Ahavath Chessed Charitable Association Limited Charity Accounts
Ahavath Chessed Charitable Association Limited Charity Accounts
COMPANY REGISTRATION NUMBER:
0711566
CHARITY REGISTRATION NUMBER:
313121
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Company Limited by Guarantee |
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Company Limited by Guarantee |
Financial Statements |
Year ended 31 March 2020
Page |
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Trustees' annual report (incorporating the director's report) |
1 |
Independent auditor's report to the members |
5 |
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 |
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Company Limited by Guarantee |
Trustees' Annual Report (Incorporating the Director's Report) |
Year ended 31 March 2020
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 year ended
31 March 2020
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Reference and administrative details
Registered charity name |
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Charity registration number |
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Company registration number |
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Principal office and registered |
Hallswelle House |
office |
1 Hallswelle Road |
London |
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NW11 ODH |
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The trustees
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Company secretary |
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Auditor |
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Chartered accountants & statutory auditor |
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Hallswelle House |
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1 Hallswelle Road |
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London |
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NW11 0DH |
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Structure, governance and management
The charity is organised so that the Governors meet regularly to manage its affairs. There are no paid employees and all administration work is carried out on a voluntary basis by the Governors.
The Governors have considered the guidance published by the Charity Commission and believe that the charity in carrying out its objectives, fully complies with these requirements. In particular the provision of funding for the education of children and adults in accordance with the principles of traditional Judaism and the support of associated communal charitable institutions such as synagogues and homes for the elderly and infirm automatically gives rise to a public benefit. Each year the Governors review the objectives and activities of the charity to ensure that they continue to reflect these aims. In carrying out this review the Governors have considered the Charity Commission's general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
The appointment and recruitment of new Governors is as laid out in the Charity's Memorandum and Articles of Association. New Governors would be trained as deemed appropriate.
The charity's Memorandum and Articles of Association authorises the Governors to make and hold investments.
Objectives and activities
The objects of the charity are to establish, provide and carry on in the United Kingdom or elsewhere a school or schools providing education of the highest order, and to provide religious instructions and training therein in accordance with the doctrines and principles of traditional Judaism and generally to foster education and moral and religious training in accordance with the said principles.
In furtherance of its objects the charity continued to advance and donate money and support other charities with objects similar to those detailed above.
The company's subsidiary undertakings were involved in property investment and property trading and continue to operate as such.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
Achievements and performance
The Governors have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate such risks.
Financial review
The financial position of the charity is as reflected in the attached Balance Sheet. The retained distributable reserves are less than that considered desirable by the Governors in accordance with their Reserve Policy.
The attached accounts set out the results for the year ended 31st March 2020 and reflect the state of the company's affairs at that date.
The subsidiaries activities are considered to be satisfactory in the light of the difficult economic conditions subsisting at this time.
The charity does not partake in external funding activities. Funds are derived on an annual basis from the subsidiary companies and from independent companies associated with the Governors and this source has enabled the charity to carry out its activities.
Plans for future periods
The Governors' objectives for the future are to continue to carry out the activities as detailed in their report.
RESERVES POLICY
It is the Governors desire to build up and maintain free reserves of the company at a level which the trustees believe is appropriate after considering both future commitments of the charity and the likely future administration costs of the charity.
Trustees' responsibilities statement
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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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.
The trustees' annual report and the strategic report were approved on
2 July 2021
and signed on behalf of the board of trustees by:
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Trustee |
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Company Limited by Guarantee |
Independent Auditor's Report to the Members of
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Year ended 31 March 2020
Opinion
Basis for 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:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Responsibilities of trustees
Auditor's responsibilities for the audit of the financial statements
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.
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(Senior Statutory Auditor) |
For and on behalf of |
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Chartered accountants & statutory auditor |
Hallswelle House |
1 Hallswelle Road |
London |
NW11 0DH |
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Company Limited by Guarantee |
Statement of Financial Activities |
(including income and expenditure account) |
Year ended 31 March 2020
2020 |
2019 |
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Unrestricted funds |
Total funds |
Total funds |
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Note |
£ |
£ |
£ |
Income and endowments
Donations and legacies |
5 |
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Investment income |
6 |
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------------ |
------------ |
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Total income |
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------------ |
------------ |
------------ |
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Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies |
7 |
(
159) |
(
159) |
(
437) |
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Expenditure on charitable activities |
8,9 |
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Total expenditure |
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Net income/(expenditure) and net movement in funds |
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(
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Reconciliation of funds
Total funds brought forward |
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------------ |
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Total funds carried forward |
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------------ |
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The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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Company Limited by Guarantee |
Statement of Financial Position |
2020 |
2019 |
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Note |
£ |
£ |
£ |
Fixed assets
Investments |
12 |
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Current assets
Debtors |
13 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year |
14 |
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Net current assets |
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--------- |
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Total assets less current liabilities |
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Funds of the charity
Unrestricted funds |
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------------ |
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Total charity funds |
15 |
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These financial statements were approved by the
board of trustees
and authorised for issue on
2 July 2021
, and are signed on behalf of the board by:
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Trustee |
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Company Limited by Guarantee |
Statement of Cash Flows |
Year ended 31 March 2020
2020 |
2019 |
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£ |
£ |
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Cash flows from operating activities
Net income/(expenditure) |
1,369,318 |
(614,823) |
Adjustments for: |
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Dividends, interest and rents from investments |
(2,320) |
(2,210) |
Other interest receivable and similar income |
(
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(
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Interest payable and similar charges |
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Changes in: |
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Trade and other debtors |
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(
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Trade and other creditors |
(
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------------ |
--------- |
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Cash generated from operations |
(
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Interest paid |
(
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(
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Interest received |
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--------- |
-------- |
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Net cash (used in)/from operating activities |
(
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--------- |
-------- |
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Cash flows from investing activities
Dividends, interest and rents from investments |
2,320 |
2,210 |
--------- |
-------- |
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Net cash from investing activities |
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--------- |
-------- |
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Cash flows from financing activities
Proceeds from loans from group undertakings |
(
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(
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--------- |
-------- |
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Net cash used in financing activities |
(
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(
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--------- |
-------- |
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Net (decrease)/increase in cash and cash equivalents |
(
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Cash and cash equivalents at beginning of year |
317,317 |
305,077 |
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Cash and cash equivalents at end of year |
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--------- |
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Company Limited by Guarantee |
Notes to the Financial Statements |
Year ended 31 March 2020
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 Hallswelle House, 1 Hallswelle Road, London, NW11 ODH.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Going concern
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Foreign currencies
Fund accounting
Incoming resources
All incoming resources are 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. The following specific policies are applied to particular categories of income: - 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. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
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.
Investments in associates
Investments in joint ventures
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
4.
Limited by guarantee
The charity is a limited company, limited by guarantee and accordingly has no share capital.
5.
Donations and legacies
Unrestricted Funds |
Total Funds 2020 |
Unrestricted Funds |
Total Funds 2019 |
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£ |
£ |
£ |
£ |
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Donations
Donations receivable |
5,929,069 |
5,929,069 |
1,975,200 |
1,975,200 |
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Deeds of covenant receivable |
1,519,477 |
1,519,477 |
72,500 |
72,500 |
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6.
Investment income
Unrestricted Funds |
Total Funds 2020 |
Unrestricted Funds |
Total Funds 2019 |
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£ |
£ |
£ |
£ |
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Income from listed investments |
2,320 |
2,320 |
2,210 |
2,210 |
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Bank interest receivable |
1 |
1 |
1 |
1 |
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------- |
------- |
------- |
------- |
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------- |
------- |
------- |
------- |
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7.
Costs of raising donations and legacies
Unrestricted Funds |
Total Funds 2020 |
Unrestricted Funds |
Total Funds 2019 |
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£ |
£ |
£ |
£ |
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Costs of raising donations and legacies |
(
159) |
(
159) |
(
437) |
(
437) |
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---- |
---- |
---- |
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8.
Expenditure on charitable activities by fund type
Unrestricted Funds |
Total Funds 2020 |
Unrestricted Funds |
Total Funds 2019 |
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£ |
£ |
£ |
£ |
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Donations & grants |
6,072,389 |
6,072,389 |
2,655,294 |
2,655,294 |
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Support costs |
9,319 |
9,319 |
9,877 |
9,877 |
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The charity's charitable donations have been detailed in a separate publication, copies of which are available to the public by writing to the Trustee, Mr H Feldman,
Ahavath Chessed Charitable Association Limited
, Hallswelle House, 1 Hallswelle Road, London NW11 ODH by registered post.
9.
Expenditure on charitable activities by activity type
Activities undertaken directly |
Support costs |
Total funds 2020 |
Total fund 2019 |
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£ |
£ |
£ |
£ |
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Donations & grants |
6,072,389 |
– |
6,072,389 |
2,655,294 |
|
Governance costs |
– |
9,319 |
9,319 |
9,877 |
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------------ |
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------------ |
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------- |
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10.
Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
2020 |
2019 |
|
£ |
£ |
|
Foreign exchange differences |
(159) |
(437) |
Fees payable for the audit of the financial statements |
9,000 |
9,000 |
------- |
------- |
|
11.
Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
12.
Investments
Listed investments |
|
£ |
|
Cost or valuation |
|
At 1 April 2019 and 31 March 2020 |
6,241 |
------- |
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Impairment |
|
At 1 April 2019 and 31 March 2020 |
|
Carrying amount |
|
At 31 March 2020 |
6,241 |
------- |
|
At 31 March 2019 |
6,241 |
------- |
|
All investments shown above are held at valuation.
Listed investments
All investments shown above are incorporated at cost.
Financial assets held at fair value
The Charity's subsidiaries are as follows:
Mosdor Estate Agencies Limited (Company No. 00743552)
Towhaven Limited (Company No. 01549325)
Alonaville Limited (Company No. 01223395)
The trustees have valued the shares held in group undertakings at a figure of £621,002 (2019: 781,187) .
The trustees have taken all relevant factors into account in coming to a fair valuation of the investments held by the charity at the year end.
13.
Debtors
2020 |
2019 |
|
£ |
£ |
|
Amounts owed by group undertakings |
|
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Loans to other charities |
1,692,825 |
3,395,898
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Other debtors |
– |
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------------ |
------------ |
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Amounts owed by group undertakings wholly relate to payments due under gift aid payable and paid within nine months of the year end.
14.
Creditors:
amounts falling due within one year
2020 |
2019 |
|
£ |
£ |
|
Amounts owed to group undertakings |
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Amounts owing to related undertakings |
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Other creditors |
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------------ |
------------ |
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------------ |
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15.
Analysis of charitable funds
Unrestricted funds
At 1 April 2019 |
Income |
Expenditure |
At 31 March 2020 |
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£ |
£ |
£ |
£ |
|
General funds |
209,385 |
7,450,867 |
(6,081,549) |
1,578,703 |
--------- |
------------ |
------------ |
------------ |
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At 1 April 2018 |
Income |
Expenditure |
At 31 March 2019 |
|
£ |
£ |
£ |
£ |
|
General funds |
824,208 |
2,049,911 |
(2,664,734) |
209,385 |
--------- |
------------ |
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16.
Analysis of net assets between funds
Unrestricted Funds |
Total Funds 2020 |
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£ |
£ |
||
Tangible fixed assets |
6,241 |
6,241 |
|
Current assets |
2,927,400 |
2,927,400 |
|
Creditors less than 1 year |
(1,354,938) |
(1,354,938) |
|
------------ |
------------ |
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Net assets |
1,578,703 |
1,578,703 |
|
------------ |
------------ |
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Unrestricted Funds |
Total Funds 2019 |
||
£ |
£ |
||
Tangible fixed assets |
6,241 |
6,241 |
|
Current assets |
3,786,031 |
3,786,031 |
|
Creditors less than 1 year |
(3,582,887) |
(3,582,887) |
|
------------ |
------------ |
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Net assets |
209,385 |
209,385 |
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------------ |
------------ |
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17.
Analysis of changes in net debt
At 1 Apr 2019 |
Cash flows |
At 31 Mar 2020 |
|
£ |
£ |
£ |
|
Cash at bank and in hand |
|
(204,982) |
|
Debt due within one year |
(23,831) |
15,157 |
(8,674) |
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(
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