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2023-03-31-accounts

Teikyo University of Japan in Durham Limited (A Company Limited by Guarantee)

Incorporated in England and Wales No. 02259457 Registered Charity No. 1000091

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

For the year ended

31 March 2023

Teikyo University of Japan in Durham Limited LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 March 2023

Trustees

Trustees
Atsushi Isihara Appointed 01/04/2022
Yuichi Kono
Takuji Oda
Hiroko Okinaga
Yoshihito Okinaga
Yuji Yoshida
Principal Mr Eishu Kosuge
Secretary Mr Yuichi Kono
Company registered number: 02259457
Charity registered number: 1000091
Registered Office: Teikyo Foundation (UK)
Framewood Road,
Wexham, Bucks
SL2 4QS
Bankers: HSBC Bank Plc
1 Saddler Street
Durham
DH1 3NR
Auditors: Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP

Teikyo University of Japan in Durham Limited

CONTENTS for the year ended 31 March 2023

Page
Trustees' Report 1 - 5
Statement of trustees' responsibilities 6
Auditors' Report 7 - 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Financial Statements 14 - 24

Teikyo University of Japan in Durham Limited

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also directors of the charitable company for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charitable company's governing document, 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) (effective 1 January 2019)".

Teikyo University of Japan in Durham Limited is a charitable company that was incorporated on the 18 May 1988 with the liability of its members limited by guarantee. The registered office and principal address of the charitable company is at Teikyo Foundation (UK), Framewood Road, Wexham, Buckinghamshire, SL2 4QS.

Objectives and activities

The charitable company's aims and objectives are to advance the education and training of students and members of Teikyo University and Teikyo Heisei University of Japan in Tokyo, in the United Kingdom at Durham University and other persons in Durham and elsewhere.

In setting the charitable company's objectives and planning its activities, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit charitable purposes, and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

The charitable company has arrangements with Teikyo University of Japan which has guaranteed payment of its expenses. Teikyo University of Japan has acquired, at its own expense, leases, buildings and services at Durham University and has agreed on a certain usage by the charitable company of the facilities at Wadham College, Oxford and at St Edmund’s College, Cambridge.

The trustees main aims and objectives in the year under review continued to be to pursue the opportunities available to the students at Durham, Oxford and Cambridge Universities, so that each student can develop and fulfil his or her potential to the highest level and also contribute to the wider communities in Durham, Oxford and Cambridge.

Significant activities

(a) Teikyo University of Japan in Durham

Teikyo University of Japan in Durham is located within the grounds of Durham University and has the potential to host up to approx. 200 undergraduate students for 3 to 7 months of their four-year course. The aim is to give the students a taste of the academia offered by universities in the United Kingdom. The students attend their own English and faculty lectures during the day. The programme also provides various opportunities to travel extensively throughout the United Kingdom.

(b) Teikyo University of Japan at Oxford

The charitable company, together with Teikyo University of Japan and Teikyo Foundation (UK), has a 60-year agreement with Wadham College, University of Oxford. A division of the charity, known as Teikyo University of Japan at Oxford, is allowed to hold an induction course at Wadham College, at a time of mutual convenience outside the Oxford University academic full term, for up to 50 students and teachers from Teikyo University and Teikyo Heisei University. In addition, the agreement provides for Okinaga Junior Research Fellowship - postgraduate fellows selected from open competition at Wadham College- to study in the field of Japanese studies at the University of Oxford.

(c) Structure Relationships

The bedrock on which the success of the two divisions of the Company depends are the relationships with Durham University and its Officers, and the Colleges and their Heads, and similarly at Wadham College, with the Warden and the Fellows.

Page 1

Teikyo University of Japan in Durham Limited

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

Teikyo University of Japan in Durham

Due to the COVID-19 pandemic, in the academic year 2021/22 as well as in 2020/21, Teikyo University of Japan in Durham did not accept any students throughout the year. After the normal Spring and Autumn courses being cancelled for the two straight years, students returned and the programme resumed in April 2022.

During the closure of the campus due to the COVID-19 pandemic, Teikyo University of Japan in Durham introduced an online English Learning Programme for 2 to 4 weeks toward the undergraduate students at Teikyo University and Teikyo Heisei University in Japan in the academic year 2020/21, which has since grown in momentum (more than 300 students have participated to date). This programme has continued even after the campus resumed in 2022.

The below table shows the number of students participated in the programme provided by Teikyo University of Japan in Durham in the past five years.

Main Programme
Standard Course
Global Campus Programme
Sub-Total
Short-term Programme
ECCP
Medical Students
Teikyo Study Abroad Prog.
Others
Sub-Total
On-line Programme
Grand Total		 2018/19
2019/20
2020/21
2021/22
2022/23
29
58
0
0
29
5
33
0
0
14
34
91
0
0
43
10
0
0
0
8
19
27
0
0
0
52
25
0
0
28
13
7
0
0
0
94
59
0
0
36
0
0
47
133
66
128
150
47
133
145

A total of 21 staff (2022: 19 staff), which includes 8 part-time employees (2022: 8 part-time employees), were employed to teach and administer the programme as of 31 March 2023. Every opportunity to collaborate with Durham University to benefit their students was pursued. Moreover, a very close relationship between Teikyo University of Japan in Durham and the County and City Councils has been established; in particular, the Mayor of Durham City Council is particularly supportive and generous in helping Teikyo University of Japan in Durham.

Teikyo University of Japan in Durham holds an annual 'Japanese Festival' on campus which attracts many staff and students at Durham University together with a high percentage of local people from the city and wider community. Due to the COVID-19 pandemic, there were no festivals in 2020 and 2021. However, after the re-opening of the campus, the festival was held in October 2022 for the first time in these three years.

The Japanese Library is open on a part time basis to Durham University staff and students and again is open to members of the local community.

There has been a well-established local 'Schools Liaison Programme' which involves the Japanese undergraduates visiting local primary schools in Durham to hold 'mini Japanese culture awareness days'. This programme was discontinued in 2020 because of the campus closure due to the COVID-19. As the campus has been re-opened in 2022, the programme has resumed and this programme has the full backing of the local Education Authority.

Wadham College

In the academic year 2021/2022 as well as in 2020/2021, due to the COVID-19 pandemic, there were no student admissions for the Oxford Induction at Wadham College as no programme took place at Teikyo University of Japan in Durham. After the re-opening of the campus, the induction course took place in April 2022 for the first time in these three years.

An Okinaga Junior Research Fellowship scholar who was nominated in 2019 for a three-year period (until summer 2022) in Japanese Studies continued her research in the 2021/22 academic year. In December 2021, upon a request from Wadham College, the scholarship period has been extended by one year until summer 2023.

Page 2

Teikyo University of Japan in Durham Limited

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Statement of risk management

The trustees have a duty to identify and review the risks to which the charitable company is exposed to. The trustees and management of the charitable company continue to keep its activities under review, particularly with regard to any major risks that may arise as well as the systems and procedures established to manage them. It is the responsibility of management to monitor the effectiveness of internal controls and other viable means by which risks identified can be mitigated.

Financial review

The financial performance of the charitable company is shown in the Statement of Financial Activities. The charitable company's total income for the year ended 31 March 2023 was £902,102 (2022: £361,546). The charitable company's income was significantly increased due mainly to the re-opening of the campus and increase of the rental income from flats and dormitories.

This resulted in the charitable company having Net Profit of £29,479 for the year ended 31 March 2023 (2022: Net Expenditure of £325,918). At the 31 March 2023, the charitable company had negative Unrestricted Funds of £1,425,601 (2022: £1,455,080).

Reserves policy

As a result of the Net Expenditure in the past years before the year ended 31 March 2023, the charitable company has negative Unrestricted Funds of £1,425,601 at the 31 March 2023 (2022: £1,455,080). Despite this, the charitable company aims to hold sufficient liquid funds to meet its day-to-day expenditure requirements. The charitable company had 'Cash at Bank and In Hand' of £623,999 at the 31 March 2023 (2022: £441,980).

The charitable company has ongoing financial support from Teikyo University of Japan and day-to-day working capital funding from a connected charity, Teikyo Foundation (UK). The charitable company's main liability is the intercompany balance owed to Teikyo Foundation (UK) of £1,389,978 at the 31 March 2023 (2022: £1,430,320). The trustees therefore consider that no significant reserves are required due to the status and financial standing of Teikyo University of Japan and Teikyo Foundation (UK). Investment policy and objectives

The charitable company has absolute powers of investment over its available funds. The Board of Trustees continue to keep under review the risks and rewards of the investments and the current state of the market. The investment policy for the year ended 31 March 2023 was to place all available funds, other than those required for day-to-day operations of the charitable company, with National Westminster Bank Plc. In addition, professional advice is available from Mitsubishi UFJ Financial Group through the charitable company's connected charity, Teikyo Foundation (UK).

Principal risks and uncertainties

The principal risks and uncertainties facing the charitable company is the maintenance of student numbers at a level to generate sufficient tuition and accommodation income in excess of the operating costs. In mitigation of this risk, the charitable company works closely with Teikyo University and Teikyo Heisei University of Japan to promote its courses and maximise student numbers each academic year. The charitable company generates additional income through the letting of surplus student rooms at the halls to other students at Durham University, and the letting of the surplus flats at the staff flats to other people at Durham University. As already mentioned, Teikyo University of Japan also provide financial support to the charitable company. COVID-19 pandemic

In the spring of 2020, it was becoming evident that COVID-19 was having a severe disruption on many countries and on 11 March 2020 the World Health Organisation declared it was a pandemic.

The ongoing impact of the COVID-19 pandemic has continued to result in a material impact on the financial performance and position of the charitable company for the years ended 31 March 2021 and 2022, respectively. After the normal Spring and Autumn courses being cancelled for the two straight years of 2020/21 and 2021/22, students returned and the programme resumed in April 2022.

In order to continue operating as a going concern, the charitable company has and will continue to rely on the ongoing financial support from Teikyo University of Japan and Teikyo Foundation (UK).

Page 3

Teikyo University of Japan in Durham Limited

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Going concern

Teikyo University of Japan has agreed to provide financial support to the charitable company to enable it to continue its operations as a going concern for the foreseeable future. In addition, Teikyo Foundation (UK) provides funding so that the charitable company can meet its day-to-day working capital requirements.

Future plans

The charitable company's future plans remain the same as reported above. This is because the trustees are confident that the student numbers has recovered and will continue to increase in the near future as the COVID-19 pandemic has passed and the lifting of travel restrictions and development of vaccines have been achieved.

Structure, governance and management

The charitable company is a registered charity, governed by its Memorandum and Articles of Association, and is engaged in providing educational facilities to Japanese and other nationals. The charitable company's Memorandum and Articles of Association dated 4 April 1988, were last amended on 14 February 2002.

Recruitment and appointment of new trustees

Teikyo University of Japan may, by written notice, appoint or remove a trustee, and the trustees are also able to appoint new trustees.

Organisational management

The Board of Trustees meet at least once a year to determine the 'general policy' of the charitable company and review its overall management and control, for which they are legally responsible. The work of implementing most of the Board of Trustees policies is delegated to the Principal and Bursar of Teikyo University of Japan in Durham.

Induction and training of new trustees

New trustees who are also the directors are inducted into the workings of the company as a registered charity.

Connected charities

Mr Y Okinaga is a guarantor of Teikyo Foundation (UK) whose main activity is also the provision of educational facilities to Japanese nationals and is located at Teikyo Foundation (UK) Framewood Road, Wexham, Buckinghamshire, SL2 4QS.

Trustees and directors

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:

Mr Y Okinaga Dr H Okinaga Mr Y Yoshida Dr T Oda Mr K Nakajima (Resigned 1 April 2022) Mr Y Kono Mr A Ishihara (Appointed 1 April 2022)

Teikyo University of Japan in Durham is a charitable company limited by guarantee.

The charitable company does receive financial support from Teikyo University of Japan. Mr Y Okinaga is considered to be a key individual continuing the vision of Dr S Okinaga, the founder of Teikyo University of Japan in Durham.

Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be appointed as auditor of the company has been put at a General Meeting.

Page 4

Teikyo University of Japan in Durham Limited

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Mr Y Okinaga

Trustee Dated: [ ] 2024

Page 5

Teikyo University of Japan in Durham Limited

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Teikyo University of Japan In Durham Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Teikyo University of Japan In Durham Limited (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 7

TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED FOR THE YEAR ENDED 31 MARCH 2023

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 8

TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED FOR THE YEAR ENDED 31 MARCH 2023

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Page 9

TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO UNIVERSITY OF JAPAN IN DURHAM LIMITED FOR THE YEAR ENDED 31 MARCH 2023

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street, London EC2A 2AP

Page 10

Teikyo University of Japan in Durham Limited STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 March 2023

Unrestricted
Funds
Notes
2023
£
INCOME FROM:
Charitable Activities
Tution fees
3
328,117
Other charitable income
4
31,285
Other income
5
Other trading income
376,386
Investments
Investment income
6
3,144
Voluntary sources
Grants and donations
7
163,170
Total income and endowments
902,102
EXPENDITURE ON:
Charitable activities
School operating costs
8
872,623
Total expenditure
8
872,623
Net operating income/(expenditure)
29,479
Net gains on investments
-
Net income/(expenditure)
11
29,479
Transfer between funds
-
Net movement in funds
29,479
Fund balances brought forward
(1,455,080)
Fund balances carried forward
17,18
(1,425,601)		 Unrestricted
Funds
Notes
2023
£
INCOME FROM:
Charitable Activities
Tution fees
3
328,117
Other charitable income
4
31,285
Other income
5
Other trading income
376,386
Investments
Investment income
6
3,144
Voluntary sources
Grants and donations
7
163,170
Total income and endowments
902,102
EXPENDITURE ON:
Charitable activities
School operating costs
8
872,623
Total expenditure
8
872,623
Net operating income/(expenditure)
29,479
Net gains on investments
-
Net income/(expenditure)
11
29,479
Transfer between funds
-
Net movement in funds
29,479
Fund balances brought forward
(1,455,080)
Fund balances carried forward
17,18
(1,425,601)		 Unrestricted
Funds
2022
£
2,400
772
267,065
59
91,250
902,102 361,546
872,623 687,464
872,623 687,464
29,479
-		 (325,918)
-
29,479
-		 (325,918)
-
29,479
(1,455,080)		 (325,918)
(1,129,162)
(1,425,601) (1,455,080)

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The accompanying notes form part of these financial statements.

Page 11

Teikyo University of Japan in Durham Limited BALANCE SHEET

as at 31 March 2023

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
14
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:Amounts falling due after more than one year
15
NET ASSETS
FUNDS
General reserves
16
Designated reserves
17		 2023
£
12,052		 2022
£
13,908
12,052
129,156
623,999		 13,908
108,212
441,980
753,155
(1,728,808)		 550,192
(1,557,180)
(975,653) (1,006,988)
(963,601)
(462,000)		 (993,080)
(462,000)
(1,425,601) (1,455,080)
(1,425,601)
-		 (1,455,080)
-
(1,425,601) (1,455,080)

Approved and authorised for issue by the Board of Directors on ........................................... and signed on their behalf by:

Mr Y Okinaga Chairman of the Board of Directors

The accompanying notes form part of these financial statements. Company Number: 02259457

Page 12

Teikyo University of Japan in Durham Limited CASHFLOW STATEMENT for the year ended 31 March 2023

CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
21
Cash flows from investing activities:
Bank interest received
Payments to acquire fixed assets
Net cash outflow from investing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
Cash and cash equivalents at the
Cash and cash equivalents at the		 2023
£
181,836
3,144
(2,961)		 2022
£
(357,763)
59
183 59
182,019
441,980		 (357,704)
799,684
623,999 441,980

Page 13

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES for the year ended 31 March 2023

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 pound.

These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

1.2 GOING CONCERN

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

At the year ended 31 March 2023, the charitable company had Net Income of £29,479 (2022: -£325,918) and had Net Current Liabilities of £975,653 (2022:£1,006,988) and Net Liabilities of £1,425,601 (2022:£1,455,080) at the 31 March 2023. Whilst there is uncertainty over the ongoing impact of the COVID-19 pandemic, following the easing of restrictions, it is expected that income will be received from tuition and accommodation fees as students return for the 2023/2024 academic year. This is expected to have a material benefit on the financial position of the charitable company.

The financial statements have been prepared under the going concern basis because Teikyo University has undertaken to support the charitable company and has agreed not to recall the amounts advanced until all other liabilities have been met. In addition, Teikyo Foundation (UK) provides day-to-day working capital funding and support. Having considered the information available to them, the directors and trustees have concluded that the going concern basis of preparafion is appropriate.

1.3 INCOME

Income is recognised when the charitable company 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.

Page 14

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

1.4 CHARITABLE FUNDS

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.5 EXPENDITURE

Expenditure is accounted for on an accruals basis and is allocated to expense headings, which aggregate all costs relating to the category either on a direct cost basis, or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates.

Governance costs comprise the costs of running the charity, including strategic planning for its future development, external audit, any legal advice for the School’s Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

1.6 FIXED ASSETS AND DEPRECIATION

All fixed assets are used in direct furtherance of the school’s objectives. Fixed assets are included in these financial statements at their original cost less depreciation and accumulated impairment losses provided to date.

Assets that are expected to have a useful economic life of less than two years and/or cost less than £500 are not capitalised and are written off in the year of purchase.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the costs less estimated residual value of each asset, by equal annual instalments, over their expected useful lives which are considered to be:

Fixtures and fittings - 25% on cost Motor Vehicles - 25% on cost

1.7 PENSIONS

The Charityl also contributes to a defined contribution scheme for staff. The contributions to pension funds for its employees are charged to the Statement of Financial Activities on an accruals basis in the year in which they fall due.

Page 15

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

1.8 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.

1.9 FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 14, 15 and 16 for the debtor and

1.10 TAXATION

The company is a registered charity and is exempt from taxation as afforded by Section 505 ICTA 1988.

1.11 EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense.

2 KEY ESTIMATES & JUDGEMENTS

In the application of the company's accounting policies, the Board is 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In the opinion of the Board of Governors, the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

Useful economic lives

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and note 1.5 for the useful economic lives for each class of asset.

Recoverable value of fee debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

Page 16

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

3 TUTION INCOME
The University’s activities are carried out within the UK.
The tution income comprised:
Main course
Other courses
4 OTHER CHARITABLE INCOME
Trips
Other income
5 OTHER INCOME
Letting income
6 INVESTMENT INCOME
Interest received
7 DONATIONS AND GRANTS
Donation support from Teikyo University
Donation from Durham University
Donation from Okinaga Foundation		 2023
£
316,287
11,830		 2022
£
-
2,400
328,117 2,400
2023
£
27,125
4,160		 2022
£
-
772
31,285 772
2023
£
376,386		 2022
£
267,065
376,386 267,065
2023
£
3,144		 2022
£
59
3,144 59
2023
£
125,162
250
37,758		 2022
£
91,250
-
163,170 91,250

Page 17

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

8 EXPENDITURE
(a) Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Governance
Total Charitable Expenditure
Total Expended
Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Governance
Total Charitable Expenditure
Total Expended
(b) Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- Other Auditors remuneration
Total		 £
533,837
-
-
6,930
-
Staff costs
(note 9)		 Other
£
50,879
44,058
177,926
44,112
10,064
327,039
327,039
Other
£
1,375
205
174,803
29,457
11,240
217,080
217,080		 Depreciation
£
-
-
4,817
-
-		 Total
2023
£
584,716
44,058
182,743
51,042
10,064
540,767 4,817 872,623
540,767 4,817 872,623
£
468,889
-
-
-
-
Staff costs
(note 9)		 Depreciation
£
-
-
1,495
-
-		 Total
2022
£
470,264
205
176,298
29,457
11,240
468,889 1,495 687,464
468,889 1,495 687,464
2023
£
9,000
1,064		 2022
£
8,000
3,240
10,064 11,240

Page 18

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

(c) Administration Costs
Other staff costs
Office expenses
Telephones
Marketing and advertising
Website
Memberships
Inspection costs
Sundry expenses
Bad debts
Depreciation
Recruitment Costs
Legal and Professional Fees
Other Administration Costs
Bank charges and interest
Loan Interest
Other Finance
9 STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Other staff costs
The average monthly number of employees during the year was as follows:
Teaching
Support
£60,000 in the year was as follows:
£60,000 - £70,000
The number of employees whose emoluments amounted to over		 2023
£
6,930
19,789
-
-
-
4,486
-
-
5,328
14,066
443
-
-		 2022
£
-
14,514
-
-
-
6,141
-
-
215
8,403
184
-
-
51,042 29,457
2023
£
452,599
57,424
23,814
6,930		 2022
£
396,564
43,468
28,857
-
540,767 468,889
2023
No.
4
16		 2022
No.
3
14
20 17
2023
No.
1		 2022
No.
-
1 -

Key management personnel include the Directors and the senior executives which are made up of the Principal and the Bursar. The total pay and benefits received by key management personnel were £106,129 (2022: £118,906).

Page 19

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

10 DIRECTORS REMUNERATION AND BENEFITS

There were no Directors' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

11 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2023 2022
£ £
Net income is stated after charging:
Depreciation of tangible fixed assets 4,817 1,495
Auditor’s remuneration
Audit services for the school- current year 9,000 14,400
Non-audit services 1,064 2,580

12 TANGIBLE FIXED ASSETS

Cost:
At 1 April 2022
Additions
At 31 March 2023
Depreciation:
At 1 April 2022
Charge for year
At 31 March 2023
Net book value:
At 31 March 2023
At 1 April 2022		 Fixtures
And
Fittings
£
572,247
2,961		 Motor
Vehicles
£		 Total
£
645,356
2,961
73,109
-
575,208 73,109 648,317
558,339
4,817		 631,448
4,817
73,109
-
563,156 73,109 636,265
12,052 - 12,052
13,908 - 13,908

Page 20

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

13 DEBTORS
2023
2022
£
£
Fees and extras
97,631
91,217
Other debtors
31,525
16,995
129,156
108,212
14 CREDITORS
Amounts falling due within one year:
2023
2022
£
£
Trade creditors
50,946
24,626
Fees in advance
207,886
-
Accruals
32,263
51,625
Amount due to group undertaking
1,437,713
1,480,929
1,728,808
1,557,180
Deferred income:
2023
2022
£
£
Received in year
207,886
-
Carried forwards
207,886
-
Deferred income relates to school fees and letting income received in advance for the following year.
15 CREDITORS DUE AFTER ONE YEAR
2023
2022
£
£
Amounts falling due after more than one year:
Other creditors
462,000
462,000
462,000
462,000		 2023
£
97,631
31,525		 2022
£
91,217
16,995
129,156
2023
£
50,946
207,886
32,263
1,437,713		 108,212
2022
£
24,626
-
51,625
1,480,929
1,728,808 1,557,180
2023
£
207,886		 2022
£
-
207,886 -
462,000 462,000

This creditor amount relates to a loan from Teikyo University originally made in November 2020 and originally due on 31st October 2023, but extended to 31st October 2026 post year end.

Page 21

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

16 STATEMENT OF FUNDS


Unrestricted reserves:
General reserve
Total reserves
Unrestricted reserves:
General reserve
Total reserves		 £
(1,455,080)
At 1 April 2022		 Income
£
902,102		 Expenditure
£
(872,623)		 Gains/
(losses)
£
-		 £
(1,425,601)
At 31 March
2023
(1,455,080) 902,102 (872,623) - (1,425,601)
£
(1,129,162)
At 1 April 2021		 Income
£
361,546		 Expenditure
£
(687,464)		 Gains/
(losses)
£
-		 £
(1,455,080)
At 31 March
2022
(1,129,162) 361,546 (687,464) - (1,455,080)

17 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets		 Unrestricted
funds
£
12,052
753,155
(1,728,808)
(462,000)		 2023
Total
£
12,052
753,155
(1,728,808)
(462,000)
(1,425,601) (1,425,601)
Unrestricted
funds
£
13,908
550,192
(1,557,180)
(462,000)		 2022
Total
£
13,908
550,192
(1,557,180)
(462,000)
(1,455,080) (1,455,080)

Page 22

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES for the year ended 31 March 2023

18 RELATED PARTIES

During the year ended 31 March 2023, Teikyo Foundation (UK), a charity under common control which provides a centralised accounting and payroll service for the charitable company, incurred payroll costs of £428,067 (2022: £357,601) and other expenses of £26,347 (2022: £27,330) on behalf of Teikyo University of Japan in Durham Limited. These amounts were recharged at cost and repayments totalling £505,794 (2022: £377,797) were made by Teikyo University of Japan in Durham Limited during the year. At the 31 March 2023 Teikyo University of Japan in Durham Limited owed Teikyo Foundation (UK) an amount of £1,389,978 (2022:£1,430,320)

Teikyo University provided donated services in respect of salary costs amounting to £122,398 (2022: £91,250) An amount of £47,735 (2022: £50,609) is owed to Teikyo University at the 31 March 2023. In addition, a loan of £462,000 (2022:462,000) was due to Teikyo University at the 31 March 2023

19 Connected charities

Mr Y Okinaga is a guarantor of Teikyo Foundation (UK), a registered charity whose main activity is also the provision of educational facilities to Japanese nationals. Teikyo Foundation (UK) is based in Wexham, Buckinghamshire.

20 Property held in trust

The charitable company uses four buildings owned by Teikyo University for its principal activities. These buildings are used rent free subject to the charity meeting the full cost of maintenance.

21 NOTES TO THE CASHFLOW STATEMENT

Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Depreciation
Bank interest received
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
Analysis of changes in net debt
Cash at bank and in hands
Loans failing due after more than one year		 At 1 April
2022
£
441,980
(462,000)		 2023
£
29,479
4,817
(3,144)
171,628
(20,944)		 2022
£
(325,918)
1,495
(59)
59,900
(93,181)
181,836 (357,763)
Cash Flows
£
182,019
-		 At 31 March
2023
£
623,999
(462,000)
(20,020) 182,019 161,999

Page 23

Teikyo University of Japan in Durham Limited ACCOUNTING POLICIES

for the year ended 31 March 2023

22 Pension contributions

The charitable company operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities in the period in which they relate. During the year ended 31 March 2023, the company made contributions of £23,814 (2022: £28,857). No contributions were outstanding at the 31 March 2023 (2022: £Nil)

23 Members' Liability

The charitable company is a company limited by guarantee with no share capital. The liability of each member under guarantee does not exceed £2. The number of members at 31 March 2023 was 2(31 March 2022: 2)

24[Teikyo University ]

Teikyo University has undertaken to support the charitable company and to provide such facilities as the company may require to meet any operational deficits and to continue trading.

Page 24