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 2024
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 2024
| 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 (REGISTERED NUMBER: 08542368)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2024
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 2024. 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:
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The advancement of the Orthodox Jewish religion in accordance with the principles of Chabad Lubavitch,
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The advancement of Orthodox Jewish religion education and,
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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
Financial position
The Trustees are pleased to see that donation income has increased this year, leading to a surplus of £69,442 ( 2023 £105,032).
The Statement of Financial Activities shows cash reserves of £85,507 (2023 £76,083) as at 28th February 2024. Total reserves stood at £1,995,307 ( 2023 £1,667,865).
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.
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 prepared cash flow forecasts and profit projections which demonstrate the charity can continue as a going concern.
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.
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CHABAD LUBAVITCH OF SOUTH LONDON (REGISTERED NUMBER: 08542368)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 28TH FEBRUARY 2024
STRUCTURE, GOVERNANCE AND MANAGEMENT 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 3rd December 2024 and signed on its behalf by:
D Duboy - Trustee
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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 2024.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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 2024
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CHABAD LUBAVITCH OF SOUTH LONDON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28TH FEBRUARY 2024
| 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) 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 |
Unrestricted fund £ 321,901 - 98 8,763 173,839 3,184 2,395 6,505 495 40,007 235,286 86,615 - 86,615 (306,963) (220,348) |
Restricted funds £ (1) - - - - 17,172 - - - - 17,172 (17,173) 258,000 240,827 1,974,828 2,215,655 |
2024 Total funds £ 321,900 - 98 8,763 173,839 20,356 2,395 6,505 495 40,007 252,458 69,442 258,000 327,442 1,667,865 1,995,307 |
2023 Total funds £ 223,594 1,080 2,390 2,415 87,796 (7,010) 805 4,685 493 25,908 118,562 105,032 1,133,387 1,238,419 429,446 1,667,865 |
|---|---|---|---|---|
The notes form part of these financial statements
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CHABAD LUBAVITCH OF SOUTH LONDON (REGISTERED NUMBER: 08542368)
STATEMENT OF FINANCIAL POSITION 28TH FEBRUARY 2024
| 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 £ 10,249 85,507 (13,404) 72,103 82,352 (302,700) (220,348) |
Restricted funds £ 2,215,655 - - - 2,215,655 - 2,215,655 |
2024 Total funds £ 2,225,904 85,507 (13,404) 72,103 2,298,007 (302,700) 1,995,307 (220,348) 2,215,655 1,995,307 |
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 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2024.
The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2024 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(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
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CHABAD LUBAVITCH OF SOUTH LONDON (REGISTERED NUMBER: 08542368)
STATEMENT OF FINANCIAL POSITION - continued 28TH FEBRUARY 2024
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 3rd December 2024 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 2024
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.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
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.
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
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 Sundries Building repairs and refurbishment Charitable activities Depreciation Governance Travel & motor expenses Computer consumables Rent |
Direct Costs £ 98 8,763 173,839 20,356 - 6,505 495 40,007 250,063 |
2024 £ 321,900 - 321,900 Support costs £ - - - - 2,395 - - - 2,395 |
2023 £ 216,328 7,266 |
|---|---|---|---|
| 223,594 | |||
| Totals £ 98 8,763 173,839 20,356 2,395 6,505 495 40,007 |
|||
| 252,458 |
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
4. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 20,356 | 18,626 |
5. TRUSTEES' REMUNERATION AND BENEFITS
Rabbi D Duboy a Trustee, received remuneration of £9,456 (2023 £1,578) for the provision of non Trustee related services.
Trustees' expenses
There were no trustees' expenses paid for the year ended 28th February 2024 nor for the year ended 28th February 2023.
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 223,594 EXPENDITURE ON Charitable activities Accountancy 1,080 Sundries 2,390 Building repairs and refurbishment 2,415 Charitable activities 87,796 Depreciation (24,182) Governance 805 Travel & motor expenses 4,685 Computer consumables 493 Rent 25,908 Total 101,390 NET INCOME/(EXPENDITURE) 122,204 Transfers between funds (849,695) |
2024 2 Restricted funds £ - - - - - 17,172 - - - - 17,172 (17,172) 849,695 |
2023 2 Total funds £ 223,594 1,080 2,390 2,415 87,796 (7,010) 805 4,685 493 25,908 118,562 105,032 - |
|---|---|---|
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| 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 8. TANGIBLE FIXED ASSETS COST OR VALUATION At 1st March 2023 Additions Revaluations At 28th February 2024 DEPRECIATION At 1st March 2023 Charge for year At 28th February 2024 NET BOOK VALUE At 28th February 2024 At 28th February 2023 |
Freehold property £ 1,992,000 - 258,000 2,250,000 17,172 17,173 34,345 2,215,655 1,974,828 |
Unrestricted fund £ - (727,491) 420,528 (306,963) Fixtures and fittings £ 8,755 1,158 - 9,913 5,128 1,021 6,149 3,764 3,627 |
Restricted funds £ 1,133,387 1,965,910 8,918 1,974,828 Motor vehicles £ 6,400 2,647 - 9,047 400 2,162 2,562 6,485 6,000 |
Total funds £ 1,133,387 1,238,419 429,446 1,667,865 Totals £ 2,007,155 3,805 258,000 2,268,960 22,700 20,356 43,056 2,225,904 1,984,455 |
|
|---|---|---|---|---|---|
The Freehold Property was valued on 22nd December 2022 by Clive Scrivener BSc of Scrivener Tibbats Ltd at £2.250M.
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2024 £ Bank loans and overdrafts (see note 11) 2,968 Amounts owed to participating interests 6,464 Other creditors 1,956 Accruals and deferred income 2,016 13,404 10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 £ Other loans (see note 11) 302,700 11. LOANS An analysis of the maturity of loans is given below: 2024 £ Amounts falling due within one year on demand: Bank overdrafts 2,968 Amounts falling due in more than five years: Repayable by instalments: These loans are advanced on an interest free basis. 302,700 12. MOVEMENT IN FUNDS Net movement At 1/3/23 in funds £ £ Unrestricted funds General fund (306,963) 86,615 Restricted funds Restricted Fund 841,441 (17,173) Revaluation Reserve 1,133,387 258,000 1,974,828 240,827 TOTAL FUNDS 1,667,865 327,442 |
2023 £ 1,157 60,000 - 1,516 62,673 2023 £ 330,000 2023 £ 1,157 330,000 At 28/2/24 £ (220,348) 824,268 1,391,387 2,215,655 1,995,307 |
|---|---|
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
12. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Restricted Fund Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 321,901 (1) - (1) 321,900 |
Resources expended £ (235,286) (17,172) - (17,172) (252,458) |
Gains and Movement losses in funds £ £ - 86,615 - (17,173) 258,000 258,000 258,000 240,827 258,000 327,442 |
|---|---|---|---|
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Restricted Fund Revaluation Reserve TOTAL FUNDS |
At 1/3/22 £ 420,528 8,918 - 8,918 429,446 |
Net movement in funds £ 122,204 (17,172) 1,133,387 1,116,215 1,238,419 |
Transfers between funds £ (849,695) 849,695 - 849,695 - |
At 28/2/23 £ (306,963) 841,441 1,133,387 1,974,828 1,667,865 |
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Restricted Fund Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 223,594 - - - 223,594 |
Resources expended £ (101,390) (17,172) - (17,172) (118,562) |
Gains and losses £ - - 1,133,387 1,133,387 1,133,387 |
Movement in funds £ 122,204 (17,172) 1,133,387 1,116,215 1,238,419 |
|---|---|---|---|---|
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CHABAD LUBAVITCH OF SOUTH LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 28TH FEBRUARY 2024
12. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Net | Transfers | |||
|---|---|---|---|---|
| movement | between | At | ||
| At 1/3/22 | in funds | funds | 28/2/24 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 420,528 | 208,819 | (849,695) | (220,348) |
| Restricted funds | ||||
| Restricted Fund | 8,918 | (34,345) | 849,695 | 824,268 |
| Revaluation Reserve | - | 1,391,387 | - | 1,391,387 |
| 8,918 | 1,357,042 | 849,695 | 2,215,655 | |
| TOTAL FUNDS | 429,446 | 1,565,861 | - | 1,995,307 |
| A current year 12 months and prior year 12 months combined net movement in funds, included in the above | ||||
| as follows: | ||||
| Incoming | Resources | Gains and | Movement | |
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 545,495 | (336,676) | - | 208,819 |
| Restricted funds | ||||
| Restricted Fund | (1) | (34,344) | - | (34,345) |
| Revaluation Reserve | - | - | 1,391,387 | 1,391,387 |
| (1) | (34,344) | 1,391,387 | 1,357,042 | |
| TOTAL FUNDS | 545,494 | (371,020) | 1,391,387 | 1,565,861 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
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 £366,493.
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