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2020-12-31-accounts

REGISTERED COMPANY NUMBER: 02758093 (England and Wales) REGISTERED CHARITY NUMBER: 1015054

Report of the Trustees and

Financial Statements for the Year Ended 31 December 2020

for

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

RfM Fylde Limited Summerdale Head Dyke Lane Pilling Lancashire PR3 6SJ

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Contents of the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Report of the Trustees 1 to 9
Report of the Independent Auditors 10 to 13
Statement of Financial Activities 14
Statement of Financial Position 15
Statement of Cash Flows 16
Notes to the Statement of Cash Flows 17
Notes to the Financial Statements 18 to 36
Detailed Statement of Financial Activities 37 to 38

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

In the wording of the charity's Memorandum of Association, the objects for which the charity is established are to increase the Buddhist Faith throughout the world, under the spiritual guidance of the elected General Spiritual Director ('GSD') of the NKT-IKBU, by promoting the activities of the union of Kadampa Buddhist Centres called the NKT-IKBU, the international association of study and meditation centres that follow the pure tradition of Mahayana Buddhism derived from the Buddhist meditators and scholars Atisha and Je Tsongkhapa, introduced into the West by the Buddhist teacher Venerable Geshe Kelsang Gyatso; and that follow the three New Kadampa Tradition Study Programmes; and that are guided by the code of moral discipline called the Internal Rules of the NKT-IKBU.

Significant activities

In order to promote its objects, the charity maintains an International Temples Project ('ITP'), whose aim is in general to introduce the Buddhist Faith of the New Kadampa Tradition publicly and in particular to exemplify Buddhist practice through service to the public.

To further the objects of the ITP, the charity continually emphasises the development throughout the world of:

In furtherance of its aims, the charity also operates the residential Buddhist Centre 'Manjushri Kadampa Meditation Centre' ('Manjushri KMC'); produces Buddhist art prints and publishes printed, audio and e-books of Buddhist teachings under the name 'Tharpa Publications'; holds annual Spring and Summer Festivals with Buddhist teachings and meditation retreats; and maintains a 'Kadampa Art Studio' and a 'Kadampa Internet' office, all at its Conishead Priory premises in Ulverston, Cumbria, UK.

In support of the activities of the International Temples Project ('ITP'), the charity makes grants and interest-free loans to NKT-IKBU Centres around the world. Requests for grants and loans are considered by the trustees on an individual basis, and the financial forecasts for each project are closely examined to ensure viability. The charity takes a long-term view when supporting the development of ITP activities, and makes financial provisions as necessary. When a grant or loan is made, the recipient Centre provides regular progress reports to the Secretary of the GSD of the charity, who then reports to the Weekly Meeting of the Education Council, and the charity's Finance Committee.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES Public benefit

Identifiable benefits

In exercising their powers and duties, the trustees have due regard to the guidance on public benefit published by the Charity Commission. They believe that the work of the charity in promoting the Buddhist Faith has clearly identifiable public benefits.

The charity believes that there are three important public benefits to promoting the Buddhist Faith throughout the world:

If as individuals we do not strive to develop our wisdom, we will always remain ignorant of the true nature of reality. Everyone wishes for happiness, but our ignorance of reality leads us to engage in non-virtuous actions, which in turn are the main cause of all our suffering. Further, if we do not cultivate a good heart towards others, then our selfish motivation destroys the harmony of our relationships with others. We then have no peace, and no chance to gain pure happiness. Without inner, mental peace, outer peace is impossible, both personally and throughout society.

Benefit to the public

The charity supports a world-wide membership of Buddhist Centres, all of which offer classes of instruction in Buddhist philosophy and meditation, bringing personal and social benefit.

These same programmes of study and meditation are directly offered by the charity at Manjushri KMC, which functions at the charity's main premises at Conishead Priory. All classes are accessible to the public. Both 'drop-in' classes and more advanced courses of Buddhist instruction are offered. Some are offered free of charge, whilst modest fees are charged for others. A year-round programme of services of prayer and meditation is also offered, once again open to the public. In response to the changing circumstances presented by the Covid-19 pandemic, the charity quickly adapted to broadcast online this same programme of beginners and advanced courses, as well as the services of prayer and meditation.

The charity's main premises at Conishead Priory, including the Kadampa World Peace Temple and 70 acres of woodlands and gardens, are freely open to the public daily throughout the year, providing a peaceful environment for anyone who wishes to enjoy it. Where Covid-19 restrictions allow, free 15-minute meditation sessions are offered daily in the Temple. The Café and Gift Shop continue to be popular with local people, course attendees, and visitors to the area alike. Manjushri KMC also regularly hosts visits from school and other community groups, although these are temporarily suspended due to current restrictions. All of these activities are staffed by volunteers from Conishead Priory's residential and local community, showing the example of Kadampa Buddhist practice through service to the public.

In addition, the charity funds and supports the establishment of traditional and non-traditional World Peace Temples, meditation and retreat Centres, World Peace Cafés, and Tharpa Publications throughout the world, all dedicated to the promotion of the Buddhist faith through service to the public.

Grantmaking

In general, grants and loans are made only to NKT-IKBU Centres that are incorporated and registered as charities within their own countries. Exceptions may be made in the case where Kadampa Buddhism is being newly established in countries where there has been no prior activity.

Volunteers

All aspects of the day to day functioning of Manjushri KMC, are run by members of the residential community together with volunteers from the extended community both local and international. The support of the community, as an expression of their service to the public, means that the charity can operate with relatively low staff numbers.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The emergence in 2020 of the global Covid-19 pandemic provided both challenges and opportunities for the charity. In particular, the rapidly changing and often challenging circumstances highlighted for many people the importance of developing their wisdom, cultivating a good heart, and maintaining a peaceful mind.

Manjushri Kadampa Meditation Centre, Conishead Priory

Manjushri KMC continued to offer a full and varied spiritual programme of meditation retreats and courses, study programmes and prayer services throughout the year. The year began with the traditional retreat month in January with over 150 people joining all or part of the month's retreat programme. This was followed by a weekend course taught by the Centre's Resident Teacher (who also serves as the General Spiritual Director of the NKT-IKBU). Attended by 350 people, it was the last in-person event before the Centre voluntarily closed due to the increasing risk from Covid-19. Recognising the great public need for support during these unprecedented times, the spiritual programme was quickly adapted and broadcast online, including the introduction of free daily podcasts aimed at supporting the wider public. Attendee figures demonstrate that the above activities throughout the pandemic have provided much needed help and support. In-person activities were offered alongside the online programme at various times throughout the year when Covid-19 restrictions allowed.

During the initial lockdown it was necessary to close the grounds of Conishead Priory to the public in order to protect both the visiting public and the residential community at Manjushri Kadampa Meditation Centre, which comprises over 100 people, many of whom were required to shield. Since the initial lockdown however, the grounds have remained open daily, and have provided a peaceful haven for the visiting public.

Our normal programme of school and group visits has been temporarily suspended, but it will resume as soon as it is safe to do so.

International Festivals

None of our three annual NKT-IKBU International Festivals (Spring, Summer and Fall) could be offered as in-person events in 2020, and so they were streamed online. This actually allowed many more people to attend than would have been possible otherwise.

The International Spring Festival was held over a period of 5 days, and was attended by 5,630 people, from 60 countries.

The International Summer Festival was held over a period of two weeks, and was attended by 5126 people, from 61 countries.

The International Fall Festival was held over a period of 6 days, and was attended by 3790 people from 60 countries.

Tharpa Publications UK

Tharpa Publications saw a general increase in online sales throughout the year as more and more people turned to mediation and inner development as practical methods to deal with their challenges. The closure of bricks and mortar bookshops and NKT Buddhist Centres for much of the year, resulted in an overall decrease in sales revenue for Tharpa Publications in 2020.

This allowed time however to focus on developments in other areas. A redesign of the Tharpa website, e-commerce system and distribution systems facilitated the launch of an online shop offering gift and ritual items as part of the NKT International Online Spring, Summer and Fall Festivals. Tharpa UK also supported a number of International Tharpa Publications to do the same. As a result, Tharpa Publications both in the UK and elsewhere have a stronger infrastructure and are better placed to develop future online sales. This project also helped pave the way for the new post-brexit export requirements that came into play at the end of 2020.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

Kadampa Art Studio

The Kadampa Art Studio at Conishead Priory continues to produce Buddha statues and Buddha ornaments for traditional and urban NKT-IKBU Temple developments, and for Kadampa Meditation Centres (KMCs) and International Kadampa Retreat Centres (IKRCs) throughout the world. The Studio was busy throughout the year producing the Buddha statues and ornaments for the new Kadampa Temple for World Peace currently being constructed by the charity at its property near Málaga in Spain, which will be inaugurated at the 2022 International Spring Festival. In addition, statues and ornaments were produced for the following Centres:

FINANCIAL REVIEW

Financial review

Since 1 January 2011, the charity has followed financial guidelines set out in an internal guidance manual, called 'A Money Handbook'. These guidelines recognise that all charity income is designated as International Temples Project (ITP) funds, and as such provides the funding for all of the charity's activities.

The aims of the ITP are in general to introduce the Buddhist Faith of the New Kadampa Tradition publicly, and in particular to exemplify Buddhist practice through service to the public.

In April 2019 the charity purchased a property in central Leeds and in early 2020 permissions were granted to transform the property into a Kadampa Meditation Centre with large meditation room, shop and café area. Whilst the renovation project was initially delayed by the Covid-19 pandemic, work is now moving ahead swiftly. Activities will begin in the Centre in the second half of 2021, with a firm opening date still to be confirmed.

During the year the charity sold its property in Singapore, moving the Centre there to smaller and more suitable premises and thereby releasing some funds for future ITP projects elsewhere.

ITP funds were also made available in the form of interest-free loans to assist with on-going renovation programme costs for KMC Austria in Vienna, KMC Dublin, and KMC Aberdeen.

As detailed above, the ITP funded the production of statues and other artwork in the Kadampa Art Studio for various other new city-centre Kadampa Meditation Centres around the world. Total grants raised for the Kadampa Art Studio in 2020 amounted to £49,189.

A total of £461,965 was also given in other grants and international sponsorships and £658,118 in interest-free loans in support of other ITP activities throughout the world.

Donations made to the Charity's International Temples Project Fund in 2020, totalled £948,850.

The trustees consider that providing interest-free loans rather than grants benefits the recipient NKT-IKBU Centres in a number of ways. It provides safe funding for projects, and allows time for Centre activities to become established without undue financial pressure; but at the same time it also helps create an attitude of financial independence and responsibility in the recipients, and encourages an appreciation of the ITP through the recognition that repayment of the loan will ensure that funds are available for future ITP projects.

Principal funding sources

The principal funding sources for the charity in 2020 included the surplus from the NKT-IKBU International Spring, Summer and Fall Festivals, and the surpluses from Tharpa Publications and Manjushri KMC.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA

BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

Reserves policy

The ITP accounts are reviewed fortnightly to ensure that sufficient funds are available to cover current running costs, and that there is a minimum of £75,000 available to replenish the funds in the charity's daily running account (as set out in A Money Handbook).

The trustees are of the opinion that £750,000 is a comfortable level of free reserves in order to maintain the basic operations of the charity including required capital expenditure or servicing of any borrowing, and to provide some surety against adverse financial events, such as unbudgeted expenditure or failure to achieve income targets. This level of reserve funds is reviewed annually by the trustees.

To ensure the charity's ability to further its objects both in the UK and internationally, the trustees have designated funds for the development and support of International Temples Project activities worldwide. The trustees further consider reserves equal to the sum of one year's running costs and three years of building, repair and maintenance costs is a suitable level to protect the charity in case of adverse financial events. This is also reviewed annually by the trustees.

FUTURE PLANS

The charity continues to offer material support for the international development of NKT-IKBU Buddhist Centres through its International Temples Project.

In 2020 much progress was made on the construction of a traditional Kadampa Temple for World Peace in Málaga, Spain, and work is currently on-schedule for the inauguration in Spring 2022.

As mentioned previously, progress is also being made in relation to the renovation of the charity's property in Leeds city centre. It is anticipated that activities will soon begin and the official opening will happen in the second half of 2021.

The charity recently made International Temples Project funds available in the form of a loan to KMC Mexico for the purchase of land in Mexico City where they will construct new premises for their Centre. After many years of searching for a suitable space, this is a wonderful development for the NKT-IKBU in Mexico.

The charity is also currently committed to purchasing a property in Sao Paolo, Brazil which will become the home of Mahabodhi KMC; a property in Stuttgart, Germany which will be the home of KMC Stuttgart; and a property in Dumfries, UK which will be the home of Vajrasattva KMC.

As with everyone else in the UK, and indeed around the world, the Covid-19 pandemic has dramatically altered the way in which the charity has carried out its activities in the past year. Having demonstrated its ability not only to adapt but also to increase its activities during this time, the trustees are confident that the charity will remain in a good stable position throughout these continued challenging times.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a company limited by guarantee, incorporated in 1992 and now operating under Memorandum and Articles of Association adopted in April 2007, when the organisation also adopted its present name (which is abbreviated to "NKT-IKBU" in this report).

In the event of the company being dissolved, each Member is required to contribute an amount not exceeding £10 towards the settlement of any outstanding debts, liabilities and costs.

The company is registered as a charity, and is established, organised and operated exclusively for religious purposes. There are four trustees, who are the Directors of the company. Two of the trustees are directly elected as such by the Members of the charity, and two are ex-officio posts. The ex-officio posts are occupied by the General and Deputy Spiritual Directors of the charity, who again are elected as such by the Members. An elected trustee's term of office is two years, with re-election possible.

The Members of the charity are:

Organisational structure

The charity has a two tier structure with policy setting and strategic decision making being the responsibility of the trustees and the implementation of procedures and day to day operational management being the responsibility of the executive officers.

Decision making

The trustees make all the major decisions of the charity, and under their direction the central daily administrative tasks are carried out by a team of executive officers.

Induction and training of new trustees

All trustees are already familiar with the practical work of the charity before their appointment, having undertaken similar duties within the charity or within a related organisation. Other present and former trustees are also available to help a new trustee with his or her responsibilities and duties.

Key management remuneration

Each remunerated officer or member of staff of the charity receives the same standard staff remuneration from the charity. This standard staff remuneration applies across all departments within the charity and to all offices of the charity including the office of General Spiritual Director.

The level of the standard staff remuneration of the charity accords with the principle of Buddhist practice through public service. It is reviewed from time to time by the Finance Committee of the charity and any changes must be approved by special resolution of the charity in general meeting.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Wider network

All Member Centres of the NKT-IKBU are independent legal entities, bound together firstly by the common spiritual lineage called the "New Kadampa Tradition" of Buddhism, and secondly by membership of the charity. The General Spiritual Director ('GSD') of the NKT-IKBU is also the Spiritual Director of each Member Centre.

NKT- IKBU and all Member Centres are bound by and follow, guidelines known as A Moral Discipline Guide: The Internal Rules of the New Kadampa Tradition - International Kadampa Buddhist Union (the 'Internal Rules'), the purpose of which is

In accordance with the Internal Rules, three of the executive officers of the charity; the General Secretary and Deputy Secretary, and the Secretary of the General Spiritual Director support Member Centres in their spiritual and material development.

Related parties

In furtherance of the charity's objects of promoting the Buddhist faith through the development of Kadampa Buddhism worldwide, interest-free loans are made to Member Centres as outlined in the Financial Review section above. Charity owned properties are also made available to be used by Member Centres often on a rent-free basis, for similar reasons of assisting the Member Centre's development without undue external financial pressures.

Donations to the charity's International Temples Project Fund are also received from Member Centres. As these are completely discretionary, donations received from Member Centres are not disclosed separately in the accounts.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees of the charity meet regularly to review the major risks to which the charity is exposed, and they have established procedures to mitigate such risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02758093 (England and Wales)

Registered Charity number

1015054

Registered office

Conishead Priory Priory Road Ulverston Cumbria LA12 9QQ

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees

Heather C. Wright (aka Kelsang Dekyong), appointed on 1 August 2009 Henry F. Shefveland (aka Kelsang Jampa), appointed on 10 January 2016 Jennifer J. Andrews (aka Kelsang Droljang), appointed on 24 July 2012 Paul A. P. Boseley, appointed 1 May 2018

Executive Officers

The daily central administrative tasks of the charity are carried out by the four main executive officers, as follows:

General Secretary - Stephen P. Cowing

Deputy Secretary - Anthony Roy Tyson

Secretary of the General Spiritual Director - Lisa McGovern (aka Kelsang Ringyal) Treasurer - Linda Cay (aka Kelsang Maitri)

Company Secretary

S P Cowing

Auditors

RfM Fylde Limited Summerdale Head Dyke Lane Pilling Lancashire PR3 6SJ

Bankers

Barclays Bank PLC, 86-90 Dalton Road, Barrow-in-Furness, Cumbria, LA14 1JF CCLA Investment Management Ltd, COIF Charity Funds, 80 Cheapside, London, EC2V 6DZ

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of New Kadampa Tradition - International Kadampa Buddhist Union for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

AUDITORS

The auditors, RfM Fylde Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 2 July 2021 and signed on its behalf by:

Ms H C Wright - Trustee

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Report of the Independent Auditors to the Members of New Kadampa Tradition - International Kadampa Buddhist Union (Registered number: 02758093)

Opinion

We have audited the financial statements of New Kadampa Tradition - International Kadampa Buddhist Union (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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Report of the Independent Auditors to the Members of New Kadampa Tradition - International Kadampa Buddhist Union (Registered number: 02758093)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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 Statement of Trustees' Responsibilities, 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.

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Report of the Independent Auditors to the Members of New Kadampa Tradition - International Kadampa Buddhist Union (Registered number: 02758093)

Our 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 a Report of the Independent Auditors 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

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Report of the Independent Auditors to the Members of New Kadampa Tradition - International Kadampa Buddhist Union (Registered number: 02758093)

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Meikle FCA (Senior Statutory Auditor) for and on behalf of RfM Fylde Limited Summerdale Head Dyke Lane Pilling Lancashire PR3 6SJ

2 July 2021

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
Notes
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
594,266
383,391
Charitable activities
4
International Festivals
2,056,228
-
Tharpa Publications
224,933
-
Manjushri Kadampa Meditation Centre
718,663
-
Shop and World Peace Cafe
193,566
-
Kadampa Art Studio and Internet
65,884
-
Properties Income
204,386
-
Investment income
3
327
-
Total
4,058,253
383,391
EXPENDITURE ON
Charitable activities
5
Grants Payable
67,563
403,079
International Festivals
102,684
-
Tharpa Publications
163,040
-
Manjushri Kadampa Meditation Centre
775,342
-
Kadampa Art Studio and Internet
220,206
-
Properties Expenditure
394,517
-
International Kadampa Development
(1,756,898)
-
Total
(33,546)
403,079
NET INCOME/(EXPENDITURE)
4,091,799
(19,688)
RECONCILIATION OF FUNDS
Total funds brought forward
29,063,462
2,848,523
TOTAL FUNDS CARRIED FORWARD
33,155,261
2,828,835		 2020
Total
funds
£
977,657
2,056,228
224,933
718,663
193,566
65,884
204,386
327
4,441,644
470,642
102,684
163,040
775,342
220,206
394,517
(1,756,898)
369,533
4,072,111
31,911,985
35,984,096		 2019
Total
funds
£
2,659,741
1,411,834
338,270
783,212
330,119
292,125
169,671
692
5,985,664
279,583
419,779
199,197
887,148
337,008
106,526
1,065,716
3,294,957
2,690,707
29,221,278
31,911,985

The notes form part of these financial statements

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093)

Statement of Financial Position 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
Notes
£
£
FIXED ASSETS
Tangible assets
13
17,877,937
2,667,273
Investments
14
2,109
-
17,880,046
2,667,273
CURRENT ASSETS
Stocks
15
349,854
-
Debtors
16
11,844,085
-
Investments
17
-
150,926
Cash at bank
7,232,962
10,636
19,426,901
161,562
CREDITORS
Amounts falling due within one year
18
(1,468,332)
-
NET CURRENT ASSETS
17,958,569
161,562
TOTAL ASSETS LESS CURRENT
LIABILITIES
35,838,615
2,828,835
CREDITORS
Amounts falling due after more than one
year
19
(2,683,354)
-
NET ASSETS
33,155,261
2,828,835
FUNDS
22
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2020
Total
funds
£
20,545,210
2,109
20,547,319
349,854
11,844,085
150,926
7,243,598
19,588,463
(1,468,332)
18,120,131
38,667,450
(2,683,354)
35,984,096
33,155,261
2,828,835
35,984,096		 2019
Total
funds
£
21,335,906
2,109
21,338,015
339,845
10,850,216
142,443
3,654,196
14,986,700
(1,491,456)
13,495,244
34,833,259
(2,921,274)
31,911,985
29,063,462
2,848,523
31,911,985

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 2 July 2021 and were signed on its behalf by:

H C Wright - Trustee

The notes form part of these financial statements

Page 15

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Statement of Cash Flows FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Transfer of funds held on deposit
Net cash provided by/(used in) investing activities
Cash flows from financing activities
New bank loans in year
Bank loan repayments in year
New concessionary loans in year
Concessionary loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2020
£
1,575,059
(88,471)
1,486,588
(910,356)
3,239,911
327
(8,483)
2,321,399
-
(218,585)
-
-
(218,585)
3,589,402
3,654,196
7,243,598		 2019
£
(7,344)
(117,223)
(124,567)
(2,426,406)
555,479
692
5,850
(1,864,385)
1,007,000
(180,382)
850,550
(17,611)
1,659,557
(329,395)
3,983,591
3,654,196

The notes form part of these financial statements

Page 16

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Statement of Cash Flows FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Profit on disposal of fixed assets
Interest received
Interest paid
Impairment of investments
(Increase)/decrease in stocks
Increase in debtors
Decrease in creditors
Net cash provided by/(used in) operations		 2020
£
4,072,111
97,628
(1,636,485)
(327)
88,471
-
(10,009)
(993,869)
(42,461)
1,575,059		 2019
£
2,690,707
128,772
(18,488)
(692)
117,223
16,290
44,315
(2,974,032)
(11,439)
(7,344)

2. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

Net cash
Cash at bank
Liquid resources
Deposits included in cash
Current asset investments
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1/1/20
£
3,654,196
3,654,196
-
142,443
142,443
(1,325,966)
(2,921,274)
(4,247,240)
(450,601)		 Cash flow
£
3,589,402
3,589,402
-
8,483
8,483
(19,337)
237,920
218,583
3,816,468		 At 31/12/20
£
7,243,598
7,243,598
-
150,926
150,926
(1,345,303)
(2,683,354)
(4,028,657)
3,365,867

The notes form part of these financial statements

Page 17

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

There are no material uncertainties about the charity’s ability to continue.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

In accordance with Regulation 19 of The Charities (Accounts and Reports) Regulations 2008, individually and in aggregate, each of the subsidiary undertakings are not material for the purposes of giving a true and fair view.

On this basis, the financial statements contain information about New Kadampa Tradition - International Kadampa Buddhist Union as an individual charity and do not contain consolidated financial information as the parent of a group.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Critical accounting judgements and key sources of estimation uncertainty made by trustees and management in preparing these financial statements which also have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of a festival, course, retreat or for provision of other specified service it is deferred until the criteria for income recognition are met.

Donated goods, services and facilities

Donated goods, professional services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated goods, professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

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continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

INCOME

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Grants payable

Grants offered subject to conditions which have not been met at the statement of financial position date are noted as a commitment but not accrued as expenditure.

ALLOCATION AND APPORTIONMENT OF COSTS

Support costs that cannot be directly attributed to a specific activity are apportioned across all relevant activities on the basis of time spent on each activity by NKT administrative employees.

TANGIBLE FIXED ASSETS

Tangible fixed assets are capitalised at cost. The costs of property repairs, replacement and maintenance are written off as they are incurred. The charity only capitalises items costing more than £10,000.

Depreciation is provided so as to write off the cost of fixed assets to their estimated residual values over their expected useful lives, as follows:

Freehold property - Land is not depreciated
Listed buildings - Straight line over 350 years
Non-listed buildings - Straight line over 80 years
Other land and buildings - Straight line over 25-50 years
Long leasehold - Straight line over 80 years, or lease period if shorter
Fixtures and fittings - 15% on reducing balance
Motor vehicles - Straight line over 4 years

Depreciation is charged on a monthly basis from the calendar month following acquisition or on the bringing into use of the asset, whichever is the later. A full month is charged in the month of disposal.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Fixed assets and investments are subject to review for impairment when there is an indication of a reduction in their carrying value.

Any impairment is recognised in the year in which it occurs in the corresponding SOFA category.

Page 19

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS

Current asset investments

Current asset investments are measured at cost and comprise of cash balances set aside in separate bank accounts for specific restricted purposes.

STOCKS

Stock is included at the lower of cost or net realisable value after making due allowance for obsolete and slow moving items. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

TAXATION

The charity is exempt from corporation tax on its charitable activities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

FINANCIAL INSTRUMENTS

Concessionary loans

The charity meets the definition of a Public Benefit Entity ("PBE") and applies the measurement provisions of FRS 102 paragraphs PBE34.89-PBE34.97 to all its concessionary loans.

Other financial instruments

The charity has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments that are not concessionary loans.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Page 20

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS

Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in income or expenditure.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in income or expenditure.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest.

Impairment

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in income or expenditure.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in income or expenditure.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

2.
DONATIONS AND LEGACIES
Donations
3.
INVESTMENT INCOME
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Festivals
International Festivals
Tharpa Publications
Tharpa Publications
Manjushri Centre Activities
Manjushri Kadampa Meditation Centre
Shop and World Peace
Cafe
Shop and World Peace Cafe
Kadampa Art Studio
Activities
Kadampa Art Studio and Internet
Properties Income
Properties Income		 2020
£
977,657
2020
£
327
2020
£
2,056,228
224,933
718,663
193,566
65,884
204,386
3,463,660		 2019
£
2,659,741		 2019
£
2,659,741
2019
£
692
2019
£
1,411,834
338,270
783,212
330,119
292,125
169,671		 2019
£
692
3,325,231

5. CHARITABLE ACTIVITIES COSTS

Grants Payable
International Festivals
Tharpa Publications
Manjushri Kadampa Meditation
Centre
Kadampa Art Studio and Internet
Properties Expenditure
International Kadampa
Development		 Direct
Costs
£
-
98,172
158,013
764,831
218,493
355,083
198,959
1,793,551		 Grant
funding of
activities
(see note
6)
£
470,642
-
-
-
-
-
-
470,642		 Support
costs (see
note 7)
£
-
4,512
5,027
10,511
1,713
39,434
(1,955,857)
(1,894,660)		 Totals
£
470,642
102,684
163,040
775,342
220,206
394,517
(1,756,898)
369,533

Included within charitable activity costs are exchange gains of £356,388 and surplus on sale of tangible fixed assets of £1,636,485.

Page 22

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

6. GRANTS PAYABLE

GRANTS PAYABLE GRANTS PAYABLE
Grants Payable
The total grants paid to institutions during the year was as
follows:
Gifts to Centres
Gifts to Centres include the following donations:		 2020
£
470,642
2020
£
470,642		 2019
£
279,583
2019
£
279,583
2020 2019
£ £
Grants for Kadampa Art Studio-2020: 7 (2019: 9) 49,189 256,138
Gifts to Centres - 2020: 12 (2019: 4) 421,453 23,445
470.642 279,583
SUPPORT COSTS
Management
Finance
£
£
International Festivals
3,381
-
Tharpa Publications
2,706
1,476
Manjushri Kadampa Meditation Centre
7,877
-
Kadampa Art Studio and Internet
1,284
-
Properties Expenditure
-
-
International Kadampa Development
(1,608,745)
-
(1,593,497)
1,476
Activity
Basis of allocation
Management
NKT administrative employees
Finance
NKT administrative employees
Governance costs
NKT administrative employees		 Governance
costs
£
1,131
845
2,634
429
39,434
(347,112)
(302,639)		 Totals
£
4,512
5,027
10,511
1,713
39,434
(1,955,857)
(1,894,660)

7. SUPPORT COSTS

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020 2019
£ £
Depreciation - owned assets 97,626 128,772
Surplus on disposal of fixed assets (1,636,485) (18,488)
Exchange (gains)/losses (356,388) 174,692
Impairment of fixed asset investments - 16,290
Provision for unrecoverable loans (71,765) 120,842
Loans written off - 177,637

Page 23

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

9. AUDITORS' REMUNERATION

9.
AUDITORS' REMUNERATION
Fees payable to the charity's auditors for the audit of the charity's
financial statements
Audit-related assurance services
Total fees payable
10.
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' salaries		 2020
£
10,500
3,815
14,315
2020
£
7,386		 2019
£
10,200
2,827
13,027		 2,827
2019
£
8,273

During the year Heather C. Wright (aka Kelsang Dekyong) received the standard remuneration applicable to all officers and staff members of the charity amounting to £7,386 (2019: £8,273) for her role as a Resident Teacher. No other trustees' received any remuneration or benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

11. STAFF COSTS

STAFF COSTS
Wages and salaries
Other pension costs		 2020
£
268,454
20,096
288,550		 2019
£
230,478
19,561
250,039

The average monthly number of employees during the year was as follows:

Manjushri Centre
Tharpa Publications
Kadampa Art Studio and Hosting
Support and Administration
Kadampa Hotels		 2020
9
5
17
7
1
39		 2019
9
3
16
6
1
35

No employees received emoluments in excess of £60,000.

All charity employees receive the same standard staff remuneration which applies across all departments and to all offices of the charity. The level of the standard staff remuneration of the charity accords with the principle of Buddhist practice through public service.

Page 24

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

11. STAFF COSTS - continued

Volunteers

All aspects of the day to day functioning of Manjushri KMC, Conishead Priory, are run by members of the residential community together with volunteers from the extended community in the local area. The support of the community, as an expression of their service to the public, means that the charity can operate with relatively low staff numbers.

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
International Festivals
Tharpa Publications
Manjushri Kadampa Meditation Centre
Shop and World Peace Cafe
Kadampa Art Studio and Internet
Properties Income
Investment income
Total
EXPENDITURE ON
Charitable activities
Grants Payable
International Festivals
Tharpa Publications
Manjushri Kadampa Meditation Centre
Kadampa Art Studio and Internet
Properties Expenditure
International Kadampa Development
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
funds
funds
£
£
390,423
2,269,318
1,411,834
-
338,270
-
783,212
-
330,119
-
292,125
-
169,671
-
692
-
3,716,346
2,269,318
279,583
-
418,641
1,138
199,197
-
886,436
712
336,728
280
100,208
6,318
1,064,734
982
3,285,527
9,430
430,819
2,259,888
28,632,643
588,635
29,063,462
2,848,523		 Total
funds
£
2,659,741
1,411,834
338,270
783,212
330,119
292,125
169,671
692
5,985,664
279,583
419,779
199,197
887,148
337,008
106,526
1,065,716
3,294,957
2,690,707
29,221,278
31,911,985

Page 25

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

13. TANGIBLE FIXED ASSETS

COST
At 1 January 2020
Additions
Disposals
At 31 December 2020
DEPRECIATION
At 1 January 2020
Charge for year
Eliminated on disposal
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019		 Freehold
property
£
19,016,509
910,356
(1,619,623)
18,307,242
337,659
63,751
(16,197)
385,213
17,922,029
18,678,850		 Long
leasehold
£
2,628,859
-
-
2,628,859
45,608
22,804
-
68,412
2,560,447
2,583,251		 Fixtures
and
fittings
£
292,736
-
-
292,736
218,931
11,071
-
230,002
62,734
73,805		 Motor
vehicles
£
17,251
-
-
17,251
17,251
-
-
17,251
-
-		 Totals
£
21,955,355
910,356
(1,619,623)
21,246,088
619,449
97,626
(16,197)
700,878
20,545,210
21,335,906

Included within freehold property additions is an inherited proportion of land and buildings for which a lease is currently in place, as detailed within the leases note. As the purpose of acquiring this property was to further the aims and objectives of the charity it has been accounted for in line with FRS 102 Section 16 - Property, plant and equipment and not FRS 102 Section 17 - Investment Property.

14. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 January 2020 18,399
Disposals (16,290)
At 31 December 2020 2,109
PROVISIONS
At 1 January 2020 16,290
Eliminated on disposal (16,290)
At 31 December 2020 -
NET BOOK VALUE
At 31 December 2020 2,109
At 31 December 2019 2,109

Page 26

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

14. FIXED ASSET INVESTMENTS - continued

The net book value of investments comprises:
2020 2019
£ £
Investments in the UK - -
Investments outside the UK 2,109 2,109

The company's investments at the balance sheet date in the share capital of companies include the following:

New Kadampa Tradition KMC Spain S.L. Registered office: Registered in Spain Nature of business: Rental services

%
Class of share:
holding
Ordinary
100
Aggregate capital and reserves
Loss for the year		 2020
£
(167,844)
(12,623)		 2019
£
(147,033)
(27,049)
The summary results for the year were as follows:
2020 2019
£ £
Gross income - -
Expenditure (12,623) (27,049)
Deficit (12,623) (27,049)

Hotel Kadampa Holland B.V.

Registered office: Registered in the Netherlands Nature of business: Hotel Services

%
Class of share: holding
Ordinary 100
2020 2019
£ £
Aggregate capital and reserves - 873
Profit for the year - 147,444

Page 27

continued...

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

14. FIXED ASSET INVESTMENTS - continued

The summary results for the year were as follows:

The summary results for the year were as follows:
2020 2019
£ £
Gross income - 12,632
Expenditure - (17,332)
Loans written off - 152,144
Surplus - 147,444
On 23 April 2020, Hotel Kadampa Holland B.V. was dissolved.

15. STOCKS

Goods for resale
16.
DEBTORS
Amounts falling due within one year:
Trade debtors
Concessionary loans to Centres
VAT
Prepayments and accrued income
Amounts falling due after more than one year:
Concessionary loans to Centres
Aggregate amounts		 2020
£
349,854
2020
£
131,096
10,168,038
5,240
7,922
10,312,296
1,531,789
11,844,085		 2019
£
339,845
2019
£
127,615
9,160,157
855
39,606		 2019
£
339,845
9,328,233
1,521,983
10,850,216

Concessionary loans to centres are interest-free and stated after taking into consideration provisions against potentially unrecoverable debts of £514,335 (2019: £586,023). Loans repayable on demand are classed as current assets. Fixed term loans are repayable in full at a future date as stated within the loan agreements and are classed as current asset or long term assets as appropriate to the repayment date in each agreement.

Included within concessionary loans are loans for which the following securities have been pledged:

In line with the objectives and aims of the charity, the concessionary loans have been provided to other Centres in order to support those Centres to increase the Buddhist Faith throughout the world.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

16. DEBTORS - continued

The concessionary loans to Centres, before provision for potentially unrecoverable debts is comprised of:

2020 2019
£ £
Loans due within one year - 2020: 25 (2019: 25) 10,682,372 9,746,180
Loans due after more than one year - 2020: 4 (2019: 4) 1,531,789 1,521,983
12,214,161 11,268,163

17. CURRENT ASSET INVESTMENTS

CURRENT ASSET INVESTMENTS
2020 2019
£ £
Cash held on deposit 150,926 142,443

Cash held on deposit relates to funds required by the Spanish Government to be set aside until the completion of the Spanish Temple Project. These funds are required to be held on deposit until approval has been granted by the Spanish Government that these funds can be released.

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 20)
Other loans (see note 20)
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
227,382
1,117,921
67,795
11,645
43,589
1,468,332		 2019
£
208,045
1,117,921
85,856
12,503
67,131
1,491,456

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 20)
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Concessionary loans
Amounts falling between one and two years:
Bank loans 1-2 years		 2020
£
2,683,354
2020
£
227,382
1,117,921
1,345,303
236,372		 2019
£
2,921,274
2019
£
208,045
1,117,921
1,325,966
217,046

20. LOANS

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Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

20. LOANS - continued

LOANS - continued
Amounts falling due between two and five years:
Bank loans 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years by instalments		 2020
£
2,158,871
288,111		 2019
£
2,251,156
453,072

Concessionary loans are interest-free. Loans repayable on demand are classed as current liabilities. Fixed term loans are repayable in full at a future date as stated within the loan agreements and are classed as current liabilities or long term liabilities as appropriate to the repayment date in each agreement.

The concessionary loans from Centres is comprised of:

The concessionary loans from Centres is comprised of:
2020 2019
£ £
Other loans from Centres - 2020: 2 (2019: 2) 856,921 856,921
Loans from individuals - 2020: 4 (2019: 4) 261,000 261,000
1,117,921 1,117,921

21. SECURED DEBTS

The following secured debts are included within creditors:

2020 2019
£ £
Bank loans 2,910,736 3,129,319

Properties with a combined net book value of £10,777,028 have been pledged as security against secured debts.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

22. MOVEMENT IN FUNDS

Net
movement
At 1/1/20
in funds
£
£
Unrestricted funds
General funds
22,763,462
4,091,799
Designated Funds
6,300,000
-
29,063,462
4,091,799
Restricted funds
Spanish Temple Fund
464,286
103,912
KMC Cuernavaca, Mexico
124,785
(124,785)
Leeds Property
2,250,000
-
Other Funds
9,452
1,185
2,848,523
(19,688)
TOTAL FUNDS
31,911,985
4,072,111
Net movement in funds, included in the above are as follows:		 Transfers
between
funds
£
(360,000)
360,000
-
-
-
-
-
-
-		 At
31/12/20
£
26,495,261
6,660,000
33,155,261
568,198
-
2,250,000
10,637
2,828,835
35,984,096
Unrestricted funds
General funds
Restricted funds
Spanish Temple Fund
KMC Cuernavaca, Mexico
Other Funds
TOTAL FUNDS		 Incoming
resources
£
4,058,253
103,912
272,790
6,689
383,391
4,441,644		 Resources
expended
£
33,546
-
(397,575)
(5,504)
(403,079)
(369,533)		 Movement
in funds
£
4,091,799
103,912
(124,785)
1,185
(19,688)
4,072,111

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General funds
Designated Funds
Restricted funds
Spanish Temple Fund
KMC Cuernavaca, Mexico
Leeds Property
Other Funds
TOTAL FUNDS		 At 1/1/19
£
22,662,643
5,970,000
28,632,643
455,299
124,785
-
8,551
588,635
29,221,278		 Net
movement
in funds
£
430,819
-
430,819
8,987
-
2,250,000
901
2,259,888
2,690,707		 Transfers
between
funds
£
(330,000)
330,000
-
-
-
-
-
-
-		 At
31/12/19
£
22,763,462
6,300,000
29,063,462
464,286
124,785
2,250,000
9,452
2,848,523
31,911,985

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Spanish Temple Fund
Leeds Property
Other Funds
TOTAL FUNDS		 Incoming
resources
£
3,716,346
8,987
2,256,318
4,013
2,269,318
5,985,664		 Resources
expended
£
(3,285,527)
-
(6,318)
(3,112)
(9,430)
(3,294,957)		 Movement
in funds
£
430,819
8,987
2,250,000
901
2,259,888
2,690,707

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

22. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General funds
Designated Funds
Restricted funds
Spanish Temple Fund
KMC Cuernavaca, Mexico
Leeds Property
Other Funds
TOTAL FUNDS		 At 1/1/19
£
22,662,643
5,970,000
28,632,643
455,299
124,785
-
8,551
588,635
29,221,278		 Net
movement
in funds
£
4,522,618
-
4,522,618
112,899
(124,785)
2,250,000
2,086
2,240,200
6,762,818		 Transfers
between
funds
£
(690,000)
690,000
-
-
-
-
-
-
-		 At
31/12/20
£
26,495,261
6,660,000
33,155,261
568,198
-
2,250,000
10,637
2,828,835
35,984,096

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Spanish Temple Fund
KMC Cuernavaca, Mexico
Leeds Property
Other Funds
TOTAL FUNDS		 Incoming
resources
£
7,774,599
112,899
272,790
2,256,318
10,702
2,652,709
10,427,308		 Resources
expended
£
(3,251,981)
-
(397,575)
(6,318)
(8,616)
(412,509)
(3,664,490)		 Movement
in funds
£
4,522,618
112,899
(124,785)
2,250,000
2,086
2,240,200
6,762,818

Restricted Income Funds

Spanish Temple Fund

Donations in Spain have been given to provide funds to construct a Kadampa Temple and to extend accommodation in preparation for the Temple in Spain.

KMC Cuernavaca, Mexico Fund

The KMC Cuernavaca, Mexico Fund is held by NKT-IKBU until KMC Cuernavaca is legally registered and ready to receive donations.

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Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

22. MOVEMENT IN FUNDS - continued

Leeds Property Fund

The Leeds Property Fund is to provide funds to renovate the property in Leeds City Centre acquired in 2019 which, once completed, will be used as a Kadampa Meditation Centre at which point it will form part of the charity's unrestricted charitable activities and will be transferred to unrestricted funds.

Other Funds

Other Funds are to account for monies received in respect of small projects.

Unrestricted Income Funds

Designated Fund

To ensure the charity's ability to further its objects both in the UK and internationally, the trustees have designated funds for the development and support of International Temples Project activities worldwide. The trustees further consider reserves equal to one year's running costs and three years of building repair and maintenance costs a suitable level to protect the charity in case of adverse financial events. This is reviewed annually by the trustees.

General Fund

The general unrestricted fund represents free funds of the charity which can be applied at the discretion of the trustees.

23. RELATED PARTY DISCLOSURES

New Kadampa Tradition KMC Spain S.L.

Subsidiary

New Kadampa Tradition KMC Spain S.L. operate from premises in Spain owned by NKT-IKBU. Rent of £36,181 (2019: £40,420) has been charged on this property.

At 31 December 2020 £1,107,453 (2019: £1,127,516) was owed by New Kadampa Tradition KMC Spain S.L. after taking into consideration provisions against potentially unrecoverable debts of £167,844 (2019: £147,033).

Hotel Kadampa Holland B.V.

Subsidiary

Hotel Kadampa Holland B.V. operated from premises in Holland owned by NKT-IKBU on a rent-free basis until it was dissolved on 23 April 2020..

During the year, loans totalling £Nil (2019: £170,361) were written off.

KMC France and Bodhichitta IRC

Members

KMC France and Bodhichitta IRC operate from premises in France owned by NKT-IKBU. Rent of £62,700 (2019: £56,973) has been charged on this property.

KMC Spain

Member

KMC Spain operates from premises in Spain owned by NKT-IKBU on a rent-free basis.

Tharpaland IRC

Member

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Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

23. RELATED PARTY DISCLOSURES - continued

Tharpaland IRC operates from premises in Germany owned by NKT-IKBU on a rent-free basis.

KMC Singapore

Member

KMC Singapore operate from premises in Singapore owned by NKT-IKBU on a rent-free basis.

KMC London

Member

KMC London operate from premises in London owned by NKT-IKBU on a rent-free basis.

KMC Paris

Member

KMC Paris operate from premises in Paris owned by NKT-IKBU on a rent-free basis.

KMC Edinburgh

Member

KMC Edinburgh operate from premises in Edinburgh owned by NKT-IKBU on a rent-free basis.

Key management personnel compensation

The total key management personnel compensation for the year was £22,908 (2019: £22,708).

24. POST BALANCE SHEET EVENTS

Non-adjusting events

Since the date of the Statement of Financial Position, the charity has purchased the properties below to expand its capacity and further its purposes.

25. ULTIMATE CONTROLLING PARTY

The charity is controlled by its members.

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NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2020

26. FINANCIAL INSTRUMENTS

The charity has the following financial instruments:

The charity has the following financial instruments:
2020 2019
£ £
Financial assets that are debt instruments measured at
amortised cost
Trade debtors 131,096 127,615
Concessionary loans to centres (after provision for potential
unrecoverable debts)		 11,699,827 10,941,984
Cash held on deposit 150,926 142,443
11,981,849 11,212,042
Financial liabilities measured at amortised cost
Bank loans (2,910,736) (3,129,319)
Other loans - Concessionary loans (1,117,921) (1,117,921)
Trade creditors (67,795) (85,856)
(4,096,452) (4,333,096)

27. OPERATING LEASES - LESSOR

Operating leases primarily relate to land leases. Rents receivable of £105,505 (2019: £78,633) have been recognised within properties income in the period. At the balance sheet date there was one lease in place with a remaining contractual term of 4 years ending 5th January 2023.

The future minimum lease payments receivable under non-cancellable operating leases are as follows:

2020 2019
£ £
Within one year 105,505 103,566
Between one and five years 105,505 207,132
211,010 310,698

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