KMB Estates Charity Accounts

COMPANY REGISTRATION NUMBER: 10520302

CHARITY REGISTRATION NUMBER: 1179051

KMB ESTATES

Company Limited by Guarantee

Financial Statements

For the period ended

31 March 2019

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Financial Statements

Period from 1 January 2018 to 31 March 2019

	PAGES

Trustees' Annual Report (Incorporating the Director's Report)	1 to 4

Independent Auditor's Report to the Members	5 to 7

Statement of Financial Activities (Including Income and Expenditure Account)	8

Statement of Financial Position	9

Statement of Cash Flows	10

Notes to the Financial Statements	11 to 16

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report)

Period from 1 January 2018 to 31 March 2019

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the period ended 31 March 2019 .

Reference and administrative details

Registered charity name	KMB Estates

Charity registration number	1179051

Company registration number	10520302

Principal office	80A Darenth Road
	London
	N16 6ED

Registered office	New Burlington House
	1075 Finchley Road
	London
	NW11 0PU

The trustees

	Mr S Berger
	Mr J Berger
	Mrs D Berger
	Mrs S Stein

AUDITOR	Cohen Arnold
	Chartered accountants & statutory auditor
	New Burlington House
	1075 Finchley Road
	LONDON
	NW11 0PU

Structure, governance and management

The Charitable Company is constituted as a Company Limited by Guarantee and as such, its governing documents are its Memorandum and Articles of Association.

The day-to-day affairs of the Charity are administered by the Trustees. None of the Trustees have any beneficial interest in the Charity.

On 18 June 2019, Mrs S Stein was appointed as a new Trustee of the charity.

It is not currently the intention of the Trustees of the Charity to appoint additional new Trustees. Should the situation change in the future, the Trustees will apply suitable recruitment training and induction procedures.

Objectives and activities

The Charitable Company is established to further those purposes both in the United Kingdom and abroad recognised as charitable by English Law. In furtherance of the aforementioned objects, the Charitable Company receives income mainly from charitable receipts and investment properties, which it utilises in the provision and distribution of grants and donations that fall within in the objectives of the Charitable Company. It has concentrated its activities in giving grants to institutions that focus on on the relief of poverty and the advancement of education and religion.

The Charity's principal activity throughout the year was the provision and distribution of donations and grants to organisations, and no change is envisaged in the immediate future.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year.

Grant making policy

Grants are made to charitable institutions and organisations which accord with the objects of the charity.

The Trustees are approached for donations by a wide variety of charitable institutions operating all over England. The trustees consider all requests which they receive and make donations based on the level of funds available.

Achievements and performance

During the year the charity continued to pursue its philanthropic objects in support of educational, religious and other charitable organisations. Income from donations and investments aggregated £2,849,783. Total resources expended were £65,487.

Grants and donations in the year totalled £37,000.

Financial review

The financial results of the charity's activities for the year to 31 March 2019 are fully reflected in the attached Financial Statements together with the Notes thereon.

The financial position of the Charitable Company is satisfactory.

Reserves policy

It is the policy of the Charitable Company to maintain unrestricted funds, which include the free reserves of the charity, at a level which the trustees consider appropriate, taking into account the future commitments of the charity and the likely costs of the charity for the next year. At 31 March 2019 the charity had unrestricted funds aggregating £2,784,296

As at 31 March 2019, the charity had free reserves of £42,796.

Risk management

The Trustees have identified and reviewed the major risks to which the Charity is exposed, and are satisfied that systems are in place to manage those risks.

The principal risks to which the Charity is exposed are:

- The availability of liquid funds to make grants and donations

- Liabilities arising from property investment activity

- Tenant defaults

- Damage to property from flood, fire or terrorist action

- The economic cycle generally

The Trustees seek to manage or mitigate such risks wherever possible through measures including insurance, tenant screening and monitoring, external expert advice, monitoring cash and regular monitoring of the economic outlook. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Plans for future periods

The Charitable Company plans to continue the activities outlined above in the forthcoming years subject to sufficient income and in and in accordance with their grant making policy.

Events after the end of the reporting period

The investment properties have been included in the Financial Statements at their fair value on the Balance Sheet Date. The Coronavirus Pandemic may have an impact on the value of the investment properties, which currently cannot be quantified.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, 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). Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the applicable Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Companies Act 2006. 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.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and - they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 17 September 2020 and signed on behalf of the board of trustees by:

Mrs D Berger

Trustee

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of KMB Estates

Period from 1 January 2018 to 31 March 2019

Opinion

We have audited the financial statements of KMB Estates (the 'charity') for the period ended 31 March 2019 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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 FRS 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: - give a true and fair view of the state of the charity's affairs as at 31 March 2019 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the trustees' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at 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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Asher Sternlicht

(Senior Statutory Auditor)

For and on behalf of

Cohen Arnold

Chartered accountants & statutory auditor

New Burlington House

1075 Finchley Road

LONDON

NW11 0PU

17 Sep 20

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Statement of Financial Activities

(including income and expenditure account)

Period from 1 January 2018 to 31 March 2019

	Period from 1 Jan 18 to 31 Mar 19
	Unrestricted funds	Total funds
Note	£	£

Income and endowments

Donations and legacies	5	2,783,500	2,783,500
Investment income	6	66,283	66,283
		-------------	-------------
Total income		2,849,783	2,849,783
		-------------	-------------

Expenditure

Expenditure on raising funds:

	Investment management costs	7	( 19,239)	( 19,239)
Expenditure on charitable activities		8,9	( 46,248)	( 46,248)
			-------------	-------------
Total expenditure			( 65,487)	( 65,487)
			-------------	-------------

	-------------	-------------
Net income and net movement in funds	2,784,296	2,784,296
	-------------	-------------

Reconciliation of funds

Total funds brought forward	–	–
	-------------	-------------
Total funds carried forward	2,784,296	2,784,296
	-------------	-------------

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

All income and expenditure derive from continuing activities.

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Statement of Financial Position

31 March 2019

	31 Mar 19
Note	£	£

Fixed assets

Investments		2,741,500

Current assets

Debtors	15	80,404
Cash at bank and in hand		252
		---------
		80,656

Creditors: amounts falling due within one year	16	( 37,860)
		---------
Net current assets			42,796
			-------------
Total assets less current liabilities			2,784,296
			-------------
Net assets			2,784,296
			-------------

Funds of the charity

Unrestricted funds		2,784,296
		-------------
Total charity funds	17	2,784,296
		-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 17 Sep 20 , and are signed on behalf of the board by:

Mr S Berger

Trustee

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Statement of Cash Flows

Period from 1 January 2018 to 31 March 2019

	31 Mar 19
	£

Cash flows from operating activities

Net income	2,784,296

Adjustments for:
Accrued expenses	4,500
Non-cash donations received	(2,741,500)

Changes in:
Trade and other debtors	( 80,404)
Trade and other creditors	33,360
	-------------
Cash generated from operations	252
	----
Net cash from operating activities	252
	----

Net increase in cash and cash equivalents	252
Cash and cash equivalents at beginning of period	–
	----
Cash and cash equivalents at end of period	252
	----

KMB ESTATES

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements

Period from 1 January 2018 to 31 March 2019

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The Charity was registered with the Charity Commission on 3 July 2018 and these are the first financial statements since registration. The Trustees have chosen the financial period end as 31 March. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The valuation of investment properties is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions.

Taxation

The Charitable Company is not liable to direct taxation on its income as it falls within the various exemptions available to registered charities. Notwithstanding the above, deferred tax is recognised in respect of all timing differences present in the non-charitable subsidiary undertakings. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Resources expended

Expenditure is recognised as soon as there is a present obligation committing the Charity to pay out resources, it is probable that a transfer of economic benefits will be required in settlement and the amount can be measured or estimated reliably.

Grants payable are only recognised in the accounts when paid.

Investment management costs

Investment management costs include costs relating to the investment properties on an accrual basis.

Support costs

Support costs are those costs which are common to all areas of the organisation. These are allocated across all areas of activity on the basis of the number of service users for each activity.

Governance costs

Governance costs are associated with the governance arrangements of the charity and relate to the general running of the charity. These costs include audit, legal advice for Trustees and costs associated with meeting constitutional and statutory requirements such as the cost of Trustee meetings and the preparation of the statutory accounts.

Investment property

Investment properties are recognised initially at cost. Subsequent to initial recognition - - Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and - No depreciation is provided in respect of investment properties applying the fair value model. Investment property fair value is determined by the Trustees, based on their understanding of property market conditions and the specific property concerned, using a sales valuation approach, derived from recent comparable transactions and market yields, adjusted by applying discounts to reflect status of occupation and condition.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

4. Limited by guarantee

The charity is a Company Limited by Guarantee and has no share capital. The liability of each Member in the event of winding up is limited to £10.

5. Donations and legacies

		Unrestricted Funds	Total Funds 2019
		£	£

Donations

Donations received	2,783,500	2,783,500
	-------------	-------------

Donations received includes £2,741,500 received in the form of freehold investment properties.

6. Investment income

	Unrestricted Funds	Total Funds 2019
	£	£
Income from investment properties	66,283	66,283
	---------	---------

7. Investment management costs

	Unrestricted Funds	Total Funds 2019
	£	£
Investment property outgoings	19,239	19,239
	---------	---------

8. Expenditure on charitable activities by fund type

	Unrestricted Funds	Total Funds 2019
	£	£
Alleviation of poverty, advancement of education and religion	37,000	37,000
Support costs	9,248	9,248
	---------	---------
	46,248	46,248
	---------	---------

9. Expenditure on charitable activities by activity type

	Grant funding of activities	Support costs	Total funds 2019
	£	£	£
Alleviation of poverty, advancement of education and religion	37,000	9,248	46,248
	---------	-------	---------

10. Analysis of support costs

	Auditors remuneration	Other governance costs	Total 2019
	£	£	£
Governance costs	4,500	4,748	9,248
	-------	-------	-------

11. Analysis of grants

	Period from
	1 Jan 18 to
	31 Mar 19
	£

Grants to institutions

United Talmudical Associates Ltd	25,000
Kahal Chassidim Bobov	12,000
	---------
	37,000
	---------
Total grants	37,000
	---------

12. Staff costs

There were no employees during the year.

13. Trustee remuneration and expenses

No trustees have been paid any remuneration or received any other benefits from the Charity.

14. Investments

	Investment properties
	£
Fair value
At 1 January 2018	–
Additions	2,741,500
	-------------
At 31 March 2019	2,741,500
	-------------
Impairment
At 1 January 2018 and 31 March 2019
Carrying amount
At 31 March 2019	2,741,500
	-------------

All investments shown above are held at valuation.

Investment properties

The Company's investment properties were valued by the trustees at 31 March 2019 based on the trustees' understanding of property market conditions and the specific properties concerned using a sales valuation approach, derived from recent comparable transactions on the market, adjusted by applying discounts to reflect status of occupation and condition.

In the event of the realisation of the company's investment properties at an amount equal to the valuation recorded in the financial statements, no liability to corporation tax on chargeable gains would arise because it is anticipated that all realised surpluses from the sale of investments will be applied for charitable purposes and therefore will be exempt from corporation tax.

The historical cost of the properties is £2,741,500.

15. Debtors

	31 Mar 19
	£
Trade debtors	68,835
Prepayments and accrued income	11,569
	---------
	80,404
	---------

16. Creditors: amounts falling due within one year

	31 Mar 19
	£
Trade creditors	33,360
Accruals and deferred income	4,500
	---------
	37,860
	---------

17. Analysis of charitable funds

Unrestricted funds

	At 1 January 2018	Income	Expenditure	At 31 March 2019
	£	£	£	£
General funds	–	2,849,783	(65,487)	2,784,296
	----	-------------	---------	-------------

18. Analysis of net assets between funds

	Unrestricted Funds	Total Funds 2019
	£	£
Investments	2,741,500	2,741,500
Current assets	80,656	80,656
Creditors less than 1 year	(37,860)	(37,860)
	-------------	-------------
Net assets	2,784,296	2,784,296
	-------------	-------------

19. Related parties

Donations received includes amounts aggregating £42,000 from Companies connected with the trustees of the Charitable Company. All donations received were unconditional.