I am pleased to present the Treasurers report for the period ended December 2009 and 2010 for the Union of Orthodox Synagogues.

The complete audited financial statements for the period are attached and should be read in conjunction with this report. I will highlight significant items, which are not necessarily dealt with in the notes to the financial statements.

Click here to view the audited financial statements

BALANCE SHEET – page 5

Retirement Benefit Asset/Obligation

This refers to investments held in the name of various employees, who for one reason or another were not eligible for admission to the pension fund. The asset is offset by the liability and the monthly premiums are debited to the income statement.

Trade and Other Receivables

The Balance in 2010 was made up as follows:

Affiliation Fees Outstanding at 31 December 2010

Trade and Other Payables

The Balance in 2010 was made up as follows:

INCOME STATEMENT

Operating Expenses – page 16

Computer Expenses

The figure for 2010 includes R250,000 for the development of new kashrut software referred to in the Kashrut Report.

Staffing Costs

The increase in staffing costs from 2009 to 2010 was 4,6%.

•	Annual increases were limited to between 4% and 8%
•	No bonuses were paid at the end of 2010.

Rent Paid

Increase of 13.7% resulting from annual increase as per lease agreement of 8% and additional operational costs, specifically due to increased security measures employed by the CSO on the premises.

Revenue Items – page 17

Shechita – Poultry and Meat

Although there was a 10% increase in income relating to poultry and a small increase of only 1.6% in income relating to beef and lamb, these increase are largely result of an increase in fees, and not volumes. Indeed, the volume of meat slaughtered has significantly decreased, while poultry has only slightly increased. This trend appears to be ongoing.

Licence Fees

The increase of 1.9% is disappointing, and is the result of the loss of existing business due to the poor economic climate. This loss has essentially offset any gain resulting from new business.

Dinei Torah and Gittin

Income has increased significantly, largely due to the efforts of Rabbi Anton Klein who was employed as Administrative Director of the Beth Din, and who has implemented new policies and procedures, the results of which are clearly evident.

Affiliation Fees

The Financial Statements reflect those amounts billed to our member Shuls. Unfortunately this does not represent cash flow, as many Shuls are unwilling or unable to contribute, as can be seen from the balance outstanding in Trade and Other Receivables. A schedule of outstanding affiliation fees at 31 December 2010 is attached.

Fundraising

The UOS has always budgeted to break even, without having to burden the community with additional fundraising. However, as a result of the losses incurred, it has become necessary to pursue meaningful fundraising in order to provide the much needed cash flow for the operations of the company. Chairman Jackie Sifris and Executive Director Darren Sevitz have put in much effort in meeting with significant donors and presenting the case of the UOS. The results of these efforts are evident in the detailed Income Statement.

The Way Forward

Recognising the need to restore profitability and cash flow to the organisation, management of the UOS has made some painful yet essential decisions for year 2011:

•	No bonuses were paid to UOS staff at the end of 2010
•	No increases were given to UOS staff or mashgichim for the 2011 financial year
•	The Kashrut Department was reorganized, resulting in the retrenchment of a senior employee.
•	Two other staff members were retrenched during the year.
•	Fees for catering and shechita were re-negotiated with caterers and butchers.

The above changes will result in a budgeted profit for the 2011 year of R722,297, thus reducing the deficit before fundraising to R1,155, 308. As has been noted, this fundraising target is well within the reach of the UOS, and we look forward to completing the 2011 year on a sound footing.

In this report I have attempted to highlight those significant items which may require further elaboration. It does not cover all items in the financial statements which you have before you. I will be happy to answer any questions relating to any aspect of the UOS finances not dealt with in this report.

In conclusion, I wish to thank the hard working members of the admin and finance department, without whom the smooth and efficient running of the UOS would be impossible.

Jonathan Levitt
TREASURER