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2021-08-31-accounts

Charity Registration No. 1164760

CHABAD-LUBAVITCH OF ISLINGTON CIO

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

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 - 14

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report and financial statements for the year ended 31 August 2021.

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:

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 C ovid pandemic. To highlight a few stand out changes we have offered our beneficiaries:

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

The charity's income for the year amounted to £244,173 (2020 - £145,971) and the expenditure for the year was £157,766 (2020 - £138,001). The resulting net income was £86,407 (2020 - net income of £7,970).

During the year the charity was in receipt of £79,344 (2020 - £16,933) of restricted grants in total. Of this amount, £76,345 was remaining at year end (2020 - £10,870).

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.

CHABAD-LUBAVITCH OF ISLINGTON CIO TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Statement of trust•os' r•spon8lblllll•s The tru$lee8, who are 81so the directors of Chab8d-Luba¥Alch of Islington Limited for the purpose of company law, are re3ponslble for preparfng the Trustees, Report and th8 financial statements in accordance wfth applicable law and United Kingdom A¢￿untIng Standards Iunlled Kingdom Generally A￿epted Accounting Prgctic81. Company Law requiies the trusiees to prepare Ilnancl81 ststemenl8 for 981 fflnancSal year whlch glve a Irue gnd fair viaw of th stsle tsf 8ffalrs of the charily and of the incoming re8ource8 8nd appllcation of r8source8, Induding Ihè Incomè and expendllure, of th8 charftabl¥ company for that year. In Preparlng Ihese financial 8tatam8n18. th8 irustses ara required to.. select sullable accounllng pollcles and Ih8n apply them ¢onsLstènlly'. observe the methods and princip188 In the Charities SORP., • make judgaments and estlm8tes that affj reasonabla and prudent.. stal& whether appllcable UK Accountlng Standard8 havè b88n followed. 8Ut4ect ¢0 any materfgl departures disdosed and 8xplained in the financial stateTnenls.' and prepare the finan¢i81 stst8m8nts on the going con¢em basbs unless11 ly Inapproprfale to présume that the charity VAII ccnUnue In opera￿On. The tru$t9¢8 ar¢ re$pon8lble for kegplng adoquate aC￿ntIng records that dl8clos8 vAth re88on8blè accuracy 81 any Ilme the financlal poslllon of the chaTIty and enable them to en8ure that th¢ flnandal statements comply with th8 Companies Aci 2006. They 8re also responsible for safeguarding the 8&set8 of the charity and hence lor t8klng re880nable steps for the prevenfjon and detectlon of fraud and other Irr8oul8rlU88. Th tru$t•o$' report was appro￿lj by th8 Boarfl of Trusl8ts$. R•bbl A Sufrln Trustge Dated.. 25 January 2022

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 2021.

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:

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: 25 January 2022

CHABAD-LUBAVITCH OF ISLINGTON CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
3
101,534
79,344
Charitable activities
Education and welfare
4
45,307
-
Other activities
5
17,985
-
Investment income
6
3
-
Total income
164,829
79,344
Expenditure on:
Raising funds
7
1,372
-
Charitable activities
Education and welfare
8
142,525
13,869
Total charitable expenditure
142,525
13,869
Total resources expended
143,897
13,869
Net income for the year/
Net movement in funds
20,932
65,475
Fund balances at 1 September 2020
(11,006)
10,870
Fund balances at 31 August 2021
9,926
76,345		 Total
2021
£
180,878
45,307
17,985
3
244,173
1,372
156,394
156,394
157,766
86,407
(136)
86,271		 Total
2020
£
106,386
21,406
18,177
2
145,971
53
137,948
137,948
138,001
7,970
(8,107)
(137)

CHABAD-LUBAVITCH OF ISLINGTON CIO BALANCE SHEET ASAT31 AUGUST2021 2021 2020 Flx•d a•••t• Tangib￿ asse18 13 1,S44 Curr•nt aA••ts Debtor8 Cash 81 bank and In hand 14 1.011 92,998 391 8,751 94,C4J9 9,142 Crodltor•: •mounts f•lllnq duo wlthln on• y••r 15 19,282) 9,2791 Net ￿Thent 88$9ts1{114bllllle81 84.727 1137) Totsl a•Ht¥ l••• curr•nt Il•bllltl•• 86.271 11371 Incom• fund• Restrlcied fund8 Unr•slrf¢ted funds 76,345 9,928 10.869 111,0061 86,271 11371 The finan¢lo18tatements wore approved by Ihe tru8tee8 on 25 January 2022 Rabbl A Sufrln Tru•t••

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 a mounts 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.

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

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 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 20% Straight line Computers 20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 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.

1.9 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.

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

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 p aymen ts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 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.

1.12 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.

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
57,702
-
Grants
43,832
79,344
101,534
79,344
For the year ended 31 August 2020
89,454
16,932
4
Charitable activities
Sales within charitable activities
5
Community events
Community events
6
Investment income
Interest receivable		 Total
2021
£
57,702
123,176
180,878
2021
£
45,307
2021
£
17,985
2021
£
3		 Total
2020
£
89,454
16,932
106,386
106,386
2020
£
21,406
2020
£
18,177
2020
£
2

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Raising funds
Fundraising and publicity
Education and welfare
Other fundraising costs
Fundraising and publicity		 2021
£
278
1,094
1,372
1,372		 2020
£
53
-
53
53

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

8 Charitable activities

Staff costs
Depreciation and impairment
Insurance
Telephone
Charitable expenses
Staff training
Subscriptions
Computer expenses
Repairs and renewals
Education and welfare
Security costs
Printing and stationery
Covid Expenses
Rabbinical Services
Educational Services
Rent
Other charitable expenditure
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 2020
Unrestricted funds
Restricted funds		 2021
£
1,200
128
671
374
15,935
708
947
313
8,145
28,350
-
1,890
7,906
2,500
6,028
31,000
31,993
138,088
17,346
960
156,394
142,525
13,869
156,394		 2020
£
300
-
563
417
9,435
-
331
288
4,297
6,033
469
-
49,567
-
3,330
37,367
10,960
123,357
13,458
1,133
137,948
128,812
9,136
137,948

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
15,469
-
Travelling
833
-
Bank charges
1,044
-
Legal and professional
-
-
Accountancy
-
960
17,346
960		 2021
£
15,469
833
1,044
-
960
18,306		 2020
£
12,310
475
673
13
1,120
14,591

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:

2021 2020
Number Number
2 2
Employment costs 2021 2020
£ £
Wages and salaries 15,469 12,310
Other pension costs 1,200 300
16,669 12,610
Other gains or losses
2021 2020
£ £
Redemption of share capital 1 1

12 Other gains or losses

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

13
Tangible fixed assets
Fixtures and
fittings
Computers
£
£
Cost
Additions
345
1,327
At 31 August 2021
345
1,327
Depreciation and impairment
Depreciation charged in the year
36
92
At 31 August 2021
36
92
Carrying amount
At 31 August 2021
309
1,235
14
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
454
Other debtors
557
1,011
15
Creditors: amounts falling due within one year
2021
£
Other creditors
8,322
Accruals and deferred income
960
9,282		 Total
£
1,672
1,672
128
128
1,544
2020
£
173
218
391
2020
£
8,319
960
9,279