Charity registration number 1190831
Company registration number 12431285 (England and Wales)
MOSDOS HATORAH PNEI MENACHEM LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024
MOSDOS HATORAH PNEI MENACHEM LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr Y B Schaechter Mr David Margulies Mr S Margulies (Appointed 25 May 2023)
Charity number 1190831 Company number 12431285 Registered office 13 Leweston Place London England N16 6RJ Auditor Glazers 843 Finchley Road NW11 8NA
MOSDOS HATORAH PNEI MENACHEM LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of trustees' responsibilities | 3 |
| Independent auditor's report | 4 - 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of cash flows | 9 |
| Notes to the financial statements | 10 - 18 |
MOSDOS HATORAH PNEI MENACHEM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JANUARY 2024
The trustees present their annual report and financial statements for the year ended 31 January 2024.
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 during 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, and during the year the charity purchased a building to be used for this purpose. 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 £3,070,897 (2023: £1,058,617) and incurred expenses of £1,904,729 (2023: £917,373) resulting in net incoming resources of £1,166,168.
The trustees are satisfied with the results of the charity.
Financial review
The amount on the Unrestricted fund at the year end was £1,475,889 of which £110,630 are free reserves.
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MOSDOS HATORAH PNEI MENACHEM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024
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. 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 (Resigned 25 October 2023) Mr Y B Schaechter Mr David Margulies Mr S Margulies (Appointed 25 May 2023)
All new trustees receive suitable recruitment induction and training procedures.It is not the intention of the trustees of the charity to appoint any further new trustees at the moment.
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.
Auditor
In accordance with the company's articles, a resolution proposing that Glazers be reappointed as auditor of the company 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.
..............................
Mr Y B Schaechter
Trustee Dated: .........................
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MOSDOS HATORAH PNEI MENACHEM LTD
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 JANUARY 2024
The trustees, who are also the directors of Mosdos Hatorah Pnei Menachem Ltd 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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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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MOSDOS HATORAH PNEI MENACHEM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF MOSDOS HATORAH PNEI MENACHEM LTD
Opinion
We have audited the financial statements of Mosdos Hatorah Pnei Menachem Ltd (the ‘charity’) for the year ended 31 January 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 January 2024 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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MOSDOS HATORAH PNEI MENACHEM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MOSDOS HATORAH PNEI MENACHEM LTD
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
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. 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. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
1) Enquiries of management concerning the charity's policies and procedures relating to:
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identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
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detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
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the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; 2) Discussions among the engagement team regarding how and when fraud might occur in the financial statements and any potential indicators of fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
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MOSDOS HATORAH PNEI MENACHEM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MOSDOS HATORAH PNEI MENACHEM LTD
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Charities Act 2011 .
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or avoid a material penalty.
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.
In addition to the above, our procedures to respond to risks identified included the following:
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Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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Enquiring of management concerning actual and potential litigation and claims;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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Reading minutes of meetings of those charged with governance.
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In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Trustees and other management are responsible for such internal control as the Trustees and other management of the Charity determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
Other matters
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
......................... Glazers Chartered Accountants 843 Finchley Road Statutory Auditor London
Glazers is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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MOSDOS HATORAH PNEI MENACHEM LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2024 | 2023 | ||
| restated | |||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 3,037,985 | 1,028,947 |
| Investments | 4 | 32,912 | 29,670 |
| Total income | 3,070,897 | 1,058,617 | |
| Expenditure on: | |||
| Raising funds | 5 | 82,722 | 33,350 |
| Charitable activities | 6 | 1,822,007 | 884,023 |
| Total expenditure | 1,904,729 | 917,373 | |
| Net income for the year/ | |||
| Net movement in funds | 1,166,168 | 141,244 | |
| Fund balances at 1 February 2023 | 309,721 | 168,477 | |
| Fund balances at 31 January 2024 | 1,475,889 | 309,721 |
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 2024
| 2024 Notes £ £ Fixed assets Tangible assets 12 2,390,049 Current assets Debtors 13 89,505 Cash at bank and in hand 56,785 146,290 Creditors: amounts falling due within one year 14 (1,060,450) Net current (liabilities)/assets (914,160) Total assets less current liabilities 1,475,889 Income funds Unrestricted funds 1,475,889 1,475,889 |
2023 as restated £ £ 1,511 491,809 84,044 575,853 (267,643) 308,210 309,721 309,721 309,721 |
2023 as restated £ £ 1,511 491,809 84,044 575,853 (267,643) 308,210 309,721 309,721 309,721 |
|---|---|---|
| 309,721 | ||
| 309,721 | ||
| 309,721 |
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 2024, although an audit has been carried out under section 144 of the Charities Act 2011.
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 under the requirements of the Companies Act 2006, 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 number 12431285
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MOSDOS HATORAH PNEI MENACHEM LTD
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2024
| 2024 Notes £ £ Cash flows from operating activities Cash generated from/(absorbed by) operations 16 2,332,904 Investing activities Purchase of tangible fixed assets (2,393,075) Investment income received 32,912 Net cash (used in)/generated from investing activities (2,360,163) Net cash used in financing activities - Net decrease in cash and cash equivalents (27,259) Cash and cash equivalents at beginning of year 84,044 Cash and cash equivalents at end of year 56,785 |
2023 £ £ (133,491) (215) 29,670 29,455 - (104,036) 188,080 84,044 |
|---|---|
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024
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 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 Prior period error
In the previous year a £200,000 loan was recognised as donations to the charity in error. The trustees of the charity have therefore made a prior year adjustment to correct the material error.
The creditors brought forward and the unrestricted funds have been amended to reflect the above amendment as can be seen in note 17.
1.3 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.
1.4 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.
1.5 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 2024
1 Accounting policies
(Continued)
1.6 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.
1.7 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
Freehold land and assets in the course of construction are not depreciated.
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.
1.8 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).
1.9 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.
1.10 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 2024
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 payments 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 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Tangible Fixed Assets
The valuation of the charity's Freehold property is subject to a degree of uncertainty, as the value depends on various factors including the nature of the property, its location and expected future net rental values, market yields and comparable market transactions, and particularly due to the currently volatile property market, and is made on the basis of assumptions which may not prove to be accurate.
Trade and Other Debtors
Management uses details of the age of trade and other debtors and the status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any need to impair the carrying value.
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024
| 3 4 5 |
Donations and legacies Unrestricted Unrestricted funds funds 2024 2023 restated £ £ Donations and gifts 3,037,985 1,028,947 Investments Unrestricted Unrestricted funds funds 2024 2023 £ £ Rental income 32,912 29,670 Raising funds Unrestricted Unrestricted funds funds 2024 2023 £ £ Fundraising and publicity Staging fundraising events 55,833 20,630 Other fundraising costs 26,889 12,720 Fundraising and publicity 82,722 33,350 82,722 33,350 |
Donations and legacies Unrestricted Unrestricted funds funds 2024 2023 restated £ £ Donations and gifts 3,037,985 1,028,947 Investments Unrestricted Unrestricted funds funds 2024 2023 £ £ Rental income 32,912 29,670 Raising funds Unrestricted Unrestricted funds funds 2024 2023 £ £ Fundraising and publicity Staging fundraising events 55,833 20,630 Other fundraising costs 26,889 12,720 Fundraising and publicity 82,722 33,350 82,722 33,350 |
|---|---|---|
| 33,350 | ||
| 33,350 |
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure | |
| 2024 | 2023 | |
| £ | £ | |
| Depreciation and impairment | 4,537 | 378 |
| Synagogue expenditure | 62,321 | 50,704 |
| Printing Educational Booklets | 32,770 | - |
| 99,628 | 51,082 | |
| Grant funding of activities (see note 7) | 1,712,955 | 828,250 |
| Share of support costs (see note 8) | 1,398 | - |
| Share of governance costs (see note 8) | 8,026 | 4,691 |
| 1,822,007 | 884,023 |
7 Grants payable
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure | |
| 2024 | 2023 | |
| £ | £ | |
| Grants to institutions: | ||
| Mosdos Hatora Vehachesed Pney Menachem (R.A.) | 697,500 | 121,000 |
| Yaalozin Hasidim | 860,000 | 687,700 |
| The J & R Margulies Charitable Trust | 38,000 | - |
| Dina Perelman Trust Limited | 20,000 | - |
| Friends of Ashdod | 10,000 | - |
| Other | 33,310 | 7,050 |
| 1,658,810 | 815,750 | |
| Grants to individuals | 54,145 | 12,500 |
| 1,712,955 | 828,250 |
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024
8 Support costs
| Support costs Governance costs £ £ General Office Costs 1,398 - Audit fees - 1,440 Accountancy - 2,400 Legal and professional - 3,408 Bank fees - 778 1,398 8,026 |
2024Support costs Governance costs £ £ £ 1,398 - - 1,440 - 2,880 2,400 - 1,068 3,408 - 48 778 - 695 9,424 - 4,691 |
2023 £ - 2,880 1,068 48 695 |
|---|---|---|
| 4,691 |
Governance costs includes payments to the auditors of £1,440 for audit fees.
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| 2024 | 2023 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024
| 12 Tangible fixed assets Freehold land and buildings £ Cost At 1 February 2023 - Additions 2,371,901 At 31 January 2024 2,371,901 Depreciation and impairment At 1 February 2023 - Depreciation charged in the year - At 31 January 2024 - Carrying amount At 31 January 2024 2,371,901 At 31 January 2023 - |
Plant and equipment £ 2,422 21,174 23,596 911 4,537 5,448 18,148 1,511 |
Total £ 2,422 2,393,075 |
|---|---|---|
| 2,395,497 | ||
| 911 4,537 |
||
| 5,448 | ||
| 2,390,049 | ||
| 1,511 |
The charity purchased a property on the 18 September 2023, to be used as a synagogue and other charitable purposes. 13 Debtors
| Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income |
2024 £ 4,856 17,149 67,500 89,505 |
2023 £ - 491,809 - |
|---|---|---|
| 491,809 |
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14 Creditors: amounts falling due within one year
| Payments received on account Trade creditors Other creditors Accruals and deferred income |
2024 as £ - 35,660 1,020,950 3,840 1,060,450 |
2023 restated £ 564 14,099 250,100 2,880 |
|---|---|---|
| 267,643 |
Other creditors includes £192,450 (2023: £50,000) due to companies of which one of the directors is also a trustee of this charity.
15 Related party transactions
During the year the charity received donations of £136,250 from charites and companies of which one of the trustees or their close family members were also a trustee / director, and received £38,300 from one of the trustees.
In addition the charity made grants of £38,000 during the year to a charity where close family members of one of the trustees are trustees.
Besides the above and the disclosure in note 14 above there were no disclosable related party transactions during the year.
| 16 Cash generated from operations Surplus 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/(absorbed by) operations |
2024 £ 1,166,168 (32,912) 4,537 402,304 792,807 2,332,904 |
2023 £ 141,244 (29,670) 378 (491,809) 246,366 |
|---|---|---|
| (133,491) |
17 Prior period adjustment
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MOSDOS HATORAH PNEI MENACHEM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024
| 17 | Prior period adjustment | (Continued) | ||
|---|---|---|---|---|
| Changes to the balance sheet | ||||
| At 31 | January 2023 | |||
| As previously | Adjustment | As restated | ||
| reported | ||||
| £ | £ | £ | ||
| Creditors due within one year | ||||
| Other creditors | (67,643) | (200,000) | (267,643) | |
| Capital funds | ||||
| Income funds | ||||
| Unrestricted funds | 509,721 | (200,000) | 309,721 | |
| Total equity | 509,721 | (200,000) | 309,721 | |
| Changes to the profit and loss account | ||||
| Period ended 31 January | 2023 | |||
| As previously | Adjustment | As restated | ||
| reported | ||||
| £ | £ | £ | ||
| Donations and legacies | 1,228,947 | (200,000) | 1,028,947 | |
| Net movement in funds | 341,244 | (200,000) | 141,244 |
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