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2021-07-31-accounts

Charity registration number 527404

BETH MIDRASH LEMOROTH

(JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rabbi S Kohn
Rabbi J Grunfeld
Charity number 527404
Principal address 50 Bewick Road
Gateshead
Tyne and Wear
NE8 4DQ
Auditor RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers Lloyds Bank plc
PO Box 1000
BX1 1LT
Solicitors Mincoffs Solicitors LLP
5 Osborne Terrace
Newcastle upon Tyne
NE2 1SQ

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notes to the financial statements 11 - 20

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

The trustees present their annual report and financial statements for the year ended 31 July 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's constitution dated 1944 , the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

Charitable Objects

The objects of the College are:

Aims

We aim to provide a first class Torah education to girls from the ages of 16 to 21. We seek to provide a structured educational environment that develops our pupils’ capabilities, competences and skills. We promote the academic, moral and social development of our pupils through our academic curriculum, pastoral care and other activities. We provide an educational environment where each student can develop and fulfil her potential, building her self-confidence and inculcating a desire to contribute to the wider community. In doing so, we prepare our pupils for the opportunities, responsibilities and experience of later life.

In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

OUR POLICIES

Access Policy

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which helps our pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

Bursary Policy

Our bursary policy contributes to a widening of access to the education we offer and the facilities we enjoy. The trustees view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk for example in the case of redundancy. In assessing means we take a number of factors into consideration including family income and family circumstances for example dependant relatives and the number of siblings. However, our college does not have a large endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.

The bursary awards range from 10% to 5 0 % remission of fees. We also subsidise co-curricular activities and college trips. Information about fee assistance through bursaries is provided to all applying.

The progress of pupils receiving bursary awards is reviewed at least annually to ensure their progress is in line with their abilities. No bursary awards were withdrawn in the year as a result of reviews.

Financial Planning Policy

Timely financial planning is often the key for many parents who are hoping to send their children to the College and an Interest Free Fees Plan is available to help those who wish to fund educational costs through regular contributions.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

Achievements and performance

A summary of the results and movements of funds for the year are shown in the Statement of Financial Activities on page 8.

Pupil Numbers and Fees

Pupil numbers at our College were on target again at 435. Our fees for the current year before the deduction of any bursaries were £ 3 , 2 00 per term and are due to rise to £3,300 in 2021/22.

Academic

The College has been successful in obtaining official accreditation of the first two years of its Torah Studies course through a partnership with ATHE. Students who complete the course successfully will receive the Equal recognised "Extended Diploma in Torah Studies", which is worth 150 UK credits and will count towards further studies for any student wishing to continue in to Higher Education. The College has also successfully entered into a collaboration with Gateshead College, to provide a recognised level 3 qualification in Child Care / Classroom Assistant and a level 4 Teaching Assistant qualification for third year students who wish to avail themselves of this, as well as a number of optional A Levels for students who wish to take them.

The College has maintained a partnership with TTI, an organisation in the United States, which was established in 2004 to provide an opportunity for interested individuals to demonstrate their Judaic knowledge on proficiency examinations that measure college comparable coursework as confirmed through an assessment by National PONSI. Students who are successful on this programme will be awarded a B.A. from Excelsior College in the US, on the basis of their current studies. This award is rated by NARIC as the equivalent of a B.A. awarded in the U.K.

Community Service

Pupils also take part in practical voluntary service in the local community. Through this opportunity to serve others, our pupils also gain educationally through a meaningful interaction with those outside our School community.

Community Access

We see JTTC as part of a wider community and where we can assist the community without detriment to advancing the education of our pupils we are delighted to do so. The Gateshead Jewish Primary School, Gateshead Mechina, Gateshead Ladies Society, Zeirei Agudas Yisrael, Ba’er HaTorah College, Gateshead Cheder and Ateres High School all made regular use of our multi-purpose hall free of charge out of school hours.

In addition, we encourage our pupils to give their services, free of charge, to the local Primary School and High School as well as the Beth Jacob Organisation, organising and producing all the different aspects of their respective annual shows. They also volunteer to assist in the setting up of the hall for events such as weddings.

A number of our students act as general classroom assistants in local schools, both Jewish and non Jewish.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Financial review

As a charity the parents of our pupils have the assurance that all the income of the School must be applied for educational purposes. As an educational charity we enjoy tax exemption on our educational activities and on our investment income and gains provided these are applied for our charitable aims. As a Charity we are also entitled to an 80% reduction on our business rates on the property we occupy for our charitable purposes. The financial benefits we receive from these tax exemptions are all applied for educational purposes and directly help us to maintain our bursary policies.

However, as an educational charity, we are unable to reclaim VAT input tax on our costs as we are exempt for VAT purposes. We also pay tax as an employer through the national insurance contributions we make.

In additional to the very substantial benefits our School brings to our pupils, the local community and society through the education we offer, our bursary programme creates a social asset without cost to the Exchequer.

Results for the year

As mentioned earlier the College fees were increased again this year. The charity continues to monitor expenditure carefully but is particular not to compromise student welfare and comfort in a bid to cut costs. It therefore seeks best value, even if this does result in a modest increase in expenditure. This financial year a significant investment has been made in the repair and maintenance of the School's assets.

Reserves policy

The trustees have reviewed the level of reserves held by the charity. The review has concluded that to allow the charity to be managed efficiently and to provide a buffer for uninterrupted services the level of free reserves, being those not tied up in fixed assets, should to be maintained at not less than six months expenditure, although it is acknowledged that this is not the current position.

COVID-19 risk

The ongoing COVID-19 pandemic continues to generate a significant level of uncertainty in the global economy. The trustees regularly assess the likely effects on the charity's operations in an attempt to mitigate the risk as far as possible.

Investment Policy

The trustees adopt a prudent approach in respect of the total investment return. Funds are invested so as to maximise income without placing the capital invested at risk.

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

The erection of the new classrooms is now complete and these were occupied at the start of the academic year, resulting in a much improved and spacious learning environment. Plan are currently being developed to further develop and improve existing tutorial rooms and also create a much larger and improved lecture theatre for the entire student body.

Structure, governance and management

Governing Document

The charity was established by a Constitution document dated October 1944 and is registered with the Charity Commission, number 527404.

Trustees

The trustees who served during the year were: Rabbi S Kohn Rabbi J Grunfeld

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Governing Body

The trustees are legally responsible for the overall management of the college. The day to day running of the college is undertaken by the trustees and the senior teaching staff. The trustees are aware of the need to follow best practice and are actively reviewing the organisational structure of the college and the method by which new trustees are appointed. This review is ongoing.

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' r eport was approved by the Board of Trustees.

Rabbi S Kohn

Trustee

Dated: 29 May 2022

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BETH MIDRASH LEMOROTH

Opinion

We have audited the financial statements of Beth Midrash Lemoroth (the ‘charity’) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BETH MIDRASH LEMOROTH

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BETH MIDRASH LEMOROTH

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:

Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards and Charity Act 2011, Employment and Pension legislation .

Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding , data protection and health and safety legislation.

These matters were discussed amongst the engagement team at the planning stage and the team remained alert throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor) for and on behalf of RMT Accountants & Business Advisors Ltd Statutory Auditor Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

Date: 31 May 2022

RMT Accountants & Business Advisors Ltd is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2021

Unrestricted Unrestricted
funds
funds
2021
2020
Notes £
£
Income from:
Donations and legacies 3 1,045,476
981,408
Charitable activities 4 2,045,810
1,756,952
Investments 5 11,787
9,981
Total income 3,103,073
2,748,341
Expenditure on:
Charitable activities 6 2,488,147
2,063,138
Net income for the year/
Net movement in funds 614,926
685,203
Fund balances at 1 August 2020 6,618,896
5,933,693
Fund balances at 31 July 2021 7,233,822
6,618,896

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) BALANCE SHEET

AS AT 31 JULY 2021

2021
Notes
£
£
Fixed assets
Tangible assets
10
8,172,921
Investment properties
11
283,700
8,456,621
Current assets
Debtors
12
59,802
Cash at bank and in hand
273,869
333,671
Creditors: amounts falling due within
one year
14
(1,436,470)
Net current liabilities
(1,102,799)
Total assets less current liabilities
7,353,822
Creditors: amounts falling due after
more than one year
15
(120,000)
Net assets
7,233,822
Income funds
Unrestricted funds
General unrestricted funds
2,678,818
Revaluation reserve
4,555,004
7,233,822
7,233,822		 2020
£
£
6,602,701
283,700
6,886,401
57,477
11,576
69,053
(336,558)
(267,505)
6,618,896
-
6,618,896
2,063,892
4,555,004
6,618,896
6,618,896

The financial statements were approved by the Trustees on 29 May 2022

Rabbi S Kohn Trustee

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

2021 2020
Notes £
£		 £
£
Cash flows from operating activities
Cash generated from operations 18 1,003,408 758,073
Investing activities
Purchase of tangible fixed assets (1,722,536) (1,134,205)
Investment income received 11,787 9,981
Net cash used in investing activities (1,710,749) (1,124,224)
Financing activities
Proceeds of new bank loans 1,157,500 -
Repayment of bank loans (187,866) (29,377)
Net cash generated from/(used in)
financing activities 969,634 (29,377)
Net increase/(decrease) in cash and cash
equivalents 262,293 (395,528)
Cash and cash equivalents at beginning of year 11,576 407,104
Cash and cash equivalents at end of year 273,869 11,576

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

Charity information

Beth Midrash Lemoroth is a unincorporated charity established by a Constitution dated October 1944 and is registered with the Charity Commission, number 527404.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Constitution document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity's operations are mitigated. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

All income from fees, scholarships, grants and donations is recognised when received

Government grants are recognised at the fair value of the asset received receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Rental income from operating leases (net of any incentives given to the lesees) is recognised on a straightline basis over the lease term.

All interest receivable is accounted for on an accruals basis.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is included on an accruals basis and is recognised where there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities. The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 5% reducing balance Fixtures and fittings 15% reducing balance Central heating installation 15% reducing balance New classroom building 5% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument .

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

3 Donations and legacies

Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Donations and gifts 152,100
100,232
Grants receivable 893,376
881,176
1,045,476
981,408
Grants receivable for core activities
Other 708,053
717,394
Government Covid-19 support 185,323
163,782
893,376
881,176

In March 2020 the Government introduced the Coronavirus Job Retention Scheme which allowed employers to put staff on temporary leave and reclaim the cost of 80% of the employees' payroll costs. During the year ended 31 July 2021 the charity received £185,323 (2020: £163,782).

4 Charitable activities

Charitable activities
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Fees and scholarships 2,045,810
1,756,952

5 Investments

Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Rental income 11,711
9,665
Interest receivable 76
316
11,787
9,981

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

6 Charitable activities

Charitable activities
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Staff costs 1,081,733
1,051,470
Depreciation and impairment 152,316
61,333
Student meals 282,156
185,725
Kitchen disposables 33,568
20,501
Accreditation fees 46,834
60,464
Cleaning and gardening 66,971
32,480
Premises costs 119,422
94,302
Repairs and maintenance 218,094
163,381
Printing, postage, stationery and telephone 33,944
31,362
Staff and teacher training 13,598
17,470
Travelling expenses 17,042
22,101
Bank and loan costs 20,984
7,802
Legal and professional 18,598
18,751
Equipment leasing -
(406)
Hire of hall and equipment 14,044
6,923
Security costs 307,461
256,723
Sundry expenses 49,098
23,392
2,475,863
2,053,774
Share of governance costs (see note 7) 12,284
9,364
2,488,147
2,063,138

7 Support costs

Audit and accountancy
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
12,284
-
12,284
-
12,284		 2021
£
12,284
12,284
12,284		 Support
costs
Governance
costs
£
£
-
9,364
-
9,364
-
9,364		 2020
£
9,364
9,364
9,364

Governance costs includes payments to the auditors of £ 1,400 (2020 : £ 1,400 ) and £10,884 (2020: £7,964) for audit and non-audit accountancy services respectively .

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

8 Trustees

None of the trustees (or any persons connected with them) received any expenses from the charity during the year.

Rabbi S Kohn is also employed as Principal to the college and is paid as such. These payments are included in the figures disclosed in note 9 to the accounts. No trustee received remuneration in their capacity as a trustee of the charity, either in the current or prior year.

9 Employees

The average monthly number of employees during the year was:

Teaching staff
Administration
Domestic
Catering
Pension
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
24
3
6
7
1
41
2021
£
977,673
84,352
19,708
1,081,733		 2020
Number
24
3
6
7
2
42
2020
£
948,920
82,461
20,089
1,051,470

There were no employees whose annual remuneration was more than £60,000.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

10 Tangible fixed assets

Cost or valuation
At 1 August 2020
Additions
At 31 July 2021
Depreciation and impairment
At 1 August 2020
Depreciation charged in the year
At 31 July 2021
Carrying amount
At 31 July 2021
At 31 July 2020		 Freehold
land and
buildings
Fixtures
and fittings
Central
heating
installation
New
classroom
building
£
£
£
£
5,752,573
993,609
60,636
626,310
-
303,735
-
1,418,801
5,752,573
1,297,344
60,636
2,045,111
14,952
757,812
46,528
11,135
23,831
57,143
2,116
69,226
38,783
814,955
48,644
80,361
5,713,790
482,389
11,992
1,964,750
5,737,621
235,797
14,108
615,175		 Total
£
7,433,128
1,722,536
9,155,664
830,427
152,316
982,743
8,172,921
6,602,701

Land and buildings with a carrying amount of £5,261,000 were re valued in the 2018 financial year by the trustees on the basis of market value . In the opinion of the trustees, the market value of the land and buildings has not significantly changed since their revaluation.

At 31 July 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £575,087 (2020 - £605,354).

All of the above tangible fixed assets were used for charitable purposes.

11 Investment property

Investment property
2021
£
Fair value
At 1 August 2020 and 31 July 2021 283,700

Investment property comprises of two properties owned by the charity which are held for rental returns and not for charitable purposes.

The fair value of investment properties has been determined by the trustees on the basis of market value.

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
13
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2021
£
3,000
37,648
19,154
59,802
2021
£
1,157,500
1,037,500
120,000		 2020
£
-
36,305
21,172
57,477
2020
£
187,866
187,866
-

The long-term loans are secured by fixed charges over commercial freehold units known as 62/62A, 56 and 24 Bewick Road, Gateshead dated 21 December 2012 and 21 December 2020.

14 Creditors: amounts falling due within one year

Notes
Bank loans
13
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
15
Creditors: amounts falling due after more than one year
Notes
Bank loans
13		 2021
£
1,037,500
20,285
304,991
51,971
21,723
1,436,470
2021
£
120,000		 2020
£
187,866
17,208
87,891
4,653
38,940
336,558
2020
£
-

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

16 Movement in funds

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources
Revaluations
Balance at 31
1 August resources expended gains and
July 2021
2020 losses
£ £ £ £
£
Unrestricted general funds 6,618,896 3,103,073 (2,488,147) -
7,233,822
Comparative:
Movement in funds
Balance at Incoming Resources
Revaluations
Balance at 31
1 August resources expended gains and
July 2020
2019 losses
£ £ £ £
£
Unrestricted general funds 5,933,693 2,748,341 (2,063,138) -
6,618,896
17 Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 43,690 43,707

Rabbi S Kohn is a trustee of the charity, for which he is not remunerated. He is remunerated for his role as Principal of the college. Total remuneration, including employers national insurance contributions, was £43,690 (2020: £43,708).

During the year six family members of one of the trustees received remuneration totalling £139,986 (2020: six - £138,943).

BETH MIDRASH LEMOROTH (JEWISH TEACHERS' TRAINING COLLEGE GATESHEAD) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

18 Cash generated from operations 2021 2020
£ £
Surplus for the year 614,926 685,203
Adjustments for:
Investment income recognised in statement of financial activities (11,787) (9,981)
Depreciation and impairment of tangible fixed assets 152,316 61,333
Movements in working capital:
(Increase)/decrease in debtors (2,325) 7,628
Increase in creditors 250,278 13,890
Cash generated from operations 1,003,408 758,073
19 Analysis of changes in net (debt)/funds
At 1 August Cash flows At 31 July
2020 2021
£ £ £
Cash at bank and in hand 11,576 262,293 273,869
Loans falling due within one year (187,866) (849,634) (1,037,500)
Loans falling due after more than one year - (120,000) (120,000)
(176,290) (707,341) (883,631)