**REGISTERED COMPANY NUMBER: 08542368 (England and Wales) REGISTERED CHARITY NUMBER: 1154533**
## **REPORT OF THE TRUSTEES AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **FOR**
## **CHABAD LUBAVITCH OF SOUTH LONDON**
Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
**CHABAD LUBAVITCH OF SOUTH LONDON**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|2|
|**Independent Examiner's Report**||3||
|**Statement of Financial Activities**||4||
|**Statement of Financial Position**|5|to|6|
|**Notes to the Financial Statements**|7|to|13|
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH 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 28th 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**
The charity's objects are specifically restricted to the following:
1. The advancement of the Orthodox Jewish religion in accordance with the principles of Chabad Lubavitch,
2. The advancement of Orthodox Jewish religion education and,
3. The relief of poverty, homelessness and financial crisis management.
## **Public benefit**
The benefits of the above activities afforded to the Jewish population of South London by the provision of the advancement of Orthodox Jewish religion and religious education in the education of a by and large completely ignorant Jewish community who have not been raised religiously and are not able to read Hebrew, find their way through Jewish prayer book, keep a kosher kitchen and observe all the rites and practices according to the Jewish code of law.
The education services offered to the local Jewish population are ny and large free, with some specialists lectures having a suggested voluntary donation. However, no one is refused from attending any lectures due to their not being able to pay. Whilst the above activities are offered in and focus primarily on the Jewish population of South London, it is not restricted as such, and anyone is invited to attend.
The object of the relief of poverty, homelessness and financial crisis management, again while being aimed primarily at the local Jewish population, is not restricted to those as such, and there have been instances where persons of a non-Jewish faith have received the same standard of care, warmth and counselling as their Jewish counterparts.
## **FINANCIAL REVIEW**
## **Reserves policy**
The charity's reserves policy is to maintain sufficient reserves to enable the charity to continue its activities and services at a meaningful level, should there be a drop in income. The trustees review this position on a regular basis.
In view of this the trustees aim to maintain a level of reserves sufficient to meet three months basic operating cost once the refurbishment of the Chabad House building project is completed.
The Statement of Financial Activities shows surplus for the year of £10,299 (2020 : £8,318).
Total funds as at 28th February 2021 stood at £426,435 of which £8,918 were restricted funds ( 2020 Total funds £416,136, of which restricted were £8,918).
The charity continued to embarked on a specific fundraising project namely the Refurbishment of the Chabad House at 42 St George's Road, Wimbledon, SW19 4ED.
## **Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. The trustees have considered the effect of the COVID-19 outbreak that has been spreading throughout the world in early 2020 on the Charity's activities. The assessment related to disruption that might be caused to the Charity's operations. At the date of approval of these financial statements, the trustees have assessed the extent and quantum of the disruption which remains uncertain at this time. The trustees have prepared cash flow forecasts and profit projections which demonstrate the charity can continue as a going concern.
## **FUTURE PLANS**
We are confident that our supporters will provide us with contributions at a level to support the objects of the charity.
Page 1
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a memorandum and articles of association, and constitutes a limited company , limited by guarantee, as defined by the Companies Act 2006.
## **Recruitment and appointment of new trustees**
All Directors of the company are also Trustees of the Charity, and there are no other Trustees. All of the Trustees named above served throughout the year. The Board has the power to appoint additional trustees as it considers fit to do so.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
08542368 (England and Wales)
## **Registered Charity number**
1154533
## **Registered office**
42 St George's Road Wimbledon London SW19 4ED
## **Trustees**
E Itzinger S Giffen M Zavdi D Duboy
## **Independent Examiner**
Akiva Kahan FCA ICAEW Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
Approved by order of the board of trustees on 24th November 2021 and signed on its behalf by:
D Duboy - Trustee
Page 2
**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHABAD LUBAVITCH OF SOUTH LONDON**
## **Independent examiner's report to the trustees of Chabad Lubavitch of South London ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 28th February 2021.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Akiva Kahan FCA ICAEW Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE
Date: 24 November 2021
Page 3
## **CHABAD LUBAVITCH OF SOUTH LONDON**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2021**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
35,732
**EXPENDITURE ON**
**Charitable activities**
3
Building repairs and refurbishment
2,776
Charitable activities
20,497
Depreciation
1,255
Governance
905
**Total**
25,433
**NET INCOME**
10,299
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
407,218
**TOTAL FUNDS CARRIED FORWARD**
417,517|Restricted
fund
£
-
-
-
-
-
-
-
8,918
8,918|2021
Total
funds
£
35,732
2,776
20,497
1,255
905
25,433
10,299
416,136
426,435|2020
Total
funds
£
30,465
10,490
10,077
735
845|
|---|---|---|---|
||||22,147|
||||8,318
407,818|
||||416,136|
The notes form part of these financial statements
Page 4
## **CHABAD LUBAVITCH OF SOUTH LONDON**
## **STATEMENT OF FINANCIAL POSITION 28TH FEBRUARY 2021**
|Notes
**FIXED ASSETS**
Tangible assets
7
**CURRENT ASSETS**
Cash at bank
**CREDITORS**
Amounts falling due within one year
8
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
9
**NET ASSETS**
**FUNDS**
11
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
772,853
10,163
(276,199)
(266,036)
506,817
(89,300)
417,517|Restricted
fund
£
-
8,918
-
8,918
8,918
-
8,918|2021
Total
funds
£
772,853
19,081
(276,199)
(257,118)
515,735
(89,300)
426,435
417,517
8,918
426,435|2020
Total
funds
£
771,294
10,265
(274,423)
(264,158)
507,136
(91,000)
416,136
407,218
8,918
416,136|
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 5
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **STATEMENT OF FINANCIAL POSITION - continued 28TH FEBRUARY 2021**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 24th November 2021 and were signed on its behalf by:
D Duboy - Trustee
The notes form part of these financial statements
Page 6
**CHABAD LUBAVITCH OF SOUTH LONDON**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance
## **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.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Financial instruments**
The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Page 7
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Financial instruments**
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
## Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.
## **2. DONATIONS AND LEGACIES**
## **3.**
|Donations
Gift aid
**CHARITABLE ACTIVITIES COSTS**
Building repairs and refurbishment
Charitable activities
Depreciation
Governance|Direct
Costs
£
-
18,230
-
-
18,230|2021
£
35,732
-
35,732
Support
costs
£
2,776
2,267
1,255
905
7,203|2020
£
30,433
32|
|---|---|---|---|
||||30,465|
||||Totals
£
2,776
20,497
1,255
905|
||||25,433|
## **4. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
|2021|2020|
|---|---|
|£|£|
|1,255|735|
Page 8
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **5. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 28th February 2021 nor for the year ended 29th February 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 28th February 2021 nor for the year ended 29th February 2020.
## **6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
30,465
**EXPENDITURE ON**
**Charitable activities**
Building repairs and refurbishment
10,490
Charitable activities
10,077
Depreciation
735
Governance
845
**Total**
22,147
**NET INCOME**
8,318
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
398,900
**TOTAL FUNDS CARRIED FORWARD**
407,218|Restricted
fund
£
-
-
-
-
-
-
-
8,918
8,918|Total
funds
£
30,465
10,490
10,077
735
845|
|---|---|---|
|||22,147|
|||8,318
407,818|
|||416,136|
Page 9
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **7. TANGIBLE FIXED ASSETS**
|Improvement
to
leasehold
prope rty
£
**COST**
At 1st March 2020
769,088
Additions
-
At 28th February 2021
769,088
**DEPRECIATION**
At 1st March 2020
-
Charge for year
-
At 28th February 2021
-
**NET BOOK VALUE**
At 28th February 2021
769,088
At 29th February 2020
769,088|Fixtures
and
fittings
£
3,921
2,814
6,735
1,715
1,255
2,970
3,765
2,206|Totals
£
773,009
2,814|
|---|---|---|
|||775,823|
|||1,715
1,255|
|||2,970|
|||772,853|
|||771,294|
The charity is in the process of entering into a formal leasehold agreement with the Trustees of Chabad Lubavitch UK, the owner of the property situated at 42 St George's Road, Wimbeldon, London SW19 4ED. The funds expended by the charity on the Chabad House situated at this address have therefore been shown as improvement to leasehold property in the financial statement.
No depreciation is provided for until the length of the formal lease has been determined.
## **8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Bank loans and overdrafts (see note 10)
Trade creditors
Amounts owed to participating interests
Accruals and deferred income|2021
£
4,568
1
270,790
840
276,199|2020
£
-
-
273,643
780|
|---|---|---|
|||274,423|
Page 10
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
|**9.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Other loans (see note 10)
**10.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts
Amounts falling due in more than five years:
Repayable by instalments:
Other loans more 5yrs instal
**11.**
**MOVEMENT IN FUNDS**
At 1/3/20
£
**Unrestricted funds**
General fund
407,218
**Restricted funds**
Restricted Fund
8,918
**TOTAL FUNDS**
416,136
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
35,732
**TOTAL FUNDS**
35,732|2021
2020
£
£
89,300
91,000
2021
2020
£
£
4,568
-
89,300
91,000
Net
movement
At
in funds
28/2/21
£
£
10,299
417,517
-
8,918
10,299
426,435
Resources
Movement
expended
in funds
£
£
(25,433)
10,299
(25,433)
10,299|2020
£
91,000
2020
£
-
91,000
At
28/2/21
£
417,517
8,918|2020
£
91,000|
|---|---|---|---|
||||2020
£
-|
|||426,435||
||||10,299|
Page 11
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **11. MOVEMENT IN FUNDS - continued**
**Comparatives for movement in funds**
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1/3/19
£
398,900
8,918
407,818
Incoming
resources
£
30,465
30,465|Net
movement
At
in funds
29/2/20
£
£
8,318
407,218
-
8,918
8,318
416,136
Resources
Movement
expended
in funds
£
£
(22,147)
8,318
(22,147)
8,318|At
29/2/20
£
407,218
8,918|At
29/2/20
£
407,218
8,918|
|---|---|---|---|---|
||||416,136||
|||||8,318|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**|At 1/3/19
£
398,900
8,918
407,818|Net
movement
in funds
£
18,617
-
18,617|At
28/2/21
£
417,517
8,918|
|---|---|---|---|
||||426,435|
Page 12
**CHABAD LUBAVITCH OF SOUTH LONDON**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2021**
## **11. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
||Incoming|Resources|Movement|
|---|---|---|---|
||resources|expended|in funds|
||£|£|£|
|**Unrestricted funds**||||
|General fund|66,197|(47,580)|18,617|
|**TOTAL FUNDS**|66,197|(47,580)|18,617|
## **12. RELATED PARTY DISCLOSURES**
The restricted funds relate to the refurbishment of the Chabad House at 42 St George's Road, Wimbledon, London, SW19 4ED, from which the charity operates. Chabad Lubavitch UK took out a bank loan in the year 2018 to support the charity with the refurbishment of the Chabad House and advanced an amount of £286,389 to Chabad Lubavitch of South London ( CLOSL) from the loan finance raised. This loan is being repaid by CLOSL over fifteen years the balance on the loan account is £270,790 (2020- £273,643).
The property is owned by the Chabad Lubavitch UK, registered charity number 227638, which is the main Lubavitch organization in the UK.
Page 13