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2023-03-31-accounts

AGON SHU UK

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Charity Registration Number 1050059

AGON SHU UK

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Contents Pages
Reports
Reference and administrative information 1
Executive Committee report 2 - 3
Independent examiner’s report 4
Accounts
Statement of financial activities 5
Balance sheet 6
Principal accounting policies 7
Notes to the accounts 8 - 9

AGON SHU UK

REFERENCE AND ADMINISTRATIVE INFORMATION

Registered Charity Name Agon Shu UK
Registered Charity Number Charity number 1050059
Executive Committee of Trustees N Wada
Y Fujii
Y Mitchell
Registered Office 45 Woodberry Way
London E4 7DY
Website www.agon.org
Independent Examiner P W Hill FCA
Hillyates, Chartered Accountants
Hill House, 27 Meadowford
Newport, Saffron Walden
Essex CB11 3QL
Bankers National Westminster Bank Plc
46 High Street
Brentwood
Essex CM14 4AL
Solicitors Bates Wells Braithwaite
10 Queen Street Place
London EC4R 1BE

1

AGON SHU UK

EXECUTIVE COMMITTEE REPORT

The Executive Committee of Trustees presents its report and accounts of the Trust for the year ended 31 March 2023.

The accounts have been prepared in accordance with the accounting policies set out on page 7 of the attached accounts and comply with the Trust’s governing document 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 from accounting periods commencing 1 January 2015 or later.

Objective of the charity

The Trust adopted its constitution on 7 October 1995 and is governed by a definitive Constitution and Rules dated 7 October 1995, amended 23 July 2001. The Trust is a registered charity, under number 1050059. The Trust’s principal address is now at 45 Woodberry Way, London and is the UK branch of a wider charity with its head office in Japan.

The objective of the charity is to advance religion in accordance with the original Buddhist doctrines and methods of Agon Buddhism. All decisions are made by the Trustees. In planning the activities for the year and for the future, Executive Committee Members confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Review of activities, achievements and performance

The UK lockdown began on March 23, 2020, and was lifted on July 19, 2021, but restrictions continued and were completely lifted in February 2023. On May 5, the World Health Organization (WHO) has declared that Covid-19 no longer a "global health emergency” but warned that the spread of new variants is still a concern.

In addition, the Ukraine war, which began in February 2022, continues to have a significant economic and social impact. Under such circumstances, since January 2021, we temporary moved the office to 45 Woodberry Way. The service to members and administer works is mostly operated at home. We communicated with members to offer counselling on telephone and online services.

The Russian invasion of Ukraine in February 2022 escalated into war and continues to have a significant impact on the global economy. Despite this unstable situation, we have continued to communicate with members through email, phone, online tools, and other means, distributing information and offering consultations using astrology. We have also been providing regular updates on the situation in European to the headquarters.

Since the live streaming of the "Prayer for Early Termination of Coronavirus Infections" on March 8, 2020, the headquarters has been live streaming all events, which we have also benefited from as a central service to our members. Live streaming includes regular monthly services, annual events such as the "Sacred Fire Festival" and special goma rituals. This year, in addition to the regular events, the following events were live streamed from Japan and members participated by receiving them at home:

For the first time in two years, our trustees attended the SAOS President's Reception on July 26 as a representative of the international department, we held the annual general meeting via Skype.

Throughout the year, the charity collected subscriptions from its members and received generous donations.

2

AGON SHU UK

EXECUTIVE COMMITTEE REPORT

Executive Committee of Trustees

Members of the Executive Committee are the Trustees and those members who served during the year were N Wada, Y Fujii and Y Mitchell.

Mr Paul Mitchell sadly passed away on 17 January 2023 after a long and dedicated role as Trustee and Secretary of Agon Shu UK until December 2021. The Board and all members of Agon Shu UK are deeply grateful for his enduring commitment to Agon Shu UK and sincerely pray for his soul.

The Executive Committee is elected by the members at the Annual General Meeting. Nominations for election to the Executive Committee may be made by members of Agon Shu UK in writing to the secretary at least 14 days before the Annual General Meeting. If nominations exceed the number of vacancies, then election is by ballot. The Executive Committee may appoint, at a special meeting, not more than two co-opted members so long as the number of co-opted members does not make up more than one third of the members of the committee.

Review of financial position

After the end of the Bondway contract in January 2021, we had planned to relocate to a lower rental property, but due to the uncertainty of the future, we have suspended those plans. We are currently renting a storage to keep expenses down and operating from rent free premises and maintain a balanced budget. Until the situation becomes clearer, we plan to strengthen our finances and focus on spreading our teachings through online tools and live streaming.

The trustees continue to minimize expenses and increase assets in line with our operational policy. While we do not have any active investment plans at present, we are monitoring financial information closely and will consider investments that the board deems appropriate for increasing our assets.

Plans for the future

Although the UK government has lifted COVID-19 restrictions, the threat of infection remains. We will continue to monitor global coronavirus trends and economic impacts caused by wars and other events to determine the best time to find suitable properties within our budget. We will continue to provide up-to-date information about our activities through online channels and carry out evangelistic activities using tools such as ZOOM and Skype. Additionally, we plan to continue promoting purification of personal and regional areas with the “house purification" ritual upon request.

Reserves Policy

Our charity's reserve fund is balanced, but we continue to rent a storage to reduce expenses through remote work to strengthen our reserve fund for the time being. The reserve fund is calculated based on one year's operating expenses and is currently fully deposited in a regular savings account.

Risk factors

Due to the impact of the Russia-Ukraine war and rapid inflation, costs such as storage rental fees, postage, office supplies, transportation expenses, and public utilities have increased. This has had a significant impact on members' household budgets, resulting in a decrease in annual donation income. Currently, our charity operates in a location provided free of charge and uses a rented storage to reduce expenses. We believe that this is a good way to secure funds for suitable properties in the future, considering economic downturns, wars, and epidemics.

Approved by the Executive Committee on 19 October 2023 and signed on its behalf by:

N Wada Trustee

3

AGON SHU UK INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 TO THE TRUSTEES OF AGON SHU UK

I report to the trustees on my examination of the accounts of Agon Shu UK (‘the trust’) for the year ended 31 March 2023 which comprise the statement of Financial Activities, the Balance Sheet and related notes on pages 5 to 9.

This report is made solely to the charity’s trustees, as a body, in accordance with section 43 of the Charities Act 1993. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I confirm that I am qualified to undertake the examination because I am a member of the ICAEW which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I confirm that I 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 accounts to be reached.

Hillyates, Chartered Accountants Hill House, 27 Meadowford Newport, Saffron Waldon Essex, CB11 3QL 31 October 2023

Peter William Hill, FCA Independent Examiner

4

AGON SHU UK

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
Income and endowments from:

Donations and legacies

1
Income from charitable activities

2
Other income


Total income and endowments


Expenditure on:

Expenditure on charitable activities

Storage costs relating to relocation

Postage, stationery and computer expenses

Depreciation

5
Independent examiners fees

Offerings

Miscellaneous expenses


Total expenditure


Net income and net movement in funds


Reconciliation of funds

Total unrestricted funds brought forward


Total unrestricted funds carried forward

 2023
£
6,492
40,050
135		 2022
£
7,741
33,899
291
46,677 41,931
7,181
1,213
84
1,320
142
464		 6,227
1,147
56
1,080
55
397
10,404 8,962
36,273
113,983		 32,969
81,014
150,256 113,983

All of the Trust’s activities were derived from continuing operations during the above two financial years.

All recognised gains are included in the above statement of financial activities.

5

AGON SHU UK

BALANCE SHEET AT 31 MARCH 2023


Notes
Fixed assets
Tangible assets
5
Current assets
Cash at bank and in hand
Creditors: amounts falling due
within one year
6
Net current assets
Total assets less current liabilities
Total funds
Unrestricted funds		 2023

£
£

280
152,404

(2,428)
149,976
150,256
150,256		 2023

£
£

280
152,404

(2,428)
149,976
150,256
150,256		 2022
£
£
364
116,239
(2,620)
113,619
113,983
113,983		 2022
£
£
364
116,239
(2,620)
113,619
113,983
113,983
150,256 113,983
150,256 113,983

The accounts were approved by the Executive Committee on 19 October 2023 and signed on its behalf by:

N Wada Trustee

6

AGON SHU UK

PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction values unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), issued on 16 July 2014, Update Bulletin 1 issued on 2 February 2016, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Agon Shu UK constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts and have made this assessment in respect to a period of one year from the date of approval of these accounts. The Centre is now operating in a limited capacity from rent free premises pending finding more suitable premises from which to rebuild its activities and its reserves. The Trustees have therefore concluded that for the next twelve months the charity will be able to meet its liabilities as they fall due and that the going concern basis of accounting remains appropriate.

Income recognition

All income is included in the Statement of Financial Activities when the trust is entitled to the income and the amount can be quantified with reasonable accuracy. No value is included in income or expenditure for the time donated by volunteer help provided.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the trust to make a payment 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.

Charitable expenditure, which includes irrecoverable VAT, comprises those costs incurred by the trust in the delivery of its activities and services for its beneficiaries. Due the activities undertaken by the trust and the costs it actually incurs, it is considered impracticable to differentiate between direct and any support costs.

Tangible fixed assets and depreciation

All tangible fixed assets are stated at cost or estimated market value at the date of receipt where the asset has been donated to the charity less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment - 20% straight line basis

Sundry equipment purchases – items costing less than £250 written off in the year of purchase

Accumulated funds

The funds held by the trust are unrestricted general funds which can be used in accordance with the charitable objectives at the discretion of the trustees.

Leasing commitments

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

Cash flow

The accounts do not include a cash flow statement because the trust is exempt from the requirement to prepare such a statement under the Charities SORP (FRS 102) Update Bulletin 1.

Taxation

The trust is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

7

AGON SHU UK

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1.
Donations and legacies



Donations and gifts

Enrolment fees

Dues


2.
Income from charitable activities
Memorial services
Prayer sticks and tools
Prayer services
Talismans and charms		 2023
£
2,336
72
4,084		 2022
£
2,811
182
4,748
6,492 7,741
2023
£
22,028
8,871
1,148
8,003		 2022
£
15,201
10,968
432
7,298
40,050 33,899

3. Executive committee of trustees

No remuneration was paid, nor any expenses reimbursed to Trustees during the year ( 2022 - £nil ).

4. Employees

There were no employees during the year. Agon Shu UK is administered by volunteers.

5. Tangible fixed assets

6.

Cost or valuation
At 1 April 2022 and at 31 March 2023
Depreciation and amortisation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Creditors: amounts falling due within one year



Income in advance

Other creditors and accruals

 2023
£
1,108
1,320		 Fixtures,
fittings &
equipment
£
2,413
2,049
84
2,133
280
384
2022
£
1,540
1,080
2,428 2,620

7. Commitments under operating leases

With the expiry of the lease at Bondway in January 2021, the Trust no longer has any material commitments under operating leases. The commitment to the current storage facilities is limited to one month’s rentals of £619.

8

AGON SHU UK

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

8. Related party transactions

Agon Shu UK is the UK branch of a wider charity with its head office in Japan. Agon Shu UK enjoys the general support of its head office and expenditure has been incurred from time to time for festivals, trips to other centres and to meet the cost of visiting Agon Shu priests from Kyoto. During the period June 2019 until January 2021, Agon Shu Japan made monthly contributions to ensure that the Trust was able to remain operational.

The aggregate value of donations and other monies received from Trustees where no conditions have been placed on these receipts amounted to £12,003.

9. Post balance sheet events and the future of Agon Shu UK

The Centre continues to operate from the rent free premises of one of the Trustees and much of its resources have been transferred to a storage facility pending a suitable time to recommence full operations.

9