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 2021
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 2021
| 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 | 12 |
CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)
REPORT OF THE TRUSTEES for the year ended 31 October 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 31 October 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 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 the 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 continued throughout the end of 2020 and into 2021, activities continued to support both the elderly and student populations with remote programs. As restrictions eased, more in-person events were able to take place. A commercial kitchen was installed in the summer of 2021 which will be a huge resource for the community.
A large crowd funding matched campaign took place in July raising nearly £100,000. This enabled the charity to pay for the kitchen and additional repairs as well as support its programming.
The Charity also continued to provide mental health support and counselling for those in need. Additional weekly educational courses also took place and the charity continues to look for innovative and inclusive ideas going forward.
Page 1
CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)
REPORT OF THE TRUSTEES
for the year ended 31 October 2021
FINANCIAL REVIEW
Financial position Financial results
The financial results for the year to 31 October 2021 are shown in the attached financial statements.
Total income increased from £201,540 to £290,188 and total expenditure increased from £164,003 to £194,169 in comparison with the previous period.
There was a net increase in funds of £96,019 (2020 - £37,537) with total unrestricted funds carried forward of £282,447 (2020 - £193,598).
Reserves policy
The trustees consider that the ideal level of reserves as at 31 October 2021 would be three months of resources expended which is approximately £50,000.
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 will be focusing more on pastoral care for the elderly, and plans to begin a meals on wheels service once the new kitchen is licensed.
Chabad Lubavitch of Nottingham will become a registered affiliate of the International JLI educational network, and will be able to deliver professional accredited educational courses.
The 5 year Investec loan will be coming an end and the Charity will be moving to a long term repayment mortgage with Natwest.
Further repairs and modifications to the building are planned to help create a better communal space.
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
Page 2
CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)
REPORT OF THE TRUSTEES
for the year ended 31 October 2021
Trustees
Rabbi Y A Angyalfi Mrs S Klyne Mr S Pink
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 5 July 2022 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 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 FCCA 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 2. 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.
Mr Suda Ratnam FCCA Raffingers LLP Chartered Certified Accountants 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD
5 July 2022
Page 4
CHABAD LUBAVITCH OF NOTTINGHAM
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 October 2021
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 275,692 EXPENDITURE ON Raising funds 3 - Charitable activities 4 Education and welfare 186,843 Total 186,843 NET INCOME 88,849 RECONCILIATION OF FUNDS Total funds brought forward 193,598 TOTAL FUNDS CARRIED FORWARD 282,447 |
Restricted funds £ 14,496 - 7,326 7,326 7,170 - 7,170 |
2021 Total funds £ 290,188 - 194,169 194,169 96,019 193,598 289,617 |
2020 Total funds £ 201,540 4,170 159,833 |
|---|---|---|---|
| 164,003 | |||
| 37,537 156,061 |
|||
| 193,598 |
The notes form part of these financial statements
Page 5
CHABAD LUBAVITCH OF NOTTINGHAM (REGISTERED NUMBER: 07829000)
BALANCE SHEET 31 October 2021
| Notes FIXED ASSETS Tangible assets 8 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 10 NET ASSETS FUNDS 13 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted fund £ 724,055 85,032 (426,640) (341,608) 382,447 (100,000) 282,447 |
Restricted funds £ - 7,170 - 7,170 7,170 - 7,170 |
2021 Total funds £ 724,055 92,202 (426,640) (334,438) 389,617 (100,000) 289,617 282,447 7,170 289,617 |
2020 Total funds £ 680,677 38,114 (55,193) (17,079) 663,598 (470,000) 193,598 193,598 - 193,598 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 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.
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 5 July 2022 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 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.
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.
continued...
Page 7
CHABAD LUBAVITCH OF NOTTINGHAM
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2021
1. ACCOUNTING POLICIES - continued
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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
3.
4.
| Donations RAISING FUNDS Raising donations and legacies Fundraising costs CHARITABLE ACTIVITIES COSTS Direct Costs £ Education and welfare 153,097 |
2021 £ 290,188 2021 £ - Support costs (see note 5) £ 41,072 |
2020 £ 201,540 |
|---|---|---|
| 2020 £ 4,170 Totals £ 194,169 |
continued...
Page 8
CHABAD LUBAVITCH OF NOTTINGHAM
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2021
5. SUPPORT COSTS
| SUPPORT COSTS | ||||
|---|---|---|---|---|
| Governance | ||||
| Management | Finance | costs | Totals | |
| £ | £ | £ | £ | |
| Education and welfare | 21,427 | 17,905 | 1,740 | 41,072 |
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 29,949 | 16,731 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 October 2021 nor for the year ended 31 October 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 October 2021 nor for the year ended 31 October 2020.
8. TANGIBLE FIXED ASSETS
| COST At 1 November 2020 Additions At 31 October 2021 DEPRECIATION At 1 November 2020 Charge for year At 31 October 2021 NET BOOK VALUE At 31 October 2021 At 31 October 2020 |
Freehold property £ 713,275 2,826 716,101 49,064 12,323 61,387 654,714 664,211 |
Fixtures and fittings £ 23,467 70,147 93,614 8,439 17,035 25,474 68,140 15,028 |
Computer equipment £ 4,293 354 4,647 2,855 591 3,446 1,201 1,438 |
Totals £ 741,035 73,327 |
|---|---|---|---|---|
| 814,362 | ||||
| 60,358 29,949 |
||||
| 90,307 | ||||
| 724,055 | ||||
| 680,677 |
continued...
Page 9
CHABAD LUBAVITCH OF NOTTINGHAM
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2021
| 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 £ Bank loans and overdrafts (see note 11) 390,000 Social security and other taxes 1,995 Other creditors 34,645 426,640 10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2021 £ Bank loans (see note 11) - Other creditors 100,000 100,000 11. LOANS An analysis of the maturity of loans is given below: 2021 £ Amounts falling due within one year on demand: Bank loans 390,000 Amounts falling due in more than five years: Repayable by instalments: Bank loans - 12. SECURED DEBTS The following secured debts are included within creditors: 2021 £ Bank loans 390,000 The mortgage is secured by way of a fixed and floating charge over the property. 13. MOVEMENT IN FUNDS Net At movement 1.11.20 in funds £ £ Unrestricted funds General fund 193,598 88,849 Restricted funds Outdoor office - 7,170 TOTAL FUNDS 193,598 96,019 |
2020 £ 40,000 1,300 13,893 |
|---|---|
| 55,193 | |
| 2020 £ 370,000 100,000 |
|
| 470,000 | |
| 2020 £ 40,000 |
|
| 370,000 2020 £ 410,000 |
|
| At 31.10.21 £ 282,447 7,170 |
|
| 289,617 |
continued...
Page 10
CHABAD LUBAVITCH OF NOTTINGHAM
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2021
13. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Meals for elderly Outdoor office TOTAL FUNDS |
Incoming resources £ 275,692 4,500 9,996 14,496 290,188 |
Resources Movement expended in funds £ £ (186,843) 88,849 (4,500) - (2,826) 7,170 (7,326) 7,170 (194,169) 96,019 |
|---|---|---|
Comparatives for movement in funds
| At 1.11.19 £ Unrestricted funds General fund 156,061 TOTAL FUNDS 156,061 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 201,540 TOTAL FUNDS 201,540 |
Net movement At in funds 31.10.20 £ £ 37,537 193,598 37,537 193,598 Resources Movement expended in funds £ £ (164,003) 37,537 (164,003) 37,537 |
|---|---|
continued...
Page 11
CHABAD LUBAVITCH OF NOTTINGHAM
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 October 2021
14. RELATED PARTY DISCLOSURES
There were no related party transactions during the year.
Page 12