Registered number: 10633799 Charity number: 1171869
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Trustees' responsibilities statement | 10 |
| Independent auditor's report on the financial statements | 11 - 14 |
| Statement of financial activities | 15 |
| Balance sheet | 16 - 17 |
| Statement of cash flows | 18 |
| Notes to the financial statements | 19 - 33 |
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2021
| Trustees | Benjamin Mire |
|---|---|
| Isaac Levy | |
| Russell Kett | |
| Brian Markeson | |
| Company registered number 10633799 Charity registered number 1171869 Registered office Elscot House Arcadia Avenue London N3 2JU Company secretary Avrom Topperman Chief executive officer Avrom Topperman Independent auditor Blick Rothenberg Audit LLP Chartered Accountants & Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH Bankers National Westminster Bank Plc City of London office PO Box 12258 1 Princes Street London EC2R 8BP Solicitors Stanmore Law Practice 51/53 The Broadway Middlesex HA7 4DJ Investment advisors Rathbone Investment Management Limited 8 Finsbury Circus London EC2M 7AZ Property advisors KMP Solutions Limited First Floor, The Edge Business Centre Unit 8 Humber Road London NW2 6EW |
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2021
The Trustees present their annual report together with the audited financial statements of the charity for the year 1 July 2020 to 30 June 2021.
The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd Edition, effective January 2019) ("Charities SORP") and the Companies Act 2006.
Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
The objective of the Board is to ensure the provision of kosher meat and poultry for the Jewish community in and around London, and such other Jewish communities that may wish to associate themselves with the Board.
The Board shall achieve this by all such measures as may be deemed necessary, including administering and managing shechita (the Jewish religious, humane method of animal slaughter for food), through training and employing such staff as are requisite for shechita procedures, supervision of meat and poultry processing, sealing, monitoring and certification of these activities, in accordance with the Shulchan Aruch (the Code of Jewish Law) and Halacha (Jewish religious and procedural Law following the Code).
The Board’s major expense includes staff costs, sealing materials and general office expenses.
Income to meet this expenditure is derived from shechita fees, shomer recharges and income generated from its rental investment properties and listed investments.
A licensee whose conditions and licence require them to use the services of a full or part-time supervisor (shomer) provided by the Board, is recharged by the Board for the cost of such services.
Establishments wishing to manufacture and/or wholesale and/or retail products under the Board’s certificated supervision, must be licensed annually by the Board and submit themselves to the jurisdiction of the Board’s Rabbinical Authority.
In protecting the provision of shechita and the supply of Kosher meat and poultry for its beneficiaries, the Board also budgets for training and educational services and provides a conduit for information passing between licensees, government agencies, ministries and the general public.
The Board is also a major supporting member of the National Council of Shechita Boards of Great Britain, which is the main national organisation responsible for the promotion of shechita as a humane method of animal slaughter for food consumption.
The charity has achieved the aim of enabling the Jewish community to have access to kosher meat and poultry that complies with their religious laws, by way of supervision, certification and administration. This is an essential tenet of Jewish communal life and allows the community to continue to function. This contributes towards Britain as a tolerant and enlightened society, by way of members of the Jewish community being able to practise their faith in an inclusive manner.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Achievements and performance
Licensing
Members of the Licensing Committee (Chaired by Dr Lionel Finkelstein) reviewed all licensed premises by way of holding zoom meetings with the licensees as opposed to physical attendances due to Covid precautions, prior to considering licence renewals for the Hebrew year 5781 (September 2020 to September 2021). They also obtained feedback from the Board’s senior inspector.
They passed on comments to individual licensees and were able to offer renewal to all licensees.
As at the 30th June 2021, the Board licensed 23 premises (with the licences held by 10 individuals), which included:
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Three poultry abattoirs;
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Two fully EU-approved factories (as well as the ‘factory’ capacity at some of the licensed shops);
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• Eighteen licensed shops in London and one licensed shop in Manchester.
In considering whether to grant a licence there are a variety of considerations that are relevant beyond the suitability of the licensing and the premises. Some of those considerations relate to protecting the consumer, some relate to protecting the reputation and integrity of, and public trust in the Board, and some relate to the need to ensure sufficient competition in the relevant Kosher markets, whilst not compromising on quality available to consumers. Understandably, some of those considerations conflict.
In recent years, with the restructuring and consolidation among butchers, those considerations are potentially more in conflict now than ever before.
The Board has also become increasingly aware of its responsibilities under secular competition law which is why long ago it removed blanket restrictions when considering applications for new premises that were close to existing premises.
The Rabbinical Authority is asked for Halachic guidance on each application. Consideration is given to the Report of SLG Economics Ltd (commissioned to conduct a review of competition issues in the licensing, wholesaling and retailing of Kosher meat), when determining licence applications, following the submission of this confidential expert report through the Board’s solicitors in March 2013.
Shechita Operations
The Board remains concerned about the continued attacks upon shechita, by virtue of occasional outbursts in media activity critical of religious slaughter, which is bolstered by the ongoing policy of The British Veterinary Association that wish to see a ban on religious slaughter without pre-stunning, plus regular negative speeches made on the subject in parliament.
The threat of the introduction of pejorative labelling making reference to stunned and non-stunned slaughter, the ECJ decision relating to shechita in Belgium and the debate in parliament relating to ‘slaughter to order’, may have a detrimental impact on the continuing willingness of abattoirs which currently permit shechita operations as part of their business model to continue granting that facility. The Board continues to work with Shechita UK, assisting them in their defence of shechita.
The ongoing COVID pandemic during the accounting period presented a number of challenges to the Board, not least in terms of availability of staff either ill with the virus or isolating. However, demand for meat was up on previous years due to the additional members of the Jewish community remaining in the UK for various festivals as opposed to travelling to friends and family outside of the UK.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Achievements and performance (continued)
Shechita Operations (continued)
Overall, the pandemic has not caused a significant impact on the Board’s financial position thankfully as whilst the amount of meat consumed via catered functions inevitably reduced in line with legal requirements; this has been largely offset by additional demand from customers at home.
The Trade and Consumers
The Board maintains a close working relationship with the trade. Apart from contact with individual licensees, the trustees invite representatives of the trade to quarterly board meetings, with an open agenda.
The Consumer Affairs Committee (chaired by Seth Belson) continues to promote the Board’s brand and image and develop marketing initiatives and communications to counter widely held perceptions, often expressed in some Jewish media about the price of Kosher meat and poultry. The Board facilitated an interview of Shimon Cohen of Shechita UK undertaken by Rabbi Chapper of Borehamwood & Elstree Synagogue with the aim of increasing consumer awareness of the challenges facing shechita in the UK and beyond
The Board continued to invite trade representatives to deliver a routine report on the current state of the market at each quarterly meeting.
Shechita Defence
The defence of shechita is led through the National Council of Shechita Boards, of which the London Board is a significant financial contributor. Financial contributions assist in funding the work of Shechita UK, a Public Affairs Consultancy engaged by the National Council and the Board of Deputies, which undertakes work necessary in the realm of shechita defence, both as regards media relations and the promotion and defence of shechita at government level. Regular updates on the work of Shechita UK are distributed to interested parties by the Board.
Rabbinical Authority
The Board thanks the members of the Rabbinical Authority; Dayan M Gelley of the United Synagogue and Dayan A David of the Spanish & Portuguese Community for sharing their considerable knowledge and time that they have freely given to its work.
Staffing
Following a rigorous recruitment process in autumn 2020 the Board appointed Rabbi Binyomin Goldblatt as its Rav Mamachshir (senior Rabbinic Supervisor) with Rabbinic responsibility for day to day shechita operations. The Rav Hamachshir reports into the Chief Executive but liaises regularly with the Rabbinic Authority to ensure that their direction and requirements are being implemented.
2020 also saw the retirement of long-standing Rosh Hashochtim, Rabbi Shmuel Bitan z’l (sadly, at time of writing now deceased). The Board has not appointed a new Rosh Hashochtim but was pleased to announce the appointment in May 2020 of Rabbi Avrohom Weisfish as team leader of its cattle / lamb team in Manchester.
Both of these senior appointments add significantly to the Board’s credibility as a leading shechita operation and together with the Chief Executive, enhancements to an already strong shechita operation have been implemented by the new appointments.
The Chief Executive, Rav Hamachshir (Senior Rabbinic Supervisor) and Senior Inspector comprise the key management personnel of the charity and are in charge of directing and controlling, running and operating the charity on a day-to-day basis.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Achievements and performance (continued)
Staffing (continued)
The Chief Executive continues to monitor the staffing levels against any movement in volumes slaughtered and the fluctuating needs of its licensees, including abattoirs and factories under its supervision. He liaises closely with the Rabbinical Authority on their staffing requirements, to ensure standards of Kashrut are maintained.
Regrettably, the Board made one shomer compulsorily redundant during 20/21. The Board continues to look closely at its future staffing requirements and the need to plan ahead and train and recruit staff.
The Board thanks its staff for their work for the benefit of the community at locations, with working hours and conditions, that few members of the community would themselves be willing to work.
All trustees give of their time freely and none of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period. No trustees were reimbursed for expenses during the year.
The pay of the senior staff, is reviewed annually and was increased in accordance with their contractual entitlements in April 2021.
In view of the nature of the charity, the trustees benchmark pay levels against other community charities of a similar size. Particular regard is made when determining salary policy to the scarcity of available labour in an extremely specialised field.
Properties and Investments
Benjamin Mire, one of the Board’s Honorary Officers continues to support the Chief Executive and his assistant, in the management of the Board’s investment properties. In early 2021 the Board put its property management work out to tender as a result of which a new agent, KMP Solutions Limited, was appointed.
Working together with the managing agents and property solicitors, there has been continued progress in rent reviews, lease renewals, new lettings and the redevelopment of empty properties to make them more marketable and lettable.
Off the back of the COVID pandemic the Board saw the value of listed investments reduce in 19/20. However, a significant amount of those losses have been recovered into 20/21 and on the advice of the Board’s investment advisers, Rathbones, it is anticipated that the value of those investments will in due course recover to pre-COVID levels once the pandemic is over.
Throughout the period there has been some expenditure on investment properties in accordance with advice from the charity’s managing agents. In addition, professional fees have been incurred with the charity’s property solicitors and managing agents.
Financial review
The board is a registered charity and non-profit making entity and it budgets for a modest surplus to enable it to operate with financial stability.
For the 12 month period ended 30th June 2021, the results show a net deficit of £288,053 (2020: net surplus £323,974). Last year's surplus included net gains on investments of £778,217 which were largely due to the revaluation on the investment property (2020: £850,000).
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Financial review (continued)
Total expenditure during the year was £2,745,633 (2020: £2,743,463) of which £2,657,400 (2020: £2,548,606) was spent on the provision and administration of shechita, and the balance on investment, management and governance costs. This included a grant of £36,000 (2020: £52,333), awarded to the National Council of Shechita Broads of Great Britain towards the protection and administration of shechita in the UK and EU.
The Trustees remain confident that the Board remains a going concern despite its expenditure exceeding its direct income having regard to:
a) its available cash reserves; and b) its ongoing review of expenditure and the progress that has been made over the last 12 months in reducing the same on an ongoing basis.
The Finance Committee (chaired by Laurence Golend) has continued its sophisticated role in advising and assisting the Honorary Treasurer, by regularly reviewing the Board's finances at its committee meetings.
Reserves Policy
The Board has reviewed and maintained its financial policy over recent years, whereby the unrestricted funds not committed to or invested in tangible or fixed assets or designated for other specific purposes (the ‘free reserves’) held by the charity, should be four months of the wage and salary costs equating to £780,000 in general funds. The free reserves at 30th June 2021 amount to £1,349,934.
Investment Policy
It is the policy of the trustees to invest surplus funds in suitable investments, in order to maximise returns to the charity. The charity holds an investments portfolio with Rathbones Investment Managers and has three income generating investment properties.
Risk factors
The trustees continue to assess the risks to which the Board is exposed, in particular, those related to the operations and finances of the Board, and are satisfied that systems are in place to mitigate the Board’s exposure to risks.
Risk Management
The trustees have a risk management strategy, which comprises:
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An annual review of the principal risks and uncertainties that the charity faces, by updating a detailed risk register;
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The establishment of policies, systems and procedures to mitigate those risks as identified in the annual review, by discussing these at regular trustee meetings that are held at least every month; and
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The implementation of procedures designed to minimise and manage any potential impact on the charity, should those risks materialise.
This work has identified that there are a number of significant operational and financial risks that might impact the sustainability of the charity. Some of these risks are identified elsewhere in this report, for example licenseeretention; potential loss of an abattoir; and a change in legislative policy on the practice of shechita.
A key element in the management of financial risk is a regular review of available liquid funds, to settle liabilities and debts as they fall due. This risk is mitigated by way of regular liaison with the bank, active management of trade debtors and creditor balances, and the monitoring of reserve funds to ensure adequate working capital is available to the charity.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Risk Management (continued)
Attention has also been focused on operational and financial risks associated with the potential loss of an abattoir. Regular communications with abattoirs currently in use and establishing relationships with potential new abattoirs in conducting trial shechitos there reduces this risk.
Plans and challenges for 2021/2022
The Strategic Review of 2018 noted the re-adoption by the trustees of a strategy which identified three broad objectives for the Board:-
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(a) To secure the supply of Kosher meat and poultry;
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(b) At the lowest possible cost;
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(c) At a high standard of Kashrut (dietary laws).
Following consideration by the Board and consultation with the trade, this strategy has guided the Board’s work. However, each of the principles can sometimes work as opposing forces to one another. Indeed, the Strategy Committee identified the fact that the Board is the only organisation in the world that supplies shechita services alone, without linkage to the provision of other kashrut operations, and that any ‘stand-alone’ shechita operation cannot, of itself, produce surplus funds from its operations alone.
As part of the strategy, the trustees seek to involve all Board members in its work. This has involved the continued liaison with sub-committees, known as the Finance Committee, the Licensing Committee and the Consumer Affairs Committee.
It is anticipated that 2022 will not only be year of challenging trade conditions in light of the COVID pandemic, but also a period when the threat of political, legal and media attacks on shechita, both in the UK and across Europe, threaten every facet of the Board’s operations and the long-term survival of shechita within the UK.
The UK's departure from the European Union has created further cause for concern on the basis that some of the Board’s licensees both import from and export to EU countries. Teething problems with exporting product have been noted since January 2021 with exports having reduced accordingly.
Structure, governance and management
Constitution
On advice from the Board’s specialist charity solicitors, steps were taken in February 2017 to convert the legal status of the Board from an unincorporated charity to a charitable company limited by guarantee. A members’ consultation committee (with two delegates from each parent body) was consulted on draft articles and the charity incorporated formally at Companies House on 22nd February 2017 and registered with the Charity Commission on 2nd March 2017 following approval of the articles by the members.
On 1 July 2019 the assets and liabilities of the unincorporated charity, then known as London Board for Shechita (charity no. 233467), were transferred to The London Board for Shechita charitable company registered with Companies House (registered no. 10633799) and with the Charity Commission for England and Wales (registered charity no. 1171869).
The London Board for Shechita is a charitable company limited by guarantee, governed by its Memorandum and Articles of Association dated 22 February 2017 as amended 16 April 2019.
On 24th April 2020 the Federation of Synagogues formally ceased its involvement as a Parent Body of the Board; all 3 Parent Bodies have reached agreement as to the terms of that exit. As a result of that, the Board is now made up of 15 members who are nominated by the remaining two parent bodies – the Spanish & Portuguese Jews’ Congregation and the United Synagogue.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Structure, governance and management (continued)
Constitution (continued)
The Board’s members serve for a three-year term. As a result of the Federation’s departure from the Board, its nominated members ceased to be members. Three of those were co-opted onto the Board in accordance with a resolution passed by the Board’s members on 30th June 2020 adding a new Article 18 to the Board’s Articles giving that power to the Trustees. The co-opted members however, in accordance with the newly amended and adopted Article 10 do not have the right to vote on the matters set out in Article 10.
Isaac Levy took over as President of the Board in August 2021. Benjamin Mire remained a Trustee, taking a Vice-President role. Russell Kett remained as Vice-President and Brian Markeson as Hon Treasurer.
Public Benefit Statement
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The sections of this report above, entitled, ‘Objectives and activities', 'Structure, governance and management', and ‘Achievements and performance’ sets out the objectives of The London Board for Shechita, and reports on the activities and successes in the accounting period to the 30th June 2021, as well as explaining the plans for the remainder of 2021 and into 2022.
The Board has a simple purpose, to be responsible for the administration of the affairs of shechita for the London Jewish community, and such other communities as may wish to associate themselves with the Board.
The Board itself does not deal in meat and poultry, but seeks to offer reliable shechita services at high standards of kashrut, and as financially and efficiently as possible, to the consumers of Kosher meat and poultry.
It seeks to reinvest any surpluses and other income, in keeping its fees as low as possible and improving its services.
The support of the Board’s licensees, staff and parent bodies is vital in enabling the Board to deliver its objectives, as is their appreciation that public benefit must override their individual interests.
The Trustees have considered this matter, and concluded:
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i. The aims of the Board continue to be charitable;
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ii. That the aims and the work carried out give identifiable benefits to the charitable sector, and both indirectly and directly to individuals in need;
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iii. That the benefits are for the public, are not unreasonably restricted in any way, and certainly not by ability to pay;
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iv. That there is no detriment or harm arising from the aims or activities.
Members of the Board
The role of the members is to promote the objective of the Board, and in so doing advise the trustees about the work of the Board and its policies, support the trustees in furthering the objective and assist the trustees with the monitoring and development of the Board, the members and the trustees.
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
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THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Auditors
The auditor, Blick Rothenberg Audit LLP, has indicated their willingness to continue in office. The Finance Committee still intends to undertake a process, periodically, to review the auditors.
Trustees
The trustees are responsible to the members for their general control and management of the administration of the Board, and to develop and implement its policies.
The positions of President and Vice President rotate triennially as nominated by the parent bodies.
These three members, together with an Honorary Treasurer, elected by the Board at the outset of the triennial, are the trustees.
Each parent body shall each select (from among the members it has elected) for appointment by rotation, a President and two Vice Presidents, provided always that such selections are subject to the approval of the members by resolution. If a trustee or member is newly appointed and has not served previously, then the Chief Executive, with other experienced trustees, guides the new appointee through an induction process, in which a full explanation and training is given in the Board’s operations, activities and their new constitutional and statutory responsibilities.
The trustees meet at least monthly, to discuss the management accounts and ensure that the affairs of the Board are properly conducted.
The day-to-day running of the Board is through the Chief Executive, who is the secretary to the Board.
The following served as trustees, and also as directors for the purposes of company law, during the period and up to the date of signature of the financial statements:
Isaac Levy Benjamin Mire Russell Kett Brian Markeson
Approved by order of the members of the board of Trustees and signed on their behalf by:
Isaac Levy Trustee
Date: 08 March 2022
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THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2021
The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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.
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THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA
FOR THE YEAR ENDED 30 JUNE 2021
Opinion
We have audited the financial statements of The London Board For Shechita (the 'charity') for the year ended 30 June 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 30 June 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
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THE LONDON BOARD FOR SHECHITA
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
(A company limited by guarantee)
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the charities sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Page 13
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested a sample of journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Russell Tenzer FCA (senior statutory auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor
16 Great Queen Street Covent Garden London WC2B 5AH
Date: 08.03.2022
Page 14
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2021
| Note Income from: Charitable activities 3 Investments 4 Total income Expenditure on: Raising funds 5 Charitable activities: 6 . Provision and administration of Shechita Total expenditure Net expenditure before net gains on investments Net gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 2,047,784 326,498 2,374,282 88,233 2,657,400 2,745,633 (371,351) 83,298 (288,053) 7,177,987 (288,053) 6,889,934 |
Total funds 2021 £ 2,047,784 326,498 2,374,282 88,233 2,657,400 2,745,633 (371,351) 83,298 (288,053) 7,177,987 (288,053) 6,889,934 |
Total funds 2020 £ 1,930,865 358,355 2,289,220 194,857 2,548,606 2,743,463 (454,243) 778,217 323,974 6,854,013 323,974 7,177,987 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 19 to 33 form part of these financial statements.
Page 15
REGISTERED NUMBER: 10633799
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
BALANCE SHEET FOR THE YEAR ENDED 30 JUNE 2021
| Note Fixed assets Investment property 14 Current assets Debtors 15 Investments 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 19 Unrestricted funds Designated funds 19 General funds 19 Total unrestricted funds 19 Total funds |
358,683 654,600 475,239 1,488,522 (138,588) 5,540,000 1,349,934 |
2021 £ 5,540,000 5,540,000 1,349,934 6,889,934 6,889,934 - 6,889,934 6,889,934 |
282,052 563,519 991,971 1,837,542 (199,555) 5,540,000 1,637,987 |
2020 £ 5,540,000 |
|---|---|---|---|---|
| 5,540,000 1,637,987 |
||||
| 7,177,987 | ||||
| 7,177,987 | ||||
| - 7,177,987 |
||||
| 7,177,987 |
Page 16
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Isaac Levy (Trustee)
Brian Markeson (Trustee)
Date: 08 March 2022
The notes on pages 19 to 33 form part of these financial statements.
Page 17
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
| Note Cash flows from operating activities Net cash used in operating activities 21 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from sale of investments Withdrawal of cash from investment fund Net cash provided by investing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 22 The notes on pages 19 to 33 form part of these financial statements |
2021 £ (835,447) 318,715 - - 318,715 - (516,732) 991,971 475,239 |
2020 £ (817,930) 344,992 990,464 250,060 1,585,516 - 767,586 224,385 991,971 |
|---|---|---|
Page 18
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
1. General information
The London Board for Shechita is a private company limited by guarantee, incorporated in England and Wales. The registered office is Elscot House, Arcadia Avenue, London, United Kingdom, N3 2JU. The charity is registered with the Charity Commission for England and Wales (charity no. 1171869).
In the event of the charity being wound up, the member's liability in respect of the guarantee is limited to £1 per member of the charity.
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 £.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd Edition, effective January 2019) ("Charities SORP") and the Companies Act 2006.
The London Board For Shechita meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The trustees have considered whether the charity has been affected by the economic impact and restrictions that have ensued following the Coronavirus pandemic that has continued throughout 2021. Having considered post year end results, cash reserves and after making enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.3 Income
Shechita and Shomer fees from Licensees are recognised when receivable. Fees are recognised net of discounts and VAT.
Rental income from the investment properties held is recognised on an accruals basis in accordance with the rental agreement.
Investment income is recognised on an accruals basis as and when notified by the fund manager.
Page 19
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
2. Accounting policies (continued)
2.4 Expenditure
Resources expended are recognised in the period to which they relate. Resources expended include attributable VAT which cannot be recovered where incurred by the charity.
Resources expended are allocated to the particular activity where the cost relates directly to that activity.
Supports costs represent costs that cannot be directly attributed to activities. These costs have been allocated to the single charitable activity, provision and administration of shechita.
Governance costs include the costs incurred in ensuring the charitable company complies with constitutional and statutory requirements. These have been allocated to charitable activities on the same basis as supports costs.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
2.5 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities. The gain or loss on the sale of investment properties, which represents proceeds less the carrying value, are recognised in the statement of financial activities.
2.6 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.7 Tangible fixed assets and depreciation
Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
Leasehold improvements - over life of lease - Fixtures and fittings 20% straight line
Page 20
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
2. Accounting policies (continued)
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.10 Financial instruments
The charity has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the charity becomes party to the contractual provisions of the instrument.
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
The charity’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors are classified as debt, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Page 21
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
2. Accounting policies (continued)
Financial instruments (continued)
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the statement of financial activities.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
2.11 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the scheme in respect of the year.
2.12 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.
Page 22
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
2. Accounting policies (continued)
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for specific purposes.
Investment income, gains and losses are allocated to unrestricted general funds. Revaluations on investment property are allocated to the designated fund.
3. Income from charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Shechita and shomer fees | 2,047,784 | 2,047,784 | 1,930,865 |
4. Investment income
| Unrestricted funds 2021 £ Rental income 314,261 Income from listed investments 12,156 Interest receivable 81 326,498 |
Total funds 2021 £ 314,261 12,156 81 326,498 |
Total funds 2020 £ 338,942 18,795 618 358,355 |
|---|---|---|
Page 23
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
5. Raising funds
| Unrestricted funds 2021 £ Investment management costs 4,373 Expenses on investment properties 83,860 Bad debt expense - 88,233 |
Total funds 2021 £ 4,373 83,860 - 88,233 |
Total funds 2020 £ 5,492 135,851 53,514 194,857 |
|---|---|---|
The bad debt expense relates to the write off and provision of tenants' arrears.
6. Analysis of expenditure on charitable activities Summary by fund type
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Shechita and shomer services | 2,657,400 | 2,657,400 | 2,548,606 |
7. Analysis of expenditure by activities
| Shechita and shomer fees Total 2020 |
Activities undertaken directly 2021 £ 2,617,150 2,617,150 2,496,273 |
Grant funding of activities 2021 £ 40,250 40,250 52,333 |
Total funds 2021 £ 2,657,400 2,657,400 2,548,606 |
Total funds 2020 £ 2,548,606 2,548,606 |
|---|---|---|---|---|
Page 24
THE LONDON BOARD FOR SHECHITA
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(A company limited by guarantee)
7. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Staff costs Materials Travelling Insurance Professional fees Rents and rates Other costs Governance costs |
Shechita and shomer fees 2021 £ 2,340,244 35,691 54,586 23,000 92,150 30,347 28,192 12,940 2,617,150 |
Total funds 2021 £ 2,340,244 35,691 54,586 23,000 92,150 30,347 28,192 12,940 2,617,150 |
Total funds 2020 £ 2,168,981 35,820 53,631 23,118 139,970 34,102 29,887 10,764 2,496,273 |
|---|---|---|---|
Governance costs includes audit fees of £11,000 (2020: 9,000) excluding VAT.
8. Analysis of grants
| Grants payable to institutions Total 2020 |
Grants to Institutions 2021 £ 40,250 52,333 |
Total funds 2021 £ 40,250 52,333 |
Total funds 2020 £ 52,333 |
|---|---|---|---|
The charity has made the following material grants to institutions during the year:
| Name of institution National Council of Shechita Boards of Great Britain Other grants to institutions of less than £4,000 each |
2021 £ 36,000 4,250 40,250 |
2020 £ 52,333 - |
|---|---|---|
| 52,333 |
Page 25
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
9. Auditor's remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the charity's auditor for the audit of the charity's annual | ||
| accounts | 11,000 | 9,000 |
| Fees payable to the charity's auditor in respect of: | ||
| All non-audit services not included above | 863 | 433 |
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2021 £ 2,117,631 183,287 39,326 2,340,244 |
2020 £ 1,968,104 158,546 42,331 |
|---|---|---|
| 2,168,981 |
Included within the wages and salaries are redundancy payments of £157,455 (2020: £36,809) to staff members and ex-gratia payments of £nil (2020: £12,600) made to the families of two employees who passed away last year.
The average number of persons employed by the charity during the year was as follows:
| Management and administration Shechita and associated staff |
2021 No. 4 26 30 |
2020 No. 4 31 |
|---|---|---|
| 35 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| In the band £60,001 - £70,000 | 5 | 4 |
| In the band £80,001 - £90,000 | 2 | - |
| In the band £90,001 - £100,000 | 1 | 1 |
| In the band £120,001 - £130,000 | - | 1 |
| In the band £220,001 - £230,000 | 1 | - |
Remuneration and benefits received by key management personnel during the year amounted to £93,752 (2020: £83,055)
Page 26
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
11. Trustees' remuneration and expenses
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year ended 30 June 2021 (2020: £nil).
No trustees were reimbursed for expenses during the year ended 30 June 2021 (2020: £nil).
12. Net gains/(losses) on investments
| Revaluation of investments Revaluation of investment property Loss on sale of investment property |
Unrestricted funds 2021 £ 83,298 - - 83,298 |
Total funds 2021 £ 83,298 - - 83,298 |
Total funds 2020 £ (42,247) 850,000 (29,536) 778,217 |
|---|---|---|---|
The revaluation of investment property and the loss on sale of investment property has been allocated to designated funds.
13. Tangible fixed assets
| Leasehold improvements £ Cost At 1 July 2020 53,132 At 30 June 2021 53,132 Depreciation At 1 July 2020 53,132 At 30 June 2021 53,132 Net book value At 30 June 2021 - At 30 June 2020 - |
Fixtures and fittings £ 16,408 16,408 16,408 16,408 - - |
Total £ 69,540 69,540 |
|---|---|---|
| 69,540 69,540 |
||
| - | ||
| - |
Page 27
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
14. Investment property
| Valuation At 1 July 2020 At 30 June 2021 |
Freehold investment property £ 5,540,000 |
|---|---|
| 5,540,000 |
The freehold investment properties were valued at £5,540,000 on an open market existing use basis by the trustees at 30 June 2021. A valuation by an independent valuer was not obtained this year.
15. Debtors
| Due within one year Trade debtors Other debtors Prepayments Current asset investments Listed investments |
2021 £ 256,223 81,691 20,769 358,683 2021 £ 654,600 |
2020 £ 190,020 72,866 19,166 |
|---|---|---|
| 282,052 | ||
| 2020 £ 563,519 |
16. Current asset investments
Page 28
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
17. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Accruals and deferred income Deferred income Deferred income relates to rent received in advance. 18. Financial instruments Financial assets Financial assets measured at fair value through income and expenditure |
2021 £ 31,126 53,106 54,356 138,588 2021 £ 40,323 2021 £ 1,129,839 |
2020 £ 27,220 67,978 104,357 |
|---|---|---|
| 199,555 | ||
| 2020 £ 63,203 |
||
| 2020 £ 1,555,490 |
Financial assets measured at fair value through income and expenditure comprise cash at bank and current asset investments.
Page 29
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
19. Statement of funds
| Statement of funds - current year Balance at 1 July 2020 £ Unrestricted funds Designated funds Designated Funds 5,540,000 General funds General Funds 1,637,987 Total Unrestricted funds 7,177,987 Statement of funds - prior year Balance at 1 July 2019 £ Income £ Unrestricted funds Designated funds Designated Funds 5,710,000 - General funds General Funds 1,144,013 2,289,220 Total Unrestricted funds 6,854,013 2,289,220 |
Statement of funds - current year Balance at 1 July 2020 £ Unrestricted funds Designated funds Designated Funds 5,540,000 General funds General Funds 1,637,987 Total Unrestricted funds 7,177,987 Statement of funds - prior year Balance at 1 July 2019 £ Income £ Unrestricted funds Designated funds Designated Funds 5,710,000 - General funds General Funds 1,144,013 2,289,220 Total Unrestricted funds 6,854,013 2,289,220 |
Income £ - 2,374,282 2,374,282 Expenditure £ - (2,743,463) (2,743,463) |
Expenditure £ - (2,745,633) (2,745,633) Transfers in/out £ (990,464) 990,464 - |
Gains/ (Losses) £ - 83,298 83,298 Gains/ (Losses) £ 820,464 (42,247) 778,217 |
Balance at 30 June 2021 £ 5,540,000 |
|---|---|---|---|---|---|
| 1,349,934 | |||||
| 6,889,934 | |||||
| Balance at 30 June 2020 £ 5,540,000 |
|||||
| Unrestricted funds Designated funds Designated Funds General funds General Funds Total Unrestricted funds |
Balance at 1 July 2019 £ 5,710,000 1,144,013 6,854,013 |
||||
| 1,637,987 | |||||
| 7,177,987 |
Page 30
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
20. Analysis of net assets between funds Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Investment property 5,540,000 Current assets 1,488,522 Creditors due within one year (138,588) Total 6,889,934 Analysis of net assets between funds - prior year Unrestricted funds 2020 £ Investment property 5,540,000 Current assets 1,837,542 Creditors due within one year (199,555) Total 7,177,987 |
Total funds 2021 £ 5,540,000 1,488,522 (138,588) 6,889,934 Total funds 2020 £ 5,540,000 1,837,542 (199,555) 7,177,987 |
|---|---|
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Investment income recognised in statement of financial activities Fair value gains and losses on investment properties Fair value gains and losses on investments Loss on the sale of investment property Increase in debtors Increase/(decrease) in creditors (Decrease) in deferred income Net cash used in operating activities |
2021 £ (288,053) (326,498) - (83,298) - (76,631) (38,087) (22,880) (835,447) |
2020 £ 323,974 (358,355) (850,000) 42,247 29,536 (33,511) 38,731 (10,552) (817,930) |
|---|---|---|
Page 31
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
22. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2021 £ 475,239 475,239 |
2020 £ 991,971 |
|---|---|---|
| 991,971 |
23. Analysis of changes in net debt
| Cash at bank and in hand Liquid investments |
At 1 July 2020 £ 991,971 563,519 1,555,490 |
Cash flows £ (516,732) 7,783 (508,949) |
Other non- cash changes £ - 83,298 83,298 |
At 30 June 2021 £ 475,239 654,600 1,129,839 |
|---|---|---|---|---|
Page 32
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
24. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the charity to the funds and amounted to £39,326 (2020: £42,331). No contributions were payable to the funds at the balance sheet date (2020: £nil).
25. Operating lease commitments
At 30 June 2021 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2021 £ 28,165 92,000 51,750 171,915 |
2020 £ 28,165 97,165 74,750 |
|---|---|---|
| 200,080 |
26. Related party transactions
During the year, the charity paid a grant of £36,000 (2020: 52,333) to the National Council of Shechita Boards of Great Britain, a charitable organisation with two common trustees.
Remuneration and benefits received by key management personnel during the period amounted to £93,752 (2020: £83,055)
Page 33