Charity Registration No. 1190831
Company Registration No. 12431285 (England and Wales)
MOSDOS HATORAH PNEI MENACHEM LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
MOSDOS HATORAH PNEI MENACHEM LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr M Kornik Mr Y B Schaechter Mr David Margulies
Charity number 1190831 Company number 12431285 Registered office 13 Leweston Place London England N16 6RJ
Independent examiner
Mr J Silver FCCA Precision Ltd 32 Castlewood Road London N16 6DW
MOSDOS HATORAH PNEI MENACHEM LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Statement of cash flows | 6 |
| Notes to the financial statements | 7 - 13 |
MOSDOS HATORAH PNEI MENACHEM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JANUARY 2022
The trustees present their annual report and financial statements for the year ended 31 January 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 governing document, 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 charity's objects are the advancement of the Orthodox Jewish faith for the public benefit in such ways as are exclusively charitable as set out under English law and in particular but not exclusively by:
a) providing or supporting in the provision of places for religious worship and education; and
b) providing for the pastoral needs and welfare of the community, particularly members of the Jewish community.
Grants on the unrestricted fund are made after the charity has undertaken the due diligence steps recommended by the charity commission.
Applications by individuals must be accompanied by a letter of recommendation by the applicant's minister or other known religious leader, the charity also ascertains that the individuals are in need of funds by requesting proof of income.
Grants to institutions are issued after a process of due diligence and engagement with the charity’s leadership both before the donation/s being made and afterwards through continuous monitoring and evaluation d uring the course of the grant, to ensure that funds are expended by the recipients in line with the agreed purpose or in accordance with agreements made, and that reporting requirements are met before any further instalments are paid out.
Where the grants are made to overseas charities the charity has policies, procedures and agreements in place with the overseas bodies to ensure it is meeting the necessary regulatory requirements. The Charity undertakes visits to the various projects, as well as conducts spot checks on financial procedures, request evidence of expenditure etc.
The charity is also involved in the running of a synagogue in the United Kingdom. Trustees were delighted with the outcomes highlighted following an evaluation of services provided by the synagogue. All grants over £5,000 are detailed in the notes to the accounts.
Public Benefit
In planning activities for the year, the trustees took due heed of the Charity Commission's guidance on the requirement to provide public benefit, as well as the requirements of the Equalities Act 2010. Trustees undergo periodic training in both these areas.
Due regard is also given to the deliverance of the Child Protection Policies within the direct work undertaken by the charity and within the Organisations in receipt of grants.
Achievements and performance
In the year under review the charity generated income of £680,466 and incurred expenses of £509,395 resulting in net incoming resources of £171,071.
The trustees are satisfied with the results of the charity.
Financial review
The amount on the Unrestricted fund at the year end was £168,477.
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MOSDOS HATORAH PNEI MENACHEM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
The trustees do not seek to maintain reserves, other than to ensure that they can continue the activities of the charity.
Risk Management
The charity produced a risk register that sets out the operational and strategic risks to which the charity is exposed, and how these risks are managed and controlled. This included the specific COVID-19 risks. There is a process for internal audit which provides checks that controls are working effectively and that risk is managed in a proportionate way. Internal audit arrives at ratings for each area of risk management and identifies actions for improvement where appropriate. The trustees have assessed the major risks to which the charity is exposed and are satisfied that there are systems are in place to mitigate exposure to the major risks. There are no current plans to change the activities or modus operandi in the foreseeable future.
Structure, governance and management
The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.
It was incorporated on 29 January 2020 as a company and registered as a charity on 12 August 2020 .
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:
Mr M Kornik Mr Y B Schaechter Mr David Margulies
It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures .
The trustees administer the day to day running of the charity.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' r eport was approved by the Board of Trustees.
..............................
Mr Y B Schaechter
Trustee Dated: .........................
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MOSDOS HATORAH PNEI MENACHEM LTD
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF MOSDOS HATORAH PNEI MENACHEM LTD
I report to the trustees on my examination of the financial statements of Mosdos Hatorah Pnei Menachem Ltd (the charity) for the year ended 31 January 2022.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (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
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , 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 that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements 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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4 the financial statements 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 financial statements to be reached.
Mr J Silver FCCA Precision Ltd 32 Castlewood Road London N16 6DW
Dated: .........................
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MOSDOS HATORAH PNEI MENACHEM LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JANUARY 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and legacies | 3 | 671,066 | 208,476 |
| Investments | 4 | 9,400 | - |
| Total income | 680,466 | 208,476 | |
| Expenditure on: | |||
| Raising funds | 5 | 10,090 | - |
| Charitable activities | 6 | 499,305 | 211,070 |
| Total resources expended | 509,395 | 211,070 | |
| Net income/(expenditure) for the year/ | |||
| Net movement in funds | 171,071 | (2,594) | |
| Fund balances at 1 February 2021 | (2,594) | - | |
| Fund balances at 31 January 2022 | 168,477 | (2,594) |
The statement of financial activities includes all gains and losses recognised in the year.
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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MOSDOS HATORAH PNEI MENACHEM LTD
BALANCE SHEET
AS AT 31 JANUARY 2022
| Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets/(liabilities) Total assets less current liabilities Income funds Unrestricted funds |
2022 £ - 188,080 188,080 (21,277) |
£ 1,674 166,803 168,477 168,477 168,477 |
2021 £ 8,863 8,993 17,856 (20,908) |
£ 458 (3,052) (2,594) (2,594) (2,594) |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 January 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
.............................. Mr Y B Schaechter Trustee
Company Registration No. 12431285
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MOSDOS HATORAH PNEI MENACHEM LTD
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2022
| Notes Cash flows from operating activities Cash generated from operations 15 Investing activities Purchase of tangible fixed assets Investment income received Net cash generated from/(used in) investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ (1,635) 9,400 |
£ 171,322 7,765 - 179,087 8,993 188,080 |
2021 £ (572) - |
£ 9,565 (572) - 8,993 - 8,993 |
|---|---|---|---|---|
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022
1 Accounting policies
Charity information
Mosdos Hatorah Pnei Menachem Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 13 Leweston Place, London, N16 6RJ, England.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, 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 charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts 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 charity has adequate resources to continue in operational existence for the foreseeable future, based on the continued financial support from the community. 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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity 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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
1 Accounting policies
(Continued)
1.5 Expenditure
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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 raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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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.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% Reducing Balance Method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.8 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.
1.9 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.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
1 Accounting policies
(Continued)
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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.
The preparation of these financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 671,066 | 208,476 |
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
| 4 5 6 |
Investments Unrestricted Total funds 2022 2021 £ £ Rental income 9,400 - Raising funds Unrestricted Total funds 2022 2021 £ £ Fundraising and publicity Other fundraising costs 10,090 - 10,090 - Charitable activities Charitable Expenditure Charitable Expenditure 2022 2021 £ £ Depreciation and impairment 419 114 Synagogue expenditure 20,346 31,740 20,765 31,854 Grant funding of activities (see note 7) 477,005 177,840 Share of governance costs (see note 8) 1,535 1,376 499,305 211,070 |
|---|---|
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
7 Grants payable
| Charitable | Charitable | |
|---|---|---|
| Expenditure | Expenditure | |
| 2022 | 2021 | |
| £ | £ | |
| Grants to institutions: | ||
| Mosdos Hatora Vehachesed Pney Menachem (R.A.) | 375,500 | 177,840 |
| Yeshivas Pney Menachem Leamaley Tora (R.A.) | 80,425 | - |
| Amud Hatzdokoh Trust | 5,500 | - |
| Ahavat Yisroel UK | 5,000 | - |
| The Friends Of Alexander Institutions Trust | 5,000 | - |
| Other | 1,080 | - |
| 472,505 | 177,840 | |
| Grants to individuals | 4,500 | - |
| 477,005 | 177,840 |
8 Support costs
| Support costs Governance costs £ £ Accountancy - 960 Legal and professional - 352 Bank fees - 223 - 1,535 Analysed between Charitable activities - 1,535 |
2022 £ 960 352 223 1,535 1,535 |
Support costs Governance costs £ £ - 720 - 656 - - - 1,376 - 1,376 |
2021 £ 720 656 - 1,376 1,376 |
|---|---|---|---|
Legal & Professional fees includes payments to the independent examiners of £312 (2021: £ 156) for other services .
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
10 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Number | Number | ||
| Total | - | - | |
| There were no employees whose annual remuneration was more than £60,000. | |||
| 11 | Tangible fixed assets | ||
| Plant and equipment | |||
| £ | |||
| Cost | |||
| At 1 February 2021 | 572 | ||
| Additions | 1,635 | ||
| At 31 January 2022 | 2,207 | ||
| Depreciation and impairment | |||
| At 1 February 2021 | 114 | ||
| Depreciation charged in the year | 419 | ||
| At 31 January 2022 | 533 | ||
| Carrying amount | |||
| At 31 January 2022 | 1,674 | ||
| At 31 January 2021 | 458 | ||
| 12 | Debtors | ||
| 2022 | 2021 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | - | 8,863 |
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022
13 Creditors: amounts falling due within one year
| Trade creditors Other creditors Accruals and deferred income |
2022 £ 557 20,000 720 21,277 |
2021 £ 188 20,000 720 20,908 |
|---|---|---|
Other creditors is an amount due to a company of which one of the directors is also a trustee of this charity.
14 Related party transactions
Besides the above disclosure t here were no disclosable related party transactions during the year .
| 15 Cash generated from operations Surplus/(deficit) for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: Decrease/(increase) in debtors Increase in creditors Cash generated from operations |
2022 £ 171,071 (9,400) 419 8,863 369 171,322 |
2021 £ (2,594) - 114 (8,863) 20,908 9,565 |
|---|---|---|
16 Analysis of changes in net funds
The charity had no debt during the year.
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