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2020-12-31-accounts

Charity Registration No. 1147803

Company Registration No. 08051428 (England and Wales)

THE WESTERN CHARITABLE FOUNDATION

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr. H.C. Pasha Mr. D. I. Winton Mr. A.H. Yadgaroff Ms. S. J. Goodman Mr. C. B. E. Jaque Mr. P. M. Kremen Mr. P. Rayden Mr. M. A. Ziff Mr. M. Nisner Secretary Mr. A.H. Yadgaroff Charity number 1147803 Company number 08051428 Registered office Acre House 11-15 William Road London NW1 3ER United Kingdom Auditor HW Fisher LLP Acre House 11-15 William Road London NW1 3ER United Kingdom Bankers National Westminster Bank plc PO Box 414 38 Strand London WC2H 5JB United Kingdom

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of fnancial actvites 9
Balance sheet 10
Statement of cash fows 11
Notes to the fnancial statements 12 - 25

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the audited financial statements of the charity for the year ended 31st December 2020 which are also prepared to meet the requirements of a directors’ report and accounts for Companies Act purposes.

Structure, governance and management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 30th April 2012 and registered as a Charity on 22nd June 2012. The company was established under a Memorandum of Association which sets out the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

Background

The Charity was established for the purposes of assuming the functions of the Western Charitable Foundation (Registered Charity Number 1001847) and on 1st November 2012 took over the assets and liabilities of that charity.

Objects

The objects of the charity are:

Policy

The policy of the Foundation is the administration and maintenance of cemeteries at Bull Cross Ride Cheshunt, Rowan Road Streatham, Montagu Road Edmonton and Fulham Road Chelsea, and making grants to such other charitable activities as permitted by its objects as the Trustees consider appropriate from time to time.

Investment Policy

The trustees regularly review their investment strategy and have an agreed guideline for their investments. The objective is to receive an average investment return of 4% (above inflation) per annum in money terms over the longer term.

Organisation

There are nine trustees who are responsible for running the charity. Day to day running of the charity is delegated to the Management Committee which consists of the Chairman, Vice Chairman and Treasurer. Routine matters such as arranging funerals and upkeep of records are delegated to the office administration.

Directors and Trustees

The directors of the company are also charity trustees for the purpose of charity law and under the company’s articles are known as members.

The names of the trustees and officers who acted during the year and since the year end are:

H. C. Pasha (Chairman) D. I. Winton (Vice Chairman) A. H. Yadgaroff (Treasurer) S. Goodman C.B.E. Jaque P. Kremen

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

R. B. Mintz (Passed away 3[rd] March 2020) P. Rayden M. A. Ziff (WMAS Representative) M. Nisner (United Synagogue Representative)

Appointment of Trustees

The Articles provide for a minimum number of 5 and a maximum number of 15 trustees. One of the trustees so appointed shall be nominated by the United Synagogue.

The power of appointment of new or additional trustees is vested in the trustees for the time being of the charity. A trustee must be appointed by a resolution passed by two thirds of all the existing trustees at the time of the resolution.

Trustees Induction and Training

A new trustee would receive copies of the previous years’ annual reports and accounts and a copy of the Charity Commission leaflet ‘’ The Essential Trustee: What you need to know’’.

Key Management Personnel Remuneration

The trustees consider the Chairman and the executive secretary as comprising the key management personnel of the charity in charge of directing and controlling the day to day affairs of the charity.

All trustees give their time freely and no remuneration was paid to them in the year.

The pay of the executive secretary is reviewed annually. The remuneration set is fair and not out of line with that generally paid for similar roles. For further information, see note 22.

Trustees’ Indemnity

The company’s Articles of Association provide, subject to the provision of UK legislation, an indemnity for trustees and officers of the company in respect of liabilities they may incur in the discharge of their duties or in the exercise of their duties, or in the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against them which relate to anything done or omitted, or alleged to have been done or omitted, by them as officers of the company.

Appropriate trustees and officers liability insurance cover is in place in respect of all of the company’s directors.

Connected Organisations

There are no directly connected organisations. However, the Foundation co-operates with the following charitable burial societies and burial organisations which use the cemeteries which the Foundation maintains:

Burial Societies

The Assembly of Masorti Synagogues: New London Synagogue New North London Synagogue Association of Jewish Friendly Societies Chabad Lubavitch Centres Congregation of Jacob East London Central Synagogue Great Garden Street Synagogue Kehillat Ohel Avraham Sandys Row Synagogue Teesdale Street Synagogue The Settlement Synagogue Walford Road Synagogue West End Great Synagogue WMAS Funeral Expenses Scheme

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Burial Organisations Jewish Joint Burial Society Liberal Judaism Woodford Forest United

Review of Activities

The activities of the charitable company continue to be the advancement of the Jewish Religion in particular by the provision, maintenance and administration of Jewish Cemeteries and the provision of assistance to any Burial society for the burial of persons of the Jewish faith.

The trustees continue to keep under review the need for maintenance of the cemeteries, performance against objectives set and the need to acquire land for future burials. During the period the trustees continued the comprehensive maintenance programme at all of the cemeteries. There was no need, at this time, to purchase additional burial land or to make any changes to the way it carries out its activities.

The trustees are satisfied that the expenditure incurred helped to support its key objectives in maintaining the high standard of its cemeteries.

The Investment committee continues to review the investment portfolio and implement their recommendations. The Western Charitable Foundation performance is benchmarked against the ARC Charities Indices.

Statement of Disclosure to our Auditors

In so far as the trustees are aware:

Public Benefit

The charity achieves its general aims by maintaining Jewish cemeteries and providing support to the Western Marble Arch Synagogue. The trustees have complied with their duty under section 17(5) of the Charities Act 2011 to have due regard to the public benefit requirement. The trustees have also reviewed each grant payment during the year by reference to the Charity Commission guidance on “Charities and Public Benefit” issued by the charity commission.

Reserves

Total Reserves, as shown on the Balance Sheet, amount to £12,429,874 (2019: £12,071,725). Of these reserves, £3,912,431 (2019: £2,832,651) is invested in Tangible Fixed Assets and Heritage Assets leaving £8,517,443 (2019: £9,239,074) as free reserves.

Whilst the trustees from time to time make grants, considerable reserves have to be held for future expenditure on cemeteries and also to cover the long term burial liabilities as well as maintenance and renewal of its properties.

The Foundation’s investment policy is to hand over the management of funds into the hands of Professional Managers. The trustees consult with the Managers from time to time to discuss investment performance.

There is also a need to maintain cemeteries which are in effect closed for burial, and funds have to be held to cover such maintenance for perpetuity.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Risks

The biggest risk the Foundation faces is a major event resulting in a large increase in the number of burials. The trustees cater for the risk by maintaining sufficient reserves and obtain an actuarial report every 3 years to verify this. A further major risk is the age of the properties associated with the Foundation and the trustees ensure that adequate funds are maintained for the ongoing maintenance programme and any long term liabilities.

Going Concern and Covid-19

The Trustees have considered the effect of Covid-19 and what impact it has had, and may continue to have on the charity. The outbreak has not caused a significant disruption to the charity’s activities or financial position and the Trustees are satisfied that the charity can maintain its services.

Review of the Transactions and Financial Position

The overall movements in the year can be summarised as below:

Year ended 31st December
Donations received
Cemetery income and investment income
Other income
Total income
Expenditure
Net surplus before investment asset revaluations and burial liabilities
Increase in long term funeral liabilities
Surplus on revaluation of tangible fixed assets
Other gains and losses
Revaluation of investment assets (listed investments and property)
And net gains/(losses) on sale of investment assets
Net Surplus/ (Deficit for the year)
 2020
£

1,800
992,386

18,625
1,012,810

(1,197,572)
 2019
£
250
1,040,745
-
1,040,995
(679,091)
361,904
-
-
-
528,378
3,003
893,285
========


(184,762)
-
-
(2,892)
950,420
(404,617)
358,149

=======

The consulting actuary has advised that provided a margin of prudence is retained the invested assets will be sufficient to meet future burial liabilities.

In the course of the year, there were 290 (2019: 199) burials of which 203 (2019: 142) were in connection with the associated organisations and 87 (2019: 57) related to burial subscription members and paid funerals.

The trustees have no immediate plans to modify or radically change any of the objects, activities or policies described above.

Auditors

HW Fisher LLP were re-appointed as the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of The Western Charitable Foundation for the purposes of company law) 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).

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 charity and of the incoming resources and application of resources of the charitable company for that period. In preparing these financial statements, the trustees are required to:

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

On behalf of the board of trustees

H. C. Pasha

CHAIRMAN

Dated: 23/12/2021

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE WESTERN CHARITABLE FOUNDATION

Opinion

We have audited the financial statements of The Western Charitable Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including 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).

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.

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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:

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 directors' report included within the trustees' report.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE WESTERN CHARITABLE FOUNDATION

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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.

As part of our planning process;

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE WESTERN CHARITABLE FOUNDATION

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the those charged with governance of the entity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

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.

Gary Miller (Senior Statutory Auditor)

for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom

23 December 2021

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
funds funds
2020 2019
Notes £ £
Income and endowments from:
Donatons and legacies 3 1,800 250
Charitable actvites 4 664,206 620,320
Investments 5 328,179 420,425
Other income 6 18,625 -
Total income 1,012,810 1,040,995
Expenditure on:
Charitable actvites 7 1,197,572 679,091
Net gains/(losses) on investments 11 545,803 531,381
Net incoming resources 361,041 893,285
Other recognised gains and losses
Other gains or (losses) 12 (2,892) -
Net movement in funds 358,149 893,285
Fund balances at 1 January 2020 12,071,725 11,178,440
Fund balances at 31 December 2020 12,429,874 12,071,725

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
13
Heritage assets
14
Investment propertes
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total assets less current liabilites
Creditors: amounts falling due afer more than
one year
19
Provisions for liabilites
20
Net assets
Income funds
Unrestricted funds		 2020
£
162,640
2,490,035
2,652,675
(349,537)		 £
3,301,258
611,173
5,578,589
5,038,142
14,529,162
2,303,138
16,832,300
(408,402)
(3,994,024)
12,429,874
12,429,874
12,429,874		 2019
£
202,351
2,481,267
2,683,618
(224,558)		 £
2,221,478
611,173
4,814,307
5,992,465
13,639,423
2,459,060
16,098,483
(405,781)
(3,620,977)
12,071,725
12,071,725
12,071,725

The financial statements were approved by the Trustees on 23 December 2021

Mr. H.C. Pasha Mr. A.H. Yadgaroff Chairman Treasurer Company Registration No. 08051428

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Notes
£
Cash fows from operatng actvites
Cash generated from/(absorbed by) operatons
24
Investng actvites
Purchase of tangible fxed assets
(1,098,706)
Proceeds on disposal of investment property
222,470
Proceeds on disposal of subsidiaries
(1)
Purchase of other investments
(2,100,742)
Proceeds on disposal of other investments
2,614,117
Investment income received
328,179
Net cash used in investng actvites
Net cash used in fnancing actvites
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2019
£
£
£
43,451
(120,977)
-
-
-
(1,486,529)
64,224
420,425
(34,683)
(1,001,880)
-
-
8,768
(1,122,857)
2,481,267
3,604,124
2,490,035
2,481,267

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Western Charitable Foundation is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom.

The liability of each member in the event of winding up is limited to £10.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of cemetries, investments and investment properties at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees have considered the effect of the Covid-19 outbreak on charitable activities. The Trustees consider that the outbreak is unlikely to cause a significant disruption to the charity or financial position and are confident that the charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. The charity has no designated or restricted funds.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Burial subscription income is recognised when the fair value of consideration is received or receivable from the the members of the burial societies for cemetery services.

Rental income is recognised on a receivable basis.

Donations are recognised when the communication has been received in writing with notification of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfillment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Dividends are recognised once then dividend has been declared and notification has been received of the dividend due.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure.

Expenditure is accounted for on an accruals basis and has been classified in full to the one charitable activity of provision for burial services. This expenditure includes both direct costs and those of an indirect nature (support and governance costs).

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Grants payable are payments made to third parties in the furtherance of the charitable objectives. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one year or multi-year grant.

Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside the control of the charity.

Support costs are those functions that assist the work of the charity but do not directly undertake the charitable activities. These costs include back office, finance, personnel, payroll and governance.

Governance costs include the costs associated with meeting the constitutional and statutory requirements of the charity, including audit fees.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Cemeteries On the basis of the number of burial spaces used in the year Plant and equipment On 20% reducing balance basis Freehold property 2% of property value

Freehold land (excluding cemetery land) and the Western Judaica Collection (heritage assets) are not depreciated.

1.7 Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposal throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investment are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year ended and their opening value on the first day of the financial year. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.8 Heritage assets

Heritage assets were originally recognised in the accounts at professional valuation. There is no prescribed minimum period between valuations. However, the Trustee’s are of the opinion that the cost to continue to professionally value the heritage assets is not justifiable by the usefulness of the information to the users of the accounts especially as these assets are unlikely to be disposed of. The Trustees will continue to review the value of these assets and make an adjustment to their carrying value as appropriate.

The charity keeps detailed records of individual items which are held under secure environment. Access to the assets is restricted and regular physical checks are carried out.

1.9 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.11 Financial instruments

The Charity has elected to apply the provision of section 11 'basic financial instruments' and section 12 'other financial investments' of FRS 102 to all of its financial instruments.

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15 Provision for future funeral costs The provision for future funeral costs is based on an external actuarial report assessing the present value of future funeral costs less the present value of future contributions. See note 19 for further information.

It is the policy of the trustees to obtain an updated actuarial report on a triennial basis. The last actuarial valuation was undertaken on 1 January 2019. In the intervening period, the Trustees review the valuation to assess whether it has materially changed.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of heritage assets

Please refer to note 14 for the basis of valuation of the different heritage assets.

Valuation of investment properties

Determining the fair value of the Charity's investment properties as at each balance sheet date involves an element of estimation due to the nature of the properties. The Trustees manage the resulting estimation uncertainty by reviewing properties on an individual basis, referring to available market evidence and obtaining professional valuations where appropriate.

Provision for future funeral costs

The provision for future funeral costs of £3,994,024 is based upon an actuarial report using an assumption that future income from members' contributions increases annually in line with inflation. The report sets out the position at 1 January 2019. The Trustees have reviewed the valuation and considered an increased was necessary of the amount of £373,047.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donatons and gifs 1,800 250
4 Charitable actvites
2020 2019
£ £
Cemetery revenue 664,206 620,320

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Rental income 226,338 219,276
Investments listed on Stock Exchange 100,849 186,529
Interest receivable 992 14,620
328,179 420,425
6 Other income
Unrestricted Total
funds
2020 2019
£ £
CJRS income 18,625 -

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

7 Charitable activities

Staf costs
Funeral costs
Repairs and renewals
Cleaning
Light and heat
Rates
Telephone
Insurance
Motor and travel
Advertsing
Increase in actuarial provision
for future long-term funeral
liabilites
Grant funding of actvites (see
note 8)
Share of support costs (see
note 9)
Share of governance costs (see
note 9)		 Cemetery
Costs		 Religious
Actvites
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
207,032
-
-
207,032		 Total
2020
£
204,783
74,641
95,705
4,679
24,781
18,085
5,311
11,044
1,045
1,038
373,047
814,159
207,032
148,675
27,706
1,197,572		 Cemetery
Costs		 Religious
Actvites
2019
£
-
-
-
-
-
-
-
-
-
-
-
-
85,516
-
-
85,516		 Total
2019
£
202,612
66,289
102,100
4,679
11,166
17,843
4,984
7,207
480
500
-
2020
£
204,783
74,641
95,705
4,679
24,781
18,085
5,311
11,044
1,045
1,038
373,047
814,159
-
148,675
27,706
990,540		 2019
£
202,612
66,289
102,100
4,679
11,166
17,843
4,984
7,207
480
500
-
417,860
-
144,395
31,320
593,575
417,860
85,516
144,395
31,320
679,091

8 Grants payable

Grants to institutions: Western Marble Arch Synagogue Chief Rabbinate 2019 (United Synagogue)

Religious
Actvites		 Religious
Actvites
2020
£
207,032
-
207,032		 2019
£
73,016
12,500
85,516

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

(Continued)

The accounts of The Western Marble Arch Synagogue for the year ended 31 December 2020 confirm donations received from The Western Charitable Foundation of £207,032 (2019: £73,016) as above.

The total grants made to Western Marble Arch Synagogue by the company and its unincorporated predecessor up to 31 December 2020 amount to £2,538,918 (2019: £2,331,886).

9 Support costs

Support costs
Governance
costs
£
£
Staf costs
94,708
-
Depreciaton
18,926
-
Bank charges
1,490
-
Printng, postage, statonery
and computer requisites
6,618
-
General expenses
5,624
-
Professional fees
20,290
-
Insurance
1,019
-
Property maintenance
expenses
-
-
Audit fees
-
8,266
Accountancy
-
19,440
148,675
27,706
Analysed between
Charitable actvites
148,675
27,706		 2020
Support costs
Governance
costs
£
£
£
94,708
95,002
-
18,926
17,356
-
1,490
1,700
-
6,618
4,609
-
5,624
483
-
20,290
20,963
-
1,019
963
-
-
3,319
-
8,266
-
11,880
19,440
-
19,440
176,381
144,395
31,320
176,381
144,395
31,320		 2019
£
95,002
17,356
1,700
4,609
483
20,963
963
3,319
11,880
19,440
175,715
175,715

Governance costs includes payments to the auditors of £8,266 (2019: £11,880) for audit fees. Other fees paid to the auditors totalled £19,440 (2019: £19,440), including VAT.

10 Employees

The average monthly number of employees during the year was:

Charitable actvites
Administraton
Total		 2020
Number
7
2
9		 2019
Number
9
2
11

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Contnued)
2020
2019
£
£
267,030
271,601
27,225
22,439
5,236
3,574
299,491
297,614		 (Contnued)
2020
2019
£
£
267,030
271,601
27,225
22,439
5,236
3,574
299,491
297,614
297,614

There were no employees whose annual remuneration was £60,000 or more.

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluaton of investments 950,420 528,378
Gain/(loss) on sale of investments (591,369) 3,003
Gain/(loss) on sale of investment propertes 186,752 -
545,803 531,381
Other gains or losses
Unrestricted Total
funds
2020 2019
£ £
Foreign exchange (loss) (2,892) -

12 Other gains or losses

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

13
Tangible fxed assets
Cost or valuaton
At 1 January 2020
Additons
At 31 December 2020
Depreciaton and impairment
At 1 January 2020
Depreciaton charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Cemeteries
£
2,400,266
-
2,400,266
367,051
13,300
380,351
2,019,915
2,033,215		 Freehold
property
£
221,484
1,098,706
1,320,190
43,430
3,000
46,430
1,273,760
178,054		 Plant and
equipment
£
94,517
-
94,517
84,308
2,626
86,934
7,583
10,209		 Total
£
2,716,267
1,098,706
3,814,973
494,789
18,926
513,715
3,301,258
2,221,478

The "Cemeteries" category above comprises some freehold cemetery land which has restrictions upon its use. Because of these restrictions it is not possible for the trustees to determine its market value and as such, this land is stated at cost. This category also comprises burial land which is in use and is stated at a trustees' valuation at 25th November 1991 with subsequent additions at cost, subject to revaluations at 31st October 1999, 31st October 2005 and 31st December 2015.

This category also comprises a car park, prayer halls and residence which are held at cost. The residences at Cheshunt and Edmonton form part of those cemeteries. The residence at the Streatham cemetery is a stand alone freehold.

Also included within Cemeteries is burial land, not currently in use. This land is stated at its cost.

The Foundation has granted a burial organisation an option to purchase land in a specified area in the event of the sale of that land.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Heritage assets The Western Judaica Collection

Heritage assets
The Western Judaica Collecton
Silverware etc.
Torah scrolls
Stained glass
windows
£
£
£
At 1 January 2020
276,173
135,000
200,000
At 31 December 2020
276,173
135,000
200,000		 Total
£
611,173
611,173

The charity has for many years held assets of historical and cultural importance as The Western Judaica Collection. These assets comprise scrolls, silverware, artwork and other artefacts. A pair of rimonim (Torah finials) are on loan to the Jewish Museum. The remainder of the Western Judaica Collection is on loan to the Western Marble Arch Synagogue.

These assets are considered to be heritage assets.

The valuation of silverware, artwork and other artefacts is based on open market valuation of these assets from third party valuers, who are not connected with the charity. The scrolls have been based on a trustee valuation. The stained glass windows are also at Trustees' valuation. The Trustees are not aware of any other material changes to these heritage assets since the last valuation.

There were no sales or purchases of heritage assets during the year.

15 Investment property

Investment property
Fair value
At 1 January 2020
Disposals
Net gains or losses through fair value adjustments
At 31 December 2020		 2020
£
4,814,307
(35,718)
800,000
5,578,589

The fair value of the property that comprises the largest part of investment property as at 1 January 2019 was arrived at initially on the basis of a valuation carried out on 7 May 2013 by a firm of RICS Registered valuers (who were not connected with the charity). The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Trustees subsequently reviewed this valuation at 31 December 2018. In addition, the balance of the investment property was also revalued by the trustees as at that date giving a total of £4,814,307. The Trustees have further reviewed the investment property portfolio and in their opinion there has a been a further increase in value of £800,000 in respect of the year ended 31 December 2020.

If the investment property had not been revalued, the historical cost of the property would be £1,001,363.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16
Fixed asset investments
Cost or valuaton
At 1 January 2020
Additons
Valuaton changes
Disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
Other investments comprise:
Notes
Investments in subsidiaries
23
17
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Other taxaton and social security
Trade creditors
Other creditors
Accruals and deferred income		 Listed investments
£
5,992,465
2,100,742
(440,843)
(2,614,223)
5,038,141
5,038,141
5,992,465
2020
2019
£
£
1
-
2020
2019
£
£
149,760
191,434
300
300
12,580
10,617
162,640
202,351
2020
2019
£
£
5,958
9,420
39,248
2,587
219,561
140,622
84,770
71,929
349,537
224,558		 Listed investments
£
5,992,465
2,100,742
(440,843)
(2,614,223)
5,038,141
5,038,141
5,992,465
2020
2019
£
£
1
-
2020
2019
£
£
149,760
191,434
300
300
12,580
10,617
162,640
202,351
2020
2019
£
£
5,958
9,420
39,248
2,587
219,561
140,622
84,770
71,929
349,537
224,558
5,038,141
5,038,141
5,992,465
2019
£
-
2019
£
191,434
300
10,617
202,351
2019
£
9,420
2,587
140,622
71,929
224,558

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Creditors: amounts falling due after more than one year

19
Creditors: amounts falling due afer more than one year
Other creditors
20
Provisions for liabilites
Provision for future funeral costs
Movements on provisions:
At 1 January 2020
Additonal provisions in the year
At 31 December 2020		 2020
2019
£
£
408,402
405,781
2020
2019
£
£
3,994,024
3,620,977
Provision for
future funeral
costs
£
3,620,977
373,047
3,994,024		 2019
£
405,781
2019
£
3,620,977
3,994,024

As at 31 December 2020, the Foundation is responsible for the burial in future of 3,038 subscription members of which 1,086 were men, 1,304 women and 648 children. The last actuarial report as at 1st January 2019, estimated that the average cost of a burial is £4,855. The actuaries recommended that the subscriptions be increased and reviewed from time to time.

The report also assessed the present value of future funeral costs less the present value of future contributions at 1 January 2019 as £3,620,977. In order to ensure that sufficient funds are available for future burials, the trustees have made a provision for this amount in these accounts. An additional provision of £373,047 is required as at 31 December 2020.

It is estimated that, at the Balance Sheet date, there were 16,519 unallocated plots, as well as 390 reserved plots at Cheshunt, and 493 unallocated plots, as well as 57 reserved plots at Edmonton and 56 unallocated plots, as well as 20 reserved plots at Streatham. Additionally there were 23,656 plots at land adjoining Cheshunt Cemetery.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

21 Operating lease commitments

Lessor

The operating lease represents income from a third party tenant of £13,637,529. The lease has a remaining 38 years to run (ending on 29/09/57) and rental is increased by a fixed percentage over the duration of the lease.

At the reporting end date the charity had contracted with its tenant for the following minimum lease income receipts (due to the charity):

Within one year
Between two and fve years
In over fve years		 2020
£
230,653
981,734
12,425,142
13,637,529		 2019
£
225,026
957,789
12,679,739
13,862,554

22 Related party transactions

The charity considers J. Grossman (2019: J Grossman), who undertakes the role of executive secretary, to be part of key management personnel. The total employment benefits paid to J. Grossman were £45,865 (2019 : £45,326).

The company is controlled by its members, all of whom are trustees of the charity. None of the Trustees (or any) persons connected to them) received any remuneration or benefits from the charity during the year.

Purchase of a residential property

On 19 November 2020, the charity entered in to an agreement to purchase a residential property in Israel for occupation by a long serving former employee of The Western Marble Arch Synagogue, in lieu of a pension provision. (As explained in the trustees' report, on page one above, one of the objects of the charity is to support The Western Marble Arch Synagogue.) The property will be occupied by the former employee and spouse until the death of the surviving spouse, or until they choose to vacate. At that time, their rights of occupation will terminate and vacant possession will revert to the charity. The former employee has agreed to carry out essential works to the property, and to pay the annual outgoings and service charges.

The purchase price of the property is £1.095m of which the charity has provided £1m plus associated purchase expenses of circa £70,000. The balance of the purchase price and the cost of the essential works have been contributed to by the former employee out of personal funds, by way of a loan to the charity, which will be repaid to the surviving spouse or their estate according to a formula when the property is handed back to the charity. The trustees have been advised by their Israeli lawyers that these arrangements do not give the occupiers any ownership rights in the property. They have also advised that completion had taken place by 31 December 2020.

A survey and valuation of the property were carried out for the trustees. Although the primary purpose of the transaction was to provide accommodation for the former employee, and not as an investment, the trustees are satisfied on professional advice that the purchase is a good investment in the wider sense; for example that the property will be free from unusual restrictions on resale, free from burdensome outgoings, resaleable and likely to show reasonable capital appreciation over the longer term.

The advance consent of the Charity Commission was sought for this transaction, and full details were supplied to it; on 28 October 2020 the Charity Commission made an order under s105 of the Charities Act 2011 authorising the trustees to purchase the property on the terms summarised in this note.

THE WESTERN CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

23 Subsidiaries

A fully owned subsidiary, 1 Wallenberg Place Limited which has its registered office at Acre House, 11/15 William Road, London, United Kingdom, NW1 3ER. The company is a non trading company and has been excluded from consolidation because the company has been dormant throughout the period. No amount was owed by the subsidiary to the parent at the year end (2019: £nil).

24
Cash generated from operatons
2020
2019
£
£
Surplus for the year
361,041
893,285
Adjustments for:
Investment income recognised in statement of fnancial actvites
(328,179)
(420,425)
Foreign exchange diferences
(2,892)
-
Gain on disposal of investment property
(186,752)
-
Loss/(gain) on disposal of investments
591,369
(3,003)
Fair value gains and losses on investments
(950,420)
(528,378)
Depreciaton and impairment of tangible fxed assets
18,926
17,356
Movements in working capital:
Decrease/(increase) in debtors
39,711
(75,350)
Increase/(decrease) in creditors
127,600
(4,462)
(Decrease) in provisions
373,047
-
Cash generated from/(absorbed by) operatons
43,451
(120,977)
25
Analysis of changes in net funds
The charity had no debt during the year.		 24
Cash generated from operatons
2020
2019
£
£
Surplus for the year
361,041
893,285
Adjustments for:
Investment income recognised in statement of fnancial actvites
(328,179)
(420,425)
Foreign exchange diferences
(2,892)
-
Gain on disposal of investment property
(186,752)
-
Loss/(gain) on disposal of investments
591,369
(3,003)
Fair value gains and losses on investments
(950,420)
(528,378)
Depreciaton and impairment of tangible fxed assets
18,926
17,356
Movements in working capital:
Decrease/(increase) in debtors
39,711
(75,350)
Increase/(decrease) in creditors
127,600
(4,462)
(Decrease) in provisions
373,047
-
Cash generated from/(absorbed by) operatons
43,451
(120,977)
25
Analysis of changes in net funds
The charity had no debt during the year.		 24
Cash generated from operatons
2020
2019
£
£
Surplus for the year
361,041
893,285
Adjustments for:
Investment income recognised in statement of fnancial actvites
(328,179)
(420,425)
Foreign exchange diferences
(2,892)
-
Gain on disposal of investment property
(186,752)
-
Loss/(gain) on disposal of investments
591,369
(3,003)
Fair value gains and losses on investments
(950,420)
(528,378)
Depreciaton and impairment of tangible fxed assets
18,926
17,356
Movements in working capital:
Decrease/(increase) in debtors
39,711
(75,350)
Increase/(decrease) in creditors
127,600
(4,462)
(Decrease) in provisions
373,047
-
Cash generated from/(absorbed by) operatons
43,451
(120,977)
25
Analysis of changes in net funds
The charity had no debt during the year.