The Hampstead Village Shul - Charities report - 21.1
The Hampstead Village Shul - Charities report - 21.1
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| THE HAMPSTEAD VILLAGE SHUL |
| Report of the Trustees and |
| Unaudited Financial Statements |
| for the Year Ended 31 August 2020 |
| THE HAMPSTEAD VILLAGE SHUL |
| Contents of the Financial Statements |
| for the year ended 31 August 2020 |
| Page |
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Cash Flow Statement | 7 |
| Notes to the Financial Statements | 8 | to | 12 |
| THE HAMPSTEAD VILLAGE SHUL (REGISTERED NUMBER: 06570781) |
| Report of the Trustees |
| for the year ended 31 August 2020 |
| The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). |
| Objectives and activities |
| Objectives and aims |
| The Shul's objectives are to advance Judaism through Jewish education and the provision and maintenance of a community centre and synagogue for the purpose of worship, conducting services, meetings and educational facilities. The synagogue and community centre is provided for spiritual and religious needs and advancing religious educational and charitable activities carried out in accordance with the principles of traditional orthodox Jewish laws and practices. This is done in conjunction with other and purposes that are recognised by English law as charitable and the Shul acts in association with other bodies having similar objects. |
| The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Shul should undertake. In this respect the Trustees have particularly considered the Charity Commission guidance on public benefit, including the guidance on public benefit and fee charging. |
| Significant activities |
| During the period the Shul has been affected by the Covid19 Pandemic and therefore all services were curtailed due to government guidance and even when we were permitted to open we believed that the building could not be made Covid safe so we remained closed. |
| Achievement and performance |
| Charitable activities |
| The Statement of Financial Activities shows a net surplus for the year of £191,924 (2019: loss of £8,732). |
| The Rabbi and his wife are fully focused on the core elements of the Shul and in particular the following: |
| Membership: |
| Despite Covid 19 and the cessation of most services and communal events the membership remained more or less static at 75 families. |
| Services: |
| As mentioned above all services were curtailed between March & August 2020. |
| Charitable Endeavours: |
| Despite the on-set of Covid we were still able to raise from our members £22,800 which we donated to other charities and to individuals in need of money for food particularly for the festival of Pesach. As in years past we are very proud of our ability to look beyond ourselves as a community. |
| Financial review |
| Principal risks and uncertainties |
| The Trustees acknowledge at all times the risks associated with the Shul's work as a charitable company. The Trustees ensure that its objectives, philosophy and strategy encompass the identification and control of risk at all times. They recognize that such risks involve; volatility in funding and other financial risks, reputation risk and law and regulation compliance risk. |
| To ensure that any such risk is identified, appropriate control measures are put in place. The Trustees have reviewed the major risks to which the charitable company is exposed and their potential impact. Actions have been taken or identified to mitigate them, and they will continue to be reviewed periodically. |
| Like most Charities the Shul has looked at how it is affected by the relatively new GDPR legislation. The Shul takes its responsibilities very seriously and we believe that we are protecting the personal information of the Shul's members as required by GDPR. |
| THE HAMPSTEAD VILLAGE SHUL (REGISTERED NUMBER: 06570781) |
| Report of the Trustees |
| for the year ended 31 August 2020 |
| Financial review |
| Reserves policy |
| It is the policy of the Shul that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Shul's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. |
| Going concern and Covid-19 |
| After making appropriate enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. The Shul has been fortunate to have built up significant reserves during 2020 due to a number of factors. The removal of any interest and capital needed to be paid since the extinguishing of its debt to the Vendor of the building, the increase in membership and the change in the way membership is being collected from single annual payments to monthly and quarterly direct debits. |
| Structure, governance and management |
| Governing document |
| The charity is controlled by its governing document, a deed of trust, and constitutes an incorporated charity. |
| Charity constitution |
| The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 19 June 2008. |
| The principal objects of the company are to advance Judaism through Jewish education and provide and maintain a community centre and synagogue. |
| Recruitment and appointment of new trustees |
| The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. |
| Organisational structure |
| The charity is ultimately governed by the Trustees who agree and monitor the forward plan and approve all of the charity's policies. The day to day running of the charity is delegated to staff under the leadership and guidance of the Trustees. |
| Trustees' meetings are held at least twice a year primarily to review financial reports, discuss issues of strategic direction, and programme priorities. |
| Induction and training of new trustees |
| Most trustees are already familiar with the practical work of the charity and familiar with the work of charities in general. New trustees are given briefings to provide personally tailored orientation to brief them as appropriate on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. If needed, trustees would be encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. |
| Reference and administrative details |
| Registered Company number |
| Registered Charity number |
| Registered office |
| THE HAMPSTEAD VILLAGE SHUL (REGISTERED NUMBER: 06570781) |
| Report of the Trustees |
| for the year ended 31 August 2020 |
| Trustees |
| Company Secretary |
| Independent Examiner |
| Haines Watts |
| New Derwent House |
| 69-73 Theobalds Road |
| London |
| WC1X 8TA |
| This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. |
| Approved by order of the board of trustees on |
| Independent Examiner's Report to the Trustees of |
| The Hampstead Village Shul |
| Independent examiner's report to the trustees of The Hampstead Village Shul ('the Company') |
| I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020. |
| Responsibilities and basis of report |
| As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
| Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. |
| Independent examiner's statement |
| Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW 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: |
| 1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
| 2. | the accounts do not accord with those records; or |
| 3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or |
| 4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). |
| I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. |
| Jonathan Moughton |
| ICAEW |
| Haines Watts |
| New Derwent House |
| 69-73 Theobalds Road |
| London |
| WC1X 8TA |
| 19 April 2021 |
| THE HAMPSTEAD VILLAGE SHUL |
| Statement of Financial Activities |
| (Incorporating an Income and Expenditure Account) |
| for the year ended 31 August 2020 |
| 2020 | 2019 |
| Unrestricted |
| fund | Total funds |
| Notes | £ | £ |
| Income and endowments from |
| Donations and legacies | 2 |
| Investment income | 3 |
| Total |
| Expenditure on |
| Charitable activities | 4 |
| Total |
| NET INCOME/(EXPENDITURE) | ( |
) |
| Reconciliation of funds |
| Total funds brought forward |
| Total funds carried forward | 1,326,965 |
| THE HAMPSTEAD VILLAGE SHUL (REGISTERED NUMBER: 06570781) |
| Balance Sheet |
| 31 August 2020 |
| 2020 | 2019 |
| Unrestricted |
| fund | Total funds |
| Notes | £ | £ |
| Fixed assets |
| Tangible assets | 9 |
| Current assets |
| Debtors | 10 |
| Cash at bank |
| Creditors |
| Amounts falling due within one year | 11 | ( |
) | ( |
) |
| Net current assets | ( |
) |
| Total assets less current liabilities |
| NET ASSETS |
| Funds |
| Unrestricted funds | 1,518,889 | 1,326,965 |
| Total funds | 1,326,965 |
| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020. |
| The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006. |
| The trustees acknowledge their responsibilities for |
| (a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
| (b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
| These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
| The financial statements were approved by the Board of Trustees and authorised for issue on |
| THE HAMPSTEAD VILLAGE SHUL |
| Cash Flow Statement |
| for the year ended 31 August 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 13 | 102,701 | 12,645 |
| Net cash provided by operating activities | 102,701 | 12,645 |
| Change in cash and cash equivalents in the reporting period |
102,701 |
12,645 |
| Cash and cash equivalents at the beginning of the reporting period |
52,977 |
40,332 |
| Cash and cash equivalents at the end of the reporting period |
155,678 |
52,977 |
| THE HAMPSTEAD VILLAGE SHUL |
| Notes to the Financial Statements |
| for the year ended 31 August 2020 |
| 1. | Accounting policies |
| Basis of preparing the financial statements |
| The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
| The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have taken into account the impact on the charity of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts |
| Income |
| All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
| Expenditure |
| Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Freehold property - 2% straight line on buildings |
| Short leasehold - 20% straight line |
| Fixtures and fittings - 25% straight line |
| Motor vehicles - 20% straight line |
| Taxation |
| The charity is exempt from corporation tax on its charitable activities. |
| Fund accounting |
| Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
| Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
| Government grants |
| Government grants are recognised in accordance with the accruals model. |
| THE HAMPSTEAD VILLAGE SHUL |
| Notes to the Financial Statements - continued |
| for the year ended 31 August 2020 |
| 2. | Donations and legacies |
| 2020 | 2019 |
| £ | £ |
| Gifts |
| Grants |
| Grants received, included in the above, are as follows: |
| 2020 | 2019 |
| £ | £ |
| Other grants | 12,313 | - |
| Other grants relate to government grant receivable in relation to the Coronavirus Job Retention Scheme. |
| 3. | Investment income |
| 2020 | 2019 |
| £ | £ |
| Rents received |
| 4. | Charitable activities costs |
| Support |
| Direct | costs (see |
| Costs | note 5) | Totals |
| £ | £ | £ |
| Events | 152,575 | 173,936 | 326,511 |
| Charitable donations | 22,800 | - | 22,800 |
| 175,375 | 173,936 | 349,311 |
| 5. | Support costs |
| Management |
| £ |
| Events | 173,936 |
| Support costs, included in the above, are as follows: |
| Management |
| 2020 | 2019 |
| Total |
| Events | activities |
| £ | £ |
| Wages | 32,573 | 32,883 |
| Pensions | 517 | 423 |
| Rent, rates, light & heat | 71,585 | 68,208 |
| Insurance | 3,515 | 3,419 |
| Postage and stationery | 7,895 | 2,557 |
| Travelling | 13,887 | 15,495 |
| Rabbi's hospitality | 12,578 | 7,188 |
| Communications | 4,354 | 4,322 |
| Carried forward | 146,904 | 134,495 |
| THE HAMPSTEAD VILLAGE SHUL |
| Notes to the Financial Statements - continued |
| for the year ended 31 August 2020 |
| 5. | Support costs - continued |
| Management - continued |
| 2020 | 2019 |
| Total |
| Events | activities |
| £ | £ |
| Brought forward | 146,904 | 134,495 |
| Bank charges | 269 | 355 |
| Repairs and renewals | 96 | 1,411 |
| Security costs | 6,505 | 11,328 |
| Independent examiner's costs | 3,123 | 2,880 |
| Cleaning | 9,944 | 11,889 |
| Writing of the Torah | 64 | 29 |
| Loan interest paid | (5 | ) | 3,883 |
| Motor expenses | 3,718 | 3,364 |
| Computer costs | 338 | 1,956 |
| Depreciation of motor vehicles | 2,980 | 3,000 |
| 173,936 | 174,590 |
| 6. | Net income/(expenditure) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Depreciation - owned assets |
| Other operating leases | 71,585 | 68,208 |
| 7. | Trustees' remuneration and benefits |
| There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019. |
| Trustees' expenses |
| There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019. |
| 8. | Staff costs |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Other pension costs |
| 33,090 | 33,306 |
| The average monthly number of employees during the year was as follows: |
| 2020 | 2019 |
| Admin |
| 2 | 2 |
| THE HAMPSTEAD VILLAGE SHUL |
| Notes to the Financial Statements - continued |
| for the year ended 31 August 2020 |
| 8. | Staff costs - continued |
| 9. | Tangible fixed assets |
| Fixtures |
| Freehold | Short | and | Motor |
| property | leasehold | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| Cost |
| At 1 September 2019 and 31 August 2020 |
| Depreciation |
| At 1 September 2019 |
| Charge for year |
| At 31 August 2020 |
| Net book value |
| At 31 August 2020 |
| At 31 August 2019 |
| 10. | Debtors: amounts falling due within one year |
| 2020 | 2019 |
| £ | £ |
| Prepayments and accrued income |
| 11. | Creditors: amounts falling due within one year |
| 2020 | 2019 |
| £ | £ |
| Trade creditors |
| Other creditors |
| 12. | Related party disclosures |
| There were no related party transactions for the year ended 31 August 2020. |
| 13. | Reconciliation of net income/(expenditure) to net cash flow from operating activities |
| 2020 | 2019 |
| £ | £ |
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) |
191,924 |
(8,732 |
) |
| Adjustments for: |
| Depreciation charges | 17,963 | 17,982 |
| (Increase)/decrease in debtors | (11,610 | ) | 3,910 |
| Decrease in creditors | (95,576 | ) | (515 | ) |
| Net cash provided by operations | 102,701 | 12,645 |
| THE HAMPSTEAD VILLAGE SHUL |
| Notes to the Financial Statements - continued |
| for the year ended 31 August 2020 |
| 14.. | Analysis of changes in net funds |
| At 1/9/19 | Cash flow | At 31/8/20 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 52,977 | 102,701 | 155,678 |
| 52,977 | 102,701 | 155,678 |
| Total | 52,977 | 102,701 | 155,678 |