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
Page
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:
1. 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
3. 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.
4
## **SEPHARDI KASHRUT AUTHORITY Balance sheet As at 31 October 2021**
|**Note**
**Fixed assets:**
**9**
**Current assets:**
**10**
**Liabilities:**
**11**
**12**
Total unrestricted funds
Creditors: amounts falling due within one year
**Net current (liabilities)/ assets**
**Total net (liabilities)/ assets**
Tangible assets
Debtors
Cash at bank and in hand
**Funds**
General funds
**Total funds**
Unrestricted funds:|**2021**
**£**
**85,306**
**48,885**
**134,191**
**135,624**
**(506)**|**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.
5
**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.
6
## **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|
7
**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|
|||||||
8
**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.
|**9**
**Tangible fixed assets**
**Cost**
At the start of the year
Additions in year
Disposals in year
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|£
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.
9
**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**
|Tangible fixed assets
Net current (liabilities)
**Net (liabilities) at the end of the year**
**Analysis of net assets between funds (prior year)**
Tangible fixed assets
Net current assets
**Net assets at the end of the year**
**Analysis of cash and cash equivalents**
Cash at bank and in hand
**Total cash and cash equivalents**|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).
10