2021-02-28-accounts - Jewish Learning Exchange Building Limited

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REGISTERED COMPANY NUMBER: 06131792 (England and Wales) REGISTERED CHARITY NUMBER: 1119362

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021

FOR

JEWISH LEARNING EXCHANGE BUILDING LIMITED

Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE

JEWISH LEARNING EXCHANGE BUILDING LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021

		Page
Report of the Trustees	1	to	2
Independent Examiner's Report		3
Statement of Financial Activities		4
Balance Sheet	5	to	6
Notes to the Financial Statements	7	to	13

JEWISH LEARNING EXCHANGE BUILDING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2021

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 28th February 2021. 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 charity's object and principal activity continues to be that of the advancement of Orthodox Jewish Religious Education amongst members of the Jewish faith throughout the world and such other charitable purposes as the Association may from time to time determine.

The charity is organised so that the directors and trustees meet regularly to manage its affairs and deal with the day to day administration.

ACHIEVEMENT AND PERFORMANCE

The trustees are pleased with the results for the year.

FINANCIAL REVIEW

Reserves policy

The charity's reserves policy is to maintain sufficient reserves to enable the charity to continue its activities and services at a meaningful level, should there be a drop in income. The trustees review this position on a regular basis.

In view of this the trustees aim to maintain a level of reserves sufficient to meet three months basic operating cost.

Having regard to the above the trustees are of the opinion that the cash reserves held at the year end, amounting to £584,117 (2020£6664,341) would be sufficient to meet three months basic operating cost and , they intend to increase the reserves held in the forthcoming year.

The Statement of Financial Activities shows a net deficit for the year of £157,400 (2020 : surplus - £98,968). The reserves show a surplus of £4,131,746 (2020 - £4,289,146).

Principal risks and uncertainties

The Trustees are well aware of the risks posed by the Covid-19 pandemic to the Charity and note that a significant commercial tenant has defaulted on their rent due to lockdown. The Trustees are however confident that this situation will be remedied as lockdown restrictions are lifted in due course.

FUTURE PLANS

The need for our services is increasing and we plan to continue doing what we can to assist. However, the trustees realise that we must use the resources we have wisely and so we will continue to target those problems where we have expertise to make the most difference. We therefore intend to continue our approach of education and training with further projects to build on the previous ones. We are confident that we shall receive more support from our supporters.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustee and Organisational Structure

The charity is constituted as a company limited by guarantee and is therefore governed by a Memorandum and Articles of Association. All directors of the company are also trustees of the charity and there are no other trustees. All of the trustees named above served throughout the period. The board has the power to appoint additional trustees as and when it considers fit to do so.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06131792 (England and Wales)

Registered Charity number

1119362

Page 1

JEWISH LEARNING EXCHANGE BUILDING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2021

Registered office

152-154 Golders Green Road Golders Green London NW11 8HE

Trustees

A Cohen D P Lyons S Douer

Company Secretary

D F Kirsch

Independent Examiner

Akiva Kahan FCA Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE

REVIEW OF THE CHARITY

The charitable company was incorporated on 28 February 2007. The charity was formed to purchase and run the building at 152-154 Golders Green Road, London NW11 8HE and associated properties. The original building is run as an educational and social centre housing the programmes and administration offices of the Jewish Learning Exchange (Charity No.292886). The purchase of the building was completed in June 2007 and the charity raised significant sums from private benefactors and charitable trusts, and by taking a mortgage from the Principality Building Society. The charity further purchased a property to facilitate for the growth in the organisation.

DECLARATION OF PUBLIC BENEFIT

The Trustees have considered the Charity Commission's general guidance on public benefit in deciding what activities the charity should undertake.

The 'Objectives and Activities' section explains the charity's activities which are open to anyone of the Orthodox Jewish faith.

Approved by order of the board of trustees on 19th November 2021 and signed on its behalf by:

A Cohen - Trustee

Page 2

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF JEWISH LEARNING EXCHANGE BUILDING LIMITED

Independent examiner's report to the trustees of Jewish Learning Exchange Building Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 28th February 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCA 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:

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the accounts 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 accounts 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 accounts to be reached.

Akiva Kahan FCA Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE

Date: November 2021

Page 3

JEWISH LEARNING EXCHANGE BUILDING LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2021

Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Restricted Investment income 2 Total EXPENDITURE ON Charitable activities Restricted NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted fund £ - - - - - - - -	Restricted fund £ 125,023 10,000 200,667 335,690 493,090 (157,400) 4,289,146 4,131,746	2021 Total funds £ 125,023 10,000 200,667 335,690 493,090 (157,400) 4,289,146 4,131,746	2020 Total funds £ - - 264,449
				264,449 165,481
				98,968 4,190,178
				4,289,146

The notes form part of these financial statements

Page 4

JEWISH LEARNING EXCHANGE BUILDING LIMITED

BALANCE SHEET 28TH FEBRUARY 2021

Notes FIXED ASSETS Intangible assets 6 Tangible assets 7 Investment property 8 CURRENT ASSETS Debtors 9 Cash at bank CREDITORS Amounts falling due within one year 10 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 11 NET ASSETS FUNDS 13 Restricted funds TOTAL FUNDS	Unrestricted fund £ - - - - - - - - - - - -	Restricted fund £ - 94,824 6,450,000 6,544,824 295,708 584,117 879,825 (268,498) 611,327 7,156,151 (3,024,405 ) 4,131,746	2021 Total funds £ - 94,824 6,450,000 6,544,824 295,708 584,117 879,825 (268,498) 611,327 7,156,151 (3,024,405 ) 4,131,746 4,131,746 4,131,746	2020 Total funds £ 346,668 98,264 6,450,000 6,894,932 246,454 664,341 910,795 (465,492) 445,303 7,340,235 (3,051,089 ) 4,289,146 4,289,146 4,289,146

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The notes form part of these financial statements

Page 5

JEWISH LEARNING EXCHANGE BUILDING LIMITED

BALANCE SHEET - continued 28TH FEBRUARY 2021

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

The financial statements were approved by the Board of Trustees and authorised for issue on 19th November 2021 and were signed on its behalf by:

A Cohen - Trustee

The notes form part of these financial statements

Page 6

JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021

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.

Going concern

The Trustees have reviewed the charities operations for the year ending 28th February 2021 and whilst they note that there has been a large reduction in rent received due to a commercial tenant having been severely affected by the Covid-19 lockdown, the charity's ability to trade as a going concern has not been affected.

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 reasonable accuracy. The donations received in the year were raised specifically for the purchase and maintenance of the associated properties.

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.The expenditure is related specifically for the acquisition and maintenance of the associated properties.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - not provided Fixtures, fittings and equipment - 25% on reducing balance

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.

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investments properties are recognised initially at cost.

Subsequent to initial recognition:

a) Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and

b) No depreciation is provided in respect of the investment properties applying the fair value model.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Financial instruments

The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

2. INVESTMENT INCOME

INVESTMENT INCOME
	2021	2020
	£	£
Rents and insurance received	200,667	264,449

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JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

3. NET INCOME/(EXPENDITURE)

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

	2021	2020
	£	£
Depreciation - owned assets	3,440	4,586
Goodwill amortisation	346,668	13,333

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 28th February 2021 nor for the year ended 29th February 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 28th February 2021 nor for the year ended 29th February 2020.

5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM Investment income EXPENDITURE ON Charitable activities Restricted NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted fund £ - - - - -	Restricted fund £ 264,449 165,481 98,968 4,190,178 4,289,146	Total funds £ 264,449 165,481
			98,968 4,190,178
			4,289,146

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JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

6. INTANGIBLE FIXED ASSETS

The remaining value of the goodwill which represented a gym membership list has been written off in the year as the gym ceased functioning due to the Covid -19 epidemic.

7. TANGIBLE FIXED ASSETS

Fixtures, Improvements fittings to and property equipment £ £ COST At 1st March 2020 and 28th February 2021 84,506 47,822 DEPRECIATION At 1st March 2020 - 34,064 Charge for year - 3,440 At 28th February 2021 - 37,504 NET BOOK VALUE At 28th February 2021 84,506 10,318 At 29th February 2020 84,506 13,758 INVESTMENT PROPERTY FAIR VALUE At 1st March 2020 and 28th February 2021 NET BOOK VALUE At 28th February 2021 At 29th February 2020	Totals £ 132,328 34,064 3,440 37,504 94,824 98,264 £ 6,450,000
	6,450,000
	6,450,000

Fixtures,
Improvements
fittings
to
and
property
equipment
£
£
COST
At 1st March 2020 and 28th February 2021
84,506
47,822
DEPRECIATION
At 1st March 2020
-
34,064
Charge for year
-
3,440
At 28th February 2021
-
37,504
NET BOOK VALUE
At 28th February 2021
84,506
10,318
At 29th February 2020
84,506
13,758
INVESTMENT PROPERTY
FAIR VALUE
At 1st March 2020
and 28th February 2021
NET BOOK VALUE
At 28th February 2021
At 29th February 2020

Totals
£
132,328
34,064
3,440
37,504
94,824
98,264
£
6,450,000

6,450,000

8. INVESTMENT PROPERTY

The historical cost of the investment properties included in the above valuation is £4,667,429 ( 2020 : £4,667,429).

An independent professional revaluation of the company's commercial property was carried out on the 27 May 2016. The professional revaluation uplifted the commercial property by £1,238,754 making the fair value of the commercial property as at 28 February 2021 to be £4,800,000.

The directors are of the opinion that the fair value of the residential property as at the 28 February 2021 was £1,650,000.

Page 10

JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors VAT Prepayments 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 12) Other loans (see note 12) VAT Deferred rent and insurance received Accrued expenses 11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank loans (see note 12) 12. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank loans Other Loans Amounts falling due between two and five years: Bank loans - 2-5 years The loan is secured by way of first charge on the investment property.	2021 £ 289,465 2,757 3,486 295,708 2021 £ 250,000 - - 9,448 9,050 268,498 2021 £ 3,024,405 2021 £ 250,000 - 250,000 3,024,405	2020 £ 243,037 - 3,417 246,454 2020 £ 250,000 200,000 3,044 9,448 3,000 465,492 2020 £ 3,051,089	2020 £ 243,037 - 3,417
			246,454
			2020 £ 250,000 200,000 3,044 9,448 3,000
			465,492
		2020 £ 250,000 200,000
		450,000
		3,051,089

Page 11

JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

13. MOVEMENT IN FUNDS

Restricted funds Restricted TOTAL FUNDS Net movement in funds, included in the above are as follows: Restricted funds Restricted TOTAL FUNDS Comparatives for movement in funds Restricted funds Restricted TOTAL FUNDS Comparative net movement in funds, included in the above are as follows: Restricted funds Restricted TOTAL FUNDS	At 1/3/20 £ 4,289,146 4,289,146 Incoming resources £ 335,690 335,690 At 1/3/19 £ 4,190,178 4,190,178 Incoming resources £ 264,449 264,449		Net movement in funds £ (157,400) (157,400) Resources expended £ (493,090) (493,090) Net movement in funds £ 98,968 98,968 Resources expended £ (165,481) (165,481)	At 28/2/21 £ 4,131,746
				4,131,746
				Movement in funds £ (157,400) (157,400) At 29/2/20 £ 4,289,146
				4,289,146
				Movement in funds £ 98,968 98,968

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JEWISH LEARNING EXCHANGE BUILDING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021

13. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Restricted funds Restricted TOTAL FUNDS	At 1/3/19 £ 4,190,178 4,190,178	Net movement in funds £ (58,432) (58,432)	At 28/2/21 £ 4,131,746
			4,131,746

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Restricted funds Restricted TOTAL FUNDS	Incoming resources £ 600,139 600,139	Resources Movement expended in funds £ £ (658,571) (58,432) (658,571) (58,432)	Resources Movement expended in funds £ £ (658,571) (58,432) (658,571) (58,432)
			(58,432)

14. RELATED PARTY DISCLOSURES

Messrs A Cohen , D Lyons and S Douer are also trustees for Friends of OHR Someach a UK Registered Charity. Friends of OHR Someach occupied a property which is owned by the Jewish Learning Exchange/OHR Somayach Limited for its operations . and paid rent during the year totalling £120,000 (2020 - £100,000).

15. ACCOUNTING ESTIMATES AND JUDGEMENTS

Property Valuations

The valuation of the company's property portfolio is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore, the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions.

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