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2022-12-31-accounts

Charity registration number 215398

BRITISH EMUNAH FUND

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

BRITISH EMUNAH FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs. R Selby, Chair of Trustees
Lady E Sacks
Mr A. Freedman (Appointed 1 August 2022)
Mr D. Hirschfield (Appointed 1 August 2022)
Charity number 215398
Principal address 74 Grove Park
London
NW9 0DD
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 PLC
126 Station Road
Edgware
Middlesex
HA8 7RY

BRITISH EMUNAH FUND

CONTENTS

Page
Trustees' report 1 - 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 2022

The Trustees present their report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's 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)".

Objectives and activities

The objects of the charity, as detailed in the Trust Deed, are:

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.

BRITISH EMUNAH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance

The charity’s fundraising work in 2022 continued in the tradition of the wonderful women who began the charity very nearly 90 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 10,000 at-risk and vulnerable children and families in Emunah day care centres, residential centres, high schools and Crisis & Intervention Centres in Israel’

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'.

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 guidance 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 throughout a number of centres, including centres in Afula and Sderot, relying on urgent and generous financial assistance to help those who are vulnerable.

The Beit Rothschild building is the oldest building on the Afula campus (seventy four years old). The Centre opened its doors in 1949 and became British Emunah’s first major fundraising project under the chairmanship of Ruth Sacks. It has been home to thousands of children over the years with many more attending daily. The charity received pledges for the 1st floor refurbishment of this building, with works having started in 2021, and completed in 2022.

In 2022, a major refurbishment of the kitchen in Neve Landy will become necessary as the facilities are no longer fit for their purpose. The Israel Welfare Ministry recently changed their rules and regulations in respect of health and safety – effectively condemning the existing kitchen in the Neve Landy Residential Centre (caring for 75 boys who are unable to remain in their homes). A new kitchen is, therefore, being developed to provide areas for the storage and preparation of food. The cost of this major product is expected to be over £310,000.

The Sarah Ronson Crisis Intervention Centre in Sderot continues to provide a vital resource for people across southern Israel who have been affected by rocket attacks in the area, many of whom are suffering from PostTraumatic Stress Disorder. Discussions are underway in respect of the expansion of this service.

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, there were no charity annual dinners in 2021 or in 2022.

BRITISH EMUNAH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Fundraising Campaigns, under the banner “Invisible but not Unseen”, were arranged instead of the annual dinners – with the 2022 campaign taking place on 21[st] September and 22[nd] September 2022. These Fundraising Campaigns have raised substantial funds – with British Emunah raising more than £240,000 from the 2022 Campaign in an online fundraising campaign.

Despite needing to run mid-week in order to avoid the High Holy Days, donations still flooded in from 1,000 people nationwide and abroad.

British Emunah’s director Sharon Dewinter said: “I want to say a huge thank you to all our supporters and donors, who worked tirelessly to help us raise as much as we possibly can to help fund projects that desperately need it”.

The funds will go towards a variety of projects to benefit the 10,000 at-risk and vulnerable women and children supported by Emunah in Israel. This includes providing essential therapies, the refurbishment of the kitchen at the Neve Landy residential centre and supporting the Emunah Food Fund, which makes sure every child who needs gets at least one hot meal a day.

Although the increases in the consumer price index in 2022 were alarming, the increases in food prices were staggering (increasing by more than 50%)!

Two of the high schools supported by British Emunah are attended by students who are predominantly from low socio-economic backgrounds, and with the significant increases in the costs of living in 2022, these schools are seeing many more students coming into school hungry.

In British Emunah’s Sarah Herzog Residential Centre in Afula, almost 100 children who are just one step away from being taken into full time care are cared for on a daily basis. They are picked up from their schools, brought to the Centre, and given a hot lunch – followed by assistance with homework, activities and, where needed, therapy – before showering, given a light supper, and taken home.

British Emunah’s aim is to create an improved everyday life and future for Israel’s most vulnerable and at-risk children and their families, and is committed to sending £100,000 a year to ensure that each child who needs it is given a hot meal – with extra provided for them to take home to their families.

By creating a safe and loving environment for highly vulnerable children and their families, British Emunah aims to break the cycle of neglect, abuse and violence that they may have experienced through no fault of their own, and, by doing so, to achieve the charity’s goal that every child that British Emunah helps will be able to realise their full potential – and to become well balanced, independent contributing members of society.

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 a direct effect on eBay sales and donations.

More than £12,000 was raised from competitors at the 2022 London Marathon, with additional funds generated from

other sponsored events.

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, with the changing nature of women’s working patterns meaning 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.

BRITISH EMUNAH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Charity's strategy for raising the required funds is:

  1. Major fundraising functions

  2. Contributions from groups, by way of their fundraising

  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 £91,859 (2021: net outgoing resources of £74,031).

The total incoming resources for the year were £755,214 (2021: £1,154,414).

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 continued to have 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.

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 2022, the free unrestricted reserves amounted to £890,893 (2021: £727,716).

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.

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.

BRITISH EMUNAH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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 (Resigned 4 August 2022) Lady E Sacks Mr. L Markham (Resigned 11 September 2022) Mr. L Shelley (Resigned 1 August 2022) Mr A. Freedman (Appointed 1 August 2022) Mr D. Hirschfield (Appointed 1 August 2022)

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.

BRITISH EMUNAH FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of trustees' responsibilities

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:

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.

The trustees' report was approved by the Trustees and signed on their behalf by:

Mrs. R Selby, Chair of Trustees

Trustee

10 August 2023

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 2022 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:

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:

BRITISH EMUNAH FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH EMUNAH FUND

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.

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.

BRITISH EMUNAH FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRITISH EMUNAH FUND

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 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.

Landau Morley LLP Chartered Accountants Statutory Auditor

10 August 2023 325-327 Oldfield Lane North Greenford 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.

BRITISH EMUNAH FUND

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and
legacies
3
88,645
173,377
Charitable activities
4
427,908
63,948
Investments
5
1,336
-
Total income
517,889
237,325
Expenditure on:
Raising funds
6
30,614
-
Charitable activities
7
279,856
536,603
Total expenditure
310,470
536,603
Net incoming/(outgoing)
resources before
transfers
207,419
(299,278)
Gross transfers
between funds
(206,946)
206,946
Net income/(expenditure)
for the year/
Net movement in funds
473
(92,332)
Fund balances at 1 January
2022
905,729
124,344
Fund balances at 31
December 2022
906,202
32,012		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
262,022
231,018
430,881
491,856
487,480
4,380
1,336
451
-
755,214
718,949
435,261
30,614
21,334
-
816,459
312,121
894,786
847,073
333,455
894,786
(91,859)
385,494
(459,525)
-
(205,360)
205,360
(91,859)
180,134
(254,165)
1,030,073
725,595
378,509
938,214
905,729
124,344		 Total
2021
£
661,899
491,860
451
1,154,210
21,334
1,206,907
1,228,241
(74,031)
-
(74,031)
1,104,104
1,030,073

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

BRITISH EMUNAH FUND

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
18
Unrestricted funds		 2022
£
£
14,634
1
14,635
41,631
925,411
967,042
(43,463)
923,579
938,214
32,012
906,202
938,214		 2021
£
£
20,106
1
20,107
56,719
974,715
1,031,434
(21,468)
1,009,966
1,030,073
124,344
905,729
1,030,073		 2021
£
£
20,106
1
20,107
56,719
974,715
1,031,434
(21,468)
1,009,966
1,030,073
124,344
905,729
1,030,073
20,107
1,009,966
1,030,073
124,344
905,729
1,030,073

The financial statements were approved by the Trustees on 10 August 2023

Mrs. R Selby, Chair of Trustees Trustee

BRITISH EMUNAH FUND

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash absorbed by operations
22
Investing activities
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
1,336		 £
(50,640)
1,336
-
(49,304)
974,715
925,411		 2021
£
451		 £
(8,961)
451
-
(8,510)
983,225
974,715

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 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 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.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

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.

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.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

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.

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.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

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.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
60,045
173,377
Legacies receivable
16,500
-
Subscriptions
9,429
-
Other
2,671
-
88,645
173,377		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
233,422
101,587
430,881
16,500
118,465
-
9,429
7,273
-
2,671
3,693
-
262,022
231,018
430,881		 Total
2021
£
532,468
118,465
7,273
3,693
661,899

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4
5
6		 Charitable activities
Appeals and fundraising
Ebay shop income
Analysis by fund
Unrestricted funds
Restricted funds
Investments
Interest receivable
Raising funds
Fundraising and publicity
Dinner
General appeals and events
Fundraising and publicity		 2022
2021
£
£
445,615
437,153
46,241
54,707
491,856
491,860
427,908
487,480
63,948
4,380
491,856
491,860
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
1,336
451
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
-
24
30,614
21,310
30,614
21,334
30,614
21,334		 2021
£
437,153
54,707
491,860
487,480
4,380
491,860
21,334
21,334

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Charitable activities

Printing, postage and stationery
Ebay shop expenses
Diaries and magazines
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds		 2022
£
1,835
36,738
20,032
58,605
553,745
204,109
816,459
279,856
536,603
816,459		 2021
£
2,725
38,753
19,976
61,454
911,188
234,265
1,206,907
312,121
894,786
1,206,907

Included in Ebay shop expenses are salary costs of £25,808 (2021: £23,700) and rent payments of £2,652 (2021: £2,772).

8 Grants payable

2022 2021
£ £
Grants to institutions:
Other 553,745 911,188

In the year, of the total grants paid, £224,088 (2021: £377,078) related to unrestricted funds and £329,657 (2021: £534,110) related to restricted funds.

For grant funding activities see attached appendix.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

9 Support costs

Staff costs
Depreciation
Accountancy and bookkeeping fees
Rent, rates and service charges
Light and heat
Telephone
Database, computer maintenance and website cost
Office stationery
Insurance
Bank charges
Travel and entertaining
Cleaning, repairs and renewals
Staff welfare, training and other
Consultancy
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
98,883
-
5,472
-
28,219
-
17,785
-
2,050
-
3,569
-
19,745
-
1,278
-
2,264
-
1,761
-
1,800
-
2,895
-
2,067
-
8,265
-
-
8,056
196,053
8,056
196,053
8,056		 2022
£
98,883
5,472
28,219
17,785
2,050
3,569
19,745
1,278
2,264
1,761
1,800
2,895
2,067
8,265
8,056
204,109
204,109		 Support
costs
Governance
costs
£
£
101,751
-
5,600
-
28,163
-
19,664
-
2,517
-
3,562
-
47,189
-
787
-
2,650
-
2,120
-
64
-
4,362
-
1,480
-
7,013
-
-
7,342
226,922
7,342
226,922
7,342		 2021
£
101,751
5,600
28,163
19,664
2,517
3,562
47,189
787
2,650
2,120
64
4,362
1,480
7,013
7,342
234,264
234,265

Governance costs include payments to the auditors of £8,056 (2021: £7,342) for audit fees. Support costs include payments to the auditors of £3,532 (2021: £3,503) for non audit fees.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10 Net movement in funds 2022 2021
£ £
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets 5,472 5,600

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		 2022
Number
4
2022
£
117,293
6,703
1,420
125,416		 2021
Number
5
2021
£
148,483
6,604
1,554
156,641

No employee received remuneration amounting to more than £60,000 during the year.

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 £52,501 (2021: £43,303).

13 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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

14
Tangible fixed assets
Short-term
leasehold
property
Office
equipment
Computer
equipment
£
£
£
Cost
At 1 January 2022
24,575
72,204
41,334
At 31 December 2022
24,575
72,204
41,334
Depreciation and impairment
At 1 January 2022
24,575
60,645
32,787
Depreciation charged in the year
-
1,156
4,316
At 31 December 2022
24,575
61,801
37,103
Carrying amount
At 31 December 2022
-
10,403
4,231
At 31 December 2021
-
11,559
8,547
15
Fixed asset investments
Cost or valuation
At 1 January 2022 & 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021
Other investments comprise:
Notes
Investments in subsidiaries		 Database
Total
£
£
18,356
156,469
18,356
156,469
18,356
136,363
-
5,472
18,356
141,835
-
14,634
-
20,106
Other
investments
1
1
1
2022
2021
£
£
1
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), incorporated in England & Wales, company registration number 05475592 with its registered office address at its parents principal place of business.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

16
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2022
£
32,686
8,945
41,631
2022
£
3,107
40,356
43,463		 2021
£
35,594
21,125
56,719
2021
£
2,300
19,168
21,468

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 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 Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 January 2021 resources expended 1 January 2022 resources expended 31 December
2022
£ £ £ £ £ £ £ £ £
Restricted Funds 378,509 435,261 (894,786) 205,360 124,344 237,325 (536,603) 206,946 32,012

The restricted funds have been established to provide for the upkeep, maintenance and running costs of the charity's projects in Israel.

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
14,634
-
Investments
1
-
Current assets/(liabilities)
890,893
32,686
905,528
32,686		 Total Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
14,634
20,106
-
1
1
-
923,579
727,716
282,250
938,214
747,823
282,250		 Total
2021
£
20,106
1
1,009,966
1,030,073

BRITISH EMUNAH FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 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		 2022
£
15,000
45,000
75,000
135,000		 2021
£
12,500
50,000
87,500
150,000

21 Related party transactions

The total sum donated to the charity by the Trustees and their connected charities was £5.449 (2021: £8,472).

22 Cash generated from operations

Cash generated from operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase/(decrease) in creditors
Cash absorbed by operations		 2022
£
(91,859)
(1,336)
5,472
15,088
21,995
(50,640)		 2021
£
(74,031)
(451)
5,600
105,143
(45,222)
(8,961)

23 Analysis of changes in net funds

The Charity had no debt during the year.

BRITISH EMUNAH FUND Grant Funding Activities for the year ended 31 December 2022

Appendix

----- Start of picture text -----
2022 2021
Direct Charitable Expenditure
£ £
Israel Emunah
Sundry and contra payments 2,425 91,145
Bride fund 5,000 -
World Emunah
Annual contribution 16,908 16,002
Sundry contribution 234 400
Projects
Beit Lady Brodie, Neve Shaanan, Haifa
Refurbishment - 250
Neve Landy Children's Village, Even Shmuel
Refurbishment 178,306 185,211
Counselling 2,700 5,500
Barmitzvah present 14,058 2,000
Sundry contributions 5,161 17,000
Sarah Herzog Children's Centre, Afula
Books and barmitzvah celebration 6,823 -
Food fund 6,666 20,000
Counselling and therapy 3,931 -
Refurbishment at Bell Rothschild 143,191 217,367
Neche Sara Wolfson Vocational High School, Bnei Brak
Sundry contributions - 2,603
Food fund 15,681 40,000
Beit Bondt, Netivot
Beit Bondt counselling - 1,822
Nahariya Counselling Centre
Sundry contribution 17,435 26,433
Beit Weinstein with the Doris and Bertie Black Vocational
Training School with the Samuel Silverman Community
Centre Bnei Brak
Refurbishment 26,029 -
Sundry Contribution - Weinstein School - Bnei Brak 8,000 8,500
Repairs and Maintenance - Weinstein School - Bnei Brak 10,384 -
Food fund 15,681 40,000
Beith Elazraki
Contra pay 39,323 51,840
Sderot family counselling
Counselling and therapy expenses - 34,821
Refurbishment 23,269 119,685
Sundry Contribution - 15,026
Tefillin Fund 12,541 10,972
Ahuzat Sara - 4,611
£553,745 £911,188
----- End of picture text -----

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