Happy Science Europe Unaudited Financial Statements 31 December 2020
Happy Science Europe
Company information
Current Directors
Mr Tsunetaka Kobayashi Mr Yoshinori Marooka Mr Tetsuya Sato Mr Shigeru Yamada
Company registration number 3932599
Charity registration number 1081158 Registered office 3 Margaret Street and principal address London W1W 8RE Accountants and Matthew Hunt Independent examiner Hunt Blake - Chartered Accountants Jubilee House The Oaks Ruislip HA4 7LF
| Page(s) | ||
|---|---|---|
| Index to Financial | Directors' report | 1 |
| Statements | Independent examiner's report | 3 |
| Statement of Financial Activities | 4 | |
| Balance Sheet | 5 | |
| Notes to the Financial Statements | 6 to 9 |
Happy Science Europe
Director's Report for the year ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020. The directors are also Trustees for the purposes of Charity law and this report serves also as the report of the Trustees.
Constitution and objectives of the charity
Happy Science Europe is a company limited by guarantee not having a share capital and its governing document is the Memorandum and Articles of Association. The objects of the charity are to advance the education of the public in principles and practices of Buddhism and relieve poverty and persons in need in accordance with Buddhist principles.
Organisation and risk management
The directors meet twice a year to review activities. As the charity is evolving and the financial base is still being developed, no other specific committees have yet been established. Having regard to the principal areas of the company's operations and the major risks which may arise from them, the directors have introduced resources and review systems which, under normal conditions, should allow the risks identified to be mitigated to an acceptable level.
Directors and trustees
The following are the directors who served during the year.
| Mr Kazuhiro Ichikawa | Resigned 1 September 2020 |
|---|---|
| Mr Kosuke Ishikawa | Appointed 1 March 2020 Resigned 28 January 2021 |
| Mr Tsunetaka Kobayashi | |
| Mr Yasuyuki Ouchi | Resigned 28 January 2021 |
| Ms Nobuko Porteous | Appointed 5 December 2020 Resigned 22 May 2021 |
| Mr Tetsuya Sato | Appointed 4 August 2020 |
| Ms Akiko Shiba | Resigned 1 March 2020 |
| Mr Shigeru Yamada | Appointed 1 September 2020 |
| Mr Machiko Yamamura | Resigned 22 May 2021 |
New directors are found from contacts and networks of the existing directors and are interviewed and provided with a pack of information including the accounts.
Charitable purposes and Public Benefit
The directors confirm that they believe that they have complied with the requirements of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charities Commission in determining the activities undertaken by the charity.
This report makes clear that Happy Science Europe complies with the principles set out in the Charity Commission public benefit guidance.
There is no harm or detriment being incurred by pursuit of these aims and benefits.
Beneficiaries are members of the public and include men, women and children and their communities (both faith and secular). The beneficiaries are therefore appropriate to the aims.
The opportunities for benefit are not unreasonably restricted by geographical or other restrictions or by the ability to pay any fees charged.
People in poverty and low incomes are included in the opportunity to benefit.
There are no private benefits being incurred.
Review of activities and reserves
The results of the company's activities are summarised on page four. Net outgoing resources for the year amounted to £ 2,505 (2019 outgoing £ 34,026).
Page 1
Happy Science Europe
Director's Report for the year ended 31 December 2020
The directors have reviewed the reserves of the charity in line with the guidance issued by the Charity Commission. This review encompasses the nature of the income and expenditure streams. The review concluded that to allow the charity to be managed efficiently and to provide a buffer for uninterrupted services, a freely available reserve equivalent to at least to six months of operating expenditure should be maintained.
In addition the directors are seeking to build up reserves to enable expenditure to be undertaken on maintaining the building of the current temple or, if appropriate, acquiring and moving to, a new site. As will be seen in the accounts, work has commenced on major repairs required to the temple building.
Activities
Significant activities during the year included:
-
Continuing religious services, public lectures and meditation seminars on Buddhist teachings.
-
Donation and distribution of books through charity shops.
-
Organising from time to time visits of members to Japan including staying in Happy Science temples and participating in retreats and experiencing Happy Science activities and teachings.
-
Holding a seminar for members to hear teachings from senior ministers from Japan.
-
Continuing dissemination of the teachings and principles of Buddhism through personal contact, group sessions and free of charge distribution of books, CD's and cassettes.
-
Further major works have been undertaken this year towards the maintenance of the temple building.
Directors' responsibilities
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that year. In preparing those financial statements, the directors are required to select suitable accounting policies and then apply them consistently, make judgements and estimates that are reasonable and prudent and prepare the financial statements on the going concern basis, unless it is inappropriate to assume that the company will continue in operation.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the company's accountants and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant accounting information and to establish that the company's accountants have been made aware of that information.
Guarantee status
The liability of the members of the company is limited to an amount not exceeding £1 per member.
Small company rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board of Directors and signed on its behalf.
Tetsuya Sato - Director
23 November 2021
Page 2
Happy Science Europe
Accounts for the year ended 31 December 2020
Report of the Independent Examiner
Independent examiner's report to the trustees (consisting of the members of the Board of Directors) of Happy Science Europe (Registered Charity No 1081158).
I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 4 to 9.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an Independent examination is required.
It is my responsibility to:
-
examine the accounts under section 145 of the Charities Act 2011;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out below.
Independent examiner's statement
Having completed my examinatin I confirm that no matters have come to my attention in conection with my examination:
-
(1) which give me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with the requirements of the Companies Act 2006 ("the Act"); and
-
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 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;
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Matthew Hunt
Hunt Blake Chartered Accountants Ruislip HA4 7LF
26 November 2021
Page 3
Happy Science Europe
Statement of Financial Activities
For the year ended 31 December 2020
| Note Incoming resources Donations 2 Interest receivable Estimated value of books donated 11 Total incoming resources Resources expended Charitable activities Cost of books and leaflets 11 Support costs 3 Depreciation 6 Governance costs Total resources expenses Net incoming (outgoing) resources Funds balances brought forward Funds balances carried forward Accountancy, independent examination and taxation services |
Unrestricted Funds £ 103,107 4 3,473 |
Restricted Funds £ - - - |
Total Funds 2020 £ 103,107 4 3,473 106,584 £ 3,473 77,385 23,611 104,469 £ 4,620 4,620 £ 109,089 £ 2,505) ( 2,134,474 2,131,969 £ |
Total funds 2019 £ 47,644 8 3,432 |
|---|---|---|---|---|
| 106,584 £ |
- £ |
51,084 £ |
||
| 3,473 77,385 - |
- 23,611 |
3,432 54,601 23,567 |
||
| 80,858 £ |
23,611 £ |
81,600 £ |
||
| 4,620 | - | 3,510 | ||
| 4,620 £ |
- £ |
3,510 £ |
||
| 85,478 £ |
23,611 £ |
85,110 £ |
||
| 21,106 226,916 |
23,611) ( 1,907,558 |
34,026) ( 2,168,500 |
||
| 248,022 £ |
1,883,947 £ |
2,134,474 £ |
The notes on pages 6 to 9 form part of these financial statements
Page 4
Happy Science Europe
Balance Sheet - 31 December 2020
| Note Fixed assets Tangible fixed assets 6 Current assets Debtors 7 Cash at bank and in hand Accruals and deferred income Net current assets Net assets Funds Unrestricted funds 8 Restricted funds 9 |
2020 £ 2,001,275 £ 200 136,612 136,812 6,118) ( 130,694 £ 2,131,969 £ 248,022 1,883,947 2,131,969 £ |
2019 £ 2,024,886 £ |
|---|---|---|
| 200 112,381 |
||
| 112,581 2,993) ( |
||
| 109,588 £ |
||
| 2,134,474 £ |
||
| 226,916 1,907,558 |
||
| 2,134,474 £ |
These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under s.477 Companies Act 2006 and no notice has been deposited under s.476.
The directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Approved by the Board of Directors and signed on its behalf.
Tetsuya Sato - Director
23 November 2021
The notes on pages 6 to 9 form part of these financial statements
Registered Company No. 3932599 (England and Wales)
Page 5
Happy Science Europe
Notes to the financial statements for the year ended 31 December 2020
1 Accounting policies
1.1 Basis of preparation of financial statements
The financial statements are prepared in accordance with the requirements of the Companies Act 2006, the Statement of Recommended Practice for charities (SORP FRS102) and applicable accounting standards.
The functional currency of the company, and the currency in which the accounts are prepared is pounds sterling.
1.2 Income and expenditure
Donations are accounted for when received. Expenditure is accounted for in the period to which it relates.
1.3 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on the straight line basis at the following annual rates which are calculated to write off the tangible fixed assets, less their estimated residual value, over their expected useful lives.
| Freehold land | Nil |
|---|---|
| Freehold buildings | 2% |
| Plant and equipment | 20% & 25% |
At each balance sheet date the directors review the carrying amount of the tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss, i.e. where their current recoverable amount is significantly lower than their book value. If any such indication exists the recoverable amount is used to determine the impairmant loss. No tangible fixed assets are currently considered to be so impaired.
1.4 Stock and distribution values of books and publications
The directors consider that materially all the books and publications which they generally hold for free distribution, are held on behalf of the Happy Science in Japan which donates them. A notional cost and corresponding notional income is accounted for when the publications are distributed. Consequentially no value is ascribed to the books held by the charity.
1.5 Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in the Statement of Financial Activities.
2 Donations
| Donations | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| Donations are received both from UK and abroad. | £ | 103,107 |
£ | 47,644 |
Page 6
Happy Science Europe
Notes to the financial statements for the year ended 31 December 2020
3 Support costs
| Support costs | ||
|---|---|---|
| Rates and other similar expenses Local taxes related to minister Utilities Travel and accommodation Telephone Printing, postage, stationery and office expenses Repairs and maintenance Bank charges Insurance Consultancy services Promotional activities Visa application costs Miscellaneous |
2020 £ - 510 3,800 6,128 4,837 16,249 22,538 411 1,382 5,311 15,389 - 830 77,385 £ |
2019 £ 10,999 1,773 3,893 1,979 1,509 7,539 17,234 350 1,354 - 5,521 2,155 295 |
| 54,601 £ |
The directors consider that materially all support costs are attributable to the principal charitable activites of the company.
4 Operating result
| Operating result | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| The result is stated after charging the following: | ||||
| Depreciation of tangible fixed assets | £ | 23,611 |
£ | 23,567 |
5 Staff costs
There are no staff with remuneration above £60,000.
Page 7
Happy Science Europe
Notes to the financial statements for the year ended 31 December 2020
6 Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 1 January 2020 Debtors . Amounts falling due within one year: Corporation tax recoverable |
£ 2,315,177 Freehold land and buildings |
£ 12,496 Furniture, fixtures, and computer equipment |
£ 10,972 10,972 £ 10,972 - 10,972 £ - £ - £ 2020 £ 200 £ Motor vehicles |
£ 2,338,645 Total |
|---|---|---|---|---|
| 2,315,177 £ |
12,496 £ |
2,338,645 £ |
||
| 290,291 23,611 |
12,496 - |
313,759 23,611 |
||
| 313,902 £ |
12,496 £ |
337,370 £ |
||
| 2,001,275 £ |
- £ |
2,001,275 £ |
||
| 2,024,886 £ |
- £ |
2,024,886 £ |
||
| 2019 £ 200 £ |
7 Debtors .
8 Unrestricted funds
The unrestricted funds comprise £ 248,022 (2019: £ 226,916) being funds available to apply towards achieving the aims and objectives of the charity.
9 Restricted funds
The restricted funds comprise £ 1,883,947 (2019: £ 1,907,558) being funds provided by Happy Science Japan used to purchase land and buildings in London for use as a temple, less accumulated depreciation to date.
10 Related parties
The directors consider that the Happy Science Japan is a related party by virtue of all the charity's directors being directly connected to Happy Science Japan, whch also provides support and services and pastoral direction.
Page 8
Happy Science Europe
Notes to the financial statements for the year ended 31 December 2020
11 Services and supplies donated
The directors estimate that during the year the cost value of books and publications distributed free of charge by Happy Science Europe and which were supplied, also free of charge, by Happy Science Japan, amounted to £3,473 (2019 £3,432)
During the year the charity benefitted from the provision of the full time services of a director, wholly paid for by Happy Science Japan. The estimated value of the service to the charity is £15,325 (2019 £19,374)
During the year the charity benefitted from the freely provided service of about 10 volunteers. Two provided assistance in accounting, administration and similar matters. The others provided operational assistance in the day to day running of the temple and the temple building.
12 General information
The company is a private company limited by guarantee with its registered office at its principal place of business at 3 Margaret Street, London W1W 8RE.
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