**Charity registration number 215398**
**BRITISH EMUNAH FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **BRITISH EMUNAH FUND**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs. R Selby, Chair of Trustees|
|---|---|
||Mrs. M. Hirschfield|
||Lady E Sacks|
||Mr. L Markham|
||Mr. L Shelley|
|**Charity number**|215398|
|**Principal address**|7 4 Grove Park|
||London|
||NW90DD|
|**Honorary Life President**|Lady E. Sacks|
|**Honorary President**|Mrs. V. Mirvis|
|**Auditor**|Landau Morley LLP|
||325-327 Oldfield Lane North|
||Greenford|
||Middlesex|
||UB6 0FX|
|**Bankers**|Barclays Bank Pie|
||126 Station Road|
||Edgware|
||Middlesex|
||HAS ?RY|
## **BRITISH EMUNAH FUND**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Statement of trustees' responsibilities|6|
|Independent auditor's report|7-9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 26|
## **BRITISH EMUNAH FUND**
## **TRUSTEES'REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Trustees present their report and financial statements for the year ended 31 December 2021.
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 Constitution, the Charities Act 2011 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 1 02) (effective 1 January 2019)".
## **Objectives and activities**
The objects of the charity, as detailed in the Trust Deed, are:
- To promote, encourage and provide for and generally to organise secular and religious education in Israel in accordance with Jewish law and tradition, for those who are in need of resettlement, and to provide the necessary facilities and equipment to achieve these aims.
- To create a better everyday life and future for Israel's most vulnerable and at-risk children and families.
- To create a safe and loving environment for the children in Emunah's residential homes, high schools and day care centres.
- To enable the disadvantaged across all generations to flourish and grow by providing support, trauma therapy, education, and training in our community and therapy centres.
Our aim is to enhance and enrich the lives of those in our care and provide them with the tools to break the cycle of neglect, abuse and violence they may have experienced and help them realise their full potential and become well balanced, independent contributing members of society.
The Trust operates through a Head Office and groups throughout the United Kingdom. Funds are raised through membership, activities and appeals.
The organisation contributes to the upkeep, maintenance, and in some cases running costs of its projects in Israel.
The provision of therapeutic support is increasingly important for the well-being of the children under its care as well as the provision of the more basic needs such as hot meals provided to children in High Schools who would not otherwise be able to afford to eat.
## **Public benefit**
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.
The charitable purposes of British Emunah Fund are the advancement of education, the relief of poverty and the relief of those in need by reason of youth, financial hardship or other disadvantages.
All of the activities that are undertaken by British Emunah Fund are for the advancement of these charitable purposes and are outlined above.
## **Volunteers**
The charity is extremely fortunate to have many dedicated and hard-working volunteers, without whom the charity would not be able to carry out its many and varied activities. Some fundraising activities are led by volunteers, who in many cases plan, prepare and are actually involved in their implementation. It is impossible to attribute a true economic value to this unpaid voluntary contribution .
. 1 -
## **BRITISH EMUNAH FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Achievements and performance**
The charity's fundraising work in 2021 once again continued in the tradition of the wonderful women who began the charity 88 years ago. Recognising the vital needs of vulnerable children, a group of remarkable women decided that actions must speak louder than words. They showed their support for children whose lives had been devastated by the Holocaust in the most practical way - raising money and providing the basics - clothes, food, love and a safe place to live - with a dedication and passion that allowed them to achieve great things.
In the following decades, more incredible women - and men, have supported the cause and have responded to the changing needs of the Jewish State. Whenever Israel has faced war, terror attacks, waves of mass immigration and all manner of social welfare issues, British Emunah has been there to provide much needed support for disadvantaged children and families.
The wonderful Emunah Groups around the country have raised millions over the years and have been able to improve the lives of thousands of children. The Fund's generous donors and supporters have played their vital role too and thousands of young lives have been transformed as a result.
The charity helps to provide care to more than 10,000 at-risk and vulnerable children and families in Emunah day care centres, residential centres, high schools and Crisis & Intervention Centres in Israel - breaking a cycle of mental, physical, sexual and emotional abuse that these children and families have experienced, through no fault of their own.
Still battling the impact of Coronavirus, children and families in Israel have been facing an even greater crisis as a consequence of increasing missile attacks. They have not known 'normal' life for a long time, and many who have come to rely on services provided by Emunah have come from places of neglect, abuse and trauma, never knowing what most of us would consider to be 'normal'. In May/June 2021 the Emunah centres saw an increase in demand as a result of the attacks on both Southern and Central Israel.
Emergency support hotlines are provided and many of Emunah's dedicated staff are making themselves available directly to those in need - providing emotional and psychological[g] uidance as well as suggesting ideas for keeping children and family members calm and distracted whilst they are stuck in the shelters.
They remain vigilant and on-call throu[g] hout a number of centres, including centres in Afula and Sderot, relying on urgent and generous financial assistance to help those who are vulnerable.
The Beil Rothschild building is the oldest building on the Afula campus[(] over seventy[y] ears old[)] . The Centre opened its doors in 1949 and became British Emunah's first ma[j] or fund raising pro[j] ect under the chairmanship of Ruth Sacks. It has been home to thousands of children over the years with many more attending daily. The charity has received pledges for the 1st floor refurbishment of this building, with works having started in 2021. The works were completed in early 2022.
During 2021, additional appeals were made for a ma[j] or refurbishment[p] ro[j] ect at the Neve Land[y ] Children's Centre in Even Shmuel. 5 dormitories were refurbished and the outside space was redone due to water damage. In 2022, a ma[j] or refurbishment of the kitchen in Neve Landy will become necessary as the facilities are no longer fit for their purpose.
The Sarah Ronson Crisis Intervention Centre in Sderot continues to[p] rovide a vital resource for people across southern Israel who have been affected by rocket attacks in the area, many of whom are suffering from Post Traumatic Stress Disorder. Discussions are underway in respect of the expansion of this service. The new site has now been completed and was opened in March 2021.
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## **BRITISH EMUNAH FUND**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
British Emunah's Food Fund aims to provide a daily meal for every child at Emunah's special schools and to provide food parcels for children to take home to their families. British Emunah provides food for the girls in two High Schools and for the 90 children who come to Sarah Herzog Children's Centre in Afula for its after-school care programme.
Because of Coronavirus restrictions, the charity's annual dinner did not take place in 2021.
A Fundraising Campaign, under the banner "Invisible but not Unseen", was arranged instead of the annual dinner - taking place on 31st October and 1st November 2021. This Campaign was conducted in memory of the late Chief Rabbi - Lord Jonathan Sacks. Messages were delivered during this Campaign from Lord Jonathan Sacks' widow, Lady Elaine Sacks, from Chief Rabbi Ephraim Mirvis, and from HE Tzipi Hotovely (the Israeli Ambassador for the United Kingdom). The Campaign was backed by many supporters, including Dame Maureen Lipman. This Fundraising Campaign raised substantial funds.
The Fund's on-line eBay shop, where donated goods can be sold throughout the world, has continued to operate successfully. This volunteer-led initiative generates significant proceeds, with volunteers helping with on-line listings, packaging and sourcing goods. The general climate of political uncertainty around Brexit has, however, had an effect on eBay sales and donations.
Income from groups continues to be an important source of funds with many dedicated members working hard to organise events across the country. The income from these groups is, however, declining on a year-on-year basis as the group members age and become less active and the nature of women's working patterns means that there are fewer women who have free time to volunteer in the way they did in the past. The charity recognises this and is working hard to find alternative income sources with more events being planned and run by Head Office.
The Charity's strategy for raising the required funds is:
1. Major fund raising functions
2. Contributions from groups, by way of their fund raising
3. Appeals at both Passover and New Year
4. Sundry smaller fundraising events
5. Legacies and Major Donor campaigns
6. The use of reserves set aside for the purpose
## **Financial review**
The results for the year show that there were net outgoing resources of £74,031 (2020: net incoming resources of £544,413). The total incoming resources for the year were £1,154,210 (2020: £1,382,775).
## **Going Concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future.
The Trustees have, however, recognised that COVID 19 has had a significant impact on the activities of the charity.
The Trustees are committed to supporting the charity and will continue to evaluate the situation on an ongoing basis and to develop plans for the charity to manage the financial impact going forward.
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## **BRITISH EMUNAH FUND**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Reserves Policy**
The Charity has an ongoing aspiration to contribute approximately £500,000 per annum towards its projects before any additional capital expenditure.
It is therefore considered prudent in the current, particularly difficult, financial times to maintain 6 months' costs in a readily realisable form to be able to honour its obligations.
At 31st December 2021, the unrestricted reserves amounted to £905,729 (2020: £725,595) and the restricted reserves amounted to £124,344 (2020: £378,509).
## **Plans for future periods**
The Charity's plan for future periods is to maintain its commitment to its projects to the existing high standards and to supplement the many therapies that are vital to the rehabilitation of the abused and disadvantaged children in its care.
## **Structure, governance and management**
The Trust Fund is governed by a Trust Deed dated 26th July 1950, amended and updated by resolution dated 19th June 2013, and the Charities Act 1993.
The charity's name was amended to British Emunah Fund and the change has been approved by the Charities Commission.
A full-time Director was appointed in 2019. The day to day running of the office is her main responsibility as well as providing professional input into the charity's fundraising activities and strategic development. The Director works closely with the Chairman and the Core Group (a sub-committee of the Executive), meeting on a weekly basis.
The full Executive meets quarterly and any recommendations regarding new capital projects or changes to existing projects are made to the Trustees for approval. Where possible, sub-committees are formed to organise fundraising activities and these committees report to the Chairman.
The Trustees who served during the year and up to the date of signature of the financial statements were: Mrs. R Selby, Chair of Trustees
Mrs. M. Hirschfield
Lady E Sacks Mr. L Markham Mr. L Shelley
In November 2020 the charity moved to a new office at 74 Grove Park (London NW9).
## **Appointment of Trustees, Induction and Training**
New trustees are invited at the suggestion of existing trustees and are inducted and trained so that they fully understand the aims, objectives and the workings of the charity.
## **Risk Policy**
Risks are classified under headings such as financial, premises, staffing and reputation. Risk assessments are carried out in order to ascertain the likelihood of a risk event occurring, of its potential impact, and whether any cost-effective mitigating action may be taken. The major risks relating to these have been identified by the executive and trustees relying on professional advice where appropriate and they are reviewed on a regular basis. The organisation has in place adequate systems accompanied by proper insurance cover which are considered adequate to mitigate major risks.
-4-
## **BRITISH EMUNAH FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees' report was approved by the Trustees and signed on their behalf by: . � ............. ?:-.;;.? Mrs. R Selby, Chair ofTrustees **Trustee** Date: .. _9._ _**.** .P.J:t.:-: .. 7.:-: ?.-.P.?): ..._
-5-
## **BRITISH EMUNAH FUND**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Trustees 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).
The law applicable to charities in England and Wales 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 of the Charity for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities 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; and
- 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 sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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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## **BRITISH EMUNAH FUND**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF BRITISH EMUNAH FUND**
## **Opinion**
We have audited the financial statements of British Emunah Fund (the 'Charity') for the year ended 31 December 2021 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 1 02 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
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## **BRITISH EMUNAH FUND**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH EMUNAH FUND**
## **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:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the statement of trustees' responsibilities, the Trustees 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 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.
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.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the directors.
The extent to which our procedures can detect irregularities, including fraud, is detailed below.
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards).
- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
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## **BRITISH EMUNAH FUND**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH EMUNAH FUND**
- Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of non compliance.
- We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
- We performed analytical procedures to identify any unusual or unexpected relationships.
- We examined supporting documents for all material balances, transactions and disclosures.
- We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions
- We reviewed the minutes of meetings held by the Board of Trustees
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.
## **Use of our report**
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 auditors' 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.
**Landau Morley LLP 28 July 2022**
**Chartered Accountants Statutory Auditor** 325-327 Oldfield Lane North Green ford Middlesex UB6 0FX
Landau Morley **LLP** 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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## **BRITISH EMUNAH FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
£
£
**la��UD! fc2m;**
Donations and legacies
**3**
231,018
430,881
Charitable activities
**4**
487,480
4,380
Investments
**5**
451
**Total income**
718,949
435,261
**!i1:enditur§ ga;**
Raising funds
**6**
21,334
Charitable activities
**7**
312,121
894,786
**Total expenditure**
333,455
894,786
**Net incoming/(outgoing)**
**resources before transfers**
385,494
(459,525)
Gross transfers
between funds
(205,360)
205,360
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
180,134
(254,165)
Fund balances at**1**January
2021
725,595
378,509
**Fund balances at 31**
**December 2021**
905,729
124,344|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
661,899
543,424
510,212
491,860
233,775
94,778
451
586
1,154,210
777,785
604,990
21,334
93,581
6,169
1,206,907
497,603
241,009
1,228,241
591,184
247,178
(74,031)
186,601
357,812
110,021
(110,021)
(74,031)
296,622
247,791
1,104,104
428,973
130,718
1,030,073
725,595
378,509|**Total**
**2020**
£
1,053,636
328,553
586
1,382,775
99,750
738,612
838,362
544,413
544,413
559,691
1,104,104|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **BRITISH EMUNAH FUND**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**2021**
**Notes**
**£**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Debtors
**15**
56,719
Cash at bank and in hand
974,715
1,031,434
**Creditors: amounts falling due within**
**one year**
**16**
(21,468)
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**17**
Unrestricted funds|
**£**
20,106
1
20,107
1,009,966
1,030,073
124,344
905,729
1,030,073
**2020**
**£**
161,862
983,225
1,145,087
(66,690)|
**£**
25,706
1
25,707
1,078,397|
|---|---|---|
|||1,104,104|
|||378,509
725,595
1,104,104|
The financial statements were approved by the Trustees on ........................ . ....... &2 .. �!t.½· Mrs. R Selby, Chair of Trustees **Trustee**
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## **BRITISH EMUNAH FUND**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|||**2021**||**2020**||
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Cash flows from operating activities**||||||
|Cash (absorbed by)/generated from|**21**|||||
|operations|||(8,961)||524,053|
|**Investing activities**||||||
|Purchase of tangible fixed assets||||(16,927)||
|Investment income received||451||586||
|**Net cash generated from/(used in)**||||||
|**investing activities**|||451||(16,341)|
|**Net cash used**in**financing activities**||||||
|**Net (decrease)/increase in cash and cash**||||||
|**equivalents**|||(8,510)||507,712|
|Cash and cash equivalents at beginning of year|||983,225||475,513|
|**Cash and cash equivalents at end of year**|||974,715||983,225|
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## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
British Emunah Fund is governed by a Trust Deed dated 26th July 1950, amended and updated by resolution dated 19th June 2013, and the Charities Act 2011. The charity's name was amended to British Emunah Fund and the change has been approved by the Charities Commission.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Charity's Constitution, the Charities Act 2011 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)". The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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, modified to include certain financial instruments at fair value. 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 support the current level of expenditure and to continue in operational existence for the foreseeable future.
The Trustees have, however, recognised that, due to the impact of COVID 19, there has been a significant impact on the activities of the charity.
The Trustees are committed to supporting the charity and will continue to evaluate the situation on an ongoing basis and to develop plans for the charity to manage the financial impact going forward.
## **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.
## **1.4 Income**
Income is recognised when the Charity is legally entitled to it after any performance conditions have been rnet, 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.
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## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
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.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and deprecation charges allocated on the portion of the asset's use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
- 14 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Short-term leasehold property Over the period of the lease Office equipment 10% on written down value Computer equipment 25% straight line Database No depreciation
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 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the Charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its 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 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.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash at bank balances.
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
- 15 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## 1 **Accounting policies**
## **(Continued)**
## _**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.
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.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.13 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.
## **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.
- 16 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
Donations and gifts
101,587
430,881
Legacies receivable
118,465
Government grant
Subscriptions
7,273
Other
3,693
231,018
430,881
**Charitable activities**
Appeals and fundraising
Ebay shop income
Analysis by fund
Unrestricted funds
Restricted funds|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
532,468
155,251
510,212
118,465
346,792
7,977
7,273
10,283
3,693
23,121
661,899
543,424
510,212
**2021**
437,153
54,707
491,860
487,480
4,380
491,860|Total
2020
£
665,463
346,792
7,977
10,283
23,121
1,053,636
2020
£
285,982
42,571
328,553
233,775
94,778
328,553|
|---|---|---|
## **4 Charitable activities**
## **5 Investments**
||**Unrestricted**|Un restricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
|||£|
|Interest receivable|451|586|
- 17 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **6 Raising funds**
|**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
£
Fundr.§i□g sDQ �ybligit�
Dinner
24
27,740
General appeals and events
21,310
65,841
Fundraising and publicity
21,334
93,581
21,334
93,581|Restricted
funds
2020
£
6,169
6,169
6,169|Ttal
2020
£
27,740
72,010
99,750
99,750|
|---|---|---|
Included in General appeals and events are salary costs of £NIL (2020: £10,700).
## **Charitable activities**
|Printing, postage and stationery
Ebay shop expenses
Diaries and magazines
Adverising and publicity
Grant funding of activities (see note 8)
Share of support costs (see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2021**
**£**
2,725
38,753
19,976
61,454
911,188
234,265
1,206,907
312,121
894,786
1,206,907|**2020**
**£**
3,169
32,478
10,161
18,827
64,635
384,953
289,024
738,612
497,603
241,009
738,612|
|---|---|---|
Included in Ebay shop expenses are salary costs of £23,700 (2020: £24,067) and rent payments of £2,772 (2020: £2,317).
## **8 Grants payable**
**2021 2020** £
Grants to institutions: Other
911,188
384,953
- 18 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
- **8 Grants payable (Continued)**
In the year, of the total grants paid, £377,078 (2020: £143,944) related to unrestricted funds and £534, 11 0 (2020: £241,009) related to restricted funds.
For grant funding activities see attached appendix.
- 19 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **9 Support costs**
|**Support costs**|||||||
|---|---|---|---|---|---|---|
||**Suppor**|**Governance**|**2021**|Suppor|Goverance|2020|
||**costs**|
**costs**||costs|costs||
||**£**|
**£**|£|£|£|£|
|Staf costs|101,751||101,751|99,740|-|99,740|
|Depreciation|5,600|
-|5,600|5,743|-|5,743|
|Accountancy and bookkeeping fees|28,163||28,163|30,294|-|30,294|
|Rent, rates and service charges|19,664|
-|19,664|27,987|-|27,987|
|Light and heat|2,517|
-|2,517|2,140|-|2,140|
|Telephone|3,562||3,562|4,080|-|4,080|
|Database, computer maintenance and website cost
Ofice stationery|47,189
787|
-
-|47,189
787|19,870
1,245|-|19,870
1,245|
|Insurance|2,650|
-|2,650|2,415|-|2,415|
|Bank charges
Travel and enteraining|2,120
64|-
-|2,120
64|2,985
508||2,985
508|
|Cleaning, repairs and renewals|4,362|-|4,362|1,744||1,744|
|Staff welfare, training and other|1,480|-|1,480|2,395|-|2,395|
|Consultancy
Moving ofice|7,013
-|-|7,013
-|26,640
53,470||26,640
53,470|
|Audit fees|-|7,342|7,342||7,768|7,768|
||---|||||--|
||226,922|7,342|234,264|281,256|7,768|289,024|
|||||||--|
|Analysed between|||||||
|Charitable activities|226,922|7,342|234,265|281,256|7,768|289,024|
Governance costs includes payments to the auditors of £7,342 (2020: £7,768) for audit fees.
- 20 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**10**|**Net movement in funds**|**2021**|**2020**|
|---|---|---|---|
|||**£**|£|
||Net movement in funds is stated afer charging/(crediting)|||
||Depreciation of owned tangible fixed assets|5,600|5,743|
## **11 Trustees**
None of the Trustees ( or any persons connected with them) received any remuneration or benefits from the Charity during the year.
## **12 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
other pension costs|**2021**
**Number**
5
**2021**
£
116,847
6,604
1,554
123,807
**2020**
**Number**
5
**2020**
£
147,670
5,908
1,052
154,630|
|---|---|
No employee received remuneration amounting to more than £60,000 during the year. Included in wages and salaries are redundancy payments of £12,000.
The key management personnel of the Fund comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the company were £40,000 (2020: £41,706).
- 21 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**13**
**Tangible fixed assets**
**Short-term**
**Ofice**
**Computer**
**leasehold**
**equipment**
**equipment**
**property**
**£**
**£**
**£**
**Cost**
At 1 January 2021
24,575
72,204
41,334
At 31 December 2021
24,575
72,204
41,334
**Depreciation and impairment**
At 1 January 2021
24,575
59,361
28,471
Depreciation charged in the year
1,284
4,316
At 31 December 2021
24,575
60,645
32,787
**Carrying amount**
At 31 December 2021
11,559
8,547
At 31 December 2020
12,843
12,863
**14**
**Fixed asset investments**
Cost or valuation
At 1 January 2021 & 31 December 2021
**Carrying amount**
At 31 December 2021
At 31 December 2020
Other investments comprise:
**Notes**
Investments in subsidiaries|**Database**
**Total**
**£**
**£**
18,356
156,469
18,356
156,469
18,356
130,763
5,600
18,356
136,363
20,106
25,706
**Other**
**investments**
**2021**
**2020**
**£**
**£**
1|
|---|---|
The fixed asset investment is held in the U.K. - comprising the entire issued share capital, of 1 ordinary share of £1, of Jewish Princess Limited (a dormant company).
**- 22 -**
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**15**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**16**
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income
**2021**
**£**
35,594
21,125
56,719
**2021**
**£**
2,300
(40)
19,208
21,468|**2020**
**£**
50,722
111,140|
|---|---|
||161,862
**2020**
**£**
2,278
297
64,115|
||66,690|
- 23 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **17 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|
||**Balance at**
**1 Januar 2020**|**Incoming**
**resources**|**Resources**
**expended**|**Transfer**
**1**|**Balance at**
**January 2021**|**Incoming**
**resources**|**Resources**
**Balance at**
**expended 31 December**||
|||||||||**2021**|
||£|£|£|£|£|£|£|£|
|Restricted Funds|130,718|604,990|(247,178)|(110,021)|
378,509|438,055|(534,314)|282,250|
|**_DI_**
**_CE T ANALYSE_**|||||-|||(157,906)|
The restricted funds have been established to provide for the upkeep, maintenance and running costs of the charity's projects in Israel.
- 24-
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**Restricted**
**Total**Unrestricted
**funds**
**funds**
funds
**2021**
**2021**
**2021**
2020
**£**
**£**
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
20,106
20,106
25,706
Investments
1
**1**
1
Current assets/
(liabilities)
727,716
282,250
1,009,966
699,888
747,823
282,250
1,030,073
725,595|Restricted
Total
funds
2020
2020
£
£
25,706
1
378,509
1,078,397
378,509
1,104,104|
|---|---|
- 25 -
## **BRITISH EMUNAH FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **19 Operating lease commitments**
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years
In over five years|**2021**
**2020**
£
£
12,500
50,000
87,500
150,000
24,710
86,790
111,500|
|---|---|
## **20 Related party transactions**
The total sum donated to the charity by the Trustees and their connected charities was £8,472 (2020: £22,729).
|**21**
**Cash generated from operations**
(Deficit)/surpus 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
(Decrease) in creditors
**Cash (absorbed by)/generated from operations**
**22**
**Analysis of changes in net funds**
The Charity had no debt during the year.
**2021**
(74,031)
(451)
5,600
105,143
(45,222)
(8,961)|**2020**
**£**
544,413
(586)
5,743
(12,537)
(12,980)
524,053|
|---|---|
- 26 -
BRITISH EMUNAH FUND Grant Funding Activities for the year ended 31 December 2021
|**Direct Charitable Expenditure**
Israel Emunah
World Emunah
Projects
Refurbishment
Sundry and contra payments
Annual contribution
Sundry contribution
Belt Lady Brodie, Neve Shaanan, Haifa
Refurbishment
Neve Landy Children's VIiiage, Even Shmuel
Refurbishment
Furniture, equipment and computer
Counselling
Barmltzvah present
Sundry contributions
Sarah Herzog Chlldren's Centre, Afula
Food fund
Refurbishment at Bell Rothschild
Neche Sara Wolfson Vocational High School, Bnei Brak
Sundry contributions
Food fund
Rose WIiner � Netanya
Refurbishment
Belt Bondt, Netlvot
Beit Bondi counselling
Naharlya Counselling Centre
Sundry contribution
Belt Weinstein with the Doris and Bertie Black Vocational
Training School with the Samuel Silverman Community
Centre Bnei Brak
Sundry Contribution - Weinstein School - Bnei Brak
Furniture and Computer Equipment
Food fund
Beith Elazraki
Contra pay
Sderot family counselling
Tefillin Fund
Akko Sharet
Counselling and therapy expenses
Refurbishment
Sundry contributions
Sundry contributions
Refurbishment|2021
91,145
16,002
400
250
185,211
5,500
2,000
17,000
20,000
217,367
2,603
40,000
1,822
26,433
8,500
40,000
51,840
34,821
119,685
15,026
10,972
4,611
911,188
**£**
2020
2,552
25,149
15,783
277
64,735
8,835
754
6,650
28,729
230
25,637
45,695
18,710
500
6,125
3,014
25,875
2,267
99,802
1,650
1,984
384,953|
|---|---|
-27 -