2021-04-05-accounts - Beth Hamedrash Knesset Yehezkel

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BETH HAMEDRASH KNESSET YEHEZKEL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

BETH HAMEDRASH KNESSET YEHEZKEL

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

CONTENTS Trust information Trustees’ report Independent Examiner’s report Statement of financial activities Balance sheet Statement of cash flows Notes to the financial statements	Page 1 2 - 5 6 7 8 9 10 -16

BETH HAMEDRASH KNESSET YEHEZKEL

TRUST INFORMATION

Registered Charity Number	:	299763
Trustees	:	Anthony Shasha
		Dean Cohen
		Michael Yattah – resigned 23 October 2020
		Daniel Tamman
Administrator	:	Leon Hazan
Independent Examiner	:	Anthony Epton
		Goldwins Limited
		Chartered Accountants
		75 Maygrove Road
		West Hampstead
		London NW6 2EG
Principal Address	:	185-187 Golders Green Road
		London NW11 9BY
Bankers	:	HSBC PLC
		897 Finchley Road
		London NW11 7NX

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their annual report together with the financial statements of Beth Hamedrash Knesset Yehezkel for the year ended 5 April 2021.

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 (FRS102- effective 1 January 2015- (Charities SORP FRS 102) and the Charities Act 2011.

Structure, governance and management

The Governing Document is a constitution dated 11 July 1988 as amended 25 June 2021. The trustees meet regularly to determine the general policy of the charity. The board is kept rather small to allow work being done efficiently.

The Trustees who served the charity during the period were as follows:

D Tamman D Cohen Anthony Shasha Michael Yattah -– resigned 23 October 2020

None of the trustees have any beneficial interest in the charity.

Objects and activities for public benefit

The Beth Hamedrash Knesset Yehezkel is a charity whose purpose is to advance religion in accordance with the orthodox Jewish faith as practised by the Sephardi Jews as laid down in the Shulchan Aruch.

Risk Management

The charity is aware of the major risks to which it is exposed and monitors them with the effect that all such risks are mitigated wherever possible. Such risks are subject to a regular monitoring and wherever possible mitigated. The trustees confirm that they are not aware of any significant factors which may have affected the achievement by the Charity of its objectives and activities

Reserves Policy

The charity maintains a sufficient level of reserves to meet its day-to-day activities and also its expenditure plans for the next six months. As at 5 April 2021 of free unrestricted reserves were £4,986 in deficit. There were however £5,938,661 of restricted reserves in relation to the building project at 185-187 Golders Green Road, London NW11. Such a position will be reviewed annually.

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2021

Cont....

Achievement and performance

Each year the trustees review the objectives and activities of the Charity to ensure they are consistent. In carrying out this review, the trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for public benefit.

While carrying on with the new build of the synagogue and community facilities of its premises Beth Hamedrash Knesset Yehezkel has continued to offer a varied programme of activities and lectures throughout the year. In addition to holding daily services, on Shabbat, the Charity has also held a children service. Members of the community participate

The Charity also provides assistance to facilitate religious education for children of the community. Grants are also awarded to advanced students to enable to study religious texts.

During the year, the Charity continued refurbishment of 185-187 Golders Green Road (NW11).

Financial review

During the year the charity made a net deficit of £64,439 (2020 net surplus £1,342,808) resulting in net assets of £5,933,675 (2020 net assets £5,998,114). The principal funding sources of the Charity were voluntary donations and income derived from membership. The decrease income of the Charity for the year ended 5 April 2021 was due to a decrease in voluntary donations gifted towards the ongoing building works to rebuild the Charity’s premises at 185-187 Golders Green Road NW11. As a result of the ongoing internal dispute, income levels have also been adversely affected but the trustees are seeking to resolve this as best and as quickly as possible. The Treasurer together fellow trustees of the Charity review the funding sources on a regular basis to ensure that they are sufficient to cover the running costs of the Charity as well as the costs associated with the building works.

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2021

Cont....

Public benefit

The principal activities of the charity during the year continued to be to advance religion in accordance with the orthodox Jewish faith as practised by the Sephardi Jews as laid down in the Shulchan Aruch. 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 earlier in this report.

Investment policy and returns

The Charity does not hold substantial amount of cash, therefore any excess of cash should, whenever relevant, be placed in interest bearing bank accounts. Should the Charity hold substantial amount of cash in the future, such policy should be reviewed and adapted by the trustees.

Plans for the future

The Charity is seeking to resolve its internal dispute which in turn will improve its financial position and fully implement the goals of the construction project.

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

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2021

Cont....

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 on 24 January 2022 and signed on its behalf.

............................................... TRUSTEE ANTHONY SHASHA

TRUSTEE DEAN COHEN

BETH HAMEDRASH KNESSET YEHEZKEL

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF BETH HAMEDRASH

KNESSET YEHEZKEL

I report to the trustees on my examination of the accounts of the Beth Hamedrash Knesset Yehezkel for the year ended 5 April 2021.

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

Since the Trust’s gross income exceeded £250,000, I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

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:

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
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.

Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG

24 January 2022

BETH HAMEDRASH KNESSET YEHEZKEL

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 5 APRIL 2021

			Unrestricted	Restricted	Total	Total
			Funds	Funds	Funds	Funds
		Notes	2021	2021	2021	2020
Income from:			£	£	£	£
Donations			305,771	197,867	503,638	1,815,036
Investment income			-	-	-	4,210
			_	__	__	_
Total income			305,771	197,867	503,638	1,819,246
			======	=======	=======	=======
Expenditure on:
Charitable activities	3		294,396	273,681	568,077	476,438
			_	_	_	_
Total expenditure			294,396	273,681	568,077	476,438
			======	======	======	======
Net (deficit)/income for the year			11,375	(75,814)	(64,439)	1,342,808
Transfers between funds			(32,451)	32,451	-	-
			_	__	__	_
Net movement in funds			(21,076)	(43,363)	(64,439)	1,342,808
Reconciliation of funds
Total funds brought forward			16,090	5,982,024	5,998,114	4,655,306
			_	__	__	_
Total funds carried forward	11		(4,986)	5,938,661	5,933,675	5,998,114
			======	=======	=======	======

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.

BETH HAMEDRASH KNESSET YEHEZKEL

BALANCE SHEET AS AT 5 APRIL 2021

2021
2020
Note
£
£
£
£
FIXED ASSETS
Tangible assets
6
8,955,820
8,028,592
CURRENT ASSETS
Stock
8
800
800
Cash at bank and in hand
6,631
621,833
_
_
7,431
622,633
CREDITORS:Amounts falling due
within one year
9
(10,021)
(3,200)
_
_
NET CURRENT ASSETS
(2,590)
619,433
_
_
TOTAL ASSETS LESS CURRENT LIABILITIES
8,953,330
8,648,025
CREDITORS:Amounts falling due
after one year
10
(3,019,555)
(2,649,911)
_
_
TOTAL NET ASSETS
5,933,675
5,998,114
=======
=======
FUNDS
Unrestricted
(4,986)
16,090
Restricted
11
5,938,661
5,982,024
_
__
TOTAL FUNDS
5,933,675
5,998,114
=======
=======

Approved by the Board of Trustees on 24 January 2022 and signed on its behalf by

........................................ ........................................ Trustee Trustee Anthony Shasha Dean Cohen

BETH HAMEDRASH KNESSET YEHEZKEL STATEMENT CASH FLOWS AS AT 5 APRIL 2021 Cash flows from operating activities: Net cash provided by / (used in) operating activities Cash flows from investing activities: Sale/ (purchase) of fixed assets (1,111,348) Cash provided by / (used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Reconciliation of net income / (expenditure) to net cash flow from operating activities Net income / (expenditure) for the reporting period (as per the statement of financial activities) Depreciation (Increase)/ decrease in debtors Increase/ (decrease) in creditors Net cash provided by / (used in) operating activities Analysis of cash and cash equivalents At 6th April 2020 £ Cash at bank and in hand 621,833 Total cash and cash equivalents 621,833	2021 £ 496,146 (1,111,348) (615,202) 621,833 6,631 2021 £ (64,439) 184,120 - 376,465 496,146 Cash flows £ (615,202) (615,202)	2020 £ 2,707,705 (3,934,665) (3,934,665) (1,226,960) 1,848,793 621,833 2020 £ 1,342,808 138,299 10,537 1,216,061 2,707,705 At 5th April 2021 Other change s £ £ - 6,631 - 6,631	2020 £ 2,707,705 (3,934,665) (3,934,665) (1,226,960) 1,848,793 621,833 2020 £ 1,342,808 138,299 10,537 1,216,061 2,707,705 At 5th April 2021 Other change s £ £ - 6,631 - 6,631
			(1,226,960) 1,848,793
			621,833
			2020 £ 1,342,808 138,299 10,537 1,216,061
			2,707,705
			At 5th April 2021 £ 6,631
			6,631

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

The Beth Hamedrash Knesset Yehezkel is a registered Charity number 299763. The aims of the Charity and a description of how they are fulfilled during the year are detailed in other sections of this Annual Report.

1 Accounting policies

a) Basis of preparation

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) and the Charities Act 2011.

The charity 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 or note.

b) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

c) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

d) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies (continued)

e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

f) Depreciation

Fixtures and Fittings are depreciated at 20% on a straight-line basis and Motor Vehicle is depreciated at 25% on a straight-line basis, which are estimated to write off the assets over their estimated useful life. The freehold properties excluding land are depreciated over a period of 50 years.

g) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

h) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2. DETAILED COMPARATIVES

Unrestricted Restricted
Total
Funds
Funds
Funds
2020
2020
2020
Income from:
£
£
£
Donations
160,276 1,654,760
1,815,036
Investment income
-
4,210
4,210
_
_
_
Total income
160,276 1,658,970
1,819,246
======
======
======
Expenditure on:
Charitable activities
283,776
192,662
476,438
_
_
_
Total expenditure
283,776
192,662
476,438
======
======
======
Net income/(expenditure) in the year
(123,500) 1,466,308
1,342,808
Transfers between funds
(130,950)
130,950
-
_
_
_
Net movement in funds
(254,450) 1,597,258
1,342,808
Reconciliation of funds
Total funds brought forward
270,540 4,384,766
4,655,306
_ _
_
Total funds carried forward
16,090 5,982,024
5,998,114
====== ======= =======

NOTES TO THE FINANCIAL STATEMENTS

BETH HAMEDRASH KNESSET YEHEZKEL

FOR THE YEAR ENDED 5 APRIL 2021

3 Analysis of expenditure

Charitable grants Wages & pension Catering costs Lecturers Depreciation Telephone Motor & travelling Printing, postage & stationery Repair & maintenance Office, cleaning & sundry expenses Rates & utilities Bank charges & interest Rent payable Examiner’s fees Accountancy fees Professional fees Support costs Governance costs Total expenditure 2021	Charitable activities £ 59,168 36,777 2,599 10,262 184,120 - - - - - - 89,561 - - - - 382,487 161,428 24,162 568,077	Support costs £ - - - - - 1,083 5,631 180 15,249 80,730 33,601 24,954 - - - 161,428 (161,428) -	Governance costs £ - - - - - - - - - - - - 11,400 10,170 2,592 24,162 (24,162) 24,162	2021 £ 59,168 36,777 2,599 10,262 184,120 1,083 5,631 180 15,249 80,730 33,601 89,561 24,954 11,400 10,170 2,592 568,077 - - 568,077	2020 £ 74,735 12,515 50,495 7,149 138,299 312 2,478 6,670 4,890 16,789 13,789 54,363 24,560 5,000 12,900 51,494
					476,438
					476,438

Of the total expenditure, £294,396 (2020: £283,776) was unrestricted and £273,681 (depreciation & bank charges/interest) was restricted (2020: £192,662).

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

NET INCOME/(DEFICIT) FOR THE YEAR	2021	2020
This is stated after charging:	£	£
Depreciation	184,120	138,299
Auditors’ remuneration	-	7,250
Independent Examiner’s fees	3,900	-
	=====	=====

5. TAXATION

The Trust is not liable to Tax on its income as it falls within the various exemptions available to registered charities.

6. TANGIBLE ASSETS

			Fixtures,
	Motor	Freehold	Fittings &
	Vehicles	Property	Equipment	Total
	£	£	£	£
COST
At 6 April 2020	16,990	8,244,171	138,086	8,399,247
Additions	-	1,084,084	27,264	1,111,348
Disposal	-	-	-	-
	_	__	_	__
At 5 April 2021	16,990	9,328,255	165,350	9,510,595
	======	=======	======	=======
DEPRECIATION
At 6 April 2019	16,990	221,557	132,108	370,655
Charge for year	-	176,565	7,555	184,120
Disposal	-	-	-	-
	__	_	_	_
At 5 April 2021	16,990	398,122	139,663	554,775
	=====	======	======	======
NET BOOK VALUE
At 5 April 2021	-	8,930,133	25,687	8,955,820
	=====	========	======	========
At 5 April 2020	-	8,022,614	5,978	8,028,592
	=====	========	======	========

The value of land not depreciated, included in freehold properties, is £1.8m.

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

7 . ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

Staff costs were as follows:

Salaries and wages Pension	2021 £ 35,054 2,598 37,653	2020 £ 12,345 170 12,515

One former trustee received remuneration during the year of £26,384 (2020: £7,878).

No employees earned more than £60,000 per annum.

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

No trustees received any payment or reimbursement of travel and subsistence costs. The key management personnel are the trustees who were not remunerated.

The average number of employees (head count based on number of staff employed) during the year was as follows:

8.STOCK Picture for resale = Charitable activity Support	2021 2021 £ 800 ==== 1 1 2	2020 2020 £ 800 ==== 1 1 2

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

9.	CREDITORS: Amounts falling due within one-year	2021	2020
		£	£
	Accruals	6,740	3,200
	Net wages	2,821	-
	Taxation and social security	460	-
		______	______
		10,021	3,200
		=====	=====
10.	CREDITORS: Amounts falling due after one-year	2021	2020
		£	£
	Other Loans	2,969,555	2,649,911
	Government Bounce Back Loan	50,000	-
		_	_
		3,019,555	2,649,911
		=======	======

Included in other loans is a £250,000 loan repayable in 2025 and interest is charged at an annual rate of 3.75% above the average base lending rate of six high street banks.

Included in other loans is a £2,719,555 loan repayable in 2042 and interest is charged at an annual rate of 2.75% above Unity Trust Bank’s base rate. This loan is secured on 185-187 Golders Green Road, London NW11 9BY.

RESTRICTED FUNDS

	Balance			Balance
	6 April			5 April
	2020	Income Expenditure	Transfers	2021
	£	£ £	£	£
Building fund	5,982,024	197,867 (273,681)	32,451	5,938,661
	=======	======== ======	======	========
RESTRICTED FUNDS -PRIOR YEAR
	Balance			Balance
	6 April			5 April
	2019	Income Expenditure	Transfers	2020
	£	£ £	£	£
Building fund	4,384,766	1,658,970 (192,662)	130,950	5,982,024
	=======	======== ======	======	========

The Building Fund is a restricted fund used for the purpose of developing the charity’s freehold property.

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible assets	-	8,955,820	8,955,820
Current assets	5,035	2,396	7,431
Creditors	(10,021)	(3,019,555)	(3,029,576)
	_	__	_
	(4,986)	5,938,661	5,933,675
	======	=======	=======

ANALYSIS OF NET ASSETS BETWEEN FUNDS-PRIOR YEAR

	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible assets	-	8,028,592	8,028,592
Current assets	19,290	603,343	622,633
Creditors	(3,200)	(2,649,911)	(2,653,111)
	_	__	_
	16,090	5,982,024	5,998,114
	======	=======	======

14. RELATED PARTY TRANSACTIONS

One of the loans is from a Pension Scheme where a trustee is a connected party. The amount outstanding at the year end is £250,000.