Klal Chazon Limited
(by Guarantee)
Company number 10832208 Charity number 1177390
Trustees’ Report
And
Financial Statements
For the period ended
31 December 2022
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
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 2022
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 2022.
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 Jerome Ormonde, Jonathan Roodyn and Neil Schiff. None of the Trustees have 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
During 2022 the Charity was able to resume its full range of in person programmes, activities and trips, following the relaxing of regulations from the Covid-19 pandemic. This included a range of new educational programmes. In the Summer major trips were organised for student participants to France and Israel.
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 2021.
Financial Review
During the year of the accounts, Klal Chazon incurred a deficit of £39,010 (2021: deficit of £13,628) and as a result at 31 December 2022 had free reserves of £3,737 (2021: £42,747).
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 negotiate better terms and rates for programme activity expenditure.
The Impact of Covid-19 in 2022
The Charity was able to return to a full range of programmes and activities during 2022 and its activities and fundraising are no longer impacted by Covid-19 regulations.
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 2024. The Trustees recognise that there needs to be a substantial improvement in fundraising to build up Reserves.
Page 4 KIAI Chazon Limited Trustees, Report (¢oMtinued) Public Benefit The Trustees acknowledge the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission's published general and r¢levant sub-sector guidance on public benefit. All activitie5 undertaken by KIAI Ch8zon are for the public benefit. Wilh a range of activiiieg offered (or young people, the organisation's operation is very much g¢pr¢d to providing benefit to the public. Participants hre encouraged to consider their morE41 re5pon3ibility for the community and the importance of haying firni foundations ond understanding of their hvritage. This focus will ¢onlinue to be central to Klal Chazon's fuiure plans. Plans for the Future The Trustees plan to continue d¢liv¢ring and developing a wid¢ range of progrommes, events. trips and activities to 5UPPOrt th¢ objectives of the Charity. Truoteej. Rupon$lbllltle8 In Relatlon ¢0 th¢ A¢tount• The Tntee5 are responsible for preparin¥ the Trustees, Report and the financial statements in accordance with applicAble18w and regulations. Company law requires the Thistee5 to prepare financial statements for each finan¢ial period. Under that law the Truytees have elected io prepare th¢ financial stat¢m¢nis in a¢cordv4nce with United Kingdom Generally Accepted Accoun¢ing Pru¢tiee (United Kingdom Stalldards and applicablc law). Under company law the Trustees musl no¢ approve the tinanci&l 51atemeDts unl¢ss Ihey ar¢ sa¢i$fied ihai they give a Irue and fair view of ihe state of alTairs of the Cvmpany and of the financial activities of the CoTnpgny for that period. In preparing ihese finan¢ial statements, th¢'l'rustees arc r¢quired to.. selec¢ suitable accounting policies and then apply them con5isienily,' m4ke judgemenls 8nd estimates that Are renable and pdent. follow applicable UK a¢counttn8 Standglrds and the Statement of RecomTrtended Prnctice. subject to any departures disclosed and ¢xploined in the coun. prepare the accounts on the going con¢¢m basis unless it is inapproprial¢ lo presume thai the Charity will continue in operation. Th¢ Trustees are re5pon5ible for keeping ad¢quate accountinB record5 that are gufficient to Show and explain ihe Company'5 Iran$aGtions and disclose with reasonable accuracy at any tirne the financial polliOn of the Compariy artd enable them to ensure that the financial stat¢ments comply with the Companies Act 2006. Th¢y ar¢ a150 responsible for safeguarding the assets of the Company and h¢n¢e lor taking r¢&sonable sleps for thc prevention and detection of frr4ud and other irrebiularitivs. This report has been prepared in accordance with the provisions applicE4ble Éo eompanie5' Subject to the small ¢omp8nie5' regime atjd was approved by the Trustees on 6 December 2023 and signed on their behalf by.. J4 J Roodyn Trustee
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 2022, 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 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
11 December 2023
Page 6
Klal Chazon Limited
Statement of Financial Activities
for the year ended 31 December 2022
| Note | 2022 | 2021 | |
|---|---|---|---|
| £ | £ | ||
| Income: | |||
| Donations and legacies | 393,814 | 306,601 | |
| Income from charitable activities: | |||
| Participant payments | 120,824 | 7,874 | |
| Job Retention Scheme grants | - | 21,119 | |
| Total incoming resources | 514,638 | 335,594 | |
| _ | ______ | ||
| Expenditure: | |||
| Costs of raising funds: | |||
| Donor fundraising costs | 14,957 | 14,665 | |
| Expenditure on charitable activities: | |||
| Charitable donations | - | - | |
| Charitable activities | 4 | 538,691 | 334,557 |
| Total expenditure | 553,648 | 349,222 | |
| _ | __ | ||
| Net (deficit)/income for the year | (39,010) | (13,628) | |
| Reconciliation of funds: | |||
| Total funds brought forward | 42,747 | 56,375 | |
| Total funds carried forward | 3,737 | 42,747 | |
| ====== | ====== |
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.
Page7
Kial Cbazon Limited Company number 10832208
Balance Sheet
As at 31 December 2022
| Current Assets Debtors Cash at bank and in hand Note 6 Creditors:Amounts flling due within one year Net current assets/ (liabilities) 7 Net assets/ (liabilities) Funds Unrestricted fnds Total funds 8 |
2022 £ 22,050 7,619 29,669 (25,932) 3,731 3,737 3,737 3,737 |
2021 £ 21,546 44,278 65,824 (23,077) |
2021 £ 21,546 44,278 65,824 (23,077) |
|---|---|---|---|
| 42,747 42,747 42,747 42,747 |
For the financial year ended 31 December 2022, the Company was entitled to exemption from audit under Section 477 of the Companies Act 2006; and no notice has been deposited under Section 476 . The Trustees acknowledge their responsibilities for ensuring that the Company keeps accounting records which comply with Section 386 and preparing accounts which give a true and fair view of the state of affairs of the Company at the end of the period and for its financial activities for the financial period in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Acf2006, so far as applicable to the Company.
The accounts were approved on 6 December 2023 and signed on behalf of the board.
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The notes on pages 8 to 12 form part of these accounts.
Page 8
Klal Chazon Limited
Notes to the Accounts – 31 December 2022
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 Charity 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 2022
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 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 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 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 105,224 48,788 - Programme & trip expenditure Direct 286,132 - - General office Direct - 97,173 - Independent examination fee Direct - 1,374 _ _ __ 391,356 145,961 1,374 Support costs 145,961 (145,961) Governance costs 1,374 (1,374) Total charitable activity expenditure 538,691 - - |
2022 Total £ 154,012 286,132 97,173 1,374 _ 538,691 - - 538,691 |
2021 Total £ 128,655 115,493 89,101 1,308 ______ 334,557 - - 334,557 |
|---|---|---|
Of the total expenditure £538,691 was unrestricted (2021: £334,557).
Page 10
Klal Chazon Limited
Notes to the Accounts – 31 December 2022
- 5 Analysis of staff costs, trustee remuneration and expenses
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Salaries and wages | 142,507 | 119,631 |
| Pension costs | 2,210 | 1,677 |
| Social security costs | 9,295 | 7,347 |
| 154,012 | 128,655 | |
| ===== | ===== |
No trustee received any remuneration, benefits in kind or reimbursement of expenses in the year (2021: £nil).
The average monthly number of employees during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| Education | 8 | 6 |
Total remuneration paid to key management personnel was £36,740 (2021: £36,145). All Trustees are included as key personnel. No employee received salaries at a rate of more than £60,000 per annum.
| 6 Debtors 2022 £ Trade debtors 3,475 Other debtors Sister charity - - Prepayments 18,575 22,050 ===== 7 Creditors:Amounts falling due within one year 2022 £ Credit card balances 6,080 Trade creditors 3,811 Other creditors Amount owed to sister charity 904 6,809 Taxation and social security 2,078 Accruals and deferred income 6,250 25,932 ===== 8 Statement of funds 1 Jan 2022 £ Income £ Expenditure £ 31 Dec Unrestricted Funds General funds 42,747 514,638 (553,648) _ _ ___ |
2021 £ 3,546 - - 18,000 21,546 ===== 2021 £ 1,593 1,471 338 125 2,300 17,250 23,077 ===== 2022 £ 3,737 _____ |
|---|---|
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 2022
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 £92,942 (2021: £82,225).
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 2022 were £28,334 (2021: £27,225) and also for educational and programming support JFT contributed services worth during the year (2021: £45,000).
At the year-end Klal Chazon owed JFT £2,458 (2021: £125).
10 Financial Instrument
| 31 Dec 2022 | 31 Dec 2021 | ||
|---|---|---|---|
| £ | £ | ||
| Financial | assets measured at | 29,669 | 65,853 |
| amortised | cost | ||
| Financial | liabilities | 25,932 | 23,077 |
| 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 2022
12 Comparative Statement of Financial Activities for the year ended 31 December 2021
| Note 2021 £ Income: Donations and legacies 306,601 Income from charitable activities: Participant payments Job Retention Scheme grants 7,874 21,119 Total incoming resources 335,594 _ Expenditure: _Costs of raising funds: Donor fundraising costs 14,665 Expenditure on charitable activities: Charitable donations - Charitable activities 4 334,557 Total expenditure 349,222 _ Net income/(deficit) for the year (13,628) Reconciliation of funds: Total funds brought forward 56,375 Total funds carried forward 42,747 ====== |
2020 £ 306,845 14,406 27,850 349,101 __ 2,798 - 258,317 261,115 _____ 87,986 (31,611) |
|---|---|
56,375 ====== |