**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:
- 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;
- 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;
- care for and support the welfare of Jewish people in the Islington community with devotion and affection - no matter the time, place or need;
- educate both the Jewish community and the Islington community at large to live by the words "Love your fellow as yourself"; and
- 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 C ovid pandemic. To highlight a few stand out changes we have offered our beneficiaries:
- Whilst Covid-19 changed many elements of our charity, activities adapted quickly to provide at home and online services, including weekly food packages, holiday packages and online zoom sessions.
- Income from grants increased in order to support Covid-19 related projects.
- A shopfront became available on short term which allowed the charity to pilot having a community space and art gallery.
- Monthly supporters continues to increase year on year, with a specific target to secure a rental towards a community space.
- 1 -
## **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.
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CHABAD-LUBAVITCH OF ISLINGTON CIO
TRUSTEES. REPORT {CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
Statement of trust•os' r•spon8lblllll•s
The tru$lee8, who are 81so the directors of Chab8d-Luba¥Alch of Islington Limited for the purpose of company
law, are re3ponslble for preparfng the Trustees, Report and th8 financial statements in accordance wfth
applicable law and United Kingdom A¢untIng Standards Iunlled Kingdom Generally Aepted Accounting
Prgctic81.
Company Law requiies the trusiees to prepare Ilnancl81 ststemenl8 for 981* fflnancSal year whlch glve a Irue
gnd fair viaw of th* stsle tsf 8ffalrs of the charily and of the incoming re8ource8 8nd appllcation of r8source8,
Induding Ihè Incomè and expendllure, of th8 charftabl¥ company for that year.
In Preparlng Ihese financial 8tatam8n18. th8 irustses ara required to..
select sullable accounllng pollcles and Ih8n apply them ¢onsLstènlly'.
observe the methods and princip188 In the Charities SORP.,
• make judgaments and estlm8tes that affj reasonabla and prudent..
stal& whether appllcable UK Accountlng Standard8 havè b88n followed. 8Ut4ect ¢0 any materfgl
departures disdosed and 8xplained in the financial stateTnenls.' and
prepare the finan¢i81 stst8m8nts on the going con¢em basbs unless11 ly Inapproprfale to présume that the
charity VAII ccnUnue In operaOn.
The tru$t9¢8 ar¢ re$pon8lble for kegplng adoquate aCntIng records that dl8clos8 vAth re88on8blè accuracy
81 any Ilme the financlal poslllon of the chaTIty and enable them to en8ure that th¢ flnandal statements comply
with th8 Companies Aci 2006. They 8re also responsible for safeguarding the 8&set8 of the charity and hence
lor t8klng re880nable steps for the prevenfjon and detectlon of fraud and other Irr8oul8rlU88.
Th tru$t•o$' report was approlj by th8 Boarfl of Trusl8ts$.
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:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 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: 25 January 2022
- 4 -
## **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)|
|---|---|---|
- 5 -
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.
- 7 -
## **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.
- 8 -
**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.
- 9 -
## **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|
|---|---|---|---|
|||||
- 10 -
## **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|
|---|---|---|---|
- 11 -
## **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|
|---|---|---|
- 12 -
**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**
- 13 -
## **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|
|---|---|
- 14 -