Leo Baeck College Centre for Jewish Education

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Legal and Administrative Information

Report of the Board of Governors

Treasurer’s Report

Accounts and Notes

Independent Auditors’ Statement

for the year ended 30 September 2005

Legal and Administrative Information

Company Number 626693 Charity Number 209777

Board of Governors

Voting Governors, Trustees and Directors

Gerald Rothman Chairman appointed 24 October 2001 resigned 3 May 2005 Professor Graham Zellick Chairman appointed 3 May 2005 Tony Sacker Vice-Chairman appointed 24 October 2001 resigned 30 September 2005 Dr Henry Cohn Vice-Chairman appointed 1 August 2005 Robert Graham Honorary Treasurer appointed 24 October 2001 Dr Shelley Heard Additional Honorary Officer appointed 1 May 2002 David Leibling Honorary Secretary appointed 25 May 1995 Alasdair Nisbet Chairman Development Board appointed 21 October 2003 Andrew Gilbert Chairman Reform Movement appointed 8 July 2001 resigned 1 August 2005 Michael Grabiner Chairman Reform Movement appointed 1 August 2005 David Pick Chairman Liberal Judaism appointed 24 October 2001 resigned 7 February 2005 Nigel Cole Chairman Liberal Judaism appointed 7 February 2005 Rabbi Jeffrey Newman Nominee of Assembly of Rabbis appointed 1 February 2002 Rabbi Dr Andrew Goldstein Nominee of Rabbinic Conference appointed 14 April 2003 resigned 9 March 2005 Rabbi Stephen Howard Nominee of Rabbinic Conference appointed 16 May 2005

Non-Voting Governors

Rabbi Professor Jonathan Magonet Principal resigned 31 July 2005 Rabbi Dr Michael Shire Acting Principal Stephen Ross Director of Finance and Administration, appointed Company Secretary 23 October 2001 Rabbi Tony Bayfield Reform Movement Chief Executive Rabbi Danny Rich Liberal Judaism Chief Executive appointed 7 February 2005 Rabbi Dr Charles Middleburgh Nominee of Academic Board appointed 23 October 2003 Neil Amswych Nominee of Students’ Society appointed 1 September 2004, resigned 31 August 2005 Richard Jacobi Nominee of Students’ Society appointed 1 September 2005 Jon Mendelsohn Nominee of UJIA co-opted February 2003, resigned 1 August 2005 James Libson Nominee of UJIA co-opted 1 August 2005

2 Management

Acting Principal Rabbi Dr Michael Shire Director of Finance and Stephen Ross Administration Director of Department of Education Dr Helena Miller and Professional Development Librarian Dr César Merchán Hamann Head of Administration Rhona Lesner Head of Student Services Irit Burkeman

Address Sternberg Centre for Judaism 80 East End Road, London N3 2SY Telephone: 020 8349 5600 Facsimile: 020 8349 5619 Email: [email protected] Website: www.lbc-cje.ac.uk

Auditors Nyman Libson Paul Regina House 124 Finchley Road London NW3 5JS

Principal Investment Advisors ABN-AMRO Bank M.V. 82 Bishopsgate London EC2N 4BN

Solicitors Osmond Gaunt & Rose Winston House 49 Regents Park Road London N3 IDH

Principal Bankers National Westminster Bank 48 Ballards Lane London N3 2QZ

Report of the Board of Governors

Nature of governing documents

Leo Baeck College – Centre for Jewish Education is a charitable company limited by guarantee. The trustees and directors are the voting members of the Board of Governors named on page 2. The original memorandum and articles were dated 24 April 1959, and amended by special resolutions dated 29 November 1990, 11 May 1992, 28 June 1993, April 1997, 23 October 2001 and 3 May 2005.

In 2002 the Leo Baeck College (LBC) assumed the activities previously carried on by the Centre for Jewish Education (CJE) and the name of the College was changed to Leo Baeck College – Centre for Jewish Education (LBC-CJE) and a new Board of Governors was appointed.

3 The Memorandum and Articles of Association allow the charity to undertake any activity covered by its objects with no specific restrictions and limit the liability of the Members in the event of the company being wound up to a sum not exceeding £1 each.

Governance and Organisation

The directors of the company who are also the Trustees of the Charity have overall responsibility for its management and control, although this is effectively delegated to the Board of Governors, which include trustees and various other individuals. The work of implementing the policies is carried out by the Board of Governors in conjunction with the charity’s officials.

Rabbi Jonathan Magonet took early retirement as Principal in July 2005 and the resulting financial impact of that arrangement has been fully reflected in the College’s financial statements for the financial year ending 30 September 2005.

Auditors Messrs Nyman Libson Paul were re-appointed auditors at the Annual General Meeting.

Activities of the charity

The objects of the College are the promotion and furtherance of Jewish religious and educational instruction and fostering and advancing the study of Judaism and of Jewish education, history, art, literature, music and way of life in all its aspects, both religious and secular. The principal activity of the College is the promotion of the study of Judaism and the training of Rabbis and teachers.

Results of the year

The Trustees have adopted the provisions of the SORP “Accounting and Reporting by Charities” in preparing the annual report and the financial statements of the charity which comply with current statutory requirements and the charity’s governing document.

The net outgoing resources were £(190,609) (2004 £51,249 net incoming resources) of which £4,267 was used for restricted projects, (2004, (£6773)).

Investment Policy and Returns

The College’s investment manager is ABN AMRO.

ABN–AMRO manage a UK portfolio on a discretionary basis. After the year end it was decided the UK portfolio should be divided into approximately 50% UK equities and other collective / pooled investment vehicles and the remainder into fixed interest securities.

The Finance and Investment Committee comprises five members and is chaired by the Honorary Treasurer of the Board of Governors. It formulates and monitors the investment strategy and appoints fund managers to implement their recommendations. It meets six times a year.

Restricted funds

Restricted and endowment funds totalled £447,903 at year end (2004, £426,919).

Although no formal legal restrictions are understood to have been placed on the funds now classified as general, a number of the fund donors or their relatives had previously entered into discussion with the College as to the use of the monies. To respect the intentions of these donors, a number of the funds have been designated by the trustees for these purposes. The designated funds form part of the general funds but are separately identified in the notes to the accounts.

5 6 Leo Baeck College - Centre for Jewish Education

Accounts

7 8 Notes to the accounts

1. Accounting Policies a) Basis of Preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Companies Act 1985, the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” published in October 2000, the FRSSE (June 2002) and applicable accounting standards.

The charity has availed itself of Paragraph 3 (3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities. b) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those funds which must be held permanently by the charity. income arising on the endowment funds are used in accordance with the wishes of the donors.

Investments are treated on a pooled basis and are not allocated to individual funds. Therefore all investment income and capital gains or losses arising on the investments are apportioned between the endowment, restricted and general funds in proportion to the opening balances of those funds respectively. Investment management charges are allocated in a similar way.

c) Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

d) Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Administrative costs are not allocated to individual departments except that 10% of administrative salaries are charged to Charity Management and Administration.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. College administration costs are those costs incurred directly in support of expenditure on the objects of the charity. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

9 e) Tangible Fixed Assets

All assets costing more than £1000 are capitalised and depreciated on a straight line basis as follows:

Freehold land and buildings 50 years Long leasehold land and buildings 50 years Office equipment 4 years Computer equipment 3 years

f) Investments

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.

g) Stock

Stock comprises books for resale and is stated at the lower of cost and net realisable value.

h) Pensions

The company operates a defined contribution scheme for the benefit of its employees. The costs of contributions are written off against profits in the year they are payable. The pensions are held in separately administered funds with insurance companies

i) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. All differences are taken to the SOFA.

11 The fixed assets comprise a long leasehold interest in the Manor House at the Sternberg Centre from where the Charity operates and has a library. Also the Charity owns two freehold houses close by. These assets are stated at cost less depreciation although in the opinion of the trustees the market value exceeds this.

Historic asset The College owns a library housed at the Sternberg Centre. It comprises about 50,000 volumes, a Rare Book collection including acquisitions from the London Beit Din sales and sundry artefacts. Many items have been donated over a period of 25 or more years and others have been purchased. The original cost of the assets have not been included in the balance sheet. They are insured for £2,000,000 which is an estimate of the replacement cost.

There are total investment management fees of £7,003 of which £1,358 is charged to restricted funds and £463 is charged to endowment funds. These are included within the total expenditure.

13 Purposes of designated funds

The Manor House Repair fund has been set aside by the Board for the refurbishment of the premises used for the offices, teaching and library.

The other designated funds are not legally restricted but the original donors or their relatives had previously entered into discussion with the College as to the use of the monies. It is intended to respect the wishes of these donors but the use of these designated funds is subject to the discretion of the Governors.

The Development fund was established by the Governors in the year to set aside any unbudgeted legacy income for the specific projects in furtherance of the future development of the College.

The Pamela (Leila) Littman Scholarship Fund has been created partly out of the proceeds of a fund established by the donor’s father who was connected to the St. Georges Settlement and North Western Reform Synagogue. The balance of the Fund was contributed from monies Mrs Pamela Littman earned as a solicitor carrying out legal aid work. The donor has chosen to make this donation that will make a very real and significant difference to the future of Progressive Jewry out of her commitment to Judaism and to further Jewish education for the benefit of future generations.

Purposes of restricted funds The Ascher Bequest was received in 1989 for the purposes of founding and endowing a lectureship in the college. Unspent income must be accumulated but the trustees may spend the income and capital to set up this lectureship. Currently the income is used for the Ascher Lecturer in Talmud. The Eastern European Fund is used for bursaries to students from the former USSR. European Rabbinic Student Funds are to support a European student. The Interfaith Fund is used to support a variety of Interfaith activities run by the College, including the annual Jewish-Christian-Muslim Student Conference, Jewish-Christian Bible Week, the Jewish- Muslim lecture series and occasional publications. The Pamela and Anthony Littman Book Fund is to provide core books particularly to rabbinic students with limited financial resources. The Progressive Judaism Library fund was donated to develop a library of progressive Judaism. The Students Welfare fund is largely received from the Jewish Joint Burial Society to enable assistance to be given to individual rabbinic students. The Director of the Department of Education and Professional Development is the current UJIA Fellow of Education. The Windermere Avenue Appeal fund was raised to provide capital to purchase two houses close to the college to house rabbinic students. The remaining fund will be used for capital repairs. The Nick Carter bequest was received in 2000 to contribute towards awareness among rabbinic students of the wholyness/holiness of ecology and awareness of the natural world and was fully expended for this purpose. Library Judaica Fund was raised to purchase books relating to the Beth Din or other rare Judaica. The Rabbi Professor Jonathan Magonet Scholarship fund was established to provide for promising students to attend the college who may otherwise be unable to do so. The Hanadiv Charitable Foundation fund provided support towards the establishment of a full time lectureship in rabbinic studies and was fully expended for this purpose during the year. The NLPS Trust for Progressive Judaism provided funding for capital and other projects at the College which promote Progressive Jewish values. The Shoresh Charitable Trust provided a research grant for a Masters programme undertaken by a member of staff.

Purposes of Endowment Funds The Arthur and Sybil Simon Bursary Fund was received in 1993 to provide bursaries for overseas rabbinic students. The income only may be used for this purpose. The Bechler Charitable Trust was received in 1995 to provide for the training of European rabbinic students. The income only may be used for this purpose.

14. Related parties

No trustee received any remuneration or out of pocket expenses for acting as a trustee during the year. (2004, £nil).

15. Connected Charities

The Leo Baeck College-Centre for Jewish Education have some trustees in common with the Movement for Reform Judaism (formerly RSGB) and Liberal Judaism (grants have been received from both these organisations as shown in the SOFA) and the Manor House Trust (to whom service charge payments were made as shown under ‘Sternberg Centre costs’ in note 4 to the accounts).