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2020-10-31-accounts

Charity number: 212517

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

CONTENTS
Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 16
Independent auditor's report on the financial statements 17 - 19
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 - 48

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2020

Trustees Sabah Zubaida (resigned 5 August 2021)
David Ereira
Dr Alan Mendoza (resigned 26 March 2021)
Rony Sabah (resigned 4 April 2020)
Richard Sassoon
Kristine Musikant (resigned 26 March 2021)
Anthony Tricot (resigned 14 December 2020)
Mark Salem (resigned 26 March 2021)
Caroline Jackson-Levy
Efrat Sopher (appointed 26 March 2021)
Daniel Kaye (appointed 26 March 2021)
Elliot Arwas (appointed 26 March 2021)
Stuart Morganstein (appointed 4 April 2020)
Charity registered
number
212517
Principal operating
office
119-121 Brent Street
London
NW4 2DX
Custodian Trustee
London Sephardi Trust (company number: 0051526)
Charity Trustee
S&P Sephardi Trustee Ltd (company number: 11156384)
Independent auditor
Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Bankers
Natwest Bank
1 Princes Street
London
EC2R 8PA
Senior staff
Senior Rabbi, Rabbi Joseph Dweck
Chief Executive, David Arden (resigned 31 August 2021)

Page 1

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 November 2019 to 31 October 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the 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)

Since the charity qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

Objectives and activities

a. Policies and objectives

The Objects of the Charities are for the public benefit to support such work of the Congregation as shall be exclusively charitable under the laws of England and Wales from time to time as the Trustees shall think fit. Without prejudice to the generality of the foregoing, such exclusively charitable work includes:

  1. the advancement of the orthodox Jewish religion as practised by the Spanish & Portuguese Jewish community and other Sephardi communities;

  2. the advancement of education of the orthodox Jewish religion and of the history, culture and traditions of the Spanish & Portuguese Jewish community and other Sephardi communities; and

  3. to advance education on the history of the Spanish & Portuguese Jewish community, in particular but not exclusively by the curation, preservation and cataloguing of historic documents, records, artefacts and synagogue buildings for public display and for the purposes of research.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Objectives and activities (continued)

b. Strategies for achieving objectives

c. Activities undertaken to achieve objectives

The main activities of the charity are the operation of synagogues, Jewish educational and cultural programming, the operation of a Beth Din, Sunday school and burial services.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Objectives and activities (continued)

d. Main activities undertaken to further the charity's purposes for the public benefit

Bevis Marks was the first synagogue built in London following the historic re-settlement of the Jews in the late 1600s. It is Grade I listed, the oldest synagogue still in use in the UK and has retained its distinctive, centuries old patterns of worship. As the Cathedral Synagogue of the Community, it is our spiritual home and historic heartland, linking directly back to the Community’s earliest days in this country and our arrival here as a place of sanctuary. Its important architecture, internationally significant collection, rich heritage of song and ritual and location at the heart of London’s historic Jewish quarter, make it the ideal focus for the telling of the Sephardi story.

A key driver to meet this objective is the development of Bevis Marks through the Heritage Lottery Fund (“HLF”) Project. With the help of the Heritage Lottery Fund, A Vision for the Future will place this story at the heart of a new visitor and educational cultural offer and create the spaces, displays and interpretation needed to deliver it. As a result, visitor numbers are expected to more than double, new audiences will be engaged, the local community will become involved, new partnerships will develop and volunteering expand. All of this will contribute to a sustainable future for Bevis Marks. This will, in addition, place Bevis Marks as the centre of knowledge for both the community but also members of the public, school children and other planned visits to gain an in-depth understanding of the community, its culture and heritage.

The charities in connection with the Spanish and Portuguese Jews' Synagogue's benefit the individual members of the Congregation together with the wider Sephardi Community and there is interaction between the statutory sector and the voluntary and community sector in the UK. The activities continue to be charitable and all fall within the areas of education and welfare.

The Board has considered this matter and have given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under the Charities Act 2011and hence concluded:

  1. That the aims of the charities continue to be charitable.

  2. That the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need.

  3. That the benefits are for the public and are not unreasonably restricted in any way and certainly not by ability to pay.

  4. That there is no detriment or harm arising from the aims or activities.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Achievements and performance

a. Review of activities

Success can be measured in a number of ways but the two key KPIs are (1) membership growth and (2) building a sustainable (financially stable) future operating model.

Membership numbers

2020 Membership Data (as of 31st October 2020) – 1042 Adult Members

Change (net decline) in membership numbers from previous year (1084) are due to 25 new members (excluding newlyweds), 26 deaths and 31 resignations.

The overall net decline in numbers (-42) is of concern and is, in part, due to an increase in mortality at the midway point of the year as a direct result of the COVID-19 pandemic. It is also now feeding into an internal review being undertaken by the board of trustees to develop a new long term membership strategy to encourage growth in new, young members.

As we move forward there will no doubt continue to be challenges with no immediate end in sight for the pandemic, we will continue to operate the charity in a way which puts its members at the forefront, ensuring they are fully supported both pastorally and socially.

What has happened in the last reporting year

In November 2019 no-one could have predicted what the next 12 months would bring. At that time the charity had completed a significant restructuring exercise and was looking forward to the next 12 months with a sense of some stability and certainty.

The plan for the next twelve months was to consolidate the charity position by ensuring it projected a balanced budget, new staff had been recruited for both marketing and programming and there was a sense that the charity could move forward with purpose. Continuation of the work to develop both Hebra (burial) and our Kashrut Authority (Kosher food provision) to drive additional revenue seemed to start proving positive with the purchase of a private enclosure as part of a new burial initiative being the first success.

The next few months the organisation continued to operate as usual with the synagogues open for worship, events and celebrations being held in our venues but in early March it was very clear the world was about to dramatically change. Following the news that there was now a global pandemic the organisation as we knew it was forced to completely change its approach in an extremely short period of time.

The end of March coincided with our usual AGM, this year we took the unprecedented step of holding this online for the community. Well attended in comparison to previous years this provided an early indication of the communal desire to engage in new and flexible ways. This period also marked two key points – the first being the need to ensure we put plans in place to support our community immediately prior to, during and after Passover which is traditionally the busiest time in the calendar and the second, the pandemic had also led to an inevitable and tragic rise in deaths in the community so it was imperative we put steps in place to support our cemeteries to enable them to cope with increased demand.

Support to the community and in particular the vulnerable was a big concern and the charity developed a volunteer / trustee / Rabbinic network during this early period to reach out to members to check they were okay and also to see if they needed anything e.g. food deliveries or prescriptions. The feedback received was very positive and for some it was the first time someone had been in contact for several weeks. The office also provided food and wine packages which volunteers took out to members’ homes in time for Passover.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Achievements and performance (continued)

At the same time, and in parallel, the COVID-19 government restrictions also meant all places of worship and our offices closing. Both were initiated with minimum impact on the charity and the office staff were able to set themselves up rapidly at home using existing technology (remote working) that had been proven during our initial office relocation. Within 24-48 hours the entire charity infrastructure was able to continue to operate with minimal to no degradation in service to its members or external parties.

Over the subsequent weeks it became increasingly clear the pandemic would continue for the foreseeable future and we therefore had to plan a different way of working which engaged with the community.

All our programmes and events were moved online and have been online for nearly a year now. The initial uptake was understandably low whilst members of the community who had not previous utilised this technology got used to online platforms. Over the next 6 months the volume of viewers online had steadily grown and remained fairly stable. As synagogues were closed we also moved weekday religious services online and the number of attendees exceeded pre-pandemic levels for service attendance, almost certainly as a direct result of the flexibility and convenience of attending from home.

The end of the summer coincided with planning for our other main busiest period, the New Year and subsequent festival season. Given the previous months the office were able to quickly establish an online support service for the community providing a series of musical presentations prior to the New Year which was deemed a huge success with nearly 1000 viewers taking part, in total, during the series of events. With synagogues being able to partially open the office had to create a new online booking provision to ensure as many members as possible were able to attend synagogue. The vast majority that wanted to attend, did, and given the circumstances it was a fairly successful season culminating in a very positive Kal Nidre appeal which raised more than has been achieved in previous appeals.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Achievements and performance (continued)

In the meantime, in parallel, we have started to establish a more international presence by collaborating with sister charities abroad. One specific charity, the Sephardic Brotherhood based out of Queens, New York, is a 100 year old charity with very similar objectives to the S&P Sephardi Community. With a reach across the entire US and with currently in excess of 2000 members, there is a lot of potential opportunity to work together, share good practice and collaborate/partner in a number of ways. Our Senior Rabbi, Joseph Dweck has already initiated this by delivering some online lectures, we have a lot of common ground so there could be the possibility to share not just education but operational services.

Despite a fairly bleak year for obvious reasons, the tail end of the year culminated in some real positive news around the Bevis Marks heritage project. Not only did the project receive the necessary funding from the national lottery heritage fund in order to commence works but by December contractors had been procured and work had commenced, in anger, on site. The expectation is the next 18 months will see the transformation of the site into a living, breathing exhibition, showcasing the significant and substantial impact that the S&P has made to the Jewish community but also to wider society.

Bevis Marks Synagogue during early project development

Other significant achievements include:

  1. Completion of internal restructuring, leading to a significant reduction in operational costs and moving the charity from a substantial operating deficit to a near break-even position within 18 months

  2. Extending our Hebra (burial) services to include the provision of private burial enclosures for families 3. Continued interest in the new burial scheme including existing S&P members joining the scheme and encouraging members of other synagogues to join (as non-S&P members)

  3. Initiated plans to redevelop the Lauderdale Road synagogue flat

  4. Completed the first phase of an internal strategic review with trustees with recommendations now being taken forward to include a ‘governance refresh’

  5. Held a series of significantly successful online events including (1) ‘Torah and Tunes’ a musical collection recorded for the festival season (2) a series of ‘in conversation’ with various key internal and external stakeholders and (3) Chanuka cross community lighting events

  6. Completed the formal title registration of Bevis Marks Synagogue with HM Land Registry

  7. A new ‘Habura’ online learning programme has been implemented and is being led by our Senior Rabbi, Joseph Dweck. This has regular (weekly) online attendance of students and is expected to be formalised in the coming financial year

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Achievements and performance (continued)

b. Investment policy and performance

The Investment assets of the charity are held to derive an income for the charity to enable the charity to enhance its work and to ensure that the assets are held for the future benefit of the charity and can grow through capital appreciation with a low to medium risk tolerance. A target for capital appreciation over the long term would be mid-single digits percentage increase.

There are currently £3,999,110 held as investments (2018/19 £4,261,103) these decreased by £261,993 through the net withdrawal of capital of £54,747 and an downward revaluation of £207,246.

Table of percentage income yields on investment

Target % Actual % Investment in Common Investment Fund* Low to mid-single digit 2.5% Investment property Low to mid-single digit 4.0% * Based on the valuation at year end

Please see Note 14 of the financial statements.

The trustees are permitted to invest in stocks, funds, shares, REITs, and physical properties anywhere in the world that the trustees sees fit in the furtherance of the Funds objectives.

Financial review

a. Review

Total reserves at year end amounted to £10,639,649 (2019: £10,986,385). The year ended 31 October 2020 showed a decrease in unrestricted reserves of £295,872 to £7,214,879 (2019: £7,510,751). Restricted Funds decreased by £47,127 to £558,433 (2019: £605,560). The Endowment fund has decreased by £3,737 to £2,866,337 (2019: £2,870,074), there has been no change to the community's heritage assets during the year.

The total income was £2,429,995 (2019: £2,755,906) a decrease of £325,911.

The total expenditure was £2,525,360 (2019: £2,903,722) a decrease of £378,362.

b. Going concern

After making appropriate enquiries and in light of the COVID-19 pandemic, the roll out of the government vaccine programme and the easing of restrictions in England, the trustees have a reasonable expectation from the forecasts that have been prepared that the charity has adequate resources to continue in operational existence for the foreseeable future, including drawing down on investments should the need arise. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

c. Reserves policy

It is the policy of the Charity to maintain the free reserves, that is unrestricted (and undesignated) funds less tangible fixed assets, of the Charity at a level which equates to between three and six months unrestricted (and undesignated) expenditure. The reserves policy has been reviewed in light of the current COVID-19 pandemic and is being kept at the current level of between three and six months, it is also being kept under review given the risks and uncertainties resulting from the pandemic. Currently this splits as below:-

General unrestricted funds
Designated funds
Total
Less tangible assets
Add back mortgage
Funds available		 2020
£
5,521,029
1,693,850
7,214,879
(7,015,611)
1,593,954
1,793,222		 2019
£
5,718,246
1,792,505
7,510,751
(7,152,096)
1,647,586
2,006,241

This would provide sufficient funds to cover management, administration and running costs for the Charity.

The free reserves of the Charity are currently above this level but are largely tied up within longer term investments and heritage assets which are not currently realisable. The charity is implementing a plan which includes a cost cutting programme and increasing fundraising that will have cash surpluses in future years so that there will be sufficient free cash for three months expenditure without relying on investments or heritage assets.

d. Principal funding

The charity is principally funded by donations made by members of the community through the annual suggested donation (Finta) and through other fundraising. The charity also received grants for security and for the Bevis Marks Heritage Lottery Fund. It is also partially funded through its charitable activities such as burial fees and investment income.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Structure, governance and management

a. Constitution

The governing document of the Congregation (as defined below) is the Ascamot. This governs in relation to its membership, religious services, and election to offices and how those elected administer the Congregation. Governance is by elected "Elders" known as the "Board of Elders" or the "Trustee Board" (as defined below). Funds, income, chattels and property are held on trust for the Congregation's charitable purposes as the 'General Funds of the Spanish & Portuguese Jews' Synagogue' (the "General Funds") and 'Trust properties held in connection with the Spanish & Portuguese Jews' Synagogue' (the "Property Charity"), which are registered (no. 212517) with the Charity Commission as Charities ICW (as defined below) and to which these accounts relate.

A Charity Commission Scheme dated 29th May 1958 appointed the "members for the time being of the Board of Elders of the Spanish & Portuguese Jews' Synagogue, acting in accordance with their usual procedure" as the managing trustees of the General Funds and the Property Charity. The usual procedure of the Board of Elders is set out in the Ascamot and all references to procedures relating to financial matters refer to the members of the Board of Elders acting in their capacity as managing trustees of the General Funds and the Property Charity.

The principal object of the charity is to provide a welcoming, enriching and educational Sephardi Jewish experience.

In July 2019, as a result of the successful bid for funding from the National Lottery Heritage Fund, a new charitable entity, the Bevis Marks Synagogue Heritage Foundation was established charity number 1184803. This has its own set of trustees, three of whom are currently also trustees of the S&P Sephardi Trustee Ltd. The main objective of the Foundation is to act as the project delivery board to oversee the construction and successful opening of the new exhibition by providing strategic oversight of the project. Once the planned exhibition is open to the public it is expected that the Foundation will oversee its operational running. As the Foundation is a charity in its own right, it will be subject to its own audit and therefore its progress and accounts will be reported separately.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Structure, governance and management (continued)

b. Organisational structure and decision-making policies

Up to July 2016 the Congregation was run by Mahamad which was the Principal Executive Standing Committee of the Board of Trustees, and which was responsible to the Board for the operational management of all affairs of the Congregation. The full Board consisted of both Mahamad and Board of Elders and comprised fifteen members who include the Gabay. However In July 2016, after a series of consultative AGMs, revised Ascamot were adopted by the congregation which provided for a unitary Board (i.e the Board of Elders became the Board of Trustees and are the single governing board of the congregation).The Ascamot now provides that the Honorary officers (Parnas President, Vice-chair's, Gabay) may be collectively referred to as the Board of Trustees.

There has also been established an Advisory Council with no executive powers, chaired by an Ambassadorial Chair which meets at least annually, and will provide a pool of expertise from which the Board can draw for projects or committees. The chair is appointed by the Board.

The Board also has a series of committees including but not limited to local synagogue committees, finance, fund-raising and HR.

Our Board delegates the day-to-day operations of the charity to the Chief Executive who within his delegated authority has assigned operational matters to his Senior Management Team.

The charity continues to be reliant on volunteers and committees working in collaboration with the central office. Members of the community are appointed by the Board onto a series of sub committees. They contribute by overseeing key areas such as finance, property and maintenance of the heritage assets, sitting on local synagogue committees overseeing services and local events as well as those volunteers who sit on the Hebra or cemetery committees and oversee burials for the Sephardi Community.

Governance code

The Trustees have considered the Charity Commission's Governance Code which was updated in March 2021 and will look to carry out an assessment of compliance against the Code’s seven principles in the coming year. Four years ago the S&P charity underwent a full governance review which culminated in reducing the original multi-layered structure down to the existing board of trustees as it is today. Given this is now fully embedded into the organisation the next and final phase will be for the board to consider capability and skill set and how this aligns to the Ascamot and this will be considered during the course of the next reporting year.

c. Policies adopted for the induction and training of Trustees

New members of the Board are furnished with recent minutes of relevant meetings, and a full induction pack as well as an induction session with the Chief Executive. The pack includes matters in connection with legal obligations. They are encouraged to discuss matters with other members of the Board and the Chief Executive.

The Board recognises that the responsibilities of a Trustee are considerable. Training sessions will be arranged as the need arises. Representatives of the Board also attend annual Trustee training provided by LEAD, part of the Jewish Leadership council which has covered governance and other compliance areas.

d. Method of appointment or election of Trustees

Trustees are directly elected, by the members of the Congregation. The Ascamot covers all elections.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Structure, governance and management (continued)

e. Pay policy for senior staff

The arrangements for setting the pay and remuneration of the charity's key management personnel are that the Board of Elders/Trustee Board decides on the appropriate salary after discussion with HR subcommittee and benchmarking within the charitable and Jewish sector. For rabbinical salaries benchmarking outside the UK may also be appropriate.

f. Financial risk management

The Board has established the following areas of potential risk and have drafted a working risk register.

1. Operational

The Board are aware and have identified that membership numbers are key to financial performance and ensuring the future of the organisation and therefore there need a comprehensive strategy to mitigate the risk of loss of members. In the first instance the introduction of the Nursery in Lauderdale Road will, in the medium to long term, encourage new, young families. Equally there is a risk connected to a changing age profile and to mitigate against this leading to long term loss of members, a clear strategy for youth and young families has been implemented which is being run largely by volunteers.

The risk to the operations of the community due to the pandemic is to ensure that the objectives and the activities for achieving those objects can continue without a physical presence. This has been partly achieved by engaging with the community using conferencing software, such as Zoom, and increased usage of social media. Also, with the offices closed, that the ecclesiastical and the support functions could continue to operate by enabling staff to work from home, this has been achieved and a working from home policy has been put in place.

2. Reputational

The Board are acutely aware of the need to maintain the reputation of themselves, the Senior Rabbi, the Beth Din, staff and Kahal to ensure trust is maintained that we act as an orthodox Sephardi Community.

Due to the pandemic there is a risk that the community could be in contravention to new and constantly changing government guidelines, thereby bringing the community into disrepute. The community have been following government guidelines and the trustees and senior management have been keeping informed of the changes to ensure that these guidelines are adhered to.

3. Financial

The Board is constantly reviewing plans for the future sustainability of the community. The Board is aware of the fact the finances are reliant on fundraising and aware that we need to ensure that donors are fully committed and that there is no donor fatigue. New fundraising initiatives are under discussion including a major drive for new funds to celebrate the contribution of the S&P Sephardi Community to British Jewry.

As a result of the pandemic there is an increased risk that due to a loss of income from donors, the finances of the community could deteriorate. At the date of signing the finances have not been materially affected by the pandemic and the financial position is reviewed by trustees and senior management on a regular basis. If donations were to drop by an amount over 20% then the community would need to look to ways to decrease its costs and draw on investments which could have an impact on it delivering on all its objectives both now and in the future.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Plans for future periods

Future developments

The future development of the charity must focus on three key areas:

  1. Sustainability

  2. Growth in Membership

  3. Professionalisation

The organisation must focus on the sustainability and have long term plans for an aging estate. As well as antiquated infrastructure the need to maintain a Grade I and Grade II listed building in a charity of this size is a challenge. Proper financial budgeting and planning for building maintenance linked to focused fundraising will ensure plans are in place to keep the infrastructure in a workable and usable condition. The National Heritage Lottery project is a major enabler for sustaining the Bevis Marks synagogue, with the project poised to embark on development work in autumn 2020 the future feels more assured and secure.

Growth in membership and developing the S&P Sephardi Community brand is very important and fundamental to the future of the organisation. With the establishment of a new Jewish day care Nursery in September 2019, it is hoped, this will afford the opportunity for a new wave of young families coming to Ashworth/Lauderdale Road to become new members. The move of the offices from Ashworth Road into Hendon should, in time, encourage a new cohort of young, modern thinking Sephardi communities within the NW London and Greater London area to become Affiliates and closer partners of the organisations and take advantage of the administration services provided by the Central Office. Due to financial challenges the charity has implemented a restructuring exercise which has created a smaller, more efficient corporate team.

With these organisational changes there has been and continues to be a desire to professionalise the work of the offices which includes introducing new policies and financial controls, more accurate financial reporting and introducing measures to be more cost efficient. This is a continuous work in progress and the move to Hendon has been an enabler by creating a more professional, collaborative environment from which to operate.

Specific plans for the future include:

  1. Proposals have been developed for encouraging new individual family members and existing independent and affiliate communities. The proposals set out how the S&P Sephardi Community can support not only the existing administration but also to help grow these communities through economies of scale and efficiencies in operation that the Head Office can afford. A new burial scheme is near completion and it is hoped this will be a key enabler for attracting new communities.

  2. The Sunday school (Cheder) although currently with 20-30 young children is expecting to grow. An active committee are in the process of developing plans for future growth and plans are underway to redevelop underutilised space in Ashworth Road to provide a modern, exciting environment for the children.

  3. A new, independent Jewish Day Care Nursery successfully opened in September 2019 under the auspices of the S&P Sephardi Community in the space vacated by the offices. Despite only opening a number of months the Nursery is already heading well in the direction of being at capacity. The S&P has also entered into partnership discussions with the Nursery for a mutual referral scheme which should see Nursery numbers and Lauderdale Synagogue members increase over time.

Following on from the roll out of the government vaccine programme and the easing of restrictions in England, we have recently seen an increase in weddings, which should attract future members to the Community. Due the very recent development in both the change in leadership of the Board of Elders and the departure of the Chief Executive the new leadership team will be reviewing the future developments whilst continuing to focus on the 3 key areas laid out above.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Funds held as custodian

The London Sephardi Trust (company number 0051526) is the custodian trustee of the assets held in the General Funds and the Property Charity. The Board of the London Sephardi Trust is the same as the Board of the S&P Sephardi Community.

A new scheme is currently being agreed with the charity commission which will make a new company the S&P Sephardi Trustee Limited the Corporate Trustee of the charities whilst the London Sephardi Trust remains the custodian Trustee.

Our trustees have due regard for their specific responsibilities in respect of the charity and apply care and diligence in ensuring the requirements of the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016 are adhered to.

Objects: The Objects of the Charities (which will be defined under the new charity scheme), are for the public benefit to support such work of the Congregation as shall be exclusively charitable under the laws of England and Wales from time to time as the Trustee shall think fit. Without prejudice to the generality of the foregoing, such exclusively charitable work includes:

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Information on fundraising practices

This note is written with regard to Fundraising disclosures brought in by section 13 of the Charities (Protection and Social Investment) Act 2016 and notes that Charities registered in England and Wales which must have their accounts audited by law must, for periods beginning on or after 1 November 2016, include extra information on their fundraising practices in the trustees’ annual report under the provisions of section 13 of the Charities (Protection and Social Investment) Act 2016.

Fundraising is now overseen by a part time (4 days a week) member of staff with previous demonstrable experience in fundraising and legacy giving.

Fundraising consists mainly of the following categories:-

We have not to date signed up with the fundraising regulator. The activities of the fundraising manager are monitored by the Chief Executive and the Board receives regular reports.

There were no formal complaints received by the charity, or by a person acting on its behalf for the purposes of fundraising, about fundraising activity. A Terms of Reference for all committees has been drafted which will need to be ratified by each synagogue committee. This sets out the roles and responsibilities of volunteers working at a local level. Separately the staff handbook sets out guidelines for staff behaviour and a separate ‘Volunteer Code of Conduct’ has been created which will be shared with all volunteers (committee members, trustees etc.). This sets out the expected behaviour of individuals working for the charity.

No fundraising is carried out directly to the public except the ability to become a friend of Bevis Marks.

Bank

The Charity banks with the Natwest Bank. This has not changed in over 150 years as one of the bank’s first customers.

Page 15

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2020

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company 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 Company 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

The auditor, Crowe U.K. LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................

Stuart Morganstein

Date: 27th August 2021

Page 16

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

Opinion

We have audited the financial statements of Spanish And Portuguese Jews' Synagogue (operating as 'The S&P Sephardi Community') (the 'charitable company') for the year ended 31 October 2020 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:

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Page 17

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY') (CONTINUED)

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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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.

Page 18

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY') (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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.

Crowe U.K. LLP

Statutory Auditor 55 Ludgate Hill London EC4M 7JW

Date: 30 August 2021

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 19

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2020

Note
Income and
endowments from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income and
endowments
Expenditure:
Fundraising and
charitable activities
8
Total expenditure
Net (losses)/gains on
investments
Net expenditure
Transfers
19
Net movement in
funds before other
recognised
gains/(losses)
(Losses)/gains on
revaluation of fixed
assets
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Total funds carried
forward		 Endowment
funds
2020
£
-
-
904
-
904
-
-
(3,737)
(2,833)
(904)
(3,737)
-
(3,737)
2,870,074
2,866,337		 Restricted
funds
2020
£
183,860
12,310
10,941
-
207,111
199,158
199,158
(45,230)
(37,277)
(9,850)
(47,127)
-
(47,127)
605,560
558,433		 Unrestricted
funds
2020
£
1,050,486
933,139
150,111
88,244
2,221,980
2,326,202
2,326,202
(158,279)
(262,501)
10,754
(251,747)
(44,125)
(295,872)
7,510,751
7,214,879		 Total
funds
2020
£
1,234,346
945,449
161,956
88,244
2,429,995
2,525,360
2,525,360
(207,246)
(302,611)
-
(302,611)
(44,125)
(346,736)
10,986,385
10,639,649		 Total
funds
2019
£
1,694,570
742,358
169,007
149,971
2,755,906
2,903,722
2,903,722
112,358
(35,458)
-
(35,458)
160,447
124,989
10,861,396
10,986,385

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 23 to 48 form part of these financial statements.

Page 20

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY') REGISTERED NUMBER:

BALANCE SHEET AS AT 31 OCTOBER 2020

Note
Fixed assets
Tangible assets
13
Heritage assets
12
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Provisions for liabilities
18
Total net assets
Charity funds
Endowment funds
19
Restricted funds
19
Unrestricted funds
19
Total funds		 370,412
757,554
1,127,966
(1,162,054)		 2020
£
7,015,612
2,815,790
3,999,110
13,830,512
(34,088)
13,796,424
(1,500,042)
(1,656,733)
10,639,649
2,866,337
558,433
7,214,879
10,639,649		 367,939
441,513
809,452
(2,678,853)		 2019
£
7,152,096
2,815,790
4,261,103
14,228,989
(1,869,401)
12,359,588
-
(1,373,203)
10,986,385
2,870,074
605,560
7,510,751
10,986,385

The Trustees acknowledge their responsibilities for complying with the requirements of the Charities Act with respect to accounting records and the preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Stuart Morganstein Date: 27th August 2021

Elliot Arwas

The notes on pages 23 to 48 form part of these financial statements.

Page 21

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2020
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in 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		 2020
£
174,237
161,956
(21,267)
75,000
(20,253)
195,436
(53,632)
(53,632)
316,041
441,513
757,554		 2019
£
(382,010)
169,007
(131,052)
555,000
(28,956)
563,999
(48,006)
(48,006)
133,983
307,530
441,513

The notes on pages 23 to 48 form part of these financial statements

Page 22

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

1. General information

Spanish And Portuguese Jews' Synagogue (operating as 'The S&P Sephardi Community) is a Charity registered in England and Wales (reg. 212517). The registered office is 2 Ashworth Road, London, W9 1JY

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Spanish And Portuguese Jews' Synagogue (operating as 'The S&P Sephardi Community') 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

At the time of approving the accounts and in light of the COVID-19 pandemic, the roll out of the government vaccine programme and the easing of restrictions in England, the Trustees has a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees report continue to adopt the going concern basis of accounting in preparing the accounts.

2.3 Incoming resources

Donations, legacies and other forms of voluntary income are recognised on receipt or when entitlement to receipt is probable and the amount can be reliably valued.

Finta (membership subscriptions) is treated as a donation and is accounted for when received. Tax recoverable continues to be accounted for in the year in which the related Finta is received.

Grants, where related to performance and specific deliverables, are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of its recognition, it is deferred and included in creditors; where entitlement occurs before income being received the income is accrued. Capital grants are accounted for as income as soon as they are received.

Investment income has been included to the extent that it arises on the fixed asset investments held during the year. Investment income is recognised on a receivable basis.

Page 23

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised on an accruals basis, inclusive of value added tax.

Fundraising costs are those incurred in seeking voluntary contributions, this includes costs incurred in producing the Charity’s newsletters and website.

Charitable expenditure comprises all expenditure directly relating to the objectives of the Charity and are allocated across the 3 main categories; Ecclesiastical, Hebra, Educational and programme activities

Governance costs include audit costs and legal advice for the trustees and those costs associated with constitutional and statutory requirements.

Support costs are those costs that are not directly attributable to a single activity but provide the necessary organisational support for all the charity's activities. The support costs have all been allocated across Fundraising and Charitable activities according to the following percentages which are based on the effective number of staff supporting each activities;

2.5 Government grants

Government Grants are recognised on the performance model, when the charity has complied with any conditions attached to the grant and the grant will be received. The grant in connection to the Coronavirus Job Retention Scheme has been recognised in the period to which the underlying furloughed staff costs relate to.

2.6 Tangible fixed assets and depreciation

Items of equipment are capitalised where the purchase price exceeds £500.

Residential Freehold and Leasehold buildings are initially measured at cost and subsequently revalued periodically to market value, net of depreciation and any impairment losses.

Fixtures, fittings and equipment are recognised at cost.

Synagogues, Burial Grounds and Operational Buildings are held at cost less depreciation and impairment, the majority of these assets are over 50 years old held at nil value and deemed to be fully depreciated. Freehold land associated with these categories is not valued on the balance sheet as the difference to historical cost is immaterial.

Page 24

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Depreciation is provided on the following bases:

Freehold property - 2%
Long-term leasehold property - 2%
Fixtures and fittings - 20%
Computer equipment - 33.3%

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.

2.7 Heritage assets

Heritage assets acquired or donated are capitalised and recognised in the Balance Sheet at their cost or value at the date of acquisition, where such a cost or value is reasonably obtainable. Capitalised heritage assets are not subject to depreciation or revaluation as a matter of routine.

The Heritage assets continue to be catalogued in a database. The majority of the Heritage assets are stored in NatWest's bank vaults, some are on display in museums. A trustee and member of staff maintain the Heritage assets to ensured that they are well preserved.

In 2015, an external valuation was undertaken by Sotheby's for a collection of heritage assets, comprising books, scrolls, silverware, artwork, pictures and artifacts. The valuation was on an 'open market value' basis and a value of £2,815,790 has been received, and brought on to the Balance Sheet. Further information can be found in note 12 to the accounts.

2.8 Fixed asset investments

Fixed asset investments (including investment properties) are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

2.9 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.

2.10 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Page 25

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

2. Accounting policies (continued)

2.11 Provisions

Provisions are recognised when the Charity has a legal or constructive present obligation as a result of a past event, it is probable that the Charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

As the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value.

2.12 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 but exclude prepaymentsand gift aid recoverable, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans but excluding deferred income and taxation, 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 receipts 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.

Derecognition of financial liabilities

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

2.13 Pensions

The Charity operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme and allocated to the charitable activities in line with salary costs.

Page 26

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

2. Accounting policies (continued)

2.14 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.

2.15 Fund accounting

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 accounts.

Endowment funds relate to Charity's heritage assets, more details are provided in the note 18.

2.16 Constituent Synagogues

There are three constituent synagogues at Bevis Marks (City of London), Lauderdale Road (Maida Vale) and Forty Avenue (Wembley).

3. Critical accounting estimates and areas of judgment

In the application of the charity’s accounting policies, the Trustees is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.

Critical accounting estimates and assumptions:

Further details are provided in the accounting policies and in the relevant notes to the accounts. The estimates and underlying assumptions are reviewed on an ongoing basis.

Page 27

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

4. Income from donations and grants

Donations
Finta
Synagogue donations
Other donations
Appeals
Gift Aid recovered
Grants receivable
Legacies
Total
Income from charitable activities
Hebra Income
Educational and programme activities
Marriages
Beth Din		 Restricted
funds
2020
Unrestricted
funds
2020
£
£
74,997
437,806
-
126,641
260
165,406
-
192,836
-
106,948
108,603
20,849
-
-
183,860
1,050,486
Restricted
funds
2020
Unrestricted
funds
2020
£
£
-
864,195
12,310
12,269
-
19,075
-
37,600
12,310
933,139		 Total
funds
2020
£
512,803
126,641
165,666
192,836
106,948
129,452
-
1,234,346
Total
funds
2020
£
864,195
24,579
19,075
37,600
945,449		 Total
funds
2019
£
483,915
113,108
457,750
259,323
127,048
245,426
8,000
1,694,570
Total
funds
2019
£
658,908
42,525
28,175
12,750
742,358

5. Income from charitable activities

Page 28

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

6. Investment income

Rental income
Distributions from Common
Investment Fund
Interest receivable		 Endowment
funds
2020
£
-
904
-
904		 Restricted
funds
2020
Unrestricted
funds
2020
£
£
-
111,587
10,941
38,293
-
231
10,941
150,111		 Total
funds
2020
£
111,587
50,138
231
161,956		 Total
funds
2019
£
100,784
67,827
396
169,007

7. Other incoming resources

Room Hire
Administration fees
Beavis Marks Visitor income
Other income		 Unrestricted
funds
2020
£
7,205
58,150
4,464
18,425
88,244		 Total
funds
2020
£
7,205
58,150
4,464
18,425
88,244		 Total
funds
2019
£
17,370
54,600
22,349
55,652
149,971

Page 29

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

8. Expenditure

Fundraising
Fundraising & Marketing
Charitable activities
Synagogues & Ecclesiastical
Hebra
Educational and programme
activities
Total 2019		 Staff costs
2020
£
-
-
511,963
-
-
511,963
619,624		 Direct costs
2020
£
11,970
11,970
202,478
405,100
22,114
641,662
1,100,168		 Support
costs
2020
£
35,164
35,164
914,495
-
422,076
1,371,735
1,183,930		 Total
funds
2020
£
47,134
47,134
1,628,936
405,100
444,190
2,525,360
2,903,722		 Total
funds
2019
£
47,939
47,939
2,089,091
392,273
374,419
2,903,722

Page 30

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

9. Support costs

Staff costs
Property
Other staff costs
Office supplies
Insurance
Professional fees
Accountancy
Provisions
Bank & interest
Governance
Other
Depreciation
Total 2019		 Fundraising
2020
£
12,411
4,655
1,388
2,307
1,050
1,244
87
7,270
1,114
681
43
2,914
35,164
28,876		 Synagogue
&
Ecclesiastic
al
2020
£
322,689
121,032
36,099
59,983
27,288
32,345
2,254
189,020
28,970
17,713
1,347
75,755
914,495
866,286		 Educational
&
Programme
activities
2020
£
148,933
55,861
16,661
27,685
12,594
14,929
1,040
87,240
13,371
8,175
622
34,965
422,076
288,768		 Total
funds
2020
£
484,033
181,548
54,148
89,975
40,932
48,518
3,381
283,530
43,455
26,569
2,012
113,634
1,371,735
1,183,930		 Total
funds
2019
£
490,064
193,829
121,862
114,300
39,093
114,412
3,691
(69,369)
56,859
20,189
1,649
97,351
1,183,930

. Governance costs include:

Auditors Remuneration - audit
Auditors Remuneration - other services		 2020
£
15,650
2,550
18,200		 2019
£
15,350
2,550
17,900

Page 31

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
878,983
95,647
21,366
995,996		 2019
£
981,224
111,418
17,045
1,109,687

Included within wages and salaries are payments totaling £1,763 (2018: £35,841) which relate to exgratia termination payments, all were paid during the year. Such payments are accounted for when the decision to terminate the employment is made.

The average number of persons employed by the Company during the year was as follows:

Ecclesiastical staff
Hebra
Administration and support staff
Chedder teachers (term time only)		 2020
No.
13
1
11
6
31		 2019
No.
15
1
12
5
33

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2020 2019
No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -
In the band £100,001 - £110,000 1 -
In the band £160,001 - £170,000
- 1

The key management personnel of the charity comprise the Chief Executive and the Senior Rabbi, total employee benefits (including employer national insurance and pension contributions) amounted to £224,380 (2019: £277,591).

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the year ended 31 October 2020, no Trustee expenses have been incurred (2019 - £NIL) .

12. Heritage assets

Assets recognised at cost

Carrying value at 1 November 2019 Heritage
assets
2020
£
2,815,790
2,815,790

The charity has for many years held assets of historical and cultural importance. These assets comprise books, scrolls, silverware, artwork, pictures and other artifacts, and freehold properties.

These assets are considered to be heritage assets. Due to the nature of these heritage assets, it was previously not possible to place a reliable value on them, and the trustees followed the Statement of Recommended Practice (SORP) which allows heritage assets to be excluded from the financial statements if there is no reliable estimate of value and it would be unreasonably costly to obtain such a valuation.

The trustees obtained an open market valuation of these assets from Sotheby's in the year to 31 October 2015 and in accordance with the SORP, brought a value of £2,815,790 for heritage assets onto the balance sheet. These items are important for the community history and education and were donated with the intention that they would be held in the long term for future benefit. Whilst these assets are to be held in the long term, trustees have the power to sell these items if it would be beneficial to the charity. Accordingly these items are held within an expendable endowment, a fund where there is no requirement to spend or apply the capital unless the trustees decide to do so.

There were no sales or purchases of heritage assets during the year.

Expenditure on the heritage assets is immaterial year on year and exclusively relates to the costs incurredfor storage.

Page 33

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

13. Tangible fixed assets

Cost or valuation
At 1 November 2019
Additions
Revaluations
At 31 October 2020
Depreciation
At 1 November 2019
Charge for the year
On revalued assets
At 31 October 2020
Net book value
At 31 October 2020
At 31 October 2019		 Freehold
land &
buildings
£
6,528,666
-
(143,666)
6,385,000
65,541
52,500
(99,541)
18,500
6,366,500
6,463,125		 Leasehold
land &
buildings
£
550,000
-
-
550,000
-
10,995
-
10,995
539,005
550,000		 Fixtures,
fittings &
equipment
£
224,717
21,269
-
245,986
85,746
50,133
-
135,879
110,107
138,971		 Total
£
7,303,383
21,269
(143,666)
7,180,986
151,287
113,628
(99,541)
165,374
7,015,612
7,152,096

Page 34

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

13. Tangible fixed assets (continued)

All of the above assets are used for charitable purposes.

Included within freehold and leasehold land and buildings is the following ministers' residence; 62B Marlborough Place and 5 Osprey Court. In 2019, these properties were revalued by an independent valuer, by a member of MNAEA, a member of the estate agents association.

At year end, 3 Vale Close was revalued to fair value by an independent valuer, by a member of MNAEA, a member of the estate agents association

The historical cost of revalued assets was;

The Trustees have carried out an impairment review of the properties of the Charity and are confident that there has been no reduction in the service potential of these properties. Accordingly, they have concluded that no impairment provision is necessary.

The charity also owns a number of historical buildings which are held at £Nil net book value on the grounds that the cost of these freeholds is now fully depreciated or the freehold interest is considered to be immaterial and written off. These include;

Synagogues Burial Grounds Other Freehold Properties Bevis Marks Synagogue Nuevo Burial Ground Edinburgh House Lauderdale Road Synagogue Velho Burial Ground Holland Park Synagogue Brentwood Burial Ground Wembley Synagogue

Page 35

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

14. Fixed asset investments

Cost or valuation
At 1 November 2019
Additions
Disposals
Revaluations
At 31 October 2020
Net book value
At 31 October 2020
At 31 October 2019
Valuation		 Investment
in Common
Investment
Fund
£
2,666,103
20,253
(75,000)
(207,246)
2,404,110
2,404,110
2,666,103		 Investment
property
£
1,595,000
-
-
-
1,595,000
1,595,000
1,595,000		 Total
£
4,261,103
20,253
(75,000)
(207,246)
3,999,110
3,999,110
4,261,103

The above investment held by S&P Sephardi Community accounts for 26.3% of the total Spanish and Portuguese Jew's Synagogue Common Investment Fund (charity reg no. 1104449).

Included within investment property are the properties at 4 (part),6 , 8, and 10 Heneage Lane, London (freehold interest only).

15. Debtors

Trade debtors
Amounts due from Common Investment Fund
Other debtors
Prepayments and accrued income
Gift Aid recoverable		 2020
£
280,622
50,841
14,196
13,885
10,868
370,412		 2019
£
278,459
43,205
14,329
15,744
16,202
367,939

Page 36

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

16. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
93,912
23,144
34,749
36,811
973,438
1,162,054		 2019
£
1,647,586
35,965
35,282
40,464
919,556
2,678,853

Deferred income relates to income received in advance for burials and funerals, these are released when carried out.

Deferred income at 1 November 2019
Resources deferred during the year
Amounts released from previous periods		 2020
£
820,671
222,872
(127,235)
916,308		 2019
£
872,128
116,216
(167,673)
820,671

17. Creditors: Amounts falling due after more than one year

2020 2019
£ £
Bank loans 1,500,042 -

In 2018 a mortgage was taken out by the charity to fund the purchase of a new property. The mortgage has a variable rate of 1.99% + the Bank of England base rate and is due for repayment in 2043. The mortgage is secured against 3 Vale Close, a freehold property owned by the charity.

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

18. Provisions

At 1 November 2019
Additions		 Provisions
£
1,373,203
283,530
1,656,733

Obligations for Ecclesiastical Officers' accommodation

Two of the ecclesiastical officers (Ministers) occupy residential accommodation owned by the Synagogue under housing licences.

These licenses permit the Ministers to remain in their current Synagogue dwellings (during which the Synagogue will cover the cost of rates, service charges and repairs) until 5 years after their retirement date, or until age 75, whichever comes first. At this point, they will be entitled to alternative accommodation, which will be provided until the later death of the Minister or their spouse.

One of these Ministers moved into their alternative accommodation during the year ending 31 October 2014. This accommodation was purchased by the Synagogue therefore the Synagogue will continue to cover the cost of rates, service charge and repairs for this Minister. The other Minister is yet to retire, and once in alternative accommodation, the Synagogue will cover the cost of the respective rent to third party landlords.

Page 38

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

19.
Statement of funds
Statement of funds - current year
Balance at 1
November
2019
£
Income
£
Designated
Beth Haim
Reserve
1,755,173
901,455
Nuevo Fund
31,769
600
Heneage Lane
Endowment
4,583
194
Honorary
Hazenut Fund
980
-
1,792,505
902,249
General funds
5,718,246
1,319,731
Total
Unrestricted
funds
7,510,751
2,221,980
Endowment
Heritage assets
2,815,790
-
Sephardi
Endowment fund
54,284
904
2,870,074
904
Restricted
Abraham
Valencia Holy
Books Fund
115,379
2,195
Norma Levy
Memorial Fund
5,079
114
Raphael de Sola
Hazanut Fund
40,755
770
Religious
Education Fund
59,520
15,177		 Expenditure
£
(405,100)
-
(3,974)
(4,000)
(413,074)
(1,913,128)
(2,326,202)
-
-
-
(3,183)
-
(15,000)
(25,845)		 Transfers
in/out
£
(434,275)
-
-
3,750
(430,525)
441,279
10,754
-
(904)
(904)
-
-
-
-		 Gains/
(Losses)
£
(154,020)
(2,482)
(803)
-
(157,305)
(45,099)
(202,404)
-
(3,737)
(3,737)
(9,067)
(470)
(3,184)
(6,416)		 Balance at
31 October
2020
£
1,663,233
29,887
-
730
1,693,850
5,521,029
7,214,879
2,815,790
50,547
2,866,337
105,324
4,723
23,341
42,436

Page 39

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

19. Statement of funds (continued)

Statement of funds - current year (continued)

Richard Barnett
Memorial
Lecture Fund
Tombstone Fund
Violet Reuben
Fund
Wembley
Building Fund
Other Restricted
funds
Special
Contingency
Fund
Lauderdale
Young Family
Fund
Rothshild Digital
Archive Fund
Lauderdale
Synagogue
Shamash Fund
Vera Goodman
Book Fund
Community
Security Trust
Brandon
Endowment -
Bevis Marks
Rabbi
Brandon
Endowment -
Events
Security Levy
Montefiore
Torah Scholar
Total of funds		 Balance at 1
November
2019
£
23,482
223,866
20,915
61,024
10,953
676
21,911
15,000
6,000
1,000
-
-
-
-
-
605,560
10,986,385		 Income
£
455
4,252
395
1,197
-
12
1,945
15,000
-
-
38,103
30,000
17,500
74,996
5,000
207,111
2,429,995		 Expenditure
£
-
-
-
-
-
(635)
(3,323)
(18,271)
(6,000)
(1,000)
(38,103)
(30,000)
(17,500)
(35,298)
(5,000)
(199,158)
(2,525,360)		 Transfers
in/out
£
-
-
-
-
(9,850)
-
-
-
-
-
-
-
-
-
-
(9,850)
-		 Gains/
(Losses)
£
(1,879)
(17,579)
(1,634)
(4,948)
-
(53)
-
-
-
-
-
-
-
-
-
(45,230)
(251,371)		 Balance at
31 October
2020
£
22,058
210,539
19,676
57,273
1,103
-
20,533
11,729
-
-
-
-
-
39,698
-
558,433
10,639,649

Page 40

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
Beth Haim
Reserve
Nuevo Fund
Heneage Lane
Endowment
Honorary
Hazenut Fund
General funds
Endowment
Heritage assets
Sephardi
Endowment fund
Restricted
Abraham
Valencia Holy
Books Fund
Norma Levy
Memorial Fund
Raphael de Sola
Hazanut Fund
Religious
Education Fund
Richard Barnett
Memorial
Lecture Fund
Tombstone Fund
Violet Reuben
Fund		 Balance at
1 November
2018
£
1,609,808
29,803
9,640
11,375
1,660,626
5,770,768
2,815,790
38,717
2,854,507
108,239
5,907
38,233
77,362
22,560
210,012
19,621		 Income
£
709,996
742
240
-
710,978
1,520,125
-
14,493
14,493
2,694
140
951
14,768
562
5,227
488		 Expenditure
£
(391,644)
-
(5,694)
(20,000)
(417,338)
(1,983,556)
-
-
-
-
(1,200)
-
(35,775)
(567)
-
-		 Transfers
in/out
£
(247,830)
-
-
9,605
(238,225)
238,718
-
(493)
(493)
-
-
-
-
-
-
-		 Gains/
(Losses)
£
74,843
1,224
397
-
76,464
172,191
-
1,567
1,567
4,446
232
1,571
3,165
927
8,627
806		 Balance at
31 October
2019
£
1,755,173
31,769
4,583
980
1,792,505
5,718,246
2,815,790
54,284
2,870,074
115,379
5,079
40,755
59,520
23,482
223,866
20,915

Page 41

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

19. Statement of funds (continued)

Statement of funds - prior year (continued)

Wembley
Building Fund
Other Restricted
funds
Special
Contingency
Fund
Lauderdale
Young Family
Fund
Rothshild Digital
Archive Fund
Lauderdale
Synagogue
Shamash Fund
Vera Goodman
Book Fund
Heritage Roof
Fund
Security Levy
Community
Security Trust
Brandon
Endowment
Montefiore
Torah Scholar
Fund
Total of funds		 Balance at
1 November
2018
£
67,768
1,103
634
-
-
-
-
24,056
-
-
-
-
575,495
10,861,396		 Income
£
1,686
9,850
16
26,500
15,000
9,000
1,000
289,849
36,268
56,311
30,000
10,000
510,310
2,755,906		 Expenditure
£
(11,213)
-
-
(4,589)
-
(3,000)
-
(313,905)
(36,268)
(56,311)
(30,000)
(10,000)
(502,828)
(2,903,722)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
2,783
-
26
-
-
-
-
-
-
-
-
-
22,583
272,805		 Balance at
31 October
2019
£
61,024
10,953
676
21,911
15,000
6,000
1,000
-
-
-
-
-
605,560
10,986,385

Page 42

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

RESTRICTED FUNDS

Abraham Valencia Holy Books Fund - To provide for the purchase of religious books

Community Security Trust - To provide for the security of the synagogues.

Brandon Endowment Salary Fund - To provide for the salary of the Programme Director, Bevis Marks Rabbi & Marketing Assistant.

Heritage Roof Fund - To fund the development of the Bevis Marks Synagogue

Norma Levy Memorial Fund - To provide floral decoration on Shabu'ot in Lauderdale Road Synagogue

Raphael de Sola Hazanut Fund - To provide scholarships for young men of the Congregation for Hazanut training.

Religious Education Fund - To provide for the needs of religious classes.

Richard Barnett Memorial Lecture - To provide for the cost of an annual lecture.

Sephardi Endowment - Grants made towards the salaries of the Bevis Marks Rabbi, and the program director

Special Contingency Fund - To provide for any specific needs of the Congregation.

Tombstone Fund - To provide for the maintenance and repair of charity tombstones

Violet Reuben Fund - To provide prizes for Hebrew religious classes.

Wembley Building Fund - To provide for the purchase and maintenance of Wembley Synagogue

Other Restricted funds - Include several different restricted funds to provide;

plant and maintain a biblical garden at the side of Lauderdale Road Synagogue

for the garden at Lauderdale Road Synagogue

for the upkeep of vestments

or the refurbishment of the milk kitchen and other rooms.

DESIGNATED FUNDS

Beth Haim Reserve - To provide for and maintain burial grounds.

Nuevo Fund - To provide for charitable and educational purposes, not forming part of the normal expenses of the Congregation.

Heneage Lane Endowment - To provide for the upkeep and maintenance of Bevis Marks Synagogue.

Honorary Hazenut Fund - These are funds to be spent at the Honorary Hazan's discretion

Transfers between funds included - A transfer from Beth Haim Reserve totalling £434,275 was made to the General Unrestricted Fund. This transfer related to the administrative support the charity has provided to Hebra activities during the year.

Page 43

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

20. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Fixed asset investments
Heritage assets
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total		 Endowment
funds
2020
£
-
42,981
2,815,790
7,566
-
-
-
2,866,337		 Restricted
funds
2020
Unrestricted
funds
2020
£
£
-
7,015,612
495,153
3,460,976
-
-
63,280
1,057,120
-
(1,162,054)
-
(1,500,042)
-
(1,656,733)
558,433
7,214,879		 Total
funds
2020
£
7,015,612
3,999,110
2,815,790
1,127,966
(1,162,054)
(1,500,042)
(1,656,733)
10,639,649

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Heritage assets
Current assets
Creditors due within one year
Provisions for liabilities and
charges
Total		 Endowment
funds
2019
£
-
46,717
2,815,790
7,569
-
-
2,870,076		 Restricted
funds
2019
£
-
565,476
-
40,084
-
-
605,560		 Unrestricted
funds -
Designated
2019
£
-
1,966,711
-
-
(174,206)
-
1,792,505		 Unrestricted
funds -
General
2019
£
7,152,096
1,682,199
-
761,799
(2,504,645)
(1,373,203)
5,718,246		 Total
funds
2019
£
7,152,096
4,261,103
2,815,790
809,452
(2,678,851)
(1,373,203)
10,986,387

Page 44

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Increase in debtors
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Net cash provided by/(used in) operating activities		 2020
£
(302,611)
113,628
207,246
(161,956)
(2,473)
36,873
283,530
174,237		 2019
£
(35,458)
97,344
(112,358)
(169,007)
(83,324)
(9,654)
(69,553)
(382,010)

22. Analysis of cash and cash equivalents

2020 2019
£ £
Cash in hand 757,554 441,513

23. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
November
2019
£
441,513
(1,647,586)
-
(1,206,073)		 Cash flows
£
316,041
53,632
-
369,673		 Other non-
cash
changes
£
-
1,500,042
(1,500,042)
-		 At 31
October
2020
£
757,554
(93,912)
(1,500,042)
(836,400)

Page 45

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

24. Operating lease commitments

The charity receives rental income from an operating lease of an investment property. The original lease was for 125 years and entitles the charity to 9.4% of future rental income collected by the Lessee, who has sublet the property to multiple tenants. There are 85 years remaining on the lease and the income receivable is variable based on the success of the Lessee subletting to various tenants.

At 31 October 2020 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Nursery - Operating Lessee
Within 1 year
Between 1 and 5 years
After more than 5 years
Hendon - Operating Lessor
Within 1 year
Between 1 and 5 years
After more than 5 years		 2020
£
45,000
180,000
151,027
376,027
2020
£
42,000
168,000
143,605
353,605		 2019
£
37,877
180,000
196,027
413,904
2019
£
42,000
168,000
185,605
395,605

Page 46

SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

25. Related party transactions

As at 31 October 2020, the Spanish and Portuguese Jews' Synagogue was owed £49,654 (2019: £43,205) by the Spanish and Portuguese Jews' Synagogue Common Investment Fund (an associated entity of the Spanish and Portuguese Jews' Synagogue with common trustees, also known as The London Sephardi Trust Investment Pool Fund), in which all quoted investments of the Spanish and Portuguese Jews' Synagogue were held as at 31 October 2020 and 31 October 2019. Investment income received during the year from those investments amounted to £20,253 (2019: £24,622). During the year £21,000 (2019: £20,000) was charged for administrative services from the Spanish and Portuguese Jews’ Synagogues and this balance was outstanding at year end (2019: nil).

Included within note 6 to the accounts are contributions from associated trusts, entities which are connected with the charity by virtue of common trustees or being part of the Spanish and Portuguese Jews' Synagogue group, and represent fees for secretarial and accounting services of £54,600 (2019: £54,600). At 31 October 2020 the Spanish and Portuguese Jews' Synagogue was owed £Nil (2018: £Nil) by such associated trusts and entities.

During the year, Mr S Ereira, the son of the trustee Mr D Ereira, provided the Spanish and Portuguese Jews' Synagogue with IT Consultancy services and was paid £6,500 (2019: £6,282). The fee charges represent charges for approximately 50% of work done, the rest was done without charge.

During the year, Mr B Musikant, the husband of the trustee K Musikant, provided the Spanish and Portuguese Jews' Synagogue with electrical maintenance services and was reimbursed £Nil (2019: £100). The transactions were considered to be conducted at arms length.

In the year ended 31 October 2020 the Spanish and Portuguese Jews’ Synagogue made a grant of £4,000 to the Bevis Marks Synagogue Heritage Foundation (an associated entity of the Spanish and Portuguese Jews’ Synagogue with common trustees).

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SPANISH AND PORTUGUESE JEWS' SYNAGOGUE (OPERATING AS 'THE S&P SEPHARDI COMMUNITY')

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

26. Prior year Statement of Financial Activities

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