The governors present their report and accounts for the year ended 31 March 2024.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016).
The charity's objectives are to aid the advancement of religion in accordance with the Orthodox Jewish faith and the relief of poverty and other charitable purposes for the public benefit. The policies adopted in furtherance of these objects are to identify Orthodox Jewish Charities which carry out activities such as providing Orthodox Jewish education and other activities which advance religion in accordance with the Orthodox Jewish faith or which relieve poverty and there has been no change in these during the year.
Each year, the governors confirm that they have referred to guidance contained in the Charity Commission general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year.
The charity's income is generated from investment income and gains and charitable donations which is then distributed to meet the above objectives after allowing for funds required for investment in the charity joint property syndicates.
The objective of the charity for the year was to maintain a stable flow of donations to worthy causes in the Jewish community. The governors also aim to expand the charity's investment portfolio when the opportunity arises. No particular criteria or measures are used to assess success in achieving these aims or objectives.
The governors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity has continued to distribute funds to other charities and charitable causes during the year. The governors are pleased with the investment performance and with the level of donations given to worthy causes.
The governors' investment powers are governed by the company's Memorandum of Association which permits the company to invest as may be determined by the governors.
The governors' are experienced property investors and have invested the company's funds in various properties with others in order to generate funds for distribution. Investments are chosen on the basis of achieving a yield in excess of that available from cash deposits while maintaining a high degree of security of income and the underlying assets.
During the year, in order to simplify matters, the charity's subsidiaries transferred all of their investment property interests to the company at book value.
The charity's own investments generated £278,443 (2023: £299,200) with a further £255,000 (2023: 208,500) in donations. There were gains were made on the sale of property investments in the year of £16,248 (2023: £96,469). Accordingly, the total of incoming resources were £549,691 (2023 : £604,169) which left a surplus of £531,069 (2023 : £585,574) after expenses of £18,622 (2023: £18,595).
The charity distributed £571,816 (2023: 241,830) to various charities for the relief of poverty and the advancement of religion in accordance with the Orthodox Jewish faith.
There is no policy to maintain a level of reserves other than as required for the charity's investment portfolio.
The governors' investment powers are governed by the charity's memorandum of association that permits the
charity to invest as may be determined by the governors.
The governors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a company limited by guarantee. It was incorporated on 14 October 1982 and registered as a charity on the same date. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
The governors, who are also directors for the purpose of company law, and who served during the year were:
Governors are recommended and appointed by the Board of Governors, training would be offered to new governors by existing governors.
None of the governors has any beneficial interest in the company. All of the governors are members of the company and guarantee to contribute £1 in the event of a winding up.
The governors' report was approved by the Board of Governors.
I report to the governors on my examination of the financial statements of Localtrent Limited (the charity) for the year ended 31 March 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Investment income
Other incoming resources
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Localtrent Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Heaton House, 148 Bury Old Road, Manchester, M7 4SE.
The accounts have been prepared in accordance with the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the governors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the governors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the governors in furtherance of their charitable objectives.
Funds held by the charity are all unrestricted. These being funds which can used in accordance with the charitable objects at the discretion of the governors.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 are allocated on the portion of the asset’s use.
Expenditure is recognised on an accruals basis as a liability is incurred.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Other costs include all costs involving the public accountability of the charity and its compliance with regulation and good practice. These include costs related to legal fees.
Charitable distributions represent donations paid to religious, educational and similar charities, and are recognised when payment is made by the charity.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents include cash in hand, deposits held at call with banks.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity has a number of joint interests in various properties each of which is owned by a syndicate of similar participators. These investments are stated at the net cost of participation in the syndicate plus accumulated surpluses less deficiences and drawings from the syndicate.
No revaluation of the underlying properties has been reflected in the accounts.
In the application of the charity’s accounting policies, the governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Donations include £ Nil (2023: Nil) from the company's subsidiaries.
Investment income
Property investment surpluses
Other incoming resources
Material grants issued in the period were:
£
Zoreia Zedokos 58,500
Chernobel Shul 42,000
Beis Aaron Trust 40,000
Chasdei Yoel Charitable Trust 33,950
Belz Machnovke 27,980
Yad Vochesed 25,000
Cong Yetev Lev 20,100
KH De Satmar 20,000
Lehachzikom UK 20,000
Ridgesave Ltd 20,000
Shir Chesed Beis Yisroel 20,000
-----------------
357,530
Other grants (less than £20,000) 214,286
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571,816
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None of the governors (or any persons connected with them) received any remuneration or expenses during the year.
The average monthly number of employees during the year was:
Accountancy charges
Sundry expenses
Bank charges and interest
The activities of Localtrent Limited are exempt from direct taxation under part ll of Corporation Tax Act 2010.
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the governors who have considerable experience within the commercial property sector. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The joint property investments in which the charity is a participator has borrowings secured on the properties owned by the syndicates. The charity's share of such borrowings is not shown in the balance sheet in view of the extent of the security provided by the properties.
The charity has a loan with an interest rate of 5.25% above libor and is repayable in 2027 by 48 quarterly payments, with a total of £33,000 currently repayable per annum (including interest).
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The following amounts were outstanding at the reporting end date:
Details of the charity's wholly owned subsidiaries at 31 March 2024 are as follows: