MW (HO) Foundation Charity Accounts
MW (HO) Foundation Charity Accounts
COMPANY REGISTRATION NUMBER:
7073428
CHARITY REGISTRATION NUMBER:
1134919
|
Company Limited by Guarantee |
|
|
|
Company Limited by Guarantee |
Financial Statements |
Year ended 30 November 2021
Page |
|
Trustees' annual report (incorporating the director's report) |
1 |
Independent examiner's report to the trustees |
6 |
Statement of financial activities (including income and expenditure account) |
8 |
Statement of financial position |
9 |
Statement of cash flows |
11 |
Notes to the financial statements |
12 |
|
Company Limited by Guarantee |
Trustees' Annual Report (Incorporating the Director's Report) |
Year ended 30 November 2021
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended
30 November 2021
.
Reference and administrative details
Registered charity name |
|
Charity registration number |
|
Company registration number |
|
Principal office and registered |
2nd Floor - Parkgates |
office |
Bury New Road |
Prestwich |
|
Manchester |
|
M25 0TL |
|
The trustees
|
||
|
||
Independent examiner |
|
2nd Floor - Parkgates |
|
Bury New Road |
|
Prestwich |
|
Manchester |
|
M25 0TL |
|
Structure, governance and management
Recruitment and appointment of new trustees would be in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.
There is no chief executive officer. The day to day affairs are undertaken by Mr
D Olsberg
on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.
There are no policies for the induction or training of new trustees.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The risks faced by the trust are principally operational risks from ineffective grant making. These risks are managed by the trustees researching potential beneficiaries before granting donations.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all grants.
Risk management
The Trustees are responsible for the management of the risks faced by the Charity. A formal review of the charity's risk management processes is undertaken on an annual basis.
The key controls used by the charity include:
- Comprehensive strategic planning and budgeting;
- Established organisational structure and lines of reporting;
- Clear authorisation and approval levels.
Through the risk management processes established for the Charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
Objectives and activities
The objects of the charity are:
(1) For the public benefit to promote the education of people of all ages around the world in such ways as the charity trustees think fit, including awarding to such persons scholarships, maintenance allowances or grants; or by grants to charities or other organisations worldwide that provide education;
(2) The prevention or relief of poverty or financial hardship anywhere in the world by providing: grants or loans to individuals in need and/or charities, or other organisations working to prevent or relieve poverty or financial hardship;
(3) To advance the Orthodox Jewish religion worldwide for the benefit of the public in accordance with the principles of the Code of Jewish Law (Shulchan Aruch).
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.
Grant making policy
The charity is funded by donations and investment income. The charity gives out grants in line with the above objects.
Grants made during the year to institutions and individuals are as detailed in the accounts.
The application of the funds by way of grants to either institutions or individuals and is almost always to institutions.
The trustees consider they have met the public benefit test and outline these achievements below.
The trustees measure the success of achieving the stated aims by the number and value of grants paid out for each object. The grants paid out in the year are detailed in the notes to the accounts and the trustees consider they have met their aims successfully this year.
The trustees consider the shorter term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
Achievements and performance
The charity received £434,420 in donations during the year and paid out £577,219 by way of grants and support costs. These grants were made in line with the stated objects of the charity.
The charity has investment income receivable from investment property for the year amounting to £57,316. The trustees consider the return on the investments to be appropriate for the risk associated with the investments. The trustees are also conscious of capital growth that could enhance the returns yet further.
A further £26,609 was earned by the charity in interest receivable on its investments during the year.
During the year the charity received a donated asset to the value of £110,000 from an associated charity.
During the year the charity sold six investment properties and the loss on the sale of these three properties amounted to £39,098. The loss is disclosed on the face of the SOFA
The charity incurred governance costs comprising rent and professional fees.
All other office costs are borne by the trustees.
There were no material fundraising costs during the year.
Related party transactions are disclosed as applicable in the notes to the accounts.
There was an overall net expenditure and net movement in funds for the year amounting to £(120,271).
Financial review
Investment performance
The investments of the charity have provided a gross investment return of 4%.
The trustees consider this acceptable when compared with returns available on deposits in any of the banking institutions. These investment returns have been consistent for a number of years and are not at the expense of any exposure of loan to value covenants that would put these investments at risk.
The trustees feel that the activity reflects the profile and standing within the local community. The impact for future year's expenditure is self evident and the trustees would like to record their appreciation for all the financial support received from benefactors during the course of the year.
Coronavirus
The trustees have considered the impact of coronavirus on the charity and specifically on the value of the investment properties. The trustees have taken advice and consider that there are no material indications to suggest a reduction in the values.
Reserves policy
The Unrestricted Fund represents the unrestricted funds arising from past operating results.
The Trustees are satisfied that the balance of the Fund is an acceptable level of reserves given the nature of revenue receipts against grants payable.
In considering the financial obligations of the charity, the trustees have resolved to maintain a minimum reserve, being the current assets of the charity.
The trustees have considered the fair (market) value of the investment property. The trustees consider the holding value to be the fair (market) value.
The trustees consider that the year was acceptable in terms of income generated from its investment and grants paid out. The trustees are delighted to have made many valuable contributions to the community as a result of these donations and hope to be able to do so for many years to come.
The free reserves, being the net current assets of the charity, amounted to £767,976, all of which are unrestricted.
The trustees' annual report and the strategic report were approved on
29 September 2022
and signed on behalf of the board of trustees by:
|
Trustee |
|
Company Limited by Guarantee |
Independent Examiner's Report to the Trustees of
|
Year ended 30 November 2021
I report to the trustees on my examination of the financial statements of
MW (HO) Foundation
('the charity') for the year ended 30 November 2021.
Responsibilities and basis of report
As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1.
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
2.
the financial statements do not accord with those records; or
3.
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
4.
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
2nd Floor - Parkgates
Bury New Road
Prestwich
Manchester
M25 0TL
29 September 2022
|
Company Limited by Guarantee |
Statement of Financial Activities |
(including income and expenditure account) |
Year ended 30 November 2021
2021 |
2020 |
||
Unrestricted funds |
Total funds |
Total funds |
|
Note |
£ |
£ |
£ |
Income and endowments
Donations and legacies |
5 |
|
|
|
Investment income |
6 |
|
|
|
--------- |
--------- |
--------- |
||
Total income |
|
|
|
|
--------- |
--------- |
--------- |
||
Expenditure
Expenditure on raising funds:
Investment management costs |
7 |
22,299 |
22,299 |
24,716 |
|
Expenditure on charitable activities |
8,9 |
|
|
|
|
--------- |
--------- |
--------- |
|||
Total expenditure |
|
|
|
||
--------- |
--------- |
--------- |
|||
Net losses on investments |
12 |
(
|
(
|
(
|
--------- |
--------- |
--------- |
|
Net (expenditure)/income and net movement in funds |
(
|
(
|
|
--------- |
--------- |
--------- |
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Reconciliation of funds
Total funds brought forward |
|
|
|
------------ |
------------ |
------------ |
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Total funds carried forward |
|
|
|
------------ |
------------ |
------------ |
|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
|
Company Limited by Guarantee |
Statement of Financial Position |
2021 |
2020 |
||
Note |
£ |
£ |
£ |
Fixed assets
Investments |
16 |
|
|
|
Current assets
Debtors |
17 |
|
|
|
Investments |
18 |
|
|
|
Cash at bank and in hand |
|
|
||
--------- |
--------- |
|||
|
|
|||
Creditors: amounts falling due within one year |
19 |
|
|
|
--------- |
--------- |
|||
Net current assets |
|
|
||
------------ |
------------ |
|||
Total assets less current liabilities |
|
|
||
Creditors: amounts falling due after more than one year |
20 |
|
|
|
------------ |
------------ |
|||
Net assets |
|
|
||
------------ |
------------ |
|||
Funds of the charity
Unrestricted funds |
|
|
||
------------ |
------------ |
|||
Total charity funds |
21 |
|
|
|
------------ |
------------ |
|||
Directors' responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements
.
|
Company Limited by Guarantee |
Statement of Financial Position (continued) |
These financial statements were approved by the
board of trustees
and authorised for issue on
29 September 2022
, and are signed on behalf of the board by:
|
Trustee |
|
Company Limited by Guarantee |
Statement of Cash Flows |
Year ended 30 November 2021
2021 |
2020 |
|
£ |
£ |
|
Cash flows from operating activities
Net (expenditure)/income |
(120,271) |
292,924 |
Adjustments for: |
||
Net losses on investments |
39,098 |
9,745 |
Dividends, interest and rents from investments |
(57,316) |
(72,620) |
Other interest receivable and similar income |
(
|
(
|
Interest payable and similar charges |
|
|
Accrued expenses/(income) |
|
(
|
Changes in: |
||
Trade and other debtors |
(
|
|
Trade and other creditors |
(
|
|
--------- |
--------- |
|
Cash generated from operations |
(
|
|
Interest paid |
(
|
(
|
Interest received |
– |
|
--------- |
--------- |
|
Net cash (used in)/from operating activities |
(
|
|
--------- |
--------- |
|
Cash flows from investing activities
Dividends, interest and rents from investments |
57,316 |
72,620 |
Purchases of other investments |
(
|
(
|
Proceeds from sale of other investments |
|
|
--------- |
--------- |
|
Net cash from/(used in) investing activities |
|
(
|
--------- |
--------- |
|
Cash flows from financing activities
Proceeds from borrowings |
(
|
|
--------- |
--------- |
|
Net cash (used in)/from financing activities |
(
|
|
--------- |
--------- |
|
Net decrease in cash and cash equivalents |
(
|
(
|
Cash and cash equivalents at beginning of year |
10,433 |
56,836 |
-------- |
-------- |
|
Cash and cash equivalents at end of year |
|
(
|
-------- |
-------- |
|
|
Company Limited by Guarantee |
Notes to the Financial Statements |
Year ended 30 November 2021
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 2nd Floor - Parkgates, Bury New Road, Prestwich, Manchester, M25 0TL.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Going concern
Judgements and key sources of estimation uncertainty
Fund accounting
Incoming resources
Resources expended
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Investment property
Investments in associates
Impairment of fixed assets
Financial instruments
4.
Limited by guarantee
5.
Donations and legacies
Unrestricted Funds |
Total Funds 2021 |
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
£ |
£ |
||
Donations
Donations |
434,420 |
434,420 |
524,139 |
524,139 |
|
--------- |
--------- |
--------- |
--------- |
||
6.
Investment income
Unrestricted Funds |
Total Funds 2021 |
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
£ |
£ |
||
Income from investment properties |
57,316 |
57,316 |
72,620 |
72,620 |
|
Other interest receivable |
26,609 |
26,609 |
32,280 |
32,280 |
|
-------- |
-------- |
--------- |
--------- |
||
|
|
|
|
||
-------- |
-------- |
--------- |
--------- |
||
7.
Investment management costs
Unrestricted Funds |
Total Funds 2021 |
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
£ |
£ |
||
Rent collection |
22,299 |
22,299 |
24,716 |
24,716 |
|
-------- |
-------- |
-------- |
-------- |
||
8.
Expenditure on charitable activities by fund type
Unrestricted Funds |
Total Funds 2021 |
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
£ |
£ |
||
Charitable grants |
541,764 |
541,764 |
275,946 |
275,946 |
|
Support costs |
35,455 |
35,455 |
25,708 |
25,708 |
|
--------- |
--------- |
--------- |
--------- |
||
|
|
|
|
||
--------- |
--------- |
--------- |
--------- |
||
Copies of the full schedule of charitable grants can be obtained by applying in writing to the trustees at the registered office of the charity.
9.
Expenditure on charitable activities by activity type
Grant funding of activities |
Support costs |
Total funds 2021 |
Total fund 2020 |
||
£ |
£ |
£ |
£ |
||
Charitable grants |
541,764 |
32,390 |
574,154 |
299,256 |
|
Governance costs |
– |
3,065 |
3,065 |
2,398 |
|
--------- |
-------- |
--------- |
--------- |
||
|
|
|
|
||
--------- |
-------- |
--------- |
--------- |
||
10.
Analysis of support costs
Analysis of support costs activity 1 |
Total 2021 |
Total 2020 |
||
£ |
£ |
£ |
||
General office |
11,131 |
11,131 |
9,326 |
|
Finance costs |
21,259 |
21,259 |
13,982 |
|
Governance costs |
3,065 |
3,065 |
2,400 |
|
-------- |
-------- |
-------- |
||
35,455 |
35,455 |
25,708 |
||
-------- |
-------- |
-------- |
||
11.
Analysis of grants
2021 |
2020 |
|
£ |
£ |
|
Grants to institutions
Community Projects |
226,696 |
93,027 |
Educational Grants |
117,660 |
55,800 |
Relief of Poverty |
63,636 |
87,423 |
Religious Grants |
125,500 |
7,000 |
Grants under £1,000 |
8,272 |
32,696 |
--------- |
--------- |
|
|
|
|
--------- |
--------- |
|
Total grants |
541,764 |
275,946 |
--------- |
--------- |
|
12.
Net losses on investments
Unrestricted Funds |
Total Funds 2021 |
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
£ |
£ |
||
Gains/(losses) on investment property |
(39,098) |
(39,098) |
15,255 |
15,255 |
|
Gains/(losses) on revaluation of investment assets |
– |
– |
(25,000) |
(25,000) |
|
-------- |
-------- |
-------- |
-------- |
||
(
|
(
|
(
|
(
|
||
-------- |
-------- |
-------- |
-------- |
||
13.
Independent examination fees
2021 |
2020 |
|
£ |
£ |
|
Fees payable to the independent examiner for:
Independent examination of the financial statements |
2,520 |
2,400 |
------- |
------- |
|
14.
Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2021 |
2020 |
|
£ |
£ |
|
The average head count of employees during the year was Nil
(2020: Nil).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
15.
Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
16.
Investments
Investment properties |
Other investments |
Total |
|
£ |
£ |
£ |
|
Cost or valuation |
|||
At 1 December 2020 |
1,841,624 |
471,186 |
2,312,810 |
Additions |
279,364 |
– |
279,364 |
Disposals |
(645,000) |
– |
(645,000) |
------------ |
--------- |
------------ |
|
At 30 November 2021 |
1,475,988 |
471,186 |
1,947,174 |
------------ |
--------- |
------------ |
|
Impairment |
|||
At 1 December 2020 and 30 November 2021 |
– |
– |
|
--------- |
------------ |
||
Carrying amount |
|||
At 30 November 2021 |
1,475,988 |
471,186 |
1,947,174 |
------------ |
--------- |
------------ |
|
At 30 November 2020 |
1,841,624 |
471,186 |
2,312,810 |
------------ |
--------- |
------------ |
|
All investments shown above are held at valuation.
Investment properties
Investment properties above represent investments in UK investment property comprising various investment properties in the UK that the charity owns outright. Valuation of the UK investment property is current market value which is fair value in the opinion of the trustees.
Other investments above represent investments with a holding of 25% and are accounted for in the same way as the investments properties above. Valuation of the associate holding is at market value, which is fair value, of the syndicate property in the opinion of the trustees. The trustees consider they do not exert significant influence and control over these investments. The trustees have elected to make use of relevant exemptions under FRS 102 as they do not believe it is appropriate, given the nature of these investments, to account for them as associates.
17.
Debtors
2021 |
2020 |
|
£ |
£ |
|
Trade debtors |
|
– |
Prepayments and accrued income |
|
|
Other debtors |
|
|
--------- |
--------- |
|
|
|
|
--------- |
--------- |
|
18.
Investments
2021 |
2020 |
|
£ |
£ |
|
Other investments |
532,188 |
479,739 |
--------- |
--------- |
|
Other investments are loans to companies owned by the trustees and are fully secured as well as interest bearing.
19.
Creditors:
amounts falling due within one year
2021 |
2020 |
|
£ |
£ |
|
Accruals and deferred income |
|
|
Other creditors |
– |
|
Other creditors |
|
|
-------- |
-------- |
|
|
|
|
-------- |
-------- |
|
20.
Creditors:
amounts falling due after more than one year
2021 |
2020 |
|
£ |
£ |
|
Bank loans and overdrafts |
|
|
--------- |
--------- |
|
21.
Analysis of charitable funds
Unrestricted funds
At 1 December 2020 |
Income |
Expenditure |
Gains and losses |
At 30 November 2021 |
|
£ |
£ |
£ |
£ |
£ |
|
General funds |
2,529,421 |
518,345 |
(599,518) |
(39,098) |
2,409,150 |
------------ |
--------- |
--------- |
-------- |
------------ |
|
At 1 December 2019 |
Income |
Expenditure |
Gains and losses |
At 30 November 2020 |
|
£ |
£ |
£ |
£ |
£ |
|
General funds |
2,236,497 |
629,039 |
(326,370) |
(9,745) |
2,529,421 |
------------ |
--------- |
--------- |
------- |
------------ |
|
22.
Analysis of net assets between funds
Unrestricted Funds |
Total Funds 2021 |
||
£ |
£ |
||
Investments |
1,947,174 |
1,947,174 |
|
Current assets |
813,159 |
813,159 |
|
Creditors less than 1 year |
(45,183) |
(45,183) |
|
Creditors greater than 1 year |
(306,000) |
(306,000) |
|
------------ |
------------ |
||
Net assets |
2,409,150 |
2,409,150 |
|
------------ |
------------ |
||
Unrestricted Funds |
Total Funds 2020 |
||
£ |
£ |
||
Investments |
2,312,810 |
2,312,810 |
|
Current assets |
702,112 |
702,112 |
|
Creditors less than 1 year |
(49,501) |
(49,501) |
|
Creditors greater than 1 year |
(436,000) |
(436,000) |
|
------------ |
------------ |
||
Net assets |
2,529,421 |
2,529,421 |
|
------------ |
------------ |
||
23.
Analysis of changes in net debt
At 1 Dec 2020 |
Cash flows |
At 30 Nov 2021 |
|
£ |
£ |
£ |
|
Cash at bank and in hand |
|
(6,029) |
|
Debt due after one year |
(436,000) |
130,000 |
(306,000) |
Current asset investments |
|
52,449 |
|
--------- |
--------- |
--------- |
|
|
|
|
|
--------- |
--------- |
--------- |
|
|
Company Limited by Guarantee |
Notes to the Financial Statements (continued) |
Year ended 30 November 2021
24.
Related parties
Mr
D Olsberg
, trustee of MW (HO) Foundation
also has the following directorships and ownerships as detailed below:- Debmar Benevolent Trust Ltd - trustee; Hilary Holdings Ltd - director; Wisewear Universal Holdings Ltd - director; D & H Estates (No. 2) Limited - director; D & H Estates (No. 3) Limited - director. All the donated income for the year came from one or more of the above companies or from none connected sources. Current asset investments include D & H Estates (No. 2) Limited and D & H Estates (No. 3) Limited with a collective balance of £479,739 at the year end at a preferential rate of annual interest and with a secured debenture. The interest receivable accrual at the year end amounted to £26,609.
25.
Taxation