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2022-08-31-accounts

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Charity Registration No. 1164760

CHABAD-LUBAVITCH OF ISLINGTON CIO

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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CHABAD-LUBAVITCH OF ISLINGTON CIO

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 15

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CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

The trustees present their report and financial statements for the year ended 31 August 2022.

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.

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CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

Over the past year, Chabad Islington changed significantly as we rented a dedicated community space. Creating a focal point for participants to meet for classes and events has allowed the charity to mature and develop in new ways which was not possible in the past. The current space is just behind Essex Road, a one minute walk from Islington Green with easy access to bus and train routes.

Lease terms are three years with a break clause after two years. Long term permanent community space options are being explored.

A new opportunity with this space has included creating the Ein Sof Art Gallery, which is dedicated to exhibiting contemporary art by Jewish artists and celebrating Jewish culture, identity and history. The gallery is a project of Chabad Islington, which celebrates creative and expressive Judaism.

Exhibitions have included works from Nicole Zisman, Jeremy Keenan, Hervé Constant and a private loan of Pinchas Litvinovsky’s works. Funding from Art Council England has supported some of the exhibitions. Currently, the gallery is the only Jewish art gallery in London.

Kosheroo, our kosher food delivery service has undergone a full upgrade ensuring the website has clear and up to date high quality graphics and information and the delivery service is reliable & affordable. The upgrade was funded thanks to a grant from the SSE Heritage Trade Up programme.

Stand out events and news include:

10th annual Islington Menorah Lighting, over 500 people in attendance including the debut performance of the adaptation of Neil Diamond’s Sweet Caroline called Sweet Chanukah. Funded by Islington Council’s Local Initiative Fund.

Passover Seder at Camley Street Natural Park along Regent's Canal, 85 people in attendance celebrated 'al

fresco’ with people from across Islington and visitors from around the world.

Big Jewish Summer Fete, over 300 people in attendance. A free, family day out for the whole community, celebrating Jewish culture in the heart of Islington. Emily Thornberry MP attended and supported by the National Lottery.

Islington Jewish Heritage Trail project received nearly £25,000 funding from Mayor of London’s Untold Stories fund as part of his Commission for Diversity in the Public Realm. The project will celebrate the rich Jewish history of Islington and its landmarks by developing resources for a self-guided tour and delivering a series of free guided walking tours for the community.

Quote of the year from Eve, Daniele & Viola, new community and supporter club members:

"Hadasa and Mendy and their family are amazing. They have always made us feel welcomed and respected. Babyccino has been great and our daughter love to attend is every week. Thank you for everything ."

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CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Financial review

The charity's income for the year amounted to £171,021(2021 - £244,173) and the expenditure for the year was £205,959(2021 - £157,766). The resulting net expenditure was £34,938 (2021 - net income of £86,407).

During the year the charity was in receipt of £67,601 (2021 - £79,344) of restricted grants in total. Of this amount, £48,803 was remaining at year end (2021 - £76,345).

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 2022

Statement of trustees' responsibilities

The trustees, who are also the directors of Chabad-Lubavitch of Islington Limited for the purpose 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' report was approved by the Board of Trustees.

Rabbi A Sufrin

Trustee Dated: 8 February 2023

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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 2022.

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.

Elliott Pearl ACA

for and on behalf of Gravita Business Services Limited

Dated: 8 February 2023

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CHABAD-LUBAVITCH OF ISLINGTON CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
3
57,249
67,601
Charitable activities
Education and welfare
4
25,349
-
Other activities
5
20,794
-
Investment income
6
28
-
Total income
103,420
67,601
Expenditure on:
Raising funds
7
1,326
-
Charitable activities
Education and welfare
8
175,852
28,781
Total charitable expenditure
175,852
28,781
Total resources expended
177,178
28,781
Net (expenditure)/income for the year/
Net movement in funds
(73,758)
38,820
Fund balances at 1 September 2021
76,345
9,983
Fund balances at 31 August 2022
2,587
48,803		 Total
2022
£
124,850
25,349
20,794
28
171,021
1,326
204,633
204,633
205,959
(34,938)
86,328
51,390		 Total
2021
£
180,878
45,307
17,985
3
244,173
1,372
156,394
156,394
157,766
86,407
(136)
86,271

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CHABAD-LUBAVITCH OF ISLINGTON CIO

BALANCE SHEET

AS AT 31 AUGUST 2022

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds		 2022
£
18,264
41,693
59,957
(9,777)		 £
1,210
50,180
51,390
48,803
2,587
51,390		 2021
£
1,011
92,998
94,009
(9,282)		 £
1,544
84,727
86,271
76,345
9,926
86,271

The financial statements were approved by the trustees on 8 February 2023

Rabbi A Sufrin Trustee

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 1-3 Elliott’s Place, Islington, London, N1 8HX.

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.

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.

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

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.

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.

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

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.

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.

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
53,249
-
Grants
4,000
67,601
57,249
67,601
For the year ended 31 August 2021
101,534
79,344
4
Charitable activities
Sales within charitable activities
5
Community events
Community events
6
Investment income
Interest receivable		 Total
2022
£
53,249
71,601
124,850
2022
£
25,349
2022
£
20,794
2022
£
28		 Total
2021
£
57,702
123,176
180,878
180,878
2021
£
45,307
2021
£
17,985
2021
£
3

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

7 Raising funds
Fundraising and publicity
Education and welfare
Other fundraising costs
Fundraising and publicity		 2022
£
-
1,326
1,326
1,326		 2021
£
278
1,094
1,372
1,372

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

8 Charitable activities

Staff costs
Depreciation and impairment
Hosting expenses
Insurance
Telephone
Charitable expenses
Staff training
Subscriptions
Computer expenses
Repairs and renewals
Education and welfare
Printing and stationery
Covid Expenses
Rabbinical Services
Educational Services
Rent
Other charitable expenditure
Grant funding of activities (see note 9)
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 August 2021
Unrestricted funds
Restricted funds		 2022
£
1,200
334
2,038
809
720
29,781
988
1,962
-
6,787
32,741
2,750
392
25
5,710
54,708
15,363
156,308
26,777
20,588
960
204,633
175,852
28,781
204,633		 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

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

9 Grants payable

2022 2021
£ £
Grants to institutions:
Other 26,777 -

10 Support costs

Support
costs
Governance
costs
£
£
Staff costs
18,000
-
Travelling
1,390
-
Bank charges
1,197
-
Accountancy
-
960
20,587
960		 2022
£
18,000
1,390
1,197
960
21,547		 2021
£
15,469
833
1,044
960
18,306

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Employees

Number of employees

The average monthly number employees during the year was:

2022 2021
Number Number
- 2
Employment costs 2022 2021
£ £
Wages and salaries 17,994 15,469
Social security costs 6 -
Other pension costs 1,200 1,200
19,200 16,669

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CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

13 Other gains or losses

13
Other gains or losses
2022
£
Redemption of share capital
1
14
Tangible fixed assets
Fixtures and
fittings
Computers
£
£
Cost
At 1 September 2021
345
1,327
At 31 August 2022
345
1,327
Depreciation and impairment
At 1 September 2021
36
92
Depreciation charged in the year
69
265
At 31 August 2022
105
357
Carrying amount
At 31 August 2022
240
970
At 31 August 2021
309
1,235
15
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
2,129
Other debtors
1,657
Prepayments and accrued income
14,478
18,264
16
Creditors: amounts falling due within one year
2022
Notes
£
Bank overdrafts
455
Other taxation and social security
6
Other creditors
8,356
Accruals and deferred income
960
9,777		 2021
£
1
Total
£
1,672
1,672
128
334
462
1,210
1,544
2021
£
454
557
-
1,011
2021
£
-
-
8,322
960
9,282