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2022-07-31-accounts

Trustees’ Annual Report for the period

From 01/08/2021 Period start date To 31/7/2022 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 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
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. The trustees
ensure that this purpose is carried out for the
public benefit by delivering a range of suitable
activities.
Statement confirming
whether the trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit		 Para 1.18 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.

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 .The tea bar Lotus Bloom Café has re-
opened in June 2022 after the renovation was
completed. Most charitable activities including
fundraising have been conducted online where
possible including seminars, praying and
chanting post COVID-19. There was no further
progress in the year 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 £33981 ( 2021
Surplus £13,321) ) for the year. Total incoming
resources for the year amounted to £112,452 (
2021 £78,158 ). As 31 July 2022, the total
reserves of the charity amounted to £454,502
(2021 £416,129).
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.
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
Amount of reserves held Para 1.22 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 companybeingwound up.
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 duringtheyear under review.

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 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.
How is the charity
constituted?
(e.g unincorporated
association, CIO)		 Para 1.25 Unincorporated association
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 Name of any person

Additional information (optional)

You may choose to include further statements where relevant about:

Policies and procedures adopted for the induction Para 1.51 and training of trustees The charity’s organisational structure and any wider Para 1.51 network with which the charity works Relationship with any related Para 1.51 parties 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, 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)
MR MUN HOONG
CHIN
CAIYING HE
TAK YEUNG
CHEUNG
HUI GOH PHUA

– Corporate trustees names of the directors at the date the report was approved

Director name

Name of trustees holding title to property belonging to the charity

Trustee name Dates acted if not for whole year

Funds held as custodian trustees on behalf of others

Description of the assets
held in this capacity		 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. In the year
under review, costs were incurred relating to the work needed
to create a tea bar on the premises. At 31 July 2022, the total
costs incurred amounted to £834,712 ( 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
2022 the total loans relating to the property that have been
generously provided by supporters of the charity amounted to
£126,780( 2021 £190,780 ) These are interest free loans with no
fixed repayment terms.
Name and objects of the
charity on whose behalf the
assets are held and how this
falls within the custodian
charity’s objects
Details of arrangements for
safe custody and
segregation of such assets
from the charity’s own
assets

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 o tional 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		 H.G.PHUA
HUI GOH PHUA

TRUSTEE
07/06/22
07/06/22

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 2022

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 2022

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 2022

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 2022

PAGE 2

The trustees present their report and accounts for the year ended 31 July 2022.

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 2022

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 DURING 2021/2022

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 during the year under review.

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 2021/2022

During the period under review, the organisation continued with its usual charitable activities .The tea bar Lotus Bloom Café has re-opened in June 2022 after the renovation was completed. Most charitable activities including fundraising have been conducted online where possible including seminars, praying and chanting post COVID-19.

There was no further progress in the year 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 BY THE CHARITY

The charity was successful in purchasing the Freehold property at The Lord Brooke,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. In the year under review, costs were incurred relating to the work needed to create a tea bar on the premises. At 31 July 2022, the total costs incurred amounted to £834,712 ( 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 2022 the total loans relating to the property that have been generously provided by supporters of the charity amounted to £126,780( 2021 £190,780 ) 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 2022

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 £33,981 ( 2021 £13,231) ) for the year. Total incoming resources for the year amounted to £112,452 ( 2021 £78,158 ). As at 31 July 2022, the total reserves of the charity amounted to £454,502 (2021 £420,521 ).

FUTURE PLANS & DEVELOPMENTS

The trustees continue to review and monitor the situation as regards the use of the property to carry out its charitable work and efforts are being made to raise more funds from its supporters. The local Council granted a rental Licence on the flat in the property in March 2023.

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 6 June 2023 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 2022

PAGE 5

____________

I report on the financial statements of Confucius & Tao Association (UK) (“the charity”) for the year ended 31 July 2022 which are set out on pages 6 to 11.

Respective responsibilities of the Trustees and Independent Examiner

The trustees of the charity (who are 6lso 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 6 June 2023

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 2022

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

Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2022
Total
2021
£
£
£
£
112,440
-
112,440
78,111
12
12
47
112,440
12
112,452
78,158
11,787
11,787
6,603
18,924
47,760
66,684
58,334
30,711
47,760
78,471
64,927
81.729
(47,748)
33,981
13,231
329,737
90,784
420,521
407,290
411,436
43,036
454,502
420,521

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 2022

BALANCE SHEET
31 July 2022
Notes
FIXED
ASSETS
Tangible fixed
assets
2
CURRENT
ASSETS
Debtors
7
Cash at bank &
in hand
CREDITORS:
amounts falling
due within one
year
Creditors and
Loans
9,10
RESERVES
Unrestricted
funds
Restricted funds
11
TOTAL
RESERVES		 2022
£
5,605
56,075
61.680
(127,880)


 -
520,702




( 66,200)
454,502
411,466
43,036
454.502

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 July 2022:

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 6 June 2023 and signed on behalf of the Board of trustees by:

H G PHUA

Trustee Company no : 07323872 ( England & 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 2022

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.

9

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 2022

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 2022
31 July 2021
 Freehold
Fixtures and
Property
Equipment
£
£
829,536
80,991

5,175
12,966
__


834,712
93,957

290,339
69,868

41,736
6,024


__

332,075
75,892

502,637
18,065
539,197
11,123		 Total
£
910,527
18,142
__
928,669
360,207
47,760
____
407,967
520,702
550,320

In the opinion of the trustees the current market value of the freehold property is well in excess of £1million based on increases in property prices in the area but in the absence of a formal valuation the actual amount is not known.

3 . INCOMING RESOURCES

Unrestricted donations
Sale of donated and other goods

Tea Bar

Gift Aid recoverable
Uniforms
Total unrestricted incoming resources
Bank interest receivable - restricted
Total Incoming resources		 2022
£
89,260
13,934
3,771
5,256
219
______
112,440

12

112.452		 2021
£
64,442
7,757
392
5,520
_____
78.111
47
78,158

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 2022

PAGE 10

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

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 )		 2022
£
8,253
3,534
-------
11,787
-
10,739
2,178
949
131
3,827
1,100
__
18,924
41,736
6,024
____
78,471
2022
£
1,100		 2021
£
5,816
787
--------
6,603
-
7,442
1,705
100
-
2,933
960
_
13,140
41,477
3707
____
64,927
2021
£
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
2022
£
Prepayment
349

Gift Aid recoverable
5,256
5,605

8. CASH AT BANK
2020
£
Cash in hand
200
Cash at Bank- Current account
55,589
Cash at Bank- Savings account
286
56,075		 2021
£
-
5,520
5,520
2021
£
-
34,772
21,799

56,521

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 2022

PAGE 11

_____________

9.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Accruals
1,100
10.LOANS
2022
£
Loans to assist with the purchase of a building for use by the charity126,780		 20210
£
1,060
2021
£
190,780

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 2022 2021
£ £
BUILDING FUND
At beginning of year 90,784 135,921
Net increase in year 12 47
Depreciation of buildings and Fixtures &
Equipment for year (47,760) (45,184)
_ ______
At end of year 43,036 90,784

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 2022

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 2022

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 2022

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 2022

PAGE 2

The trustees present their report and accounts for the year ended 31 July 2022.

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 2022

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 DURING 2021/2022

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 during the year under review.

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 2021/2022

During the period under review, the organisation continued with its usual charitable activities .The tea bar Lotus Bloom Café has re-opened in June 2022 after the renovation was completed. Most charitable activities including fundraising have been conducted online where possible including seminars, praying and chanting post COVID-19.

There was no further progress in the year 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 BY THE CHARITY

The charity was successful in purchasing the Freehold property at The Lord Brooke,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. In the year under review, costs were incurred relating to the work needed to create a tea bar on the premises. At 31 July 2022, the total costs incurred amounted to £834,712 ( 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 2022 the total loans relating to the property that have been generously provided by supporters of the charity amounted to £126,780( 2021 £190,780 ) 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 2022

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 £33,981 ( 2021 £13,231) ) for the year. Total incoming resources for the year amounted to £112,452 ( 2021 £78,158 ). As at 31 July 2022, the total reserves of the charity amounted to £454,502 (2021 £420,521 ).

FUTURE PLANS & DEVELOPMENTS

The trustees continue to review and monitor the situation as regards the use of the property to carry out its charitable work and efforts are being made to raise more funds from its supporters. The local Council granted a rental Licence on the flat in the property in March 2023.

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 6 June 2023 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 2022

PAGE 5

____________

I report on the financial statements of Confucius & Tao Association (UK) (“the charity”) for the year ended 31 July 2022 which are set out on pages 6 to 11.

Respective responsibilities of the Trustees and Independent Examiner

The trustees of the charity (who are 6lso 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 6 June 2023

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 2022

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

Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2022
Total
2021
£
£
£
£
112,440
-
112,440
78,111
12
12
47
112,440
12
112,452
78,158
11,787
11,787
6,603
18,924
47,760
66,684
58,334
30,711
47,760
78,471
64,927
81.729
(47,748)
33,981
13,231
329,737
90,784
420,521
407,290
411,436
43,036
454,502
420,521

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 2022

BALANCE SHEET
31 July 2022
Notes
FIXED
ASSETS
Tangible fixed
assets
2
CURRENT
ASSETS
Debtors
7
Cash at bank &
in hand
CREDITORS:
amounts falling
due within one
year
Creditors and
Loans
9,10
RESERVES
Unrestricted
funds
Restricted funds
11
TOTAL
RESERVES		 2022
£
5,605
56,075
61.680
(127,880)


 -
520,702




( 66,200)
454,502
411,466
43,036
454.502

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 July 2022:

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 6 June 2023 and signed on behalf of the Board of trustees by:

H G PHUA

Trustee Company no : 07323872 ( England & 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 2022

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.

9

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 2022

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 2022
31 July 2021
 Freehold
Fixtures and
Property
Equipment
£
£
829,536
80,991

5,175
12,966
__


834,712
93,957

290,339
69,868

41,736
6,024


__

332,075
75,892

502,637
18,065
539,197
11,123		 Total
£
910,527
18,142
__
928,669
360,207
47,760
____
407,967
520,702
550,320

In the opinion of the trustees the current market value of the freehold property is well in excess of £1million based on increases in property prices in the area but in the absence of a formal valuation the actual amount is not known.

3 . INCOMING RESOURCES

Unrestricted donations
Sale of donated and other goods

Tea Bar

Gift Aid recoverable
Uniforms
Total unrestricted incoming resources
Bank interest receivable - restricted
Total Incoming resources		 2022
£
89,260
13,934
3,771
5,256
219
______
112,440

12

112.452		 2021
£
64,442
7,757
392
5,520
_____
78.111
47
78,158

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 2022

PAGE 10

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

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 )		 2022
£
8,253
3,534
-------
11,787
-
10,739
2,178
949
131
3,827
1,100
__
18,924
41,736
6,024
____
78,471
2022
£
1,100		 2021
£
5,816
787
--------
6,603
-
7,442
1,705
100
-
2,933
960
_
13,140
41,477
3707
____
64,927
2021
£
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
2022
£
Prepayment
349

Gift Aid recoverable
5,256
5,605

8. CASH AT BANK
2020
£
Cash in hand
200
Cash at Bank- Current account
55,589
Cash at Bank- Savings account
286
56,075		 2021
£
-
5,520
5,520
2021
£
-
34,772
21,799

56,521

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 2022

PAGE 11

_____________

9.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Accruals
1,100
10.LOANS
2022
£
Loans to assist with the purchase of a building for use by the charity126,780		 20210
£
1,060
2021
£
190,780

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 2022 2021
£ £
BUILDING FUND
At beginning of year 90,784 135,921
Net increase in year 12 47
Depreciation of buildings and Fixtures &
Equipment for year (47,760) (45,184)
_ ______
At end of year 43,036 90,784

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