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2023-03-31-accounts

Charity Registration No. 1001232

Company Registration No. 02540502 (England and Wales)

TEIKYO FOUNDATION (UK)

(a Company limited by guarantee and not having share capital)

TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2023

TEIKYO FOUNDATION (UK)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr. Y Okinaga Dr H Okinaga Mr. Y Yoshida Mr. A Ishihara (Appointed 1 April 2022) Secretary Mr. Y Kono Charity number 1001232 Company number 02540502 Registered office Framewood Road Wexham Buckinghamshire United Kingdom SL2 4QS Auditor MOORE Kingston Smith 9 Appold Street London EC2A 2AP United Kingdom

Bankers National Westminster Bank Plc 250 Bishopsgate London EC2M 4AA Investment advisers The Pictet Group Banque Pictet & Cie SA Route des Acacias 60 1211 Geneva 73 Switzerland Key Executives Head of School Ms. F Nelson Chief Executive Officer Mr. Y Kono

TEIKYO FOUNDATION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC 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 with the consolidated financial statements for the year ended 31 March 2023.

The consolidated financial statements have been prepared in accordance with the accounting policies set out in the notes to the consolidated 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 Foundation (UK) is a charitable company that was incorporated on the 18 September 1990 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 objectives are to advance the education and training of school children and students, members of Teikyo University, Tokyo, Japan, its schools, and other educational institutions administered by it, and to advance the education and training of other persons, in the United Kingdom 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 and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

To fulfil the objects the charitable company comprises of 4 divisions, as follows: -

(a) Teikyo School United Kingdom

Teikyo School United Kingdom (Teikyo School UK) is an independent school located in Wexham, Buckinghamshire for Japanese boys and girls aged from 15 to 18. It provides boarding and day facilities. Teikyo School UK is responsible to the Japanese Department of Education (Monbukagakusho) and provides education in accordance within the Monbukagakusho’s remit. Students are recruited from throughout the world and fees are generally less than those charged by similar independent schools in the United Kingdom because they are subsidised by Teikyo Foundation (UK).

Teikyo School UK is also registered with the Department for Education (reference number 825/6013) in the United Kingdom, and is a member of the Independent Schools Council, the Independent Schools Association, the Boarding Schools Association, and the Independent Schools Bursars’ Association.

(b) Teikyo University of Japan at Cambridge

Teikyo University of Japan at Cambridge provides for up to nine Okinaga Scholars – postgraduate Japanese scholars personally selected from an open competition – to study for PhD degrees at the University of Cambridge. The students are members of St Edmund’s College with whom Teikyo University has a 90-year agreement with.

(c) Teikyo Study Abroad Programmes

Teikyo Foundation (UK) offers a year-round Educational Study Abroad Programmes to Teikyo’s Universities, Colleges and Schools from Japan and students from all parts of the world. Some 300 students each year enjoy Teikyo’s facilities at Wexham, Oxford, and Durham.

(d) Teikyo Foundation (UK)

Teikyo Foundation (UK)'s considerable funds provide financial support to all its divisions when required. The above autonomous divisions are susceptible to changing student rolls due to changes in Japan’s economy, changing birth rates, pandemics, and the volatile political world. To counter any substantial financial loss, Teikyo Foundation (UK) has extensively diversified its educational activities within its objectives.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

Page 1

TEIKYO FOUNDATION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Principal activity

Teikyo Foundation (UK)’s principal activity continues to be the operation of the Teikyo School UK and the provision of the various study programmes described above.

As mentioned, Teikyo Foundation (UK)’s Teikyo School UK is registered with the Department for Education (reference number 825/6013) for the promotion and maintenance of educational standards and meeting of statutory requirements.

In addition, Teikyo Foundation UK has a licence agreement with The International School of Creative Arts to use facilities at the Teikyo Campus and hire agreements other leisure and sports providers in the local community and further afield. The charitable company co-operates and works with these organisations in order to further local community access to the educational facilities on site and to optimise the use of its cultural and sporting facilities.

Objectives for the year

The main objective of the charitable company was to continue to pursue the education of students whether they be at the Teikyo School UK or part of the Study Abroad Programmes, in order to help them develop and fulfil their potential to the highest level and to contribute to the wider community in which they live. Additionally, the charitable company aims to maximise the use of the facilities at the Teikyo School UK by extending educational programmes, both academic and leisure, to students from all over the United Kingdom and the rest of the world.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance

Teikyo School UK's student roll for the 2022/2023 academic year did not increase as expected. As a result, School Fee Income for the year ended 31 March 2023 was £556,982 (2022: £526,089). The Board of Trustees regularly reviews the fees charged to students and the student roll in order to maintain it at an appropriate level.

The English curriculum at Teikyo School UK is evolving to attract more students from Japan wishing to enter university in the United Kingdom or other countries outside of Japan. This includes the establishment of a dedicated International English Language Testing System class, a presentation and report writing skills class and a more academic leaning across the whole syllabus. Going forward, a goal of Teikyo School UK is to arm all students with a sound, applicable and relevant knowledge of English to raise the overall academic level of current and future students.

During the year, the students that attended the Teikyo School UK full-time and on short-course programmes continued to benefit from the formal educational activities offered as well as contributing to the wider community through involvement in exchange days with local schools and contributing to local events.

The sports facilities at the Teikyo School UK have been made available to various groups in the local and wider community such as swimming clubs. The charitable company offers subsidised rates to non-profit making organisations.

The Teikyo Foundation UK was unable to host any organised language schools and activity centres during the year because of the downturn of those activities since the COVID-19 pandemic. However, the Teikyo School UK did continue to provide facilities to the International School of Creative Arts which was started in September 2009.

Page 2

TEIKYO FOUNDATION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

The financial performance of the group is shown in the statement of financial activities. After taking into account the gains on investments, the group had net expenditure of £818,932 for the year ended 31 March 2023 (2022: net expenditure of £753,657).

This has resulted in a decrease in the group's unrestricted funds to £12,054,208 at 31 March 2023 (2022: £12,873,140). The group is prevented by its governing document from distributing its surplus, if any, to its members and accordingly no dividends are payable.

Reserves policy

The group's policy is to hold sufficient reserves to fund its various activities in the United Kingdom, including the Okinaga Scholarship Scheme at the University of Cambridge, academic visits, and the ongoing major refurbishment of the facilities at Wexham, as well as to safeguard the future of the group.

It is envisaged that the reserves held in investments and in cash will be sufficient to meet these commitments in the future. As of 31 March 2023, the group's liquid reserves represented by net current assets were £3,854,251 (2022: £5,499,139).

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 The Pictet Group and the Mitsubishi UFJ Financial Group. The investments held by the charitable company are reviewed regularly by the board of trustees and professional advice is taken from The Pictet Group and other advisers as appropriate.

Principal risks and uncertainties

The principal risks facing the charitable company are declining student numbers, loss of key staff, non-compliance with laws and regulations, and deterioration to the infrastructure and property as a result of wear and tear and age.

The charitable company continues to review operating policies and procedures and is also reviewing safety and safeguarding arrangements on the Campus and on trip and travel arrangements for students. There is an on-going maintenance and refurbishment programme covering the teaching facilities and accommodation blocks at the Teikyo Campus.

The financial risks faced by the charitable company arise from any potential decline in student numbers or other charitable activity, but this is mitigated by the holding of significant financial reserves. In mitigation, the charitable company is looking to commence a new student recruitment programme and continues to work closely with the Teikyo University to recruit new students.

Page 3

TEIKYO FOUNDATION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Grant-making

The charitable company intends in the future to support further postgraduate students at Wadham College Oxford (University of Oxford), St Edmunds’s College Cambridge (University of Cambridge) and Harvard University through the Okinaga Scholarship Scheme.

Future plans

The charitable company will continue to develop links with the local community and groups to enable the wider public community to continue to benefit from the activities and facilities at the Teikyo School UK and to broaden the educational experience of the students that attend the Teikyo School UK. The School is accredited as an International Baccalaureate (IB) Programme school which will commence in 2024 and will offer a diverse curriculum, strengthen English language skills, and prepare for future careers in the global arena.

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 25 July 1990, were last amended on 14 February 2002.

The trustees, who are also the directors of the charitable company for the purpose of the Companies Act 2006, 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 Mr. A Ishihara (Appointed 1 April 2022)

The members are Mr. Y Okinaga and Teikyo University. They are able to appoint trustees by Resolution of a Meeting or by Written Resolution.

New trustees who are also the directors are inducted into the workings of the company as a registered charity, including Board Policy and Procedures.

The board of trustees meet at least once a year to determine the ‘general policy’ of the charitable company and to 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 General Manager.

Page 4

TEIKYO FOUNDATION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Guarantors

Amounts guaranteed as at the 31 March 2023 and 31 March 2022: Mr. Y Okinaga £1 Teikyo University Foundation £2

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

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.

Mr. Y Okinaga is also a guarantor of Teikyo University of Japan in Durham Limited whose main activity is also the provision of educational facilities to Japanese nationals and is located in the grounds of Durham University.

Auditor

In accordance with the company's articles, a resolution proposing that MOORE Kingston Smith, Chartered Accountants and Business Advisors be appointed as auditor of the company as agreed at the General Meeting.

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, including the strategic report, was approved by the Board of Trustees.

Mr. Y Okinaga Trustee

Dated: XX XXXX 2024

Page 5

TEIKYO FOUNDATION (UK)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Teikyo Foundation (UK) 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 FOUNDATION (UK) INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO FOUNDATION (UK) FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Teikyo Foundation (UK) (the ‘parent charitable company’) and its subsidiaries (the ’group’) for the year ended 31 March 2023 which comprise of the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement 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 Financial Reporting Standard 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 group’s and parent 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 in 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.

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TEIKYO FOUNDATION (UK) INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO FOUNDATION (UK) 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 group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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, 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 group and parent 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 group or parent 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 FOUNDATION (UK) INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO FOUNDATION (UK) 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 FOUNDATION (UK) INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TEIKYO FOUNDATION (UK) 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 charitable company's members those matters which 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 Foundation (UK) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 March 2023

Notes
INCOME FROM:
Charitable Activities
School and college
3
Other educational income
4
Other trading activities
Other trading income
5
Investments
Investment Income
5
Voluntary sources
Grants and donations
6
Total income
EXPENDITURE ON:
Costs of raising funds
Other trading costs
7
Charitable activities
Education
7
Total expenditure
7
Net operating income/(expenditure)
Net gains on investments
Net income/(expenditure)
Net movement in funds
10
Fund balances brought forward
Fund balances carried forward 17, 18		 Total
2023
£
556,982
1,047,057
9,973
7,504
65,313		 Total
2022
£
526,089
943,720
4,804
26,164
41,269
1,686,829 1,542,046
-
3,379,284		 -
3,008,378
3,379,284 3,008,378
(1,692,455)
873,523		 (1,466,332)
712,675
(818,932)
(818,932)		 (753,657)
(753,657)
12,873,140 13,626,797
12,054,208 12,873,140

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 Foundation (UK) CONSOLIDATED AND CHARITY BALANCE SHEET as at 31 March 2023

Group
Notes
2023
£
FIXED ASSETS
Tangible assets
11
267,998
Investments
12
7,931,959
8,199,957
CURRENT ASSETS
Debtors
13
1,611,578
Investments: Short term deposits
2,600,000
Cash at bank and in hand
1,688,994
5,900,572
14
(2,046,321)
NET CURRENT ASSETS
3,854,251
TOTAL ASSETS LESS CURRENT LIABILITIES
12,054,208
NET ASSETS
12,054,208
FUNDS
Unrestricted funds – general
15
12,054,208
12,054,208
CREDITORS: Amounts falling
due within one year		 Group
2023
£
267,998
7,931,959		 Group
2022
£
326,043
7,047,958		 Charity
2023
£
267,998
7,931,960		 Charity
2022
£
326,043
7,047,959
8,199,957
1,611,578
2,600,000
1,688,994		 7,374,001
1,565,382
4,000,000
1,772,142		 8,199,958
1,598,060
2,600,000
1,634,876		 7,374,002
1,597,953
4,000,000
1,601,107
5,900,572
(2,046,321)		 7,337,524
(1,838,385)		 5,832,936
(1,803,759)		 7,199,060
(1,520,472)
3,854,251 5,499,139 4,029,177 5,678,588
12,873,140 12,229,135 13,052,590
12,054,208 12,873,140 12,229,135 13,052,590
12,054,208 12,873,140 12,229,135 13,052,590
12,054,208 12,873,140 12,229,135 13,052,590

As permitted by the s408 Companies Act 2006, the Charitable Company has not presented its own income statement and related notes. The Charitable Company's deficit for the year was £823,455 (31 March 2022: £753,540 deficit).

Approved and authorised for issue by the Board of Trustees on 7 December 2023 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: 02540502

Page 12

Teikyo Foundation (UK) CONSOLIDATED CASHFLOW STATEMENT for the year ended 31 March 2023

CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
20
Cash flows from investing activities:
Bank interest received
Investment income
Interest payable
Proceeds from sale of investments
Proceeds from sale of fixed assets
Payments to acquire fixed assets
11
Payments to acquire investments
Net cash outflow from investing activities
Increase/(decrease) in cash
Analysis of cash and cash equivalents:
Cash in hand
Short term deposits
Cash and cash equivalents at the
end of the reporting period
Cash and cash equivalents at the
beginning of the reporting period		 2023
£
(1,429,186)
7,504
-
-
-
(50,988)
(10,478)		 2022
£
(1,347,134)
26,164
-
-
6,993,621
-
(164,450)
(4,710,145)
(53,962) 2,145,190
(1,483,148)
5,772,142		 798,056
4,974,086
4,288,994 5,772,142
1,688,994
2,600,000		 1,772,142
4,000,000
4,288,994 5,772,142

Page 13

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

COMPANY INFORMATION

Teikyo Foundation (UK) is a company limited by guarantee with registered number 02540502, incorporated and domiciled in England and Wales. Its registered office is Teikyo Foundation (Uk), Framewood Road, Wexham,Buckinghamshire, SL2 4QS.

1 ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The School is a public benefit entity for the purposes of FRS 102 and therefore the Charitable Company also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

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 a 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.

Basis of consolidation

The group comprises of Teikyo Foundation (UK) and Teikyo Services (UK) Limited. The assets, liabilities and results of the wholly owned subsidiary are consolidated into these financial statements. Summarised details of the subsidiary company are set out in note 12.

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.

In addition, the financial statements have been prepared under the going concern basis because Teikyo University of Japan has provided an undertaking to financially support and not recall the amounts advanced to both Teikyo Foundation (UK) and Teikyo Services (UK) Limited.

1.4 INCOME

School and college fees, investment income, bank interest and other income are accounted for when receivable.

School and college fees are deferred proportionately where courses fall partly or fully in subsequent periods.

Investment income is interest received on bank deposits and bonds as week as dividends received from the fixed asset investments.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.

Gifts in kind are included in income and the corresponding asset included in fixed asset additions or charged against the statement of financial activities as appropriate.

Page 14

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

1.4 INCOME (continued)

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

The value of donated services is included in the statement of financial activities where the benefit to the charitable company is reasonably quantifiable and measurable. The vale recognised is the price the charitable company would expect to pay for a similar service or facility on the open market.

1.6 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Support costs are those costs incurred directly in support of expenditure on the objects of the Charitable Company. Governance costs are those incurred in connection with administration of the Charitable Company and compliance with constitutional and statutory requirements.

1.7 FIXED ASSETS AND DEPRECIATION

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

All assets costing more than £1,000 are capitalised.

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:

Furniture and Equipment -4 Years Computers -4 years Vehicles -4 Years

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Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

1.9 IMPAIRMENT OF FIXED ASSETS

At each reporting date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 PENSIONS

Payments to a defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9 LEASES

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are spread on a straight line basis over the lease term.

1.10 INVESTMENTS

Investments in subsidiaries are valued at cost less provision for impairment.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in the statement of financial activities. Transaction costs are expensed as incurred.

Current asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at market value at the Balance Sheet date, unless market value cannot be measured reliably in which case it is measured at amortised cost less impairment. Investment gains and losses whether realised or unrealised, are combined and shown in the heading 'Gains/(losses) on investments' in the Statement of Financial Activities incorporating the income and expenditure account.

1.11 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.

1.12 FINANCIAL INSTRUMENTS

The Charitable Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.13 TAXATION

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

1.14 EMPLOYEE BENEFITS

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 FOREIGN EXCHANGE

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in there period are included in profit and loss.

Page 16

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

2 KEY ESTIMATES & JUDGEMENTS

In the application of the Charitable Company's accounting policies, the School 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 Trustees, 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.

Recoverable value of fee debtors

The Charitable 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.

3 FEE INCOME

The Charitable Company’s activities are carried out within the UK.
The school and college fee income comprised:
Gross fees
OTHER EDUCATIONAL INCOME
ISCA fees
Other income		 2023
£
556,982		 2022
£
526,089
556,982 526,089
2023
£
893,498
153,559		 2022
£
843,217
100,502
1,047,057 943,719

4 OTHER EDUCATIONAL INCOME

5 INVESTMENT INCOME
Interest receivable
6 DONATIONS AND GRANTS
Donations and gifts
Furlough grant		 2023
£
7,504		 2022
£
26,164
7,504 26,164
2023
£
Total
65,313
-		 2022
£
Total
39,531
1,738
65,313 41,269

Page 17

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

7 EXPENDITURE

(a) 2023

(b) Charitable expenditure
Trading costs
Teaching
Welfare
Premises and Estates
Administration
Finance Costs
Governance
Donations
Total Charitable Expenditure
Total Expenditure		 £
-
Staff costs
(note 8)		 Other
£
5,610
 Depreciation
£
-		 Total
2023
£
5,610
- 5,610 - 5,610
538,413
163,363
-
681,437
-
-		 258,198
408,935
877,626
282,074
17,409
37,186		 -
-
109,033
-
-
-		 796,611
572,298
986,659
963,511
17,409
37,186
1,383,213 1,881,428 109,033 3,373,674
1,383,213 1,887,038 109,033 3,379,284
2022
Charitable expenditure
Trading costs
Teaching
Welfare
Premises and Estates
Administration
Total Charitable Expenditure
Total Expenditure		 £
-
Staff costs
(note 8)		 Other
£
4,951
 Depreciation
£
-		 Restated
Total
2022
£
4,951
- 4,951 - 4,951
645,484
180,106
-
455,592		 161,966
361,477
703,593
391,522		 -
-
103,687
-		 807,450
541,583
807,280
847,114
1,281,182 1,618,558 103,687 3,003,427
1,281,182 1,623,509 103,687 3,008,378

Page 18

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

7 EXPENDITURE (continued)
(c) Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- Accountancy Fees
- Other Auditors remuneration
(d) Administration Costs
Salaries
National Insurance
Pension Costs
Other Staff Costs
Subscriptions
Operating Leases
IT support
Postage and stationery
Telephones
Marketing and advertising
Legal and Professional Fees
Other Administration Costs
Bank charges
8 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
Other
£60,000 in the year was as follows:
£60,000 - £70,000
The number of employees whose emoluments amounted to over		 2023
£
13,250
23,504
3,472		 2022
£
18,061
-
-
40,226 18,061
2023
£
256,883
78,211
60,669
290,559
10,346
1,561
79,641
7,083
8,253
7,468
19,914
138,960
3,963		 2022
£
149,139
90,072
-
224,629
14,438
-
102,689
6,631
11,364
17,516
24,209
203,790
2,637
963,511 847,114
2023
£
702,238
133,843
91,984
455,148		 2022
£
629,644
170,060
84,991
396,487
1,383,213 1,281,182
2023
No.
20
36		 2022
No.
20
33
56 53
2023
No.
1		 2022
No.
-
1 -

Key management personnel include seconded staff from Teikyo University. The total pay and benefits received by key management personnel were £152,447 (2022: £127,963). Page 19

Page 19

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

9 TRUSTEES REMUNERATION AND BENEFITS

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

No travel and training expenses were paid to Trustees by the Charitable Company during the year (2022: £Nil).

10 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2023 2022
Net income is stated after charging: £ £
Depreciation of tangible fixed assets 109,033 103,687

11 TANGIBLE FIXED ASSETS

GROUP & CHARITY

OUP & CHARITY
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		 Computers
£
590,985
7,120		 Furniture
equipment
£
1,591,486
43,868		 Motor
Vehicles
£
195,680
-		 Total
£
2,378,151
50,988
598,105 1,635,354 195,680 2,429,139
363,720
52,499		 1,503,144
46,098		 185,244
10,436		 2,052,108
109,033
416,219 1,549,242 195,680 2,161,141
181,886 86,112 - 267,998
227,265 88,342 10,436 326,043

The group uses a property owned by Teikyo University of Japan for its principal activities. These premisses are occupied rent free subject to the group meeting the full cost of maintaining the premises.

Page 20

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

12 FIXED ASSET INVESTMENTS

GROUP
Listed
Investments
£
Cost/valuation At 1 April 2022
7,047,958
Additions
10,478
Disposals
-
873,523
Cost/valuation At 31 March 2023
7,931,959
CHARITY
Cost/valuation At 1 April 2022
Additions
Gains/(Losses) arising from movements in valuations
Cost/valuation At 31 March 2023
Historical cost
Cost/valuation At 1 April 2022
Additions
Disposals
Gains/(Losses) arising from movements in valuations
Cost/valuation At 31 March 2023
Historical cost
Material Investments
Alternative assets
Gains/(Losses) arising from movements in
valuations		 Listed
Investments
£
7,047,958
10,478
-
873,523		 2023
£
7,047,958
10,478
-
873,523		 Listed
Investments
£
6,618,760
4,710,145
(5,032,561)
751,614		 2022
£
6,618,760
4,710,145
(5,032,561)
751,614
7,931,959 7,931,959 7,047,958 7,047,958
Listed
Investments
£
7,047,958
10,478
873,523		 Shares in
Subsidiary
£
1
-
-		 2023
£
7,047,959
10,478
873,523
7,931,959 1 7,931,960
3,617,883
Listed
Investments
£
6,618,760
4,710,145
(5,032,561)
751,614		 50,000
Shares in
Subsidiary
£
1
-
-
-		 3,667,883
2022
£
6,618,761
4,710,145
(5,032,561)
751,614
7,047,958 1 7,047,959
3,607,405 50,000
2023
£
7,931,959		 3,657,405
2022
£
7,047,958
7,931,959 7,047,958

The wholly owned share capital of 50,000 shares of £1 in Teikyo Services Limited, Company Number 07568628. There is an impairment of £49,999 against the shares of the company. The company's principal activity is the management of the swimming pool for Teikyo Foundation (UK). Its results for the year are as follows:

Page 21

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

12 FIXED ASSET INVESTMENTS (continued)

Profit and loss accounts for the year ended 31 March 2023
Turnover
Expenditure
Other operating income
Interest payable
Loss for the period
Net assets at 31 March 2023
Debtors
Cash
Due to parent undertakings
Other creditors
Share capital
Profit and loss reserves
Capital and reserves
13 DEBTORS
Group
2023
£
Trade debtors
948
Fees and extras
94,067
Other debtors
46,979
Prepayments and accrued income
79,606
Amount due form connected company
1,389,978
Amount due from group undertaking
-
1,611,578
14 CREDITORS
Group
2023
Amounts falling due within one year:
£
Trade creditors
260,974
Taxation and social security costs
41,860
Fees in advance
575,923
Other creditors
203
Accruals
84,033
Amount due to group undertaking
1,083,328
2,046,321
Group
Deferred income:
2023
£
Brought forwards
463,524
Released in year
(463,524)
Received in year
575,923
Carried forwards
575,923		 Profit and loss accounts for the year ended 31 March 2023
Turnover
Expenditure
Other operating income
Interest payable
Loss for the period
Net assets at 31 March 2023
Debtors
Cash
Due to parent undertakings
Other creditors
Share capital
Profit and loss reserves
Capital and reserves
13 DEBTORS
Group
2023
£
Trade debtors
948
Fees and extras
94,067
Other debtors
46,979
Prepayments and accrued income
79,606
Amount due form connected company
1,389,978
Amount due from group undertaking
-
1,611,578
14 CREDITORS
Group
2023
Amounts falling due within one year:
£
Trade creditors
260,974
Taxation and social security costs
41,860
Fees in advance
575,923
Other creditors
203
Accruals
84,033
Amount due to group undertaking
1,083,328
2,046,321
Group
Deferred income:
2023
£
Brought forwards
463,524
Released in year
(463,524)
Received in year
575,923
Carried forwards
575,923		 Group
2022
£
10,422
75,509
-
49,131
1,430,320
-		 2023
£
91,629
(87,266)
160		 2022
£
47,797
(47,943)
29
4,523 (117)
88,869
54,118
(317,913)		 10,422
171,035
(360,906)
(174,926) (179,449)
50,000
(224,926)		 50,000
(229,449)
(174,926) (179,449)
Charity
2023
£
-
94,067
46,979
67,036
1,389,978
-		 Charity
2022
£
-
75,509
-
49,131
1,430,320
42,993
1,611,578 1,565,382 1,598,060 1,597,953
Group
2023
£
260,974
41,860
575,923
203
84,033
1,083,328		 Group
2022
£
209,972
52,862
463,524
-
28,699
1,083,328		 Charity
2023
£
259,934
41,860
575,923
203
81,173
844,666		 Charity
2022
£
209,972
52,862
463,524
-
24,799
769,315
2,046,321 1,838,385 1,803,759 1,520,472
Group
2023
£
463,524
(463,524)
575,923
575,923		 Group
2022
£
374,137
(379,557)
468,944
463,524		 School
2023
£
463,524
(463,524)
575,923		 School
2022
£
374,137
(379,557)
468,944
575,923 463,524

Deferred income relates to schools fees received in advance for the following term.

Page 22

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

15 STATEMENT OF FUNDS

GROUP
Unrestricted funds:
General reserve
Total funds
Unrestricted funds:
General reserve
Total funds
FOUNDATION
Unrestricted funds:
General reserve
Total funds
Unrestricted funds:
General reserve
Total funds		 £
12,873,140
At 1 April
2022		 Income
£
1,686,829		 Expenditure
£
(3,379,284)		 Gains/
(losses)
£
873,523		 £
12,054,208
At 31 March
2023
12,873,140 1,686,829 (3,379,284) 873,523 12,054,208
£
13,626,797
At 1 April
2021		 Income
£
1,542,046		 Expenditure
£
(3,008,378)		 Gains/
(losses)
£
712,675		 £
12,873,140
At 31 March
2022
13,626,797 1,542,046 (3,008,378) 712,675 12,873,140
£
13,052,590
At 1 April
2022		 Income
£
1,676,696		 Expenditure
£
(3,373,676)		 Gains/
(losses)
£
873,523		 £
12,229,133
At 31 March
2023
13,052,590 1,676,696 (3,373,676) 873,523 12,229,133
£
13,806,130
At 1 April
2021		 Income
£
1,537,212		 Expenditure
£
(3,003,427)		 Gains/
(losses)
£
712,675		 £
13,052,590
At 31 March
2022
13,806,130 1,537,212 (3,003,427) 712,675 13,052,590

Page 23

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP

ANALYSIS OF NET ASSETS BETWEEN FUNDS
GROUP
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
FOUNDATION
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
£
267,998
7,931,959
5,900,572
(2,046,321)		 2023
Total
£
267,998
7,931,959
5,900,572
(2,046,321)
12,054,208 12,054,208
Unrestricted
funds
£
326,043
7,047,958
7,337,524
(1,838,385)		 2022
Total
£
326,043
7,047,958
7,337,524
(1,838,385)
12,873,140 12,873,140
Unrestricted
funds
£
267,998
7,931,960
5,832,936
(1,803,759)		 2023
Total
£
267,998
7,931,960
5,832,936
(1,803,759)
12,229,135 12,229,135
Unrestricted
funds
£
326,043
7,047,959
7,199,060
(1,520,472)		 2022
Total
£
326,043
7,047,959
7,199,060
(1,520,472)
13,052,590 13,052,590

17 COMMITMENTS UNDER OPERATING LEASES

At 31 March 2023, the Charitable Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years		 2023
Plant &
Equipment
6,167
1,288		 2022
Plant &
Equipment
6,796
2,166
7,455 8,962

Page 24

Teikyo Foundation (UK) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

18 RELATED PARTIES

Included with donations include donated services of £65,313 (2022: £39,531) from Teikyo University of Japan in respect of staff seconded from Teikyo University of Japan.

CONNECTED CHARITIES

Mr Y Okinaga is also a guarantor of Teikyo University of Japan in Durham, a registered charity whose main activity is also the provision of educational facilities to Japanese nationals and which is based at Durham University.

Teikyo Foundation (UK) provides a centralised accounting and payroll service for Teikyo University of Japan In Durham, a charity under common control.

During the year ended 31 March 2023, Teikyo Foundation (UK) 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. These amounts were recharged at cost and repayments totalling £505,794 (2022: £377,797) were made by Teikyo University of Japan ln Durham during the year.

At the 31 March 2023, Teikyo University of Japan ln Durham Limited owed Teikyo Foundation (UK) an amount of £1,389,978 (2022: £1,430,320).

19 MEMBERS LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member. The number of members as at 31 March 2023 was 2 (2022: 2).

20 NOTES TO THE CASHFLOW STATEMENT

NOTES TO THE CASHFLOW STATEMENT
Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Gains on investments
Depreciation
Bank interest received
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors		 2023
£
(818,932)
(873,523)
109,033
(7,504)
207,936
(46,196)		 2022
£
(753,657)
(712,675)
103,687
(26,164)
43,325
(1,650)
(1,429,186) (1,347,134)

21 PENSIONS

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable by the charitable company to the fund and amounted to £91,984 for the year ended 31 March 2023 (2022: £84,991).

Page 25