**Charity registration number 284447**
## **THE BEIS MALKA TRUST**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 22|
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees are pleased to present the annual report for the year ending 31 March 2022 which has been a very momentous year for the school, appreciating that we were able to remain open for the full academic year, following the tumultuous lockdowns of the year before.
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)" (effective 1 January 2019).
## **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**
The aftermath of Covid left significant gaps in education and wellbeing. The gap in education was vast. Although many children and teenagers were faring poorly, academically our pupils were disproportionately affected. Due to cultural restrictions on internet usage, lessons during lockdown were held by tele-conference. This was challenging, especially for the visual learners and more so for those with EAL status who depend on the face-toface interactions to support learning.
Initially, we assessed the pupils, creating a baseline assessment and setting appropriate targets. We delivered additional GCSE support sessions, SATs clubs, homework clubs and tutoring sessions to address the academic fallout. Students also benefitted from exciting spelling bees, times-table competitions, writing contests and fun quizzes. We were gratified that feedback from parents,’ teachers and pupils as well as the fabulous exam results all attested to the efforts invested.
With reading being the key for success in all subjects, we incorporated a new project in the Early Years department, entitled The Power of Reading. This develops reading skills in an innovative way as pupils delve into a storybook analysing the characters, the plot and the objects or animals discussed. This provides them with a thirst for reading, helps them consolidate information and enhances cross-curricular knowledge in a variety of numerical, scientific or geographical concepts.
Staff benefitted from a range of training sessions, to empower them to help close the gap in learning as well as support their emotional wellbeing. Furthermore, in their constant quest to improve and to share best practice, the school leaders visited a school in Manchester to observe lessons, interact with teachers and learn from their teaching methods. It was a most rewarding trip providing leaders with new skills. School leaders also attended a 3-day seminar delivered by Torah Umesorah which empowered them to coach their staff thereby maximising learning outcomes for all students.
- 1 -
## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
Tackling the academic front was only the first stage we undertook to close the gap, as we know “educating the mind without educating the heart is no education at all” (Aristotle). In addition to increasing the availability of sessions with our emotional health team to meet the growing demand, we launched several additional programs and staff-training on Mental Health to help our children and young people deal with the trauma, become more aware and build resilience. One of these was a panel where students and staff facing real-life challenges answered questions pupils had on dealing with illness, familial issues and bereavement. A theme song was created to promote resilience, to encourage each other that we would come through this stronger and better.
The school continued to benefit from the WAHMS (Wellbeing and Mental Health School project) services offered in Hackney. Under the guidance of their specialist we continued to implement a three-pronged approach to improve children’s mental health focusing on the key partners in the children’s wellbeing - parents, teachers and children. Parents and teachers continued to access appropriate resources and training which created awareness of issues that could present in children. We also continue to use their expertise to revise our PSHE policy incorporating additional social programmes designed to promote healthy peer relationships and constantly encourage children to express their feelings enhancing their emotional wellbeing.
Since April 2021 the school provided nutritious meals for children in need. Although this has been a tremendous financial strain on the school, for many of these children this is a crucial part of their sustenance as their families struggle with the massive rise in food and fuel costs. We know it is our responsibility to provide for the physical wellbeing of our children so that they can progress, and we will do our utmost to continue. Currently, these children many of who are essentially entitled to free school meals are not in receipt of this government fund because they attend independent schools. Chinuch UK are currently advocating with the Local Authority and others influential politicians that Independent schools qualify for this funding.
We also launched a number of stimulating PSHE projects which cultivate pupils’ skills and aptitudes like teamwork, communication, and resilience all crucial to navigating the challenges and opportunities of the modern world. Secondary school pupils also benefitted from two motivational overnight retreats for 2 days each. The division of responsibilities amongst the students ensured that all had a part in preparing either the décor, program or culinary delights culminating in a fantastic experience in an enabling environment. The rural setting, relaxed ambience and beautiful atmosphere engendered much happiness, friendship and improved holistic wellbeing.
Towards the end of the financial year, secondary school students produced a dazzling performance showcasing their singing, dancing and acting talent to a 650 strong audience. All parts of the performance were created and led by the pupils themselves. This empowered pupils with many hard skills such as costume design, sewing, dancing, choreography etc as well as soft-skills including team-work, time-management, problem-solving and budgeting. The narrative depicted a family escaping communist Russia and their heroic journey to freedom. This inspiring message was a great source of encouragement to many a vulnerable teen that dawn always comes after darkness.
We have revamped 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. Not only have they benefited but many adult visitors to the school have also complimented the colourful area of our garden and how inviting it looks.
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. Designated Safeguarding Leads (DSL) from all departments across the school met to create a cohesive forum to share updates, anonymous case studies, training measures and ways to ensure their staff are committed to compliance.
With technology use requiring a constant vigil, the school held a technology awareness week where the dangers of technology were presented, and tools were provided to combat these. Incentives were offered to support pupils to undertake commitments to minimise their exposure.
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## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Financial review**
The results for the year are shown in the attached financial statements.
The risks and uncertainties facing the school are primarily the rising costs in all areas. Concurrently,the trustees acknowledge that many parents are struggling due to the cost-of-living crisis and this has impacted the contributions they are able to make to the school. However, it is hoped that the school will secure government funding through the Free School Meals scheme for Independent schools, which is currently in discussion. This will ease the strain the cost of meals provision is currently having on the school’s budget. Also, many additional funding streams are being explored. A crowdfunding campaign is planned for Spring and combined anticipated income of £350,000 will improve the financial outlook for the charity. In light of the increased cost, the school's leadership team have also introduced tighter control on the spending of funds which should result in significant cost savings.
The Trustees aim to keep reserves of one month's wages, approximately £140,000. Although the charity doesn’t hold reserves at the year end, the trustees are confident that the increased income will enable the charity to rebuild these. At the year end, unrestricted free reserves stood at £Nil (2021: £73,586).
## **Future developments**
As part of the PSHE extra-curricular learning programme and to promote goodwill, volunteering and sharing we plan to launch BMCZ initials for Beyond My Comfort Zone where pupils will be encouraged to leave their comfort zones and give to others through a variety of exciting mediums.
We will also be implementing a new Maths program White Rose utilising the Shanghai-Bar model including number sentences to support this.
The school also plans to introduce a new reading-based learning scheme to ensure cross-curricular learning in all departments.
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## **THE BEIS MALKA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **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' report was approved by the Board of Trustees.
## **Mr. B Hofstatter**
Trustee Dated: 31 January 2023
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## **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 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 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 31 March 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.
## **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' report; 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.
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## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BEIS MALKA TRUST**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements 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.
- 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).
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## **THE BEIS MALKA TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BEIS MALKA TRUST**
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 matters**
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.
## **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.
**Landau Morley LLP** 31 January 2023 **Chartered Accountants Statutory Auditor** 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.
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## **THE BEIS MALKA TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
696,835
350,566
Other income
**4**
1,518,794
-
**Total income**
2,215,629
350,566
**Expenditure on:**
Raising funds
**5**
17,585
-
Charitable activities
**6**
2,329,844
437,937
Other
**11**
1,414
-
**Total expenditure**
2,348,843
437,937
**Net (outgoing)/incoming**
**resources before transfers**
(133,214)
(87,371)
Gross transfers between
funds
(83,097)
83,097
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(216,311)
(4,274)
Fund balances at 1 April 2021
330,468
16,143
**Fund balances at 31 March**
**2022**
114,157
11,869|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
1,047,401
479,670
755,201
1,518,794
1,519,624
-
2,566,195
1,999,294
755,201
17,585
13,783
-
2,767,781
1,698,865
932,220
1,414
1,551
-
2,786,780
1,714,199
932,220
(220,585)
285,095
(177,019)
-
(87,578)
87,578
(220,585)
197,517
(89,441)
346,611
132,951
105,584
126,026
330,468
16,143|**Total**
**2021**
**£**
1,234,871
1,519,624|
|---|---|---|
|||2,754,495|
|||13,783|
|||2,631,085|
|||1,551|
|||2,646,419|
|||108,076
-|
|||108,076
238,535|
|||346,611|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **THE BEIS MALKA TRUST**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current (liabilities)/assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**16**
**Net assets**
**Income funds**
Restricted funds
**17**
Unrestricted funds|**2022**
**£**
**£**
981,459
24,645
51,728
76,373
(171,514)
(95,141)
886,318
(760,292)
126,026
11,869
114,157
126,026|**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|
|---|---|---|
The financial statements were approved by the Trustees on 31 January 2023
Mr. B Hofstatter **Trustee**
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## **THE BEIS MALKA TRUST**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|||**2022**||**2021**||
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Cash flows from operating activities**||||||
|Cash generated from operations|**20**||105,067||162,891|
|**Investing activities**||||||
|Purchase of tangible fixed assets||(136,459)||(209,933)||
|Proceeds from disposal of tangible fixed||||||
|assets||5,203||7,099||
|**Net cash used in investing activities**|||(131,256)||(202,834)|
|**Financing activities**||||||
|Proceeds from new bank loans||-||50,000||
|Repayment of bank loans||(31,780)||(29,502)||
|Payment of obligations under finance leases||34,212||-||
|**Net cash generated from financing**||||||
|**activities**|||2,432||20,498|
|**Net decrease in cash and cash equivalents**|||(23,757)||(19,445)|
|Cash and cash equivalents at beginning of year|||75,485||94,930|
|**Cash and cash equivalents at end of year**|||51,728||75,485|
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## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity information**
The Beis Malka Trust is a charity. The 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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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 amounts 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.
## **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.
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## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## **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.
No amortisation has been provided on freehold land and buildings and long leaseholds as the assets are kept in good repair and their useful lives and estimated residual values are such that depreciation is not material. Assets are reviewed annually for any impairment. The trustees are of the opinion that the recoverable amount is in excess of the carrying amount and feel that no provision for impairment is required.
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.
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## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **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 payments 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 Leases**
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
## **1.12 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.
- 13 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
25,300
-
Grants
671,535
350,566
696,835
350,566
**Donations and gifts**
Other
25,300
-
25,300
-
**Grants receivable for**
**core activities**
Government grants
671,535
266,167
Other grants
-
84,399
671,535
350,566|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
25,300
30,284
1,022,101
449,386
1,047,401
479,670
25,300
30,284
25,300
30,284
937,702
439,392
84,399
9,994
1,022,101
449,386|Restricted
funds
2021
£
-
755,201
755,201
-
-
696,950
58,251
755,201|Total
2021
£
30,284
1,204,587|
|---|---|---|---|
||||1,234,871|
||||30,284|
||||30,284|
||||1,136,342
68,245|
||||1,204,587|
## **4 Other income**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Rent receivable|22,970|8,462|
|Parental contributions|1,495,824|1,511,162|
||1,518,794|1,519,624|
- 14 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **5 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Fundraising and publicity|||
|Other fundraising costs|17,585|13,783|
||17,585|13,783|
## **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**|**Nursery**
**2022**
**£**
386,495
4,275
23,668
83,200
19,844
-
-
517,482
-
118,860
7,288
643,630
570,726
72,904
643,630|**Total**
**2022**
**£**
1,647,517
114,659
424,461
120,200
66,148
1,946
70,210
2,445,141
-
293,488
29,152
2,767,781
2,329,844
437,937
2,767,781|**School**|**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|
|---|---|---|---|---|---|---|
||**2022**
**£**
1,261,022
110,384
400,793
37,000
46,304
1,946
70,210
1,927,659
-
174,628
21,864
2,124,151
1,759,118
365,033
2,124,151|||**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|||
|||||||2,304,930
1,065
310,205
14,885|
|||||||2,631,085|
|||||||1,698,865
932,220|
|||||||2,631,085|
- 15 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **7 Grants payable**
|Grants to institutions:
Other|**2022**
**£**
-|2021
£
1,065|
|---|---|---|
||||
|Details of the grants to institutions made during the year in accordance with the charity's objectives.|||
## -
|**8**
**Support costs**
Utility and water
Repairs
Architect fees
Insurance
Travel expenses
Telephone
Cleaning
Sundry
Security
Bank charges and
interest
Audit fees
Accountancy
Legal & professional fees
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
15,489
-
81,125
-
11,639
-
16,264
-
26,236
-
8,560
-
43,394
-
45
-
68,629
-
22,109
-
-
9,008
-
2,252
-
17,892
293,488
29,152
293,488
29,152|**2022**Support costs Governance
costs
**£**
£
£
15,489
23,905
-
81,125
114,670
-
11,639
-
-
16,264
12,728
-
26,236
15,893
-
8,560
7,034
-
43,394
57,333
-
45
878
-
68,629
58,461
-
22,109
19,303
-
9,008
-
6,550
2,252
-
1,570
17,892
-
6,765
322,640
310,205
14,885
322,640
310,205
14,885|2021
£
23,905
114,670
-
12,728
15,893
7,034
57,333
878
58,461
19,303
6,550
1,570
6,765|
|---|---|---|---|
||||325,090|
||||325,090|
## **9 Trustees**
During the year a trustee was paid £7,414 (2021: £7,256) as an employee of the charity (not for trustee services).
- 16 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **10 Employees**
The average monthly number of employees during the year was:
|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|**2022**
**Number**
289
**2022**
**£**
1,637,076
9,888
553
1,647,517|**2021**
**Number**
264|
|||**2021**
**£**
1,593,617
13,697
652|
|||1,607,966|
There were no employees whose annual remuneration was more than £60,000.
## **11 Other**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
|Net loss on disposal of tangible fixed assets|1,414|1,551|
||1,414|1,551|
- 17 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**12**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**Motor vehicles**
**£**
**£**
**£**
**Cost**
At 1 April 2021
413,275
860,834
33,840
Additions
50,516
33,082
44,580
Disposals
-
(5,203)
(4,650)
At 31 March 2022
463,791
888,713
73,770
**Depreciation and impairment**
At 1 April 2021
-
344,950
12,869
Depreciation charged in the year
-
95,158
15,225
Eliminated in respect of disposals
-
(911)
(2,325)
At 31 March 2022
-
439,197
25,769
**Carrying amount**
At 31 March 2022
463,791
449,516
48,001
At 31 March 2021
413,275
515,882
20,972
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**14**
**Finance lease commitments**
Future minimum lease payments due under finance leases:
Within one year
Within two and five years|**Playground**
**equipment**
**£**
50,545
8,281
-
58,826
34,400
4,275
-
38,675
20,151
16,144
**2022**
**£**
23,140
1,505
-
24,645
**2022**
**£**
7,363
26,849
34,212|**Total**
**£**
1,358,494
136,459
(9,853)
1,485,100
392,219
114,658
(3,236)
503,641
981,459
966,273
**2021**
**£**
124,802
4,650
2,517
131,969
**2021**
**£**
-
-
-|
|---|---|---|
Two vans were purchased by hire purchase and they will be paid back over a 60 month period. The interest rate was fixed at 3.9%. All leases are on a fixed repayment basis.
- 18 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **15 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
|Bank loans
Obligations under finance leases
**14**
Trade creditors
Other creditors
Accruals and deferred income|**2022**
**£**
43,741
7,363
101,793
-
18,617
171,514|**2021**
**£**
30,646
-
76,467
243
26,512|
|||133,868|
The bank loan has been secured against the freehold land and buildings held by the charity.
## **16 Creditors: amounts falling due after more than one year**
|**Creditors: amounts falling due after more than one year**|||
|---|---|---|
|Bank loans
Obligations under finance leases
**14**
Other creditors|**2022**
**£**
351,321
26,849
382,122
760,292|**2021**
**£**
396,196
-
297,052|
|||693,248|
The bank loan has been secured against the freehold land and buildings held by the charity.
- 19 -
##
##
|**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**|**Balance at**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**Income**
**Expenditure**
**Transfers**
**Balance at**|**1 April 2020**
**1 April 2021**
**31 March 2022**|**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**|Playground equipment
19,568
-
(3,425)
-
16,143
-
(4,274)
-
11,869|Nursery
86,016
506,251
(499,896)
(92,371)
-
-
-
-
-|Security
-
58,251
(58,461)
210
-
70,919
(68,629)
(2,290)
-|SEND department
-
190,699
(370,438)
179,739
-
279,647
(365,034)
85,387
-|105,584
755,201
(932,220)
87,578
16,143
350,566
(437,937)
83,097
11,869|
|---|---|---|---|---|---|---|---|---|---|---|
|**17**|||||||||||
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**18**|**Analysis of net assets between funds**|**Analysis of net assets between funds**|||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**||Unrestricted||Restricted||Total|
|||**funds**|**funds**|||funds||funds|||
|||**2022**|**2022**|**2022**||2021||2021||2021|
|||**£**|**£**|**£**||£||£||£|
||Fund balances at 31||||||||||
||March 2022 are||||||||||
||represented by:||||||||||
||Tangible assets|969,590|11,869|981,459||950,130||16,143||966,273|
||Current assets/(liabilities)|(95,141)|-|(95,141)||73,586||-||73,586|
||Long term liabilities|(760,292)|-|(760,292)||(693,248)||-||(693,248)|
|||114,157|11,869|126,026||330,468||16,143||346,611|
## **19 Related party transactions**
## **Key Management Personnel**
The Key management personnel of the Charity comprise the Trustees and the Senior Leadership Team. The total employee benefits of the key management personnel of the charity were £98,792 (2021: £109,709).
## **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 (2021: £83,200) to BM Asset Management Limited.
At the year end, £382,122 (2021: £297,052) was owed to BM Asset Management Limited.
At the year end, the charity owed £10,000 (2021: £18,000) to Jewish Training Academy For Girls (JTAG) Limited, a charitable company with a common trustee.
During the year, the charity received £79,936 (2021: £66,066) from Happy Kids, a registered charity, in respect of recharged salaries and resources. Mr J Bleichfeld’s wife is a trustee of Happy Kids.
- 21 -
## **THE BEIS MALKA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**20**|**Cash generated from operations**||**2022**|**2021**|
|---|---|---|---|---|
||||**£**|**£**|
||(Deficit)/surpus for the year||(220,585)|108,077|
||Adjustments for:||||
||Loss on disposal of tangible fixed assets||1,414|1,551|
||Depreciation and impairment of tangible fixed assets||114,659|118,811|
||Movements in working capital:||||
||Decrease in debtors||107,322|12,176|
||Increase/(decrease) in creditors||102,257|(77,724)|
||**Cash generated from operations**||105,067|162,891|
|**21**|**Analysis of changes in net (debt)/funds**||||
|||**At 1 April 2021**|**Cash flowsAt 31 March 2022**||
|||**£**|**£**|**£**|
||Cash at bank and in hand|75,485|(23,757)|51,728|
||Loans falling due within one year|(30,646)|(13,095)|(43,741)|
||Loans falling due after more than one year|(396,196)|44,875|(351,321)|
||Obligations under finance leases|-|(34,212)|(34,212)|
|||(351,357)|(26,189)|(377,546)|
- 22 -