Happy Science Europe Unaudited Financial Statements 31 December 2022
Happy Science Europe Company inforrnation Current Dlreclors Rev. Satoshi Ikemura Rev. Tsunetaka Kobayashl Rev. Yoshinori Morooka Rev. Shlgeru Yamada Company reyistralion number 3932599 Charity registration numbgr 1081158 Registered office and princlpal address 3 Margaret street London WIW 8RE Accounlanls and Independent examiner Natthew Hunt Hunt Blake Chartered Accountants Jubllee House The Oak5 Ruislip HA4 7LF Ind6x to Financlal Directors, report Independent examiner's report Statement of Flnanclal Acuvltles Staternent5 Balance Sheet Notes to the Financial Statements 6t09
Happy Science Europe Directorfs Report for the year ended 31 December 2022 The dlrectors present their report and the financial statement5 for the year ended 31 December 2022. The directors are also Trustees for the purposes of Charity law and this report serves also as the report of the Trustees. Constitullon and objective5 01 the charlly Happy Science Europe Is a company Ilmlted by guarantee not havlng a share capltal and Its governlng documenl Is the Memorandum and Artlcles of Association. The objects of the charlty are to advance the education of the public In prlnclples and practlces of 8uddhlsm and relieve poverty and persons in need in accordance wlth Buddhlst principles. Organl$atSon and risk managqmgnt The dlrectors meet twlce a year to review activities. As the charity 15 evolving and the flnanclal base is still being developed, no other specllic committees have yet been established. Havino regard to the prlnclpal areas of the comp3ny's operations and the major rlsk5 wh5ch may arlse from them, the directors have introduced resources and revlew systems which, under normal conditions, should allow the rlsks Identlfled to be mitigated to an acceptable level. Dlrectors and trustees The followlng are the directors who served during the year. Rev. Tsunetaka Kobayashl Rev. Yoshinori Morooka Rev. Tetsuya Sato Rev. Shlgeru Yamada New dlrectors are found from contacts and networks or the exlsting dlrectors and are Interviewed and provided wlth a pack of informatlon Includlng Ihe accounts. Charllable purposes and Public Benefit The dlrectors confirm that they believe that they have complied wlth the reQu1MentS of the Charities Act 2011 to have due regard to the public benefit guidan published by the Charities Commlsslon In determining the activities undertaken by the thartty. This report make5 clear that Happy Sclence Europe complies with the principles Set out In the CharSty Commission public benefit guidance. There Is no harm or detrlment belng Incurred by pursuit of these aims and beneflts. Benellclarles are members of the publlc and Include men, women and children and thelr communltles (both falth and secular). The beneficiaries are therefore approprlate to the aims. The opportunltles for benefit are not unreasonably restricted by geographlcal or other restrlctlons or by the billty to pay any fees tharged. People in poverty and low Incomes are Included In the opportunlty to benellt. There are no private benefits being Incurred. Review of activlties and reserves The results of the company's artlvltles are summarised on page four. Net outgolng resources for the year amounted to E 2,858 {2021 incomlng £ 32,719). The dlrectors have reviewed the reserves or the charity in line wlth the guldance Issued by the Charity Commission. This review encompasses the nature of the income and expenditure streams. The revlew concluded that to allow the charity to be managed efficlently and to provlde a buffer for uninterrupted servlces, a freely avallable reserve equlvalent to at least to six months of operating expendlture should be malntalned. In addltlon the dlrectors are 5eeklng to bulld up reserves to enable expendlture to be undertaken on malntalnlng the bulldlng of the current temple or, if appropriate, acqulrlng and movlng to, a new slte. Page I
Happy Science Europe Director's Report for the year ended 31 December 2022 A¢llvities Slgnlllcant athvltles durlng the year Included-. Continuing religiou5 services, public lectures and meditation semlnars on Buddhlst teachlng5. Donation and distrIbuan of books through the Temple. Organlslng from tSme to tlme v151t5 of membe15 to Japan includlng 5taylng In Happy Science temples and participating in retreats and experlencing Happy Sclence activltles and teachings. Holding 8 Seminar for Members to hear teachlngs from senlor mSnlsters from Japan. Continulng dissemlnation of the teachings and prlnclples of Buddhlsm through personal contact, group sesslons, onllne semlnars, medltatlons and prayer 5ervlces and [e of charge dlstrlbutlon of books, CD'S and booklets. Necessary maintenance works on the temple building have contSnued durlng the year. Daily prayer for Master Ryuho Okawa's resurrection and Monthly Rltual Prayer Servlces. Dlredor5' responsibilities Company law requires the directors to prepare financial statements for each financlal year whlch glve a true and lair view of the State of affairs of the company and of the surplus or dellclt of the company for that year. In preparing those financial statements, the dlrectors are required to 5elecl suitable accounting policies and then apply them conslstently, make judgements and estimates that are reasonable and prudent and prepare the flnanclal statements on the going concern basis, unless it Is inappropriate to assume that the company wlll contlnue Sn operatlon. The dirertors are responsible for keeping proper accounting records whlch dSsclose wSth reasonable accuracy at any tlme the financlal posltion or the company and to enable them to ensure that the financial statements comply wlth the Companie5 Act 2006. They are a150 responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detectlon of fraud and olher Irregularitles. So far as each of the directors 15 aware, there is no relevant inforrnation 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 accountlng Infomiation and to establish that the company's accountants have been made aware of that Information. Guarantee status The Ilablllty of the mernbers of the company Is Ilmited to an amount not exceeding £1 per member. Small company wles This report has been prepared in accordance wlth the speclal provlslons relatlng to companies 51Jbject to the small companles regltne wlthin Part 15 of the Companies Act 2006. Approved by the Board of Directors and slgned on its behalf. Satoshi Ikemura Dlrector 29 September 2023 Page 2
Happy Science Europe Accounts for the year ended 31 December 2022 Report of the Independent Examlner Independent examlner's report to the trustees (consisting of the members ol the Board of Directors) of Happy Science Europe (Registered Charity No 10811581. I report on the accounts of the charlty for the year ended 31 December 2022 which are Set out on pages 4 to9. Respective responsibilltles of trustee$ and examiner The charity's trustees are responslble for the preparatlon ol the accounts. The trustees conslder that an audlt 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 responslblllty to.. exarnlne the accourits under 5ectlon 145 of the Charltles Act 2011,. to follow the procedures lald down in the general Dlrectlons glven by the Charfty Commis55on under sectlon 145(5)Ibl of the 2011 Act,. and to state whether particular matters have come to my attentlon. Basi$ of indepqndent exarninerf5 report My examinatlon was carried out In accordance wlth the general Dlrertlons given by the Charity Commlsslon. The procedu$ undertaken do not provlde all the evidence that would be qLlIred In an audlt and consequently no oplnion 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 examinèls Statement Having completed my exèmlnatln I confimi that no matters have cowe tg my attentlon In conertlon wlth my examlnatlon: 11) whlch give me reasonable cause to belleve that in any Mateal respect the requlrements- to keep accountlng records in accordance wlth the requlrements of the Companles Act 2006 {"th Act"),. and to prepare accounts which accord wlth the accountlng records and comply wlth the accountlng requirements of the Act, other than any requlremeat that the accounts glve a true and falr vlew whlch 15 not a matter cons1dered as part of an Independent examlnation. have not been met; or 12) to which, in my opinlon, attentlon should be drawn in order to enable a proper understandlng of the accounts to be reached. Matthew Hunt Hunt Blake Chartered Accountants Rulsllp HA4 7LF 29 September 2023 Page 3
Happy Science Europe statement of Financial Actlvlties For the year ended 31 December 2022 Unrestrlcted Funds Restrltted Funds Total Funds Total funds Note 2022 2021 Incomlng resources Donations Interest recelvable Gift Aid tax recovered Estimated value of book5 donated 107,150 22 107,150 22 132,132 8,468 2,541 li 3,273 3,273 Total incoming rasources 110,445 110,445 143,141 Rèsources expended Charitable acllvllies Cost of books leallets Support costs Depreciation li 3,273 82,374 3,273 82,374 23,546 2,541 74,219 23,545 23,546 85,647 23,546 109,193 100,305 Governance costs Accountancy, Independent examlnatlon and taxation 5ervlces Legal fees 4,110 4,110 4,016 6,101 4,110 4,110 10,117 Total resources expenses 89,757 23,546 113,303 110,422 Nel Incomlng loutgoingl resources Funds balances brought forward 20,688 23,546) 2,858) 32,719 304,286 1,860,402 2,164,688 2,131,969 Funds balances carried loard 324,974 £ 1,836,856 £ 2,161,830 £ 2,164,688 The notes on pages 6 to 9 form part of these financial statetnents Page 4
Happy Science Europe Balanoe Sheet- 31 December 2022 Note 2022 2021 Flxed assets Tanglble fixed assets E 1,954,184 £ 1,977,730 Current assets Debtors Cash at bank and In hand 3,431 212,123 200 192,987 215,554 7,908) 193,187 6,2291 Accruals and deferred Income Net current assets 207,646 186,958 Net assets £ 2,161,830 E 2, 164,688 Funds Unrestricted funds Reslricted funds 324,974 1,836,856 304,286 1,860,402 £ 2,161,830 £ 2,164,688 These linanclal statements have been prepared in accordance with the special provisions relating to small companies wlthln Part 15 of the Companies Act 2006. For the financial year ended 31 December 2022 the company was entitled to exemption from audit under s.477 Companies Act 2006 and no notlce has been deposlted under s.476. The directors acknowledge their responsibility for complying with the reqU1MentS of the Companle5 Act 2006 wlth respect to accountlng records and the preparation of financial statements. Approved by the Board of Directors and signed on it5 behalf. Satoshi Ikemura Director fttf,J,. Lli£tshro 29 September 2023 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 2022 1 Accountlng pollcles 1.1 Bas1$ ol preparailon ol Ilnanclal statements The financial statements are prep3red in accordance with the requirements of the Companles Act 2006, the Statement of Recommended practi for charitles ISOKP FRS1021 and applicable accountlng standards. The functional currency of the company, and the currency in which the accounts are prepared is pounds sterling. 1.2 Income and èxpenditure Donatlons are accounted for when recelved. Expendlture Is accounted for in the perlod to whlch It relates. 1.3 Tanglble red assets and rfepTeclallon Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on the straight Ilne basis at the following annual rates whlch are calculated to wrlte off the tangSble flxed assets, les5 thelr estlmated re51dual value, over thelr expected useful Ilves. Freehold land Freehold bulldlngs Plant and equipment 20/0 20% & 25% At each balance sheet date the directors revlew the carrying amount of the tangible fixed assets to determlne whether there 15 any Indlcatlon that any Items have suffered an Impalrment loss, l.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 rixed assets are currently considered to be so Impa[d. 1.4 stk and dlstrlbutlon v&lues ol books athd publlcallons The directors consider that materially all the books and publlcatlons whlch they generally hold for free distribution, are held on behalf of the Happy Science in Japan which donates them. A notlonal cost and correspondSng notlonal Income Is accounted for when the publlcations are dlslributed. Consequentially no value Is ascrlbed to the books held by the charlty. 1.5 Forelgn currencles Monetèry assets and liabllittes in forelgn currencies are translated into sterllng at the rates of exchange ruling at the balance sheet date. Tr3n5actlons in foreign currencies are translaled into sterllng at the rate rullng on the date of the transactlon. Exchange differences are taken Into account in the Statement of Financial Activitie5. 2 Donations 2022 2021 Donatlons are recelved both from UK and abroad. 107,150 132,132 Page 6
Happy Science Europe Notes to the financial statements for the year ended 31 December 2022 3 Support ¢o$ls 2022 2021 Local property taxes net of refunds Local payroll taxes related to mlnlsters 8,365 14,061 3,496 6,912 5,023 14,251 14,703 699 2,566 2,742 5,490 475 3,591 884} 18,203 3,267 6,149 8,279 16,685 14,328 1,929) 1,477 T¥avel ènd accommodatlon Communications PtIng1 Postage, statlonery and offlce expenses Repairs and maintenance 8ank charges net of overcharges recovered Insurance Consultancy servlces Promotional activities Forelgn exchange costs Miscellaneous 1,662 1,926 5,056 82,374 74,219 The dlrectors conslder that materlally all support costs are attributable to the princlpal charitable activites of the company. 4 Operating result 2022 2021 The result is stated after charging the following.. Depreclatlon of tangible fixed a55ets 23,546 23,545 5 Staff costs There are Tro staff with remuneration above E60,000. Page 7
Happy Science Europe Notes to the financial statements for the year ended 31 December 2022 6 TangSble Ilxed assets Freehold land nd buildings Furnlture, fixtures, and computer eoulpment Motor vehicles Total Cost At l January 2022 2,315,177 12,496 10,972 2,338,645 At 31 December 2022 £ 2,315,177 12,496 10,972 £ 2,338,645 Depreciatlon At l January 2022 Charge for the year 337,447 23,546 12,496 10,972 360,915 23,546 At 31 December 2022 360,993 12,496 10,972 384,461 Nel book value At 31 December 2022 £ 1,954,184 £ 1,954, 184 At l January 2022 £ 1,977,730 £ 1,977,730 7 Debtors 2022 2021 Amounts falling due within one year.. Corporatlon tax recoverable Accrued Income, prepayments and other debtor5 200 3,231 200 3,431 200 8 Unreslricled funds The unrestrScted funds comprise £ 324,974 12021.. £ 304,286) belng funds available to apply towards achlevlng the aims and objectlves of the charity. g Resirfcted funds The restrlcled lunds comprlse £ 1,836,856 (2021.. £ 1,860,402) belng funds provlded by Happy Science Japan used to purchase land and bulldings in London for use a5 a temple, less accumulated depreclatlon to date. 10 Related parties The directors consider that Happy Science Japan 15 a related party by vlrtue of all the charity's dIrectO belng dlrectly connected to Happy Science Japan, wh£h also provides support and servlce5 and pastoral dlrection. Page 8
Happy Science Europe Notes to the financial statements for the year ended 31 December 2022 11 Servlces and supplles donated The dlrectors estlmate thal durlng the year the cost value of books and publlcatlons dlstrfbuled free of tharge by Happy Science Europe and whlch were supplied, also free of charge, by Happy Science Japan, amounted to £3,273 (2021 £2,541) During the year the charity benefltted from the SeICe5 of three full time mlnlsters. The charlty pald the applicable UK taxes as included in note 3 - Support costs. The balance ol salary due to the mlnlsters was pald directly by Happy ScIens Japan and amounted to £82,863 (2021 É104,573) During the year the charity benefitted from the freely provided service of about 10 volunteers. Two provided assistance In accounting, adminlstration and similar matters. The others provided operational assistance in the day to day runnlng of the temple and the temple bullding. 12 General Informallon The compèny Is a prlvate company Ilmlted by guarantee wlth Its gIstered offlce at Its prfnclpal place of business at 3 Margaret Street, London WIW 8RE. Page 9