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2020-10-31-accounts

REGISTERED COMPANY NUMBER: 07829000 (England and Wales) REGISTERED CHARITY NUMBER: 1144625

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

FOR

CHABAD LUBAVITCH OF NOTTINGHAM

Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

CHABAD LUBAVITCH OF NOTTINGHAM

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 October 2020

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 11

CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)

REPORT OF THE TRUSTEES for the year ended 31 October 2020

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 31 October 2020. 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 advancement of the Jewish religion and Jewish education in Nottinghamshire.

Significant activities

Based on the Chabad-Lubavitch teachings and philosophy, the charity provides Jewish educational classes, cultural and welfare resources in Nottingham, in particular; but not restricted to, members of the Jewish faith. This work has expanded from primarily working with students to encompassing work with entire community.

At university, many students are leaving home for the first time. We provide them with personal care, and a wide range of religious, educational, social and cultural programming. Parents are particularly appreciative that their children have a 'home away from home.'

Special programming is also available for the post-graduates, singles and young professionals as well as families and seniors in the wider community.

In meeting the objectives the trustees have given careful consideration to the Charity Commission's general guidance on public benefit and consider that all donations meet this guidance.

Public benefit statement

All the trustees are conversant with the Charity Commission's guidelines concerning charities and public benefit and have given consideration to them when assessing the charitable company's aims and objectives. The trustees believe that they have given due regard to the public benefit guidance published by the Commission and have complied fully with the public benefit requirement contained within the Charities Act 2011.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Chabad Lubavitch of Nottingham has established itself as the primary provider of Jewish education and services in Nottinghamshire.

In addition to the popular ongoing dinners, classes and activities provided by the Charity, a number of other organisations use the large community room for their events. These include JLGB, UJS, the Nottingham Jewish Kids Club, AEPi and MASA.

As the Charity takes on a wider community role, it has successfully managed to bring together students and older members of the community for joint events.

Many students now choose to come to Nottingham because of the services provided by Chabad.

Covid-19

As Covid-19 hit in March 2020, the organisation had to quickly adapt and immediately began a weekly take-out and delivery service, providing 150 weekly Shabbat meals to students and a wide-spread volunteer service to assist the elderly community with meals and shopping.

Chabad also ensured that people were able to celebrate the festivals in a meaningful way, with deliveries of special packages, online Lag B'Omer and Chanukah programmes and a mobile Sukkah visiting the elderly. Weekly Zoom lectures and quiz mornings have engaged people who have been stuck isolating at home. These efforts were hugely appreciated with many commenting what a lifesaver they had been.

A large fundraising Campaign to help these relief efforts raised £67,000.

The trustees have undergone Mental Health First Aid to be able to greater assist those struggling both at University and in the community.The effects of Covid hit mental health sufferers and Chabad was able to subsidise over 100 hours of counselling for those in need.

Page 1

CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)

REPORT OF THE TRUSTEES for the year ended 31 October 2020

FINANCIAL REVIEW Financial position Financial results

The financial results for the year to 31 October 2020 are shown in the attached financial statements.

Total income increased from £170,054 to £201,540 and total expenditure increased from £144,444 to £164,003 in comparison with the previous period.

There was a net increase in funds of £37,537 (2019 - £25,610) with total unrestricted funds carried forward of £193,598 (2019 - £156,061).

Reserves policy

The trustees consider that the ideal level of reserves as at 31 October 2020 would be three months of resources expended which is approximately £41,000.

At the year end the charity's free reserves were in deficit. In calculating the reserves, the trustees have excluded from total funds, the value of fixed assets less related loan obligations. The trustees are aware that this is significantly less than the target figure and are actively pursuing sources of funding in order to ensure that there are sufficient reserves to provide financial stability and flexibility.

FUTURE PLANS

The charity is planning to continue providing quality educational courses, one on one study, Shabbat and holiday meals, personal assistance and social events for the community. They are constantly looking for new innovative and inclusive ideas to include more participants.

The Charity has plans drawn up to install commercial kitchen in the summer of 2021. This will enable them to provide regular meals on wheels as well as supply dinners to the university students who do not have easy access to Kosher food.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

New Trustees are appointed due to their interest in the work of charity and their recognised experience in specific fields which will further support the work of Chabad Lubavitch of Nottingham.

Induction and training of new trustees

New trustees are given a full induction by the other trustees of the charity. Trustees can retire when they wish as they do not serve under a fixed term of tenure.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07829000 (England and Wales)

Registered Charity number

1144625

Registered office

3 Gregory Street Nottinghamshire NG7 2LR

Trustees

Rabbi M M Lent (resigned 29.10.20) Rabbi Y A Angyalfi Mrs S Klyne Mr S Pink (appointed 29.10.20)

Page 2

CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)

REPORT OF THE TRUSTEES for the year ended 31 October 2020

REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

Approved by order of the board of trustees on 26 July 2021 and signed on its behalf by:

Mrs S Klyne - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHABAD LUBAVITCH OF NOTTINGHAM

Independent examiner's report to the trustees of Chabad Lubavitch of Nottingham ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2020.

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

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. 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

  3. 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.

Mr Suda Ratnam FCCA Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

26 July 2021

Page 4

CHABAD LUBAVITCH OF NOTTINGHAM

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 October 2020

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
201,540
EXPENDITURE ON
Raising funds
3
4,170
Charitable activities
4
Education and welfare
159,833
Total
164,003
NET INCOME
37,537
RECONCILIATION OF FUNDS
Total funds brought forward
156,061
TOTAL FUNDS CARRIED FORWARD
193,598		 Restricted
funds
£
-
-
-
-
-
-
-		 2020
Total
funds
£
201,540
4,170
159,833
164,003
37,537
156,061
193,598		 2019
Total
funds
£
170,054
-
144,444
144,444
25,610
130,451
156,061

The notes form part of these financial statements

Page 5

CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)

BALANCE SHEET

31 October 2020

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Cash at bank and in hand
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
14
Unrestricted funds
TOTAL FUNDS		 Unrestricted
fund
£
680,677
38,114
(55,193)
(17,079)
663,598
(470,000)
193,598		 Restricted
funds
£
-
-
-
-
-
-
-		 2020
Total
funds
£
680,677
38,114
(55,193)
(17,079)
663,598
(470,000)
193,598
193,598
193,598		 2019
Total
funds
£
686,900
30,062
(20,901)
9,161
696,061
(540,000)
156,061
156,061
156,061

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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 26 July 2021 and were signed on its behalf by:

Mrs S Klyne - Trustee

The notes form part of these financial statements

Page 6

CHABAD LUBAVITCH OF NOTTINGHAM

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2020

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.

Exemption from preparing cash flow statement

The financial statements do not include a cash flow statement because the charitable company, as a small reporting entity, is exempt from the requirements to prepare such a statement under Charities SORP (FRS 102) Update Bulletin 1, Module 14.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to be present value of the future cash receipt where such discounting is material.

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 reliably.

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.

Charitable activities

Charitable activities comprise 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.

Governance costs

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the accountancy fees and costs linked to the strategic management of the charity.

Allocation and apportionment of costs

Overhead and support costs relating to charitable activities have been apportioned based on usage.

Tangible fixed assets

Tangible fixed asset are carried out at cost less accumulated depreciation and accumulated impairment loss. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on reducing balance Computer equipment - 33% on reducing balance Freehold property - 2% at cost

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.

continued...

Page 7

CHABAD LUBAVITCH OF NOTTINGHAM

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2020

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.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months form the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provision are recognised at the moment the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material.

2. DONATIONS AND LEGACIES

Donations
Gift aid
3.
RAISING FUNDS
Raising donations and legacies
Fundraising costs
4.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Education and welfare
126,467		 2020
£
201,540
-
201,540
2020
£
4,170
Support
costs (see
note 5)
£
33,366		 2019
£
155,124
14,930
170,054
2019
£
-
Totals
£
159,833

continued...

Page 8

CHABAD LUBAVITCH OF NOTTINGHAM

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2020

5. SUPPORT COSTS

Management
£
Education and welfare
10,382
6.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
7.
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' salaries		 Governance
Finance
costs
£
£
20,794
2,190
2020
£
16,731
2020
£
-		 Totals
£
33,366
2019
£
15,011
2019
£
7,468

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 October 2020 nor for the year ended 31 October 2019.

8. STAFF COSTS

The average number of employees during the year was 3 (2019- 1).

9. TANGIBLE FIXED ASSETS

COST
At 1 November 2019
Additions
At 31 October 2020
DEPRECIATION
At 1 November 2019
Charge for year
At 31 October 2020
NET BOOK VALUE
At 31 October 2020
At 31 October 2019		 Freehold
property
£
713,275
-
713,275
36,798
12,266
49,064
664,211
676,477		 Fixtures
and
fittings
£
14,533
8,934
23,467
4,682
3,757
8,439
15,028
9,851		 Computer
equipment
£
2,719
1,574
4,293
2,147
708
2,855
1,438
572		 Totals
£
730,527
10,508
741,035
43,627
16,731
60,358
680,677
686,900

continued...

Page 9

CHABAD LUBAVITCH OF NOTTINGHAM

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2020

10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2020
£
Bank loans and overdrafts (see note 12)
40,000
Social security and other taxes
1,300
Other creditors
13,893
55,193
11.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2020
£
Bank loans (see note 12)
370,000
Other creditors
100,000
470,000
12.
LOANS
An analysis of the maturity of loans is given below:
2020
£
Amounts falling due within one year on demand:
Bank loans
40,000
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans
370,000
13.
SECURED DEBTS
The following secured debts are included within creditors:
2020
£
Bank loans
410,000
The mortgage is secured by way of a fixed and floating charge over the property.
14.
MOVEMENT IN FUNDS
Net
At
movement
1.11.19
in funds
£
£
Unrestricted funds
General fund
156,061
37,537
TOTAL FUNDS
156,061
37,537		 2019
£
-
326
20,575
20,901
2019
£
440,000
100,000		 2019
£
-
326
20,575
20,901
540,000
2019
£
-
440,000
2019
£
440,000
At
31.10.20
£
193,598
193,598

continued...

Page 10

CHABAD LUBAVITCH OF NOTTINGHAM

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2020

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
201,540
201,540		 Resources
Movement
expended
in funds
£
£
(164,003)
37,537
(164,003)
37,537

Comparatives for movement in funds

At
1.11.18
£
Unrestricted funds
General fund
130,451
TOTAL FUNDS
130,451
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
165,948
Restricted funds
Sinai scholars
4,106
TOTAL FUNDS
170,054		 Net
movement
At
in funds
31.10.19
£
£
25,610
156,061
25,610
156,061
Resources
Movement
expended
in funds
£
£
(140,338)
25,610
(4,106)
-
(144,444)
25,610

15. RELATED PARTY DISCLOSURES

There were no related party transactions during the year.

Page 11