**Charity Registration No. 1177435**
**Company Registration No. 10924797 (England and Wales)**
## **EDUCATING FOR IMPACT**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2022**
## **EDUCATING FOR IMPACT**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Joelle Aflalo Sally Anna Berkovic Kate Goldberg Prof. David Seymour Latchman Ronald Stephen Lauder Joshua Isaac Spinner Diego Ornique Ariel Zwang **Charity number** 1177435 **Company number** 10924797 **Registered office** Acre House 11-15 William Road London NW1 3ER United Kingdom **Auditor** HW Fisher LLP Acre House 11-15 William Road London NW1 3ER United Kingdom **Bankers** Metro Bank One Southampton Row London WC1B 5HA United Kingdom
## **EDUCATING FOR IMPACT**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 19|
## **EDUCATING FOR IMPACT**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
The trustees present their report and financial statements for the year ended 31 August 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 Articles of Association, the Companies Act 2006 and "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 2019)".
## **Objectives and activities**
The charitable purposes for EFI are:
- The advancement of education in the fields of Jewish History, Jewish tradition and Jewish culture and the advancement of the Jewish faith with particular focus on the development of the curriculum, and teaching methods, in Jewish schools and educational establishments throughout Europe;
- The furtherance of such charitable purposes as the Trustees in their absolute discretion see fit.
EFI’s goal is to underwrite the continued, successful existence of active communities in Europe through education, among other facets of Jewish life.
To date, EFI has worked with 18 schools across Europe to develop and strengthen their delivery of Jewish education and thereby strengthen Jewish life. EFI has done this by improving the Jewish content being taught in the schools, as well as in- and afterschool programming. This has been achieved this through curriculum and program development, as well as through teacher training, coaching and professional development.
At the same time, EFI is expanding its intervention into certain European Jewish communities to help ensure their active, engaged and sustainable existence. Given the success of EFI's intervention in the schools, some communities approached it to apply the same process and methodology more broadly and deeply to the communities themselves.
Jewish day schools are seen as the critical starting point for each community journey. EFI has begun supporting certain communities by launching strategic and transformation projects with local lay leaders and professionals in cities where EFI already has successful interventions in the schools.
The trustees confirm that in setting the charity’s objectives and planning the activities, they have complied with their legal duty to have due regard to the Charity Commission’s guidance on public benefit.
## **Achievements and performance**
As of the date of this report, EFI has completed its original scope of work in 14 cities and continues its original scope of work in 4 cities by assisting the school to implement sustainable change and to encode this in the culture of the school and community so that they can address both present and future challenges and build active Jewish communities.
Over the course of EFI’s intervention, EFI has seen significant success in its work, such as schools becoming more effective contributors to Jewish life, building a relationship of trust and shared knowledge with its communities, and these communities are beginning to use more strategic language and smarter thinking.
Specifically, some of the achievements of EFI’s work to date include: two new Jewish schools were founded, 18 strategic and mission-focused school board were transformed, 63 desired outcomes were defined, there was a twofold increase in teachers with ongoing professional development, growth rates in Jewish school and kindergarten enrollment reached between 18-46%, more than 50 new community leaders were identified and developed, and there was a clear step change in improvements in Jewish studies curricula.
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## **EDUCATING FOR IMPACT**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Plans for the future**
EFI will continue to help Jewish communities in Europe plan strategically for a vibrant and active Jewish future. Jewish day schools are seen as the critical starting point for each community journey.
EFI guides stakeholders to think and act in a strategic, outcome-driven manner. This approach has had transformative results when applied to schools. With certain communities that have demonstrated the capacity for change, EFI will look at deeper, broader and longer term strategic processes that can magnify the impact of every aspect of communal life at large.
This longer-term collaboration looks different in different communities, as appropriate for each community’s needs.
## **Financial review**
Income for the year to 31 August 2022 totalled $2,666,811 (2021: $6,569,829) with payments made by Herzog College and The Center for Educational Technology in line with their respective service agreements, and grants made by The Ronald S. Lauder Foundation , Maurice and Vivienne Wohl Philanthropic Foundation, The Matanel Foundation , Joint Distribution Committee and Rothschild Foundation Hanadiv Europe.
Expenditure for the year ended 31 August 2022 totalled $4,590,225 (2021: $5,623,179) and was in line with EFI's budget for the period. Expenditure is very tightly controlled by the Trustees.
EFI therefore generated a deficit in the year of $1,923,414 (2021 surplus of: $946,650) and net assets at 31 August 2022 amounted to $1,307,821 (2021: $3,231,235). The Charity’s initial 5 year plan was predicated upon very broad and encompassing work in 20 communities and cities across Europe. As was envisioned from the start, the initial pilot part of the model would be less costly while the end years would build to an apex and then taper off as the first cohorts would graduate and exit the 1.0 part of the program. As such, the income and corresponding activity for the first few years was built to accommodate the build up of resources for purposes of maximum expenditure in the final years of the initial program.
## **Reserves policy**
The reserves at 31 August 2022 were $1,307,821 (2021: $3,231,235), of which $nil (2021: $463,197) were restricted funds and $1,307,821 (2021: $2,768,038) were unrestricted funds. It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The current level of reserves is sufficient to cover anticipated expenditure for three to six months after the year end. For the first 3 months of 2023 the average expenditure has been lowered to an average of $150,000 USD per month and as such , coupled with the significant cash reserves that carry over from 2022 and the $1,500,000 in commitments and agreements going forward.
## Risks
The Trustees assess on an annual basis the major risks to which EFI is exposed, in particular those related to operations and funding of the charity and are satisfied that adequate systems and procedures are in place to mitigate exposure to these major risks. The principal risks faced by the charity are related to funding and also operational risks related to ineffectively or failing to reach agreement with schools or communities which had initially been identified for support. A new risk faced by the Charity is that of the global Coronavirus pandemic, which previously led to a ban in most places on non-essential travel, and many countries closing their borders.
The funding risks are mitigated by multiyear contracts and agreements that include pledges and commitments to be paid by the consortium partners in advance of operations.
Comprehensive projections that allow for operational flexibility, depending upon funding received, are prepared and approved by the Trustees. This ensures that activities can be increased or decreased well in advance of the term of collaboration with new schools and communities.
The operational risk is mitigated by extensive research and due diligence performed by the vice chair and the recruitment subcommittee. Should the terms of the agreement and spirit of cooperation not be honoured by the grantee for a specific programme, they will be removed from the respective programme accordingly.
Additional risks include personnel issues and challenges, working with diminished financial resources on the school/community side and re-aligning with key personnel as they might now be focused on other issues.
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## **EDUCATING FOR IMPACT**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Structure, governance and management**
EFI is a charitable company limited by guarantee. It is governed by its Articles of Association.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Helen Abeles (Resigned 8 December 2022) Joelle Aflalo Sally Anna Berkovic Kate Goldberg Prof. David Seymour Latchman Ronald Stephen Lauder Joshua Isaac Spinner Diego Ornique Ariel Zwang
EFI was established by two foundations that are leaders in the field of Jewish Education in Europe, The Ronald S. Lauder Foundation and The Maurice and Vivienne Wohl Philanthropic Foundation. These two foundations are also the two company members of EFI ('Founding Members').
The Articles of Association provide that there shall be a minimum of four trustees of EFI and at least two trustees appointed by each of the Founding Members. Trustees are appointed for a three year term of office but may be reappointed. The quorum at meetings of Trustees requires at least one trustee appointed by each Founding Member to be present. The Chairman and Vice Chairman are selected from amongst the Trustees appointed by the Founding Members and serve for two years. During the year, Professor David Latchman served as Chairman of EFI.
New Trustees may be admitted by a majority resolution of the Trustees. At a board meeting on 25 July 2018, the Trustees resolved to appoint four additional Trustees of EFI. These Trustees were drawn from other philanthropic organisations who work across Europe and have a particular interest and knowledge in delivering programmes in Jewish education.
New Trustees are committed to seeing through the mission of EFI and identifying new communities where EFI can operate. A welcome pack is made available to the new Trustees that includes the Articles of Association of EFI, the previous year’s financial statements and a brief history of EFI's past and current activities. Any new Trustee also receives copies of EFI's governance policies including those on conflicts of interest and safeguarding. They are also expected to sign the Code of Good Practice and complete a Declaration of Conflicts of Interest form. The welcome pack will include a copy of the Charity Commission guidance “The Essential Trustee: What you need to know”, “Charities and Public Benefit” and the “Charity Governance Code for Large charities”.
## Conflicts of interest and safeguarding
All Trustees give of their time freely and no trustee received any remuneration in the year.
All Trustees receive a copy of the Conflicts of Interest Policy and are required to disclose any additional interests that they may have during the year. All Trustees adhere to a Code of Good Practice. The Trustees and staff are required to disclose all relevant interests and withdraw from decisions where a conflict arises.
The Trustees have also approved an anti-bribery policy and a copy of this policy is sent to each new participating school.
EFI trustees have approved a safeguarding policy on 25 November 2020. This policy will be reviewed for approval at the next Trustees meeting. EFI notes that the charity itself does not work directly with children or vulnerable adults, but rather provides expertise and funding for schools and communities. While Trustees are mindful of the need for additional care so far as concerns overseas schools and communities which are not subject to the same legal obligations in their respective jurisdictions, EFI recognises the importance of safeguarding and its obligation to promote the welfare of all children.
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## **EDUCATING FOR IMPACT**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Decision making**
The Trustees of EFI meet three times a year.
## **Delegation**
During the year, the overall day to day management of EFI has been delegated to the Executive Leadership Team, which consists of the Chief Operating Officer, Melissa Eidelheit-Cukierman and the Chief Content Officer, Alex Sinclair.
The financial management of EFI is delegated to the Chief Financial Officer, Rafael Sait, who also performs the functions of company secretary of EFI.
## **Auditor**
In accordance with the company's articles, a resolution proposing that HW Fisher LLP be reappointed as auditor of the charity will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
D S Latchman
..............................
## **Prof. David Seymour Latchman**
Trustee Dated: .........................23 May 2023
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## **EDUCATING FOR IMPACT**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
The trustees, who are also the directors of Educating For Impact for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law 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 charitable company 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 estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
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## **EDUCATING FOR IMPACT**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE MEMBERS OF EDUCATING FOR IMPACT**
## **Opinion**
We have audited the financial statements of Educating For Impact (the ‘Charity’) for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Charity in accordance with the ethical 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 with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, 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 or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge 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 to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
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## **EDUCATING FOR IMPACT**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF EDUCATING FOR IMPACT**
- We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to 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 to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 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 but is not a guarantee that an audit conducted in accordance with ISAs (UK) 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, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our planning process:
- We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: the Charity SORP, FRS 102, Charities Act 2011 and Companies Act 2006.
- We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Testing key income lines for evidence of management bias.
- Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted and restricted funds.
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing documentation such as the charity board minutes, for discussions of irregularities including fraud.
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## **EDUCATING FOR IMPACT**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF EDUCATING FOR IMPACT**
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## Andrew Rich
## **Andrew Rich (Senior Statutory Auditor)**
## **for and on behalf of HW Fisher LLP**
Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom
23 May 2023.........................
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## **EDUCATING FOR IMPACT**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|||||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|---|---|---|---|
|||||**funds**|**funds**|||funds|funds||
|||||**2022**|**2022**|**2022**||2021|2021|2021|
||||**Notes**|**$**|**$**|**$**||**$**|**$**|**$**|
|**Income from:**|||||||||||
|Donations and legacies|||**3**|999,996|386,780|1,386,776||999,987|1,784,300|2,784,287|
|Charitable activities|||**4**|1,280,035|-|1,280,035||3,785,542|-|3,785,542|
||||||||||||
|**Total income**||||2,280,031|386,780|2,666,811||4,785,529|1,784,300|6,569,829|
||||||||||||
|**Expenditure on:**|||||||||||
|Charitable activities|||**5**|3,740,248|849,977|4,590,225||3,849,017|1,774,162|5,623,179|
||||||||||||
|**Net (expenditure)/income for the**|||||||||||
|**year/**|||||||||||
|**Net movement in funds**||||(1,460,217)|(463,197)|(1,923,414)||936,512|10,138|946,650|
|Fund balances|at|1|||||||||
|September 2021||||2,768,038|463,197|3,231,235||1,831,526|453,059|2,284,585|
||||||||||||
|**Fund balances at 31 August**|||||||||||
|**2022**||||1,307,821|-|1,307,821||2,768,038|463,197|3,231,235|
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **EDUCATING FOR IMPACT**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2022**_
|||**2022**||**2021**||
|---|---|---|---|---|---|
||**Notes**|**$**|**$**|**$**|**$**|
|**Current assets**||||||
|Debtors|**10**|20,299||498,209||
|Cash at bank and in hand||1,356,572||2,858,674||
|||||||
|||1,376,871||3,356,883||
|**Creditors: amounts falling due within one year**|**11**|(69,050)||(125,648)||
|||||||
|Net current assets|||1,307,821||3,231,235|
|||||||
|||||||
|**Income funds**||||||
|Restricted funds|**12**||-||463,197|
|Unrestricted funds|||1,307,821||2,768,038|
|||||||
||||1,307,821||3,231,235|
23 May 2023 The financial statements were approved by the Trustees on .........................
..............................D S Latchman Prof. David Seymour Latchman
**Trustee**
## **Company Registration No. 10924797**
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## **EDUCATING FOR IMPACT**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|||**2022**||**2021**||
|---|---|---|---|---|---|
||**Notes**|**$**|**$**|**$**|**$**|
|**Cash flows from operating activities**||||||
|Cash (absorbed by)/generated from operations|**15**||(1,502,102)||748,142|
|**Net cash used in investing activities**|||-||-|
|**Net cash used in financing activities**|||-||-|
|||||||
|**Net (decrease)/increase in cash and cash equivalents**|||(1,502,102)||748,142|
|Cash and cash equivalents at beginning of year|||2,858,674||2,110,532|
|||||||
|**Cash and cash equivalents at end of year**|||1,356,572||2,858,674|
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## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
## **Charity information**
Educating For Impact is a private company limited by guarantee incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Charity's Articles of Association, the Companies Act 2006 and “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 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in US dollars, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared under the historical cost convention and the principal accounting policies adopted are set out below.
## **1.2 Going concern**
The charity also has commitments and agreements in place with its funding partners. As EFI moves into the second phase of the program (2.0) the activity will be far more focused on individual cities and the necessary income and expenditure will be far less. In 2023 we expect to work with 4 Cities in 2.0 and finish up activity with cohort 4 – comprised of 4 participating schools. As both the income and expenditure is adjusted accordingly , the charity will remain solvent with significant reserves which will ably accommodate and buttress both the lower income and lower projected expenditure.
The Trustees have a reasonable expectation that the charity can continue as a going concern for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Our path going forward is a more focused approach on and with a smaller number of cities , as such our income and cash reserves will comfortably accommodate the cash flow as we return to a surplus in the coming years.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific 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 financial statements.
## **1.4 Incoming resources**
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
## **1.5 Resources expended**
Resources expended are recognised in the period to which they relate.
Direct charitable expenditure comprises all the expenditure relating to the activities carried out to achieve the charitable objective.
Support costs represent costs that cannot be directly attributed to activities. These costs have been allocated in full to the single charitable activity, 'Contract Activities'.
Governance costs include the costs of statutory audit and other costs related to the governance of the charity. These costs have been allocated in full to the single charitable activity.
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## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.6 Financial instruments**
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **1.7 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.8 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
The trustees are satisfied that there are no material accounting estimates or judgements in the financial statements.
## **3 Donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||**funds**|**funds**||funds|funds||
||**2022**|**2022**|**2022**|2021|2021|2021|
||**$**|**$**|**$**|$|$|$|
|Donations and gifts|999,996|386,780|1,386,776|999,987|-|999,987|
|Grants|-|-|-|-|1,784,300|1,784,300|
||||||||
||999,996|386,780|1,386,776|999,987|1,784,300|2,784,287|
## **4 Charitable activities**
||**Contract**|**Contract**|
|---|---|---|
||**activities**|**activities**|
||**2022**|**2021**|
||**$**|**$**|
|Income within charitable activities|1,280,035|3,785,542|
- 13 -
## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **5 Charitable activities**
||**Contract**||**Contract**|
|---|---|---|---|
||**activities**||**activities**|
||**2022**||**2021**|
||**$**||**$**|
|Staff costs|326,521||594,754|
|Programme costs|1,210,917||842,513|
|Conference costs|-||7,000|
|Facilitators|1,401,376||1,603,135|
|Travel and subsistence|-||21,536|
|Exchange rate losses/(gains)|103,364||4,011|
|Bad and doubtful debts|-||1,782|
|||||
||3,042,178||3,074,731|
|Grant funding of activities (see note 6)|1,012,109||1,774,162|
|Share of support costs (see note 7)|496,322||754,823|
|Share of governance costs (see note 7)|39,616||19,463|
|||||
||4,590,225||5,623,179|
|||||
|||||
|**Analysis by fund**||||
|Unrestricted funds|3,740,248||3,849,017|
|Restricted funds|849,977||1,774,162|
|||||
||4,590,225||5,623,179|
- 14 -
## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **6 Grants payable**
||**Contract**|Contract|
|---|---|---|
||**activities**|activities|
||**2022**|2021|
||**$**|$|
|Grants to institutions:|||
|Zidovska obec v Praze|78,307|99,107|
|Ulus Ozel Musevi Okullari|168,749|161,410|
|Kahal Adass Jisroel e.V|54,164|140,270|
|Jewish Ed and Publishing Trust|-|75,000|
|Helsingin Juutalainen Seurakunta|69,558|114,240|
|Jewish Community of Athens|11,513|89,750|
|Comunita' Ebraica Di Milano|200,454|296,175|
|Foundation Bet Shalom|-|72,000|
|Fundacion Hatikva|154,393|173,456|
|Eesti Juudi Kogukond|17,500|64,560|
|Comunita Ebraica di Roma|-|379,200|
|Det Jodiske Samfund Danmark|-|35,000|
|Friends of Brodetsky|71,871|73,994|
|CJM-Colegio Ibn Gabirol|185,600|-|
||||
||1,012,109|1,774,162|
## **7 Support costs**
|**Support costs**|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Support costs**||**Governance**|||**2022**|Support costs||Governance|||2021|
|||||**costs**||||||costs|||
|||**$**||**$**||**$**||$||$||$|
|Staff costs||259,170||-||259,170||412,526||-||412,526|
|Insurance||9,986||-||9,986||12,588||-||12,588|
|Office supplies||25,986||-||25,986||122,889||-||122,889|
|Staff training costs||532||-||532||4,940||-||4,940|
|Professional fees||178,542||-||178,542||146,230||-||146,230|
|Sundry expenses||5,993||-||5,993||44,707||-||44,707|
|Telephone and Internet||6,932||-||6,932||3,880||-||3,880|
|Bank charges||9,181||-||9,181||7,063||-||7,063|
|Audit fees||-||29,167||29,167||-||18,374||18,374|
|Accountancy||-||10,449||10,449||-||1,089||1,089|
||||||||||||||
|||496,322||39,616||535,938||754,823||19,463||774,286|
||||||||||||||
||||||||||||||
|Analysed between|||||||||||||
|Charitable activities||496,322||39,616||535,938||754,823||19,463||774,286|
## **8 Trustees**
For the year ended 31 August 2022, travel and accommodation expenses of $4,824 was reimbursed to a total of 4 trustees (2021: $nil).
- 15 -
## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **9 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
||**2022**||**2021**|
|---|---|---|---|
||**Number**||**Number**|
||5||7|
|||||
|||||
|**Employment costs**|**2022**||**2021**|
||**$**||**$**|
|Wages and salaries|535,298||918,156|
|Social security costs|48,342||87,073|
|Other pension costs|2,051||2,051|
|||||
||585,691||1,007,280|
Included in the above is $nil (2021: $76,752) relating to a termination payment payable to an employee under a settlement agreement.
The number of employees whose annual remuneration was $60,000 or more were:
|The number of employees whose annual remuneration was|$60,000 or more were:||
|---|---|---|
||**2022**|**2021**|
||**Number**|**Number**|
|$60,000 - $70,000|-|1|
|$80,000 - $90,000|-|1|
|$130,000 - $140,000|-|1|
|$150,000 - $160,000|1|1|
|$160,000 - $170,000|1|1|
|$170,000 - $180,000|1|-|
The key management personnel of the charity comprise the trustees and the Chief Executive Officer, Chief Financial Officer and the Chief Program Officer whose employee benefits in the year were $371,626 (2021: $351,059).
## **10 Debtors**
|**Debtors**|||
|---|---|---|
||**2022**|**2021**|
|**Amounts falling due within one year:**|**$**|**$**|
|Trade debtors|1,072|496,000|
|Other debtors|12,593|2,209|
|Prepayments and accrued income|6,634|-|
||||
||20,299|498,209|
- 16 -
## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **11 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2022**|**2021**|
||**$**|**$**|
|Trade creditors|20,436|11,640|
|Accruals and deferred income|48,614|114,008|
||||
||69,050|125,648|
- 17 -
##
##
##
||||**Balance at**|**31 August 2022**||**$**|-|
|---|---|---|---|---|---|---|---|
|**Restricted funds**|The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:|**Movement in funds**
**Movement in funds**|**Balance at**
**Incoming**
**Resources**
**Balance at**
**Incoming**
**Resources**|**1 September**
**resources**
**expended**
**1 September**
**resources**
**expended**|**2020**
**2021**|**$**
**$**
**$**
**$**
**$**
**$**|Crisis Fund
453,059
1,784,300
(1,774,162)
463,197
386,780
(849,977)|
|**12**||||||||
## **EDUCATING FOR IMPACT**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**13**|**Analysis of net assets between funds**|**Analysis of net assets between funds**||||||
|---|---|---|---|---|---|---|---|
||**Unrestricted**||**Restricted**|**Total**|Unrestricted|Restricted|Total|
|||**funds**|**funds**||funds|funds||
|||**2022**|**2022**|**2022**|2021|2021|2021|
|||**$**|**$**|**$**|$|$|$|
||Fund balances at 31|||||||
||August 2022 are|||||||
||represented by:|||||||
||Current assets/(liabilities)|1,307,821|-|1,307,821|2,768,038|463,197|3,231,235|
|||||||||
|||1,307,821|-|1,307,821|2,768,038|463,197|3,231,235|
## **14 Related party transactions**
The Ronald S. Lauder Foundation, The Maurice and Vivienne Wohl Philanthropic Foundation and The Joint Distribution Committee all have representatives that sit on the trustees committee for the Charity. These organisations made donations of $1,499,971 (2021: $2,074,946) in aggregate for the year ended 31 August 2022.
Ronald Lauder and Kate Goldberg are trustees of Educating For Impact and also Board members of The Ronald S. Lauder Foundation. During the year, $nil (2021: $800,000) was received from The Ronald S. Lauder Foundation for the Crisis Fund.
Prof David Seymour Latchman is a trustee of Educating For Impact and also a trustee of The Maurice and Vivienne Wohl Philanthropic Foundation. During the year, $nil (2021: $250,000) was received from the foundation for the Crisis Fund.
|**15**|**Cash generated from operations**|**2022**|**2021**|
|---|---|---|---|
|||**$**|**$**|
||(Deficit)/surpus for the year|(1,923,414)|946,650|
||Movements in working capital:|||
||Decrease/(increase) in debtors|477,910|(161,251)|
||(Decrease) in creditors|(56,598)|(37,257)|
|||||
||**Cash (absorbed by)/generated from operations**|(1,502,102)|748,142|
## 16 **Analysis of changes in net funds**
The Charity had no debt during the year.
- 19 -