2021-03-31-accounts - Machzikei Lomdei Torah

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REGISTERED CHARITY NUMBER: 1176658

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

MACHZIKEI LOMDEI TORAH

Hirsh Accountants Limited

45 Stamford Hill London N16 5SR

MACHZIKEI LOMDEI TORAH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

	Page
Report of the Trustees	1 to 3
Independent Examiner's Report	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Financial Statements	7 to 10

MACHZIKEI LOMDEI TORAH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objectives are to further those purposes both in the United Kingdom and abroad recognised as charitable by English Law.

The charity receives income mainly from charitable donations, which it utilises in the provision and distribution of grants and donations.

The charity's principle activity, although not restricted to, is to support the charitable educational activities of the Talmudic College known as Beis Va'ad l'Bochurim and the institute of advanced Talmudic Studies known as Kollel Halocho, both under the guidance and direction of the spiritual rabbinical authority of the Grand Rabbi of Belz Machnovka, Israel through the provision and distribution of grants and donations.

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.

Grantmaking

Grants are made to charitable institutions and organisations which accord with the objects of the charity.

In making grants and donations, the trustees use their personal knowledge of the institution, its representatives, operational efficiency and reputation. The amount of the grant and donation granted is based on the level of funds available.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year the charity pursued its philanthropic objects.

Income from donations aggregated £316,434 (2020: £433,590) and total resources expended was £ 317,380 (2020: £423,580) resulting in net deficit of £946 (2020: £10,010).

FINANCIAL REVIEW

Financial position

The financial results of the charity for the year ended 31 March 2021 are fully reflected in the attached Financial Statements together with the Notes thereon.

The trustees are satisfied with the results for the year.

The charity's Statement of Financial Activities show a net deficit of £946 (2020: £10,010) and total reserves of £30,316 (2020: £31,262).

Reserves policy

It is the policy of the charity to maintain Unrestricted Funds, which include the Free Reserves of the charity, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely costs of the charity for the next year.

Going concern

The Financial Statements have been prepared in accordance with the accounting principles appropriate to a going concern.

The trustees are confident that there are no material uncertainties about the charity's ability to continue.

FUTURE PLANS

The future plans of the charity are to continue to support the educational activities of the Talmudic College known as Beis Va'ad l'Bochurim and the institute of advanced Talmudic Studies known as Kollel Halocho, whilst ensuring that the ability to generate sufficient income is maintained to achieve that end.

Page 1

MACHZIKEI LOMDEI TORAH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Recruitment and appointment of new trustees

New trustees are appointed based on personal competence, specialist skills and availability. New trustees are inducted into the workings of the charity by the existing trustees.

The trustees administer the day-to-day affairs of the charity. None of the trustees have any beneficial interest in the charity.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1176658

Principal address

67A Watermint Quay Craven Walk London N16 6DN

Trustees

Mr S Lipschitz Mrs M Brander Mr M Brander

Independent Examiner

Mr M Hirsh FCCA Hirsh Accountants Limited 45 Stamford Hill London N16 5SR

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
prepare the 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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Page 2

MACHZIKEI LOMDEI TORAH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Approved by order of the board of trustees on 31 January 2022 and signed on its behalf by:

Mr S Lipschitz - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MACHZIKEI LOMDEI TORAH

Independent examiner's report to the trustees of Machzikei Lomdei Torah

I report to the charity trustees on my examination of the accounts of Machzikei Lomdei Torah (the Trust) for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

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

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed bodies.

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:

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts 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 M Hirsh FCCA Hirsh Accountants Limited 45 Stamford Hill London N16 5SR

31 January 2022

Page 4

MACHZIKEI LOMDEI TORAH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

2021 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 316,434 EXPENDITURE ON Charitable activities Grants to institutions 315,200 Other 2,180 Total 317,380 NET INCOME (LOSS) (946) RECONCILIATION OF FUNDS Total funds brought forward 31,262 TOTAL FUNDS CARRIED FORWARD 30,316	2020 Total funds £ 433,590 419,780 3,800 423,350 10,010 21,252 31,262

The notes form part of these financial statements

Page 5

MACHZIKEI LOMDEI TORAH

BALANCE SHEET 31 MARCH 2021

2021
Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
38,770
Cash at bank
43,546
CREDITORS
Amounts falling due within one year4
(2,000)
NET CURRENT ASSETS/(LIABILITIES)
80,316
TOTAL ASSETS LESS CURRENT
LIABILITIES
80,316

CREDITORS
Amounts falling due after more than one year5
(50,000)
NET ASSETS/(LIABILITIES)
30,316

FUNDS
Unrestricted funds:
7
General fund
30,316
TOTAL FUNDS
30,316

2020
Total
funds
£
22.270
10,492
(1,500)
31,262
31,262
-
31,262
31,262
31,262

The financial statements were approved by the Board of Trustees on 31 January 2022 and were signed on its behalf by:

Mr S Lipschitz - Trustee

The notes form part of these financial statements

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MACHZIKEI LOMDEI TORAH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods

The trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.

Income

All donations are recognised in the Statement of Financial Activities on receipt. All other income is recognised once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

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:

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.
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.

The following specific policies are applied to particular categories of expenditure:

grants and donations are recognised when paid.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Governance costs

Governance costs include cost of the preparation and independent examination of financial statements and cost of any legal advice to trustees on governance or constitutional matters.

Taxation

The charity is exempt from tax on its charitable activities.

continued...

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MACHZIKEI LOMDEI TORAH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. There are no restricted funds as at the Balance Sheet date.

Designated funds are funds, which have been set-aside at the discretion of the trustees for specific purposes. There are no designated funds as at the Balance Sheet date.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities

Basic Financial Instruments

Trade and other debtors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition, trade and other debtors that are classified as receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be received net of impairment. If the arrangement constitutes a financial transaction, for example, if payment is deferred beyond normal business terms, then they are measured at the present value of the future payments discounted at a market rate for a similar debt instrument.

Trade and other creditors

Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition trade and other creditors that are classified as payable within one year are measured at the undiscounted amount of the cash or the other consideration expected to be paid. If the arrangement constitutes amount of the cash or other consideration expected to be paid. If the arrangement constitutes a financial transaction, for example, if payment is deferred beyond normal business terms, then they are measured at the present value of the future payments discounted at a market rate for a similar debt instrument.

2. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

3. GRANTS AND DONATIONS PAID

The charity continued to support the charitable educational activities of the Talmudic College known as Beis Va'ad l'Bochurim and the institute of advanced Talmudic Studies known as Kollel Halocho, both under the guidance and direction of the spiritual rabbinical authority of the Grand Rabbi of Belz Machnovka, Israel through the provision and distribution of grants and donations.

continued...

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MACHZIKEI LOMDEI TORAH NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2021

4. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other Creditors 5. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank loans (see note 6) 6. LOANS An analysis of the maturity of loans is given below: Amounts falling between one and two years: Bank loans - 1-2 years Amounts falling due between two and five years: Bank loans - 2-5 years Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by installments	2021 £ 2,000 2021 £ 50,000 2021 £ 10,000 30,000 10,000	2020 £ 1,500	2020 £ - 2020 £ - - -

continued...

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MACHZIKEI LOMDEI TORAH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

5. MOVEMENT IN FUNDS

Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS		Net At movement At 1.4.20 in funds 31.3.21 £ £ £ 31,262 (946) 30,316 31,262 (946) 30,316 Incoming Resources Movement resources expended in funds £ £ £ 316,434 (317,380) (946) 316,343 (317,380) (946)

continued...

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MACHZIKEI LOMDEI TORAH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

Comparatives for movement in funds

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund TOTAL FUNDS	Net At movement At 1.4.19 in funds 31.3.20 £ £ £ 21,252 10,010 31,262 21,252 10,010 31,262

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds General fund TOTAL FUNDS	Incoming resources £ 433,590 433,590	Resources Movement expended in funds £ £ (423,580) 10,010 (423,580)10,010

6. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021.

continued...

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MACHZIKEI LOMDEI TORAH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

INCOME AND ENDOWMENTS Donations and legacies Donations received Total incoming resources EXPENDITURE Charitable activities Grants and donations paid Governance costs Advertising fees Audit and accountancy fees Total resources expended Net income (Loss)	2020 £ 316,434 316,434 315,200 2,180 2,180 317,380 10,010	2019 £ 433,590 433,590 419,780 2,000 1,800 1,200 144,998 21,252

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