**REGISTERED CHARITY NUMBER: 1051516** **REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR LONDON SIVAN KOVIL TRUST** LOi¥DON SIVAN KOVIL TRUST CONTENTS OF THE FINANCIAL ST ATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page Report of the Trustees Ito7 Independent Examiner's Rep)rt Statement of Financial Activities Balance Sheet io Cash Flow Statement Notes to the Cash Flow Statement 12 Notes to the Financial Statements 13to20 Detailed Statement of Financial Activities 21 to22 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ir¢land ffRS 102) effective from l January 2015, the truslees present the financial stat¢ments for the year endlng 31 December 2023. Objectives and Activities Objectives and Aims: The ¢harity'S goveming document outlines its PUTpose'. to hold the trust fund and its in¢ome for the advancement of the Saiva (Hindu) religion following the Saiva Sithantha traditions, principles, and practices prevalent in Sri Lanka and Tamil Nadu, for the b¢nefit of the community as deterniined by the trustees. Slgnlflcant Activlties The Saiva (Hindu) Temple in Lewisham, London, engages in significant adivities, including providing traditional Hindu mea15 for events (Catering Services), hosting events, ceremonies, and workshops (Culturdl Function Hall), and offering Tamil language and cultural education (Tamil School). Additional activities encompass religious services, cornmunity outreach, festivals, educational workshops, cultural perfonnan¢es. and youth programs. enriching the community's cultural, educational, and spiritual experien¢¢s. The Temple is open 365 days a year and also assxsts with funeral rituals. Publie Beneflt Public Benefit Statement: Public benefiL a core asp¢¢t of being a charity, is defined by two key principles: identifiable benefits and benefits to the publi¢. The Trustees fulfil the following responsibilities., Review the activities conducted for public benefit. Confirn) Compliance with this duty. The Temple, located in an inner-city borough identified for areas of deprtvatioffj opens its facilities to the entire community, ensuring a warm and comfortable environment. The aim is to make the Temple accessible to all devotees, especially those with limited fmancial means. setting a prayer donation ticket at a slarting point of £1. The Truslees have thoroughly reviewed the activities for public benefit. confming compliance with this duty while adhering to The Charity Commission's guidance on public benefit. Grantmaking The Trust made donations to Hindu and other organisations of £25,929 (2022 £19282) as follows". Sivan Illam University students, Chetipalayam, Batticaloa, Sri Lanka £16,525 (2022 £16,381) Olirum Valuce, Thunukai, Mullaitliurn £8,900 (2022 £Nil) Education Development Society, Mu¢hur, Tricomall¢e £Nil (2022 £2,400) Federation of Saiva Hindu Temples in UK £504 (2022 £501) Page I LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Volunteers The Trustees express their gratitude to the dedicated volunteers for their invaluable &ssistance in the following areas: Overseeing and managing crowds during special events, ensuring a smooth and organized experience. Effectively managing crowd control and prioritizing health and safety measures during events, Serving food to devotees on significant occasions, contributing to a communal and inclusive atmosphere. Providing regular assistance with athninistrative t&8ks, aidtng in the efficient functioning of the temple. Ensuring cleanliness and upkeep within the temple pr¢mises, contributing to a pleasant and hygienic environment for all. ACHIEVEMENT AND PERFORMANCE Charitable aetivities The London Sivan Kovil Trust has made significanl strides in providing benefits to devotees, visitors, and the I￿al community. Key achievements and benefits include: Diverse Functions.. Hosting a range of functions including weddings, cultural events, and funeral rituals, catering to the diverse needs and traditions of the community. Jnclusivity and Harnjony". Welcoming individuals of all faiths with wannth and friendship, fostering harniony and goodwill within the local community. Educational Outreach: Actively engaging local school children by inviting them to the temple, allowing them to learn about the Saiva (Hindu) religion and its practices. This initiative promotes interfaith relationships and cultural understanding. Community Support in an Inner-city Borough: Situated in a governrn¢nt-identified area for improvement, the temple provid¢s a w¢l¢oming space for all, offering refreshments to those in need, understanding that some may have limited financial resources. Set Objectives for Community Well-being.. The Trustees have set clear objectives. aiming for good attendance, a diverse ran8e of functions. &nd inclusivity for people of all faiths, and ￿1]itating access to temple facilities for those with limited financial means. Community-centric Facilities: Owning the London Sivan Centre building and utilizing it for cultural events and classrooms, the Trust offtrs these facilities to local communities at subsidized rntes, contributing to community enrichment, Property Ownership for Community Benefit: Owning assets such as a flat at 4C Clarendon Rise and a small land adjacent to 4A Clarendon Rise, the Trust extends its Potential for community development and support. These achievements and initiatives demonstrate the dedication of the London Sivan Kovil Trust to serving the ¢ommunity, fostering understanding and respect among different cultures and religions, and contributing to the overall we114Jeing of the local population. Fundralsing &etivities The medium-terni plan involves purchasing th¢ Temple building and premises at 4A Clarendon Rise. Fundrnising will cornmence when the land is available for sale, The Trustees have successfully raksed funds in the p&st to build the Sivan Centre and the new Temple. Page 2 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER2023 FINANCIAL REVIEW Financial position Financial Highlights - Year Ended 3 1st December 2023 Cash Reserves.. Cash at bank and in hand increased to £757,760, compared to £710,505 the previous year, providing ample coverage for day-to-day operational needs. Financial Commitments: The funds held in the bank account have been specifically allocated to ensure the acquisition and safeguarding of the Temple premAses, underscorlng a steadfast financial dedication to the temple's long-terni prosperity. These finances are earniarked exclusively for the purpose of purchasing the temple premises when the opportunity arise5 for the acquisition of the land. This careful financial planning demonstrates a strategic approach to securing the temple's ￿ture, aligning with the temple's objectives and vision. Bank Loans.. Bank loans decreased to £Nil from £127,541, demonstrattng prudent financial management. Loans from Trustees: Loans from trustees were reduced to £Nil, showcasing a positive fmancial trend. Surplus of Income: The statement of fmancial activities reveals a surplus of £150,760 over expenditure, compared to a surplus of £128,094 in the preceding year. Debtor Management: Diligent efforts to manage debtors have limited the debtors, balance to £20,023, reflecting effective financial administration and collection strategies. Bad Debt Write-off: A prudent approach was tak¢n to vffite off £Nil as bad d¢bL ensuring a clear r¢pr¢sentation of the f]nancial position. Funding Sources: Approximately half of the income is sourced from donations, reflecting strong community supporL while the other half is generated from various charitabl¢ activities. These financial highlights underscore the Trust's responsible financial management, a strong commitment to the Temple's future, and efforts to mainlain a sound financial position while advancing the charitable objectives of the organlzation. Page 3 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 DECEMBER2023 FINANCIAL REVIEW Reserves policy The Trustees have conducted a thorough review of the reserves, and the summariz£d amounts are rounded for clarity. On average, the monthly income has consistently exceeded the monthly expenditures, resulting in a surplus. This surplus is allocated towards repaying bank loans and establishing a dedicated fund for the eventual purchase of the Temple building and its premises. A reserve of £70,000 is maintained in th¢ bank's current account and debtor balances. This reserve serves as a safeguard to cover instances when day-to-day expenditures exceed the income, preventing the account from going Overdra￿￿. Additionally, an amount equivalent to two months, averag¢ expenditur¢, totalling £72,000, is set aside as a prud¢nt reserve. Moreover, a separate fund of £50,000 is earn]ark￿ specifically for emergency repairs and maintenance to ensure the ongoing upkeep and maintenance of the Temple premises. This allocation demonstrates a commitment to addressing unexpected repair needs promptly and maintaining the integrity of the Temple property. The Trustees hold regular reviews of the financial status The policy on holding reserves includes the following: Exclude from reserves £ Reserves £ Total funds Tangible fixed assets not available for general purposes Less related loans repayable within one year Less related loans repayable after one year Committed if emergency repaiTS are needed to the pr¢mises Committed bank balance for Temple building Comtnitted for the repayment of trustee loans 2,448,903 1,650,194 50,000 675,000 2,375,194 (2,375,194) Actual reserves 73,709 Reserves policy amount 72,000 FUTURE PLANS The Trustees anticipate the need for future decisions regarding capital expenditur4 aiming to secure the freehold of the Temple building and address any additional construction r¢quirement5. Historically, such capital expenditures have been financed through a combination of committed funds, bank loans, loans from Trustees, and fundraising efforts. Structure, Governance, and Management: The charity is governed by its goveming document, a deed of trust, establishing it as an unincorporated charity. The constitution document was initially enacted on 19th September 1993, and the trust was fornially declared on 27th February 1995. The document originally named fourteen trustee& with a stipulated range of trustees being between a minimum of fourteen and a maximum of thirty-two. In an effort to enhan¢e governance prdctices, the constitution was arnended on 24th July 2000, incorporating a confidential election pro¢ess for the selection of office bearers, thereby ensuring transparency and efficiency in leadership appointments. Page 4 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER2023 STRUCTURE, GOVERNANCE AIYD MANAGEMENT Charity eonstitution The charity's constitution outlines its fimdamental prlnciples and operdtional guid¢lines. Pu￿Ose. The trustees are entrusted with establishing and maintaining a Sivan Temple in South East London, following the traditions of Saiva Temples observed in Sri Lanka and Tamil Nadu, Indi& The trust fund and its income are to b¢ utilized for the advancement of the Saiva (Hindu) religion and other charitable purposes that benefit the community, as deterniined by the trustees. Organisational Structure: Day-to-day management is directly handled by the trustees and is not delegated to employees. The Trust maintains an organized office with athninistrative staff employed by the Trust. The trustees have elected a chairperson, secretary, treasurer, and appointed an internal auditor. There are specialized sU￿COMMIttees. A building and finance sub-committee for capital expenditure and related fmancing guidance. A community service sub-committee for providing services and support to the local community. A cultural activity sub-committee overseeing the Temple's Saturday Tamil School, operated on the Trust's premises, The progress of all sub-committees is coordinated by the Temple committee and reported to the main board at board meetings. Decision Making: Trustees collectively oversee decisions and transactions by attending the Temple office throughout the year. Some minor decisions regarding small value purchases are delegated to Temple staff. The chairperson holds overall responsibility for the Trust's affairs, presiding over various meetings, The secretary manages daY-l￿daY administration, execution of resolutions, and liaises with sub- committees, coordinating progress and collecting reports for the Board of Trustees. The treasurer maintains all accounts related to the Trust's affairs, which are then approved by the IK)ard at bi- monthly meetings. Decision-making is conducted by secret ballot using a simple majority of votes, and the chairperson has a casting vote in the event of a tie. Induction and Training: New trustees are provided with the Charity Commission publicaiion "The Essential Trustee: what you need to know, what you need to do," and are expected to read it. Additionally, new trustees undergo an orientation, spending time with the Chairperso￿ secretary, and treasurer to gain an overview of each office holder's responsibilities, This stNcture and governance framework provide a clear guideline for the functioning and decision-making processes within the charity, ensuring its effective operdtion in alignment with its intended objectives. Page 5 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Key Management Remuneration.. The trust does not have key management staff. The focus is on ensuring that administrators and religious workers are compensated with reasonable salaries. Wider Network; The Trust is a member of the Federation of Saiva {Hindu) Temples of the United Kingdom. However, this membership does not influence the operdting policies of the Tr￿t. Related Parties.. The Trust provides support to an orphanage in Sri Lanka where eighteen resident girls receive educalion and reside. A dedicated team of helpers and staff are present in th¢ facility. Risk Management.. The trustees are proaetive in identtfying and addressing various risks to protect the interests of the trust.. Food safety risks are mitigated through staff training and advice from the LocaI Authority Environmental Health Departrnent. Fire saf¢ty risks are addressed by following advice from the London Fire Brigade. Risks related to income misappropriation and unauthorized exp¢nditure ar¢ managed through careful monitoring and ensuring segregation of duties. Risks associated with capital expenditure projects concerning buildings and lease are mitigated by leveraging the trustees, skills in engineering, construction, and business management. Risks concerning the wellbeing and Safety of the eighteen girls in the Sri Lankan orphanage are managed through regular trustee visits, reports, and oversight by medical professionals, and comprehensive follow-ups. These measures showcase the trustees, commitment to risk management and safeguarding the trust's operations and those it serves. Page 6 LONDON SIVAN KOVIL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 DECEMBER 2023 REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Dumber 1051516 Principal address 4A Clarendon Rise Lewisham London SE13 SES REFERENCE AND ADMINISTRATIVE DETAIi Trustees Dr T Sriskandarajah Mr S Sukumar Mrs PV Gengatharan Chairperson Secretary Treasurer Mr N Sivasubramaniam Mr S Yogarajah Dr S Sivathasan MT A R2veendran Mr S Pararajasingam Dr (Mrs) V M Karunakaran Mr G Manoharan Dr S Navaratnam Mr S Parameswaran Mr T Rath¢skumar Mr S Suthaharan Independent examiner Vanniasingam Sashicumarr ACMA, CGMA AA-Accounting and Business Solutions Associates 267 Haydons Road Wimbledon London SW19 8TY Approved order of the board of trnstees on 19 October 2024 and signed on its behalf by: DrTS kandarajah - Cba Page 7 INDEPENDENT EXAMINER'S REPOIIT TO THf. TRUSTEES OF LONDON SIVAN KOVIL TRUST Indcpciident Lxamincr's rcporl lo tli¢ trustL'es of LONDON SIVAN KOVIL TRUST report on Ihe accouiils ofihe LONDON SIVAN KOVIL"fRUST (the Trust) for Ilie year ei)ded 31 Dcceiiiber ?0?3. Respective re5ponsibilitics of trustc¢s and examiner 'riie tru51ees are responsil)le for Ilie preparalion of the accuuTrls. 'fiie Iruslees considei. Ihal an audii is not requii'ed for tl)is y¢ar under section 144(?) of il)¢ charitie.s 4lCt 2011 (Ilie 201 l Acl) and Ilial an indcpendenr ex¢iininaiion is needed. The cl)aril! s &yross incomL excLLdL'd £250,000 and l aiii qualified to undL>rtake the c.xaiiiination by being) a qLialified niember of Cl)artered Insliluie of Mana¥¢meni Accounlaiiis. Huviiigy Satisfied mysL'if Ihat the cl)drity is nol subject lo an audii under company law dnd is eligible for indep¢nd¢ni eN