**CHARITY REGISTRATION NUMBER: 275454** ## **The Melow Charitable Trust Financial Statements** **31 December 2020** ## **COHEN ARNOLD** Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU ## **The Melow Charitable Trust** ## **Financial Statements** ## **Year ended 31 December 2020** ||**Page**| |---|---| |Trustees' annual report|**1**| |Independent auditor's report to the members|**5**| |Consolidated statement of financial activities|**9**| |Parent Charity statement of financial activities|**10**| |Consolidated statement of financial position|**11**| |Parent Charity Balance Sheet|**12**| |Consolidated statement of cash flows|**13**| |Notes to the financial statements|**14**| **The Melow Charitable Trust** **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 December 2020** The trustees present their report and the financial statements of the charity for the year ended 31 December 2020. ## **Reference and administrative details** |**Registered charity name**|The Melow Charitable Trust| |---|---| |**Charity registration number**|275454| |**Principal office**|21 Warwick Grove| ||London| ||E5 9HX| |**The trustees**|Mrs E Weiser| ||Mrs M Spitz| |**Auditor**|Cohen Arnold| ||Chartered accountants & statutory auditor| ||New Burlington House| ||1075 Finchley Road| ||LONDON| ||NW11 0PU| |**Bankers**|Barclays Bank Plc| ||Leicester| ||LE87 2BB| |**Solicitors**|Carpenter Rose| ||26 The Broadway| ||London| ||NW7 3NL| ## **Structure, governance and management** The trust was set up by way of a Deed of Trust on 9 February 1978. ## **Appointment, Training and Recruitment of Trustees** The trustees are long serving and are familiar with the running of the charity. The statutory power of appointing new trustees or a new trustee shall be exercisable by the trustees during their joint lives and thereafter by the survivor of them. It is not currently the intention of the trustees of the charity to appoint new trustees. Should the situation change in the future, the trustees will apply suitable recruitment and training procedures. ## **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 its subsidiary and are satisfied that systems are in place to mitigate those risks. **- 1 -** **The Melow Charitable Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 December 2020** The principal risks to which the company is exposed are: - Liabilities arising from property investment activity - Tenant defaults - Damage to the property from flood, fire or terrorist action - The availability of liquid funds to make grants and donations - The general economic cycle The trustees seek to manage or mitigate such risks wherever possible through such measures as insurance, tenant screening and monitoring, rigorous reviews of acquisition and investment opportunities, external expert advice, monitoring cash and regular monitoring of the economic outlook. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. ## **Grant making policy** 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. Applications for grants are made in writing to the charity or in person to the Trustees by voluntary and community organisations. All donations above £3,000 require approval of all the Trustees and after making the necessary checks, proportional to the level of funding involved, donations are provided through bank transfer. ## **Objectives and activities** The objects of the trust are for general charitable purposes and in particular for the relief of poverty and the advancement of religion and religious education. ## **Aims, objectives and activities for public benefit** The trustees confirm that they have referred to the guidelines contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objects and in planning future activities and setting the grant making policies for the year. This charity was established for general charitable purposes and in particular for the relief of poverty and the advancement of the Jewish religion, especially in the field of education. Donations are made to organisations providing a sound religious education in accordance with the doctrines and principles of traditional Judaism and to institutions set up to provide aid to the Jewish needy, with a view to achieving the objects of the charity and in doing so the charity has complied with its duty to act for the public benefit in accordance with Section 4 of the Charities Act 2011. ## **Investment powers and policy** Under the Trust Deed, the charity has the power to make any investment which the trustees see fit provided that funds so utilised are not immediately required for use in connection with any of its objects. The trustees regularly review the charity's position and needs in respect of the investment policy. ## **Achievements and performance** During the period under review £919,155 (2019: £1,714,065) was distributed in furtherance of the charity's objectives. The analysis of grants can be found in note 10 to the financial statements. **- 2 -** ## **The Melow Charitable Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 December 2020** ## **Group Structure and Relationships** The Trustees of the charity hold on trust for the charity, the share capital of the subsidiary undertaking, Lota Estates Limited. The company, registered in England, is engaged in property investment and its results are incorporated in the consolidated financial statements. Details of the subsidiary undertaking may be found in the note 18 to the financial statements. ## **Financial review** The charity is dependent for its income on the commercial activities of its subsidiary and voluntary donations from companies connected with the trustees. The parent charity also receives a small amount of rental income from its sole investment property. The subsidiary undertaking, Lota Estates Limited, has a portfolio of investment properties and the group’s performance can be seen in the financial statements set out below. The parent charity's investment property brought in income of £57,672, with the subsidiary having £1,067,873 of rental income. The charity also received donation income amounting to £35,000 with a further £5,000 of donated services. The charity has an interest chargeable loan due from a related company. The interest is charged at 7% and the interest receivable in the year totalled £44,138. ## **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. At the year end, £12,288,157 (2019: £12,171,897) was held as unrestricted funds, of which £2,760,483 (2019: £2,630,696) were free reserves. ## **Plans for future periods** The charity plans continuing the activities outlined above in the coming years subject to incoming resources being maintained at a satisfactory level. ## **Covid-19 pandemic and going concern** The Trustees have considered the impact of the Covid-19 pandemic on the income of the Charity and the valuation of the group's assets. The current downturn in the UK economy may lead to a fall in voluntary income of the Charity resulting in the Charity limiting its grant making activities. The full financial effects of the pandemic on the valuation of assets cannot currently be quantified and the Trustees are unable to predict fully the future implications on the Charity's financial affairs. Notwithstanding these uncertainties, the trustees have concluded that it is appropriate for the financial statements to be prepared in accordance with the accounting principles appropriate to a going concern and that there is no material uncertainty to this position, as the trustees have a reasonable expectation that the charity group has adequate resources under all plausible circumstance to continue in operational existence for the foreseeable future by meeting its liabilities and commitments as they fall due. ## **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. **- 3 -** The Meluw Charitable Trust Trustees, Annual Report (roniittuedj 'ear ended 31 December 2020 In preparing (licsL" finaiiLial slalcinLiits. the Iruslees are required iu.. select suitable accountin¥ policie5 and then apply them consistently- observ¢ the methods and principles in the applicable Chariti¢s SORP; tnake judgments and Ilccounting estimates that are reasonable and pNdenl' state whether upplicable UK Accounting Standards have b¢¢n followed. subjcct to any material departures disclosed and explained in th¢ financial Statements; prtpare tlie finanLial statenienL% on the going ooncem basis unl¢ss it is inappropriate to pre5unie (l)at the charity M'ill continu¥ iii busiiiess. The trustee% are respon8ihl¢ tor keeping adequate accountiiig reLurds tliat are SU￿]elent lo shom". explain the charity's transaLticitts aiid disclos¢ with I'easonable accuracy al any tiniL tl)e financial positiun ol- tl)¥ charity and eiiable il)em io cnsure tliai tliL financial staicnients coniply w'ith the Charitie4 Acl 201 I, the applicable C haritics (Accouiits and Reports) Reg)ulation.s. and the proi'isions of th¢ Trust Deed. Thcy are also r¢sponsible for %aleg)udrding the asseL% of the charity and licnce for takin￿ reasonabl¢ steps for tlie preveniiun detecti()n nf frned on behalf of th¢ board of Mrs M Spitz Trusle¢ **The Melow Charitable Trust** ## **Independent Auditor's Report to the Members of The Melow Charitable Trust** ## **Year ended 31 December 2020** ## **Opinion** We have audited the financial statements of The Melow Charitable Trust (the 'charity') for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, parent charity statement of financial activities, consolidated statement of financial position, parent charity balance sheet, consolidated 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 and its subsidiary's affairs as at 31 December 2020 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** 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: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - 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. ## **Emphasis of matter** In forming our opinion of the financial statements, which is not modified, we would draw attention to the material uncertainty as reported in page three of the Trustees’ Annual Report: Covid-19 pandemic and going concern. **- 5 -** **The Melow Charitable Trust** ## **Independent Auditor's Report to the Members of The Melow Charitable Trust** _**(continued)**_ ## **Year ended 31 December 2020** ## **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: - the information given in the trustees' report is inconsistent in any material respect with the financial statements; or - adequate accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - 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. **- 6 -** **The Melow Charitable Trust** ## **Independent Auditor's Report to the Members of The Melow Charitable Trust** _**(continued)**_ ## **Year ended 31 December 2020** ## **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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. - 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. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - 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. - 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. **- 7 -** The Melow Charitable Trust Independent Auditor's Report to the Members of The Melow Charitable Trust (coAiittue Year ended 31 December 2020 We communicate with those charged with governance regarding. among oih¢r matters, the planned scope and timing of the audit 2nd significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use ofour report This report is made solely to the charity's members, &$ a body, in accordance with section 144 of the Charitie5 Act 2011 and regulations made under section 154 of ihat Act. ￿r audit work has been undertaken so that we might state to ihe charity's members those matters we are required to state to them in an auditor's rewrt and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assum¢ responsibility to anyone other than the charity and the charity's members as a IK)dy, for our audit work, for this repor¢ or for the opinions we have fomied. /J Moshe Bron¢r-Cohen (Senior Statutory Auditor) 2511012021 Date For and on behalf of Cohen Arnold Chartered a¢countants & ststutory auditor New Burlington House 1075 Finchl¢y Road LONDON NWII OPU ## **The Melow Charitable Trust** ## **Consolidated Statement of Financial Activities** ## **Year ended 31 December 2020** |||**2020**|**2020**|2019| |---|---|---|---|---| |||Unrestricted||| |||funds|**Total funds**|Total funds| ||**Note**|**£**|**£**|£| |**Income and endowments**||||| |Donations and legacies|**4**|40,000|40,000|125,000| |Investment income|**5**|1,169,703|1,169,703|1,352,274| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Total income**||1,209,703|1,209,703|1,477,274| |||===============================================|===============================================|===============================================| |**Expenditure**||||| |Expenditure on raising funds:||||| |Investment management costs|**6**|(183,998)|(183,998)|(150,166)| |Expenditure on charitable activities|**7,8**|(943,286)|(943,286)|(1,733,299)| |Taxation|**11**|(15,284)|(15,284)|(15,500)| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Total expenditure**||(1,142,568)|(1,142,568)|(1,898,965)| |||===============================================|===============================================|===============================================| |Net gains / (losses) on investments|**12**|49,125|49,125|(284,893)| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Net expenditure and net movement in funds**||116,260|116,260|(706,584)| |||===============================================|===============================================|===============================================| |**Reconciliation of funds**||||| |Total funds brought forward||12,171,897|12,171,897|12,878,481| |||----------------------------------------------------|----------------------------------------------------|----------------------------------------------------| |**Total funds carried forward**||12,288,157
====================================================|12,288,157
====================================================|12,171,897
====================================================| 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 27 form part of these financial statements.** **- 9 -** ## **The Melow Charitable Trust** ## **Parent Charity Statement of Financial Activities** ## **Year ended 31 December 2020** |||**2020**|**2020**|2019| |---|---|---|---|---| |||Unrestricted||| |||funds|**Total funds**|Total funds| ||**Note**|**£**|**£**|£| |**Income and endowments**||||| |Donations and legacies|**4**|676,817|676,817|570,000| |Investment income|**5**|57,672|57,672|185,099| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Total income**||734,489|734,489|755,099| |||===============================================|===============================================|===============================================| |**Expenditure**||||| |Expenditure on raising funds:||||| |Investment management costs|**6**|(6,942)|(6,942)|(6,812)| |Expenditure on charitable activities|**7,8**|(339,789)|(339,789)|(1,148,479)| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Total expenditure**||(346,731)|(346,692)|(1,155,291)| |||===============================================|===============================================|===============================================| |Net gains / (losses) on investments|**12**|(320,623)|(320,623)|(269,821)| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |**Net expenditure and net movement in funds**||67,135|67,135|(670,013)| |||===============================================|===============================================|===============================================| |**Reconciliation of funds**||||| |Total funds brought forward||12,221,022|12,221,022|12,891,035| |||----------------------------------------------------|----------------------------------------------------|----------------------------------------------------| |**Total funds carried forward**||12,288,157|12,288,157|12,221,022| |||====================================================|====================================================|====================================================| 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 27 form part of these financial statements.** **- 10 -** The Melow Charitable Trust Consolidated StAtement of Financial Position 31 December 2020 2020 201Y Nott Fixed 988et8 l-angible fixed asscts Inves¢ni¢nts 17 5.127 18.654 18 10.782,186 10,7R7 186 10,787,313 10.800,840 Current 4sse¢s Debiors Cash at bank and in hand 19 2.823.575 270,897 2,942.?14 369.?61 3,094,472 {333.989) 2,760,483 3.311,475 Creditors: 4mounts falling due wiihitt one year Net ¢urrent assets 20 (680.779) 2.630.696 Total asaetx less eurrenl ligbilities 13.547,796 13,431.53() 21 (1.259.639) (1,259.(1_191 12.288.157 12.171,¥97 Provisions Net assets Funds ofthe eharity Uiir¢sÉricled funds 12.288.157 12,171.897 23 12,288,157 12,171,897 Tot•1 charity funds These finaiicial siateinents were approved bv the board of trustees and authorised for issue 051 .25].1.012021 and are Sibbned Dn bL.l)alf of ih¢ board by.. Mrs E Weiser Tru.8iee The note$ pages 14 to 27 form pArt of theqe fin*•¢1￿1 stxtements. The Melow CharilAble Trnst Parent Charity Balance Sheet 31 December 2020 2020 2019 Note Fixed assets Tangible fixed assets Invesrm¢nts 17 328 438 18 12,917,936 13,237,6?8 12.918,264 13,238.066 Current Assets Debiors Cash al bank and in liand 19 6,875 49.114 40,033 55.989 40.033 Creditors: amounts falling due within one y¢*r Iyet current liabilities 20 (686,096) (1,057,077) {630.107) (1.017.044) 12,288,157 12.221.022 Total ￿Sets le&s eurrent liabilities Net 4ssets 12,288,157 12.2?1.02* Funds of the Charity Unrestricted ￿ndS 12.288,1 j7 12 •21.02? Total charity funds 23 12.288.157 12.2•1.0?? cial slat¢inents w'¥re approved bv th¢ board of trustces and authori5ed for issue on and are sign¢d on behalf of ihc board by.. Mrs E W¢iser I'rustce Tht notes on pagts 14 to 27 form part of these finanei815taitment5. 12 ## **The Melow Charitable Trust** ## **Consolidated Statement of Cash Flows** ## **Year ended 31 December 2020** |||**2020**|2019| |---|---|---|---| |||**£**|£| |**Cash flows from operating activities**|||| |Net expenditure||116,260|(706,584)| |_Adjustments for:_|||| |Depreciation of tangible fixed assets||13,527|13,564| |Net losses on investments||(49,125)|284,893| |Dividends, interest and rents from investments||(1,125,545)|(1,308,088)| |Other interest receivable and similar income||(44,158)|(44,186)| |Interest payable and similar charges||1,488|57| |Taxation||15,284|15,500| |Accrued income||(5,270)|(21,616)| |Donated services – non-cash item||–|–| |Other operating cash flow adjustment||–|–| |_Changes in:_|||| |Trade and other debtors||118,639|741,159| |Trade and other creditors||(345,800)|(59,793)| |||`─────────────`|`─────────────`| |Cash generated from operations||(1,304,700)|(1,085,094)| |Interest paid||(1,488)|(57)| |Interest received||44,158|44,186| |Tax paid||(11,004)|(147,906)| |||`─────────────`|`─────────────`| |Net cash used in operating activities||(1,273,034)|(1,188,871)| |||`═════════════`|`═════════════`| |**Cash flows from investing activities**|||| |Dividends, interest and rents from investments||1,125,545|1,308,088| |Proceeds from sale of other investments||49,125|140,107| |||`─────────────`|`─────────────`| |Net cash from investing activities||1,174,670|1,448,195| |||`═════════════`|`═════════════`| |**Cash flows from financing activities**|||| |Proceeds from borrowings||–|–| |||`─────────────`|`─────────────`| |Net cash used in financing activities||–|–| |||`═════════════`|`═════════════`| |**Net increase/(decrease) in cash and cash equivalents**||(98,364)|259,324| |**Cash and cash equivalents at beginning of year**||369,261|109,937| |||`──────────`|`──────────`| |**Cash and cash equivalents at end of year**|**25**|270,897|369,261| |||`══════════`|`══════════`| **The notes on pages 14 to 27 form part of these financial statements.** **- 13 -** **The Melow Charitable Trust** ## **Notes to the Financial Statements** ## **Year ended 31 December 2020** ## **1. General information** The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 21 Warwick Road, London, E5 9HX. ## **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** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Notwithstanding the net current liabilities in the parent charity, the financial statements have been prepared on a going concern basis given the continued support of the charity’s creditors which are all related parties. ## **No Material Uncertainty Exists** The outbreak of the Covid-19 pandemic in the first six months of 2020 and the associated lockdown has had a negative impact on the macro economy and the particular market that the group’s subsidiary operates in. The Trustees have placed a particular focus on the charity’s going concern assessment and have considered the principal risks to the charity. This assessment has considered the various probable outcomes of the pandemic on the charity group’s operations and its future financial performance over the next 12 months, including a decline in revenues, an increase in impairments and a reduction in property values. Uncertainty surrounding Brexit and the associated potential financial costs may also have a negative impact. These risks are beyond the control of the charity and represent uncertainty to the revenue and cash flow of the charity group for the foreseeable future. Notwithstanding these uncertainties, the trustees have concluded that it is appropriate for the financial statements to be prepared in accordance with the accounting principles appropriate to a going concern and that there is no material uncertainty to this position, as the trustees have a reasonable expectation that the charity group has adequate resources under all plausible circumstance to continue in operational existence for the foreseeable future by meeting its liabilities and commitments as they fall due. **- 14 -** **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **3. Accounting policies** _**(continued)**_ ## **Group Financial Statements** These Financial Statements consolidate the results of the Charity and its subsidiary, Lota Estates Limited, on a line-by-line basis. ## **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 have been no judgements, estimates and assumptions in the year which materially affect the financial statements. ## **Income tax** The Charity is not liable to direct taxation (Income Tax) on its income which falls within the various exemptions available to registered charities. As a result, no Deferred Tax is provided on timing differences. The Charity is not registered for Value Added Tax (VAT) and is therefore unable to reclaim any input tax it suffers on its purchase. Expenditure in the accounts is therefore shown inclusive of VAT where appropriate. The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period for the subsidiary. Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. ## **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. **- 15 -** **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **3. Accounting policies** _**(continued)**_ ## **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: - 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. - legacy income is recognised when receipt is probable and entitlement is established. - 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. ## **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: - expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods. - 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. - 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. ## **Tangible assets** Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities. **- 16 -** **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **3. Accounting policies** _**(continued)**_ ## **Depreciation** Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: Depreciation on the fixtures and fittings of the charity is at 25% (reducing balance) and at 10% (straight line) on the fixtures and fittings of the subsidiary. ## **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. Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. 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 trustees and directors of the subsidiary and are stated at valuation. ## **Acquisitions and disposals of properties** Acquisitions and disposals of properties are considered to take place at the date of legal completion and are included in the financial statements accordingly. ## **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. 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. ## **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. **- 17 -** **The Melow Charitable Trust** **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **3. Accounting policies** _**(continued)**_ ## **Impairment of fixed assets (** _**continued**_ **)** 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. ## **Provisions** Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of financial activities in the period it arises, and is allocated to the appropriate expenditure heading. ## **Financial instruments** A financial asset or a financial liability is recognised only when the entity 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, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 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. ## **4. Donations and legacies** |**Donations and legacies**||||| |---|---|---|---|---| |**Group**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| ||Funds|**2020**|Funds|2019| ||£|**£**|£|£| |**Donations**||||| |Donations|35,000|35,000|120,000|120,000| |Donations - Donated Services||||| |Received|5,000|5,000|5,000|5,000| ||-------------------------------------|-------------------------------------|-------------------------------|-------------------------------| ||40,000|40,000|125,000|125,000| ||=====================================|=====================================|===============================|===============================| **- 18 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **4. Donations and legacies (** _**continued**_ **)** |**4.**|**Donations and legacies (****_continued_)**||||| |---|---|---|---|---|---| ||**Charity**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| |||Funds|**2020**|Funds|2019| |||£|**£**|£|£| ||**Donations**||||| ||Donations|671,817|671,817|565,000|565,000| ||Donations - Donated Services||||| ||Received|5,000|5,000|5,000|5,000| |||-------------------------------------|-------------------------------------|-------------------------------|-------------------------------| |||676,817|676,817|570,000|570,000| |||=====================================|=====================================|===============================|===============================| |**5.**|**Investment income**||||| ||**Group**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| |||Funds|**2020**|Funds|2019| |||£|**£**|£|£| ||Income from investment properties|1,125,545|1,125,545|1,308,088|1,308,088| ||Other investment income|20|20|–|–| ||Other interest receivable|44,138|44,138|44,186|44,186| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |||1,169,703|1,169,703|1,352,274|1,352,274| |||===============================================|===============================================|===============================================|===============================================| ||**Charity**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| |||Funds|**2020**|Funds|2019| |||£|**£**|£|£| ||Income from investment properties|57,672|57,672|185,099|185,099| |||-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------| |||57,672|57,672|185,099|185,099| |||===============================================|===============================================|===============================================|===============================================| |**6.**|**Investment management costs**||||| ||**Group**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| |||Funds|**2020**|Funds|2019| |||£|**£**|£|£| ||Investment management costs|183,998|183,998|150,166|150,166| |||=====================================|=====================================|=====================================|=====================================| ||**Charity**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| |||Funds|**2020**|Funds|2019| |||£|**£**|£|£| ||Investment management costs|6,942|6,942|6,812|6,812| |||=====================================|=====================================|=====================================|=====================================| **- 19 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **7. Expenditure on charitable activities by fund type** |**Group**||Unrestricted|
**Total Funds**|
**Total Funds**|
Unrestricted|
Unrestricted|Total Funds| |---|---|---|---|---|---|---|---| |||Funds||**2020**||Funds|2019| |||£||**£**||£|£| |Charitable activity||919,155|919,155||1,714,065||1,714,065| |Support costs||24,131||24,131||19,234|19,234| |||-----------------------------------------------|-----------------------------------------------|||-------------------------------------|-------------------------------------| |||943,286|943,286||1,733,299||1,733,299| |||===============================================|===============================================|||=====================================|=====================================| |**Charity**||Unrestricted|
**Total Funds**||
Unrestricted||Total Funds| |||Funds||**2020**||Funds|2019| |||£||**£**||£|£| |Charitable activity||324,155|324,155||1,140,065||1,140,065| |Support costs||15,634||15,634||8,414|8,414| |||-----------------------------------------------|--------------------------------------------|||-------------------------------------|-------------------------------------| |||339,789|339,789||1,148,479||1,148,479| |||===============================================|==========================================|||=====================================|=====================================| |**Expenditure on charitable activities**||**by activity type**|||||| |**Group**||Grant|||||| |||funding of|||**Total funds**||Total fund| |||activities|Support costs|||**2020**|2019| |||£||£||**£**|£| |Charitable activity||919,155||–||919,155|1,714,065| |Governance costs||–||24,131||24,131|19,234| |||-----------------------------------------------||-------------------------------|-----------------------------------------------||-------------------------------------| |||919,155||24,131||943,286|1,733,299| |||===============================================||=================================|===============================================||===============================================| |**Charity**||Grant|||||| |||funding of|||**Total funds**||Total fund| |||activities|Support costs|||**2020**|2019| |||£||£||**£**|£| |Charitable activity||324,155||–||324,155|1,140,065| |Governance costs||–||15,634||15,634|8,414| |||-----------------------------------------------||-------------------------------|
-----------------------------------------------||-------------------------------------| |||324,155||15,634||339,789|1,148,479| |||===============================================||==============================|===============================================||===============================================| |**Analysis of support**|**costs**||||||| |||||Interest|||| |||||& Bank||**Total**|Total| ||Accountancy|Audit
Office costs||charges||**2020**|2019| ||£|£|£||£|**£**|£| |Governance costs|11,332|11,138|173||1,488|24,131|19,234| ||====================================|==========================|====================||================|===============================|===============================| ## **8. Expenditure on charitable activities by activity type** ## **9. Analysis of support costs** **- 20 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **10. Analysis of grants** |**Analysis of grants**||| |---|---|---| ||**2020**|2019| ||**£**|£| |**Grants to institutions**||| |Chasdei Aharon Limited|45,000|50,000| |Chesed Shel Emes Limited|43,000|30,000| |College for Higher Rabbinical Studies|35,000|–| |Ezer V'Hatzalah Limited|–|620,010| |Friends of Yeshiva Daas Sholem Shotz|50,300|26,200| |Friends of Zichron Dovid|4,900|61,000| |Hadras Kodesh Trust|5,000|534,000| |Here 2 Help|163,000|–| |Inspirations|47,000|30,000| |North London Foodbank|140,000|–| |Shaarei Chesed Trust|150|30,000| |Sharei Chesed (London)|4,100|56,000| |Start Upright|30,000|50,000| |Tchabe Kollel Limited|102,200|50,000| |The Rehabilitation Trust|100,000|–| |UTA of Boro Park|–|39,050| |Zoreya Tzedokos|50,000|–| |Other donations under £30,000|99,505|137,805| ||-----------------------------------------------|-------------------------------------| ||919,155|1,714,065| ||-----------------------------------------------|-------------------------------------| |Total grants to institutions|919,155|1,714,065| ||===============================================|=====================================| All grants were paid were for alleviation of poverty, education and furtherance of Jewish religion and general charitable purposes. ## **Analysis of grants to institutions:** |**Analysis of grants to institutions:**||| |---|---|---| ||**2020**|2019| ||**£**|£| |General charitable purposes|477,978|540,621| |Advancement of the Jewish Religion|170,123|571,470| |Advancement of Jewish Education|271,054|601,974| ||-----------------------------------------------|-----------------------------------------------| |**Total**|919,155|1,714,065| ||===============================================|===============================================| |**Taxation**||| |**Major components of tax expense**||| ||**2020**|2019| ||**£**|£| |**Current tax:**||| |UK current tax (income)/expense|8,091|(28,610)| |Adjustments in respect of prior periods|7,193|18,776| ||-------------------------------|-------------------------------------| |Total current tax|15,284|(9,834)| ||===============================|=====================================| |**Deferred tax:**||| |Origination and reversal of timing differences|–|25,334| ||-------------------------------|-------------------------------------| |**Taxation**|15,284|15,500| ||===============================|=====================================| **11. Taxation** **- 21 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **12. Net gains/(losses) on investments** |**Net gains/(losses) on investments**||||| |---|---|---|---|---| |**Group**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| ||Funds|**2020**|Funds|2019| ||£|**£**|£|£| |Gains/(losses) on investment property|49,125|49,125|(284,893)|(284,893)| ||=====================================|=====================================|=====================================|=====================================| ||49,125|49,125|(284,893)|(284,893)| ||=====================================|=====================================|=====================================|=====================================| |**Charity**|Unrestricted|**Total Funds**|Unrestricted|Total Funds| ||Funds|**2020**|Funds|2019| ||£|**£**|£|£| |Gains/(losses) on investments in group||||| |undertakings|(320,623)|(320,623)|(269,821)|(269,821)| ||=====================================|=====================================|=====================================|=====================================| ||(320,623)|(320,623)|(269,821)|(269,821)| ||=====================================|=====================================|=====================================|=====================================| |**Net expenditure**||||| |Net expenditure is stated after charging/(crediting):||||| ||||**2020**|2019| ||||**£**|£| |Depreciation of tangible fixed assets|||13,527|13,564| ||||===============================|===============================| |**Auditors remuneration**||||| ||||**2020**|2019| ||||**£**|£| |Fees payable for the audit of the financial statements|||11,138
===============================|11,000
===============================| ## **13. Net expenditure** Net expenditure is stated after charging/(crediting): **14. Auditors remuneration** ## **15. Staff costs** The average head count of employees during the year was Nil (2019: Nil). No employee received employee benefits of more than £60,000 during the year (2019: Nil). ## **16. Trustee remuneration and expenses** The charity has two trustees all of whom give freely of their time and expertise without any form of remuneration or other benefit in kind or cash (2019: £nil). The charity did not meet any expenses (2019: £nil) incurred by the trustees for services provided to the charity. **- 22 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **17. Tangible fixed assets** |**Tangible fixed assets**|||| |---|---|---|---| |**Fixtures and fittings**||**Group**|**Charity**| |||**£**|**£**| |**Cost**|||| |**At 1 January 2020 and 31 December 2020**||144,537|10,362| |||=====================================|=====================================| |**Depreciation**|||| |At 1 January 2020||125,883|9,924| |Charge for the year||13,527|110| |||-------------------------------------|-----------------------------------| |**At 31 December 2020**||139,410|10,034| |||=====================================|===================================| |**Carrying amount**|||| |**At 31 December 2020**||5,127|328| |||=====================================|=====================================| |At 31 December 2019||18,654|438| |||=====================================|=====================================| |**Investments**|||| |**Group**|Investment|Other|| ||properties|investments|**Total**| ||£|£|**£**| |**Valuation**|||| |At 1 January 2020|10,781,974|212|10,782,186| |Additions|–|–|–| |Disposals|–|–|–| ||----------------------------------------------------|----------------|----------------------------------------------------| |**At 31 December 2020**|10,781,974|212|10,782,186| ||====================================================|================|====================================================| |**Impairment**|||| |**At 1 January 2020 and 31 December 2020**||–|–| |||================|====================================================| |**Carrying amount**|||| |**At 31 December 2020**|10,781,974|212|10,782,186| ||====================================================|================|====================================================| |At 31 December 2019|10,781,974|212|10,782,186| ||====================================================|================|====================================================| ## **18. Investments** All investments shown above are held at valuation. The historical cost of the investment properties is £1,905,483. ## **Investment properties** The group's investment properties comprise residential and commercial portfolios. The fair value of the investment properties has been arrived at on the basis of valuation carried out at 31[st] December 2020 by the trustees who are considered to have the experience and expertise required to undertake such an exercise. The valuation is made on an open market value basis by reference to market evidence of transaction prices for similar properties in the same location taking account their age and condition. **- 23 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** |**18.**|**Investments** **_(continued) _**
**Charity**
Investment
properties
Subsidiary
undertakings
**Total**
£
£
**£**
**Cost or valuation**
At 1 January 2020
650,000
12,587,628
13,237,628
Additions
–
–
–
Revaluations
–
(320,623)
(320,623)
----------------------------------------------------
----------------------------------------------------
----------------------------------------------------
**At 31 December 2020**
650,000
12,267,005
12,917,005
====================================================
====================================================
====================================================
**Impairment**
**At 1 January 2020 and 31 December 2020**
–
–
–
================================================
================================================
====================================================
**Carrying amount**
**At 31 December 2020**
650,000
12,267,005
12,917,005
====================================================
====================================================
====================================================
At 31 December 2019
650,000
12,587,628
13,237,628
====================================================
====================================================
====================================================| |---|---| . ## **Subsidiary undertaking** The Trustees of the charity hold on trust for the charity, the full share capital and net assets of the subsidiary undertaking, Lota Estates Limited ( _Company Number 01075993)_ . The company is registered in England and has a coterminous year end with the parent charity. The following figures show the performance of the subsidiary during the year and its position as at 31[st] December 2020: |Lota Estates Limited
Lota Estates Limited
**Debtors**
**Group**
Trade debtors
Other debtors
**Charity**
Trade debtors|**Turnover**
**£**
1,067,873
**Fixed**
**Assets**
**£**
10,136,771|**Net**
**Expenditure**
**£**
1,417,370
**Current**
**Assets**
**£**
3,484,933|**Revaluation**
**Gains**
**£**
–
**Current**
**Liabilities**
**£**
(95,271)|**Taxation**
**£**
(15,284)
**Provisions**|**Profit/(Loss)**| |---|---|---|---|---|---| ||||||| ## **19. Debtors** **- 24 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **20. Creditors: amounts falling due within one year** |**Creditors:** **amounts falling due within one year**||| |---|---|---| |**Group**|**2020**|2019| ||**£**|£| |Trade creditors|83,167|88,919| |Accruals and deferred income|26,220|31,490| |Corporation tax|6,104|1,824| |Other creditors|218,498|558,546| ||-------------------------------------|-------------------------------------| ||333,989|680,779| ||=====================================|=====================================| |**Charity**|**2020**|2019| ||**£**|£| |Trade creditors|–|321,801| |Accruals and deferred income|20,220|20,283| |Amounts owed to group undertakings|446,447|446,447| |Other creditors|218,498|268,546| ||-------------------------------------|-------------------------------------| ||685,165
=====================================|1,057,077
=====================================| ## **21. Deferred tax** The deferred tax included in the statement of financial position is as follows: ||**2020**|2019| |---|---|---| ||**£**|£| |Included in provisions (note 22)|1,259,639|1,259,639| ||===============================================|===============================================| |**Provisions**||| |||**Deferred tax**| |||**(note 21)**| |||**£**| |At 1 January 2020||1,259,639| |Additions||–| |||-----------------------------------------------| |**At 31 December 2020**||1,259,639| |||===============================================| ## **22. Provisions** **- 25 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **23. Analysis of charitable funds** |**Unrestricted funds**|||||| |---|---|---|---|---|---| |**Group**|||||**At**| ||At|||Gains and|**31 December**| ||1 January 2020|Income|Expenditure|losses|**2020**| ||£|£|£|£|£| |General funds|12,171,897|1,209,703|(1,142,568)|49,125|12,288,157| ||====================================================|===============================================|===============================================|=====================================|====================================================| ||||||At| ||At|||Gains and|31 December| ||1 January 2019|Income|Expenditure|losses|2019| ||£|£|£|£|£| |General funds|12,878,481|1,477,274|(1,898,965)|(284,893)|12,171,897| ||====================================================|===============================================|===============================================|=====================================|====================================================| |**Unrestricted funds**|||||| |**Charity**|||||**At**| ||At|||Gains and|**31 December**| ||1 January 2020|Income|Expenditure|losses|**2020**| ||£|£|£|£|£| |General funds|12,221,022|734,489|(346,731)|(320,623)|12,288,157| ||====================================================|===============================================|===============================================|=====================================|====================================================| ||||||At| ||At|||Gains and|31 December| ||1 January 2019|Income|Expenditure|losses|2019| ||£|£|£|£|£| |General funds|12,891,035
====================================================|755,099
===============================================|(1,155,291)
===============================================|(269,821)
=====================================|12,221,022
====================================================| ## **24. Analysis of net assets between funds** |**Analysis of net assets between funds**||| |---|---|---| ||Unrestricted|**Total Funds**| ||Funds|**2020**| ||£|**£**| |Tangible fixed assets|5,127|5,127| |Investments|10,782,186|10,782,186| |Current assets|3,094,472|3,094,472| |Creditors less than 1 year|(333,989)|(333,989)| |Provisions|(1,259,639)|(1,259,639)| ||----------------------------------------------------|----------------------------------------------------| |**Net assets**|12,288,157|12,288,157| ||====================================================|====================================================| ||Unrestricted|Total Funds| ||Funds|2019| ||£|£| |Tangible fixed assets|18,654|18,654| |Investments|10,782,186|10,782,186| |Current assets|3,311,475|3,311,475| |Creditors less than 1 year|(680,779)|(680,779)| |Provisions|(1,259,639)|(1,259,639)| ||----------------------------------------------------|----------------------------------------------------| |**Net assets**|12,171,897|12,171,897| ||====================================================|====================================================| **- 26 -** ## **The Melow Charitable Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 December 2020** ## **25. Analysis of changes in net debt** |**Analysis of changes in net debt**|||||| |---|---|---|---|---|---| ||||||**At**| ||At|1|Jan 2020|Cash flows|**31 Dec 2020**| ||||£|£|**£**| |Cash at bank and in hand|||369,261
`══════════`|(98,364)
`═════════`|270,897
`══════════`| ## **26. Related Party Transactions** ## **Group** During the year, the Charity Group received all its donations (£40,000) from related parties: £35,000 from JLW Investments Limited and £5,000 of donated services from Amingham Limited. Furthermore, £15,000 of management fees were paid to Amingham Limited for the management of the group’s property portfolio. Amingham Limited, is a company where one of the directors is also a director in the subsidiary undertaking. Trade debtors includes £1,832,582 (2019: £1,691,740) due from Amingham Limited. Other debtors include amounts due from the following companies who have directors who are directors or close family of directors and Trustees of the Charity Group: Easton Fabrics Limited £5,085 (2019: £5,085), JLW Properties Limited £Nil (2019: £200,000), ALRW Investments Limited £28,007 (2019: £168,007). All loans are interest free and repayable on demand. Also included in Other debtors is £630,540 (2019: £630,540) due from Marvel Investments Limited. Marvel Investments Limited has directors who are close family with the Trustees of the Charity Group. This loan bares interest at 7% per annum. Other creditors include amounts due to the following companies who have directors who are directors or close family of directors and Trustees of the Charity Group: Wennington Properties Limited £211,249 (2019: £411,249), Falconheights Limited £Nil (2019: £140,000). All loans are interest free and repayable on demand. ## **Charity** During the year, the Charity received all its donations (£671,817) from related parties, £636,817 from its subsidiary Lota Estates Limited, £35,000 from JLW Properties Limited and £5,000 of donated services from Amingham Limited. Included in Amounts owed to group undertakings, is £446,447 (2019: £446,447) due to its subsidiary undertaking. Included in Trade creditors is £Nil (2019: £321,801) due to Amingham Limited, a company where one of the directors is also a director in the subsidiary undertaking. Other creditors include amounts due to the following companies who have directors who are directors or close family of directors and Trustees of the Charity: Wennington Properties Limited £211,249 (2019: £211,249), Arisal Estates Limited £Nil (2019: £50,048). All loans are interest free and repayable on demand. **- 27 -**