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2021-03-31-accounts

REGISTERED CHARITY NUMBER: 270693

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2021

for

The Talmud Torah Machzikei Hadass Trust

Martin+Heller Statutory Auditor 5 North End Road London NW11 7RJ

The Talmud Torah Machzikei Hadass Trust

Contents of the Financial Statements for the Year Ended 31 March 2021

Page
Report of the Trustees 1 to 2
Report of the Independent Auditors 3 to 5
Statement of Financial Activities 6
Balance Sheet 7
Cash Flow Statement 8
Notes to the Cash Flow Statement 9
Notes to the Financial Statements 10 to 15
Detailed Statement of Financial Activities 16

The Talmud Torah Machzikei Hadass Trust

Report of the Trustees for the Year Ended 31 March 2021

The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity was formed for the advancement of orthodox Jewish religious education, and the promotion of the orthodox jewish religion in any part of the world.To this end the charity has made various grants in the year under review.

Public benefit

The Trustees confirm their compliance with the duty to have due regard to the Public Benefit guidance published by the Charity Commission when reviewing the Charity's aims and objectives in planning future activities.

ACHIEVEMENT AND PERFORMANCE

During the year the charity continued to raise funds, and apply the funds in furtherance of its objectives. The new school building has been completed since the balance sheet date and is now in occupation.

FINANCIAL REVIEW

During the year, the charity's incoming resources exceeded the outgoing resources. The trustees are satisfied with the results for the year. The trustees do not seek to maintain reserves, other than to ensure that they can continue the activities of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is constituted and governed by a Trust Deed dated 12 July 1975.The charity is managed and controlled by the trustees, who meet regularly

Recruitment, Induction and Training:

It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future,the trustees will apply suitable recruitment induction and training procedures.

Risk management

The trustees have identified and reviewed the major risks to which the charity is exposed.Both manual and automated checks are regularly invoked, particularly those relating to the operations and finance of the charity.The trustees are satisfied that these systems and procedures mitigate any perceived risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

270693

Principal address

34 Heathland Road London N16 5LZ

Trustees

J Baumgarten Y M Sternlitcht M J Wind

Page 1

The Talmud Torah Machzikei Hadass Trust

Report of the Trustees

for the Year Ended 31 March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Mr A Heller, FCA Martin+Heller Statutory Auditor 5 North End Road London NW11 7RJ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................

J Baumgarten - Trustee

Page 2

Report of the Independent Auditors to the Trustees of The Talmud Torah Machzikei Hadass Trust

Opinion

We have audited the financial statements of The Talmud Torah Machzikei Hadass Trust (the 'charity') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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 Report of the Independent Auditors 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 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 3

Report of the Independent Auditors to the Trustees of The Talmud Torah Machzikei Hadass Trust

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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:

-Our audit procedures were designed to identify and assess risks of material misstatement in the financial statements, whether due to fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve collusion, forgery, omissions, misrepresentations, or management override of controls. We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner considers the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations.

-There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. Our responsibility is to conclude whether the financial statements represent the underlying financial position and activities of the charity and to ensure that the overall content and presentation of the financial statements gives a fair view.

Page 4

Report of the Independent Auditors to the Trustees of The Talmud Torah Machzikei Hadass Trust

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/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Martin+Heller Statutory Auditor 5 North End Road London NW11 7RJ

Date: .............................................

Page 5

The Talmud Torah Machzikei Hadass Trust

Statement of Financial Activities for the Year Ended 31 March 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Charitable activities
4
Donations
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
31.3.21
Unrestricted
fund
£
155,648
532,484
688,132
280,141
228,851
508,992
179,140
14,914,320
15,093,460
31.3.20
Total
funds
£
1,049,306
507,887
1,557,193
1,135,856
346,497
1,482,353
74,840
14,839,480
14,914,320

The notes form part of these financial statements

Page 6

The Talmud Torah Machzikei Hadass Trust

Balance Sheet 31 March 2021

Notes
FIXED ASSETS
Investment property
9
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
12
NET ASSETS
FUNDS
14
Unrestricted funds
TOTAL FUNDS
31.3.21
Unrestricted
fund
£
23,141,419
130,287
25,385
155,672
(1,101,816 )
(946,144)
22,195,275
(7,101,815 )
15,093,460
15,093,460
15,093,460
31.3.20
Total
funds
£
23,044,503
96,863
25,079
121,942
(1,020,982 )
(899,040)
22,145,463
(7,231,143 )
14,914,320
14,914,320
14,914,320

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

.............................................

J Baumgarten - Trustee

The notes form part of these financial statements

Page 7

The Talmud Torah Machzikei Hadass Trust

Cash Flow Statement

for the Year Ended 31 March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of investment property
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end of
the reporting period
2
31.3.21
£
449,304
(229,926)
219,378
(96,916)
13
(96,903)
50,000
(172,661)
(122,661)
(186)
25,079
24,893
31.3.20
£
(1,330,799 )
(309,240)
(1,640,039 )
(1,183,141 )
52
(1,183,089 )
2,951,813
(128,990)
2,822,823
(305)
25,384
25,079

The notes form part of these financial statements

Page 8

The Talmud Torah Machzikei Hadass Trust

Notes to the Cash Flow Statement for the Year Ended 31 March 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
31.3.21 31.3.20
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 179,140 74,840
Adjustments for:
Interest received (13) (52)
Interest paid 229,926 309,240
Increase in debtors (33,424) (96,863)
Increase/(decrease) in creditors 73,675 (1,617,964 )
Net cash provided by/(used in) operations 449,304 (1,330,799 )
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
31.3.21 31.3.20
£ £
Notice deposits (less than 3 months) 25,385 25,079
Overdrafts included in bank loans and overdrafts falling due within one year (492) -
Total cash and cash equivalents 24,893 25,079
3. ANALYSIS OF CHANGES IN NET DEBT
At 1/4/20 Cash flow At 31/3/21
£ £ £
Net cash
Cash at bank 25,079 306 25,385
Bank overdraft - (492) (492)
25,079 (186) 24,893
Debt
Debts falling due within 1 year (469,332) (6,667) (475,999)
Debts falling due after 1 year (7,231,143 ) 129,328 (7,101,815 )
(7,700,475 ) 122,661 (7,577,814 )
Total (7,675,396 ) 122,475 (7,552,921 )

The notes form part of these financial statements

Page 9

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
31.3.21 31.3.20
£ £
Donations 155,648 1,049,306

continued...

Page 10

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

3. INVESTMENT INCOME

3. INVESTMENT INCOME
31.3.21 31.3.20
£ £
Rents received 532,471 507,835
Deposit account interest 13 52
532,484 507,887
4. CHARITABLE ACTIVITIES COSTS
Rents received
Deposit account interest
4.
CHARITABLE ACTIVITIES COSTS
Rents received
Deposit account interest
4.
CHARITABLE ACTIVITIES COSTS
31.3.21
£
532,471
13
532,484
31.3.21
£
532,471
13
532,484
31.3.21
£
532,471
13
532,484
31.3.20
£
507,835
52
507,887
Donations
5.
GRANTS PAYABLE
Donations
Cosmon Belz
Moreshet Hatorah Ltd
Dover Sholem Community Trust
Clapton Common Boys Club
Belz Foundation Ltd
6.
SUPPORT COSTS
Other resources expended
31.3.21
£
280,141
Grant
funding of
activities
(see note
5)
£
280,141
31.3.20
£
1,135,856
7,200
142,680
84,000
26,261
20,000
280,141
Governance
costs
£
228,851

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

continued...

Page 11

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Charitable activities
Donations
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
9.
INVESTMENT PROPERTY
FAIR VALUE
At 1 April 2020
Additions
At 31 March 2021
AMORTISATION
At 1 April 2020
and 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
Unrestricted
fund
£
1,049,306
507,887
1,557,193
1,135,856
346,497
1,482,353
74,840
14,839,480
14,914,320
£
23,164,503
96,916
23,261,419
120,000
23,141,419
23,044,503

continued...

Page 12

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.21
£
Prepayments and accrued income
130,287
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.21
£
Bank loans and overdrafts (see note 13)
476,491
Other creditors
625,325
1,101,816
12.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.3.21
£
Bank loans (see note 13)
7,101,815
13.
LOANS
An analysis of the maturity of loans is given below:
31.3.21
£
Amounts falling due within one year on demand:
Bank overdrafts
492
Bank loans
475,999
476,491
Amounts falling between one and two years:
Bank loans - 1-2 years
479,332
Amounts falling due between two and five years:
Bank loans - 2-5 years
1,437,996
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
5,184,487
31.3.20
£
96,863
31.3.20
£
469,332
551,650
1,020,982
31.3.20
£
7,231,143
31.3.20
£
-
469,332
469,332
469,332
1,407,996
5,353,815

continued...

Page 13

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

14. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are a
Unrestricted funds
General fund
TOTAL FUNDS
At 1/4/20
£
14,914,320
14,914,320
Incoming
resources
£
688,132
688,132
At 1/4/19
£
14,839,480
14,839,480
s follows:
Incoming
resources
£
1,557,193
1,557,193

continued...

Page 14

The Talmud Torah Machzikei Hadass Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

14. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
At 1/4/19
£
14,839,480
14,839,480
Net
movement
in funds
£
253,980
253,980
At
31/3/21
£
15,093,460
15,093,460

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 2,245,325 (1,991,345 ) 253,980
TOTAL FUNDS 2,245,325 (1,991,345 ) 253,980

15. RELATED PARTY DISCLOSURES

Donations made by the charity include the following amounts which were donated to charities which have trustees in common with The Talmud Torah Machzikei Hadass Trust:

Moreshet Hatorah Ltd 142,680
Clapton Common Boys Club 26,261
Dover Sholem Community Trust 84,000
Cosmon (Belz) Ltd 7,200
Belz Foundation Ltd 20,000

Other creditors include the following loans due to charities which have trustees in common with The Talmud Torah Machzikei Hadass Trust:

Moreshet Hatorah Ltd 574,125
Belz Foundation Ltd 20,000
Dover Sholem Community Trust 30,000

Page 15

The Talmud Torah Machzikei Hadass Trust

Detailed Statement of Financial Activities for the Year Ended 31 March 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Deposit account interest
Total incoming resources
EXPENDITURE
Charitable activities
Grants to institutions
Support costs
Governance costs
Auditors' remuneration
Legal and professional fees
Accountancy
Sundries
Bank charges
Bank loan interest
Finance fees
Total resources expended
Net income
31.3.21
£
155,648
532,471
13
532,484
688,132
280,141
(1,500)
-
(3,575)
4,000
526
229,400
-
228,851
508,992
179,140
31.3.20
£
1,049,306
507,835
52
507,887
1,557,193
1,135,856
2,400
20,857
-
14,000
1,475
269,403
38,362
346,497
1,482,353
74,840

This page does not form part of the statutory financial statements

Page 16