REGISTERED COMPANY NUMBER: 11468334 (England and Wales) REGISTERED CHARITY NUMBER: 1181702
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
FOR
MERKAZ HATORAH LIMITED
MERKAZ HATORAH LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 To 11 |
MERKAZ HATORAH LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's objectives are to further those purposes both in the United Kingdom and abroad recognised as charitable by English Law.
The charity receives rental income from investment properties which it is currently redeveloping in the charity’s best interest. Income will be applied to further the charity’s objectives.
The charity's principle activity, although not limited to, is the provision and distribution of grants and donations to charitable organisations for the purpose of the advancement of the Jewish religion and the advancement of education in accordance with the Jewish religion among the Jewish community throughout the world.
Public benefit
The Trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the charity's aims and objectives and in planning future activities
Grant making
The trustees are approached for donations by a wide variety of charitable institutions.
The trustees take due care to ensure that all grants are made only to charitable institutions and organisations that are deemed charitable according to English law and which accord with the objects of the charity. In making grants and donations, the trustees use their personal knowledge of the institution, its representatives, operational efficiency and reputation. The trustees consider all requests and make donations based on the level of funds available
ACHIEVEMENT AND PERFORMANCE
Charitable activities
During the year the charity pursued its philanthropic objects.
The charity raised £66,673 (2020: £8) in investment income.
FINANCIAL REVIEW
Financial position
The financial results of the charity for the year ended 31 July 2021 are fully reflected in the attached Financial Statements together with the Notes thereon.
The present level of funding is adequate to meet the trustees objectives. The trustees consider the financial position of the charity to be satisfactory.
The prior year have been reinstated to reflect the inclusion of Rochester Developments Ltd.
Principal funding sources
The charity's principal funding sources in the year were from donations from individuals and companies.
Reserves policy
The Reserves Policy of the trustees is to maintain unrestricted funds, which are free reserves of the charity, to ensure that it is in a position to continue its on-going grant making activities and cover contingencies arising from additional calls made upon the charity for the support of organisations in times of need. The trustees expect to receive an increase in such demands in future years and therefore consider it necessary to maintain unrestricted funds to ensure that there are sufficient reserves to provide to financial stability and flexibility.
As at 31 July 2021, the charity has no distributable reserves and this position is expected to be reversed in the coming year. The trustees expect to receive donations in time to meet its liabilities and financial commitments as they fall due.
Page 2
MERKAZ HATORAH LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021
FINANCIAL REVIEW
Going concern
The financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the Trustees have a reasonable basis to expect that the charity has adequate financial ability to continue its operations for the foreseeable future based on its expectation of future receipt of donations.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is constituted as a company limited by guarantee and as such, its governing documents are its Memorandum and Article's of Association.
Recruitment and appointment of new trustees
The Charity may by ordinary resolution appoint a person who is willing to act to be a trustee either to fill a vacancy or as an additional trustee. New trustees are appointed based on personal competence, specialist skills, local availability and from those who are able to promote the charitable activities of the charity. Induction of new trustees into the workings of the charity is undertaken by the current trustees.
The quorum for the transaction of the business of the trustees may be fixed by the trustees but shall not be less than the majority of their number. None of the trustees have any beneficial interest in the charity. All trustees giver their time voluntarily and no benefit or expenses were paid to them in the year
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
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 major risks
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
11468334 (England and Wales)
Registered Charity number
1181702
Registered office
61 Elm Park Avenue Lonodn N15 6UN
Trustees
Mr A Brecher Director Mr P M Deutsch Director Mrs D Hager Director
Page 2
MERKAZ HATORAH LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021
Independent Examiner
Mr Moshe Hirsh FCCA Hirsh Accountants Limited 43 Lampard Grove London N16 XA
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Merkaz Hatorah Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 31 May 2022 and signed on its behalf by:
Mr A Brecher - Trustee
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MERKAZ HATORAH LIMITED
Independent examiner's report to the trustees of Merkaz Hatorah Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2021.
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 have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
Mr Moshe Hirsh FCCA Hirsh Accountants Limited 43 Lampard Grove London N16 6AX
31 May 2022
Page 4
MERKAZ HATORAH LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021
| 2021 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Investment Income 66,673 EXPENDITURE ON Raising Funds Investment Management Costs 179,486 Charitable Activities 3 13,440 Total (192,926) NET INCOME/(EXPENDITURE) (126,253) RECONCILIATION OF FUNDS Total funds brought forward 589,073 TOTAL FUNDS CARRIED FORWARD 462,820 |
2020 Total funds £ 8 173,751 3,495 (177,246) (177,238) 766,311 589,073 |
|---|---|
The notes form part of these financial statements
Page 5
MERKAZ HATORAH LIMITED
BALANCE SHEET 31 JULY 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Total | Total | ||
| funds | funds | ||
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Fixed Asset Investments Properties | 6 | 2,618,639 | 1,851,757 |
| CURRENT ASSETS | |||
| Debtors | 7 | 120,710 | 79,311 |
| Cash at bank | 32,400 | 46,305 | |
| ___ | __ | ||
| 153,110 | 125,616 | ||
| CREDITORS | |||
| Amounts falling due within one year | 8 | (2,308,929) | (1,388,300) |
| NET ASSETS | 462,820 | 589,073 | |
| FUNDS | 9 | ||
| Unrestricted funds | 462,820 | 589,073 | |
| TOTAL FUNDS | 10 | 462,820 | 589,073 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 31 May 2022 and were signed on its behalf by:
Mr A Brecher – Trustee
The notes form part of these financial statements
Page 6
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
1. GENERAL INFORMATION
The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 61 Elm Park Avenue, London, N15 6UN.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charity’s accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.
Income
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
The following specific policies are applied to particular categories of expenditure:
- grants and donations are recognised when paid.
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 JULY 2021
2. ACCOUNTING POLICIES – continued
Expenditure
Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.
Governance costs
Governance costs include cost of the preparation and independent examination of financial statements and cost of any legal advice to trustees on governance and constitutional matters.
Taxation
The charity is not liable to direct taxation on its income or gains, whether realised or not, as it falls within the various exemptions liable to registered charities. Accordingly, the charity does not recognise any deferred tax liability on revaluations of investments as no tax would be due in the event of a disposal as the charity would benefit from the relevant exemptions, as it will apply all funds for qualifying charitable purposes.
Fund accounting
General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
3. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Governance | |
| costs | |
| £ | |
| Governance costs | 13,440 |
4. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Independent examiner’s remuneration | 1,500 | - |
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 JULY 2021
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2021 nor for the year ended 31 July 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.
6. FIXED ASSETS
Investment Property
| Investment | ||
|---|---|---|
| Property | Total | |
| £ | £ | |
| Cost or Valuation | ||
| At 1 August 2020 | 1,851,757 | 1,851,757 |
| Additions during the year | 766,881 | 766,881 |
| __ | __ | |
| Carrying Amount at 31 July 2021 | 2,618,638 | 2,618,638 |
| At 31 July 2020 | 1,851,757 | 1,851,757 |
All investments shown above are held at valuation. The investment property is stated at Trustees’ valuation as at 31 July 2021. The historical cost of the property at 31 July 2021 is £2,618,638 (2020: £1,851,757).
Investment in Subsidiary
The company has an investment in a subsidiary undertaking of £1 relating to Rochester Developments Ltd, a company registered in England and Wales (Registration Number: 11635532).
Rochester Developments Ltd filed Dormant Account for the year ended 31 July 2021.
7. DEBTORS
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade Debtors | 11,656 | - |
| Other Debtors | 109,054 | 79,311 |
| 120,710 | 79,311 |
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 JULY 2021
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade Creditors | 13,908 | 13,908 |
| Other Creditors | 126,046 | 111,391 |
| Bank Loans | 2,164,598 | 1,260,837 |
| Accruals and Prepayments | 4,377 | 2,164 |
| 2,308,928 | 1,388,300 |
Creditors include amounts owed to companies of which directors of this company are directors. The loans are interest free and legally repayable on demand. The directors have indicated there is no plan to recall the loans within the next 12 months.
9. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.8.20 | in funds | 31.7.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 589,073 | (126,253) | (462,820) |
| TOTAL FUNDS | 589,073 | (126,253) | (462,820) |
| Net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 66,673 | (192,926) | (126,253) |
| TOTAL FUNDS | 66,673 | (192,926) | (126,253) |
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 JULY 2021
Comparatives for movement in funds
| Net | |||||
|---|---|---|---|---|---|
| movement | At | ||||
| At 1.8.19 | in funds | 31.7.20 | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 766,311 | (177,238) | 589,073 | ||
| TOTAL FUNDS | 766,311 | (177,238) | 589,073 | ||
| Comparative net movement in funds, included in the above are as follows: | |||||
| Incoming | Resources | Movement | |||
| resources | expended | in funds | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 8 | (177,246) | (177,238) | ||
| TOTAL FUNDS | 8 | (177,246) | (177,238) |
10. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted Funds | Total Funds | |
|---|---|---|
| 2021 | ||
| £ | £ | |
| Investments | 2,618,639 | 2,618,639 |
| Current Assets | 153,110 | 153,110 |
| Creditors less than 1 year | 2,308,928 | 2,308,928 |
| Net Assets | 462,820 | 462,820 |
| Unrestricted Funds | Total Funds | |
| 2020 | ||
| £ | £ | |
| Investments | 1,851,717 | 1,851,717 |
| Current Assets | 125,616 | 125,616 |
| Creditors less than 1 year | 1,388,300 | 1,388,300 |
| Net Assets | 589,073 | 589,073 |
MERKAZ HATORAH LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2021
11. RELATED PARTY DISCLOSURES
Other than disclosed above and elsewhere in the accounts, there were no related party transactions for the year ended 31 July 2021.
12. LIMITED BY GUARANTEE
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding is limited to £1.