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2021-07-31-accounts

Trustees’ Annual Report for the period

From 01/08/20 Period start date To 31/07/21 Period end date

Charity name: CONFUCIUS & TAO ASSOCIATION (UK)

Charity registration number: 1138997

Objectives and Activities

SORP reference
Summary of the purposes of
the charity as set out in its
governing document		 Para 1.17 The objects of the charity are:
1. To advance religion for the public benefit
by promoting Buddhism and the teachings
of the great Tao
2. To promote the mental or spiritual
improvement of the community for the
public benefit by sponsoring the teachings
of Confucius
3. To promote religious and racial harmony
for the public benefit by enhancing mutual
understanding amongst all races and
cultures in the United Kingdom
4. To relieve those in need by provision of
charitable, physical or moral assistance, for
the public benefit
Summary of the main
activities in relation to those
purposes for the public
benefit, in particular, the
activities, projects or
services identified in the
accounts.		 Para 1.17 and
1.19		 The trustees have considered their duty as outlined
in Section 4 of the Companies Act 2006 to have due
regard to the Charity Commission’s guidance on
public benefit. The purpose of the charity is
enshrined in its objectives as outlined above.
Statement confirming
whether the trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit		 Para 1.18 The trustees ensure that this purpose is carried out
for the public benefit by delivering a range of
suitable activities.

Additional information (optional) You may choose to include further statements where relevant about:

SORP reference Para 1.38 Policy on grant making Para 1.38

Policy on social investment including program related investment Para 1.38 Contribution made by volunteers Other

Achievements and Performance

SORP reference
Summary of the main
achievements of the charity,
identifying the difference the
charity’s work has made to
the circumstances of its
beneficiaries and any wider
benefits to society as a
whole.		 Para 1.20 During the period under review, the organisation
continued with its usual charitable activities as far
as able but due to COVID-19 all activities at the
charity’s premises from February 2020 onwards
until recently were disrupted. The Tea Bar have
been closed since January 2020 but there are plans
to reopen a rebranded Tea Bar called Lotus Bloom
Cafe in the near future
All charitable activities including fundraising were
moved online where possible including seminars,
praying and chanting.
There was no further progress on the re-submission
of the application to the local Council for the
change of use of the property. All formal activities
relating to using the premises as a place of worship
until the outcome of the future resubmission of the
planning permission is known have continued to be
suspended during the year to date.
The charity operates in London but has informal
links with other independent charity organisations
based in Birmingham and Glasgow. Fundraising was
carried out in those locations for the charity.

Additional information (optional) You may choose to include further statements where relevant about:
Achievements against
objectives set		 Para 1.41
Performance of fundraising
activities against objectives
set		 Para 1.41
Investment performance
against objectives		 Para 1.41
Other

Financial Review

Financial Review
Review of the charity’s
financial position at the end
of the period		 Para 1.21 The charity had a surplus of £13,321 ( 2020 Deficit
£13,843) ) for the year. Total incoming resources for
the year amounted to £78,158 ( 2020 £62,324 ). As
31 July 2021, the total reserves of the charity
amounted to £416,129 (2020 £407,290 ).
Statement explaining the
policy for holding reserves
stating why they are held		 Para 1.22 The trustees have examined the requirement for
free reserves which are those unrestricted funds
not invested in fixed assets, designated for special
purposes or otherwise committed.
Amount of reserves held Para 1.22 The trustees consider that there are sufficient
unrestricted funds to carry out the activities of the
charity and to meet its running costs for at least 6
months ahead.
Reasons for holding zero
reserves		 Para 1.22
Details of fund materially in
deficit		 Para 1.24
Explanation of any
uncertainties about the
charity continuing as a going
concern		 Para 1.23 The trustees have assessed the Going Concern
position of the Charity in the light of COVID-19 and
appropriate measures have continued to be in force
to ensure the safety of all supporters and those who
have dealings with the organisation.

Additional information (optional) You may choose to include further statements where relevant about:
The charity’s principal
sources of funds (including
any fundraising)		 Para 1.47
Investment policy and
objectives including any
social investment policy
adopted		 Para 1.46
A description of the principal
risks facing the charity		 Para 1.46
Other

Structure, Governance and Management

Description of charity’s
trusts:
Type of governing document
(trust deed, royal charter)		 Para 1.25 Trust Deed/Memorandum
How is the charity
constituted?
(e.g unincorporated
association, CIO)		 Para 1.25 The trustees are responsible for the general control
and management of the charity. One person is
appointed as the Chairperson of the trustees and
duties and responsibilities are allocated amongst
the trustees and members.
Trustee selection methods
including details of any
constitutional provisions e.g.
election to post or name of
any person or body entitled
to appoint one or more
trustees		 Para 1.25 The trustees are responsible for the general control
and management of the charity. One person is
appointed as the Chairperson of the trustees and
duties and responsibilities are allocated amongst
the trustees and members. Meetings of the trustees
are held throughout the year to deal with matters
relating to the running of the charity and activities
for members. The charity does not have any
employees as its work is carried out by the trustees
and its members and volunteers.
Each of the above trustees is also a member and
director of the company and each is liable to
contribute an amount not exceeding £1 in the event
of the company being wound up.

Additional information (optional) You may choose to include further statements where relevant about:
Policies and procedures
adopted for the induction
and training of trustees		 Para 1.51
The charity’s organisational
structure and any wider
network with which the
charity works		 Para 1.51
Relationship with any related
parties		 Para 1.51
Other

Reference and Administrative details

Charity name CONFUCIUS & TAO ASSOCIATION (UK)
Other name the charity uses
Registered charity number 1138997
Charity’s principal address 47 SHERNHALL STREET, WALTHAMSTOW, LONDON,
E17 3EY

Names of the charity trustees who manage the charity

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20		 Trustee name Office (if any) Dates acted if not for whole
**year **		 Name of person (or body) entitled
to appoint trustee (ifany)
HUI GOH PHUA 47 SHERNHALL
STREET,
WALTHAMSTOW,
LONDON,
E17 3EY
MR MUN HOONG
CHIN		 47 SHERNHALL
STREET,
WALTHAMSTOW,
LONDON,
E17 3EY
CAI YING HE 47 SHERNHALL
STREET,
WALTHAMSTOW,
LONDON,
E17 3EY
MR TAK YEUNG
CHEUNG		 47 SHERNHALL
STREET,
WALTHAMSTOW,
LONDON,
E17 3EY

– Corporate trustees names of the directors at the date the report was approved Director name MR MUN HOONG CHIN

Name of trustees holding title to property belonging to the charity

Trustee name Dates acted if not for whole year
HUI GOH PHUA
CAI YING HE
TAK YEUNG CHEUNG

Funds held as custodian trustees on behalf of others

Description of the assets
held in this capacity
Name and objects of the
charity on whose behalf the
assets are held and how this
falls within the custodian
charity’s objects		 The charity was successful in purchasing the Freehold property at The
Lord Brroke,47 Shernhall Street, Walthamstow in July 2014. The
purchase of the property was completed in August 2014. The cost of
the Freehold Property was £740,000. With related professional and
other costs of £4,259, the total costs of the Freehold Property
amounted to £744,259. Further costs were spent on improving the
property and converting it into suitable accommodation for the
charity, including completing the fitting out of it with fixtures and
equipment. At 31 July 2021, the total costs incurred amounted to
£829,536 ( Note 2 ). Depreciation has been provided on the buildings
element of the cost. The original purchase and subsequent
improvement costs were funded by donations specifically for this
purpose.
Details of arrangements for
safe custody and
segregation of such assets
from the charity’s own
assets		 As at 31 July 2021 the total loans relating to the property that have
been generously provided by supporters of the charity amounted to
£190,780( 2020 £248,774 ) These are interest free loans with no fixed
repayment terms.

Additional information (optional)

Names and addresses of advisers (Optional information)

Type of Name Address
adviser

Name of chief executive or names of senior staff members (Optional information)

Exemptions from disclosure

Reason for non-disclosure of key personnel details

Other optional information

Declarations

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s)
Full name(s)
Position (eg Secretary,
Chair, etc)
Date
HUI GOH PHUA

TREASURER
31/5/22
31/5/22

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

REPORT AND ACCOUNTS

for the year ended 31 July 2021

COMPANY NO: 07323872 (ENGLAND & WALES)

REGISTERED CHARITY NO: 1138997

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) REPORT AND ACCOUNTS For the year ended 31 JULY 2021

CONTENTS

Page
Officers and professional advisers 1
Trustees’ report 2-4
Independent Examiner’s Report 5
Statement of Financial Activities 6
Balance sheet 7
Notes to the accounts 8-11

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) OFFICERS AND PROFESSIONAL ADVISERS For the year ended 31 July 2021

PAGE 1
Trustees/Directors D M H Chin ( Chairman)
C Y He
T Y Cheung
H G Phua ( Treasurer )
Company Number 07323872 (England & Wales)
Registered Charity Number 1138997
Registered Office The Lord Brooke
47 Shernhall Street
Walthamstow
London E17 3EY
Charity’s address The Lord Brooke
47 Shernhall Street
Wathamstow
London E17 3EY
Independent Examiner Mei Sim Lai OBE DL FCA FCCA
LaiPeters & Co
Chartered Accountants
Suite A
6 Honduras Street
London
EC1Y 0TH
Bankers HSBC Bank
Canada Place
Canary Wharf
London
E14 5AH

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) TRUSTEES’ REPORT

For the year ended 31 July 2021

PAGE 2

The trustees present their report and accounts for the year ended 31 July 2021.

CONSTITUTION

Confucius Tao Association (UK) is a company limited by guarantee with no share capital incorporated on 22 July 2010. The company was granted charity status on 12 November 2010 and is governed by its Memorandum and Articles of Association.

OBJECTIVES OF THE CHARITY

The objects of the charity are:

  1. To advance religion for the public benefit by promoting Buddhism and the teachings of the great Tao

  2. To promote the mental or spiritual improvement of the community for the public benefit by sponsoring the teachings of Confucius

  3. To promote religious and racial harmony for the public benefit by enhancing mutual understanding amongst all races and cultures in the United Kingdom

  4. To relieve those in need by provision of charitable, physical or moral assistance, for the public benefit

PUBLIC BENEFIT

The trustees have considered their duty as outlined in Section 4 of the Companies Act 2006 to have due regard to the Charity Commission’s guidance on public benefit. The purpose of the charity is enshrined in its objectives as outlined above. The trustees ensure that this purpose is carried out for the public benefit by delivering a range of suitable activities.

GOVERNANCE AND ORGANISATION

The trustees are responsible for the general control and management of the charity. One person is appointed as the Chairperson of the trustees and duties and responsibilities are allocated amongst the trustees and members. Meetings of the trustees are held throughout the year to deal with matters relating to the running of the charity and activities for members. The charity does not have any employees as its work is carried out by the trustees and its members and volunteers.

DIRECTORS/TRUSTEES

The trustees who have served during the year under review and to the date of signing these accounts are:

D M H Chin (Chairman) C Y He T Y Cheung H G Phua (Treasurer)

Each of the above trustees is also a member and director of the company and each is liable to contribute an amount not exceeding £1 in the event of the company being wound up.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARECAPITAL AND A REGISTERED CHARITY) TRUSTEES’REPORT For the year ended 31 July 2021

PAGE 3

RISK MANAGEMENT

The trustees are aware of the major operational and business risks which the charity faces and are confident that adequate systems are in place to mitigate any significant risks.

GOING CONCERN AND IMPACT OF COVID-19

The trustees have assessed the Going Concern position of the Charity in the light of COVID-19 and appropriate measures have continued to be in force to ensure the safety of all supporters and those who have dealings with the organisation.

RESERVES POLICY

The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for special purposes or otherwise committed. The trustees consider that there are sufficient unrestricted funds to carry out the activities of the charity and to meet its running costs for at least 6 months ahead.

INVESTMENT POWERS AND POLICY

The charity’s investment powers are governed by the Memorandum and Articles of Association. This permits the charity’s funds to be invested in investments, securities or property as may be thought fit but only after obtaining appropriate advice from a Financial Expert.

ACHIEVEMENTS AND ACTIVITIES DURING 2019/2020

During the period under review, the organisation continued with its usual charitable activities as far as able but due to COVID-19 all activities at the charity’s premises from February 2020 onwards until recently were disrupted. The Tea Bar have been closed since January 2020 but there are plans to reopen a rebranded Tea Bar called Lotus Bloom Cafe in the near future

All charitable activities including fundraising were moved online where possible including seminars, praying and chanting.

There was no further progress on the re-submission of the application to the local Council for the change of use of the property. All formal activities relating to using the premises as a place of worship until the outcome of the future resubmission of the planning permission is known have continued to be suspended during the year to date.

The charity operates in London but has informal links with other independent charity organisations based in Birmingham and Glasgow. Fundraising was carried out in those locations for the charity.

PURCHASE OF FREEHOLD PROPERTY FOR USE AS TEMPLE

The charity was successful in purchasing the Freehold property at The Lord Brroke,47 Shernhall Street, Walthamstow in July 2014. The purchase of the property was completed in August 2014. The cost of the Freehold Property was £740,000. With related professional and other costs of £4,259, the total costs of the Freehold Property amounted to £744,259. Further costs were spent on improving the property and converting it into suitable accommodation for the charity, including completing the fitting out of it with fixtures and equipment. At 31 July 2021, the total costs incurred amounted to £829,536 ( Note 2 ). Depreciation has been provided on the buildings element of the cost. The original purchase and subsequent improvement costs were funded by donations specifically for this purpose. As at 31 July 2021 the total loans relating to the property that have been generously provided by supporters of the charity amounted to £190,780( 2020 £248,774 ) These are interest free loans with no fixed repayment terms.

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE AND HAVING NO SHARE CAPITAL AND A REGISTERED CHARITY) TRUSTEES’REPORT For the year ended 31 July 2021

PAGE 4

The charity submitted a planning application to its local Council, the London Borough of Waltham Forest for change of use of the property from A4 to D1 use. The application was rejected by the Council on 27 January 2016. The trustees were disappointed with the Council’s decision and have obtained professional advice on the next course of action. Further consultations with the Council have since taken place but at the date of these accounts the planning application has not yet been resubmitted.

FINANCIAL REVIEW

The charity had a surplus of £13,321 ( 2020 Deficit £13,843) ) for the year. Total incoming resources for the year amounted to £78,158 ( 2020 £62,324 ). As 31 July 2021, the total reserves of the charity amounted to £416,129 (2020 £407,290 ).

FUTURE PLANS

The trustees continue to monitor the impact of the pandemic and continue with safety measures as well as appropriate.

STATEMENTOF DIRECTORS/TRUSTEES’RESPONSIBILITIES

The directors/trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors/trustees to prepare financial statements for each financial year. which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. In preparing these financial statements the directors/trustees are required to:

-select suitable accounting policies and then apply them consistently

-make judgements and estimates that are reasonable and prudent

-observe the methods and principles in the Charities SORP

-state whether applicable accounting standards and statements of accounting practice have been followed, subject to any departure disclosed and explained in the financial statements.

-prepare the financial statements on the going concern basis and in accordance with applicable accounting standards unless it is inappropriate to presume that the charity will continue in operation.

The directors/trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Board of Trustees on 31 May 2022 and signed on its behalf by

H G PHUA Trustee

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

INDEPENDENT EXAMINER’S REPORT For the year ended 31 July 2021

PAGE 5

____________

I report on the financial statements of Confucius & Tao Association (UK) (“the charity”) for the year ended 31 July 2021 which are set out on pages 6 to 11.

Respective responsibilities of the Trustees and Independent Examiner

The trustees of the charity (who are also directors of the company for the purposes of company law) are responsible for preparing the financial statements. The trustees of the charity consider that an audit is not required for the year (under section 144 (2) of the Charities Act 2011 (“the Act “) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, I have:

-examined the accounts under section 145 of the 2011 Act

-followed the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act; and

- stated whether particular matters have come to my attention.

Basis of Independent Examiner’s Report

My examination was carried out in accordance with General Directives given by the Charity Commission and regulation 11 of the 2006 Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeks explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention:

1.which gives me reasonable cause to believe that in any material respect the requirements:

Mei Sim Lai OBE DL FCA FCCA

LaiPeters & Co, Chartered Accountants Suite A 6 Honduras Street London EC2M 1NH 31 May 2022

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 July 2021

PAGE 6

Notes
INCOMING RESOURCES
Incoming resources from generated
Funds
Voluntary income
Donations , grants and other incoming
resources
3
Interest receivable
3
Total incoming resources
RESOURCES EXPENDED
Raising funds
4
Charitable activities
Total resources expended
Net incoming/(outgoing) resources

Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
78,111
-
78,111
62,270
47
47
54
78,111
47
78,158
62,324
6,603
6,603
15.466
13.140
45,184
58,324
69,330
19,743
45,184
64,927
84,796
58,368
(45,137)
13,321
(22,472)
271,369
135,921
407,290
429,762
329,737
90,784
420,521
407,290

The charity had no gains or losses during the year other than those shown above. All the above results are derived from continuing activities

The notes on pages 6 to 11 form part of these financial statements.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) BALANCE SHEET 31 July 2021

BALANCE SHEET
31 July 2021
Notes
FIXED ASSETS
Tangible fixed assets
2
CURRENT
ASSETS
Debtors
7
Cash at Bank
8
CREDITORS:
amounts falling due
within one year
Creditors and Loans
9,10
NET CURRENT
ASSETS
RESERVES
Unrestricted funds
Restricted funds
11
TOTAL
RESERVES		 2021
£
5,520
56,521
62,041
(191,840)
 550,320




(129,799)
329,737
90.784
420,521

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 July 2021:

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved and authorised for issue by the Board on 31 May 2022 and signed on behalf of the Board of trustees by:

H G PHUA

Trustee

Company no : 07323872 ( England 7 Wales ) CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 8

1. ACCOUNTING POLICIES

(a) Basis of preparation of accounts

The financial statements have been prepared under the historical cost convention and comply with the Companies Act 2006. They are prepared in sterling which is the functional currency of the charity. The financial statements have been prepared in accordance with the Statement of Recommended Practice and Reporting by Charities - SORP FRS102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland.

Going Concern

The trustees have the considered the going concern of the charity particularly in the light of the pandemic and its impact on cashflows. They have come to the conclusion that the charity has adequate resources to continue in business for the next 12 months.

(b) Incoming resources

Income representing the value of gifts, donations and contributions from members is recognised in full in the Statement of Financial Activities when receivable.

(c) Resources expended

Resources expended include attributable VAT which cannot be recovered

(d) Unrestricted and Restricted Funds

Unrestricted funds are donations and other income receivable or generated for the charity without a specified purpose and are available for the general use of the charity.

Restricted Funds are funds subject to specific restrictions imposed by donors or by the purpose of the appeal. The purpose and use of the restricted funds is set out in the notes to these accounts.

(e) Depreciation

Depreciation is provided at rates calculated to write off the costs of fixed assets, less their residual value, over their expected useful lives on the following basis:

Freehold buildings 5% straight line Fixtures and equipment 25% reducing balance

(f) Foreign exchange

Transactions in respect of donations from overseas, denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction.

Balances at the year end denominated in a foreign currency are translated into sterling at the rate of exchange at the balance sheet date.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 9

2 . TANGIBLE FIXED ASSETS



Cost
At beginning of year
Additions during year
__
Cost at end of year

Depreciation
At beginning of year
Charge for year

At end of year
Net Book Value
31 July 2021
31 July 2020
 Freehold
Fixtures and
Property
Equipment
£
£
829,536
80,991

-
-
_

_
829,536
80,991
248,862
66,161

41,477
3,707

_
__

290,339
69,860

539,197
11,123
580,674
14,830		 Total
£
910,527
-
_
910,527
315,023
45,184
___
360,207
550,320
595,504		 Total
£
910,527
-
_
910,527
315,023
45,184
___
360,207
550,320
595,504
595,504

3 . INCOMING RESOURCES

Unrestricted donations
Sale of donated and other goods

Tea Bar
Gift Aid recoverable
Uniforms

Total unrestricted incoming resourcese

Bank interest receivable - restricted
Total Incoming resources		 2021
£
64,442
7,757
392
5,520
-
______
78,111
47
78,158		 2020
£
37,525
17,043
2,046
5,568
88
______
62,270
54
62,324

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 10

4. RESOURCES EXPENDED
Raising funds:
Cost of goods sold
Tea Bar

Charitable activities
Meetings, events and seminar expenses
Support costs:
Utilities
Insurance
Professional Fees
Printing & Stationery
General Expenses & office costs
Governance costs
Total cost of charitable activities ( unrestricted )
Depreciation of Freehold buildings ( restricted )
Depreciation of Fixtures and Equipment ( restricted)
Total cost of charitable activities
5. GOVERNANCE COSTS
Independent Examiner’s Fee ( including VAT )		 2021
£
5,816
787
-------
6,603
-
7,442
1,705
100
-
2,933
960
__
13,140
41,477
3,707
____
64,927
2021
£
960		 2020
£
13,147
2,319
--------
15,466
782
12,334
1,591
26
70
3,991
960
_
19,754
41,477
8,099
____
84,796
2020
£
960

6 TRUSTEES’ REMUNERATION

The trustees are not remunerated and no expenses were claimed by the trustees during the year.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Prepayment
Gift Aid recoverable
8. CASH AT BANK
Cash at Bank- Current account
Cash at Bank- Savings account		 2021
£
-

5,520
2020
£
34,722
21,799
56,521		 2020
£
774
10,966
2019
£
18,730
31,110
49,840

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS

For the year ended 31 July 2021

PAGE 11

_____________

9.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Accruals
1,060
10.LOANS
2021
£
Loans to assist with the purchase of a building for use of the charity
and improvements to building afterwards190,780		 2020
£
960
2020
£
248,774

The above loans have been provided by supporters of the charity on an interest free basis. No repayment terms have been fixed as this will be mutually decided and applied at the appropriate date.

11. RESTRICTED FUNDS
2021
£
BUILDING FUND
At beginning of year
135,921
Net increase in year
47
Depreciation of buildings and Fixtures & Equipment
for year
(45,184)
_

At end of year
90,784
 2020
£
185,443
54
(49,576)
______
135,921

12. CONTROL

The charitable company was controlled during the year by the board of directors/trustees.

13. RELATED PARTIES TRANSACTIONS

Donations were received from the Trustees during the year. Apart from this there were no other related parties transactions during the year.

14. EMPLOYEES

The charity did not have any employees during the period under review

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

REPORT AND ACCOUNTS

for the year ended 31 July 2021

COMPANY NO: 07323872 (ENGLAND & WALES)

REGISTERED CHARITY NO: 1138997

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) REPORT AND ACCOUNTS For the year ended 31 JULY 2021

CONTENTS

Page
Officers and professional advisers 1
Trustees’ report 2-4
Independent Examiner’s Report 5
Statement of Financial Activities 6
Balance sheet 7
Notes to the accounts 8-11

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) OFFICERS AND PROFESSIONAL ADVISERS For the year ended 31 July 2021

PAGE 1
Trustees/Directors D M H Chin ( Chairman)
C Y He
T Y Cheung
H G Phua ( Treasurer )
Company Number 07323872 (England & Wales)
Registered Charity Number 1138997
Registered Office The Lord Brooke
47 Shernhall Street
Walthamstow
London E17 3EY
Charity’s address The Lord Brooke
47 Shernhall Street
Wathamstow
London E17 3EY
Independent Examiner Mei Sim Lai OBE DL FCA FCCA
LaiPeters & Co
Chartered Accountants
Suite A
6 Honduras Street
London
EC1Y 0TH
Bankers HSBC Bank
Canada Place
Canary Wharf
London
E14 5AH

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) TRUSTEES’ REPORT

For the year ended 31 July 2021

PAGE 2

The trustees present their report and accounts for the year ended 31 July 2021.

CONSTITUTION

Confucius Tao Association (UK) is a company limited by guarantee with no share capital incorporated on 22 July 2010. The company was granted charity status on 12 November 2010 and is governed by its Memorandum and Articles of Association.

OBJECTIVES OF THE CHARITY

The objects of the charity are:

  1. To advance religion for the public benefit by promoting Buddhism and the teachings of the great Tao

  2. To promote the mental or spiritual improvement of the community for the public benefit by sponsoring the teachings of Confucius

  3. To promote religious and racial harmony for the public benefit by enhancing mutual understanding amongst all races and cultures in the United Kingdom

  4. To relieve those in need by provision of charitable, physical or moral assistance, for the public benefit

PUBLIC BENEFIT

The trustees have considered their duty as outlined in Section 4 of the Companies Act 2006 to have due regard to the Charity Commission’s guidance on public benefit. The purpose of the charity is enshrined in its objectives as outlined above. The trustees ensure that this purpose is carried out for the public benefit by delivering a range of suitable activities.

GOVERNANCE AND ORGANISATION

The trustees are responsible for the general control and management of the charity. One person is appointed as the Chairperson of the trustees and duties and responsibilities are allocated amongst the trustees and members. Meetings of the trustees are held throughout the year to deal with matters relating to the running of the charity and activities for members. The charity does not have any employees as its work is carried out by the trustees and its members and volunteers.

DIRECTORS/TRUSTEES

The trustees who have served during the year under review and to the date of signing these accounts are:

D M H Chin (Chairman) C Y He T Y Cheung H G Phua (Treasurer)

Each of the above trustees is also a member and director of the company and each is liable to contribute an amount not exceeding £1 in the event of the company being wound up.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARECAPITAL AND A REGISTERED CHARITY) TRUSTEES’REPORT For the year ended 31 July 2021

PAGE 3

RISK MANAGEMENT

The trustees are aware of the major operational and business risks which the charity faces and are confident that adequate systems are in place to mitigate any significant risks.

GOING CONCERN AND IMPACT OF COVID-19

The trustees have assessed the Going Concern position of the Charity in the light of COVID-19 and appropriate measures have continued to be in force to ensure the safety of all supporters and those who have dealings with the organisation.

RESERVES POLICY

The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for special purposes or otherwise committed. The trustees consider that there are sufficient unrestricted funds to carry out the activities of the charity and to meet its running costs for at least 6 months ahead.

INVESTMENT POWERS AND POLICY

The charity’s investment powers are governed by the Memorandum and Articles of Association. This permits the charity’s funds to be invested in investments, securities or property as may be thought fit but only after obtaining appropriate advice from a Financial Expert.

ACHIEVEMENTS AND ACTIVITIES DURING 2019/2020

During the period under review, the organisation continued with its usual charitable activities as far as able but due to COVID-19 all activities at the charity’s premises from February 2020 onwards until recently were disrupted. The Tea Bar have been closed since January 2020 but there are plans to reopen a rebranded Tea Bar called Lotus Bloom Cafe in the near future

All charitable activities including fundraising were moved online where possible including seminars, praying and chanting.

There was no further progress on the re-submission of the application to the local Council for the change of use of the property. All formal activities relating to using the premises as a place of worship until the outcome of the future resubmission of the planning permission is known have continued to be suspended during the year to date.

The charity operates in London but has informal links with other independent charity organisations based in Birmingham and Glasgow. Fundraising was carried out in those locations for the charity.

PURCHASE OF FREEHOLD PROPERTY FOR USE AS TEMPLE

The charity was successful in purchasing the Freehold property at The Lord Brroke,47 Shernhall Street, Walthamstow in July 2014. The purchase of the property was completed in August 2014. The cost of the Freehold Property was £740,000. With related professional and other costs of £4,259, the total costs of the Freehold Property amounted to £744,259. Further costs were spent on improving the property and converting it into suitable accommodation for the charity, including completing the fitting out of it with fixtures and equipment. At 31 July 2021, the total costs incurred amounted to £829,536 ( Note 2 ). Depreciation has been provided on the buildings element of the cost. The original purchase and subsequent improvement costs were funded by donations specifically for this purpose. As at 31 July 2021 the total loans relating to the property that have been generously provided by supporters of the charity amounted to £190,780( 2020 £248,774 ) These are interest free loans with no fixed repayment terms.

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE AND HAVING NO SHARE CAPITAL AND A REGISTERED CHARITY) TRUSTEES’REPORT For the year ended 31 July 2021

PAGE 4

The charity submitted a planning application to its local Council, the London Borough of Waltham Forest for change of use of the property from A4 to D1 use. The application was rejected by the Council on 27 January 2016. The trustees were disappointed with the Council’s decision and have obtained professional advice on the next course of action. Further consultations with the Council have since taken place but at the date of these accounts the planning application has not yet been resubmitted.

FINANCIAL REVIEW

The charity had a surplus of £13,321 ( 2020 Deficit £13,843) ) for the year. Total incoming resources for the year amounted to £78,158 ( 2020 £62,324 ). As 31 July 2021, the total reserves of the charity amounted to £416,129 (2020 £407,290 ).

FUTURE PLANS

The trustees continue to monitor the impact of the pandemic and continue with safety measures as well as appropriate.

STATEMENTOF DIRECTORS/TRUSTEES’RESPONSIBILITIES

The directors/trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors/trustees to prepare financial statements for each financial year. which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. In preparing these financial statements the directors/trustees are required to:

-select suitable accounting policies and then apply them consistently

-make judgements and estimates that are reasonable and prudent

-observe the methods and principles in the Charities SORP

-state whether applicable accounting standards and statements of accounting practice have been followed, subject to any departure disclosed and explained in the financial statements.

-prepare the financial statements on the going concern basis and in accordance with applicable accounting standards unless it is inappropriate to presume that the charity will continue in operation.

The directors/trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Board of Trustees on 31 May 2022 and signed on its behalf by

H G PHUA Trustee

CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

INDEPENDENT EXAMINER’S REPORT For the year ended 31 July 2021

PAGE 5

____________

I report on the financial statements of Confucius & Tao Association (UK) (“the charity”) for the year ended 31 July 2021 which are set out on pages 6 to 11.

Respective responsibilities of the Trustees and Independent Examiner

The trustees of the charity (who are also directors of the company for the purposes of company law) are responsible for preparing the financial statements. The trustees of the charity consider that an audit is not required for the year (under section 144 (2) of the Charities Act 2011 (“the Act “) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, I have:

-examined the accounts under section 145 of the 2011 Act

-followed the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act; and

- stated whether particular matters have come to my attention.

Basis of Independent Examiner’s Report

My examination was carried out in accordance with General Directives given by the Charity Commission and regulation 11 of the 2006 Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeks explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention:

1.which gives me reasonable cause to believe that in any material respect the requirements:

Mei Sim Lai OBE DL FCA FCCA

LaiPeters & Co, Chartered Accountants Suite A 6 Honduras Street London EC2M 1NH 31 May 2022

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 July 2021

PAGE 6

Notes
INCOMING RESOURCES
Incoming resources from generated
Funds
Voluntary income
Donations , grants and other incoming
resources
3
Interest receivable
3
Total incoming resources
RESOURCES EXPENDED
Raising funds
4
Charitable activities
Total resources expended
Net incoming/(outgoing) resources

Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
78,111
-
78,111
62,270
47
47
54
78,111
47
78,158
62,324
6,603
6,603
15.466
13.140
45,184
58,324
69,330
19,743
45,184
64,927
84,796
58,368
(45,137)
13,321
(22,472)
271,369
135,921
407,290
429,762
329,737
90,784
420,521
407,290

The charity had no gains or losses during the year other than those shown above. All the above results are derived from continuing activities

The notes on pages 6 to 11 form part of these financial statements.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) BALANCE SHEET 31 July 2021

BALANCE SHEET
31 July 2021
Notes
FIXED ASSETS
Tangible fixed assets
2
CURRENT
ASSETS
Debtors
7
Cash at Bank
8
CREDITORS:
amounts falling due
within one year
Creditors and Loans
9,10
NET CURRENT
ASSETS
RESERVES
Unrestricted funds
Restricted funds
11
TOTAL
RESERVES		 2021
£
5,520
56,521
62,041
(191,840)
 550,320




(129,799)
329,737
90.784
420,521

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 July 2021:

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved and authorised for issue by the Board on 31 May 2022 and signed on behalf of the Board of trustees by:

H G PHUA

Trustee

Company no : 07323872 ( England 7 Wales ) CONFUCIUS & TAO ASSOCIATION (UK)

(A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY)

NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 8

1. ACCOUNTING POLICIES

(a) Basis of preparation of accounts

The financial statements have been prepared under the historical cost convention and comply with the Companies Act 2006. They are prepared in sterling which is the functional currency of the charity. The financial statements have been prepared in accordance with the Statement of Recommended Practice and Reporting by Charities - SORP FRS102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland.

Going Concern

The trustees have the considered the going concern of the charity particularly in the light of the pandemic and its impact on cashflows. They have come to the conclusion that the charity has adequate resources to continue in business for the next 12 months.

(b) Incoming resources

Income representing the value of gifts, donations and contributions from members is recognised in full in the Statement of Financial Activities when receivable.

(c) Resources expended

Resources expended include attributable VAT which cannot be recovered

(d) Unrestricted and Restricted Funds

Unrestricted funds are donations and other income receivable or generated for the charity without a specified purpose and are available for the general use of the charity.

Restricted Funds are funds subject to specific restrictions imposed by donors or by the purpose of the appeal. The purpose and use of the restricted funds is set out in the notes to these accounts.

(e) Depreciation

Depreciation is provided at rates calculated to write off the costs of fixed assets, less their residual value, over their expected useful lives on the following basis:

Freehold buildings 5% straight line Fixtures and equipment 25% reducing balance

(f) Foreign exchange

Transactions in respect of donations from overseas, denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction.

Balances at the year end denominated in a foreign currency are translated into sterling at the rate of exchange at the balance sheet date.

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 9

2 . TANGIBLE FIXED ASSETS



Cost
At beginning of year
Additions during year
__
Cost at end of year

Depreciation
At beginning of year
Charge for year

At end of year
Net Book Value
31 July 2021
31 July 2020
 Freehold
Fixtures and
Property
Equipment
£
£
829,536
80,991

-
-
_

_
829,536
80,991
248,862
66,161

41,477
3,707

_
__

290,339
69,860

539,197
11,123
580,674
14,830		 Total
£
910,527
-
_
910,527
315,023
45,184
___
360,207
550,320
595,504		 Total
£
910,527
-
_
910,527
315,023
45,184
___
360,207
550,320
595,504
595,504

3 . INCOMING RESOURCES

Unrestricted donations
Sale of donated and other goods

Tea Bar
Gift Aid recoverable
Uniforms

Total unrestricted incoming resourcese

Bank interest receivable - restricted
Total Incoming resources		 2021
£
64,442
7,757
392
5,520
-
______
78,111
47
78,158		 2020
£
37,525
17,043
2,046
5,568
88
______
62,270
54
62,324

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS For the year ended 31 July 2021

PAGE 10

4. RESOURCES EXPENDED
Raising funds:
Cost of goods sold
Tea Bar

Charitable activities
Meetings, events and seminar expenses
Support costs:
Utilities
Insurance
Professional Fees
Printing & Stationery
General Expenses & office costs
Governance costs
Total cost of charitable activities ( unrestricted )
Depreciation of Freehold buildings ( restricted )
Depreciation of Fixtures and Equipment ( restricted)
Total cost of charitable activities
5. GOVERNANCE COSTS
Independent Examiner’s Fee ( including VAT )		 2021
£
5,816
787
-------
6,603
-
7,442
1,705
100
-
2,933
960
__
13,140
41,477
3,707
____
64,927
2021
£
960		 2020
£
13,147
2,319
--------
15,466
782
12,334
1,591
26
70
3,991
960
_
19,754
41,477
8,099
____
84,796
2020
£
960

6 TRUSTEES’ REMUNERATION

The trustees are not remunerated and no expenses were claimed by the trustees during the year.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Prepayment
Gift Aid recoverable
8. CASH AT BANK
Cash at Bank- Current account
Cash at Bank- Savings account		 2021
£
-

5,520
2020
£
34,722
21,799
56,521		 2020
£
774
10,966
2019
£
18,730
31,110
49,840

CONFUCIUS & TAO ASSOCIATION (UK) (A COMPANY LIMITED BY GUARANTEE WITH NO SHARE CAPITAL AND A REGISTERED CHARITY) NOTES TO THE ACCOUNTS

For the year ended 31 July 2021

PAGE 11

_____________

9.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Accruals
1,060
10.LOANS
2021
£
Loans to assist with the purchase of a building for use of the charity
and improvements to building afterwards190,780		 2020
£
960
2020
£
248,774

The above loans have been provided by supporters of the charity on an interest free basis. No repayment terms have been fixed as this will be mutually decided and applied at the appropriate date.

11. RESTRICTED FUNDS
2021
£
BUILDING FUND
At beginning of year
135,921
Net increase in year
47
Depreciation of buildings and Fixtures & Equipment
for year
(45,184)
_

At end of year
90,784
 2020
£
185,443
54
(49,576)
______
135,921

12. CONTROL

The charitable company was controlled during the year by the board of directors/trustees.

13. RELATED PARTIES TRANSACTIONS

Donations were received from the Trustees during the year. Apart from this there were no other related parties transactions during the year.

14. EMPLOYEES

The charity did not have any employees during the period under review