**Charity Registration No. 284447**
## **THE BEIS MALKA TRUST**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **THE BEIS MALKA TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr. A Grossman|
|---|---|
||Mr. A Taub|
||Mr. B Hofstatter|
||Mr J Bleichfeld|
|**Charity number**|284447|
|**Principal address**|93 Alkham Road|
||London|
||N16 6XD|
|**Auditor**|Landau Morley LLP|
||325-327 Oldfield Lane North|
||Greenford|
||Middlesex|
||UB6 0FX|
## **THE BEIS MALKA TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent auditor's report|5 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 23|
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees are pleased to present the annual report for the year ending 31 March 2021 which has been a year of tremendous growth in spite of the great challenges it presented.
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 governing document, 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)” (as amended for accounting periods commencing from 1 January 2016).
## **Objectives and activities**
To advance the education of children and young people aged 2 to 16 years from the Jewish community by providing an educational framework which complies with standards identified by the Department for Children, Schools and Families (now the DfE).
To advance the education of the pupils at Beis Malka Nursery and School by providing and assisting in the provision of facilities beyond that which is required.
The objectives are achieved through the delivery of a vibrant, broad and balanced curriculum. Quality teaching is ensured through the provision of comprehensive CPD opportunities.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives. In planning its activities for the year, as can be seen from this Report, the charity recognises that its aims are for the public benefit.
The school uses volunteers during lunch time to supervise children. The school also uses volunteers as assistants in the classroom to support teaching and learning.
## **Achievements and performance**
As soon as Covid-19 struck the UK, the effects were felt by our pupils. Due to the close-knit nature and highlevel of infection in the community we serve, all children knew someone who has been adversely affected by the illness. This led to anxiety and despondency. Moreover, many of their parents were ill-equipped to deal with this crisis, as they battled their own fears and insecurities. It was crucial for us, as a leading community school to step in and empower them to survive these trying times. And we did.
Although we had to close our physical doors, we knew we would never close our hearts on our pupils and their families. We adapted, improvised, crafted and tweaked methods to ensure continued learning and to maintain strong connections for all. Thus, learning continued via a secure teleconference line. Beautifully designed, engaging home-learning packs were delivered weekly to support their learning and keep the motivation strong. Attendance was taken at the beginning and end of every session, with a reward system incentivising high attendance rates in spite of the obvious challenges. We credit our amazing staff for the time, patience and energy invested.
To ensure the safety of our children, our teleconference system was closely monitored at all times. All communications taking place were only listened to by those who had permission to do so using a personal password. It was through this conference line that we reminded our pupils to keep themselves safe and whom and how they could contact if they were anxious, neglected, abused or troubled about something they had experienced, seen or heard. They were likewise encouraged to reach out if they were experiencing academic difficulties with the distance learning. Those struggling were supported through 1:1 intervention and additional learning resources.
- 1 -
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
To keep the girls active and driven, departments delivered stimulating extra-curricular competitions. There was a music competition, where pupils composed moving pieces shared with the rest of their year/school. There was a poetry competition, bringing out much latent talent and excellent compositions. Moreover, the history department invited the girls to use any form of media or writing to present how they imagine this period will be reported on 10 years down the line. It made for an awesome showcase of talent and self-expression. Younger pupils received weekly crafts, and exciting hands-on bake-boxes and activities helping the children entertain themselves constructively whilst reinforcing important skills to support their learning. Children were invited to send in pictures of their artwork which were displayed in newsletters sent to all pupils. Special occasions like the end of a chapter were suitably celebrated. A qualified social-skills practitioner ran a very special program tailored to the challenges children were experiencing, cooped up as they were at home in the company of their siblings. They were encouraged to share, compromise, problem solve, and maintain an upbeat attitude. Exciting gifts were sent to children who were able to report positive achievements.
For the Year 10 and Year 11 pupils who were due to be taking their GCSEs school closure was especially challenging especially with much uncertainty surrounding these exams. However, exceeding all expectation, our girls scored amazingly well on their teacher moderated examinations. This was in spite of the fact that coverage was compromised, evidencing that they had acquired the skills required.
A tremendous undertaking was the early opening in April of our Send Department. Responding to the desperation of our vulnerable pupils and those with special needs, extensive arrangements were made to provide therapy and 1:1 learning sessions for these pupils in Covid-safe premises.
Staff motivation and wellbeing was kept at good levels through support sessions facilitated by the Headteachers and through continued CPD as Headteachers discreetly joined learning sessions.
Parents were sent several questionnaires enquiring about their and their children’s welfare and asking for feedback on provision. This was a great forum for parents to share their opinions, concerns and suggestions greatly impacting provision.
Once the school was able to reopen, the tremendous fallout was apparent, and much time was spent during those initial weeks assessing pupil’s development across departments. Children were assessed academically, socially and emotionally and many forms of support were immediately implemented to address needs.
The school was lucky to benefit from the WAMHS (Wellbeing and Mental Health School project) services offered in Hackney. Under the guidance of their specialist we implemented a three-pronged approach to improve children’s mental health. This focused on the key partners in the children’s wellbeing - parents, teachers and children. Support was given to parents and teachers who benefitted from training sessions and access to appropriate resources which created awareness of issues that could present in children. Parents of children displaying worrying behaviours were invited to meet with the specialist and it was unbelievable how many parents requested the help and how empowered they felt through the guidance received. We also used their expertise to revise our PSHE policy incorporating additional social programmes designed to promote healthy peer relationships and constantly encouraging children to express their feelings, enhancing their emotional wellbeing.
The safety of our pupils is at the heart of everything we do. Policies and procedures were constantly reviewed so that they remained responsive to the times. All necessary risk-assessments were carried out. Staff were kept informed of updates and were as always committed to compliance.
- 2 -
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Financial review**
The results for the year are shown in the attached financial statements.
The risks and uncertainties facing the school are primarily rising costs in all areas. The trustees hope that with the improving economy more parents will be able to pay more to the school which will ensure the school's sustainability.
The Trustees aim to keep reserves of one month's wages, approximately £119,000. The trustees are satisfied that this level of reserves can be reached and maintained in light of the increased funding available from the Local Authority. The Trustees will also explore additional fundraising opportunities in order to maintain the desired level of reserves. The school's leadership team have also introduced tighter control on the spending of funds which should result in significant cost savings.
At the year end, unrestricted free reserves stood at £ 73,586 (2020: £ nil ) . The t rustees are working to increase reserves and at the date of signature the charity held cash reserves in excess of £140,000.
## **Future developments**
Looking ahead we aim to maintain our determination to improve outcomes for all children. In plan are a number of stimulating PSHE projects which will cultivate pupils’ skills and aptitudes like teamwork, communication, and resilience, all crucial to navigating the challenges and opportunities of the modern world.
Moreover, we want to provide further training and awareness for staff in the areas of Mental Health, to further enhance the whole-school approach to promoting the emotional wellbeing of children, especially the many negatively affected by the Coronavirus.
We also wish to deliver a comprehensive agricultural project, relating to the upcoming Shmitta year – a sabbatical year observed every seventh year by farmers in Israel. Pupils will be made aware of many facets of the farming process, meet a farmer observing these laws and help raise funds for charities supporting such farmers.
We wish to revamp the pre-nursery playground, extending the space, laying soft-surfacing and painting the walls to make the space safer, more inviting and suitable for its young beneficiaries.
- 3 -
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Structure, governance and management**
The Beis Malka Trust is a Registered Charity (Charity no. 284447) and is constituted as an unincorporated association. Its objects, powers and other constitutional matters are set out in its Constitution. The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed. The charity is managed and controlled by the trustees, who meet regularly.
It is not the intention of the trustees of the charity to appoint any new trustees for the foreseeable future. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures.
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate the exposure to the major risks.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr. A Grossman
Mr. A Taub Mr. B Hofstatter Mr J Bleichfeld
## **Statement of trustees' responsibilities**
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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.
The trustees' r eport was approved by the Board of Trustees.
## **Mr. B Hofstatter**
Trustee Dated: 21 January 2022
- 4 -
## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BEIS MALKA TRUST**
## **Opinion**
We have audited the financial statements of The Beis Malka Trust (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 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.
- 5 -
## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BEIS MALKA TRUST**
## **Matters on which we are required to report by exception**
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 financial statements is inconsistent in any material respect with the trustees' r eport; 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 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 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.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the directors.
The extent to which our procedures can detect irregularities, including fraud, is detailed below.
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards).
- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
- 6 -
## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BEIS MALKA TRUST**
- Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about the charity' s policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of noncompliance.
- We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
- We performed analytical procedures to identify any unusual or unexpected relationships.
- We examined supporting documents for all material balances, transactions and disclosures.
- We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
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.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
- 7 -
## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BEIS MALKA TRUST**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Landau Morley LLP Chartered Accountants Statutory Auditor**
21 January 2022
325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
Landau Morley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 8 -
## **THE BEIS MALKA TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
479,670
755,201
Other income
**4**
1,519,624
-
**Total income**
1,999,294
755,201
**Expenditure on:**
Raising funds
**5**
13,783
-
Charitable activities
**6**
1,698,865
932,220
Other
**11**
1,551
-
**Total resources expended**
1,714,199
932,220
**Net incoming/(outgoing)**
**resources before transfers**
285,095
(177,019)
Gross transfers
between funds
(87,578)
87,578
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
197,517
(89,441)
Fund balances at 1 April 2020
132,951
105,584
**Fund balances at 31 March**
**2021**
330,468
16,143|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
1,234,871
330,602
770,403
1,519,624
1,555,693
-
2,754,495
1,886,295
770,403
13,783
22,981
-
2,631,085
1,746,276
931,852
1,551
3,300
-
2,646,419
1,772,557
931,852
108,076
113,738
(161,449)
-
(146,601)
146,601
108,076
(32,863)
(14,848)
238,535
165,816
120,432
346,611
132,953
105,584|**Total**
**2020**
**£**
1,101,005
1,555,693
2,656,698
22,981
2,678,128
3,300
2,704,409
(47,711)
-
(47,711)
286,248
238,537|
|---|---|---|
|Donations and legacies
**3**
Other income
**4**
**Total income**
**Expenditure on:**
Raising funds
**5**
Charitable activities
**6**
Other
**11**
**Total resources expended**
**Net incoming/(outgoing)**
**resources before transfers**
Gross transfers
between funds
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
Fund balances at 1 April 2020
**Fund balances at 31 March**
**2021**|||
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 9 -
## **THE BEIS MALKA TRUST**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Income funds**
Restricted funds
**16**
Unrestricted funds|**2021**
**£**
**£**
966,273
131,969
75,485
207,454
(133,868)
73,586
1,039,859
(693,248)
346,611
16,143
330,468
346,611|**2020**
**£**
**£**
883,804
144,145
94,930
239,075
(241,715)
(2,640)
881,164
(642,627)
238,537
105,584
132,953
238,537|
|---|---|---|
The financial statements were approved by the Trustees on 21 January 2022
Mr. B Hofstatter **Trustee**
- 10 -
## **THE BEIS MALKA TRUST**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
||||**2021**||**2020**||
|---|---|---|---|---|---|---|
||**Notes**|**£**||**£**|**£**|**£**|
|**Cash flows from operating activities**|||||||
|Cash generated from operations|**19**|||162,891||400,359|
|**Investing activities**|||||||
|Purchase of tangible fixed assets||(209,933)|||(415,814)||
|Proceeds on disposal of tangible fixed|||||||
|assets||7,099|||-||
|**Net cash used in investing activities**||||(202,834)||(415,814)|
|**Financing activities**|||||||
|Proceeds of new bank loans||50,000|||-||
|Repayment of bank loans||(29,502)|||(28,406)||
|**Net cash generated from/(used in)**|||||||
|**financing activities**||||20,498||(28,406)|
|**Net decrease in cash and cash equivalents**||||(19,445)||(43,861)|
|Cash and cash equivalents at beginning of year||||94,930||138,791|
|**Cash and cash equivalents at end of year**||||75,485||94,930|
- 11 -
**THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
The Beis Malka Trust is a charity. T he registered office is 93 Alkham Road , London , N16 6XD .
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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.
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 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.
- 12 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 17.5% reducing balance Motor vehicles 25% reducing balance Playground equipment 17.5% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 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.
## **1.9 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**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.
- 13 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
## **1.11 Government grants**
Government grants relating to tangible fixed assets are recorded as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
## **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.
- 14 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
30,284
-
Grants
449,386
755,201
479,670
755,201
**Donations and gifts**
Other
30,284
-
30,284
-
**Grants receivable for**
**core activities**
Government grants
439,392
696,950
Other grants
9,994
58,251
449,386
755,201
**Other income**
Rent receivable
Parental contributions|**Total**Unrestricted
Restricted
Total
funds
funds
**2021**
2020
2020
2020
**£**
£
£
£
30,284
124,855
-
124,855
1,204,587
205,747
770,403
976,150
1,234,871
330,602
770,403
1,101,005
30,284
124,855
-
124,855
30,284
124,855
-
124,855
1,136,342
205,747
686,420
892,167
68,245
-
83,983
83,983
1,204,587
205,747
770,403
976,150
**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
8,462
8,124
1,511,162
1,547,569
1,519,624
1,555,693|
|---|---|
## **4 Other income**
- 15 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **5 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Fundraising and publicity|||
|Other fundraising costs|13,783|22,981|
||13,783|22,981|
## **6 Charitable activities**
|Staff costs
Depreciation and
impairment
Educational supplies
Rent
Training
Exam fees
Support lesson costs
Grant funding of activities
(see note 7)
Share of support costs
(see note 8)
Share of governance costs
(see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds|**School**
**2021**
**£**
1,273,936
115,386
309,940
66,000
16,077
12,384
69,450
1,863,173
1,065
193,901
11,164
2,069,303
1,698,865
370,438
2,069,303|**Nursery**
**2021**
**£**
334,030
3,425
10,562
86,850
6,890
-
-
441,757
-
116,304
3,721
561,782
-
561,782
561,782|**Total**
**2021**
**£**
1,607,966
118,811
320,502
152,850
22,967
12,384
69,450
2,304,930
1,065
310,205
14,885
2,631,085
1,698,865
932,220
2,631,085|**School**
**2020**
**£**
1,188,530
96,979
363,226
83,280
31,923
1,885
48,623
1,814,446
396
205,198
17,713
2,037,753
1,746,276
291,477
2,037,753|**Nursery**
**2020**
**£**
254,968
4,151
75,349
148,355
13,682
-
-
496,505
-
137,965
5,905
640,375
-
640,375
640,375|**Total**
**2020**
**£**
1,443,498
101,130
438,575
231,635
45,605
1,885
48,623
2,310,951
396
343,163
23,618
2,678,128
1,746,276
931,852
2,678,128|
|---|---|---|---|---|---|---|
- 16 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Grants payable**
||**School**|School|
|---|---|---|
||**2021**|2020|
||**£**|£|
|Grants to institutions:|||
|Other|1,065|396|
Details of the grants to institutions made during the year in accordance with the charity's objectives.
-
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Utility and water
23,906
-
Repairs
114,671
-
Insurance
12,728
-
Travel expenses
15,893
-
Telephone
7,034
-
Cleaning
57,333
-
Sundry
878
-
Security
58,461
-
Bank charges and
interest
19,303
-
Audit fees
-
6,550
Accountancy
-
1,570
Legal & professional
fees
-
6,765
310,205
14,885
Analysed between
Charitable activities
310,205
14,885|**2021**
**£**
23,906
114,671
12,728
15,893
7,034
57,333
878
58,461
19,303
6,550
1,570
6,765
325,090
325,090|Support
costs
Governance
costs
£
£
11,386
-
98,423
-
13,860
-
37,606
-
8,401
-
65,831
-
2,754
-
84,181
-
20,721
-
-
5,920
-
1,300
-
16,398
343,163
23,618
343,163
23,618|2020
£
11,386
98,423
13,860
37,606
8,401
65,831
2,754
84,181
20,721
5,920
1,300
16,398
366,781
366,781|
|---|---|---|---|
## **9 Trustees**
During the year a trustee was paid £ 7,256 (2020: £7,073) as an employee of the trust not for trustee services.
- 17 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **10 Employees**
The average monthly number of employees during the year was:
|Part time teaching staff
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
264
**2021**
**£**
1,593,617
13,697
652
1,607,966|**2020**
**Number**
249
**2020**
**£**
1,431,153
11,982
363
1,443,498|
|---|---|---|
There were no employees whose annual remuneration was more than £60,000.
## **11 Other**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
|Net loss on disposal of tangible fixed assets|1,551|3,300|
||1,551|3,300|
- 18 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**12**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**Motor vehicles**
**£**
**£**
**£**
**Cost**
At 1 April 2020
413,275
680,266
18,000
Additions
-
194,091
15,840
Disposals
-
(13,524)
-
At 31 March 2021
413,275
860,833
33,840
**Depreciation and impairment**
At 1 April 2020
-
241,429
5,878
Depreciation charged in the year
-
108,396
6,990
Eliminated in respect of disposals
-
(4,874)
-
At 31 March 2021
-
344,951
12,868
**Carrying amount**
At 31 March 2021
413,275
515,882
20,972
At 31 March 2020
413,275
438,838
12,122
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**14**
**Creditors: amounts falling due within one year**
Bank loans
Trade creditors
Other creditors
Accruals and deferred income|**Playground**
**equipment**
**£**
50,545
-
-
50,545
30,976
3,425
-
34,401
16,144
19,569
**2021**
**£**
124,802
4,650
2,517
131,969
**2021**
**£**
30,646
76,467
243
26,512
133,868|**Total**
**£**
1,162,086
209,931
(13,524)
1,358,493
278,283
118,811
(4,874)
392,220
966,273
883,804
**2020**
**£**
16,326
116,376
11,443
144,145
**2020**
**£**
29,502
159,263
43,981
8,969
241,715|
|---|---|---|
The bank loan has been secured against the freehold land and buildings held by the charity.
- 19 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **15 Creditors: amounts falling due after more than one year**
|Bank loans
Other creditors|**2021**
**£**
396,196
297,052
693,248|**2020**
**£**
376,842
265,785
642,627|
|---|---|---|
The bank loan has been secured against the freehold land and buildings held by the charity.
- 20 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 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:
|**Balance at**
**1 April 2019**
**£**
Playground equipment
23,720
Nursery
96,712
Security
-
SEND department
-
120,432|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
-
(4,152)
541,345
(552,041)
83,983
(84,181)
145,075
(291,478)
770,403
(931,852)|**Transfers**
**Balance at**
**1 April 2020**
**£**
**£**
-
19,568
-
86,016
198
-
146,403
-
146,601
105,584|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
-
(3,425)
506,251
(499,896)
58,251
(58,461)
190,699
(370,438)
755,201
(932,220)|**Transfers**
**Balance at**
**31 March 2021**
**£**
**£**
-
16,143
(92,371)
-
210
-
179,739
-
87,578
16,143|
|---|---|---|---|---|
- 21 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**17**|**Analysis of net assets**|**between funds**||||||
|---|---|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|||**funds**|**funds**||funds|funds||
|||**2021**|**2021**|**2021**|2020|2020|2020|
|||**£**|**£**|**£**|£|£|£|
||Fund balances at 31|||||||
||March 2021 are|||||||
||represented by:|||||||
||Tangible assets|950,130|16,143|966,273|864,235|19,569|883,804|
||Current assets/|||||||
||(liabilities)|73,586|-|73,586|(88,655)|86,015|(2,640)|
||Long term liabilities|(693,248)|-|(693,248)|
(642,627)|-|(642,627)|
|||330,468|16,143|346,611|132,953|105,584|238,537|
## **18 Related party transactions**
## **Key Management Personnel**
The Key management personnel of the Charity comprise the Trustees an d the Senior Leadership Team. The total employee benefits of the key management personnel of the charity were £ 109,709 (20 20 : £ 95,702 ).
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
The Charity operates from premises owned by BM Asset Management Limited, a Charity with common trustees.
During the year, the Charity paid rent totaling £ 83,200 (2020: £ 83,200 ) to BM Asset Management Limited.
At the year end, £297,052 (2020: £265,785) was owed to BM Asset Management Limited.
During the year, the charity paid rent totaling £ Nil (2020: £42,000) to Jewish Training Academy For Girls (JTAG) Limited, a company in which Mr A Grossman, a trustee, is a director.
During the year, the charity received £ 66,066 (2020: £ 3 2,949) from Happy Kids, a registered charity, in respect of recharged salaries and resources. Mr J Bleichfeld’s wife is a trustee of Happy Kids.
- 22 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**19**|**Cash generated from operations**||**2021**|**2020**|
|---|---|---|---|---|
||||**£**|**£**|
||Surplus/(deficit) for the year||108,077|(47,711)|
||Adjustments for:||||
||Loss on disposal of tangible fixed assets||1,551|3,300|
||Depreciation and impairment of tangible fixed assets||118,811|101,130|
||Movements in working capital:||||
||Decrease/(increase) in debtors||12,176|(35,264)|
||(Decrease)/increase in creditors||(77,724)|378,904|
||**Cash generated from operations**||162,891|400,359|
|**20**|**Analysis of changes in net (debt)/funds**||||
|||**At 1 April 2020**|**Cash flows At 31 March 2021**||
|||**£**|**£**|**£**|
||Cash at bank and in hand|94,930|(19,445)|75,485|
||Loans falling due within one year|(29,502)|(1,144)|(30,646)|
||Loans falling due after more than one year|(376,842)|(19,354)|(396,196)|
|||(311,414)|(39,943)|(351,357)|
- 23 -