2021-04-05-accounts - Gurdwara Sahib Leamington & Warwick

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REGISTERED CHARITY NUMBER: 1084702

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

FOR

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

Shah & Co (Accountants) Ltd Chartered Certified Accountants & Statutory Auditors Cash's Business Centre 1st Floor 228 Widdrington Road Coventry West Midlands CV1 4PB

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

		Page
Reference and Administrative Details		1
Report of the Trustees	2	to	5
Report of the Independent Auditors	6	to	9
Statement of Financial Activities		10
Balance Sheet		11
Cash Flow Statement		12
Notes to the Cash Flow Statement		13
Notes to the Financial Statements	14	to	23
Detailed Statement of Financial Activities	24	to	25

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 5 APRIL 2021

CHAIRMAN AND GENERAL SECRETARY	J S Sohal
TRUSTEES	J S Sohal
	S K Lotta
	N S Sidhu
	J K Gill
	G S Aulak
TREASURER	Y S Sahota
PRINCIPAL ADDRESS	Tachbrook Park Drive
	Warwick
	CV34 6RH
REGISTERED CHARITY NUMBER	1084702
STATUTORY AUDITORS	Shah & Co (Accountants) Ltd
	Chartered Certified Accountants
	& Statutory Auditors
	Cash's Business Centre
	1st Floor, 228 Widdrington Road
	Coventry
	West Midlands
	CV1 4PB
BANKERS	Lloyds Bank PLC
	73 The Parade
	Leamington Spa
	CV32 4BB
	Yorkshire Bank PLC
	47-49 Warwick Street
	Leamington Spa
	CV32 5JR
SOLICITORS	Newhall Solicitors LLP
	83 Newhall Street
	Birmingham
	B3 1LH

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their report with the financial statements of the charity for the year ended 5 April 2021. The trustees have adopted the provisions of 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 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives as detailed in the governing document is to promote the Sikh religion and culture with the guidance of Shri Guru Granth Sahib Ji, the supreme authority and respect to the Akal Takhat by all and/or any of the following means:

(a) By providing and maintaining a Gurdwara Sahib (Sikh Temple) in or near the town of Leamington Spa in the Warwick District for the worship of the Sikh religion by the Sikh Community of the Warwick and Stratford Upon-Avon Districts;

(b) By teaching and educating members of the Sikh Community in the doctrines and practices of the Sikh Religion and, further, by teaching the Sikh Children Punjabi/Gurmukhi and by promoting Sikh Culture;

(c) By preaching and promoting the Sikh Religion and Culture and by celebrating the historical events connected with the Sikh Religion;

(d) By providing for the benefit of the Sikh Community, and the inhabitants of the Warwick and Stratford-upon-Avon Districts, facilities for recreation of other leisure time occupation, in the interests of social welfare and with the object of improving the conditions of life;

(e) By promoting other charitable purposes by making appropriate donations and contributions;

Public benefit

The trustees confirm they have complied with the duty in the Charities Act 2011 to have due regard to the general guidance by the Charity Commission on public benefit. The charity is encouraged that the Charity Commission acknowledges the intangible spiritual benefits that the charity seeks to provide.

Leamington and Warwick Sikh Temple promote the Sikh religion and culture by providing a Gurdwara Sahib near the town of Leamington Spa in the Warwick District for the worship of the Sikh Religion by the Sikh Community. The Temple is to provide for the benefit of the Sikh Community and of the inhabitants of the Warwick District facilities for recreation and conference activities. The Temple also provides facilities for improving the condition of lives of people not so fortunate as themselves by providing a place where meals can be taken. The charity supports the teaching and education of the Sikh Temple in the doctrines and practices of the Sikh religion and further to teach the Sikh children Punjabi and to promote the Sikh Culture to all so that they can go on and become valued members of the Sikh Community.

Volunteers

The Charity benefits from significant time donated by volunteers and is indebted to those volunteers for their commitment and support in the provision of service and running of the Gurdwara throughout the year. It is difficult to quantify the time donated by volunteers and therefore the economic value to this contribution which is valuable in the running of the Charity. The holding trustees and management committee ensure that volunteers time is used efficiently and effectively in the smooth running of the Charity.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Charity meets its objectives in the following ways:

(a) Promote a place of worship:

To provide a place of worship of Sikh Religion to the local Sikh Community and non Sikhs alike;

(b) Promote teaching and education:

To promote and educate the Sikh Religion and Culture through classes as well as teach the languages adopted by the Sikh Religion;

(c) Promote the celebration of Sikh festivals:

To celebrate public religious festivals;

(d) Promote a place of recreation and leisure time:

To provide a regular meeting place for the local Sikh Community and non Sikhs alike;

(e) Promote other charitable organisations:

To make appropriate charitable grants and donations in furtherance of their charitable objectives;

In March 2020, the UK Government imposed lockdown restrictions due to the COVID-19 global pandemic. Consequently, the Gurdwara was closed for the first three months of the financial year with restricted openings throughout the rest of the year, as the second wave of pandemic arrived. Accordingly, the charity was restricted in its ability to promote its charitable activities during this time. However, services were broadcast from the Gurdwara by social media to the Sangat (congregation) in their homes at the normal times throughout the year whilst also complying with enhanced health and safety guidelines issued by the Government.

At the date of approving these financial statements the Government has removed all lockdowns restrictions and as the country returns to some normality, the trustees are confident that the Charity will continue to meet its charitable objectives in the foreseeable future and the activities continue to provide a public benefit to those who use the Gurdwara not only as a place of worship but also a place to teach and educate Sikh Religion and Culture, celebrate Sikh festivals and use the Gurdwara as a place of recreational and leisure time.

FINANCIAL REVIEW

Financial position

The holding trustees report on the financial results and position of the Charity as set out in the annexed financial statements.

Total incoming resources for the year amounted to £252,144 a reduction from £809,618 in the previous year. Income from donations during the year fell by £380,536 to £200,306 (2020: £580,842). Income from Gift Aid during the year was £nil (2020: £172,831). No rent was received from investments during the year (2020: £55,505).

Total expenditure for the year amounted to £470,142 a reduction from £552,204 in the previous year, leaving a net deficit of £217,998 (2020: £257,414 net incoming resources).

The holding trustees consider that the unrestricted funds of the Charity, which includes designated funds, have sufficient resources and assets available that are adequate to fulfil their obligations. However, they are concerned with the significant fall in total incoming resources during the year which is mainly the result of the COVID-19 pandemic. The holding trustees are confident that with the pandemic under control and restrictions lifted, income should return to expected levels.

Investment policy and objectives

The Charity's investments are held in accordance with the holding trustees' powers. The holding trustees have the authority to invest in such assets and investments as they see fit. The Charity currently holds cash investments rather than shares or securities in order to provide flexibility in meeting operational requirements.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

FINANCIAL REVIEW

Reserves policy

The trustees intend to maintain a buffer of unrestricted funds at a level of around six months normal expenditure.

A policy has been established whereby the freehold land and buildings and investment properties are represented by a designated fund within unrestricted funds. The remaining unrestricted funds are available for the day to day use towards meeting the objectives of the Charity.

At the year end unrestricted reserves stood at £6,707,796 (2020: £6,925,794) which includes designated reserves of £6,161,480 (2020: £6,241,422).

FUTURE PLANS

The Charity will continue to meet its charitable objectives for the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

The charity is an unincorporated association after the adoption of a Constitution dated 26 November 2000. The governing document has been subsequently amended in January 2001, February 2005, October 2011 and more recently in October 2015 as approved by the Charity Commission.

Organisational structure

There are currently five holding trustees which will remain in office until the next period of election. Holding trustees are elected at an Annual General Meeting once every five years. The holding trustees serve a term in office for a period of five years from the date of being elected. The Management Committee organise and oversee the election of the holding trustees but no Management Committee member is permitted to stand for election as a holding trustee. At the first meeting the holding trustees are responsible for the assets and investments of the the Charity on trust for the Registered Members of the Charity. The holding trustees meet at least once in each calendar year.

There are no persons, external to the Charity, who are permitted to appoint holding trustees.

Members of the Management Committee are elected at a Special General Meeting, held on a Sunday within twenty eight days of Vaisakhi in every second year. Members of the Committee serve a term in office for a period of two years from the date of being elected. The board of holding trustees organise and oversee the election of the Management Committee but no holding trustee is permitted to stand for election as a member of the Management Committee. The Management Committee is responsible for the day to day running of the Charity in furtherance the objectives set out below.

The Management Committee meets at least once a month to consider the proper management of the Charity and its activities.

Both the holding trustees and management committee are inducted at their first meeting and are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role and responsibilities.

Wider network

The board of holding trustees ensure the Charity is working within best practice of the charity's regulators, the Charity Commission.

Governance and internal control

The holding trustees have implemented a formal risk management process to assess risk and implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of this process, the holding trustees have reviewed the adequacy of the Charity's current internal controls. The close involvement of the holding trustees and members of the management committee and other officials in the day to day running of the Charity is also believed to enhance the internal controls and mitigate risks.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements 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.

Approved by order of the board of trustees on 13 June 2022 and signed on its behalf by:

J S Sohal - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GURDWARA LEAMINGTON AND WARWICK

Opinion

We have audited the financial statements of Gurdwara Leamington and Warwick (the 'charity') for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:
give a true and fair view of the state of the charity's affairs as at 5 April 2021 and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
have been prepared in accordance with the requirements of the Charities Act 2011.

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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Matters on which we are required to report by exception

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

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GURDWARA LEAMINGTON AND WARWICK

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GURDWARA LEAMINGTON AND WARWICK

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the charity and identified that the principal risks of non-compliance with laws and regulations relate to the Charity Commission regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements of the charity or the operations of the charity, and determined that the most significant are those that relate to the Charities Act 2011, Charity (Accounts and Reports) Regulations and Charities SORP (FRS 102).

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of out auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GURDWARA LEAMINGTON AND WARWICK

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.

Shah & Co (Accountants) Ltd Chartered Certified Accountants & Statutory Auditors Cash's Business Centre 1st Floor 228 Widdrington Road Coventry West Midlands CV1 4PB

13 June 2022

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 4 Investment income 5 Total EXPENDITURE ON Charitable activities 6 Operations of the Temple Teaching and educational activities Charitable grants and donations Governance costs Other expenditure Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 252,144 - 252,144 251,780 588 - 7,469 210,305 470,142 (217,998) 6,925,794 6,707,796	Restricted fund £ - - - - - - - - - - - -	5.4.21 Total funds £ 252,144 - 252,144 251,780 588 - 7,469 210,305 470,142 (217,998) 6,925,794 6,707,796	5.4.20 Total funds £ 754,113 55,505
				809,618 334,420 5,120 2,800 4,180 205,684
				552,204
				257,414 6,668,380
				6,925,794

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes form part of these financial statements

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

BALANCE SHEET

5 APRIL 2021

Notes FIXED ASSETS Tangible assets 13 Investment property 14 CURRENT ASSETS Debtors 15 Cash at bank and in hand CREDITORS Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 17 NET ASSETS FUNDS 22 Unrestricted funds TOTAL FUNDS	5.4.21 £ 7,226,727 500,000 7,726,727 11,167 552,247 563,414 (490,530) 72,884 7,799,611 (1,091,815 ) 6,707,796 6,707,796 6,707,796	5.4.20 £ 7,406,531 500,000 7,906,531 1,859 693,344 695,203 (108,839) 586,364 8,492,895 (1,567,101 ) 6,925,794 6,925,794 6,925,794

The financial statements were approved by the Board of Trustees and authorised for issue on 13 June 2022 and were signed on its behalf by:

S K Lotta - Trustee

J K Gill - Trustee

The notes form part of these financial statements

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021

Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash (used in)/provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Rent from investment property Net cash (used in)/provided by investing activities Cash flows from financing activities Loan repayments in year Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	5.4.21 £ 38,519 (49,253) (10,734) (30,501) - - (30,501) (99,862) (99,862) (141,097) 693,344 552,247	5.4.20 £ 635,755 (55,198) 580,557 (17,525) 11,400 55,505 49,380 (95,339) (95,339) 534,598 158,746 693,344

The notes form part of these financial statements

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest paid Rent from investment property (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by operations	5.4.21 £ (217,998) 210,305 - 49,253 - (9,308) 6,267 38,519	5.4.20 £ 257,414 206,824 (1,140) 55,198 (55,505) 198,844 (25,880) 635,755

ANALYSIS OF CHANGES IN NET DEBT

	At 6/4/20	Cash flow	At 5/4/21
	£	£	£
Net cash
Cash at bank and in hand	693,344	(141,097)	552,247
	693,344	(141,097)	552,247
Debt
Debts falling due within 1 year	(98,008)	(375,424)	(473,432)
Debts falling due after 1 year	(1,567,101 )	475,286	(1,091,815 )
	(1,665,109 )	99,862	(1,565,247 )
Total	(971,765)	(41,235)	(1,013,000 )

The notes form part of these financial statements

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. GENERAL INFORMATION

Gurdwara Leamington and Warwick is an unincorporated association and a registered charity regulated by the Charity Commission for England and Wales. The charity's registered number and registered office address can be found on the Reference and Administrative Details page of these financial statements.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees are aware of the possible impact of COVID-19 in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these impacts. The trustees acknowledge that given the current rapid changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the trustees to represent a general inherent level of risk in relation to the going concern assumption which is not quantifiable at this time.

The trustees believe that the charity can meet its liabilities as they fall due and at the date of approving these financial statements, the trustees consider the going concern assumption to be still appropriate. As such the financial statements have been prepared on this basis.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Gift aid

Incoming resources from tax reclaims are included in the Statement of Financial Activities on a receipts basis.

Government grants

Government grants are accounted for under the accruals method as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Financial Activities in the same period as the related expenditure.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES - continued

Charitable activities

Charitable activities include expenditure associated with the operation of the temple and the community centre and include both the direct costs and support cost relating to these activities.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Each activity maintains separate accounting records to enable all costs to be apportioned accurately.

Governance costs

Governance costs are those incurred in connection with governance of the charity and its assets and compliance with constitutional and statutory requirements.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Directly attributable costs are allocated by resource, with the balance of expenditure allocated according to the proportion of hours worked on each resource.

Tangible fixed assets

The capitalisation of tangible fixed assets is considered on its merits as to whether it is a fixed asset irrespective of value.

Fixed assets are stated at their cost prices, less accumulated depreciation and less amounts recognised in respect of impairments. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life.

Land	- Not depreciated
Freehold property	- 2% on cost
Furniture and equipment	- 15% on reducing balance
Motor vehicles	- 25% on reducing balance

Freehold property represents the Gurdwara, a functional asset used for charitable purposes by the local Sikh community continuously throughout the year.

Investment property

Investment property is carried at fair value determined annually by the trustees based on advice from professional surveyors and derived from the current market rents and investment property yields for comparable real estate, adjusted for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Donations and grants payable

Grants and donations paid are included in the year they are paid for the purpose of promoting the Sikh religion in the local community.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES - continued

Fund accounting

Irrecoverable value added tax

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalent comprise cash at bank and in hand that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.

Borrowings

Bank loans are initially recorded at fair value, net of transaction costs and subsequently carried at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included as bank loan interest. Bank loans are classified as current liabilities unless there is an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The charity makes estimates and assumptions concerning the future. The trustees are also required to exercise judgement in the process of applying the charity's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the trustees have made the following judgements:

Investment property:

Critical estimates, assumptions and judgements relate to the determination of the carrying value of investment property at fair value through the Statement of Financial Activities. In determining this, the charity applies the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstances of the investment drives the valuation methodology.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

4. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations Donation boxes - Golak Gift aid Government grants Other income	5.4.21 £ 150,409 49,897 - 51,338 500 252,144	5.4.20 £ 414,543 166,299 172,831 - 440
		754,113

During the pandemic, the UK Government put in place the Coronavirus Job Retention Scheme to help organisations continue to employ staff where their service was no longer required due to the pandemic measures. This is the only Government assistance the charity received during the year.

5. INVESTMENT INCOME

Rents received 6. CHARITABLE ACTIVITIES COSTS Operations of the Temple Teaching and educational activities Governance costs 7. GRANTS PAYABLE Charitable grants and donations	Direct Costs £ 202,209 588 - 202,797	5.4.21 £ - Support costs (see note 8) £ 49,571 - 7,469 57,040 5.4.21 £ -	5.4.20 £ 55,505 Totals £ 251,780 588 7,469	5.4.20 £ 55,505
			259,837
			5.4.20 £ 2,800

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

8. SUPPORT COSTS

SUPPORT COSTS
Governance Finance costs £ £ Operations of the Temple 49,571 - Governance costs - 7,469 49,571 7,469 AUDITORS' REMUNERATION 5.4.21 £ Fees payable to the charity's auditors for the audit of the charity's financial statements 3,240	Totals £ 49,571 7,469
	57,040
	5.4.20 £ 3,060

9. AUDITORS' REMUNERATION

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2021 nor for the year ended 5 April 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 5 April 2021 nor for the year ended 5 April 2020.

11. STAFF COSTS

Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Office and administration	5.4.21 £ 77,025 2,187 1,787 80,999 5.4.21 4	5.4.20 £ 93,118 2,723 1,713
		97,554
		5.4.20 4

No employees received emoluments in excess of £60,000.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Charitable activities Operations of the Temple Teaching and educational activities Charitable grants and donations Governance costs Other expenditure Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 13. TANGIBLE FIXED ASSETS Freehold property £ COST At 6 April 2020 9,223,417 Additions 15,016 At 5 April 2021 9,238,433 DEPRECIATION At 6 April 2020 2,039,285 Charge for year 175,613 At 5 April 2021 2,214,898 NET BOOK VALUE At 5 April 2021 7,023,535 At 5 April 2020 7,184,132	12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Charitable activities Operations of the Temple Teaching and educational activities Charitable grants and donations Governance costs Other expenditure Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 13. TANGIBLE FIXED ASSETS Freehold property £ COST At 6 April 2020 9,223,417 Additions 15,016 At 5 April 2021 9,238,433 DEPRECIATION At 6 April 2020 2,039,285 Charge for year 175,613 At 5 April 2021 2,214,898 NET BOOK VALUE At 5 April 2021 7,023,535 At 5 April 2020 7,184,132	ACTIVITIES Unrestricted funds £ 754,113 55,505 809,618 334,420 5,120 2,800 4,180 205,684 552,204 257,414 6,668,380 6,925,794 Furniture and equipment £ 650,321 15,485 665,806 435,382 32,827 468,209 197,597 214,939		Restricted fund £ - - - - - - - - - - - - Motor vehicles £ 23,578 - 23,578 16,118 1,865 17,983 5,595 7,460		Total funds £ 754,113 55,505
						809,618 334,420 5,120 2,800 4,180 205,684
						552,204
						257,414 6,668,380
						6,925,794
						Totals £ 9,897,316 30,501 9,927,817 2,490,785 210,305 2,701,090 7,226,727 7,406,531

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

13. TANGIBLE FIXED ASSETS - continued

Included in cost or valuation of land and buildings is freehold land of £457,786 (2020 - £442,770) which is not depreciated.

14. INVESTMENT PROPERTY

INVESTMENT PROPERTY
FAIR VALUE At 6 April 2020 and 5 April 2021 NET BOOK VALUE At 5 April 2021 At 5 April 2020	£ 500,000
	500,000
	500,000

The holding trustees consider that the carrying value of the investment properties is a close approximation to the current market value.

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors Prepayments and accrued income CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 18) Trade creditors Taxation and social security Other creditors	5.4.21 £ 1,344 9,823 11,167 5.4.21 £ 473,432 6,999 948 9,151 490,530		5.4.20 £ - 1,859
			1,859
			5.4.20 £ 98,008 6,377 1,094 3,360
		108,839

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 18) LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank loans Amounts falling between one and two years: Bank loans - 1-2 years Amounts falling due between two and five years: Bank loans - 2-5 years Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal	5.4.21 £ 1,091,815 5.4.21 £ 473,432 77,993 369,400 644,422	5.4.20 £ 1,567,101
		5.4.20 £ 98,008
		101,302
		316,200
		1,149,599

18. LOANS

Bank loans comprise a 5 year 3.31% per annum fixed rate loan and a variable rate loan repayable by 03 December 2033. The variable rate loan was settled in full on 23 August 2021.

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

		5.4.21	5.4.20
		£	£
	Within one year	-	571
20.	SECURED DEBTS
	The following secured debts are included within creditors:
		5.4.21	5.4.20
		£	£
	Bank loans	1,565,247	1,665,109

The bank loan is secured by way of a legal charge over the following assets:

a. Freehold land and buildings at the Gurdwara Sahib Leamington and Warwick at Tachbrook Park Drive, Warwick, CV34 6RH; and

b. Freehold buildings at the rear of the Gurdwara Sahib Leamington and Warwick at Tachbrook Park Drive, Warwick, CV34 6RH;

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets Investments Current assets Current liabilities Long term liabilities	Unrestricted funds £ 7,226,727 500,000 563,414 (490,530) (1,091,815 ) 6,707,796	Restricted fund £ - - - - - -	5.4.21 Total funds £ 7,226,727 500,000 563,414 (490,530) (1,091,815 ) 6,707,796	5.4.20 Total funds £ 7,406,531 500,000 695,203 (108,839) (1,567,101 ) 6,925,794

22. MOVEMENT IN FUNDS

	At	Net movement	Transfers	At
	6.4.2020	in funds	between funds	5.4.2021
	£	£	£	£
Unrestricted funds
General fund	684,372	(7,693)	(130,363)	546,316
Designated funds	6,241,422	(210,305)	130,363	6,161,480

	6,925,794	(217,998)	-	6,707,796

TOTAL FUNDS	6,925,794	(217,998)	-	6,707,796


Net movement in funds included in the above	are as follows:
		Incoming	Resources	Movement
		resources	expended	in funds
		£	£	£
Unrestricted funds
General fund		252,144	(259,837)	(7,693)
Designated funds		-	(210,305)	(210,305)

		252,144	(470,142)	(217,998)

TOTAL FUNDS		252,144	(470,142)	(217,998)

Comparatives for movement in funds

	At	Net movement	Transfers	At
	6.4.2019	in funds	between funds	5.4.2020
	£	£	£	£
Unrestricted funds
General fund	322,736	463,098	(101,462)	684,372
Designated funds	6,345,644	(205,684)	101,462	6,241,422

	6,668,380	257,414	-	6,925,794

TOTAL FUNDS	6,668,380	257,414	-	6,925,794

Comparative net movement in funds included in the above are as follows:

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

22. MOVEMENT IN FUNDS - continued

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	809,618	(346,520)	463,098
Designated funds	-	(205,684)	(205,684)

	809,618	(552,204)	257,414

TOTAL FUNDS	809,618	(552,204)	257,414

Funds

The charity has the following types of funds as follows:

Unrestricted fund:

These are funds available for general purposes which the trustees are free to use in accordance with the charitable objects.

Designated fund:

These are also funds available for general purposes however, the trustees have chosen such funds to be used for a specific purpose.

At the balance sheet date, total unrestricted funds of £6,707,796 (2020: £6,925,794) comprises designated funds of £6,161,480 (2020: £6,241,422) to represent freehold properties at Tachbrook Park and Queensway together with any improvements, fixtures and fittings and fixed assets in general. The trustees have given consideration to the levels of free reserves currently held and expect these levels to continue during the forthcoming financial year.

23. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 5 April 2021.

24. POST BALANCE SHEET EVENTS

The charity made an insurance claim for business interruption due to the COVID-19 pandemic for which it received £25,000 in June 2021.

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

INCOME AND ENDOWMENTS Donations and legacies Donations Donation boxes - Golak Gift aid Government grants Other income Investment income Rents received Total incoming resources EXPENDITURE Charitable activities Wages Social security Pensions Rent Rates and water Insurance Light and heat Telephone Postage and stationery Advertising Sundries Hire of equipment Repairs and maintenance Motor running expenses Teaching classes and education Cleaning and refuse collection Grants to institutions Other expenditure Freehold property Motor vehicles Depn of furniture & equipment Profit on sale of tangible fixed assets	5.4.21 £ 150,409 49,897 - 51,338 500 252,144 - 252,144 77,025 2,187 1,787 - 6,073 7,199 48,430 1,867 5,662 180 926 809 29,913 685 588 19,466 - 202,797 175,613 1,865 32,827 - 210,305	5.4.20 £ 414,543 166,299 172,831 - 440 754,113 55,505 809,618 93,118 2,723 1,713 28,850 3,816 7,760 77,209 6,328 3,428 1,405 5,138 - 35,197 885 5,120 11,008 2,800 286,498 175,613 2,487 28,724 (1,140) 205,684

Support costs

This page does not form part of the statutory financial statements

GURDWARA LEAMINGTON AND WARWICK TRADING AS GURDWARA SAHIB LEAMINGTON AND WARWICK SIKH TEMPLE (COMBINED)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
Support costs Finance Bank charges Bank loan interest Governance costs Auditors' remuneration Accountancy fees Legal and other professional fees Total resources expended Net (expenditure)/income	5.4.21 £ 318 49,253 49,571 3,240 2,560 1,669 7,469 470,142 (217,998)	5.4.20 £ 644 55,198
		55,842 3,060 1,120 -
		4,180
		552,204
		257,414

This page does not form part of the statutory financial statements