Friends of Wiznitz Limited - Charities report - 20.2

REGISTERED COMPANY NUMBER: 00929964 (England and Wales)

REGISTERED CHARITY NUMBER: 255685

FRIENDS OF WIZNITZ LIMITED

(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

3

Report of the Independent Auditors

4

to

5

Statement of Financial Activities

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10

to

16

TRUSTEES

S Feldman

H Feldman

E Gottesfeld

REGISTERED OFFICE

First Floor

94 Stamford Hill

London

N16 6XS

REGISTERED COMPANY NUMBER

00929964 (England and Wales)

REGISTERED CHARITY NUMBER

255685

INDEPENDENT AUDITORS

Sugarwhite Meyer Accountants Ltd

Chartered Accountants & Statutory Auditor

First Floor

94 Stamford Hill

London

N16 6XS

BANKERS

Barclays Bank plc

240 Whitechapel Road

London

E1 1BJ

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 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).

Reference and administrative information

Reference and administrative information is shown on page 1 of the financial statements and forms part of this report.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the charity are the furtherance of purposes recognised as charitable by English Law with special regard to the Wiznitz Institutions.

The trustees carry out these objects by making grants to charities working in the field of the advancement of religion, religious education and relief of poverty and granting free use of buildings, for educational purposes, to other Wiznitz charities.

The trustees confirm that they have referred to the Charity Commission's 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.

Grantmaking

In general the trustees select the institutions to be supported according to their personal knowledge of work of the institution. Whilst not actively inviting applications, they are always prepared to accept any application which will be carefully considered and help given according to circumstances and funds then

available.

Applications by individuals must be accompanied by a letter of recommendation by the applicant's minister or other known religious leader.

ACHIEVEMENT AND PERFORMANCE

Achievement and performance

The charity is reliant on donations and investment income. During the year the charity had a major fundraising campaign and also a gala dinner. The outcome of both of these was a near 50% increase in donations over the previous year. the trustees increased grantmaking by some 71%.The charity continued its philanthropic activities in support of organisations engaging in education, advancement of religion, and the relief of poverty, both in England and abroad.

Fundraising activities

The charity held a major fund raising dinner in London. It proved to be of great benefit in raising awareness of the charity and its work in supporting institutions in need of financial support.

FINANCIAL REVIEW

Investment policy and performance

Under the memorandum and articles of association the charity has the power to make any investment which the trustees see fit. The trustees consider that investment in property meets their criteria for income and capital growth. The return is considered satisfactory

Reserves policy

The trustees do not seek to maintain reserves, other than to ensure that they can continue the activities of the charity. Unrestricted funds at the year end were £5,483,317 of which unrealised gains were £4,250,790.

FUTURE PLANS

Subject to satisfactory income the trustees anticipate that the charity will continue on a similar basis in the foreseeable future and there are no plans for any major changes.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 2 April 1968.

Recruitment and appointment of new trustees

The power to appoint new trustees is vested in the continuing board. It is not the intention of the trustees to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures.

Risk management

The trustees have reviewed the major risks that the charity faces and confirm that they have established systems to mitigate them.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Friends of Wiznitz Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Sugarwhite Meyer Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 19 November 2020 and signed on its behalf by:

S Feldman - Trustee

Opinion

We have audited the financial statements of Friends of Wiznitz Limited (the 'charitable company') for the year ended 31 March 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where 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 take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 a Report of the Independent Auditors 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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company'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 charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

E Meyer FCA BSc (Senior Statutory Auditor)

for and on behalf of Sugarwhite Meyer Accountants Ltd

Chartered Accountants & Statutory Auditor

First Floor

94 Stamford Hill

London

N16 6XS

19 November 2020

2020

2019

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

4,600,488

-

4,600,488

3,080,045

Other trading activities

3

15,000

-

15,000

15,000

Investment income

4

80,432

-

80,432

77,811

Total

4,695,920

-

4,695,920

3,172,856

EXPENDITURE ON

Raising funds

5

96,874

-

96,874

25,287

Charitable activities

6

Charitable activities

5,436,341

-

5,436,341

3,165,370

School expenditure

21,130

-

21,130

15,446

Total

5,554,345

-

5,554,345

3,206,103

Net gains on investments

996,108

-

996,108

-

NET INCOME/(EXPENDITURE)

137,683

-

137,683

(33,247

)

RECONCILIATION OF FUNDS

Total funds brought forward

5,345,634

-

5,345,634

5,378,881

TOTAL FUNDS CARRIED FORWARD

5,483,317

-

5,483,317

5,345,634

2020

2019

Notes

£

£

FIXED ASSETS

Tangible assets

12

3,850,000

2,853,892

Investment property

13

2,369,684

2,369,684

6,219,684

5,223,576

CURRENT ASSETS

Debtors

14

62,000

18,500

Cash at bank

1,159,433

121,438

1,221,433

139,938

CREDITORS

Amounts falling due within one year

15

(447,800

)

(17,880

)

NET CURRENT ASSETS

773,633

122,058

TOTAL ASSETS LESS CURRENT LIABILITIES

6,993,317

5,345,634

CREDITORS

Amounts falling due after more than one year

16

(1,510,000

)

-

NET ASSETS

5,483,317

5,345,634

FUNDS

19

Unrestricted funds:

General fund

5,483,317

5,345,634

TOTAL FUNDS

5,483,317

5,345,634

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

The financial statements were approved by the Board of Trustees and authorised for issue on 19 November 2020 and were signed on its behalf by:

S Feldman - Trustee

Cash flows from operating activities

Cash generated from operations

1

(472,005

)

(33,647

)

Net cash used in operating activities

(472,005

)

(33,647

)

Cash flows from investing activities

Loan

1,510,000

-

Net cash provided by investing activities

1,510,000

-

Change in cash and cash equivalents in the reporting period

1,037,995

(33,647

)

Cash and cash equivalents at the beginning of the reporting period

121,438

155,085

Cash and cash equivalents at the end of the reporting period

1,159,433

121,438

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020

2019

£

£

Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities)

137,683

(33,247

)

Adjustments for:

Losses on investments

(996,108

)

-

Increase in debtors

(43,500

)

(8,500

)

Increase in creditors

429,920

8,100

Net cash used in operations

(472,005

)

(33,647

)

2.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank

121,438

1,037,995

1,159,433

121,438

1,037,995

1,159,433

Debt

Debts falling due after 1 year

-

(1,510,000

)

(1,510,000

)

-

(1,510,000

)

(1,510,000

)

Total

121,438

(472,005

)

(350,567

)

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors 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. The estimates and underlying assumptions are reviewed on an ongoing basis.

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.

Income

Donations are recognised in the Statement of Financial Activities of the charity when received. All other income is recognised in the year in which it is receivable.

Expenditure

Liabilities are recognised in the year in which they are incurred and includes irrecoverable VAT which is reported as part of the expenditure to which it relates.

Grants are only recognised in the accounts when paid.

Support costs are those incurred to assist the work of the charity but are not direct charitable activities

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements

Tangible fixed assets

All fixed assets are initially recorded at cost. No depreciation is provided on freehold land and building used as a functional asset.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. It is revalued to its fair value at each reporting date any changes are transferred to the Statement of Financial Activities. No depreciation is provided in respect of investment properties applying the fair value.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Going concern

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

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the amount expected to be received or paid and not discounted.

2.	DONATIONS AND LEGACIES

2020

2019

£

£

Donations

4,600,488

3,080,045

3.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Rents

15,000

15,000

4.	INVESTMENT INCOME

2020

2019

£

£

Property income

80,432

77,811

5.	RAISING FUNDS

Raising donations and legacies

2020

2019

£

£

Postage and stationery

5,954

-

Sundries

2,000

-

Function

61,455

21,113

Advertising

6,086

1,761

75,495

22,874

Investment management costs

2020

2019

£

£

Investment advice

4,114

1,020

Utilities

460

-

Insurance

724

703

Property repairs

16,081

-

Maintenance charges

-

690

21,379

2,413

Aggregate amounts

96,874

25,287

6.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

Direct

(see note

costs (see

Costs

7)

note 8)

Totals

£

£

£

£

Charitable activities

11,006

5,413,720

11,615

5,436,341

School expenditure

21,130

-

-

21,130

32,136

5,413,720

11,615

5,457,471

7.	GRANTS PAYABLE

2020

2019

£

£

Charitable activities

5,413,720

3,155,343

The total grants paid to institutions during the year was as follows:

2020

2019

£

£

Religious education

4,231,915

1,656,031

Relief of poverty

869,700

625,800

Advancement of religion

250,460

846,312

Social welfare

16,500

-

Medical

-

3,000

5,368,575

3,131,143

Mosdos Viznitz

2,354,500

Igud Mosdot Wiznitz

1,434000

Lehachzikom

566,200

Lehachzikom Velehachyosom

203,500

Mosdos Imrei Chaim

124,700

CMZ Ltd

70,000

Kollel Viznitz London

69,600

Vishnitz Girls School Lts

62,000

Keren LeHazonas Yeladim

60,000

Ahavat Israel Synagogue

54,000

Others under £50,000

370,075

5,368,575

The total grants paid to individuals during the year was as follows:

2020

2019

£

£

Relief of poverty

42,065

14,000

Medical

3,080

10,200

45,145

24,200

8.	SUPPORT COSTS

Governance

Finance

costs

Totals

£

£

£

Charitable activities

2,892

8,723

11,615

Support costs, included in the above, are as follows:

Finance

2020

2019

Charitable

Total

activities

activities

£

£

Bank charges

2,892

1,927

Governance costs

2020

2019

Charitable

Total

activities

activities

£

£

Auditors' remuneration

3,600

3,600

Auditors' remuneration for non audit work

4,200

4,500

General expenses

923

-

8,723

8,100

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Auditors' remuneration

3,600

3,600

Auditors' remuneration for non audit work

4,200

4,500

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended 31 March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

11.	AVERAGE NUMBER OF STAFF

12.	TANGIBLE FIXED ASSETS

Freehold

property

£

COST OR VALUATION

At 1 April 2019

2,853,892

Revaluations

996,108

At 31 March 2020

3,850,000

NET BOOK VALUE

At 31 March 2020

3,850,000

At 31 March 2019

2,853,892

The fair value of the property has been arrived at on the basis of a valuation carried out by the trustees who are considered to have the experience and expertise required to undertake such an exercise. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

13.	INVESTMENT PROPERTY

£

FAIR VALUE

At 1 April 2019

and 31 March 2020

2,369,684

NET BOOK VALUE

At 31 March 2020

2,369,684

At 31 March 2019

2,369,684

The fair value of the investment properties has been arrived at on the basis of a valuation carried out by the trustees who are considered to have the experience and expertise required to undertake such an exercise. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties in the same or similar locations.

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other debtors

62,000

-

No description

-

18,500

62,000

18,500

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other creditors

440,000

-

Accruals and deferred income

7,800

17,880

447,800

17,880

16.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Other loans (see note 17)

1,510,000

-

17.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due between two and five years:

Other loans - 2-5 years

1,510,000

-

18.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020

2019

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

£

£

£

£

Fixed assets

3,850,000

-

3,850,000

2,853,892

Investments

2,369,684

-

2,369,684

2,369,684

Current assets

1,221,433

-

1,221,433

139,938

Current liabilities

(447,800

)

-

(447,800

)

(17,880

)

Long term liabilities

(1,510,000

)

-

(1,510,000

)

-

5,483,317

-

5,483,317

5,345,634

19.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

5,345,634

137,683

5,483,317

TOTAL FUNDS

5,345,634

137,683

5,483,317