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← Hungarian Cultural Association

2024-08-31-accounts

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Hungarian Cultural Association

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Directors' / Trustees' Annual Report 2023/24

for the Financial Year ending 31 August 2024

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Thanking our key supporter

Bethlen Gabor Alap Zrt

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Directors' / Trustees' Annual Report 2023/24

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 2023 to 31 August 2024.

Reference and administrative information

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Name of the company / charity: Hungarian Cultural Association
Short name: HCA
Any other name by which the Hungarian School and Cultural Association
company / charity makes itself known: Guildford
Magyar Iskola és Kulturális Egyesület
Guildford
Charity registration number in England 1144110
and Wales:
Company registration number: 7606402
The address of the principal office of 2 Elles Avenue, Guildford, GU1 2QH
the charity:
The names of the charity’s trustees or Maria Chambers,
trustee(s) for the charity on the date
Katalin Hegedus
the report was approved:
Dora Blazsek-Dixon
Maria Padfield
The names of any other person who none
served as a charity trustee in the
financial year:
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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 at the AGM in January 2023 and again in January 2024.

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.

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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 280 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 121 enrolled learners and over 3000 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 2023 and August 2024.

Education

Our unique Hungarian Cultural Identity Programme (HCIP) entered into its 17th year. We continued our main operation at St Thomas of Canterbury Catholic Primary School in Guildford that provides flexible teaching tools and a wide outdoor space and occasionally use our old venue St John Centre for some events.

The HCIP delivered educational activities in 7 groups : 0-4, 4-5, 5-6, 7-8, 9+ and online for children and adults. The older teenager group continued as very capable teaching assistants across the other age groups. Fortnightly face to face sessions were held in Guildford, while our online groups and events reach a wider geographical area. Sessions are ranging from 60 – 210 minutes/week and cover: Hungarian language and literature, singing and music, folk dance, traditional craft, free play and library, delivered by 22 teachers and other professionals including 3 volunteers, between 10.30 -14.00 on Saturdays 20 times a year. Total number of sessions per child were up to 80-100 this year depending on participation levels, for approximately 121 enrolled learners this year. They also benefitted 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 classroom and online course were enriched with regular educational nature trips to nearby locations, and we celebrated Children's Day with a trip to Alice Holt Forest.

Personal Development

Two of the teachers obtained a new qualification: Teacher of the Hungarian Culture and Language in the Diaspora awarded by the Széchenyi Istvan University, Gyor in Hungary, following a yearlong program.

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Events

Along with the teaching programme, Hungarian cultural events play an integral part of the HCIP.

In this financial year we delivered the following events, many of which are much awaited recurring visits of well-known artists.

In October we celebrated Harvest with Kolompos, a Hungarian Family Folk Band, for the sixth time, with 150 attendees. We made grape juice with the children, alongside craft activities, dancing and a traditional food buffet.

In early December we held our traditional St Nicholas celebration for 250 attendees, with a performance by a London based Hungarian theatre group Hubart, incorporating performances by the children. All who were good received gift bags from Santa, followed by traditional food and crafts.

In February our traditional masked ball was celebrated by four concerts by our patron Gryllus Vilmos who played his music for a children audience in Guildford and London as well as in Birmingham, continuing our long-standing cooperation with other Hungarian organisations. The 3 concerts were attended by over 500 people. There was a drawing competition with over 60 entries as part of our art project.

In March , the National Day on 15 March was celebrated by a return visit for the third time of the acclaimed Solti Youth String Orchestra from Budapest. During the week the 40 young musicians performed in three local schools in front of over 1000 English teachers and students at St Thomas of Canterbury Catholic Primary School, St Peter’s Catholic Secondary Schools in Guildford. On Saturday they provided the celebratory concert for our own Guildford community, interspersed with poems performed by our children groups, before travelling up to London to perform at the official National Day celebration at the Hungary House, attended by the Ambassador and the leaders of many Hungarian organisations. We also celebrated the 15th anniversary of the estblishment of our school and Mothers' Day.

In June, we celebrated Father’s Day as children performed in front of their parents the songs and folk dance they practiced during the year, followed by a Hungarian folk tale dramatised and presented by the drama volunteers of the older school groups.

In July , the year closed with our celebration of the children’s achievements and a Sports Day for all families.

All our educational and cultural projects were supported by the Bethlen Gábor Alap foundation, in particular the Kolompos and Solti concerts and teaching costs. HCA provided bursaries of up to 100% to families in difficult circumstances to ensure financial means do not limit access to its activities.

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Financial Review

In this financial year the charity’s turnover was £49,182 (2023: £35,641), the increase mostly due to the special grant received for the Solti Youth Orchestra visit.

In this financial year, the income from our own activities has changed only marginally (£28,827 in 2024 v. £ 29,285 in 2023), and the level of regular grants received (excluding the Solti grant) continued to reduce (£5,039 in 2024 v £6,356 in 2023).

Despite this, the organisation managed to control expenses, and the impact on the reserves was only a reduction of £2,197 in 2024 compared to £4,904 in 2023. The reserves stand at £23,697 in 2024 (v £25,895 in 2023). This is still a healthy level of reserve and shows the merit of the Trustees' strategy to keep sufficient reserves to continue the operations of the charity for a reasonable period even in the absence of external sources.

This year our course fee income reduced slightly (£18,447 in 2024 v. 20,381 in 2023), but the decrease was partially offset by an increase in the event fee income ((£4,568 in 2024 v. £2,929 in 2023). We have not increased course fees for the third year in a row, despite the inflationary environment.

We have also started to place the liquid funds on interest paying instant access and short-term-notice bank accounts and deposits with a term of up to 6 months as the interest rates have started to rise and earned £580 in interest. We opted to stay with our current banking provider as the interest rate differential was insignificant, and we are still well within the limits of the Financial Services Compensation Scheme.

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 and continue to operate as a going concern in the medium term, even if grant financing becomes less accessible.

In the financial year 2023/2024, the Charity had funds left from a prior grant and obtained three new grants from Bethlen Gabor Alap Zrt (BGA)

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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 remained stable. This year again, no Gift Aid request was submitted because only new families pay membership fees and no new declarations were received. The amounts would have been immaterial. A Gift Aid declaration campaign is planned for 2025.

The continued success of our operations means that the charity continues to exceed 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 2023-2024 HCA Team

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

Patrons

Patrons Patrons 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 singer-
songwriter
Margaret Olivers Chairman of the British Kodaly Academy, music and
Montessori teacher
Kolompos Ensemble Hungarian Folk Band
Operative Team
Mária Chambers Session Leader – Music and Language 0-4, Music 5-11, Folk
dance
Niki Cseh Session Leader – Kindergarten
Szandra Kettler Session Leader - Kindergarten
Katalin Hegedüs Session Leader – Language 5-6, and 9+, Folk dance
Katalin Vincze Session Leader – Language 7-14 online, Adults Online
Orsolya Pinter
Session Leader - Language 7-8
Anasztazia Chambers Teaching Assistant
Alicia Padfield Teaching Assistant
Katalin Fabian- Markus Teaching Assistant
Maria Padfield Events
Szilvia Kovacs Teaching Assistant
Orsolya Nemeth Teaching Assistant
Andras Csakany
Event Assistant

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Financial Accounts as at 31 August 2024 - 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.

For the Financial Year ending 31 August 2024, 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 5 May 2025.

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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Summary of Fund Movements

Notes to the Accounts for the Financial Year ending 31 August 2024

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 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. £25,000) as reserve due to the uncertainties of grant financing. The reserves reported in the Accounts are close to the target level, and are now expected to be maintained. A small portion of the reserves may be used for events at reduced cost or free of charge that is not otherwise financially viable, or for purchase of essential teaching equipment.

Details of any fund materially in deficit and the circumstances giving rise to the deficit and steps being taken to eliminate the deficit:

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The Hungarian Cultural Association has not had funds in deficit at any time during the financial year ending 31 August 2024.

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 January 2023, the company purchased a sound system for a total of £1,768, part funded by grant. The asset will be depreciated over 3 years. All previously purchased assets have been fully depreciated.

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all in GBP Restricted Unrestricted Total
Original Cost of Fixed Assets £1,000 £768 £1,768
Cumulative Depreciation £537 £412 £949
Net Book Value £463 £356 £819
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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 £2,000 and consist 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

£4,253 relates to the BGA 2024/1-000206 grant for teaching fees,which was approved on 6 June 2024 but only paid on 17 September 2024.

4. Provisions

The Company has no activities that would require any Provisions.

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5. Financial Assets

The Company actively manages its liquidity across term deposits (up to 6 months), notice accounts and online savings accounts, in addition of the current account. All products are provided by our current banking provider Lloyds Bank. We continue to keep funds for immediate needs on 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 £1,019 relate to two 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

Of the total £16,391 deferred, £14,444 relates to course fees and event fees paid in advance in August for the term starting in September 2023, and deferred for the following financial year. None of these pre-paid fees had to be refunded and were realised as income in September 2023. £1,947 relates to the 2024 BGA Zrt grant for Teaching fees used in the financial year of 2024/25.

10. Prepaid and Accrued Expenses

£90 pre-paid expense relates to the portion of the annual Google Mail subscription relating to the period 2024/25.

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 and grants 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. These services were considered at a value of £10/h. Volunteer hours for non-professional services are not

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represented in the accounts but have exceeded 200 hours in the year. Cakes and books donated for sale and eligible for Gift Aid were not recognised this year. Other inkind 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: £3,250

Fees paid for the teachers, all of whom are self-employed and work on a fixed-term contract basis: £10,770, of which £3,700 are related party transactions.

Teaching Materials: £2,006

Management Fees: £9,931, of which £8,559 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 Examlnef s Report Report to the trusteesldlrectorsl members of 14Uh) ¢A£IAd CvLTO¢AL ￿(oCIAT0￿ L7b On accounts for the year ended SI AUQVST 102-4 Charity no.: IIu-¥-I lo Company no.: 76oC 40L Set out on pages I report lo the Charity trustees on my examination of the accounts of the Company for the year ended Responsibilities and basis of report As the charity's trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance wtth the requirements of the Companies Act 2006 ("the 2006 A¢t'l. Having salisfied myself thal the accounls of the Company are not required lo be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charil￿$ accounts as carried out under section 145 of the Charilies Act 2011 1.the 2011 Acfl. In ¢arying out my examination, I have followed the Directions given by the Charity Commission (under section 14515llbl of the 2011 Act. Indèpendent examinotrs statement he company s gross income exceeded £250,000 and l am qualified lo undertake the examination by being a qualified member of linsert name of applicable listed bodyll- Delete [ l rf not applicable. I have completed my examinab"on. I confirm that no material matters have come to my attention (other than that disclosed below") which gives me cause to believe that.. accounting records were not kept in accordance with section 386 of the Companies Act 2006. or . the accounts do not accord wilh such records., or the a¢counts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination; or .the a¢¢ounls have not been prepared in accordance with the Charities SORP {FRS102). IER 18

I have no concems and have come auoss no other matters in connection with Ihe examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Please delete th& words in the brackets rf they do not spply. Slgned: Date: i **AgcJf 2¢A Name: Relevant professlonal qualification{s) or body {If any): Address: Ifl £IQ+- EkJBY KT IE qG£ Section B Disclosure Only cornplele if the examiner needs lo highlight malerial mallers of con¢em {see CC32. Independent examination of chaftty accounts= directions and guidance for examiner51- Give here brief details of any items that the examiner wishes to dlsclose. IoF4 IER 19