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2020-09-30-accounts

Tanaka UK Japan Educational Foundation Limited

Trustees' Report and Independently Examined Financial Statements For the Year Ended 30 September 2020

(Charity Commission No. 1137714) (Company No. 07032612)

Tanaka UK Japan Educational Foundation Limited Contents for the Financial Statements For the Year Ended 30 September 2020

Reference and Administrative Information
Trustees' Report
Independent Examiners' Report
Statement of Financial Activities
Balance Sheet
Notes to the Financial Statements		 PAGE
1
2-5
6
7
8
9-14

Tanaka UK Japan Educational Foundation Limited Reference and Administrative Information For the Year Ended 30 September 2020

Charity Number: 1137714
Company Number: 07032612
Trustees/Directors: Mrs Makiko Ueshima
Mrs Kimiko Taki
Mr Giles Henderson
Ms Fumiko Danno
Mr Takeshi Ueshima
Company Secretary: Mr Takeshi Ueshima
Principal Office: Flat 7 Elton Lodge
20-22 Florence Road
London
W5 3TX
Registered Office: 10 Queen Street Place
London
EC4R 1BE
Solicitors: Bates Wells and Braithwaite London LLP
10 Queen Street Place
London
EC4R 1BE
Accountants: Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Property Managers: Lambert Smith Hampton
City Gate East
Tollhouse Hill
Nottingham
NG1 5FS

1

Tanaka UK Japan Educational Foundation Limited Trustees' Report For the Year Ended 30 September 2020

The Trustees, who are also Directors of the Charity for the purposes of the Companies Act 2006, present their annual report and the financial statements for the year ended 30 September 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (revised January 2015).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Introduction

Tanaka UK Japan Education Foundation Limited (the "Company") was incorporated on 28 September 2009 and was established to support and fund the advancement of education in Japan, the United Kingdom, and other English speaking countries. The Company was registered as a Charity on 2 September 2010.

Governing Document

Tanaka UK Japan Educational Foundation Limited is a Company limited by guarantee and has no share capital. It is constituted under its Memorandum and Articles of Association dated 28 September 2009 as amended by two Special Resolutions dated 22 July 2010 (registered at Companies House on 6 August 2010) and 7 July 2016 (registered at Companies House on 14 July 2016). It is a registered Company under Company number 07032612 and a registered Charity under Charity registration number 1137714.

Recruitment and Training of Trustees

In accordance with the Memorandum and Articles of Association, the Trustees are appointed by the members of the Company. The Trustees have a limited power to appoint Trustees to serve until the following Annual General Meeting.

The Trustees during the year, who are also the Directors of the Company, are shown on page one.

The Trustees shall never be less than three in number and there are currently five.

Management

The Trustees are ultimately responsible for the policies, activities, and assets of the Company.

The Trustees meet at least once a year and are responsible for reviewing the annual accounts, policies and procedures in respect of internal financial controls, and the policy in relation to investments.

Risk Management

The Trustees have examined the major strategic, business, and operational risks that the Company is exposed to and these are reviewed regularly. The Trustees are satisfied that adequate procedures are in place to mitigate exposure to these risks, although it is recognised that systems can only provide reasonable, not absolute, assurance. They have identified the following risks and actions taken to mitigate such risks:

Risk identified Action taken to mitigate the risk

2

Tanaka UK Japan Educational Foundation Limited Trustees' Report For the Year Ended 30 September 2020

- Grant/donations made will not be spent - Each grant is made subject to the Company's standard terms and
for the charitable purposes for which they conditions of grant, which provide robust protections and remedies for
were made. the Company, including clawback of funds. In addition, the Trustees
undertake proportionate checks on each potential recipient in advance
so that they can be satisfied as to their suitability. The Trustees also
actively review their active grants and require regular updates and
reports from recipients to ensure the grant monies are being used as
envisaged (which are requirements under the conditions of grant), and
so that the Company can take action where necessary.
- Internal control risks. - Structured procedures for authorisation of all transactions and
projects.
- Risks related to the maintenance and - The Company obtains relevant legal and insurance advice and other
upkeep of the occupied premises in appropriate consultancy support as needed from time to time to ensure
Oxford. any relevant risks to the Company are properly considered and
addressed. In relation to any works undertaken at the premises, only
appropriate well-established contractors of good standing will be used
with appropriately robust legal contractual documentation underpinning
the works which protect the Company's interests.
- Covid-19 - The Trustees have considered the potential impact of the coronavirus,
and the various measures taken to contain it, on the operations of the
charity in the near future. In the event income is significantly impacted
then the charity will consider cost cutting measures in order to ensure
long term viability.

Key Management Personnel

The board of Trustees and the senior management team comprise the key management personnel of the Company in charge of directing, controlling, running, and operating the Company on a day to day basis. All Trustees give their time freely and no trustee received remuneration in the year. Details of Trustees' expenses and related party transactions are disclosed in notes 10 and 11 to the accounts.

Investment Policy and Review

The Company has power to invest in such assets as it sees fit. The Company's policy has been to retain the income (as cash on interest bearing accounts) in light of the volatility affecting other forms of investment. The markets became stable in October 2015 and the Trustees started to invest some cash in an Equity/Bond fund on 14 October 2015 run by Vanguard.

The returns from the Company's investments were broadly in line with the adopted benchmark. The Trustees actively monitor the results achieved by Vanguard and are content that they understand the reason for the historic performance levels. They believe that an appropriate investment strategy is in place for the medium to long term.

OBJECTIVES, AIMS AND ACTIVITIES

Objectives

The objectives of the Company are the advancement of education of the public in Japan, the United Kingdom, and other English speaking countries by the provision of educational or financial support (including, but without prejudice to, the generality of the foregoing making grants, bursaries, or scholarships) to the providers of education or students undertaking studies in the Japanese or English language, literature, culture, arts, or science.

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Tanaka UK Japan Educational Foundation Limited Trustees' Report For the Year Ended 30 September 2020

Grant-Making Policy

Grants are made in line with the objectives of the Company to education providers, such as universities and schools, to achieve the Company's educational objectives for public benefit. The beneficiaries of the Company's grant-making programmes are ultimately students undertaking studies in the Japanese or English language, literature, culture, arts, or sciences.

Grant-Making Activities

The Trustees have continued to explore grant-making opportunities and considered a number of applications this year. In particular, a grant has been made in furtherance of the Charity's purposes to University of Oxford, Pembroke College (the Oriental Institute) - for research fellowships, scholarships and an academic symposium.

FINANCIAL REVIEW

Since July 2014 the Company has been a tenant of Tanaka Ikueikai Educational Foundation and entitled to receive rent on the property (The Old Building and The Annex of 66 Banbury Road, Oxford) until 9 March 2027 and 6 May 2022 (respectively) in respect of sub-leases granted to schools and other education providers. The Trustees of Tanaka UK Japan Educational Foundation Limited have not recorded the value of these leases on the balance sheet but record the rental income each year through its statement of financial activities.

All funds are unrestricted. It is intended that the investment portfolio will generate income which will be used towards satisfying the grant-making policy in accordance with the objectives of the Company.

Total income in the period ending 30 September 2020 was £207,726 (2019: £276,311).

The financial statements show investments at market value. The unrealised and realised gains and losses on the revaluation of investment assets for the year was a net gain of £2,018 (2019: £85,499).

Reserves Policy

The Company’s reserves comprise unrestricted funds. Free reserves are unrestricted funds less amounts tied up in fixed assets, which are freely available to spend on any of the Company's purposes. Free reserves provide the working capital of the Company, whilst providing liquid funds in case of any unexpected future deficits. The Trustees have reviewed the requirement for free reserves and based on their review they need an amount at least equal to operating expenditure. The Trustees have examined the Company's requirements for reserves in light of the main risks to the organisation.

The Company has unrestricted reserves of £2,146,767 as at 30 September 2020 (2019: £2,042,087) and free reserves of £636,994 as at 30 September 2020 (2019: £558,728). The level of free reserves as at 30 September 2020 equates to in excess of one years’ running costs.

PUBLIC BENEFIT STATEMENT

The overarching objective of the Trustee grant-making strategy is to benefit a wide cross-section of the community through supporting suitable educational providers. The Trustees have referred to the Charity Commission's guidance on public benefit when reviewing their aims and objectives and planning their future activities. The Trustees believe that their strategic grant-making activities meet the objective of benefiting a wide cross-section of the community. The Trustees ensure that a robust monitoring system is in place to establish the benefit derived from each grant in order to be confident of meeting their public benefit obligations.

In accordance with their duties to provide public benefit in furtherance of the Company's charitable purposes, honouring the guidelines of the Charity Commission, the Trustees have continued to review potential grant-making opportunities this year and, in particular, have made one significant grant as detailed above.

4

Tanaka UK Japan Educational Foundation Limited Trustees' Report For the Year Ended 30 September 2020

STATEMENT OF TRUSTEES' REPONSIBILITIES

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. The Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit and loss of the Company for that period. In preparing these financial statements, the Trustees are required to:

• prepare the financial statements on a consistent and ongoing basis unless it is inappropriate to presume that the Company will continue to operate.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable the Trustees 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 Trustees is aware at the time the report is approved:

• there is no relevant information of which the Company's independent examiners are unaware; and

• the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant information.

Approved by the Trustees and signed on behalf of the Trustees by:

9 June, 2021 ……………………………. ……………………………. Mr Takeshi Ueshima Date on behalf of the Trustees

5

Tanaka UK Japan Educational Foundation Limited Independent Examiner's Report to the Trustees of Tanaka UK Japan Educational Foundation Limited For the Year Ended 30 September 2020

I report on the accounts of the Company for the year ended 30 September 2020 which are set out on pages 7 to 14.

Responsibilities and Basis of Report

As the Trustees (who are also the Charity's Directors) of the Company you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your Charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

Since the Company's gross income exceeded £250,000 your examiner must be a member or 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 ICAEW, which is one of the listed bodies.

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:

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 accounts to be reached.

…………………………….

Karen Wardell, FCCA, ICAEW For and on behalf of Moore Kingston Smith LLP Chartered Accountants

10 June 2021

…………………………….

Orbital House 20 Eastern Road Romford Essex RM1 3PJ

6

Tanaka UK Japan Educational Foundation Limited Statement of Financial Activities For the Year Ended 30 September 2020

Notes
Income from:
Investments
3
Expenditure on:
Raising funds
4
Charitable activities
5
Net incoming resources before
other recognised gains and losses
Gain on investment assets
7
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
13		 2020
Total
Funds
£
207,726
207,726
32,840
72,224
105,064
102,662
2,018
104,680
2,042,087
2,146,767		 2019
Total
Funds
£
276,311
276,311
19,813
131,695
151,508
124,803
85,499
210,302
1,831,785
2,042,087

All activities are continuing. There are no recognised gains or losses other than as disclosed above.

The Statement of Financial Activities incorporates an income and expenditure account.

The notes on pages 9 to 14 form part of the financial statements.

7

Tanaka UK Japan Educational Foundation Limited Balance Sheet For the Year Ended 30 September 2020

Notes
Fixed assets
Investments
7
Current assets
Cash at bank
Current liabilities
8
Net current assets
Net assets
Represented by
Unrestricted funds
13
Creditors: amounts falling due within one		 2020
£
652,062		 2020
£
1,509,773
636,994		 2019
£
625,454		 2019
£
1,483,359
558,728
652,062 625,454
15,068 66,726
15,068 66,726
2,146,767 2,042,087
2,146,767 2,042,087
2,146,767 2,042,087

For the financial year ended 30 September 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The Members have not required the Company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with requirements of the Act with respect to accounting records and the preparation of financial statements.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime within part 15 of the Companies Act 2006.

The financial statements were approved for issue by the Board on 2021 and signed on its 9 June behalf by:

…………………………….

Mr Takeshi Ueshima on behalf of the Trustees

Company Registration No. 07032612

8

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements For the Year Ended 30 September 2020

1. Accounting policies

Company information

Tanaka UK Japan Educational Foundation Limited is a private company limited by guarantee, domiciled and incorporated in England and Wales. The registered office 10 Queen Street Place, London, EC4R 1BE and the principal office is Flat 7 Elton Lodge, 20-22 Florence Road, London, W5 3TX.

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of listed investments which are included at their market value. The financial statements have been prepared in accordance with the 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 effective 1 January 2015 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.

The Trustees confirm that the Company meets the definition of a public entity under FRS 102.

(b) Incoming resources

All incoming resources are included in the Statement of Financial Activities when the Company is entitled to receive the income and the amount can be quantified with reasonable accuracy. The following policies are applied to particular categories of income:

(c) Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes VAT, and is reported as part of the expenditure to which it relates:

(d) Going concern

The occurrence of the coronavirus which has expanded post year end is a global threat, however in our opinion it is not considered an event subsequent to the balance sheet date with a material effect on these financial statements to 30 September 2020. While the spread of the coronavirus has a negative impact on business activities, it is currently not possible to make a reliable estimate on the depth of the impact on business activities. At the time of approving the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

9

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements (continued) For the Year Ended 30 September 2020

1. Accounting policies (continued)

(e) Fixed asset investments

Investments are a form of basic financial instruments and are initially shown in the financial statements at market value. Changes in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.

Profits and losses on the realistion of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

(f) Financial instruments

The Company 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.

Basic financial assets, which include trade and other receivables, 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 market rate of interest.

(g) Cash and cash equivalents

Cash and cash equivalents includes 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.

(h) Unrestricted funds

These comprise those funds which the Trustees are free to use in accordance with the charitable objectives, which are shown on the Statement of Financial Activities and Balance Sheet. The Company does not maintain any other funds.

2. Estimates and judgements

In the application of the Company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The Trustees do not consider there to be any material estimates or judgements.

10

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements (continued) For the Year Ended 30 September 2020

3. Investment income

By virtue of subleases signed on 9 March 2012 and 20 December 2013 Tanaka UK Japan Educational Foundation Limited became the lessee of The Old Building and The Annex of 66 Banbury Road Oxford on 24 July 2014 and is entitled to receive rent on the property until 9 March 2027 and 6 May 2022 respectively, whereafter the leases will revert back to the Tanaka Ikueikai Educational Foundation. The Trustees of Tanaka UK Japan Educational Foundation Limited have not recorded the value of these leases on the balance sheet but record the rental income each year through the Company's Statement of Financial Activities.

During the year ended 30 September 2020 Tanaka UK Japan Educational Foundation Limited received the following income:

e:
Dividends
Rent - The Old Building
Rent - The Annex
Other income - Utility payments		 2020
2019
£
£
24,396
22,328
67,404
134,808
115,000
115,011
926
4,164
207,726
276,311

4. Raising funds

Property management charges
Repairs and maintenance		 2020
2019
£
£
3,906
19,813
28,934
-
32,840
19,813

5. Charitable activities

From 1 October 2019 to 30 September 2020 the Company made grants totalling £53,215 (2019: £106,134) to the institutions as listed below:

Grants made
Technos College
International House of Japan
Pembroke College
Support costs
Legal fees
Trustee remuneration
Trustee expenses
Governance costs
Accountancy fees
Independent examiner's fees
Bank charges		 2020
2019
£
£
-
64,069
10,000
-
43,200
42,065
53,200
106,134
12,245
14,847
1,000
1,000
731
3,608
13,976
19,455
1,900
2,312
3,092
3,725
56
69
5,048
6,106
72,224
131,695

11

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements (continued) For the Year Ended 30 September 2020

6. Membership

The Company is limited by guarantee and has five members; each member guarantees an amount not exceeding £10 in the event of the winding up of the Company.

7. Investment assets

Market Value b/fwd
Add:
Acquisitions at cost
Dividend income for the year
Net gains on revaluation
Historical cost
Material investments valued at more than 5% of the portfolio are:
Vanguard LifeStrategy
8. Creditors: Amounts falling due within one year
Accountancy fees
Deferred income (rent in advance)
Service charge		 2020
2019
£
£
1,483,359
1,375,532
-
-
24,396
22,328
2,018
85,499
1,509,773
1,483,359
1,128,071
1,128,071
1,509,773
100%
2020
2019
£
£
4,274
4,274
-
62,452
10,794
-
15,068
66,726

9. Movement in deferred income

9. Movement in deferred income
Deferred income brought forward
Incoming funds released to Statement of Financial
Activities
Amount deferred this year		 £
£
£
£
62,452
62,452
(62,452)
(62,452)
-
62,452
(62,452)
-
-
62,452
2020
2019
62,452

12

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements (continued) For the Year Ended 30 September 2020

10. Trustees' remuneration and expenses

Ms Fumiko Danno was remunerated £1,000 (2019: £1,000) during the year in relation to administration and management. Otherwise no Trustee or member of the management committee were paid any remuneration during the period.

Expenses were reimbursed to one (2019: three) Trustee in the year totalling £731 (2019: £11,608) relating to travel and accomodation costs.

No Trustee or other person related to the Company had any personal interest in any contact or transaction entered into by the Company during the period.

11. Related party transactions

During the year, the company paid £53,215 (2019: £106,134) to the Tanaka Ikueikai Educational Foundation (Technos College). The Tanaka Ikueikai Educational Foundation owns 99 out of 100 membership 'shares' in Technos International (Oxford) Limited, a Company under common control.

12. Analysis of net assets between funds

Unrestricted Unrestricted
Funds Total Funds Total
2020 2020 2019 2019
£ £ £ £
Fixed assets 1,509,773 1,509,773 1,483,359 1,483,359
Current assets 652,062 652,062 625,454 625,454
Current liabilities (15,068) (15,068) (66,726) (66,726)
2,146,767 2,146,767 2,042,087 2,042,087
13. Movement in funds
At 1 Incoming Outgoing At 30
October resources resources Transfers September
2019 2020
£ £ £ £ £
Unrestricted funds:
General funds 2,042,087 209,744 (105,064) - 2,146,767
Total funds 2,042,087 209,744 (105,064) - 2,146,767
Movement in funds in respect of the comparative period:
At 1 Incoming Outgoing At 30
October resources resources Transfers September
2018 2019
£ £ £ £ £
Unrestricted funds:
General funds 1,831,785 361,810 (151,508) - 2,042,087
Total funds 1,831,785 361,810 (151,508) - 2,042,087

13

Tanaka UK Japan Educational Foundation Limited Notes to the Financial Statements (continued) For the Year Ended 30 September 2020

14. Financial commitments

The charity has financial commitments of £239,135 (2020: £nil) in relation to property repair costs.

15. Comparative Statement of Financial Activities

All income and expenditure in relation to the prior period was unrestricted.

14