Charity Registration No. 283397
AHAVAT SHALOM CHARITY FUND
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
AHAVAT SHALOM CHARITY FUND
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr A S Abraham Mrs A Abraham Mr A Hillel Mr E Hillel Mr E Shasha Charity number 283397 Principal address 9 Brentwood Lodge Holmdale Gardens London NW4 2LY Auditor RDP Newmans LLP Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW Bankers National Westminster Bank PLC Hendon London United Kingdom NW4 4DS
AHAVAT SHALOM CHARITY FUND
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Statement of Trustees' responsibilities | 5 |
| Independent auditor's report | 6 - 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 - 18 |
AHAVAT SHALOM CHARITY FUND
TRUSTEES' REPORT FOR THE YEAR ENDED 30 APRIL 2021
The Trustees present their report and financial statements for the year ended 30 April 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The charitable objects of Ahavat Shalom Charity Fund are given below and are taken from the Trust Deed, as follows:
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To maintain support and further such of the purposes and activities of the Yeshiva Chevrat Ahavat Shalom ("the School") as are charitable according to English Law.
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To advance education in Israel and wheresoever the School shall carry on its activities.
Ahavat Shalom Charity Fund operates with the aim of raising funds in order to help fund the Yeshiva Chevrat Ahavat Shalom School and its affiliated institutions in Israel. These institutions include:
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Gavriel Sar Yisrael
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Bnot Elisheva
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Kehilot Yisrael
In this context the Trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission in relation to the activities being for the public benefit , as well as , the Equalities Act 2010 when reviewing the Charity's aims and objectives and in planning future activities .
Ahavat Shalom Charity Fund's objectives for the year are to maintain, support and further the activities of Yeshiva Chevrat Ahavat Shalom School, Gavriel Sar Yisrael, Bnot Elisheva, Kehilot Yisr a el Education and Cultural Center , and further advance education in Israel, as follows:
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Fundraising - Publici s ing Yeshiva Chevrat Ahavat Shalom School, its activities and The Kehillot Yisrael Museum and Cultural Centre and their respective activities.
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Payments to Yeshiva Chevrat Ahavat Shalom School and Gavriel Sar Yisrael providing student grants and funding for construction as and when required.
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Kehilot Yisrael Education and Cultural Center - To promote, administer and remit the donations received.
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Remittance of donations received to Bnot Elisheva as and when required.
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To fund capital infrastructure as improved educational facilities
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To fund salaries for high-quality educators
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To fund student stipends to enable outstanding students to pursue their studies.
To meet these objectives, the Trustees aim to reach out to various donors to collect donations and to publici s e Yeshiva Chevrat Ahavat Shalom School, Gavriel Sar Yisrael, Bnot Elishev a, Kehilot Yisrael Education and Cultural Center and their respective activities.
To assess whether these objectives have been achieved, the Trustees review the amount of monies received for charitable purposes and amount of monies remitted to the Yeshiva Chevrat Ahavat Shalom Institutions in the year .
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AHAVAT SHALOM CHARITY FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
Achievements and performance
The results for the year are set out in the Statement of Financial Activities on page 9 .
The Trustees collected various donations amounting to £1,694,649 (2020: £734,424) during the year.
During the year, the Trustees remitted £3,153,062 (2020: £5,025,813) to institutions in Israel and have been successful in achieving the objectives set. The charity's beneficiaries are, therefore, able to provide better quality facilities and teaching services by provision of buildings, equipment, teachers to school children and student grants.
In the past year, beneficiary charities achieved the following:
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Yeshivat Chevrat Ahavat Shalom : The Yeshiva boasts a high calib r e student body with 1 7 0 carefully selected fulltime scholars, and 1, 8 00 students in an evening study program with 60 branches throughout Israel .
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Gavriel Sar Yisrael : Gavriel Sar Yisrael hosts a constantly growing student body of over 1,000, including, approximately 750 full time married students, an additional 150 students in evening learning programs and approximately 150 workers and activists for youth programs consisting of approximately 6 ,000 youths. Gavriel Sar Yisrael is in completion stages for its Modiin Elite Yeshiva building. Advancements are being made in the Mount Zion construction project which aims to educate its visitors in Jewish history and host an educational youth center as well as a full time learning center for its ever-growing number of students.
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Kehilot Yisrael Education and Cultural Center : This organisation is advancing in its capital development project for a cultural educational centre that will offer an interactive space to educate and train people in Jewish History and Culture.
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Bnot Elisheva : This High School and college has a student body of 1,700. Students achieve outstanding results in all subjects and the school is recognised by the Israeli Ministry of Education and also registered as a government institute for Technology and Science Training.
Financial review
Ahavat Shalom Charity Fund has maintained its healthy financial position, with closing fund balances amounting to £2,745,923 (2020: £4,311,989) of which no funds relate to restricted funds. Furthermore, an amount of £1,976,436 (2020: £1,976,436) within the closing unrestricted fund balance is designated for specific purposes. Hence, the total unrestricted reserves the charity holds amounts to £769,487 (2020: £2,335,553) at the end of the reporting period after making allowance for restricted and designated funds.
The principal funding source was the donations received from various donors.
The total unrestricted donations received by Ahavat Shalom Charity Fund reached £923,051 (2020: £734,424). An amount of £2,381,464 (2020: £4,782 , 359) was sent to the named institutions in Israel to fund charitable activities and related support costs.
The total restricted donations received by Ahavat Shalom Charity Fund reached £771,598 (2020: £nil). An amount of £771,598 (2020: £nil) was remitted to Gavriel Sar Yisrael to fund the student programme. Ahavat Shalom Charity Fund remitted an amount of £nil (2020: £243,454) to Kehilot Yisrael Education and Cultural Center project to fund capital development costs .
The charity saw a foreign exchange loss of £73,370 (foreign exchange gain in 2020: £79,619).
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AHAVAT SHALOM CHARITY FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
Reserves policy
The year’s deficit has reduced the unrestricted fund to £2,745,923 (2020: £4,311,989). Of this amount, £1,976,436 will be held in the designated fund for Bnot Elisheva, and the £769,487 is ‘free’. Of these ‘free’ funds, £362,582 has been expended post year end thus far, in accordance with the charitable objectives. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a minimum level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. The intention of the charity is to make further payments to the Yeshiva Chevrat Ahavat Shalom School and its affiliated institutions in Israel as and when required in the future. This policy will provide adequate funds to meet current and anticipated future liabilities and provide financial flexibility in the event of an adverse drop in donations received.
Investment policy
In accordance with the Trust Deed, the Trustees have the power to invest in such assets as they see fit. The charity has a policy of keeping any funds in short-term deposits which can be accessed readily should the School require funds urgently.
Plans for the future
The Trustees intend to continue their fundraising efforts in the coming years and as they have in the past proven to be successful, they have no current plans to change them materially.
The Trustees also intend to remit funds to advance education in Israel and wheresoever the Yeshiva Chevrat Ahavat Shalom School shall carry on its activities.
The Trustees have assessed the impact of the coronavirus pandemic on the charity and are of the opinion that this should not materially impact the charity in the long term as there have been no observed changes to donations received.
Structure, governance and management
The C harity is governed by its Trust deed adopted 17 September 1981 as amended 6 January 2000 and last amended on 12 January 2017 . The Charity's reference and administrative details are as set out within these financial statements. The Charity was established under a Constitution which established the objects and powers of the Charity and is governed by constitution of Trust deed. Furthermore, the Charity has a safeguarding policy that applies to all staff and Trustees, which has been detailed in the Trustee Handbook.
History
Ahavat Shalom Charity Fund, a registered charity [charity number: 283397], was originally established in 1981 to support and further the activities of the Yeshiva Chevrat Ahavat Shalom School. In 2012 the School established Kehilot Yisrael Education and Cultural Center , thereafter the Charity revised its objectives to further advance education in Israel, and supported wider institutions in Israel such as Gavriel Sar Yisrael and Bnot Elisheva.
The Trustees who served during the year were:
Mr A S Abraham Mrs A Abraham Mr A Hillel Mr E Hillel Mr E Shasha
Recruitment, appointment and terms of office of Trustees
Trustees are appointed in accordance with the Trust Deed and subsequent amendment.
The Charity has the power to appoint additional Trustees as it sees fit.
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AHAVAT SHALOM CHARITY FUND
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
Operations and staffing
The Trustees collectively manage the charity with all executive decisions being made by the Trustees.
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.
Coronavirus pandemic
The Trustees have assessed the impact of the global coronavirus pandemic and subsequent intervention from governments worldwide. The charity has not seen a significant change in donations received from donors. Furthermore, Yeshiva Chevrat Ahavat Shalom School and its affiliated institutions in Israel have adapted to social distancing measures and travel restrictions in force as a result of the pandemic through digital technology to continue to provide the educational programmes. The Trustees monitor the situation and respond to changes as necessary.
Introduction and training of Trustees
All Trustees are now already familiar with the practical work of the c harity. Induction procedures are in place for new Trustees, with mechanisms in place to keep all the Trustees abreast of developments in the sector.
Arrangements for setting the pay and remuneration for the key management personnel
The Trustees consider the Board of Trustees as comprising the Key Management Personnel of the Charity in charge of directing and controlling the Charity and running and operating the Charity on a day to day basis. All Trustees give their free time freely and no Trustee received remuneration in the year. Details of related party transactions are disclosed in Note 18 to the financial statements .
Staff pay will be reviewed per staff contracts . In view of the nature of the Charity, the Trustees will normally benchmark against pay levels in other charities of similar size .
Fundraising
The Board of Trustees supports raising funds from the public in relation to our core activities. No professional fundraisers or third party commercial participators are used.
Related parties
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Aggregate donations received from related parties without conditions amounted to £39,200 (2020: £24,313)
for the year.
During the year, the charity remitted $750,000 and £1,917,180 (2020: $2,630,000 and £1,350,000) to Gavriel Sar Yisrael, a charity in which Mr A Hillel is also a Trustee.
The Trustees' r eport was approved by the Board of Trustees.
Mr A S Abraham
Trustee Dated: 29 November 2021
Mrs A Abraham Trustee Dated:29 November 2021
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AHAVAT SHALOM CHARITY FUND
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 30 APRIL 2021
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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AHAVAT SHALOM CHARITY FUND
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF AHAVAT SHALOM CHARITY FUND
Opinion
We have audited the financial statements of Ahavat Shalom Charity Fund (the ‘charity’) for the year ended 30 April 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 30 April 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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AHAVAT SHALOM CHARITY FUND
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AHAVAT SHALOM CHARITY FUND
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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the s tatement of Trustees' r esponsibilities, 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.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Charity Commission Regulations , Charities Act 2011, Statement of recommended practice (SORP FRS102), taxation legislation and data protection, anti-bribery, employment, and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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AHAVAT SHALOM CHARITY FUND
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AHAVAT SHALOM CHARITY FUND
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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reviewed and tested journal entries to identify unusual transactions and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
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assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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reviewing and agreeing financial statement disclosures and testing to underlying supporting documentation;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with HMRC and bankers.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the Charityʼs trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charityʼs trustees those matters we are required to state to them in an auditorʼs 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 Charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.
| RDP Newmans LLP | 30 November 2021 |
|---|---|
| Chartered Accountants | |
| Statutory Auditor | Lynwood House |
| 373-375 Station Road | |
| Harrow | |
| Middlesex | |
| HA1 2AW |
RDP Newmans LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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AHAVAT SHALOM CHARITY FUND
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 APRIL 2021
| Unrestricted Restricted TotalUnrestricted funds funds funds 2021 2021 2021 2020 Notes £ £ £ £ Income and endowments from: Donations and legacies 3 923,051 771,598 1,694,649 734,424 Investments 4 1,423 - 1,423 33,073 Other income 5 - - - 79,619 Total income 924,474 771,598 1,696,072 847,116 Expenditure on: Raising funds 6 581 - 581 715 Charitable activities Education 7 2,381,464 771,598 3,153,062 4,782,359 Total charitable expenditure 2,381,464 771,598 3,153,062 4,782,359 Other 11 108,495 - 108,495 86,353 Total resources expended 2,490,540 771,598 3,262,138 4,869,427 Net expenditure for the year/ Net movement in funds (1,566,066) - (1,566,066) (4,022,311) Fund balances at 1 May 2020 4,311,989 - 4,311,989 8,334,300 Fund balances at 30 April 2021 2,745,923 - 2,745,923 4,311,989 |
Restricted Total funds 2020 2020 £ £ - 734,424 - 33,073 - 79,619 - 847,116 - 715 243,454 5,025,813 243,454 5,025,813 - 86,353 243,454 5,112,881 (243,454) (4,265,765) 243,454 8,577,754 - 4,311,989 |
|---|---|
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AHAVAT SHALOM CHARITY FUND
BALANCE SHEET
AS AT 30 APRIL 2021
| Notes Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Income funds Unrestricted funds Designated funds 15 General unrestricted funds 15 |
2021 £ £ 10,506 2,747,417 2,757,923 (12,000) 2,745,923 1,976,436 769,487 2,745,923 2,745,923 |
2020 £ £ 10,467 4,324,761 4,335,228 (23,239) 4,311,989 1,976,436 2,335,553 4,311,989 4,311,989 |
|---|---|---|
The notes at pages 12 to 18 form part of these accounts.
The financial statements were approved by the board of Trustees and authorised for issue on 29 November 2021 and are signed on its behalf by:
Mr A S Abraham Mrs A Abraham Trustee Trustee
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AHAVAT SHALOM CHARITY FUND
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2021
| Notes Cash flows from operating activities Cash absorbed by operations 18 Investing activities Investment income received Net cash generated from investing activities Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2021 £ £ (1,578,767) 1,423 1,423 - (1,577,344) 4,324,761 2,747,417 |
2020 £ £ (4,289,634) 33,073 33,073 - (4,256,561) 8,581,322 4,324,761 |
|---|---|---|
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021
1 Accounting policies
Charity information
Ahavat Shalom Charity Fund is an unincorporated Charity registered in England and Wales. The principal address is 9 Brentwood Lodge, Holmdale Gardens, London, NW4 2LY. The Charity is registered at Charities Commission with registration number 283397.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to 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.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
D onations are recognised on receipt or once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Investment income is recognised on a receivable basis.
1.5 Expenditure
Costs of generating funds are those costs incurred in attracting and administering voluntary income.
Expenditure on charitable activities include both direct costs and those costs incurred in support of the charitable expenditure and have been allocated to the sole charitable activity.
Other expenditure includes the costs of any legal advice to the trustees on governance or constitutional matters, external accountancy and audit costs.
The charity is not registered for VAT so all expenses shown in the Statement Of Financial Activities and notes to the accounts are shown gross (i.e. inclusive of VAT).
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
1 Accounting policies
(Continued)
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.8 Foreign exchange
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities demoniated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of financial activities ; gains recorded as other income and all losses as a support cost of the relevant activity.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the view of the Trustees, there are no significant accounting estimates and judgements applied.
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
3 Donations and legacies
| 4 5 6 |
Unrestricted Restricted TotalUnrestricted funds funds funds 2021 2021 2021 2020 £ £ £ £ Donations and gifts 923,051 771,598 1,694,649 734,424 Investments UnrestrictedUnrestricted funds funds 2021 2020 £ £ Interest receivable 1,423 33,073 Other income TotalUnrestricted funds 2021 2020 £ £ Gain on foreign exchange - 79,619 Raising funds UnrestrictedUnrestricted funds funds 2021 2020 £ £ Costs of generating funds Support costs 581 715 581 715 |
|---|---|
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
7 Charitable activities
| Activities undertaken directly Analysis by fund Unrestricted funds Restricted funds Auditor's remuneration The analysis of auditor's remuneration is as follows: Fees payable to the charity's auditor and associates: Audit of the charity's annual accounts Non-audit services All other non-audit services |
Education Education 2021 2020 £ £ 3,153,062 5,025,813 2,381,464 4,782,359 771,598 243,454 3,153,062 5,025,813 2021 2020 £ £ 8,400 11,520 4,110 6,960 |
|---|---|
8 Auditor's remuneration
9 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year nor were any expenses reimbursed to them.
10 Employees
The average monthly number of employees during the year was:
| There were no employees whose annual remuneration was £60,000 or more. | 2021 Number 1 |
2020 Number - |
|---|---|---|
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
11 Other
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Legal and professional fees | 19,955 | 68,353 | |
| Wages and salaries | 3,170 | - | |
| Foreign exchange loss | 73,370 | - | |
| Audit and accountancy fees | 12,000 | 18,000 | |
| 108,495 | 86,353 | ||
| 12 | Debtors | ||
| 2021 | 2020 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | 200 | 8,325 | |
| Prepayments and accrued income | 10,306 | 2,142 | |
| 10,506 | 10,467 | ||
| 13 | Creditors: amounts falling due within one year | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Trade creditors | - | 10,642 | |
| Other creditors | - | 597 | |
| Accruals and deferred income | 12,000 | 12,000 | |
| 12,000 | 23,239 |
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
AHAVAT SHALOM CHARITY FUND
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Kehilot Yisrael Education and Cultural Center Gavriel Sar |
Balance at 1 May 2019 £ 243,454 - 243,454 |
Resources expended £ (243,454) - (243,454) |
Balance at 1 May 2020 £ - - - |
Movement in funds Incoming resources Resources expended Balance at 30 April 2021 £ £ £ - - - 771,598 (771,598) - 771,598 (771,598) - |
|---|---|---|---|---|
Kehilot Yisrael Education and Cultural Center is a public association established by Yeshiva Chevrat Ahavat Shalom School in 2012 with the long term goal of creating a community museum centre in Jerusalem focusing on Jewish culture and the history of the nation, from its earliest stages until today.
Gavriel Sar Yisrael was founded in 2001 to further advance high level Talmudic Scholarships, provide structured after-school educational programmes for youth, and provide advanced adult study programmes throughout Israel.
15 Unrestricted funds
The income funds of the charity include unrestricted funds, within which designated funds have been set aside by the trustees for specific purposes:
| Designated - Bnot Elisheva Designated - Gavriel Sar Yisrael General Unrestricted Fund |
Balance at 1 May 2019 £ 1,976,436 13,674 6,344,190 8,334,300 |
Movement in funds Incoming resources Resources expended £ £ - - - (13,674) 847,116 (4,855,753) 847,116 (4,869,427) |
Balance at 1 May 2020 £ 1,976,436 - 2,335,553 4,311,989 |
Movement in funds Incoming resources Resources expended Balance at 30 April 2021 £ £ £ - - 1,976,436 - - - 924,474 (2,490,540) 769,487 924,474 (2,490,540) 2,745,923 |
|---|---|---|---|---|
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AHAVAT SHALOM CHARITY FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
15 Unrestricted funds
(Continued)
Founded in 2002, Bnot Elisheva is a High School and College that is recognised by the Ministry of Education and the Government Institute for Technology and Science Training . The college faculty work individually with students with learning disabilities, creating opportunities for them to achieve success and outstanding achievement. A surplus amounting to £ 1,976,436 is being carried forward to next year.
Gavriel Sar Yisrael was founded in 2001 to further advance high level Talmudic Scholarships, provide structured after-school educational programmes for youth, and provide advanced adult study programmes throughout Israel.
The General Unrestricted Fund relates to "free reserves" after allowing for all designated funds.
16 Analysis of net assets between funds
| Unrestricted funds Designated funds 2021 2021 £ £ Fund balances at 30 April 2021 are represented by: Current assets 781,487 1,976,436 Current liabilities (12,000) 769,487 1,976,436 |
TotalUnrestricted funds Designated funds 2021 2020 2020 £ £ £ 2,757,923 2,358,792 1,976,436 (12,000) (23,239) 2,745,923 2,335,553 1,976,436 |
Total 2020 £ 4,335,228 (23,239) 4,311,989 |
|---|---|---|
17 Related party transactions
Aggregate donations received from related parties without conditions amounted to £39,200 (2020: £24,313) for the year.
During the year, the charity remitted $750,000 and £1,917,180 (2020: $2,630,000 and £1,350,000) to Gavriel Sar Yisrael, a charity in which Mr A Hillel is also a Trustee.
18 Cash generated from operations
| 18 | Cash generated from operations | 2021 | 2020 |
| £ | £ | ||
| Deficit for the year | (1,566,066) | (4,265,765) | |
| Adjustments for: | |||
| Investment income recognised in statement of financial activities | (1,423) | (33,073) | |
| Movements in working capital: | |||
| (Increase)/decrease in debtors | (39) | 4,442 | |
| (Decrease)/increase in creditors | (11,239) | 4,762 | |
| Cash absorbed by operations | (1,578,767) | (4,289,634) | |
| 19 | Analysis of changes in net funds |
The charity had no debt during the year.
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