**REGISTERED CHARITY NUMBER: 312905** 

## **REPORT OF THE TRUSTEES AND** 

**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020** 

## **FOR** 

## **MESIFTA TALMUDICAL COLLEGE** 

Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 



**MESIFTA TALMUDICAL COLLEGE** 

## **CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 30 September 2020** 

|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|7|
|**Independent Examiner's Report**||8||
|**Statement of Financial Activities**||9||
|**Balance Sheet**||10||
|**Cash Flow Statement**||11||
|**Notes to the Cash Flow Statement**||12||
|**Notes to the Financial Statements**|13|to|20|





**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

The trustees present their report with the financial statements of the charity for the year ended 30 September 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

The charity's objectives are as set out in its' governing document, namely the charity was established for the purpose of promoting advanced Jewish religious education and learning, and in particular to: 

(a) give instruction to the students in Jewish classical religious literature with special emphasis on the Talmud, 

(b) encourage Jewish religious observance in particular among the youth, and 

(c) train young men to occupy ecclesiastical offices within the Jewish community. 

## **Public benefit** 

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit, and 'The Advancement of Religion for the Public Benefit' in particular, when reviewing the aims and objectives and in planning the charity's future activities. The aims of the charity for the public benefit are detailed in the 'Objectives and Activities' section of this report. 

Page 1 



**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

## **ACHIEVEMENT AND PERFORMANCE Charitable activities** 

The charity operates a college which has approximately eighty students on its role. The college models its learning-day on the traditional study style common to many Talmudical colleges, which is predominantly peer-led, with formal lectures delivered during the midday period to provide in-depth analysis of the topics being studied by the students. However, although learning is peer-led and self-paced, students are supported in their learning throughout the day by several full-time staff members who are employed to ensure that students can access guidance and direction. The Talmudical College's library and study rooms are noisy and energetic; students are engaged in academic debate, articulating arguments, defending their reasoning and honing their polemic skills. Staff can often be seen in heated debates with their students as they thrash out the logical arguments of the Talmudic study and codified Torah Law. 

In addition, midday lectures are held, which are open to people of all ages, including prospective students and working alumni who wish to devote part of their day to continued learning. Lectures are more formal in their style of delivery and are predicated on the students having already grasped the basics of the topic beforehand. Students will review the material from the lectures later in the day, challenging the premise of the thesis put across by the rabbi. Staff must therefore continue to be on-hand throughout the day to clarify topics and answer questions and the college is constantly investing in adding to its already impressive library so that the students can research material as part of their studies. 

## **Talmud Study - Academic Years 2019-2020** 

This Tractate deals primarily with laws pertaining to lost articles that have been found, and when they would need be returned to their original owner, versus when they may be kept. It discusses formal acts of acquisition, necessary for acquiring articles and for effecting other legal procedures, and the relevant rules of procedure including logical derivatives. 

The Talmud extends this discussion to deal with many aspects of documents, their ability to effect transactions, the legal advantages they confer on their holders and the age of responsibility. It then discusses the areas pursuant to Biblical oaths and the situations in which oaths are to be administered. It further analyses the concept of acting as a someone's agent with or without that person's prior knowledge or consent. 

## **Curriculum Link: Tractate Kesubos** 

Lastly, this Tractate deals with the Act of 'Kinyan', which links to studies in previous years. 

A basic principle of Jewish Law is that ownership cannot be transferred from person to person verbally. In order for a transaction to have legal substance, it must be formalised by an act of acquisition, called a 'kinyan'. This act is the mechanism by which transference of ownership is effected, which means that the parties must be of legal age and must execute the 'kinyan' by mutual consent, otherwise the validity of the transaction is called into question. 

The Torah defines 'kinyanim' not only for the acquisition of absolute ownership, but also for the attainment of more limited rights, such as leasing a property. 'Kinyanim' are also instrumental in incurring obligations, such as when someone borrows money. Thus, the concept of 'kinyan' extends a to areas that are not primarily monetary in nature. The aspect most relevant to this year's syllabus is when a 'kinyan' is used to effect marriage in its various stages. Specifically, Tractate Kesubos deals with the varied aspects of the relationship between a husband and wife, and their mutual obligations to each other - whether at the inception of the marriage, during the marriage, or after it is terminated either by divorce or the death of one of them. The marriage contract that details the various marital and financial obligations and commitments undertaken by the two parties. 

The Talmud explains that the Torah conceives the legal character of marriage using the same method of 'kinyan', attained by the husband with his wife. The nature of this 'kinyan' is different in that it does not represent monetary ownership. Rather, it is the establishment of an exclusive marital bond; one which restricts the woman from marrying or cohabiting with any man other than her husband. In this 'kinyan', the Torah defines the husband as the active agent who initiates the 'kinyan' at the marriage ceremony, while the woman accepts it, and thereby indicates her consent to the marriage. Were she to refuse the 'kinyan', the marriage is null. 

The tractate examines the religious origins of the 'Kesubah', which was enshrined in Torah Law to protect the wife from capricious divorce. Knowing that he would have to pay a substantial amount upon the dissolution of his marriage, a husband would avoid irresponsible behaviour or the casual dissolution of a marriage, only entertaining the notion of divorce in the event of an irreconcilable breakdown of their relationship. 

Page 2 



**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

To establish a legal framework for promoting gender equality within society, the Rabbis enacted a ban that forbids a  man from divorcing his wife without her consent, providing additional security for women and preserving their rights as equal partners within marriage. 

The Rabbis enacted additional financial considerations to promote equality within the marriage. These include ring-fencing the wife's previous acquisitions, such as any property she brings into the relationship at the time of marriage, the status of acquisitions jointly acquired during their relationship, and her entitlement to ring-fence inheritances or other financial appreciations personally acquired during her marriage. 

The text of the 'Kesubah' records the husband's pledge to provide his wife with her various needs. Also included are the obligations of his estate to her and her children after his death. 

Tractate Kesubos discusses many aspects of sexuality and intimate conduct, preparing the students to enter adulthood with a mature attitude towards intimacy. Given that the college is a tertiary educational facility, this tractate was chosen as a preparatory instruction for future marriage, not just in a financial sense but also in terms of cultivating a healthy approach towards building and maintaining relationships, and respecting individual rights. 

The Talmud does not shy away from discussing intimacy or sexuality openly, but it does so within an ethical and refined context, promoting the spiritual importance of sexuality and the holiness of the marital act. This sets a high bar for morality and personal conduct, promoting responsible relationships in the future. 

Within this is a candid study of the stages of physical development and the legal framework for establishing a relationship. 

In addition to the juxtaposition of the tractates and the links between previous academic years' studies, the focus of the studies narrowed to a deep analysis of the laws underpinning ownership and wherein lies social responsibility. 

## **Chapter One** 

This chapter deals primarily with laws pertaining to found articles, litigation concerning the ownership of a found article (under circumstances that it need not be returned to its original owner) and the methods through which the found article can be acquired. The chapter also delineates which people are the beneficiaries of their dependent's acquisition of found articles, as well as rules for determining to which of two possible owners certain found articles should be returned. 

Pursuant to this chapter's treatment of litigation surrounding ownership of a found item, the Gemara discusses the laws of oaths and the situations in which oaths are administered. 

Pursuant to its treatment of the methods through which found articles can be acquired, the Gemara in this chapter deals extensively with acquisition by means of an article's presence in one's property. The Gemara details the conditions necessary for such acquisition, considering factors such as the owner's physical proximity to the property, the security the property affords the article that is within in its confines, the nature of the article being acquired, and the legal status of the property's owner. 

Pursuant to its discussion concerning the return of found documents to one of the parties listed therein, the Gemara deals with many aspects of documents, their ability to effect transactions, and the legal advantages they confer on their holders. 

## **Chapter Two** 

The second chapter of Bova Metzia deals with the obligation to return a lost object to its owner. The obligation to return a lost object includes an obligation to announce the find, so that its owner can reclaim it. It also requires the finder to make sure that he returns it to him: he may not return it to any claimant unless the claimant proves that it is his by describing it sufficiently to show that it is his. The marking or feature that serves is known as a 'Siman' or identifying mark. What constitutes an identifying unique marking is the subject of much discussion in this chapter. 

There is one major qualification to the obligation to return a lost object. The obligation exists if the owner has not given up hope of recovering his lost property. Should he give up hope, the object is ownerless and whoever finds it at that point may keep it. Abandonment of hope is known as Yi'ush. A corollary of this is that when a person realizes that he has lost an object without a 'Siman', he abandons hope of recovering it, and others may keep it. 

Abandonment is effective even for an object with a 'Siman'; however, this is not usual for a person with a 'Siman', since he may reasonably expect to recover it from those who find it. 

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**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

## **Chapter Three** 

This chapter discusses the responsibilities, obligations and liabilities of a Shomer, custodian. 

A Shomer is one who assumes responsibility for the safekeeping of another person's property, which is placed in his care. This property is called a 'Pikadon', deposit. Each of the four types of Shomrim have unique responsibilities and liabilities: 

1) an unpaid custodian. He must safeguard and maintain the object in his care, as must every Shomer, and may not use it for his own purposes. He is liable for any loss or damage caused by his own negligence, but not for that caused by any other mishap. 

2) a paid custodian. He may not use the deposit for his own purposes, and since he receives remuneration for watching it, he is held to a higher standard of care. Hence, he is liable even for theft or loss not due to his negligence. Nevertheless, he bears no responsibility for mishaps beyond his control, such as the death, breakage or forced seizure of the Pikadon. 

3) a renter. He pays for the right to use another's property. The Talmudic personalities dispute whether his liability is identical to that of the unpaid custodian or of the paid custodian. The Halachah (promulgated Law) follows the latter view. 

4) a borrower. He has secured the right to use another's property gratis, and thus bears the highest degree of responsibility - i.e. he is liable even for mishaps beyond his control, with the exception of work-related damages (so long as the Pikadon was being put to normal use). 

The Shomer's Oath - When a Shomer claims exemption from liability [e.g. if an unpaid custodian asserted that the Pikadon was stolen], he most support his claim either by providing witnesses or by swearing that his claim is true. In addition, he must swear that he has not been negligent in safeguarding the object, and, in the case of paid and unpaid custodians, must also swear that he did not misappropriate the Pikadon for his personal use. 

Even when a Shomer is willing to pay for the loss of property in his care, he must nonetheless swear that the object is not in his possession. 

The emphasis on social responsibility and personal integrity is key to instilling students with respect for the law and for each other. Society is empowered with success and kept safe from internal division when its citizens uphold the Law  and have a healthy view of ownership, responsibility and litigation. Linking to the previous academic cycle, which focused on morality within the home, and respect for individual rights, equality and personal safety, these past years have provided critical focus and direction to the student body and laid a clear framework for teaching and promoting British values. 

## **Torah Ethics & Morality** 

The Mussar (ethics) works of Mesilat YeSharim and Chovot HaLeVavot are fundamental courses that the students study as part of their social development to prepare for life in modern Britain. These works focus on personal character development, fostering a healthy self-image and understanding their place within family, community and society. This has been all the more important during the global pandemic, which has radically altered the way society sees interpersonal relationships and social responsibility. The work also focuses on those aspects of moral development between man and the Divine. The students analyse what is involved in having faith in a Supreme being, respecting the teachings of parents and teachers, healthy eating and positive mental health. The volume of Orchot Tzadikim features essays and guidance on purity of mind and body, and the impact of personal choice in behaviour and lifestyle. This dovetails with societal trends toward respecting individual rights, having due regard for religious, racial and sexual identity, and accepting the right of the individual to assert their self-identity without fear of ridicule or isolation. 

In keeping with the above, the students have continued to study the works of the Chofetz Chaim, who promoted refined speech and cautioned about the danger of libel and defamation of character. The books "drill down" into aspects of practical Torah Law in everyday speech, examining real-world applications of Torah concepts, promoting the adoption of kindness and refinement, while rejecting and confronting all forms of bullying within the home, school, work environment and community. 

As have been the case with previous years' studies, these classical Jewish works have been chosen to underpin the college's Anti-Bullying Policy and promote 'due regard' of the Equality Act 2010, taking its aims into consideration and encouraging healthy interactions between students. 

Page 4 



**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

In the context of the students' daily life at the college, the college seeks to advance equality of opportunity, thereby helping to remove or minimise disadvantage. It further seeks to meet students' needs and encourage full participation in study, prayer, academic dialogue and critical thinking, which fosters good relations between people, thereby helping to tackle prejudice, promote understanding and challenging bullying in all its forms. 

Studying the works of the Chofetz Chaim, has never been timelier in addressing societal trends, encouraging wholesome interpersonal values and tolerance of individual rights. 

## **Torah Law** 

## Sabbaths & Festivals 

Part of the day in every academic year is set aside for the study of law of religious observances, including the Festivals and the Sabbath. Students are taught the value of family life and the Service of the Al-mighty by following His rules of ceasing all manner of labour on the Sabbath and Festivals as well as the positive observances or celebrations of the Festivals. 

In addition, the Festival topics naturally introduce an understanding of world history and cultures other than our own, including the periods of the Greek and Roman Empires as well as the cultures of the Middle East and North Africa. 

## The Laws of Prayer 

These studies dovetail with the students' daily Acts of Worship, with an emphasis on the Talmudic requirement to pray for the health and safety of the Monarchy. This encourages a healthy and responsible attitude towards Britain, in particular, and fosters a positive attitude towards society as a whole, recognising the ethnic and religious diversity of the community in which the college is located. 

The studies analyse the structure and meaning of the prayers and delineate the times of day for each Prayer Service. 

## The Morning, Afternoon and Evening Prayer Services 

The laws pertaining to daily prayer, whilst taught within the religious context, also foster an appreciation of a higher order and the recognition of a Supreme Being, who created Heaven and Earth. An important aspect of these studies is the recognition that other may have different faiths or beliefs. It is mindful of the religious plurality of society and promotes acceptance and tolerance, as for example in the phrase from the daily Morning Prayers: "For let all people walk; everyone in the name of his god. And we shall walk in the name of the Lord our God for ever and ever." 

## **FINANCIAL REVIEW** 

## **Investment policy and objectives** 

The Trust Deed authorises the trustees to make and hold investments using the general funds of the charity. 

## **Reserves policy** 

The trustees have established the level of free reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gap between spending on activities and receiving resources through voluntary donations. The trustees consider that the ideal level of reserves as at 30 September 2020 would be six months of expenditure, approximately £350,000. 

The actual reserves as at 30 September 2020 excluding fixed assets were £695,956 (2019 - £514,222). 

The trustees review the level of reserves regularly in order to ensure that there are sufficient reserves to provide to financial stability and flexibility. 

Income has decreased by £245,735 from £1,153,130 in 2019 to £907,395 and expenditure has decreased by £336,273 from £1,065,668 in 2019 to £729,395. The charity also made losses of £104 on revaluation of investment properties. This has resulted in net income of £177,896 (2019 - £87,462) for the year. 

Tangible fixed assets are held for use by the charity, but in the present property market, the trustees estimated that the market value of the freehold properties are at least equal to the book value, accordingly no depreciation is charged on freehold properties. 

Page 5 



**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

## **FUTURE PLANS** 

The charity plans to continue promoting advanced Jewish religious education and learning by increasing the student intake. 

## **Covid 19** 

The onset of the Covid 19 pandemic in early 2020 has brought about significant social and economic changes. We have taken a number of measures to monitor and ensure the health and safety of our employees, volunteers, students and end beneficiaries. At this stage the impact on our ability to continue with our charitable activities has not been significant. We have adapted the ways we carry on our day to day charitable activities and fundraising activities to comply with government's policies and guidance. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The charity is controlled by its governing document, the minutes of the Foundation Conference dated 9 June 1940 and constitutes an unincorporated charity. 

## **Recruitment and appointment of new trustees** 

New trustees will be appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further the work of the charity. 

## **Organisational structure** 

Trustees meet formally at least four times per annum to manage the affairs of the charity and to receive updates on the charity's financial affairs. 

## **Induction and training of new trustees** 

The Board of Trustees must consist of no more than nine trustees and no fewer than five. 

Any new trustee will be fully briefed on the history of the trust, and its objectives and plans, as well as the management and operational processes. Trustees can retire when they wish as they do not serve under a fixed term of tenure. 

## **Risk management** 

The Trustees regularly undertake a review of the major risks to which the charity is exposed, and systems designed to mitigate those risks are considered on an ongoing basis. 

The Trustees recognise the absolute necessity of ensuring the protection and safety of all those that the charity serves. This means that the trustees, employees of the charity and all those who work or volunteer for the charity and work with children and vulnerable adults must obtain clearance from the Disclosure and Barring Service. The charity has developed a safeguarding policy and one of the trustees is responsible for ensuring this policy is adhered to. Safeguarding training is compulsory for all staff. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 

312905 

## **Principal address** 

90 Cazenove Road London N16 6AB 

## **Trustees** 

C Schneck (resigned 1.3.21) M E Schneck (resigned 1.3.21) J Oestreicher S Matyas (resigned 1.3.21) Rabbi S Weinstock J Fekete M Stern (appointed 1.3.21) S Hochberg (appointed 1.3.21) H Oestreicher (appointed 1.3.21) 

Page 6 



**MESIFTA TALMUDICAL COLLEGE** 

## **REPORT OF THE TRUSTEES for the year ended 30 September 2020** 

**REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner** Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

Approved by order of the board of trustees on 14 June 2021 and signed on its behalf by: 

Rabbi S Weinstock - Trustee 

Page 7 



**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MESIFTA TALMUDICAL COLLEGE** 

## **Independent examiner's report to the trustees of Mesifta Talmudical College** 

I report to the charity trustees on my examination of the accounts of Mesifta Talmudical College (the Trust) for the year ended 30 September 2020. 

## **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 Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner's statement** 

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA 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: 

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. 

Mr Suda Ratnam FCCA Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD 

14 June 2021 

Page 8 



**MESIFTA TALMUDICAL COLLEGE** 

## **STATEMENT OF FINANCIAL ACTIVITIES for the year ended 30 September 2020** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>**Charitable activities**<br>4<br>Educational programmes, incentives and<br>initiatives<br>Investment income<br>3<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**Charitable activities**<br>6<br>Educational programmes, incentives and<br>initiatives<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|2020<br>Unrestricted<br>fund<br>£<br>662,140<br>169,723<br>75,532<br>907,395<br>52,004<br>677,391<br>729,395<br>(104)<br>177,896<br>2,594,360<br>2,772,256|2019<br>Total<br>funds<br>£<br>858,052<br>241,573<br>53,505|
|---|---|---|
|||1,153,130<br>16,364<br>1,049,304|
|||1,065,668<br>-|
|||87,462<br>2,506,898|
|||2,594,360|



The notes form part of these financial statements 

Page 9 



**MESIFTA TALMUDICAL COLLEGE** 

## **BALANCE SHEET** 

## **30 September 2020** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>11<br>**Investments**<br>Investments<br>12<br>Investment property<br>13<br>**CURRENT ASSETS**<br>Debtors<br>14<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one year<br>16<br>**NET ASSETS**<br>**FUNDS**<br>18<br>Unrestricted funds<br>**TOTAL FUNDS**|2020<br>Unrestricted<br>fund<br>£<br>1,261,200<br>100<br>815,000<br>2,076,300<br>207,082<br>564,583<br>771,665<br>(27,376)<br>744,289<br>2,820,589<br>(48,333)<br>2,772,256<br>2,772,256<br>2,772,256|2019<br>Total<br>funds<br>£<br>1,264,934<br>100<br>815,104<br>2,080,138<br>282,682<br>249,049<br>531,731<br>(17,509)<br>514,222<br>2,594,360<br>-<br>2,594,360<br>2,594,360<br>2,594,360|
|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 14 June 2021 and were signed on its behalf by: 

S Weinstock - Trustee 

The notes form part of these financial statements 

Page 10 



## **MESIFTA TALMUDICAL COLLEGE** 

|**CASH FLOW STATEMENT**<br>**for the year ended 30 September 2020**<br>2020<br>Notes<br>£<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>265,534<br>Net cash provided by operating activities<br>265,534<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>-<br>Purchase of investment property<br>-<br>Net cash provided by/(used in) investing activities<br>-<br>**Cash flows from financing activities**<br>New loans in year<br>50,000<br>Net cash provided by financing activities<br>50,000<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>315,534<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>249,049<br>**Cash and cash equivalents at the end of**<br>**the reporting period**<br>564,583|2019<br>£<br>199,020<br>199,020<br>(9,000)<br>(77,864)<br>(86,864)<br>-<br>-<br>112,156<br>136,893<br>249,049|
|---|---|



The notes form part of these financial statements 

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**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE CASH FLOW STATEMENT for the year ended 30 September 2020** 

|**1.**|**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM**|**OPERATING ACTIVITIES**|**OPERATING ACTIVITIES**|
|---|---|---|---|
|||2020|2019|
|||£|£|
||**Net income for the reporting period (as per the Statement of Financial**|||
||**Activities)**|177,896|87,462|
||**Adjustments for:**|||
||Depreciation charges|3,734|4,978|
||Losses on investments|104|-|
||Decrease in debtors|75,600|106,354|
||Increase in creditors|8,200|226|
||**Net cash provided by operations**|265,534|199,020|



## 2. 

## **ANALYSIS OF CHANGES IN NET FUNDS** 

||At 1.10.19|Cash flow|At 30.9.20|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|249,049|315,534|564,583|
||249,049|315,534|564,583|
|**Debt**||||
|Debts falling due within 1 year|-|(1,667)|(1,667)|
|Debts falling due after 1 year|-|(48,333)|(48,333)|
||-|(50,000)|(50,000)|
|**Total**|249,049|265,534|514,583|



The notes form part of these financial statements 

Page 12 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2020** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. 

## **Assessment of going concern** 

The trustees, having made appropriate enquiries, consider that adequate resources exists for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the year ended 30 September 2020.The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. 

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. In arriving at the conclusion, the trustees have considered the potential implications of the effects of Covid 19 on the charity. The figures for the period under consideration have not been significantly impacted by Covid 19 and the trustees are confident that no adjustments are necessary to the carrying value of the assets held at the balance sheet date. 

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity's financial position or going concern. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

## **Grant income** 

Government grants, including non-monetary grants shall not be recognised until there is reasonable assurance that: 

(a) the entity will comply with the conditions attached to them; and (b) the grants will be received. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. 

## **Charitable activities** 

Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

## **Governance costs** 

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to the strategic management of the charity. 

## **Allocation and apportionment of costs** 

Overhead and support costs relating to charitable activities have been apportioned based on staff time. 

continued... 

Page 13 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **1. ACCOUNTING POLICIES - continued** 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. 

Freehold property - Not provided Fixtures and fittings - 25% on reducing balance 

Freehold land and buildings are included in the financial statements at their valuations as at 30 September 2017. This valuation has been deemed cost under the transitional arrangement set out in FRS 102 and will apply going forward with additions as of 1 October 2017 or later accounted for at cost. 

Freehold land and buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. 

## **Investment property** 

Investment properties are properties held to earn rentals and for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value can be measured reliably without undue cost or effort on an ongoing basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. 

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **Donated goods, facilities and services, including volunteers** 

Donated goods, facilities and services, including volunteers are included at the value to the charity where this can be quantified. 

The contribution of the general volunteers has not been included in the accounts as they were not significant and it was impractical for their contribution to be measured reliably for accounting purposes. 

## **Debtors** 

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. 

## **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. 

## **Creditors and provisions** 

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of settlement can be estimated reliably. 

## **Loans and borrowings** 

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. 

continued... 

Page 14 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

|**2.**<br>**DONATIONS AND LEGACIES**<br>Donations<br>Grants<br>Grants received, included in the above, are as follows:<br>Coronavirus Job Retention Scheme<br>**3.**<br>**INVESTMENT INCOME**<br>Rents received<br>**4.**<br>**INCOME FROM CHARITABLE ACTIVITIES**<br>Activity<br>Educational programmes, incentives and<br>Fees<br>initiatives<br>**5.**<br>**RAISING FUNDS**<br>**Raising donations and legacies**<br>Publicity<br>**Investment management costs**<br>Investment property management expenses<br>Aggregate amounts|2020<br>£<br>602,887<br>59,253<br>662,140<br>2020<br>£<br>59,253<br>2020<br>£<br>75,532<br>2020<br>£<br>169,723<br>2020<br>£<br>10,907<br>2020<br>£<br>41,097<br>52,004|2019<br>£<br>858,052<br>-|2019<br>£<br>858,052<br>-|
|---|---|---|---|
|||858,052||
|||2019<br>£<br>-<br>2019<br>£<br>53,505<br>2019<br>£<br>241,573|2019<br>£<br>-|
||||2019<br>£<br>53,505|
||||2019<br>£<br>16,364|
||||2019<br>£<br>-|
||||16,364|



Page 15 

continued... 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **6. CHARITABLE ACTIVITIES COSTS** 

|Direct<br>Costs<br>£<br>Educational programmes, incentives and<br>initiatives<br>539,229<br>**7.**<br>**GRANTS PAYABLE**<br>Educational programmes, incentives and initiatives<br>**8.**<br>**SUPPORT COSTS**<br>Management<br>£<br>Educational programmes, incentives and<br>initiatives<br>109,761|Grant<br>funding of<br>activities<br>Support<br>(see note<br>costs (see<br>7)<br>note 8)<br>£<br>£<br>13,200<br>124,962<br>2020<br>£<br>13,200<br>Governance<br>Finance<br>costs<br>£<br>£<br>2,159<br>13,042|Totals<br>£<br>677,391|Totals<br>£<br>677,391|
|---|---|---|---|
|||2019<br>£<br>-<br>Totals<br>£<br>124,962|2019<br>£<br>-|



## **9. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no trustees' remuneration or other benefits for the year ended 30 September 2020 nor for the year ended 30 September 2019. 

## **Trustees' expenses** 

There were no trustees' expenses paid for the year ended 30 September 2020 nor for the year ended 30 September 2019. 

## **10. STAFF COSTS** 

|Wages and salaries<br>The average monthly number of employees during the year was as follows:<br>Charitable|2020<br>£<br>192,363<br>192,363<br>2020<br>26|2019<br>£<br>163,429|
|---|---|---|
|||163,429|
|||2019<br>22|



No employees received emoluments in excess of £60,000. 

Page 16 

continued... 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **11. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 October 2019 and 30 September 2020<br>**DEPRECIATION**<br>At 1 October 2019<br>Charge for year<br>At 30 September 2020<br>**NET BOOK VALUE**<br>At 30 September 2020<br>At 30 September 2019<br>**12.**<br>**FIXED ASSET INVESTMENTS**<br>**MARKET VALUE**<br>At 1 October 2019 and 30 September 2020<br>**NET BOOK VALUE**<br>At 30 September 2020<br>At 30 September 2019|Freehold<br>property<br>£<br>1,250,000<br>-<br>-<br>-<br>1,250,000<br>1,250,000|Fixtures<br>and<br>fittings<br>£<br>406,679<br>391,745<br>3,734<br>395,479<br>11,200<br>14,934|Totals<br>£<br>1,656,679<br>391,745<br>3,734<br>395,479<br>1,261,200<br>1,264,934<br>Shares in<br>group<br>undertakings<br>£<br>100<br>100<br>100|
|---|---|---|---|



There were no investment assets outside the UK. 

The charity's investment at the balance sheet date is comprised of a 100% holding in Burndata Limited, a company registered in England and Wales. The primary activity of Burndata Limited is property investment and management. 

The company made a profit for the period of £246,728 (2019 - £77,123) and had aggregate capital and reserves of £2,100,874 (2019 - £1,854,146) at the balance sheet date. 

The charity is exempt from preparing consolidated accounts in view of the fact that it is a small group and the charity is exempt from audit due to its size. 

continued... 

Page 17 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **13. INVESTMENT PROPERTY** 

|2020<br>2019<br>£<br>£<br>**MARKET VALUE**<br>At 1 October 2019<br>815,104<br>727,240<br>Additions<br>-<br>77,864<br>Revaluation loss<br>(104)<br>-<br>**NET BOOK VALUE**<br>At 30 September 2020<br>815,000<br>815,104<br>At 30 September 2019<br>815,104<br>737,240<br>Investment property was valued by the trustees as at 30 September 2020.<br>**14.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Other debtors<br>207,082<br>282,682<br>**15.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans and overdrafts (see note 17)<br>1,667<br>-<br>Taxation and social security<br>550<br>171<br>Other creditors<br>25,159<br>17,338<br>27,376<br>17,509<br>**16.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans (see note 17)<br>48,333<br>-<br>**17.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>2020<br>2019<br>£<br>£<br>Amounts falling due within one year on demand:<br>Bank loans<br>1,667<br>-<br>Amounts falling due between two and five years:<br>Bank loans<br>48,333<br>-|2020<br>2019<br>£<br>£<br>**MARKET VALUE**<br>At 1 October 2019<br>815,104<br>727,240<br>Additions<br>-<br>77,864<br>Revaluation loss<br>(104)<br>-<br>**NET BOOK VALUE**<br>At 30 September 2020<br>815,000<br>815,104<br>At 30 September 2019<br>815,104<br>737,240<br>Investment property was valued by the trustees as at 30 September 2020.<br>**14.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Other debtors<br>207,082<br>282,682<br>**15.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans and overdrafts (see note 17)<br>1,667<br>-<br>Taxation and social security<br>550<br>171<br>Other creditors<br>25,159<br>17,338<br>27,376<br>17,509<br>**16.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans (see note 17)<br>48,333<br>-<br>**17.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>2020<br>2019<br>£<br>£<br>Amounts falling due within one year on demand:<br>Bank loans<br>1,667<br>-<br>Amounts falling due between two and five years:<br>Bank loans<br>48,333<br>-|2020<br>2019<br>£<br>£<br>**MARKET VALUE**<br>At 1 October 2019<br>815,104<br>727,240<br>Additions<br>-<br>77,864<br>Revaluation loss<br>(104)<br>-<br>**NET BOOK VALUE**<br>At 30 September 2020<br>815,000<br>815,104<br>At 30 September 2019<br>815,104<br>737,240<br>Investment property was valued by the trustees as at 30 September 2020.<br>**14.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Other debtors<br>207,082<br>282,682<br>**15.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans and overdrafts (see note 17)<br>1,667<br>-<br>Taxation and social security<br>550<br>171<br>Other creditors<br>25,159<br>17,338<br>27,376<br>17,509<br>**16.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>2020<br>2019<br>£<br>£<br>Bank loans (see note 17)<br>48,333<br>-<br>**17.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>2020<br>2019<br>£<br>£<br>Amounts falling due within one year on demand:<br>Bank loans<br>1,667<br>-<br>Amounts falling due between two and five years:<br>Bank loans<br>48,333<br>-|
|---|---|---|
|||2019<br>£<br>-<br>171<br>17,338|
|||17,509|
|||2019<br>£<br>-|
|||2019<br>£<br>-|
|||-|



continued... 

Page 18 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **18. MOVEMENT IN FUNDS** 

|At<br>1.10.19<br>£<br>**Unrestricted funds**<br>General fund<br>2,594,360<br>**TOTAL FUNDS**<br>2,594,360<br>Net movement in funds, included in the above are as follows:<br>Incoming<br>Resources<br>resources<br>expended<br>£<br>£<br>**Unrestricted funds**<br>General fund<br>907,395<br>(729,395)<br>**TOTAL FUNDS**<br>907,395<br>(729,395)<br>**Comparatives for movement in funds**<br>At<br>1.10.18<br>£<br>**Unrestricted funds**<br>General fund<br>2,506,898<br>**TOTAL FUNDS**<br>2,506,898<br>Comparative net movement in funds, included in the above are as follows:<br>Incoming<br>resources<br>£<br>**Unrestricted funds**<br>General fund<br>1,153,130<br>**TOTAL FUNDS**<br>1,153,130||
|---|---|
|||
|||
|||



continued... 

Page 19 



**MESIFTA TALMUDICAL COLLEGE** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 30 September 2020** 

## **19. RELATED PARTY DISCLOSURES** 

During the year the charity received donations of £85,000 (2019 - £44,000) from and paid rent of £62,400 (2019 - £109,200) to Burndata Limited, a company wholly owned by the charity. 

At the balance sheet date Burndata Limited owed the charity £206,083 (2019 - £268,483). 

Page 20