2022-08-31-accounts

Hungarian Cultural Association

Directors' / Trustees' Annual Report 2021/22

for the Financial Year ending 31 August 2022

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

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Directors' / Trustees' Annual Report 2021/22

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 12th Annual Report since incorporation on 15 April 2011, for the Financial Year from 1 September 2021 to 31 August 2022.

Reference and administrative information

----- Start of picture text -----
Name of the company / charity: Hungarian Cultural Association
Short name: HCA
Any other name by which the company / Hungarian School and Cultural Association
charity makes itself known: Guildford
Magyar Iskola és Kulturális Egyesület Guildford
Charity registration number in England and 1144110
Wales:
Company registration number: 7606402
The address of the principal office of the 2 Elles Avenue, Guildford, GU1 2QH
charity:
The names of the charity’s trustees or Maria Chambers,
trustee(s) for the charity on the date the report Katalin Hegedus
was approved: Dora Blazsek-Dixon
Maria Padfield (from 10 January 2022)
The names of any other person who served Andrea Norman-Walker (until 6 June 2022)
as a charity trustee in the financial year:
----- End of picture text -----

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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 2021 and again in January 2022 and 2023. One new Trustee joined during the financial year and one Trustee resigned during the year and was not replaced.

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 349 beneficiary members a 99% increase from previous year, 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 4792 ( 2331 previous year) beneficiaries 2474 adults and 2318 children (members and non-members) who took part in the HCA’s 36 activities and events in Guildford and London in this financial year between September 2021 and August 2022. Most of the activities in the financial year were face-to-face, but one successful online group continued, reaching families living further away. Since the end of the pandemic, significant numbers of new families joined and membership numbers reached new record levels, resulting in the opening of new groups

Education

Our unique Hungarian Cultural Identity Programme (HCIP) entered into its 14[th] year. The main operational location continues to be at St Thomas of Canterbury Catholic Primary School in Guildford that provides more flexible teaching tools and a wide outdoor space and we continue to use the St John Centre in Guildford for our major events.

The HCIP delivered educational activities in 7 age groups : 0-3, 4-5, 6-7, 8-10, 11+ , online school for children and adults in Guildford, with fortnightly face to face sessions, 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 148 enrolled learners (90% increase from previous year) 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.

Events

Along with the teaching programme, Hungarian cultural events play an integral part of the HCIP. Despite the pandemic, we delivered the following 16 (77% increase) events:

In October we celebrated Harvest with a Hungarian Family Folk Band, made grape juice with the children and craft activities dancing and traditional food wad on the offer too. The 2[nd] Hungarian Stand Comedy Night took place which was a huge success attracting a diverse new audience. In this month we also visited RHS Wisley Garden with the families. The 3[rd] comedy night was in March which also was a big hit. The performances provided much needed laughter and relaxation for all.

In November Dr Ónodi Béla Hungarian Folk Dance expert visited our school and we had a Rábaközi folkdance and singing workshop for all groups.

In early December we held our traditional St Nicholas Deceleration with two concerts members of the BBC Concert Orchestra treated us with an amazing classical concert and the Cimbora Band from Hungary entertained the audience and later received gift bags from Santa.

In February our traditional masked ball was celebrated by two concerts by our patron Gryllus Vilmos who played his music for both an adult and a children audience in London and Guildford as well as Bristol and Birmingham.

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In March , the children took part in the National Day celebrations in honour of 15 March 1848. Children and teachers presented songs, poems and a drama performance to their parents.

In May the award winning folk music group Muzsikas gave an awe inspiring children's concert and dance session in the morning and adults' concert and dancing workshop in the evening as part of their UK tour to the delight of all of us.

May also saw a repeat of our spring walk at Alice Holt Forest discovering the wonderful natural playgrounds and enjoying the sunshine and a well-deserved ice-cream at the end as part of the Children’s Day celebration.

In July , the year closed with an open-air Family Sports Day , with activities for children and parents alike. The children also received their year-end awards and gifts. The Ambassador of Hungary Dr Ferencz Kumin also visited the event, as Maria Chambers, Director/Trustee and Chair of the Board received a well-deserved Honour of Merit – Silver Cross awarded by the President of Hungary Dr János Áder for her contribution to the promotion of Hungarian Culture and Heritage in the UK. 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. 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 been continued in the 2022-2023 financial year.

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Financial Review

In this financial year the charity’s turnover was £52,723 (2021: £27,925) ( 89% increase from last year)

In this financial year the turnover has increased compared to the prior year and the Charity was 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 £30,799 – an increase of £9,730. While this financial position remains healthy, due to the fact that in the 2022/23 financial year no grants have yet been awarded, this level of reserve was agreed to be maintained at the Directors' Meeting, with a small investment approved for better sound equipment for events.

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 healthy independent income and is confident it will continue to operate as a going concern.

In the financial year 2021/2022, 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 BGA-1 grant for £7,733 covers teaching fees for full calendar year of 2022. Of this amount, £795 was not used by 31/08/2022. BGA-2 grant £1,688 covers performance fees and travel fees associated.

• National Lottery Community Fund fund was £10,000 for operational expenses and events. All project funding was spent by 31/03/2022.

• ● MAOSZ donated £149 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 2021-2022 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 Maria Padfield Trustee/Director Patrons Dr Beáta Pászthy Former Director of the HCC London Dr Ilona Gállné Gróh Head of Ringato music foundation, Forrai Award winning music teacher Veronika Marék Janikovszky Éva Award and József Attila Award winning writer Vilmos Gryllus Kossuth Award and Prima Primissima Award winning singersongwriter Margaret Olivers Chairman of the British Kodaly Academy, music and Montessori teacher Kolompos Ensemble Hungarian Folk Band Bartos Erika Writer

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 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 Szandra Kettler Kindergarten Teacher Alicia Padfield Teaching Assistant Andrea Norman Walker Session Leader

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Financial Accounts as at 31 August 2021 - 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 2021, 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 were approved by the Board of Directors/Trustees on 11[th ] May 2023 Signed on behalf of the Board of Directors/Trustees:

	Katalin Hegedus Maria Chambers Director / Trustee Director / Trustee

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Statement of Financial Activities (Profit and Loss Account)

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Notes to the Accounts for the Financial Year ending 31 August 2022

Hungarian Cultural Association:

Registered Charity in England and Wales reg. Number 1144110 Company 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 basis 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. £30,000) as reserve due to the continuing uncertainties caused by the pandemic and those over the continuity of grant income. The reserves reported in the Accounts have reached the target level, and are now expected to be maintained. A portion of the reserves may be used for services and events at reduced cost or free of charge for members who may otherwise not be able to participate.

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 2022.

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

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

Original Cost of Fixed Assets: £ 3,151 Cumulative Depreciation: £ 3,151 Net Balance Sheet Value: £ 0

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

£25 was a donation by another Hungarian charitable association in England that was awarded in August 2022 but was only received in September.

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.

6. Creditors over one year

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

7. Creditors within one year

Payables of £846 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

£14,690 relates to course fees and event fees paid in advance in August for the term starting in September 2022, and deferred for the following financial year. None of these pre-paid fees had to be refunded and were realised as income in September 2022..

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1. Prepaid and Accrued Expenses There were no prepaid and accrued expenses this financial year.

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 with Maria Chambers contributing additional 5.8 hours. These services were considered at a value of £10/h. Additionally, approximately 160 hours were contributed in the course of the financial year by volunteers in teaching, operational and administrative services, event management, catering, etc. 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 £500 in total value.

1. The Company's major expense line items are below. Professional Fees for Performing Artists: £4,330 Fees paid for the teachers, all of whom are self-employed and work on a fixed-term contract basis: £11,273, of which £4,560 are payments to trustees or their related parties. Teaching Materials: £3,157. Management Fees: £10,882, of which £10,546 are payments to trustees or their related partiesransactions.

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 Note 16 below.

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