## **MACHZIKE HADATH COMMUNITY**
**REGISTERED CHARITY: 289999**
**FINANCIAL STATEMENTS AND ANNUAL REPORT**
**FOR THE YEAR ENDED 31 AUGUST 2023**
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue**
## **FINANCIAL STATEMENTS**
|**FOR THE YEAR ENDED 31 AUGUST 2023**
INDEX
Contents
Trust information
Trustees’ Annual Report
Report of the Independent Examiner
Statement of Financial Activities
Balance Sheet
Notes to the Financial Statements|Page
1
2
3 - 5
6
7
8
9 - 14|
|---|---|
1
## **MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue**
## **TRUST INFORMATION**
|Registered Charity Number|:|289999|
|---|---|---|
|Trustees|:|Mr Nathan David Colman|
|||Mr Gregory Roediger|
|||Mr John Wosner|
|Independent Examiner|:|Shaya Grosskopf FCA|
|||1g Accountants|
|||Chartered Accountants|
|||Churchill House|
|||137-139 Brent Street|
|||London|
|||NW4 3QU|
|Principal Address|:|1-4 Highfield Road|
|||London|
|||NW11 9LU|
|Bankers|:|HSBC Bank PLC|
|||40 Temple Fortune Parade|
|||London|
|||NW11 0QU|
2
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023**
The trustees present their report and financial statements of the charity for the year ended 31 August 2023. The trustees confirm that the Annual Report and financial statements of the trust comply with the current statutory requirements including recommended practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102).
## **Charitable objects**
The objects of the Machzike Hadath Community are to oversee the administration of the Machzike Hadath Synagogue, to deal with its burial ground and to attend to communal matters such as assistance of the needy.
The Synagogue exists to further the practice and observance of traditional Orthodox Judaism in accordance with the dictates of the Shulchan Aruch and under the direction and guidance of a strictly orthodox Rav.
The trustees delegate the day to day operations of the synagogue to the Executive Committee which consists of a chairman and elected and co-opted members.
## **Governing documents**
A Trust Deed describes the specific objects of the trust and the Trustees duties. The synagogue’s constitution deals with the responsibility of its Officers and General Meetings. The charity was registered with the Charity Commission as Machzike Hadath Community on 30 November 1984 (Registration No. 289999) – preliminary constitution 1949.
## **Trustees**
The trustees of the charity who served during the year and to date were as follows:
Mr Nathan David Colman Mr Gregory Roediger Mr John Wosner
## **Activities**
The charity runs a burial society for the benefit of the Community. Members of the Synagogue are entitled to join on the payment of an annual subscription determined every year by the trustees and collected by the Synagogue Officers.
3
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue TRUSTEES’ ANNUAL REPORT CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
The charity provides funds for a Gemach. This enables members of the synagogue and others to apply for assistance mainly through interest free loans in the event of being in needy circumstances. Applications are welcomed and are handled by a subcommittee which assesses requests on a confidential basis. In addition, small grants are currently being made available to applicants who have suffered financially because of lockdowns.
The synagogue holds daily services and lectures on religious matters and learning programmes run by the Rav. These activities have been substantially expanded during the year with both members and non-members participating.
The charity is aware of the risks to which it is exposed and monitors them with the effect that all such risks are mitigated wherever possible.
## **Financial review**
Total income in the year was £160,630 (2022: £204,048). Expenditure was £199,292 (2022: £130,517). Retained funds at the end of the financial year was £791,502 (2022: £821,330).
The charity seeks to maintain a sufficient level of reserves to meet all its day-to-day activities and also its capital expenditure plans for the foreseeable future. This policy is reviewed regularly by the trustees. The synagogue affairs are run by the Executive Committee which meets on a regular basis throughout the year. Currently the synagogue incurs operating expenditure of approximately £160,000 per annum, which is funded by fundraising and from the investment income of the charity. The trustees and the Executive Committee keep the financial position of the synagogue under review.
## **Public benefit**
The principal activities of the charity during the year continued to be to promote traditional Orthodox Judaism and its values. The trustees are aware of the Charity Commission guidance on public benefit reporting as set out in Section 17 Charities Act 2011. The trustees believe that the charity achieves a public benefit by providing these services as detailed throughout this report and accounts.
## **Fund held as custodian trustee**
The Charity collects funds from its members to pass on to other Charities in the course of collecting its own annual membership subscriptions. At the financial year end, the Charity held £1,020 (2022: £949) on behalf of the Board of Deputies of British Jews and £1,690 (2022: £1,700) on behalf of the NW London Eruv Committee, both held for the advancement of the Orthodox Jewish faith.
4
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue TRUSTEES’ ANNUAL REPORT CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
## **Volunteers**
The Trustees are grateful to volunteers who assist with the administration of the synagogue and preparations for services and other events
## **Statement of trustees’ responsibilities**
Charity law 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 its financial activities for that year together with its assets and liabilities at the end of the year, and adequately distinguish any material special Trust or other restricted fund of the Charity. In preparing those financial statements the Trustees are required to:-
- (a) select suitable accounting policies and then apply them consistently;
- (b) make judgements and estimates that are reasonable and prudent;
- (c) state whether the policies adopted are in accordance with the appropriate SORP on Accounting and Reporting by Charities and the Accounting Regulations and with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements; and
- (d) prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Charity, and enable them to ensure that the financial statements comply with applicable Accounting Standards and Statements of Recommended Practice and the regulations made under the Charities Act. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
Approved by the Board of trustees and signed on its behalf by:
**Mr J Wosner Trustee 7 June 2024**
5
## **Independent examiner’s report to the trustees of Machzike Hadath Community**
I report to the trustees on my examination of the accounts of the Machzike Hadath Community (the Trust) for the year ended 31 August 2023.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Shaya Grosskopf
**Shaya Grosskopf FCA 1g Accountants Chartered Accountants Churchill House 137-139 Brent Street NW4 4DJ**
**7 June 2024**
6
## **MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 AUGUST 2023**
|**Income from:**
Membership fees
Grants & donations received
Sponsorship
**Investment Income**
Bank interest, movement in
fair value of investments,
and dividends receivable
Rental Income
**Total Income**
**Charitable activities**
Affiliation fees
Synagogue expenses
Grants paid
Premises expenses
Depreciation
Bank charges
Legal and professional fees
Office costs
**Total expenditure**
Net gains on disposal of
investments
**Total (deficit) / income for**
**the year**
Transfer between funds
Funds brought forward
**Funds carried forward**|Restricted Funds 2022
£
-
22,115
-
-
-
**22,115**
-
-
5,000
32,587
6,710
-
-
-
**44,297**
-
**(22,182)**
941
123,092
**101,851**|Unrestricted
Funds 2022
£
37,802
50,291
9,326
28,240
12,856
**138,515**
6,521
67,982
-
59,157
1,808
427
6.335
12,745
**154,995**
8,834
**(7,646)**
(941)
698,238
**689,651**|Unrestricted
Funds 2022
£
37,802
50,291
9,326
28,240
12,856
**138,515**
6,521
67,982
-
59,157
1,808
427
6.335
12,745
**154,995**
8,834
**(7,646)**
(941)
698,238
**689,651**|Year ended
31 August
2023
£
37,802
72,406
9,326
28,240
12,856
**160,630**
6,521
67,982
5,000
94,114
8,518
427
3,985
12,745
**199,292**
8,834
**(29,828)**
-
821,330
**791,502**|Year ended
31 August
2023
£
37,802
72,406
9,326
28,240
12,856
**160,630**
6,521
67,982
5,000
94,114
8,518
427
3,985
12,745
**199,292**
8,834
**(29,828)**
-
821,330
**791,502**|Year ended
31 August
2022
£
37,803
116,699
14,337
27,306
8,820
**204,048**
(6,867)
32,060
3,000
80,152
4,511
356
2,355
14,905
**130,517**
4,512
**78,043**
-
743,287
**821,330**|Year ended
31 August
2022
£
37,803
116,699
14,337
27,306
8,820
**204,048**
(6,867)
32,060
3,000
80,152
4,511
356
2,355
14,905
**130,517**
4,512
**78,043**
-
743,287
**821,330**|
|---|---|---|---|---|---|---|---|
|||||||||
|||||||||
7
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue BALANCE SHEET AS AT 31 AUGUST 2023**
|Note
FIXED ASSETS
Tangible fixed assets
2
Investments
3
CURRENT ASSETS
Debtors
4
Cash at bank and in hand
CREDITORS
Amounts falling due within 1 year
5
NET CURRENT ASSETS
NET ASSETS
FUNDS
Restricted
6
Unrestricted|202.
£
78,988
686,163
765,151
9,052
32,321
41,373
(15,022)
26,351
791,502
101,851
689,651
791,502|2022
£
39,601
672,697
712,298
18,731
99,193
117,924
(8,892)
109,032
821,330
123,092
698,238
821,330|
|---|---|---|
Approved by the Board of Trustees and signed on its behalf by:
## **Mr J Wosner Trustee**
## **7 June 2024**
The attached notes form part of these Financial Statements.
8
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## 1. ACCOUNTING POLICIES
## (a) Accounting Convention
The financial statements have been prepared 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
In common with many charitable organisations, the Trust is dependent upon the receipt of donations and voluntary income. The continuing receipt of such funds cannot always be predicted with certainty and the accounts have been prepared on the basis that funds will continue to be received at a level sufficient to enable the Trust to carry out day to day running expenses and fulfill its charitable objectives. As much of the deficit relates to investment losses which are expected to be reversed, and based on a review of the Trust’s plans for next year, and the Trust’s considerable reserves, the trustees have elected to use the going concern basis of accounting.
## (b) Depreciation
Depreciation of Tangible Fixed Assets is charged as follows:-
Freehold improvements: 15% reducing balance Furniture and flooring: 15% straight line Plant, machinery, other fixtures & fittings: 25% reducing balance
## (c) Income
Donations are included in the account when the money is receivable.
## (d) Expenditure
Expenditure is charged to the income and expenditure account on an accruals basis.
## (e) Fund Accounting
Unrestricted funds comprise accumulated surpluses and deficits on the general fund. They are available for use at the discretion of the trustees in furtherance of the Charity’s general charitable objectives.
Restricted funds represent funds collected or earmarked specifically for application to specific activities.
9
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
## (f) Income
Grant income has been recognised when all the performance conditions attached to the grant (if there are any such conditions) have been fulfilled. Donations are recognised when paid. Membership income is recognised over the course of the membership year. Other sponsorship income is recognised when the Trust becomes constructively entitled to funds. The Trust is dependent on the work of volunteers but is unable to reliably value the benefit derived thereby.
## (g) Legal Status of the Trust
The Trust was established by a deed in 1924. The charity was registered with the Charity Commission as Machzike Hadath Community on 30 November 1984 (Registration No. 289999) – preliminary constitution 1949.
## (h) Cash flow statement
The Trust has applied the exemption in Section 1.12A of FRS102 relating to the preparation of a cash flow statement.
## (i) Investments
Equity investments are valued where possible at their fair value determined by reference to a publicly traded liquid stock exchange.
## (j) Net income/(expenditure)
Net income/(expenditure) is stated after charging
||2023|2022|
|---|---|---|
||£|£|
|Depreciation|4,511|4,511|
|Wages and salaries (included in office costs and|37,550|10,677|
|synagogue costs)|||
|Accountancy and independent examination fees|2,550|2,320|
## (k) Going Concern
In the opinion of the Trustees after considering the significant net funds of the charity, there are no material uncertainties to the status of the Charity as a going concern, and the accounts have been prepared accordingly.
## (l) Investments
Investments including both equity and debt instruments held as part of an investment portfolio are stated at their fair (market) values in a widely traded market, and movements in this value are recognised in the statement of financial affairs.
10
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
## (m) Staff and trustees
During the year the Trust employed 3 individuals (2022: 3 individuals). Trustees were not paid for their services and no expenses were reimbursed to any of the trustees during the year.
## (n) Taxation
The trust is exempt from income taxation. As the Trust cannot recover VAT, irrecoverable VAT is included in its expenditure.
## 2. TANGIBLE FIXED ASSETS
|Cost
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022||Plant, machinery,
fixtures and fittings
£
63,238
47,905
111,143
28,694
7,760
36,454
74,689
34,544||Freehold
Improvements
£
27,368
-
27,368
22,311
758
23,069
4,299
5,057|Total
£
90,606
47,905|
|---|---|---|---|---|---|
||||||138,511|
||||||51,005
8,518|
||||||59,523|
||||||78,988
39,601|
Though it is carried at nil cost in the balance sheet, the property at 1-4 Highfield Road, London, NW11, has been held since 1999 jointly on trust by Machzike Hadath Community and the Federation of Synagogues Trust Corporation for the benefit of Machzike Hadath Congregation. In addition, the Community owns an area of land at Carterhatch Lane Cemetery, Enfield, reserved for members of its burial scheme, and likewise held at nil cost.
11
## **MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
## 3. INVESTMENTS:
||2023|2022|
|---|---|---|
||£|£|
|Market value brought forwards|672,697|697,732|
|Cost of additions|132,538|316,531|
|Book value of disposals|(111,569)|(293,746)|
|Movement in fair market value|(7,503)|(47,820)|
||686,163|672,697|
Investments with a market value of £47,091 (2022: £46,475) are held in debt instruments, and the remaining £639,072 (2022: £626,222) are held in equity instruments
## 4. DEBTORS:
|Other debtors
Prepayments and accrued income
|2023
£
3,409
5,643
9,052|2022
£
8,613
10,118|2022|
|---|---|---|---|
|||18,731||
## 5. CREDITORS: Amounts falling due within one year
|2022
£
Trade creditors
5,737
Other creditors
6,222
Accruals, income in advance and deferred income
3,063
15,022
|2021
£
3,179
2,177
3,536
8,892|
|---|---|
Other creditors includes £2,710 (2022: 2,649) of funds held as agent for other charities as set out in the trustees’ report.
12
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 AUGUST 2023**
## 6. ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS
||Balance at 1
September
2022|Balance at 1
September
2022|
|Incoming
resources|
|Resources
expended||Transferred
from / (to)
general
funds||Funds at 31
August 2023|
|---|---|---|---|---|---|---|---|---|---|---|
||£|||£||£||£||£|
|Security Fund|1,464|||3,691||(4,999)||941||1,097|
|Building Fund|65,868|||18,070||(34,298)||-||49,640|
|Burial Fund|42,500|||-||-||-||42,500|
|Welfare Fund
Total|13,260
123,092|||354
22,115||(5,000)
(44,297)||-
941||8,614|
|||||||||||101,851|
||||||||||||
|||Balance at
1 September
2021|
|Incoming
resources|
|Resources
expended||Transferred
to general
funds||Funds at 31
August 2022|
|||£||£||£||£||£|
|Security Fund||1,132||3,844||(4,648)||1,136||1,464|
|Building Fund||23,703||54,100||(11,935)||-||65,868|
|Burial Fund||42,500||-||-||-||42,500|
|Welfare Fund||9,560||3,700||-|
|-||13,260|
|||76,895||61,644||(16,583)||1,136||123,092|
|Total|||||||||||
13
**MACHZIKE HADATH COMMUNITY Incorporating Machzike Hadath Synagogue NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022**
The Security Fund represents grants provided by the Community Security Trust, a UK registered charity, in respect of manned security provided during services and security equipment repairs and purchases. The balance at the year-end is represented by tangible fixed assets of £1,097 (2022: £1,464 held in tangible fixed assets). A cash deficit was made good by way of transfer from general funds.
The Building Fund represents grants earmarked for the refurbishment and renewal of the synagogue building. The Building Fund at the year-end is represented by tangible fixed assets of £65,868.
The Burial Fund represents amounts earmarked by the trustees towards meeting the commitments of the Synagogue to subscribers of its Burial Scheme. The Burial Fund balance of £42,500 (2022: £42,500) is represented by investments.
The Gemach (Welfare) Fund represents amounts earmarked by donors towards the alleviation of poverty in the local community. The Welfare Fund balance at 31 August 2022 of £8,614 (2021: £13,260) is held in cash.
## 7. RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH TRUSTEES
The trustees are all members of the charity and contribute membership subscriptions at the standard rate applicable to all members.
In addition to membership subscriptions, the aggregate amount donated by trustees to the charity during the financial reporting year was £3,181 (2022: £21,307).
## 8. GRANTS PAID
During the year the charity made grants to 3 (2022: 3) individuals for an aggregate amount of £3,000 (2022:2,000) for the alleviation of poverty, and a grant of £2,000 to Kinyan Hatorah UK, a UK registered charity, to support a Passover program for the advancement of religion (2022: no grants were paid to organisations.)
14