Friends of Wiznitz Limited - Charities report - 22.2

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 2022

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

3

Report of the Independent Auditors

4

to

6

Statement of Financial Activities

7

Balance Sheet

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

18

TRUSTEES

S Feldman

H Feldman (resigned 23.3.22)

E Gottesfeld

B Feldman (appointed 10.4.22)

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 2022. 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. There was a 24% decrease in donations over the previous year and the trustees reduced grantmaking substantially. 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.

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 £2,974,462 (2021 - £2,678,057).

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) 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;

-	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 24 January 2023 and signed on its behalf by:

E Gottesfeld - Trustee

Opinion

We have audited the financial statements of Friends of Wiznitz Limited (the 'charitable company') for the year ended 31 March 2022 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), 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 31 March 2022 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; 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.

In performing an audit, we exercise professional judgment and maintain professional scepticism throughout the audit.

We also identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. The risk of not detecting a material misstatement resulting from fraud is higher than one for one resulting from error, as fraud may involve collusion, forgery, intentional omissions misrepresentation or override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of charity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about charity's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

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

24 January 2023

2022

2021

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2,859,528

10,000

2,869,528

4,097,543

Other trading activities

3

15,000

-

15,000

25,000

Investment income

4

79,500

-

79,500

94,074

Total

2,954,028

10,000

2,964,028

4,216,617

EXPENDITURE ON

Raising funds

5

37,150

-

37,150

32,346

Charitable activities

6

Grantmaking

2,492,670

-

2,492,670

6,934,221

School expenditure

77,666

-

77,666

46,736

Visit of Grand Rabbi

50,432

-

50,432

-

Support

9,705

-

9,705

8,574

Total

2,667,623

-

2,667,623

7,021,877

NET INCOME/(EXPENDITURE)

286,405

10,000

296,405

(2,805,260

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,678,057

-

2,678,057

5,483,317

TOTAL FUNDS CARRIED FORWARD

2,964,462

10,000

2,974,462

2,678,057

2022

2021

Notes

£

£

FIXED ASSETS

Tangible assets

12

3,850,000

3,850,000

Investment property

13

2,369,684

2,369,684

6,219,684

6,219,684

CURRENT ASSETS

Debtors

14

37,000

-

Cash at bank

509,538

256,653

546,538

256,653

CREDITORS

Amounts falling due within one year

15

(258,427

)

(248,280

)

NET CURRENT ASSETS

288,111

8,373

TOTAL ASSETS LESS CURRENT LIABILITIES

6,507,795

6,228,057

CREDITORS

Amounts falling due after more than one year

16

(3,533,333

)

(3,550,000

)

NET ASSETS

2,974,462

2,678,057

FUNDS

19

Unrestricted funds:

General fund

2,964,462

2,678,057

Restricted funds:

Restricted

10,000

-

TOTAL FUNDS

2,974,462

2,678,057

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 24 January 2023 and were signed on its behalf by:

E Gottesfeld - Trustee

Cash flows from operating activities

Cash generated from operations

1

260,333

(2,942,780

)

Interest paid

(781

)

-

Net cash provided by/(used in) operating activities

259,552

(2,942,780

)

Cash flows from financing activities

New loans in year

-

2,040,000

Loan repayments in year

(6,667

)

-

Net cash (used in)/provided by financing activities

(6,667

)

2,040,000

Change in cash and cash equivalents in the reporting period

252,885

(902,780

)

Cash and cash equivalents at the beginning of the reporting period

256,653

1,159,433

Cash and cash equivalents at the end of the reporting period

509,538

256,653

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

2022

2021

£

£

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

296,405

(2,805,260

)

Adjustments for:

Interest paid

781

-

(Increase)/decrease in debtors

(37,000

)

62,000

Increase/(decrease) in creditors

147

(199,520

)

Net cash provided by/(used in) operations

260,333

(2,942,780

)

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank

256,653

252,885

509,538

256,653

252,885

509,538

Debt

Debts falling due within 1 year

-

(10,000

)

(10,000

)

Debts falling due after 1 year

(3,550,000

)

16,667

(3,533,333

)

(3,550,000

)

6,667

(3,543,333

)

Total

(3,293,347

)

259,552

(3,033,795

)

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.

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.

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

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Donations

2,859,528

-

2,859,528

4,097,543

Grants

-

10,000

10,000

-

2,859,528

10,000

2,869,528

4,097,543

Grants received, included in the above, are as follows:

2022

2021

£

£

Other grants

10,000

-

3.	OTHER TRADING ACTIVITIES

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Rents

15,000

-

15,000

25,000

4.	INVESTMENT INCOME

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Property income

79,500

-

79,500

94,074

5.	RAISING FUNDS

Raising donations and legacies

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Postage and stationery

1,503

-

1,503

4,114

Function

-

-

-

4,651

Advertising

1,065

-

1,065

-

Campaign

7,583

-

7,583

5,027

10,151

-

10,151

13,792

Investment management costs

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Insurance

1,734

-

1,734

900

Property repairs

25,265

-

25,265

17,654

26,999

-

26,999

18,554

Aggregate amounts

37,150

-

37,150

32,346

6.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

Direct

(see note

costs (see

Costs

7)

note 8)

Totals

£

£

£

£

Grantmaking

262

2,491,460

948

2,492,670

School expenditure

77,666

-

-

77,666

Visit of Grand Rabbi

50,432

-

-

50,432

Support

-

-

9,705

9,705

128,360

2,491,460

10,653

2,630,473

7.	GRANTS PAYABLE

2022

2021

£

£

Grantmaking

2,491,460

6,931,890

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

2022

2021

£

£

Religious education

1,983,387

5,926,704

Relief of poverty

286,450

830,100

Advancement of religion

130,343

140,086

Social welfare

65,300

35,000

2,465,480

6,931,890

Mosdos Viznitz

1,651,000

Lehachzikom UK

164,000

Vishnitz Girls School Ltd

90,000

Kollel Viznitz London

66,000

CMZ Ltd

65,000

Live and Learn

58,000

Mosdos Imrei Chaim

57,000

Ahavat Israel Synagogue

53,843

Others under £50,000

260,637

2,465,480

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

2022

2021

£

£

Medical

25,980

-

8.	SUPPORT COSTS

Governance

Finance

costs

Totals

£

£

£

Grantmaking

948

-

948

Support

-

9,705

9,705

948

9,705

10,653

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

Finance

2022

2021

Total

Grantmaking

activities

£

£

Bank charges

167

2,331

Bank loan interest

781

-

948

2,331

Governance costs

2022

2021

Total

Support

activities

£

£

Auditors' remuneration

4,200

3,840

Auditors' remuneration for non audit work

4,680

4,440

General expenses

825

294

9,705

8,574

9.	NET INCOME/(EXPENDITURE)

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

2022

2021

£

£

Auditors' remuneration

4,200

3,840

Auditors' remuneration for non audit work

4,680

4,440

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.