DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **REGISTERED COMPANY NUMBER: 07961026 (England and Wales) REGISTERED CHARITY NUMBER: 1146332** ## **REPORT OF THE TRUSTEES AND** **AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **FOR** **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021** |||**Page**|| |---|---|---|---| |**Report of the Trustees**|1|to|4| |**Report of the Independent Auditors**|5|to|6| |**Statement of Financial Activities**||7|| |**Balance Sheet**||8|| |**Cash Flow Statement**||9|| |**Notes to the Cash Flow Statement**||10|| |**Notes to the Financial Statements**|11|to|18| DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28 FEBRUARY 2021** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28 February 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** a) The advancement of the Jewish faith in central London, particularly in Belgravia, Mayfair, Kensington, Chelsea and Holland Park through the provision of adult and youth education and the provision of synagogue services and communal activities. b) The relief of those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage through the provision of financial support and co-ordination of practical and emotional support. c) The promotion of such other purposes being exclusively charitable according to the law of England and Wales as the trustees may from time to time determine. ## **Public benefit** The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aim and objectives and in planning the charity's future activities. The aims of the charity for the public benefit are detailed in the 'Objectives and Aims' section of this report and the main activities undertaken in order to carry out the charity's aims for the public benefit are outlined under 'Achievements and Performance' below. ## **STRATEGIC REPORT** ## **Achievement and performance** ## **Charitable activities** The charity operates a community centre in Central London in which it provides a wide range of activities including educational programmes for adults and youth, for families and individuals with the aim of making these activities attractive and inviting to all irrespective of their level of religious observance and affiliation. In addition, the charity provides and facilitates Sabbath and Festival services for all ages. As with our educational programmes and activities, these services are available to all irrespective of age, background, religious observance or financial ability. The charity's educational programmes together with our warm and inviting Sabbath and Festival services and meals all contribute towards our main object of the advancement of the Jewish Faith in Central London. Our aim is to continue to widen our activities to as many people as possible and to provide our educational programmes in a way that encourages and enthuses people to explore their Jewish heritage and to achieve a deeper understanding and observance of their faith. The charity has approximately 120 young students enrolled in our weekly Sunday classes. We also provide individual tuition to an average of 25 girls and boys a year in preparation for their Bat and Bar Mitzvah's (religious confirmations). Programmes of activities and education are attended by some 125 adults weekly. In addition, guest speakers are arranged 8 - 10 times a year with an average attendance of 100 adults. The weekly Sabbath services are attended by an average of 125 people with over 600 adults and 160 children attending over the High Holiday period. Page 1 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **STRATEGIC REPORT** ## **Achievement and performance** ## **Response to Covid-19** Since the outbreak of the Covid-19 pandemic, the charity has been busier than ever ensuring the emotional, physical and spiritual well being of our community. The charity's activities as a response to the pandemic includes running over 200 online events, providing humanitarian services to the vulnerable and needy including deliveries of medical and essential groceries, providing over 5,000 Jewish Holiday and Shabbat care packages and essential kits, countless phone calls and online web meetings to the lonely and needy, shown solidarity and support to ten local hospitals, the Israeli Embassy, nursing homes, homeless shelters and the police force. Following the year end and the lifting of restrictions, the charity resumed in-person Shabbat, Festival, educational and lifecycle events and services, all in accordance with the Covid guidelines. The coronavirus outbreak and subsequent lockdowns presented the charity with many financial challenges due to the reduction of outreach events and activities. However, the charity is immensely grateful to the generous donors and benefactors who assisted and increased their donations over the past year. As a result of the increased fundraising activities, the charity's incoming resources have not been materially affected by the Covid-19 pandemic ## **Financial review** ## **Investment policy and objectives** Under its Memorandum of Association the charity has power to invest in any way the trustees wish. ## **Reserves policy** The trustees have reviewed the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on activities and receiving resources through voluntary donations. The trustees consider that the ideal level of these reserves as at 28 February 2021 would be three months of resources expended which equates to £281,457. As at 28 February 2021, the charity has total unrestricted funds of £2,405,856 (2020: £1,946,464) and endowment funds of £2,370,000 (2020: 1,100,000). Included in unrestricted funds is £2,000,000 of Designated funds set aside for upcoming projects and the expansion of the charity including Rabbinical assistance and a building project. Consequently, the charity has free reserves of £405,856 (2020: £446,464) after making allowance for the Designated funds. The trustees are actively pursuing sources of funding in order to ensure that there are sufficient reserves to continue to provide financial stability and flexibility. ## **Going concern** There are no material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern. ## **Principal risks and uncertainties** The main risk faced by the charity especially in uncertain economic times is a decline in fundraising and donations. In common with many charities we are highly dependent on (and thankful to) our many donors and supporters. We continue to explore ways of widening our fundraising base and have developed a reserves policy to help cushion any short-term fundraising shortfall. ## **Future plans** The future plans of the charity are to continue its charitable aims, whilst ensuring that the ability to generate sufficient income is maintained to achieve that end. The trustees are continuously considering measures to ensure the financial stability of the charity for future periods. In 2020 the trustees successfully set up an endowment fund for the charity. As at 28 February 2021 the charity has received £2,370,000 for this fund. The charity is looking to increase its endowment fund to further provide ongoing financial support and stability. The charity is also looking at measures to increase income and reduce operating expenses through the acquisition of capital assets. Page 2 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The Chabad Jewish Community Of Central London is a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association. ## **Recruitment and appointment of new trustees** The Articles of Association stipulate that there must be a minimum of three trustees and there is no maximum number of trustees. All trustees must be members of the charitable company. Additional trustees may be appointed by the existing trustees at any time, either to fill a casual vacancy or as an addition to the existing trustees. Any trustees so appointed will hold office only until the next Annual General Meeting and will then be eligible for re-election. No trustee had any beneficial interest in any contract with the charitable company during the year. Potential trustees are invited to informally attend trustee meetings prior to appointment and a comprehensive induction programme is available. Additionally, individual trustees may undertake external training in a particular area of their role on the Governing Body. The charity's Principal is Rabbi Mendel Kalmenson. Rabbi Mendel is a dynamic and enthusiastic leader who is the key to the success of the many programmes we have implemented. ## **Organisational structure** The board of trustees administers the charity. The day to day management of The Chabad Jewish Community Of Central London is delegated by the trustees to the Principal. ## **Induction and training of new trustees** The charitable company strives to ensure equal opportunities and diversity in both the employment of staff and trustee appointments. Selection criteria and procedures are regularly reviewed to ensure that individuals are selected, promoted and treated on the basis of their relevant merits and abilities. ## **Wider network** At present The Chabad Jewish Community Of Central London does not consider itself part of a wider network. ## **Related parties** The Chabad Jewish Community Of Central London has no tied organisations or companies. ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Registered Company number** 07961026 (England and Wales) ## **Registered Charity number** 1146332 ## **Registered office** 105 Eade Road Occ Building A 2nd Floor, Unit 11a London N4 1TJ ## **Principal address** 10 Grosvenor Place London SW1X 7HH Page 3 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **Trustees** Dr M G Glaser Mr G Mimoun Mr R Rackind ## **Auditors** Glazers Chartered Accountants 843 Finchley Road London NW11 8NA ## **Accountants** DAS Accounting Services Ltd 105 Eade Road Occ Building A 2nd Floor, Unit 11a London N4 1TJ ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees (who are also the directors of The Chabad Jewish Community Of Central London for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## **AUDITORS** The auditors, Glazers Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 13 December 2021 and signed on the board's behalf by: Mr R Rackind - Trustee Page 4 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **Opinion** We have audited the financial statements of The Chabad Jewish Community Of Central London (the 'charitable company') for the year ended 28 February 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 28 February 2021 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; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 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. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 5 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our 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 a Report of the Independent Auditors 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. 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 Independent Auditors. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Philippe Herszaft ACA (Senior Statutory Auditor) for and on behalf of Glazers Chartered Accountants 843 Finchley Road London NW11 8NA 13 December 2021 Page 6 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28 FEBRUARY 2021** |**Notes**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
4
Education and outreach activities
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
5
Education and outreach activities
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**£**
1,492,758
100,527
1,593,285
12,000
1,121,893
1,133,893
459,392
1,946,464
2,405,856|**Endowment**
**fund**
**£**
1,270,000
-
1,270,000
-
-
-
1,270,000
1,100,000
2,370,000|**2021**
**Total**
**funds**
**£**
2,762,758
100,527
2,863,285
12,000
1,121,893
1,133,893
1,729,392
3,046,464
4,775,856|**2020**
**Total**
**funds**
**£**
2,353,971
153,639
2,507,610
94,792
1,134,958
1,229,750
1,277,860
1,768,604
3,046,464| |---|---|---|---|---| The notes form part of these financial statements Page 7 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **BALANCE SHEET 28 FEBRUARY 2021** |**Notes**
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Debtors
12
Cash at bank
**CREDITORS**
Amounts falling due within one year
13
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
15
Unrestricted funds:
General fund
Designated funds
Endowment funds:
Endowment fund
**TOTAL FUNDS**|**Unrestricted**
**funds**
**£**
9,854
268,592
2,260,506
2,529,098
(133,096)
2,396,002
2,405,856
2,405,856|**Endowment**
**fund**
**£**
-
-
2,370,000
2,370,000
-
2,370,000
2,370,000
2,370,000|**2021**
**Total**
**funds**
**£**
9,854
268,592
4,630,506
4,899,098
(133,096)
4,766,002
4,775,856
4,775,856
405,856
2,000,000
2,405,856
2,370,000
4,775,856|**2020**
**Total**
**funds**
**£**
15,624
244,847
2,858,711
3,103,558
(72,718)
3,030,840
3,046,464
3,046,464
446,464
1,500,000
1,946,464
1,100,000
3,046,464| |---|---|---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 13 December 2021 and were signed on its behalf by: Mr R Rackind - Trustee The notes form part of these financial statements Page 8 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021** |**Notes**
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Net cash used in investing activities
**Cash flows from financing activities**
Income attributable to endowment
Net cash provided by financing activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning of**
**the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|**2021**
**£**
512,155
(8,063)
504,092
(2,297)
(2,297)
1,270,000
1,270,000
1,771,795
2,858,711
4,630,506|**2020**
**£**
209,675
(5,629)
204,046
(16,853)
(16,853)
1,100,000
1,100,000
1,287,193
1,571,518
2,858,711| |---|---|---| The notes form part of these financial statements Page 9 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL** ## **LONDON** ## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Depreciation charges
Interest paid
Income attributable to endowment
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operations**
**ANALYSIS OF CHANGES IN NET FUNDS**
**At 1.3.20**
**£**
**Net cash**
Cash at bank
2,858,711
2,858,711
**Total**
2,858,711|**2021**
**£**
1,729,392
8,067
8,063
(1,270,000)
(23,745)
60,378
512,155
**Cash flow**
**£**
1,771,795
1,771,795
1,771,795|**2020**
**£**
1,277,860
22,517
5,629
(1,100,000)
40,943
(37,274)
209,675
**At 28.2.21**
**£**
4,630,506
4,630,506
4,630,506| |---|---|---| ## 2. **ANALYSIS OF CHANGES IN NET FUNDS** The notes form part of these financial statements Page 10 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **1. GENERAL INFORMATION** The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 105 Eade Road, Occ Building A, 2nd Floor, Unit 11a, London, N4 1TJ. ## **2. 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. ## **Critical accounting judgements and key sources of estimation uncertainty** In the application of the charity's accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below. ## **Income** Income is recognised in the Statement of Financial Activities once the charity is legally entitled to the funds after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. ## **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. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **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. continued... Page 11 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **2. ACCOUNTING POLICIES - continued** ## **Governance costs** Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit 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 staff time where appropriate. ## **Tangible fixed assets** Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Improvements to property - over the period of the lease Fixtures and fittings - 25% on cost Computer equipment - 25% on cost ## **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. ## **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. Designated Funds are Unrestricted Funds, which have been set aside at the discretion of the trustees for specific purposes as noted below. 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. ## **Designated Funds** The charity has committed itself to various long-term charitable projects and transfers are made to Designated Funds in accordance with the anticipated expenditure in respect of each individual project. ## **Financial instruments** Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. ## **Basic financial instruments** Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition, trade and other debtors that are classified as receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be received net of impairment. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition trade and other creditors that are classified as payable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid. continued... Page 12 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **2. ACCOUNTING POLICIES - continued** ## **Financial instruments** Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the charity's cash management are included as a component of cash and cash equivalents for the purpose of the cash flow statement only. ## **3. DONATIONS AND LEGACIES** ## **4.** |**2021**
**£**
Donations
2,695,146
Grants
67,612
Event/Function income
-
2,762,758
Donations include amounts of £16,260 (2020: ££27,988) received from the charity's trustees.
Grants received, included in the above, are as follows:
**2021**
**£**
CST - Security
2,996
Government and local council Covid-19 support
64,616
67,612
**INCOME FROM CHARITABLE ACTIVITIES**
**2021**
**Activity**
**£**
Education and outreach events
income
Education and outreach activities
24,772
School fees
Education and outreach activities
75,755
100,527|**2020**
**£**
2,343,260
2,961
7,750
2,353,971
**2020**
**£**
2,961
-
2,961
**2020**
**£**
39,469
114,170
153,639| |---|---| continued... Page 13 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **5. CHARITABLE ACTIVITIES COSTS** ## **6.** |Education and outreach activities
**GRANTS PAYABLE**
Education and outreach activities
The total grants paid to institutions during the year was
Grants to charitable institutions|**Direct**
**Costs**
**£**
818,634
as follows:|**Grant**
**funding of**
**activities**
**(see note**
**6)**
**£**
118,447||**Support**
**costs (see**
**note 7)**
**£**
184,812
**2021**
**£**
118,447
**2021**
**£**
47,865|**Totals**
**£**
1,121,893
**2020**
**£**
-
**2020**
**£**
-| |---|---|---|---|---|---| All grants paid to institutions went towards one of the following purposes: the relief of poverty, advancement of Jewish religion and advancement of Jewish education. The following grants to institutions were paid during the year: |Achisomoch Aid Company
Chabad Lubavitch UK
Less than £2,000|**£**
22,500
12,000
8,365
47,865| |---|---| |The total grants paid to individuals during the year was as follows:
**2021**
**£**
Social Service/Benevolence grants
70,582|**2020**
**£**
-| All grants paid to individuals went towards one of the following purposes: the relief of poverty, advancement of Jewish religion and advancement of Jewish education. continued... Page 14 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **7. SUPPORT COSTS** **----- Start of picture text -----**
|||||| |---|---|---|---|---| |Governance| |Management|Finance|costs|Totals| |£|£|£|£| |Education and outreach activities|144,667|3,680|36,465|184,812| **----- End of picture text -----**
## **8. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): **----- Start of picture text -----**
|||| |---|---|---| |2021|2020| |£|£| |Auditors' remuneration|2,100|2,100| |Depreciation - owned assets|8,067|22,518| **----- End of picture text -----**
## **9. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 28 February 2021 nor for the year ended 29 February 2020. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 28 February 2021 nor for the year ended 29 February 2020. ## **10. STAFF COSTS** **----- Start of picture text -----**
|||| |---|---|---| |2021|2020| |£|£| |Wages and salaries|228,936|254,839| |Social security costs|14,355|16,792| |243,291|271,631| |The average monthly number of employees during the year was as follows:| |2021|2020| |Full time staff|7|8| |Part time staff|8|17| |15|25| **----- End of picture text -----**
No employees received emoluments in excess of £60,000. ## **Key management personnel** Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £41,506. continued... Page 15 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E ## **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **11. TANGIBLE FIXED ASSETS** |**Improvements**
**to**
**property**
**£**
**COST**
At 1 March 2020
145,585
Additions
-
At 28 February 2021
145,585
**DEPRECIATION**
At 1 March 2020
145,585
Charge for year
-
At 28 February 2021
145,585
**NET BOOK VALUE**
At 28 February 2021
-
At 29 February 2020
-
**12.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income
**13.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income|**Fixtures**
**and**
**Computer**
**fittings**
**equipment**
**£**
**£**
80,739
10,759
-
2,297
80,739
13,056
66,651
9,223
6,440
1,627
73,091
10,850
7,648
2,206
14,088
1,536
**2021**
**£**
1,267
106,499
160,826
268,592
**2021**
**£**
100,075
127
5,120
27,774
133,096|**Totals**
**£**
237,083
2,297
239,380
221,459
8,067
229,526
9,854
15,624
**2020**
**£**
-
82,683
162,164
244,847
**2020**
**£**
2,866
-
7,695
62,157
72,718| |---|---|---| continued... Page 16 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **14. LEASING AGREEMENTS** Minimum lease payments under non-cancellable operating leases fall due as follows: |Within one year
Between one and five years|**2021**
**£**
244,583
510,417
755,000|**2020**
**£**
239,583
755,000
994,583| |---|---|---| ## **15. MOVEMENT IN FUNDS** |**At 1.3.20**
**£**
**Unrestricted funds**
General fund
446,464
Designated funds
1,500,000
1,946,464
**Endowment funds**
Endowment fund
1,100,000
**TOTAL FUNDS**
3,046,464
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Endowment funds**
Endowment fund
**TOTAL FUNDS**|**Net**
**movement**
**in funds**
**£**
459,392
-
459,392
1,270,000
1,729,392
**Incoming**
**resources**
**£**
1,593,285
1,270,000
2,863,285|**Transfers**
**between**
**funds**
**£**
(500,000)
500,000
-
-
-
**Resources**
**expended**
**£**
(1,133,893)
-
(1,133,893)|**At**
**28.2.21**
**£**
405,856
2,000,000
2,405,856
2,370,000
4,775,856
**Movement**
**in funds**
**£**
459,392
1,270,000
1,729,392| |---|---|---|---| continued... Page 17 DocuSign Envelope ID: 90B2DB0E-3865-477D-AE2C-E0E6A3DD5A65DocuSign Envelope ID: C43CA010-E339-445A-BF05-9C2360DF032E **THE CHABAD JEWISH COMMUNITY OF CENTRAL LONDON** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28 FEBRUARY 2021** ## **15. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**At 1.3.19**
**£**
**Unrestricted funds**
General fund
268,604
Designated funds
1,500,000
1,768,604
**Endowment funds**
Endowment fund
-
**TOTAL FUNDS**
1,768,604
Comparative net movement in funds, included in the above are as follows:
**Incoming**
**resources**
**£**
**Unrestricted funds**
General fund
1,407,610
**Endowment funds**
Endowment fund
1,100,000
**TOTAL FUNDS**
2,507,610|**Net**
**movement**
**in funds**
**£**
177,860
-
177,860
1,100,000
1,277,860
**Resources**
**expended**
**£**
(1,229,750)
-
(1,229,750)|**At**
**29.2.20**
**£**
446,464
1,500,000
1,946,464
1,100,000
3,046,464
**Movement**
**in funds**
**£**
177,860
1,100,000
1,277,860| |---|---|---| ## **16. RELATED PARTY DISCLOSURES** Other than elsewhere disclosed in the accounts, no related party transactions were undertaken that are required to be disclosed under FRS102. Page 18