2022-12-31-accounts - Chabad Lubavitch UK

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CHABAD LUBAVITCH UK

CHARITY REGISTRATION NUMBER 227638

ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

LEGAL AND ADMINISTRATIVE INFORMATION

Address: Lubavitch Foundation 107-115 Stamford Hill London N16 5RP Corporate Trustee: Lubavitch (UK) Limited

Central Administration: Rabbi Yitchok Sufrin - Trustee

Elizabeth Heycock – Finance Director (until 19 July 2023) Katherine Eaton – Finance Director (from 19 July 2023) Jon Benjamin – Chief Operating officer

Independent Auditors: Goldwins 75 Maygrove Road West Hampstead London NW6 2EG Principal Bankers: Barclays plc Level 12 1 Churchill Place London E14 5PH

Report of the Trustee for the Year Ending 31 December 2022

Objectives and Activities

Chabad Lubavitch UK’s charitable objects are the advancement and promotion of the Orthodox Jewish religion by providing facilities for the study of and instruction in Jewish religious literature; by the advancement of public education including education in the Orthodox Jewish faith and the provision of ancillary recreational facilities; by the provision of school rooms, meeting rooms and ancillary facilities for persons of the Jewish faith; and by the provision of financial assistance to persons of the Jewish faith who are in need to enable them to observe and perform the rites and practices of the Jewish religion.

The ethos of the Lubavitch movement remains at the core of our activities when delivering these objectives by unconditionally providing a welcoming open door to Jewish people from all walks of life, by making Judaism accessible and relevant by empowering individuals to develop, associate, identify and participate, by caring for and supporting the welfare of Jewish people and communities with devotion and affection no matter the time, place or need and by educating a generation of dedicated and skilled community leaders who live by the words, "Love your fellow as yourself".

Whether through Chabad Houses, activities on university campuses, events throughout the year across the country, educational programmes or through our network of Early Years provision and schools, the charity engages with thousands of beneficiaries of all ages and backgrounds. And in times of personal crisis, our Shluchim (local emissaries) are on hand to support those suffering isolation, loss, bereavement and other challenges.

Public Benefit

The Trustee and its officers have regard to Section 17 of the Charities Act 2011 and the Charity Commission’s guidance on public benefit in delivering the charity’s various activities and consider that the accessible approach when reaching out to beneficiaries across the community reflects and fulfils the charity’s legal obligation to ensure that there is a public benefit in everything that the charity strives to do.

Safeguarding

The charity takes the safeguarding of young people and other vulnerable persons extremely seriously and has, since 2015, worked closely with the NSPCC to develop and implement a comprehensive safeguarding policy and ensure that all relevant persons receive frequent periodic training appropriate to their roles. The policy is kept under constant review, with a major review in consultation with the NSPCC starting in the autumn of 2022. Procedures have been established to ensure that all are fully aware of and implement the policy and understand their responsibilities. New employees are fully vetted and DBS checked and periodic training and vetting checks take place thereafter.

Our thanks

We would like to thank all of our partners, supporters and friends for their continuing encouragement and assistance. We are grateful to all those who have given so much time and commitment to the advancement of the charity and its objectives.

We would also like to thank the professional team and the many members of our community who, due to the outgoing nature of our philosophy, so generously volunteer their time, and we would like to extend our heartfelt appreciation for their loyalty and ongoing support for the charity. As team members, they have often put aside personal needs and worked together to realise some of the charity’s key aspirations

and targets. Without the personal efforts of everyone on the team, none of our many achievements would have been possible.

Achievements and performance: Summary of some of our key activities in 2022

Chabad Houses, present and future

Our network of Chabad houses in towns and cities across the country, serve communities and university campuses and play a vital role in bringing Jewish knowledge and practice to thousands of beneficiaries every year through a range of innovative programmes and activities. These include daily and weekly worship, Sabbath and Festivals services and celebrations, educational programmes and providing practical and pastoral support to communities. Our Shluchim and volunteers rally to the needs of communities and individuals isolated and apart from family and friends, particularly during the Festivals. Pesach, Rosh Hashanah and Chanukah ‘in a Box’ deliveries saw thousands of festive food, educational and spiritual items distributed across the country so that no one needed to miss out on observing and celebrating these important spiritual events.

Rabbi Brackman preparing the Chanukiah, Oxford

As well as those that are formally part of the Chabad Lubavitch UK, we work closely with independent Chabad Centres under the umbrella of the international Chabad Lubavitch movement, providing professional and other support and guidance, and coordinating activities with our colleagues. We are indebted to all of our Shluchim and their families for their selfless commitment to the needs of those they serve, on Jewish festivals, Shabbatot and throughout the year.

Holiday Camps

Our always popular camps continue to attract children in significant numbers. Nearly 2,000 children attended camps with Chabad’s Camp Gan Israel Network around the UK. Many of the places were heavily subsidised, enabling children to enjoy a meaningful summer experience regardless of their parents’ ability to pay and irrespective of their family’s level of religious observance.

This included many children normally eligible for free school meals during term time, meaning that they received a meal that they might not otherwise have received at home during the holidays.

Lubavitch Children's Centre

In recognition of its work in 2022 and in previous years, the Lubavitch Children’s Center in Hackney received a prestigious Gold Award from the Mayor of London’s Healthy Early Years London (HEYL) programme, which supports and recognises achievements in child health, well-being, and development in early years settings. It is the first early childhood centre in Hackney to receive a Gold Award, out of 44 in the Borough, and one of only 38 out of 2,274 across the whole of London.

The Centre is a purpose built, state of the art facility in Stamford Hill, London, providing culturally sensitive child and adult services in a comfortable, welcoming and multi-lingual environment. The Centre offers a one-stop shop of services for children from infancy, and their parents and carers with a range of programmes to promote the physical and emotional wellbeing of families, support for new parents and practical activities and courses such as first aid, health advice, household budgeting, healthy eating and exercise classes. The Centre ensures to support the community with all its immediate needs, including physical (such as immunisations during the measles and polio alerts) and spiritual (Festival/Holiday) programmes.

The nursery provides high quality day-care in a warm and nurturing environment for ages 0 - 4 years old, and care for children with additional needs when necessary. As well as feeding children's minds, the Centre feeds their bodies with Kosher, hot, balanced three-course meals packed with fruit and vegetables.

Some 100 children and family members make use of the Centre on an average weekday. Annually we support over 3,000 families. We are supported in our efforts by Hackney Education and we have strong partnerships with Local Authorities in our area, with the Homerton and Whittington hospitals and with health trusts, the GP confederation, Hackney Ark and local voluntary family support organisations.

We provide some 60 families every week with vouchers for fruit and vegetables and have been awarded

grants to support 80 families with vouchers to purchase food for the Jewish holidays. Help is also provided to families to obtain financial support to cover energy bills as well as a council tax reduction.

Most recently we have started supporting a few refugees from the Ukraine.

As times moves on, we continue to do our best to support the community through whatever struggles they are facing.

CTeen Chabad Teen Network

CTeen provides teens with the opportunities to apply their energy, enthusiasm and abilities to Jewish education and Social Action and, whilst helping others, to learning about themselves and their true potential. Placing education and social action at the forefront of its activities encourages young people to develop social skills, teamworking and engagement with issues that challenge and inspire them. Our CTeen College-Prep programme also offers a wonderful preparation and transition from secondary school to further education. CTeen members are guaranteed to find a ‘home-away-from-home’ when they enrol in a

university featuring Chabad on

Campus , which has student centres at 14 institutions across the country.

The Impact Care Awards recognise the contribution young people can make to addressing real social issues, such as through their work with the Homeless Street Angels

organisation, helping homeless people in Leeds and preparing food packages for the elderly and isolated.

Cteen Israel Tour

CTeen’s first Summer Israel Tour programme was launched in 2022 under the aegis of UJIA, attracting more than 40 participants across the girls’ and boys’ tours. The tours crisscrossed the length and breadth of Israel, meeting people from all walks of like and hearing about the rewards and challenges of living in Eretz Yisroel.

The Kotel, Yad Vashem, Masada, Eilat and the Dead Sea, Mitzpe Ramon, Netanya, a Bedouin camp, donkey and camel riding all featured and the participants from across the spectrum of Jewish observance enjoyed an atmosphere of harmony and respect from which they all learnt so much.

Jewish Learning Institute (JLI)

JLI is the adult education arm of Chabad Lubavitch. Its mission is to make Jewish learning accessible and personally meaningful to every Jew, regardless of background or affiliation. JLI's insightful curricula utilise cutting-edge pedagogic techniques, embracing the ‘multiple intelligence’ model and utilising multimedia and an array of approaches to engage, educate, and inspire all kinds of minds in a dynamic Jewish learning experience .

Financial Review

Income and Expenditure

Income in 2022 reduced to £5,707,830 from £6,017,466 in 2021. During 2022 overall costs increased by around 5% to £5,733,794 from £5,549,709 in 2021. This resulted in a net deficit for the year of £25,964 compared to a surplus the year before of £467,757. Included in the accounts is a depreciation of £479,584.

Principal risks

The directors of the corporate Trustee, working with the Council of Management, have identified the major risks to which the charity may be exposed and have taken the necessary steps to monitor and control these to mitigate any impact they may have on the charity in the future. This includes continuing to keep under review and to update where necessary all of the charity’s governing and policy documents and financial systems.

The Council of Management receives reports from the Chabad Houses, branch locations and other operational areas regarding the services provided and adapts the supply of services responsively to changes in demand.

The charity is reliant on the continued philanthropic support of donors who so generously contribute a significant proportion of our income.

The Council of Management also reviews the performance of the charity's property portfolio. The properties are included in the balance sheet at their estimated fair value. There is always a risk that property values might go down. To mitigate such risk, properties are formally valued approximately every five years on a rolling basis by professional surveyors and are reviewed annually to ensure that the most recent formal valuation is still reasonable.

Governance

As stated above, the directors of the corporate Trustee, together with the Council of Management, have undertaken a thorough and extensive review of the charity’s policies and processes and its satellite branches on matters of internal financial policy, control and risk. Care is taken to ensure that published financial statements comply with statute and accounting standards and the Charities SORP (FRS 102).

The Council oversees the relationship with the external auditor including approval of the audit plan and scope of the audit, annual assessment of the auditor's independence and review of the level of fees payable for non-audit services.

Reserves policy

Reserves are needed to bridge any funding gaps between commitments on educational and outreach activities and receiving resources through voluntary donations and grants. The Trustee has established a target level of reserves to protect the organisation and its charitable programmes by providing time to adjust to changing financial circumstances. It is considered that the minimum level of reserves as at 31 December 2022 would be £750,000 based on a sense of the likely impact on programmes that might be caused by a decline in income or an inability to reduce expenditure in the immediate short term. The unrestricted reserve has passed this value, and the trustees will monitor cash resources to consider investment in an income producing endowment to reduce long term dependence on donations and grants.

Looking to the future

The Board of Directors and Council of Management are constantly looking at ways to develop and enhance the charity’s operations and the support it provides to Chabad branches and activities across the country. This includes identifying areas that are currently underserved with a view to opening branches in those locations, whilst also exploring ways to increase the sharing of resources and expertise among branches and affiliated organisations. This will help control overheads whilst providing more practical support to branches and avoiding areas of overlap.

Legal and administrative details

The charity's financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statement below, and comply with applicable laws and the Charities SORP (FRS 102).

This trustee’s report has been prepared in accordance with Part 8 of the Charities Act 2011.

Structure, governance and Management Statement of Trustees' responsibilities

Chabad Lubavitch UK is governed by a Declaration of Trust dated 17[th] October 2018, which superseded a Declaration of Trust dated 21[st] January 1959 (as amended).

Trustee: The charity is governed by the Board of Directors of the corporate trustee Lubavitch (UK) Limited (Company No. 02932344), which is responsible for setting the charity's strategy, for ensuring good governance and that it fulfils its objectives of delivering public benefit.

The directors of the corporate trustee are:

Rabbi Y Angyalfi
Rabbi P Efune
Rabbi I H Sufrin
Mr Michael Rabin
Mr Stephen Chevern

Organisation: The Board of Directors of the Trustee convene periodically, but a minimum of four times per year.

The Board of Directors is assisted by a Council of Management, which meets approximately every three weeks. Three new members joined the Council of Management during the year, signalling its ongoing commitment to enhance further its members’ knowledge and experience and to strengthen its connections to Chabad activities around the country. Members during the year were:

Rabbi Y Angyalfi
Rabbi S Arkush
Rabbi N Dubov
Rabbi P Efune
Rabbi M Junik
Rabbi D Katz
Rabbi M Korer

Rabbi S Lew
Rabbi Y Pink
Rabbi L Sudak
Rabbi B Sudak
Rabbi A M Sufrin
Rabbi I H Sufrin

The Charities Act 2011 requires the trustees to prepare accounts for each financial year which give a true and fair view of its financial activities during the year and of its financial position at the end of the year. In preparing these accounts, the trustees should follow best practices and;

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles of the Charity SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable UK Accounting Standards have been followed; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

Remuneration of trustees and senior management: The corporate trustee and its directors are not remunerated for their services as trustees of the charity. Where directors of the corporate trustee or members of their families carry out other roles in their capacities as rabbis/teachers (all of which roles existed before they became directors), they are remunerated at appropriate market rates but decisions about remuneration are only made after each has recused himself from the decision-making process, which is undertaken by the Council of Management. This arrangement has been endorsed by way of a Scheme approved by the Charity Commission. Transactions with related parties are disclosed in the notes to the financial statements. Remuneration of other senior personnel is similarly determined by reference to market rates and by the directors of the corporate trustee in conjunction with the Council of Management, subject to taking all necessary steps to avoid any actual or perceived conflicts of interest.

By order and on behalf of the Corporate Trustee, Lubavitch (UK) Limited

Rabbi I H Sufrin (Director)

16 October 2023

INDEPENDENT AUDITORʼS REPORT TO THE TRUSTEE OF CHABAD LUBAVITCH UK

Opinion

We have audited the financial statements of Chabad Lubavitch UK (the ‘Charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Charities Act 2011.

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 FRCʼs 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 charity'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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustee is responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

INDEPENDENT AUDITORʼS REPORT TO THE TRUSTEE OF CHABAD LUBAVITCH UK

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

sufficient accounting records have not been kept;
the financial statements are not in agreement with the accounting records and returns; or
we have not obtained all the information and explanations necessary for the purposes of our audit.

Responsibilities of the trustee

As explained more fully in the trustee’s responsibilities statement in the trustee’s report, the trustee is 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 it determines 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 trustee is responsible for assessing the Charity’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 trustee either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

INDEPENDENT AUDITORʼS REPORT TO THE TRUSTEE OF CHABAD LUBAVITCH UK

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

This report is made solely to the Charity’s trustee, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustee 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 Charity and the Charity’s trustee as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………… Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG

16 October 2023

Goldwins Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

CHABAD LUBAVITCH UK Statement of financial activities

(incorporating an income and expenditure account) For the year ended 31 December 2022

Endowment funds Note £ Income from: Donations and legacies 3 - Grants 3 - Charitable activities: 4 Outreach and Education - Other trading activities: Functions and events 5 - Investment activities 6 - Other income 7 - Total income - Expenditure on: Raising funds - Charitable activities: Outreach and Education - Total expenditure 8 - Net income / (expenditure) for the year - Transfers between funds - Net income / (expenditure) before other recognised gains and losses - Gains on revaluation of fixed assets 12 - Net movement in funds - Reconciliation of funds: 17 Total funds brought forward 70,000 Total funds carried forward 70,000	Unrestricted funds £ 3,236,888 39,484 994,442 40,708 45,248 224,340	Restricted funds £ 8,600 997,407 120,713 - - -	2022 Total funds £ 3,245,488 1,036,891 1,115,155 40,708 45,248 224,340	2021 Total funds £ 3,331,542 1,226,550 1,125,849 39,011 43,069 251,445
-	4,581,110	1,126,720	5,707,830	6,017,466
- -	13,256 4,579,624	- 1,140,914	13,256 5,720,538	52,499 5,497,210
-	4,592,880	1,140,914	5,733,794	5,549,709
- -	(11,770) -	(14,194) -	(25,964) -	467,757 -
- -	(11,770) 539,761	(14,194) -	(25,964) 539,761	467,757 3,705,804
- 70,000	527,991 19,243,895	(14,194) 14,194	513,797 19,328,089	4,173,561 15,154,528
70,000	19,771,886	-	19,841,886	19,328,089

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above.

The attached notes form part of these financial statements.

CHABAD LUBAVITCH UK Balance sheet As at 31 December 2022

2022 £ 391,713 1,423,734	2022 £ 20,171,292 229,665	2021 £ 388,563 1,628,266	2021 £ 19,966,568 342,998
1,815,447 (1,585,782)		2,016,829 (1,673,831)
-		14,194
	20,400,957 (559,071)		20,309,566 (981,477)

	19,841,886		19,328,089
	70,000 - 19,771,886		70,000 14,194 19,243,895
13,808,531 5,963,355		13,500,712 5,743,183

	19,841,886		19,328,089

	On behalf of Lubavitch (UK) Limited Rabbi I H Sufrin

The attached notes form part of the financial statements.

CHABAD LUBAVITCH UK Statement of cash flows For the year ended 31 December 2022

2022 £ (144,817)	2022 372,261 (144,817) (433,537)	2021 88,985	2021 £ 622,027 88,985 25,709
(433,537)		25,709

	(206,093) 1,548,334		736,721 811,613
	1,342,241		1,548,334

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

1 Accounting policies

a) Basis of preparation

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 - effective 1 January 2015) - (Charities SORP FRS 102) and the Charities Act 2011.

The charity 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 or note.

b) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

c) Income recognition

Income from charitable and trading activities is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

d) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

1 Accounting policies (continued)

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

f) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated

funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used

for particular areas of the charity’s work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accrual basis and includes attributable VAT where it cannot be recovered.
h) Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 8.

i) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

j) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Freehold property and improvements 2% straight line Fixtures and fittings 20% reducing balance Computer equipment 20% reducing balance Motor vehicles 25% on reducing balance

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from revaluation reserve to the general reserve.

k) Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

1 Accounting policies (continued)

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash 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.

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

p) Pensions

The Charity finished operating its defined contribution scheme during 2015 on the retirement by the final member and the change in legislation to "Opt-in". The assets of the scheme are held separately from those of the Charity being invested with an insurance company. Any contributions payable for the year are charged in the statement of financial activities.

CHABAD LUBAVITCH UK

Notes to the financial statements

For the year ended 31 December 2022

2 Detailed comparatives for the statement of financial activities 2021 Endowment £ Income from: Donations and legacies - Grants - Charitable activities: Outreach and Education - Other trading activities Functions and events - Investment activities - Other income - Total income - Expenditure on: Raising funds - Charitable activities: - Total expenditure - Net income / expenditure - Transfers between funds - Net income / (expenditure) before other recognised gains and losses - Gains / (losses) on revaluation of fixed assets - Net movement in funds - Reconciliation of funds: Total funds brought forward 70,000 Total funds carried forward 70,000	2021 £ 3,301,493 226,797 1,000,761 39,011 43,069 251,445 Unrestricted	2021 £ 30,049 999,753 125,088 - - - Restricted	2021 Total £ 3,331,542 1,226,550 1,125,849 39,011 43,069 251,445
-	4,862,576	1,154,890	6,017,466
- -	52,499 4,356,514	- 1,140,696	52,499 5,497,210
-	4,409,013	1,140,696	5,549,709
- -	453,563 -	14,194 -	467,757 -
- -	453,563 3,705,804	14,194 -	467,757 3,705,804
- 70,000	4,159,367 15,084,528	14,194 -	4,173,561 15,154,528
70,000	19,243,895	14,194	19,328,089

CHABAD LUBAVITCH UK

Notes to the financial statements For the year ended 31 December 2022

3 Income from donations and legacies

3 Income from donations and legacies
2022 Total £ £ £ Donations and legacies 3,236,888 8,600 3,245,488 Grants 39,484 997,407 1,036,891 Total income 3,276,372 1,006,007 4,282,379 Included in the grants are £837,475 received from Hackney Learning Trust (2021: £ 703,080). 4 Income from charitable activities 2022 Unrestricted Total £ £ £ Outreach and Education 994,442 120,713 1,115,155 Total income from charitable activities 994,442 120,713 1,115,155 5 Income from other trading activities 2022 Unrestricted Total £ £ £ Functions and events 40,708 - 40,708 Total income from other trading activities 40,708 - 40,708 6 Income from investments 2022 Unrestricted Total £ £ £ Rental income received 45,248 - 45,248 45,248 - 45,248 7 Other income 2022 Unrestricted Total £ £ £ Coronavirus job retention scheme - - - Insurance claim for premises 224,340 - 224,340 224,340 - 224,340 Restricted Unrestricted Restricted Restricted Restricted Restricted	£ 3,236,888 39,484 Unrestricted	£ 8,600 997,407 Restricted	2022 Total £ 3,245,488 1,036,891	2021 Total £ 3,331,542 1,226,550
	3,276,372	1,006,007	4,282,379	4,558,092
				2021 Total £ 1,125,849
	994,442	120,713	1,115,155	1,125,849
	Unrestricted £ 40,708	£ - Restricted	2022 Total £ 40,708	2021 Total £ 39,011
	40,708	-	40,708	39,011
	Unrestricted £ 45,248	£ - Restricted	2022 Total £ 45,248	2021 Total £ 43,069
	45,248	-	45,248	43,069
	Unrestricted £ - 224,340	£ - - Restricted	2022 Total £ - 224,340	2021 Total £ 251,445 -
	224,340	-	224,340	251,445

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

8 Analysis of expenditure

Analysis of expenditure
Basis of allocation Outreach and education Direct Legal & Professional Direct Accountancy fees Direct Auditor's remuneration Direct Wages Staff time Other staff costs Direct Donations paid Direct Book & shop supplies Direct Telephone Staff time Printing, postage & stationery Staff time Advertising Staff time Travel and Motor expenses Staff time Premises costs Staff time Computer maintenance Staff time Miscellaneous Staff time Bank charges Staff time Bank interest Staff time Depreciation Staff time Support costs Governance costs Total expenditure 2022 Total expenditure 2021	Support cost £ - 56,274 18,849 - 82,279 - - - 28,040 75,527 - - - 28,888 - 34,255 42,147 - 366,259 (366,259) - - 311,550	Governance costs £ - 2,463 - 28,800 30,707 - - - - - - - - - - - - - 61,970 - (61,970) - 27,158	Raising Funds £ 13,256 - - - - - - - - - - - - - - - - - 13,256 - - 13,256 52,499	Charitable activities £ 1,722,699 - - 1,835,136 143,593 7,711 21,606 - - 8,541 125,132 944,882 - 3,155 - - 479,854 5,292,309 366,259 61,970 5,720,538 5,158,502	2022 Total £ 1,735,955 58,737 18,849 28,800 1,948,122 143,593 7,711 21,606 28,040 75,527 8,541 125,132 944,882 28,888 3,155 34,255 42,147 479,854 5,733,794 - - 5,733,794	2021 Total £ 1,380,032 71,109 4,820 24,000 2,135,225 73,084 230,564 26,571 34,011 62,377 5,728 120,920 851,043 57,476 2,701 23,049 43,331 403,668
						5,549,709
						5,549,709

Donations were paid to individuals and other organisations during the year to support education and other charitable activities.

Of the total expenditure, £4,592,880 was unrestricted (2021: £4,409,013) and £1,140,914 was restricted (2021: £1,140,696).

Support and governance costs are allocated based on projected time spent by employees.

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

9 Net income / (expenditure) for the year

This is stated after charging / (crediting): Depreciation Auditor's remuneration Audit (net)	2022 £ 479,854 23,500	2021 £ 403,668 22,000

10 Analysis of staff costs, trustee remuneration and expenses, and key management personnel costs

Staff costs were as follows: Salaries and wages Social security costs Pension contributions	2022 £ 1,803,054 87,322 57,746	2021 £ 2,014,106 69,147 51,972
	1,948,122	2,135,225

The following number of employees received employee benefits (excluding employer pension) during the year between:

£60,000 - £69,999 £70,000 - £79,999	2022 No. 1 1	2021 No. 1 1

The total employee benefits including pension contributions of the key management personnel were £82,279 (2021: £122,281).

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Raising funds Charitable activities Support Governance	2022 No. - 118 8 4	2021 No. 2 136 8 3
	130	149

The charity also acknowledges the support of the volunteers who were used in day-to-day charitable activities and who helped the charity to achieve its charitable objectives.

11 Taxation

The charity is exempt from tax as all its income is charitable and is applied for charitable purposes.

CHABAD LUBAVITCH UK

Notes to the financial statements For the year ended 31 December 2022

12 Tangible fixed assets

Tangible fixed assets
Cost At the start of the year Additions in year Disposals in year Revaluation At the end of the year Depreciation At the start of the year Charge for the year Eliminated on disposal At the end of the year Net book value At the end of the year At the start of the year	£ 22,632,421 - - 539,761 Freehold property	£ 500,000 - - - Leasehold property	£ 2,588,105 43,645 - - Improvement to premises	£ 1,121,782 35,965 - - Fixtures, fittings & Equipment	£ 189,257 65,207 - - Motor vehicles	Total £ 27,031,565 144,817 - 539,761
	23,172,182	500,000	2,631,750	1,157,747	254,464	27,716,143
	5,014,005 352,368 -	349,329 23,809 -	472,060 52,635 -	1,095,778 20,882 -	133,825 30,160 -	7,064,997 479,854 -
	5,366,373	373,138	524,695	1,116,660	163,985	7,544,851
	17,805,809	126,862	2,107,055	41,087	90,479	20,171,292
	17,618,416	150,671	2,116,045	26,004	55,432	19,966,568

Land with a value of £ 4,770,899 (2021: £4,770,899) is included within freehold property and is not depreciated. Professional and other trustee valuations were carried out so that freehold property is stated at fair value at the year end. All of the above assets are used for charitable purposes.

13 Debtors

Debtors
Trade debtors Other debtors Creditors: amounts falling due within one year Bank overdrafts Bank loans Trade creditors Taxation and social security Other creditors Accruals	2022 £ 203,304 188,409	2021 £ 178,862 209,701
	391,713	388,563
	2022 £ 81,493 80,672 75,334 223,629 1,014,162 110,492	2021 £ 79,932 90,242 142,088 215,100 1,049,494 96,975
	1,585,782	1,673,831

14 Creditors: amounts falling due within one year

15 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
Bank loans	2022 £ 559,071	2021 £ 981,477
	559,071	981,477

Total bank loans of £639,743 (2021: £1,1071,719) are secured against the following properties: 135 Clapton Common, London E5 9AE 75a Cowley Rd, Oxford OX4 1HR

168 Shadwell Lane Leeds LS17 8AD

CHABAD LUBAVITCH UK

Notes to the financial statements For the year ended 31 December 2022

16 Analysis of net assets between funds 2022 Tangible fixed assets Net current assets / (liabilities) Long term liabilities Net assets at the end of the year Analysis of net assets between funds 2021 Tangible fixed assets Net current assets Long term liabilities Net assets at the end of the year 17 Movements in funds 2022 £ Unrestricted funds: Revaluation fund 13,500,712 General funds 5,743,183 Total unrestricted funds 19,243,895 Restricted funds: Foundation 14,194 Security grants fund - Children Centre - Nursery - Edgware - Total restricted funds 14,194 70,000 Total funds 19,328,089 Funds at the start of the year Permanent endowment funds	Revaluation fund 13,808,531 - -	Endowment fund - 70,000 -	Unrestricted funds £ 6,362,761 159,665 (559,071)	Restricted funds £ - - -	2022 Total funds £ 20,171,292 229,665 (559,071)
	13,808,531	70,000	5,963,355	-	19,841,886
	Revaluation fund 13,500,712 - -	Endowment fund - 70,000 -	Unrestricted £ 6,451,662 272,998 (981,477)	Restricted £ 14,194 - -	2020 Total funds £ 19,966,568 342,998 (981,477)
	13,500,712	70,000	5,743,183	14,194	19,328,089
	£ - 4,581,110 Income	£ - (4,592,880) Expenditure	Transfers £ (231,942) 231,942	£ 539,761 - Revaluation	£ 13,808,531 5,963,355 Funds at the end of the year
19,243,895	4,581,110	(4,592,880)	-	539,761	19,771,886
14,194 - - - -	8,600 159,931 613,661 223,815 120,713	(22,794) (159,931) (613,661) (223,815) (120,713)	- - - - -	- - - - -	- - - - -
14,194	1,126,720	(1,140,914)	-	-	-

70,000	-	-	-	-	70,000

19,328,089	5,707,830	(5,733,794)	-	539,761	19,841,886

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

Movements in funds 2021

Movements in funds 2021
Unrestricted funds: Unrestricted revaluation reserve General funds Total unrestricted funds Restricted funds: Foundation Security grants fund Children Centre Nursery Edgware Total restricted funds Total funds Permanent endowment funds	£ 10,026,850 5,057,678 Funds at the start of the year	£ - 4,862,576 Income	£ - (4,409,013) Expenditure	Transfers £ (231,942) 231,942	£ 3,705,804 - Revaluation	£ 13,500,712 5,743,183 Funds at the end of the year
	15,084,528	4,862,576	(4,409,013)	-	3,705,804	19,243,895
	- - -	30,049 296,673 571,140 131,940 125,088	(15,855) (296,673) (571,140) (131,940) (125,088)	- - -	- - -	14,194 - - - -
	-	1,154,890	(1,140,696)	-	-	14,194
	70,000	-	-	-	-	70,000
	15,154,528	6,017,466	(5,549,709)	-	3,705,804	19,328,089

Restricted Funds:

There were no restricted funds balances to be carried forward at the yearend.

Permanent endowment funds:

L Steinberg endowment- The gift was made to the charity on condition that it is held as a permanent endowment, the income from which is freely available to fund the activities of the charity.

18 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for the reporting period (as per the statement of financial activities) Depreciation (Increase)/ decrease in debtors Increase/ (decrease) in creditors Net cash provided by / (used in) operating activities	2022 £ (25,964) 479,854 (3,150) (78,479)	2021 £ 467,757 403,668 (32,936) (216,462)
	372,261	622,027

CHABAD LUBAVITCH UK Notes to the financial statements For the year ended 31 December 2022

£ 1,628,266 (79,932) At 1 January 2022	Cash flows £ (204,532) (1,561)	Other changes £ - -	£ 1,423,734 (81,493) At 31 December 2022
1,548,334	(206,093)	-	1,342,241
£ 955,090 (143,477) At 1 January 2021	Cash flows £ 673,176 63,545	Other changes £ - -	£ 1,628,266 (79,932) At 31 December 2021
811,613	736,721	-	1,548,334

20 Related party transactions

As well as employing the directors of the corporate trustee, the charity also employed individuals who were related to the directors of the corporate trustee. Salaries paid to these individuals were as follows:

			Annual teaching
Name	Job role	Relationship	salary	Loan to Charity
			£	£
Familyof Rabbi I H Sufrin
Rabbi I H Sufrin	Rabbi		4,800	97,000
Familyof Rabbi Y Angyalfi
Rabbi Y Angyalfi	Rabbi		24,148
Mrs S Angyalfi		Wife	24,148
Familyof Rabbi P Efune
Rabbi P Efune	Rabbi		-	27,500

21 Corporate Trustee

The charity is governed by the board of directors of the corporate trustee Lubavitch (UK) Limited (a company limited by guarantee incorporated in England and Wales under company number 02932344), which is responsible for setting the charity's strategy, for ensuring good governance and that it fulfils its objectives of delivering public benefit. The directors of the corporate trustee during the reporting period were:

Rabbi Y Angyalfi
Rabbi P Efune
Rabbi I H Sufrin
Mr S Chevern
Mr M Rabin