The trustees present their annual report and financial statements for the year ended 31 March 2023.
The charity's objects are to provide a residence and financial assistance for any person who is for the time being or has at any time been the incumbent Rabbi of the Central Synagogue, to advance the Jewish religion for the benefit of the public on such terms as the trustees think fit and to donate to other charitable causes.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Charity is the owner of a long leasehold apartment, now occupied rent-free by Rabbi Barry Marcus MBE following his retirement as Rabbi of Central Synagogue in London on 31 October 2018. The Rabbi is liable for all the utility charges and minor repairs at the property but the charity, as landlord, is liable for service charges and major repairs. As Rabbi Marcus would suffer a serious reduction in his income and standard of living upon his retirement, the trustees raised a testimonial for him in April 2018.
Donations of £Nil (2022: £Nil) were received in the year. During the year expenditure totalled £5,474 (2022: £8,702). Based upon the expertise of one of the trustees who has considerable experience in residential property investment, the trustees considered that the fair value of the charity's residential property investment at 31 March 2023 was £440,000.
Investment policy and performance
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s 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 charity’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.
Risk management
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for the future
The charity's future plan is to work in the most efficient and effective way towards achieving its objectives.
The charity is a company limited by guarantee, incorporated on 7 March 2008 and is also a registered charity, governed by its Memorandum and Articles of Association and by the Charities Act 2011.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The power to appoint new Trustees is vested in the board of Trustees.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees are responsible for day to day matters and the management of the trust.
Trustees are expected to identify their training needs and to take measures to ensure that these needs are met.
The trustees' report was approved by the Board of Trustees.
Investment management costs
The statement of financial activities includes all gains and losses recognised in the year.
Devonshire Street Charitable Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Devonshire House, 1 Devonshire Street, London, W1W 5DR.
The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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 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 accounts have been prepared under the historical cost convention (modified to include the revaluation of leasehold property) and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the accounts, 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 accounts.
Unrestricted funds are available for use at the discretion of the trustees 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 were to purchase the apartment to be occupied by the incumbent Rabbi of the Central Synagogue on his retirement and to fund service charges and major repairs borne by the Charity from the time the Rabbi took up his rent-free accommodation of the property.
All incoming resources are included in the statement of financial activities when it is virtually certain that the incoming resources will be received and the amount can be quantified with reasonable accuracy. Incoming resources are accounted for on a receivable basis and comprise rental income, donations and tax reclaimed under gift aid. Income receivable under property leases is recognised on a straight line basis over the lease term.
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.
Resources expended are included in the statement of financial activities on an accruals basis.
Costs of generating funds comprise those costs directly attributable to the management of the investment property.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
The investment property, which was acquired to provide accommodation for the incumbent Rabbi of the Central Synagogue on his retirement, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Investment management costs
Investment management costs comprise management fees and reserve contributions of £5,472 (2022: £3,912) and bank charges of £2 (2022: £2).
Accountancy
There were no employees during the year.
The Trustees consider there has been no material increase or decrease in the value of the long leasehold investment property during the year.
The historic cost of the investment property is £481,811 (2022: £481,811).
Movement in Restricted Funds:
The transfer from the 57 Lyttleton Court fund of £13,319 relates to service charges previously charged to unrestricted funds. These were properly chargeable to restricted funds in line with note 1.3 to the accounts.
Restricted Funds
Unrestricted Funds