2023-04-05-accounts - Beth Hamedrash Knesset Yehezkel

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BETH HAMEDRASH KNESSET YEHEZKEL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

BETH HAMEDRASH KNESSET YEHEZKEL

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

CONTENTS Trust information Trustees’ report Independent Examiner’s report Statement of financial activities Balance sheet Notes to the financial statements	Page 1 2 - 5 6 7 8 9 -15

BETH HAMEDRASH KNESSET YEHEZKEL

TRUST INFORMATION

Registered Charity Number	:	299763
Trustees	:	Ruben Babaev
		Eliyahu Sellam
		David Tangi
		Zuriel Korkosh	(appointed 16thNovember 2023)
		Michael Yattah	(resigned 24thJuly 2023)
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 2023

The trustees present their annual report together with the financial statements of Beth Hamedrash Knesset Yehezkel for the year ended 5 April 2023.

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:

Ruben Babaev Eliyahu Sellam David Tangi Zuriel Korkosh - appointed 16 November 2023 Michael Yattah -resigned 24[th] July 2023

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 2023 free unrestricted reserves were £7,102 in deficit. There were however £5,640,469 of restricted reserves in relation to the building at 185-187 Golders Green Road, London NW11. Such position shall be reviewed annually.

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2023

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.

Beth Hamedrash Knesset Yehezkel has continued to offer a varied programme of activities and lectures throughout the year in addition to holding daily services

Our Rav, Rabbi Aaron Bassous has continued his involvement with the Charity and its members, offering tremendous support and guidance in spiritual matters to the community while at the same time ensuring the smooth running of the services and extensively teaching on various subjects such as Parashat haShavua, Mishna, Ein Yaakov, Halacha and Mussar.

Financial review

During the year the charity made a net deficit of £163,533 (2022 net deficit of £136,775) resulting in net assets of £5,633,367 (2022 net assets £5,796,900). 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 2023 was due to a decrease in voluntary donations made and pledged. As a result of internal dispute in prior years, income level has continued to be adversely effected. The Treasurer together with 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 and service the loan associated with the building works.

BETH HAMEDRASH KNESSET YEHEZKEL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 5 APRIL 2023

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 will be reviewed and adapted by the trustees.

Plans for the future

The internal dispute was finally resolved toward the end of the year, which will give the Charity stability which in turn should improve its financial position and enable the Charity to carry on fulfilling its objectives as has been the case for the past thirty five years, and further develop in the new enlarged building.

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 2023

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 January 2024 28 and signed on its behalf.

Eliyahu Sellam Trustee

David Tangi Trustee

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 2023.

Responsibilities and basis of report

As the charity trustees of the Charity, 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 Charity’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 Charity’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 Charity 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

28 January 2024

BETH HAMEDRASH KNESSET YEHEZKEL

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 5 APRIL 2023

			Unrestricted	Restricted	Total	Total
			Funds	Funds	Funds	Funds
		Notes	2023	2023	2023	2022
Income from:			£	£	£	£
Donations			325,833	10,771	336,604	329,099
Rental income			127,786	-	127,786	45,552
			_	__	__	_
Total income			453,619	10,771	464,390	374,651
			======	=======	=======	=======
Expenditure on:
Charitable activities	3		313,493	314,430	627,923	511,426
			_	_	_	_
Total expenditure			313,493	314,430	627,923	511,426
			======	======	======	======
Net (deficit) for the year			140,126	(303,659)	(163,533)	(136,775)
Transfers between funds			(161,642)	161,642	-	-
			_	__	__	_
Net movement in funds			(21,516)	(142,017)	(163,533)	(136,775)
Reconciliation of funds
Total funds brought forward			14,414	5,782,486	5,796,900	5,933,675
			_	__	__	_
Total funds carried forward	11		(7,102)	5,640,469	5,633,367	5,796,900
			======	=======	=======	======

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 2023

2023
2022
Note
£
£
£
£
FIXED ASSETS
Tangible assets
6
8,699,853
8,849,865
CURRENT ASSETS
Stock
8
-
800
Debtors – gift aid
3,346
-
Cash at bank and in hand
12,002
74,672
_
_
15,348
75,472
CREDITORS:Amounts falling due
within one year
9
(16,433)
(10,558)
_
_
NET CURRENT ASSETS/ (LIABILITIES)
(1,085)
64,914
_
_
TOTAL ASSETS LESS CURRENT LIABILITIES
8,698,768
8,914,779
CREDITORS:Amounts falling due
after one year
10
(3,065,401)
(3,117,879)
_
_
TOTAL NET ASSETS
5,633,367
5,796,900
=======
=======
FUNDS
Unrestricted
(7,102)
14,414
Restricted
11
5,640,469
5,782,486
_
__
TOTAL FUNDS
5,633,367
5,796,000
=======
=======

Approved by the Board of Trustees on January 2024 28 and signed on its behalf by

Type text here

Eliyahu Sellam David Tangi Trustee Trustee

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

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 2023

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
2022
2022
2022
Income from:
£
£
£
Donations
210,530
164,121
374,651
Investment income
-
-
-
_
_
_
Total income
210,530
164,121
374,651
======
======
======
Expenditure on:
Charitable activities
310,519
200,907
511,426
_
_
_
Total expenditure
310,519
200,907
511,426
======
======
======
Net income/(expenditure) in the year
(99,989) (36,786 )
(136,775)
Transfers between funds
119,389
(119,389)
-
_
_
_
Net movement in funds
19,400 (156,175)
(136,775)
Reconciliation of funds
Total funds brought forward
(4,986) 5,938,661
5,933,675
_ _
_
Total funds carried forward
14,414 5,782,486
5,796,900
====== ======= =======

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

3 Analysis of expenditure

Charitable grants Wages & pension Catering costs Lecturers Depreciation Telephone Motor & travelling Repair & maintenance Office, cleaning & sundry expenses Rates & utilities Bank charges & interest Management costs Independent Examiner’s fees Accountancy fees Legal & Professional fees Support costs Governance costs Total expenditure 2022	Charitable activities £ 15,475 36,641 32,839 2,390 159,029 - - - - - 139,926 - - - - 386,300 236,898 4,725 627,923	Support costs £ - - - - - 3,010 780 35,062 149,842 48,204 - - - - - 236,898 (236,898) -	Governance costs £ - - - - - - - - - - - - 3,900 - 825 4,725 (4,725) -	2023 £ 15,475 36,641 32,839 2,390 159,029 3,010 780 35,062 149,842 48,204 139,926 - 3,900 - 825 627,923 - - 627,923	2022 £ 15,490 36,416 4,904 450 105,955 1,080 714 22,460 125,171 38,875 86,029 26,405 5,400 9,330 32,747
					511,426
					511,426

Of the total expenditure of £ 627,104, £312,693 (2022: £310,519) was unrestricted and £314,430 (depreciation, bank charges/interest & professional fees) was restricted (2022: £200,907).

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

4.

NET INCOME/(DEFICIT) FOR THE YEAR	2023	2022
This is stated after charging:	£	£
Depreciation	159,029	105,955
Independent Examiner’s fees- Net of VAT	3,250	4,500
	=====	=====

5. TAXATION

The Charity 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 2022	16,990	9,328,255	165,350	9,510,595
Additions	-	-	9,017	9,017
Disposal	(16,990)	-	-	(16,990)
	_	__	_	__
At 5 April 2023	-	9,328,255	174,367	9,502,622
	======	=======	======	=======
DEPRECIATION
At 6 April 2022	16,990	496,687	147,053	660,730
Charge for year	-	150,565	8,464	159.029
Disposal	(16,990)	-	-	(16,990)
	__	_	_	_
At 5 April 2023	-	647,252	155,517	802,769
	=====	======	======	======
NET BOOK VALUE
At 5 April 2023	-	8,681,003	18,850	8,699,853
	=====	========	======	========
At 5 April 2022	-	8,831,568	18,297	8,849,865
	=====	========	======	========

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 2023

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	2023 £ 34,777 1,864 36,641	2022 £ 34,530 1,886
		36,416

One former trustee received remuneration during the year of £25,959 (2022: £26,365).

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 (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £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	2023 2023 £ - ==== 1 1 2	2022 2022 £ 800 ==== 1 1 2

BETH HAMEDRASH KNESSET YEHEZKEL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

----- Start of picture text -----
||||| |---|---|---|---| |9.|CREDITORS: Amounts falling due within one year|2023|2022| |£|£| |Accruals & other creditors|16,433|8,240| |-| |Net wages|2,318| |__|_| |16,433|10,558| |===== =====| |10.|CREDITORS: Amounts falling due after one year|2023|2022| |£|£| |Other Loans|3,024,225|3,070,085| |Government Bounce Back Loan|41,176|47,794| |_|____| |3,065,401|3,117,879| |======= ======|

----- End of picture text -----

Included in other loans is a £2,643,225 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.

Included in other loans is an unsecured £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. The charity’s liability for repayment on this loan is currently being contested.

11. RESTRICTED FUNDS

----- Start of picture text -----
|||||| |---|---|---|---|---| |Balance Balance| |6 April|5 April| |2022 Income Expenditure Transfers 2023| |£|£|£|£|£| |Building fund|5,782,486|10,771 (314,430) 161,642|5,640,469| |=======|======== ====== ====== ========| |RESTRICTED FUNDS -PRIOR YEAR| |Balance Balance| |6 April|5 April| |2021 Income Expenditure Transfers 2022| |£|£|£|£|£| |Building fund|5,938,661 164,121 (200,907) (119,389)|5,782,486| |=======|====== == ====== ====== ========|

----- End of picture text -----

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 2023

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible assets	-	8,699,853	8,699,853
Current assets	9,331	6,017	15,348
Creditors	(16,433)	(3,065,401)	(3,081,834)
	_	__	_
	(7,102)	5,640,469	5,633,367
	======	=======	=======

ANALYSIS OF NET ASSETS BETWEEN FUNDS-PRIOR YEAR

	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible assets	-	8,849,865	8,849,865
Current assets	24,972	50,500	75,472
Creditors	(10,558)	(3,117,879)	(3,128,437)
	_	__	_
	14,414	5,782,486	5,796,900
	======	=======	=======

13. RELATED PARTY TRANSACTIONS

One of the loans is from a pension scheme where a former trustee is a connected party. The amount outstanding of such unsecured loan at the year-end is £250,000.

During the year, the charity received a loan of £50,000 from a company in which one of the trustees is a director.

During the year, the charity received total donations of 8,725 from the trustees.