**Charity number: 207404**
## **THE INITIATION SOCIETY**
**Trustees' annual report and accounts**
**31 December 2020**
## **THE INITIATION SOCIETY**
## **Contents**
||**Page**|
|---|---|
|Reference and administration details|**2**|
|Trustees' annual report|**3**|
|Independent examiner's report|**4**|
|Statement of financial activities|**5**|
|Statement of financial position|**6**|
|Notes to the financial statements|**7 - 11**|
**Page 1**
## **THE INITIATION SOCIETY**
## **Reference and administration details**
|**Honorary officers**|Dr Sholaum Gerson Springer|President|
|---|---|---|
||Mr Jonathan Robert Weinstein|Treasurer|
|**Trustees**|Dr Sholaum Gerson Springer|(Appointed 26 February 2020)|
||Mr Jonathan Robert Weinstein|(Appointed 26 February 2020)|
||Dr Joseph Spitzer|(Appointed 26 February 2020)|
||Mr Alexander Heilpern|(Resigned 26 February 2020)|
||Rabbi Joseph Schischa|(Resigned 26 February 2020)|
|**Secretary**|Mr Maurice Levenson||
|**Charity number**|207404||
|**Principal address**|22 Wentworth Road||
||London||
||NW11 0RP||
|**Accountants**|Frank Murray Weinberg FCA, FCCA, CTA||
||Somers Baker Prince Kurz LLP||
||Chancellors House||
||Brampton Lane||
||Hendon||
||London||
||NW4 4AB||
|**Bankers**|Santander UK plc||
||Bridle Road||
||Bootle||
||Merseyside||
||L30 4GB||
**Page 2**
## **THE INITIATION SOCIETY**
## **Trustees' report (continued) Year ended 31 December 2020**
The trustees are pleased to present their annual report and accounts of the Society for the year ended 31 December 2020.
## **Reference and Administration Details**
The reference and administration details of the Society is set out on page 2.
## **Structure, Governance and Management**
THE INITIATION SOCIETY is a UK registered charity and is governed by the Laws of the Society founded in 1745 and amended most recently in 1996. It is managed by the Honorary Officers and a Board of Trustees. A General Committee, which includes the Honorary Officers and the Trustees, is responsible for establishing the policy of the Society. An Executive Committee, which consists of the President, the Treasurer, the Secretary and the Medical Officer, is responsible for the general day to day management of the Society.
The General Committee meets twice annually. The Executive Committee meets whenever the President considers appropriate and, in any case, if two members of the Executive Committee so require. The Secretary attends but does not vote in the Executive Committee and is responsible for the administrative functions of the Society.
## **Objectives and Activities**
The main activity and objective of the Society is to promote advancement of the Jewish religion by facilitating the initiation of male Jewish children into the Covenant of Abraham. The trustees confirm that they gave regard to the Charity Commission guidance on public benefit when preparing this report.
## **Achievements, Performance and Financial Review**
The Society's funds are applied in furtherance of its objectives and the day-to-day running of the Society.
During the year ended 31 December 2020, total incoming resources of the Society amounted to £58,554 (2019: £92,574). The resources expended amounted to £83,153 (2019: £73,494), resulting in net outgoing resources of £24,599 (2019: Net incoming resources of £19,080).
As a result of the impact of Covid-19, the Society's financial performance during the year has been disappointing which is mainly due to the significant shortfall in donations received to cover the day-to-day expenses. However, the Society is currently undergoing a programme of modernisation of its functions, including medical standards, communication, education, legal review of its policies, training and enforcement methods. This modernisation programme is being funded by grants. The Trustees are optimistic that this modernisation programme will prompt relevant parties to provide their renewed support to the Society.
## **Trustees Declaration**
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ascertain that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the Society’s Laws. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees declare that they have approved the trustees' report on 29 October 2021 and signed on their behalf by:
**Dr Sholaum Gerson Springer Mr Jonathan Robert Weinstein Trustee Trustee**
**Page 3**
## **THE INITIATION SOCIETY**
## **Independent Examiner's Report to the Trustees of THE INITIATION SOCIETY**
I report to the trustees on the accounts of THE INITIATION SOCIETY (Charity number 207404) ("the Trust") for the year ended 31 December 2020 which comprise the statement of financial activities, the statement of financial position and the related notes.
## **Responsibilities and basis of report**
As the charity's trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 ("the Act").
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination, other than that disclosed below, which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Material uncertainty related to going concern**
Notwithstanding the going concern paragraph included in the Notes to the financial statements, attention should however be drawn to the increase in deficit of the charity's unrestricted funds at the reporting date. Unless the charity is able to raise additional funds and/or obtain significant contributions towards its day-to-day expenses in the foreseeable future, the charity may become insolvent. This may cast significant doubt about the charity's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the charity was unable to continue as a going concern.
|**Frank M Weinberg FCA, FCCA, CTA**|**Chancellors House**|
|---|---|
|**Somers Baker Prince Kurz LLP**|**Brampton Lane**|
|**Chartered Accountants and Chartered Certified Accountants**|**Hendon**|
||**London**|
|**29 October 2021**|**NW4 4AB**|
**Page 4**
## **THE INITIATION SOCIETY**
## **Statement of financial activities for the year ended 31 December 2020**
|Restricted
Unrestricted
income
funds
funds
**Notes**
£
£
**Incoming resources**
Donations and legacies
**4**
31,029
9,480
Charitable activities
**4**
17,998
-
Investments
**4**
47
-
**Total incoming resources**
49,074
9,480
**Resources expended**
Expenditure on management and
administration of the charity
**5**
59,240
23,913
**Total resources expended**
59,240
23,913
**Net (expenditure)/income**
**being net movement in funds**
)
(10,166
)
(14,433
**Reconciliation of funds:**
Funds brought forward - surplus/(deficit)
)
(511
14,433
**Funds carried forward - (deficit)/surplus**
)
(10,677
-|**Total**
**funds**
**2020**
**£**
40,509
17,998
47
58,554
83,153
83,153
)
(24,599
13,922
)
(10,677|Total
funds
2019
£
72,304
20,246
24
92,574
73,494
73,494
19,080
)
(5,158
13,922|
|---|---|---|
**The notes on pages 7 to 11 form part of these financial statements.**
**Page 5**
## **THE INITIATION SOCIETY**
## **Statement of financial position 31 December 2020**
|**Note**
**Fixed assets**
Tangible assets
**6**
**Current assets**
Debtors
**7**
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
**8**
**Net current (liabilities)/assets**
**Total assets less current liabilities**
**Net (liabilities)/assets**
**Funds of the charity**
Restricted income funds
**9**
Unrestricted funds (deficit)
**9**
**Net (deficit)/surplus**|**2020**
**£**
**£**
238
24,929
11,117
36,046
)
(46,961
)
(10,915
)
(10,677
)
(10,677
-
)
(10,677
)
(10,677|2019
£
£
317
21,790
18,044
39,834
)
(26,229
13,605
13,922
13,922
14,433
)
(511
13,922|
|---|---|---|
Approved by the trustees on 29 October 2021 and signed on their behalf by:
**Dr Sholaum Gerson Springer Trustee**
**Mr Jonathan Robert Weinstein Trustee**
**The notes on pages 7 to 11 form part of these financial statements.**
**Page 6**
## **THE INITIATION SOCIETY**
## **Notes to the financial statements Year ended 31 December 2020**
## **1. General information**
The charity is an unincorporated charity registered with the Charity Commission in England and Wales. The registered address of the charity is 22 Wentworth Road, London, NW11 0RP. The Society is a public benefit entity.
## **2. Statement of compliance**
These accounts have been prepared in accordance with the Statement of Recommended Practice: 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) issued on 16 July 2014, with the Financial Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.
## **Going concern**
Despite the impact of Covid-19, the implementation of the Society’s modernisation programme as described in the Trustees' report should ensure that it remains a going concern for the foreseeable future. Accordingly, these accounts have been prepared on the going concern basis.
## **Recognition of income**
These are included in the statement of financial activities when:
- the charity becomes entitled to the resources;
- it is more likely than not that the charity will receive the resources; and
- the monetary value can be measured with sufficient reliability.
## **Offsetting**
There has been no offsetting of income and expenses, or assets and liabilities, unless required by SORP (FRS 102) or FRS 102.
## **Grants and donations**
Grants and donations are only included in the statement of financial activities when the general income recognition criteria are met (paragraphs 5.10 to 5.12 SORP (FRS 102)).
## **Income from registrations and subscriptions**
Registration and subscription fees which give members a right to services or other benefits are recognised as income earned from charitable activities. Amounts received in the nature of a gift are recognised as donations and legacies.
## **Income from interest**
This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.
**Page 7**
## **THE INITIATION SOCIETY**
## **Notes to the financial statements (continued) Year ended 31 December 2020**
## **Taxation**
The Society is exempt from taxation.
## **Tangible assets**
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures, fittings and equipment - 25% reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
## **Impairment**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
## **Basic financial instruments**
The charity accounts for basic financial instruments on initial recognition as per paragraph 10.7 SORP (FRS 102). Subsequent measurement is as per paragraphs 11.17 to 11.19 SORP (FRS 102).
## **Debtor recognition**
Debtors are measured on initial recognition at settlement amount or amount advanced by the charity. Subsequently they are measured at the cash or other consideration to be received.
## **Liability and expenditure recognition**
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
**Page 8**
## **THE INITIATION SOCIETY**
## **Notes to the financial statements (continued) Year ended 31 December 2020**
## **4. Incoming resources of the charity**
|Restricted
Unrestricted
income
funds
funds
£
£
**Donations and legacies**
Donations
10,289
-
Gift Aid
220
-
Grants
20,520
9,480
31,029
9,480
**Charitable activities**
Registration and tuition fees of Mohelim
17,998
-
**Investments**
Bank interest
47
-
49,074
9,480|**Total**
**2020**
**£**
10,289
220
30,000
40,509
17,998
47
58,554|Total
2019
£
34,229
75
38,000|
|---|---|---|
|||72,304
20,246
24|
|||92,574|
## **5. Expenditure on management and administration of the charity**
|Restricted
Unrestricted
income
funds
funds
£
£
Medical officer's expense and allowance
250
-
Secretarial fees
15,000
-
Administrative support
1,623
6,143
Insurance of trainees and Mohelim
33,700
-
Printing, postage and stationery
247
-
Website costs
3,424
9,480
PR, seminar and conference
162
-
Legal and professional
2,680
8,290
Accountancy and independent examination
2,040
-
Bank charges
-
-
General expenses
35
-
Depreciation of fixtures, fittings and equipment
79
-
59,240
23,913|**Total**
**2020**
**£**
250
15,000
7,766
33,700
247
12,904
162
10,970
2,040
-
35
79
83,153|Total
2019
£
250
15,000
4,330
31,191
228
6,732
1,026
12,862
1,680
50
58
87
73,494|
|---|---|---|
**Page 9**
## **THE INITIATION SOCIETY**
## **Notes to the financial statements (continued) Year ended 31 December 2020**
## **6. Tangible assets**
|**Tangible assets**|||
|---|---|---|
||**Fixtures,**||
||**fittings and**||
||**equipment**||
|||**£**|
|**Cost**|||
|**At 1 January 2020 and 31 December 2020**||578|
|**Depreciation**|||
|At 1 January 2020||261|
|Charge for the year||79|
|**At 31 December 2020**||340|
|**Carrying amount**|||
|**At 31 December 2020**||238|
|At 31 December 2019||317|
## **7. Debtors**
## **8.**
|Prepayments
**Creditors: amounts falling due within one year**
Loans
Accruals
Other creditors|**2020**
**£**
24,929
**2020**
**£**
41,000
3,820
2,141
46,961|2019
£
21,790
2019
£
24,500
1,680
49
26,229|
|---|---|---|
Loans are unsecured, interest-free and repayable on demand.
## **9. Funds of the charity**
Restricted income funds represent grants and donations received for specific projects less amounts expended during the year on these projects. The charity's restricted funds are for the ongoing modernisation programme as described in the Trustees' report. At the reporting date, restricted funds amounting to £nil (2019: £14,433) are represented entirely by cash at bank.
Unrestricted funds are funds which the Trustees are able to spend or apply at their discretion to further any of the charity's purposes.
**Page 10**
## **THE INITIATION SOCIETY**
## **Notes to the financial statements (continued) Year ended 31 December 2020**
## **10. Related party transactions**
During the year, a further loan of £6,500 was extended to the Society by the Philip & Lorrain Weinstein Charitable Trust, a charity whose Trustee, Mr J R Weinstein, was also a Trustee of the Society. The loan is interest-free and unsecured. The amount outstanding at the reporting date was £9,000 (2019: £2,500).
At the reporting date, the amount owed by the Society to one of its Honorary Officers, Dr S G Springer, in respect of an unsecured interest-free loan was £10,000 (2019 - £10,000).
At the reporting date, the amount owed by the Society to one of its Trustees, Dr J Spitzer, in respect of an unsecured interest-free loan was £1,000 (2019 - £1,000).
There were no other related party transactions during the current or prior year, including remuneration or reimbursement of out-of-pocket expenses made to the Trustees or Honorary Officers, or to third parties for expenses incurred by the Trustees or Honorary Officers.
**Page 11**