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2020-12-31-accounts

Charity Registration No. 1143043

Company Registration No. 07517633 (England and Wales)

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Thampippillai Manmatharajah
Mr Navaratnam Shanmuganathan
Mr Ponniah Kailayapathivagan
Mr Sundarampillai Sivachandran
Mr Anthonipillai Kantharuban
Mr Kanagasabapathy Mathisoody
Mr Kabilan Ganeshamoorthy (Appointed 1 March
2021)
Mr Jeevah Haran (Appointed 1 March
2021)
Secretary Mr Thampippillai Manmatharajah
Charity number 1143043
Company number 07517633
Registered office 61-65 Church Lane
Edmonton
London
N9 9PZ
Auditor Moore Northern Home Counties Limited
Nicholas House
River Front
Enfield
Middlesex
EN1 3FG
Bankers Barclays Bank plc
The Enfield Group
20 The Town
Enfield
Middlesex
EN2 6LY
HSBC Bank plc
17 The Broadway
Southgate
London
N14 6PP

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 12
Statement of cash flows 11
Notes to the financial statements 13 - 23

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Charity’s objects are specifically restricted to the following:

To advance the Hindu Religion in particular but not exclusively by the establishment and management of the Nagapooshani Ambaal Temple; and the advancement of education in the Tamil Language, Culture and Art. To further its objects, the Charity may:

The T rustees have considered the guidance contained in the Charity Commission’s general guidance on public benefit in reviewing the Charity’s aims and objectives and in planning its future activities.

Public benefit

The C harity has achieved the public benefit objectives by meeting the spiritual requirements of the congregation. This was achieved by holding the daily poojas, arti and discourses. All key festival and religious dates are observed and celebrated by the devotees.

Volunteers

The Charity depends heavily upon the continuing support of devotees. We also thank all volunteers for the ir hard work during the year, particularly those working within the areas of Prashad preparations, various educational activities, car park duties, cleaning, organised special events, decorations, and other religious activities and pray that they continue to serve the T rust in the future.

Although volunteer contribution is integral to the contribution of the Charity, It is difficult to quantify the number of voluntary hours served by the devotees.

Achievements and performance

The Trustees are pleased to report on this year in which the Charity fulfilled its objectives. All funds received during the year have been applied in meeting the Charity's charitable objectives.

Any surpluses arising from donations and other income are held for the general benefit of the Charity's operations.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Impact of Covid on the Charity

The Covid-19 pandemic will have a significant impact on the 2020/21 accounting period. Due to national government restrictions imposed due to Covid-19, the temple was forced to close its doors between April 20 and June 20. This has resulted in a significant impact on income with devotees not being able to attend the Poojas and programme bookings such as Weddings and other festivals not being able to take place.

Further government restrictions imposed from November 2020 onwards has further impacted the facilities and services the temple has been able to offer to the wider community. The temple continues to support those in need during these challenging times. The temple has also broadcasted all daily programmes live on Facebook and YouTube.

Financial review

The Statement of Financial Activities (SOFA) shows net income and expenditure for the year. The SOFA also shows the financial activity of the Charity distinguishing between restricted and unrestricted activities.

At 31 December 2020, the Charity had net assets of approximately £3 million (2019 - £2.8 million).

Income

The Trustees were pleased with the level of income during the year.

Income decreased from the previous year with a net income for the year at £ 167 , 026 (201 9 - £ 223,647 ). This decrease is due to a decline in Abisekam and Archanai contributions.

Reserves p olicy and going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees have considered the impact of COVID-19 in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As a place of worship, we are totally reliant on donations, therefore in the absence or restricted number of worshippers as well as prolong period of restrictions on mass gatherings will significantly reduce the income. Taking all these factors into account, next year' s income is based on the expectation of the government guidelines. No doubt, our core expenses will also reflect proportionally however, having prepared a forecast for this period the trustees have noted that even though income has reduced compared to pre Covid level, costs have also fallen due to restrictions and cutting costs wherever possible. The charity has also received two payment holidays for the bank loan that is included in the liabilities of the charity, this has reduced payments to interest only between June - November 2020 and March 2021 – August 2021.

These are unprecedented times and therefore difficult to assess the full impact of the pandemic. Hindu Tamil Cultural Association (Enfield) may have to increase the cash reserve beyond the current level.

An increase in unrestricted reserves of £ 167 , 026 (201 9 - £ 223 ,6 4 7) indicates that there are no material risks to the organisation's ability to operate as a going concern. As a result, the accounts have been prepared on a going concern basis.

The Trustees have confirmed that, after careful review of the reserves policy, the most appropriate measure of reserves for the Charity is by reference to the Charity's liquidity position. As at 31 December 20 20 , in considering the adequacy of the reserves, the Trustees have a reasonable expectation that the C harity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they have continued to adopt the going concern basis concept in preparing the financial statements.

The Trustees consider the key measure of sustainability for the Charity to be current and future liquidity cover, rather than the surplus or deficit accounting position. As a consequence, the Trustees have set appropriate reserves policies relating to liquidity based on the relationship between readily realisable assets, on-going level of donations received, and the cash requirements associated with sustaining the Charity's operations for a year.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

In establishing this policy, the Board of Trustees conducts an annual review of the level of unrestricted reserves in the general fund by considering risks associated with the various income streams, expenditure plans and balance sheet items.

This enables an estimate to be made of the level of reserves that are sufficient:

Risks and issues considered by the Board of Trustees in making this judgement on the level of unrestricted reserves include:

The Trustees are of the view that with minimum annual income of £500k, maintaining cash reserves of at least £50k will provide sufficient resources in the event of adverse conditions. The Trustees have also assessed other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

In the event of the Charity facing difficult financial circumstances, this would allow it to continue operations during a year of managed adjustment to these new circumstances.

The Trustees review the Charity's reserves policy annually and are satisfied with this level of cash reserves at the end of 20 20 and are confident that the cash reserves will continue to increase in subsequent years.

Investments policy

The Trustees' investment powers allow the Trustees to invest surplus funds to generate income with which to fund future activities.

The Trustees' investment policy is to aim for safety, commensurate with immediate and planned spending requirements and given the current uncertainties in the financial markets, the Trustees consider it appropriate to be holding funds in deposit accounts where they achieve a steady return.

Risk m anagement

The Trustees have an informal risk management strategy which comprises:

The Board of Trustees is responsible for the management of the risks faced by the Trust. Consideration of such risks is made on an informal ongoing basis and controls to mitigate such risks are reviewed on an ongoing informal basis. A review and assessment of these controls is undertaken on an annual basis.

Through the above, the Trustees are satisfied that major risks identified are subsequently mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

The activities of the Charity are dependent on its ability to raise funds from donations and other lending. The key risk for 2020 therefore is the Charity's ability to secure ongoing funding to support the repayment of bank loans that were used for the purpose of building the temple to date. The T rustees consider this risk to be low as its donors are diverse and very supportive. The charitable expenditure is largely discretionary and can be reduced to mitigate a substantial reduction in income.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

The Trust is a company limited by guarantee. None of the Trustees had any beneficial interest in the company during the year. The Hindu Tamil Cultural Association (Enfield) was incorporated on 4th February 2011. It is registered as a charity with the Charity Commission.

The Trust is a Registered Charity under the Laws of England and Wales, which is overseen by the Charity Commission. The Trustees are responsible for the activities of the Trust and the day to day management.

There are currently eight members each giving a guarantee to contribute a sum, not exceeding £1, to the company should it be wound up. The governing document is the Articles of Association.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr Thampippillai Manmatharajah Mr Navaratnam Shanmuganathan Mr Ponniah Kailayapathivagan Mr Sundarampillai Sivachandran Mr Anthonipillai Kantharuban Mr Kanagasabapathy Mathisoody Mr Murugesu Arumugam (Resigned 30 January 2021) Dr Kathiravellupillai Sivasinmyananthan (Resigned 28 February 2021) Mr Kabilan Ganeshamoorthy (Appointed 1 March 2021) Mr Jeevah Haran (Appointed 1 March 2021)

Appointment of Trustees

The appointment of Trustees is governed by the Articles of Association. The number of Trustees must consist of at least six members.

The election of office bearers shall be carried out by the members in a meeting by the Trustees in December. All the members of the executive committee shall be elected by the Trustees at this meeting.

The by-election of a member of the committee of the Trust in place of the one who expires or is being disqualified or otherwise cease to be a member of the committee shall be held by the Trustees and the remaining members of the Trust shall use their best discretion in adapting the provisions for such by election.

Organisational structure and d ecision making

Each Trustee has assumed responsibility for monitoring activities in specific operational areas and chairing groups consisting of staff and volunteers. The Trustees report the activities of these operational areas to the Board of Trustees. All Trustees give their time voluntarily and receive no benefits from the C harity.

Decision making duties are carried out by the executive committee which shall be elected by the Trustees their monthly meeting. Other ad-hoc decisions are taken by the Executive committee members ( T rustees) with executive positions.

Induction and training of new T rustees

As part of their induction program, new Trustees are made aware of their responsibilities. This includes an introduction to the objectives, scope and policies of the Charity, the Charity Commission information on Trustees' responsibilities and a copy of the Constitution. Additional training is available to keep up with all new regulations concerning the Charity's activities.

Remuneration policy for key management personnel

The key management personnel of the C harity are the T rustees , who are not remunerated.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Related party relationships

Details of related parties are included in the notes to the financial statements.

Auditor

Moore Northern Home Counties Limited were reappointed as the charitable company's auditors during the year. A resolution will be proposed at the Annual General Meeting that Dr Kathiravellupillai Sivasinmyananthan will be authorised to engage auditors for the C harity for the ensuing year.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant lo the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate slops to Identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' r eport was approved by the Board of Trustees.

Mr Ponniah Kailayapathivagan

Trustee Dated: 23 September 2021

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees, who are also the directors of Hindu Tamil Cultural Association (Enfield) for the purpose of company law, 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 Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and 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.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

Opinion

We have audited the financial statements of Hindu Tamil Cultural Association (Enfield) (the ‘Charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors’ r eport included within the Trustees' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Francis Corbishley (Senior Statutory Auditor) for and on behalf of Moore Northern Home Counties Limited

24 September 2021

Chartered Accountants Statutory Auditor

Nicholas House River Front Enfield Middlesex EN1 3FG

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
2
434,445
102,210
Charitable activities
3
152,102
-
Other trading activities
4
14,889
-
Investments
5
73,100
-
Total income
674,536
102,210
Expenditure on:
Raising funds
6
141
-
Charitable activities
7
536,911
14,537
Other expenditure
10
26,232
31,899
Total expenditure
563,284
46,436
Net incoming
resources before
transfers
111,252
55,774
Transfers between
funds
55,774
(55,774)
Net income for the year/
Net movement in funds
167,026
-
Fund balances at 1
January 2020
2,771,927
16,904
Fund balances at 31
December 2020
2,938,953
16,904		 TotalUnrestricted
funds
2020
2019
£
£
536,655
283,774
152,102
408,441
14,889
37,449
73,100
54,290
776,746
783,954
141
-
551,448
652,714
58,131
24,913
609,720
677,627
167,026
106,327
-
117,320
167,026
223,647
2,788,831
2,548,278
2,955,857
2,771,925		 Restricted
funds
2019
£
170,157
-
-
-
170,157
-
23,149
29,688
52,837
117,320
(117,320)
-
16,904
16,904		 Total
2019
£
453,931
408,441
37,449
54,290
954,111
-
675,863
54,601
730,464
223,647
-
223,647
2,565,182
2,788,829

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
21
Investing activities
Purchase of tangible fixed assets
Purchase of investment property
Interest received
Net cash (used in)/generated from
investing activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans
Net cash generated from/(used in)
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
(564,029)
-
(625,718)
73,100
(552,618)
-
1,153,015
1,153,015
36,368
29,674
66,042		 2019
£
£
97,370
(10,165)
-
54,290
44,125
145,596
(262,737)
(117,141)
24,354
5,320
29,674

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
12
Investment properties
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
19
Unrestricted funds		 2020
£
£
3,144,722
2,339,567
5,484,289
874
66,042
66,916
(229,019)
(162,103)
5,322,186
(2,366,329)
2,955,857
16,904
2,938,953
2,955,857		 2019
£
£
3,206,628
1,713,849
4,920,477
10,169
29,674
39,843
(899,147)
(859,304)
4,061,173
(1,272,344)
2,788,829
16,904
2,771,925
2,788,829

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

The financial statements were approved by the Trustees on 23 September 2021

Mr Ponniah Kailayapathivagan

Trustee

Company Registration No. 07517633

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Hindu Tamil Cultural Association (Enfield) is a private company limited by guarantee incorporated in England and Wales. The registered office is 61-65 Church Lane, Edmonton, London, N9 9PZ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

While Covid-19 has had an impact on the C harity, the T rustees believe it has not impacted on the going concern position of the C harity. The Charity has net current liabilities but has been able to continue to meet its liabilities as they fall due and manage its cash flow position sufficiently to allow it to continue to operate.

1.3 Charitable funds

Unrestricted funds are donations and other income received or generated for the charitable purposes. These funds are available for use towards meeting the objectives of the C harity.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

1.4 Income

Income from donations and grants, including capital grants, is included when these are receivable, except as follows:

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Income from investments is included in the Statement of Financial Activities in the period it is receivable and deferred or accrued accordingly.

1.5 Expenditure

The policy for including items within the relevant activity categories of expenditure is that expenditure is charged to the Statement of Financial Activities on an accruals basis, inclusive of VAT which cannot be recovered and is classified as follows:

Costs of generating funds

The costs of generating funds comprise the costs associated with attracting voluntary income.

Charitable activities

Allocation of costs within types of expenditure

The methods and principles for the allocation and apportionment of all costs between the different activity categories of resources set out above are:

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Temple buildings 2% straight line Computers 25% straight line Equipment 20% straight line Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

Investment properties are included in the Balance sheet at their fair value in accordance with Financial Reporting Standard 102 and are not depreciated. Gains are recognised in the statement of financial activities.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Taxation

The company has been confirmed to be exempt from Corporation Tax, as having charitable status, upon any surpluses arising from is activities as long as those surpluses are held for the purpose of the company's objects.

All the activities are outside the scope of VAT and input tax on purchases is not recoverable and therefore is charged against the category of expenditure for which it was incurred.

1.11 Creditors and provisions

Creditors and provisions are recognised where the C harity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditor and provisions are normally recognized at their settlement amount after allowing for any trade discounts due.

The C harity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transition value and subsequently measured at their settlement value with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method.

1.12 Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred .

2 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Till collection
15,051
-
General donation
received
353,558
-
General donation
received (children's
welfare - restricted)
-
31,899
Government grants
65,836
-
Building fund donations -
restricted
-
70,311
434,445
102,210		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
15,051
25,919
-
353,558
257,855
-
31,899
-
29,688
63,836
-
-
70,311
-
140,469
536,655
283,774
170,157		 Total
2019
£
25,919
257,855
29,688
-
140,469
453,931

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Income from charitable activities

Unrestricted
Unrestricted
funds
funds
2020
2019
£
£
Abisekam & Archanai contribution 152,102
408,441
4 Income from other trading activities
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Miscellaneous income 14,313
36,180
Activities for generating funds 576
1,269
Other trading activities 14,889
37,449
5 Income from investments
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Rental income 73,100
54,290
6 Expenditure on raising funds
Unrestricted
Total
funds
2020
2019
£
£
Other activities for generating funds costs 141
-
141
-

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Expenditure on charitable activities

Unrestricted
funds
Restricted
funds
2020
2020
£
£
Staff costs
161,259
-
Depreciation and
impairment
61,905
-
Announcements and
adverts
3,510
-
Abisekam and related
expenses
108,915
-
Water rates
3,962
-
General rates
9,411
-
Premises insurance
3,786
3,785
Light and heat
15,024
3,756
Printing, stationery and
postage
878
877
Telephone
610
1,832
Computer supplies
3,958
990
Repairs and renewals
25,885
-
Cleaning
6,845
-
Security and alarm
1,425
2,851
Motor vehicle and
travelling expenses
5,657
-
Office expenses
1,785
446
414,815
14,537
Share of governance costs
(see note 8)
122,096
-
536,911
14,537		 Total Unrestricted
funds
Restricted
funds
2020
2019
2019
£
£
£
161,259
129,200
-
61,905
64,041
-
3,510
3,910
-
108,915
276,009
-
3,962
3,434
-
9,411
5,404
-
7,571
4,407
4,407
18,780
28,725
7,181
1,755
1,401
1,400
2,442
536
1,608
4,948
6,483
1,621
25,885
26,111
-
6,845
12,499
5,999
4,276
8,259
-
5,657
3,730
933
2,231
-
-
429,352
574,149
23,149
122,096
78,565
-
551,448
652,714
23,149		 Total
2019
£
129,200
64,041
3,910
276,009
3,434
5,404
8,814
35,906
2,801
2,144
8,104
26,111
18,498
8,259
4,663
-
597,298
78,565
675,863

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8
Support and governance costs
Support
costs
Governance
costs
£
£
Audit and accountancy
fees
-
2,701
Professional fees
-
14,048
Bank charges
-
18,720
Bank loan interest
-
86,627
-
122,096
Allocated to:
Charitable activities
-
122,096		 Total
2020
Support
costs
Governance
costs
£
£
£
2,701
-
9,600
14,048
-
9,980
18,720
-
4,422
86,627
-
54,563
122,096
-
78,565
122,096
-
78,565		 Total
2019
£
9,600
9,980
4,422
54,563
78,565
78,565

Governance costs includes payments to the auditors of £ 7,200 (2019- £ 8,400 ) for audit fees.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Other expenditure

Unrestricted
Restricted
funds
funds
2020
2020
£
£
General donations - Asia
5,344
31,899
General donations - UK
20,888
-
26,232
31,899		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
37,243
22,418
29,688
20,888
2,495
-
58,131
24,913
29,688		 Total
2019
£
52,106
2,495
54,601

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

11 Employees

Number of employees

The average monthly number of employees during the year was:

Priests
Administration
Employment costs
Wages and salaries
Social security costs		 2020
Number
5
6
11
2020
£
152,193
9,066
161,259		 2019
Number
5
6
11
2019
£
124,725
4,475
129,200

There were no employees whose annual remuneration was £60,000 or more.

12 Tangible fixed assets

Cost
At 1 January 2020
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Temple
buildings
Computers,
equipment and
motor vehicles
£
£
2,884,974
41,126
2,884,974
41,126
115,400
33,521
57,700
4,206
173,100
37,727
2,711,874
3,399
2,769,574
7,605		 Jewellery
£
429,449
429,449
-
-
-
429,449
429,449		 Total
£
3,355,549
3,355,549
148,921
61,906
210,827
3,144,722
3,206,628

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13
Investment property
Fair value
At 1 January 2020
Additions through external acquisition
At 31 December 2020
14
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Notes
Secured loan
17
Other taxation and social security
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Secured loan
17		 2020
£
-
874
874
2020
£
187,463
7,475
16,401
17,680
229,019
2020
£
2,366,329		 2020
£
1,713,849
625,718
2,339,567
2019
£
9,669
500
10,169
2019
£
128,433
1,818
751,216
17,680
899,147
2019
£
1,272,344

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17 Loans and overdrafts

Secured loan
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2020
£
2,553,792
187,463
2,366,329
1,525,218		 2019
£
1,400,777
128,433
1,272,344
796,805

The loans are secured against the properties owned by the Charity.

18 Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Fund balances at 31
December 2020 are
represented by:
Tangible assets 3,144,722 - 3,144,722 3,206,628 - 3,206,628
Investment properties 2,339,567 - 2,339,567 1,713,849 - 1,713,849
Current assets/
(liabilities) (179,007) 16,904 (162,103) (876,208) 16,904 (859,304)
Long term liabilities (2,366,329) - (2,366,329) (1,272,344) - (1,272,344)
2,938,953 16,904 2,955,857 2,771,925 16,904 2,788,829

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Restricted funds

The income funds of the C harity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2019
£
Construction of the temple
-
Children's homes
16,904
16,904		 Movement in funds
Income
Expenditure
Transfers
Balance at
1 January 2020
£
£
£
£
140,469
(23,149)
(117,320)
-
29,688
(29,688)
-
16,904
170,157
(52,837)
(117,320)
16,904		 Movement in funds
Income
Expenditure
£
£
70,311
(14,537)
31,899
(31,899)
102,210
(46,436)		 Transfers
Balance at
31 December
2020
£
£
(55,774)
-
-
16,904
(55,774)
16,904

Construction of the temple

This fund represents donations that have been received in order to repay borrowings related to the building of the temple. The entire balance was transferred to unrestricted funds as the temple has already been completed.

Children's homes

The children's homes fund represents donations that have been received specifically for children's homes in Sri Lanka.

HINDU TAMIL CULTURAL ASSOCIATION (ENFIELD)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Related party transactions

Interest-free loans amounting to £nil (2019: £nil) were received from various Trustees. The amounts owed to Trustees at the year-end were as follows:

Mr Manmatharajah
Mr Arumugam
Mr Mathisoody
Dr Sivasinmyananthan
Ponniah Kailayapathivagan
Mr Kantharuban
21
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease) in creditors
Cash (absorbed by)/generated from operations
22
Analysis of changes in net (debt)/funds
At 1 January
2020
£
Cash at bank and in hand
29,674
Loans falling due within one year
(128,433)
Loans falling due after more than one year
(1,272,344)
(1,371,103)		 2020
2019
£
£
-
10,500
-
63,000
-
15,000
-
41,000
-
6,000
-
69,500
-
205,000
2020
2019
£
£
167,029
223,647
(73,100)
(54,290)
61,905
64,041
9,295
4,268
(729,158)
(140,296)
(564,029)
97,370
Cash flows At 31 December
2020
£
£
36,368
66,042
(59,030)
(187,463)
(1,093,985)
(2,366,329)
(1,116,647)
(2,487,750)