Charity Registration No. 1028414
Company Registration No. 02841200 (England and Wales)
KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
C Snowball-Hill C Rhodes J Andrews (Appointed 2 December 2020)
Charity number 1028414 Company number 02841200 Registered office Gedling House Wood Lane Nottingham England NG4 4AD Independent examiner Rogers Spencer Newstead House Pelham Road Nottingham NG5 1AP
KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 - 6 |
| Notes to the financial statements | 7 - 13 |
KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The charity operates to promote the Buddhist Faith of the New Kadampa Tradition through the activities of study, practice, teaching and the observance of moral discipline based upon the continuous implementation of the three New Kadampa Tradition Study Programmes. These traditions are all within the pure tradition of Mahayana Buddhism of Atisha and Je Tsongkhapa as taught by Venerable Geshe Kelsang Gyatso.
Achievements and performance
During 2020 the Charity introduced an online programme of events to enable everyone to participate in the Charity's activities. We continued this in 2021, piloting in-person classes in late 2021. A full risk-assessment was undertaken and reviewed whenever the Government advice changed in order to ensure that the Charity's procedures complied fully with the Government's guidelines and that everything was done to keep visitors, volunteers and residents as safe as possible.
The Trustees are delighted that after a long search we have been able to find a new property that is suitable for welcoming all visitors and meeting the needs of the Charity for many generations to come. In early 2021 we bought and moved into our new home, Gedling House, and we sold our previous property. We applied for listed building consent and full planning permission to change the use of the building from a housing association office to Residential Buddhist Meditation Centre with ensuite rooms. This finally came through in October 2021.
Public Benefit
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 Buddhist Faith has clearly identifiable public benefits.
The Charity believes that there are three important public benefits to promoting the Buddhist Faith: to help people develop their wisdom, to cultivate a good heart and to maintain a peaceful mind.
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 of 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.
The Charity's programme of classes, services and meditation is open to everyone, whether Buddhist or not, regardless of nationality, age or gender. All classes are accessible to the public and both "drop-in" and more advanced courses of Buddhist instruction are offered. Some are offered free of charge, whilst modest fees are charged for others.
Financial review
The accounts show incoming resources of £13,182 (2019: £4,879 outgoing resources). As at the year end net assets were £497,721 (2019: £464,554).
The trustees are happy with the results. Class and shop income was substantially down due to lockdown and residential income reduced as we prepared to sell and move premises.
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Reserves policy
The Charity maintains an "International Temples Project" (ITP) account into which all income is paid. Once a month the Admin Director of the Charity prepares a budget of expenditure for the following month, noting any expected expenditure for future months. Once this budget is reviewed and approved funds are withdrawn from the ITP account into the "Daily Running Account" from which payments are made. In this way the Trustees ensure that sufficient funds are available to cover current running costs and that there are sufficient funds remaining in the ITP account for future months.
Governance
The business of the Charity is governed by the Directors, the Trustees of the Charity. There are three Trustees. Two of the Directors must be members (and normally local members), and are elected by the members of the Charity. The third director is an ex officio Director and must be the duly-appointed Administrative Director of a major NKT-IKBU Kadampa Meditation Centre in the United Kingdom.
COVID-19
During 2021 the Charity have maintained our online programme alongside our in-person classes to enable everyone to participate in the Charity's activities. A full risk-assessment is reviewed whenever the Government advice changes in order to ensure that the Charity's procedures complied fully with the Government's guidelines and that everything is done to keep visitors, volunteers and residents as safe as possible.
Structure, governance and management
The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
G Wilson (Resigned 2 December 2020) C Snowball-Hill C Rhodes J Andrews (Appointed 2 December 2020)
Trustee recruitment and training
Of the Three Trustees, two elected trustees are from within the centre or from other similar centres so that they have knowledge and understanding of the charity’s aims and workings. To be elected or appointed as a Trustee, the nominee must be a member of the charity and are elected by members at the Annual General Meeting or by the Trustees when a need arises according to the Articles of Association. The third Trustee is an ex-officio Trustee, by virtue of them being the Administrative Director of a centre specified in the Articles of Association. Each new Trustee is guided by current Trustees and other members of the organisation, in particular the Administrative Director and Resident Teacher, who have vast experience within the organisation.
The Trustees' r eport was approved by the Board of Trustees.
J Andrews
Trustee Dated: 29 October 2021
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
I report to the Trustees on my examination of the financial statements of Kadampa Meditation Centre Nottingham Limited (the charity) for the year ended 31 December 2020.
Responsibilities and basis of report
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Melvin Bailey FCCA DChA for and on behalf of Rogers Spencer Chartered Accountants
Newstead House Pelham Road Nottingham NG5 1AP
Dated: 29 October 2021
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2020 | 2019 | ||
| Notes | £ |
£ | |
| Income and endowments from: | |||
| Donations and legacies | 2 | 1,286 | 3,525 |
| Fees and courses | 3 | 13,823 | 20,509 |
| Other trading activities | 4 | 29,923 | 37,460 |
| Investments | 5 | 15 | 21 |
| Other income | 6 | 22,350 | 1,271 |
| Total income | 67,397 | 62,786 | |
| Expenditure on: | |||
| Raising funds | 7 | 186 | 1,185 |
| Charitable activities | 8 | 50,675 | 62,173 |
| Other | 12 | 3,354 | 4,307 |
| Total resources expended | 54,215 | 67,665 | |
| Net incoming/(outgoing) resources | 13,182 | (4,879) | |
| Other recognised gains and losses | |||
| Revaluation of tangible fixed assets | 19,985 | 114,875 | |
| Net movement in funds | 33,167 | 109,996 | |
| Fund balances at 1 January 2020 | 464,554 | 354,558 | |
| Fund balances at 31 December 2020 | 497,721 | 464,554 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 13 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets Charity funds Unrestricted funds General unrestricted funds Revaluation reserve 19 |
2020 £ £ 635,432 1,700 2,292 48,262 52,254 (54,852) (2,598) 632,834 (135,113) 497,721 362,861 134,860 497,721 497,721 |
2019 £ £ 617,081 1,700 22,095 15,335 39,130 (52,656) (13,526) 603,555 (139,001) 464,554 349,679 114,875 464,554 464,554 |
|---|---|---|
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2020
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 29 October 2021
J Andrews
Trustee
Company Registration No. 02841200
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Charity information
Kadampa Meditation Centre Nottingham Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Gedling House, Wood Lane, Nottingham, England, NG4 4AD.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
1.4 Income
All i ncom ing resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amounts can be measured reliably and it is probable that income will be received.
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.
1.5 Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of obligation can be measured reliably, It is categorised under the following headings:
Costs of raising funds comprise the costs associated with attracting voluntary income.
Expenditure on charitable activities includes those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 1% straight line on buildings Fixtures and fittings 25% reducing balance Motor vehicles 25% reducing balance
Freehold land is not depreciated.
1.7 Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.8 Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
1.9 Government Grants
Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Donations and gifts | 1,286 | 3,525 |
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
3 Fees and courses
| Unrestricted | Unrestricted |
|
|---|---|---|
| funds | funds |
|
| 2020 | 2019 |
|
| £ | £ |
|
| Fees and courses | 13,823 | 20,509 |
4 Other trading activities
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Shop income | 402 | 2,402 |
| Accommodation | 29,521 | 35,058 |
| 29,923 | 37,460 | |
| Investments | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Bank interest receivable | 15 | 21 |
5 Investments
6 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Insurance proceeds | 12,000 | 684 |
| Government Covid support | 10,000 | - |
| Other income | 317 | 420 |
| Proceeds from sale of equipment | 33 | 167 |
| 22,350 | 1,271 |
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
7 Raising funds
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Shop purchases | 186 | 1,185 | |
| 8 | Charitable activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds |
||
| 2020 | 2019 |
||
| £ | £ |
||
| Depreciation and impairment | 5,484 | 4,738 |
|
| Education expenses | 1,655 | 5,537 |
|
| Rent, rates and water | 6,497 | 6,445 |
|
| Insurance | 2,658 | 2,395 |
|
| Light and heat | 10,212 | 8,219 |
|
| Catering | 674 | 869 |
|
| Repairs and maintenance | 6,559 | 2,613 |
|
| Printing, postage and stationery | 55 | 192 |
|
| Advertising | 103 | 249 |
|
| Telephone | 1,346 | 1,530 |
|
| Computer and internet expenses | 1,549 | 1,761 |
|
| Travel expenses | 2,057 | 1,157 |
|
| Professional and accountancy fees | 1,029 | 12,830 |
|
| Bank and merchant charges | 521 | 932 |
|
| Sundry expenses | 300 | 504 |
|
| Sponsorship | 8,776 | 11,637 |
|
| 49,475 | 61,608 |
||
| Share of governance costs (see note 9) | 1,200 | 565 |
|
| 50,675 | 62,173 |
||
| 9 | Governance costs | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Professional and accountancy fees | 1,200 | 565 |
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
10 Trustees
The Trustees neither received nor waived any remuneration during the year (2019 - £Nil).
11 Employees
There were no employees during the year (2019 - Nil).
12 Other
| Unrestricted | Unrestricted | ||||
|---|---|---|---|---|---|
| funds | funds | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Bank loan interest | 3,354 | 4,307 | |||
| 13 | Tangible fixed assets | ||||
| Freehold land | Fixtures and | Motor vehicles |
Total | ||
| and buildings | fittings | ||||
| £ | £ | £ |
£ | ||
| Cost | |||||
| At 1 January 2020 | 619,000 | 1,694 | 1,500 |
622,194 | |
| Additions | 3,850 | - | - |
3,850 | |
| Revaluation | 19,985 | - | - |
19,985 | |
| At 31 December 2020 | 642,835 | 1,694 | 1,500 |
646,029 | |
| Depreciation and impairment | |||||
| At 1 January 2020 | 4,033 | 424 | 656 |
5,113 | |
| Depreciation charged in the year | 4,955 | 318 | 211 |
5,484 | |
| At 31 December 2020 | 8,988 | 742 | 867 |
10,597 | |
| Carrying amount | |||||
| At 31 December 2020 | 633,847 | 952 | 633 |
635,432 | |
| At 31 December 2019 | 614,967 | 1,270 | 844 |
617,081 | |
| 14 | Stocks | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Stocks | 1,700 | 1,700 |
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 15 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 16 Loans and overdrafts Bank loans Other loans Payable within one year Payable after one year |
2020 £ 197 - 2,095 2,292 2020 £ 146,613 10,000 156,613 21,500 135,113 |
2019 £ 15 20,000 2,080 22,095 2019 £ 150,501 10,000 160,501 21,500 139,001 |
|---|---|---|
The bank loan is secured by a legal charge on the freehold property known as 5 Pelham Road, Nottingham.
17 Creditors: amounts falling due within one year
| Notes Bank loans 16 Other borrowings Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2020 £ 11,500 10,000 - 3,123 25,801 4,428 54,852 |
2019 £ 11,500 10,000 26 2,637 26,945 1,548 52,656 |
|---|---|---|
Other creditors include a non refundable deposit of £25,000 for the sale of the property on Pelham Road. The sale took place in February 2021.
18 Creditors: amounts falling due after more than one year
| Creditors: amounts falling due after | more than one year | ||
|---|---|---|---|
| 2020 | 2019 | ||
| Notes | £ | £ | |
| Bank loans | 16 | 135,113 | 139,001 |
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KADAMPA MEDITATION CENTRE NOTTINGHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 20 | Capital commitments | 2020 | 2019 |
|---|---|---|---|
| £ | £ | ||
| At 31 December 2020 the charity had capital commitments as follows: | |||
| Contracted for but not provided in the financial statements: | |||
| Acquisition of property, plant and equipment | 829,305 | - |
21 Events after the reporting date
A new property, Gedling House, was purchased in January 2021 for £795,000 and the existing property on Pelham Road was sold for £630,000 in February 2021. Additional funding was provided by a loan from New Kadampa Tradition - International Kadampa Buddhist Union (NKT-IKBU).
22 Related party transactions
There were no disclosable related party transactions during the year (2019 - none).
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