CHARITY REGISTRATION NUMBER: 1194290
FRIENDS OF KH
TRUSTEES' REPORT AND UNAUDITED ACCOUNTS
30 SEPTEMBER 2023
FRIENDS OF KH
FRIENDS OF KH CHARITABLE TRUST FINANCIAL STATEMENTS 30 SEPTEMBER 2023
| Pages | |
|---|---|
| Trustees' Annual Report | 2 |
| Independent Examiners Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Accounts | 7 |
Page 1
FRIENDS OF KH TRUSTEES ANNUAL REPORT
The trustees present their report with the unaudited financial statements of the charity for the year ended 30 September 2023.
REFERENCE AND ADMINISTRATIVE DETAILS
Charity No. 1194290
Principal and Registered Office
First Floor, Winston House 349 Regents Park Road London N3 1DH
Trustees
The following trustees served during the year:
Chagai Kahn Oscar Low Richard Kaufman
Accountants
Hirsh Accountants Limited 45 Stamford Hill London N16 5SR
OBJECTIVES AND ACTIVITIES
The charity's objectives are to advance the Jewish religion and in particular observance of the Law of Shmita including by supporting the exclusively charitable work of Keren Hashviis.
The trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the charity's aims and objectives in planning future events.
ACHIEVEMENTS AND PERFORMANCE
The charity employs its funds and resources for grants in support of Keren Hashviis.
During the year the charity made grants totalling £200,195 (2022: £1,807,000)
The financial results for the period to 30 September 2023 are fully reflected in the attached Financial Statements and the Notes thereon.
FINANCIAL REVIEW
Reserves Policy
The charity's policy is to maintain Unrestricted funds at a level which the trustees deem appropriate after considering future commitments and the likely costs for the next year.
As at 30 September 2023 the charity had Unrestricted Funds of £83,963 (2022: £59,226).
Grant Making Policy
The charity makes grants Keren Hashviis, to further their exclusively charitable work in the furtherance of the observance of Shmita, a Biblically ordained, agricultural Sabbatical Year in Israel occurring once in seven years, and in support of the farmers whose livelihood is affected by pausing their production and business for this period.
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FRIENDS OF KH TRUSTEES ANNUAL REPORT
In making these grants the trustees use their personal knowledge and experience of philanthropic work and their understanding of Shmita and the needs of those farmers observing it. The trustees monitor the application of funds by maintaining regular correspondence with the recipient charity and its ultimate beneficiaries, including detailed breakdowns of how the funds are being used and distributed.
PRINCIPAL RISKS AND UNCERTAINTIES
Risk Management
The Trustees have identified and reviewed the major risks to which the charity is exposed, in particular operational and financial risks and are satisfied that appropriate systems are in place to manage and mitigate these risks.
PLANS FOR FUTURE PERIODS
The charity plans to continue its grant making activities in support of Keren Hashviis and Shmita observance. Due to the cylical nature of Shmita, it is expected that the charity's activities will be less significant in the ensuing years of the Shmita cycle. The next Shmita year fall sin 2028-2029 with preparations commencing some months prior.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is a registered charity (charity number 1194290) and is governed by a CIO Foundation Constitution dated 29 April 2021.
The trustees administer the day-to-day affairs of the charity. None of the Trustees have beneficial interest in the charity.
New trustees are appointed based on personal competence, specialist skill, knowledge and availablility.
STATEMENT OF COMPLAINCE
The charity is a public benefit entity, a registered charity in England and Wales and is unincorporated. The address of the principal office is First Floor, Winston House, 349 Regents Park Road, London, N3 1DH.
Statement of trustees' responsibilities in relation to the financial statements
The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the charity's trustees
Richard Kaufman Trustee 29 February 2024
Page 3
FRIENDS OF KH INDEPENDENT EXAMINERS REPORT
Independent Examiner's Report to the trustees of FRIENDS OF KH
I report to the trustees on my examination of the financial statements of FRIENDS OF KH for the year ended 30 September 2023 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.
Responsibilities and basis of report
As the charity's trustees you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011('the Act'). The trustees consider that an audit is not required for this year under the Charities Act 2011, s.144(2) (the 2011 Act) and that an independent examination is needed.
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
As 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 by being a qualified member of ICAEW.
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in, any material respect:
-
[the accounting records were not kept in respect of the charity as required by section 130 of the Act; or]
-
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of the financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Moshe Hirsh FCCA Hirsh Accountants limited 45 Stamford Hill
London N16 5SR 29 February 2024
Page 4
FRIENDS OF KH STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| FOR THE YEAR ENDED 30 SEPTEMBER 2023 | |||
|---|---|---|---|
| Notes Income and endowments from: Donations and legacies 2 Other 3 Total Expenditure on: Raising funds 4 Charitable activities 5 Other 7 Total Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Total funds | Total funds | |
| 2023 | 2022 | ||
| £ | £ | ||
| 269,331 | 2,103,579 | ||
| 41 | - | ||
| 269,372 | 2,103,579 | ||
| 6,976 | 267,622 | ||
| 201,695 | 1,811,100 | ||
| 1,475 | 120 | ||
| 210,146 | 2,078,842 | ||
| 59,226 | 24,737 | ||
| 24,737 | - | ||
| 83,963 | 24,737 |
Page 5
FRIENDS OF KH BALANCE SHEET
AS AT 30 SEPTEMBER 2023
| Charity No. 1194290 Current assets Cash at bank and in hand Creditors:Amount falling due within one year 10 Net current assets Total assets less current liabilities Net assets excluding pension asset or liability Total net assets The funds of the charity Unrestricted funds General funds 11 Total funds Approved by the trustees on 29 February 2024 |
2023 £ 85,463 85,463 (1,500) 83,963 83,963 83,963 83,963 83,963 83,963 |
2022 £ 28,837 |
|---|---|---|
| 28,837 (4,100) |
||
| 24,737 24,737 |
||
| 24,737 | ||
| 24,737 | ||
| 24,737 | ||
| 24,737 | ||
And signed on their behalf by:
Richard Kaufman Trustee 29 February 2024
Page 6
FRIENDS OF KH NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
| Fund accounting | |
|---|---|
| Unrestricted funds | These are available for use at the discretion of the trustees in furtherance of the general |
| objects of the charity. | |
| Designated funds | These are unrestricted funds earmarked by the trustees for particular purposes. |
| Revaluation funds | These are unrestricted funds which include a revaluation reserve representing the |
| restatement of investment assets at their market values. | |
| Restricted funds | These are available for use subject to restrictions imposed by the donor or through terms of |
| an appeal. | |
| Income | |
| Recognition of income | Income is included in the Statement of Financial Activities (SoFA) when the charity |
| becomes entitled to, and virtually certain to receive, the income and the amount of the | |
| income can be measured with sufficient reliability. | |
| Income with related | Where income has related expenditure the income and related expenditure is reported gross |
| expenditure | in the SoFA. |
| Donations and legacies | Voluntary income received by way of grants, donations and gifts is included in the the SoFA |
| when receivable and only when the Charity has unconditional entitlement to the income. | |
| Tax reclaims on | Income from tax reclaims is included in the SoFA at the same time as the gift/donation to |
| donations and gifts | which it relates. |
| Donated services and | These are only included in income (with an equivalent amount in expenditure) where the |
| facilities | benefit to the Charity is reasonably quantifiable, measurable and material. |
| Volunteer help | The value of any volunteer help received is not included in the accounts. |
| Investment income | This is included in the accounts when receivable. |
| Gains/(losses) on revaluation of fixed |
This includes any gain or loss resulting from revaluing investments to market value at the end of the year. |
| assets | |
| Gains/(losses) on | This includes any gain or loss on the sale of investments. |
| investment assets |
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FRIENDS OF KH NOTES TO THE ACCOUNTS
Expenditure
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates. Expenditure on raising These comprise the costs associated with attracting voluntary income, fundraising trading funds costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and services charitable activities in the furtherance of its objects, including the making of grants and governance costs. Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs. Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from tax on its charitable activities.
Tangible fixed assets and depreciation
Depreciation where relevant is provided in order to write off each asset over its estimated useful life.
Freehold investment property
Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.
Intangible fixed assets and amortisation
Intangible fixed assets (including purchased goodwill, patents and trademarks) are carried at cost less accumulated amortisation and impairment losses.
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Trade and other creditors
Short term creditors are measured at the transaction price. Other 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.
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are taken into account in arriving at net income/expenditure.
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FRIENDS OF KH NOTES TO THE ACCOUNTS
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
2 Income from donations and legacies
| Donations Received 3 Other income Exchange Gains 4 Expenditure on raising funds Costs of generating voluntary income Operating Costs 5 Expenditure on charitable activities Expenditure on charitable activities Grants made Governance costs |
Unrestricted £ 269,331 269,331 Unrestricted £ 41 41 |
Total 2023 £ 269,331 269,331 Total 2023 £ 41 41 |
Total 2022 £ 2,103,579 |
|---|---|---|---|
| 2,103,579 | |||
| Total 2022 £ - |
|||
| - | |||
| Unrestricted £ 6,976 6,976 Unrestricted Funds £ 200,195 1,500 201,695 |
Total 2023 £ 6,976 6,976 Total 2023 £ 200,195 1,500 201,695 |
Total 2022 £ 267,622 |
|
| 267,622 | |||
| Total 2022 £ 1,807,000 4,100 |
|||
| 1,811,100 |
Page 9
FRIENDS OF KH NOTES TO THE ACCOUNTS
- 6 Analysis of grants
| Activity or programme Grants to Keren Hashviis in Israel Other grants 7 Other expenditure Misc Expenditure General administrative costs 8 Net income before transfers This is stated after charging: Auditors' remuneration Independent Examiner's fee 9 Staff costs No employee received emoluments in excess of £60,000. 10 Creditors: amounts falling due within one year Accruals 11 Movement in funds At 1 October 2022 £ Restricted funds: Unrestricted funds: General funds 24,737 Total funds 24,737 |
Activity or programme Grants to Keren Hashviis in Israel Other grants 7 Other expenditure Misc Expenditure General administrative costs 8 Net income before transfers This is stated after charging: Auditors' remuneration Independent Examiner's fee 9 Staff costs No employee received emoluments in excess of £60,000. 10 Creditors: amounts falling due within one year Accruals 11 Movement in funds At 1 October 2022 £ Restricted funds: Unrestricted funds: General funds 24,737 Total funds 24,737 |
Grants to Institutions £ 200,000 195 200,195 Unrestricted £ 1,443 32 1,475 2023 £ - 1,500 2023 £ |
Total 2023 £ 200,000 195 200,195 Total 2023 £ 1,443 32 1,475 |
Total 2022 £ 1,807,000 - |
|---|---|---|---|---|
| 1,807,000 | ||||
| Total 2022 £ - 120 |
||||
| 120 | ||||
| 2022 £ 2,100 - 2022 £ |
||||
| 1,500 | 4,100 | |||
| At 1 October 2022 £ 24,737 24,737 |
1,500 Incoming resources (including other gains/losses) £ 269,372 269,372 |
Resources expended £ (210,146) (210,146) |
4,100 | |
| At 30 September 2023 £ 83,963 |
||||
| 83,963 |
Page 10
FRIENDS OF KH NOTES TO THE ACCOUNTS
12 Analysis of net assets between funds
Net current assets
| Unrestricted funds £ 83,963 83,963 |
Total £ 83,963 |
|---|---|
| 83,963 |
Page 11