Charity registration number 290568 Company reglstration number 01835501 (England and Walas) GAMA TZEDAKA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
GAMA TZEDAKA LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Ooverno MrPJay MrDJay MrlSJay Charity number 290568 Company number 01835501 Principal address Foframe House, 2nd Flo( 35-37 Brent Street London NW4 2EF Reglstered office Foframe House, 2nd Floor 35-37 Brent Streel London NW4 2EF Auditor Lopian Gros5 Bamett & Co 1¥t Flrx)r. Cloister Htyjse RNeTside New Bailey Street Manchester M3 5FS
GAMA TZEDAKA LIMITED CONTENTS Govemors. reF¥)rt Statement of govemors. reSnsIbIlitIeS IndeperKlent auditoVs repcl statement of finala1 ac*ville8 Balanctr sheet 9-10 Statement of cash flows 11 Notes to Ihe finanual statements 12-21
GAMA TZEDAKA LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The govemors present their annual report arKI ancIal statements foT the year endèd 31 December 2023. The financial statements have been prepared in accordance wrlh the ac£ounting poliaes set out In note 1 to the finanual statements and wmply with the Compan5 Act 2006 and "Aco)unting and Reporting by Charities: statement of Recommended Practice applicable to charities prepariig their accounts in accordan with tho Financial Repoiting Standard applicable in the UK and Rewblic of Ireland IFRS 1021" las amended accounting perkyjs o)mmencing from 1 January 2019). Objectives and activities The charity's objects are to distribule funds to religioLbS. educational and similar charIt$ for the a(fvancement of religion in accordance wrth the Orthodox Jes*ish faith and the relief of povety and other charitable purposes for the public benefit. The aims of the chanty in accordance wrth Ihese objectives are to help with the fundin9 of charities which advance the Orthodox Jewish faith and lo help alleviate FoveTty. The policies adopted in furtherance of these objects are to identsfy OrtFK)dox Jewsh ¢haribes whth carry out aolivilies such as providing orthcxk)x Jewish education and other activities which advance religion in accordance wlh the Orthodox Jewsh faith or which relieve povety and there has been no charoe in these during the year. The govemors confirni that they have had regard lo guldance contsined in the Charity Commission general guidance on public benefft when reviewiThJ the charivs aims and objectives and in planniry fulwe acliwlies and setting the grant making policy for the year. The charity's income is generated from investment income aThl the available InMe was distributed in the year, otheiSe paid lo a similar charity lo thi$ one. The main strategy for the above aims and ob1w¥es is to maintain a stable flow of d¢)natKJns going to worthy causes in the Jewsh community. The govemors also aim to exparKI the charitys investment portt01 %thenever the opportunity arises. No pattic#Jlar criteria or measures are used lo assess success in achieving these aims obiecbves. The only activities undertaken have been rTh)nrtoring the charws investment incc¥ne and makong distributions to number of charities in accordance with the above objectives and policies. Achievernents and pèrformance The charity has continued to distribute funds to other charities during the year. AJI of the avaikble incoming resources. after the charity met its loan payment obligations. were distributed benefitting the recipient organisalions 8ccordingly, or else paKI to a charity with the same governors, obpcts and purpose as this one. Any remaining cash reserves available will k put towards future investment purposes. The charitys investment properties generated nel cash retums in line with expectations. The charity disth"buled or otherM8e paKI to another similar charty the maximum 8v81latè. At the year ènd the charity held UK properties as inve5trnents %thich were valued at £5,900,000 and generated gross rental income of £439,304.
GAMA TZEDAKA LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review The charity's fvnds for distribution derived from propety investment from its own propety. The total of nel incoming resources Vfds £499,284 which resulted in a surplus of £156.921 after charitable donations of £186.000 and other tharitable expenses of £156,363. The financial w)sition of the charity at the end of the year is sel oul on page 9. with cbsing funds of £3,355,822. No significant event affected the flnan(aal performance and financial position of the charity during the year. Nor have any been hjenlified tt)al are likely to do so currently or in the future. The governors have identified the wincipal risks and uncertainties facing the charty and have algj adopted plans and strategies lo manage these as follows: decline in values of investment prcperties, managed by investing in wod quality buildings with reliable tenants as confimied by the independent valuations obtained on purchase and by ¢)wn regular moniioring fall in income.. lelting only to Teliab5e tenants as above-, mainlainiro infr)rmal reserves in the tharty- having funds available to the govemoTS lo lend lo the charty rf required. There is no fomial policy to maintain a set level of Teserves. The govemors are continually looking appropriate investments which wll ensure that high level of rÈtums Can be achieved for the charity's benefit. The govemors. invesbnenl powefs are gove[rd by the charity'8 Artides of AssoL¥ation vthich permit the govemors to invest the tharity's funds as they may see fft. The govemors are experienced prowty investors and have invested the charit15 lunds in propety in order to generate funds for distribution. Investments are chosen on the basis of achieving a in excess of that available from cash deposit$ while maintsining security of inwme. The govemors have assessed the major risks to whith the charity is exposed. and are satisfied that Systems are in pla lo mitigate exposure to the major risks. The govemors will continue to purchase further investments when they believe it Is in the best interests of the charity. Structurey governance and management The charity is limited by guarantee. It was incorporated on 24 July 1984 and gIStered as a charity on the same date. The tharity was established under 8 Memorandum ofAssociats"on which estsblished the objects and powers of the thantable ¢x)mpany and is governed under its Artides ofAssociation. The governo. who are also the directors for the purpose of fX)mpany law, and who sewl during the year and up to the date of signalure of the financial statements were: MrPJay MrDJay MrlSJay Governor5 are recommended and appointed by the Board of Govemors. None of the governors has any benefic#al interest in the ¢harity. All of the pvernots are members of the charity and gltarantee to (#tribUte an amount not exeding £1 kn the event of a wnd1j up. The board of governors administèrs the charity who retsin complete responsibility for its management. Auditor In accordance with the (MPan¥S 3cleS, a resoluts.on PTOP05ing that Lopian Gross Bamett & Co be reappointed as auditor of the cornpany will be pul at a General Meetong.
GAMA TZEDAKA LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED FOR THE YEAR ENDED 31 DECEM8ER 2023 Small companies exemption This repx)rt has been prepared in a¢¢ordance provisions aplicable to companie5 entiUed to the small corrpanies exemption. Dis¢losure of inforniation to auditor Each of the govemors has confirmed that there is no infomiation of which Ihey are aware which is relevant lo the audit, but of which the awlitor is unaware. They have further conf1ml that they have taken approprTale steps lo idenlify such relevant infomwtion and to establish that ts aLKlitor is avrdre of such infomiation. The gove Fort was approved by the Board of Govemors. MrDJ Govemor 031 912024
GAMA TZEDAKA LIMITED STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The govemors, who are also the directors of Gama Tzedaka Limited for the purpose of c4)mpany law, are responsible for preparing the Governors. Rewrt and the finaniial statements in ac(x)rrJan( applicable L4w and United Kingdom Accounting Standards (United Kingdom Generally Accepted ArUnting Practice). Company Law require8 Ihe govemors to prepare financial slatements for each finan¢ial year lch give a true and fair view of the stale of affair5 of the company and of the incoming fescljrces and application of resourcEs, induding the income and expendrture. of the charitable company for that year. In preparing these ffinanal statements, the govemm are required to: - select suitable accounting ry)licies and then appty them sIstenI1Y-, - observe the meth(Kls and principles in the Charities SORP., - make judgements and estimates that are reasonable and prudent: stste whether applicable UK A¢ts)untir¥J Standards have been followed, sutiect to any material departures disdosed and eXained in Ihe financial statements.. 8Trd prepare the finarKial staternents on the Ing con¢em basis unless it 15 irrappTopriate to pregjme that the Company will continue in cyÈration. The govemois are resPcS1t1e for keeping adequate accounting records that disc105e with reasonable accur8cy at any time the financial posilion of the wmpany and enable them to ensure that the financial statements rnpty with the Compani&8 Act 2006. They are also responsible for safeguardillg the assets of the company and hènce for lakn'ng reasonable steps forthe pre¥Rntion aThl dÈtecon of fraud and other irregulanties.
GAMA TZEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF GAMA TZEDAKA LIMITED Opinion We have audited the financlal ststements of Gama Tzedaka Lirrmted Ilhe 'covnpany'l for the year ended 31 December 2023 which comprise the statement of financial actiVe. the balance sheet, the statement of cash flows and the notes to the financial slatemenls, including Significant arLounting policies. The financial repo.ng framework that has been applied in their preparation is applicable law and United Kingdom Ac(x)untsng Standards, induding FRS 102 The FanCial Repothng Standard applicable in the UK and Republ oflreland. In our opinion, the financial ststements.. give a true and fair view of the state of the tharitable companrfs affairs as at 31 December 2023 and of its in¢oming resouTfES and application of resour, for the year then ended-, have been properfy prepared in accordance wth United Kingdom Generally Accepted Accounting Pradi¢e.' and have been prepared in accordance with the requirements of the CorTyanie$Act 2LKI6. Basis for opinion We ojnducted our audlt in acts)rdance with International Standaid$ on Auditing IUKI {ISAs IUKI) and applicable law. Our responsibilities under those standards are hjrther dÈs¢ribed in the Audrtorfs responsibilities for the audit of Ihe finanal statements section of our report. We are independent of the cownpany in accordan( with the ethical requirements thal ate relevant to our audit of the financial statements In the UK, including the FRC'S Ethl¢81 Standard. and we have fulfilled our other ethical responsibilities in acixjrdance vmth these requirements. We b81i&¥e that the audit eVKIen we have tsbtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relaling to going concern In auditir)g the financial slalements, we have conduded that the govem¢xs' use of the going ¢on¢em basis of accounting in the preparation of the finanaal statements is apFwriate. Based on the work we have rform3J, we have not identified any material uncertaintias relating lo events or condith)ns that, indiwdually or collectively, may cast signtfi¢8nt doubl on the companYs ability to continue as a going ncem for a period of at least fftlve months froffl when the financial ststements are aulhorised for issue. Our responsibilities and the responsibilities of the govemors with respect to going c£•ncem are described in the relevant sections of this report. Olher infomialion The other infomiation comprises the infomiation included in thÈ annual report other than the financial ststements and our auditorfs repK)rt Ihereon. The govemors are responsible for the other information contsined within the annual reporL Ouf opinion on the finanaal statements does not covei the other information and we do not express any fomi of assurance o)nclusion thereon. Our responsibility is lo read the other information and, in doing so. consider whether the other Infomialion is materially inixjnsistent with the ffinancjal statemen15 or our knoedge obtained in the urse of the audit, or olheNi8e appears lo be materially misstated. If we identify such material inconsistencies or apparent material mi8ststements, we are required to determine whether thi5 gives rise to a material misslalement in the financial statements themselve5. If, based on the work we have performed, we condude that there B 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 lo report in respect of the frAlowing matl¥s in la110n to which the Charities (A¢nts aNJ Reports) Regulations 2008 require us lo reFKJrt to you rf, in our opinion= the information given in the finarKial staterrEnts is inconsistent in any nwlerial respect with the govemors. report.. or Sufficient accounting records have not been kept., or the financial ststements are not in agreemenl with the accounting records. or we have not reiVed all the infomialion and eXanatIorts we require for our audrt.
GAMA TZEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF GAMA TZEDAKA LIMITED Responsibilities of governors As explained more fully in the statement of goverrS, responsibilities, the g)vemors, are also the directors of the company for the purpose of o)mpany law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal control as the govemors detemiine is neSSary to enable the preparation of financial statements that are free from material mis5tatefflent, whether due to fraud or error. In preparing the financial statements, the governors are responsible for assessing the cKJmpany'$ ability to continue as a going coen. discl¢)sing. as applicable. matters related to going ¢oncem and using the ooing concern basis of accounting unless the governors either interKI to liquKJale the charitable company or to cease operations, or have no alistiC aKwnative bul lo do so. AuditoV$ 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 regul81ions rnade or having effect thereunder. Oui objectives are to obtsin feasonable assuran a)ut whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an auditorfs report Ihat indudes our opinion. Reasonable assurance is a high level of a&quran¢e but is not a guarantee that an audit conducted in accordance with ISAS IUKI will aayS detect a material misststement when it exists. Misststements can arise from frautl or error and a considered material if, indivJually or in thÈ aggregate, they could reasonAy be exFected to irffluence the economic decisions of users tsken cffi the basis of these financial ststements. Irregularities, induding fraud, are InStanS of non-compliance with laws and regulats"ons. We design prtscÈdurÈs in line th our responsibilities, outlined aVe, to delect material misststemeftts in respect of irTegtJlarities, including fraud. The extent to which our proc£dures 8re capable of detecting irregularities, including fraud, is detailed below. WÈ obtained an understandirvJ of laws aNI regulations that affect the entty, fcusirwJ on those that had a direct effect on the financial statements orthat had a fvndamentsl effect on its operations. Where considèred necessary we enquired of those charged with governance, reweyd corresponderKe and reviewed meeting rrmnutes for evidence of nonryojmpliance with relevant laws and regulations. We gained an understanding of the contro13 environment which indudes the controls in pla to prevent and delect fraud. We enquired of IFw)se charged wth govemance about any incKiences of fraud that had taken place during the accounting period. The risk of fraud and nort-txjmpliance laws and regulatlons was discjjssed wiU)in the audit team and tests were planned and performed to address these risks. We reviewed financial statements disclosures to assess compliance with relevant laws and regulations. We enquired of those charged with govemance about actual and potential litigation and claims. W& perfomed analytical proc&Jures to identify any unusual or unexpeoted relationships that might indicate risks of material misstatement due to fraud. In addressing the risk of fraLKY due to management override of internal (x)ntrols we tested the appropriateness of joumal enliies arKI assessed whether Ihe judgements made in Mang aunting estimates were indieative of a potential bias. Due to the Inherent limitations of an audit, there is an unavcmdable risk that we may not have detected some material misstatements the financial statements. even though we have propedy planned and performed our audit in acrdanI* With auditing standards. For example, as with any audit, there remained a higher risk of non4eteolion of iegUlarities, as these may involve Collusion, forgery, intentional omissions, misrepresenlaln$, or the override of intemal (x)ntrols. We are not responsible for prevents'ng fraud non-complian with laws and regulations and Cannot be eX¢ted to detect all fraud and non-compliance with laws and regulations.
GAMA TZEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF GAMA TZEDAKA LIMITED A fijrther description of our responsibilities is available on the Financial Reporting Counal's website at: https=Il www.frc.org.uklauditorsresponsibilities. This desttiption fomis part of our auditor's report. Use of our report This report is made solely to the Char3 trustees. as a bcdy. in aD)Jrdance with part 4 of the Charities {Accounts and ReFX)rtsl Regulation8 2008. Our audit work has been undertaken so that we might stste to the charitys tnjslees those matters we are required to state to them in an auditorfs repcrt and for no other purpose. To the fijllesl extent pemitted by law, we do not accept or assume responsibility to anyone othei than the tharity and Ihe tharity's trustee5 as a body, for our audit work, for this rgport, or for th& onn5 we have foThrd. Mr Jonalhan Brodle {Senlor Statutory Auditor) for and on behalf of Lopian Gross Barnett & Co 0310912024 Chartered A¢¢ount•nts Statutory Auditor 1st Floor. Cloister House Riverside New Bailey Street Manchester M3 5FS Lopian Gross Barnelt & Co is eligible for apw)inlment a5 auditor of the oxnpany by virtue of its eligibilty for appointment as audrtor of 8 company under section 1212 of the Companies A¢t 2006.
GAMA TZEDAKA LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Not•s Income from: Donatn5 and legacies Investments 59,980 439.304 439.321 Total income 499.284 439,321 Ex enditure on: Charitsblè aetivllies 186.1J 186.ODO ¢)Iher 10 156,363 169,633 Total resources •xpend•d 342,363 355.633 Net income lor the ye•rl Net movement in funds 156,¥21 83,688 Fund balances at 1 January 2023 3.198.1 3.115,213 Fund balances at 31 December 2023 3.355,822 3.198,901 The ststement of financial actiwlies includes all gains and losses recognised in the year. The statement of financial actNilies includes all gains and losses recognised in the year. All inDJme and expenditu derive from ntinUIng activities. The slalement of financAal acliwties also complies wlh the requirem•nts frjr an income and expenditure account under the Companies Act 2006.
GAMA TZEDAKA LIMITED BALANCE SHEET AS AT31 DECEMBER 2023 2023 2022 Noteg Fixed assets Investment propeities Investments 12 13 5,900,( 5,900,000 5.900.001 5,900,001 Current assets Debtors Cash at bank and in hand 14 65.812 5.854 63.312 71.666 63.312 Creditors: amounts falling due within onè year 16 {718.8221 1832,8261 Net current liabilities (647,156> 1769,5141 Total assets less Current liabilities 5,252.845 5,130,487 Creditors: amounts falling due after more than one year 17 {1.897.023) 11.931,5861 Net assets 3,355.822 3,198.901 Income funds Unrestrithd lunds General unrestricted funds Revaluation reserve 1,631,672 1,724.150 1.474,751 1,724,150 3,355.822 3.198,901 3.355.822 3,198,901
GAMA TZEDAKA LIMITED BALANCE SHEET (CONTINUED) ASAT 31 DECEMBER 2023 The company is enlitled to the exemption from the audit requirement contained in sectton 477 of the Companies Act 2006, for the year ended 31 December 2023. amhough an audit has been carried out under section 144 of the Charities A¢t 2011. The directors ackTh)vAedge their responsibilities for complyir¥J with the requirements of the Companies Act 2006 with respèct lo accounting records and the preparati¢n of financial statements. These financial 8talements have been prepared in accordance with the provislons applicable to wrpanies subject to the small companies regime. The financial st 0310912024 nts were approved by the &)vernors on......................... MrP Gove Co ny istration M 01835501 io-
GAMA TZEDAKA LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows fr¢)m operating activities Ca$h abSbed by operations 1398,8201 129.5601 Investing activities Rental in¢x)me received 439. 439,321 Nèt cash generated fr4)m investing activit*s 439.304 439,321 Financing activities RepayThent of bank loans 134,563) {445,5371 Net Cash usad in financing activitios 134.5631 1445.537} Net incrpasel(decreasel in Ga5h and cash equivalents 5,921 (35,7761 Cash and cash equivalents at beginniThJ of year 1671 35,709 Cash and cash •quival?nts * énd of year 167) Relating to: Cash at bank and in hand Bank overdrafts included in credhors payable within one year 1671 11
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Charity infonnation Gama Tzedaka Limited is a prNate company limited by guarantee incorporated in England and Wale5. The regIsterj office 18 Foframe House, 2nd Floor, 3547 Brent Street, London. NW4 2EF. 1.1 Ac¢ounting Convention The finanual ststements have been prepared in accordance wth the Companies Act 2006 and "Aoxunling and RepK)rting by Charities" Statement of Re¢ommended PraCts. applicable to charit5 weparing their accounts in accordan with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS 1021. {8s amended for accnting periods commencing from 1 January 2019}. The company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterlng, which is the functional wrrency of the c4)mpany. netary amounts in these financial Statents are rounded to the nearest £. The financi81 Statements have been prepared under the historical o)st convenlion, IrTh)dified to include th revaluation of freehold wopertie5 and to indude investment properties and certaiTI financial instruments at fair valuel. The principal acxounb'ng w)licies adopled are set out below. 1.2 Going concwn Al the time of approving Ihe financial statements, the govemots have a reasonable expe¢talion that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the govemors continue to adopt the Xng concem basi5 of aCntIng in preparing the finala1 slalements. 1.3 Charitable funds unreStrted funds are av8ilable for us& at the discretion of the govemtxs in fvrtherance of their ¢haritsble objectives. Funds held by the charity are all unrestricted. These belng funds which can used in accordance wth the charitable objects at the disuÈlion of the governors. 1.4 Incoming resources Income is recognised when Ihe company k8 legally entided lo it after any perfom)ance conditions have been met, the amounts can be mèasured reliably, and it is probable that in(yJme will be received. Cash donations are recognised on ret. Other donations are recA)gnised On the wmpany has been notified of the donation. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations reNed under Grft oi deeds of covenant is recognised at the time of the donation. Legaoies are recognised on reipt or (rtherwise if the company has been notified of an impending dislributK)n, the amount is known, and relp1 is expected. If the amount is not known. the legacy is treated as a contingent asset. Investment income represents amunts receivable for rents and seNices. Investmerbt COrne is recognised on the commenment of and in afxordance wth a lease. adjusted for any innINeS as required under FRS102. A property is regarded as sold when significant risks and retums have been transfeed to the buyer. For conditional exchanges, sales are re¢ognised as the conditions are satisfied. 12
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting poliGigs (Continued) 1.5 Resour expended Expenditure is reeAignised once Ihere is a legal or consttuctive obligation to transfer economic beneff( to third paty, it is probable Ihal a transfer of economic benefits will te required in seUlemen( and the amount of the obligation can be measured reliably. ExpÈnditurÈ is classified by activity. The costs of each activty are made up of the totsl of direol costs and sh9red costs, including support costs involved in undertaknng eath activty. Direct costs attributab to a single actimty are allocated directly to that activity. Shared costs whi¢h contribute to more Ihan one activity and support o)sts which are not attributable lo a single acts.vity are apportioned between those activities on a basis consistent wrth the use of resources. Central staff costs are allocated on the baS of time spent, and depreciation charges are amocaled on the portion of Ihe asset's use. ExnditUTe is recognised on an accruals basis as a liatxlty is IncjjrrJ. Charitsble expenditure comprises those o)sts incurred by the tharity in the delivery of its activibes and Serv for its bèneficiaiies. It includes both costs Ihat can be alocated directly to such activities and Ihose costs of an indirect nature necessary to support them. Other costs incIe all o)sts involving the public accountabilty of the tharity and its compliare regulation and good prath'. These iude costs relating to Statut audit and professional fees. Grants payable represent donations paid to religious. educational and simlar charities. and are recognised when paymnt is m8¢Je by the charity. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequenty measured at cost or valuatlon. net of deprecbation and any impairment losses. Tangible fixed asse15 are stated at cost les5 depreciation. Depre(aation 1$ provided al rates calcuLgted to write off the cost less estimated residual value of each asset over its expected usefvl life, as fdlows.. Fixtures, fftkn'ngs & equipment 33.33% straght line The gain or loss arislng on the disposal of an asset is tletemined as the difference the sale pro¢eeds and the Carrying value of the ass8t, and is rècognised in the statement of finan81 activities. 1.7 Investrnent properties Inveslment property, thich Is property hekl to eam rentals andlor for capital appreciation, k8 inilially iecognised al cost, which indudes the purchasè cost and any directly attributable expenditure. Subsequently il is measured al fair value at the reporting end date. The SUTplus or deficit on revaluation is recognised in the ststement of financAal activities. 1.8 Flxed asset Investments A subsidiary is an entity o)ntrolled by the charity. Control is Ihe power to govem the financial and operati policies of the entty as to obtsin benefits frn its acttVIt. 1.9 Cash and ¢ash equivalents Cash and cash equivalents include cash in hand, depos1 held at call with banks, other short-term liquid investments with onginal maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current IvalitieS. 13-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies {Continued) 1.10 Financial instruments The company has elected to apply the provssions of Section 11 'Ba&c Financial Instruments. and Secth)n 12 'Olher Financ4al Instruments Issues. of FRS 102 to all of tts financial instruments. Financial instruments are recognised in the companys balance sheet vthen the MpanY ber¥)mes party to the contractual provisions of the instrument. Financial assets and liabililies are offset, wilh amounts presented in the finan(#al statements, when there is a legally enforceable right to set off the recognised amounts and there is an intentK)n to setue on a net ba$1$ or lo realise the asset arKI settle the liability simultsneously. 8a$le financial assets Basic financial assets. which irKhJde debtor5 and cash and bank balances, are initially measured at Iran3aclion price including tran&tion costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transactiorb, where the transaction is measured al the present value of the frjture receipts discounted at a market rate of Inte$L Financial assets classified as receable wilhin one year are not amortised. Bask finanual lialmlities Basic finan(ial liabilities, indudir¥J creditor5 ar bank IDans are initially recognised at transaction prbce Un55 the arrangement ¢on51itules a financxng transaction, where the debt inslwment is measured at the present value of the future payments disrAJunted al a market rale of interest. Financlal liabilities dassified as payable wthin one year a not am0Sed. Debt instruments are subsequenuy carried at amLvlised cost, using the effective interest rate methrA. Derneagnltlon of flnandal liabilitses Financial liabilities are derecognised en the company's ctsnlractual obligations explre or are distharged or cancelled. 1.11 Oroup a¢counts The financial stalements pre8enl information about thè charity as an indiviual undertaking and not about Its group. The charity and its subsidkiry undertakings comprise a small group. The charity has thar&fore taken advantage of the ex8mplions provided by Se10n$ 399 of the Companies Act 2006 not to prepare group accounts. Crltlcal accountlng estlmates and judgements In the application of the cc¥mpanls acfx>unling FwJlici&s, the governors are required to make judgements. estimates and assumptK)ns about the carrwng amount of assets and liabilthes Ihat are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experien and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and undertying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised irb the period in which the estimate is revisd where the revisM)n affects onty that period, or in the period of the revision and fulure periods where the rewsion affects l)olh current and future rlcxjs. 14
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 310ECEMBER 2023 Income from donations and legacles Unrnstrided Unrestricted funds 2022 2023 Donations and gifts 59,980 Investments 2023 2022 Rentsl in(x)me 439,304 439.321 Expenditure ¢Jn ¢harit•ble a¢tivitie$ 2023 2022 Direct costs Grant funding of actlvhies (see note 6) 186,000 186.000 Analysis by fund Unrestricted funds le6,0 186,000 Grants payable Charitable activities Charrtable actiVe$ 2022 2023 Grants to institutions.. Other 186.wo 186,000 Included in the aiMJve weTe tharitable donations of £186,000 made to Achisomoth Aid Co Ltd {Reg. chaiity no. 2783871 for religious education and the relief of hardship. Net movement in funds 2023 2022 The net movement in funds is ststed after chargingllcreditingl: Fees PaYae fcf the audit of the charity's financial statements 4.800 4,200 15-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Governors None of the govemors lor any persons cnneCted vthh them) received any remune110 or expense5 during Ihe year. Employees The average monthly number of emp4oyees during the year was: 2023 Number 2022 Number Total There were no employees whose annual remuneration was re than £60,OCQ. 10 Other 2023 2022 Auditors. remuneration Audf(ors' fees for non-audit work Release of promsir Interest on bank loans and finan c¥Jsts Other expenditure 4,800 2.400 18.0501 155,717 1,496 4,200 2.100 162,614 719 156,363 169,633 11 Taxation The activities of Gama Tzedaka Limited are exempt from direca tsxalion under Part 11 of the Corporation T8X Act 2010. 12 Investment PrOty 20rJ Fair valu• At 1 January 2023 and 31 December 2023 5.900.000 The fair value of the investment pioperty has been arrived at on the basi% of a valuation carried out by a goverr of the (mpanY. The valuation was made on an open market value basis. The properties are secured against the bank loans to the charity. 16-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 13 Fixed asset investmenls Unlisted investments Cost or valuation At 1 January 2023 & 31 December 2023 Carrying am¢wnt At 31 Decernber 2023 At 31 December 2022 Fixed asset investment$ not rrIed at market value The above investment is sh¢)wn al cost. The chartty owns the whole of the18sued ordinary share capital of S¢yJthaTr Cross PropcKJ 1 Limited. Southem Cross Propo) 1 Limited owns 100% of the issued ordinary share capital of St Oswalds House Limited. St Oswalds House Llmited owns 1CQVo of the issued share cawtsl of Ashland$ Limited. AJI the ¢xYnpanies were dormant throughout the year. 14 Debtors 2023 2022 Amounts falling due within one year: Amounts owed by subsidiary undertakings other debtors Prepaymellts and accrued income 1,177 16,492 48.143 1,177 13,992 48,143 65.812 63,312 17-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15 Loans and 0¥ordrafts 2022 Bank overdrafts Bank loans 67 1.966.586 1.932.023 1,932,023 1.966,653 Payable within one year Payable after one year 35.oc 1,897.023 35.067 1.931.586 AnKJunts included aiwe whl¢h fall due after five years.. Payable by instalments Payable other than by Instalments 26.250 1,765.336 1,791.S86 The long-term loarts are se¢ured on proFety investments. 16 Creditors: amounts falling due within one year 2023 2022 Notes Bank loans and overdiafts Amounts owed to Subdiary undertakings Other creditors A¢cruals and deferred income 15 35,000 1,442 675,180 7,2¢X) 35,067 1,442 781,967 14,3SO 718.822 832,826 Included in other creditors is an amount of £69,343 (2022 '. £129,323) due to companies under common control with this one, and £605.83712022 .. £652,644) due to another charity with the same governors. objects and purpose as this one. These loans are interest free and are repayable on demand. 17 Creditors: amounts falling due after more than one year 2023 2022 Notes Bank loans 15 1,897.023 1,931.586 18
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Unrestricted funds The unrestricted funds ofthe chartty ujmprise the unexpended balan$ of donations and grants which are not subject to speufic Lxjndilions by donots arvj grantor5 a5 to howthey may be used. These indude designated funds which have been set aside out of unrestn.cted funds by the trustees for specific purposes. At 1 January In¢oming Resources 2023 resource5 expended At31 December 2023 General fvnds 3,198,901 499,284 1342,3631 3,355,822 Previous year: At 1 January In¢oming Resources 2022 vesources expended At31 December 2022 General funds 3.115.213 439.321 1355,633) 3.198,901 19 Related party tran5actiDn5 TMns•clions with relatsd parties During thè aT the Ixjmpany entered into the fdlowng transactions wth related parties: The followir¥J amounts were outstanding al the reporting end date.. Amounts owed to related partie$ 2023 2022 Other related parties 675,180 781,967 Induded in the above 1$ £605,837 duè to another charity with the same govem¢xs, objects and purpose as this one. There were no other related party transactions during the year which require disck)sure. 19
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Subsidiaries Delals of the compan8 subsidiaries at 31Debe[ 2023 are a8 follows.. Name of undertaking RegisteThl i)ffice Nature of business Class of % Held shares held Direct Indirect Southern Cross Prop(y) 1 England and Limited Wale$ Ashlands Limited England and Wales St Oswalds House Limited England and Wales Dont Ordinary 100 Dom)ant Ordinary 100 Dom)ant Ortjinary 100 The aggregate capital and reserves and the result for the year of subsidiaries exduded fmm o)nsolMJati was as follows= Name ol undertaking PrOf{Lo$s Capilal and Scthern Cross Propco 1 Limiteij Ashlands Limited Sl Oswalds House Limited 1,002 277,11yJ 21 Cash generated from oiwalions 2023 2022 sUu$ for the year 156,921 83.688 Adjustments for.. Investment income recniSed in ststement of financial adivities {439,3041 {439.321) Movements in working capiial.. Iln¢reaseydecrease in debtors IDecreaseyin¢rease in creditors 12,5001 1113.9371 26.679 299,394 Cash absorbgd by operations 1398,820) 129,560)
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 Anatysis of change$ in net Idebtllfunds At l January 2023 Cash Ilows At 31 December 2023 Cash al bank arKI in hand Bank overdrafts 5,8S4 67 5,854 (67> (67) 5,921 5,854 Loans falling due within one year Loans falling due after more than one year {35,000) (1,931,586) 135.0001 11,897,023) 34.563 (1.966,6531 40,484 11,926,1691 21