Charity registration number 1102974
CHONYI WISDOM CHARITY
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2022
CHONYI WISDOM CHARITY
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Ms J Hollingbery |
|---|---|
| Mr W Templer | |
| Mr R Hollingbery | |
| Charity number | 1102974 |
| Principal address | Little Halse |
| Hill Road | |
| Sutton Veny | |
| Wiltshire | |
| BA12 7AT | |
| Independent examiner | Royce Peeling Green Limited |
| The Copper Room | |
| Deva City Office Park | |
| Trinity Way | |
| Manchester | |
| M3 7BG | |
| Bankers | C Hoare & Co |
| 37 Fleet Street | |
| Temple | |
| London | |
| EC4P 4DQ | |
| Solicitors | Addleshaw Goddard |
| Sovereign House | |
| PO Box 8 | |
| Sovereign Street | |
| Leeds | |
| LS1 1HQ | |
| Investment advisors | Cazenove Capital |
| 1 London Wall Place | |
| London | |
| EC2Y 5AU |
CHONYI WISDOM CHARITY
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 10 |
CHONYI WISDOM CHARITY
TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2022
The trustees present their annual report and financial statements for the year ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The Trustees confirm that they have complied with their duty, in section 17 of the Charities Act 2011, to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties. The public benefit of the Chonyi Wisdom Charity, in the context of the charities commission guidance, relates to benefit of advancing religion. Further to providing funds for building the Shedra at Palpung Sherabling monastery in Himachal Pradesh, North India the trustees have decided that they will fund the building of a Buddhist Relic Shrine in Bodhgaya, Bihar State, India. It will house a sacred relic related to the Buddha and will become a place of pilgrimage. It will also incorporate a teaching hall and accommodation for a small number of resident monks. The teaching hall will be used for educational programmes for both foreign students of Buddhism from all over the world as well as monks and nuns from monasteries in India and the Himalayan region.
The objectives of the charity are to provide support to such institutions and purposes as are charitable according to the Laws of England and Wales in such a manner and such proportions as the trustees from time to time in their absolute discretion think fit.
There are no restrictions imposed on the investment policy by the trust deed. The Trustees make the investments in accordance with the Trustees Act 2000. The investment strategy is set by the Trustees and takes account of recent demands for funds. The Trustees consider the income requirements, the risk profile and the investment manager's view of the market prospects in the medium term. The strategy is reviewed with the investment manager annually.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Investment powers are governed by the Trust Deed which permits the funds to be invested in any lawful manner (but to invest only after obtaining advice from a financial expert and having regard to the suitability of investments and need for diversification). The funds of the charity are currently held in bank accounts with the appointed investment advisors. The Trustees will continue to monitor and review their policy on an annual basis.
Financial review
The charity's income for the year ended 5 April 2022 was £350,786 (2021: £1,130,155). The total expenditure was £361,215 (2021: £572,396) resulting in a gain of £10,429 before investment gains of £nil (2021:£94,030)
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
All business in India has been severely impacted by Covid 19. Palpung Munishasan Dharmachakra Sangh- the charity running the project we are financing in India has advised us that no further activity will take place until the situation has eased so all our activity is on hold for the time being.
The Trustees' policy is to maintain unrestricted funds to fund projects, within the charity's objects, as they arise. Total funds amount to £1,360,648 all of which is unrestricted (2021: £1,371,077).
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CHONYI WISDOM CHARITY
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Plans for future periods
Funds have been applied to the charity Palpung Munishasan Dharmachakra Sangh (with whom we built the Shedra in Northern Inda) to aquire land in Bodhgaya India with plans to build a Buddhist Relic Shrine which will house a sacred relic related to the Buddha and will become a place of pilgrimage. There will also be accommodation for a small number of resident monks as well as a teaching hall for international students and monks and nuns from all over India and the Himalayan region. Progress has been slow due to a Covid related backlog in registering the land with the regional government. The project will start as soon as the necessary registration has been processed.
Structure, governance and management
Chonyi Wisdom Charity is a registered charity, number 1102974, and is constituted under a Trust deed.
The statutory power of appointing Trustees is vested in Joanna Hollingbery during her lifetime. There shall be a minimum of three Trustees.
The Trustees meet twice yearly to agree the broad strategy and areas of activity for the Charity, including grant making, investment and risk management.
The Trustees must apply the income of the Charity for any institutions and purposes as are charitable (according to the laws of England and Wales) as they think fit. They may also use the capital to promote those objects
The trustees who served during the year and up to the date of signature of the financial statements were: Ms J Hollingbery Mr W Templer Mr R Hollingbery
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed
The Trustees comprise the key management personnel of the charity in charge of directing, controlling, running and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received any remuneration or reimbursement of expenses during the year
The trustees report was approved by the Board of Trustees.
Ms J Hollingbery Trustee
27 November 2022
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CHONYI WISDOM CHARITY
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CHONYI WISDOM CHARITY
I report to the trustees on my examination of the financial statements of Chonyi Wisdom Charity (the charity) for the year ended 5 April 2022.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Carolyn Dutton BFP FCA FCCA FMAAT Royce Peeling Green Limited
The Copper Room Deva City Office Park Trinity Way Manchester M3 7BG
Dated: 6 December 2022
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CHONYI WISDOM CHARITY
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 5 APRIL 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 350,146 | 1,127,759 |
| Investments | 3 | 640 | 2,396 |
| Total income | 350,786 | 1,130,155 | |
| Expenditure on: | |||
| Raising funds | 4 | - | 164 |
| Charitable activities | 5 | 369,320 | 538,353 |
| Total expenditure | 369,320 | 538,517 | |
| Net gains/(losses) on investments | 8 | - | 94,030 |
| Net (expenditure)/income for the year/ | |||
| Net (outgoing)/incoming resources | (18,534) | 685,668 | |
| Other recognised gains and losses | |||
| Other gains or losses | 9 | 8,105 | (33,879) |
| Net movement in funds | (10,429) | 651,789 | |
| Fund balances at 6 April 2021 | 1,371,077 | 719,288 | |
| Fund balances at 5 April 2022 | 1,360,648 | 1,371,077 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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CHONYI WISDOM CHARITY
BALANCE SHEET
AS AT 5 APRIL 2022
| Notes Current assets Debtors 10 Investments 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Income funds Unrestricted funds |
2022 £ £ - 551,105 816,928 1,368,033 (7,385) 1,360,648 1,360,648 1,360,648 |
2021 £ £ 56,977 550,000 771,655 1,378,632 (7,555) 1,371,077 1,371,077 1,371,077 |
2021 £ £ 56,977 550,000 771,655 1,378,632 (7,555) 1,371,077 1,371,077 1,371,077 |
|---|---|---|---|
| 1,371,077 | |||
| 1,371,077 |
The financial statements were approved by the Trustees on 27 November 2022
Ms J Hollingbery Trustee
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CHONYI WISDOM CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
The charity is an unincorporated trust registered with the Charity Commission (registered number 1102974) in England and Wales. It's registered office is Little Halse, Hill Road, Sutton Veny, Wiltshire, BA12 7AT
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
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CHONYI WISDOM CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Costs of raising funds are foreign exchange movements and charges from the investment managers.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.8 Taxation
The trust is a registered charity and accordingly exempt from taxation on its income and gains where they are applied for charitable purposes. Irrecoverable VAT is charged to the relevant expenditure.
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CHONYI WISDOM CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.9 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the Statement of Financial Activities.
1.10 Fund Accounting
General funds are u restricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 350,146 | 1,127,759 |
| Investments | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Income from listed investments | - | 1,691 |
| Interest receivable | 640 | 705 |
| 640 | 2,396 |
3 Investments
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CHONYI WISDOM CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
4 Raising funds
| Investment managers fees Charitable activities Audit fees Bank charges Professional and accountancy fees Grant funding of activities (see note 6) Grants payable Grants to institutions: Palpung Munishasan Dharmachakra The Yongey Foundation |
Total Unrestricted funds 2022 2021 £ £ - 164 - 164 2022 2021 £ £ - 1,440 427 496 4,740 12,110 5,167 14,046 364,153 524,307 369,320 538,353 2022 2021 £ £ 364,153 395,726 - 128,581 364,153 524,307 |
Total Unrestricted funds 2022 2021 £ £ - 164 - 164 2022 2021 £ £ - 1,440 427 496 4,740 12,110 5,167 14,046 364,153 524,307 369,320 538,353 2022 2021 £ £ 364,153 395,726 - 128,581 364,153 524,307 |
|---|---|---|
| 164 | ||
| 2021 £ 1,440 496 12,110 |
||
| 14,046 524,307 |
||
| 538,353 | ||
| 2021 £ 395,726 128,581 |
||
| 524,307 |
5 Charitable activities
6 Grants payable
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. There were no employees of the charity. The charity paid trustee indemnity insurance of £nil ( 2021 - £nil).
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CHONYI WISDOM CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 8 | Net gains/(losses) on investments | ||
|---|---|---|---|
| Total | Unrestricted | ||
| funds | |||
| 2022 | 2021 | ||
| £ | £ | ||
| Gain/(loss) on sale of investments | - | 94,030 | |
| 9 | Other gains or losses | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Foreign exchange (losses)/gains | (8,105) | 33,879 | |
| 10 | Debtors | ||
| 2022 | 2021 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | - | 56,500 | |
| Prepayments and accrued income | - | 477 | |
| - | 56,977 | ||
| 11 | Current asset investments | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Unlisted investments | 551,105 | 550,000 | |
| 12 | Creditors: amounts falling due within one year | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Other creditors | 4,745 | 4,745 | |
| Accruals and deferred income | 2,640 | 2,810 | |
| 7,385 | 7,555 |
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