Rookwood Foundation Limited - Charities report - 21.2

REGISTERED COMPANY NUMBER: 05672258 (England and Wales)

REGISTERED CHARITY NUMBER: 1116094

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2021

FOR

ROOKWOOD FOUNDATION LIMITED

Page

Report of the Trustees

1

to

2

Statement of Trustees' Responsibilities

3

Report of the Independent Auditors

4

to

6

Statement of Financial Activities

7

Statement of Financial Position

8

Statement of Cash Flows

9

Notes to the Statement of Cash Flows

10

Notes to the Financial Statements

11

to

18

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 28 February 2021. 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objectives of the company are:

-The advancement of religion in accordance with the Orthodox Jewish Faith

-The relief of poverty, and

-Any other activities recognised by English Law as charitable.

There have been no changes in the objectives since the last annual report.

Public benefit

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

The charity was set up to support the activities of religious Jewish organisations especially in the field of education. The trustees identify institutions and organisations which meet its criteria and regularly support a number of these institutions and organisations.

The charity is also supportive of organisations which are solely committed to the relief of poverty. Such organisations assist needy Jewish families financially and also through the distribution of basic necessities.

The income of the charity is derived from investments. The trustees continued their support of those organisations deemed to promote the objects of this charity.

Grantmaking

The charity accepts applications for grants from representatives of various charities, which are reviewed by the trustees on a regular basis.

STRATEGIC REPORT

Achievement and performance

Charitable activities

During the year under review the charity continued its activities and maintained its support for the advancement of the Orthodox Jewish faith and relief of poverty. The charity's total incoming resources during the year were £921,9561 (2020:£1,315,731) and donations made totalled £55,248 (2020: £58,139).

Investment performance

The rental income raised from investment property was £813,664 (2020: £707,799) and the net income derived was £78,054 (2020: £521,979).

Financial review

Reserves Policy

The reserves policy is to ensure that there is a sufficient stream of income to meet the ongoing calls made on the charity.

Going concern

The trustees are confident that the charity will be able to continue operating for the foreseeable future.

Future plans

The charity continue to derive income from investment property.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, its memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

It is not the intention of the trustees of the charity 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 a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05672258 (England and Wales)

Registered Charity number

1116094

Registered office

28 Craven Walk

Stamford Hill

London

N16 6BY

Trustees

M Brinner

B Blum

S Aksler

Company Secretary

M Brinner

Auditors

Malcolm Venitt

ICAEW

Venitt and Greaves

Statutory Auditors

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

AUDITORS

The auditors, Venitt and Greaves, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 30 November 2021 and signed on the board's behalf by:

M Brinner - Trustee

The trustees (who are also the directors of Rookwood Foundation 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

Opinion

We have audited the financial statements of Rookwood Foundation Limited (the 'charitable company') for the year ended 28 February 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 28 February 2021 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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

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

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

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

Other information

The 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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.

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.

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

**ERROR - CLIENT SCREEN - DETECTING IRREGULARITIES - TEXT SHOULD BE ENTERED HERE

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.

M. A. Venitt (Senior Statutory Auditor)

for and on behalf of Venitt and Greaves

Statutory Auditors

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

30 November 2021

28.2.21

29.2.20

Unrestricted

Total

funds

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

108,292

607,932

Investment income

3

813,664

707,799

Total

921,956

1,315,731

EXPENDITURE ON

Raising funds

4

606,108

575,749

Charitable activities

5

Charitable

56,921

71,441

Other

184,713

146,562

Total

847,742

793,752

NET INCOME

74,214

521,979

RECONCILIATION OF FUNDS

Total funds brought forward

2,981,720

2,459,741

TOTAL FUNDS CARRIED FORWARD

3,055,934

2,981,720

28.2.21

29.2.20

Unrestricted

Total

funds

funds

Notes

£

£

FIXED ASSETS

Tangible assets

12

1,642,827

814,613

Investment property

13

9,582,464

9,582,464

11,225,291

10,397,077

CURRENT ASSETS

Debtors

14

496,867

495,706

Cash at bank

403,325

1,313,284

900,192

1,808,990

CREDITORS

Amounts falling due within one year

15

(814,549

)

(806,847

)

NET CURRENT ASSETS

85,643

1,002,143

TOTAL ASSETS LESS CURRENT LIABILITIES

11,310,934

11,399,220

CREDITORS

Amounts falling due after more than one year

16

(8,255,000

)

(8,417,500

)

NET ASSETS

3,055,934

2,981,720

FUNDS

18

Unrestricted funds:

General fund

1,932,205

1,857,991

Revalation reserve

1,123,729

1,123,729

3,055,934

2,981,720

TOTAL FUNDS

3,055,934

2,981,720

The financial statements were approved by the Board of Trustees and authorised for issue on 30 November 2021 and were signed on its behalf by:

M Brinner - Trustee

B Blum - Trustee

Cash flows from operating activities

Cash generated from operations

1

579,783

1,671,664

Interest paid

(209,112

)

(299,150

)

Net cash provided by operating activities

370,671

1,372,514

Cash flows from investing activities

Purchase of tangible fixed assets

(1,118,130

)

(600,339

)

Purchase of investment property

-

(4,582,464

)

Net cash used in investing activities

(1,118,130

)

(5,182,803

)

Cash flows from financing activities

New loans in year

-

8,500,000

Loan repayments in year

(162,500

)

(3,736,898

)

Net cash (used in)/provided by financing activities

(162,500

)

4,763,102

Change in cash and cash equivalents in the reporting period

(909,959

)

952,813

Cash and cash equivalents at the beginning of the reporting period

1,313,284

360,471

Cash and cash equivalents at the end of the reporting period

403,325

1,313,284

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

28.2.21

29.2.20

£

£

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

74,214

521,979

Adjustments for:

Depreciation charges

289,916

143,764

Interest paid

209,112

299,150

(Increase)/decrease in debtors

(1,161

)

13,944

Increase in creditors

7,702

692,827

Net cash provided by operations

579,783

1,671,664

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.3.20

Cash flow

At 28.2.21

£

£

£

Net cash

Cash at bank and in hand

1,313,284

(909,959

)

403,325

1,313,284

(909,959

)

403,325

Debt

Debts falling due after 1 year

(8,417,500

)

162,500

(8,255,000

)

(8,417,500

)

162,500

(8,255,000

)

Total

(7,104,216

)

(747,459

)

(7,851,675

)

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.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statement 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.

Transition to financial reporting standards 102

The company has adopted FRS 102 Section 1A for the first time in the preparation of these accounts. Accordingly the date of transition to FRS 102 was 1 March 2015 (beginning of the accounting period of comparative financial year).

There are no material differences in determining the company's profit and loss under FRS 102 Section 1A and the previous framework the company adopted (the Financial Reporting Standard for Smaller Entities (effective January 2015)).

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable activities

Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Governance cost comprise all costs involving the public accountability of the charity and its compliance with regulation of good practice. The cost include costs related to statutory audit and direct governing cost.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2.	DONATIONS AND LEGACIES

28.2.21

29.2.20

£

£

Donations

108,292

607,932

3.	INVESTMENT INCOME

28.2.21

29.2.20

£

£

Rents received

813,664

707,799

4.	RAISING FUNDS

Investment management costs

28.2.21

29.2.20

£

£

Property repairs

41,003

88,634

Insurance

14,804

12,150

Light and heat

19,550

26,620

Rates and water

10,591

2,565

Letting fees

21,132

2,866

Depreciation

289,916

143,764

Interest payable and similar charges

209,112

299,150

606,108

575,749

5.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

(see note

costs (see

6)

note 7)

Totals

£

£

£

Charitable

55,248

1,673

56,921

6.	GRANTS PAYABLE

28.2.21

29.2.20

£

£

Charitable

55,248

58,139

7.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

£

£

£

£

Other resources expended

30

-

184,683

184,713

Charitable

1,290

383

-

1,673

1,320

383

184,683

186,386

8.	NET INCOME/(EXPENDITURE)

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

28.2.21

29.2.20

£

£

Depreciation - owned assets

289,916

143,764

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 28 February 2021 nor for the year ended 29 February 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 28 February 2021 nor for the year ended 29 February 2020.

10.	STAFF COSTS

28.2.21

29.2.20

£

£

Wages and salaries

13,830

10,207

13,830

10,207

The average monthly number of employees during the year was as follows:

28.2.21

29.2.20

Staff

-

1

No employees received emoluments in excess of £60,000.

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

funds

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

607,932

Investment income

707,799

Total

1,315,731

EXPENDITURE ON

Raising funds

575,749

Charitable activities

Charitable

71,441

Other

146,562

Total

793,752

NET INCOME

521,979

RECONCILIATION OF FUNDS

Total funds brought forward

2,459,741

TOTAL FUNDS CARRIED FORWARD

2,981,720

12.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 March 2020

1,011,527

152,558

612

1,164,697

Additions

1,118,130

-

-

1,118,130

At 28 February 2021

2,129,657

152,558

612

2,282,827

DEPRECIATION

At 1 March 2020

249,237

100,262

585

350,084

Charge for year

282,063

7,844

9

289,916

At 28 February 2021

531,300

108,106

594

640,000

NET BOOK VALUE

At 28 February 2021

1,598,357

44,452

18

1,642,827

At 29 February 2020

762,290

52,296

27

814,613

13.	INVESTMENT PROPERTY

£

FAIR VALUE

At 1 March 2020

and 28 February 2021

9,582,464

NET BOOK VALUE

At 28 February 2021

9,582,464

At 29 February 2020

9,582,464

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.21

29.2.20

£

£

Trade debtors

76,628

76,628

Other debtors

420,038

419,078

VAT

201

-

496,867

495,706

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.21

29.2.20

£

£

Trade creditors

17,538

7,302

Social security and other taxes

1,178

818

Other creditors

736,900

740,634

Sundry creditors

12,281

12,281

Accrued expenses

46,652

45,812

814,549

806,847

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

28.2.21

29.2.20

£

£

Bank loans (see note 17)

8,255,000

8,417,500

17.

LOANS

An analysis of the maturity of loans is given below:

28.2.21

29.2.20

£

£

Amounts falling due between two and five years:

Bank loans - 2-5 years

8,255,000

8,417,500

18.	MOVEMENT IN FUNDS

Net

movement

At

At 1.3.20

in funds

28.2.21

£

£

£

Unrestricted funds

General fund

1,857,991

74,214

1,932,205

Revalation reserve

1,123,729

-

1,123,729

2,981,720

74,214

3,055,934

TOTAL FUNDS

2,981,720

74,214

3,055,934

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

921,956

(847,742

)

74,214

TOTAL FUNDS

921,956

(847,742

)

74,214