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2022-10-31-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 2022

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

CONTENTS
Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 12
Independent auditor's report on the financial statements 13 - 15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 43

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

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2022

Trustees Richard Sassoon
Efrat Sopher (resigned 6 September 2022)
Daniel Kaye (resigned 18 March 2022)
Elliot Arwas
Stuart Morganstein
Jospeh Bekhor
Benjamin Crowne (appointed 11 October 2021, resigned 9 April 2022)
Alan Mendoza (appointed 9 April 2022)
Jack Zelouf (appointed 9 April 2022)
Daniel Sacerdoti (appointed 9 April 2022)
Suzanne Magnus (appointed 9 April 2022)
Barbara Simon (appointed 7 September 2022)
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
Interim Chief Executive, Ian Stewart (appointed September 2021 to March 2022)
Chief Executive, Rachel Fink (appointed March 2022)

Page 1

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

TRUSTEES' REPORT FOR THE YEAR ENDED 31 OCTOBER 2022

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 November 2021 to 31 October 2022. The Trustees confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity'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).

Objectives and activities

a. Policies and objectives

The Objects of the Charity 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 2022

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 2022

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 2011 and 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.

Achievements and performance

a. Review of activities

Membership numbers

2022 Membership Data (as of 31st October 2022) – 1,055 Adult Members

Change +5 (net increase) in membership numbers from previous year (1,050) are due to 31 new members (excluding newlyweds), 13 deaths and 13 resignations.

Separately, there were 26 newly married members and 32 resignations from newly marrieds. This highlights a focus area for membership development and retention.

What has happened in the last reporting year:

Ian Stewart took on the role of interim CEO in addition to his main role as COO from August until April 2022 when Rachel Fink was appointed as the new CEO. Ongoing concerns around Covid meant that there continued to be a slow return to normal activity across the communities. It is now pleasing to report that Shabbat and Hagim services are now running as per pre Covid and there are many in person activities, the Board of Trustees also meets in person. There are still online and hybrid events and these take place to complement rather than fully replace happenings.

A well contested election to the Board took place in March 2022 resulting in five new Yehidim joining the Board of Elders. Prof Stuart Morganstein stepped down from his position as Parnas Presidente and Dr Alan Mendoza was elected to replace him.

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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 2022

Achievements and performance (continued)

There has been a restructure of the office team under the direction of the new CEO to ensure a more effective service provision to the Kahal. This includes a Senior Administrator who replaces the office manager and EA to the Senior Rabbi. The postholder provides administrative support to both Wembley and Bevis Marks synagogues as well as diary support to the Senior Rabbi and overall responsibility for the office and ensuring a swift response to enquiries.

A new post of Lauderdale Road Community Development Officer is providing specific support to the Lauderdale Road community covering the synagogue administration, booking of events, sponsorship of kiddushim and organising specific activities across the age range.

The Community Engagement officer, a part time role oversees the implementation of a wide range of educational and social activities across the S&P.

Our Sha’are Tikva classes engaged a new headteacher and there is now a bar and batmitzvah class that is growing in numbers.

The new head of marketing and communications has redeveloped SPIN, introducing a weekly editorial written on rotation by our rabbis, board members and some of the office team. The L’Haim magazine at Rosh Hashana generated much positive feedback and created a small profit for the Kahal.

The most recent appointment of a part time Wellbeing Manager is in response to the findings of the 2022 Kahal survey. This postholder is ensuring that Yehidim in need, are receiving appropriate non-financial support and the next phase of development will include expanding and strengthening the volunteer network.

The office team has also undertaken a data cleanse to ensure that all members’ data is accurate and up to date.

The development of the Bevis Marks Heritage Centre is ongoing and whilst delays to completion due to Covid means that the opening will be in late Autumn 2023, it is hoped that visitors to the synagogue, whose renovation is now complete, will commence in the summer.

The building work at Lauderdale Road following the flood in 2020 is now complete and the Fattal Sukkah roof was also operational over the Hag. We are grateful to the group of volunteers who reorganised the library at Lauderdale Road together with two work experience students during the hottest week of summer 2022.

The Governance review undertaken by a small working party did not yield substantial developments and this important area for the leadership and management of the Kahal will be a focus for 2023.

Full services were resumed across all synagogues across the High Holy Days and once again the special candlelight Tisha B’Ab and Hoshana Raba services took place at Bevis Marks.

A new online approach to the Kal Nidre appeal yielded positive results and the Kahal is thanked for its generosity.

Some exciting and successful communal events took place for Purim, Pesah and Yom Ha’atzmaut. There was a well attended communal seder on the second night of Pesah at Lauderdale Road and it was wonderful to have all five S&P rabbis preside over the Yom Ha’atzmaut service which was followed by celebrations in the Montefiore Hall. The online pre Rosh Hashana educational event attracted significant numbers of participants. Other events included a beautiful baby blessing at Lauderdale Road, young professionals dinners and a Rosh Hashana seder and communal dinner on the second night, Shabuot barbeques and a talk at Wembley by the deputy Mayor of Jerusalem. There are too many events to list them all here, but it is reflective of a Kahal reengaging with enthusiasm. Careful budgeting takes place prior to all events and there is also post event evaluation undertaken by the office team.

In September a wider national Sephardi census was distributed, the analysis of which is currently underway. Response was high and the data should provide some insightful information as to how to develop new streams of membership to the S&P Sephardi community.

It was with great sadness that the S&P Sephardi Community learnt of the passing of HM Queen Elizabeth II in September. The Kahal held a moving memorial service at Lauderdale Road synagogue and our condolences were shared with the Palace.

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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 2022

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. The performance over the long term in line with the target set, specifically the investments held in the Commen Investment Fund also outperformed the benchmarks set by the committee over the 5 year period.

There are currently £4,499,928 assets held as investments (2021: £4,798,526) these decreased by £298,598 due to a downwards revaluation of £299,117.

Table of percentage income yields on investment:

Target % Actual % Investment in Common Investment Fund* Low to mid-single digit 2.9% Investment property Low to mid-single digit 4.1% * 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 £10,460,460 (2021: £11,014,326). The year end to 31 October 2022 showed a decrease in unrestricted reserves of £467,127 to £6,888,738 (2021: £7,355,865) this is due to net investment losses and operating losses. Restricted Funds decreased by £81,363 to £697,844 (2021: £779,207), this decrease is mainly due to losses on investments. The Endowment fund has also decreased by £5,196 to £2,874,058 (2021: £2,879,254) due to investment losses. There has been no change to the community's heritage assets during the year.

The total income was £2,239,112 (2021: £2,240,113) a decrease of £1,001. The total expenditure was £2,494,200 (2021: £2,247,514) an increase of £246,686.

b. Going concern

After making appropriate enquiries, 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 2022

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 and is being kept at the current level of between three and six months. Currently this splits as below:-

2022 2021
£ £
General unrestricted funds 4,809,199 5,213,491
Designated funds 2,079,539 2,142,374
Total 6,888,738 7,355,865
Less tangible assets (5,075,112) (5,128,258)
Add back mortgage 1,467,036 1,532,934
Funds available 3,280,662 3,760,541

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

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 2022

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, fundraising and HR. Each board member holds a number of portfolios to assist the work of the community. These are reported on regularly at meetings of the Trustees.

Our Board delegates the day-to-day operations of the charity to the Chief Executive who within their delegated authority has assigned operational matters to their 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 New Governance Code which was released in 2017 and updated in December 2020 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. The Trustees are aware of the need for further development related to governance and the Ascamot and this is outlined in the section below on Future Developments.

c. Policies adopted for the induction and training of Trustees

New Trustees are introduced to the various associated charities alongside the main responsibilities of the S&P Board of Elders. Trustees have undertaken Safeguarding and Fundraising training.

The Board recognises that the responsibilities of a Trustee are considerable. Training sessions will be arranged as the need arises. Representatives of the Board are offered annual Trustee training provided by JVN, the Jewish Volunteers Network and a membert 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.

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.

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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 2022

Structure, governance and management (continued)

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 Rd 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.

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.

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 BritishJewry.

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 2022

Plans for future periods

Future developments

The future development of the charity continues to focus on four key area: and with the addition of a fourth key focus:

  1. Sustainability

  2. Growth in Membership

  3. Professionalisation

  4. Development of community provision

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. The heritage project, now well under way, and despite delays due to Covid is nearing completion in Autumn 2023. The future feels more assured and secure. It is recognized that sustainability is not just about the estate but also about the Yehidim in the community and the future of the S&P Sephardi community as an important and relevant organization in both Anglo and world Jewry. The fourth focus outlined below responds to this imperative.

Growth in membership and developing the S&P Sephardi Community brand is very important and fundamental to the future of the organisation. There continues to be a significant number of potential junior members who have yet to join the S&P in their own right and remain under their parents’ membership. A drive to engage this cohort of young professionals with the objective to secure their membership to the community remains a priority.

The model of Affiliate synagogues is to be reviewed and revised to ensure mutual benefit both to the S&P and the affiliates.

Most of the changes to the corporate team have been completed though there are some outstanding areas that require further review to ensure the service provision is efficient and effective. The governance review that took place during the Summer of 2022 did not yield sufficient consensus and there is a commitment to return to this important priority that will lead improved communication and transparency. This in turn will ensure that the Ascamot and various committees operate in a way that both retains the authenticity and uniqueness of the S&P community and meets the needs of a modern day Kahal in the 21st century.

Engaging with the Kahal of each of the 3 synagogues continues to be of paramount importance and community engagement is at the forefront of all event planning. A Community wellbeing and support network will be established to support members of the community on a wide range of issues. A full review of the potential areas for income will be undertaken to include all hall hire costs, weddings, Bet Din fees and charges and services for Affiliate congregations.

Specific plans for the future include:

  1. Completing the redevelopment of the community website so that it meets the needs of all current members and also becomes a portal to the Sephardi world.

  2. Embedding the community wellbeing support offering with a focus on expanding volunteering opportunities.

  3. Continue to evaluate all community programming to ensure that these are well attended and engage different members across the demographic.

  4. Planning fundraising initiatives that will enhance the financial stability of the Kahal.

  5. Launching the Office of the Senior Rabbi to strengthen the voice of Sephardim in the UK and to create an international following of moderate halachic Judaism under the leadership of Rabbi Dweck as the head of the S&P Sephardi community UK.

  6. Developing a plan for the restoration of Lauderdale Road synagogue and the Ashworth Road site.

  7. Developing the brand and credibility of the Sephardi Beth Din through online conferences symposium and new service offerings.

  8. Reviewing and updating the affiliate communities provision.

  9. With the residential care home Choice House now vacated, the S&P is continuing and prioritising internal discussions as to the long term impact on the Wembley community.

  10. Create an online mid year community update around Pesah to complement the annual L’Haim magazine distributed at Rosh Hashana.

  11. Support the implementation of the City of London Eruv spearheaded by Rabbi Morris and the Beth Din.

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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 2022

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.

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:

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.

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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 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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:

Alan Mendoza Date: 27 February 2023

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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 the Spanish and Portuguese Jews’ Synagogue (operating as ‘The S&P Sephardi Community’) (‘the charity’) for the year ended 31 October 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 13

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)

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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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.

We ourour

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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.

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.

Page 14

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)

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation, tax legislation, employment legislation and health and safety legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of Hebra and grant income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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: 6 March 2023

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

Page 15

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 2022

Endowment
funds
2022
Note
£
Income and
endowments:
Donations
4
-
Charitable
activities
5
-
Investments
6
1,103
Other income
7
-
Total income and
endowments
1,103
Expenditure:
Fundraising and
charitable
activities
-
Total expenditure
-
Net (losses)/gains
on investments
14
(5,196)
Net
(expenditure)/inc
ome
(4,093)
Transfers
19
(1,103)
Net movement in
funds
(5,196)
Reconciliation of
funds:
Total funds
brought forward
2,879,254
Total funds
carried forward
2,874,058		 Restricted
funds
2022
£
311,399
30,015
13,042
-
354,456
(374,239)
(374,239)
(61,580)
(81,363)
-
(81,363)
779,207
697,844		 Unrestricted
designated
funds
2022
£
-
598,567
48,949
4,707
652,223
(353,053)
(353,053)
(230,634)
68,536
(131,371)
(62,835)
2,142,374
2,079,539		 Unrestricted
funds
2022
£
929,873
70,084
134,133
97,240
1,231,330
(1,766,908)
(1,766,908)
(1,188)
(536,766)
132,474
(404,292)
5,213,491
4,809,199		 Total
funds
2022
£
1,241,272
698,666
197,227
101,947
2,239,112
(2,494,200)
(2,494,200)
(298,598)
(553,686)
-
(553,686)
11,014,326
10,460,640		 Total
funds
2021
£
1,159,734
804,479
180,108
95,792
2,240,113
(2,247,514)
(2,247,514)
470,819
463,418
-
463,418
10,550,908
11,014,326

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

The notes on pages 19 to 43 form part of these financial statements.

Page 16

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

BALANCE SHEET AS AT 31 OCTOBER 2022

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 one year
17
Provisions for liabilities
18
Total net assets
Charity funds
Endowment funds
19
Restricted funds
19
Unrestricted funds
Designated funds
19
General funds
19
Total unrestricted funds
19
Total funds		 425,867
887,878
1,313,745
(1,683,895)
2,079,539
4,809,199		 2022
£
5,075,112
2,815,790
4,499,928
12,390,830
(370,150)
12,020,680
(1,373,124)
(186,916)
10,460,640
2,874,058
697,844
6,888,738
10,460,640		 470,608
868,057
1,338,665
(1,357,600)
2,142,374
5,213,491		 2021
£
5,128,258
2,815,790
4,798,526
12,742,574
(18,935)
12,723,639
(1,438,922)
(270,391)
11,014,326
2,879,254
779,207
7,355,865
11,014,326

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:

Alan Mendoza

Elliot Arwas

Date: 27 February 2023

The notes on pages 19 to 43 form part of these financial statements.

Page 17

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

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2022

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
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
22		 2022
£
(88,920)
197,227
11,257
(33,428)
(517)
174,539
(65,798)
(65,798)
19,821
868,057
887,878		 2021
£
(1,452,282)
180,108
1,822,250
(49,855)
(328,598)
1,623,905
(61,120)
(61,120)
110,503
757,554
868,057

The notes on pages 19 to 43 form part of these financial statements

Page 18

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

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

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.

A restatement of the prior year figures has been made to include a life annunity provision for a former employee who receives an income for life following his retirement in 2012 (see note 26 – prior year adjustment, for more details).

2.2 Going concern

After making appropriate enquiries and in light of the higher than expected increase in inflation, 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.

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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

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 19

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

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

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.

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.

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.

Page 20

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

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

2. Accounting policies (continued)

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 21

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

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

2. Accounting policies (continued)

2.11 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.

2.12 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.

2.13 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.

2.14 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 12.

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 2022

2. Accounting policies (continued)

2.15 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 23

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

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

4. Income from donations and grants

Donations
Finta
Synagogue
donations
Other donations
Appeals
Gift Aid recovered
Grants receivable
Legacies
Total 2022		 Endowment
funds
2022
£
-
-
-
-
-
-
-
-		 Restricted
funds
2022
£
-
142,287
61,708
-
-
107,404
-
311,399		 Unrestricted
designated
funds
2022
£
-
-
-
-
-
-
-
-		 Unrestricted
funds
2022
£
481,239
113,007
67,874
163,337
101,423
2,993
-
929,873		 Total
funds
2022
£
481,239
255,294
129,582
163,337
101,423
110,397
-
1,241,272		 Total
funds
2021
£
485,960
144,144
155,055
107,685
96,158
165,232
5,500
1,140,594

5. Income from charitable activities

Hebra income
Educational and programme
activities
Marriages
Beth Din
Total 2022		 Restricted
funds
2022
£
2,087
27,928
-
-
30,015		 Unrestricted
designated
funds
2022
£
598,567
-
-
-
598,567		 Unrestricted
funds
2022
£
-
15,696
20,850
33,538
70,084		 Total
funds
2022
£
600,654
43,624
20,850
33,538
698,666		 Total
funds
2021
£
739,337
28,824
23,475
12,843
804,479

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 2022

6. Investment income

Rental income
Distributions from
Common
Investment Fund
Interest receivable
Total 2022		 Endowment
funds
2022
£
-
1,103
-
1,103		 Restricted
funds
2022
£
-
13,042
-
13,042		 Unrestricted
designated
funds
2022
£
-
48,949
-
48,949		 Unrestricted
funds
2022
£
133,682
280
171
134,133		 Total
funds
2022
£
133,682
63,374
171
197,227		 Total
funds
2021
£
122,080
57,990
38
180,108

7. Other incoming resources

Room Hire
Administration fees
Other income
Gain on sale of fixed asstes
Total 2022		 Unrestricted
Designated
funds
2022
£
-
-
4,707
-
4,707		 Unrestricted
funds
2022
£
14,238
25,100
57,902
-
97,240		 Total
funds
2022
£
14,238
25,100
62,609
-
101,947		 Total
funds
2021
£
6,893
28,355
36,047
24,497
95,792

Total 2022

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 2022

8. Expenditure

Fundraising
Fundraising & Marketing
Charitable activities
Synagogues & Ecclesiastical
Hebra
Educational and programme
activities
Total 2022
Total 2021
9.
Support costs		 Staff costs
2022
£
-
-
536,426
-
-
536,426
439,956		 Direct costs
2022
£
13,707
13,707
349,020
342,415
59,542
764,684
602,986		 Support
costs
2022
£
30,580
30,580
795,566
-
366,944
1,193,090
1,204,572		 Total
funds
2022
£
44,287
44,287
1,681,012
342,415
426,486
2,494,200
2,247,514		 Total
funds
2021
£
54,668
54,668
1,456,448
343,218
393,180
2,247,514
Staff costs
Property
Other staff costs
Office supplies
Insurance
Professional fees
Accountancy
Provisions
Bank & interest
Other
Depreciation
Governance
Total 2022
Total 2021		 Fundraising
2022
£
13,398
6,643
1,278
2,363
1,759
2,471
113
(2,140)
1,307
764
1,896
728
30,580
31,155		 Synagogue &
Ecclesiastical
2022
£
348,361
172,724
33,216
61,432
45,737
64,238
2,945
(55,650)
33,969
20,375
49,283
18,936
795,566
799,567		 Educational
&
Programme
activities
2022
£
160,782
79,719
15,331
28,353
21,109
29,648
1,358
(25,685)
15,678
9,165
22,746
8,740
366,944
373,850		 Total
funds
2022
£
522,541
259,086
49,825
92,148
68,605
96,357
4,416
(83,475)
50,954
30,304
73,925
28,404
1,193,090
1,204,572		 Total
funds
2021
£
531,451
192,203
50,376
92,743
44,227
113,876
6,123
(5,084)
38,646
(641)
118,312
22,340
1,204,572

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 2022

. Governance costs include:

Auditors Remuneration - audit
Auditors Remuneration - other services		 2022
£
17,150
3,000
20,150		 2021
£
16,050
2,650
18,700

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
945,558
97,846
20,121
1,063,525		 2021
£
860,183
89,961
21,262
971,406

Included within wages and salaries are payments totaling £14,911 (2021: £196) 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 charity during the year was as follows:

Ecclesiastical staff
Hebra
Administration and support staff
Hader teachers (term time only)		 2022
No.
11
1
12
5
29		 2021
No.
13
1
11
6
31

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

2022 2021
No. No.
In the band £60,001 - £70,000 0 2
In the band £70,001 - £80,000 1 0
In the band £90,001 - £100,000 0 1
In the band £120,001 - £130,000 1 0

The key management personnel of the charity comprise the Chief Executive, the Senior Rabbi and the Chief Operating Officer, total employee benefits (including employer national insurance and pension contributions) amounted to £210,877 (2021: £257,361).

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 2022

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021: £Nil).

During the year ended 31 October 2022, no Trustee expenses have been incurred (2021: £Nil).

12. Heritage assets

Assets recognised at cost

Carrying value at 1 November 2021
Carrying value at 31 October 2022		 Heritage
assets
2022
£
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 incurred for storage.

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 2022

13. Tangible fixed assets

Cost or valuation
At 1 November 2021
Additions
Disposals
At 31 October 2022
Depreciation
At 1 November 2021
Charge for the year
On disposals
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021		 Freehold land
& buildings
£
4,535,000
-
-
4,535,000
46,715
19,796
-
66,511
4,468,489
4,488,285		 Leasehold
land &
buildings
£
550,000
-
-
550,000
21,995
11,000
-
32,995
517,005
528,005		 Fixtures,
fittings &
equipment
£
295,841
33,428
(23,929)
305,340
183,873
44,521
(12,672)
215,722
89,618
111,968		 Total
£
5,380,841
33,428
(23,929)
5,390,340
252,583
75,317
(12,672)
315,228
5,075,112
5,128,258

All of the above assets are used for charitable purposes.

Included within leasehold land and buildings is the following minister residence; 5 Osprey Court. In 2019, this property was revalued 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 Bevis Marks Synagogue Lauderdale Road Synagogue Holland Park Synagogue Wembley Synagogue

Burial Grounds Nuevo Other Freehold Properties Burial Ground Velho Choice House Burial Ground Brentwood Choice Court Burial Ground Hoop Lane Burial Ground

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 2022

14. Fixed asset investments

Cost or valuation
At 1 November 2021
Revaluations
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021
Valuation		 Investment in
Common
Investment
Fund
£
3,203,526
(298,598)
2,904,928
2,904,928
3,203,526		 Investment
property
£
1,595,000
-
1,595,000
1,595,000
1,595,000		 Total
£
4,798,526
(298,598)
4,499,928
4,499,928
4,798,526

The above investment held by S&P Sephardi Community accounts for 28.4% 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		 2022
£
250,286
67,414
13,218
67,327
27,622
425,867		 2021
£
349,730
86,235
14,014
14,177
6,452
470,608

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 2022

16. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
93,912
91,300
31,220
68,253
1,399,210
1,683,895		 2021
£
93,912
32,471
28,973
23,465
1,178,779
1,357,600

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

Deferred income at 1 November 2021
Resources deferred during the year
Amounts released from previous periods		 2022
£
1,110,532
250,970
(147,899)
1,213,603		 2021
£
916,308
238,272
(44,048)
1,110,532

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

2022 2021
£ £
Bank loans 1,373,124 1,438,922

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.

Included within the above are amounts falling due as follows:

Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans		 2022
£
93,912
281,736
997,476		 2021
£
93,912
281,736
1,063,274

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 2022

18. Provisions

At 1 November 2021
Amounts used		 Provisions
£
192,093
(68,153)
123,940		 Life Annuity
£
78,298
(15,322)
62,976		 Total
£
270,391
(83,475)
186,916

Obligations for Ecclesiastical Officers' accommodation

The spouse of a deceased ecclesiastical officer occupies a residential accommodation owned by the Synagogue under a housing licence.

This license permits the spouse to remain in the current Synagogue dwelling (during which the Synagogue will cover the cost of rates, service charges and repairs). The accommodation will be provided until the date of death of the spouse.

Life Annuity

In 2012 it was agreed when a former employee retired that the Community would make a fixed monthly payment until date of death. This provision was included in the accounts this year along with a prior year adjustment (see note 26 for more details)

Page 32

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

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

19. Statement of funds

Statement of funds - current year
Balance at 1
November
2021
£
Designated
Beth Haim
Reserve
2,098,946
Nuevo Fund
36,166
Heneage Lane
Endowment
2,032
Honorary Hazanut
Fund
5,230
2,142,374
General funds
5,213,491
Total
Unrestricted
funds
7,355,865
Endowment
Heritage assets
2,815,790
Sephardi
Endowment fund
63,464
2,879,254
Restricted
Restricted Funds -
all funds
4,603
Abraham Valencia
Holy Books Fund
128,138
Norma Levy
Memorial Fund
5,912
Raphael de Sola
Hazanut Fund
28,305
Religious
Education Fund
45,619		 Income
£
651,320
685
217
-
652,222
1,231,331
1,883,553
-
1,103
1,103
759
2,504
127
548
10,713		 Expenditure
£
(352,653)
-
-
(400)
(353,053)
(1,766,908)
(2,119,961)
-
-
-
-
(2,444)
-
(4,200)
(14,350)		 Transfers
in/out
£
(135,870)
-
-
4,500
(131,370)
132,473
1,103
-
(1,103)
(1,103)
-
-
-
-
-		 Gains/
(Losses)
£
(226,380)
(3,228)
(1,026)
-
(230,634)
(1,188)
(231,822)
-
(5,196)
(5,196)
(30)
(11,799)
(601)
(2,677)
(4,912)		 Balance at 31
October 2022
£
2,035,363
33,623
1,223
9,330
Designated
Beth Haim
Reserve
Nuevo Fund
Heneage Lane
Endowment
Honorary Hazanut
Fund
General funds
Total
Unrestricted
funds
Endowment
Heritage assets
Sephardi
Endowment fund
Restricted
Restricted Funds -
all funds
Abraham Valencia
Holy Books Fund
Norma Levy
Memorial Fund
Raphael de Sola
Hazanut Fund
Religious
Education Fund
2,079,539
4,809,199
6,888,738
2,815,790
58,268
2,874,058
5,332
116,399
5,438
21,976
37,070

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 2022

19. Statement of funds (continued)

Statement of funds - current year (continued)

Richard Barnett
Memorial Lecture
Fund
Tombstone Fund
Violet Reuben
Fund
Wembley Building
Fund
New Burial
Scheme
Office of Senior
Rabbi
Lauderdale Young
Family Fund
Bevis Marks
PR/Defence
Lauderdale
Synagogue
Shamash Fund
Community
Security Trust
Brandon
Endowment -
Bevis Marks Rabbi
Brandon
Endowment -
Events
Lauderdale Road
Rabbi Fund
Security Levy
Building Levy
Haburah
Total of funds		 Balance at 1
November
2021
£
26,811
256,166
23,236
70,163
75,048
25,000
18,729
987
1,436
-
-
-
-
34,132
-
34,922
779,207
11,014,326		 Income
£
510
4,977
443
1,406
3,573
113,364
-
10,000
-
12,897
30,000
24,500
20,462
35,722
26,162
55,789
354,456
2,239,112		 Expenditure
£
(1,000)
-
-
-
(5,057)
(100,775)
(1,374)
(10,987)
(1,436)
(12,897)
(30,000)
(21,775)
(14,527)
(67,478)
(26,162)
(59,777)
(374,239)
(2,494,200)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
(2,402)
(23,451)
(2,089)
(6,624)
(6,995)
-
-
-
-
-
-
-
-
-
-
-
(61,580)
(298,598)		 Balance at 31
October 2022
£
23,919
237,692
21,590
64,945
66,569
37,589
17,355
-
-
-
-
2,725
5,935
2,376
-
30,934
697,844
10,460,640

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 2022

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
Beth Haim
Reserve
Nuevo Fund
Heneage Lane
Endowment
Honorary Hazanut
Fund
General funds
Total
Unrestricted
funds
Endowment
Heritage assets
Sephardi
Endowment fund
Restricted
Restricted Funds -
all funds
Abraham Valencia
Holy Books Fund
Norma Levy
Memorial Fund
Raphael de Sola
Hazanut Fund
Religious
Education Fund
Richard Barnett
Memorial Lecture
Fund
Tombstone Fund		 Balance at
1 November
2020
£
1,663,233
29,887
-
730
1,693,850
5,432,288
7,126,138
2,815,790
50,547
2,866,337
1,103
105,324
4,723
23,341
42,436
22,058
210,539		 Income
£
708,115
689
19,363
-
728,167
1,150,776
1,878,943
-
5,537
5,537
3,382
2,580
130
544
9,282
521
5,003		 Expenditure
£
(396,136)
-
(19,140)
-
(415,276)
(1,600,409)
(2,015,685)
-
-
-
-
(719)
-
-
(16,507)
-
-		 Transfers
in/out
£
(232,100)
-
-
4,500
(227,600)
228,637
1,037
-
(1,037)
(1,037)
-
-
-
-
-
-
-		 Gains/
(Losses)
£
355,834
5,590
1,809
-
363,233
2,199
365,432
-
8,417
8,417
118
20,953
1,059
4,420
10,408
4,232
40,624		 Balance at
31 October
2021
£
2,098,946
36,166
2,032
5,230
2,142,374
5,213,491
7,355,865
2,815,790
63,464
2,879,254
4,603
128,138
5,912
28,305
45,619
26,811
256,166

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 2022

19. Statement of funds (continued)

Statement of funds - prior year (continued)

Violet Reuben
Fund
Wembley Building
Fund
New Burial
Scheme
Office of Senior
Rabbi
Lauderdale Young
Family Fund
Bevis Marks
PR/Defence
Lauderdale
Synagogue
Shamash Fund
Community
Security Trust
Brandon
Endowment -
Bevis Marks Rabbi
Brandon
Endowment -
Events
Lauderdale Road
Rabbi Fund
Security Levy
Building Levy
Haburah
Total of funds		 Balance at
1 November
2020
£
19,676
57,273
-
-
20,533
11,729
-
-
-
-
-
39,698
-
-
558,433
10,550,908		 Income
£
453
1,414
75,048
25,000
-
(11,729)
24,987
9,000
31,072
30,000
30,000
35,536
24,339
59,071
355,633
2,240,113		 Expenditure
£
(573)
-
-
-
(1,804)
-
(24,000)
(7,564)
(31,072)
(30,000)
(30,000)
(41,102)
(24,339)
(24,149)
(231,829)
(2,247,514)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
3,680
11,476
-
-
-
-
-
-
-
-
-
-
-
-
96,970
470,819		 Balance at
31 October
2021
£
23,236
70,163
75,048
25,000
18,729
-
987
1,436
-
-
-
34,132
-
34,922
779,207
11,014,326

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 2022

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.

New Burial Scheme – this was established to allow members to subscribe a small annual sum, in addition to their synagogue membership payment, to ensure that in due course they will be provided a burial plot and a burial service. On the occasion of a funeral there is a transfer from restricted to unrestricted reserves of a specified sum to reflect this.

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.

The Senior Rabbi’s Office – runs projects that are designed to ensure that the Jewish community’s identity is robust and healthy and it spiritual philosophy is clear. This is achieved through educational and ambassadorial projects.

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.

Lauderdale Road Rabbi Fund - To provide for events and programmes organised by the Rabbi of Lauderdale Road Synagogue.

Lauderdale Road Doors Fund - To provide for replacement front doors for Lauderdale Road Synagogue.

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

Transfers between funds included a transfer from Beth Haim Reserve totalling £226,380 to the General Unrestricted Funds. This transfer related to the administrative support the charity has provided to Hebra activities during the year.

Page 37

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

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

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

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
2022
£
-
50,553
2,815,790
7,715
-
-
-
2,874,058		 Restricted
funds
2022
£
-
598,500
-
99,344
-
-
-
697,844		 Unrestricted
designated
funds
2022
£
350,000
2,243,741
-
699,401
(1,213,603)
-
-
2,079,539		 Unrestricted
funds
2022
£
4,725,112
1,607,134
-
507,285
(470,292)
(1,373,124)
(186,916)
4,809,199		 Total
funds
2022
£
5,075,112
4,499,928
2,815,790
1,313,745
(1,683,895)
(1,373,124)
(186,916)
10,460,640

Analysis of net assets between funds - prior year

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
2021
£
-
63,464
2,815,790
-
-
-
-
2,879,254		 Restricted
funds
2021
£
-
779,207
-
-
-
-
-
779,207		 Unrestricted
designated
funds
2021
£
350,000
2,142,374
-
735,168
(1,085,168)
-
-
2,142,374		 Unrestricted
funds
2021
£
4,778,258
1,813,481
-
603,497
(272,432)
(1,438,922)
(270,391)
5,213,491		 Total
funds
2021
£
5,128,258
4,798,526
2,815,790
1,338,665
(1,357,600)
(1,438,922)
(270,391)
11,014,326

Designated funds include within creditors due within one year, deferred income relating to income received in advance for burials and funerals. Cash and investments are held against these liabilities in the event that these are no longer required by members.

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 2022

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

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase in creditors
Increase/(decrease) in provisions
Net cash used in operating activities		 2022
£
(553,686)
75,317
299,115
(197,227)
44,741
326,295
(83,475)
(88,920)		 2021
£
463,418
114,959
(470,818)
(180,108)
(100,196)
195,546
(1,475,083)
(1,452,282)

22. Analysis of cash and cash equivalents

Cash in hand
23.
Analysis of changes in net debt		 2022
£
887,878		 2021
£
868,057
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
November
2021
£
868,057
(93,912)
(1,438,922)
(664,777)		 Cash flows
£
19,821
65,798
-
85,619		 Other non-
cash
changes
At 31 October
2022
£
£
-
887,878
(65,798)
(93,912)
65,798
(1,373,124)
-
(579,158)		 Other non-
cash
changes
At 31 October
2022
£
£
-
887,878
(65,798)
(93,912)
65,798
(1,373,124)
-
(579,158)
(579,158)

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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 2022

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 84 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 2022 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Nursery - Operating Lessee
Within 1 year
Between 1 and 5 years
After more than 5 years
Hendon - Operating Lessee
Within 1 year
Between 1 and 5 years
After more than 5 years		 2022
£
65,000
260,000
153,151
478,151
2022
£
42,000
168,000
101,605
311,605		 2021
£
45,000
180,000
106,027
331,027
2021
£
42,000
168,000
143,605
353,605

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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 2022

25. Related party transactions

As at 31 October 2022, the Spanish and Portuguese Jews’ Synagogue was owed £56,032 (2021: £64,931) 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 2022 and 31 October 2021. Investment income received during the year from those investments amounted to £72,273 (2021: £57,990). During the year £21,000 (2021: £21,000) was charged for administrative services from the Spanish and Portuguese Jews’ Synagogues and this balance was outstanding at year end (2021: £21,000).

Included within note 7 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 £25,000 (2021: £36,305). At 31 October 2022 the Spanish and Portuguese Jews’ Synagogue was owed £56,603 (2021: £61,205) by such associated trusts and entities.

In the year ended 31 October 2022 the Spanish and Portuguese Jews’ Synagogue made a grant of £367 (2021: £5,600) to the Bevis Marks Synagogue Heritage Foundation (an associated entity of the Spanish and Portuguese Jews’ Synagogue with common trustees) and also payments were received totalling £Nil (2021: £6,756), relating to security costs. The total owed by the Bevis Marks Synagogue Heritage Foundation as at 31 October 2022 was £Nil (2021: £2,978).

Trustee S Magnus’s spouse is a trustee of the Brandon Endowment. In the year ended 31 October 2022 £54,500 (2021: £60,000) of grants were made to the Spanish and Portuguese Jews’ Synagogue by the Brandon Endowment.

Trustee S Magnus’s son is a trustee of the S&P Common Investment Fund (see above for details), the S&P Welfare Board and the S&P Dower Society. In the year ended 31 October 2022 the Spanish and Portuguese Jews’ Synagogue had income of £2,800 (2021: £2,800) relating to fees for secretarial and accounting services from the S&P Welfare Board, the Spanish and Portuguese Jews’ Synagogues also made donations to the S&P Welfare Board of £1,901 (2021: £Nil). In the year ended 31 October 2022 the Spanish and Portuguese Jews’ Synagogue had income of £2,200 (2021: £2,200) relating to fees for secretarial and accounting services from the S&P Dower Society.

Trustee A Mendoza is a councillor at the City of Westminster, the Spanish and Portuguese Jews’ Synagogue have properties in the City of Westminster and pay council taxes. In the year ended 31st October 2022 the expenditure was £2,841 (2021: £3,513).

Trustee S Morganstein was a trustee for Bevis Marks Synagogue Trust and during the year the Spanish and Portuguese Jews’ Synagogue received £Nil (2021: £18,140) which was then donated to the Bevis Marks Synagogue Heritage Foundation.

Former trustee E Sopher is a governor of Naima Jewish Preparatory School and during the year the Spanish and Portuguese Jews’ Synagogue paid £Nil (2021: £5,000) in donations.

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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 2022

26. Prior year adjustment

A restatment of the prior year figures has been made to include the life annuity provision. The adjustment impacts provisions, reserves, expenditure and cashflow.

Please see the below table for the effect of the changes on the statement of financial activities and statement of financial position.

Endowment
funds
Restricted
funds
£
£
October 2020 (start of comparative
period)
-
-
Funds as previously reported
2,866,337
558,433
Prior year adjustment
-
-
Restated reserves at 30 October
2020
2,866,337
558,433
October 2021 (comparative period)
-
-
Total income as previously
reported
5,537
355,633
Prior year adjustment
-
-
Restated income at 30 October
2021
5,537
355,633
Total expenditure as previously
reported
-
(231,829)
Prior year adjustment
-
-
Restated expenditure at 30
October 2021
-
(231,829)
Net gains/(losses) on investments
8,417
96,970
Transfers
(1,037)
-
Restated reserves at 30 October
2021
2,879,254
779,207
Restated provisions at 30 October 2020
Total provisions as previously reported at 30th October 2021
Prior year adjustment
Restated provisions at 30 October 2021		 Unrestricted
designated
funds
£
-
1,693,850
-
1,693,850
-
728,167
-
728,167
(415,276)
-
(415,276)
363,233
(227,600)
2,142,374		 Unrestricted
funds
£
-
5,521,029
(88,741)
5,432,288
-
1,150,776
-
1,150,776
(1,610,852)
10,443
(1,600,409)
2,199
228,637
5,213,491
Unrestricted
funds
£
192,093
78,298
270,391		 Total
funds
£
-
10,639,649
(88,741)
10,550,908
-
2,240,113
-
2,240,113
(2,257,957)
10,443
(2,247,514)
470,819
-
11,014,326
Total
funds
£
192,093
78,298
270,391

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 2022

27. Prior year Statement of Financial Activities

**Endowment ** **Restricted ** Designated Unrestricted
Total
funds funds funds funds funds
2021 2021 2021 2021 2021
Note £ £ £ £ £
Income and
endowments:
Donations 4 4,500 242,072 19,140 894,022 1,159,734
Charitable activities 5 - 101,619 664,289 38,571 804,479
Investments 6 1,037 11,942 44,738 122,391 180,108
Other income 7 - - - 95,792 95,792
Total income and
endowments 5,537 355,633 728,167 1,150,776 2,240,113
Expenditure:
Fundraising and
charitable activities 8 - (231,829) (415,276) (1,600,409) (2,247,514)
Total expenditure - (231,829) (415,276) (1,600,409) (2,247,514)
Net(Expenditure) / 5,537 123,804 312,891 (449,633) (7,401)
Income
Net gains/(losses) on 19
investments 8,417 96,970 363,233 2,199 470,819
Net
income/(expenditure) 13,954 220,774 676,124 (447,434) 463,418
Transfers 19 (1,037) - (227,600) 228,637 -
Net movement in funds
before other recognised
gains/(losses) 12,917 220,774 448,524 (218,797) 463,418
Net movement in 12,917 220,774 448,524 (218,797) 463,418
funds
Reconciliation of funds:
Total funds brought 2,866,337 558,433 1,693,850 5,432,288 10,550,908
forward
Total funds carried 2,879,254 779,207 2,142,374 5,213,491 11,014,326
forward

Page 43