Charity registration number 1178141 Company reglstratlon number CE012677 {England and Wales) LEHACHZIKOM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
LEHACHZIKOM LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr J Adler Mr J Gross Mr l J Feldman Mr A M Vizel IAppointed 16 February 20221 IAppointed 7 February 20221 Charity number 1176141 Principal address 4 Rav Pinter Close London N16 5BF Audltor Lopian Gross Barnett & Co 1 st Floor Cloister House Riverside, New Bailey Street Manchester M3 5FS
LEHACHZIKOM CONTENTS Page Trustees, report Stslemenl of Trustees, responsibilities Independent auditorfs report Statement of financial activities Balance sheet Stslemenl of cash flows Notes lo the financial statements 10-14
LEHACHZIKOM TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees present their annual report and financial statements for the year ended 31 December 2022. 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 Charities Act 2011 and 'Accounting and Reporting by Charities." Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. Objectives and activities The charity's objects are the advan¢emenl of the orthodox Jewish faith, the relief of povety and the relief of sickness , poor health and old age, in particular but not limited to people living in Israel. The trustees do not anticipate any changes to these activities in the future. The trustees have paid due regard to guidan issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and perfomiance During the year the Charity continued its philanthropic activities in support of provisions of basic necessities for the poor and relief of sickness and disabilities. The charity received £13.953,583 (£13,503,120 20211 in donations and gift aid during the year and £14,954,023 1£13,083,845- 20211 was paid out by way of grants and support costs. All grants were made in line with the stated objects of the charity . Flnanclal revlew 11 is the Policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at £15,000. The trustees consider that reserves at this level will ensure that the charity can continue its charitable 8Ctivilie5. This level of reserves has been maintained throughout the year. As at 31 December 2022 the charity has lolal free reserves of £6,8281£1,007,268 - 2021}. The trustees are satisfied with the results for the year. The Iruslees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure lo the major risks. structure. governance and management The charity is controlled by ils governing document, a constitution IFoundalion Model) document dated 2nd October 2017, and conslilules a Charitable Incorporated Organisalion ICIOI. The day to day affairs of the Charty are administered by the Board ofTruslees. It is not currently the intention of the Trustees of the Charity to appoint new trustees. Should the situation change in the future, the Trustees will apply suitable recruitment and training procedures. None of the Trustees have any beneficjal interest in the Charity. The trustees who served during the year and up lo the dale of signature of the financial statements were.. Mr J Adler (Appointed 16 February 20221 Mr J Gross Mr l J Feldman MrA M Vizel (Appointed 7 February 20221 In accordance wth the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the company will be put al a General Meeting.
LEHACHZIKOM TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Dlsclosure of Infomiatlon to audltor Each of the Iruslees has confim)ed that there is no Infomiatton of which they are aware whieh is relevant to the audit. but of which the auditor is unaware. They have further confimed that they have token appTopriale steps to identify such relevant information and to establish that the auditor is aware of such infornaliort. The Trustees. repKsrt was approved by Ihe Board of Tnjstees. Mr J Adler Trnste• Date: .....
LEHACHZIKOM STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The Iruslees are responsible for preparing the Trustees, Report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pradicel. The law applicable lo charities in England and Wales requires the Iruslees to prepare financial slalements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resoLJr¢es of the charity for that year. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently", observe the methods and principles in the Charities SORP", make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements,. and prepare the financial slalements on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The trustees are responsible for keeping sufficient ac¢ounling records that disclose with reasonable accuracy at any time the financial position of the ¢harity and enable them to ensure that the financial slalements comply Mrith the Charities Act 2011, the Charity IAccounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hen for tsking reasonable steps for the prevention and detection of fraud and other irregularities.
LEHACHZIKOM INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LEHACHZIKOM Opinion We have audited the financial statements of Lehachzikom (the 'charity'l for the year ended 31 Dember 2022 which comprise the slalemenl of financial aclivilies. the balance sheet. the stslemenl of cash flows and notes lo the financial ststemenls, including significant a¢counling policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting SlandaKI applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial slatemenls.. give a true fair view of the slate of the charity's affairs as 81 31 December 2022 and of its incoming resources and application of resources, for the year then ended", have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are ftjrther described in the Audilorts SponsIbl1rfAes for the audit of the finanoi81 statements sedion of our report. We are independent of the charity in accordance with the ethi¢al requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance ¥Mth these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In aud(ting the financial stslemenls, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually Dr collectively, may casl significant doubt on Ihe charity's ability to continue as a going concern for a period of at least Melve rnonlhs from ¥Nhen the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees wth respect lo going concern are described in the relevant sections of this report. other inforniation The other information comprises the information included in the annual report other than the financial $18lements and our audilorfs report Ihereon. The Iruslees are responsible for the other information contained within the annual report. Our opinion on the financial stslemenls does not cover the other infomialion and we do not express any form of assurance conclLJsion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent wth the financial statements or our knoedge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a material misstalemenl in the financial stslemenls themselves. If, based on the work we have performed, we conclude that there Is a material misstatement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Matters on whl¢h we are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us lo report to YOU if, in our opinion.. the information given in the financial stslements Is inconsistent in any material respect with the Trustees, report., or sufficient accounting records have not been kept., or the financial slalements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit.
LEHACHZIKOM INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEHACHZIKOM Re5ponsibilitie5 of trustees As explained more fully in the statement of Trustees, responsibilities, the trustees are responsible for the preparation of the financial stslemenls and for being satisfied that they give a true and fair view. and for such internal wntrol as the trustees delemiine is ne$sary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related lo going concem and using the going concern basis of accounting unless the trustees either intend lo cease operations, or have no realislie altemalive but to do so. Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wth the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial stslemenls as a whole are free from material misslatemenl, 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 bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements Can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, induding fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.. Vve obtained an understanding of laws and regulations that affect the enlily, focusing on those that h8LI a direct effect on the financial slalemenls or that had a fundamental effect on ils operations. Vlthere considered necessary we enquired of those charged with govemance, reviewed correspondence and reviewed meeting minutes for evidence Df non-compliance with relevant laws and regulations. We gained an understanding of the controls environment which includes the controls in pla to prevent and delect fraud. We enquired of those charged wlh governance about any incidences of fraud that had taken place during the accounting period. The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and lesls were planned and performed to address these risks. We reviewed finanaal statements disclosures to assess compliance with relevant laws and regLJlations. We enquired of those charged with governance about actual and potential litigation and claims.. We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misslalement due to fraud. In addressing the risk of fraud due to management override of internal controls we lesled the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material rnisslatemenls In the financial slalements, even though we have properly planned and performed our audit in accordance with auditing stsndard5. For example, as wth any audit, there remained a higher risk of non-deleclion of irregularilie5, as these may involve collusion, forgery, intentional omission5, misrepresenlalion5, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to delecl all fraud and non-compliance with laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council's website al.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report.
LEHACHZIKOM INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEHACHZIKOM other matters Your attention is drawn to the fact that the charity has prepared financial slalements in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard appIlble in the UK and Republic of Ireland IFRS 1021" las amended) in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred lo in the extant regulations but has now been withdrawn. This has been done in order for the financial slalements lo provide a true and fair view in accordance with current Generally Accepted Accounting Practice. Use of our report This report is made solely lo the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might slate to the Charity's trustees those matters we are required to state to them in an aLJditorfs 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 trustees as a body, for our audit work, for this report, or for the opinions we have fomied. Jason Selig BA ACA CTA DChA (Senior Statutory Auditor) for and on behalf of Loplan Gro$$ Barn&tt & Co 24110123 Chartored Accountsnts Ststutory Auditor 1 st Floor Cloister House Riverside, New Bailey Street Manchester M3 5FS Lopian Gross Barnett & Co is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
LEHACHZIKOM STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestrlcted Unrestrlcted funds funds 2022 2021 Notes Income and endowments from: Donations legacies Other income 13,953,583 13,845,620 142 Total Income 13,953.583 13,845,762 Ex enditure on- Charitable activities 14,954.023 13,083,845 Net lexpenditurellincome for the yearl Net movement in funds 11,000,440} 761,917 Fund balances al 1 January 2022 1,007,268 245,351 Fund balances at 31 December 2022 6,828 1,007,268 The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies.
LEHACHZIKOM BALANCE SHEET AS AT31 DECEMBER 2022 2022 2021 Notes cU¢t a$$¢ts Cash al bank and in hand 17.828 1.018,268 Crèditors: amounts falling duo within one year 11 (11.000} {11,000) Net current assets 6.828 1.007,268 Incomè funds Unrestricted funds 6.828 1.007.268 6,828 1,007,268 The flnanclal stslements wgre approved by Ihe Trusleos on.. Mr J Adler Trustee
LEHACHZIKOM STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notes Cash flows from operatlng actlvltles Cash (absorbed byllgeneraled from operations 13 11,000,440) 994,917 Net ¢a$h u$9d In Investlng actlvltlgs Net cash used In flnanclng actlvltl&s Net Idecreasevlncrease In cash and Cash equlvalents 11,000,440) 994,917 Cash and cash equivalents at beginning of year 1,018,268 23,351 Cash and cash equivalents at end of year 17,828 1,018,268
LEHACHZIKOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Charity inforniation Lehachzikom is a Charitsble Incorporated Organisalion. 1.1 Accounting convention The financial statements have been prepared in aOrdance with the charity's governing document, the Charities Act 2011. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" {"FRS 102.1 and the Charities SORP Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" leffective 1 January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The finanaal slalements have departed from the Charities IAccounls and Reports) Regulations 2008 only ID the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice foi charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred lo In the Regulations bul which has since been withdrawn. The financial statements are prepared In sleding, which Is the functional currency of the charity. Monetary amounts in these financial stslemenls are rounded lo the nearest £. The financial slalements have been prepared under the historical cost convention. The principal ae¢ounling policies adopted are sel out below. 1.2 Going concern Al the lime of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resour$ lo continue in operational existen for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial ststements. 1.3 Charitable funds Unrestricted funds are available for use al the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject lo speafic 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 finanaal slalements. Endowment funds are subject to specific conditions by donors that the capitsl musl be maintained by the charity. 1.4 Incoming resources Income is recognised when the charity is legally entitled to rt after any pèrformance conditions have been met, the amounts can be measured reliably, and il is probable that income will be received. Cash donations are renised 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 relab'on to donations received under GiftAid or deeds of covenant is recognised at the lime of the donation. Legacies are rècognised on rèceipt or otherwise rf 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 conlingenl asset. 10-
LEHACHZIKOM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng pollcles Icontlnuedl 1.5 Expendltu Expenditure is accounted for on an accruals basis and has been dassified under headings that aggregate all cost related ID the category. Vvhere costs cannot be diredy attributed lo particular headings they have been allocated to activities on a basis consislenl wth the use of reSoUrs. Grant making policy The Iruslees will judge each application for a grant on ils merit. 11 will assess whether the application falls thin the remit of the Charity. The trustees wll aim lo meet regularfy with the intention of assessing each grant application. 1.6 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call wth banks. other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 8osiTC financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured al transaction price Including transaction costs and are subsequently carried al amortised cost using the effective interest mèthod unless the arrangement Conslilules a financing transaction, Whe the transaction is measured at the present value of the future receipts discounted al a market rale of interest. Finanaal assets classified as receivable within one year are not amortised. Basie financial liabilitffes Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrLJment is measured at the present value of the fvture payments discounted al a market rale of interest. Financial liabilities classified as payable thin one year are not amortised. Debt instruments are subsequently earned al amortised cost, using the effective Inlèresl rale method. Trade creditors are obligations lo 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 subsequendy 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. Critical accounting estimates and judgements In the application of the charity's accounting PDlicies, 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 eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales 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 ftjture periods where the revision affects both current and future periods.
LEHACHZIKOM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Donations and legacies Unrestricted Unrestricted funds funds 2022 2021 Donations and gifts Taxation recovered on GiftAid Donations 13,353,583 13,583,120 600,000 262,500 13,953,583 13,845,620 Other income Total Unrestricted funds 2022 2021 Gift Aid repayment Interest 142 Charltable actlvltles Charitable Charitable Expenditure Expenditure 2022 2021 Grant ftjnding of activities (see note 61 Share of governance costs Isee note 71 14,922,405 13,065,794 31,618 18,051 14,954,023 13,083.845 12-
LEHACHZIKOM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Grants payable Charitable Charitable Expenditure Expenditure 2022 2021 Grants lo institutions.. Mazon Umechia CMZ Ltd Mahayanol Halevi M05dos Viznrtz l Monsey Bell Shemesh Samjo Ltd 14,907,405 12,848,000 9,350 4,050 204,394 15.000 14,922.405 13,065,794 Support costs Support Governance costs costs 2022 2021 Audit fees Legal snd professional Bank Charges 8,000 22,270 1.348 8,000 22,270 1.348 8,000 8,940 31.618 31,618 18,051 Analysed between Charrtable activib'es 31,618 31.618 18,051 Tru$lee$ None of the trustees lor any persons connected wth them) received any remuneration, benefits or expenses reimbursed from the charity dLJring the year. 13-
LEHACHZIKOM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Employees The average monthly number of ernployees during the year was.. 2022 Number 2021 Number Total There were no employees whose annual remuneration was more than £80,000. 10 Taxatlon The charity is exempl from lax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo ils charitable objects. 11 Credltors: amounts falllng due wlthln one year 2022 2021 Accruals and deferred income 11,000 11,000 12 Related party transactions There were no tlisclosable related party transactions during the year12021 - none). 13 Cash generated from operations 2022 2021 IDeficitllsurpus for the year 11,000,440) 761,917 Movements in working capital.. {Increaselldecrease in debtors IDecreasellincrease in creditors 225,000 8,000 Cash (absorbed byllgenerated from operations 11,000,440) 994,917 14 Anatysis of changes in net funds The charity had no debt during the year. 14-