1180711
DARKEI AVOS
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DARKEI AVOS
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Esther Reich Jacob Reich Rivka Dunner Charity number 1180711 Independent examiner Michael Weissbraun, FCA Weissbraun Emanuel 220 The Vale London NW11 8SR
DARKEI AVOS
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 10 |
DARKEI AVOS
TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2022
The trustees present their annual report and financial statements for the year ended 30 June 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 trust's deed, the Charities Act 2011 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
Darkei Avos was founded to advance the education of high school aged pupils through the study of a designated moral, ethical and educational framework, Pirkei Avos. Darkei Avos promotes personal development, social interaction and communal involvement.
Interactive learning guides, incentives and prizes are distributed to achieve the learning goals. The knowledge gained from learning helps pupils to succeed in all areas, it develops their spiritual core and shows them how to be the best version of themselves.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
Achievements and performance
The Charity has been involved in developing educational learning materials including a calendar which is now available in a number of educational centres, as well providing access to extensive educational lectures and other educational activities via a new telephone hotline the charity has set up. Once these learning materials are fully developed the Charity will be further broadening its outreach activities within schools.
Financial review
During the year, the trust made a surplus of £11,681 (2021: surplus of £6,357).
It is the policy of the trust 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 trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The trust is constituted as an incorporated charity and controlled by its governing document, trust deed.
The trustees who served during the year and up to the date of signature of the financial statements were: Esther Reich Jacob Reich Rivka Dunner
The day to day activities are managed by all trustees.
- 1 -
DARKEI AVOS
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
The Trustees' report was approved by the Board of Trustees.
Jacob Reich Trustee
3 March 2023
- 2 -
DARKEI AVOS
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DARKEI AVOS
I report to the trustees on my examination of the financial statements of DARKEI AVOS (the trust) for the year ended 30 June 2022.
Responsibilities and basis of report
As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 that in any material respect:
-
1 accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Michael Weissbraun, FCA
Weissbraun Emanuel 220 The Vale London NW11 8SR
Dated: 3 March 2023
- 3 -
DARKEI AVOS
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2022
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 28,734 | 25,231 |
| Expenditure on: | |||
| Charitable activities | 3 | 17,053 | 18,874 |
| Net income for the year/ | |||
| Net movement in funds | 11,681 | 6,357 | |
| Fund balances at 1 July 2021 | 6,639 | 282 | |
| Fund balances at 30 June 2022 | 18,320 | 6,639 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
DARKEI AVOS
BALANCE SHEET
AS AT 30 JUNE 2022
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Income funds Unrestricted funds |
2022 £ 21,919 (3,599) |
£ 18,320 18,320 18,320 |
2021 £ 8,199 (1,560) |
£ 6,639 |
|---|---|---|---|---|
| 6,639 | ||||
| 6,639 |
The financial statements were approved by the Trustees on 3 March 2023
Jacob Reich Trustee
- 5 -
DARKEI AVOS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
1 Accounting policies
Charity information
DARKEI AVOS is a trust established by a trust deed on 24 April 2018.
1.1 Accounting convention
The financial statements have been prepared in accordance with the trust's deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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 Income
Income is recognised when the trust 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.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 6 -
DARKEI AVOS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 28,734 | 25,231 |
- 7 -
DARKEI AVOS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
3 Charitable activities
| Darkei Avos | Darkei Avos |
|
|---|---|---|
| projects | projects | |
| 2022 | 2021 | |
| £ | £ | |
| Grant funding of activities (see note 4) | 25 | - |
| Share of support costs (see note 5) | 15,468 | 17,201 |
| Share of governance costs (see note 5) | 1,560 | 1,673 |
| 17,053 | 18,874 | |
| Grants payable | ||
| Darkei Avos | 2021 | |
| projects | ||
| 2022 | ||
| £ | £ | |
| Grants to institutions: | ||
| Other | 25 | - |
4 Grants payable
-
8 -
DARKEI AVOS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
5 Support costs
| Support costs Governance costs £ £ Website costs - - Motor and travel 341 - Legal and professional fees 2,880 - Office costs 2,268 - Interest payable 14 - Advertising costs 3,519 - Materials and consumables 232 - Events 6,214 - Accountancy - 1,560 Consultancy - - 15,468 1,560 Analysed between Charitable activities 15,468 1,560 |
2022Support costs Governance costs £ £ £ - 1,760 - 341 199 - 2,880 1,667 - 2,268 5,203 - 14 63 - 3,519 1,755 - 232 3,304 - 6,214 3,250 - 1,560 - 1,560 - - 113 17,028 17,201 1,673 17,028 17,201 1,673 |
2021 £ 1,760 199 1,667 5,203 63 1,755 3,304 3,250 1,560 113 |
|---|---|---|
| 18,874 | ||
| 18,874 |
Governance costs includes payments to the auditors of £1,560 (2021- £1,560) for audit fees.
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 June 2022 nor for the year ended 30 June 2021.
7 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 |
|---|---|
| Number | Number |
| 3 | 3 |
There were no employees whose annual remuneration was more than £60,000.
- 9 -
DARKEI AVOS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
8 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Other creditors Accruals and deferred income |
2022 £ 479 3,120 3,599 |
2021 £ - 1,560 |
| 1,560 |
9 Related party transactions
There were no related party transactions in the year ended 30th June 2022.
- 10 -