Klal Chazon Limited
(by Guarantee)
Company number 10832208 Charity number 1177390
Trustees’ Report
And
Financial Statements
For the period ended 31 December 2020
Klal Chazon Limited
| Contents | Page |
|---|---|
| Legal and administrative information | 1 |
| Trustees’ report | 2 - 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 -12 |
Page 1
Klal Chazon Limited
Legal and administrative information
Directors / Trustees
Daniel Goldberg Jerome Ormonde Jonathan Roodyn Neil Schiff
Key Management Personnel
Shimshon Silkin
Registered Office
379 Hendon Way London NW4 3LP
Details of Incorporation
The company was incorporated on 22 June 2017 in England under company registration number 10832208, and was registered with the Charity Commission on 1 March 2018, governed by its Memorandum and Articles of Association, charity number 1177390.
Bankers
National Westminster Bank Plc 5 Central Circus Hendon Central London NW4 3LE
Page 2
Klal Chazon Limited
Trustees’ Report for the year ended 31 December 2020
The Trustees, who are also directors of the Charity for the purposes of the Companies Act, submit this first report and financial statements of Klal Chazon Limited (the company) for the year ended 31 December 2020.
Structure, Governance and Finance
The company was incorporated on 22 June 2017 as a company limited by guarantee and registered as a charitable organisation on 1 March 2018. Prior to this date Klal Chazon existed as a division of Jewish Futures Trust.
The trustees, who are also the directors for the purpose of company law, and who served during the year were Daniel Goldberg, Jerome Ormonde, Jonathan Roodyn and Neil Schiff. None of the trustees has any beneficial interest in the company.
Jewish Futures Trust Limited (JFT) is the parent undertaking of the Company and at present guarantees to contribute £1 in the event of a winding up. Jewish Futures Trust provides central head office services to Klal Chazon and JFT’s other subsidiary charities at cost, to enable the group to benefit from economies of scale. It encourages group charities to use the resources of sister charities to benefit from their expertise, in furtherance of each other’s charitable objectives.
The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association. The number of trustees shall not be subject to any maximum but shall not be less than two. The appointment and training of a new trustee is subject to the oversight of current trustees.
There are no specific restrictions imposed by the governing document concerning the way the Charity can operate.
About 15 volunteers support the Charity and help to deliver some of its charitable programmes and activities.
Charity’s Objectives and Activities
Klal Chazon was established to provide educational, religious and cultural activities to enhance the association of Jewish youth with their religion and heritage.
Achievements and Performance
Klal Chazon, like many charities, was deeply impacted by the Covid-19 pandemic that struck the world in March 2020. It was able, quickly, to create a range of online, digital programmes to replace the educational, cultural and religious programmes and events that it had been running up till then.
The Charity maintains contact with schools, synagogues and local organisations to deliver a range of seminars, events and activities to deliver inspiring learning experiences for members of the public.
Page 3
Klal Chazon Limited
Trustees’ Report (continued)
Fundraising
Klal Chazon’s fundraising is principally from Trusts and Foundations and individuals, particularly from people or organisations who have an appreciation of the benefits and objectives of the charity’s activities and have wished to show their support. Klal Chazon does not engage in large scale fund-raising activities like mass mailings, telephone fund-raising or door-to-door campaigns. Klal Chazon does not employ a professional fundraiser nor engage the services of any third-party organisations to help raise funds. To this end, the trustees have not considered it necessary to sign up to any regulatory code of fundraising practice but aims to ensure that fundraising is done professionally and in accordance with good practice. Klal Chazon has not received any complaints about any aspect of its fund-raising during 2019.
Financial Review
During the year of the accounts, Klal Chazon generated a surplus of £87,986 (2019 incurred a deficit of £44,005) and as a result at 31 December had free reserves of £56,375 (2019 a deficit on free reserves of £31,611).
Klal Chazon is supported by a broad spectrum of donors from across the community, ranging from grassroots student-level programme participants and alumni to a number of philanthropists and Foundations who partner with our charity and help encourage our activities. Most fundraising is done through direct relationships with our partners and through effective communication of the importance of our work to the wider audience of our supporters.
All of Klal Chazon’s expenditure is focused on creating the wide range of successful high-quality educational courses and popular, impactful activities that deliver our stated charitable objectives.
Key Risks and Uncertainties
The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. A reduction in donor base could cause cash flow issues; any delayed receipt of pledged donations or participants income could also potentially cause cash flow issues. The major risks facing the Charity are reviewed regularly at management meetings. Regular reviews of cash flow projections and budget forecasts are also undertaken, as well as a continual drive to reduce expenditure and negotiate better terms and rates.
The Impact of Covid-19 in 2020
The ongoing COVID-19 crisis significantly impacted upon the Charity’s planned activities and programmes, especially the international programmes. All activities involving social interaction had to stop in March 2020, but the charity has been able to move to digital platforms to deliver events and programmes.
Staff were put on furlough and actions taken to reduce costs of operations to limit the drain on resources. While the Covid-19 crisis has impacted on the ability of the Charity to raise funds in the normal way, the Charity was able to organise a successful matched funding campaign in April 2020 and received support from new grant sources during the year. Supporters have recognised that the Charity has still been able to deliver high quality programmes and remain supportive of its work
Management and Trustees are monitoring the Charity cost base on a regular basis to ensure that programme, event and educational costs do not exceed foreseeable income. The Management Team are regularly assessing the operational and logistical capabilities and finance consequences to update plans and budgets.
Reserves
The Trustees have determined that Klal Chazon should endeavour to hold free reserves representing 3 months of operational costs, approximately £60,000. The Trustees aim to have met this reserve target by the end of 2021. The Trustees recognise that there needs to be a substantial improvement in fundraising to build up Reserves.
Page 4 Kl81 ChazoTh Limlted Tntee$. Report (coniinued) Publie Benefit The tNstees acknowledge ihe duly in Section 4 of the Chariticq Act 2011 to havc rcgjrd to the c.harity Commission'8 publi.%hcd general and relevant sub-scctor guidance on public bcncfit. All activiiic$ undertaken by Klal Chozon are for the public benefit. With a range of activiti¢s off¢rcd for yong peoplc. the organisation'8 operarion 18 very much geared to PToviding b¢n¢fit to th¢ public. Participant% arc crtcouragcd to consider their moral responsibility for the community and th¢ importance of havin¥ fiTTll fouThJations and understanding of thcir herit&ge, This focu8 will ¢ontinu¢ to be c¢ntTal to Kl&l Chdzon'% futurc plans. Plans for the Future Thc Trust¢ plan to continuc dcliv¢rin¥ and thv¢loping a wide range of programmcs, cvcnts, tripg and activiti¢s ¢0 support the obj¢¢tivcs of th¢ charity. Tru$tee$' R¢gponilbllltl¢i In RelAtlon to the Aecounts Thr Trusic¢$ arc rr$p)nsibl¢ for pr¢pariny th¢ Tru8iee8' Report and thc financiol statcmcnts in ordanc¢ with applirablc law and ¥latIons. Company law rCquiS thc Trustccs to pr¢pRrn. finaneial sraiements for each financial pcriod. Undcr that law thc Trust¢¢8 hav¢ ¢lcckd to prcparc th¢ financial giatements in aceordancc with Unitcd Kingdom Gcncrally A¢ccptcd Accounting Pra¢tic¢ (United Kingdom SiandArds and applicablc lawl. Under ompany law tho Tru8tccs must not approv¢ th¢ financiol slalements unless thcy arc satisficd that ihey giv¢ a tnic and fllir view of %tAtc of affairs of the compAny and of thc financial activilics of the Company tor that p¢riod. In prcpgring tbc finan¢ial siatemenr8, the Truslecs are required to.. s¢lccl 8uirabl¢ ac¢ouhting policies And then Apply ihem consistcntly., makc judgcmcnl¥ and cstim81¢S thAt Are reasonable and prudent: follow applicable UK accounting standard5 and the Statement of Recommended Practice, 5ubj¢ct to any d¢partures di108 and explained in the accounts: prepa thc accounts on the going conccrA basis uftless il is inAppropriatc to presum¢ that the charity will continue in operation. Thc Tt¢¢S arc rcspon5ible for kccping ad¢quat¢ Aceoiinting records thllt arc 8UtTicient to show and cxplain the company's tron8actions and disclose with reaionable aLLllrY ot any time the fin&Tla1 P051tion of the company and enable them lo cn8ure that the finwicial slutem¢nt% Lumply with the Companie5 Act 2006. They are a150 respon5iblc for.%afe¥wding the thssets of the Company and henbe for taking reasonable %tep% for the prevention and detection ot Iraud und other irregulorities. This report ha5 been prepared in accordance with thc provi$ions applicable to companies, subject to the small companieq, regime and was approved by the Tru%tccs on 13 August 2021 and signed on thrir beh4it by.. J Roodyn Truytee
Page 5
Klal Chazon Limited
Independent examiner's report to the Trustees of Klal-Chazon Limited
I report to the Charity Trustees on my examination of the accounts of the company for the year ended 31 December 2020, which are set out on pages 6 to 12.
This report is made solely to the charitable Company’s Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the charitable Company’s Trustees as a body in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charitable Company’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable Company’s Trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the Charity’s Trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants of England and Wales.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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.
Alastair Lyon FCA DChA Aquis House 49-51 Blagrave Street, Reading, Berkshire, RG1 1PL
17 August 2021
Page 6
Klal Chazon Limited
Statement of Financial Activities
for the year ended 31 December 2020
| Note | 2020 | 2019 | |
|---|---|---|---|
| £ | £ | ||
| Income: | |||
| Donations and legacies | 306,845 | 125,414 | |
| Income from charitable activities: | |||
| Participant payments | 14,406 | 115,863 | |
| Job Retention Scheme grants | 27,850 | - | |
| Total incoming resources | 349,101 | 241,277 | |
| ______ | ______ | ||
| Expenditure: | |||
| Costs of raising funds: | |||
| Donor fundraising costs | 2,798 | - | |
| Expenditure on charitable activities: | |||
| Charitable donations | - | - | |
| Charitable activities | 4 | 258,317 | 285,282 |
| Total expenditure | 261,115 | 285,282 | |
| __ | __ | ||
| Net income/(deficit) for the year | 87,986 | (44,005) | |
| Reconciliation of funds: | |||
| Total funds brought forward | (31,611) | 12,394 | |
| Total funds carried forward | £56,375 | £(31,611) | |
| ====== | ====== |
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
The notes on pages 8 to 12 form part of these accounts.
Page 7 Klal ChAzon Llmlted Company number 10832208 Balance Sheet As at 31 Dcccmbcr 2020 Notc 31 De¢ 2020 31 D2019 Cvrrent Auets Debtors Cg%h llt bBnk and in hand 7,387 3.812 98.453 14.549 Credlion: Amounts falling due within one year Net cyrren¢ •$i¢ts / Illjbllldu) 56.375 Net alSEts I (Il•bllltl¢s) 56.375 Unre8tiicted fvnds To¢AI 56.375 £131.6111 For thc finAnciAI year ¢nd¢d 31 December 2020, the Company was cntitled to exemption from audit und¢r Scction 477 of the Compwiie5 Act 2006. and no notic¢ has b¢¢tt d¢po8ited under Section 476. Th Tru8tces acknowledge their r¢5ponsibilitie8 for ensuring thal th¢ Company keeps accouniing reeords which comply with SLction 386 and preparing accounts which ¥iv¢ rd tru¢ and fair view of the Sthl¢ of affairs of the CompAny at th¢ end of the period Bnd for it8 finoncial aclivities for thc financial period in accordance with the requirements of Sections 394 and 395 and which otherwise comply with th¢ requircments of the Companies Act 2006, $0 fBr 4s &pplicablc lo th¢ CompAny. Th¢ a¢¢ounts w¢r¢ approv¢d on 13 August 2Q214nd si¥ne¢J un behalf of th¢ b04rd. Tnte¢ J Roodyl The notes on page5 8 to 12 form part of these accounts.
Page 8
Notes to the Accounts – 31 December 2020
Klal Chazon Limited
1. Company information
The principal activity of Klal Chazon Limited is the advancement of Jewish education and culture. The company is registered as a charitable company limited by guarantee (company number: 10832208, charity number 1177390). It is incorporated and domiciled in the UK. The address of the registered office is 379 Hendon Way, London NW4 3LP.
2. Accounting Policies
a. Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015), applicable UK accounting standards including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006. The company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The principal accounting policies adopted in the preparation of the financial statements are as follows:
b. Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund.
c. Expenditure
Cost of fundraising activities are those costs incurred in attracting voluntary income.
Charitable activities include expenditure associated with the delivery of its activities and include both the direct costs and support costs relating to these activities.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.
d. Income
Donations are accounted for when the Charity becomes entitled to the donation and any conditions for receipt are met and the amount is capable of measurement.
e.
Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure.
f.
Cash Flow
Exemption has been taken from preparing a cash flow statement on the grounds that the charitable company qualifies as a small charitable company.
Page 9
Klal Chazon Limited
Notes to the Accounts – 31 December 2020
g. Financial Instruments
The charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. Note 10 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income and other taxation and social security.
h. Government Grants
Grants are accounted for under the performance model as permitted by the charity SORP. Coronavirus Job Retention Scheme grant income is therefore recognised on a straight-line basis over the furlough period for each relevant employee.
3. Key Judgements and Estimates
In the application of the charity’s accounting policies, which are described in note 2, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going 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 the current and future periods.
The Trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.
Having reviewed the financial position in light of the Covid-19 restrictions, the Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern and have reasonable expectations that the Charity has access to adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
4 Analysis of expenditure on charitable activities
| Basis of allocation Charitable activities Support costs Governance costs £ £ £ Staff costs Direct 65,887 40,479 - Programme & trip expenditure Direct 70,281 - - General office Direct 80,710 Independent examination fee Direct 960 _ _ __ 136,168 121,189 960 Support costs 121,189 (121,189) Governance costs 960 (960) Total charitable activity expenditure 258,317 - - |
2020 Total £ 106,366 70,281 80,710 960 _ 258,317 - - 258,317 |
2019 Total £ 95,329 142,168 45,299 2,486 ______ 285,282 - - 285,282 |
|---|---|---|
Of the total expenditure (£258,317) all of it was unrestricted (2019: £285,282)
Page 10
Klal Chazon Limited
Notes to the Accounts – 31 December 2020
5 Analysis of staff costs, trustee remuneration and expenses
| 2020 £ Salaries and wages Pension costs 97,260 1,831 Social security costs 7,275 106,366 ===== |
2019 £ 86,528 1,639 7,162 |
|---|---|
| 95,329 ===== |
No trustee received any remuneration, benefits in kind or reimbursement of expenses in the year (2019 £nil).
The average monthly number of employees during the year was as follows:
| 2020 | 2019 | |
|---|---|---|
| Education | 4 | 4 |
Total remuneration paid to key management personnel was £36,145 (2019: £33,228). All Trustees are included as key personnel. No employee received salaries at a rate of more than £60,000 per annum.
| 6 | Debtors | 2020 | 2019 | ||
|---|---|---|---|---|---|
| £ | £ | ||||
| Trade Debtors | 48 | 48 | |||
| Other debtors | 2,845 | 3,359 | |||
| Sister charity | 2,362 | - | |||
| Prepayments | 2,132 | 7,330 | |||
| 7,387 | 10,737 | ||||
| ===== | ===== | ||||
| 7 | Creditors: Amounts falling due within one year |
2020 | 2019 | ||
| £ | £ | ||||
| Credit card balances | 2,047 | 912 | |||
| Trade creditors | 3,625 | 5,960 | |||
| Other Creditors | 27,438 | - | |||
| Amount owed to sister charity | - | 32,356 | |||
| Taxation and social security | 7,718 | 1,882 | |||
| Accruals and deferred income | 1,250 | 5,050 | |||
| 42,078 | 46,160 | ||||
| ===== | ===== | ||||
| 8 | Statement of Funds | ||||
| 1 | Jan 2020 | Income | Expenditure |
31 Dec 2020 | |
| £ | £ | £ | £ | ||
| Unrestricted Funds | |||||
| General funds | (31,611) | 349,101 | 261,115 | 56,375 | |
| _____ | ______ | ______ | _____ |
Unrestricted funds represent funds available to the trustees for the general purposes of the charity.
Page 11
Klal Chazon Limited
Notes to the Accounts – 31 December 2020
9 Related Party Transactions
Jewish Futures Trust (JFT) is the sole member of Klal Chazon. JFT made donations to Klal Chazon during the year under review of £84,000 (2019: nil).
During the year Klal Chazon benefited and paid for the provision of central costs and overheads of running a central office for Klal Chazon and sister charities. Amounts charged by JFT for 2020 were £25,000 (2019 £nil) and also for educational and programming support JFT contributed services worth £45,000 during the year.
At the year-end JFT owed Klal Chazon £2,362 (2019 Klal Chazon owed JFT £12,346).
Chazak Ltd is a sister charity of Klal Chazon and part of the Jewish Futures Trust group. In 2019 Chazak lent Klal Chazon £20,000, which was repaid during 2020.
10 Financial Instrument
| 31 Dec 2020 | 31 Dec 2019 | |
|---|---|---|
| £ | £ | |
| Financial assets measured at | 96,321 | 7,220 |
| amortised cost | ||
| Financial liabilities | 42,078 | 42,359 |
| measured at amortised cost | ||
| ====== | ====== |
Financial assets measured at amortised cost include trade debtors, amount owed by group undertakings, other debtors and cash equivalents.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals excluding deferred income.
11 ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
The Company is a 100% subsidiary of Jewish Futures Trust Limited, a limited liability company, registered number 07884678 and a registered charity number 1151066. Jewish Futures Trust is involved in public education and cultural activities.
The Trustees regard Jewish Futures Trust Limited as the immediate and ultimate parent company. Jewish Futures Trust prepare consolidated annual accounts, including the results of the Company. A copy of the consolidated accounts can be obtained from the JFT head office at 379 Hendon Way, London NW4 3LP.
Page 12
Klal Chazon Limited
Notes to the Accounts – 31 December 2020
12 Comparative Statement of Financial Activities for the year ended 31 December 2019
| Note | 2019 | 2018 | |
|---|---|---|---|
| 1 Jan 2019 to | 1 Jan 2018 to 31 | ||
| 31 Dec 2019 | Dec 2018 | ||
| £ | £ | ||
| Income: | |||
| Donations and legacies | 125,414 | 71,867 | |
| Income from charitable activities: | |||
| Participant payments | 115,863 | 2,769 | |
| Total incoming resources | 241,277 | 74,636 | |
| ______ | ______ | ||
| Expenditure: | |||
| Costs of raising funds: | |||
| Donor fundraising costs | 0 | 0 | |
| Expenditure on charitable activities: | |||
| Charitable donations | 0 | 0 | |
| Charitable activities | 4 | 285,282 | 63,020 |
| Total expenditure | 285,282 | 63,020 | |
| __ | __ | ||
| Net income for the year | (44,005) | 11,616 | |
| Reconciliation of funds: | |||
| Total funds brought forward | 12,394 | 778 | |
| Total funds carried forward | £ (31,611) | £12,394 | |
| ====== | ====== |