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2020-12-31-accounts

Charity Registration No. 1045458

BRENT SIKH CENTRE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Richard Anthony Chartered Accountants and Registered Auditors

BRENT SIKH CENTRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Avtar Singh Hoonjan
Mr Narinder Singh Mudhar
Mrs Narinder Nathan
Mrs Surinder Kaur Sahota
Dr Mohinder Singh Sodhi
Mrs Satbir Kaur Sokhi
Mr Balkar Khurana
Mr Ashishpal Singh
Mrs Sunder Chita
Mrs Kulwant Kaur
Mr Gurmit Singh Ahluwalia
Mr Paramjit Singh Sandhu
Charity number 1045458
Auditor Richard Anthony
2nd Floor Gadd House
Arcadia Avenue
London
N3 2JU

BRENT SIKH CENTRE

CONTENTS

Page
Trustees' report 1 - 2
Statement of trustees' responsibilities 3
Independent auditor's report 4 - 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 14

BRENT SIKH CENTRE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and accounts for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note s to the financial statements and comply with th e Charities (Accounts and Reports) Regulations 2008 , the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The Charity's principal activity throughout the year was in arranging services in accordance with tenets of Sikhism and no change is envisaged in the immediate future.

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

Achievements and performance

During the year the charity continued its philanthropic activities in support of religious, educational and social services.

We are proud to report that services to the community are running smoothly and sangat from far and wide avail the services offered.

This year major redecoration of the diwan halls and lobbies were completed and the washrooms were also completely renovated.

We are extremely proud that the project to help the Sikligar Sikhs of Atoot Khas, M.P in India has been completed. The community now have a beautiful purpose built place for their educational, spiritual and social needs.

The Trustees would like to thank all volunteers who work so hard and dedicatedly in their continued support and selfless service to the centre.

The services and programmes of the Centre in 2020 have been severely affected by the COVID pandemic.

As a result of the Government’s restrictions and guidelines the centre was closed to Sangat in order to protect them and the staff. When guidelines permitted limited opening times - one hour in morning and evening were put into place to enable Sangat to do darshan.

Protocols were put into place with social distancing notices, barriers and one way systems, providing hand sanitizer, taking temperature, requirement to wear masks and restricting access in areas of the building.

A few weddings still took place but with the permitted number of attendees. Funerals were also held within the restricted guidelines and support during these times was especially hard.

Financial review

The financial results of the Charity's activities for the year ended 31 December 2020 are fully reflected in the attached Financial Statements together with Notes thereon.

It is the policy of the charity to maintain unrestricted funds, which are the free reserve of the charity, at a level which the Trustees think appropriate after considering the future commitments of the Charity and the likely administrative costs of the charity for the next year.

Under the term of Trust deed, the Charity has the power to make any investment, which the trustees see fit.

BRENT SIKH CENTRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees regularly review the Charity's position and needs in respect of the investment policy. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The trustees plan to continue to provide services and make improvements to the Centre and services and to ensure that an appropriate level of reserves is maintained.

Structure, governance and management

The charity was established by a charitable trust deed on 29th March 1995, as amended by deed on the 11th of March 2001.

The day to day affairs of the Charity is administered by the council of Committee members. None of the Trustees have any beneficial interest in the Charity.

The trustees who served during the year and up to the date of signature of the financial statements were: Mr Avtar Singh Hoonjan

Mr Narinder Singh Mudhar Mrs Narinder Nathan Mrs Surinder Kaur Sahota Dr Mohinder Singh Sodhi Mrs Satbir Kaur Sokhi Mr Balkar Khurana Mr Ashishpal Singh Mrs Sunder Chita Mrs Kulwant Kaur Mr Gurmit Singh Ahluwalia Mr Paramjit Singh Sandhu

The Trustees have applied suitable recruitment and training procedures.

The trustees' r eport was approved by the Board of Trustees.

Mr Avtar Singh Hoonjan

Trustee Dated: 31 March 2022

BRENT SIKH CENTRE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BRENT SIKH CENTRE

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BRENT SIKH CENTRE

Opinion

We have audited the financial statements of Brent Sikh Centre (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

BRENT SIKH CENTRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRENT SIKH CENTRE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

BRENT SIKH CENTRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRENT SIKH CENTRE

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Barnett BA FCA (Senior Statutory Auditor) for and on behalf of Richard Anthony

.........................

Chartered Accountants Statutory Auditor

2nd Floor Gadd House Arcadia Avenue London N3 2JU

Richard Anthony is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BRENT SIKH CENTRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2020 2019
Notes
£		 £
Income from:
Donations and legacies 3 94,811 247,005
Expenditure on:
Charitable activities 4 123,709 172,738
Net (expenditure)/income for the year/
Net movement in funds (28,898) 74,267
Fund balances at 1 January 2020 4,200,108 4,125,841
Fund balances at 31 December 2020 4,171,210 4,200,108

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

BRENT SIKH CENTRE

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
11
Net assets
Income funds
Unrestricted funds
General unrestricted funds
Revaluation reserve		 2020
£
£
4,738,227
4,073
32,640
36,713
(28,198)
8,515
4,746,742
(575,532)
4,171,210
2,724,480
1,446,730
4,171,210
4,171,210		 2019
£
£
4,740,012
4,564
75,790
80,354
(31,887)
48,467
4,788,479
(588,371)
4,200,108
2,753,378
1,446,730
4,200,108
4,200,108

The financial statements were approved by the Trustees on 31 March 2022

Mr Avtar Singh Hoonjan Trustee

BRENT SIKH CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Brent Sikh Centre is a UK Unincorporated Charity. The registered address is 241 Stag Lane, Kingsbury, London NW9 0EF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). 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 have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

BRENT SIKH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

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

The value of volunteer help received is not included in the accounts.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to grant which remain in the control of the charity.

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 property Not depreciated Leasehold property Not depreciated Plant and machinery 15% reducing balance Fixtures, fittings & equipment 15% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

BRENT SIKH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

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

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

1.11 Retirement benefits

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

BRENT SIKH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Donations and gifts
GiftAid
Rental and other income
Governance costs
Staff costs
Depreciation and impairment
Rates
Insurance
Light and heat
Repairs and maintenance
Telephone and fax
Cleaning
Sundry expenses
Donations
Bank charges
Bank Interest Paid
Audit fees		 2020
£
51,525
18,883
24,403
94,811
2020
£
52,473
1,786
5,908
7,294
19,176
11,455
635
843
2,552
-
182
16,605
4,800
123,709
123,709		 2019
£
220,402
3,921
22,682
247,005
2019
£
76,818
2,101
9,957
5,602
21,284
22,168
1,421
1,009
1,959
7,500
30
20,369
2,520
172,738
172,738

4 Governance costs

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

BRENT SIKH CENTRE

5 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

6 Employees

Number of employees

The average monthly number of employees during the year was:

Administration
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
5
2020
£
49,213
871
2,389
52,473		 2019
Number
5
2019
£
70,178
4,141
2,499
76,818

Honorarium cost amounting to £10,630 (2019: £26,950) represents the cost of casual workers, who assist various functions when the requirement arises.

There were no employees whose annual remuneration was £60,000 or more.

7 Tangible fixed assets

Cost
At 1 January 2020
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Freehold
property
£
1,167,738
1,167,738
-
-
-
1,167,738
1,167,737		 Leasehold
property
£
3,560,364
3,560,364
-
-
-
3,560,364
3,560,364		 Plant and
machinery
£
3,668
3,668
3,099
-
3,099
569
569		 Fixtures,
fittings &
equipment
£
22,006
22,006
10,749
1,701
12,450
9,556
11,342		 Total
£
4,753,776
4,753,776
13,848
1,701
15,549
4,738,227
4,740,012

BRENT SIKH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8
Debtors
Amounts falling due within one year:
Prepayments and accrued income
9
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2020
£
4,073
2020
£
593,585
18,053
575,532		 2019
£
4,564
2019
£
611,638
23,267
588,371

The long-term loans are secured by fixed charges over the assets of the Charity.

The loan and interest is repayable by 240 instalments of £3,634 from September 2018, however, additional repayments can be made at any time. Interest is charged at 2.5% per annum over base rate.

10
Creditors: amounts falling due within one year
Notes
Bank loans
9
Other taxation and social security
Other creditors
Accruals and deferred income
11
Creditors: amounts falling due after more than one year
Notes
Bank loans
9
12
Related party transactions		 2020
£
18,053
780
2,165
7,200
28,198
2020
£
575,532		 2019
£
23,267
605
3,095
4,920
31,887
2019
£
588,371

There were no disclosable related party transactions during the year (2019 - none) .