CHARITY REGISTRATION NUMBER: 267685
Siva Charitable Fund Financial Statements
5 April 2024
COHEN ARNOLD
Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
Siva Charitable Fund
Financial Statements
Year ended 5 April 2024
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 6 |
| Statement of financial activities | 11 |
| Statement of financial position | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 |
Siva Charitable Fund Trustees' Annual Report
Year ended 5 April 2024
The trustees present their report and the financial statements of the charity for the year ended 5 April 2024.
Reference and administrative details
Registered charity name Siva Charitable Fund Charity registration number 267685 Principal office New Burlington House 1075 Finchley Road London NW11 0PU The trustees Mr A Klein Mr J Sternlicht Mrs Z Sternlicht Auditor Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU Solicitors Bude Nathan Iwanier 1-2 Temple Fortune Parade Bridge Lane London NW11 0QN
Structure, governance and management
Governing document
The organisation is run by the trustees and is governed by the Trust Deed dated 4 April 1974.
Trustees
The trustees administer the day to day affairs of the charity. They are all experienced trustees and act in an honorary capacity. There is no intention to appoint any new trustees. None of the trustees have any beneficial interest in the the charity. All trustees give freely of their time and expertise without any form of remuneration or other benefit in cash or kind.
Structure and Investments
The charity's property investments are held by Flintrule Limited, Flintrule (No.1) Limited, Merlina Limited and Oakford Propertied Limited, which act as bare trustees. These companies, which are incorporated in England and Wales, hold the legal title to properties on trust for the beneficial owner Siva Charitable Fund. All income and expenditure deriving from these property investments is reflected in the financial statements of Siva Charitable Fund. The nominee companies file dormant company accounts as all their assets, liabilities, income and expenses are included in the charity's accounts.
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Siva Charitable Fund
Trustees' Annual Report (continued)
Year ended 5 April 2024
Structure, governance and management (continued)
Risk Management
The trustees have identified and reviewed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate those risks.
Financial risk management and policies
The charity holds or issues financial instruments in order to achieve three main objectives being:
a) to finance its operations
b) to manage its exposure to interest and currency risks arising from operations and from its sources of finance; and
c) to generate funds.
In addition various financial instruments (e.g. debtors, creditors, prepayments and accruals) arise directly from the charity's operations.
Credit Risk
The charity monitors credit risk closely and considers that its current policies of credit risk checks meets its objectives of managing exposure to credit risk. The charity has no significant concentrations of credit risk. Amounts shown in the balance sheet represent the maximum anticipated credit risk exposure. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
Objectives and activities
Charitable Objectives
The charity's objectives are:
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relief of poverty
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the advancement of education amongst persons who, in the uncontrolled opinion of the Trustees, are of the Jewish faith
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the advancement of the Jewish faith
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Siva Charitable Fund
Trustees' Annual Report (continued)
Year ended 5 April 2024
Objectives and activities (continued)
Aims, objectives and activities for public benefit
The aim of the charity (both short term and long term) is grant making to meet its primary objectives set out above. The charity makes grants to other charities, utilising reserves in lean times, and success is measured by the quantum of grants it makes in a year.
The charity strives to be self funding from its investment assets. The charity does not engage in fund raising activities, however welcomes donations from other charities and organisations to fund its activities.
Public Benefit
The trustees confirm that they have referred to guidelines contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policies for the year and complied with its duty to have due regard to the commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.
The grant making policy of the charity as stated below helps the charity to fulfill its duty to act for the public benefit in accordance with section 4 of the Charities Act 2006.
Grant making policy
This charity was established to support the activities of Jewish religious organisations, especially in the field of education and to provide philanthropic aid to the needy. Grants are made to charitable institutions and organisations which conform to the objects of the charity after the trustees have satisfied themselves as to the bona fides of the recipients. Donations are made to organisations providing a sound religious education in accordance with doctrines and principles of traditional Judaism and to institutions set up to provide aid to the needy, with a view to achieving the objects of the charity.
Applications for grants are made in writing to the charity or in person to the Trustees by voluntary and community organisations as well as by individuals on behalf of impoverished individuals or by those said individuals themselves. All donations above £5,000 require approval of all of the Trustees and after making the necessary checks, proportional to the level of funding involved, donations are granted.
A number of organisations and institutions regularly supported by Siva Charitable Fund have a continual call for funding for capital projects together with a concomitant need for increased revenue support.
Achievements and performance
During the year £254,600 (2023: £126,000) was distributed in furtherance of the charity's objectives. The grants have increased based on the increased income available in the year.
Financial review
The charity is reliant on the income from its investment properties. No voluntary income was received from companies connected with the trustees. Income from the charity's investment properties and management costs were largely in line with the prior year.
The value of the investment properties is based on market conditions.
No change in activities is envisaged in the immediate future
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Siva Charitable Fund
Trustees' Annual Report (continued)
Year ended 5 April 2024
Plans for future periods
The charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory incoming resources. It is the trustees aim to ensure future income stream by the acquisition of investments.
Investment powers and policy
In accordance with the trust deed, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy.
The trustees having regard to the liquidity requirement of the charity and the reserves policy operate a policy of holding available funds in interest bearing deposit accounts.
Reserves Policy
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely administrative costs of the charity for the next year. As at 5th April 2024, the Charity had £5.95m of unrestricted funds available.
Fixed Assets
The movements in investments are fully reflected in the note 12 to the financial statements. There were no additions or disposals during the year.
Investment properties
The charity's properties have been revalued to their fair value by the trustee Mr J. Sternlicht.
Trustees' responsibilities statement
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 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 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 applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 business.
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Siva Charitable Fund
Trustees' Annual Report (continued)
Year ended 5 April 2024
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 applicable Charities (Accounts and Reports) Regulations, 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' annual report was approved on 30 January 2025 and signed on behalf of the board of trustees by:
Mr A Klein Trustee
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Siva Charitable Fund
Independent Auditor's Report to the Members of Siva Charitable Fund
Year ended 5 April 2024
Opinion
We have audited the financial statements of Siva Charitable Fund (the 'charity') for the year ended 5 April 2024 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, 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 FRS 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:
-
give a true and fair view of the state of the charity's affairs as at 5 April 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-
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.
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Siva Charitable Fund
Independent Auditor's Report to the Members of Siva Charitable Fund (continued)
Year ended 5 April 2024
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. 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' 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 if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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Independent Auditor's Report to the Members of Siva Charitable Fund (continued)
Siva Charitable Fund
Year ended 5 April 2024
Auditor's 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
-
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity through discussion with the trustees and identified financial reporting legislation, landlord legislation and charity legislation as being most significant to these financial statements.
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We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.
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We discussed with the trustees the policies and procedures regarding compliance with these legal and regulatory frameworks.
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We assessed the susceptibility of the charity's financial statements to material misstatement due to non-compliance with legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low.
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Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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Siva Charitable Fund
Independent Auditor's Report to the Members of Siva Charitable Fund (continued)
Year ended 5 April 2024
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Siva Charitable Fund
Independent Auditor's Report to the Members of Siva Charitable Fund (continued)
Year ended 5 April 2024
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Moshe Broner-Cohen (Senior Statutory Auditor) 30 January 2025
Date For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU
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Siva Charitable Fund
Statement of Financial Activities
Year ended 5 April 2024
| 2024 | 2024 | 2023 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Investment income | 4 | 833,748 | 833,748 | 767,625 |
|
|
|
||
| Total income | 833,748 | 833,748 | 767,625 | |
|
|
|
||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 5 | (429,749) | (429,749) | (326,591) |
| Expenditure on charitable activities | 6,7 | (264,847) | (264,847) | (170,288) |
|
|
|
||
| Total expenditure | (694,596) | (694,596) | (496,879) | |
|
|
|
||
|
|
|
||
| Net income and net movement in funds | 139,152 | 139,152 | 270,746 | |
|
|
|
||
| Reconciliation of funds | ||||
| Total funds brought forward | 5,815,832 | 5,815,832 | 5,545,086 | |
|
|
|
||
| Total funds carried forward | 5,954,984 |
5,954,984 |
5,815,832 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 14 to 23 form part of these financial statements.
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Siva Charitable Fund
Statement of Financial Position
5 April 2024
| 5 April 2024 | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Note | £ | £ | |
| Fixed assets | |||
| Investments | 12 | 9,813,885 | 8,953,727 |
| Current assets | |||
| Debtors | 13 | 200,488 | 223,726 |
| Cash at bank and in hand | 170,073 | 5,992 | |
|
|
||
| 370,561 | 229,718 | ||
| Creditors: amounts falling due within one year | 14 | (1,399,212) | (877,363) |
|
|
||
| Net current liabilities | (1,028,651) | (647,645) | |
|
|
||
| Total assets less current liabilities | 8,785,234 | 8,306,082 | |
| Creditors: amounts falling due after more than one year | 15 | (2,830,250) | (2,490,250) |
|
|
||
| Net assets | 5,954,984 | 5,815,832 | |
|
|
||
| Funds of the charity | |||
| Unrestricted funds | 5,954,984 | 5,815,832 | |
|
|
||
| Total charity funds | 16 | 5,954,984 | 5,815,832 |
|
|
These financial statements were approved by the board of trustees and authorised for issue on 30 January 2025, and are signed on behalf of the board by:
Mr A Klein Trustee
Mr J Sternlicht Trustee
The notes on pages 14 to 23 form part of these financial statements.
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Siva Charitable Fund
Statement of Cash Flows
Year ended 5 April 2024
| Year ended 5 April 2024 | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 139,152 | 270,746 |
| Adjustments for: | ||
| Dividends, interest and rents from investments | (833,748) | (767,431) |
| Other interest receivable and similar income | – | (194) |
| Interest payable and similar charges | 114 | 158 |
| Accrued expenses | 27,740 | 13,755 |
| Changes in: | ||
| Trade and other debtors | 23,238 | 81,768 |
| Trade and other creditors | 494,109 | 497,327 |
|
|
|
| Cash generated from operations | (149,395) | 96,129 |
| Interest paid | (114) | (158) |
| Interest received | – | 194 |
|
|
|
| Net cash (used in)/from operating activities | (149,509) | 96,165 |
|
|
|
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | 833,748 | 767,431 |
| Purchases of other investments | (860,158) | – |
|
|
|
| Net cash (used in)/from investing activities | (26,410) | 767,431 |
|
|
|
| Cash flows from financing activities | ||
| Proceeds from borrowings | 340,000 | (904,040) |
|
|
|
| Net cash from/(used in) financing activities | 340,000 | (904,040) |
|
|
|
| Net increase/(decrease) in cash and cash equivalents | 164,081 | (40,444) |
| Cash and cash equivalents at beginning of year | 5,992 | 46,436 |
|
|
|
| Cash and cash equivalents at end of year | 170,073 |
5,992 |
The notes on pages 14 to 23 form part of these financial statements.
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Siva Charitable Fund
Notes to the Financial Statements
Year ended 5 April 2024
1. General information
Siva Charitable Fund is a charity registered in England and Wales and is unincorporated. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU. The presentation currency of these financial statements is sterling.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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) (Charities SORP (FRS 102) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Notwithstanding the net current liaibilities, the financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the current asset position of the charity and available sources of finance. The Trustees recognise that they have the ability to exercise control over the charity's grant making charitable activities due to the absence of any legally binding obligations.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Other than those stated below, there were no judgements, estimates and assumptions that affected the amounts reported in the year.
Governance costs
Governance Costs include the cost of the preparation and audit of the financial statements and the cost of any legal advice to the trustees on governance or constitutional matters.
Income tax
The charity is not liable to direct taxation (Income Tax) on its income which falls within the various exemptions available to charities. Some of the charities properties are registered for Value Added Tax (VAT) and therefore able to reclaim input tax it suffers on its purchase.
No Deferred tax is recognised in respect of all timing differences at the reporting date as the charity is exemption from Capital Gain Tax (CGT).
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Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
3. Accounting policies (continued)
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
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Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
3. Accounting policies (continued)
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Investment property
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.
Subsequent to initial recognition -
i. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and
ii. No depreciation is provided in respect of investment properties applying the fair value model.
Freehold properties held for investment have been revalued by Mr J Sternlicht, a trustee, who is considered to have the experience and expertise required to undertake such an exercise.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.
Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.
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Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
3. Accounting policies (continued)
Investments in associates (continued)
Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.
Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.
Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
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Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
3. Accounting policies (continued)
Financial instruments (continued)
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Investment income
| Investment income | ||||
|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Income from investment properties | 833,748 | 833,748 | 767,431 | 767,431 |
| Bank interest receivable | – | – | 194 | 194 |
|
|
|
|
|
| 833,748 | 833,748 | 767,625 | 767,625 | |
|
|
|
|
5. Investment management costs
| Investment management costs | ||||
|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Portfolio management | 89,944 | 89,944 | 83,161 | 83,161 |
| Rent collection | 28,888 | 28,888 | 30,168 | 30,168 |
| Property repairs and maintenance | 27,191 | 27,191 | 66,890 | 66,890 |
| Mortgage interest | 266,344 | 266,344 | 138,647 | 138,647 |
| Finance charges | 17,382 | 17,382 | 7,725 | 7,725 |
|
|
|
|
|
| 429,749 | 429,749 | 326,591 | 326,591 | |
|
|
|
|
- 18 -
Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
6. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Grants to institutions | 254,600 | 254,600 | 126,000 | 126,000 |
| Support costs | 10,247 | 10,247 | 44,288 | 44,288 |
|
|
|
|
|
| 264,847 | 264,847 | 170,288 | 170,288 | |
|
|
|
|
7. Expenditure on charitable activities by activity type
| Grant funding | Total funds | Total fund | ||
|---|---|---|---|---|
| of activities | Support costs | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Grants to institutions | 254,600 | – | 254,600 | 126,000 |
| Governance costs | – | 10,247 | 10,247 | 44,288 |
|
|
|
|
|
| 254,600 | 10,247 | 264,847 | 170,288 | |
|
|
|
|
8. Analysis of support costs
| Legal and | ||||||
|---|---|---|---|---|---|---|
| other | Other | |||||
| professional | Accountancy | finance | ||||
| fees | fees | Audit fees | costs | Total 2024 | Total 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Governance costs | 433 | 4,000 | 5,700 | 114 | 10,247 | 44,288 |
|
|
|
|
|
|
|
| Analysis of grants | ||||||
| 2024 | 2023 | |||||
| £ | £ | |||||
| Grants to institutions | ||||||
| Amud Hatzdokoh | Trust | 20,000 | 50,000 | |||
| Alte Feiga Trust | – | 7,500 | ||||
| Beis Ruchel Dsatmar (London) | Limited | – | 10,000 | |||
| Bnos Jerusalem | – | 10,000 | ||||
| Chevras Mooz Ladol | 10,000 | 9,500 | ||||
| UTRY Limited | 12,500 | – | ||||
| Vyoel Moshe Charitable Trust | 10,000 | – | ||||
| Yesamach Levav | – | 1,000 | ||||
| Beis Hatalmud Trust | 7,500 | – | ||||
| Lechem Shlomo | 10,000 | – | ||||
| Collel Chibath Yerushalayim | 10,000 | – | ||||
| Other donations below £7,500 | 174,600 | 38,000 | ||||
|
|
|||||
| 254,600 | 126,000 | |||||
|
|
|||||
| Total grants | 254,600 |
126,000 |
9. Analysis of grants
- 19 -
Notes to the Financial Statements (continued)
Siva Charitable Fund
Year ended 5 April 2024
9. Analysis of grants (continued)
The grants made during the year were for the following purposes:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Advancement of Jewish Education | 101,550 | 45,800 |
| Advancement of the Jewish Faith | 57,000 | 38,100 |
| Charitable Purposes | 96,050 | 42,100 |
|
|
|
| Total | 254,600 | 126,000 |
|
|
|
| Auditors remuneration | ||
| 2024 | 2023 | |
| £ | £ | |
| Fees payable for the audit of the financial statements | 5,700 | 6,250 |
|
|
10. Auditors remuneration
11. Trustee remuneration and expenses
The charity has no employees other than its 3 trustees all of whom give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2023: £nil).
The charity did not meet any expenses (2023 :£nil) incurred by trustees for services provided to the charity.
12. Investments
| Investments | |
|---|---|
| Investment | |
| properties | |
| £ | |
| Cost or valuation | |
| At 6 April 2023 | 8,953,727 |
| Additions | 860,158 |
|
|
| At 5 April 2024 | 9,813,885 |
|
|
| Impairment | |
| At 6 April 2023 and 5 April 2024 | |
| Carrying amount | |
| At 5 April 2024 | 9,813,885 |
|
|
| At 5 April 2023 | 8,953,727 |
All investments shown above are held at valuation.
Investment properties
The fair value of the investment property has been arrived at on the basis of a valuation carried at 5th April 2024 by Mr J Sternlicht, a trustee, who is considered to have the experience and expertise required to undertake such an exercise.
- 20 -
Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
13. Debtors
| 13. | Debtors | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Trade debtors | 113,357 | 148,182 | |
| Other debtors | 87,131 | 75,544 | |
|
|
||
| 200,488 | 223,726 | ||
|
|
||
| 14. | Creditors: amounts falling due within one year | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Bank loans and overdrafts | 160,000 | 160,000 | |
| Trade creditors | 6,618 | – | |
| Accruals and deferred income | 84,584 | 56,844 | |
| Social security and other taxes | 22,613 | 20,668 | |
| Amounts due to connected undertakings | 1,076,349 | 592,276 | |
| Other creditors | 49,048 | 47,575 | |
|
|
||
| 1,399,212 | 877,363 | ||
|
|
||
| 15. | Creditors: amounts falling due after more than one year | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Bank loans and overdrafts | 2,830,250 | 2,490,250 | |
|
|
||
| 16. | Analysis of charitable funds | ||
| Unrestricted funds |
| Unrestricted funds | ||||
|---|---|---|---|---|
| At | At | |||
| 6 April 2023 | Income | Expenditure | 5 April 2024 | |
| £ | £ | £ | £ | |
| General funds | 3,974,722 | 833,748 | (694,596) | 4,113,874 |
| Fair value reserve | 1,841,110 | – | – | 1,841,110 |
|
|
|
|
|
| 5,815,832 | 833,748 | (694,596) | 5,954,984 | |
|
|
|
|
|
| At | At | |||
| 6 April 2022 | Income | Expenditure | 5 April 2023 | |
| £ | £ | £ | £ | |
| General funds | 3,703,976 | 767,625 | (496,879) | 3,974,722 |
| Fair value reserve | 1,841,110 | – | – | 1,841,110 |
|
|
|
|
|
5,545,086 |
767,625 |
(496,879) |
5,815,832 |
- 21 -
Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
17. Analysis of net assets between funds
| Analysis of net assets between funds | |||
|---|---|---|---|
| Unrestricted | Total Funds | ||
| Funds | 2024 | ||
| £ | £ | ||
| Tangible fixed assets | 9,813,885 | 9,813,885 | |
| Current assets | 370,561 | 370,561 | |
| Creditors less than 1 year | (1,399,212) | (1,399,212) | |
| Creditors greater than 1 year | (2,830,250) | (2,830,250) | |
|
|
||
| Net assets | 5,954,984 | 5,954,984 | |
|
|
||
| Unrestricted | Total Funds | ||
| Funds | 2023 | ||
| £ | £ | ||
| Tangible fixed assets | 8,953,727 | 8,953,727 | |
| Current assets | 229,718 | 229,718 | |
| Creditors less than 1 year | (877,363) | (877,363) | |
| Creditors greater than 1 year | (2,490,250) | (2,490,250) | |
|
|
||
| Net assets | 5,815,832 | 5,815,832 | |
|
|
||
| Financial instruments | |||
| The carrying amount for each category of financial instrument is as follows: | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Financial assets that are debt instruments measured at amortised | cost | ||
| Financial assets that are debt instruments measured at amortised | |||
| cost | 364,634 | 227,558 | |
|
|
||
| Financial liabilities measured at amortised cost | |||
| Financial liabilities measured at amortised cost | 4,206,849 | 3,346,945 | |
|
|
||
| Analysis of changes in net debt | |||
| At | At | ||
| 6 Apr 2023 | Cash flows | 5 Apr 2024 | |
| £ | £ | £ | |
| Cash at bank and in hand | 5,992 | 164,081 | 170,073 |
| Debt due within one year | (160,000) | – | (160,000) |
| Debt due after one year | (2,490,250) | (340,000) | (2,830,250) |
|
|
|
|
| (2,644,258) | (175,919) | (2,820,177) | |
|
|
|
18. Financial instruments
19. Analysis of changes in net debt
- 22 -
Siva Charitable Fund
Notes to the Financial Statements (continued)
Year ended 5 April 2024
20. Related parties
Included in grants to institutions is the following donations made to related parties: £Nil (2023: £10,000) to Beis Ruchel D'Satmar (London) Limited, £5,000 (2023: £Nil) made to Satmar Nursery Trust, £5,000 (2023: £Nil) made to Talmud Torah Education Limited, £12,500 (2023: £Nil) made to UTRY, £10,000 (2023: £Nil) made to Vyoel Moshe Charitable Trust, £5,000 (2023: £Nil) to Y G S Yeshiva Gedola Seminar and £5,000 (2023: £Nil) to Yeshiva Gedoilah Torah Veyirah Limited. These charities have Trustees or or family members who are Trustees in common with Siva Charitable Fund.
The amounts due to connected undertakings include £Nil (2023: £18,000) due to Bergfeld Co. Limited, £4,276 (2023: £4,276) due to Merlina Limited, £60,000 (2023: £60,000) due to Severnate Co. Limited, £690,000 (2022:£430,000) due to Ashbridge Properties Limited, £80,000 (2023: £80,000) due to Bakerloo Limited, £220,833 (2023: £Nil) due to Worldstar Properties Limited, £3,240 (2023: £Nil) due to Respect Properties Limited and £18,000 (2023: £Nil) due to Newincco 824 Limited. The Trustees are numbered amongst the directors of these companies. All loans are interest free and repayable on demand.
- 23 -