Charity registration number 215398
BRITISH EMUNAH FUND
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
BRITISH EMUNAH FUND
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mrs. R Selby, Chair of Trustees Mr A. Freedman Mr D. Hirschfield 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 - 24 |
BRITISH EMUNAH FUND
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their report and financial statements for the year ended 31 December 2023.
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 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.
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.
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BRITISH EMUNAH FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance
The charity’s fundraising work in 2023 continued in the tradition of the wonderful women who began the charity in September 1936.
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 – by 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 are now facing an even greater crisis following a dramatic escalation in violence in the country.
On 7[th] October 2023, a large-scale armed attack was launched on Israel, with some 250 people, including women and children, abducted and taken into the Gaza Strip.
This attack was followed by a significant number of launches of missiles and attack drones into Israel.
The violence that has been perpetrated since 7[th] October in Israel and the Palestinian Territory – particularly in and around the Gaza Strip – has shaken the region and devastated the lives of millions of Israelis and Palestinians. The scale of death and destruction is shocking and unprecedented.
Children have been regular victims of attacks, often targeting or involving schools and other youth spaces.
These children are bearing the brunt of the escalating conflict, as they are more susceptible to dehydration, disease, and malnutrition, with such violence having severe psychological impacts on children affected by the attacks, including trauma and post-traumatic symptoms.
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'.
Multiple missile attacks have hit the town of Qiryat Gat, where British Emunah has been supporting a food bank and distribution centre for over 20 years. Children in the town are being cared for at special emergency centres, and British Emunah is providing funds to buy specific aid that is now urgently required by the community.
Emergency support hotlines have been set up to provide a support network, and many of Emunah’s dedicated staff are making themselves available directly to those in need - providing emotional and psychological guidance as well as suggestions for ideas to keep children and family members calm and distracted whilst they are stuck in 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.
As a response to these devasting attacks, a major emergency fundraising campaign was orchestrated - raising substantial funds. £208,235 was raised in 2023 for this emergency appeal.
Additional online fundraising campaigns are raising further funds.
The new Sarah Ronson Crisis and Intervention Centre in Sderot officially opened in the year.
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BRITISH EMUNAH FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
This Centre in Sderot provides a vital resource for people across southern Israel, many of whom having being affected by Post-Traumatic Stress Disorder.
Tami Beck, the Centre’s Director, has reported that she will now have the capacity to heal more residents in Sderot and the surrounding areas. Those suffering from missile attacks, trauma, PTSD and varying forms of abuse may be seen in a more-timely manner now that the centre has more therapy rooms available.
Since opening in July 2023, Tami has reported an increase for demand by 40% on a weekly basis.
The Beit Rothschild building (seventy-five years old) is the oldest building on the Afula campus, having opened its doors in 1949 and becoming 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 on a daily basis.
A major works project commenced in 2023 to refurbish kitchen facilities in Neve Landy – with £192,226 spent on
these works in the year.
In British Emunah’s Sarah Herzog Residential Centre in Afula, many 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 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.
The increases in the consumer price index in 2023 continued to alarm, with the cost-of-living crisis resulting in substantial increases in food prices.
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 cost of living in 2023, these schools are seeing many more students coming into school hungry.
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 spending £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.
Arrangements were put in place to host an online charity annual dinner in October, but the plans for this dinner were set aside in favour of the emergency fundraising campaign as referred to above.
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 the economic climate has, however, had a direct effect on eBay sales and donations.
More than £4,000 was raised from competitors at the 2023 London Marathon, with additional funds generated from other sponsored events.
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BRITISH EMUNAH FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
The Charity's strategy for raising the required funds is:
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Major fundraising functions
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Contributions from groups, by way of their fundraising
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Appeals at both Passover and New Year
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Sundry smaller fundraising events
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Legacies and Major Donor campaigns
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The use of reserves set aside for the purpose.
Financial review
The results for the year show that there were net outgoing resources of £45,871 (2022: net outgoing resources of £91,859).
The total incoming resources for the year were £958,913 (2022: £755,214).
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 do, however, recognise that both the devastating effects of the escalation of violence in Israel, and the after-shocks of COVID 19 continue 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 2023, the free unrestricted reserves amounted to £642,693 (2022: £891,567)
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.
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BRITISH EMUNAH FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
British Emunah has appointed Julia Kay as its new CEO. Julia is a welcome addition to the team - bringing the best part of two decades’ experience working in the charity sector, including at Jewish Women’s Aid and at JAMI.
The day to day running of the office is Julia’s main responsibility as well as providing professional input into the charity's fundraising activities and strategic development.
The CEO works closely with the Chairman and the Core Group (a sub-committee of the Executive), meeting on a weekly basis.
British Emunah also welcomed a new events manager - Melissa Harris - in 2023, who will be coordinating all future events.
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
Lady E Sacks (Resigned 10 January 2024) Mr A. Freedman Mr D. Hirschfield
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.
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BRITISH EMUNAH FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping 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
15 October 2024
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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 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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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.
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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).
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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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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 noncompliance.
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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.
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We performed analytical procedures to identify any unusual or unexpected relationships.
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We examined supporting documents for all material balances, transactions and disclosures.
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We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions
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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.
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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
15 October 2024
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.
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BRITISH EMUNAH FUND
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted Restricted funds funds 2023 2023 Notes £ £ Income from: Donations and legacies 3 263,793 256,025 Charitable activities 4 210,643 212,425 Investments 5 16,027 - Total income 490,463 468,450 Expenditure on: Raising funds 6 83,978 - Charitable activities 7 288,334 540,730 Total expenditure 372,312 540,730 Net income/(expenditure) 118,151 (72,280) Transfers between funds (132,297) 132,297 Net movement in funds 10 (14,146) 60,017 Reconciliation of funds: Fund balances at 1 January 2023 906,202 32,012 Fund balances at 31 December 2023 892,056 92,029 |
Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 519,818 88,645 173,377 423,068 427,908 63,948 16,027 1,336 - 958,913 517,889 237,325 83,978 30,614 - 829,064 279,856 536,603 913,042 310,470 536,603 45,871 207,419 (299,278) - (206,946) 206,946 45,871 473 (92,332) 938,214 905,729 124,344 984,085 906,202 32,012 |
Total 2022 £ 262,022 491,856 1,336 755,214 30,614 816,459 847,073 (91,859) - (91,859) 1,030,073 938,214 |
|---|---|---|
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 2023
| 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 Net assets excluding pension liability The funds of the Charity Restricted income funds 18 Unrestricted funds |
2023 £ 28,996 967,938 996,934 (22,212) |
£ 9,363 - 9,363 974,722 984,085 984,085 92,029 892,056 984,085 |
2022 £ 41,631 925,411 967,042 (43,463) |
£ 14,634 1 |
|---|---|---|---|---|
| 14,635 923,579 |
||||
| 938,214 | ||||
| 938,214 | ||||
| 32,012 906,202 |
||||
| 938,214 |
The financial statements were approved by the Trustees on 15 October 2024
Mrs. R Selby, Chair of Trustees Trustee
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BRITISH EMUNAH FUND
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
| Notes Cash flows from operating activities Cash generated from/(absorbed by) operations 23 Investing activities Investment income received Net cash generated from investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2023 £ 16,027 |
£ 26,500 16,027 - 42,527 925,411 967,938 |
2022 £ 1,336 |
£ (50,640) 1,336 - (49,304) 974,715 925,411 |
|---|---|---|---|---|
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
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 or grantors 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.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
3 Income from donations and legacies
| Unrestricted Restricted funds funds 2023 2023 £ £ Donations and gifts 140,362 256,025 Legacies receivable 113,363 - Subscriptions 8,909 - Other 1,159 - 263,793 256,025 |
Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 396,387 60,045 173,377 113,363 16,500 - 8,909 9,429 - 1,159 2,671 - 519,818 88,645 173,377 |
Total 2022 £ 233,422 16,500 9,429 2,671 |
|---|---|---|
| 262,022 |
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 4 Charitable activities Appeals and fundraising Emergency appeal Israel 2023 Ebay shop income Analysis by fund Unrestricted funds Restricted funds 5 Income from investments |
2023 £ 156,828 208,235 58,005 423,068 210,643 212,425 423,068 |
2022 £ 445,615 - 46,241 |
|---|---|---|
| 491,856 | ||
| 427,908 63,948 |
||
| 491,856 | ||
| 6 | Unrestricted Unrestricted funds funds 2023 2022 £ £ Interest receivable 16,027 1,336 Raising funds Unrestricted Unrestricted funds funds 2023 2022 £ £ Fundraising and publicity Dinner 48,374 - General appeals and events 35,604 30,614 Fundraising and publicity 83,978 30,614 83,978 30,614 |
Unrestricted Unrestricted funds funds 2023 2022 £ £ Interest receivable 16,027 1,336 Raising funds Unrestricted Unrestricted funds funds 2023 2022 £ £ Fundraising and publicity Dinner 48,374 - General appeals and events 35,604 30,614 Fundraising and publicity 83,978 30,614 83,978 30,614 |
|---|---|---|
| 30,614 | ||
| 30,614 |
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 |
2023 £ 4,933 30,513 29,390 64,836 541,792 222,436 829,064 288,334 540,730 829,064 |
2022 £ 1,835 36,738 20,032 |
|---|---|---|
| 58,605 553,745 204,109 |
||
| 816,459 | ||
| 279,856 536,603 |
||
| 816,459 |
Included in Ebay shop expenses are salary costs of £26,000 (2022: £25,808) and rent payments of £Nil (2022: £2,652).
8 Grants payable
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Grants to institutions: | ||
| Other | 541,792 | 553,745 |
In the year, of the total grants paid, £133,359 (2022: £224,088) related to unrestricted funds and £408,433 (2022: £329,652) related to restricted funds.
For grant funding activities see attached appendix.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 £ £ 109,035 - 5,273 - 30,996 - 20,892 - 3,381 - 3,638 - 21,686 - 868 - 2,680 - 1,306 - 687 - 5,383 - 1,059 - 7,951 - - 7,600 214,835 7,600 214,835 7,600 |
2023 £ 109,035 5,273 30,996 20,892 3,381 3,638 21,686 868 2,680 1,306 687 5,383 1,059 7,951 7,600 222,435 222,436 |
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 |
Governance costs include payments to the auditors of £7,600 (2022: £8,056) for audit fees. Support costs include payments to the auditors of £3,800 (2022: £3,532) for non audit fees.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 10 | Net movement in funds | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Net movement in funds is stated after charging/(crediting) | |||
| Depreciation of owned tangible fixed assets | 5,271 | 5,472 |
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 |
2023 Number 5 2023 £ 126,954 6,900 1,181 135,035 |
2022 Number 4 |
|---|---|---|
| 2022 £ 117,293 6,703 1,420 |
||
| 125,416 |
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 £56,083 (2022: £52,501).
13 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 14 Tangible fixed assets Short-term leasehold property Office equipment Computer equipment £ £ £ Cost At 1 January 2023 24,575 72,204 41,334 At 31 December 2023 24,575 72,204 41,334 Depreciation and impairment At 1 January 2023 24,575 61,801 37,103 Depreciation charged in the year - 1,040 4,231 At 31 December 2023 24,575 62,841 41,334 Carrying amount At 31 December 2023 - 9,363 - At 31 December 2022 - 10,403 4,231 15 Fixed asset investments Cost or valuation At 1 January 2023 Impairment At 31 December 2023 Carrying amount At 31 December 2023 At 31 December 2022 Other investments comprise: Notes Investments in subsidiaries |
Database Total £ £ 18,356 156,469 18,356 156,469 18,356 141,835 - 5,271 18,356 147,106 - 9,363 - 14,634 Other investments 1 (1) - - 1 2023 2022 £ £ - 1 |
|---|---|
The fixed asset investment was held in the U.K. – comprising the entire issued share capital, of 1 ordinary share of £1, of Jewish Princess Limited (a dormant company, now dissolved), incorporated in England & Wales, company registration number 05475592 with its registered office address at its parents principal place of business.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 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 |
2023 £ 10,156 18,840 28,996 2023 £ 3,493 18,719 22,212 |
2022 £ 32,686 8,945 |
|---|---|---|
| 41,631 | ||
| 2022 £ 3,107 40,356 |
||
| 43,463 |
18 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 Restricted Funds Previous year: At 1 Restricted Funds |
January 2023 Incoming resources Resources expended Transfers At 31 December 2023 £ £ £ £ £ 32,012 468,450 (540,730) 132,297 92,029 January 2022 Incoming resources Resources expended Transfers At 31 December 2022 £ £ £ £ £ 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.
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
19 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 Designated funds General funds Previous year: At 1 General funds |
January 2023 Incoming resources Resources expended Transfers At 31 December 2023 £ £ £ £ £ - - - 240,000 240,000 906,202 490,463 (372,312) (372,297) 652,056 906,202 490,463 (372,312) (132,297) 892,056 January 2022 Incoming resources Resources expended Transfers At 31 December 2022 £ £ £ £ £ 905,729 517,889 (310,470) (206,946) 906,202 |
|---|---|
The designated funds represent funds set aside by the Trustees for various projects in Israel.
20 Analysis of net assets between funds
| Unrestricted Restricted funds funds 2023 2023 £ £ At 31 December 2023: Tangible assets 9,363 - Current assets/(liabilities) 882,693 92,029 892,056 92,029 Unrestricted Restricted funds funds 2022 2022 £ £ At 31 December 2022: Tangible assets 14,634 - Investments 1 - Current assets/(liabilities) 891,567 32,012 906,202 32,012 |
Total 2023 £ 9,363 974,722 |
|---|---|
| 984,085 | |
| Total 2022 £ 14,634 1 923,579 |
|
| 938,214 |
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BRITISH EMUNAH FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
21 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 |
2023 £ 15,000 60,000 30,000 105,000 |
2022 £ 15,000 60,000 45,000 |
|---|---|---|
| 120,000 |
22 Related party transactions
The total sum donated to the charity by the Trustees and their connected charities was £26,667 (2022: £5,449).
| 23 Cash generated from operations Surplus/(deficit) for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: Decrease in debtors (Decrease)/increase in creditors Cash generated from/(absorbed by) operations |
2023 £ 45,871 (16,027) 5,273 12,634 (21,251) 26,500 |
2022 £ (91,859) (1,336) 5,472 15,088 21,995 |
|---|---|---|
| (50,640) |
24 Analysis of changes in net funds
The Charity had no material debt during the year.
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