## **SHOFAR DAY CARE CENTRE**
**(A Company Limited by Guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**SHOFAR DAY CARE CENTRE**||
|---|---|
|**(A Company Limited by Guarantee)**||
|**Company registered number: 09395603**||
|**Charity registered number: 1160802**||
|||
||Page|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**
2||
|**Trustees' Report**|3-6|
|**Independent Auditors' Report**|7-9|
|**Statement of Financial Activities**|10|
|**Statement of Financial Position**|11|
|**Statement of Cash Flows**|12|
|**Notes to the Financial Statements**|13-19|
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
Rabbi M Berger A Brownlie (appointed 7 July 2021) M Harris P Israel Rabbi J Levy M Saffer (appointed 7 January 2021)
## **Company registered number**
09395603
## **Charity registered number**
1160802
## **Registered office**
The Sternberg Centre for Judaism 80 East End Road London N3 2SY
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The Trustees present their annual report together with the financial statements of Shofar Day Care Centre for the year ended 31 December 2021.
The Financial Statements comply with the, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) (effective 1 January 2015), as amended by Update Bulletin 2 (effective 1 January 2019).
## **Objectives and Activities**
## **a. Policies and objectives**
The objectives of the charity are to:-
A) Advance the development and education of children primarily under the age of five, in particular by establishing and running a childcare nursery which promotes the ethos and values of Reform Judaism. B) Advance religion by teaching, practising and promoting the beliefs and practices of Reform Judaism C) Provide charitable support and assistance to The Movement for Reform Judaism, Finchley Reform Synagogue, North Western Reform Synagogue and to Leo Baeck College (or any successor bodies) for so long as such organisations are charitable in accordance with English Law, and D) Undertake or support such other ancillary and incidental exclusively charitable purposes as the trustees in their absolute discretion think fit.
In shaping the objectives of the charity, the trustees have considered the Charity Commission's guidance on public benefit.
## **Achievements and performance**
## **a. Review of activities**
The nursery offers a range of activities including those that embrace Jewish learning and festivals. Operations were again affected by the Covid-19 pandemic. Despite the challenging conditions it was another successful year, through excellent management of children numbers and classes. Costs were carefully controlled and savings made where possible to mitigate the reduced income as a result of a period of closure in February 2021. The nursery continues to prioritise the retention of quality permanent staff to support its children and continues to pay the London Living Wage to those who engage in appropriate training, in order to encourage continued professional development of staff.
The future plans and development of the nursery remain consistent with the previous years and are to continue to maintain a full complement of children across all age groups. Offering excellent care, education and community through well-qualified staff, with core Jewish values. To offer values-based rather than rules based introduction to Judaism, through the 3 prisms – Community, Ritual and Practice and Jewish Values and to be as inclusive as possible.
.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **FINANCIAL REVIEW**
## **a. Going concern**
At the reporting date the charity held £679,385 in cash, and had net current assets of £509,624, all of which was unrestricted. The projected net surplus for the next 12 months is around £95k. The projected normal expenditure for the next 12 months is £1,170k, which means current reserves would cover five months if no income was available. This is in line with the charity’s current reserve policy of 4 months expenditure being held in reserves together with appropriate development and fixed asset reserves.
The Trustees have reviewed the circumstances of the charity and consider that resources continue to be available to fund the activities of the charity for the foreseeable future. Following the lockdown of the United Kingdom, imposed by the government in response to the Covid-19 virus Shofar had to close for a period from March 2020 and again for a short period in February 2021.there have been no enforced closures in 2022 to date.
Accordingly, the trustees consider it appropriate to continue to adopt the going concern basis in preparing its financial statements.
## **b. Reserves policy**
Since inception the charity focused on raising funds to finance the opening and improvement of the Centre but is now in a position to set aside funds to build a reserve. The trustees are now looking forward and have built up unrestricted reserves to protect the charity’s activities in an uncertain economic environment.
The Trustees have considered the risks faced by the charity and have taken appropriate steps to address the related issues.
The current reserves policy of the trustees is to have enough reserves to cover at least four months expenditure, projected specific repairs and maintenance costs and repairs driven by lease obligations..
Attention has also been focused on non-financial risks arising from fire, health and disaster recovery. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.
The shutdown period enforced as a result of Covid-19 has reinforced the need to have the buffer of reserves in order to mitigate further outbreaks or future events.
## **c. Financial performance**
During the year the charity received £1,329,640 of income. Expenditure on charitable activities amounted to £1,273,324. This resulted in net incoming resources of £56,316.
## **d. Risk assessment**
The trustees have identified the major risks of the charity and are satisfied that systems and procedures are in place to mitigate exposure to the risks where possible. As part of the charity's risk management strategy the trustees will review the principal risks annually.
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, was followed by initiation of lockdown in the UK. In response to these changes and following direct experience of the virus, Shofar managed a smooth transition to staggered attendance in response to the social distancing restrictions imposed at the end of March 2020 and a subsequent return to full attendance. However, we acknowledge that risks remain
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
and we will need to adjust our future planning as the impact of the global pandemic unfolds.
## **Fundraising**
The charity is committed to best practice, as outlined by the Fundraising Regulator, in its approach to fundraising and closely monitors its activities in this area, ensuring that vulnerable members are protected. No professional fundraisers are used by the charity.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **a. Constitution**
The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 19 January 2015.
The company is constituted under a Memorandum of Association and is a registered charity number 1160802.
## **b. Method of appointment or election of Trustees**
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
## **Trustees' responsibilities statement**
The Trustees (who are also directors of Shofar Day Care Centre for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including 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 the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- 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 adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **Disclosure of Information to Auditors**
In accordance with company law, as the company's directors, we certify that:
- a) so far as we are aware, there is no relevant audit information of which the company's auditors are unaware; and
- b) we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
This report was approved by the Trustees on 28 September 2022 and signed on their behalf by:
**P Israel** Trustee
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHOFAR DAY CARE CENTRE**
## **Opinion**
We have audited the financial statements of Shofar Day Care Centre (the 'charitable company') for the year ended 31 December 2021 set out on pages 10 to 19. 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).
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
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 2020 and of its incoming resources and application of resources, including 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 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.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **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 Auditors' 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.
## **Opinion 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 for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our 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 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' remunerations specified by law not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small
- companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
## **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.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
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.
## **Auditors' 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 Auditors' 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:
We gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and the Charities Act 2011. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reading minutes of meetings of those charged with governance, enquiries with management and review of accounting estimates. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.
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 Auditors' Report.
## **Jennifer Pope (Senior Statutory Auditor) for and on behalf of Nyman Libson Paul LLP**
Chartered Accountants Registered Auditors 124 Finchley Road London NW3 5JS Date: 28 September 2022
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
|**Statement of Financial Activities**
**Incorporating Income and Expenditure Account**
**for the Year ended 31st December 2021**
**Company Number 09395603**
**Charity Number 1160802**
**Unrestricted**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
**Note**
**INCOMING RESOURCES**
**Income from:**
Donations and legacies
**2**
-
6,610
6,610
60,761
Income from investments
386
-
386
1,331
Charitable activities
**3**
1,322,644
-
1,322,644
1,096,340
**Total Incoming Resources**
**1,323,030**
**6,610**
**1,329,640**
**1,158,432**
**Expenditure on:**|**Statement of Financial Activities**
**Incorporating Income and Expenditure Account**
**for the Year ended 31st December 2021**
**Company Number 09395603**
**Charity Number 1160802**
**Unrestricted**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
**Note**
**INCOMING RESOURCES**
**Income from:**
Donations and legacies
**2**
-
6,610
6,610
60,761
Income from investments
386
-
386
1,331
Charitable activities
**3**
1,322,644
-
1,322,644
1,096,340
**Total Incoming Resources**
**1,323,030**
**6,610**
**1,329,640**
**1,158,432**
**Expenditure on:**|
|---|---|
||**1,323,030**
**6,610**
**1,329,640**
**1,158,432**|
|||
|Charitable Activities
**4**|1,273,324
-
1,273,324
1,088,770|
|**Total Resources Expended**
**Net Income**
Transfers between Funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**||
||**1,273,324**
**-**
**1,273,324**
**1,088,770**|
||**49,706**
**6,610**
**56,316**
**69,662**
86,882
(86,882)
-
-|
||**136,588**
**(80,272)**
**56,316**
**69,662**
**601,320**
**211,697**
**813,017**
**743,355**|
||**737,908**
**131,425**
**869,333**
**813,017**|
|||
|The notes on pages 13 to 19 form part of these Financial Statements||
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
|**Statement of Financial Position**
**As at 31 December 2021**
**Company Number 09395603**
**Charity Number 1160802**
**Note**
**Fixed Assets**
Tangible Assets
**9**
**Current Assets**
Debtors
**10**
Cash at Bank and in Hand
Short Term Investments|**2021**
**2021**
**2020**
**2020**
**£**
**£**
**£**
**£**
359,709
361,575
25,811
44,774
679,385
550,541
104,124
103,739
809,320
699,054|**2021**
**2021**
**2020**
**2020**
**£**
**£**
**£**
**£**
359,709
361,575
25,811
44,774
679,385
550,541
104,124
103,739
809,320
699,054|**2021**
**2021**
**2020**
**2020**
**£**
**£**
**£**
**£**
359,709
361,575
25,811
44,774
679,385
550,541
104,124
103,739
809,320
699,054|
|---|---|---|---|
|Creditors Amounts falling due within one year
**11**|(299,696)||(247,612)|
|**Net Current Assets**
**Total assets less current liabilities**||509,624
451,442
869,333
813,017||
|Creditors Amounts falling after more than one
year
**12**||-
-||
|**Net Assets**
**Charity Funds**
Unrestricted funds
**13**||**869,333**
**813,017**
737,908
601,320||
|General - Designated Funds
**13**||131,425
211,697||
|**Total Funds**||**869,333**
**813,017**||
The notes on pages 13 to 19 form part of these Financial Statements
Approved by the Board of Trustees on 28 September 2022 and signed on its behalf by:
P Israel Trustee
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **Cash Flow Statement for the Year Ended 31 December 2021**
|**Cashflow from operating activities**|**2021**
**2020**
**£**
**£**|**2021**
**2020**
**£**
**£**|
|---|---|---|
||||
|Net Movement in Funds
**Adjustments for:**
Depreciation of tangible assets|**56,316**
**69,662**
32,286
28,250||
|Dividends, interest and rents from investments|-
-||
|(Increase)/Decrease in Debtors
(Decrease)/Increase in Creditors|18,963
(20,196)
52,084
(18,837)||
|**Net cash generated from operating activities**
**Cash flows from investing activities**|||
||**£ 159,649**
**58,879**||
||||
|Purchase of tangible assets|(30,420)
-||
||||
|**Net Cash used in investing activities**|(30,420)
-||
|**Net increase in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**129,229**
**58,879**
654,280
595,401||
||||
||**783,509**
**£**
**£ 654,280**||
||||
|The notes on pages 13 to 19 form part of these Financial Statements|||
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **Notes to the Financial Statements**
## **1. Accounting Policies**
## **1.1 Basis of preparation of financial statements**
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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Charity has applied all amendments to FRS 102, as set out in the Financial Reporting Council's triennial review published in December 2017, and included in Update Bulletin 2 to the Charities SORP (FRS 102), as required for mandatory adoption for accounting periods beginning on or after 1 January 2019.
Shofar Day Care Centre 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.
## **1.2 Company status**
The company is a company limited by guarantee and incorporated in England. The address of its registered office and principal place of business is The Sternberg Centre for Judaism, 80 East End Road, London, N3 2SY. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **1.3 Going concern**
The Trustees have reviewed the circumstances of the charity in the light of the Covid-19 pandemic, as noted on page 4 of the trustees’ report. The most recent management information, as at 31 May 2022 indicates the charity hold cash reserves of £845k and has net current assets of £606k.
The Trustees have prepared budgets and forecasts taking account of various potential scenarios and are anticipating a surplus for the year ending 31 December 2022 of approximately £95k.
The Trustees are cautiously optimistic about the future due to the importance of the education and childcare sector to the country’s economic recovery.
Accordingly, the trustees consider it appropriate to continue to adopt the going concern basis in preparing the charity’s financial statements.
## **1.4 Income**
Income is recognised once the company has entitlement to the funds, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Nursery fees are recognised in the month to which they relate.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
Registration fees in relation to the nursery are recognised immediately upon written confirmation of a child joining Shofar Day Care.
Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
Government grants received are from the Coronavirus Job Retention Scheme and are credited to the statement of financial activities as the related expenditure is incurred.
Other income, including merchandise sales is accounted for on an accruals basis.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company.
## **1.6 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 company and which have not been designated for other purposes.
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.
## **1.7 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
## **1.8 Tangible fixed assets and depreciation**
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities Incorporating Income and Expenditure Account.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. 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:
|Building costs|-|5% on cost|
|---|---|---|
|Leasehold Improvements|-|20% on cost|
|Fixtures and fittings|-|25% on cost|
|Computer equipment|-|25% on cost|
## **1.9 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **1.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.11 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.
## **1.12 Creditors**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **1.13 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **1.14 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. However, the nature of estimation means that actual outcomes could differ from those estimates.
## **1.15 Accruals**
The company 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.
## **1.16 Tangible fixed assets**
All 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.
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**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
|**2. Income from donations and legacies**
Donations
**3. Income from Charitable Activities**
Nursery & Registration Fees
Merchandise Sales
Government Grants
**4. Charitable Activities**
Support Expenditure
Wages & Salaries
National Insurance
Pension costs
Grants to Partner Charities
**Support Expenditure**
Recruitment & staff costs
Registration fees
Food, milk & related expenditure
Other consumables
Books, sundry & office expenses
Rent|**Unrestricted**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**-**
**6,610**
**6,610**
**60,761**|**Unrestricted**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**-**
**6,610**
**6,610**
**60,761**|**Unrestricted**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**-**
**6,610**
**6,610**
**60,761**|
|---|---|---|---|
|||**2021**
**2020**
**£**
**£**
1,285,878
996,741
8,463
1,028
28,303
98,571
**1,322,644**
**1,096,340**
**Activities**
**Total**
**Total**
**2021**
**2021**
**2020**
**£**
**£**
**£**
292,663
292,663
271,002
782,690
782,690
716,001
62,429
62,429
50,937
61,761
61,761
50,830
73,781
73,781
-|**2021**
**2020**
**£**
**£**
1,285,878
996,741
8,463
1,028
28,303
98,571|
||||**1,322,644**
**1,096,340**|
|||**1,273,324**|**1,273,324**
**1,088,770**|
||||**2021**
**2020**
**£**
**£**
4,391
9,826
1,351
923
72,356
53,926
13,449
8,400
2,894
1,584
37,650
38,450|
|Service charges|||30,420
30,420|
|Maintenance
Insurance & rates
Cleaning
Website & IT costs
Telephone
Accounting, legal & professional & governance
Printing & stationery
Depreciation
Bank charges & interest|||5,929
13,109
8,009
6,744
42,698
37,035
8,976
7,611
2,502
2,757
26,152
28,672
2,925
2,641
32,286
28,250
675
654|
||||**292,663**
**271,002**|
16
**SHOFAR DAY CARE CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
|**5. Analysis of resources expended by expenditure type**
Direct costs
**6. Net incoming resources**
This is stated after charging:
Depreciation of tangible fixed assets:
- owned by the charity
Pension costs|**Staff costs**
**Other Costs**
**Total**
**Total**
**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**£**
906,880
292,663
1,199,543
1,088,770|**Staff costs**
**Other Costs**
**Total**
**Total**
**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**£**
906,880
292,663
1,199,543
1,088,770|
|---|---|---|
||**906,880**
**292,663**|**1,199,543**
**1,088,770**|
|||**2021**
**2020**
**£**
**£**
32,286
28,250
61,761
50,830|
During the period no Trustees received any remuneration, benefits in kind or remuneration of expenses.
## **7. Auditors Remuneration**
The auditors remuneration amounts to £6,900, (2020: £6,000)
|**8. Staff Costs**
Wages and salaries
Social security costs
Pension costs
The number of higher paid employees was:
In the band £70,001 - £80,000
The average number of persons employed by the company during the year was as follows:
Staff
**Key Management Compensation**
Salaries and other short term benefits
Pension Costs|**2021**
**2020**
**£**
**£**
782,690
716,001
62,429
50,937
61,761
50,830|
|---|---|
||**906,880**
**817,768**|
||**2021**
**2020**
1
1
**2021**
**2020**
44
42
**2021**
**2020**
**£**
**£**
132,487
102,713
29,663
26,592|
||**162,150**
**129,305**|
17
**SHOFAR DAY CAR CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **9. Tangible Fixed Assets**
|**Cost**
At 1 January 2021
Additions
Eliminations
At 31 December 2021
**Accumulated Depreciation**
At 1 January 2021
Charge for the year
Eliminations
At 31 December 2021
**Net book value**
**At 31 December 2021**
**At 31 December 2020**|**Furniture &**
**Equipment**
**Computer**
**Equipment**
**Building**
**Development &**
**Improvements**
**Total**
**£**
**£**
**£**
**£**
51,959
14,608
509,645
576,212
-
-
30,420
30,420
-|
|---|---|
||**51,959**
**14,608**
**540,065**
**606,632**|
||51,958
13,885
148,794
214,637
-
722
31,564
32,286
-
-
-
-|
||**51,958**
**14,607**
**180,358**
**246,923**|
|||
||**1**
**1**
**359,707**
**359,709**|
||**1**
**723**
**360,851**
**361,575**|
All Tangible Fixed Assets are used in the furtherance of the Charity's objectives.
|**10. Debtors**
Trade debtors
Prepayments and accrued income
**11. Creditors: Amounts falling due within one year**
Trade creditors
Other creditors
Other taxation & social security
Deposits
Grants to Partner Charities|**10. Debtors**
Trade debtors
Prepayments and accrued income
**11. Creditors: Amounts falling due within one year**
Trade creditors
Other creditors
Other taxation & social security
Deposits
Grants to Partner Charities|**2021**
**2020**
**£**
**£**
11,075
28,580
14,736
16,194|
|---|---|---|
|||**25,811**
**44,774**|
|||**2021**
**2020**
**£**
**£**
13,802
17,738
2,357
8,678
18,501
11,135
141,536
160,255
73,781
-|
|Accruals & deferred income||49,719
49,806|
|||**299,696**
**247,612**|
||||
|**12. Analysis of Net Assets between Funds**|||
|**Unrestricted Funds**|**Tangible**
**Fixed Assets**
**£**|**Net Current**
**Assets**
**Total**
**£**
**£**|
|General Funds
Designated Funds|359,709
378,199
737,908
-
131,425
131,425||
||**359,709**
**509,624**
**869,333**||
||**Tangible**|**Net Current**||
|---|---|---|---|
||**Fixed Assets**|**Assets**|**Total**|
||**£**|**£**|**£**|
|**Unrestricted Funds**||||
|General Funds|359,709|378,199|737,908|
|Designated Funds|-|131,425|131,425|
||**359,709**|**509,624**|**869,333**|
18
**SHOFAR DAY CAR CENTRE (A Company Limited by Guarantee) Company registered number: 09395603 Charity registered number: 1160802**
## **13. Statement of funds Movement in Funds:**
||**Balance at**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 Jan 2021**
**31 Dec 2021**|
|---|---|
|**General Reserve**|601,320
1,323,030
(1,273,324)
86,882
737,908|
|**Designated Funds**||
|Major Works & Repairs to Sternberg Centre
Bursary and Hardship Fund
Partner Charities Grant Fund
Development Fund|68,144
-
-
20,000
88,144
4,830
-
-
-
4,830
77,962
-
-
(77,962)
-
60,761
6,610
-
(28,920)
38,451|
|**Total Designated Funds**|211,697
6,610
-
(86,882)
131,425|
|||
|**Total Unrestricted Funds**|**813,017**
**1,329,640**
**(1,273,324)**
**-**
**869,333**|
|||
The Major Works & Repairs to Sternberg Centre - an amount set aside by the Shofar board to be used for future refurbishment costs of the site.
The Bursary and Hardship Fund - to fund a bursary scheme to support parents who have need of financial assistance. The Partner Charities Grant Fund - Shofar is a party with four other charities to an agreement, the terms of which allow for a grant, by way of variable rent or donation to the other four charities, of surpluses earned by Shofar above a certain amount. The surplus earned by Shofar in the year ended 31 December 2019 and 31 December 2020 would normally have given rise to such a grant but, given the ongoing pandemic and its effect on operations and results in 2020 and 2021, the grant payout was deferred. The Trustees transferred the relevant amount to a designated fund which has now been adjusted to show in creditors the amount of the initial grant paid out in April 2022.
The Development Fund - to support the development and staff of Shofar Day Care Centre.
## **14. Pension commitments**
The company operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the company to the fund and amounted to £61,761 (2020: £50,830). £Nil (2020: £2,566) was outstanding at the year end.
## **15. Related Party Transactions**
There were no related party transactions during the year.
## **16. Operating Lease commitments**
The company has entered into an open-ended operating lease with base rent payable of £30,000 per annum.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|At 31 December 2021 the total of the Charity’s future|minimum lease payments under non-cancellable|operating leases|
|was:|||
|Less than one year|30,000|30,000|
|2-5 years|120,000|120,000|
|Over five years|100,000|130,000|
19
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