1,000 12,798 45,687
Kollel Gaon Yaakov 16,400 13,270
Kosher Market Ltd 53,000
R H T R 9,700 5,800
Religious Grants 3,400
Tikva UK 22,000
TTT 4,498 24,344
-------------------------------- --------------------------------
110,124 244,384
-------------------------------- --------------------------------
Total grants 110,124 244,384
================================ ================================
11. Independent examination fees
2024 2023
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,020 1,020
======================= =======================

12. Staff costs

The average head count of employees during the year was Nil (2022: Nil).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

13. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

14. Investments

Investment
properties
£
Cost or valuation
At 1 April 2023 and 31 March 2024 230,000
================================
Impairment
At 1 April 2023 and 31 March 2024
Carrying amount
At 31 March 2024 230,000
================================
At 31 March 2023 230,000
================================

All investments shown above are held at valuation.

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

14. Investments (continued)

Investment properties

Investment properties represent two wholly owned investment properties. The properties are managed by the trustees through a company called Benrob Limited, a company owned by Mr S Roberts, and a standard 10% management fee is charged for the management of these properties.

The valuation is at fair value in the opinion of the trustees.

15. Debtors

2024 2023
£ £
Other debtors 10,000
============================ ==============
Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 1,500 1,499
Accruals and deferred income 2,040 1,020
Other creditors 32,150 22,414
---------------------------- ----------------------------
35,690 24,933
============================ ============================
Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 68,935 71,436
============================ ============================

16. Creditors: amounts falling due within one year

17. Creditors: amounts falling due after more than one year

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

18. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At 01 At 31
Apr 2023 Income Expenditure Mar 2024
£ £ £ £
General funds 45,464 155,767 (133,661)
67,570
Revaluation reserve 100,000 100,000
-------------------------------- -------------------------------- -------------------------------- --------------------------------
145,464 155,767 (133,661)
167,570
================================ ================================ ================================ ================================
At 01 At 31
Apr 2022 Income Expenditure Mar 2023
£ £ £ £
General funds 110,366 150,094 (214,996)
45,464
Revaluation reserve 100,000 100,000
-------------------------------- -------------------------------- -------------------------------- --------------------------------
210,366 150,094 (214,996)
145,464
================================ ================================ ================================ ================================
Analysis of net assets between funds
Unrestricted Total Funds
Funds 2024
£ £
Investments 230,000 230,000
Current assets 42,195 42,195
Creditors less than 1 year (35,690)
(35,690)
Creditors greater than 1 year (68,935)
(68,935)
-------------------------------- --------------------------------
Net assets 167,570 167,570
================================ ================================
Unrestricted Total Funds
Funds 2023
£ £
Investments 230,000 230,000
Current assets 11,833 11,833
Creditors less than 1 year (24,933)
(24,933)
Creditors greater than 1 year (71,436)
(71,436)
-------------------------------- --------------------------------
Net assets 145,464 145,464
================================ ================================

19. Analysis of net assets between funds

20. Related parties

During the year, the charity received donations amounting to £94,000 from various companies where the trustees are directors & shareholders.

In other creditors there are amounts totalling £7,150 owing to the trustees and UK companies under their directorship on an interest free basis.

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Hearo Trust Fund

Notes to the Financial Statements (continued)

Year ended 31 March 2024

21. Taxation

Hearo Trust Fund is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

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