2022-04-30-accounts

Charity registration number 283397

AHAVAT SHALOM CHARITY FUND

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

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 2022

The Trustees present their annual report and financial statements for the year ended 30 April 2022.

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:

• 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.

• 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:

• Gavriel Sar Yisrael

• Bnot Elisheva

• 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 Yisrael Education and Cultural Center, and further advance education in Israel, as follows:

• Fundraising - Publicising Yeshiva Chevrat Ahavat Shalom School, its activities and The Kehillot Yisrael Museum and Cultural Centre and their respective activities.

• Payments to Yeshiva Chevrat Ahavat Shalom School and Gavriel Sar Yisrael providing student grants and funding for construction as and when required.

• Kehilot Yisrael Education and Cultural Center - To promote, administer and remit the donations received.

• Remittance of donations received to Bnot Elisheva as and when required.

• To fund capital infrastructure as improved educational facilities

• To fund salaries for high-quality educators

• 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 publicise Yeshiva Chevrat Ahavat Shalom School, Gavriel Sar Yisrael, Bnot Elisheva, 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.

• 1 -

AHAVAT SHALOM CHARITY FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

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 £697,525 (2021: £1,694,649) during the year.

During the year, the Trustees remitted £1,292,397 (2021: £3,153,062) 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:

• Yeshivat Chevrat Ahavat Shalom : The Yeshiva boasts a high calibre student body with 170 carefully selected fulltime scholars, and 2,000 students in an evening study program with 60 branches throughout Israel.

• Gavriel Sar Yisrael : Gavriel Sar Yisrael hosts a constantly growing student body of over 1,000, including, approximately 850 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 with 120 branches countrywide. Gavriel Sar Yisrael has completed 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 evergrowing number of students.

• 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.

• 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 £2,146,612 (2021: £2,745,923) of which no funds relate to restricted funds. Furthermore, an amount of £1,976,436 (2021: £1,976,436) within the closing unrestricted fund balance is designated for specific purposes. Hence, the total unrestricted reserves the charity holds amounts to £170,176 (2021: £769,487) 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 £697,525 (2021: £923,051). An amount of £1,292,397 (2021: £2,381,464) 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 amounted to £Nil (2021: £771,598). An amount of £Nil (2021: £771,598) was remitted to Gavriel Sar Yisrael to fund the student programme.

The charity saw a foreign exchange gain of £9,305 (foreign exchange loss in 2021: £73,370).

Reserves policy

The year’s deficit has reduced the unrestricted fund to £2,146,612 (2021: £2,745,923). Of this amount, £1,976,436 will be held in the designated fund for Bnot Elisheva, and £170,176 is ‘free’. 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.

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AHAVAT SHALOM CHARITY FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

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 future periods

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.

In addition, Aish Hahesed has been added to the list of institutions the charity will support in the future. Aish Hahesed focuses on providing assistance in the field of learning and continuing education whilst looking to the future. Alongside this, it provides help to the needy, helping them recover from the poverty cycle.

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.

Structure, governance and management

The Charity 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 support 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.

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.

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AHAVAT SHALOM CHARITY FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

Introduction and training of Trustees

All Trustees are now already familiar with the practical work of the charity. 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 time freely and no Trustee received remuneration in the year. Details of related party transactions are disclosed in Note 17 to the financial statements.

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 £27,150 (2021: £39,200) for the year.

During the year, the charity remitted $500,000 and £450,000 (2021: $750,000 and £1,917,180) to Gavriel Sar Yisrael, a charity in which Mr A Hillel is also a Trustee.

Auditor

In accordance with the company's articles, a resolution proposing that RDP Newmans LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

Mr A S Abraham Trustee

Mrs A Abraham Trustee

16 January 2023

• 4 -

AHAVAT SHALOM CHARITY FUND

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 APRIL 2022

The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.

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.

• 5 -

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 2022 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:

• give a true and fair view of the state of the charity’s affairs as at 30 April 2022 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• 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.

• 6 -

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:

• the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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 145 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:

• 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;

• we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;

• 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 charity, 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;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• 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 charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• 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:

• performed analytical procedures to identify any unusual or unexpected relationships;

• 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;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• 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:

• reviewing and agreeing financial statement disclosures and testing to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

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

RDP Newmans LLP 19 January 2023

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 charity under 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 2022

Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income and endowments from: Donations and legacies 3 697,525 - Investments 4 372 - Other income 5 9,305 - Total income 707,202 - Expenditure on: Raising funds 6 516 - Charitable activities Education 7 1,292,397 - Total charitable expenditure 1,292,397 - Other 11 13,600 - Total expenditure 1,306,513 - Net expenditure for the year/ Net movement in funds (599,311) - Fund balances at 1 May 2021 2,745,923 - Fund balances at 30 April 2022 2,146,612 -

Total Unrestricted Restricted Total funds funds 2022 2021 2021 2021 £ £ £ £ 697,525 923,051 771,598 1,694,649 372 1,423 - 1,423 9,305 - - - 707,202 924,474 771,598 1,696,072 516 581 - 581 1,292,397 2,381,464 771,598 3,153,062 1,292,397 2,381,464 771,598 3,153,062 13,600 108,495 - 108,495 1,306,513 2,490,540 771,598 3,262,138 (599,311) (1,566,066) - (1,566,066) 2,745,923 4,311,989 - 4,311,989 2,146,612 2,745,923 - 2,745,923

• 9 -

AHAVAT SHALOM CHARITY FUND

BALANCE SHEET

AS AT 30 APRIL 2022

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 General unrestricted funds 15	2022 £ £ 6,363 2,152,249 2,158,612 (12,000) 2,146,612 1,976,436 170,176 2,146,612 2,146,612 2,146,612	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 2,745,923	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 2,745,923
			2,745,923
			2,745,923

The notes on pages 12 to 18 form part of these financial statements.

The financial statements were approved by the board of Trustees and authorised for issue on 16 January 2023 and are signed on its behalf by:

Mr A S Abraham Trustee

Mrs A Abraham Trustee

• 10 -

AHAVAT SHALOM CHARITY FUND

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2022

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	2022 £ £ (595,540) 372 372 - (595,168) 2,747,417 2,152,249	2021 £ £ (1,578,767) 1,423 1,423 - (1,577,344) 4,324,761 2,747,417

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AHAVAT SHALOM CHARITY FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

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 amounts 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.

Donations 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 2022

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 payments 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 2022

3 Donations and legacies

		Unrestricted	Unrestricted	Restricted	Total
		funds	funds	funds
		2022	2021	2021	2021
		£	£	£	£
	Donations and gifts	697,525	923,051	771,598	1,694,649
4	Investments
				Unrestricted	Unrestricted
				funds	funds
				2022	2021
				£	£
	Interest receivable			372	1,423
5	Other income
				Unrestricted	Total
				funds
				2022	2021
				£	£
	Gain on foreign exchange			9,305	-

6 Raising funds

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Costs of generating funds
Support costs	516	581
	516	581

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AHAVAT SHALOM CHARITY FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

7 Charitable activities

Activities undertaken directly Analysis by fund Unrestricted funds Restricted funds 8 Auditor's remuneration 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 2022 2021 £ £ 1,292,397 3,153,062 1,292,397 2,381,464 - 771,598 2022 2021 £ £ 8,400 8,400 4,500 4,110	Education Education 2022 2021 £ £ 1,292,397 3,153,062 1,292,397 2,381,464 - 771,598 2022 2021 £ £ 8,400 8,400 4,500 4,110
		2,381,464 771,598
		2021 £ 8,400
		4,110

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:

2022	2021
Number	Number
-	1

There were no employees whose annual remuneration was more than £60,000.

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AHAVAT SHALOM CHARITY FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

11 Other

		**Unrestricted **	Unrestricted
		funds	funds
		2022	2021
	Legal and professional fees	1,600	19,955
	Wages and salaries	-	3,170
	Foreign exchange loss	-	73,370
	Audit and accountancy fees	12,000	12,000
		13,600	108,495
12	Debtors
		2022	2021
	Amounts falling due within one year:	£	£
	Other debtors	250	200
	Prepayments and accrued income	6,113	10,306
		6,363	10,506
13	Creditors: amounts falling due within one year
		2022	2021
		£	£
	Accruals and deferred income	12,000	12,000

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:

		Movement in funds	Movement in funds		Movement
					in funds
	Balance at	Incoming	Resources	Balance at	Incoming	Balance at
	1 May 2020	resources	expended	1 May 2021	resources	30 April 2022
	£	£	£	£	£	£
Gavriel Sar	-	771,598	(771,598)	-	-	-

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.

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AHAVAT SHALOM CHARITY FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

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 General Unrestricted Fund	Balance at 1 May 2020 £ 1,976,436 2,335,553 4,311,989	Movement in funds Incoming resources Resources expended £ £ - - 924,474 (2,490,540) 924,474 (2,490,540)	Balance at 1 May 2021 £ 1,976,436 769,487 2,745,923	Movement in funds Incoming resources Resources expended Balance at 30 April 2022 £ £ £ - - 1,976,436 707,202 (1,306,513) 170,176 707,202 (1,306,513) 2,146,612	Movement in funds Incoming resources Resources expended Balance at 30 April 2022 £ £ £ - - 1,976,436 707,202 (1,306,513) 170,176 707,202 (1,306,513) 2,146,612
					2,146,612

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.

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.

The General Unrestricted Fund relates to "free reserves" after allowing for all designated funds.

16

Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted funds Designated funds 2022 2022 £ £ Fund balances at 30 April 2022 are represented by: Current assets 182,176 1,976,436 Current liabilities (12,000) 170,176 1,976,436	Total Unrestricted funds Designated funds 2022 2021 2021 £ £ £ 2,158,612 781,487 1,976,436 (12,000) (12,000) 2,146,612 769,487 1,976,436	Total 2021 £ 2,757,923 (12,000)
		2,745,923

17 Related party transactions

Aggregate donations received from related parties without conditions amounted to £27,150 (2021: £39,200) for the year.

During the year, the charity remitted $500,000 and £450,000 (2021: $750,000 and £1,917,180) to Gavriel Sar Yisrael, a charity in which Mr A Hillel is also a Trustee.

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AHAVAT SHALOM CHARITY FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2022

18 Cash generated from operations Deficit for the year Adjustments for: Investment income recognised in statement of financial activities Movements in working capital: Decrease/(increase) in debtors (Decrease) in creditors Cash absorbed by operations 19 Analysis of changes in net funds The charity had no debt during the year.	2022 2021 £ £ (599,311) (1,566,066) (372) (1,423) 4,143 (39) - (11,239) (595,540) (1,578,767)

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