KOL CHAI HATCH END REFORM JEWISH COMMUNITY REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 CHARITY NO.: 299063 KOL CHAI HATCH END REFORM JEWISH COMMUNITY 434 Uxbridge Road Halch End, Pinner Middle$ex HA5 4RG
KOL CHAI HATCH END REFORM JEWISH COMMUNITY {An unincorporated charltyl REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MAY 2023 CONTENTS Page Trustees, Report Independent Examinerfs Report Summary of Restricted Funds Statement of Financial Activities Balance Sheet Notes to the Financial Statements 8-13
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An untn¢orpDrated charlty) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MAY 2023 The trustees present their report and accounts for the year ended 31 May 2023. Objects and Organisation of the Charity and Princlpal Activities Kol Chai Hatch End Reform Jewish Community is a charity established under a charitable trust and is governed by ils conststution. The objects of the charty are as defined by its constitulion and ils principal activty is that of a synagogue and Jewish community. There is an emphasis on the educational work of the community. The charity is organised and administered by ils elected management Committee and executive offirts. The management committee meets each month. The executive officers. in addition to attending the management committee meetings, also meet separately every two months. The trustees li.e. the management committee rnember$} have considered Ihe major risks to which the charity is exposed. Publlc Benefit The charity's trustees have had due regard to the Charity Commission's public benefit guidance. The main objectives of the charity are the promotion, preservation and observance of Jewish tradition, and these are set to reflect our faith and community aims. The focus of our aGtivities is the provision of plots and burial rites in x¢ordan¢e with tradition and arranging communal events and activities. Development, A¢tlvities and Achievements thi$ Year Kol Chai Hatch End Reform Jewish Community continues to develop the breadth and depth of activities (spiritual and non-spiribjall that it offers members. The education81, social and other charitable works of the charity have continued to be pursued and expanded. Balance Sheet and Statement of Flnanclal Activities Our Balance Sheet shows a healthy level of net assets of £884,391 (2022: £575,094). The Statement of Financial Activtbes shows that for the year ended 31 May 2023 the charity recorded a surplus of £115,316 {2022.' a deficit of £11.221) excluding buikling amortisation. Income for the year includes £125,000 in respect of a legacy bequeathed by 8 former member of the Community, comprising a pecuniary legacy of £10,000 that was received during the year and an interim distribution of £115,000 received after the year end in respect of the residuary Estate. The Estate is still in administration and so the exact entitlement cannot yet be delemiined but it is anticipated that there will in due course be a small final distribution. to be induded as income in the 2024 accounts. In aG¢ordance with our long-established charitab18 principles, we have continued this year to raise money for our own trusl funds and lo collect for the benefit of outside charities. To minimise bank interest and charges the main operating bank account of the community holds both restricted and unrestricted funds. The Capital Reserve decreased by £11,940 which comprised building amortisation of £15.449 less £3.509 in respect of donations for the building fund and associated Gift Aid. Subsequent Events The have been no significant subsequ8nt events at the date ofthe signing of this reporL Page I
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorporated charity} TRUSTEES. REPORT FOR THE YEAR ENDED 31 MAY 2023 Available Funds and RgseNe$ On the basis that members paying subscriptions remain broadly at the current level, and donations and fundraising efforts continue to provide additional fvnds, the year ahead should enable the community tr) operate within available resources in relab'on to our ongoing activities and lo service our bank loan. It Ss the community's policy to keep its fiJnd$ on a bw-risk basss in accounts of high street bank& The funds represented by reserves held for specffi¢ purpose5 are simllarly held. Whilst the ageing demographics of members meang that membership income may decline over the coming years. the trustees continue to look at ways of introducing new members. Our balance sheet continues to show a satisfactory net a55et position, and we should be 8ble to settle bills during the period of at least 12 months following the approval of the accounts. Risk The major rtsk to the community is If membership subscription Income is not sufficient lo cover its expendf(ure. For this reason, the trustees Continue to keep careful control over expenditure. The trustees endeavour to set subscriptr'ons at a realistic level sufficient to meet routine expenditLtre. When setting membership subscription levels, the trustees also bear in mind that many members are on low fLYed incomes, and accordingly reductions in the level of subscriptions are agreed in some cases. The treasurer monitors the cash resources of the community on a regular basis to ensure that bona fide expenditure can be settled on a prompt basis. As a result of the covid pandemiG, certain fijndraising aclivitl85 that would otherwise have taken plac8 have had to be curtailed and although some actNities have continued online, fundraising revenues have decreased to some extent Volunteers The charity benefits from the substantial use of the seNices of volunteers, many of whom are trustees. Trustees The honorary officers as definad in the constitution, together with the other members of the management committee. are th8 trustees of the Ghaiity. There are no other trustees. Page 2
KOL CHAI HATCH END REFORM JEWISH COMNIUNITY (An unin¢orporated charity) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MAY 2023 The trustees are elected by the member5 of the community at the annual general meeting. In the event of any of these offiS not being filled at the annual general meeting or falling vacant during the year, the management committee may appoint a suitable member to hold office until the next annual general meeting. No payments have been made to the trustees in respect of services provided to the charity. Statement of the Trustees, Responsibilities The trustees are required by law to prepare financlal statements for each financial year which give a true and fair view of the state of affairs of the charity and ils results for that year. In preparing those financial statements, the trustees are requir& to... Select suitable accounting policies and apply them consistently. Make judgernents and estimates that are reasonable and prudent. Prepare the financial statements on a going concern basis unless it Is Inappropriate to assume that the charty will continue in operation. The trustees are responsible for keeping prO[r accounting record5 which disclose with reasonable accuracy at any time the financial position of the charity- They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The accounts have been prepared in accordan with the accounting policies set out in note 1 to the accounts and comply with the synagogue's constitution and The Charities (Accounts and Reports) Regulations 2008. Approval This reportwas approved by Ihe trustees and signed on their behalf on 6 October 2023. Page 3
Independent Examinerfs Report to the Trustees of Kol Chal Hatch End Jewish Community I report to the trustees on my examination of the accounts of the charity. set out on pages 5 to 13, for the year ended 31 May 2023. Responsibilities and basis of report As the charity's trustees, you are responsible for the preparation of the accounts in accordan with the requirements of the Chariknes Act 2011 ("the A¢r}. I report in respect of my examination of the charity's accounts Cated out under section 145 of the 2011 Act and in ¢arryirsg out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515)Ibl of the Act. Independent Examiner's staternont The charity's gross income exceeded £250,000 and l am qualified lo rertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales. I have completed my examination. I confim) that no material matters have come to my attention in connection with the examination whh gives me cause to believe that, in any material resP8Ct: the accounting records were not kept in accordance with section 130 of Ihe Charities Act, or the accounts did not accord with the accounting records.. or the accounts did not comply with the applicable requirements concerning the form and ontent of accounts set out in the Charities (AGcounts and Reports) Regulations 2008 other than any requirement that the accounts give a'true and fairt 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 connectlon with the examination to which attention should be drawn in Ihis report in order to enable a proper understanding of the accounts to be reached. Brlan Mu derrig IndepBndent Examiner Date.. 06. 10.2023 Gittins Mulderrlg Chartered A¢oountants Registered Auditors 6 High Street Northwood Mlddlesex HA6 1BN Page 4
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KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorporated charity) BALANCE SHEET AS AT 31 MAY 2023 2023 2022 FIXED ASSETS Land and buildin9S Fixturès. fittings and equlpmenl 647.094 27,949 862.S43 25,915 675,043 688,458 CURRENT ASSETS Debtors and prepaym8nts Bank and cash balances 135.923 63,050 198,973 24.764 47,325 72.089 CREDITORS Amounts falling due within one year NET CURRENT ASSETS 33,305 25,852 165.668 840,711 46.237 734,695 CREDITORS: Amounts falling du8 after more than one year 156.320 159,601 NET ASSETS 684,391 575,094 Unrestrscted Funds Income and eXpendIre account Capital reseryo 318.872 203.555 352,794 659,726 556,349 Re8trict¢d Funds Welfare fund PA furtd Educational trttsl fijnd Rabbi's discretionary fund Membership Development fund 2,291 866 8,562 7,946 5,000 2.297 7,702 7.886 10 24.665 684,391 18.745 575.094 Page 7
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorpDrated charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 ACCOUNTING POLICIES Accounting Conventlon These accounts have been prepared under the historical convention and in compliance with FRS102, the Financial Reporting Standard applicable in the UK. the Statement of Recommended Practice applicable to charities, effective 1 January 2019, and the Charities Act 2011. Golng Concern The trustees consider that there are no material uncertainties over the charity's ability to continue operations and accordingly the accounts are prepared on a going concern basis. Fund accountlng Unrestricted funds are those where there are no externalty imposed restrictions and therefore are available for use at the discretion of the trustees to further any of the ¢harityS purposes. Restricted funds are subject to restrictlons on their utilisation declared by the donor or through tre terms of an appeal. In¢omlng resources All income is included In the ststement of financial activities when entitlement has passed to the charity. Resources expgnded Expenditure is recognised on an accruals basis as 8 liability is incurred. Expenditure includes any VAT which cannot be recovered, and is classified under headings of the statement of financial activities to which it relates. Tangible assets and depreclatlon The fFeBhold premises Comprise the cost of the land and buildings,. the buildings are amortised at 20A of cost per annum bul the land 15 llot amDrbsed. Fixiurè5, fittings and equipment are depreciated at the rate of 25Yo of net book value per annum. Income tax repayments Income tsx repayments on subscriptions and donations are credited to income and expenditure account only when received. or accrued for only when receipt can be anticipated with reasonable certainty. Page 8
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorporated charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 FIXED ASSETS Land and BuildTngs These comprise the cost of knd and buildings at Woodriding$ Yard. Hatch End, Pinner. Middlesex, and include legal and professional fees and other associated costs. 2023 2022 Cost At the beginning of the year Additions during the year At the end of the year 872,446 762,033 110,413 872,446 872,446 Amortisation Al the beginning of the year Charge for the year 209,903 15,449 194,454 15,449 At the end of the year 225,352 209,903 Net Book Valug At the beginning of the year 662.543 567,579 At the end of the year 647,094 567,579 Fixtures, T5ng$ and equipment Cost Al Ihe beginning of Ihe year Additions during the year 79,667 11.350 69,058 10,611 At the end of the year 91,017 79,667 Depreciation At the beginning of the year Charge for the year 53,752 9.316 45,113 8,639 At the end of the year 63,068 53,752 Net Book Value At the beginning of the year 25,915 23,943 At the end of the year 27,949 25.915 Page 9
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorporated charty) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 2023 2022 DEBTORS AND PREPAYMENTS Income tax repayments Subscriptions in arrears Accrued inwme Other debtors and prepayments 13.108 1,051 115.000 6,764 5.679 448 18.637 135.923 24.764 Accrued income relates to the charis entrtlement to a share of the residuary estate of a former member. The amount of £115.000 is the amount of the interim distribution received after dale. 11 is anticipated that there will be a small final distribution in due course bul the amount of that cannot yet be determined as the eslate is still in administration. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Taxation and So¢ial Security Subscriptions recewed in advance Other creditors and accruals Bank loan 2.228 4,476 24,499 2,102 1.765 5,426 15.655 3.006 33.305 25,852 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank loan 156,320 159,601 To assist in the financing of improvements to the synagogue building. the communty enteied into a loan agreement wilh Kingdom Bank. lolal amount borrowed amounted to £170,963. The capital balance outstanding at 31st May 2023 was £158,42212022: £162,607). Inte$t 1$ Charged at a variable rate, which stood at 6.8% at the date of approval of these accounts. The loan tem was originally sel at 30 years. Monlhly inslalments ol capital and interest are being paid. It is the intention of the Trustees to periodically make additional capilal repayments in order to shorten the loan temi and save interest charges. 11 the loan terrn is not shortened it is estimated that the total of monthly inslalments of capital and interest for the remainder of the term would amount to approximately £353,000. Page 10
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorporated charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 5 INCOME AND EXPENDITURE ACCOUNT 2023 2022 Surplus brought foTWdrd Surplus12022: Deficit) for the year 203,555 99,867 303.422 15,449 318,871 214,776 -26,670 188,108 15,449 203.555 Transler ex Capital Reserve {Note 61- Building Amortisation Surplus carried forward enses Isee Page 6) Salaries. fees and National Insurance Jewish Joint Burial Society Reform Judaism membership levy Board of Deputies fe8s Insurance Printing, postage and stsl¢onery (incl. Koleinul Books Bank charges and interest Building setvices, m8intenance and renewals Sundry expenses Depreciation and amortisation Loan interest Rabbi's expenses Membership of Cllizens UK Independent examinatiors of acwunts Bookkeeping Computer and database expenses 115,471 10.502 26,328 495 2,027 7,710 498 3,746 14,950 2,273 24,765 8.889 2,327 2,000 1.200 1,425 11,770 107.929 22,337 22,665 495 3,416 8,111 607 3,741 19,224 5.098 24,088 5.734 1.937 2,000 1,200 5,180 236,176 233,762 Other Direct Charitable Ex enses Religion School expenses (incl. salaries & national insur8r8) High Holyday services and other religiou5 services Fundraising costs 18.084 19.669 3,465 14,080 10,540 3,109 41.218 27,729 Page11
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An unincorpoTated charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 2023 2022 CAPITAL RESERVE Balance brought forward AM0SatiOn on building {note 21 Donations received in the year re building works Gift Aid relating to donations re building works 8alance carried forward 352,794 -15,449 2,871 638 340,854 359.813 -15.449 6.819 1,611 352.794 VIELFARE FUND The WeKare Fund was established to allow the trustees to make specific donations, as they see fil, to needy causes in the community. Th&se ftJnd$ represent donations specffically designated for this purpose. 2023 2022 Balance bro¥Jght fonvard and carried foNard 2,291 2,291 Rgprosented by: Bank and cash balances 2,291 2.291 PA FUND The Paren15' Association IPA) was established ID SUPPOrt the adivitses of the religion school. Funds are raised from specific donations and fundratsing events. 2023 Z022 Balan brcojghl forward and c8rrièd forward 8S6 Represented by: Bank and cash balances 866 866 Page 12
KOL CHAI HATCH END REFORM JEWISH COMMUNITY (An UnInrporated ¢harityl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 EDUCATIONAL TRUST FUND The Educational Trust Fund, founded in the memory of one of r eady members, is avallabl& to $pon$or any member parbcipaling in a course or event Snlended to further Jewish learning or identity. The fund receives specific donations. 2023 2022 8rought foward and carried forward Donations recoived in the year 7.702 860 7.702 Balanc8 carried ford 8,562 7,702 Represented by: Bank and cash balances 8.562 7,702 io RABBI'S DISCRETIONARY FUND The Rabbl's Discretionary Fund was established to allowthe rabbl lo make specific donatlons for charitsble purposes. as he or she sees fit. The fund repres¢nts donations for this purpose from both inside and outside the Community. 2023 2022 Balan¢¢ brought forwaTd D¢)nations made in the year Donations received in the year 7.886 440 500 6,476 -200 1,610 Balan carried foThvard 7,946 7.886 Representsd by: Bank and cash balances 7.946 7.888 MEMBERSHIP DEVELOPMENT FUND The Membership Deveknpmertl Fund was established to provide financial 8UPPOrt for projects or activities designed to grow membership. 2023 2022 BalaTr brought foTward Donations received in the y8ar 5.000 Balan¢e carried foNard S,j0 Repres•nted by: Bank and cash balances 5,000 Page 13