2021-08-31-accounts

Hungarian Cultural Association

Directors' / Trustees' Annual Report 2020/21 for the Financial Year ending 31 August 2021

Thanking our key supporters: National Lottery Community Fund Bethlen Gabor Alap Zrt

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Directors' / Trustees' Annual Report 2020/21

Prepared in accordance with the special provisions provided for smaller companies by Part 15 of the Companies Act 2006 and the Charities SORP (FRS102) guidelines for charities.

This is the Company's ninth Annual Report since incorporation on 15 April 2011, for the Financial Year from 1 September 2020 to 31 August 2021.

Reference and administrative information

	Reference and administrative information	Reference and administrative information	Reference and administrative information
	Name of the company / charity: Short name:	Hungarian Cultural Association HCA
	Any other name by which the company / charity makes itself known:	Hungarian School and Cultural Association Guildford Magyar Iskola és Kulturális Egyesület Guildford
	Charity registration number in England and Wales:	1144110
	Company registration number:	7606402
	The address of the principal office of the charity:	2 Elles Avenue, Guildford, GU1 2QH
	The names of the charity’s trustees or trustee(s) for the charity on the date the report was approved:	Maria Chambers, Katalin Hegedus Andrea Norman-Walker Dora Blazsek-Dixon Maria Padfield (from 10 January 2022)
	The names of any other person who served as a charity trustee in the financial year:	none

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Structure, Governance and Management

The nature of the governing document and how the charity is constituted: The Hungarian Cultural Association is a Company Limited by Guarantee, constituted with a Memorandum and Articles of Association.

How the Charity is constituted:

The Hungarian Cultural Association (HCA) was established on 15 April 2011 as a company limited by guarantee and was registered as a Charity in October 2011. The HCA has continued the activities founded by its predecessor organisation, the Hungarian Cultural Group Guildford (HCG) established in March 2009.

The methods adopted for the recruitment and appointment of new trustees: The Hungarian Cultural Association invites all its beneficiary members, volunteers and contracted staff to participate in the governance of the charity. It has invited any member or associated partner to apply for Trustee positions. New Trustees/Directors can be appointed by a resolution of the Board of Trustees/Directors or at the AGM. Trustees will resign on a rotation basis, but can be re-elected at the AGM. During the Financial Year, all Trustees resigned and were re-appointed on the AGM in January 2020 and again in January 2021.

Objectives and Activities:

A summary of the objects of the charity as set out in its governing document:

The charity's objects as set out in the Articles of Association agreed on 16 September 2011 and accepted by the Charity Commission are as follows:

(1) To advance the education of the public in the subject of Hungarian Culture (language and literature, music, art and craft, folk dance, history, etc.) in particular, but not exclusively, amongst families with Hungarian connections in the Surrey area. (2) The prevention or relief of poverty, sickness and distress amongst families with Hungarian connections in Surrey or nationwide by providing grants, items and services to individuals in need.

Summary of the main activities undertaken in relation to those objects:

The charity achieves its aims through delivering regular educational sessions of Hungarian language and literature, folk dancing, singing and music, history, traditional art and craft to children aged 0-18 years as well as to adults who wish to learn Hungarian as a foreign language. There are also regular music, folk music and dancing, puppet show and poetry events, as well as educational trips to museums and botanical gardens open for all people from the wider community. Members with financial or other disadvantages can participate in activities free or at reduced price to ensure events and educational sessions are open to all. The charity also provides support and advice for people in need and aids personal development and employability through volunteering opportunities and coaching.

The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit.

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Achievements and Performance

The Charity had 175 beneficiary members representing individuals aged 0-80, many of them families with 1-3 children. They represent all segments of society from Surrey, Hampshire, Sussex, London and the Home Counties. There were 2331 beneficiaries (members and non-members) who took part in the HCA’s activities and events in Guildford and London in this financial year between September 2020 and August 2021. At the start of the COVID pandemic in March 2020, the Charity suspended its face-to-face activities and provided most of its services online, combined face to face activities with virtual, maintaining a steady membership and even reaching regions elsewhere in the UK. From the spring 2021, education has resumed face-to-face, with two online groups remaining for families living further away. Despite the pandemic, significant numbers of new families joined and membership numbers by September 2021 reached record levels.

Education

Our unique Hungarian Cultural Identity Programme (HCIP) entered into its 12[th] year. We moved our main operational location to St Thomas of Canterbury Catholic Primary School in Guildford that provides more flexible teaching tools and a wide outdoor space and also kept our old venue St John Centre for our major events.

The HCIP delivered educational activities in 7 age groups : 0-3, 4-5, 6-7, 8-10, 11+, ECL, adults in Guildford, with fortnightly face to face sessions between September 2020 – December 2020 and from April 2021-August 2021, two fortnightly on-line sessions and four educational trips in the Easter and summer breaks. Sessions are ranging from 60 – 210 minutes/week and cover: Hungarian language and literature, singing and music, folkdance, traditional craft, free play and library, delivered by 14 teachers and 3 volunteers, between 10.30 -14.00 on Saturdays on 20 occasion/ year face to face in separate rooms or on-line in the learners’ homes. Total number of sessions per child were up to 80-100 this year depending on participation levels, for approximately 78 enrolled learners this year. They also benefited from our excellent teaching resources including a Hungarian children’s library, traditional folk costumes, and laptops. All school aged learners received a free learning pack at the beginning of the year.

The 15+ group were preparing for the ECL exam that was unfortunately cancelled due to the pandemic and is yet to be rearranged. This group was following the ECL curriculum.

The 6-7 year-old group focused on learning to read and write in Hungarian using a method developed by one of our teachers, using the foundations of the phonics method. All age groups participated singing and music, language, folkdance, craft free play on each teaching day.

Events

Along with the teaching programme, Hungarian cultural events play an integral part of the HCIP. Despite the pandemic, we delivered the following 9 events:

In September we opened our year with a family trip to RHS Wisley with 90 children and parents attending – it was an amazing experience and a perfect teaching environment.

In early December we held our first online concert with our patron, award winning singer-songwriter Vilmos Gryllus, who entertained over 260 fans via Zoom from his living room in Hungary, playing traditional children’s favourites. The event was attended not only by our member families, but also families from Hungary and Romania. Member children still received their traditional gift bags from our Hungarian Santa by post.

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In late December , we prepared a Covid-safe Christmas Celebration at Holy Trinity Church Guildford, with the participation of members of the Le Page Ensemble and the BBC Concert Orchestra and volunteer parents and students. The programme consisted of traditional winter classical music, folk songs and Hungarian poems. The concert had to be cancelled last minute due to changing regulations but was recorded instead and shared with all families as an online recording .

In February our traditional masked ball was celebrated by two online concerts, one by our patron Gryllus Vilmos and the Kolompos Band playing from Hungary. We all dressed up and had fun from our homes together!

In March , the National Day of 15 March 1848, was marked by home recordings of traditional songs, poems and dances. A medley of past and present performances by our students was also played on the national satellite television channel Duna World TV as part of the “5 continents, one nation” programme.

Due to COVID restrictions, meetings started first with an outdoor excursion and Easter Egg hunt at Devil's Punchbowl in Surrey in April 2021.

May saw 77 of our members walking a 5 km challenge at Alice Holt Forest and discovering the wonderful natural playgrounds and we enjoyed the sunshine and a well-deserved ice-cream at the end.

In June , a large year-end event celebrated the gradual relaxation of pandemic restrictions, with all year-groups working together to perform a traditional Hungarian folk tale, the ‘“Starry-eyed shepherd” in front of parents and grandparents. The children also received year-end awards and gifts. The party finished with outdoor activities, a bouncy castle and plenty of traditional food and crafts. We also thanked those who worked for us during the pandemic keeping us safe.

Both educational and cultural projects were supported by the Bethlen Gábor Alap foundation and the National Lottery Community Fund that provided vital financial support to deliver such high quality Hungarian cultural events in Guildford and online. Virgin Media O2 supported our year-end event and MAOSZ also provided a contribution to our insurance costs.

HCA provided bursaries of up to 100% to families in difficult circumstances to ensure financial means do not limit access to its activities.

The organisation continued to show its resilience and continue to grow during the pandemic while succeeding to maintain both the quality and frequency of activities, and keep up a sustained community spirit. These activities have continued in the 2021-2022 financial year

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Financial Review

In this financial year the charity’s turnover was £27,925 (2020: £34,671)

In this financial year, although the turnover has continued to reduce compared to the prior year, the Charity was still able to improve its financial health while maintaining its level of activities and with continued funding from grants. Reserves at the end of the Financial Year stood at £21,069 – an increase of £6,133. While this financial position remains healthy, due to the increased uncertainties of the pandemic and the future of grant financing this level of reserve was agreed to be maintained at the Directors' Meeting on 10th January 2022 . A small proportion of the reserve was agreed to be used for trialling stand-up comedy events aimed at young adults, widening our target audience but not necessarily profitable. HCA also agreed to recruit more teachers and teaching assistants in September 2021 as participant numbers increase.

There were no funds in deficit during the financial year and the charity has no concerns or uncertainties about its ability to carry out its activities in the medium term, even if grant financing becomes less accessible. The Charity has obtained further grant financing in the Financial Year 2021/22 and is confident it will continue to operate as a going concern.

In the financial year 2020/2021, the Charity obtained grants from four donor organisations and was able to cooperate with other Hungarian schools and community organisations.

• Bethlen Gabor Alapkezelő Zrt (Bethlen Gabor Fund Management Private Limited Company, BGA Zrt) in Hungary, responsible for the promotion of Hungarian culture, language and heritage outside Hungary. The full grant £5,786 covers teaching fees, resources and rent for full calendar year of 2021 Of this amount, £2,371 was used by 31/08/2021, but was only paid retrospectively in October 2021, after the end of the financial year and is therefore shown still as receivables in the accounts.

• National Lottery Community Fund Covid fund was £10,000 for operational expenses and events. All project funding was spent by 31/03/2021.

• ● Virgin Media O2 Neighbourly Fund provided £1,000 for the year-end event. All project funding was spent by 30/06/2021.

• MAOSZ donated £271 for insurance support.

The Charity's regular sources of income continued: including membership fees and course fees, income from events. Fundraising income from sale of food and toys reduced substantially through online operations. This year again, no Gift Aid request was submitted because the amounts are immaterial. The successful receipt of the grants this year meant that for the fourth consecutive year, HCA exceeded the £25,000 threshold requiring an Independent Examination and will submit this Trustees' Annual Report to the Charity Commission.

Further details are available in the Financial Accounts below.

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THE 2020-2021 HCA Team

Mária Chambers Trustee/Director (Operations and Education, Safeguarding) Katalin Hegedüs Trustee/Director (Finance) Andrea Norman-Walker Trustee/Director (Policies) Dóra Blazsek-Dixon Trustee/Director

Patrons

Dr Beáta Pászthy Dr Ilona Gállné Gróh Veronika Marék Vilmos Gryllus Margaret Olivers Kolompos Ensemble

Former Director of the HCC London Head of Ringato music foundation, Forrai Award winning music teacher Janikovszky Éva Award and József Attila Award winning writer Kossuth Award and Prima Primissima Award winning singer-songwriter Chairman of the British Kodaly Academy, music and Montessori teacher Hungarian Folk Band

Operative Team

Mária Chambers Session Leader – Music and Language 0-5, Music 5-11, Folk dance Niki Cseh Session Leader – Kindergarten Katalin Hegedüs Session Leader – Language 5-7, Folk dance Katalin Vincze Session Leader – Language 7-9 and 10-14, Adults Péter Pál Tóth Session Leader - Language 15-18, Adults Anasztazia Chambers Teaching Assistant Orsolya Pinter Teaching Assistant Katalin Fabian- Markus Librarian Csilla Bedy Librarian Maria Padfield Librarian Denisszia Gerocz Teaching Assistant Orsolya Nemeth Teaching Assistant Andras Csakany Teaching Assistant Alexandra Norman Walker Teaching Assistant Daniella Norman Walker Teaching Assistant William Norman Walker Parent Helper Reka Denes Kindergarten Teacher

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Financial Accounts as at 31 August 2020 - Hungarian Cultural Association

Registered Charity in England and Wales reg. Number 1144110

Company Limited by Guarantee in England and Wales, company number 7606402

Balance Sheet

Prepared in accordance with the special provisions provided for smaller companies by Part 15 of the Companies Act 2006 and the Charities SORP (FRS102) guidelines for charities.

For the Financial Year ending 31 August 2020, the Company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The Directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accounts give a true and fair view of the state of affairs of the Company as at the end of the Financial Year and of its Profit and Loss for the Financial Year in accordance with the requirements of Sections 394- 396, and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the Company. All figures rounded to the nearest pound (£).

Trustee's Annual Report and Financial Accounts approved by the Board of Directors/Trustees on 13 May 2022. Signed on behalf of the Board of Directors/Trustees:

Katalin Hegedus Director / Trustee

Maria Chambers Director / Trustee

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Statement of Financial Activities (Profit and Loss Account)

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Summary of Fund Movements

Notes to the Accounts for the Financial Year ending 31 August 2021

Hungarian Cultural Association:

Registered Charity in England and Wales reg. Number 1144110Company Limited by Guarantee in England and Wales, company number 7606402 Prepared in accordance with the special provisions provided for smaller companies by Part 15 of the Companies Act 2006 and the Charities SORP (FRS102) guidelines for charities. All figures are rounded to the nearest pound (£).

The Accounts show a true and fair view, and were prepared on the going concern assumptions and using the accruals concept and provide information that is relevant, reliable, comparable and understandable.

Financial Review Policy on reserves:

The charity aims to hold the equivalent of the running costs of three school terms (c. £20,000) as reserve due to the uncertainties of the pandemic. The reserves reported in the Accounts have reached the target level, and are now expected to be maintained. A small portion of the reserves may be used for online events at reduced cost or free of charge that are not otherwise financially viable.

Details of any fund materially in deficit and the circumstances giving rise to the deficit and steps being taken to eliminate the deficit: The Hungarian Cultural Association has not had funds in deficit at any time during the financial year ending 31 August 2021.

Funds held as Custodian Trustee: The Hungarian Cultural Association does not hold funds as Custodian Trustee .

Detailed Notes to the Accounts:

1. Fixed Assets

The Company has a policy to only capitalise assets with values in excess of £500. In the previous financial year 2018/19 the company purchased 8 laptops from the BGA Zrt grant for the "Digital Hungarian School". Although the individual purchase value was under £500, the Trustees decided to capitalise the assets and depreciate them over 3 years. The purchase was made from a grant which

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contains certain restrictions, so the assets are shown as restricted assets.

Original Cost of Fixed Assets: £ 3,151 Cumulative Depreciation: £ 2,801 Net Balance Sheet Value: £ 350

There were no new purchases of fixed assets this year.

The resale value of all teaching materials currently in use by the Company but shown at zero value on the Balance Sheet is estimated at £2,500 and consists of around 250 library books, teaching reference books and teaching materials, 50 sets of folk costumes for adults and children, musical instruments and children's toys.

2. Stocks

The Company does not capitalise any stocks purchased and therefore calculates no revaluation or depreciation. Stocks, if any, would be valued at the lower of cost and net realisable value.

3. Debtors

£2,371 Bethlen Gabor BGA Zrt Teaching & Teaching Travel 2021 grant was received by bank transfer in October 2021, after the accounts were closed. This was in agreement with the grant donor and the amount was not treated as overdue. The full grant £5,786 covers the cost for the whole calendar year of 2021. The Debtors amount is an Accrued income against expenditure spent between January and August 2021.

4. Provisions

The Company has no activities that would require any Provisions.

5. Financial Assets

The Company has no Financial Assets other than a non-interest-bearing bank current account for transactional purposes and a small amount of petty cash kept as change for cash payments for fundraising sales.

1. Creditors over one year

The Company has no long-term financial or other liabilities.

7. Creditors within one year

Payables of £570 relate to invoices received in August and paid in September.

8. Tax

The Company is not subject to Corporation Tax as all its activities are exempt under Charity tax regulations. The Company has no employees, therefore it pays no PAYE and NI contributions.

9. Deferred Income

£9,802 relates to course fees and event fees paid in advance in August for the term starting in September 2021, and deferred for the following financial year. None of these pre-paid fees had to be refunded and were realised as income in September 2021. An additional £10,000 relates to a grant received from the National Lottery which is relating to FY21/22.

10. Prepaid and Accrued Expenses

There were no prepaid and accrued expenses this financial year.

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11. Capital

The Company has no share capital, as it is registered as a Company Limited by Guarantee. The total amount of guarantee is £30.

1. All donations were received as detailed in the activities section of the Annual Report.

2. The main source of unrestricted income for the organisation is from its regular courses and events as well as the membership fees received. The Company also conducts fundraising activities (e.g. Hungarian food buffet, book and folk costume sales), all related to Hungarian culture.

14.The Treasurer (Katalin Hegedus) contributed 100 hours of professional management, accounting and financial services in-kind. Additionally, approximately 60 professional hours were contributed in the course of the financial year by volunteers in teaching, operational and administrative services, event management, catering and other services. These services were considered at a value of £10/h. Volunteer hours for non-professional services are not represented in the accounts but have exceeded 160 hours in the year. Cakes and books donated for sale and eligible for Gift Aid were not recognised this year. Other in-kind donations of books, toys, provision of travel, storage and other services not eligible for Gift Aid were not represented in the accounts but exceeded £1,000 in total value.

1. The Company's major expense line items are below. Professional Fees for Performing Artists: £1,600

Fees paid for the teachers, all of whom are self-employed and work on a fixed-term contract basis: £6,115, of which £2,325 are related party transactions. Teaching Materials: £1,240. Management Fees: £5,895, of which £5,445 are related party transactions.

Details of the expenses are given in the Profit and Loss Account. All costs were attributed to the activity where it was incurred. Management fees and teaching fees were tracked based on actual hours spent on the activity.

For related party transactions including Directors' Remunerations as permitted by the Articles of Association and agreed by the Board of Trustees see the below table.

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CHARITY COMMISSION FOR ENGLAND AND WALES Independent examiner's report on the accounts Section A Independent Examiner's Report R•port to th• tru•1•0￿d1re¢t0rn1 m¢mb&rn of HUNGARIAN CULTURAL ASSOCIATION On axounts fortho year endod 3110812021 Charbty no.: 1144110 Company Tr).: 7606402 S•¢ out M paom I rw lo the th•nty trusloa8 on my xoMinatic￿ oftho o¢c4urst6 oft Company lor Ihe y•ar erKl¢LI 31106r2021. AMpon￿bIll￿• Ind l)••l• As the chanty's twstees of Company lho ar• alststh• IUr•ctcn oltho of r•port cornpany Ihe purp)5e5 o1rx)mp￿Y lawl, you responsitle lort p￿par81N?n ol the accounts ui xcordance with the raqwrerwnts of the Cempanw$ Act 2c(e1lhe 2￿fj Acfl. Hawng salisfied myself Ihat th• ac¢ounts ol the C¢xnpany am not wuired 10 be audrted for thts year uThler PBrt 16 olthe 20CE Acl and are •lJibl8 for iThJependent examination. I repJrt in ￿SPe￿ of my oxaminaiion ol yow chanly $ occtyJrrt8 as ¢¥rW oul sedJon 145 of the Charities Ad 2011 I"Ihè 201 l Acl") In ¢arrying oul rny exarnlnat￿tin. I hav8 fdbwed I reetK)ns 9i¥¢n by thts ch￿¢Y {uTrJor section 1451Sllbl of th¢ 2011 Acl. Indep•nd?nt examln•rf• I have (L￿pI#l￿d my e¥aminalbJn. I confirrn Ihat tv) mrial matter8 hav? 8tatom•nt rr￿ to my att￿tr)n Icthw Ihan that disdosed Ldw'l l)th gN¢s m• ￿U9? to believe that.. . accountsrvj rwxds not kepl ￿ ac£ordonco wdh secbon 386 of tho CompanN?i Act 2(M]6.' e . Ihe a¢¢ouNt• Jo not accord $uth reGords". or . accJJunl8 do not with relevant accounting r8qurnmiMts ￿dar Settl￿ 396 of Iho Compankn Ad 20C6 thr than •ny reqLMrem•nt that the awounls gwe a'true and larf whKh is not a rna1￿r considered •• part of an IndeFendenl examinatson. .th8 a¢coun¢s have nol been rKeped kn acoJrdaThx With the Chantl¢8 SORP IFRS1021. I have no conce￿ and have corne across no other matters in connectlon vAlh the examination to %thi¢h attentity) shoukl be drawn In Ihk% report in order lo enable a WOkEr under5taThJiryJ of th¢ accounts to be reachad. - Please dolete Ihe L4x¥ds ￿ the brackets rfthey do th)1 apptr. Slgned: Da¢•: f 1111 IER 15

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