**CHARITY REGISTRATION NUMBER: 1135569**
# **Manchester Great New & Central Synagogue Financial Statements**
## **31 December 2022**
## **HAFFNER HOFF LTD**
Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
## **Manchester Great New & Central Synagogue**
## **Financial Statements**
## **Year ended 31 December 2022**
||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent auditor's report to the trustees|**6**|
|Statement of financial activities|**11**|
|Statement of financial position|**12**|
|Statement of cash flows|**13**|
|Notes to the financial statements|**14**|
## **Manchester Great New & Central Synagogue**
## **Trustees' Annual Report**
## **Year ended 31 December 2022**
The trustees present their report and the financial statements of the charity for the year ended 31 December 2022.
## **Reference and administrative details**
|**Registered charity name**|Manchester Great New & Central Synagogue|
|---|---|
|**Charity registration number**|1135569|
|**Principal office**|30 Singleton Road|
||Salford|
||Manchester|
||M7 4LN|
|**The trustees**||
||J J Davies|
||H Gordon|
||M Jacobs|
||M Livshin|
|**Auditor**|Haffner Hoff Ltd|
||Accountants & statutory auditor|
||2nd Floor - Parkgates|
||Bury New Road|
||Prestwich|
||Manchester|
||M25 0TL|
|**Bankers**|The Royal Bank Of Scotland Plc|
||18 Bury Old Road|
||Manchester|
||M8 7JN|
|**Solicitors**|Steinbergs Solicitors|
||62 County Road|
||Liverpool|
||L4 3QL|
**- 1 -**
## **Manchester Great New & Central Synagogue**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 December 2022**
## **Structure, governance and management**
The Charitable Trust is an unincorporated charity that was established by a constitution adopted on 07 September 2009 to advance the Jewish Religion in Greater Manchester for the benefit of the public through the holding of prayer meetings, lectures and public celebration of religious festivals.
Recruitment and appointment of new trustees would be in line with the constitution and with the consent of the trustees.
There is no chief executive officer. The day to day affairs are undertaken by the executive and committee on behalf of the trustees. The executive and committee give of their time freely. 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 responsibility of the trustees.
Suitable policies are in place 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 in relation to the management of the Synagogue. These risks are managed by the trustees having a management team to which the smooth running of the Synagogue is delegated.
The trustees examine the major strategic and operational risks that the Synagogue faces. The executive, including its treasurer has close control over the financial records and monitors the financial position regularly.
**- 2 -**
## **Manchester Great New & Central Synagogue**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 December 2022**
## **Objectives and activities**
The objects of the charity are: (i) the advancement of the Jewish religion for the benefit of the public, (ii) the advancement of Jewish religious education and (iii) such other charitable purposes as the trustees shall from time to time decide.
The objectives of the charity are to cater for the religious requirements generally of the Jewish inhabitants of North Manchester and the surrounding districts and in particular, to provide its members, (and where appropriate for others), the normal facilities of a Synagogue in accordance with Orthodox Jewish tradition, principally:
- a) Religious services on weekdays, Sabbaths and holy days;
- b) Pastoral support;
- c) Educational facilities;
- d) Facilities for burial of the dead;
- e) Facilities for marriages;
- f) Social events as appropriate;
- g) Support for those in need, where appropriate, through other charitable bodies.
There were no significant changes in the principal objectives of the Synagogue for the period under review. The charity's income derives principally from donations and from its membership.
## **Public benefit**
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The trustees consider they have met the public benefit test.
**- 3 -**
## **Manchester Great New & Central Synagogue**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 December 2022**
## **Achievements and performance**
The Statement Of Financial Activities (SOFA) shows that the Synagogue received total income of £367,116 (2021:£288,455). The Synagogue spent £420,281 on direct charitable expenditure (2021: £383,088) and £23,001 on investment management costs (2021:£16,117), leaving a deficit of £76,166 before gains and transfers (2021:£110,750).
There was a loss on the listed and other investments amounting to £252,075. (In 2021 there was a gain of £213,752). The net expenditure for the year was £328,241 (2021, net income of £103,002) as disclosed on the face of the SOFA.
The net expenditure and movement in funds of £328,241 was made up of £42,844 of income attributable to the restricted fund (burial board) and £371,085 of expenditure attributable to the unrestricted fund. This compares with 2021 where the net income and movement in funds of £103,002 was made up of £19,706 attributable to the restricted fund (burial board) and £83,296 attributable to the unrestricted fund.
The Synagogue employs the minimum pastoral, administrative and caretaking staff necessary and relies mainly on unpaid volunteers for backup and other purposes. The direct charitable and support costs were all in line with the stated objects of the charity.
New investments made during the year relate to the listed investments.
There were no material fundraising costs during the year.
Related party transactions are reported in note 26 of the accounts.
## **Financial review**
The achievements and performance are discussed above and the policies are described below.
## **Reserves policy**
The unrestricted fund represents the unrestricted funds arising from past operating results. There is no formal policy to maintain a level of reserves. The trustees constantly monitor the level of reserves to ensure the charity can meet its liabilities.
The trustees are satisfied that the balance of the fund is an acceptable level of reserves given the nature of revenue receipts against expected expenditure.
In considering the limited financial obligations of the charity, the trustees maintain an appropriate level of funding.
The free reserves represented by the net current assets of the charity stand at £21,089 (2021:£11,421).
## **Investment policy**
The charity has investments in quoted companies, property and cash at bank. The trustees consider this diverse portfolio to be appropriate in the context of its objectives and activities.
**- 4 -**
## **Manchester Great New & Central Synagogue**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 December 2022**
## **Plans for future periods**
The trustees plan to continue to maintain the Synagogue and burial board in line with the Trust Deed and to pursue those objectives and projects with all the resources available to the charity.
## **Trustees' responsibilities statement**
The trustees 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).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity 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 in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. 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.
The trustees' annual report was approved on 30 October 2023 and signed on behalf of the board of trustees by:
M Livshin Trustee
**- 5 -**
## **Manchester Great New & Central Synagogue**
## **Independent Auditor's Report to the Trustees**
## **Year ended 31 December 2022**
## **Opinion**
We have audited the financial statements of Manchester Great New & Central Synagogue (the 'charity') for the year ended 31 December 2022 which comprise the statement of financial activities, statement of financial position, 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 FRS 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 charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity'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.
**- 6 -**
## **Manchester Great New & Central Synagogue**
## **Independent Auditor's Report to the Trustees** _**(continued)**_
## **Year ended 31 December 2022**
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 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
- adequate 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 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
**- 7 -**
## **Manchester Great New & Central Synagogue**
## **Independent Auditor's Report to the Trustees** _**(continued)**_
## **Year ended 31 December 2022**
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to (a) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; (b) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; (c) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; (d) the matters identified as to how and where fraud might occur in the financial statements and any potential indicators of fraud.
In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code, UK tax legislation and UK Charity Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
As a result of performing the above, we identified no key audit matters relating to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the
**- 8 -**
## **Manchester Great New & Central Synagogue**
## **Independent Auditor's Report to the Trustees** _**(continued)**_
## **Year ended 31 December 2022**
financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
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 on the effectiveness of the 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 charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the charity to 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.
**- 9 -**
## **Manchester Great New & Central Synagogue**
## **Independent Auditor's Report to the Trustees** _**(continued)**_
## **Year ended 31 December 2022**
The firm is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under Section 1212 of The Companies Act 2006.
## **Use of our report**
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
Haffner Hoff Ltd Accountants & statutory auditor
30 October 2023
**- 10 -**
## **Manchester Great New & Central Synagogue**
## **Statement of Financial Activities**
## **Year ended 31 December 2022**
||||**2022**||2021|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|40,315|–|**40,315**|17,472|
|Charitable activities|**5**|105,160|126,122|**231,282**|208,491|
|Investment income|**6**|54,745|–|**54,745**|49,528|
|Other income|**7**|40,774|–|**40,774**|12,964|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total income**||240,994|126,122|**367,116**|288,455|
|||================================|================================|================================|================================|
|**Expenditure**||||||
|Expenditure on raising funds:||||||
|Investment management costs|**8**|23,001|–|**23,001**|16,117|
|Expenditure on charitable activities|**9,10**|337,003|83,278|**420,281**|383,088|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total expenditure**||360,004|83,278|**443,282**|399,205|
|||================================|================================|================================|================================|
|Net (losses)/gains on investments|**12**|(252,075)|–|**(252,075)**|213,752|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Net (expenditure)/income and net**||||||
|**movement in funds**||(371,085)|42,844|**(328,241)**|103,002|
|||================================|================================|================================|================================|
|**Reconciliation of funds**||||||
|Total funds brought forward||3,220,513|234,290|**3,454,803**|3,351,801|
|||-----------------------------------------|--------------------------------|-----------------------------------------|-----------------------------------------|
|**Total funds carried forward**||2,849,428|277,134|**3,126,562**|3,454,803|
|||=========================================|================================|=========================================|=========================================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 14 to 25 form part of these financial statements.**
**- 11 -**
## **Manchester Great New & Central Synagogue**
## **Statement of Financial Position**
## **31 December 2022**
|||**2022**||2021|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Fixed assets**|||||
|Tangible fixed assets|**17**||**1,989,446**|2,060,317|
|Investments|**18**||**1,966,851**|2,272,536|
||||-----------------------------------------|-----------------------------------------|
||||**3,956,297**|4,332,853|
|**Current assets**|||||
|Debtors|**19**|**87,841**||70,383|
|Cash at bank and in hand||**39,370**||47,781|
|||--------------------------------||--------------------------------|
|||**127,211**||118,164|
|**Creditors: amounts falling due within one year**|**20**|**106,122**||106,743|
|||--------------------------------||--------------------------------|
|**Net current assets**|||**21,089**|11,421|
||||-----------------------------------------|-----------------------------------------|
|**Total assets less current liabilities**|||**3,977,386**|4,344,274|
|**Creditors: amounts falling due after more than**|||||
|**one year**|**21**||**850,822**|889,471|
||||-----------------------------------------|-----------------------------------------|
|**Net assets**|||**3,126,564**|3,454,803|
||||=========================================|=========================================|
|**Funds of the charity**|||||
|Restricted funds|||**277,134**|234,290|
|Unrestricted funds|||**2,849,428**|3,220,513|
||||-----------------------------------------|-----------------------------------------|
|**Total charity funds**|**23**||**3,126,562**|3,454,803|
||||=========================================|=========================================|
These financial statements were approved by the board of trustees and authorised for issue on 30 October 2023, and are signed on behalf of the board by:
M Livshin Trustee
**The notes on pages 14 to 25 form part of these financial statements.**
**- 12 -**
## **Manchester Great New & Central Synagogue**
## **Statement of Cash Flows**
## **Year ended 31 December 2022**
||**2022**|2021|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net (expenditure)/income|**(328,239)**|103,002|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|**70,871**|71,940|
|Net (losses)/gains on investments|**252,075**|(213,752)|
|Dividends, interest and rents from investments|**(54,706)**|(49,524)|
|Other interest receivable and similar income|**(39)**|(4)|
|Interest payable and similar charges|**42,587**|31,357|
|Accrued expenses|**450**|6,926|
|Fees for investments|**–**|11,618|
|_Changes in:_|||
|Trade and other debtors|**(17,458)**|(22,390)|
|Trade and other creditors|**2,698**|29,755|
||--------------------------------|--------------------------------|
|Cash generated from operations|**(31,761)**|(31,072)|
|Interest paid|**(42,587)**|(31,357)|
|Interest received|**39**|4|
||----------------------------|----------------------------|
|Net cash used in operating activities|**(74,309)**|(62,425)|
||============================|============================|
|**Cash flows from investing activities**|||
|Dividends, interest and rents from investments|**54,706**|21,000|
|Purchase of tangible assets|**–**|(28,395)|
|Proceeds from sale of other investments|**53,610**|104,400|
||--------------------------------|--------------------------------|
|Net cash (used in)/from investing activities|**108,316**|97,005|
||================================|================================|
|**Cash flows from financing activities**|||
|Proceeds from borrowings|**(42,418)**|(46,186)|
||--------------------------------|--------------------------------|
|Net cash used in financing activities|**(42,418)**|(46,186)|
||================================|================================|
|**Net decrease in cash and cash equivalents**|**(8,411)**|(11,606)|
|**Cash and cash equivalents at beginning of year**|**47,781**|59,387|
||--------------------------------|----------------------------|
|**Cash and cash equivalents at end of year**|**39,370**|47,781|
||================================|============================|
**The notes on pages 14 to 25 form part of these financial statements.**
**- 13 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements**
## **Year ended 31 December 2022**
## **1. General information**
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 30 Singleton Road, Salford, Manchester, M7 4LN.
## **2. Statement of compliance**
The accounts (financial statements) have been prepared in accordance with the relevant version of 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) and The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain investments 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 revaluation of the investments.
## **Fund accounting**
## **Unrestricted funds**
Unrestricted funds held by the charity are funds that can be used in accordance with the charitable objects at the discretion of the trustees.
## **Designated funds**
Designated funds held by the charity relate to the Sale of Silver Ornaments Fund and the Marga Brodie Fund. The timing of expenditure for both funds is at the discretion of the trustees.
## **Restricted funds**
Restricted funds held by the charity relate to the Burial Board.
**- 14 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **3. Accounting policies** _**(continued)**_
## **Incoming resources**
All income is 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.
## **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, noncharitable 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.
## **Tangible assets**
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Land and Buildings - No depreciation has been provided on the land.
Fixtures, fittings and equipment 10% reducing balance.
Investment properties are included in the balance sheet at their open market value.
**- 15 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **3. Accounting policies** _**(continued)**_
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2% reducing balance (burial plots reduced by number used) Fixtures & fittings - 10% reducing balance Motor Vehicles - 25% straight line
## **Investments**
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure. The quoted shares are valued at the list price on the LSE at the year end.
## **Investment property**
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
## **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.
## **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.
**- 16 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **3. Accounting policies** _**(continued)**_
## **Financial instruments** _**(continued)**_
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.
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **4. Donations and legacies**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|**Donations**|||||
|Donations and gifts|40,315|**40,315**|17,310|17,310|
|Donations - Marga Brodie Fund|–|**–**|162|162|
||----------------------------|----------------------------|----------------------------|----------------------------|
||40,315|**40,315**|17,472|17,472|
||============================|============================|============================|============================|
**- 17 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **5. Charitable activities**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|Subscriptions|105,160|–|**105,160**|
|Burial fees|–|126,122|**126,122**|
||--------------------------------|--------------------------------|--------------------------------|
||105,160|126,122|**231,282**|
||================================|================================|================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|Subscriptions|103,079|–|103,079|
|Burial fees|–|105,412|105,412|
||--------------------------------|--------------------------------|--------------------------------|
||103,079|105,412|208,491|
||================================|================================|================================|
## **6. Investment income**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Income from investment properties|21,000|**21,000**|21,000|21,000|
|Income from listed investments|33,706|**33,706**|28,524|28,524|
|Bank interest receivable|39|**39**|4|4|
||----------------------------|----------------------------|----------------------------|----------------------------|
||54,745|**54,745**|49,528|49,528|
||============================|============================|============================|============================|
|**Other income**|||||
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Hall hire|40,774|**40,774**|9,217|9,217|
|Other income - J R S|–|**–**|3,747|3,747|
||----------------------------|----------------------------|----------------------------|----------------------------|
||40,774|**40,774**|12,964|12,964|
||============================|============================|============================|============================|
## **7. Other income**
## **8. Investment management costs**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Rent collection|1,512|**1,512**|1,491|1,491|
|Property repairs and maintenance|||||
|charges|9,173|**9,173**|3,008|3,008|
|Other investment management costs|12,316|**12,316**|11,618|11,618|
||----------------------------|----------------------------|----------------------------|----------------------------|
||23,001|**23,001**|16,117|16,117|
||============================|============================|============================|============================|
**- 18 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **9. Expenditure on charitable activities by fund type**
||||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|---|
||||Funds|Funds|**2022**|
||||£|£|**£**|
||Synagogue expenses||263,996|–|**263,996**|
||Burial Board expenses||–|78,152|**78,152**|
||Depreciation||65,745|5,126|**70,871**|
||Support costs||7,262|–|**7,260**|
||||--------------------------------|----------------------------|--------------------------------|
||||337,003|83,278|**420,279**|
||||================================|============================|================================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2021|
||||£|£|£|
||Synagogue expenses||223,018|–|223,018|
||Burial Board expenses||–|81,435|81,435|
||Depreciation||67,669|4,271|71,940|
||Support costs||6,695|–|6,695|
||||--------------------------------|----------------------------|--------------------------------|
||||297,382|85,706|383,088|
||||================================|============================|================================|
|**10.**|**Expenditure on charitable activities**|**by activity type**||||
|||Activities||||
|||undertaken|Support|**Total funds**|Total fund|
|||directly|costs|**2022**|2021|
|||£|£|**£**|£|
||Synagogue expenses|263,996|–|**263,996**|223,018|
||Burial Board expenses|78,152|–|**78,152**|81,435|
||Depreciation|70,871|–|**70,871**|71,940|
||Governance costs|–|7,260|**7,260**|6,695|
|||--------------------------------|-----------------------|--------------------------------|--------------------------------|
|||413,019|7,260|**420,279**|383,088|
|||================================|=======================|================================|================================|
|**11.**|**Analysis of support costs**|||||
||||Analysis of|||
||||support costs|**Total 2022**|Total 2021|
||||£|**£**|£|
||Governance costs||7,262|**7,262**|6,695|
||||=======================|=======================|=======================|
|**12.**|**Net (losses)/gains on investments**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2022**|Funds|2021|
|||£|**£**|£|£|
||Gains/(losses) on listed investments|(252,075)|
**(252,075)**|138,752|138,752|
||Gains/(losses) on other investments|–|**–**|75,000|75,000|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|||(252,075)|
**(252,075)**|213,752|213,752|
|||================================|================================|================================|================================|
**- 19 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **13. Net (expenditure)/income**
Net (expenditure)/income is stated after charging/(crediting):
|Net (expenditure)/income is stated after charging/(crediting):|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Depreciation of tangible fixed assets|**70,871**|71,940|
||============================|============================|
|**Auditors remuneration**|||
||**2022**|2021|
||**£**|£|
|Fees payable for the audit of the financial statements|**4,620**|4,296|
||=======================|=======================|
|Fees payable to the charity's auditor and its associates for other services:|||
|Other non-audit services|**2,640**|2,400|
||=======================|=======================|
## **14. Auditors remuneration**
## **15. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2022**|2021|
|---|---|---|
||**£**|£|
|Wages and salaries|**91,309**|92,723|
|Employer contributions to pension plans|**1,149**|1,326|
||----------------------------|----------------------------|
||**92,458**|94,049|
||============================|============================|
The average head count of employees during the year was 8 (2021: 9). The average number of full-time equivalent employees during the year is analysed as follows:
||**2022**|2021|
|---|---|---|
||**No.**|No.|
|Number of Rabbinical staff|**5**|5|
|Number of other staff|**2**|2|
|Number of administrative staff|**1**|2|
||--------------|--------------|
||**8**|9|
||==============|==============|
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
## **16. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees, nor were expenses reimbursed to the trustees.
**- 20 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **17. Tangible fixed assets**
||Land and|Fixtures and|Motor||
|---|---|---|---|---|
||buildings|fittings|vehicles|**Total**|
||£|£|£|**£**|
|**Cost**|||||
|**At 1 January 2022 and**|||||
|**31 December 2022**|2,087,515|615,933|3,900|**2,707,348**|
||=========================================|================================|=======================|=========================================|
|**Depreciation**|||||
|At 1 January 2022|341,773|301,358|3,900|**647,031**|
|Charge for the year|39,414|31,457|–|**70,871**|
||-----------------------------------------|--------------------------------|-----------------------|-----------------------------------------|
|**At 31 December 2022**|381,187|332,815|3,900|**717,902**|
||=========================================|================================|=======================|=========================================|
|**Carrying amount**|||||
|**At 31 December 2022**|1,706,328|283,118|–|**1,989,446**|
||=========================================|================================|=======================|=========================================|
|At 31 December 2021|1,745,742|314,575|–|2,060,317|
||=========================================|================================|=======================|=========================================|
|**Investments**|||||
|||Listed|Investment||
|||investments|properties|**Total**|
|||£|£|**£**|
|**Cost or valuation**|||||
|At 1 January 2022||1,622,536|650,000|**2,272,536**|
|Additions||–|–|**–**|
|Disposals||(75,000)|–|**(75,000)**|
|Fair value movements||(230,685)|–|**(230,685)**|
|||-----------------------------------------|--------------------------------|-----------------------------------------|
|**At 31 December 2022**||1,316,851|650,000|**1,966,851**|
|||=========================================|================================|=========================================|
|**Impairment**|||||
|**At 1 January 2022 and 31 December 2022**||||**–**|
|||||=========================================|
|**Carrying amount**|||||
|**At 31 December 2022**||1,316,851|650,000|**1,966,851**|
|||=========================================|================================|=========================================|
|At 31 December 2021||1,622,536|650,000|2,272,536|
|||=========================================|================================|=========================================|
## **18. Investments**
All investments shown above are held at valuation.
## **Listed investments**
The aggregate market value of listed investments is £1,316,851 (2021: £1,622,536).
## **Investment properties**
The investment property represents properties wholly owned by the charity and the carrying amount is the fair value in the opinion of the trustees based on a recent professional valuation.
## **Financial assets held at fair value**
The quoted shares are held at fair value which is market value in the opinion of the trustees.
**- 21 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **19. Debtors**
|||**2022**|2021|
|---|---|---|---|
|||**£**|£|
||Trade debtors|**43,622**|39,487|
||Prepayments and accrued income|**16,111**|9,664|
||Other debtors|**28,108**|21,232|
|||----------------------------|----------------------------|
|||**87,841**|70,383|
|||============================|============================|
|**20.**|**Creditors:** **amounts falling due within one year**|||
|||**2022**|2021|
|||**£**|£|
||Bank loans and overdrafts|**42,417**|46,186|
||Trade creditors|**18,667**|21,144|
||Accruals and deferred income|**17,950**|17,500|
||Social security and other taxes|**1,046**|1,835|
||Other creditors|**26,042**|20,078|
|||--------------------------------|--------------------------------|
|||**106,122**|106,743|
|||================================|================================|
|**21.**|**Creditors:** **amounts falling due after more than one year**|||
|||**2022**|2021|
|||**£**|£|
||Bank loans and overdrafts|**850,822**|889,471|
|||================================|================================|
The bank loans are secured on the investments of the charity.
## **22. Pensions and other post retirement benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £1,149 (2021: £1,326).
**- 22 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **23. Analysis of charitable funds**
## **Unrestricted funds**
||At||||Gains and|**At 31 Dec**|
|---|---|---|---|---|---|---|
||1 Jan 2022|Income|Expenditure|Transfers|losses|**2022**|
||£|£|£|£|£|**£**|
|General funds|3,105,462|240,994|
(359,462)|–|(252,075)|**2,734,919**|
|Designated Fund|||||||
|- Silver|||||||
|Ornaments|100,575|–|
–|–|–|**100,575**|
|Designated Fund|||||||
|- Marga Brodie|||||||
|Fund|14,476|–|
(542)|–|–|**13,934**|
||-----------------------------------------|--------------------------------|--------------------------------|--------------|--------------------------------|-----------------------------------------|
||3,220,513|240,994|
(360,004)|–|(252,075)|**2,849,428**|
||=========================================|================================|================================|==============|================================|=========================================|
||At||||Gains and|At 31 Dec|
||1 Jan 2021|Income|Expenditure|Transfers|losses|2021|
||£|£|£|£|£|£|
|General funds|3,032,166|183,043|
(313,499)|(10,000)|213,752|3,105,462|
|Designated Fund|||||||
|- Silver|||||||
|Ornaments|100,575|–|
–|–|–|100,575|
|Designated Fund|||||||
|- Marga Brodie|||||||
|Fund|14,476|–|
–|–|–|14,476|
||-----------------------------------------|--------------------------------|--------------------------------|----------------------------|--------------------------------|-----------------------------------------|
||3,147,217|183,043|
(313,499)|(10,000)|213,752|3,220,513|
||=========================================|================================|================================|============================|================================|=========================================|
|**Restricted funds**|||||||
||At||||Gains and|**At 31 Dec**|
||1 Jan 2022|Income|Expenditure|Transfers|losses|**2022**|
||£|£|£|£|£|**£**|
|Restricted Fund -|||||||
|Burial Board|234,290|126,122|
(83,278)|–|–|**277,134**|
||================================|================================|============================|==============|==============|================================|
||At||||Gains and|At 31 Dec|
||1 Jan 2021|Income|Expenditure|Transfers|losses|2021|
||£|£|£|£|£|£|
|Restricted Fund -|||||||
|Burial Board|204,584|105,412|
(85,706)|10,000|–|234,290|
||================================|================================|============================|============================|==============|================================|
**- 23 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **24. Analysis of net assets between funds**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|Tangible fixed assets|1,789,446|200,000|**1,989,446**|
|Investments|1,966,851|–|**1,966,851**|
|Current assets|50,077|77,134|**127,211**|
|Creditors less than 1 year|(106,122)|–|**(106,122)**|
|Creditors greater than 1 year|(850,822)|–|**(850,822)**|
||-----------------------------------------|--------------------------------|-----------------------------------------|
|**Net assets**|2,849,430|277,134|**3,126,564**|
||=========================================|================================|=========================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|Tangible fixed assets|1,860,317|200,000|2,060,317|
|Investments|2,272,536|–|2,272,536|
|Current assets|83,874|34,290|118,164|
|Creditors less than 1 year|(106,743)|–|(106,743)|
|Creditors greater than 1 year|(889,471)|–|(889,471)|
||-----------------------------------------|--------------------------------|-----------------------------------------|
|**Net assets**|3,220,513|234,290|3,454,803|
||=========================================|================================|=========================================|
|**Analysis of changes in net debt**||||
||At||**At**|
||1 Jan 2022|Cash flows|**31 Dec 2022**|
||£|£|**£**|
|Cash at bank and in hand|47,781|(8,411)|
**39,370**|
|Debt due within one year|(46,186)|3,769|**(42,417)**|
|Debt due after one year|(889,471)|38,649|**(850,822)**|
||--------------------------------|----------------------------|--------------------------------|
||(887,876)|34,007|**(853,869)**|
||================================|============================|================================|
## **25. Analysis of changes in net debt**
## **26. Related parties**
Mrs Livshin, wife of Mr M Livshin, trustee of Manchester Great New and Central Synagogue (MGNCS), received £2400 during the year for helping cater an event.
Mr H Gordon, trustee of MGNCS received £265 during the year for his services as a photographer at an event.
All the above related transactions were at arms length and there were no outstanding balances at the year end.
## **27. Burial board - contingent liability**
The trustees are aware of a deficiency in funding future burial liabilities. Whilst the trustees are not able to quantify the deficit with certainty, they are aiming to maintain the Burial Board fund at a suitable level.
**- 24 -**
## **Manchester Great New & Central Synagogue**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2022**
## **28. Taxation**
Manchester Great New & Central Synagogue 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.
**- 25 -**