REGISTERED COMPANY NUMBER.. 02758093 (England and Wales) REGISTERED CHARITY NUMBER: 1015054 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION RFM Audit Services LLP, Statutory Auditor Unit 1, Guest House Farrn Runshaw Lane Euxton Chorley Lancashire PR7 6HD
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023 Page Report of the Trustees Roport of the Ind•p•ndont Audltors 9 to 12 Statement of Flnanclal Actlvltles 13 Statement of Financial Position 14 Statement of Cash Flows 15 Notes to the Statement of Cash Flows 16 Noles to the Flnanclal Statements 17 to 33
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 Thè trustees who arè also directors of the charity for the purposes of the Companiès Acl 2006, prèsént their rèport with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims In the wording cf 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'J 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 th& Buddhist meditators and scholars Atisha and Je Tsongkhapa, introduced into th8 W8St by the Buddhist teacher Venerable Geshe Kelsang Gyatso; and that follow the three New Kadampa Tradition Study Programmes., and thal are guidod by tho codc of moral disciplinc callcd Ihc Intcrnal Rulcs of thc NKT-IKBU. Slgnlflcant actlvltl8S In order to promote ils objects, the charity malntalns an International Temples Project I'ITP,). whose aim is In general to introduce the Buddhist Faith of the New Kadampa Tradition publicly and in particular to exemplify Buddhist practic8 through service to the public. To further the objects of the ITP, the charity continually emphasises the development throughout the world of: lal local Kadampa Buddhisl Cenlres {'KBCs'l; (bl Kadampa M6dilation Cenlres ('KMCs')', (c> international Kadampa Buddhist Temples, dedicated to world peace; (dl Inlernalional Retreal Cenlres I'IRCs'l', (el publishing activities (under the name 'Tharpa Publication5')', If) Kadampa Companies. In furtheran of Ils aims, the charliy also operales the residenllal Buddhlst Centre 'Manjushri Kadampa Meditation Cenlre, I'manjushri KMC'I,. produces Buddhist art prints and publishes printed, audio and e-books of Buddhist teachings under the name 'Tharpa Publications holds annual Spring and Summ8r Festivals with Buddhist teachings and medilation retreats,. and maintains a 'Kadampa Art Studio, and a 'Kadampa Internet, office, all at its Conishead Priory premises in Ulverslon, Cumbria, UK. In support of the activities of the International Temples Project ('ITP'), the charity makes grants and interesl-free loans to NKT-IKBU Centres around the world. Requests for grants and loans are considered by the trustees on an individual basis, and Ihe financial forecasls for each project are closely examined lo 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 Secrelary of the GSD of the Charity, who then reports to the Weekly Meeting of the Educalion Council, and the charity's Finance Committee. Page 1
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 OBJECTIVES AND ACTIVITIES Public benefit Idgnlifiable 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. Th@ charity b81iev8s that there are three important public benefits to promoting the Buddhist Faith throughout the wodd.. to help people to develop their wi5dcm', to cultivate a good heart., and to maintain a peaceful mind. If as individuals we do not strive to d8velop our wisdom, we will always remain ignorant of the true nature of reality. Everyone wishes for happiness, bul our ignorance of reality leads us to engage in non-virtuous actions, which in turn are tho main causo of all our suffcring. Furthcr, if wo do not cultivatc a good hcart towards othors, thcn our sclfish 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 Smpossible, both personally and throughout society, Benefit to the ublic e Charity supports a world-wide membership of Buddhist Centres, all of which offer classes of instruction in Buddhisl philosophy and meditation, bringing personal and social benefit. These sam8 programm8s of study and meditation are dir8Ctly offered by thè 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, whilsl 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. The Charity has recently reviewed ils streaming guidelines and resumed online streaming for its monthly subscription members. 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 lo enjoy it. Free 15-minute meditation sessions are offered twice daily in the Temple, and together with the World Peace Café and Gift Shop, continue to be popular with local people, course attendees, and visitors lo the area alike. Manjushri KMC also regularly hosts visits from school and other comrnunity groups. 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-lraditional World Peace Temples, meditation and relreat Centres, World Peace Cafés, and Tharpa Publications throughout th8 world, all dedicated lo the promotion of the Buddhist faith through service lo the public. Grantmaking In general, grants and loans are madg only to NKT-IKBU Cgntres 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 re5idenlial community together with volunteers from the extended community both local and international. The support of the community, as an expression of their service lo the public, means that the charity can operate with relatively low staff numbers. Page 2
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 ACHIEVEMENT AND PERFORMANCE Char5table actlvltles Man ushri Kadam a Meditation Centre, Conishead Prior anjus continues to o er its an varied spiritual programme of meditation retreats and courses, study programmes and prayer services. Following our experience during the period of the Covid 19 pandemic restrictions, in 2023 the programme was still offered for both in-person and live-streamed attendance. In-person attendance far exceeded the demand for the on-line events, highlighting the importance of Conishead Priory as a plaTr of refuge and spirilual support. The year began with a New Year's Eve celebration taught by the General Spiritual Director of the NKT-IKBU, who also serves as the Centre's Resident Teacher. Over 130 people participated in-person. This event was immediately followed by a special January retreat, which was also led by the Cenlre's Resident Teacher, with a similar number of people joining all or part of the month's relreat programme. Other courses tsught by ihe Cenlre's Resident Teacher throughout the year attracted similar or higher numbers of participants, including a Public Talk at Ihe end of January. which was attended by over 300 people from the local area. Throughout the year, the 70 acres of Conishead Priory grounds, Kadampa World Peace Temple, gift shop and café, were open to the visiling public dally, Our programme of school and group visits which resumed in early 2023 proved lo be very popular, with many of the local schools returning for the first time since the pandemic. Intemational Festivals saw a consistent increas8 to in-pgrson attendance at our annual Intemational Festivals, whilst continuing to stream these events for those unable lo physically attend. The International Spring Festival wa5 held at the Kadampa World Peace Temple at Conishead Priory, UK, over five days at the end of May. 2,850 people from 48 countri8s participated, 1,200 attending in person and 1.650 online. The International Summer Festival was held al the Kadampa World Peace Temple at Conishead Priory, UK, over the first two weeks in August. 4,900 people from 57 countries participated, 3,240 attending in person and 1,660 online. The International Fall Festival was held at the recently inaugurated Kadampa World Peace Temple in Malaga, Spain. This six-day event was attended by 2,400 people representing 50 countries. 1,240 attending in person and 1,160 online. This event was co-hosted by the Charity and Kadampa Meditation Centre Spain, At the conclusion of this evenl, a special tour of a property newly-acquired by the Charity in Granada Spain was attended by 400 people. Thar 8 Public8tlons UK Tharpa Publications continued to reprint ils exisling catalogue of books with redesigned and updated covers. Several new, or updated products were also launched. Tharpa Publications UK was the principal organiser of the Tharpa Shop at the International Spring, Summer, and Fall Festivals, co-ordinating with the other International Tharpa Publications to provide an extensive collection of Venerable Gesha Kelsang Gyatso's books in many languages. Kadam a Art Studio The Kadampa Art tudio at Conishead Priory continues to produce Buddha statues and ornaments for traditional and urban NKT-IKBU Tetllple developments, and for Kadampa Meditation Cenlres IKMCS) and International Kadampa Retreat Centres (IKRCS) throughout thè world. The Studio was busy throughout tha year. mainly producing the statues and ornaments required for urban Temples for World Peace in the following cities= Seville and Valencia in Spain, Philadelphia in the USA, Mexico City, and in the UK for Nottingham, Madhayamaka Kadampa Meditation Centre and Tara International Kadampa Retreat Centre. Page 3
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 FINANCIAL REVIEW Flnanclal revlew Since 1 January 2011, the Charity has followed financial guidelines sel out in an intemal guidance manual, called 'A Money Handbook,. These guidelines recognise that all Charity income is designated as International Templas Project 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. As previously reported. a principal ITP project for 2023-24 was essenlial renovations and improvement5 to the Charity's headquarters at Conishead Priory. Cumbria, UK. the 'mother Centre, for the International Kadampa Buddhist Union. This work progressed steadily throughout 2023, and is still ongoing in 2024, with significant progress having been made in structural and infrastruclure improvements as well as cosmelic improvements to the property. Kadampa Meditation Centre Leeds, spiritual aclivities began in the Waterloo House property in late Spring 2022, and the Cenlrc was officially opcncd on July 9 2022 by Gcn-la Kolsang Dckyong, NKT-IKBU Gcncral Spiritual Dircctor. Throughout 2023, the ITP continued to extend financial support to KMC Leeds, aiding in its first year of operation in the new space. International Temples Project funds in the form of an interest-free loan were made available lo KMC Glasgow, UK, to assist wilh the purchase of a new city<entre property, enabling ihe Cenlre lo move from rented accommodalion and to establish a more permanent base in the city. As detailed abov8, th8 ITP continued to fund th8 production of statues and other artwork in the Kadampa Art Studio for a number of city-centre Kadampa Meditation Centres. Total grants raised for the Kadampa Art Studio in 2023 amounted to £52,377. A total of £12,471 was also given in grants and £400,417 in interest-free loans in support of other ITP activities throughout the world. Donations and legacies made to the Charity's International Temples Project Fund tolalled £368.939 in 2023. The truslees consider that providing interest-free loans rather than grants benefits the recipient NKT-IK8U Centres in a number of ways. It provides s8fe funding for projects, and allows time for Cenlre activities lo become established without undue financial pressure; but at the same time it also helps create an allilude 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. Prlnclpal funding sources The principal funding sources for the Charity in 2023 included the surplus from the NKT-IKBU International Spring and Summer Festivals, and the surpluses from Thaa Publications and Manjushri KMC. Page 4
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 FINANCIAL REVIEW Reserves policy The ITP accounts are reviewod fortnightly to ensure thal 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 lo maintain the basic OP8rations of the Charity. including required capital expenditur8 or servicing of any borrowing. and to provide som8 surety against adverse financial events such as unbudgeted expenditure or failure lo 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 intemationally, the trustees have designated funds for the development and support of Int@rnational Temp18s Project activities worldwide. Th8 Irusle8s further consid8r that a reserve equal to the sum of one year's running costs plus three years of building, repair and maintenance costs Is a suitablc Icvol to protcct the Charity in casc of advcrsc financial ovcnts. This figure is also rcviowcd annually by the truslees. FUTURE PLANS The Charity continues to offer material support for the development of NKT-IKBU Centres through its International Temples Project, including renovation projects on Charity-owneé properties both in the UK and overseas. The International Temples Project has plans to assist with the following renovation projects at the Charity's own property in Granada (Spain), al KMC Glasgow (UK} and at KMC Rio de Janeiro (Brazil). Long-term plans also include Ihe construction of traditional Kadampa Temples for World Peace al the Charity's principal properties in France and Germany. Planning permissions for both of these projects have already been granted. STRUCTURE, GOVERNANCE AND MANAGEMENT Govgrnlng documont The organisation is a company limited by guarantee, incorporated in 1992 and now operating under Memorandum and Artid8s of Association adopt8d in April 2007, when th8 organisation also adopt8d its present name (which is abbr8viated 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 tOW8rds the settlement of any outstanding debts,118bilities and costs. The company is registered as a charity, and is established, organised and operated exclusively ft)r religious purposes. There are four Iruslees, 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 Mo years, with re-election possible. The Members of the charity are: (al all incorporated NKT-IKBU Buddhist Cenlres throughout Ihe world- and (bl all the Resident Teachers of unincorporated NKT-IKBU Buddhist Centres throughout the world. Until his passing in December 2022 the membership of Ihe Charity also included the Founder (and sole Subscriber to the orlglnal 1992 Memorandum and Artlclesl of Ihe Charlty, namely Venerable Geshe Kelsang Gyatso. Page 5
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure The charity has a two-tier struclurÈ with policy-selting and strategic decision-making being the responsibility of the trustees, and the implementation of procedures and day-to-day operational managemenl being the responsibility of a team of executive officers. In June 2023, Roy Tyson retired from his position as Deputy Secretary after a dedicated lifetime of public serviTr. Following his retirement, Kelsang Lhachog (Kathryn Charles) was appointed as his successor. Decision making The truslees 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 practipal work of the charity before their appointment, having undertaken similar dulles within the charily or wilhin a relaled organisalion. Other present and former Irustees are also available to help a new trustee with his or her respon3ibililies and dutie5. Key management r•mun•ration Each remunerated officer or member of staff of the charity receives the same standard staff remuneration from the charity. This standard slaff remuneration applies across all departments within the charity and to all offices of Ihe charity including the office of General Spiritual Director. The level of the standard staff remuneration of the charily accords with the principle of Buddhist praclice through public service. 11 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. Wider network All Member Centres of the NKT-IKBU ar8 independent legal entities, bound together firstly by the common spiritual Ilneage called the "New Kadampa Tradltlon. of Buddhlsm, and secondly by membership of the charity. The General Spiritual Director I'GSD,) of the NKT-IKBU is also the Spiritual Director of each Member Centre. NKT- IKBU and 811 Member Centres are bound by and follow, guidelines known as A Moral Dlsclpline Guide: The Internal Rules of the New Kadampa Tradition - International Kadampa Buddhist Union (the 'lnlernal Rules,), the purpose of which to help maintain and improve the spiritual development of all Dharma Cenlres of the NKT-IKBU, generation after generation. to help maintain a close and supportive relationship between all Dharma Centres of the NKT-IK8U to help facilitale the day-lo-day running and spirilual management of the NKT-IKBU In accordan with the Internal Rules, three of the executive officers of the charity., the General Secretary and Deputy SeGretary, and the Secretary of the General Spiritual Director support Member Centres in their spiritual and malerial development. Related parties In furtherance of the charity's objects of promoting the Buddhist faith through the development of Kadampa Buddhlsm 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 Centies often on a rent-free basis, for Similar reasons of assisting the Member Centre's development without undue external financial pressures. Donations to the charily's Inlernationèl Temples Project Fund are a150 received from Member Centres. As these are completely discretionary, donations reiVed from Member Centres are not disclosed separately in the accounts. Page 6
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management The trustees have a duty lo identify and review the risks to which the charity is axposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud 8nd error. The trustees of the charity meet regularly lo 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 Ulverslon Cumbria LA12 9QQ Trustees Healher C, Wrlght {aka Kelsang Dekyongl, appointed on 01 August 2009 Jennif8r J. Andrews (aka Kelsang Droljang}, appointed on 24 July 2012, resigned 28 November 2023 Henry F. Shefv8land laka Kelsang Jampa), appoint8d on 10 January 2016 Lisa Marie Devine {aka Kelsang PhachDgl, appointed on 5 August 2021 Mary Estelle Cansdale, appointed 29 November 2023 Executive Officers The daily central administrative tasks of the charity are carried out by the four main executive officers, as follows- General Secretary- Stephen Paul Cowing Deputy Secretary - Anthony Roy Tyson (retlred} 3 June 2023, Kathryn Charles (aka Kels8ng Lhachog}, appolnted 4 June 2023 Secretary of the General Spiritual Director - Lisa McGovem laka Kelsang Ringyal) Treasurer Linda Cay (aka Kelsang Maitri) (resigned) 21 January 2024, Lisa Klusendorf {8ka Kelsang Zangmo). appointed 22 January 2024 Company Secretary S P Cowing Auditors RFM Audit Services LLP, Slatutory Auditor Unit 1, Guest House Farm Runshaw Lane Euxton Chorley Lancashire PR7 6HD Bankers Barclays Bank PLC, 86-90 Dalton Road. B8rrow-in-Furness. Cumbria, LA14 1JF CCLA Investment Management Ltd, COIF Charity Funds, 80 Cheapside, London, EC2V 60Z Page 7
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) REPORT OF THE TRUSTEES for the Year Ended 31 December 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of New Kadampa Tradition - International Kadampa Buddhist Union for the purpjses of company law} are r8sponsibl8 for preparing th8 R8POrt of the Trustees and the financial slatem8nts in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial stalemenls for each financial year which give a true and fair view of th8 state of affairs of the charitable company and of the incoming r8sourc@s and application of r8sources. including th8 Income and expenditure, of the charilable company for Ihat period In preparing those financial slalements, the Iruslees are required lo select suitable accounting policies and then apply them consistently., obseNe th& methods and principles in the Charity SORP., make judgements and estimates that are reasonable and prudent., prepare the financial statements on the going concem basis unless il is inappropriate lo presume that Ihe charitable company will continue in businoss, Th8 trustees are responsible for k88ping prop8r 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 preventson and detection of fraud and olher irregulanties. In so far as Ihe trustees are aware: Ihere is no relevant audit information of which the charitable company's auditors are unaware,. and Ihe trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, RFM Audit SeNices LLP, Statutory Auditor, will be proposed for re-appolntment 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 15 July 2024 and signed on its behalf by: Ms H C Wright- Trustee Page 8
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 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statemènt of Cash Flows and notes to th8 financial statèments, 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 stalemenls.. give a tru8 and fair vi8w of the state of th8 charitable company's affairs as at 31 D8C8mb8r 2023 and of its incoming resources and applicalion of resources, including ils income and expenditure, for the year Ihen ended- have been properly prepared in accordance with Uniled Kingdom Generally ACpted Accounting Practice, and have been prepared in accordance with the requiremenls of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Int8rnational 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 stalemenls section of our reporl. We are independent of the charitable company in accordance with the ethical requiromonts that are rolovant to our audit of thc financial slatoments in tho UK, including tho FRC'S Ethical Standard, and we have fulfilled our other ethical responslbilities in accordance with these requirements. We belleve that the audlt evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Concluslons rolatlng to golng eoncorn In audiling the financial slalemenls, 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 w8 have p8rform8d, wè have not identifi8d any material uncertainties relating to 8V8nts or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial stalemenls are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report, Other Inforrnatlon The trustees are responsible for the other information. The other information comprises the information included in the Annual R8POrt, other than th8 financial stat8menls and our Report of th8 Indep@ndent Auditors Ih8r80n. Our opinion on Ihe financial statements does not cover the other information and. excepi to Ihe extent otherwise explicitly staled in our report, we do not express any forrn of assurance conGlusion thereon. In connection with our audit of the financial stalements, our responsibilily is to read the other information and, In doing so, consider whether the other infomiation is materially inconsistent with the financial slatements or our knowledge oblained in th8 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.. the information given in the Report of the Trustees for Ihe financial year for which the financial statements are prepared is cor)sistent with Ihe finarlcial statemenls.. and the Report of the Trustees has been prepared in accordance with applicable legal requirement5. Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093) Matters on which we are requlred to report by exceptlon 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 matèrial misstat8mènts in thé Report of thè Trusle8S. 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.. adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visit8d by us: or the financial slalements are not In agreement with the accounting records and retums., or cerlain disclosures of Irustees, remuneration specified by law are nol made," or we have not received all the informalion and explanations we require for our audit., or Ihe trustees were not entilled lo take advantage of th8 small companies exemption from the requiremenl lo prepare a Strategic Report or in preparing the R&port of th8 Truste8S. Responslbllltles of Irustees As explained more fully in Ihe Slalement of Trustees, Responsibilities, the trustees (who are also the directors of the charitablo company for the purposos of company lawl aro rosponsiblo for tho proparalion of tho financial statomonts 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 statem8nts that are fre8 from material misstatemenl, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to conlinue as a going concern, disclosing, as applicable, matters related lo going concern and using ihe going concem basis of accounting unless the Irustees either intend to liquidate the charitable company or to cease operalions, or have no realistic alternative but to do so. Page 10
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093) Our responslbllltl8s for th8 audlt of the financlal slat8m8nts Our objectives are to obtain reasonable assurance about whether the financial statements as 8 whole are free from material misstatem8nl, wh8lh6r due to fraud or error, and to ISSU8 a Report of the Indepéndent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranlee 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 Dn the basis of these financial statements. The extent to which our procedures are capable of detecting IrregularS1ies, including fraud is detalled below: Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design proTrdure5 in line with our responsibilities. outlined above. to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, is detailed below. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable to the company through discussions with the trustees and other management, and from our commercial knowledge and experience of the religious activities sector; we focused on specific laws and regulations which we considered may have a direct malerial effect on the financial slatements or the operations of Ihe company, including the Companies Act 2006, Charities Acl 2011, laxalion legislation and data protection, employment, environmental and health and safely legislation,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstalement, including obtaining an understanding of how fraud might occur, by- making enquirias of managemant as to where they considarad thare was susceptibility to fraud, thair knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through man8gem8nt bias and ovèrrid& of controls, w8.. perfomied analytical procedures to identify any unusual or unexpected relationships; tested journal entries lo identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and investigated the rationale behind significant or unusual transactions. In response lo the rlsk of irregularities and non-compllance wlth laws and regulatlons, we deslgned procedures whlch included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance,. and 8nquiring of managem8nt as to actual and pot8ntial litigation and claims. reviewing Correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the charity's legal advisors. Page11
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION (REGISTERED NUMBER: 02758093) There are inherent limitations In our audit proGedures desGribed 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 directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than thDse that arise from error as they may involve deliberate concealment or collusion. A further desGription of our responsibilities for Ihe audit of Ihe financial statements is located on the Financial Reporting Council's websile at www.frc.org.uklauditorsresponsibililies. This description forms part of our Report of Ihe Independent Auditors. Use of our report This r8POrt is made so181y to the charitab18 company's m8mb8rs, as a body, in accordance Wlth 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 lo 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 th8 charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Sarah Flynn FCA (Senior Statutory Auditor) for and on behalf of RFM Audit Services LLP. Statutory Auditor Unit 1, Guest House Farm Runshaw Lane Euxton Chorley Lancashire PR7 6HD 15 July 2024 Page 12
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION STATENENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 December 2023 2023 Total funds 2022 Total funds Unrestrlcted Restrlcted funds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 315,974 52,965 368,939 503,841 Charitable activities Intemational Festivals Tharpa Publicalions Manjushri Kadampa Meditation Centre Shop and World pea Cafe Kadampa Art Studio and Internet Properties Income 3.044,728 303.877 746,285 422,351 72,832 96,946 3.044,728 303,877 746,285 422,351 72,832 96,948 2,345,201 257.743 766,734 384,185 38,398 95,591 Investment Income Total 3986 5,006.979 52,965 5,059,944 4,392.870 EXPENDITURE ON Charitable activities Grants Payable Intemalional Festivals Tharpa Publications Manjushri Kadampa Medliation Centre Kadampa Art Studio and Internet Properties Expenditur8 Intemalional Kadampa Development Total 64,808 965,254 216,934 1,413,991 277,723 156,215 648,895 3,743,820 64,808 967,982 216,970 1.423.972 279,782 156,215 652,743 3,762.472 78,559 668,847 169,412 1,091,983 118,493 59,771 62,225 2,249,090 2,728 36 9,981 2,059 3,848 18,652 NET INCOME Transfers between funds Net movement In funds 1,263,159 34,313 19,261 15,052 1,2g7,472 2,143,780 22 1,282,420 1,297,472 2,143,780 RECONCILIATION OF FUNDS Total funds broughl forward 40,317,444 19,689 40,337,133 38,193,353 TOTAL FUNDS CARRIED FORWARD 41599 864 41634 605 40 337 133 The notes form part of these financial statements Page 13
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION {REGISTERED NUMBER: 02758093) STATEMENT OF FINANCIAL POSITION 31 December 2023 2023 Total funds 2022 Total funds Unrestrlcted funds Restrlcted funds Notes FIXED ASSETS Tangible assets Investments 13 31,801,461 14 2,109 31,803,570 31,801,461 2,109 31,803,570 29,089,633 2,109 29.091,742 CURRENT ASSETS Stocks Deblors Investments Cash al bank 15 16 17 454,677 13,548,462 144,787 1,567,051 15.714,977 454,677 13,548,462 144,787 1.601,793 15,749,719 409,242 13,930,946 147,996 2,050,232 16,538.416 34,742 34,742 CREDITORS Amounts falling due within one year 18 {5,455,625) {5,455,625) (3,841,045) NETCURRENT ASSETS 10 259,352 10 294 094 12 697,371 TOTAL ASSETS LESS CURRENT LIABILITIES 42,062.922 34,742 42,097,664 41,789,113 CREDITORS Amounts falling du8 after mor8 than on8 year 19 {463,059) (463,059) {1,451,980) NET ASSETS FUNDS Unrestricted funds Reslricled funds TOTAL FUNDS 41599 863 41634 605 40 337 133 22 41,599,863 34,742 41634 605 40,317,444 19,689 40 337 133 These financial statements have been prepared In accordance with the provislcns applicable to ch8rltable companles subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 15 July 2024 and were signed on its behalf by- H C Wright - Trustee The notes form part of these financial statements Page 14
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION STATEME OF CASH FLOWS for the Year Ended 31 December 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations Inlerest paid Net cash provided by operating activities 2,267,391 150,432} 2 116,959 2,321,919 101,9911 2.219,928 Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received Transf8r of funds held on deposit Net cash used In investing activities (3,062,597) 155,981 3,986 {4,056,1061 1,177 9.044 4,045.8851 2.899,421} Cash flows from flnanclng actlvltles Bank loan repayments in year New concessionary laans in year Concessionary loan repayments in year Net cash provided byllused inl financing activities (996,400) 1,330,423 (214,2351 182 4291 396,6641 334,023 Change in Cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equlvalents at tha and ol the reportlng perlod (448,4391 {2,222,6211 2,050,232 4,272,853 1,601,793 2,050,232 The notes form part of these financial statements Page 15
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE STATEMENT OF CASH FLOWS for the Year Ended 31 December 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net Income for the reportlng perlod (as per Ihe Statement of Flnanclal Actlvltles) Adjustments for: Depreciation charges Loss on disposal of fixed assets Interest received Interest paid Increase in stocks Decrease in debtors Increa5el{decrease) in creditcrs Net cash provlded by operatlons 1,297.472 2,143,780 174.240 20,548 {3,986) 150,432 (45,425) 382.484 291,636 2 267 391 105,828 11,1771 101,991 {13,8821 83,549 98,1701 2,321,919 ANALYSIS OF CHANGES IN NET DEBT At 111123 Cash flow At 31112123 Net cash Cash at bank 2.050,232 2,050,232 448 439) 448,439) 1,601,793 1,601,793 Llquld resources Deposits inGluded in cash Current asset investments 147,996 147 99 3,209) 144,787 144 787 Debt Debts falling du8 Wlthin 1 y8ar Debts falling due after 1 year (3,653 001) (1,322,944) (4,975,945) 1,451.9801 988,921 463,0591 5,104.981} 334,023) 5,439.0041 2 906,7531 785 671) 3 6g2 4241 Total The notes form part of these financial statements Page 16
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023 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 lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 {effective 1 January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statem8nts have been prepar@d under the historical cost convention, with the exception of investment5 which are included al rnarket value. There are no material uncertainties about the charity's ability to continue. PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS In accordance with R8gulation 19 of The Chariti8s {AccntS and Reporls) Regulalions 2008, individually and in aggregate, each of the subsidiary underiakings 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 charily and do not contain consolidaled 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 a150 have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include.. Depreclatlon and Impalrment of fixed assets Impairment provisions for concessionary loans made to centres INCOME All income Is recognSsed In the Statement of Financial Activities once the charlty h8s entitlement to the funds,11 is probable that th8 income will b8 received and the amount can be m8asured reliably, Income from government and other grants, whether 'capilal' 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 thal the income wlll 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, servlces and facllltles Donaled goods, professional services and facilities are recognised as income when the charity has control over the item, any conditions associ£ted with Ihe donated item have been mel, 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 Charilies SORP (FRS 102), general volunteer time is nol recognised. On receipt, donated goods, professional services and farilities 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 correspon(iing amount Is then recognised in expenditure in the period of receipt. Page17 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 ACCOUNTING POLICIES - contlnued INCOME Inlerest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity., this is nomally 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 amounl of the obligation can be measured reliably. Expendilure is accounted for on an accruals basis and has been classified under headings that ag9regate all cosl 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 lo condilion5 which have nol been met at the statemenl of financial position dale are noted as a commitment but not accrued as expenditure. ALLOCATION AND APPORTIONMENT OF COSTS Support costs that cannot be directly allribuled to a specific actlvity are apportlcned across all relevant activitles on the basis of time spent on each activity by NKT administrative employ8es. TANGIBLE FIXED ASSETS Tangible fixed assets are capilalised al cost. The costs of property repairs, rep18cement and maintenance are written off as they are incurred. The charity onlycapitalises items Gosting more than £10,000. Depreciation isprovided soas ID write off the cost of fixed assets to their estimated residual values over Iheir expected useful lives, as follows.. Freehold property Land is not depreciated Listed buildings - Slraight line over 350 years Non-listed buildings - Straight line over 80 years Other land and buildings - Straight line over 25-50 years Straight line over 80 years. or lease period if shorter 150/0 on reducing balance Straighl line over 4 years Long leasehold Fixturès and fittings Motor vehicles Depreciation 15 charged on a monthly basis frorn 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 assels and investments are subject to review for impairment when Ihere is an indication of a reduction in their carrying valu8. Anyimpairment is recognised in the year in which it occurs in the correspoThJing SOFA category. Current assel investrnents Page18 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 ACCOUNTING POLICIES - contlnued TANGIBLE FIXED ASSETS 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 al 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 exempl from corporation tsx on its charitable activities. FUND ACCOUNTING Unrestricted funds Gan be used In accordance wlth the charllable objectives at the discrelion of the truslees. Restricted funds can only be used for particular restricled 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 natur8 and purpose of each fund is included in the not8S to the financial statements. FOREIGN CURRENCIES Assels and liabilities in foreign currencies are tr8nslated into sterling at the rates of exchange ruling al the siatement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of 8x¢h3ng& 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 Gharitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged lo the Slatement of Financial Activities in the period to which they relate. FINANCIAL INSTRUMENTS Concessiona loans ari y meets t e definition of a Public Benefit Entity I"PBE'} and applies the measurernent provisions of FRS 102 paragraphs PBE34.89-PBE34.97 to all its cOnssIOnarY loans. Other financial instruments The charily has adopled Sections 11 and 12 of FRS 102 in respect of financial instruments that are not concessionary loans. Financial assets Basic inancial assets, including trade and other receivable5, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing tr8n58Ction, where the transaction is measured at thè present value of th8 future receipts discount8d at a market rate of interest. Such assels are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cosl are assessed for objective evidence of impairment. If an asset is impaired Ihe impairment loss is the difference between the carrying amounl and the presenl value of the 8Stimated cash flows discounted at the asset's original effectiv8 inter8St rate. Th8 impairment loss is recognised in income or expenditure. Page19 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 ACCOUNTING POLICIES - contlnued FINANCIAL INSTRUMENTS If there is decrease in the impairment loss arising from an event occurring after the impairment was recognise(J, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the arying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in income or expenditure. Flnancial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (bl substantially all the risks and rewards of the ownership of the asset are transferred to another party or Ic) 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 liabilitie8 asic inancial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised al transaction price, unless the arrangemenl 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 facililies are recognised as transaction costs of the loan to Ihe extent that il is probable that some or all of the facility will be drawn down. In this case, Ihe 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-paymenl for liquidity services and amortised over the period of the facility lo which it relates. Trade payables are obligations lo pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are dassified as current liabililies if payment is due within one year or less. If not, they are presenteé as non-current liabilities. Trade payables are recognised initially at transaction pric8 and subsequently m8asur8d at amortiS8d C05t Using th8 effective interest. Im airment At each reporling 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 assel is estimated and compared with its carrying amount. If estimated recoverable amount is lower, th8 carrying amount is reduced lo 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 impaimient loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in income or expenditure. Page 20 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 DONATIONS AND LEGACIES 2023 2022 Donations 368 939 INVESTMENT INCOME 2023 2022 Deposit account interest INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Actlvlty Internalional Festivals Tharpa Publicatv)ns Manjushri Kadampa Meditstion Cgnlre Shop and World Peace Cafe Festivals Tharpa Publications Manjushri Centre Activilies Shop and World Peace Cafe Kadampa Art Studio Activities Properlies Income 3.044,728 303,877 746,285 2,345,201 257,743 766,734 384,185 422,351 Kadampa Art Studio and Internet Properties Income 72,832 96,946 4 687,019 38,398 95,591 3,887,852 CHARITABLE ACTIVITIES COSTS Grant fundlng ol activities (see not& Support costs Iseè note 7) Dirnct Costs 6) Totals Grants Payable International Festivals Tharpa Publications Manjushri Kadampa Meditation Centre Kadampa Art Sludio and Intemet Properties Expenditure Inlernational Kadampa Development 64,808 64,808 967,982 216,970 1,423,972 279,782 156,215 652,743 957,134 213,715 1.399,617 10,848 3,255 24,355 4,797 90,914 253,064 387 233 274,985 65,301 399,679 3310431 64,808 3 762 472 Included within International Kadampa Development support costs are exchange losses of £192.890 and a provision for unrecoverable debts of £4,192. Page 21 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 GRANTS PAYABLE 2023 2022 Grants Payable The total grants paid to institutions during the year was as follows- 2023 2022 Gifts lo Centres Gifts to Centres include the following donations.. 2023 2022 Grants for Kadampa Art Studio . 2023.. 11 (2022.. 4) Gifts to Centres- 2023.. 5 {2022.' 8) 52,337 12,471 29,337 49,222 SUPPORT COSTS Governance costs Management Flnance Totals Internation81 Festivals Tharpa Publications Manjushri Kadampa Meditation Centre Kadampa Art Sludio and Intemet Properties Expenditure International Kadampa Development 8,659 2,433 16,316 3,828 3,442 2,189 587 4,127 969 87,472 200,889 296 233 10,848 3,255 24,355 4,797 90,914 253 064 387 233 235 3,912 Activity Management Finance Governance costs Basis of allDcation NKT administrative employees NKT administrative employees NKT administrative employees Within International Kadampa Development costs is a provision for unrecoverable debts of £4,192 Included wlthin managemenl costs and exchange losse5 of £192,890, induded within governance costs. Page 22 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 NET INCOMEI(EXPENDITUREI Net incomellexpenditure) is stal8d after chargingl(crediling): 2023 2022 Depreciation - owned assets Deficit on disposal of fixed assets Exchange Igains)Ilosses Provision for unrecoverable loans 174,240 20,548 192,890 105,827 (268,0501 AUDITORS, REMUNERATION 2023 2022 Fees payable lo the charity's auditors for the audit of the charity's financial statements 12.075 11.500 Audit-r8lated assurance services Total fees payable 10. TRUSTEES, REMUNERATION AND BENEFITS 2023 2022 Trustees. salarie8 As p8rmilt8d by section 5.4 of the Memorandum of Association, during thè year Heather C. Wright {ak8 K815ang Dekyong) received the slandard remuneration applicable to all officers and staff members of the charity amounting to £8,136 (2022= £7,736) for her role as a General Spiritual Director. No other Irustees, received any remuneration or benefits for the year ended 31 December 2023 nor for the year @nded 31 D8C8mb@r 2022, TRUSTEES, EXPENSES There were no trustees, expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. Page 23 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 11. STAFF COSTS 2023 2022 Wages and salaries Other pension costs 306,113 32,614 338,727 269,876 304,601 The average monthly number of employees during the year was as follows: 2023 10 2022 10 Manjushri Centre Tharpa Publications Kadampa Art Studio and Int8rnet Kadampa Development Support and Administration 15 14 39 36 No employee5 received ernoluments in excess of £60.000. All charily 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 remuneralion of the charity accords with the princlple of Buddhist practice through public service. Volunteers All aspects of the day to day functioning of Manjushri KMC, Conishead Priory, ara run by mambers of th8 residential community together with volunteers from the extended community in the local area. The support of the ommunity, as an expression of Iheir seNice to the publiG, means that the charily can operate with relatively low staff numbers. 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrèstrlct•d Reslrlctad funds funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 36S,385 137,458 503,841 Charitable activities International Festivals Tharpa Publication Manjushri Kadampa M8ditation Centre Shop and World Peace Cafe Kadampa Art Studio and Int8rnet Properties Income 2,345,201 257,743 766,734 384,185 38,398 95,591 2,345,201 257,743 766,734 384,185 38.398 95,591 Investment income Total 4 255414 137456 4 392,870 EXPENDITURE ON Charitable activities Grants Payable 78,559 78,559 Page 24 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - contlnued Unrestrlcted Restrlcted funds funds Total funds International Festivals Tharpa Publications Manjushri Kadampa Meditstion Centre Kadampa Art Studio and Internet Properties Expenditure International Kadampa Development Total 667,897 169,412 1,087,953 115,827 59,771 61,925 2,241,344 750 668,647 169,412 1,091,983 118,493 59,771 62,225 2,249.090 4,030 2,666 30Q 7,746 NET INCOME Transfèrs b8tw••n funds Not movement In funds 2,014,070 2,954 211 4,968,281 129,710 2954211 (2,824,501 } 2.143,780 2,143,780 RECONCILIATION OF FUNDS Tolal funds brought forward 35,349,163 2,844,190 38,193,353 TOTAL FUNDS CARRIED FORWARD 40317444 40 337 133 13. TANGIBLE FIXED ASSETS Fixtures and flttlngs Freehold property Long l•asohold Motor vehlGles Tota18 COST At 1 January 2023 Additions Disposals At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year Eliminated on disposal At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 26,941,591 2,725,866 177,989 29,489,468 2,628,859 237,083 380,077 96,898 34,234 2,750 29,984,761 3,062,597 177,989) 32,869,369 2 865,942 476.975 509,463 127,595 114,020 22,804 249.441 19,595 22,204 4,248 895,128 174,240 635,598 136,824 269,036 26,450 1,067,908 28 853 870 26,432,128 2729118 2 514 839 207 939 130b36 31801461 29 U119,Ei33 Page 25 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 14. FIXED ASSET INVESTMENTS Shares In group undertaklngs MARKETVALUE At 1 January 2023 and 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 Decembor 2022 2,109 Th8 net book value of inveslm8nts comprises.. 2023 2022 Investmenls in the UK Investments outside the UK The company's investments at the balance sheet dat8 in the share capital of companies include the following.. New Kadampa Tradltlon KMC Spaln S.L. Registered offlce.. Regislered In Spain Nature of business.. Rental services Class of Share: Ordinary holding 100 2023 2022 Aggregate capital and reseNes Profitl{lossl for the year 1170,785) 675 (177,7471 The summary results for Ihe year were as follows: 2023 2022 Gross income Expenditure Surplusl(Deficit) 675 2,725) Page 26 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 15. STOCKS 2023 2022 Goods for resale 454 677 409 242 16. DEBTORS 2023 2022 Amounts falling due within one year.. Trade debtors Concessionary loans lo Centres 25.402 12,416,401 28,266 3.425 12,473,494 138,505 12,867,650 39,253 VAT Prepayments and accrued income 13,049,064 Amounts falling due after more than one year.. Concesslonary loans to Centres 1074 968 881882 Aggregate amounts 13 548 462 13930946 Concessionary loans to Gentres are inlerest-free and stated after taking into consideration provisions againsl polenlially unrecoverable debts of £8Q1.696 {2022- £797,504). 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 assel or long term assets as appropriate to the repayment date in each agreement. Included within conce88ionary108ns are loans for which the following securities have been pledged,. £193,410 (2022.. £220,067 loan to KMC Cape Town, South Africa, secured against property owned by Tushita KBC £1,295,95712022: £1,295,957> loan to KMC Mexico, Mexico, secured against property owned by KMC Mexico £1,669,95712022.' £1,703,21 D) loan to KMC Stockholm, Sweden, secured against property owned by Kadampa Meditationscenter Stockholm IKMC Stockholm> £1,370,30112022: £1,370,301 } loan to Nordic KMC, Norway, secured against property owned by Nordisk Kadampa Meditasjonssenter (Nordic KMCI In line with the objectives and aim5 Of the charity. Ihe Concessionary loans have been provided to other Cenlres in order to support those Cenlres lo increase the Buddhist Faith throughout the world. The concesslonary loans to Centres, before provislon for potentially unrecoverable debts is comprlsed of: 2023 2022 Loans du8 within one y8ar- 2022.. 28 (2022: 33) Loans due after more than one year- 2022.. 512022.. 4) 13,218,097 1 ,074,968 14293065 13,665.153 881,882 14 547 035 Page 27 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 17. CURRENT ASSET INVESTMENTS 2023 2022 Cash held on deposit 144 787 147 996 Cash held on deposit relates to funds required by the Spanish Govemment to be set aside until the completion of th8 Spanish T8mple Project. Th8S8 funds ar8 r8quired to be held on d8POSIt until approval has b&8n granted by the Spanish Government Ihat these funds can be released. 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 8ank loans and overdrafts (see note 20) Other loans (see nole 20) Trad8 creditors Other creditors Accruals and deferred income 1,012.230 3,963,715 352.017 19,239 108,424 5 455 625 1,019,709 2,633,292 51,369 19,666 117,009 3 841 045 19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2023 2022 8ank loans (see note 20) 463 059 1451980 20. LOANS An analysis of the maturily of loans is given below: 2023 2022 Amounts falling due wilhSn one year on demand.. Bank loans Concessionary loans 1,012,230 3 963 715 4 975 945 1,019,709 2 633 292 3 653 001 Amount5 falling between one and years: Bank loans 1-2 years Amounts falling due between and five years.. Bank loans 2-5 years 170542 999 694 292 517 452 286 Concessionary loans are intere5t-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 dale in each agrèement. Concessionary loans is comprised of: 2023 2022 Page 28 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 20. LOANS - conllnued Other loans from Centres- 2022.. 5 (2022.. 5) Loans from individuals- 2022: 3 (2022: 3) 3,902,715 61,000 3 963 715 2,572.292 61,000 2,633,292 21. SECURED DEBTS The following secured debts are included within creditors: 2023 2022 Bank loans 1475 289 2 471 689 Secured bank loans is comprised of two term loans- Loan date Term 2 June 2012 15 years 14 June 2019 5 years Interest rate 3.18°/o over base 2.35°/o over bas8 629,875 845,414 Properties with a combined net book value of £9,021,085 have been pledged as security against secured debts. 22. MOVEMENT IN FUNDS Net movement In funds Transfers between funds At 31112123 At 111123 Unrestrieted funds General funds Designated Funds 33,405,366 6 912 078 40,317,444 1,263,158 2,246,339 2 227 078 19,261 36,914,863 4 685 000 41,599,863 1.263,158 Restricted funds Other Funds 19,689 34,314 (19,2611 34,742 TOTAL FUNDS 40 337 133 1297 472 41634 605 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General funds 5,006,979 (3,743,821) 1,263,158 Restricted funds Other Funds 52,965 {18,651) 34,314 TOTAL FUNDS 5 059,944 3 762 472) 1297 472 Page 29 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 22. MOVEMENT IN FUNDS - contlnued Comparatives for movement in funds Net movement in funds Transfers between funds At 31112122 At 111122 Unrestricted funds General funds Designated Funds 28,539,163 6,810,000 35,349,163 2,014,070 2.852.133 102,078 2,954.211 33,405,366 6,912,078 40,317,444 2,014,070 Restricted funds Spanish Ternple Fund Leeds Properly Other Funds 574,142 2,250,660 (574,1421 (2,250,660) 129,409 2,954,211) 129710 129,710 2 143,780 2,844,190 38,193,353 19,689 40337133 TOTAL FUNDS Comparative nel movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General funds 4,255,414 (2,241,344) 2,014,070 Restricted fund8 Spanish Temple Fund Other Funds 2,544 134,912 137456 12,544) 5,202) 129,710 129,710 2 143 780 TOTAL FUNDS Page 30 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 22. MOVEMENT IN FUNDS - contlnued A current year 12 months and prior year 12 months combined position is as follows: Net movement in funds Transfers betw&8n funds At 31112123 At 111122 Unrestricted funds General funds Designated Funds 28,539,163 6,810,000 35,349.163 3,277,228 5,098,472 2 125000 2,973,472 36,914,863 4 685,000 41,599.863 3,277,228 Restricted funds Spanish Ternple Fund Leeds Property Other Funds 574,142 2,250,660 (574,1421 {2,250,6601 148,670 2,973,472) 164,024 164,024 3 441,252 2,844,190 38,193,353 34,742 41634,605 TOTAL FUNDS A current year 12 month5 and prior year 12 month5 combined nel movement in funds, included in the above are as follows.. Incomlng resources Resources expended Movement In funds Unrestrlcted funds General funds 9,262,393 (5,985,165) 3,277,228 Restricted funds Spanish Temple Fund Other Funds 2,544 187,877 190421 12,544) 23,853) 26 397) 184,024 164 024 3 441.252 TOTAL FUNDS Restricted Income Funds ani5h Tem le Fund Donations in Spain have been given to provide funds to construct a Kadampa Temple and to extend accornmodation in preparation for th8 Temple in Spain. Leeds Pro ert Fund The Leeds Property Fund is to provide funds to renovate the properly 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 ther Funds are to acrK)unt for monies received in respect of small projects. Unrestricted Income Funds Desi nated Fund Page 31 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 22. MOVEMENT IN FUNDS - contlnued To ensur8 the charity's ability to further ils objects both in the UK and internationally, the trust@es hav8 designated funds for the development and support of International Temples Project aclivities 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. G8neral Fund The general unrestricted fund represents free fund5 of the charity which can be applied al the discretion of the trustees. 23. CAPITAL COMMITMENTS 2023 2022 Contracted bul not provided for In the flnancl81 statements 24. RELATED PARTY DISCLOSURES New Kadampa Tradition KMC Spain S.L. Subsidiary At 31 December 2023 £1,274,745 (2022.. £1.275,0271 was owed by New Kadampa Tradition KMC Spain S.L. before tsking into consideration a provision againsl potentially unrecoverable debts of £170,785 {2022: £175,261). Key management personnel compensation The total key management personnel compensation for the year was £31,631 {2022'. £27,518). Incorne from trustees and key management personnel Income from trustees and key m8nagement personnel for retained sponsorship costs for the year was £25,235 (2022: £22,772). Oth8r incom8 from trustees and key managem8nt P8rsonnel was £73012022.. £1,160). 25. ULTIMATE CONTROLLING PARTY The charity is controlled by its rnembers. FINANCIAL INSTRUMENTS The charity has the following financial instruments: 2023 2022 Financial assets that are debt instruments measured at amortised cost Trade debtors Concessionary loans to Centres {after provision for potential unrecoverable debts) Cash held on deposit 25,402 138,505 13,491,369 144,787 13 661558 13,749,532 147,996 14,036 033 Page 32 continued...
NEW KADAMPA TRADITION- INTERNATIONAL KADAMPA BUDDHIST UNION NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023 26. FINANCIAL INSTRUMENTS- contlnued Financial liabilities measured at amortised cost Bank loans Other loans Concessionary loans Trade creditors (1,475,289} (2,471,688) (3,963,715) (2,633,292) 279,729 51,3691 Page 33
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