Charity Registratlon No. 283295 Company Règlltratlon No. 01567651 (England and Wales) SHIREHALL TZEDAKA COMPANY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 SHIREHALL TZEDAKA COMPANY LIMITED LEGALAND ADMINISTRATIVE INFORMATION Govomorn MrDJay MrPJay MrlSJay Socretary MrDJay Charfty number 283295 Company number 01567651 Principal address Fofram8 House, 2nd Floor 35-37 Brent Street London NW4 2EF Registsred office Foframe House, 2nd Hoor 3>37 Brent Street Londo NW4 2EF Auditor Lopian Gross Bamett & Co 1st Floor. Cloister House Riverside New Bailey Street Manchester M3 SFS SHIREHALL TZEDAKA COMPANY LIMITED CONTENTS Pago Govemors. report ststement of governors, iesponsibiif(iès Independent auditorfs report Statement of financial activf(ies Balance sheet 10-11 Stslement of ¢a$h Ilows 12 Notes to the finanaal slaternents 13-22 SHIREHALL TZEDAKA COMPANY LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020 Th8 governors present their report and fingndal Statements for the year ended 31 Decernber 2020. The finanaal statements h8ve been prepa￿d in accordance wth the accounting poliaes set out in note 1 to the financial statements and comply with the Cornpanie5 Ad 2006 and "Accounting antj Reportsng by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in thé UK and Republic of Ireland IFRS 102). las amended foi accounting periods commencing from 1 January 20191 Oblectlvo$ and 8¢tlvities The charity's objects ar8 to distribute lunds to religious, educational and similar charities lor the advancement of r8ligion in accordance with Ihe Orthodox Jewish faith and the relief of poverty and other chaiilable p￿￿oSe$ for Ihe public benefrt. The poliaes adopted in furtherance of these objects are to identsfy Orthodox Jewish charities which cary out activrtie5 such as prowding Orthodox Jewish education and other activrties which advance religion in accordance with the Orthodox Jewish faith 01 which relieve poverty and there has been Flo change in these during the year. The gov8mors confirm that they had regard to guidance CCTrntained in the Charity Commission general guidance on public benefit when reviewing the charity's aims and objectives and in planning luture activities and setting the grant making policy fat the yeai. The tharity's income is generated frorn investment income and th8rltable donations and the available income was dlslribuled in the year. The main 51rategy for the abc*ve airns and objectives is lo maintain a stable )low of donations going to worthy causes in the Jewish community. The governors also aim to expand the charity's investment portfolio whenever the opportunity arises. No particular criteria or measures are used to assess success in achieving these aims and objectives. Th8 only activitie5 undertaken hav8 bèèn monitoring thè charty's investment income and making distributions to a number of charities in a¢¢ord8n¢e wilh the above objectives and policies. Achigv•ments and performance The charity has continued to distribute funds lo oth8T chaiilies during the year. Nearly all of the available incoming resources, after the charity mel loan payment and similar obligations, were distributed beneffitting the recipient organisation accofdingly. Any remaining cash reserves will be put towards fiJtur8 inv8stment purposes. The ch8ritVs investment properties generated n8t cash r8tUrn5 in line with 8xpectsb"ons. The charity dislribLrted dose to the maximum available. At the year end the d)arity held four UK properties as investrnents which were valued at £10,900,000 and generated gross rental In￿Me of £704.142. SHIREHALL TZEDAKA COMPANY LIMITED GOVERNORS, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Financial rnvl8w The charity's funds for dist￿bUl10n deiived from donations re￿iVed and propety investment income from its own property. The total of net incoming resources was £531,890 which left a 5uipIus Df £45,410 after charitable donations of £486,480. The ¢harity repaid capital of £97,777 on loans secured on its iTrvestment properties. The fair value of investment properties increased by £196,050. Thè finanual position of the charity at the ènd of the year is set out on page 8. with closing funds of £7,022.702. No significant event affected the ffinancial performance and finatsci81 position of thè d)aiity duiing the period. Nor have any been identified that are lik8ly to do 50 currenuy or in the future. The govemors have identified the principal risks and uncartaintiès facing the ch81ty 8nd have 8150 adopted plans and strategies to manag& th8s8 as follows.. derjine In values of investment properties, managed by investing in good qualty buildings wf(h reliable tènants as confirmed by the independtrnt valuations obtsined on purchase and by own regular monitoring fall in income.. letting only to reliable tenants as above,. maintaining informal re8erves in the charity., having funds available to the govemors to lend to the charity rf r8qUi18d. There 15 no fomial policy to maintain 8 set ￿ve1 of reserves. The govemors are continually looking for appropriate investments whi¢h will ensure that high level of returns can be achieved for the charity's benefit. The govemors. inv&stment powers arè govemed by the charitys Artides of Associatson which pemiit the governors to In￿$t the charity funds as they may see fiL The governor5 are experienced property investors and have invested the charity's fvnds in property in order lo gener8le funds for distribution. Investments are chosen on the basis of achieving a yield in excess of that available from cash deposits while maintsining security of income. The governors have asstssed the majoi risks to whKh the charity is exposed, and ar8 satisfied that 5ySt8ms are in placè to mrtt'gale exposure to the major risks. The governors wsll continue to purchase fijrther investments when Ihey bdieve it 15 in the best interests of the ¢hailty. Structure. goveman¢e ond management The Charity is limited by guarantee. It was incorporated Dn 12 June 1981 and registered as a charity on ihe same date. The charity was 85tabli5hed under a Mernorandum ofAssoaation which established the obje¢ts and pow8rs of ihe charf(able company and is govemed under Its Artlcles ofAssocialion. The governors, who are also the directors for the purpose of ojmpany law. and who served during the year and up to the date Df signature of the financial ststements wer&.. MrDJay MrPJay MrlSJay Govemors are rectsmmended and appointed by the Board of Govemors. None of the govemors has any bèngfifyal intere51 In the charty. All of the governors are members of the charity and guarantee lo corbtribule an amount not exceeding £1 in the event of a winding up. The board of g0￿mOT5 administers the charity who relain complate responsibilty for its managemenL Auditor SHIREHALL TZEDAKA COMPANY LIMITED GOVERNORS, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The auditor, Loplan Gross Bamett & Co, is deemed to be reappointèd under séction 487{21 of the Companiès Act 2006. Dlsclosure of Inforniation to auditor Each of the govemors has confirmed that there 15 no information of which they are aware which is relevant to the audit, but of the auditor is unaware. They have further conffimed that they have taken appropriate steps to idenlity'such levanl infomation and lo establish Ihal the auditor is aware of such inforrnalion. The governors, r rt was approved by the Board of Governors. vernor Dated.. SHIREHALL TZEDAKA COMPANY LIMITED STATEMENT OF GOVERNORS, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020 The govemors, who are also ihe diTecior5 of ShiTehall Tzedaka Cotnpany Limited for the purposè of company law, are rèsponsib￿ for prèparing the Govemors, Report and the financial s18lements in accordance with applicable law and United Kingdotn Accounting St8ndafds (United Kingdom Generalty Ac¢ept$d Accounting Practice). Company Law requires the governors lo prepare financial ststemenls for each financial year which give a true and fair wew of the state of affaiTS of the company and of the incoming resource5 and application ol resource5, indudlng the income and expenditure. of the charftable company for that year. In preparing these financial 5tstements. the gov8mors are required to.. select suitsble accounting policie$ and then apply them con51Stently-, - observe the rnethods and principles in the Charities SORP.. - make judgements and esbmate5 that 8Te reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material deparluTes disclosed and explained in the finat)cial statements.. and prepare the financial statements on the going con¢xrn basis unless it 15 inappropriate lo piesurnp that the company will continue in operation. The govemors are responsible foi ke8ping ad•quate accounting records that disclose with reasonable accuracy al any time the finanoal position of the (xjmpany and enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assels of the company and hence for taking reasonable steps for the prevention and deleth.on of fraud and 0￿er irregularities. SHIREHALL TZEDAKA COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHIREHALL TZEDAKA COMPANY LIMITED Opinlon We have audited the finan¢ial statements of Shirèhall Tzedaka Company Limtied (the 'company'l for the year &nded 31 December 2020 which comprise the staternent of finanryal activities, the balance sheet. thè Statement of cash flows and the notes to the financjal statements, induding significant accounting polic4e5. The finanfyal reporting framework that has bèen applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Fin8nGial Reporting Standard applicable the UK and Republic of Ireland. In our opinion, the finantial statements.. give a true and fair view of the state of the ¢*aritable company'$ aff8irs as al 31 December 2020 and of rts incorning resources and application of reSoUr￿s, lor the year then ended., have been pioperiy prepared in a¢¢ordance with United lthngdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requiremen15 of the Companies Act 2006. BasiB for opinion We conducted OVT audit in aecoTdan￿ with Int8m3lional Standards on Audillng (UK> IISAS (UK)) and applicable law. Our re5ponsibilrtie5 under those standards are fvrther describèd in the Auditor's responsibiliti85 for the audit of the financial statements section of our report. We are independent of the company in 8¢cordance with the ethical requirements that are relevant to our audit of the finanaal statements in the UK, Inoluding the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requimmenls. We believe that Ihe audit evidence we have obtained is suffiryenl and apwopriale to p¥ovide a basis for our opinion. Conclusions rèlating to going concern In auditing Ihe financial statement5. we have conduded thal the governors, use of thè going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have nDt identified any malert81 uncertainties relating to events or conditions that, individually or colleciively, may cast signrficant doubt on the company's ability lo continue as a going concem for a period of at least fv4efve months from whèn thè financial statements are authorised for issue. Our responsibilities and the ie5ponsibilities of the governor5 With respect to going concern are described in the relevant sections of this ieport. Other informatlon The other inform81ion comprises the infomiation included in the annual report other than the finanrial statements and our auditoes report thereon. The governors arè responsible for the other information contained within thÈ annual report. Our opinion on the financial slalements does not cover the other information and w8 do not express any fom of assurance conclusion thereon. Our rèsponsibilty is to read the other InfomiaUon and, in doing so, consider whelhor the other information is rnalerially inconsistent with the financial statements or our knowledge obtained in the course of thè audit, or othe￿1$e appears to be materially misstated. If we identify such Material inconsistenues 01 apparent material misstatements. we are required lo delerrnine whether this gives rise lo a material misst8lement in the financial statements thernselves. If. based on the work we have perfoTrned, we condude that there is a material misstatemént of this other infomiation. we are required to report that facL We have nothing to report in this règard. SHIREHALL TZEDAKA COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF SHIREHALL TZEDAKA COMPANY LIMITED Matters on which we are required to rèport by exe•ptlon We hav8 nothing to report in respect of the following matters in relalion to whith the Charities (Accounts and Report51 Regulations 2008 require us to report lo you if. in Dur opinion." the infoimalion given in the finanaal staternents is inconsistent in any material respect ￿th the governors, report., or sufficient accounting records have not been kept." or the financial statements are not in agreement with the accounting r8cords', or we have not received all the inforniation and explanations we require for our avdil. Responsibilltlè# of governors As explained mor8 fully in the Statement of governors. responsiknlibes. the governors, who are also the directors of the company for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a tru8 and fair Mew, and for such intem81 control as the govemors determine is nèc8ssary lo enable the preparation of )Snancial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial slatements, the governors are responsible for assessing the company's ability lo continue as a going concem, disclosing, as applicable, matters related I going concern and using th• going concefn basis of accoullling unless the govemors either intend to liquidate the charitable eompany or lo ¢ease operations. or have no realistic attemalive but to do so. Audltoe& responsibilities for the audit of th• financial ststsmènts We have bèen appointed 85 auditor under section 144 01 Ihe Charrties Act 2011 and Teport 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 tr8ud Of error. and to issue an audiior's report that includes our opinion. Rea59nable assurance is a high level of a55urance bLrt is not a guarantee that an audrt conducted in accordance wth ISAS IUKI VMII afv4ays detect a material misstatement when it exists. Misstatements can arise from fiaud or erior and are considered material rf, individually or in thè aggiegate, they cx)uld reasonably be expecled to influence the economi¢ d￿lS19n5 91 users tsken on the ba515 of these financ4al stalernents. SHIREHALL TZEDAKA COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED TO THE GOVERNORS OF SHIREHALL TZEDAKA COMPANY UMITED Irregularities, including fraud, are instsnces of non-cornpliance with laws and regulations. Wè dèsign prO￿dureS in line with our responsibilities, outlined above, to detect maleiial misstatemenlg in respect of irregularitie5. induding fraud. The extent to which our procedures are Capable of detectin9 irregulariti&s. in¢luding fraud, is detailed below. We obtained an understanding of law5 and iegulauons that affe¢t the entity. focusing on those fhat had a direct effect on the financial siatements or that had a fundamental effect on its operations. Where considered necessary we enquired of the those charged wilh governance, reviewed correspondence and reviewed meeting minuies for ewdence of non-compliance with ielevant laws and regulth'ons. We gained an understanding of the controls enwronmenl which in(Judes the controls in place to prevent and detect fraud. We enquired of th8 those charged with govemance about any incidences of fraud that had tsken place during the 8c¢ounling period. The risk of fraud and nonwcompliance with law5 and Tegulations and fraud was discussed wrthin the audit team and tests werè planned and perfomèd lo addrèss these risks. We reviewed financ4al statements disdosures to asses5 compliance with relevant laws and regulations. We enquired of those tharged w(Ih gpvgrnanc8 about actual and potential liligalion and claims. We performed analytical procedures lo identify any unusual or ungxpectad relationships that rnighl indicate risks of material misstatement due to fraud. In addres￿n9 thè risk of fraud duè to management override of inlemal controls we tested Ihe appropriateness of journal entiies and assessed whether the judgernents made in maktng accounting estimates were indicative of a potential bias. Due to the inheient limitations of an audit, there is an unavoidable risk that we may nol have delected some fflalerial mi$stslemenls in the ffinana81 slalements, even though we have properfy planned and p8rfoimed our audit in ac￿rdanCe with auditing stsndards. For example, as with any audit, there remained a higher risk of non- detection of irregularities, as these rnay involve collusion. for9ery, intentional omissions, misrepresentations, or the override of intemal controls. We are not responsible for preventing fraud ot non-compliance with laws and regulations and cannot be expected to dètect 811 fraud and non-compliance with laws and regulations. A further de5CliPtion of our re5ponsibililies is available on the Financial Reporting Council's website al.. hltps."/l www.frc.org.uklauditorsresponsibilib.es. This description forms part of our audito¢s rèport. SHIREHALL TZEDAKA COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED TO THE GOVERNORS OF SHIREHALL TZEDAKA COMPANY LIMITED Use of our report This report is made 501ely to the charity's trustèès, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Règulations 2008. Our audit work has been undertaken so that we might sialo lo Ihe charity's trustees those matters we are required to state to thèm in an 8udilors' report and for no other purpose. To the fullest extent permitted by law, we do not accept 01 assume responsibility to anyone other than the charity and the chanty's trustees as a body. for our audit work. for this report. or for tho opinion$ we have fomed. Jonathan Brodle (Senior sta￿tOry Auditorl for and on b•half of Lopian Gross Barnett & Co 15.09.2021 Chartered Accountsnts ststutory Auditor 1st Floor, Cloister House Riverside New Bailey Street Manchester M3 5FS Lopian Gross Bamett & Co is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Cornpanies Act 2006. SHIREHALL TZEDAKA COMPANY LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestrictsd Unrestricted funds funds 2020 2019 Notes Income from.. Donations and legacAes Investments 40.753 704,142 94,761 687,962 Total Income 744,895 782,723 Ex Charitable activities 486.480 429.546 Other 213,￿5 224,165 Total resources •xpended 699.485 653,711 Net incoming resou￿09 45,410 129,012 othor re¢ognised gains and losses Revaluation of tangible fixed assets 196,050 Nèt movement in funds 241,460 129.012 Fund balances 8t 1 January 2020 6,781.242 6,S52.230 Fund balances at 31 D•comber 2020 7,022,702 6.781.242 The statement of financial a¢tivities includes all gains and losses recognised in the year. All income and expenditure dèrive from continuing actiwtl8s. The statement of financial actiwbes al$0 Complies with the reqU1￿ments for an I￿￿)me and expenditure account under the Companies Act 2CMJ6. SHIREHALL TZEDAKA COMPANY LIMITED BALANCE SHEET AS A T 31 DECEMBER 2020 2020 2019 Not08 Fixed assets Investment propertiès Investments 11 12 10,900,OC 19 10,700,000 19 10.900.019 10.700.019 Current assets Debtors Cash at bank and in hand 13 267,852 81,724 294,098 32.801 349,576 326,699 Creditots: amounts falling due within one year 15 {2,586,493) 1191,3601 Net ujrrent Iliabilitieslla55els 12.236,917) 135.539 Totsl as$èts less cuTrent liabllltles 8,663,102 10,835,558 Cr•ditors'. amounts falllng du• after more than one year 16 11,640,400> {4,054,31 $1 Net a$￿ts 7,022.702 6.781.242 Income lunds edfv General unrestricted funds Revaluatbon resewe 1,500,095 5,522.607 1.454.6B5 5,326,557 7,022,702 6,781,242 7.022.702 6,781.242 10- SHIREHALL TZEDAKA COMPANY LIMITED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020 2020 2019 Notes The cornpany is entfflled to the exemption from the audti requirement contsined in section 477 of the Cornpanies Act 2006, for the year ended 31 December 2020, although an audrt has been carried out under section 144 of the Charities Act 2011. The directors acknowledge thtyr responsibilitie5 for complying w((h the requirements of the Companies Act 2006 with respe¢t lo a unling records and the preparation of finana81 statèmènts. These fina&al s subject lo the s tements have been p￿pared in a¢¢ordance with the provisions applicable to companies 11 Companies regime. The tinan tatements were approved by the Governors on .. Gov Registration No. 015676S1 SHIREHALL TZEDAKA COMPANY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 21120 2019 Note8 Cash flow¥ from operatlny actlvities C8sh absorbed by operations 20 1553,4921 1610,143) Invèsting activttle Purchase of inv8sltnent property Inv8Sttnent income 13,9501 704.142 687,962 Net cash 9enernted from Investing activities 700,192 687,%2 Flnanclng actlvlties Repayment of bank loans 197,777) 1106,452} Net ¢ash used in flnancing activiugs 197,777) 1106,4521 M•t in¢reaselldecr•asel In ¢ash and cash equlvalants 48,923 P8.8331 Cash and cash equivalents al beginning of year 32,801 61,434 Cash and ca$h equivalents at ond of year 81,724 32,801 12- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting pollcSes Charfty Inforniation Shirehall Tzedaka Company Limited is a private company limited by guarantee incoTporaled in England and Wales. The regislered officè is Foframe House, 2nd Floor, 35-37 Brenl Street, London, NW4 2EF. 1.1 Accounting convention The fin8ncial slalemenls have been prepared in accordance with the Companies Act 2QK)6 and'Accounting and Reporting by Charities.. Statement of RecDmmended Practice applicable to charities preparing their accounts in a￿OrdanCe the Fin8ncial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021. las amended for accounting periods commenang from 1 January 20191. The company 15 a Public Benefit Entity as defined by FRS 102. The finanaal statements ale prepared in sleding, which is the functional currèncy of the company. MDnetsry arnDunt5 in these financial statements are rounded to the neaTest £. The financial slaternents have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The winapal accounting poli￿eS adopted ale set out below. 1.2 Golng conc•m Al the tirne of approving the finanaal stalements, the governors have a reasonable expectalion that the company has adequate resourcès to continue in operational existence for the foreseeable future. Thus the govemors continue to adopt the going concern basis of accounting in preparing the finanual ststements. 1.3 Charltablè funds Unrestricted funds are available for use at the disixetion of the govemors in furtherance of their charitable objectives. Fund5 held by the charity are all unrestricted. These being ftinds which can used in accoTdance with the charitable objects at the discretion of the govemors. 1.4 Income Income is recognised when the cx)mp8ny 15 legalty entiued lo (( 8fter any p8rformance conditions have been mat, thè amounts ¢8n be measured reliably. and it is probable that income will be ￿CeIved. Cash donations are recognisèd on receipt. Other donations are recogni5ed once the eompany has beèn notified of the don81ion, unles5 performance conditior15 require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are fecognised on re￿Ipt or otherwise if the company has been notified of an irnpending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is trèated s a contingent asset. Investment ineome represents amounts receivable for rents and senpice5. Investment incorne is recognised on the commencement of and in accordance with a lease. adjusted for any incentNes as required under FRS102. A property is regarde(l as sold when signTfi¢ant risks and retums have been Iransfvrred to the buyer. For condits.onal exthanges, sales recognised as the condrtions are satisfied. 1.5 Expenditurn 13- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng policies (Continu•dl Expenditure Is recognised on an accruals basis as a li8bllty is incurred. Charitable expènditUTe comprises those costs in¢yJrred by th8 charity in the d8liv8ry of its activities and sèrvices for ils benefiaaries. It in¢ludes both costs that can be allocated directty lo such actiwlies and those costs of an indirect naluie necessary lo support them. Olher costs indude all costs involving the public accountsbility of the c*anty and rts cornplian￿ with regulation and good practice. These indude costs relating to statutory audit and profèssional fèès. Grants payable represent don*ions paid to relbgious, educational and similar charrties. and are recognised when paymanl is made by Ihe L*arty. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequentty mÈa5ured at cost or valuation. net of depre¢i8tion and any irnpairment losses. Tènglble fixed assets are stated at cost or valuation less deprecbation. Depreciation is provided at Tales alcvlaled to wriie off tha co$1 or valuation less e51imaled residual value of each asset over its expected useful lrfe, as follows.. Fi*(ums. frtbngs & equipment 33.33% straight line The gain or loss arising on the disposal Df an asset is determined as the difference betsveen the sale proceeds and the carying value of the asset, and is recognised in net incomellexpenditurel for the year. 1.7 Investment propertlès Investment property. which is property held to eam rent81$ andlor for capital appreciation, is initially recognised at cost, which indudes the purthas8 cosl and any directty attributable expenditure. Subsequently it is measured al fair value al the reporting end date. The surplus or defic4t on revaluation is recognised in the statement of financial actwities. 1.8 Fixèd asset invesiments Fixed asset inveslrnenls are initially measured at cost and subseqyenuy measured at cost less ally ac¢umulated impaimienl losses. The investments are assessed for imp8irrnenl 81 each Teports"ng date and any irnpairment losses or reversals of impairment losses are recognised immediately in net incomel (expenditu￿) lor the year. A $ubsidiary is an entity controlled by the charity. ContfDI is the power lo govem the financAal and operating policies of the entsly so as to obtain benefits from its activities. 1.9 Cash and ¢a$h equivalents Cash and cash equivalents include cash in hand. deposits he5d at call with banks, other short-temi 1Squld investment5 Wlth original rnaturities of (hree months or le$s. and bank oveidrafts. Bank overdrdfts are shtrwn within borrowings in current li8bilities. 14- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies IContinu8dl 1.10 Finan¢lal Instruments The company has elected lo apply Ihe provisions of Sedion 11 'Basic Financial Inslrumenls, and Seclion 12 '0ther Financial Instruments Issues. of FRS 102 to all of rt5 financial instruments. Finanaal instrurnenls are recognised in th8 company's balance Sheet when the company becomes party lo the contractual provisions of the instrument. Finanaal assets and liabilities are offs8t, with the ngt amounts presented in the financial slatemenls, when there is a legally enforceable right to sel off the recognised amounts and there is an intents(m to sèttle on a nel basis or to realise the asset and settle the liability simuttaneously. Basie finaftcialassets Basic finanual assets. which include debtors and cash and bank balances, are initially measured at transaction price induding tiansaction costs and are subsequendy Carrièd at amortised c05t using the effective interest mèthod unless the arrangement constitutes a financing transaction, where the transaction is measured al the present value of the future recelpls discounted at a market rate of inte￿$t. Financial assets dassified as receivable within one year are nol amorused. BJsi¢ ffnancial Ilabllities Basic financial liabilities, induding creditors and bank loans Brè initialty recognlsed 81 transaction price unless the arrangèment constitutes a financing transaction, wheTe the debt Instrument 15 rreasured at the present value of the lulure payments discounted at a market rate of interest. Financ4al liabl1￿'eS dassified as payable within one year are not amortisgd. Debt instrvments are subsequèntly carried at amortised cost, using the effective interest rate method. Derecognition of flnanelal Ilabllitie5 Financial liabilities are derecognised when the company's contraclual obligation5 expire or are discharged or caneelled. 1.11 Joint aFrangement not an entlty The company 1$ 8 Party lo a joint arrangement that is not an entty with a nurnber of indiwdua15 and olher business entitie5. Accordingly, these finanual staternents have been prepared in accordance with Finaneial Reporting Siandaid No.9 to incorporate the joint arrangement. 1.12 Group ac¢ounts The financial statements pre58nl information about the charity as an indiviual undertaking and not about rts group. Th8 charity and ils subsidiary undertakings ¢omprise a small group. The charity has therefore taken advantage of the exemptions promded by sections 399 of the Companies Act 20QS not to pr8pa18 gioup acc4)unt5. Crltl¢al accounting estimates and judgement> In the application of the company's accounting polioes. the governors are required to make judgements, eslrmalès and assumptions about th@ C8rrying amount of assets and liabilities that are not rèadity apparent from other sources. The estirnales and associated assumptions are based on historical experience and other factors that are considered to be rolevant. Aciu81 resuhs may differ from these estimates. The estimales and undedying assumptions are reviewed on an ongoing basis. Remslons to ac¢ounling estimates recogni5ed in the period in which Ihe estim*e is revised where the rewsion affecls only that period, or in the period of the revision and future penods where the revision affects both ou￿ent and futur& peiiods. 15- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Donations and lega¢lg$ Unrestrlcted Unrestri¢ted funds funds 2020 2019 Donations and gifts 40.753 94,781 Inv•stments Unr8strlct•d unrest￿￿￿ funds funds 2020 2019 Rental income 704,142 687,962 Charitable actlvttl•s Grants payable 2020 Grnnts payable 2019 Gi8nt funding gf acliwlies (see note 8) 486,480 429.546 Grants payable 2020 2019 Grants to institution$'. Other 486,480 429,546 16- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Grants payable Icontlnuedl The tharity made donations of £486.480 {2019.' £429,546) to institutions in accordance with its objects. These can be further analysed ty purpose 88 foll￿￿3.. 2020 2019 Relief of hardship and poverty Communty work Jewish education and religious studies Advancement of religion and the Orthodox Jewish faith 102,980 85,600 156,100 43,800 106.996 39.300 137,400 40,850 388,480 98,0 324,546 105,000 Achisomoch Aid Company Ltd- gen8tal chawity a￿Unt 486.480 429.546 Material grants were paid to the following bodies in Ihe followng amounts. Main purpose £11,500 Relief of hardship and poverty £18,000 Relief of hardship and poverty £3.600 Relief of hardship and poverty £7,500 Jewish education and religious studies 5,000 Jewish Education and religious studies £16,000 Jewish education and religiou5 sluijies K¢hal Chasidw Wznitz Friends of Shekel Hakodesh Ltd Ezra Umiarpeh Ltd Kisharon Menorah Prinary School Hatzolo NW £61,600 £326.880 Other grants £3B8,480 Gov•mors None of the govemors IOT any persons connect9d with them) received any remunerallon or expenses from the charity during the year. Employees The average monthly number of employees during the year wa5.. 2020 Number 21119 Numbèr Total 17 SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Other 2020 2019 Audrtors. remuneration Auditors. fees ft>r non-audit work Interest and finance Cosis on bank loans Inleie5t on other loan5 Other expenditure 3.600 6,094 98.(K)8 96.960 8.343 3,600 2,280 110.673 96,960 10,652 213.005 224,165 10 Taxailon The activities of Shirehall Tzedaka Company Limited are exempt from direct taxabon under Part 11 of Corporation TaxAct 2010. 11 Inve$trnent property 2020 Falr valuè At 1 January 2020 Additions through extein81 acquisition Net gain5 or105ses through fair value adjustments 10,700,000 3,950 196,050 Al 31 Decèmber 2020 10,900.000 The fair valuè of the investment propety has been a￿1Ved at on the basis of a valuation c8iried oul by a goveinoi of the company. The valvalion was made on an open markèt value basis. 12 Fixed asset investments Unlisted Other investments inv•stmènts Total Co8t or valuatlon Al 1 January 2020 & 31 December 2020 16 19 Carrying amount Al 310e¢ember 2020 16 19 At 31 Oecembei 2019 16 19 2020 2019 Other inv8Stmenls ￿MpriSe.. Noles 18- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 12 Fixed asset investments Icontlnued) Invastments in Subsidiaries 19 Fixèd asset inveslments not carrfed at market value The above invesltllenls are in dormant companies and shown al LX)St. 13 Debtors 2020 2019 Amounts falling due within one year. Other debtors Prepayments and 3wued income 263,441 4,411 275,996 18.102 267,852 294,098 14 Loans and ovèrdrafts 2020 2019 Bank loans Loans trom Felated partie5 3,254,034 808,000 3.3S1.811 808,000 4,062,034 4,159,811 Payable within on& year Payable after one year 2.421,634 1.640,400 105,495 4,054.316 Amounts induded above whlch fall due afterfive years.. Payable by in5talmenls 1.053.883 1,085.756 The bank long-terrn loans are se¢xred on property investments. 19- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 16 Crndltors: amounts falling due within one yèar 2020 2019 Nctrt¥s Bank loans Other borrowings Other taxation and Social seojrity Trade Cieditors Amounts owed to subsidiary undertakings Accruals and deferred income 14 1,613,834 808,000 5.347 122 105,495 3,220 5,719 159.387 76.923 2,586.493 191.360 The charity borrowed £808,000, unsecured, from Domo Securitie5 Ltd, a compat)y in which the govemors have rnatèrial interests as shareholders and directors. The loan is at an intei85t rate of 12% peT annum and repayable on lerrn in 2021. 16 Crèditors: amounts falling due after more thon one year 2020 2019 Notes Bank loans Other borrowlngs 14 1.640.400 3,246,316 808.Q¢JO 1.640,400 4,054,316 17 Covid-19 The Twslg&s have dosety monrtored the Goveinm8nt guidance in response to the Covi(k19 Pandemic and have implèmèntèd measures in line wf(h Govemmental guidelines. The TtU5tees have assessed the impac¢ of Covid-19 on the company and condude that there are no itoms resulting frorn the Covi(k19 Pandemic which requir8 disclosure at the balance sheet date. 18 Relatsd party tr4nsa¢llon$ Tran8a¢tlon$ wlth related parties During the year the company entered into the following transactions wrth related paTties'. 20- SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 18 Related party trdn¥actions IContinu•dl The following amounts were outstanding al Ihe reporting end date: Amounts owed by relat•d Amounts owgd by relatsd parties parties 2020 2019 Balance Balance Net Net Other rèlated parties 244,910 244,910 257,465 257,465 244,910 244.910 257,465 257,465 Included in the above is £208,744 due from another charity wth the same govemors. objècts and wrpose as this one. During the year the charity r8¢eived donations wlthout conditions of £29,953 from another charity with the same governors as this tharity. During the year the charity received donations wthout condrtfjons of £8,500 from a company with directors and shareholder5 who are govemors of this charity. There were no othèr related party transactions during the year whid) rèquire disd05ure. 19 Subsidiarfes Details of the ¢￿MpanY'S subsidiaries at 31 December 2Q20 are as follows.. Namg of undertaklng Registered offlte Nature of business Cla$$ of % Held shares hold Dlr&ct Indirect Yew Properbes Limited England and Wales Dotmant Ordinary 100.00 The aggregate (xpttal and reserves and the resutt for the year of Subsidlaries was a5 follows.. Mame of undertaklng ProfiVILossl C•pital and Reservos Yew Properties Limited 21 SHIREHALL TZEDAKA COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 20 Cash genorated from opèrdtlons 2020 2019 SurF4us for the year 45.410 129.012 Adjustments for.. Investment income recogni5ed in Statement of financial activitiès 1704,1421 1687,962} Movèmènts in working capital-. Deuease in debtors Increaselldecreasel in creditors 26,246 78.994 14,906 166.0991 Cash absortjed by operations 1553,4921 1610.143} 21 Analysls of chang¥$ In net IdebtlMund$ At 1 January 2020 CaBh flowg At 31 OBcornbor 2020 Cash at bank and in hand 32.801 48.923 81,724 Loans falling due within one year Loans falling due after more than one year 1105.4951 12,316.1391 12,421,634) 14,054,316) 2,413,918 11,640,400) 14,127,010) 146,700 13,980,310) 22- Shlrehall Tzedaka Company Limited 2nLI Floor, Foframe House 3&37 8rent Street London NW4 2EF Lopian Gr055 Bamett & Co 1st Floor. Cloister House Riverside, New Bailey Street Manchester M3 SFS Dear Sirs Lettsr of Representatlon During the course of your audit of our financial statements for the year ending 31 December 2020. the following representations were made to you by management and trustees. Vve acknO¥￿edge as trustees our responsibilities under the Companies Act 2006 for preparing financi81 statements, in accordan¢e with Stalernenl of Recommended Practice applicable to charities preparing theTr accounts in accordance with FRS 102 financial repo￿ng framework that give a true and fair view and for making accurate representations to you as auditors. 2. We confirrn that all accounting records have been made available to you for the purpose of your audit, in accordance wth your temis of engagement, and that all Iransaclions undertaken by the charity have been propedy rellected and r￿Orded in the accounting records. All other records and related information. including minLJles of all tru51ees' meeb"ng5, have been made available to ytsu. We have given you unrestricted access to persons wthin the company in order lo obtain evidence for the audit and have provided any addits.onal inforrnalion that you have requested for the purposes of your audit. 3. We Confimi that significant assumptions used by u$ in making a¢￿Unting estimates. including those measured at fair value, are reasonable. 4. We ronfirwn that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been di5c105ed to the auditor and accounted for and disclosed in accordance with the FRS 102 financial reporting framewrNk. 5. We confirm that there have been no events since the balance sheet dale which require disckjsing or which would materially affect the amoun15 In the financial slalements, other than those already disc105ed or included in the financial statements. 6. We can confirm that we are aware that a related party r)f the charity is a persDn Dr organisats'on which either (directly or indirecuy) controls, has joint control of, or significanuy influences the charity or vice versa and. as a result, wll indude trustees, other key management, close family and other business interests of the previous 7. We confimi that all related paty relationships and transactions have been accounted for and discbsed in accordance with the FRS 102 financi31 reporting framework. 8. We confimi that the charity has had, at ng time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees. nor to provide guarantees of any kind on behalf of the trustees. except as already disclosed in the accounts. 9. We confim? that the charity has not contracted for any captial expenditure other than ag disclosed in the financial statements. 10. We ¢onfimi that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charrty conducts its business and which are Central lo the tharity'5 ability lo conduct its business, except as explairied to you and as disclosed in the financial slatements. 11. We acknowtedge our responsibilty for the design and irnplemenl*ion of controls to prevent and detect fraud. We confirm that we have disclosed to you the re3ulls of our risk assessment of the risk of fraud in the busines8. 12. We confim that there have been no actual or suspected instsnces of fraud involving management or employees who have a significant role in internal control of that could have a material effèct on the rinancial statements. We also confimi that we are not aware of any allegations of fraud by fomier employees, regulators or others. 13. We confi'mi that, having considered our expectations and intentions for the next knvelve months and the availabilty of working capital. the charity is a going concern. 14. We confimi that in our opinion the effect5 of unadjusted mi8Statemenls are immaterial. both individually and in 8ggreg3te, to the financi818t8tements as a whole. 15. We aCknO%￿edge our le9￿ responsibilities regardin9 dI￿lOsure of infomialion to you a$ auditors and confirm that.. so far as each trustee is aware. there is no relevant audit information of vthich you as 8uditors are unaware.. and each trustee ha5 taken all the steps that they ougm to have taken as a trustee to make themselves abydre of any relevant audit information and lo e5tsbli5h that you ai¢ aware of that information. 16. We confirm that the propety values are appropriately staled al the year end. We ¢otfflm that the above representations are made on the basis of enquiries of management and 51aff with relevant knowledge and èxperbse land, where appropriate of supporting documenlationl sufficient lo satisfy ourselves that we can property make these representations to you and that lo the best of our knowledge and belief they aGcuralely reflect t epresenlations made to you by the tTuslees during the CC*urse of your audit. Yours faithfully MrDJ•y- (Signad on b If of th8 Board of Trust••sl Dat•....... HM Revenue &Customs Company Tax Return 600 (2021) Version 3 for accounting periods starting on or after l April 2015 Your Company Tax Return If we send the company a'NotKe' to dèlNer a Cornpany TaK Retum it has trj by the filing date or we Char￿ a penalty, even rf the￿ is no tsx to P3y. A retum includes a Company Tax Reknrn forrn, any supplernentary pages, acC￿ntS cornputstions and any relevant irfjfomtstion. The CT6LK) Guide tel& you how the retum must be fottnatted arvj ￿lIVered. It contain5 general informatK>n you rnay need to deliveryour retum. links to I￿re detailed athice and box-by-box guidanre for this fomi and the supplernentary page& The forms in the ￿600 serie5 521 QLrt the inforfflatl(￿ we need and provide a standard format for calculation Cofflpany information C(rfnpany namè Shirehall T2edaka Company Limited Company re9i5tration rnjmber 0 1 5 6 7 6 5 1 Tax referen 9 4 5 5 0 2 1 4 4 2 l Type of company Northern Ireland an'x in the appropriate box(es} below Nl tradiwj activity 1 SME Nl eryJLoyer Special clrcumstances About this return TIMS is the above cOm￿Y'S fEturn for the period 30 fTVrn DD MM YVYV 3S to DD MM YVYY 0 1 0 1 2 0 2 0 3 1 1 2 2 0 2 0 t an'K in the apprwiate boxles) below A wepayment 15 due forthi5 return period 40 45 or relief afferting an earlier perlod 50 Making more than om Yebjrn for this company r 55 retum tontains estimated figure5 60 part of a 9roup that Is not smaii 65 Notice of di5ciosabie •￿Ida￿e schtme5 Tra￿fer Pridng 70 Compensating ad￿Stmertt tiairned COmp￿Y qualff*s for SME exemption CT600(2021) Version 3 Page 1 HMRC 04121 About this return continued Accounts arbj computatlons l att￿h xcounts and comWion5 forthe period to vknith this retum ￿lateS 85 l attach accounts and computation5 for a differe￿ peiiod 90 If yw are not attathin9 the a(counts and comwtatl￿S. say why not JPFlernentary pages endosed 95 Lr￿S and anzngements to partiapators by dose companies- forrn cf600A Controlitd foteign companie5 forei9n pemanent establishment exemptions- form CT6CX)B Group and con50rtium- form ￿6(￿￿ I￿UranCe- form cf600D charl￿e$ and Cornmunity Amateur Sports cl￿)5 {CA5Cs)- fonn cr6(NJE Tomage Tax- fo￿￿ ￿600F Northem Ireland- fottn ￿600G Cros*border Royaties. form ￿600H Supplementary d￿rye In respect of rin9 fence tradEs- fotTh ￿6001 DIsciosu￿ of Tax Avoidance Sthemes- forrn (twoj fte$tr(ut￿n Tax- fomi Cr￿0K Research and De¥eLroment. fonn Cf600L Tax calculation Turnover Totsl ￿MoVer from tsade Banks bulldln9 S￿l￿tle¥ insurance companie5 and other ffnancial concerns - put an X in thi5 box rf you ¢kn not have a rÈcogTrised tumover and have not made an entry in IM)x 145 Income Trathry profits Trathng losses brought for￿rd set agaiwBt tradin9 yofrts Nettrading prof5ts- iwjx l SS tninus box 160 170 Bank. buildiNJ sotstty or other interest, aTrJ profits from noTrtThJing loan reiation51yps Put an %' in iw)x 172 rfthe figu￿ in box 170 is net of carrying back a defKit frorn a Later atttsuntw￿ perithj CT600(2021) Version 3 Page 2 HMRC 04121 Income - continued Annual payments not otherwise tharyed to Corporation Tax and from whith Income Tax has bEen dedu(ted 180 Non.exempt dividend5 or distributions from on-UK resident companie5 Income from whKh IrKcffle Tax has been deducted IrKome from a property b￿lnesS Non.tradirvJ gain5 on intan9iMe r￿ed assets 200 ToM&Je Tax profits 205 Income falliry under otI￿r heading Chargeable gains Gr05s chafg*abie gaW15 Allowable losses induthng losse5 brought foThYaYd 220 ch￿Qable galns - box 210 tninus i￿X 215 Profits befo￿ deductions and reLieft Losses brought forW￿d a9ain5t certaln Investmeni Incomè 2a0 Non.trade defkSts on relationships CinciudiNJ interert) and derivative contract5 (finanaal instruments) brought fortvard set aga￿￿ Th)Trtrading profits 235 Profits beforn other deductions and reilef5- net sum iw)xes 165 to 20S and 220 minLS suffl of ￿XeS 225 and 230 Deductions and reliefs 5ses un4￿ted shares 245 Managefflefit expens 50 UK property busw￿55 losses forthls or previ(wJs Counts￿ pe￿0d 255 CapitaL allowances for*￿ purpose5 of management of the bjsiness 260 Non.trade deftits for this accounting period from loan relationships and derivative