Registered number: 09113305 Charity number: 1159292 **The Liberal Jewish Synagogue (A company limited by guarantee)** **Trustees' Report and Financial Statements for the year ended 31 December 2021** ||Page| |---|---| |Reference and administrative details of the charity|2| |Trustees' report|3-11| |Statement of financial activities|12| |Statement of financial position|13| |Statement of cash flows|14| |Notes to the financial statements|15-27| |Independent auditor’s report|28-31| ## **The Liberal Jewish Synagogue REFERENCE AND ADMINISTRATIVE INFORMATION 31 DECEMBER 2021** ## **Trustees** Honorary Officers: Sue Head, Chairman Peter Loble, Honorary Treasurer Resigned 23 June 2021 David H Adams (FCA), Honorary Treasurer Chris Godbold, Lead on Governance Benita Hart, Lead on Communications Karen Newman, Lead on HR Steven Behr Sue Bolsom Sylvia Churba David Davidson Lisa Gershon Harriett Goldenberg Sarah Lasher Michael Romain Steve Penn David Rigal Simon van Someren Alex Weiss Anthony Sefton Resigned 14 October 2021 Resigned 13 May 2021 Resigned 23 June 2021 Appointed 10 June 2021 ## **President** Martin Slowe ## **Honorary Lawyer** Daniel Sternberg ## **Executive Director** Lysa Schwartz Jonathan Bruck Until September 2021 From September 2021 ## **Company registered number** 09113305 ## **Charity registered number** 1159292 ## **Registered office** 28 St John’s Wood Road, London NW8 7HA ## **Independent auditor** Buzzacott LLP, 130 Wood Street, London EC2V 6DL ## **Bankers** CAF Bank Ltd, 25 Kings Hill Avenue, West Malling, Kent M19 4JQ ## **Investment managers** Redmayne Bentley LLP, 9 Bond Court, Leeds, West Yorkshire LS1 2JZ 2 **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** The Trustees of the LJS are pleased to present their Trustees’ Report together with the financial statements of the charitable company for the year ended 31 December 2021. This report reflects the continuing impact of the COVID-19 pandemic on The Liberal Jewish Synagogue throughout 2020 and 2021. ## **Vision and values** The Liberal Jewish Synagogue (‘the LJS’) is the oldest and largest of forty Liberal and Progressive Jewish communities in the UK, Republic of Ireland, Holland and Denmark. The LJS is an inclusive, diverse, and egalitarian community of all ages. We work together to explore Jewish traditions, texts, and values, applying them to the challenge of living ethical lives in the context of the social, intellectual, technological, scientific and environmental realities of the twenty first century. We seek to sustain and develop the Jewish people’s sacred task: to build a just and compassionate world, based on our commitment and responsibility to each other as Jews and to our friends and neighbours of other faiths, cultures and ethnicities. We strive to enrich and celebrate our Jewish identity in the context of shared spirituality and creativity, intellectual challenge, and meaningful relationships. The LJS is guided by its values: 1. _Kehillah:_ the LJS seeks to be a warm, welcoming, and compassionate community for all those who wish to engage with Judaism 2. _Avodah:_ the LJS cherishes meaningful, shared worship and spiritual engagement within the context of Liberal Judaism 3. _Torah:_ the LJS prioritises life-long learning and the intellectual stimulation and challenge of Jewish texts, ideas, and practice 4. _Gemilut Chasadim:_ the LJS nurtures meaningful relationships through pastoral care and spiritual encounter and encourages social networking across generations and between faiths and cultures 5. _Tikkun Olam:_ the LJS values and engages in purposeful activity that is designed to repair and heal the world 6. _Bal Tashchit:_ the LJS strives to increase awareness of the climate emergency and to reduce our human impact on the environment 7. _Chayyim:_ the LJS celebrates and commemorates all life cycle events that help to give meaning to people’s lives 8. _Din v’Cheshbon:_ the LJS is committed to transparent and responsible governance of the congregation and financial accountability by its trustees _9. Yahadut Mitkademet:_ the LJS encourages its members’ contribution to the dynamic growth and development of Liberal Judaism in the UK, Europe, Israel and beyond 10. _Bakkesh shalom_ : the LJS endorses the State of Israel’s Declaration of Independence as a country based on the principles of ‘liberty, justice and peace’ and ‘the full social and political equality of all its citizens’ ## **Activities** The activities of the LJS are organised into four strategic areas: spirituality, learning, community, and sustainability. A strategic plan has been developed to provide the direction and focus for work during a three-year period. Each year the strategic plan is revised and budgeted by the Honorary Officers, Council, Executive Director, Rabbis, senior members of staff and Committee Chairs. This provides the framework for the programme of services, activities, and events for the next year. Both documents are approved by Council. Progress against this plan is analysed regularly, as are the quarterly management accounts, and reported to the Honorary Officers and Council. 3 **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** During 2020 and subsequently 2021, the strategic plan was altered radically in response to the Covid-19 pandemic. Throughout 2021, the LJS continued to rise to the challenges presented by the pandemic. The synagogue has been creative and forward looking and is emerging stronger as a consequence, with services, education programmes and community events, taking place online and in person. ## **Spirituality (including music)** Central to the work of the LJS are the services for Shabbat and festivals, as well as for life-cycle celebrations; these are under the leadership of Senior Rabbi, Alexandra Wright. During 2021, the LJS moved from online services only, as in the lockdowns of 2020, to hybrid services. Because of Covid-19 restrictions, the synagogue could allow only 150 congregants to attend each of the High Holy Day services, but it was a wonderful moment for the community to have some people able to return in person. Additionally, there were over 11,000 online views of the Rosh Hashanah and Yom Kippur services. The opening of the synagogue for services was very carefully managed to adhere to Government guidelines to protect the health of the congregants. The LJS continues its strong commitment to music as an integral part of services, education programmes, community events, and heritage. During the building closures, the professional choir, and on occasions, the Members Choir, both led by Director of Music, Cathy Heller Jones, continued to provide music for each service, joining the rabbis online and in person. ## _Spirituality highlights during 2021:_ - The use of technology provided high quality online services - The synagogue was re-opened for in person services - There were over 11,000 online views of the Rosh Hashanah and Yom Kippur services - Despite Covid 19 restrictions, in person High Holy Day services were held for a limited number of people - Many attended the moving Kristallnacht Memorial event with guest speaker Sir Anish Kapoor - A successful Interfaith Chanukkah celebration was held - Music, pre-recorded by the choir, enhanced online Shabbat and festival services ## **Learning** The LJS provides a wealth of opportunities for life-long learning. In 2021 online learning was used for adult education, and until the end of the summer term for Rimon Religion School, while the Nursery ran its classes in person. From September, Rimon returned to meeting in person, and adult learning was organised through hybrid programmes. Rabbi Dr Michael Hilton continued as Scholar in Residence; his courses attracted a wide interest and participation from within and outside the community. ## _Learning highlights during 2021:_ - Rimon re-opened in the building on Shabbat mornings - Hybrid programmes and talks were developed for adult learners, including the series of lectures titled Judaism and Islam: A shared History, with Rabbi Dr Michael Hilton and Dr Harith Ramli. ## **Community** The LJS offers a wide range of social and cultural activities for the whole community, pastoral care for those in need, as well as enjoyment to all. Through the efforts of Community Care Co-ordinator, Aviva Shafritz, the 4 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** rabbis, together with a committed group of volunteer co-ordinators and over 150 volunteers, the LJS offered regular contact and support for those in urgent need, and a range of weekly and monthly events in line with Covid guidelines. The LJS also works in partnership with local organisations to provide public benefit for the isolated, elderly, disabled, and for asylum-seeking families. When we can, we also offer selected charities the opportunity to hire rooms at the LJS at a preferential rate, to run their own gatherings and meetings. ## **Volunteers** Volunteering is at the heart of the synagogue. There was inevitable disruption in 2021 because of Covid-19 restrictions, however, the pandemic has acted as a catalyst in how to support and engage Members, not only those who were isolated due to the lockdowns. Despite not being able to run activities in the usual way, volunteers have encouraged people to remain in touch through regular telephone contacts and online gatherings. Members of Council are also volunteers and act as Trustees; they work hard for the LJS and are involved in a wide range of committees and working groups, where they can use their specialist knowledge. ## **Working in partnership** The LJS is the flagship synagogue of the Liberal Judaism movement (the umbrella organisation of Liberal and Progressive synagogues in the UK and parts of Europe). It provides the movement with an annual subscription and this year, because of issues with Montague House (Liberal Judaism’s Head Office), Liberal Judaism is now based at the LJS. Through Liberal Judaism, the LJS also supports Leo Baeck College, which is the primary academic and education institution for European Progressive Judaism and where many Progressive rabbis are trained. The LJS is a member of the European Union of Progressive Judaism and the World Union for Progressive Judaism. It is also a member of the UK Board of Deputies of British Jews with four members of the congregation serving as representatives. This ensures that the voice of the LJS is heard within the umbrella group that speaks for the British Jewish community. ## **Public benefit** In addition to its religious and educational aims, the LJS functions as a centre for activities to which the wider community is regularly welcomed. Again, because of Covid-19 restrictions in 2021, much of this excellent work was interrupted. However, many events had moved to meeting online in 2020, and returned to the synagogue building towards the end of 2021 as restrictions eased. Activities and social events run by the LJS include the Out and About Club, which provides fortnightly entertainment for elderly, disabled, and often isolated, members of the local community, and Singing for the Mind, which is a weekly group, led by a trained singing leader, for people with memory problems and moderate dementia, accompanied by their carers. The LJS continued to support Asylum Seeker Families through the Drop In project, although for most of the year being unable to meet in person. The LJS promotes inter-faith understanding through initiatives such as the annual interfaith Chanukkah event _._ The synagogue also works with neighbouring churches and mosques, discussing issues of local and national concern or interest and developing inter-faith understanding. The Trustees have had regard to the guidance issued by the Charity Commission concerning public benefit. They are satisfied that the information given in this report, particularly regarding the activities undertaken when read in conjunction with the objects of the charity, demonstrates that the requirements to identify public benefit have been met. Community highlights during 2021: - Training and supporting extra volunteers to strengthen the level of contact with members of the LJS community in response to Covid 5 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED** ## **31 DECEMBER 2021 (continued)** - Increasing pastoral care by the Community Care Co-ordinator, rabbis and volunteers to provide direct assistance to those most in need - The responsiveness to the challenges of the Covid-19 restrictions of the volunteer leads of the social activities. Events were held ‘in person’ whenever possible, such as the Out and About Club Christmas party, Video and Tea taking place, and the Keep in Touch tea party. Singing for the Mind continued to be held online - A successful Jazz Evening was held as an in-person event - Maintaining the financial and emotional support for the asylum seeker families through phone calls and digital donations to provide essential items such as food, clothing, toiletries, and cleaning materials ## **Sustainability** Sustainability is not just about the future of the organisation; the LJS is also committed to the wider world and the future of our planet. Led by the Social Action Committee, the LJS initiates and participates in numerous activities within the community and beyond to improve sustainability and reduce the impact on the climate and our environment. One of the outcomes of the Covid-19 pandemic has been a reduction in food waste, and of paper and plastic, as well as transport dependence, and lower heating and utility use. On Mitzvah Day the Social Action Committee and volunteers participated in cleaning the Regent’s Canal. The office team, led by the Executive Director, works with the rabbis, Honorary Officers and Council to promote and encourage the thriving LJS community. This includes a continuing programme to improve communication, provide information, encourage participation, and care of the building to provide safe and clean and welcoming facilities. A major project, funded by a Covid appeal and the generosity of an anonymous donor, completed in 2021 was the upgrading of the Wi-Fi in the synagogue. The LJS also appointed a new Executive Director, Jonathan Bruck, to succeed Lysa Schwartz who retired during the year. The financial sustainability of the LJS is dependent upon the contribution of membership fees and other funding. A significant number of Members and Friends pay specially agreed reduced rates. No one is excluded by their inability to pay. During 2021, it was noticeable that the Covid-19 pandemic was having a direct impact on the financial position of an increasing number of LJS members; the LJS continues to do all it can to ensure that they remain part of the community. ## _Sustainability highlights during 2021:_ - Continuing to plan capital investment to modernise the 30-year-old synagogue building - Completing the first two stages of the project to update the heating - Updating the synagogue’s Wi-Fi and enhancing the technology - Completing the renovation of the roof - Renovating the cemetery toilets - Appointing a new Executive Director who began work mid-year ## **Fundraising in support of others** Each year, LJS Members and Friends support four charities through the annual High Holy Day Appeal: one Anglo-Jewish, one based in Israel, one UK non-Jewish charity, and the United Jewish Israel Appeal (UJIA). 2021 was a remarkable year; despite all the challenges of Covid-19, a fantastic £69,000 was raised and distributed to the Cardinal Hume Centre, Jewish Women’s Aid, and The School for Peace (Neve Shalom-Wahat-al Salaam). 6 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** The LJS also collects voluntary contributions to the UK Board of Deputies of British Jews, as well as making an annual subscription of over £90,000 to support the movement for Liberal Judaism. As a charity, the LJS aims to achieve best practice in the way in which it communicates with supporters. It takes care with both the tone of its communications and the accuracy of its data. The synagogue adheres to the Fundraising Regulator Code of Fundraising Practice. It applies best practice to protect supporters’ data: it never sells data or swaps data with other organisations and ensures that communication preferences can be changed at any time. The LJS manages its own fundraising led by the President, Members and Friends who volunteer, with administrative support by the staff team. All fundraising activities are approved and supervised by the Honorary Officers and Council. It does not currently employ professional fundraisers. The LJS undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2021, the charity received no complaints about its fundraising activities. ## **Plans for 2022** The LJS is managing a staged reopening from the latest lockdown caused by the COVID-19 pandemic, adhering closely to Government direction. Groups are being welcomed back to the synagogue, and events, such as the communal seder are being planned. Additionally, due to the unfortunate closure of West Central Liberal Synagogue, we are able to support the community by welcoming West Central Liberal Chavurah Club to the LJS once a month on Saturday afternoons. A new strategic plan for 2022-24, Reaching our Goals, has been completed with, for the first time, input from all the committees. Each committee identified their plans for the next three years, describing what success might look like, and how much these plans might cost. These were scrutinised by Council and the plan and budget agreed. There are some new and exciting initiatives, whilst also building upon existing initiatives from 2021. - A membership survey planned for May - A new volunteering initiative to attract and increase the number of volunteers - Ongoing major renovation work to the synagogue building, including updating the wiring, continuing with the heating project and lift maintenance - Review of our education and young family programmes - Appointment of key new staff, including a part-time rabbi - Renewal of our website and the development of external systems of communications - Together with Liberal Judaism, hosting events to celebrate Liberal Judaism’s one hundred and twentieth anniversary ## **Structure, governance, and management** ## **Governing document and organisational structure** The Liberal Jewish Synagogue is a company limited by guarantee (company number 09113305) governed by its Memorandum and Articles of Association dated 31 October 2014. This limited company was also registered as a charity (charity number 1159292) with the Charity Commission in November 2014. Prior to incorporation the LJS was an unincorporated charitable organisation. The members of the Council act as Trustees and administer the charity and also act as the Directors of the charitable company. The Council can have up to 19 members and meets monthly (except August). Wherever possible, the Chairs of the main Council committees are Council Members. All committees and working groups meet on a regular basis and provide recommendations to the Council for decision-making. The Council appoints an Executive Director to act in stewardship and manage the day-to-day running of the organisation. 7 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** The Executive Director has delegated authority, as approved by the Trustees, for operational matters. The Trustees believe that there is appropriate governance, organisational model and staffing structure in place to monitor and support the activities undertaken by our staff and volunteers. ## **Appointment of Trustees** The charity is a religious institution, and there is a requirement to be of the Jewish faith to be a Member. Only Members of The Liberal Jewish Synagogue can be elected to the Council. Trustees (Council Members) are elected by the members of the LJS by a show of hands at the Annual General Meeting. Trustees are elected for a maximum of two, three-year terms. Any Trustee who has served two terms cannot stand for re-election until at least one more year has passed. The Council elects from its Members a Chairman, Honorary Treasurer and any other positions, as agreed by Council, to constitute the Honorary Officers. Council delegates the running of the organisation to the Honorary Officers, subject to their overall supervision and monitoring of the financial position. ## **Trustee induction and training** Training for Trustees is by practice, encouragement to attend appropriate courses, and informal mentorship from other Trustees. Before standing for election, Members are encouraged to serve on committees. New Trustees are given an induction pack comprising a copy of the Charity Commission ‘Welcome Pack for New Trustees’, a copy of the LJS Constitution, the minutes of at least three Council meetings and a Charity Trustee form stating that they acknowledge and accept their responsibilities as Trustees, which they must sign and return. They also attend briefing sessions. ## **Related parties and co-operation with other organisations** None of our Trustees receive remuneration or other benefit from their work as a Trustee for the charity without approval. Only expenses incurred in the performance of Trustees’ duties can be reimbursed. Any connection between a Trustee or a member of staff of the charity must be disclosed to the Council in the same way as any other contractual relationship with a related party. In the current year, any related party transactions are reported in Note 20 to the accounts. Council is careful to monitor for any potential conflict of interest and respond accordingly. In 2021 it was noted that one Trustee is Vice Chair of Liberal Judaism. ## **Financial review** The financial year to 31 December 2021 reflects the impact of the Covid-19 pandemic on our regular sources of income and our continuing commitment to deliver our charitable aims. During the year our Members and Friends continued to support the LJS and we also benefited from the continuing support of donors to support our work with the elderly and vulnerable. Investments also contributed to the surplus. The LJS staff and volunteers worked tirelessly to deliver our programme of work, making reasonable savings when possible. The overall surplus for the year to 31 December 2021 was £506,516, thanks to an exceptional number of legacies and growth in investments (2020: £121,716). ## **Income** During 2021 unrestricted income which is generated from membership fees, donations and charitable activities was £1,993,563 (2020: £1,660,899). This is an overall increase of 17%, much of this can be explained by the extraordinary legacies in 2021 of £292,029 compared to 2020 when £70,503 was received. Membership fees fell by 2% and charitable activities (LJS Nursery, Rimon fees, funerals, venue, hire, etc) in 2021 were in line with 2020 £568,094 (2020: £566,528) but still low compared to pre Covid. 8 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED** ## **31 DECEMBER 2021 (continued)** We are fortunate that some Members make additional donations to assist those who are unable to pay the full fees. The President’s Patrons Fund, led by President Martin Slowe, also encourages Members to make an ongoing substantial financial commitment to support the sustainability of the LJS. Whilst the Covid appeal supported by a very generous anonymous donor allowed us to update the technology within the synagogue. Donations in 2021 were £486,294 (2020: £392,851). We remain immensely grateful for this ongoing support as well as from those who remember the LJS with legacies. Many of our activities could not run without internal fundraising campaigns and external grants. We are grateful to the continuing project funding provided by the Pears Foundation, and Ernest Hecht Charitable Foundation who have all responded positively to the changes we have had to introduce as a result of the government guidelines. The Ernest Hecht Charitable Foundation, grant of £254,000 received in 2020 will be allocated to projects over the next 10 years. ## **Expenditure** Our unrestricted costs decreased in 2021: £1,772,182 (2020: £1,875,395); restricted expenditure was higher at £70,508 (2020: £56,386), an increase on the previous year as we were able to provide a limited programme of activities and undertake and begin the much needed planned infrastructure investment in the building. In 2021, salaries, our largest overhead, reduced by 9% to £831,656 (2020: £910,677). In line with the impact of Covid staff who left were not immediately replaced and regrettably there was a salary freeze. ## **Future** During 2021 we were able to put aside some income to secure the future of the LJS, including creating a building sinking fund. Our external investment manager will continue to work at managing these surplus assets, along with our existing investments. Any additional investment income will contribute to our unrestricted costs. We also expect that the building work, which was started in 2021, on the unused land adjacent to the cemetery at Pound Lane, which was sold to Newbourne Properties Ltd to be completed, in early 2024. In exchange for the sale of the land, and a contribution toward the development, the agreement with the developer is that once the work is completed, the LJS will own four flats that can be rented to yield a regular income. ## **Investment policy** The Investment Committee, which is a sub-committee of the Finance Committee, includes the Honorary Treasurer and Members invited for their expertise and knowledge of finance and investments. Redmayne Bentley LLP, our investment managers, continued to follow the Council’s agreed policy of investing in ethical investments to achieve capital growth. During 2021 investments increased to £2,542,224 (2020: £2,167,023), an overall increase of 15% against a minimum target of 3%. The investment committee is in regular contact with our investment managers and meets regularly to discuss the investments held and their performance. ## **Reserves policy** The policy of the Trustees is to maintain a level of reserve that will provide a stable base from which to fund the charity’s future activities, including capital expenditure. The target set is £450,000 which represents three months’ expenditure. On 31 December 2021, the charity had free reserves of £1,720,665 (2020: £1,444,353), based on the general funds (Note 17) that could be drawn upon if required by the Trustees for specific purposes as agreed by them. If cash is required to meet our requirements, this can be realised from investments, including property. Details of both Unrestricted and Restricted Funds are summarised in Note 17 to the accounts. The free reserves currently exceed the target level; the Trustees are mindful of the need to retain funds in reserve to fund both unforeseen costs and the ongoing maintenance costs of the synagogue’s premises. Given 9 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** the anticipated level of work required in respect of the building over the coming years, the Trustees consider the level of reserves held to be reasonable and appropriate but will be looking to increase them if possible. ## **Risk management** The Trustees have a risk management strategy which comprises: - an annual assessment of the principal risks and uncertainties that the charity faces - the establishment of policies, systems and procedures to mitigate those identified risks - the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise - the ongoing review of cyber risks faced by the charity The LJS Risk Register is regularly reviewed and updated by the Finance Committee, Honorary Officers, Council and the Executive Director. This register sets out the major risks to which the synagogue is exposed and the systems which have been established to mitigate those risks. In 2022, Trustees continue to recognise the risk to the LJS of COVID-19 and the potential impact it may have on income generation. Long-term financial sustainability remains a major risk for the LJS. Based on the performance in 2021, we anticipate that our membership and nursery fees, which are the primary sources of income, will continue to be difficult to maintain, as well as our ability to generate income from the use of our building. Internal financial management risks are reduced through the implementation of internal controls in respect of the recording and the authorisation of all accounting transactions. Budgets are set for all types of income and expenditure; these are monitored by senior management, the Finance Committee, Honorary Officers and the Council. Management accounts are produced monthly and shared quarterly with the Finance Committee, Honorary Officers and Council. The Executive Director meets regularly with the Honorary Officers, and all financial details are regularly monitored by them. Attention is also focused on mitigating non-financial risks arising from safeguarding, fire, health and safety, security and vulnerable adult safeguarding which are dealt with by committees and groups of volunteers. This is overseen by the senior management, Honorary Officers, and the Council. ## **Statement of Trustees’ responsibilities** The Trustees (who are also Directors of the Liberal Jewish Synagogue for the purposes of company law) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and with the 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 the situation of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently - observe the methods and principles in 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) - make judgements and estimates that are reasonable and prudent - state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and 10 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the Trustees confirms that: - so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware - the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information This confirmation is given and should be interpreted in accordance with the provisions of S418 of the Companies Act 2006. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Sue Head Chairman 9 June 2022 11 ## **The Liberal Jewish Synagogue STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED** ## **31 DECEMBER 2021** |Note
**INCOME FROM**
Donations and legacies
2
Fundraising events
3
Investments
4
Charitable activities
5
Coronavirus Job Retention
Scheme Grant Income
**TOTAL INCOME**
**EXPENDITURE ON**
Charitable activities
6
**TOTAL EXPENDITURE**
**NET INCOME (EXPENDITURE)**
**BEFORE**
**INVESTMENT**
**GAINS (LOSSES)**
**NET GAINS (LOSSES) ON**
**INVESTMENTS**
12
**NET INCOME (EXPENDITURE)**
**FOR THE YEAR**
Transfers between funds
17
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total
funds
brought
forward
17
**TOTAL FUNDS**
**AT 31 DECEMBER 2021**|**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£
**1,301,037**
**103,797**
**–**
**1,404,834**
1,019,123
319,493
–
1,338,616
**3,892**
**–**
**–**
**3,892**
2,660
–
–
2,660
**82,591**
**–**
**6,870**
**89,461**
72,588
–
–
72,588
**568,094**
**–**
**–**
**568,094**
566,528
–
–
566,528
**31,079**
**–**
**–**
**31,079**
–
–
–
–
**1,986,693**
**103,797**
**6,870**
**2,097,360**
1,660,899
319,493
–
1,980,392
**1,769,183**
**70,508**
**2,998**
**1,842,689**
1,875,395
56,386
–
1,931,781
**1,769,183**
**70,508**
**2,998**
**1,842,689**
1,875,395
56,386
–
1,931,781
**217,510**
**33,289**
**3,872**
**254,671**
(214,496)
263,107
–
48,611
**344,143**
**–**
**49,048**
**393,191**
73,105
–
–
73,105
**561,653**
**33,289**
**52,920**
**647,862**
(141,391) 263,107
–
121,716
**16,600**
**(16,600)**
**–**
**–**
–
–
–
–| |---|---| ||**578,253**
**16,689**
**52,920**
**647,862**
(141,391)
263,107
–
121,716
**7,034,928**
**402,052**
**292,763**
**7,729,743**
7,176,319
138,945
292,763
7,608,027
**7,613,181**
**418,741**
**345,683**
**8,377,605**
7,034,928
402,052
292,763
7,729,743| 12 **The Liberal Jewish Synagogue STATEMENT OF FINANCIAL POSITION AS AT** ## **31 DECEMBER 2021** |**Note**
**FIXED ASSETS**
Tangible assets
10
Heritage assets
11
Investments
12
**CURRENT ASSETS**
Stocks
13
Debtors
14
Cash at bank and in hand
**CREDITORS:**Amounts falling due
within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
Provisions for liabilities
16
**NET ASSETS**
**CHARITY FUNDS**
Restricted Funds
17
Endowment Funds
17
Unrestricted Funds
17
**TOTAL FUNDS**|**2021**
**£**
**£**
**4,967,065**
**54,450**
**3,333,549**
**8,355,064**
**–**
**227,680**
**595,935**
**823,615**
**(499,074)**
**324,541**
**8,679,605**
**(302,000)**
**8,377,605**
**418,741**
**345,683**
**7,613,181**
**8,377,605**|2020
£
£
4,779,913
54,450
2,892,858
7,727,221
429
502,588
575,592
1,078,609
(755,087)
323,522
8,050,743
(321,000)
7,729,743
402,052
292,763
7,034,928
7,729,743|2020
£
£
4,779,913
54,450
2,892,858
7,727,221
429
502,588
575,592
1,078,609
(755,087)
323,522
8,050,743
(321,000)
7,729,743
402,052
292,763
7,034,928
7,729,743| |---|---|---|---| ||||7,727,221
323,522| ||**823,615**
**(499,074)**|1,078,609
(755,087)|| ||||| ||||8,050,743
(321,000)| ||||7,729,743| ||||402,052
292,763
7,034,928| ||||7,729,743| The financial statements were approved by the Trustees on 9 June 2022 and signed on their behalf by: Sue Head Chairman David H Adams (FCA) Honorary Treasurer The notes on pages 18 to 27 form part of these financial statements. 13 ## **The Liberal Jewish Synagogue STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021** |**Cash flows from operating activities**
Net income for the year
**Adjustment for:**
Depreciation charges
Interest and dividends (received)
Rent (received)
Net (gains) on investments
Decrease/ (increase) in stock
Decrease in debtors
(Decrease) in creditors
(Decrease)/ increase in pension costs provision
Net cash received from operating activities
**Cash flows from investing activities**
Purchase of property, plant and equipment
Purchase of investments
Proceeds from sale of investments
Dividend and interest receipts
Rent received
**Net cash (used in) investing activities**
**Total Cash Flows**
Cash and cash equivalents at 1 January 2021
**Cash and cash equivalents at 31 December 2021**
**Analysis of changes in net debt**
**Statement of changes in net debt**
**Cash and cash equivalents**
Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|2020
£
575,592
187,178
762,770|**2021**
**£**
**506,516**
**51,077**
**(63,061)**
**(26,400)**
**(251,846)**
**429**
**275,181**
**(256,013)**
**(19,000)**
**216,883**
**(238,229)**
**(2,269,372)**
**2,145,745**
**63,061**
**26,400**
**(272,395)**
**(55,512)**
**762,770**
**707,258**
Cash Flows
£
20,343
(75,855)
**(55,512)**|2020
£
121,716
49,387
(31,115)
(25,400)
(73,105)
(1)
271,987
(28,618)
4,000| |---|---|---|---| ||||288,851| ||||(324)
(1,968,713)
1,724,767
31,115
25,400| ||||(187,755)| ||||101,097
661,673| ||||762,770| ||||2021
£
**595,935**
**111,323**
**707,258**| 14 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES** ## _1.1 Statement of compliance_ The financial statements have been prepared in accordance with 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Liberal Jewish Synagogue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The accounts are presented in Sterling and are rounded to the nearest pound. _1.2 Company information_ The Liberal Jewish Synagogue is a private company limited by guarantee and incorporated in England. Its registered office and principal place of business is 28 St John's Wood Road, London, NW8 7HA. ## _1.3 Fund accounting_ General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. The general fixed asset fund represents the net book value of tangible fixed assets and heritage assets which are not readily realisable in pursuit of the charity’s day-to-day operation. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Transfers between funds occur for a number of reasons including when funds are closed on completion of a project, when fixed assets are purchased or when Trustees decide to release funds from a designated fund. ## _1.4 Income_ All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Income from charitable activities relates mainly to fees received in respect of the LJS Nursery School, cemetery fees, and payments for books and materials for Rimon Religion School students, venue hire and synagogue activities. Interest on funds held at the bank 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 the dividend has been declared. Interest and dividends from the investment portfolio are recognised on notification by our investment manager (Note 12). 15 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES (continued)** Investment income relates to rental income (which is recognised when it comes due), income from an associated company (when it is received), and dividends and interest received in relation to fixed asset investments held by the charity. ## _1.5 Expenditure_ Expenditure is accounted for on an accruals basis. Support costs, including governance costs, are allocated to charitable costs against two grouped strategic areas: Spirituality & Sustainability (90%) and Learning & Community (10%). Irrecoverable VAT is included with the expense item to which it relates. Governance costs are the costs of providing information to and attendance at trustees' meetings and public accountability. ## _1.6 Going concern_ The Trustees have reviewed the circumstances of the charity and consider that adequate resources continue to be available to fund the activities of the charity of the foreseeable future. The Trustees do not believe that the COVID19 pandemic will have any impact on the charity’s ability to continue as a going concern based on reserves and the value of investments held. The Trustees therefore consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## _1.7 Tangible fixed assets and depreciation_ The charity's freehold property comprises land and buildings including subsequent improvements to the property. Depreciation is not charged on the land element, which is instead subject to impairment review. No depreciation charge is made against the building and improvements as it is considered that the residual value of these is at least as great as the carrying value and not materially different to cost. The charity operates a rolling repairs and maintenance programme to prolong the useful life of the property and to ensure that the above policy continues to be appropriate. Other tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Fixtures and fittings: 4% to 20% Computer equipment: 25% to 33% Depreciation is not provided on assets under construction until they are brought into use. The asset under construction represents four flats which are being built by Newbourne Properties Ltd. These flats represent consideration for the sale of unused land to the developer. The cost to date represents the consideration towards the cost of construction. ## _1.8 Heritage Assets_ Heritage assets are assets of historical or religious importance that are held to further the preservation, conservation and education objectives of the synagogue and contribute to culture and activities. They are capitalised immediately on purchase or receipts of donation, and held at cost as depreciation is not considered to be material. The Trustees perform an annual impairment review and depreciation is charged only if significant impairment is found to have occurred. ## _1.9 Investments_ Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently measured at their fair value as at the reporting date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Investment property is initially recognised at cost. After recognition, it is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised through profit or loss. 16 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES (continued)** ## _1.10 Stocks_ Stocks are valued at the lower of cost and net realisable value on a first in first out basis. ## _1.11 Debtors_ Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due. _1.12 Cash at Bank and in hand_ Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. _1.13 Creditors_ Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. _1.14 Provisions for liabilities_ Provisions are made where an event has taken place that gives the charity a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to statement of financial activities in the year that the charity becomes aware of the obligation and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. Contingent liabilities are not recognised. They arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date, or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the charity's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow is remote. When payments are eventually made, they are charged to the provision carried in statement of financial position. _1.15 Judgements in applying accounting policies and key sources of estimation uncertainty_ The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. The Trustees do not believe that the current COVID-19 pandemic will have a material impact, however, the nature of estimation means that actual outcomes could differ from those estimates. ## _Accruals:_ The charity makes an estimate of accruals at the year-end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment. ## _Tangible fixed assets:_ Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are considered. ## _Provision for future pension costs:_ The charity has made an estimate of the future costs required to fund its pension liability. The original provision was based on an actuarial valuation and re-evaluated in 2021. The provision is stated at that amount less subsequent payments made to reduce the liability. In the interest of consistency, where we have made improvements to the layout or substance of the accounts we applied the same approach to the previous year (for comparative purposes). Presentational improvements do not affect the overall outcome. 17 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2 INCOME FROM DONATIONS AND LEGACIES** |Membership fees receivable
Donations
Restricted donations and
grants
Legacies
**FUNDRAISING EVENT INCOME**
Fundraising event income|**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£
**545,714 –**
**– 545,714**555,769 –
–
555,769
**463,294 – –**
**463,294**
392,851
–
–
392,851
**–**
**93,797**
**– 93,797**
–
319,493 – 319,493
**292,029**
**10,000**
**–**
**302,029**
70,503
– –
70,503| |---|---| ||**1,301,037**
**103,797 –**
**1,404,834**
1,019,123
319,493
–
1,338,616| ||**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£| ||**3,892 –**
**–**
**3,892**
2,660 –
–
2,660| ## **3 FUNDRAISING EVENT INCOME** ## **4 INVESTMENT INCOME** |**INVESTMENT INCOME**||||||||| |---|---|---|---|---|---|---|---|---| ||||**Endow-**||||Endow-|| ||**Unrestrict-**|**Restricted**|**ment**|**Total**|Unrestrict-|Restricted|ment|Total| ||**ed funds**|**funds**|**funds**|**funds**|ed funds|funds|funds|funds| ||**2021**|**2021**|**2021**|**2021**|2020|2020|2020|2020| ||**£**|**£**|**£**|**£**|£|£|£|£| |Investment property rental||||||||| |income|**26,400**|**–**|**–**|**26,400**|25,400|–|–|25,400| |Blazer Court income|**–**|**–**|**–**|**–**|16,073|–|–|16,073| |Interest and dividends||||||||| |receivable|**56,191**|**–**|**6,870**|**63,061**|31,115|–|–|31,115| ||**82,591**|**–**|**6,870**|**89,461**|72,588|–|–|72,588| |**INCOME FROM CHARITABLE**|**ACTIVITIES**|||||||| ||||**Endow-**||||Endow-|| ||**Unrestrict-**|**Restricted**|**ment**|**Total**|Unrestrict-|Restricted|ment|Total| ||**ed funds**|**funds**|**funds**|**funds**|ed funds|funds|funds|funds| ||**2021**|**2021**|**2021**|**2021**|2020|2020|2020|2020| ||**£**|**£**|**£**|**£**|£|£|£|£| |Nursery school|**314,730**|**–**|**–**|**314,730**|306,824|–|–|306,824| |Cemetery|**208,729**|**–**|**–**|**208,729**|209,917|–|–|209,917| |Religion school|**16,337**|**–**|**–**|**16,337**|17,230|–|–|17,230| |Venue hire|**21,914**|**–**|**–**|**21,914**|27,822|–|–|27,822| |High Holy Day tickets|**2,150**|**–**|**–**|**2,150**|520|–|–|520| |Other synagogue activities|**4,234**|**–**|**–**|**4,234**|4,215|–|–|4,215| ||**568,094**|**–**|**–**|**568,094**|566,528|–|–|566,528| ## **5 INCOME FROM CHARITABLE ACTIVITIES** Other synagogue activities include book sales and wedding fees. 18 **6 CHARITABLE EXPENDITURE (Including Allocation of Support Costs)** ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** |**CHARITABLE EXPENDITURE**
Staff costs
Direct costs
Pension adjustment
Allocation of total support costs
Staff costs
Direct costs
Pension adjustment
Allocation of total support costs|**Spirituality &**
**Sustainability**
**Learning & Community**
**Unrestricted**
**Restricted**
**Total**
**2021**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
**272,544**
**365,873**
**2,737**
**641,154**
**376,963**
**54,738**
**67,771**
**499,472**
**(19,000)**
**–**
**–**
**(19,000)**
**648,957**
**72,106**
**–**
**721,063**| |---|---| ||**1,279,464**
**492,717**
**70,508**
**1,842,689**| ||Spirituality &
Sustainability
Learning & Community
Unrestricted
Restricted
Total
2020
2020
2020
2020
£
£
£
£
309,158
380,767
3,429
693,354
444,397
50,491
52,957
547,845
4,000
–
–
4,000
617,924
68,658
–
686,582| ||1,375,479
499,916
56,386
1,931,781| The pension adjustment in 2021 is due to an annual actuarial re-evaluation of the sole pension liability. Included in Spirituality & Sustainability is £2,998 relating to expenditure on investment manager fees and cemetery maintenance, funded from the Angela Furst Endowment Fund. |**SUPPORT COSTS**
Staff costs
Administration
Building and facilities
Legal and professional
Governance
Depreciation
Staff costs
Administration
Building and facilities
Legal and professional
Governance
Depreciation|**Administration,**
**building & facilities**
**Governance costs**
**Total Support**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**309,313**
**–**
**309,313**
**197,616**
**–**
**197,616**
**108,065**
**–**
**108,065**
**–**
**30,007**
**30,007**
**–**
**24,985**
**24,985**
**51,077**
**–**
**51,077**| |---|---| ||**666,071**
**54,992**
**721,063**| ||Administration,
building & facilities
Governance costs
Total Support
2020
2020
2020
£
£
£
339,386
–
339,386
152,182
–
152,182
96,920
–
96,920
–
37,997
37,997
–
10,710
10,710
49,387
–
49,387| ||637,875
48,707
686,582| Support costs are allocated 90% to Spirituality & Sustainability and 10% to Learning & Community. 19 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **7 AUDITOR'S REMUNERATION** The auditor's remuneration amounted to £8,000 (2020: £7,700). ## **8 ALLOCATION OF STAFF** The average monthly number of employees was 46 (2020: 49), 12 were full time (2020: 13), 34 were part time (2020: 35). Of these, 29 are staff who work during term times as teachers in the LJS Nursery or the _Rimon_ religion school. The LJS also offers young people the opportunity to work as teaching assistants in Rimon. They receive a stipend for each session they work. |The number of full-time equivalents was:
Spirituality and Sustainability
Learning & Community
Support
**9**
**STAFF COSTS**
Staff costs were as follows:
Wages and salaries
Employers' NIC
Other pension costs
The number of higher paid employees was:
In the band £60,001 - £70,000
In the band £70,001 - £80,000|**2021**
2020
**FTE**
FTE
**9.0**
8.8
**12.0**
14.0
**3.6**
4.0| |---|---| ||**24.6**
26.8| ||**2021**
2020
**£**
£
**831,656**
910,677
**72,971**
76,284
**45,840**
45,779| ||**950,467**
1,032,740| ||**2021**
2020
**No.**
No.
**1**
1
**1**
1| There are three key management personnel within the charity. During the year, they received remuneration of £260,692 (2020: £238,772) including salary, employers' NIC and employer's contribution to pension. ## **10 TANGIBLE FIXED ASSETS** |**TANGIBLE FIXED ASSETS**|| |---|---| |**Cost**
At 1 January 2021
Additions
**At 31 December 2021**
**Depreciation**
At 1 January 2021
Charge for the year
**At 31 December 2021**
**At 31 December 2021**
At 31 December 2020|**Freehold**
**Fixtures**
**Computer**
**Asset under**
**property**
**and fittings**
**equipment**
**Construction**
**Total**
**£**
**£**
**£**
**£**
**£**
**4,477,426 453,661**
**18,484**
**–**
**4,949,571**
**–**
**1,220**
**5,787**
**231,222**
**238,229**| ||**4,477,426 454,881**
**24,271**
**231,222**
**5,187,800**| ||**–**
**154,864**
**14,794 –**
**169,658**
**–**
**45,610**
**5,467 –**
**51,077**| ||**– 200,474**
**20,261 –**
**220,735**| ||**4,477,426**
**254,407**
**4,010**
**231,222**
**4,967,065**| ||4,477,426 298,797
3,690 –
4,779,913| 20 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** The asset under construction represents four flats which are being built by Newbourne Properties Ltd. These flats represent consideration for the sale of unused land to the developer. The cost to date represents the consideration towards the cost of construction. ## **11 HERITAGE ASSETS** |**HERITAGE ASSETS**
**Cost**
At 1 January 2021 and 31 December 2021|**2021**
2020
**£**
£| |---|---| ||**54,450**
54,450| The figure represents the cost of the Shoah Memorial which was designed by Anish Kappor and dedicated on 10 November 1996. The memorial is very important to the LJS and its members given the significance of the Holocaust to the Jewish experience of the 20th Century. In addition, the LJS holds a collection of paintings and other artefacts. These are not included in the balance sheet as historic cost information is not available and they are not considered to be of significant value to the open market, being of particular relevance to the LJS. |**12**
**INVESTMENTS**
**Market Value**
**At 1 January 2021**
**Additions**
**Disposals**(proceeds: £2,145,745 realised
gains: £39,770)
**Unrealised gains on investments**
**At 31 December 2021**
**Cash held by investment manager**
**At 31 December 2021**
**INVESTMENTS**
Market Value
At 1 January 2020
Additions
Disposals (proceeds: £1,724,767 realised
losses: £27,115)
Unrealised gains on investments
At 31 December 2020
Cash held by investment manager
At 31 December 2020
**Investments at fair value comprise:**
Investment property
Listed investments
Surplus cash
Unquoted investments
**Total investments**|**Investment**
**Listed**
**Property**
**Securities**
**£**
**£**
**538,655**
**2,167,023**
**–**
**2,269,372**
**–**
**(2,105,975)**
**141,345**
**211,804**|**Unlisted**
**Securities**
**Total**
**£**
**£**
**2**
**2,705,680**
**–**
**2,269,372**
**–**
**(2,105,975)**
**–**
**353,149**| |---|---|---| ||**680,000**
**2,542,224**
**–**
**111,323**|**2**
**3,222,226**
**–**
**111,323**| ||**680,000**
**2,653,547**|**2**
**3,333,549**| ||Investment
Listed
Property
Securities
**£**
**£**
538,655
1,872,976
–
1,968,713
–
(1,697,651)
–
22,985|Unlisted
Securities
Total
**£**
£

2
2,411,633
–
1,968,713

–
(1,697,651)
–
22,985| ||538,655
2,167,023
–
187,178|2
2,705,680

–
187,178| ||538,655 2,354,201|2
2,892,858| |||**2021**
2020
**£**
£
**680,000**
538,655
**2,542,224**
2,167,023
**111,323**187,178
**2**2| |||**3,333,549**2,892,858| 21 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** The unlisted investment is in Eljayess Enterprises Limited, a wholly owned subsidiary of the LJS, which did not trade during the year. Given that this company’s results are not material to the charity’s financial statements, group accounts are not required to be prepared under either the Companies Act or the Charities Act. Blazer Court Limited is an associated company created to service the residential property above the synagogue through resident management charges. This has not been consolidated as it is not a beneficially owned company. In accordance with the accounting policy for investment properties, a valuation has been obtained this year from an external Chartered Surveyor, in which the fair value of the property has increased by £141,345 on an open market value basis. |**13**|**STOCKS**|**2021**|2020| |---|---|---|---| |||**£**|£| ||Books for resale|**–**|429| ||The stock of books held at 31 December 2020 are limited|to prayer books for sale at cost.|| |**14**|**DEBTORS**|**2021**|2020| |||**£**|£| ||Trade debtors|**47,137**|40,927| ||Other debtors|**39,322**|42,266| ||Prepayments and accrued income|**141,221**
|419,395| |||**227,680**
|502,588| |**15**|**CREDITORS**|**2021**|2020| ||**Amounts falling within one year**|**£**|£| ||Trade creditors|**147,199**|30,960| ||Other taxation and social||| ||security|**20,518**|16,726| ||Other creditors|**110,030**|73,502| ||Accruals and deferred income|**221,327**
|633,899| |||**499,074**
|755,087| |**16**|**PROVISION FOR LIABILITIES**|**2021**|2020| |||**£**|£| ||At 1 January 2021|**321,000**
|317,000| ||(Decrease)/ increase in pension provision|**(19,000)**|4,000| ||At 31 December 2021|**302,000**
|321,000| The pension provision shown above was adjusted in 2021 due to an actuarial re-evaluation of the liability for one of these pensions. The provision was calculated in accordance with the provisions under FRS 102 and represents unfunded pension liabilities outside of a pension scheme. 22 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** |**17**
**STATEMENT OF FUNDS**
**Unrestricted Funds 2021**
_Designated Funds:_
Cemetery Improvement Fund
Dr Max Hulbert Legacy Fund
Olga Field Fund
Rosa Mintz Legacy Fund
LJS Building Renewal Fund
General Legacy Fund
General Funds
General Fixed Asset Fund
**Total Unrestricted Funds**
STATEMENT OF FUNDS
Unrestricted Funds 2020
_Designated Funds:_
Cemetery Improvement Fund
Dr Max Hulbert Legacy Fund
Olga Field Fund
Rosa Mintz Legacy Fund
LJS Building Renewal Fund
General Legacy Fund
General Funds
General Fixed Asset Fund
**Total Unrestricted Funds**|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**7,007**
**42,300**
**(14,586)**
**(34,721) –**
**–**
**128,016 –**
**–**
**–**
**–**
**128,016**
**162,123**
**–**
**–**
**–**
**–**
**162,123**
**32,478**
**–**
**– –**
**–**
**32,478**
**44,730**
**–**
**–**
**255,000**
**–**
**299,730**
**381,858**
**292,029**
**–**
**(255,000) –**
**418,887**| |---|---| ||**756,212**
**334,329**
**(14,586)**
**(34,721)**
**–**
**1,041,234**
**1,444,353**
**1,652,364**
**(1,703,520)**
**51,321**
**344,143**
**1,788,661**
**4,834,363**
**–**
**(51,077) –**
**–**
**4,783,286**| ||**7,034,928**
**1,986,693**
**(1,769,183)**
**16,600**
**344,143**
**7,613,181**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
–
(240) –
7,247
–
7,007
128,016 – – – –
128,016
162,123 – – –
–
162,123
32,478
– –
– –
32,478
44,730
–
– –
–
44,730
381,858 –
– –
–
381,858| ||749,205
(240) –
7,247
–
756,212
1,543,688
1,660,815
(1,826,008)
(7,247)
73,105
1,444,353
4,883,426
324
(49,387) –
–
4,834,363| ||7,176,319
1,660,899
(1,875,395)
–
73,105
7,034,928| ## **Unrestricted Funds 2021** ## _**Designated Funds:**_ **Dr Max Hulbert Legacy Fund:** the income arising from this unrestricted fund is used for publications and the intellectual promotion of Liberal Judaism. **Olga Field Fund:** is currently used to further the religious and charitable work of the LJS in relation to the elderly Members of the community but is not restricted to this purpose. **The LJS Centenary and Rabbi John Rayner Memorial Fund:** this unrestricted fund was established in memory of Rabbi John Rayner and to mark the Centenary of the LJS. The remaining funds were used in 2019 for the installation of a stained-glass window to mark the completion of the small sanctuary named in memory of Rabbi John Rayner. **Rosa Mintz Legacy Fund:** the income arising from this unrestricted fund is utilised as agreed to support Nursery, Youth and Education activities. **LJS Building Renewal Fund:** the synagogue building is now 29 years old. This unrestricted fund, established in 2017, will be used to fund building refurbishment projects to maintain the fabric and functionality of the synagogue. **General Legacy Fund:** Chosen legacies (depending on the ongoing Synagogue finances or unless they are restricted ) are allocated to this unrestricted fund and used to support the religious and charitable work of the synagogue. The transfer of £255,000 to the Building Renewal Fund this year represents an unrestricted legacy received for that amount, which has been designated towards the maintenance of the Synagogue. 23 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** |**Restricted Funds 2021**
Care for the Community Fund
David Goldstein Library Fund
Drop in for Asylum Families
Education Fund
Ministers' Discretionary Fund
Peggy Lang Publications Fund
Out and About Club
President’s Cup Fund
Rabbi J Rayner Bibliography Fund
Restaurant Tuesday
Singing for the Mind
Taxi Fund
EHCF Fund
Angela Ferst Fund
**Total Restricted Funds**
Restricted Funds 2020
Care for the Community Fund
David Goldstein Library Fund
Drop in for Asylum Families
Education Fund
Ministers' Discretionary Fund
Peggy Lang Publications Fund
Out and About Club
President’s Cup Fund
Rabbi J Rayner Bibliography Fund
Restaurant Tuesday
Singing for the Mind
Taxi Fund
EHCF Fund
Angela Ferst Fund
**Total Restricted Funds**|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**16,375**
**10,000**
**(819)**
**–**
**–**
**25,556**
**5,014 550 –**
**–**
**– 5,564**
**64,817**
**84,285**
**(53,118) –**
**–**
**95,984**
**2,591 – – –**
**– 2,591**
**7,956 1,842**
**(1,144) –**
**–**
**8,654**
**5,503 – –**
**–**
**–**
**5,503**
**23,386**
**3,395**
**(4,396) –**
**–**
**22,385**
**4,069 – – –**
**–**
**4,069**
**2,552**
**2,118 – –**
**– 4,670**
**8,909**
**300**
**(321)**
**–**
**–**
**8,888**
**1,800**
**1,307**
**(10,710)**
**8,400**
**–**
**797**
**3,170**
**– –**
**–**
**3,170**
**254,000**
**–**
**(25,000)**
**–**
**229,000**
**1,910 –**
**–**
**–**
**1,910**| |---|---| ||**402,052**
**103,797**
**(70,508)**
**(16,600)**
**–**
**418,741**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
10,375
7,000
(1,000) –
–
16,375
4,214 800 – –
– 5,014
63,578
45,788
(44,549) –
–
64,817
2,591
–
–
2,591
7,621
500
(165)
–
–
7,956
5,503 – –
–
–
5,503
18,149
6,015
(778)
–
–
23,386
4,069
–
–
–
–
4,069
2,552
–
– –
–
2,552
8,789 300
(180) –
–
8,909
8,126
3,090
(9,416) –
–
1,800
1,170
2,000
–
–
–
3,170
–
254,000 –
–
–
254,000
2,208 –
(298) –
–
1,910| ||138,945
319,493
(56,386)
–
–
402,052| ## **Restricted Funds 2021** **Care for the Community Fund:** the fund is used for Members most in need. **David Goldstein Library Fund:** this fund is to be used for books and equipment for the LJS Library. **LJS Drop-in for Asylum Families:** this fund was created for donations received to support the LJS Drop-in for Asylum Families. Funded entirely by donations, the monies raised support this project on an ongoing basis. 24 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** **Education Fund:** this fund supports youth and educational activities and was formed by the amalgamation of the Celia Rapp Fund, Theodore Goodman Fund, John Haggard Memorial Fund, Louis P Jacobs Prize Fund, Marsden Family Fund. **Ministers' Discretionary Fund:** this fund is for donations given for our Rabbis to use at their discretion to support the charitable objects of the synagogue. **Out & About Club:** is a community initiative which provides food and entertainment fortnightly for local elderly and disabled people. Funded entirely by donations, the monies are used to support the club on an ongoing basis. **Peggy Lang Publications Fund:** the fund was created to support publications in furtherance of Liberal Judaism. **President's Cup Fund:** this fund provides for an annual prize to the young person showing the greatest commitment to the community. **Rabbi J Rayner Bibliography:** this fund is to finance an LJS Research Fellow to undertake scholarly research into the sermons and lectures of Rabbi John Rayner and to facilitate the dissemination of his thoughts and writing. **Restaurant Tuesday:** this fund is used to provide a monthly meal for elderly Members and visitors. **Singing for the Mind:** this fund is used to enable people with memory problems or dementia to come together to sing. This includes Members and Non-members, local and London-wide. Funded entirely by donations, the group meets weekly, using the monies raised for its ongoing professional support costs. **Taxi Fund:** this fund finances the cost of taxis to and from the synagogue for the elderly or infirm who are unable to afford private transport but depend on it to get to the synagogue for religious services and other activities. **EHCF Fund:** this designated fund has been established from a gift given by the Ernest Hecht Charitable Foundation to be used over the next ten years to fund the Singing for the Mind programme and to fund activities and projects that promote online learning, religious observance and community events for children and elderly, isolated or disabled adults. Monies will be allocated annually to the specified projects and programmes. **Angela Ferst Fund:** this fund was set up in 2016 following a specified legacy to buy prayer books for the community. |**Endowment Funds 2021**
Angela Ferst Cemetery Fund
**Total Endowment Funds**
Endowment Funds 2020
Angela Ferst Cemetery Fund
Total Endowment Funds|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**292,763**
**6,870**
**(2,998)**
**–**
**49,048**
**345,683**| |---|---| ||**292,763**
**6,870**
**(2,998) –**
**49,048 345,683**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
292,763 –
– –
–
292,763| ||292,763
– – –
–
292,763| **Angela Ferst Cemetery Endowment Fund:** the estate of Angela Ferst has bequeathed a fund of £292,763 in 2019 for the maintenance of the Ferst family graves at the LJS Cemetery. Established in 2019, income generated from the investment of this fund may be used for the maintenance of the cemetery only. 25 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** ## **SUMMARY OF FUNDS 2021** |**SUMMARY OF FUNDS 2021**|| |---|---| |**Unrestricted Funds**
**General Funds**
**General Fixed Asset Fund**
**Restricted Funds**
**Endowment Funds**
SUMMARY OF FUNDS 2020
Unrestricted Funds
General Funds
General Fixed Asset Fund
Restricted Funds
Endowment Funds|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**756,212**
**334,329**
**(14,586)**
**(34,721)**
**–**
**1,041,234**
**1,444,353**
**1,652,364**
**(1,703,520)**
**51,321 344,143 1,788,661**
**4,834,363**
**–**
**(51,077)**
**–**
**–**
**4,783,286**| ||**7,034,928 1,986,693**
**(1,769,183)**
**16,600 344,143 7,613,181**
**402,052**
**103,797**
**(70,508)**
**(16,600)**
**–**
**418,741**
**292,763**
**6,870**
**(2,998)**
**–**
**49,048**
**345,683**| ||**7,729,743**
**2,097,360**
**(1,842,689)**
**– 393,191**
**8,377,605**
At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
749,205
(240) –
7,247
–
756,212
1,543,688
1,660,815
(1,826,008)
(7,247)
73,105
1,444,353
4,883,426 324
(49,387)
–
–
4,834,363| ||7,176,3191,660,899
(1,875,395) –
73,105 7,034,928
138,945
319,493
(56,386)
–
–
402,052
292,763
–
–
–
–
292,763| ||7,608,027
1,980,392
(1,931,781)
–
73,105
7,729,743| ## **18 ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Tangible fixed assets
Heritage assets
Investments
Current assets
Creditors due within one year
Provisions for liabilities|**Unrestricted**
**Restricted**
**Endowment**
**Total**
Total
**Funds**
**Funds**
**Funds**
**Funds**
Funds
**2021**
**2021**
**2021**
**2021**
2020
**£**
**£**
**£**
£
**4,967,065**
**– –**
**4,967,065**
4,779,913
**54,450**
**–**
**– 54,450**
54,450
**2,569,125**
**418,741**
**345,683**
**3,333,549**
2,892,858
**823,615**
**– – 823,615**1,078,609
**(499,074)**
**–**
**–**
**(499,074)**
(755,087)
**(302,000)**
**–**
**–**
**(302,000)**
(321,000)| |---|---| ||**7,613,181 418,741**
**345,683**
**8,377,605**
7,729,743| 26 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **19 COMMITMENTS UNDER OPERATING LEASES** As at 31 December 2021, the charity had future minimum lease payments under non-cancellable operating leases for office equipment as follows: |leases for office equipment as follows:|| |---|---| |Not later than 1 year
Later than one year but less than five years|**2021**
2020
**£**
£
**15,382**
17,500
**46,802**
35,000| ||**62,184**
52,500| ## **20 TRUSTEES REMUNERATION AND RELATED PARTIES** None of the Trustees received remuneration during 2021. One trustee was reimbursed £215.60 for expenses incurred. During the year, a number of trustees made donations to LJS. The aggregate value of these donations was £10,395. One of the Trustees is the Vice Chair of Liberal Judaism, the umbrella organisation for all Liberal Jewish synagogues. The LJS makes an annual congregational subscription on behalf of members to Liberal Judaism: £94,000 in 2021 (2020: £87,086). The LJS also received rental income of £6,250 from Liberal Judaism, which was offset against the contribution made. ## **21 CORPORATION TAX** As a charity, the LJS is exempt from UK tax on income and gains to the extent that these are applied to its charitable objects. No UK tax charges have arisen in the charity, during 2021 or in the previous year. 27 ## **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Opinion** We have audited the financial statements of the Liberal Jewish Synagogue (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** 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 charitable company’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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 28 **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **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: 29 ## **The Liberal Jewish Synagogue** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice Accounting and Reporting by Charities preparing this accounts in accordance with the Financial reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and the Companies Act 2006), those that relate to data protection (General Data Protection Regulation) and those in relation to safeguarding, specifically the requirements of the Health and Social Care (Safety and Quality) Act 2015. We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls we: - performed analytical procedures to identify any unusual or unexpected relationships; and - performed substantive testing of expenditure including the authorisation thereof; - tested journal entries to identify unusual transactions; and - assessed whether the judgements and the assumptions made in determining accounting estimates for the valuation of the pension liability, the useful economic lives of tangible fixed assets and the estimations of future income and expenditure flows were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - reading the minutes of meetings of those charged with governance; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 30 ## **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 auditor's 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. Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 31 Registered number: 09113305 Charity number: 1159292 **The Liberal Jewish Synagogue (A company limited by guarantee)** **Trustees' Report and Financial Statements for the year ended 31 December 2021** ||Page| |---|---| |Reference and administrative details of the charity|2| |Trustees' report|3-11| |Statement of financial activities|12| |Statement of financial position|13| |Statement of cash flows|14| |Notes to the financial statements|15-27| |Independent auditor’s report|28-31| ## **The Liberal Jewish Synagogue REFERENCE AND ADMINISTRATIVE INFORMATION 31 DECEMBER 2021** ## **Trustees** Honorary Officers: Sue Head, Chairman Peter Loble, Honorary Treasurer Resigned 23 June 2021 David H Adams (FCA), Honorary Treasurer Chris Godbold, Lead on Governance Benita Hart, Lead on Communications Karen Newman, Lead on HR Steven Behr Sue Bolsom Sylvia Churba David Davidson Lisa Gershon Harriett Goldenberg Sarah Lasher Michael Romain Steve Penn David Rigal Simon van Someren Alex Weiss Anthony Sefton Resigned 14 October 2021 Resigned 13 May 2021 Resigned 23 June 2021 Appointed 10 June 2021 ## **President** Martin Slowe ## **Honorary Lawyer** Daniel Sternberg ## **Executive Director** Lysa Schwartz Jonathan Bruck Until September 2021 From September 2021 ## **Company registered number** 09113305 ## **Charity registered number** 1159292 ## **Registered office** 28 St John’s Wood Road, London NW8 7HA ## **Independent auditor** Buzzacott LLP, 130 Wood Street, London EC2V 6DL ## **Bankers** CAF Bank Ltd, 25 Kings Hill Avenue, West Malling, Kent M19 4JQ ## **Investment managers** Redmayne Bentley LLP, 9 Bond Court, Leeds, West Yorkshire LS1 2JZ 2 **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** The Trustees of the LJS are pleased to present their Trustees’ Report together with the financial statements of the charitable company for the year ended 31 December 2021. This report reflects the continuing impact of the COVID-19 pandemic on The Liberal Jewish Synagogue throughout 2020 and 2021. ## **Vision and values** The Liberal Jewish Synagogue (‘the LJS’) is the oldest and largest of forty Liberal and Progressive Jewish communities in the UK, Republic of Ireland, Holland and Denmark. The LJS is an inclusive, diverse, and egalitarian community of all ages. We work together to explore Jewish traditions, texts, and values, applying them to the challenge of living ethical lives in the context of the social, intellectual, technological, scientific and environmental realities of the twenty first century. We seek to sustain and develop the Jewish people’s sacred task: to build a just and compassionate world, based on our commitment and responsibility to each other as Jews and to our friends and neighbours of other faiths, cultures and ethnicities. We strive to enrich and celebrate our Jewish identity in the context of shared spirituality and creativity, intellectual challenge, and meaningful relationships. The LJS is guided by its values: 1. _Kehillah:_ the LJS seeks to be a warm, welcoming, and compassionate community for all those who wish to engage with Judaism 2. _Avodah:_ the LJS cherishes meaningful, shared worship and spiritual engagement within the context of Liberal Judaism 3. _Torah:_ the LJS prioritises life-long learning and the intellectual stimulation and challenge of Jewish texts, ideas, and practice 4. _Gemilut Chasadim:_ the LJS nurtures meaningful relationships through pastoral care and spiritual encounter and encourages social networking across generations and between faiths and cultures 5. _Tikkun Olam:_ the LJS values and engages in purposeful activity that is designed to repair and heal the world 6. _Bal Tashchit:_ the LJS strives to increase awareness of the climate emergency and to reduce our human impact on the environment 7. _Chayyim:_ the LJS celebrates and commemorates all life cycle events that help to give meaning to people’s lives 8. _Din v’Cheshbon:_ the LJS is committed to transparent and responsible governance of the congregation and financial accountability by its trustees _9. Yahadut Mitkademet:_ the LJS encourages its members’ contribution to the dynamic growth and development of Liberal Judaism in the UK, Europe, Israel and beyond 10. _Bakkesh shalom_ : the LJS endorses the State of Israel’s Declaration of Independence as a country based on the principles of ‘liberty, justice and peace’ and ‘the full social and political equality of all its citizens’ ## **Activities** The activities of the LJS are organised into four strategic areas: spirituality, learning, community, and sustainability. A strategic plan has been developed to provide the direction and focus for work during a three-year period. Each year the strategic plan is revised and budgeted by the Honorary Officers, Council, Executive Director, Rabbis, senior members of staff and Committee Chairs. This provides the framework for the programme of services, activities, and events for the next year. Both documents are approved by Council. Progress against this plan is analysed regularly, as are the quarterly management accounts, and reported to the Honorary Officers and Council. 3 **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** During 2020 and subsequently 2021, the strategic plan was altered radically in response to the Covid-19 pandemic. Throughout 2021, the LJS continued to rise to the challenges presented by the pandemic. The synagogue has been creative and forward looking and is emerging stronger as a consequence, with services, education programmes and community events, taking place online and in person. ## **Spirituality (including music)** Central to the work of the LJS are the services for Shabbat and festivals, as well as for life-cycle celebrations; these are under the leadership of Senior Rabbi, Alexandra Wright. During 2021, the LJS moved from online services only, as in the lockdowns of 2020, to hybrid services. Because of Covid-19 restrictions, the synagogue could allow only 150 congregants to attend each of the High Holy Day services, but it was a wonderful moment for the community to have some people able to return in person. Additionally, there were over 11,000 online views of the Rosh Hashanah and Yom Kippur services. The opening of the synagogue for services was very carefully managed to adhere to Government guidelines to protect the health of the congregants. The LJS continues its strong commitment to music as an integral part of services, education programmes, community events, and heritage. During the building closures, the professional choir, and on occasions, the Members Choir, both led by Director of Music, Cathy Heller Jones, continued to provide music for each service, joining the rabbis online and in person. ## _Spirituality highlights during 2021:_ - The use of technology provided high quality online services - The synagogue was re-opened for in person services - There were over 11,000 online views of the Rosh Hashanah and Yom Kippur services - Despite Covid 19 restrictions, in person High Holy Day services were held for a limited number of people - Many attended the moving Kristallnacht Memorial event with guest speaker Sir Anish Kapoor - A successful Interfaith Chanukkah celebration was held - Music, pre-recorded by the choir, enhanced online Shabbat and festival services ## **Learning** The LJS provides a wealth of opportunities for life-long learning. In 2021 online learning was used for adult education, and until the end of the summer term for Rimon Religion School, while the Nursery ran its classes in person. From September, Rimon returned to meeting in person, and adult learning was organised through hybrid programmes. Rabbi Dr Michael Hilton continued as Scholar in Residence; his courses attracted a wide interest and participation from within and outside the community. ## _Learning highlights during 2021:_ - Rimon re-opened in the building on Shabbat mornings - Hybrid programmes and talks were developed for adult learners, including the series of lectures titled Judaism and Islam: A shared History, with Rabbi Dr Michael Hilton and Dr Harith Ramli. ## **Community** The LJS offers a wide range of social and cultural activities for the whole community, pastoral care for those in need, as well as enjoyment to all. Through the efforts of Community Care Co-ordinator, Aviva Shafritz, the 4 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** rabbis, together with a committed group of volunteer co-ordinators and over 150 volunteers, the LJS offered regular contact and support for those in urgent need, and a range of weekly and monthly events in line with Covid guidelines. The LJS also works in partnership with local organisations to provide public benefit for the isolated, elderly, disabled, and for asylum-seeking families. When we can, we also offer selected charities the opportunity to hire rooms at the LJS at a preferential rate, to run their own gatherings and meetings. ## **Volunteers** Volunteering is at the heart of the synagogue. There was inevitable disruption in 2021 because of Covid-19 restrictions, however, the pandemic has acted as a catalyst in how to support and engage Members, not only those who were isolated due to the lockdowns. Despite not being able to run activities in the usual way, volunteers have encouraged people to remain in touch through regular telephone contacts and online gatherings. Members of Council are also volunteers and act as Trustees; they work hard for the LJS and are involved in a wide range of committees and working groups, where they can use their specialist knowledge. ## **Working in partnership** The LJS is the flagship synagogue of the Liberal Judaism movement (the umbrella organisation of Liberal and Progressive synagogues in the UK and parts of Europe). It provides the movement with an annual subscription and this year, because of issues with Montague House (Liberal Judaism’s Head Office), Liberal Judaism is now based at the LJS. Through Liberal Judaism, the LJS also supports Leo Baeck College, which is the primary academic and education institution for European Progressive Judaism and where many Progressive rabbis are trained. The LJS is a member of the European Union of Progressive Judaism and the World Union for Progressive Judaism. It is also a member of the UK Board of Deputies of British Jews with four members of the congregation serving as representatives. This ensures that the voice of the LJS is heard within the umbrella group that speaks for the British Jewish community. ## **Public benefit** In addition to its religious and educational aims, the LJS functions as a centre for activities to which the wider community is regularly welcomed. Again, because of Covid-19 restrictions in 2021, much of this excellent work was interrupted. However, many events had moved to meeting online in 2020, and returned to the synagogue building towards the end of 2021 as restrictions eased. Activities and social events run by the LJS include the Out and About Club, which provides fortnightly entertainment for elderly, disabled, and often isolated, members of the local community, and Singing for the Mind, which is a weekly group, led by a trained singing leader, for people with memory problems and moderate dementia, accompanied by their carers. The LJS continued to support Asylum Seeker Families through the Drop In project, although for most of the year being unable to meet in person. The LJS promotes inter-faith understanding through initiatives such as the annual interfaith Chanukkah event _._ The synagogue also works with neighbouring churches and mosques, discussing issues of local and national concern or interest and developing inter-faith understanding. The Trustees have had regard to the guidance issued by the Charity Commission concerning public benefit. They are satisfied that the information given in this report, particularly regarding the activities undertaken when read in conjunction with the objects of the charity, demonstrates that the requirements to identify public benefit have been met. Community highlights during 2021: - Training and supporting extra volunteers to strengthen the level of contact with members of the LJS community in response to Covid 5 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED** ## **31 DECEMBER 2021 (continued)** - Increasing pastoral care by the Community Care Co-ordinator, rabbis and volunteers to provide direct assistance to those most in need - The responsiveness to the challenges of the Covid-19 restrictions of the volunteer leads of the social activities. Events were held ‘in person’ whenever possible, such as the Out and About Club Christmas party, Video and Tea taking place, and the Keep in Touch tea party. Singing for the Mind continued to be held online - A successful Jazz Evening was held as an in-person event - Maintaining the financial and emotional support for the asylum seeker families through phone calls and digital donations to provide essential items such as food, clothing, toiletries, and cleaning materials ## **Sustainability** Sustainability is not just about the future of the organisation; the LJS is also committed to the wider world and the future of our planet. Led by the Social Action Committee, the LJS initiates and participates in numerous activities within the community and beyond to improve sustainability and reduce the impact on the climate and our environment. One of the outcomes of the Covid-19 pandemic has been a reduction in food waste, and of paper and plastic, as well as transport dependence, and lower heating and utility use. On Mitzvah Day the Social Action Committee and volunteers participated in cleaning the Regent’s Canal. The office team, led by the Executive Director, works with the rabbis, Honorary Officers and Council to promote and encourage the thriving LJS community. This includes a continuing programme to improve communication, provide information, encourage participation, and care of the building to provide safe and clean and welcoming facilities. A major project, funded by a Covid appeal and the generosity of an anonymous donor, completed in 2021 was the upgrading of the Wi-Fi in the synagogue. The LJS also appointed a new Executive Director, Jonathan Bruck, to succeed Lysa Schwartz who retired during the year. The financial sustainability of the LJS is dependent upon the contribution of membership fees and other funding. A significant number of Members and Friends pay specially agreed reduced rates. No one is excluded by their inability to pay. During 2021, it was noticeable that the Covid-19 pandemic was having a direct impact on the financial position of an increasing number of LJS members; the LJS continues to do all it can to ensure that they remain part of the community. ## _Sustainability highlights during 2021:_ - Continuing to plan capital investment to modernise the 30-year-old synagogue building - Completing the first two stages of the project to update the heating - Updating the synagogue’s Wi-Fi and enhancing the technology - Completing the renovation of the roof - Renovating the cemetery toilets - Appointing a new Executive Director who began work mid-year ## **Fundraising in support of others** Each year, LJS Members and Friends support four charities through the annual High Holy Day Appeal: one Anglo-Jewish, one based in Israel, one UK non-Jewish charity, and the United Jewish Israel Appeal (UJIA). 2021 was a remarkable year; despite all the challenges of Covid-19, a fantastic £69,000 was raised and distributed to the Cardinal Hume Centre, Jewish Women’s Aid, and The School for Peace (Neve Shalom-Wahat-al Salaam). 6 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** The LJS also collects voluntary contributions to the UK Board of Deputies of British Jews, as well as making an annual subscription of over £90,000 to support the movement for Liberal Judaism. As a charity, the LJS aims to achieve best practice in the way in which it communicates with supporters. It takes care with both the tone of its communications and the accuracy of its data. The synagogue adheres to the Fundraising Regulator Code of Fundraising Practice. It applies best practice to protect supporters’ data: it never sells data or swaps data with other organisations and ensures that communication preferences can be changed at any time. The LJS manages its own fundraising led by the President, Members and Friends who volunteer, with administrative support by the staff team. All fundraising activities are approved and supervised by the Honorary Officers and Council. It does not currently employ professional fundraisers. The LJS undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2021, the charity received no complaints about its fundraising activities. ## **Plans for 2022** The LJS is managing a staged reopening from the latest lockdown caused by the COVID-19 pandemic, adhering closely to Government direction. Groups are being welcomed back to the synagogue, and events, such as the communal seder are being planned. Additionally, due to the unfortunate closure of West Central Liberal Synagogue, we are able to support the community by welcoming West Central Liberal Chavurah Club to the LJS once a month on Saturday afternoons. A new strategic plan for 2022-24, Reaching our Goals, has been completed with, for the first time, input from all the committees. Each committee identified their plans for the next three years, describing what success might look like, and how much these plans might cost. These were scrutinised by Council and the plan and budget agreed. There are some new and exciting initiatives, whilst also building upon existing initiatives from 2021. - A membership survey planned for May - A new volunteering initiative to attract and increase the number of volunteers - Ongoing major renovation work to the synagogue building, including updating the wiring, continuing with the heating project and lift maintenance - Review of our education and young family programmes - Appointment of key new staff, including a part-time rabbi - Renewal of our website and the development of external systems of communications - Together with Liberal Judaism, hosting events to celebrate Liberal Judaism’s one hundred and twentieth anniversary ## **Structure, governance, and management** ## **Governing document and organisational structure** The Liberal Jewish Synagogue is a company limited by guarantee (company number 09113305) governed by its Memorandum and Articles of Association dated 31 October 2014. This limited company was also registered as a charity (charity number 1159292) with the Charity Commission in November 2014. Prior to incorporation the LJS was an unincorporated charitable organisation. The members of the Council act as Trustees and administer the charity and also act as the Directors of the charitable company. The Council can have up to 19 members and meets monthly (except August). Wherever possible, the Chairs of the main Council committees are Council Members. All committees and working groups meet on a regular basis and provide recommendations to the Council for decision-making. The Council appoints an Executive Director to act in stewardship and manage the day-to-day running of the organisation. 7 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** The Executive Director has delegated authority, as approved by the Trustees, for operational matters. The Trustees believe that there is appropriate governance, organisational model and staffing structure in place to monitor and support the activities undertaken by our staff and volunteers. ## **Appointment of Trustees** The charity is a religious institution, and there is a requirement to be of the Jewish faith to be a Member. Only Members of The Liberal Jewish Synagogue can be elected to the Council. Trustees (Council Members) are elected by the members of the LJS by a show of hands at the Annual General Meeting. Trustees are elected for a maximum of two, three-year terms. Any Trustee who has served two terms cannot stand for re-election until at least one more year has passed. The Council elects from its Members a Chairman, Honorary Treasurer and any other positions, as agreed by Council, to constitute the Honorary Officers. Council delegates the running of the organisation to the Honorary Officers, subject to their overall supervision and monitoring of the financial position. ## **Trustee induction and training** Training for Trustees is by practice, encouragement to attend appropriate courses, and informal mentorship from other Trustees. Before standing for election, Members are encouraged to serve on committees. New Trustees are given an induction pack comprising a copy of the Charity Commission ‘Welcome Pack for New Trustees’, a copy of the LJS Constitution, the minutes of at least three Council meetings and a Charity Trustee form stating that they acknowledge and accept their responsibilities as Trustees, which they must sign and return. They also attend briefing sessions. ## **Related parties and co-operation with other organisations** None of our Trustees receive remuneration or other benefit from their work as a Trustee for the charity without approval. Only expenses incurred in the performance of Trustees’ duties can be reimbursed. Any connection between a Trustee or a member of staff of the charity must be disclosed to the Council in the same way as any other contractual relationship with a related party. In the current year, any related party transactions are reported in Note 20 to the accounts. Council is careful to monitor for any potential conflict of interest and respond accordingly. In 2021 it was noted that one Trustee is Vice Chair of Liberal Judaism. ## **Financial review** The financial year to 31 December 2021 reflects the impact of the Covid-19 pandemic on our regular sources of income and our continuing commitment to deliver our charitable aims. During the year our Members and Friends continued to support the LJS and we also benefited from the continuing support of donors to support our work with the elderly and vulnerable. Investments also contributed to the surplus. The LJS staff and volunteers worked tirelessly to deliver our programme of work, making reasonable savings when possible. The overall surplus for the year to 31 December 2021 was £506,516, thanks to an exceptional number of legacies and growth in investments (2020: £121,716). ## **Income** During 2021 unrestricted income which is generated from membership fees, donations and charitable activities was £1,993,563 (2020: £1,660,899). This is an overall increase of 17%, much of this can be explained by the extraordinary legacies in 2021 of £292,029 compared to 2020 when £70,503 was received. Membership fees fell by 2% and charitable activities (LJS Nursery, Rimon fees, funerals, venue, hire, etc) in 2021 were in line with 2020 £568,094 (2020: £566,528) but still low compared to pre Covid. 8 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED** ## **31 DECEMBER 2021 (continued)** We are fortunate that some Members make additional donations to assist those who are unable to pay the full fees. The President’s Patrons Fund, led by President Martin Slowe, also encourages Members to make an ongoing substantial financial commitment to support the sustainability of the LJS. Whilst the Covid appeal supported by a very generous anonymous donor allowed us to update the technology within the synagogue. Donations in 2021 were £486,294 (2020: £392,851). We remain immensely grateful for this ongoing support as well as from those who remember the LJS with legacies. Many of our activities could not run without internal fundraising campaigns and external grants. We are grateful to the continuing project funding provided by the Pears Foundation, and Ernest Hecht Charitable Foundation who have all responded positively to the changes we have had to introduce as a result of the government guidelines. The Ernest Hecht Charitable Foundation, grant of £254,000 received in 2020 will be allocated to projects over the next 10 years. ## **Expenditure** Our unrestricted costs decreased in 2021: £1,772,182 (2020: £1,875,395); restricted expenditure was higher at £70,508 (2020: £56,386), an increase on the previous year as we were able to provide a limited programme of activities and undertake and begin the much needed planned infrastructure investment in the building. In 2021, salaries, our largest overhead, reduced by 9% to £831,656 (2020: £910,677). In line with the impact of Covid staff who left were not immediately replaced and regrettably there was a salary freeze. ## **Future** During 2021 we were able to put aside some income to secure the future of the LJS, including creating a building sinking fund. Our external investment manager will continue to work at managing these surplus assets, along with our existing investments. Any additional investment income will contribute to our unrestricted costs. We also expect that the building work, which was started in 2021, on the unused land adjacent to the cemetery at Pound Lane, which was sold to Newbourne Properties Ltd to be completed, in early 2024. In exchange for the sale of the land, and a contribution toward the development, the agreement with the developer is that once the work is completed, the LJS will own four flats that can be rented to yield a regular income. ## **Investment policy** The Investment Committee, which is a sub-committee of the Finance Committee, includes the Honorary Treasurer and Members invited for their expertise and knowledge of finance and investments. Redmayne Bentley LLP, our investment managers, continued to follow the Council’s agreed policy of investing in ethical investments to achieve capital growth. During 2021 investments increased to £2,542,224 (2020: £2,167,023), an overall increase of 15% against a minimum target of 3%. The investment committee is in regular contact with our investment managers and meets regularly to discuss the investments held and their performance. ## **Reserves policy** The policy of the Trustees is to maintain a level of reserve that will provide a stable base from which to fund the charity’s future activities, including capital expenditure. The target set is £450,000 which represents three months’ expenditure. On 31 December 2021, the charity had free reserves of £1,720,665 (2020: £1,444,353), based on the general funds (Note 17) that could be drawn upon if required by the Trustees for specific purposes as agreed by them. If cash is required to meet our requirements, this can be realised from investments, including property. Details of both Unrestricted and Restricted Funds are summarised in Note 17 to the accounts. The free reserves currently exceed the target level; the Trustees are mindful of the need to retain funds in reserve to fund both unforeseen costs and the ongoing maintenance costs of the synagogue’s premises. Given 9 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** the anticipated level of work required in respect of the building over the coming years, the Trustees consider the level of reserves held to be reasonable and appropriate but will be looking to increase them if possible. ## **Risk management** The Trustees have a risk management strategy which comprises: - an annual assessment of the principal risks and uncertainties that the charity faces - the establishment of policies, systems and procedures to mitigate those identified risks - the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise - the ongoing review of cyber risks faced by the charity The LJS Risk Register is regularly reviewed and updated by the Finance Committee, Honorary Officers, Council and the Executive Director. This register sets out the major risks to which the synagogue is exposed and the systems which have been established to mitigate those risks. In 2022, Trustees continue to recognise the risk to the LJS of COVID-19 and the potential impact it may have on income generation. Long-term financial sustainability remains a major risk for the LJS. Based on the performance in 2021, we anticipate that our membership and nursery fees, which are the primary sources of income, will continue to be difficult to maintain, as well as our ability to generate income from the use of our building. Internal financial management risks are reduced through the implementation of internal controls in respect of the recording and the authorisation of all accounting transactions. Budgets are set for all types of income and expenditure; these are monitored by senior management, the Finance Committee, Honorary Officers and the Council. Management accounts are produced monthly and shared quarterly with the Finance Committee, Honorary Officers and Council. The Executive Director meets regularly with the Honorary Officers, and all financial details are regularly monitored by them. Attention is also focused on mitigating non-financial risks arising from safeguarding, fire, health and safety, security and vulnerable adult safeguarding which are dealt with by committees and groups of volunteers. This is overseen by the senior management, Honorary Officers, and the Council. ## **Statement of Trustees’ responsibilities** The Trustees (who are also Directors of the Liberal Jewish Synagogue for the purposes of company law) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and with the 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 the situation of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently - observe the methods and principles in 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) - make judgements and estimates that are reasonable and prudent - state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and 10 ## **The Liberal Jewish Synagogue TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the Trustees confirms that: - so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware - the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information This confirmation is given and should be interpreted in accordance with the provisions of S418 of the Companies Act 2006. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Sue Head Chairman 9 June 2022 11 ## **The Liberal Jewish Synagogue STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED** ## **31 DECEMBER 2021** |Note
**INCOME FROM**
Donations and legacies
2
Fundraising events
3
Investments
4
Charitable activities
5
Coronavirus Job Retention
Scheme Grant Income
**TOTAL INCOME**
**EXPENDITURE ON**
Charitable activities
6
**TOTAL EXPENDITURE**
**NET INCOME (EXPENDITURE)**
**BEFORE**
**INVESTMENT**
**GAINS (LOSSES)**
**NET GAINS (LOSSES) ON**
**INVESTMENTS**
12
**NET INCOME (EXPENDITURE)**
**FOR THE YEAR**
Transfers between funds
17
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total
funds
brought
forward
17
**TOTAL FUNDS**
**AT 31 DECEMBER 2021**|**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£
**1,301,037**
**103,797**
**–**
**1,404,834**
1,019,123
319,493
–
1,338,616
**3,892**
**–**
**–**
**3,892**
2,660
–
–
2,660
**82,591**
**–**
**6,870**
**89,461**
72,588
–
–
72,588
**568,094**
**–**
**–**
**568,094**
566,528
–
–
566,528
**31,079**
**–**
**–**
**31,079**
–
–
–
–
**1,986,693**
**103,797**
**6,870**
**2,097,360**
1,660,899
319,493
–
1,980,392
**1,769,183**
**70,508**
**2,998**
**1,842,689**
1,875,395
56,386
–
1,931,781
**1,769,183**
**70,508**
**2,998**
**1,842,689**
1,875,395
56,386
–
1,931,781
**217,510**
**33,289**
**3,872**
**254,671**
(214,496)
263,107
–
48,611
**344,143**
**–**
**49,048**
**393,191**
73,105
–
–
73,105
**561,653**
**33,289**
**52,920**
**647,862**
(141,391) 263,107
–
121,716
**16,600**
**(16,600)**
**–**
**–**
–
–
–
–| |---|---| ||**578,253**
**16,689**
**52,920**
**647,862**
(141,391)
263,107
–
121,716
**7,034,928**
**402,052**
**292,763**
**7,729,743**
7,176,319
138,945
292,763
7,608,027
**7,613,181**
**418,741**
**345,683**
**8,377,605**
7,034,928
402,052
292,763
7,729,743| 12 **The Liberal Jewish Synagogue STATEMENT OF FINANCIAL POSITION AS AT** ## **31 DECEMBER 2021** |**Note**
**FIXED ASSETS**
Tangible assets
10
Heritage assets
11
Investments
12
**CURRENT ASSETS**
Stocks
13
Debtors
14
Cash at bank and in hand
**CREDITORS:**Amounts falling due
within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
Provisions for liabilities
16
**NET ASSETS**
**CHARITY FUNDS**
Restricted Funds
17
Endowment Funds
17
Unrestricted Funds
17
**TOTAL FUNDS**|**2021**
**£**
**£**
**4,967,065**
**54,450**
**3,333,549**
**8,355,064**
**–**
**227,680**
**595,935**
**823,615**
**(499,074)**
**324,541**
**8,679,605**
**(302,000)**
**8,377,605**
**418,741**
**345,683**
**7,613,181**
**8,377,605**|2020
£
£
4,779,913
54,450
2,892,858
7,727,221
429
502,588
575,592
1,078,609
(755,087)
323,522
8,050,743
(321,000)
7,729,743
402,052
292,763
7,034,928
7,729,743|2020
£
£
4,779,913
54,450
2,892,858
7,727,221
429
502,588
575,592
1,078,609
(755,087)
323,522
8,050,743
(321,000)
7,729,743
402,052
292,763
7,034,928
7,729,743| |---|---|---|---| ||||7,727,221
323,522| ||**823,615**
**(499,074)**|1,078,609
(755,087)|| ||||| ||||8,050,743
(321,000)| ||||7,729,743| ||||402,052
292,763
7,034,928| ||||7,729,743| The financial statements were approved by the Trustees on 9 June 2022 and signed on their behalf by: Sue Head Chairman David H Adams (FCA) Honorary Treasurer The notes on pages 18 to 27 form part of these financial statements. 13 ## **The Liberal Jewish Synagogue STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021** |**Cash flows from operating activities**
Net income for the year
**Adjustment for:**
Depreciation charges
Interest and dividends (received)
Rent (received)
Net (gains) on investments
Decrease/ (increase) in stock
Decrease in debtors
(Decrease) in creditors
(Decrease)/ increase in pension costs provision
Net cash received from operating activities
**Cash flows from investing activities**
Purchase of property, plant and equipment
Purchase of investments
Proceeds from sale of investments
Dividend and interest receipts
Rent received
**Net cash (used in) investing activities**
**Total Cash Flows**
Cash and cash equivalents at 1 January 2021
**Cash and cash equivalents at 31 December 2021**
**Analysis of changes in net debt**
**Statement of changes in net debt**
**Cash and cash equivalents**
Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|2020
£
575,592
187,178
762,770|**2021**
**£**
**506,516**
**51,077**
**(63,061)**
**(26,400)**
**(251,846)**
**429**
**275,181**
**(256,013)**
**(19,000)**
**216,883**
**(238,229)**
**(2,269,372)**
**2,145,745**
**63,061**
**26,400**
**(272,395)**
**(55,512)**
**762,770**
**707,258**
Cash Flows
£
20,343
(75,855)
**(55,512)**|2020
£
121,716
49,387
(31,115)
(25,400)
(73,105)
(1)
271,987
(28,618)
4,000| |---|---|---|---| ||||288,851| ||||(324)
(1,968,713)
1,724,767
31,115
25,400| ||||(187,755)| ||||101,097
661,673| ||||762,770| ||||2021
£
**595,935**
**111,323**
**707,258**| 14 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES** ## _1.1 Statement of compliance_ The financial statements have been prepared in accordance with 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Liberal Jewish Synagogue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The accounts are presented in Sterling and are rounded to the nearest pound. _1.2 Company information_ The Liberal Jewish Synagogue is a private company limited by guarantee and incorporated in England. Its registered office and principal place of business is 28 St John's Wood Road, London, NW8 7HA. ## _1.3 Fund accounting_ General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. The general fixed asset fund represents the net book value of tangible fixed assets and heritage assets which are not readily realisable in pursuit of the charity’s day-to-day operation. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Transfers between funds occur for a number of reasons including when funds are closed on completion of a project, when fixed assets are purchased or when Trustees decide to release funds from a designated fund. ## _1.4 Income_ All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Income from charitable activities relates mainly to fees received in respect of the LJS Nursery School, cemetery fees, and payments for books and materials for Rimon Religion School students, venue hire and synagogue activities. Interest on funds held at the bank 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 the dividend has been declared. Interest and dividends from the investment portfolio are recognised on notification by our investment manager (Note 12). 15 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES (continued)** Investment income relates to rental income (which is recognised when it comes due), income from an associated company (when it is received), and dividends and interest received in relation to fixed asset investments held by the charity. ## _1.5 Expenditure_ Expenditure is accounted for on an accruals basis. Support costs, including governance costs, are allocated to charitable costs against two grouped strategic areas: Spirituality & Sustainability (90%) and Learning & Community (10%). Irrecoverable VAT is included with the expense item to which it relates. Governance costs are the costs of providing information to and attendance at trustees' meetings and public accountability. ## _1.6 Going concern_ The Trustees have reviewed the circumstances of the charity and consider that adequate resources continue to be available to fund the activities of the charity of the foreseeable future. The Trustees do not believe that the COVID19 pandemic will have any impact on the charity’s ability to continue as a going concern based on reserves and the value of investments held. The Trustees therefore consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## _1.7 Tangible fixed assets and depreciation_ The charity's freehold property comprises land and buildings including subsequent improvements to the property. Depreciation is not charged on the land element, which is instead subject to impairment review. No depreciation charge is made against the building and improvements as it is considered that the residual value of these is at least as great as the carrying value and not materially different to cost. The charity operates a rolling repairs and maintenance programme to prolong the useful life of the property and to ensure that the above policy continues to be appropriate. Other tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Fixtures and fittings: 4% to 20% Computer equipment: 25% to 33% Depreciation is not provided on assets under construction until they are brought into use. The asset under construction represents four flats which are being built by Newbourne Properties Ltd. These flats represent consideration for the sale of unused land to the developer. The cost to date represents the consideration towards the cost of construction. ## _1.8 Heritage Assets_ Heritage assets are assets of historical or religious importance that are held to further the preservation, conservation and education objectives of the synagogue and contribute to culture and activities. They are capitalised immediately on purchase or receipts of donation, and held at cost as depreciation is not considered to be material. The Trustees perform an annual impairment review and depreciation is charged only if significant impairment is found to have occurred. ## _1.9 Investments_ Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently measured at their fair value as at the reporting date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Investment property is initially recognised at cost. After recognition, it is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised through profit or loss. 16 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1 ACCOUNTING POLICIES (continued)** ## _1.10 Stocks_ Stocks are valued at the lower of cost and net realisable value on a first in first out basis. ## _1.11 Debtors_ Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due. _1.12 Cash at Bank and in hand_ Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. _1.13 Creditors_ Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. _1.14 Provisions for liabilities_ Provisions are made where an event has taken place that gives the charity a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to statement of financial activities in the year that the charity becomes aware of the obligation and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. Contingent liabilities are not recognised. They arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date, or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the charity's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow is remote. When payments are eventually made, they are charged to the provision carried in statement of financial position. _1.15 Judgements in applying accounting policies and key sources of estimation uncertainty_ The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. The Trustees do not believe that the current COVID-19 pandemic will have a material impact, however, the nature of estimation means that actual outcomes could differ from those estimates. ## _Accruals:_ The charity makes an estimate of accruals at the year-end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment. ## _Tangible fixed assets:_ Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are considered. ## _Provision for future pension costs:_ The charity has made an estimate of the future costs required to fund its pension liability. The original provision was based on an actuarial valuation and re-evaluated in 2021. The provision is stated at that amount less subsequent payments made to reduce the liability. In the interest of consistency, where we have made improvements to the layout or substance of the accounts we applied the same approach to the previous year (for comparative purposes). Presentational improvements do not affect the overall outcome. 17 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2 INCOME FROM DONATIONS AND LEGACIES** |Membership fees receivable
Donations
Restricted donations and
grants
Legacies
**FUNDRAISING EVENT INCOME**
Fundraising event income|**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£
**545,714 –**
**– 545,714**555,769 –
–
555,769
**463,294 – –**
**463,294**
392,851
–
–
392,851
**–**
**93,797**
**– 93,797**
–
319,493 – 319,493
**292,029**
**10,000**
**–**
**302,029**
70,503
– –
70,503| |---|---| ||**1,301,037**
**103,797 –**
**1,404,834**
1,019,123
319,493
–
1,338,616| ||**Unrestrict-**
**Restricted**
**Endow-**
**ment**
**Total**
Unrestrict-
Restricted
Endow-
ment
Total
**ed funds**
**funds**
**funds**
**funds**
ed funds
funds
funds
funds
**2021**
**2021**
**2021**
**2021**
2020
2020
2020
2020
**£**
**£**
**£**
**£**
£
£
£
£| ||**3,892 –**
**–**
**3,892**
2,660 –
–
2,660| ## **3 FUNDRAISING EVENT INCOME** ## **4 INVESTMENT INCOME** |**INVESTMENT INCOME**||||||||| |---|---|---|---|---|---|---|---|---| ||||**Endow-**||||Endow-|| ||**Unrestrict-**|**Restricted**|**ment**|**Total**|Unrestrict-|Restricted|ment|Total| ||**ed funds**|**funds**|**funds**|**funds**|ed funds|funds|funds|funds| ||**2021**|**2021**|**2021**|**2021**|2020|2020|2020|2020| ||**£**|**£**|**£**|**£**|£|£|£|£| |Investment property rental||||||||| |income|**26,400**|**–**|**–**|**26,400**|25,400|–|–|25,400| |Blazer Court income|**–**|**–**|**–**|**–**|16,073|–|–|16,073| |Interest and dividends||||||||| |receivable|**56,191**|**–**|**6,870**|**63,061**|31,115|–|–|31,115| ||**82,591**|**–**|**6,870**|**89,461**|72,588|–|–|72,588| |**INCOME FROM CHARITABLE**|**ACTIVITIES**|||||||| ||||**Endow-**||||Endow-|| ||**Unrestrict-**|**Restricted**|**ment**|**Total**|Unrestrict-|Restricted|ment|Total| ||**ed funds**|**funds**|**funds**|**funds**|ed funds|funds|funds|funds| ||**2021**|**2021**|**2021**|**2021**|2020|2020|2020|2020| ||**£**|**£**|**£**|**£**|£|£|£|£| |Nursery school|**314,730**|**–**|**–**|**314,730**|306,824|–|–|306,824| |Cemetery|**208,729**|**–**|**–**|**208,729**|209,917|–|–|209,917| |Religion school|**16,337**|**–**|**–**|**16,337**|17,230|–|–|17,230| |Venue hire|**21,914**|**–**|**–**|**21,914**|27,822|–|–|27,822| |High Holy Day tickets|**2,150**|**–**|**–**|**2,150**|520|–|–|520| |Other synagogue activities|**4,234**|**–**|**–**|**4,234**|4,215|–|–|4,215| ||**568,094**|**–**|**–**|**568,094**|566,528|–|–|566,528| ## **5 INCOME FROM CHARITABLE ACTIVITIES** Other synagogue activities include book sales and wedding fees. 18 **6 CHARITABLE EXPENDITURE (Including Allocation of Support Costs)** ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** |**CHARITABLE EXPENDITURE**
Staff costs
Direct costs
Pension adjustment
Allocation of total support costs
Staff costs
Direct costs
Pension adjustment
Allocation of total support costs|**Spirituality &**
**Sustainability**
**Learning & Community**
**Unrestricted**
**Restricted**
**Total**
**2021**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
**272,544**
**365,873**
**2,737**
**641,154**
**376,963**
**54,738**
**67,771**
**499,472**
**(19,000)**
**–**
**–**
**(19,000)**
**648,957**
**72,106**
**–**
**721,063**| |---|---| ||**1,279,464**
**492,717**
**70,508**
**1,842,689**| ||Spirituality &
Sustainability
Learning & Community
Unrestricted
Restricted
Total
2020
2020
2020
2020
£
£
£
£
309,158
380,767
3,429
693,354
444,397
50,491
52,957
547,845
4,000
–
–
4,000
617,924
68,658
–
686,582| ||1,375,479
499,916
56,386
1,931,781| The pension adjustment in 2021 is due to an annual actuarial re-evaluation of the sole pension liability. Included in Spirituality & Sustainability is £2,998 relating to expenditure on investment manager fees and cemetery maintenance, funded from the Angela Furst Endowment Fund. |**SUPPORT COSTS**
Staff costs
Administration
Building and facilities
Legal and professional
Governance
Depreciation
Staff costs
Administration
Building and facilities
Legal and professional
Governance
Depreciation|**Administration,**
**building & facilities**
**Governance costs**
**Total Support**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**309,313**
**–**
**309,313**
**197,616**
**–**
**197,616**
**108,065**
**–**
**108,065**
**–**
**30,007**
**30,007**
**–**
**24,985**
**24,985**
**51,077**
**–**
**51,077**| |---|---| ||**666,071**
**54,992**
**721,063**| ||Administration,
building & facilities
Governance costs
Total Support
2020
2020
2020
£
£
£
339,386
–
339,386
152,182
–
152,182
96,920
–
96,920
–
37,997
37,997
–
10,710
10,710
49,387
–
49,387| ||637,875
48,707
686,582| Support costs are allocated 90% to Spirituality & Sustainability and 10% to Learning & Community. 19 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **7 AUDITOR'S REMUNERATION** The auditor's remuneration amounted to £8,000 (2020: £7,700). ## **8 ALLOCATION OF STAFF** The average monthly number of employees was 46 (2020: 49), 12 were full time (2020: 13), 34 were part time (2020: 35). Of these, 29 are staff who work during term times as teachers in the LJS Nursery or the _Rimon_ religion school. The LJS also offers young people the opportunity to work as teaching assistants in Rimon. They receive a stipend for each session they work. |The number of full-time equivalents was:
Spirituality and Sustainability
Learning & Community
Support
**9**
**STAFF COSTS**
Staff costs were as follows:
Wages and salaries
Employers' NIC
Other pension costs
The number of higher paid employees was:
In the band £60,001 - £70,000
In the band £70,001 - £80,000|**2021**
2020
**FTE**
FTE
**9.0**
8.8
**12.0**
14.0
**3.6**
4.0| |---|---| ||**24.6**
26.8| ||**2021**
2020
**£**
£
**831,656**
910,677
**72,971**
76,284
**45,840**
45,779| ||**950,467**
1,032,740| ||**2021**
2020
**No.**
No.
**1**
1
**1**
1| There are three key management personnel within the charity. During the year, they received remuneration of £260,692 (2020: £238,772) including salary, employers' NIC and employer's contribution to pension. ## **10 TANGIBLE FIXED ASSETS** |**TANGIBLE FIXED ASSETS**|| |---|---| |**Cost**
At 1 January 2021
Additions
**At 31 December 2021**
**Depreciation**
At 1 January 2021
Charge for the year
**At 31 December 2021**
**At 31 December 2021**
At 31 December 2020|**Freehold**
**Fixtures**
**Computer**
**Asset under**
**property**
**and fittings**
**equipment**
**Construction**
**Total**
**£**
**£**
**£**
**£**
**£**
**4,477,426 453,661**
**18,484**
**–**
**4,949,571**
**–**
**1,220**
**5,787**
**231,222**
**238,229**| ||**4,477,426 454,881**
**24,271**
**231,222**
**5,187,800**| ||**–**
**154,864**
**14,794 –**
**169,658**
**–**
**45,610**
**5,467 –**
**51,077**| ||**– 200,474**
**20,261 –**
**220,735**| ||**4,477,426**
**254,407**
**4,010**
**231,222**
**4,967,065**| ||4,477,426 298,797
3,690 –
4,779,913| 20 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** The asset under construction represents four flats which are being built by Newbourne Properties Ltd. These flats represent consideration for the sale of unused land to the developer. The cost to date represents the consideration towards the cost of construction. ## **11 HERITAGE ASSETS** |**HERITAGE ASSETS**
**Cost**
At 1 January 2021 and 31 December 2021|**2021**
2020
**£**
£| |---|---| ||**54,450**
54,450| The figure represents the cost of the Shoah Memorial which was designed by Anish Kappor and dedicated on 10 November 1996. The memorial is very important to the LJS and its members given the significance of the Holocaust to the Jewish experience of the 20th Century. In addition, the LJS holds a collection of paintings and other artefacts. These are not included in the balance sheet as historic cost information is not available and they are not considered to be of significant value to the open market, being of particular relevance to the LJS. |**12**
**INVESTMENTS**
**Market Value**
**At 1 January 2021**
**Additions**
**Disposals**(proceeds: £2,145,745 realised
gains: £39,770)
**Unrealised gains on investments**
**At 31 December 2021**
**Cash held by investment manager**
**At 31 December 2021**
**INVESTMENTS**
Market Value
At 1 January 2020
Additions
Disposals (proceeds: £1,724,767 realised
losses: £27,115)
Unrealised gains on investments
At 31 December 2020
Cash held by investment manager
At 31 December 2020
**Investments at fair value comprise:**
Investment property
Listed investments
Surplus cash
Unquoted investments
**Total investments**|**Investment**
**Listed**
**Property**
**Securities**
**£**
**£**
**538,655**
**2,167,023**
**–**
**2,269,372**
**–**
**(2,105,975)**
**141,345**
**211,804**|**Unlisted**
**Securities**
**Total**
**£**
**£**
**2**
**2,705,680**
**–**
**2,269,372**
**–**
**(2,105,975)**
**–**
**353,149**| |---|---|---| ||**680,000**
**2,542,224**
**–**
**111,323**|**2**
**3,222,226**
**–**
**111,323**| ||**680,000**
**2,653,547**|**2**
**3,333,549**| ||Investment
Listed
Property
Securities
**£**
**£**
538,655
1,872,976
–
1,968,713
–
(1,697,651)
–
22,985|Unlisted
Securities
Total
**£**
£

2
2,411,633
–
1,968,713

–
(1,697,651)
–
22,985| ||538,655
2,167,023
–
187,178|2
2,705,680

–
187,178| ||538,655 2,354,201|2
2,892,858| |||**2021**
2020
**£**
£
**680,000**
538,655
**2,542,224**
2,167,023
**111,323**187,178
**2**2| |||**3,333,549**2,892,858| 21 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** The unlisted investment is in Eljayess Enterprises Limited, a wholly owned subsidiary of the LJS, which did not trade during the year. Given that this company’s results are not material to the charity’s financial statements, group accounts are not required to be prepared under either the Companies Act or the Charities Act. Blazer Court Limited is an associated company created to service the residential property above the synagogue through resident management charges. This has not been consolidated as it is not a beneficially owned company. In accordance with the accounting policy for investment properties, a valuation has been obtained this year from an external Chartered Surveyor, in which the fair value of the property has increased by £141,345 on an open market value basis. |**13**|**STOCKS**|**2021**|2020| |---|---|---|---| |||**£**|£| ||Books for resale|**–**|429| ||The stock of books held at 31 December 2020 are limited|to prayer books for sale at cost.|| |**14**|**DEBTORS**|**2021**|2020| |||**£**|£| ||Trade debtors|**47,137**|40,927| ||Other debtors|**39,322**|42,266| ||Prepayments and accrued income|**141,221**
|419,395| |||**227,680**
|502,588| |**15**|**CREDITORS**|**2021**|2020| ||**Amounts falling within one year**|**£**|£| ||Trade creditors|**147,199**|30,960| ||Other taxation and social||| ||security|**20,518**|16,726| ||Other creditors|**110,030**|73,502| ||Accruals and deferred income|**221,327**
|633,899| |||**499,074**
|755,087| |**16**|**PROVISION FOR LIABILITIES**|**2021**|2020| |||**£**|£| ||At 1 January 2021|**321,000**
|317,000| ||(Decrease)/ increase in pension provision|**(19,000)**|4,000| ||At 31 December 2021|**302,000**
|321,000| The pension provision shown above was adjusted in 2021 due to an actuarial re-evaluation of the liability for one of these pensions. The provision was calculated in accordance with the provisions under FRS 102 and represents unfunded pension liabilities outside of a pension scheme. 22 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** |**17**
**STATEMENT OF FUNDS**
**Unrestricted Funds 2021**
_Designated Funds:_
Cemetery Improvement Fund
Dr Max Hulbert Legacy Fund
Olga Field Fund
Rosa Mintz Legacy Fund
LJS Building Renewal Fund
General Legacy Fund
General Funds
General Fixed Asset Fund
**Total Unrestricted Funds**
STATEMENT OF FUNDS
Unrestricted Funds 2020
_Designated Funds:_
Cemetery Improvement Fund
Dr Max Hulbert Legacy Fund
Olga Field Fund
Rosa Mintz Legacy Fund
LJS Building Renewal Fund
General Legacy Fund
General Funds
General Fixed Asset Fund
**Total Unrestricted Funds**|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**7,007**
**42,300**
**(14,586)**
**(34,721) –**
**–**
**128,016 –**
**–**
**–**
**–**
**128,016**
**162,123**
**–**
**–**
**–**
**–**
**162,123**
**32,478**
**–**
**– –**
**–**
**32,478**
**44,730**
**–**
**–**
**255,000**
**–**
**299,730**
**381,858**
**292,029**
**–**
**(255,000) –**
**418,887**| |---|---| ||**756,212**
**334,329**
**(14,586)**
**(34,721)**
**–**
**1,041,234**
**1,444,353**
**1,652,364**
**(1,703,520)**
**51,321**
**344,143**
**1,788,661**
**4,834,363**
**–**
**(51,077) –**
**–**
**4,783,286**| ||**7,034,928**
**1,986,693**
**(1,769,183)**
**16,600**
**344,143**
**7,613,181**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
–
(240) –
7,247
–
7,007
128,016 – – – –
128,016
162,123 – – –
–
162,123
32,478
– –
– –
32,478
44,730
–
– –
–
44,730
381,858 –
– –
–
381,858| ||749,205
(240) –
7,247
–
756,212
1,543,688
1,660,815
(1,826,008)
(7,247)
73,105
1,444,353
4,883,426
324
(49,387) –
–
4,834,363| ||7,176,319
1,660,899
(1,875,395)
–
73,105
7,034,928| ## **Unrestricted Funds 2021** ## _**Designated Funds:**_ **Dr Max Hulbert Legacy Fund:** the income arising from this unrestricted fund is used for publications and the intellectual promotion of Liberal Judaism. **Olga Field Fund:** is currently used to further the religious and charitable work of the LJS in relation to the elderly Members of the community but is not restricted to this purpose. **The LJS Centenary and Rabbi John Rayner Memorial Fund:** this unrestricted fund was established in memory of Rabbi John Rayner and to mark the Centenary of the LJS. The remaining funds were used in 2019 for the installation of a stained-glass window to mark the completion of the small sanctuary named in memory of Rabbi John Rayner. **Rosa Mintz Legacy Fund:** the income arising from this unrestricted fund is utilised as agreed to support Nursery, Youth and Education activities. **LJS Building Renewal Fund:** the synagogue building is now 29 years old. This unrestricted fund, established in 2017, will be used to fund building refurbishment projects to maintain the fabric and functionality of the synagogue. **General Legacy Fund:** Chosen legacies (depending on the ongoing Synagogue finances or unless they are restricted ) are allocated to this unrestricted fund and used to support the religious and charitable work of the synagogue. The transfer of £255,000 to the Building Renewal Fund this year represents an unrestricted legacy received for that amount, which has been designated towards the maintenance of the Synagogue. 23 **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** |**Restricted Funds 2021**
Care for the Community Fund
David Goldstein Library Fund
Drop in for Asylum Families
Education Fund
Ministers' Discretionary Fund
Peggy Lang Publications Fund
Out and About Club
President’s Cup Fund
Rabbi J Rayner Bibliography Fund
Restaurant Tuesday
Singing for the Mind
Taxi Fund
EHCF Fund
Angela Ferst Fund
**Total Restricted Funds**
Restricted Funds 2020
Care for the Community Fund
David Goldstein Library Fund
Drop in for Asylum Families
Education Fund
Ministers' Discretionary Fund
Peggy Lang Publications Fund
Out and About Club
President’s Cup Fund
Rabbi J Rayner Bibliography Fund
Restaurant Tuesday
Singing for the Mind
Taxi Fund
EHCF Fund
Angela Ferst Fund
**Total Restricted Funds**|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**16,375**
**10,000**
**(819)**
**–**
**–**
**25,556**
**5,014 550 –**
**–**
**– 5,564**
**64,817**
**84,285**
**(53,118) –**
**–**
**95,984**
**2,591 – – –**
**– 2,591**
**7,956 1,842**
**(1,144) –**
**–**
**8,654**
**5,503 – –**
**–**
**–**
**5,503**
**23,386**
**3,395**
**(4,396) –**
**–**
**22,385**
**4,069 – – –**
**–**
**4,069**
**2,552**
**2,118 – –**
**– 4,670**
**8,909**
**300**
**(321)**
**–**
**–**
**8,888**
**1,800**
**1,307**
**(10,710)**
**8,400**
**–**
**797**
**3,170**
**– –**
**–**
**3,170**
**254,000**
**–**
**(25,000)**
**–**
**229,000**
**1,910 –**
**–**
**–**
**1,910**| |---|---| ||**402,052**
**103,797**
**(70,508)**
**(16,600)**
**–**
**418,741**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
10,375
7,000
(1,000) –
–
16,375
4,214 800 – –
– 5,014
63,578
45,788
(44,549) –
–
64,817
2,591
–
–
2,591
7,621
500
(165)
–
–
7,956
5,503 – –
–
–
5,503
18,149
6,015
(778)
–
–
23,386
4,069
–
–
–
–
4,069
2,552
–
– –
–
2,552
8,789 300
(180) –
–
8,909
8,126
3,090
(9,416) –
–
1,800
1,170
2,000
–
–
–
3,170
–
254,000 –
–
–
254,000
2,208 –
(298) –
–
1,910| ||138,945
319,493
(56,386)
–
–
402,052| ## **Restricted Funds 2021** **Care for the Community Fund:** the fund is used for Members most in need. **David Goldstein Library Fund:** this fund is to be used for books and equipment for the LJS Library. **LJS Drop-in for Asylum Families:** this fund was created for donations received to support the LJS Drop-in for Asylum Families. Funded entirely by donations, the monies raised support this project on an ongoing basis. 24 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** **Education Fund:** this fund supports youth and educational activities and was formed by the amalgamation of the Celia Rapp Fund, Theodore Goodman Fund, John Haggard Memorial Fund, Louis P Jacobs Prize Fund, Marsden Family Fund. **Ministers' Discretionary Fund:** this fund is for donations given for our Rabbis to use at their discretion to support the charitable objects of the synagogue. **Out & About Club:** is a community initiative which provides food and entertainment fortnightly for local elderly and disabled people. Funded entirely by donations, the monies are used to support the club on an ongoing basis. **Peggy Lang Publications Fund:** the fund was created to support publications in furtherance of Liberal Judaism. **President's Cup Fund:** this fund provides for an annual prize to the young person showing the greatest commitment to the community. **Rabbi J Rayner Bibliography:** this fund is to finance an LJS Research Fellow to undertake scholarly research into the sermons and lectures of Rabbi John Rayner and to facilitate the dissemination of his thoughts and writing. **Restaurant Tuesday:** this fund is used to provide a monthly meal for elderly Members and visitors. **Singing for the Mind:** this fund is used to enable people with memory problems or dementia to come together to sing. This includes Members and Non-members, local and London-wide. Funded entirely by donations, the group meets weekly, using the monies raised for its ongoing professional support costs. **Taxi Fund:** this fund finances the cost of taxis to and from the synagogue for the elderly or infirm who are unable to afford private transport but depend on it to get to the synagogue for religious services and other activities. **EHCF Fund:** this designated fund has been established from a gift given by the Ernest Hecht Charitable Foundation to be used over the next ten years to fund the Singing for the Mind programme and to fund activities and projects that promote online learning, religious observance and community events for children and elderly, isolated or disabled adults. Monies will be allocated annually to the specified projects and programmes. **Angela Ferst Fund:** this fund was set up in 2016 following a specified legacy to buy prayer books for the community. |**Endowment Funds 2021**
Angela Ferst Cemetery Fund
**Total Endowment Funds**
Endowment Funds 2020
Angela Ferst Cemetery Fund
Total Endowment Funds|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**292,763**
**6,870**
**(2,998)**
**–**
**49,048**
**345,683**| |---|---| ||**292,763**
**6,870**
**(2,998) –**
**49,048 345,683**| ||At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
292,763 –
– –
–
292,763| ||292,763
– – –
–
292,763| **Angela Ferst Cemetery Endowment Fund:** the estate of Angela Ferst has bequeathed a fund of £292,763 in 2019 for the maintenance of the Ferst family graves at the LJS Cemetery. Established in 2019, income generated from the investment of this fund may be used for the maintenance of the cemetery only. 25 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17 STATEMENT OF FUNDS (continued)** ## **SUMMARY OF FUNDS 2021** |**SUMMARY OF FUNDS 2021**|| |---|---| |**Unrestricted Funds**
**General Funds**
**General Fixed Asset Fund**
**Restricted Funds**
**Endowment Funds**
SUMMARY OF FUNDS 2020
Unrestricted Funds
General Funds
General Fixed Asset Fund
Restricted Funds
Endowment Funds|**At 1**
**At 31**
**January**
**Income**
**Expenditure**
**Transfers**
**Gains /**
**December**
**2021**
**in/ out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**756,212**
**334,329**
**(14,586)**
**(34,721)**
**–**
**1,041,234**
**1,444,353**
**1,652,364**
**(1,703,520)**
**51,321 344,143 1,788,661**
**4,834,363**
**–**
**(51,077)**
**–**
**–**
**4,783,286**| ||**7,034,928 1,986,693**
**(1,769,183)**
**16,600 344,143 7,613,181**
**402,052**
**103,797**
**(70,508)**
**(16,600)**
**–**
**418,741**
**292,763**
**6,870**
**(2,998)**
**–**
**49,048**
**345,683**| ||**7,729,743**
**2,097,360**
**(1,842,689)**
**– 393,191**
**8,377,605**
At 1
At 31
January
Income
Expenditure
Transfers
Gains /
December
2020
in/ out
(Losses)
2020
£
£
£
£
£
£
749,205
(240) –
7,247
–
756,212
1,543,688
1,660,815
(1,826,008)
(7,247)
73,105
1,444,353
4,883,426 324
(49,387)
–
–
4,834,363| ||7,176,3191,660,899
(1,875,395) –
73,105 7,034,928
138,945
319,493
(56,386)
–
–
402,052
292,763
–
–
–
–
292,763| ||7,608,027
1,980,392
(1,931,781)
–
73,105
7,729,743| ## **18 ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Tangible fixed assets
Heritage assets
Investments
Current assets
Creditors due within one year
Provisions for liabilities|**Unrestricted**
**Restricted**
**Endowment**
**Total**
Total
**Funds**
**Funds**
**Funds**
**Funds**
Funds
**2021**
**2021**
**2021**
**2021**
2020
**£**
**£**
**£**
£
**4,967,065**
**– –**
**4,967,065**
4,779,913
**54,450**
**–**
**– 54,450**
54,450
**2,569,125**
**418,741**
**345,683**
**3,333,549**
2,892,858
**823,615**
**– – 823,615**1,078,609
**(499,074)**
**–**
**–**
**(499,074)**
(755,087)
**(302,000)**
**–**
**–**
**(302,000)**
(321,000)| |---|---| ||**7,613,181 418,741**
**345,683**
**8,377,605**
7,729,743| 26 ## **The Liberal Jewish Synagogue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **19 COMMITMENTS UNDER OPERATING LEASES** As at 31 December 2021, the charity had future minimum lease payments under non-cancellable operating leases for office equipment as follows: |leases for office equipment as follows:|| |---|---| |Not later than 1 year
Later than one year but less than five years|**2021**
2020
**£**
£
**15,382**
17,500
**46,802**
35,000| ||**62,184**
52,500| ## **20 TRUSTEES REMUNERATION AND RELATED PARTIES** None of the Trustees received remuneration during 2021. One trustee was reimbursed £215.60 for expenses incurred. During the year, a number of trustees made donations to LJS. The aggregate value of these donations was £10,395. One of the Trustees is the Vice Chair of Liberal Judaism, the umbrella organisation for all Liberal Jewish synagogues. The LJS makes an annual congregational subscription on behalf of members to Liberal Judaism: £94,000 in 2021 (2020: £87,086). The LJS also received rental income of £6,250 from Liberal Judaism, which was offset against the contribution made. ## **21 CORPORATION TAX** As a charity, the LJS is exempt from UK tax on income and gains to the extent that these are applied to its charitable objects. No UK tax charges have arisen in the charity, during 2021 or in the previous year. 27 ## **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Opinion** We have audited the financial statements of the Liberal Jewish Synagogue (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** 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 charitable company’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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 28 **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **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: 29 ## **The Liberal Jewish Synagogue** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice Accounting and Reporting by Charities preparing this accounts in accordance with the Financial reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and the Companies Act 2006), those that relate to data protection (General Data Protection Regulation) and those in relation to safeguarding, specifically the requirements of the Health and Social Care (Safety and Quality) Act 2015. We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls we: - performed analytical procedures to identify any unusual or unexpected relationships; and - performed substantive testing of expenditure including the authorisation thereof; - tested journal entries to identify unusual transactions; and - assessed whether the judgements and the assumptions made in determining accounting estimates for the valuation of the pension liability, the useful economic lives of tangible fixed assets and the estimations of future income and expenditure flows were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - reading the minutes of meetings of those charged with governance; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 30 ## **The Liberal Jewish Synagogue INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBERAL JEWISH SYNAGOGUE FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 auditor's 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. Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 31