2023-02-28-accounts - Chabad Lubavitch Of South London

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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 2023

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 2023

		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
Detailed Statement of Financial Activities		14

CHABAD LUBAVITCH OF SOUTH LONDON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2023

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 2023. 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:

The advancement of the Orthodox Jewish religion in accordance with the principles of Chabad Lubavitch,
The advancement of Orthodox Jewish religion education and,
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 many and largely 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 cash reserves of £76,083 (2022 £12,890) as at 28th February 2023..

The charity (CLOSL) managed to raise sufficient funds to discharge the loan held by Chabad Lubavitch UK ( Registered Charity), on 42 St Georges Road, Wimbledon SW19 4ED and as a result this property was transferred to CLOSL and was subsequently revalued by an Independent Valuer at £2.25M. The gain on the Freehold Valuation is shown in the SOFA.

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.

Page 1

CHABAD LUBAVITCH OF SOUTH LONDON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2023

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 Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE

Approved by order of the board of trustees on 10th December 2023 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 2023.

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:

accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Akiva Kahan FCA

Joseph Kahan Associates LLP Chartered Accountants 923 Finchley Road London NW11 7PE

Date: December 2023

Page 3

CHABAD LUBAVITCH OF SOUTH LONDON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2023

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 EXPENDITURE ON Charitable activities 3 Accountancy Sundries Building repairs and refurbishment Charitable activities Depreciation Governance Travel & motor expenses Computer consumables Rent Total NET INCOME/(EXPENDITURE) Transfers between funds 12 Other recognised gains/(losses) Gains on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	2023 Unrestricted Restricted Total fund fund funds £ £ £ 223,594 - 223,594 1,080 - 1,080 2,390 - 2,390 2,415 - 2,415 87,796 - 87,796 (24,182) 17,172 (7,010) 805 - 805 4,685 - 4,685 493 - 493 25,908 - 25,908 101,390 17,172 118,562 122,204 (17,172) 105,032 (849,695) 849,695 - - 1,133,387 1,133,387 (727,491) 1,965,910 1,238,419 420,528 8,918 429,446 (306,963) 1,974,828 1,667,865	2022 Total funds £ 96,258
		- 255 2,987 43,739 26,739 2,510 4,071 1,608 11,338
		93,247
		3,011 - -
		3,011 426,435
		429,446

The notes form part of these financial statements

Page 4

CHABAD LUBAVITCH OF SOUTH LONDON

STATEMENT OF FINANCIAL POSITION 28TH FEBRUARY 2023

Notes FIXED ASSETS Tangible assets 8 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 10 NET ASSETS FUNDS 12 Unrestricted funds Restricted funds TOTAL FUNDS	Unrestricted fund £ 9,627 76,083 (62,673) 13,410 23,037 (330,000) (306,963)	Restricted fund £ 1,974,828 - - - 1,974,828 - 1,974,828	2023 Total funds £ 1,984,455 76,083 (62,673) 13,410 1,997,865 (330,000) 1,667,865 (306,963) 1,974,828 1,667,865	2022 Total funds £ 746,762 12,890 (255,206) (242,316) 504,446 (75,000) 429,446 420,528 8,918 429,446

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2023 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 2023

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 10th December 2023 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 2023

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, as modified by the revaluation of certain assets.

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.

Freehold property - 2% on cost Fixtures and fittings - 25% on reducing balance Motor vehicles - 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.

Page 7

CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

1. ACCOUNTING POLICIES - continued

Financial instruments

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

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 Accountancy Sundries Building repairs and refurbishment Charitable activities Depreciation Governance Travel & motor expenses Computer consumables Rent	Direct Costs £ - 2,390 2,415 87,796 (7,010) - 4,685 493 25,908 116,677	2023 £ 216,327 7,267 223,594 Support costs £ 1,080 - - - - 805 - - - 1,885	2022 £ 96,258 - 96,258 Totals £ 1,080 2,390 2,415 87,796 (7,010) 805 4,685 493 25,908 118,562

Page 8

CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

4. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

	2023	2022
	£	£
Depreciation - owned assets	18,626	26,740

5. TRUSTEES' REMUNERATION AND BENEFITS

Rabbi D Duboy a Trustee, received remuneration of £1,578 (2022 £NIL) for the provision of non Trustee related services.

Trustees' expenses

There were no trustees' expenses paid for the year ended 28th February 2023 nor for the year ended 28th February 2022.

6. STAFF COSTS

The average monthly number of employees during the year was as follows:

Rabbinical No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 96,258 EXPENDITURE ON Charitable activities Sundries 255 Building repairs and refurbishment 2,987 Charitable activities 43,739 Depreciation 26,739 Governance 2,510 Travel & motor expenses 4,071 Computer consumables 1,608 Rent 11,338 Total 93,247 NET INCOME 3,011 RECONCILIATION OF FUNDS Total funds brought forward 417,517	2023 2 Restricted fund £ - - - - - - - - - - - 8,918	2022 - Total funds £ 96,258
		255 2,987 43,739 26,739 2,510 4,071 1,608 11,338
		93,247
		3,011 426,435

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Page 9

CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

TOTAL FUNDS CARRIED FORWARD 8. TANGIBLE FIXED ASSETS Freehold property £ COST OR VALUATION At 1st March 2022 - Additions 858,613 Revaluations 1,133,387 Reclassification - At 28th February 2023 1,992,000 DEPRECIATION At 1st March 2022 - Charge for year 17,172 Charge written back - At 28th February 2023 17,172 NET BOOK VALUE At 28th February 2023 1,974,828 At 28th February 2022 -	Improvement to leasehold prope rty £ 769,088 - - (769,088) - 25,636 - (25,636) - - 743,452		Unrestricted fund £ 420,528 Fixtures and fittings £ 7,384 1,371 - - 8,755 4,074 1,054 - 5,128 3,627 3,310		Restricted fund £ 8,918 Motor vehicles £ - 6,400 - - 6,400 - 400 - 400 6,000 -	Total funds £ 429,446 Totals £ 776,472 866,384 1,133,387 (769,088) 2,007,155 29,710 18,626 (25,636) 22,700 1,984,455 746,762	Total funds £
							429,446

Cost or valuation at 28th February 2023 is represented by:

Valuation in 2023 Cost	Freehold property £ 1,133,387 858,613 1,992,000	Fixtures and fittings £ - 8,755 8,755	Motor vehicles £ - 6,400 6,400	Totals £ 1,133,387 873,768
				2,007,155

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CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
£
Bank loans and overdrafts (see note 11)
1,157
Amounts owed to participating interests
60,000
Accruals and deferred income
1,516
62,673
10.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Other loans (see note 11)
330,000
11.
LOANS
An analysis of the maturity of loans is given below:
2023
£
Amounts falling due within one year on demand:
Bank overdrafts
1,157
Amounts falling due in more than five years:
Repayable by instalments:
These loans are advanced on an
330,000
12.
MOVEMENT IN FUNDS
Net
Transfers
movement
between
At 1/3/22
in funds
funds
£
£
£
Unrestricted funds
General fund
420,528
122,204
(849,695)
Restricted funds
Restricted Fund
8,918
1,116,215
849,695
TOTAL FUNDS
429,446
1,238,419
-

2022
£
-
254,366
840
255,206
2022
£
75,000
2022
£
-
75,000
At
28/2/23
£
(306,963)
1,974,828
1,667,865

Page 11

CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

12. MOVEMENT IN FUNDS - continued

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

Unrestricted funds General fund Restricted funds Restricted Fund TOTAL FUNDS	Incoming resources £ 223,594 - 223,594	Resources expended £ (101,390) (17,172) (118,562)	Gains and losses £ - 1,133,387 1,133,387	Movement in funds £ 122,204 1,116,215
				1,238,419

Comparatives for movement in funds

Unrestricted funds General fund Restricted funds Restricted Fund TOTAL FUNDS	At 1/3/21 £ 417,517 8,918 426,435	Net movement in funds £ 3,011 - 3,011	At 28/2/22 £ 420,528 8,918
			429,446

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund TOTAL FUNDS	Incoming Resources Movement resources expended in funds £ £ £ 96,258 (93,247) 3,011 96,258 (93,247) 3,011	Incoming Resources Movement resources expended in funds £ £ £ 96,258 (93,247) 3,011 96,258 (93,247) 3,011
		3,011

Page 12

CHABAD LUBAVITCH OF SOUTH LONDON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2023

12. MOVEMENT IN FUNDS - continued

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 1/3/21 £ 417,517 8,918 426,435	Net movement in funds £ 125,215 1,116,215 1,241,430	Transfers between funds £ (849,695) 849,695 -	At 28/2/23 £ (306,963) 1,974,828
				1,667,865

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds Restricted Fund TOTAL FUNDS	Incoming resources £ 319,852 - 319,852	Resources expended £ (194,637) (17,172) (211,809)	Gains and losses £ - 1,133,387 1,133,387	Movement in funds £ 125,215 1,116,215
				1,241,430

13. RELATED PARTY DISCLOSURES

During the year the Freehold property at 42 St George's Road, Wimbledon, SW19 4ED from which the charity operates, was transferred over from Chabad Lubavitch UK CLUK ( charity number 227638) to Chabad Lubavitch of South London ( CLOSL). the transfer took place after CLOSL discharged a loan held by CLUK totalling £345,000.

Page 13

CHABAD LUBAVITCH OF SOUTH LONDON

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2023

INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Total incoming resources EXPENDITURE Charitable activities Trustees' salaries Wages Insurance Premises ,Light and heat Telephone Postage and stationery Advertising Sundries Subscriptions Charitable activities Security Travel & motor expenses IT software & consumables Cleaning Bank charges Building repairs & refurbishment Freehold property Short leasehold Fixtures and fittings Motor vehicles Support costs Governance costs Accountancy fees Legal fees Total resources expended Net income	2023 £ 216,327 7,267 223,594 223,594 1,578 3,922 2,649 27,922 570 10,755 360 566 2,977 62,832 2,942 4,685 493 558 878 - 17,172 (25,636) 1,054 400 116,677 1,460 425 1,885 118,562 105,032	2022 £ 96,258 -
		96,258
		96,258 - 700 - 11,338 - 2,338 295 255 481 39,449 - 4,071 1,608 - 476 2,987 - 25,636 1,103 -
		90,737 840 1,670
		2,510
		93,247
		3,011

This page does not form part of the statutory financial statements

Page 14