2021-10-31-accounts - Sephardi Kashrut Authority

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REGISTERED CHARITY NUMBER: 259337

SEPHARDI KASHRUT AUTHORITY

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021

SEPHARDI KASHRUT AUTHORITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021

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Report of the Trustees Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements

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SEPHARDI KASHRUT AUTHORITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021

The trustees present their report with the financial statements of the charity for the year ended 31 October 2021. The trustees have adopted the provisions of 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Sephardi Kashrut Authority aims to uphold Jewish religious requirements by ensuring the due supervision (where such supervision is sought) of Kashrut in connection with food dispensed or manufactured.

Significant activities

In relation to these objectives, the charity has continued to certify and supervise a range of restaurants, bakeries, hotels, caterers and food manufacturers in compliance with Kashrut.

Public benefit

The trustees have complied with their duty to have due regard to the public benefit guidance published by the Charity Commission in exercising their powers or duties.

Grantmaking

A grant made to an outside body must be matched by an equivalent grant to the Spanish & Portuguese Jews' Congregation. Grants to outside bodies must be for the educational promotion of Kashrut (Jewish dietary laws).

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year, the charity has provided supervision to approximately 30 establishments and businesses. This supervision ensures the continued availability of certified Kashrut compliant food to the Jewish community.

Whilst providing this supervision, the charity has also successfully maintained adequate reserves to ensure the continued provision of its' charitable services for the foreseeable future.

FINANCIAL REVIEW

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are free reserves of the charity, at a level to cover administration costs for a period of at least eighteen months.

There are no restrictions on the charity's power to invest.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Sephardi Kashrut Authority was established under and by the Authority of the Hakham and his Ecclesiastical Authority. Its constitution was adopted on 15th July 1969 and constitutes an unincorporated charity.

Recruitment and appointment of new trustees

Officers and committee members are recruited based on their knowledge, skills and adherence to the charity's objectives.

Page 1

SEPHARDI KASHRUT AUTHORITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Officers and committee

The Chairman is appointed for a period of three years and he may put himself forward for re-appointment. The Board of Elders, the ruling body of the Spanish and Portuguese Jews' Congregation, must approve the Chairman's appointment. Members of the Authority who are not ex officio or co-opted are elected for a period of two years, by the Yehidim (members) of the Spanish and Portuguese Jews' Congregation. The Officers meet at least four times a year.

The officers and committee members give of their time voluntarily, and no remuneration or expenses were paid to them in the year.

Policy decisions are made by the executive committee who instruct the executive director to put these into action.

The charity is administered on a day-to-day basis by its director of licencing.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

259337

Principal address

2 Ashworth Road London W91JY

Trustees

Mrs S Kandel (resigned 26.3.21) R J Kandel A Tricot (Honorary Chairman) D Kessler (resigned 26.3.21) J Cohen J Bekhor (Honorary Treasurer) (resigned 26.3.21) J M Silberstein (Honorary Treasurer) (appointed 26.3.21) A J Aaron (appointed 26.3.21) SC Simon (appointed 26.3.21)

Independent Examiner Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG

Director of licencing

Aaron Isaac (resigned 13.6.22) David Neifeld (appointed 15.7.22)

Approved by order of the board of trustees on 28 July 2022 and signed on its behalf by:

A Tricot (Honorary Chairman) - Trustee

Page 2

SEPHARDI KASHRUT AUTHORITY

Independent examiner's report to the trustees of Sephardi 'Kashrut Authority

I report to the trustees on my examination of the accounts of Sephardi 'Kashrut Authority for the year ended 31 October 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘t rue and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants

75 Maygrove Road West Hampstead London NW6 2EG

28 July 2022

Page 3

SEPHARDI KASHRUT AUTHORITY

Statement of financial activities

(incorporating an income and expenditure account)

For the year ended 31 October 2021

Note Income from: Donations Charitable activities: 3 Supervision Investment income 4 Other income Total income Expenditure on: Charitable activities: Education 5 Total expenditure Transfers between funds Net movement in funds 6 Reconciliation of funds: Total funds brought forward Total funds carried forward Net (expenditure)/income / for the year	Unrestricted funds £ 10 163,300 5 14,753 178,068 182,058 182,058 - (3,990) 3,484 (506) (3,990)	2021 Total funds £ 10 163,300 5 14,753 178,068 182,058 182,058 - (3,990) 3,484 (506) (3,990)	2020 Total funds £ - 129,159 81 19,944
			149,184
			241,598
			241,598
			- (92,414)
			(92,414) 95,898
			3,484

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.

SEPHARDI KASHRUT AUTHORITY Balance sheet As at 31 October 2021

2021 £ 927	2020 £ 42,293 54,327	2020 £ 1,577
927 (1,433)		1,577 1,907
	96,620 94,713
	3,484
(506)		3,484
(506)		3,484

(506)		3,484

The financial statements were approved by the Board of Trustees and authorised for issue on 28 July 2022 and were signed on its behalf by:

A Tricot ( Honorary Chairman) Trustee

J M Siberstein ( Honorary Treasurer) Trustee

The attached notes form part of the financial statements.

SEPHARDI KASHRUT AUTHORITY Notes to the financial statements For the year ended 31 October 2021

1 Accounting policies

a) Basis of preparation

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ’Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ’The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

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

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

d) Expenditure

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources

e) Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings 25% on cost Computer equipment 33.3% on cost

f) 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.

g) 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.

h) 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.

i) Hire purchase and leasing commitments Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

j) Pension costs and other post-retirement benefits

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the year to which they relate.

SEPHARDI KASHRUT AUTHORITY

Notes to the financial statements For the year ended 31 October 2021

2 Detailed comparatives for the statement of financial activities Income from: Charitable activities: Supervision Investment income Other income Total income Expenditure on: Charitable activities: Supervision Total expenditure Transfers between funds Total funds brought forward Total funds carried forward 3 Income from charitable activities £ Supervision 163,300 163,300 4 Investment income Unrestricted £ Interest 5 Total investment income 5 Unrestricted Net expenditure/ income Net movement in funds	£ - - £ - - Restricted Restricted	2020 funds £ 129,159 81 19,944 149,184 241,598 241,598 (92,414) - (92,414) 95,898 3,484 2021 Total £ 163,300 163,300 2021 Total £ 5 5 Unrestricted	2020 Total funds £ 129,159 81 19,944
			149,184
			241,598
			241,598
			(92,414) -
			(92,414) 95,898
			3,484
			2020 Total £ 129,159
			129,159
			2020 Total £ 81
			81

SEPHARDI KASHRUT AUTHORITY Notes to the financial statements For the year ended 31 October 2021

5 Analysis of expenditure

Charitable activities Wages Employer’s national insurance Pensions Freelance staff Training Bad debts Advertising Travel and office expenses Sundries Support costs Wages Employer’s national insurance Pensions Travelling Depreciation of computer equipment Bank charges Telephone and internet Printing, postage & stationery Computer expenses & software Payroll administration Legal and professional fees Independent examiner’s fee Total expenditure 2021 Total expenditure 2020		Charitable activities	Charitable activities	2021 Total £ 86,509 4,186 807 22,757 115 (8,570) 164 4,649 2,613 53,850 4,512 893 - 650 114 2,446 2,045 443 955 - 2,920 182,058 -	2020 Total £ 50,496 2,245 257 42,157 320 5,388 990 1,184 1,170 89,650 8,233 1,446 3,374 376 349 2,138 1,523 692 26,250 1,380 1,980

			£ 86,509 4,186 807 22,757 115 (8,570) 164 4,649 2,613 53,850 4,512 893 - 650 114 2,446 2,045 443 955 - 2,920 - 182,058 -
					241,598

SEPHARDI KASHRUT AUTHORITY Notes to the financial statements For the year ended 31 October 2021

6 Net income / (expenditure) for the year

This is stated after charging / (crediting): Depreciation Independent examination	2021 £ 650 2,920	2020 £ 376 1,980

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

There were no trustees’ remuneration or other benefits for the year ended 31 October 2021 nor for the year ended 31 October 2020.

There were no trustees’ expenses paid for the year ended 31 October 2021 nor for the year ended 31 October 2020.

Staff costs were as follows: Salaries and wages Social security costs Employer’s contribution to defined contribution pension schemes	2021 £ 140,359 8,698 1,700	2020 £ 140,146 10,478 1,703
	150,757	152,327

The trustees did not receive any remuneration during the year (2020: Nil).

The total employee benefits including pension contributions of the key management personnel were £38,247.

No employees received emoluments in excess of £60,000.

Staff numbers

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

Supervision	2021 No. 13	2020 No. 9
	13	9

8 Taxation

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

£ 728 - - Fixtures and fittings	£ 7,126 - - Computer equipment	Total £ 7,854 - -
728	7,126	7,854
728 � -	5,549 650 -	6,277 650 -
728	6,199	6,927
-	927	927
-	1,577	1,577

All of the above assets are used for charitable purposes.

SEPHARDI KASHRUT AUTHORITY Notes to the financial statements For the year ended 31 October 2021

10 Debtors

Trade debtors Other debtors Creditors: amounts falling due within one year Trade creditors Taxation and social security Other creditors	2021 £ 50,337 34,969	2020 £ 22,349 19,944
	85,306	42,293
	2021 £ 33,243 5,692 96,689	2020 £ 30,350 2,107 62,256
	135,624	94,713

11 Creditors: amounts falling due within one year

12 Analysis of net assets between funds

General unrestricted £ 927 (1,433)	Designated £ - -	Restricted £ - -	Total funds £ 927 (1,433)
(506)	-	-	(506)
General unrestricted £ 1,577 1,907	Designated £ - -	Restricted £ - -	Total funds £ 1,577 1,907
3,484	-	-	3,484
£ 54,327 At 1 Nov 2020	Cash flows £ (5,442)	£ - Other changes	£ 48,885 At 31 Oct 2021
54,327	(5,442)	-	48,885

12a Analysis of net assets between funds (prior year)

13 Analysis of cash and cash equivalents

14 Legal status of the charity

The charity is an unincorporated charitable trust.

15 Related party transactions

At the year end the charity owed the Spanish and Portuguese Jews’ Congregation £70,237 (2020 - £48,437).