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COMPANY REGISTRATION NUMBER: 5988101
CHARITY REGISTRATION NUMBER: 1123323
Magen Ari Trust
Company Limited by Guarantee
Unaudited Financial Statements
30 November 2023
Magen Ari Trust
Company Limited by Guarantee
Financial Statements
Year ended 30 November 2023
Page
Trustees' annual report (incorporating the director's report)
1
Statement of financial activities (including income and expenditure account)
4
Statement of financial position
5
Notes to the financial statements
6
Magen Ari Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 30 November 2023
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 30 November 2023 .
Reference and administrative details
Registered charity name
Magen Ari Trust
Charity registration number
1123323
Company registration number
5988101
Principal office and registered
2nd Floor - Parkgates
office
Bury New Road
Prestwich
Manchester
M25 0TL
The trustees
Y Emanuel
A I Stern
B Neumann
S Neumann
Company secretary
A I Stern
Accountants
Haffner Hoff Ltd
Accountants
2nd Floor - Parkgates
Bury New Road
Prestwich
Manchester
M25 0TL
Structure, governance and management
Magen Ari Trust is constituted by Memorandum of Association and is a company limited by guarantee. It was incorporated on 03 November 2006 as a company and the company number is 5988101 . It was registered as a charity on 26 March 2008 with a charity number 1123323 .
Recruitment and appointment of new trustees would be in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.
There is no chief executive officer. The day to day affairs are undertaken by Mr Y Emanuel on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.
There are no policies for the induction or training of new trustees.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The risks faced by the trust are principally operational risks from ineffective grant making. These risks are managed by the trustees researching potential beneficiaries before granting donations.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all grants.
Objectives and activities
The objects of the charity are the relief of poverty amongst the elderly or persons in need, hardship or distress in the Jewish Community Orthodox Jewish Religion; the advancement of the Orthodox Jewish religion and the advancement of education according to the tenets of the Orthodox Jewish Faith.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.
Grant making policy
The charity is funded by investment income. The charity gives out grants in line with the above objects.
Grants made during the year to institutions are as detailed in the accounts.
The trustees consider they have met the public benefit test and outline these achievements below.
The trustees measure the success of achieving the stated aims by the number and value of grants paid out for each object. The grants paid out in the year are detailed in the notes to the accounts and the trustees consider they have met their aims successfully this year.
The trustees consider the shorter term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
Achievements and performance
The charity received £nil by way of donations during the year and £4,207 was paid out by way of grants and support costs. These grants were made in line with the stated objects of the charity and were either educational or for relief of poverty purposes.
The charity also had net investment income receivable during the year amounting to £7,289, and net gains on the sale of an investment amounting to £1,470.
The charity has low governance costs comprising professional fees.
Most office costs are borne by a local benefactor and the trustees wish to record their appreciation to the benefactor for the free use of their offices.
Grants over £1,000 made during the year to institutions are as detailed in the accounts.
There were no material fundraising costs during the year.
Related party transactions are disclosed as applicable in the notes to the accounts.
There was an overall net income and net movement for the year amounting to £4,552.
Financial review
Investment performance
The investments of the charity have provided a 6% return during the year.
The trustees consider this acceptable when compared with returns available on deposits in any of the banking institutions that also do not have any capital growth potential. These property investment returns are not at the expense of any exposure of loan to value covenants that would put these investments at risk. Additionally, the trustees are confident that the shares will rise in value in the future.
Reserves policy
The Unrestricted Fund represents the unrestricted funds arising from past operating results.
The Trustees are satisfied that the balance of the Fund is an acceptable level of reserves given the nature of revenue receipts against grants payable.
In considering the limited financial obligations of the charity, the trustees have resolved to maintain a minimum reserve roughly equal to the net current assets of the charity.
The trustees have considered the fair value of the investment property taking into account the loan to value of the properties as well as the nature and exposure of the syndicate properties. The trustees consider the holding value to be the fair value.
The trustees are delighted to have made many valuable contributions to the community as a result of this income and hope to be able to do so for many years to come.
The free reserves, being the net current assets of the charity, amounted to £20,486 all of which are unrestricted.
The trustees' annual report and the strategic report were approved on 11 August 2024 and signed on behalf of the board of trustees by:
A I Stern
A I Stern
Trustee
Charity Secretary
Magen Ari Trust
Company Limited by Guarantee
Statement of Financial Activities
(including income and expenditure account)
Year ended 30 November 2023
2023
2022
Unrestricted funds
Total funds
Total funds
Note
£
£
£
Income and endowments
Investment income
5
7,289
7,289
6,107
-------
-------
-------
Total income
7,289
7,289
6,107
-------
-------
-------
Expenditure
Expenditure on charitable activities
6,7
4,207
4,207
1,000
-------
-------
-------
Total expenditure
4,207
4,207
1,000
-------
-------
-------
Net gains on investments
10
1,470
1,470
-------
-------
-------
Net income and net movement in funds
4,552
4,552
5,107
-------
-------
-------
Reconciliation of funds
Total funds brought forward
130,841
130,841
125,734
---------
---------
---------
Total funds carried forward
135,393
135,393
130,841
---------
---------
---------
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Magen Ari Trust
Company Limited by Guarantee
Statement of Financial Position
30 November 2023
2023
2022
Note
£
£
£
Fixed assets
Investments
13
114,907
109,823
Current assets
Cash at bank and in hand
21,086
21,618
Creditors: amounts falling due within one year
14
600
600
--------
--------
Net current assets
20,486
21,018
---------
---------
Total assets less current liabilities
135,393
130,841
---------
---------
Net assets
135,393
130,841
---------
---------
Funds of the charity
Unrestricted funds
135,393
130,841
---------
---------
Total charity funds
15
135,393
130,841
---------
---------
For the year ending 30 November 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 11 August 2024 , and are signed on behalf of the board by:
Y Emanuel
Trustee
Magen Ari Trust
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 30 November 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 2nd Floor - Parkgates, Bury New Road, Prestwich, Manchester, M25 0TL.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported besides the valuation of fixed asset investments at the year end.
Fund accounting
Unrestricted funds held by the charity are funds that can be used in accordance with the charitable objects at the discretion of the trustees.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Investment property
Fixed asset investment Fixed asset investments, including investment property, are included at market value, where appropriate, at the balance sheet date. Any gain or loss on revaluation is taken to the SOFA. No depreciation is provided on these investments in accordance with FRSSE. This represents a departure from the general requirement of the Companies Act for all tangible assets to be depreciated. In the opinion of the trustees compliance with the standard is necessary for the financial statements to give a true and fair view.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. 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 cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Limited by guarantee
Magen Ari Trust is a registered charity and a company limited by guarantee and does not have a share capital. In the event of the charity being wound up, members are required to contribute an amount not exceeding £10.
5. Investment income
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Income from investment properties
7,289
7,289
6,107
6,107
-------
-------
-------
-------
6. Expenditure on charitable activities by fund type
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Charitable grants
3,500
3,500
Support costs
707
707
1,000
1,000
-------
-------
-------
-------
4,207
4,207
1,000
1,000
-------
-------
-------
-------
7. Expenditure on charitable activities by activity type
Grant funding of activities
Support costs
Total funds 2023
Total fund 2022
£
£
£
£
Charitable grants
3,500
108
3,608
399
Governance costs
599
599
601
-------
----
-------
-------
3,500
707
4,207
1,000
-------
----
-------
-------
8. Analysis of support costs
Analysis of support costs activity 1
Total 2023
Total 2022
£
£
£
General office
108
108
399
Governance costs
599
599
601
----
----
-------
707
707
1,000
----
----
-------
9. Analysis of grants
2023
2022
£
£
Grants to institutions
Friends Of Beis Soroh Schneirer
2,500
Kollel Gaon Yaakov
1,000
-------
----
3,500
-------
----
Total grants
3,500
-------
----
10. Net gains on investments
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Gains/(losses) on investment property
1,470
1,470
-------
-------
----
----
11. Staff costs
The average head count of employees during the year was Nil (2022: Nil).
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
12. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
13. Investments
Investment properties
£
Cost or valuation
At 1 December 2022
109,823
Additions
8,759
Disposals
(3,675)
---------
At 30 November 2023
114,907
---------
Impairment
At 1 December 2022 and 30 November 2023
Carrying amount
At 30 November 2023
114,907
---------
At 30 November 2022
109,823
---------
All investments shown above are held at valuation.
Investment properties
Investments in UK investment property represents capital introduced by the charity into the syndicate plus accrued surpluses less deficiencies but without revaluing the syndicate properties. The syndicates in which the charity is a participator have borrowings that are secured on the syndicate property. The charity accounts for its syndicate investments under the equity accounting basis and thus the charity's share of the borrowings are not included in these financial statements.
Valuation of the syndicate property is at fair value of the syndicate property in the opinion of the trustees. The percentage holding ranges from 1% to 5%. The trustees consider that they do not have significant influence over the operating and financial policy of the undertaking.
14. Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
600
600
----
----
15. Analysis of charitable funds
Unrestricted funds
At 1 December 2022
Income
Expenditure
Gains and losses
At 30 November 2023
£
£
£
£
£
General funds
130,841
7,289
(4,207)
1,470
135,393
---------
-------
-------
-------
---------
At 1 December 2021
Income
Expenditure
Gains and losses
At 30 November 2022
£
£
£
£
£
General funds
125,734
6,107
(1,000)
130,841
---------
-------
-------
----
---------
16. Analysis of net assets between funds
Unrestricted Funds
Total Funds 2023
£
£
Investments
114,907
114,907
Current assets
21,086
21,086
Creditors less than 1 year
(600)
(600)
---------
---------
Net assets
135,393
135,393
---------
---------
Unrestricted Funds
Total Funds 2022
£
£
Investments
109,823
109,823
Current assets
21,618
21,618
Creditors less than 1 year
(600)
(600)
---------
---------
Net assets
130,841
130,841
---------
---------
17. Taxation
Magen Ari Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.