# **Company number 12131131 Charity number 1190501** **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **FOR** ## **YESHIVAS MEKOR CHAYIM LIMITED** **Yeshivas Mekor Chayim Limited Report of the trustees For the year ended 31 July 2021** ||Page| |---|---| |Report of the Trustees|1-5| |Report of the Independent Examiner|6| |Statement of Financial Activities|7| |Balance Sheet|8| |Statement of Cash Flows|9| |Notes to the Financial Statements|10-15| 1 **Yeshivas Mekor Chayim 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 31st 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 2015). ## **OBJECTIVES AND AIMS** The objects of the charity are: The advancement of the Jewish religion, including by the establishment and operation of a yeshiva known as Yeshivas Mekor Chayim Limited and by the provision of religious education, religious services and facilities for religious education and study at such yeshiva. ## **Public benefit** The Trustees confirm their compliance with the duty to have 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 and donation making policy** The charity's policy is to act according to the Articles of Association which enables grants and donations to be made from both income and capital. The trustees find that this is the most effective way of aiding applicants as it allows them flexibility in terms of deciding whether they will provide a grant and also ensures that each application is considered fairly. ## **Investment policy and objectives** The charity holds a current account. The policy of the charity is to continue holding this account for its ongoing expenditure. The charity's reserves policy is to maintain sufficient reserves to enable the charity to continue its activities and services at a meaningful level, should there be a drop in income. As all income is derived from voluntary donations, the trustees review this position on a regular basis. Having regard to the above the trustees are of the opinion that the cash reserves held as at the period end would be sufficient to meet one-month basic operating costs and, they intend to increase the reserves held in the forthcoming period. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The memorandum and articles incorporated the company on 31 July 2019 and it became a charity on 21 July 2020. 2 **Yeshivas Mekor Chayim Limited Report of the trustees For the year ended 31 July 2021** ## **Recruitment and appointment of new trustees** The statutory power of appointing new trustees hereof shall be exercisable by the persons who are for the time being the trustees hereof. ## **Induction and training of new trustees** There are policies adopted by the trustees for the induction and training of charity trustees. There are no plans at present to appoint new trustees. The trustees will liaise together as the charity grows. At that point there will be a necessity to appoint more trustees and induction/training procedures will be considered then. ## **Risk management** The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of further adverse conditions. The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate any significant risks. ## **ACHIEVEMENT & PERFORMACE** The Trustees are delighted to report another successful year. We currently have almost 100 students, an increase of 40 and we have increased our lecturers to accommodate the increase without compromising on personal attention. The main objectives of the charity, as governed by the Memorandum and Articles of Association, is to operate a Yeshiva. Our students are engaged in detailed analysis of Talmudical and Biblical texts. They also are guided by the Dean and Principal (Rosh Hayeshiva) to improve and refine their characters. Our main funding comes from many local individuals, corporate donors and charitable trusts. We also ran a very successful fundraising campaign and the total donations we received for this financial year was £523,202 (2020: £45,118). We are also very grateful to the Trustees of North London Welfare and Educational Foundation, a local charity, who have again stepped up and supported the yeshiva so that we remain on safe financial footing. The Trustees are immensely grateful to all our supporters and take solace in all of them for showing such support over the last year. ## **PLANS FOR FUTURE** We have now signed a lease for a more permanent and larger building to accommodate the extra students and we expect the Yeshiva to only grow each year. We are also looking for creative and innovative ways to increase our donor base. We have to be wary of the financial impact of the Covid - 19 pandemic and therefore we actively make sure that we are frugal with our expenditure and at the same time, we do not want to compromise on our ability to deliver the objectives of the charity and continue building our students into fine young men. 3 **Yeshivas Mekor Chayim Limited Report of the trustees For the year ended 31 July 2021** ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Company number 12131131** (England and Wales) **Registered Charity number 1190501** ## **Registered office** 29 Broadfields Avenue Edgware HA8 8PF ## **Trustees** Ilan Halberstadt Elisha Koppel B C Joseph ## **Independent Examiner** Anthony Epton Goldwins Limited 75 Maygrove Road West Hampstead London NW6 2EG 4 Yeshlvas Mekor Chayim Limited Report of Ihe trustees For the year ended 31 July 2021 Statement of trustees. responsibilities Th8 trust88s {who ar8 also the directors of Yeshivas Mekor Chayim knmited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with appliGable law and United Kingdom Accounting Stsndards (United Kingdom G8n6rally Accepted Accounting Practice) including Financial Reporiing Standard 102 'The Financial Reporting standard applicable in the UK and Republic of Ireland". Company law requires the trustees to prepare financial ststements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of reSoU￿s, including the income and expenditure. of the charitable company for that period. In pr8paring thos8 financial stat8m8nts, the Irust8es are requirèd to: select suitable accounting policies and then apply them consistently., obsetve the methi)ds and principles in the Charty SORP., make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements: prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company viill 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 compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taktng reasonablè st8ps for the prevention and detection of fraud and other irregularities. Approved by the Board of Trustees on 11 and signed on its behalf by: Ellsha Truste ## **Independent examiner’s report to the trustees of Yeshivas Mekor Chayim Limited for the year ended 31 July 2021** 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** Since the Company’s gross income exceeded £250,000, I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies. 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: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. 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 4. 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. **Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG** **15 November 2021** 6 ## **Yeshivas Mekor Chayim Limited Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 July 2021** |**2021**
**Unrestricted**
**Total**
**Note**
**£**
**Income from:**
Donations
**2**
523,202
Charitable activities
**3**
41,185
Investment income
**4**
4
**Total income**
**564,391**
**Expenditure on:**
Raising funds
24,057
Charitable activities:
452,877
**Total expenditure**
**5**
**476,934**
**Net income/ (expenditure) for**
**the year**
87,457
**Net movement in funds**
**6**
**87,457**
**Reconciliation of funds:**
Total funds brought forward
(12,034)
**Total funds carried forward**
**12**
**75,423**|**2021**
**Unrestricted**
**Total**
**Note**
**£**
**Income from:**
Donations
**2**
523,202
Charitable activities
**3**
41,185
Investment income
**4**
4
**Total income**
**564,391**
**Expenditure on:**
Raising funds
24,057
Charitable activities:
452,877
**Total expenditure**
**5**
**476,934**
**Net income/ (expenditure) for**
**the year**
87,457
**Net movement in funds**
**6**
**87,457**
**Reconciliation of funds:**
Total funds brought forward
(12,034)
**Total funds carried forward**
**12**
**75,423**|**2021**
**Restricted**
**Funds**
**£**
-
-
-|**2021**
**Total Funds**
**£**
**523,202**
**41,185**
**4**|2020
Total
Funds
£
45,118
-
-| |---|---|---|---|---| ||**564,391**|-|**564,391**|45,118| ||24,057
452,877|-|**24,057**
**452,877**|-
57,152| ||**476,934**|-|**476,934**|57,152| ||87,457|**-**|**87,457**|(12,034)| ||**87,457**|**-**|**87,457**|(12,034)| ||(12,034)|-|**(12,034)**|-| ||**75,423**|**-**|**75,423**|(12,034)| All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements. 7 Yeshivas Mekor Chaylm Limited Balance sheel As at 31 Jul 2021 Not• 2021 2021 2020 2020 Flxed assets: Tangible assets 55,373 Current assets: Cash at bank and in hand 71,550 71.550 39,466 39,466 Liabilities: Creditors: amounts falling due within one year 10 51,500 51.500 Net current assetsl (liabllltles) 20,050 12,034) Totsl assets less Gurrent Ilabllllles 75.423 {12,034) Total net assetsl (liabilitles) 11 75.423 (12,034) Funds General funds Total unrestricted funds 75.423 {12,034) 75,423 (12,034) Total funds 12 75.423 (12,034) For th8 year ended 31 July 2021 the company was entided to exemption from audit under s8Ction 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordan￿ wth section 476 of the Companies Act 2006.The directors aCknO￿edge their responsibiltty for.complying Y￿th the requirements of the Act with r8SP8Ct to accounting records and for the preparation of accounts.These accounts hav8 b88n prepared in accordan￿ with the provisions appIl￿ble to companies subject to the small companies regime. Approved by the trustees on IL and signed on their behalf by= Ellsha Ko Trustee Company registration no. 12131131 ## **Yeshivas Mekor Chayim Limited Statement of cash flows For the year ended 31 July 2021** |**Reconciliation of net income / (expenditure)**
**to net cash flow from operating activities**
Net income / (expenditure) for the year
Depreciation
Increase / (decrease) in creditors
**Cash flow provided by (used in) operating**
**activities**
**Cash flow from investing activities:**
(Purchase) of fixed assets
**Cash flow provided by (used in) investing**
**activities**
**Change in cash and cash equivalents in the**
**year**
Cash and cash equivalents at the beginning of the
year
**Cash and cash equivalents at the end of the**
**year**|**2021**
**2021**
**£**
**£**
87,457
18,458
**-**
**105,915**
**(73,831)**
**(73,831)**
**32,084**
**39,466**
**71,550**|2020
2020
£
£
(12,034)
-
51,500
**39,466**
**-**
**-**
-
**39,466**
-
**39,466**|2020
2020
£
£
(12,034)
-
51,500
**39,466**
**-**
**-**
-
**39,466**
-
**39,466**| |---|---|---|---| ||**(73,831)**|**-**|| |||-|| ||||**39,466**| ||||-| ||||**39,466**| 9 **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **1 Accounting policies** ## **a) Basis of preparation** The financial statements have been prepared in accordance with 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 2015) - (Charities SORP FRS 102) and Companies Act 2006. The charitable 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 or note. ## **b) Going concern** The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. ## **c) Income** Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. ## **d) Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. ## **e) Fund accounting** Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity. ## **f) Expenditure and irrecoverable VAT** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Costs of raising funds comprise of costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. - Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 10 **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **1 Accounting policies (continued)** ## **g) Allocation of support costs** Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 5. ## **h) Operating leases** Rental charges are charged on a straight line basis over the term of the lease. ## **i) Tangible fixed assets** Items of equipment are capitalised where the purchase price exceeds £500. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Leasehold improvements 25% reducing balance Motor vehicles 25% reducing balance Fixtures and fittings 25% reducing balance ## **j) Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **k) Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **l) 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 11 ## **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **2 Donations** |**Donations**||||| |---|---|---|---|---| |Donations
**Charitable activities**
Fees received|**Unrestricted**
**Funds**
**£**
523,202|
**Restricted**
**Funds**
**£**
-|
**2021**
**Total**
**£**
523,202|
**2020**
**Total**
£
45,118| ||523,202|-|**523,202**|**45,118**| ||**Unrestricted**
**Funds**
**£**
41,185|
**Restricted**
**Funds**
**£**
-|
**2021**
**Total**
**£**
41,185|
**2020**
**Total**
£
-| ||41,185|-|**41,185**|-| ## **3 Charitable activities** ## **4 Investment income** |**Investment income**||||| |---|---|---|---|---| ||**Unrestricted**|**Restricted**|**2021**|**2020**| ||**Funds**|**Funds**|**Total**|**Total**| ||**£**|**£**|**£**|£| |Bank interest received|4|-|4|-| ||4|-|**4**|-| 12 **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **5 Analysis of expenditure** |**Basis of**
**allocation**
Donations
Direct
Fundraising costs
Direct
Lecturer costs
Direct
Books
Direct
Rent
Space
Legal and professional
Direct
Food
Direct
Bank charges
Direct
Independent examiner fees
Direct
Travel and motor expenses
Direct
Other charitable activities
Direct
Cleaning
Space
Office costs
Space
Depreciation
Direct
Support costs
Governance costs
**Total expenditure 2021**
**Total expenditure 2020**|**Fundraising**
**costs**
£
-
24,057
-
-
-
-
-
-
-
-
-
-
-
-
24,057
-
-
**24,057**
**-**|**Charitable**
**activities**
£
248,570
-
-
2,077
-
-
101,092
-
-
22,497
4,241
-
-
-
378,477
72,900
1,500
**452,877**
**57,152**|**Support**
**costs**
£
-
-
-
-
24,000
3,377
-
521
-
-
-
20,520
6,024
18,458
72,900
(72,900)
-
**-**
**-**|**Governance**
**costs**
£
-
-
-
-
-
-
-
-
1,500
-
-
-
-
-
1,500
-
(1,500)
**-**
**-**|**2021**
**Total**
**£**
**248,570**
**24,057**
**-**
**2,077**
**24,000**
**3,377**
**101,092**
**521**
**1,500**
**22,497**
**4,241**
**20,520**
**6,024**
**18,458**
**476,934**
-
-
**476,934**
**-**|**2020**
**Total**
£
25,700
3,984
7,800
769
6,450
-
10,956
(7)
1,500
-
-
-
-
-| |---|---|---|---|---|---|---| |||||||57,152| |||||||**57,152**| All of the expenditure was unrestricted. 13 ## **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **6 Net income / (expenditure) for the year** |**Net income / (expenditure) for the year**||| |---|---|---| |This is stated after charging / (crediting):|**2021**|2020| ||**£**|£| |Operating lease rental|**24,000**|6,450| |Depreciation|**18,458**|-| |Independent examiner's fees|**2,400**|1,500| ## **7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** There were no employees during the year. The charity trustees were not paid or received any benefits from employment with the charity neither were they reimbursed expenses during the year. No charity trustee received payment for professional or other services supplied to the charity. ## **8 Taxation** The charity is exempt from corporation tax as all its income is charitable and is applied for the charitable purposes. ## **9 Tangible fixed assets** |**Cost**
At the start of the year
Additions in year
At the end of the year
**Depreciation**
At the start of the year
Charge for the year
At the end of the year
**Net book value**
**At the end of the year**
At the start of the year|Leasehold
improvements
£
-
65,284|Motor
vehicles
£
-
3,000|Fixtures
and fittings
£
-
5,547|**2021**
**Total**
£
**-**
**73,831**| |---|---|---|---|---| ||65,284|3,000|5,547|**73,831**| ||-
16,321|-
750|-
1,387|-
18,458| ||16,321|750|1,387|**18,458**| |||||| ||**48,963**|**2,250**|**4,160**|**55,373**| |||||| ||-|-|-|-| All of the above assets are used for charitable purposes. 14 ## **Yeshivas Mekor Chayim Limited Notes to the financial statements For the year ended 31 July 2021** ## **10 Creditors: amounts falling due within one year** |**Creditors: amounts falling due within one year**|**Creditors: amounts falling due within one year**|**Creditors: amounts falling due within one year**|||| |---|---|---|---|---|---| |Other loans
Accruals
**Analysis of net assets between funds**
General
Unrestricted
Funds
£
Fixed assets
55,373
Net current assets
75,423
**Total net assets**
**75,423**
**Analysis of net assets between funds prior year**
General
Unrestricted
Funds
£
Net current (liabilities)
(12,034)
**Total net (liabilities)**
**(12,034)**
**Movements in funds**
£
£
**General funds**
(12,034)
564,391
**Total unrestricted funds**
**(12,034)**
**564,391**
**Movements in funds prior year**
£
£
**General funds**
-
45,118
**Total unrestricted funds**
**-**
**45,118**
At the
start of
the year
Income
At the
start of
the year
Income|||Designated
Funds
£
-
-|**2021**
**£**
50,000
1,500|2020
£
50,000
1,500| |||||**51,500**|51,500| |||||Restricted
Funds
£
-
-|**Total**
**funds**
**£**
**55,373**
**75,423**| |||**75,423**|**-**|**-**|**130,796**| ||||Designated
Funds
£
-|Restricted
Funds
£
-|**Total**
**funds**
**£**
**(12,034)**| |||**(12,034)**|**-**|**-**|**(12,034)**| |||£
564,391
Income|£
(476,934)
Expenditure|Transfers
£
-|**£**
**75,423**
**At the end**
**of the year**| ||**(12,034)**|**564,391**|**(476,934)**|**-**|**75,423**| ||**year**
£
-
At the
start of
the year|£
45,118
Income|£
(57,152)
Expenditure|Transfers
£
-|**£**
**(12,034)**
**At the end**
**of the year**| ||**-**|**45,118**|**(57,152)**|**-**|**(12,034)**| ## **11 Analysis of net assets between funds** ## **12 Movements in funds** ## **13 Related party transactions** During the charity received donations for the sum of £54,200 from North London Welfare and Educational Foundation. One of the trustees, Mr B C Joseph, is also a trustee in North London Welfare and Education Foundation. 15