MACHZIKEI HADASS COMMUNITIES GROUP
( REGISTERED CHARITY NUMBER 235459)
TRUSTEES REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
B Olsberg & Co Chartered Accountants & Statutory Auditor Enterprise House 3 Middleton Road Manchester M8 5DT
MACHZIKEI HADASS COMMUNITIES GROUP
Contents
| Trustees Report | 3 |
|---|---|
| Independent Auditors’ Report | 7 |
| Consolidated Statement of Financial Activities | 9 |
| Consolidated Balance Sheet | 10 |
| Consolidated cash flow statement | 11 |
| Notes forming part of the financial statements | 12 |
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MACHZIKEI HADASS COMMUNITIES GROUP
(REGISTERED CHARITY NUMBER 235459)
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020
The Trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of 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 2015).
Reference and Administrative Detail
Trustees Y A Sanger A Reich Y M Salomon M Brunner
Charity Number 235459
Charity Offices 17 Northumberland Street, Salford M7 0FE
Auditors B Olsberg & Co, Chartered Accountants and Statutory Auditors, 3 Middleton Road Manchester M8 5DT
Bankers Royal Bank of Scotland, 18 Cheetham Hill Road, Manchester
Solicitors Kuit Steinart Levy, 3 St. Mary’s Parsonage, Manchester
Trustees
The Board of Trustees is authorised to appoint new Trustees to fill vacancies arising through resignation or death of an existing Trustee.
Trustee Induction and Training
Most trustees are already familiar with the practical work of the charity having received guidance from the existing trustees prior to appointment. New trustees are further encouraged to attend training sessions organised by the charity
Investment Powers
The trustees are authorised to make and hold investments using the general funds of the charity, and these are shown in the balance sheet.
Structure governance and Management
The Charitable Trust is constituted by Trust deed, and its objects are to further the observance of orthodox Judaism, to encourage and support the advancement of Orthodox Jewish Religious Education, to establish all institutions required by an orthodox Jewish community and any other charitable activity.
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MACHZIKEI HADASS COMMUNITIES GROUP
(REGISTERED CHARITY NUMBER 235459)
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020
Object, Aims and Activities
The policy of the Charitable Trust continues to be to support these activities as follows:
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1) The trustees own several buildings including a synagogue hall and ritual baths. These are used constantly by the Community members. They also own a cemetery.
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2) The Trustees employ a Rabbi and various supervisory officials to ensure that the highest standard of religious requirements in all spheres of Judaism is achieved and maintained.
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3) The Charity operates a charity fund voucher account, the surplus in which, is used for its objects.
Public Benefit
The trustees confirm that they have referred to guidance contained in the charity commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance when reviewing the charity’s aims and objectives and in planning future activities, and setting the grant policy for the year.
Group Structure and Relationships
The trustees consider that the performance of the charity this year has been satisfactory. It has been able to fund its various activities and distributions as indicated in the SOFA. There were no changes in its activities. The charity’s trading subsidiary Testbell Limited continued to operate providing the community with Kosher poultry. Its other subsidiary Erez (M/c) Ltd provides a regular income from its property investments.
Financial Review
The charity provided Shechitah and Supervisory services during the year which produced an income of £236,613. Donation and subscriptions received during the year were £1,180,939. Gift aid of £80,200 was received from the charity’s wholly owned subsidiary company, Testbell Limited. Interest received was £1,260.
The charity paid out charitable grants totalling £946,458. The charity spent £112,488 on communal services which included the cost of running and refurbishing the Mikvas, Maintenance of religious buildings was £53,435, Rabbinical and Supervisory Services were £248,056. The cost of Management and Administration was £129,148. The charity’s surplus for the year was £299,418 (2019 - £62,545.)
The results of the charity’s subsidiaries are shown in note 3 to the accounts.
Funds available are sufficient to permit the Trust to continue in operation in the medium term.
Principal Risks and Uncertainties
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust. These risks include macro economic factors governing the whole economy that could expose tenants and thereby put value of the investment properties at risk with the associated knock on effect with lenders covenants. Additionally, the charity may be exposed to interest rate increases with reference to loans and their repayment.
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MACHZIKEI HADASS COMMUNITIES GROUP
(REGISTERED CHARITY NUMBER 235459)
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020
Other risks faced by the trust include operational risks from ineffective grant making. These risks are managed by the trustees researching potential beneficiaries before granting donations.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all grants paid out.
The trustees are satisfied that systems are in place to manage the exposure to the above major risks.
Risk Management
The trustees examine the major risks that the charitable trust faces each financial year when preparing and updating its budget. The Charity has developed systems to monitor and control these risks to mitigate any impact that they may have on the charity's future.
Going Concern
The trustees consider that the going concern basis of accounting in the preparation of the financial statements is appropriate for a period of at least twelve months from the date when the financial statements are authorised for issue and that there are no material uncertainties due to the discretion in making grants and maintaining adequate reserves.
Future Developments
No future developments are contemplated at present.
Reserves
The trustees always wish to retain income to provide for unforseen contingencies and the amounts retained will fluctuate from year to year.
The amount of distributions made in any period will take into account the necessity to have these reserves available in accordance with the Trustees policy.
The amount of reserves to be held is reviewed annually.
True and fair override
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charities governing document , the Charity Act 2011 and the relevant version of the 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 ).
Trustees’ responsibilities in relation to the financial statements
The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each 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 period. In preparing the financial statements, the trustees are required to:
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(a) select suitable accounting policies and apply them consistently;
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(b) make judgements and estimates that are reasonable and prudent.
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(c) state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures
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MACHZIKEI HADASS COMMUNITIES GROUP (REGISTERED CHARITY NUMBER 235459) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020
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disclosed and explained in the financial statements;
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(d) prepare the financial statements on a going concern basis unless it is inappropriate to presume the charity will continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the group and charity and which enable them to ascertain the financial position of the group and charity and which enable them to ensure the financial statements comply with applicable law and regulations. They are also responsible for safeguarding the assets of the group and charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
In so far as the trustees are aware:
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There is no relevant audit information of which the charitable trust’s auditors are unaware; and
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The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Approval
The report was approved by the Trustees on 30 September 2021and signed on their behalf.
A Reich - Trustee
Y M Salamon - Trustee
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MACHZIKEI HADASS COMMUNITIES GROUP
(REGISTERED CHARITY NUMBER 235459)
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF
MACHZIKEI HADASS COMMUNITIES GROUP
Opinion
We have audited the financial statements of Machzikei Hadass Communities Group and the Machzikei Hadass Communities for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes and notes to the Financial Statements, including a summary of 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).
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In our opinion, the financial statements:
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Give a true and fair view of the state of the group and the charity’s affairs as at 31 August 2020 and of its income and expenditure for the year then ended;
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practice;
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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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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The trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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The trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other Information
The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. if we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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MACHZIKEI HADASS COMMUNITIES GROUP
(REGISTERED CHARITY NUMBER 235459)
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF
MACHZIKEI HADASS COMMUNITIES GROUP
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Charity and environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you, in our opinion:
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Sufficient accounting records have not been kept;
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The financial statements are not in agreement with the accounting records or returns; or
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We have not obtained all the information and explanations necessary for the purposes of our audit.
Responsibilities of the trustees
As explained more fully in the trustees’ responsibilities statement set out on page 5 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 they determine is necessary to enable the preparation of the financial statements that are free form material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilites. This description forms part of our auditor’s report.
Use of our report
The report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. 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’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
B Olsberg & Co Chartered Accountants & Statutory Auditor Enterprise House 3 Middleton Road Manchester M8 5DT 30 September 2021
B Olsberg & Co is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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MACHZIKEI HADASS COMMUNITIES GROUP
Consolidated Statement Of Financial Activities
For The Year Ended 31 August 2020
| Note Incoming Resources Charitable Activities Shechitah & Supervision Donations and Subscriptions Furlough Receipts Other activities to generate funds Trading Income 4 Rent rceivable 4 Gift Aid Receipts 4 Bank and Building Soc Interest Total Incoming Resources Resources Expended Direct Charitable Expenditure Grants 3 Communal Services 3 Maintenance of Religious Buildings 3 Rabbinical & Supervisory Services 3 Cost of Generating Funds Management and Administration 3 Trading Expenses 4 Rental Income Expenses 4 Total Resources Expended Net Income Resources for the Year Gain on Sale of Property Net Movement in Funds Funds at 1 September 2019 Funds at 31 August 2020 |
Group Charity 2020 2019 2020 2019 Unrestricted Total Unrestricted Total Funds Funds Funds Funds £ £ £ £ 236,613 201,108 236,613 201,108 1,180,939 1,279,451 1,180,939 1,278,451 6,527 5,215 2,517,140 2,173,279 - - 69,036 65,940 - - - - 80,200 291,000 1,260 2,036 1,260 2,036 4,011,514 3,721,814 1,504,226 1,772,595 946,458 1,114,319 946,458 1,114,319 112,488 225,685 112,488 225,685 53,435 47,114 53,435 47,114 248,056 212,554 248,056 212,554 1,360,437 1,599,672 1,360,437 1,599,672 129,148 110,506 129,148 110,506 2,196,464 1,889,721 - 26,048 59,370 - - 2,351,660 2,059,597 129,148 110,506 3,712,097 3,659,269 1,489,585 1,710,178 299,418 62,545 14,642 62,417 299,418 62,545 14,642 62,417 3,829,176 3,766,631 4,057,715 3,995,298 4,128,594 3,829,176 4,072,357 4,057,715 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes form part of these accounts
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MACHZIKEI HADASS COMMUNITIES GROUP
Consolidated Balance Sheet As At 31 August 2020
| NOTE | Group Charity 2020 2019 2020 2019 £ £ £ £ |
|---|---|
| Fixed Assets Tangible Fixed Assets 6 Investments 7 Current Assets Stock Debtors 8 Cash at Bank or Building Soc Creditors: payable within one year 9 Net Current Assets Total Assets Less Current Liabilities Creditors: due beyond one year 10 Net Assets Unrestricted Funds General Funds 10 Non Charitable Trading Funds |
3,560,618 2,982,514 2,136,663 1,973,534 1,000,004 1,000,004 |
| 3,560,618 2,982,514 3,136,667 2,973,538 |
|
| 20,000 20,000 525,126 428,948 609,165 537,086 1,115,459 1,218,452 932,884 1,111,084 |
|
| 1,660,585 1,667,400 1,542,049 1,648,170 291,534 222,726 117,932 61,330 |
|
| 1,369,051 1,444,674 1,424,117 1,586,840 |
|
| 4,929,669 4,427,188 4,560,783 4,560,378 801,075 598,012 488,426 502,663 |
|
| 4,128,594 3,829,176 4,072,357 4,057,715 |
|
| 3,918,064 3,860,434 4,072,357 4,057,715 210,530 (31,258) - - |
|
| 4,128,594 3,829,176 4,072,357 4,057,715 |
|
Approved by the Board of Trustees on 30 September 2021 and signed on its behalf by
A Reich – Trustee
Y M Salamon – Trustee
The notes form part of these financial statements.
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MACHZIKEI HADASS COMMUNITIES GROUP
Consolidated Cashflow Statement
For the Year Ended 31 August 2020
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Cash Flows from Operating Activities | ||
| Net Income | 299,418 | 62,545 |
| Adjustments for: | ||
| Net Gains on Investments | - | |
| Interest Receivable | (2,572) | |
| Depreciation | 7,693 | |
| Changes in: | ||
| Trade and other debtors | (96,178) | (70,172) |
| Trade and other creditors | 271,871 | (44,254) |
| Cash Generated from Operations | 480,232 | (51,881) |
| Interest Received | 2,572 | |
| Net cash from Operating Activities | 482,804 | (51,881) |
| Cash flows from investing activities | ||
| Purchase of Investments | (585,796) | (946) |
| Proceeds from sales of investments | ||
| Net Cash (used in)/from Investing activities | (585,796) | (946) |
| Net increase in cash and cash equivalents | (102,992) | (52,827) |
| Cash and cash equivalents at the beginning of the ye | 1,218,452 | 1,271,279 |
| Cash and cash equivalents at the end of the year | 1,115,460 | 1,218,452 |
The notes form part of these accounts
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020
1. Statement of compliance
The accounts have been prepared in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Charities Act 2011 and the U.K. Generally Accepted Accounting Practice.
The accounts have been prepared to give a true and fair view and 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 relevant version of the Statement of Recommended Practice to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland ( FRS 102) rather than the Accounting and Reporting by Charities Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn .
2. Accounting policies
- a. The accounts (financial statements) have been prepared under the historical cost convention as adjusted for revaluations of fixed assets and investments. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on16 July 2014 and the Financial; Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
b. Group Accounts
These financial statements consolidate the results of the charity and its two wholly owned subsidiaries Erez (Manchester) Ltd and Testbell Ltd on a line by line basis.
c. Incoming Resources
Voluntary income by way of donations and subscriptions is included in full in the Statement of Financial Activities when received.
Shechita & supervision represents services provided in respect of certification of foods products in accordance with orthodox Jewish Law.
Trading income represents sales of poultry and meat by Testbell Ltd.
Interest received is included when received.
Rental income from investment properties is included in the SOFA in the year which it is receivable. Gift Aid from trading subsidiaries is included in the charity when receivable.
d. Fund Accounting
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Unrestricted funds are expendable at the discretion of the trustees in furtherance of the objects of the charity.
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e. Depreciation is provided on assets at rates calculated to write off the cost less realisable value of each asset over its estimated useful life, as follows:
Furniture, Fixtures, Fittings and Equipment – 20% on reducing balance basis Land and Buildings – NIL.
Motor Vehicles - 25% on reducing balance basis.
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020
Companies Act 2006 as they are considered long life assets and whose market value is at least the valuation as shown in note 5 and any charge would not be material.
An impairment review is carried out on an annual basis to assess whether the market value of all properties is at least as much as the carrying value in the accounts. Provision is made for any permanent fall in value.
Resources Expended
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f. Expenditure is recognised on an accruals basis as a liability is incurred, and includes any VAT which cannot be recovered.
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g. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for it beneficiaries. It includes both costs that can be allocated directly to such
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activities and those costs of a relevant nature necessary to support them. Grants and distributions are included in the year they are paid.
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h. Management and administration costs of the charity relate to the central costs of management including the costs of meetings, audit and statutory compliance.
Stock
- i. Stock is carried at the lower of cost and net realisable value.
Public Benefit
- j. The trust constitutes a public benefit entity as defined by FRS102.
Going Concern
- k. the trustees consider there are no material uncertainties about the Trusts ability to continue as a going concern due to the discretion in making grants and maintaining adequate reserves.
Financial Instruments
- l. A financial asset or a financial liability is recognized only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognized at the amount receivable or payable including any related transactions costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Basic financial instruments are recognized at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognized in profit or loss.
Fair Value
- m. Debtors and Creditors are stated at fair value.
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020
Taxation
- n. The trust is registered as a charity by the HM Revenue & Customs and therefore benefits from certain exemptions from taxation on income and gains to the extent that they are applied for charitable purposes.
Judgments and key sources of Estimation
- o. The preparation of the financial statements did not require management to make material judgements, estimates, or assumptions, that effect the amounts reported, except for the valuation of investment properties.
The valuation of the properties are updated to fair value based on information supplied by independent Valuers and the Trustees.
3. RESOURCES EXPENDED
GRANTS
Grants paid, to institutions, for the relief of poverty, advancement of Jewish Orthodox religion and advancement of Jewish Orthodox education during the year were £946,458 (2019 - £1,114,319). A list of beneficiaries is available from the Trustees on request.
All grants were paid in accordance with the Charity’s objectives.
| Communal Maintenance Rabbinical Management Services Of Religious & Supervisory & Admin. Buildings Services £ £ £ £ |
Communal Maintenance Rabbinical Management Services Of Religious & Supervisory & Admin. Buildings Services £ £ £ £ |
Total 2020 2019 £ £ |
|---|---|---|
| Salaries, Fees and Commission | 11,000 218,416 25,000 |
254,416 225,667 |
| Insurance | 6,555 2,500 |
9,055 14,759 |
| Utilities Printing, Postage, Stationery, Computer & Advertising Telephone Accountancy Audit Fee Professional Fees Travel Bank Interest & Charges Requisites and Sundry Repairs & Renewals Functions and Catering Mikva Expenses Depreciation Total Resources Expended - |
36,999 10,000 19,482 6,271 9,000 4,000 14,530 26,736 20,631 31,578 35,880 54,858 5,532 2,904 1,255 |
46,999 52,227 19,482 (1,471) 6,271 6,872 9,000 9,000 4,000 4,000 14,530 18,160 26,736 21,211 31,578 30,772 20,631 19,609 35,880 25,355 5,532 3,142 54,858 163,849 4,159 2,707 |
| 112,488 53,435 248,056 129,148 |
543,127 595,859 |
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MACHZIKEI HADASS COMMUNITIES GROUP Notes to the Financial Statements For the year ended 31 August 2020
4. INCOME FROM SUBSIDIARIES TRADING ACTIVITIES
The Machzikei Hadass Communities Charity owns the whole of the ordinary share capital consisting of 2 shares at £1.00 each in each of the following subsidiary companies. These subsidiaries distribute their profits to the Machzikei Hadass Communities Charity by way of Gift Aid payments.
The results of these companies are summarised below:-
| Activity Turnover Costs of Sales Grossprofit Rental Income Expenses Other Operating Income - Furlough Operating profit Gift Aid Profit for Year Profit Brought Forward Retained Profit Carried Forward |
Erez (Manchester) Ltd Charity Company holding Investment Properties 2020 2019 £ £ |
|---|---|
Details of the subsidiaries balance sheets are given in note 6.
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020 (Cont’d)
5. STAFF COSTS
No remuneration was paid to Trustees in the year, nor were any Trustees’ expenses reimbursed. The staff costs were
| Wages and salaries etc. Pension The average weekly number of staff employed by follows:- Administrative, supervisory and cleaners |
2020 £ 248,569 5,847 254,416 the charity during the 2020 21 |
2019 £ 224,708 959 225,667 year was as 2019 21 |
|---|---|---|
6. TANGIBLE FIXED ASSETS FOR USE BY THE CHARITY
| Land & Fixtures Motor TOTAL Buildings Fittings Vehicle & Equipment £ £ £ £ |
Land & Fixtures Motor TOTAL Buildings Fittings Vehicle & Equipment £ £ £ £ |
|---|---|
| As at 1 September 2019 Additions Disposals Revaluation Movement As at 31 August 2020 Depreciation As at 1 September 2019 Charge for Year As at 31 August 2020 Net Book Value As at 31 August 2020 As at 30 June 2019 |
1,964,380 35,911 11,779 2,012,070 156,892 10,396 - 167,288 |
| 2,121,272 46,307 11,779 2,179,358 |
|
| - 31,785 6,751 38,536 - 2,904 1,255 4,159 |
|
| - 34,689 8,006 42,695 |
|
| 2,121,272 11,618 3,773 2,136,663 |
|
| 1,964,380 4,126 5,028 1,973,534 |
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020 (Cont’d)
FOR USE BY SUBSIDIARY COMPANIES
| LAND AND PLANT & FURNITURE & TOTAL BUILDINGS MACHINERY APPLIANCES £ £ £ £ As at 1 September 2019 999,391 23,948 10,712 1,034,051 Additions 413,468 - 5,040 418,508 Disposals - Revaluation Movement - As at 31 August 2020 1,412,859 23,948 15,752 1,452,559 Depreciation As at 1 September 2019 - 16,205 8,866 25,071 Charge for Year 3,533 3,533 Written off /scrapped - As at 31 August 2020 - 16,205 12,399 28,604 Net Book Value As at 31 August 2020 1,412,859 7,743 3,353 1,423,955 As at 30 June 2019 999,391 7,743 1,846 1,008,980 SUMMARY 2020 2019 NET BOOK VALUE CHARITY ASSETS 2,136,663 1,973,534 NET BOOK VALUE SUBSIDIARY COMPANIES ASSETS 1,423,955 1,008,980 3,560,618 2,982,514 |
LAND AND PLANT & FURNITURE & TOTAL BUILDINGS MACHINERY APPLIANCES £ £ £ |
LAND AND PLANT & FURNITURE & TOTAL BUILDINGS MACHINERY APPLIANCES £ £ £ |
|---|---|---|
| 999,391 23,948 413,468 - |
10,712 1,034,051 5,040 418,508 - - |
|
| 1,412,859 23,948 |
15,752 1,452,559 |
|
| - 16,205 |
8,866 25,071 3,533 3,533 - |
|
| - 16,205 |
12,399 28,604 |
|
| 1,412,859 7,743 |
3,353 1,423,955 |
|
| 999,391 7,743 |
1,846 1,008,980 |
|
| 2020 2019 2,136,663 1,973,534 1,423,955 1,008,980 |
||
| 3,560,618 2,982,514 |
REVALUATIONS
The trustees are of the opinion that the charity's land and buildings are worth more than their book value but do not feel that the costs of revaluation are warranted in the current situation.
The trustees valued the investment in the charity’s subsidiaries at Fair Value, as at 31 August 2020, at £1,000,004.
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020 (Cont’d)
7. INVESTMENTS
This represents the share capital of the two subsidiary companies owned by the charity. These investments were valued by the trustees at £1,000,000.
Investment properties were valued by either professional valuers or by the trustees and the basis of the valuation is market value to arrive at a fair value. Valuation methods include comparing with similar properties or the rent yield on the property.
There are no restrictions on the reliability of the investment property, income from the investment property or any proceeds on disposal.
The Assets and liabilities of the subsidiaries were:
Summary of Balance Sheets as at 31 August 2020
| Tangible Assets Current Assets Creditors: amounts falling due within one year beyond one year Represented by Share Capital Profit and loss account Capital Redemption Reserve 8. DEBTORS Trade Other Debtors Income Tax (net) Subsidiary Company Testbell Ltd Erez M/c Ltd |
Erez Testbell (Manchester) Ltd Ltd 2020 2019 2020 2019 1,413,355 999,887 10,600 9,093 95,834 29,184 447,407 405,251 1,509,189 1,029,071 458,007 414,344 (40,329) (15,998) (487,477) (445,602) (623,149) (210,349) - 845,711 802,724 (29,470) (31,258) 2 2 2 2 814,165 771,178 210,528 (31,260) 31,544 31,544 - 845,711 802,724 210,530 (31,258) Group Machzikei Hadass Communities 2020 2019 2020 2019 |
Erez Testbell (Manchester) Ltd Ltd 2020 2019 2020 2019 1,413,355 999,887 10,600 9,093 95,834 29,184 447,407 405,251 1,509,189 1,029,071 458,007 414,344 (40,329) (15,998) (487,477) (445,602) (623,149) (210,349) - 845,711 802,724 (29,470) (31,258) 2 2 2 2 814,165 771,178 210,528 (31,260) 31,544 31,544 - 845,711 802,724 210,530 (31,258) Group Machzikei Hadass Communities 2020 2019 2020 2019 |
|
|---|---|---|---|
| Group 2020 |
Machzikei Hadass Communities 2019 2020 |
||
| £ £ £ £ 511,597 404,969 171,382 110,000 6,450 15,660 6,000 - 7,079 8,319 7,079 8,319 - - 114,204 300,436 - - 310,500 118,331 |
|||
| 525,126 428,948 609,165 537,086 |
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MACHZIKEI HADASS COMMUNITIES GROUP
Notes to the Financial Statements
For the year ended 31 August 2020 (Cont’d)
9. CREDITORS: payable within one year
Group Machzikei Hadass Communities
| 2020 | 2019 | 2020 |
2019 | ||
|---|---|---|---|---|---|
| Trade Sundry Creditors Expenses Accrued and Income in Advance Loans |
£ 127,417 - 55,068 55,250 |
** | £** 142,308 9,869 38,547 - |
£ - - 41,573 50,000 |
|
| Social Security & Other Taxes Bank Loans Overdrafts & Mortgages |
6,001 47,798 |
1,002 31,000 |
2,359 24,000 |
1,002 24,000 |
|
| 291,534 | 222,726 | 117,932 | 61,330 |
10. CREDITORS Payable beyond one year
| ` Bank Loans & Mortgages Other Loans Total These are due as follows :- 1-2 Years 2-5 Years Beyond 5 Years |
Group Charity |
|
|---|---|---|
| 2020 2019 2020 2019 £ £ £ £ 801,075 598,012 488,426 502,663 |
||
| 801,075 598,012 488,426 502,663 |
||
| 47,798 31,000 24,000 24,000 143,394 93,000 72,000 72,000 609,883 474,012 392,426 406,663 |
||
| 801,075 598,012 488,426 502,663 |
The bank loans are secured by charges over the properties which they finance.
The bank loans repayable after more than one year are due follows:
11. Related Parties
Gift aid totalling £80,200 was payable by Testbell Ltd to its parent Machzikei Hadass Communities. At the year end Machzikei Hadass Communities was owed £114,204 from its subsidiary Testbell Ltd and £310,500 from its subsidiary Erez (M/C) Ltd.
After the year end Testbell Ltd paid a further £240,000 in Gift Aid to its parent.
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