**REGISTERED CHARITY NUMBER: 1176658** ## **REPORT OF THE TRUSTEES AND** **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **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 2022** ||**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 11| ## **MACHZIKEI LOMDEI TORAH** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. 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 Machzikei Lomdei Torah Jerusalem. The charity supports a Kollel, an institute of advanced Talmudic Studies whose student body is comprised of married students who receive modest stipends to support their families. This is under the guidance and direction of the spiritual rabbinical authority of the Grand Rabbi of Belz Machnovka, Israel. 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 £445,749 (2021: £316,434) with total resources expended of £460,615 (2021: £317,380) resulting in net deficit of £14,866 (2020: £946 deficit). ## **FINANCIAL REVIEW** ## **Financial position** The financial results of the charity for the year ended 31 March 2022 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 £14,866 (2021: £946 deficit) and total reserves of £15,450 (2021: £30,316). ## **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 Kollel at Machzikei Lomdei Torah Jerusalem. Page 1 ## **MACHZIKEI LOMDEI TORAH** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** ## **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 2022** Approved by order of the board of trustees on 30 January 2023 and signed on its behalf by: Mr M Brander - 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 2022. ## **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: 1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. 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 Ltd 45 Stamford Hill London N16 5SR 30 January 2023 Page 4 ## **MACHZIKEI LOMDEI TORAH** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022** |**2022**
**Unrestricted**
**fund**
**Notes**
**£**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
445,749
**EXPENDITURE ON**
**Charitable activities**
Grants to institutions
452,500
Other
8,115
**Total**
460,615
**NET INCOME (LOSS)**
(14,866)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
30,316
**TOTAL FUNDS CARRIED FORWARD**
15,450|**2021**
**Total**
**funds**
**£**
316,434
315,200
2,180
317,380
(946)
31,262
30,316| |---|---| Page 5 ## **MACHZIKEI LOMDEI TORAH** ## **BALANCE SHEET 31 MARCH 2022** |**2022**
**Unrestricted**
**fund**
**Notes**
**£**
**CURRENT ASSETS**
Debtors
41,270
Cash at bank
19,780
**CREDITORS**
Amounts falling due within one year**4**
(1,800)
**NET CURRENT ASSETS/(LIABILITIES)**
59,250
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
59,250

**CREDITORS**
Amounts falling due after more than one year**5**
(43,800)
**NET ASSETS/(LIABILITIES)**
15,450

**FUNDS**
Unrestricted funds:
**7**
General fund
15,450
**TOTAL FUNDS**
15,450|**2021**
**Total**
**funds**
**£**
38,770
43,546
(2,000)
80,316
80,316
(50,000)
30,316
30,316
30,316| |---|---| The financial statements were approved by the Board of Trustees on 30 January 2023 and were signed on its behalf by: Mr M Brander - Trustee Page 6 **MACHZIKEI LOMDEI TORAH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **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. The notes form part of these financial statements Page 7 **MACHZIKEI LOMDEI TORAH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **1. ACCOUNTING POLICIES - continued** ## **Taxation** The charity is exempt from tax on its charitable activities. ## **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 2022 nor for the year ended 31 March 2021. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021. ## **3. GRANTS AND DONATIONS PAID** The charity continued to support the charitable educational activities of Machzikei Lomdei Torah Jerusalem. The charity supports a Kollel, an institute of advanced Talmudic Studies whose student body is comprised of married students who receive modest stipends to support their families. This is under the guidance and direction of the spiritual rabbinical authority of the Grand Rabbi of Belz Machnovka, Israel. The notes form part of these financial statements Page 8 ## **MACHZIKEI LOMDEI TORAH NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2022** |**4.** **CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2022**
**£**
Other Creditors1,800
**5. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
**2022**
**£**
Bank loans (see note 6)
43,800

**6. LOANS**
An analysis of the maturity of loans is given below:
**2022**
**£**
Amounts falling between one and two years:
Bank loans - 1-2 years
10,000
Amounts falling due between two and five years:
Bank loans - 2-5 years
33,800
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| |---|---|---| The notes form part of these financial statements Page 9 ## **MACHZIKEI LOMDEI TORAH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **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**
**1.4.21**
**in funds**
**31.3.22**
**£**
**£**
**£**
30,316 (14,866) 15,450
30,316
(14,866)15,450
**Incoming**
**Resources**
**Movement**
**resources**
**expended**
**in funds**
**£**
**£**
**£**
445,749 (460,615) (14,866)
316,343 (460,615) (14,866)| |---|---|---| |||| ||
|| The notes form part of these financial statements Page 10 ## **MACHZIKEI LOMDEI TORAH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **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**
**1.4.20**
**in funds**
**31.3.21**
**£**
**£**
**£**
31,262 (946) 30,316
31,262(946) 30,316| |---|---| 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**
**£**
316,434
316,434|**Resources**
**Movement**
**expended**
**in funds**
**£**
**£**
(317,380) (946)
(317,380)(946)| |---|---|---| ## **6. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 March 2022. The notes form part of these financial statements Page 11