Charity Registration No. 1164760
CHABAD-LUBAVITCH OF ISLINGTON CIO
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
CHABAD-LUBAVITCH OF ISLINGTON CIO
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 15 |
CHABAD-LUBAVITCH OF ISLINGTON CIO
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2020
The trustees present their report and financial statements for the year ended 31 August 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1.1 to the accounts and comply with the Charities Act 2011 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 Republic of Ireland (FRS 102) (effective 1 January 2015)”.
Objectives and activities
The charity's main aim is to support the advancement of the orthodox Jewish religion in accordance with the principles of Chabad Lubavitch. The main objectives of the charity are:
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provide a welcoming open door to Jewish people of all walks of life no matter their background or affiliation in the immediate area of Islington and also surrounding areas;
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make Judaism accessible and relevant to every Jew by empowering them to personally take ownership of their Judaism in a meaningful way never underestimating the value of a single deed;
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care for and support the welfare of Jewish people in the Islington community with devotion and affection - no matter the time, place or need;
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educate both the Jewish community and the Islington community at large to live by the words "Love your fellow as yourself"; and
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create innovative and attractive programs tailored to the needs of the immediate and outlying community of Islington.
Public benefit
The trustees have given careful consideration to the Charity Commission's guidance on public benefit when setting the aims and objectives of the charity. The charity adheres to the principles of Chabad.
Chabad is the largest Jewish outreach organisation in the world, active in more than 80 countries. Our primary focus is the Jewish community where it has been lauded by all segments for its innovative and compassionate programs. Chabad provides social service, educational and outreach programs. It has no affiliation with any political organisation.
Chabad has a long history of religious tolerance and has been on the forefront efforts of humanitarian relief. In the past years it took a leading role after the Tsunami in Japan and the earthquake in Haiti.
Achievements and performance
Chabad Lubavitch of Islington currently serves the Borough of Islington as its only Jewish institution. Since 2011 the charity has been offering a range of social, religious and educational activities.
The charity has adapted to the massive changes of the Covid pandemic. To highlight a few stand out changes we have offered our beneficiaries:
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520 food packages with face-to-face contact and signposting to key services on a weekly and holiday basis, including Passover and Shavuot.
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Four online classes to reduce isolation on a weekly basis, and where possible face-to-face classes in a Covid secure venue.
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Working with Islington Council to offer pharmacy delivery to vulnerable and shielding individuals.
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Supporting other charities in their fundraising efforts including grant writing skills and distribute funds towards an emergency Covid response.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
Financial review
The charity's income for the year amounted to £145,971 (2019 - £103,747) and the expenditure for the year was £138,001 (2019 - £110,123). The resulting net income was £7,970 (2019 - net expenditure of £6,376).
During the year the charity was in receipt of £16,932 (2019 - £7,741) of restricted grants in total. Of this amount, £10,869 was remaining at year end (2019 - £3,072).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a Charitable Incorporated Organisation registered with the Charity Commission.
The CIO was established under a Memorandum of Association which established the objects and powers of the CIO and is governed under its Articles of Association.
The trustees who served during the year and up to the date of signature of the financial statements were: Rabbi A Citron Rabbi A Sufrin Mr S Cousin
New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of the CIO.
The trustees are ultimately responsible for the policies, activities and assets of the CIO. They meet regularly during the year to review developments with regard to the CIO, its activities and make any important decisions. When necessary, the trustees seek advice and support from the CIO's professional advisors.
New trustees are given a full induction by the other trustees of the charity. Trustees can retire when they wish as they do not serve under a fixed term of tenure.
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CHABAD-LUBAVITCH OF ISLINGTON CIO TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Statem•nt of trusts•s' r•$ponslbllltl•s The Irustees, who are also the directors of Chabad-Lubavilch of1s1inglDn Limited for thé purpose of company law. are responsible for preparing the Trustees, Raport and the financial statements in accordance witt) applicable law and United Kingdom Accounllng Standards (United Kbngdom Generally Accepted Accounting PraGlice}. Company Law require5 the Iruslee5 to prepare financial 5talemgnts for each financlal year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and applic81ion of resources. Includlng the income and expenditure, of the charitable company for that year. In preparfng these finandal slatemenls, the IN$tees are required lo.. sebct sultsble accounting policies and then apply them consislenlly,. observe the methods and prfncipl85 in the Charities SORP., mak• judgemenls and estimates Ihal are reasonable and prudent., stale whether appllcable UK Accounting Standards have been followed, subject to any materlal departures dlsclosed and 8xpl8ined in the financial slalements." and prepare th8 flnanclal ststements on the going concern basls unless il is inapproprfate lo presume that thè charlly vlll continue in opgration. The Irust6es are responsible for keeplng adequat8 accounling records that disclose wllh reasonablg accuracy at any lirne the financAal position ol Ihe charity and enoble them to 8nstJre that Ihe financlal statements comply th the Companies Aet 2006. They are also rgsponsible for safeguardlng the assets of the Charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irreg4J1ad8$. The Irusl8es' rèport W88 approved by lh• Board of Trust888. Rabbl A Sufrln Truste8 Daled.. 23 December 2020
CHABAD-LUBAVITCH OF ISLINGTON CIO
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CHABAD-LUBAVITCH OF ISLINGTON CIO
I report to the trustees on my examination of the financial statements of Chabad-Lubavitch of Islington CIO (the charity) for the year ended 31 August 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mark Tenzer FCA for and on behalf of Jeffreys Henry LLP
Dated: 23 December 2020
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CHABAD-LUBAVITCH OF ISLINGTON CIO
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2020
| Unrestricted Restricted funds funds Notes £ £ Income from: Donations and legacies 3 89,454 16,932 Charitable activities Education and welfare 4 21,406 - Other activities 5 18,177 - Investment income 6 2 - Total income 129,039 16,932 Expenditure on: Raising funds 7 818 - Charitable activities Education and welfare 8 128,047 9,136 Total charitable expenditure 128,047 9,136 Total resources expended 128,865 9,136 Net income/(expenditure) for the year/ Net movement in funds 174 7,796 Fund balances at 1 September 2019 (11,180) 3,073 Fund balances at 31 August 2020 (11,006) 10,869 |
Total 2020 £ 106,386 21,406 18,177 2 145,971 818 137,183 137,183 138,001 7,970 (8,107) (137) |
Total 2019 £ 60,375 11,949 31,416 7 103,747 3,610 106,514 106,514 110,124 (6,377) (1,730) (8,106) |
|---|---|---|
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CHABAD-LUBAVITCH OF ISLINGTON CIO BALANCE SHEET ASAT31 AUGUST2020 2020 2019 Nol•s Currnnt •$$•ts D8btOTS C8sh at bank and in hand 13 391 8,751 393 9,142 1.035 Cr•dltor8: amounts falllng du• wlthln on• y••r 14 19.279) 19,1411 Net current Ilablllll8$ 1371 18.1061 Incom• funds Restrlcted lund8 Unreslricled fund GenerBI unstcted funds Sharè capital 10,869 3.072 111.0061 111.1791 111,0081 111.178} 11371 18.1061 The financial stslemants woro opproved by thg tru$tee¥ on 23 D8cember 2020 R8bbi A Sufrin Tru8t••
CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
Charity information
Chabad-Lubavitch of Islington Limited is a private company limited by shares incorporated in England and Wales. The registered office is Regent Studios Unit 110, 1 Thane Villas, Islington, London, N7 7PH.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities Act 2011 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 Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the accountancy fees and costs linked to the strategic management of the charity.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1 Accounting policies
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.8 Taxation
The charity is exempt from corporation tax on its charitable activities.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
3 Donations and legacies
| Unrestricted Restricted funds funds £ £ Donations and gifts 89,454 - Grants - 16,932 89,454 16,932 For the year ended 31 August 2019 52,634 7,741 4 Charitable activities Sales within charitable activities 5 Community events Community events 6 Investment income Interest receivable |
Total 2020 £ 89,454 16,932 106,386 2020 £ 21,406 2020 £ 18,177 2020 £ 2 |
Total 2019 £ 52,634 7,741 |
|
|---|---|---|---|
| 60,375 | |||
| 60,375 | |||
| 2019 £ 11,949 |
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| 2019 £ 31,416 |
|||
| 2019 £ 7 |
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
| 7 | Raising funds Fundraising and publicity Staging fundraising events Education and welfare Fundraising and publicity |
2020 £ 765 53 818 818 |
2019 £ 3,570 40 |
|---|---|---|---|
| 3,610 | |||
| 3,610 |
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
8 Charitable activities
| Staff costs Hosting expenses Insurance Telephone Charitable expenses Staff training Subscriptions Computer expenses Repairs and renewals Education and welfare Security costs Printing and stationery Share of support costs (see note 9) Share of governance costs (see note 9) Analysis by fund Unrestricted funds Restricted funds For the year ended 31 August 2019 Unrestricted funds Restricted funds |
2020 £ 300 - 563 417 109,893 - 331 288 4,297 6,033 470 - 122,592 13,458 1,133 137,183 128,047 9,136 137,183 |
2019 £ - 4,020 475 - 44,954 160 517 303 307 33,335 1,033 1,318 86,422 20,119 (27) 106,514 94,549 11,965 106,514 |
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
9 Support costs
| Support costs Governance costs £ £ Staff costs 12,310 - Travelling 475 - Bank charges 673 - Legal and professional - 13 Accountancy - 1,120 13,458 1,133 Analysed between Charitable activities 13,458 1,120 |
2020 £ 12,310 475 673 13 1,120 14,591 14,578 |
2019 £ 18,486 610 1,023 13 (40) |
|---|---|---|
| 20,092 | ||
| 20,092 |
10 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
11 Employees
Number of employees
The average monthly number employees during the year was:
| 2020 | 2019 | ||
|---|---|---|---|
| Number | Number | ||
| 2 | 2 | ||
| Employment costs | 2020 | 2019 | |
| £ | £ | ||
| Wages and salaries | 12,310 | 18,486 | |
| Other pension costs | 300 | - | |
| 12,610 | 18,486 | ||
| 12 | Other gains or losses | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Redemption of share capital | 1 | - |
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
| 13 Debtors 2020 Amounts falling due within one year: £ Trade debtors 173 Other debtors 218 391 14 Creditors: amounts falling due within one year 2020 £ Other creditors 8,319 Accruals and deferred income 960 9,279 15 Analysis of net assets between funds Restricted funds Unrestricted funds £ £ Fund balances at 31 August 2020 are represented by: Current assets/(liabilities) (137) - (137) - 16 Share capital 2020 £ Ordinary share capital Issued and fully paid - Ordinary share of £1 each - - |
2019 £ 174 219 393 2019 £ 8,341 800 9,141 Total £ (137) (137) 2019 £ 1 1 |
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The CIO had previously issued share capital as a Limited company of one ordinary share with a nominal value of £1. The share was held by Lubavitch (UK) Limited. Lubavitch (UK) Limited was not entitled to dividends or participate on any distribution of capital or income.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
| 16 | Share capital | 2020 | 2019 |
|---|---|---|---|
| Reconciliation of movements during the year: | |||
| Number | |||
| At 1 September 2019 | 1 | ||
| Share Reduction on Conversion to CIO | (1) | ||
| At 31 August 2020 | - |
17 Related party transactions
There were no disclosable related party transactions during the year (2019 - none).
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