Caseware UK (AP4) 2022.0.179 2022.0.179 Caseware UK (AP4) 2022.0.179 2022.0.179 2022-08-31103831308860263156417171116010102573226114474692249falsenot blank2021-09-01482022-08-31 3391872 2021-09-01 2022-08-31 3391872 2019-08-31 2021-08-31 3391872 2022-08-31 3391872 2021-08-31 3391872 2021-09-01 3391872 2019-08-31 3391872 c:RegisteredOffice 2021-09-01 2022-08-31 3391872 d:Buildings d:LongLeaseholdAssets 2021-09-01 2022-08-31 3391872 d:Buildings d:LongLeaseholdAssets 2022-08-31 3391872 d:Buildings d:LongLeaseholdAssets 2021-08-31 3391872 d:PlantMachinery 2021-09-01 2022-08-31 3391872 d:PlantMachinery 2022-08-31 3391872 d:PlantMachinery 2021-08-31 3391872 d:MotorVehicles 2021-09-01 2022-08-31 3391872 d:MotorVehicles 2022-08-31 3391872 d:MotorVehicles 2021-08-31 3391872 d:FurnitureFittings 2021-09-01 2022-08-31 3391872 d:FurnitureFittings 2022-08-31 3391872 d:FurnitureFittings 2021-08-31 3391872 d:CurrentFinancialInstruments 2022-08-31 3391872 d:CurrentFinancialInstruments 2021-08-31 3391872 d:Non-currentFinancialInstruments 2022-08-31 3391872 d:Non-currentFinancialInstruments 2021-08-31 3391872 c:FRS102 2021-09-01 2022-08-31 3391872 c:Audited 2021-09-01 2022-08-31 3391872 c:PrivateLimitedCompanyLtd 2021-09-01 2022-08-31 3391872 b:Trustee1 2021-09-01 2022-08-31 3391872 b:Trustee2 2021-09-01 2022-08-31 3391872 b:Trustee3 2021-09-01 2022-08-31 3391872 b:Trustee4 2021-09-01 2022-08-31 3391872 b:Trustee5 2021-09-01 2022-08-31 3391872 b:RestrictedIncomeFunds 2021-09-01 2022-08-31 3391872 b:RestrictedIncomeFunds 2019-08-31 2021-08-31 3391872 b:TotalEndowmentFunds 2021-09-01 2022-08-31 3391872 b:TotalEndowmentFunds 2019-08-31 2021-08-31 3391872 b:RestrictedIncomeFunds 2022-08-31 3391872 b:RestrictedIncomeFunds 2021-08-31 3391872 b:TotalEndowmentFunds 2022-08-31 3391872 b:TotalEndowmentFunds 2021-08-31 3391872 b:Activity1 2021-09-01 2022-08-31 3391872 b:Activity1 2019-08-31 2021-08-31 3391872 b:Activity1 b:TotalEndowmentFunds 2021-09-01 2022-08-31 3391872 b:Activity1 b:TotalEndowmentFunds 2019-08-31 2021-08-31 3391872 b:TotalUnrestrictedFunds 2022-08-31 3391872 b:TotalUnrestrictedFunds 2021-08-31 3391872 b:TotalRestrictedIncomeFunds 2022-08-31 3391872 b:TotalRestrictedIncomeFunds 2021-08-31 3391872 c:FullAccounts 2021-09-01 2022-08-31 iso4217:GBP xbrli:pure

Registered number: 3391872
Charity number: 1063815










KEREM SCHOOLS
(A company limited by guarantee)









TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 

CONTENTS



Page
Reference and administrative details of the Charity, its Trustees and advisers
 
 
1
Trustees' report
 
 
2 - 6
Independent auditors' report on the financial statements
 
 
7 - 10
Statement of financial activities
 
 
11
Balance sheet
 
 
12 - 13
Statement of cash flows
 
 
14
Notes to the financial statements
 
 
15 - 31

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 AUGUST 2022



Trustees
Julian Taylor Esq
Asher Miller Esq
Daniel Lichtenstein Esq (Resigned 29 March 2023)
Samantha Leek (Resigned 17 October 2023)
Sonia Abrahams (appointed 17 October 2023)

Company registered number
3391872

Charity registered number
1063815

Registered office
Kerem School
Norrice Lea
London
N2 0RE

Independent auditors
BKL Audit LLP
Chartered Accountants
35 Ballards Lane
London
N3 1XW

Bankers
NatWest Bank plc
1175 Finchley Road
London
NW11 0BE

Santander
Bridle Road
Bootle
L30 4GB

Page 1

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 
  
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2021 to 31 August 2022.
The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).  
 

Since the Charitable Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
 

Objectives and activities
 

a. Policies and objectives
 

The Charity was founded in June 1997 to take over the operation of a kindergarten (Kerem House) and a
primary school known as "Kerem Schools", an orthodox Jewish day school. It commenced its operation on 1 September 1997 when it acquired the assets and liabilities of the Trust which had previously operated the Kerem Schools.
The principal activity of the charity is providing education at primary level.
The promotion and development of a balanced modern orthodox education for Jewish children is a cornerstone of the charity.
 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.
 

b. Strategies for achieving objectives
 

The charity ensures that its resources are focused towards the recruitment and retention of high quality staff ensuring that the ethos of the school is continued and that the children receive a very good education within a modern orthodox background.
 

c. Activities undertaken to achieve objectives
 

The promotion and development of a balanced orthodox education for Jewish children is the keystone of the charity. This is the main activity which is undertaken to further the Charity's purposes for the public benefit. benefit.
 

d. Main activities undertaken to further the Charity's purposes for the public benefit
 

The charity operates the school known as Kerem school for the benefit of many children.
 

Achievements and performance
 

Page 2

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 
Achievements and performance (continued)

a. Main achievements of the Charity
 

The school continues to operate well with mostly full classes and expenses well controlled.  The school has turned a corner and has returned to a surplus position due to careful management by the staff and trustees.
 

b. Key performance indicators
 

The key performance indicators used by the charity are:
Attendance at the school.
Results of regulatory inspections.
Income in the year relative to expenditure.
Adequacy of its reserves.
 

c. Review of activities
 

The charity continued in its pursuit in the provision of an exceptional orthodox education, and spent £2,031,939 directly towards that end (2021: £1,947,228). Of this amount, £1,633,091 related directly to staff and teaching expenses (2021: £1,648,839). In total, the charity invested £2,047,763 back into the school (2021 : £1,960,068) which represented 91% of its income in the year. Furthermore, the charity was able to increase its net reserves in the year by £199,851 (2021: decrease of £73,623). The charity was still able to run the school with increased support.
 

d. Factors relevant to achieve objectives
 

The main factors relevant to the Charity's ability to achieve its objectives are as follows:

The adequacy of its financial reserves.
The ability of the school to recruit and retain competent and experienced staff members.
The ability of the school to continue to receive exceptional feedback from its regulator.
 

e. Fundraising activities and income generation
 

The main income generation of the school is via fees, during the year there was also a campaign to raise funds for the refurbishment of the Early Years Unit playground – further details of which can be found in note 17).
 

f. Investment policy and performance
 

Any surplus funds at any time are held in an interest bearing deposit account in order to generate funds to help fund charitable activities and any future projects.
 

Financial review
 

a. Going concern
 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
 

Page 3

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 
Financial review (continued)

b. Reserves policy

The reserves policy of the school is driven by the need to ensure the ability to continue providing a modern Jewish education to the pupils. Reports following recent regulatory inspections have been excellent. The trustees continue to be fortified in the knowledge that Kerem Schools offer high quality education in a stimulating modem environment.
 

c. Principal risks and uncertainties
 

The key risks identified by management are as follows:
Reputation – The school’s success is built on its reputation for the education and well being of pupils. Risk is managed through various policies including safeguarding, staff recruitment and health and safety. The management of the school are continually investigating additional ways to teach and implementing them as soon as they are available.
Funding – The ability for the school to continue is reliant on pupil fees and the ability of the school to pay bills as they fall due. The risk is managed by controls put in place by the management and trustees and a  modern orthodox ethos in the school.


d. Financial risk management objectives and policies
 

The trustees are responsible for the management of risks faced by the school. The governors routinely
consider any perceived risks faced by the school and are assisted in this by the head and other key members
of the schools senior management team. Key controls used to identify and control financial risks during the year
include:
Formal agenda items for governors committee meetings.
Established organisational structure and lines of reporting.
Maintaining appropriate insurance.
Regular review of budgets against actual performance.
Comprehensive strategic planning, budgeting and management accounting.
 

e. Principal funding
 

The principal source of funding is fees for the school year.
 

Structure, governance and management
 

a. Constitution
 

The charity is a company limited by guarantee, Charity Registration number 1063815. It was established on the 6th August 1997.
 

b. Methods of appointment or election of Trustees
 

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
 

Page 4

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 
Structure, governance and management (continued)

c. Organisational structure and decision-making policies
 

The school was run during the year by an excellent team of teachers led by Naomi Simon. The Governors determine the general policy of the School. The day to day running of the School is delegated to the Head, supported by senior staff.
The Charity and its school are administered by its board of trustees and various sub-committees including the board of governors. The major risks to which the charity is exposed have been reviewed by the trustees and systems are in place to minimise these risks. 
 

d. Policies adopted for the induction and training of Trustees
 

All new trustees are subject to a recruitment and induction process and are selected with a view to ensuring that the board has an appropriate balance of experience relevant to Kerem Schools strategic and operational requirements. 
 

e. Trustees
 

The following were the trustees who were in office during th year:
Samantha Leek (resigned 17 October 2023).
Dan Lichtenstein (resigned 29 March 2023).
Julian Taylor.
Asher Miller.
 

f. Related party relationships
 

The Charity's related party relationships are as follows:

No donations were received from the trustees during the year.
Fees received from the children of trustees who attend the school were as follows:
Samantha Leek - £12,443.
 

g. Financial risk management
 

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. 
 

h. Trustees' indemnities
 

No indemnities have been given during the year by trustees.
 
 
Plans for future periods
 

The charity plans to the run the school at its current pupil levels. Once all the funding has been raised there will also be a refurbishment of the Early Years Playground.
 

Page 5

 
KEREM SCHOOLS
 
(A company limited by guarantee)
 
Funds held as custodian
 

There are no funds held as custodian trustee.
 

Statement of Trustees' responsibilities
 

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP (FRS 102);
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards (FRS 102) 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 Charity will continue in business.


The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


Disclosure of information to auditors
 

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
 

 

Approved by order of the members of the board of Trustees and signed on their behalf by:



................................................
A Miller Esq
(Trustee)
Date: 28 November 2023
Page 6

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  KEREM SCHOOLS
 

Opinion


We have audited the financial statements of Kerem Schools (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 August 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 Charities Act 2011.


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 United Kingdom, including the Financial Reporting Council'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.


Page 7

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  KEREM SCHOOLS (CONTINUED)


Other information


The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual reportOur 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. 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 course of 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.


Matters on which we are required to report by exception


We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.


Responsibilities of trustees


As explained more fully in the Trustees' responsibilities statement, 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.


Page 8

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  KEREM SCHOOLS (CONTINUED)


Auditors' responsibilities for the audit of the financial statements


We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.


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 an Auditors' report 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:
Enquiring of management around actual and potential litigation and claims.
Reviewing board meeting minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation with applicable laws and regulations.
Perofrming audit work over the risk of management ovverride of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), 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, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 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 of the effectiveness of the charitable company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to
Page 9

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  KEREM SCHOOLS (CONTINUED)


cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.





BKL Audit LLP
Chartered Accountants
Ian Saunderson
35 Ballards Lane
London
N3 1XW

28 November 2023


BKL Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.


Page 10

 
KEREM SCHOOLS
 
(A company limited by guarantee)

 
 
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 AUGUST 2022


Restricted funds
2022
Unrestricted funds
2022
Total
funds
2022
As restated
Total
funds
2021
Note
        £
        £
        £
        £

Income from:







Donations and grants

3

54,276

32

54,308

51,597
 
Income from charitable activities

4

-

2,192,807

2,192,807

1,834,338
 
Income from Investments

5

-

499

499

510
 
Total income
54,276
2,193,338
2,247,614
1,886,445
Expenditure on:







Charitable activities

6

500

2,047,263

2,047,763

1,960,068
 
Total expenditure
500
2,047,263
2,047,763
1,960,068

Net movement in funds
  
53,776
146,075
199,851
(73,623)

Reconciliation of funds:

  





Total funds brought forward

  

3,461

654,430

657,891

731,514
 
Net movement in funds

  

53,776

146,075

199,851

(73,623)
 
Total funds carried forward
  
57,237
800,505
857,742
657,891

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 31 form part of these financial statements.

Page 11

 
KEREM SCHOOLS
 
(A company limited by guarantee)
REGISTERED NUMBER: 3391872

 
 
BALANCE SHEET
AS AT 31 AUGUST 2022


As restated
2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
24,845
36,181

  
24,845
36,181

Current assets
  

Debtors
 12 
235,482
460,453

Cash at bank and in hand
  
1,872,274
1,290,106

  
2,107,756
1,750,559

Creditors: amounts falling due within one year
 13 
(904,655)
(834,889)

Net current assets 
  
 
 
1,203,101
 
 
915,670

Creditors: amounts falling due after more than one year
 14 
(370,204)
(293,960)

Total net assets 
  
857,742
657,891


Charity funds
  

Restricted funds
 17 
57,237
3,461

Unrestricted funds
 17 
800,505
654,430

Total funds
  
857,742
657,891

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

 

Page 12

 
KEREM SCHOOLS
 
(A company limited by guarantee)
REGISTERED NUMBER: 3391872

 
 
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2022

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:




................................................
A Miller Esq
(Trustee)

Date: 28 November 2023


The notes on pages 15 to 31 form part of these financial statements.

Page 13

 
KEREM SCHOOLS
 
(A company limited by guarantee)

 
 
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2022

As restated
2022
2021
£
£

Cash flows from operating activities

Net cash used in operating activities

581,655
116,467

Cash flows from investing activities

Investment income received
516
510

Purchase of tangible fixed assets
-
(33,351)

Net cash provided by/(used in) investing activities

516
(32,841)

Cash flows from financing activities

Change in cash and cash equivalents in the year
 
582,171
 
83,626

Cash and cash equivalents at the beginning of the year
1,290,103
1,206,477

Cash and cash equivalents at the end of the year
1,872,274
1,290,103

The notes on pages 15 to 31 form part of these financial statements

Page 14

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

1.


General information

Kerem Schools is a charitable company that registered with the Charity Commission on the 6th August 1997.


2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Kerem Schools meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

  
2.2

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

  
2.3

Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

  
2.4

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 15

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

2.4

Expenditure (continued)

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

  
2.5

Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

  
2.6

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

 
2.7

Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following bases:

Long-term leasehold property
-
Over lease term
Equipment & computers
-
20%-30% per annum
Motor vehicles
-
25% per annum on reducing balance
Fixtures and fittings
-
Over 7 years

  
2.8

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

  
2.9

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 16

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)


2.10

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

  
2.11

Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

  
2.12

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.


3.

Income from donations and legacies




Restricted funds
2022
Unrestricted funds
2022
Total
funds
2022
        £
        £
        £
 



Donations

54,276

32

54,308


Page 17

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

3.Income from donations and legacies (continued)




Restricted funds
2021
Unrestricted funds
2021
Total
funds
2021
        £
        £
        £



Donations

2,372

36,956

39,328

Job retention scheme

-

12,269

12,269



2,372
49,225
51,597


4.

Income from charitable activities



Unrestricted funds
2022
Total
funds
2022
        £
        £



Provision of education

2,192,807

2,192,807


The above amount includes £3,213 received in respect of nursery funding from the London Borough of Barnet.



Unrestricted funds
2021
Total
funds
2021
        £
        £



Provision of education

1,834,338

1,834,338


The above amount includes £2,311 received in respect of nursery funding from the London Borough of  Barnet 


5.

Investment income



Unrestricted funds
2022
Total
funds
2022
        £
        £



Bank interest

499

499

Page 18

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

5.Investment income (continued)




Unrestricted funds
2021
Total
funds
2021
        £
        £



Bank interest

510

510



6.

Analysis of expenditure on charitable activities


Summary by fund type




Restricted funds
2022
Unrestricted funds
2022
Total
2022
        £
        £
        £




Provision of education

500

2,047,263

2,047,763





Restricted funds
2021
As restated
Unrestricted funds
2021
As restated
Total
2021
        £
        £
        £




Provision of education

2,448

1,957,620

1,960,068



7.

Analysis of expenditure by activities




Activities undertaken directly
2022
Support costs
2022
Total
funds
2022
        £
        £
        £




Provision of education

2,031,939

15,824

2,047,763






Page 19

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

7.Analysis of expenditure by activities (continued)

Activities undertaken directly
2021
As restated
Support costs
2021
As restated
Total
funds
2021
        £
        £
        £




Provision of education

1,947,228

12,840

1,960,068



Analysis of direct costs



Provision of education
2022
Total
funds
2022
        £
        £



Staff costs

1,431,602

1,431,602

Depreciation

11,336

11,336

Teaching

201,489

201,489

Training

10,144

10,144

Catering

136,670

136,670

Legal & Professional fees

26,006

26,006

Premises

199,458

199,458

Events

14,840

14,840

First aid

394

394



2,031,939
2,031,939



Page 20

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

7.Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

As restated
Provision of education
2021
As restated
Total
funds
2021
        £
        £



Staff costs

1,545,490

1,545,490

Depreciation

12,670

12,670

Teaching

103,349

103,349

Training

4,798

4,798

Catering

81,662

81,662

Legal & Professional fees

15,008

15,008

Premises

179,690

179,690

Events

4,052

4,052

First aid

509

509



1,947,228
1,947,228

Analysis of support costs



Provision of education
2022
Total
funds
2022
        £
        £



Bank charges

1,406

1,406

Miscellaneous

5,830

5,830

Telephone

2,238

2,238

Insurance

350

350

Governance costs

6,000

6,000



15,824
15,824

Governance costs are comprised entirely of the audit fee for the year.



Page 21

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

7.Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Provision of education
2021
Total
funds
2021
        £
        £



Bank charges

993

993

miscellaneous

2,831

2,831

Telephone

2,455

2,455

Insurance

361

361

Governance costs

6,200

6,200



12,840
12,840

Governance costs were comprised of £6,200 payable to the auditor for the year, £5,400 of which was for the audit itself and £800 of which was for other services rendered.


8.

Auditors' remuneration

2022
2021
£
£

Fees payable to the Company's auditor for the audit and preparation of the Company's annual accounts
6,000
5,400


9.



Staff costs


2022
2021
£
£


Wages and salaries
1,163,445
1,248,836

Social security costs
98,806
96,480

Contribution to defined contribution pension schemes
169,351
200,174

1,431,602
1,545,490

The average number of persons employed by the Charity during the year was as follows:


2022
2021

No.
No.


48
49

Page 22

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

9.Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:


2022
2021

No.
No.


In the band £70,001 - £80,000
1
1

Remuneration of key management personnel:

The remuneration of key management personnel in the year was was £94,162 (2021 : £94,765)


10.


Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL).


11.


Tangible fixed assets




Long-term leasehold property
As restated Equipment and computers
Motor vehicles
Fixtures and fittings
As restated Total

£
£
£
£
£


Cost or valuation

As restated at 1 September 2021
580,250
112,415
30,000
28,280
750,945


At 31 August 2022

580,250
112,415
30,000
28,280
750,945


Depreciation

As restated at 1 September 
2021
580,250
85,734
20,500
28,280
714,764

Charge for the year
-
5,336
6,000
-
11,336


At 31 August 2022

580,250
91,070
26,500
28,280
726,100
Page 23

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

11.Tangible fixed assets (continued)



Long-term leasehold property
As restated Equipment and computers
Motor vehicles
Fixtures and fittings
As restated Total


£
£
£
£
£


Net book value


At 31 August 2022
-
21,345
3,500
-
24,845


As restated at 31 August 2021
-
26,681
9,500
-
36,181

Page 24

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

12.



Debtors


As restated
2022
2021
£
£


Due within one year

Debtors and payments in advance
205,227
423,912

Prepayments
30,255
36,541

235,482
460,453


13.



Creditors: Amounts falling due within one year


2022
2021
£
£


Deposits
32,143
35,093

Other taxation and social security
21,479
22,474

Fees for next year
728,902
694,358

Accruals and other creditors
122,131
82,964

904,655
834,889


14.



Creditors: Amounts falling due after more than one year


2022
2021
£
£


Deposits
370,204
293,960

Page 25

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

15.


Retired benefit schemes

Defined contribution schemes
The charily operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £169,351 (2021 - £200,174)).
The charity has 2 pension schemes, Teachers Pension Scheme (TPS) for teachers and Nest for other staff.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the Group in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate


16.


Prior year adjustments

In the prior period a capital expense of £33,351 was incorrectly categorised as a prepayment. This error has been reversed and "as restated" has been included above the affected columns. Depreciation charges have also been included for this asset. 

Page 26

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

17.

Statement of funds


Statement of funds - current year

Balance at 1 September 2021
£
Income
£
Expenditure
£
Balance at 31 August 2022
£

Unrestricted funds





General Funds - all funds

654,430

2,193,338

(2,047,263)

800,505
 

Restricted funds






Sponsored reading

1,163

-

-

1,163
 
STP grant

798

-

-

798
 
Bikes 

1,000

-

-

1,000
 
Staff tea

500

-

(500)

-
 
School equipment

-

468

-

468
 
Big

-

53,808

-

53,808
 



3,461
54,276
(500)
57,237

Total of funds


657,891
2,247,614
(2,047,763)
857,742

STP Grant - This fund is used for a school travel plan which encourages the children to walk to school.
Bikes - This is a fund used to buy balance bikes for the Early Years Unit.
Staff Tea - This fund is used for staff refreshments.
School equipment - This fund is used for the purchase of school equipment.
Big grant - This fund is used for the development of a new playground.
Sponsored readings - This fund is used for sponsored readings.

Page 27

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

17.

Statement of funds (continued)



Statement of funds - prior year

Balance at
1 September 2020
£
Income
£
As restated
Expenditure
£
Balance at
31 August 2021
£

Unrestricted funds





General Funds - all funds

728,231

1,884,074

(1,957,875)

654,430
 


Restricted funds






Sponsored reading

1,485

1,872

(2,194)

1,163
 
STP grant

798

-

-

798
 
Bikes 

1,000

-

-

1,000
 
Staff tea

500

-

-

500
 
School equipment

-

-

-

-
 
Big

-

-

-

-
 



3,783
1,872
(2,194)
3,461


Total of funds


732,014
1,885,946
(1,960,069)
657,891


18.

Summary of funds


Summary of funds - current year

Balance at 1 September 2021
£
 
Income
£
 
Expenditure
£
 
Balance at 31 August 2022
£
 
General funds

654,430

2,193,338

(2,047,263)

800,505
 
Restricted funds

3,461

54,276

(500)

57,237
 


657,891
2,247,614
(2,047,763)
857,742

Page 28

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

18.

Summary of funds (continued)


Summary of funds - prior year

Balance at
1 August 2019
£
 
Income
£
 
As restated
Expenditure
£
 
Balance at
31 August 2021
£
 
General funds

728,231

1,884,074

(1,957,875)

654,430
 
Restricted funds

3,783

1,872

(2,194)

3,461
 


732,014
1,885,946
(1,960,069)
657,891


19.

Analysis of net assets between funds

Analysis of net assets between funds - current year

Restricted funds
2022
Unrestricted funds
2022
Total
funds
2022
        £
        £
        £



Tangible fixed assets

-

24,845

24,845

Current assets

57,237

2,050,519

2,107,756

Creditors due within one year

-

(904,655)

(904,655)

Creditors due in more than one year

-

(370,204)

(370,204)

Total 


57,237
800,505
857,742



Analysis of net assets between funds - prior year

Restricted funds
2021
As restated unrestricted funds
2021
Total
funds
2021
        £
        £
        £



Tangible fixed assets

-

36,181

36,181

Current assets

3,461

1,747,098

1,750,559

Creditors due within one year

-

(834,889)

(834,889)

Creditors due in more than one year

-

(293,960)

(293,960)

Total 

3,461
654,430
657,891

Page 29

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

20.



Reconciliation of net movement in funds to net cash flow from operating activities


As restated
2022
2021
£
£

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



199,851

(73,623)

Adjustments for:

(499)
(510)

Investment income recognised in statement of financial activities
6,000
6,000

Depreciation and impairment of tangible fixed assets
5,336
6,670

Decrease in debtors
224,971
12,095

Increase in creditors
143,510
165,835

Other non cash movement
2,486
-

Net cash provided by operating activities
581,655
116,467



21.



Analysis of cash and cash equivalents


2022
2021
£
£

Cash in hand
1,872,274
1,290,103

Total cash and cash equivalents
1,872,274
1,290,103


22.



Analysis of changes in net debt





At 1 September 2021
Cash flows
At 31 August 2022
£
£

£

Cash at bank and in hand

1,290,106

582,168

1,872,274


1,290,106
582,168
1,872,274

Page 30

 
KEREM SCHOOLS

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022


23.


Related party transactions

During the year, the charity received fee income from the trustees totalling £7,940 (2021 - £11,200).

Page 31