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2021-12-31-accounts

Charity registration number 504336

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

LEGAL AND ADMINISTRATIVE INFORMATION

Minister Rabbi A M Lipsey Honorary officers President Dr R A Grant Vice president Mrs A N Ross Wardens Mr P Niman Dr R A Grant Immediate past President Mr AA Josephs Council life member Mr S D Pearlman Elected by the General meeting of the United Hebrew Congregation on 20 December 2021 Honorary Legal Advisor Mr B N Speker OBE, DL Trustees Mr H B Gold Dr R A Grant Mr B N Speker OBE, DL Mr A A Josephs Secretary Ms M Conway Office of the United Hebrew Congregation Lionel Jacobson House Graham Park Road Newcastle upon Tyne NE3 4BH Telephone/Fax: 0191 284 0959 Email: secretary@uhcnewcastle.uk Charity number 504336 Principal address Office of the United Hebrew Congregation Lionel Jacobson House Graham Park Road Gosforth Newcastle upon Tyne NE3 4BH Independent examiner RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Bankers NatWest Bank Plc Barclays Bank Plc Lloyds Bank Plc

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

LEGAL AND ADMINISTRATIVE INFORMATION (CONTINUED)

Burial Committee Chair Mrs P Gold Vice Chair Mrs H Freeman Kosher Facility & Kashrus Committee Rabbi A M Lipsey Mrs A N Ross Mrs G Sterrie Mr R Goldsmith Functions Committee Mrs A N Ross Mr M Gilbert Mrs A Gilbert Mr R Goldsmith Mrs E Goldsmith Mrs E Jackson Mr S Jackson Mr C Van der Velde Mrs D Van der Velde

Representatives of the United Hebrew Congregation to the Representative Council of North East Jewry:

Mrs P Gold Mrs A N Ross Mr H B Gold Mr A A Josephs Mr P Baker

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

CONTENTS

Page
Message from Rabbi Aaron Lipsey 1 - 2
Trustee's report 3 - 4
President's annual report 5 - 8
Finance committee report 9
Independent examiner's report 10
Statement of financial activities 11 - 12
Balance sheet 13
Notes to the accounts 14 - 28

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

MESSAGE FROM RABBI AARON LIPSEY

Dear Friends,

We often think of growth in linear ways. If I am producing an email update a week, that is roughly four per month, and 52 per year. And there is something to that. But when it comes to our community there is no way growth can be measured like that.

Every year, when the anniversary of our arrival to Newcastle comes around, I am amazed at how quickly the year went. I often reflect that our arrival here coincides with the birthday of our fifth child, Matti. So, in August we were up to eleven candles on the cake!

Our community is so much more than a Shul and what happens away from the public eye is often what moves me the most. Over the past few years, first COVID and then the sale of our beloved Shul building along with the associated (and ongoing) refurbishment process of Lionel Jacobson House means we have gone through tremendous upheaval and a major reorientation. And here are three of the most important things I have learned in the process. Clearly, you will see that they don’t apply just to the community as a whole, but to each and every one of our lives:

1. Everyone has a voice and needs to be heard:

Our community has never been solely about professionals expertly sharing their opinions (don’t get me wrong . . . we have some very talented professionals as well). It is about recognizing that every single person has something unique to contribute, and a vantage point that others can learn and grow from. My perspective has something to offer you, and yours to me.

2. Community provides strength and support unlike anything else:

One of the goals of a community is to have a safe and open place for people to share their physical and spiritual challenges and for others to step forward and support you through them. Knowing we are not alone, knowing others understand us, knowing that even in our pain we have that voice, can mean the world. It can transform our world.

3. We never know the impact we have:

I am so often inspired by the reports I hear of your acts of goodness and kindness. You really are a blessing to those around you. Whether it is making hospital visits or delivering meals, running friends to the station to catch a train, or offering emotional support, you are making a real difference to the lives of those you touch.

Miriam and I have benefited from your kindness as much as anyone else. The refurbishment of our flat has drawn some really positive, affirming comments about our place here, both literally and metaphorically, and we are so grateful to the community for caring about us as you do. We are excited to be back in Lionel Jacobson House and as the works approach completion in the coming months we hope to be able to invite you in to join us for a Shabbat meal or occasion.

So that is why, as we celebrate the eleventh birthday of our precious time in this community, I say that we cannot judge its growth in linear terms. It wouldn’t make great reading, and it would completely miss the point. I could never begin to tell you how many lives we have touched. And when I say “we,” I don’t mean me and Miriam. I mean us and you. Because every time you reach out to someone else, you change things. And that change is exponential.

Here’s a great mathematical understanding of just what exponential growth means. Here is the scenario: You have won the lottery. You have two choices for the winnings. You can either walk away on the spot with £1 million, or you can receive one penny a day, doubled, for the next 30 days. So, which do you choose?

At first glance, a million pounds is a lot of money. And a penny most certainly isn’t. True. But that penny, as small and insignificant as it seems, gains a lot of momentum as it joins with other pennies. Here is what happens.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

MESSAGE FROM RABBI AARON LIPSEY

Day 1: 1 penny. Day 2: 2 pennies. Day 3: 4 pennies. So, not moving very fast here. By day 15: £327. Halfway through the month, and £1 million most certainly sounds like the right choice. Even by day 20: £10,484. Day 25: £335,544, and you know those who chose the £1 million pay-out are laughing. But then things change. Radically. At day 27, just when the month is about to end, you hit £1,342,177. Day 28: over £2 million. Day 29: over £5 million. And then, on day 30: £10,737,418. One more month, and you would be worth more than the entire global economy. You’d have more money than the world!

We are all pennies. Each one of is valuable, but our true power shows when we unite. Bring us together, and we are unstoppable. Indestructible. Exponential.

Thank you for another year with UHC. I look forward to growing together beyond our wildest imaginations.

Aaron

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's constitution, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”

OBJECTIVES AND ACTIVITIES

The objects of the charity, as set out in clause 3 of the Constitution, are, in summary:

Public benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

The Statement of Financial Activities for the year is set out on page 11 - 12. Core activities include:

ACHIEVEMENTS AND PERFORMANCE

A review of the charity's achievements and performance during the year can be found on page 12 onwards of these financial statements.

FINANCIAL REVIEW

Results for the year

As a consequence of the sale of the Synagogue during the year the charity reported a surplus of £1,175,659 (2020: deficit £68,405). The results after adjusting for the profit made on the sale would have been a deficit of £94,011. The Kosher Food Facility made a deficit of £7,251 (2020: £4,570).

Policies on Reserves

The charity holds reserves in order to ensure that the UHC can maintain the level of services to the community which it currently provides. In considering the policy on reserves we consider that our free reserves (being those not tied up in fixed assets) should be sufficient to meet our charitable expenditure for approximately six months.

Following the sale of the Shul in the year the charity held free reserves at the end of the year in the region of £1.7m, the majority being cash. Following the refurbishment of Lionel Jacobson House the council are confident that significant surplus funds will remain which can be invested to secure the future of the charity.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Risk management

The members of Council actively review the risks to which the charity is exposed on a regular basis and confirm that systems have been established to enable regular reports to be produced so that steps can be taken to lessen the impact of these risks.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by its constitution as amended 8 May 2008.

Trustees

The Trustees who served during the year were: Mr H B Gold Dr R A Grant Mr B N Speker OBE, DL Mr A A Josephs

Appointment of Trustees

Clause 20 of the Constitution provides for the appointment by the Council of trustees of any property acquired by or for the purposes of the congregation.

Organisational structure

This is as set out on the legal and administrative information pages of the report.

Key management personnel remuneration

The trustees consider the board of trustees and the members of the council as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. Details of trustee and key management remuneration and expenses are disclosed in note 8 to the accounts.

The Trustee's report was approved by the Board of Trustees.

Dr R A Grant Trustee

Dated: 13 December 2022

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

PRESIDENT'S ANNUAL REPORT

2022 President’s Report

I am pleased to present the President’s report for 2022.

There is no doubt that our community is going through another dramatic change in its life. Within living memory, we seem to do this from time to time; there was the decision to close three Synagogues and the merging of their congregations nearly 40 years ago. Then there was the truly sad decision to close the beautiful new Synagogue which was built to replace the three Synagogues and now, at the time of writing, we are close to moving into our “new” premises in the Lionel Jacobson House. More on this later....

The Coronavirus pandemic and religious services

We started the year at the tail-end of Covid so in February, we tentatively started returning to normal arrangements for services although given the advanced age of most of our members, we did keep the plastic shields around the Bimmah in place for several months more. Ultimately, later in the year, as more “jabs” were offered to the population, we finally removed the shields. I think everybody was thankful for that!

Yomim Naroim

Our services were again lead by Rabbi Lipsey and Binyomin Herskowitz and on Rosh Hashana 1 and 2 and Yom Kippur and we thank Rabbi Herskowitz for his help.

Our two Chatanim were Michael Gilbert (Chatan Torah) and Moish Lipsey (Chatan Bereishit) and whilst numbers were very much down on years gone by, it was still very much enjoyed by those present – and undoubtedly helped by Michael’s whisky!

Rabbi Lipsey

Rabbi Lipsey and Rebbetzin Miriam continue to lead our small community with unbounded enthusiasm.

Rabbi Lipsey remains a source of help and advice whenever I am faced with communal matters in my roles of President and Gabbai and for that I thank him.

Sale of the Shul

The sale of the Shul completed successfully and without further glitches in April 2021. A date of 31 May 2022 was agreed for us to leave the current Shul building but two factors rather overtook those plans, one against us and one in our favour. Firstly, it became worryingly clear that the plans for the House were falling way behind. Largely, this was due to the inability of the architect to obtain tenders from contractors mainly because of a serious lack of materials. Clearly the House wasn’t going to be finished in time for the planned opening date.

The second factor played to our advantage. It became known to us that the development company which had bought the Shul was suffering financial difficulties and indeed, one of their subsidiaries went into administration one week after we were paid. (Phew!). Allied with this was that the developers were having difficulty in gaining planning permission and indeed, as I write in December, they still haven’t got what they need and may not until the Spring of 2023. This is to our benefit as we have not been heaved out of the Shul before our new home is finished.

Development of the Lionel Jacobson House

Members will have seen months of activity in and around the House. A huge amount of work has gone into this and the Executive has taken every effort to make the building attractive, comfortable and inviting. Above all, I have insisted that the building be warm and well-lit internally, we really do want a building that is very much the opposite of what eventually happened to the Shul which over the years, has gone dark and uninviting.

A completely new high-efficiency heating boiler has been installed, with effective (and silent) radiators (gone are the old noisy “blowers”) and which provides near-immediate hot water at the taps. Lighting is the new all-LED type and consumes a quarter of the electricity that the many tungsten and fluorescent bulbs in the old Shul did so I expect our energy consumption bills to fall dramatically – something which is of critical importance in the current political climate.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

PRESIDENT'S ANNUAL REPORT

Because it simply wasn’t possible to synchronise us leaving the old Shul and moving into the House, whilst refurbishment work was being completed, a house on Kenton Park had to be rented for Rabbi Lipsey and his family. Rabbi Lipsey will be returning to his flat upstairs very shortly.

Further updates re the building work will be given at the AGM.

Sale of Land at Hazlerigg

We have made further progress regarding the sale of surplus land at Hazlerigg. We now have an interested party who is anxious to buy but there are some administrative issues to overcome before a sale can go through. I know that the buyer is very keen, I remain hopeful that we can conclude very shortly.

Barry Speker has continued to advise us on the legal aspects of the sale and has helped me coordinate with our solicitors. I thank him for his valuable help.

Youth and Education

I should like to thank Rabbi and Rebbetzin Lipsey and all those who have helped this year. Rabbi and Rebbetzin Lipsey are prepared for any child or, or for that matter, adult who may wish to learn, you just need to ask!

I should like to thank Deanna Van der Velde for the time she devotes to education about Judaism, anti-Semitism and the Holocaust in the wider community. Because of the pandemic, Deanna had to drop her school visits, but I know that she is keen to resume these once we are into the new building. I thank her for her efforts in this and her inter-faith work, a truly important aspect of inter-communal relations.

Chevra Kadisha

The Chevra Kadisha team have continued to provide the level of service of which we are justifiably proud. I want to thank Pamela Gold, our Chairman of Chevra Kadisha, her co-Convenor Hilary Freeman and all members of the Chevra Kadisha, and in particular, Tzviki Sandler and the Gateshead Hebrew Burial Society who go about their work in a quiet, efficient and unassuming way.

Treasurer

In particular I would like to mention both Raymond Goldsmith in his role as Treasurer and Walter Knoblauch as bookkeeper. These two roles are onerous at the best of times and especially under the present workload with the redevelopment of the House but both of these gentlemen have worked hard and diligently to keep our accounts up-to-date and all the bills paid promptly.

Ladies’ Guild

The Ladies’ Guild continues to work tirelessly for the benefit of the Congregation. As well as organising the weekly Kiddushim, they have catered a variety of events such as refreshments at Purim, Simchas Torah and on other occasions, and in cleaning the Shul silver prior to Rosh Hashanah.

In particular, I should like to thank co-Chairs Adrienne Ross and Gloria Sterrie and all their dedicated helpers for their hard work throughout the year, and for the charm with which they carry out their duties.

Secretary

A big thanks to Michelle Conway for her calm efficiency in running the office successfully on just a few hours a week. Michelle has been working from home for the past few months whilst the House was vacated and I’m pleased to say that this has worked well and all the necessary work has been completed promptly. Hopefully, Michelle will be returning to her newly-refurbished office soon.

Kosher Facility

When we vacated the House, we moved the Kosher Facility to the Roman Catholic church on Church Road. Lee Harrison, our manager, has continued to keep the facility running throughout the closure.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

PRESIDENT'S ANNUAL REPORT

I should like to thank Raymond Goldsmith who works closely with Lee to ensure that members of the Congregation can make vital purchases to enable Kashrut to be kept in the Community and to provide a wide range of tasty delights to tempt us throughout the year and at Pesach. Please do support our Facility whenever you can. We are grateful to Lee and those volunteers, who help when necessary, and have been willing to deliver orders recently.

I also would like to thank Father Agley for his permission and cooperation in letting us use his premises.

Functions Committee

The Functions Committee under Adrienne Ross has not been active. Simply, we didn’t have any premises but this will sort itself out in due course.

Adviser on legal matters

I should like to thank our legal adviser, Barry Speker, who continues to provide his support and advice whenever needed. Again, we have made heavy demands of him and he has responded in his usual authoritative and efficient manner to the many phone calls and emails and I am very grateful for his assistance and valued counsel.

Security

We have continued to use security from a company recognised by CST and have had the use of a guard for Shabbat and Yomtov. This has been funded principally from a small levy paid for by members and I can report that this has been very successful and helped by occasional financial supplements from CST when their own coffers allowed.

On a parallel front, I am pleased to say that the community has not suffered any major assault on its property or members over the last year so in this respect, there’s little to report.

Once we have moved back into the House there will be a full CCTV monitoring system which will offer 24/7 monitoring of the entire site from a control room at CST’s headquarters in London. CST will be helping fund this.

Caretaking

Mike Robson, our caretaker has worked indefatigably and he continues to provide a high level of service on the site giving prompt attention to anything that needs it and goes out of his way to be as helpful as possible. It’s not obvious, but he has spent innumerable hours moving furniture etc, helping move the Rabbi out of his flat, setting him up in his temporary accommodation and moving everything back in again – all done quietly behind the scenes.

Mitzvah Day

Mitzvah day was celebrated again this year and the community rallied round in a big way under the guidance of Brenda Levinson. Some 30 volunteers helped this year and made the Day a great success for a very worthwhile cause. Well done, Brenda and ladies.

Memorial lights

The Memorial Boards in the small Shul in the House have now been taken down. However, we have plans to install a new automated video system in its place with the refurbishment and this will take over the manually operated system that has been used for many years.

Condolences

The following members passed away during the year. Condolences are extended to their families; Jackie Sidman, Anfre Levinson, Sybil Vyner, Dita Rowland, Hazel Josephs, Alan Rakison and Malcolm Sandler.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

PRESIDENT'S ANNUAL REPORT

Finally

In conclusion, I should like to record my gratitude to the members of Council for their support and advice, and in particular to Adrienne Ross, Raymond Goldsmith and my co-Gabbai, Peter Niman who quietly organises the Maftirs, the Shul boards and other administrative matters in connection with services and of course, Rabbi Lipsey for his untiring support and friendship throughout a difficult time and Rebbetzin Lipsey for all the quiet work she does behind the scenes.

Richard Grant

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

FINANCE COMMITTEE REPORT

I present my report for 2021, a year in which we incurred a loss of £94,011 (2020: £68,405) after adjusting for the surplus gain on the disposal of the Shul.

Both our income and our expenditure have reduced, income due to the reduction in our membership, sadly, and a reduction in donations, and our expenditure because of continued Legal and Professional charges. We are still looking actively at ways of reducing our overheads. Richard in his President’s Report has already stated that we will have much more energy efficient heating and lighting systems in LJ House.

Discussions are still ongoing with the prospective sale of the land at Hazelrigg and we are hopeful that the sale

will be completed very soon.

Whilst the sale of the shul has for the time being and at last given us a positive bank balance this is likely to be only for a short period of time. The costs of refurbishing Lionel Jacobson House to provide us with a modern shul and community building has used up a lot of these funds and this is reflected in the increase in the losses for 2021. It is inevitable that the income will reduce & it will become necessary to use the proceeds of the sale to keep our community solvent.

I would like to thank the Honorary Officers and the Finance Committee for their support during the year, Walter Knoblauch for his work on the Gift Aid repayment claims and salaries and RMT for their assistance, their advice and for the audit work.

Raymond Goldsmith Treasurer

Dated: 13 December 2022

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

I report to the Trustees on my examination of the financial statements of United Hebrew Congregation of Newcastle Upon Tyne (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

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

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

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 financial statements to be reached.

Stephen D Slater FCA for and on behalf of RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

Dated: 13 December 2022

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Current financial year
Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
66,324
-
Charitable activities
4
183,679
-
Other trading activities
5
-
-
Investments
6
134
-
Other income
7
1,269,670
-
Total income
1,519,807
-
Expenditure on:
Charitable activities
10
341,596
145
Other
12
2,407
-
Total resources expended
344,003
145
Net income/(expenditure) for the year/
Net movement in funds
1,175,804
(145)
Fund balances at 1 January 2021
699,736
73,041
Fund balances at 31 December 2021
1,875,540
72,896		 Total
2021
£
66,324
183,679
-
134
1,269,670
1,519,807
341,741
2,407
344,148
1,175,659
772,777
1,948,436		 Total
2020
£
13,188
196,642
305
35
1,050
211,220
279,625
-
279,625
(68,405)
841,182
772,777

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Prior financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
13,188
-
Charitable activities
4
196,642
-
Other trading activities
5
305
-
Investments
6
35
-
Other income
7
1,050
-
Total income
211,220
-
Expenditure on:
Charitable activities
10
279,445
180
Total resources expended
279,445
180
Net income/(expenditure) for the year/
Net movement in funds
(68,225)
(180)
Fund balances at 1 January 2020
767,961
73,221
Fund balances at 31 December 2020
699,736
73,041		 Total
2020
£
13,188
196,642
305
35
1,050
211,220
279,625
279,625
(68,405)
841,182
772,777

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets/(liabilities)
Total assets less current liabilities
Income funds
Restricted funds
21
Unrestricted funds
20		 2021
£
£
233,314
9,197
23,936
1,741,414
1,774,547
(59,425)
1,715,122
1,948,436
72,896
1,875,540
1,948,436		 2020
£
£
1,145,535
9,347
36,719
62,371
108,437
(481,195)
(372,758)
772,777
73,041
699,736
772,777

The accounts were approved by the Trustees on 13 December 2022

Dr R A Grant President

Mr R Goldsmith Treasurer

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

United Hebrew Congregation of Newcastle Upon Tyne is a charity governed by its constitution as adopted 18 December 1972 and subsequently altered by scheme dated 5 August 1999 as amended 8th May 2008.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Constitution, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The Board has concluded that the going concern assumption is appropriate in preparing these financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the members of the council in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions 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.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is classified under the principal categories of charitable expenditure and governance costs.

Charitable expenditure relates to direct charitable expenditure as well as the management and administration of the charity.

Governance costs are general costs which have been incurred in order that the charity can operate effectively and in generating the information required for public accounting.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings No depreciation Property improvements No depreciation Fixtures and fittings 15% reducing balance

No depreciation is provided on freehold property and property improvements as the Council consider that the sum involved is not material, having regard to the Congregation's policy to keep the property in a high state of repair.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

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

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Scrolls of the Law, Silver Plate and other Religious Articles

The Synagogue has numerous items falling within this category. In the absence of documentary evidence or other information, no historical cost can be allocated and they consequently do not appear as part of the assets of the Congregation. The items included under this heading are insured at a value of £235,602.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 66,324 13,188
Donations and gifts
Hebrew classes share of Kol Nidre - 4,534
Memorial lights - 79
Visiting resources fund 174 40
Offerings and donations 4,868 4,052
Security levy 3,708 3,900
Arba Mimim (519) 583
Legacies 51,158 -
Other 6,935 -
66,324 13,188

4 Charitable activities Current financial year

Religious
activities
Kosher food
facility
Burial
provision
2021
2021
2021
£
£
£
Sales within charitable activities
-
86,739
19,904
Membership contributions
57,918
-
12,868
Other income
6,250
-
-
64,168
86,739
32,772
Analysis by fund
Unrestricted funds
64,168
86,739
32,772		 Total
2021
£
106,643
70,786
6,250
183,679
183,679		 Total
2020
£
108,168
74,534
13,940
196,642
196,642

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4
Charitable activities
Prior financial year
Sales within charitable activities
Membership contributions
Other income
Analysis by fund
Unrestricted funds		 Religious
activities
Kosher food
facility
£
£
-
85,518
61,084
-
13,940
-
75,024
85,518
75,024
85,518		 (Continued)
Burial
provision
Total
2020
£
£
22,650
108,168
13,450
74,534
-
13,940
36,100
196,642
36,100
196,642		 (Continued)
Burial
provision
Total
2020
£
£
22,650
108,168
13,450
74,534
-
13,940
36,100
196,642
36,100
196,642
196,642
196,642

5 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2021 2020
£ £
Contributions for use of premises - 305
6 Investments
**Unrestricted ** Unrestricted
funds funds
2021 2020
£ £
Interest receivable 134 35
7 Other income
**Unrestricted ** Unrestricted
funds funds
2021 2020
£ £
Net gain on disposal of tangible fixed assets 1,269,670 -
Other income - 1,050
1,269,670 1,050

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

Key management are considered to be the President, Treasurer, Board of Trustees, and the Committee Members who do not receive any remuneration.

9 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Religious staff 2 2
Kosher food facility staff 2 2
Governance staff 1 1
Total 5 5
Employment costs 2021 2020
£ £
Wages and salaries 72,538 59,764
Social security costs 2,053 2,082
Other pension costs 1,991 1,950
76,582 63,796

There were no employees whose annual remuneration was more than £60,000.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Charitable activities Current financial year

Religious
activities
Kosher food
facility
Burial
provision
2021
2021
2021
£
£
£
Staff costs
57,378
19,204
-
Depreciation and impairment
1,732
-
-
Kosher food facility cost of sales
-
71,869
-
Kiddushim and hospitality
6,913
-
-
Property expenses
35,575
-
-
Janitorial expenses
26,190
1,020
-
Repairs and maintenance
7,078
699
-
Telephone
1,110
240
-
Postage and stationery
2,955
110
-
Burial committee
-
-
20,230
Festival expenses
6,488
-
-
Motor expenses
5,409
125
-
Bookkeeping
4,320
-
-
Bank, credit card and interest charges
927
723
-
Legal and professional charges
62,861
-
-
Sundry expenses
4,635
-
-
223,571
93,990
20,230
Share of governance costs (see note 11)
3,950
-
-
227,521
93,990
20,230
Analysis by fund
Unrestricted funds
227,376
93,990
20,230
Restricted funds
145
-
-
227,521
93,990
20,230		 Total
2021
£
76,582
1,732
71,869
6,913
35,575
27,210
7,777
1,350
3,065
20,230
6,488
5,534
4,320
1,650
62,861
4,635
337,791
3,950
341,741
341,596
145
341,741		 Total
2020
£
63,796
2,040
68,757
7,222
32,905
26,343
7,481
1,723
1,883
15,105
3,081
6,306
4,320
6,629
26,004
2,080
275,675
3,950
279,625
279,445
180
279,625

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Charitable activities

(Continued)

Prior financial year

Religious
activities
Kosher food
facility
Burial
provision
£
£
£
Staff costs
45,885
17,911
-
Depreciation and impairment
2,040
-
-
Kosher food facility cost of sales
-
68,757
-
Kiddushim and hospitality
7,222
-
-
Property expenses
32,905
-
-
Janitorial expenses
25,103
1,240
-
Repairs and maintenance
7,106
375
-
Telephone
1,473
250
-
Postage and stationery
1,832
51
-
Burial committee
-
-
15,105
Festival expenses
3,081
-
-
Motor expenses
6,054
252
-
Bookkeeping
4,320
-
-
Bank, credit card and interest charges
6,027
602
-
Legal and professional charges
26,004
-
-
Sundry expenses
2,080
-
-
171,132
89,438
15,105
Share of governance costs (see note 11)
2,970
650
330
174,102
90,088
15,435
Analysis by fund
Unrestricted funds
173,922
90,088
15,435
Restricted funds
180
-
-
174,102
90,088
15,435		 Total
2020
£
63,796
2,040
68,757
7,222
32,905
26,343
7,481
1,723
1,883
15,105
3,081
6,306
4,320
6,629
26,004
2,080
275,675
3,950
279,625
279,445
180
279,625

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11
Support costs
Support
costs
Governance
costs
£
£
Audit fees
-
3,050
Accountancy
-
900
-
3,950
Analysed between
Charitable activities
-
3,950		 2021
Support
costs
Governance
costs
£
£
£
3,050
-
3,050
900
-
900
3,950
-
3,950
3,950
-
3,950		 2020
£
3,050
900
3,950
3,950

Governance costs includes payments to the independent examiners of £3,050 (2020: £3,050) for independent examination fees and £900 (2020: £900) for non-examination fees.

12 Other

**Unrestricted ** Unrestricted
funds funds
2021 2020
Financing costs 2,407 -

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Tangible fixed assets
Freehold
land and
buildings
Property
improvements
Fixtures and
fittings
£
£
£
Cost
At 1 January 2021
1,087,729
46,314
101,614
Disposals
(910,489)
-
-
At 31 December 2021
177,240
46,314
101,614
Depreciation and impairment
At 1 January 2021
-
-
90,122
Depreciation charged in the year
-
-
1,732
At 31 December 2021
-
-
91,854
Carrying amount
At 31 December 2021
177,240
46,314
9,760
At 31 December 2020
1,087,729
46,314
11,492
Freehold land and buildings
2021
£
Land at Hazelrigg Cemetery
36,908
Extension at Hazelrigg Cemetery
140,332
The Synagogue, Lionel Jacobson House, and Marion Abrahams Hall
at Graham Park Road
-
177,240
14
Stocks
2021
£
Kosher food
9,197
15
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
14,458
Other debtors
8,288
Prepayments and accrued income
1,190
23,936		 Total
£
1,235,657
(910,489)
325,168
90,122
1,732
91,854
233,314
1,145,535
2020
£
36,908
140,332
910,489
1,087,729
2020
£
9,347
2020
£
12,126
23,696
897
36,719

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

16
Creditors: amounts falling due within one year
Notes
Bank overdrafts
17
Other borrowings
Deferred income
18
Trade creditors
Other creditors
Accruals
17
Loans and overdrafts
Debenture loans
Bank overdrafts
Payable within one year		 2021
£
2,537
-
34,398
3,197
12,218
7,075
59,425
2021
£
-
2,537
2,537
2,537		 2020
£
867
150,000
158,006
5,184
138,783
28,355
481,195
2020
£
150,000
867
150,867
150,867

The short-term loans that were secured by fixed charges over the freehold land and buildings were satisfied during the year.

18 Deferred income

Arising from deposits on sale of property
Arising from Arising from Burial provisions
Deferred income is included in the financial statements as follows:
Current liabilities		 2021
£
-
34,398
34,398
2021
£
34,398		 2020
£
105,159
52,847
158,006
2020
£
158,006

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge in the year in respect of defined contribution schemes was £1,950 (2020: £1,880).

20 Unrestricted funds

Current financial year

Movement in funds
Balance at 1 Incoming Resources Balance at 31
January resources expended December
2021 2021
£ £ £ £
General funds 699,736 1,519,807 (344,003) 1,875,540
Prior financial year
Movement in funds
Balance at Incoming Resources Balance at 31
1 January resources expended December
2020 2020
£ £ £ £
General funds 767,961 211,220 (279,445) 699,736

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Resources Balance at Resources Balance at
1 January expended
1 January		 expended 31
2020 2021 December
2021
£ £ £ £ £
Bloom & Gordon scholarship fund 7,050 - 7,050 - 7,050
Gertrude Pass bequest 35,024 (180) 34,844 (145) 34,699
Sunderland Chevra Kadisha 9,957 - 9,957 - 9,957
Grave maintenance fund 21,190 - 21,190 - 21,190
73,221 (180) 73,041 (145) 72,896

Bloom & Gordon scholarship fund

Expenditure from this fund represents awards made and books purchased. Total awards during the year amounted to £Nil (2018: £Nil). The fund is represented by investments and other current assets.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Restricted funds

(Continued)

Gertrude Pass bequest

This fund is to be used for the provision and maintenance of the kitchen and catering equipment.

Sunderland Chevra Kadisha

Represents funds held to meet the cost of the up keep of Bishopwearmouth Cemetery.

Grave maintenance fund

Represents funds of £21,190 donated in 2013 for the specific purposes of maintaining the graves of family members.

22 Analysis of net assets between funds

Unrestricted
Restricted
2021
2021
£
£
Fund balances at
31 December are
represented by:
Tangible assets
220,167
13,147
Current assets/(liabilities)
1,655,373
59,749
1,875,540
72,896		 Total Unrestricted
Restricted
2021
2020
2020
£
£
£
233,314
1,132,388
13,147
1,715,122
(432,652)
59,894
1,948,436
699,736
73,041		 Total
2020
£
1,145,535
(372,758)
772,777

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

23 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
756
-
756		 2020
£
4,532
756
5,288

24 Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts owed to related
parties
2021 2020
£ £
Trustees - 10,000
Key management personnel - 15,000
- 25,000

No guarantees have been given or received.

UNITED HEBREW CONGREGATION OF NEWCASTLE UPON TYNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

25 Kosher Food Facility

Kosher Food Facility was set up to provide kosher food to congregation members. The income and expenditure for the year ended 31 December 2021 relating to the Kosher Food Facility is detailed below:

Sales income
Opening stock
Purchases
Closing stock
Gross profit
Administration expenses
Wages
Other expenses
Deficit on activities		 2021
£
£
86,739
9,347
71,719
(9,197)
(71,869)
14,870
19,204
2,917
(22,121)
(7,251)		 2020
£
£
85,518
10,148
67,956
(9,347)
(68,757)
16,761
17,911
3,420
(21,331)
(4,570)

The net book value of fixed assets shown in note 13 includes £13,194 (2020: £13,194) relating to the establishment of the Kosher Food Facility. This was funded by the Gertrude Pass Fund.