REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Audited Financial Statements for the Year Ended 31 December 2022 |
for |
NES FOUNDATION LTD |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Audited Financial Statements for the Year Ended 31 December 2022 |
for |
NES FOUNDATION LTD |
NES FOUNDATION LTD |
Contents of the Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Report of the Trustees | 1 | to | 2 |
Report of the Independent Auditors | 3 | to | 5 |
Statement of Financial Activities | 6 |
Balance Sheet | 7 |
Cash Flow Statement | 8 |
Notes to the Cash Flow Statement | 9 |
Notes to the Financial Statements | 10 | to | 17 |
NES FOUNDATION LTD (REGISTERED NUMBER: 05622994) |
Report of the Trustees |
for the Year Ended 31 December 2022 |
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 December 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The main objects of the charity are the relief of poverty, furtherance of the Jewish religious faith and education. This has been achieved by granting funds to UK Charities, who fulfill the above criteria . |
Public benefit |
In setting the charity's objectives the Trustees have given careful consideration to the Charity Commission's guidance on public benefit. |
STRATEGIC REPORT |
Reserves policy |
The present level of reserves is adequate to support the continuation of our activities and the trustees consider the financial position of the Charity to be satisfactory. |
The statement of Financial Activities shows net surplus for the year of £106,512 (2021: £51,777 net deficit) and our reserves stand at £7,334,516 (2021: £7,228,004) in total. |
Future plans |
There are no significant future developments to report. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. |
Risk management |
The Trustees have examined the main investment risks to which the Charity is exposed to and is satisfied that systems are in place to mitigate such risks. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Senior Statutory Auditor |
NES FOUNDATION LTD (REGISTERED NUMBER: 05622994) |
Report of the Trustees |
for the Year Ended 31 December 2022 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Auditors |
Chartered Accountants |
Registered Auditors |
5 North End Road |
London |
NW11 7RJ |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Nes Foundation Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | 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. |
AUDITORS |
The auditors, Martin + Heller, 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 |
Report of the Independent Auditors to the Members of |
Nes Foundation Ltd |
Opinion |
We have audited the financial statements of Nes Foundation Ltd (the 'charitable company') for the year ended 31 December 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31 December 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; 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. |
Report of the Independent Auditors to the Members of |
Nes Foundation Ltd |
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. |
Our audit will determine materiality and assess the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. |
Our audit procedures are designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one result from error, as fraud may involve deliberate concealment by, for example forgery, misrepresentations or through collusion. |
We did not identify any key audit matters relating to irregularities, including fraud. |
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. |
Report of the Independent Auditors to the Members of |
Nes Foundation Ltd |
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. |
for and on behalf of |
Chartered Accountants |
Registered Auditors |
London |
NW11 7RJ |
NES FOUNDATION LTD |
Statement of Financial Activities |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Investment income | 3 |
Total |
EXPENDITURE ON |
Raising funds | 4 |
Charitable activities | 5 |
Support costs |
Total |
NET INCOME/(EXPENDITURE) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 7,228,004 |
NES FOUNDATION LTD (REGISTERED NUMBER: 05622994) |
Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
NET ASSETS |
FUNDS | 18 |
Unrestricted funds | 7,228,004 |
TOTAL FUNDS | 7,228,004 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
NES FOUNDATION LTD |
Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 544,324 | 39,105 |
Interest paid | (85,194 | ) | (61,866 | ) |
Net cash provided by/(used in) operating activities | 459,130 | (22,761 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,065 | ) | (1,792 | ) |
Purchase of investment property | (383,700 | ) | - |
Net cash used in investing activities | (384,765 | ) | (1,792 | ) |
Cash flows from financing activities |
Loan repayments in year | 13,336 | (7,820 | ) |
Net cash provided by/(used in) financing activities | 13,336 | (7,820 | ) |
Change in cash and cash equivalents in the reporting period |
87,701 |
(32,373 |
) |
Cash and cash equivalents at the beginning of the reporting period |
32,484 |
64,857 |
Cash and cash equivalents at the end of the reporting period |
120,185 |
32,484 |
NES FOUNDATION LTD |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES |
31.12.22 | 31.12.21 |
£ | £ |
Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) |
106,512 |
(51,777 |
) |
Adjustments for: |
Depreciation charges | 3,154 | 3,850 |
Interest paid | 85,194 | 61,866 |
Decrease in debtors | 1,371 | 167,946 |
Increase/(decrease) in creditors | 348,093 | (142,780 | ) |
Net cash provided by operations | 544,324 | 39,105 |
2. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 32,484 | 87,701 | 120,185 |
32,484 | 87,701 | 120,185 |
Debt |
Debts falling due within 1 year | (44,487 | ) | 9,646 | (34,841 | ) |
Debts falling due after 1 year | (1,980,432 | ) | (22,982 | ) | (2,003,414 | ) |
(2,024,919 | ) | (13,336 | ) | (2,038,255 | ) |
Total | (1,992,435 | ) | 74,365 | (1,918,070 | ) |
NES FOUNDATION LTD |
Notes to the Financial Statements |
for the Year Ended 31 December 2022 |
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, with the exception of investments which are included at market value. |
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. |
Allocation and apportionment of costs |
The trustees have allocated all the support cost to the charities sole activity, namely 'Grants to Institutions'. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Investment property fixtures & fittings | - |
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. |
2. | DONATIONS AND LEGACIES |
31.12.22 | 31.12.21 |
£ | £ |
Donations |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
3. | INVESTMENT INCOME |
31.12.22 | 31.12.21 |
£ | £ |
Rents received |
Other Income | - | 19,539 |
4. | RAISING FUNDS |
Investment management costs |
31.12.22 | 31.12.21 |
£ | £ |
Portfolio management | 42,186 | 45,522 |
Rates & water | 2,610 | 547 |
Legal & professional fees | 4,280 | 1,158 |
Light & heat | 2,152 | 1,993 |
Insurance | 19,621 | 17,041 |
Property repairs |
Ground rent |
Depreciation | 3,154 | 3,850 |
Interest payable and similar charges | 85,194 | 61,866 |
222,994 | 185,790 |
5. | CHARITABLE ACTIVITIES COSTS |
Grant |
funding of |
activities |
(see note |
6) |
£ |
Grants to Institutions | 446,412 |
6. | GRANTS PAYABLE |
31.12.22 | 31.12.21 |
£ | £ |
Grants to Institutions | 446,412 | 438,744 |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
6. | GRANTS PAYABLE - continued |
The total grants paid to institutions during the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Achisomoch | 18,790 | 15,000 |
Ben Amram Charitable Trust | - | 10,000 |
British Friends of Nadvorne | 10,000 | - |
Care All Limited | - | 35,000 |
Chasdei Sorele | - | 11,000 |
Friends of Yeshivas Daas Sholem Shotz | - | 15,000 |
Ichud Mosdos Gur Limited | 54,000 | 30,000 |
Keren Chochmas Shlomo Trust | 110,000 | 49,000 |
Keren Hatzolas Doros Alei Siach | - | 18,000 |
Kollel Viznitz London | 11,000 | 10,000 |
Live and Learn | - | 12,000 |
Mifal Hachesed Vehatzdoko | 18,000 | 10,000 |
Mosdot Ohavei Torah | 41,545 | - |
Sheves Achim Reception Trust | - | 101,100 |
Shir Chesed Beis Yisroel | 97,110 | 10,000 |
Start Upright | - | 21,000 |
Yeshivas Lev Simcha Limited | 9,802 | - |
Woodstock Sinclair Trust | - | 10,000 |
Yeshivas Torah Ohr | - | 22,000 |
Zlotchiv | 11,000 | - |
Donations less than £10,000 | 65,165 | 59,644 |
7. | SUPPORT COSTS |
Governance |
costs |
£ |
Other resources expended | 10,584 |
8. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
£ | £ |
Auditors' remuneration | 2,100 | 2,100 |
Depreciation - owned assets |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
9. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021. |
10. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Trustees |
11. | TANGIBLE FIXED ASSETS |
Investment |
property |
fixtures |
& fittings |
£ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
MARKET VALUE |
At 1 January 2022 and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 | 100 |
At 31 December 2021 | 100 |
There were no investment assets outside the UK. |
The investment represent share capital in Merryhall Limited, which was dormant throughout the year. |
13. | INVESTMENT PROPERTY |
£ |
FAIR VALUE |
At 1 January 2022 |
Additions |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Fair value at 31 December 2022 is represented by: |
£ |
Valuation in 2016 | 274,966 |
Cost | 9,324,657 |
9,599,623 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Other debtors |
Prepayments and accrued income |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Bank loans and overdrafts (see note 17) |
VAT | 666 | 666 |
Other creditors |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.22 | 31.12.21 |
£ | £ |
Amounts falling due within one year on demand: |
Bank loans |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments: |
Bank loans more 5 yrs non-inst | 2,003,414 | 1,980,432 |
18. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.1.22 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 7,228,004 | 106,512 | 7,334,516 |
TOTAL FUNDS | 106,512 | 7,334,516 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 786,502 | (679,990 | ) | 106,512 |
TOTAL FUNDS | ( |
) | 106,512 |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
18. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.1.21 | in funds | 31.12.21 |
£ | £ | £ |
Unrestricted funds |
General fund | 7,279,781 | (51,777 | ) | 7,228,004 |
TOTAL FUNDS | 7,279,781 | (51,777 | ) | 7,228,004 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 581,608 | (633,385 | ) | (51,777 | ) |
TOTAL FUNDS | 581,608 | (633,385 | ) | (51,777 | ) |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1.1.21 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 7,279,781 | 54,735 | 7,334,516 |
TOTAL FUNDS | 7,279,781 | 54,735 | 7,334,516 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 1,368,110 | (1,313,375 | ) | 54,735 |
TOTAL FUNDS | 1,368,110 | (1,313,375 | ) | 54,735 |
NES FOUNDATION LTD |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
19. | RELATED PARTY DISCLOSURES |
£334,698 (2021: £105,590) was donated to the charity from companies, of which the Trustees are Directors. |