**DAVID LYNCH FOUNDATION UK**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021**
## **DAVID LYNCH FOUNDATION UK**
**(A company limited by guarantee)**
**DIRECTORS AND TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021**
**HastingsWade** _Chartered Certified Accountants and Registered Auditors_ **Stowmarket Suffolk**
**DAVID LYNCH FOUNDATION UK**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021**
## **CONTENTS**
||Page|
|---|---|
|Directors’ and Trustees’ Report|1 - 7|
|Independent Examiner’s Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10 - 11|
|Notes to the Financial Statements|12 - 18|
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES**
The directors, who are also the trustees, present their report and the financial statements of the company for the year ended 28 February 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 published in October 2019.
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
**Charity Name** - David Lynch Foundation UK
**Charity Registration Number** – 1146643 **Company Registration Number** – 07933959
**Registered office and Operational Address -** 9 Garden Square, Rendlesham, Woodbridge, Suffolk IP12 2GW
## **Directors/Trustees**
The Directors are as follows –
Dr Peter Warburton (Chief Executive Officer)
Dr Deirdre Parsons (Executive Director)
Norma Sullivan (Secretary and Trustee)
Nigel Barlow David Lynch Dr John Hagelin Dr Robert Roth
## **Professional Advisers**
**Bankers -** CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Mailing, Kent, ME194JQ
**Solicitors -** Bates Wells & Braithwaite London LLP, 2-6 Cannon Street, London EC4M 6YH
**Independent Examiner -** Mrs Christine Wade, HastingsWade, Chartered Certified Accountants, 58-60 Stowupland Road, Stowmarket, Suffolk, IP14 5AL
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Legal Status**
David Lynch Foundation UK (DLF UK) is a private charitable company limited by guarantee without share capital incorporated on 2 February 2012 in England and Wales and registered as a charity on 28 March 2012. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up during the
1
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
period of membership or within one year after, each member undertakes to contribute such amount, as may be required not exceeding £1.00.
## **Appointment of Trustees**
The directors of the company are also the charity trustees for the purposes of charity law. As stated in the Articles there will be seven trustees including three trustees appointed by the trustees of the David Lynch Foundation US and another four trustees who are residents of the UK (each a “non-US Foundation Trustee”). The trustees are appointed and adhere to the articles of Association (Article25).
All Trustees give their time voluntarily except Deirdre Parsons who holds the position of Executive Director. The terms of her engagement are set out in accordance to Article 4.6.5.
Any expenses reclaimed from the Charity are following the guidelines of the Articles and are recorded in the financial statements of the charity.
## **Trustee Induction and Training**
New Trustees are recruited from a group of practitioners of Transcendental Meditation and teachers of Transcendental Meditation who are well-known to the Trustees and who have many years’ experience of teaching and working for other related charities. The Trust Deed stipulates that the number of Trustees must not be less than three or more than seven. The existing Trustees may appoint new Trustees by a resolution of a meeting of the Trustees. A memorandum of appointment shall be signed and sealed by the person presiding the meeting and attested by two others present at the meeting.
New Trustees receive training notes and undergo training sessions to brief them on their legal obligations under charity law and introduce them to the Trust Deed, Charity organisation and management structure, the latest statutory accounts and management accounts, tax law, employment law returns to be completed, the Data Protection Act, the advisers and accountants of the Charity and current issues and future plans of the Charity.
## **Organisational Structure**
Policy decisions of the David Lynch Foundation UK (DLF UK) are made by the Trustees and the day to day running of the Charity is carried out by the Executive Director, with support from Transcendental Meditation teachers and volunteers for expansion, promotion and fundraising.
DLF UK partners with Maharishi Foundation (registered charity No. 270157, in England and Wales) to employ qualified teachers of Transcendental Meditation to teach individuals and groups for the duration of DLF UK projects.
All those working with DLF UK are DBS checked and suitable to work with at-risk groups.
## **OBJECTIVES AND ACTIVITIES**
The David Lynch Foundation UK is dedicated to helping people of all ages from all walks of life in the UK and worldwide overcome stress, suffering, and hardship, and unfold the full potential of life. We use the stress-reducing programme, Transcendental Meditation, which is scientifically proven to promote creativity, happiness, success, and peace. Our methodologies transform lives from within and we especially focus on vulnerable and disadvantaged groups, including the homeless, prisoners, and war veterans suffering from Post-Traumatic Stress Disorder (PTSD). The charity also offers financial support to bring Transcendental Meditation to stressed teachers and students and the introduction of “Quiet Time with Transcendental Meditation” to schools across the UK.
The following programmes offered by the David Lynch Foundation UK promote the benefits outlined in the objectives of the Charity:
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
## **Teaching Transcendental Meditation to vulnerable and disadvantaged groups**
Transcendental Meditation is a simple, natural, effortless procedure practised for 15 to 20 minutes in the morning and evening, while sitting comfortably with the eyes closed. It is a simple mental technique, which gives a unique quality of rest to mind and body. The technique allows the activity of the mind to settle down in a natural way until it is left quiet, yet wide awake. It allows stress and tiredness to be dissolved naturally, resulting in greater energy, clarity and enjoyment of life.
Anyone can practise Transcendental Meditation. The practice does not conflict with any beliefs, religious or otherwise. Its benefits are widely validated proving benefits in every aspect of life: 600 scientific studies conducted at 250 independent universities and institutions in 33 countries, published in over 150 of the world's leading scientific journals.
The Transcendental Meditation course for at-risk groups is taught over a period of six months. The first step to learn begins with an introductory presentation on Transcendental Meditation (1 hour). Following this the course of instruction consists of four sessions held over four consecutive days. The first session is a personal instruction and is conducted one to one (1 hour), and the subsequent three sessions are group sessions (1.5 hour each session).
In addition to the initial course of instruction there is a six-month follow-up, with regular group and individual sessions, which are scheduled each week for the first month and every two weeks in the second month. The remaining sessions are scheduled once a month over four months and are held in groups and for each individual as necessary. These sessions ensure the individual is practising Transcendental Meditation correctly, to gain the full benefits.
The following is a more detailed explanation of the areas of society where we have identified our programmes can be most effective:
## **Children, Young Adults, Teachers and Schools Traumatic stress: the silent epidemic amongst the young**
Escalating stress levels are a reality amongst thousands of children and young adults in the UK who grow up in a climate of fear, bullying, violence, and substance abuse— stress that impedes academic achievement and undermines physical and mental health:
## **Our approach - Quiet Time with Transcendental Meditation**
The Quiet Time with Transcendental Meditation programme develops the potential of the brain and reduces the acute stresses that undermine learning and health. It is a practical, highly effective approach to promote learning readiness among students - thereby markedly improving their academic performance and success in life.
## **Benefits**
Transcendental Meditation has already been incorporated into schools in the UK as well as hundreds of public, charter, and private schools throughout the United States and around the world. Supported by an extensive body of independent research verifying its benefits, students practising Transcendental Meditation score higher on intelligence tests, close the achievement gap, improve test scores, and have higher graduation rates compared to students in control groups. Meditating students also show reduced stress levels, anxiety, depression, violence, and substance abuse. This results in reduced absenteeism, dropout rates, suspensions, and expulsions.
## **Armed Forces Veterans and Military Personnel Overcoming the nightmare of Post-Traumatic Stress Disorder (PTSD):**
Many Armed Forces veterans find it difficult to reintegrate into society. Veterans are often loath to acknowledge to themselves or others the inner wounds of war after they return home from combat.
Healing those wounds requires an approach that directly impacts the neurophysiology underlying PTSD.
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
The symptoms of military PTSD include flashbacks, nightmares, anger, anxiety and depression - often leading to homelessness, violence, alcohol and substance abuse, job loss, and suicide.
## **Our approach - Operation Warrior Wellness (OWW)**
Operation Warrior Wellness offers Transcendental Meditation, a scientifically proven approach, which can be easily learned and practised in private, to help relieve traumatic stress and overcome the nightmare of PTSD, while simultaneously promoting resilience and wellbeing for veterans, military personnel and their families.
## **The TM-based Resilient Warrior Programme**
An initiative already established in the USA and planned for a future launch in the UK. The OWW initiative has partnered with leading veterans service organisations, Army and Marine bases and VA medical centres within the USA to deliver the Resilient Warrior Programme to active-duty personnel and military families in need.
## **Benefits**
Research on meditating veterans in the USA has shown that the technique significantly reduces the psychosocial symptoms of stress, anxiety, and depression.
The technique produces a profound state of deep rest, while enlivening the full brain. The experience of “restful alertness” gained during the practice of Transcendental Meditation is at the basis of the marked reductions in symptoms of PTSD and the overall improvement in the quality of life of the veteran and serving personnel.
## **The Homeless – re-entry programme Addressing the rising tide of homelessness in the UK:**
The experience of homelessness is traumatic, isolating, and destructive, and homeless people are some of the most vulnerable and excluded in our society. Many people have suffered distressing experiences that have led to homelessness, such as domestic violence; breakdown of a relationship; loss of their home; fleeing persecution from another country; drug and alcohol misuse or mental health problems.
Along with proper housing, education, job training, and a network of qualified support, these adults and children must be equipped with the tools to overcome the traumatic stresses that fuelled their descent into homelessness. These stresses, if left unchecked, often cause them to relapse.
## **Our approach**
The David Lynch Foundation UK offers Transcendental Meditation as a re-entry programme for the homeless: a practical, highly effective approach to overcome the traumatic stresses that fuelled their descent into homelessness and enable their re- integration into society and to fulfil their potential.
## **Benefits**
Research has shown that Transcendental Meditation can help in reducing acute and chronic stress and stress-related disorders, including anxiety and depression. In addition, benefits from regular practice show potential to overcome addictions, an increase in self-esteem and inner calmness and improved emotional wellbeing. Transcendental Meditation also promotes healthy, coherent brain functioning - the basis for improved decision-making, judgment, and impulse control to support a healthy, productive, self-sufficient life.
## **Rehabilitation for Prisoners and Young Offenders Breaking the cycle:**
A significant proportion of crime is committed by offenders who have multiple problems. Evidence shows that drug dependency, mental illness, stress, frustration, and poor education fuel criminal behaviour.
The origins of criminal behaviour can often be traced back to the long-term impact of traumatic stress. Unless a rehabilitation programme for the men and women in prison effectively targets this disorder, the rehabilitation is often ineffective, and incarceration and reconviction rates will not be reduced and may even increase. This results in
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
considerable pain and suffering for the victims of crime, significant expense to taxpayers, and substantial waste of the lives of those imprisoned.
## **Our approach - Freedom Behind Bars**
For 35 years, Transcendental Meditation has been taught with significant benefit to inmates and guards in prisons in the USA, including San Quentin, Folsom, and Walpole. In 2015/16 pilot programmes were delivered to prisoners and prison personnel in two prisons in England. As part of a new research study, further UK projects are being developed in this area in the coming year.
## **Benefits**
Transcendental Meditation brings about deep relaxation and relief from stress, anxiety, and depression. This has been found to result in fewer rule infractions as well as reduced reconviction rates. Also, the technique is easy to learn and requires no belief or change in lifestyle and can be practised individually or as part of a group.
This programme can help with the genuine rehabilitation of offenders by lifting the oppressive stress within the prison community that undermines existing rehabilitation programmes.
## **Families and Communities**
## **Resolving crises in families and communities:**
The health and well-being of the family is crucial to the development and strength of our communities. Many vulnerable families are affected by problems that are prevalent in their environment, such as drug and alcohol abuse, crime, mental illness, homelessness and unemployment.
## **Our approach - simple natural effortless meditation**
Transcendental Meditation can help strengthen relationships and contribute to the stability of family life in society. This stress-reducing meditation programme helps families and communities in difficulty, as well as educational organisations facing the deleterious effects of extreme stress.
## **Benefits**
Scientific research shows that Transcendental Meditation reduces stress and improves general mental and physical well-being. When regularly practised morning and evening, this programme gives deep relaxation, which provides balance to mind and body. This reduces anxiety and depression, develops inner calmness, and promotes greater selfesteem and increased happiness.
## **Achievements to 28 February 2021**
Due to the Covid-19 Pandemic and restrictions on teaching Transcendental Meditation during the period of this report many of our activities were limited. However, the following developments took place during the year:
## **TM in Prison project**
Following the experience of teaching Transcendental Meditation in prisons we have been working towards an application for a grant awarded by the Ministry of Justice to support prisoners on release. The grant criteria encourage smaller charities, such as DLF UK, to partner with other organisations to create innovative programmes to help ex-prisoners to integrate into life outside of prison. During the period of this report, we were in discussions with other organisations to submit a grant application in October 2021.
## **School projects offering Quiet Time with Transcendental Meditation**
As outlined in the DLF UK trustee report 2019-2020, the research team, funded by University College London, University of Westminster, and University College Dublin, has completed the research paper on the results of the Quiet Time Programme in schools in Ireland and London. They have forwarded the paper to a peer reviewed educational journal for publication. We are currently waiting to know if the paper will be accepted for publication.
A video of the experiences of teachers and students who participated in Quiet Time has been produced.
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
## **Women’s’ Initiatives**
Three more of the residents from Amy Winehouse Foundation’s, ‘Amy’s space”, have learned TM in December 2020 and January 2021.
## **T M in business**
A TM course for WeTransfer employees planned for October 2020 was postponed due to the pandemic restrictions and started in October 2021.
## **Heal the Healers Now**
A new campaign in collaboration with Maharishi Foundation to teach TM to health professionals began in March 2020 at the start of the pandemic. TM Teachers around the UK have been raising donations from their local Meditators to offer scholarships for health professionals to learn TM at their local TM Centre; while nationally DLF UK has focused on raising funds to support a project on a larger scale with research for ambulance service staff.
A professional fundraiser, Sarah Bence, was appointed part-time in November 2020 to help raise funds for ambulance service staff to learn TM in the East of England. A grant of £20,000 from the Postcode Places Trust was awarded to teach TM to 50 ambulance service staff in the Norfolk area. Promotion of the project began in January 2021. TM courses started in August 2021 and will continue until December 2021. The project will be evaluated through online surveys completed by the participants pre and post the TM course. The evaluation will be conducted in collaboration with Maharishi International University, Iowa, USA.
## **Fundraising events:**
Tim Burgess cancelled his annual Tim Peaks event in 2020 due to Covid restrictions but raised £7,000 to support DLF UK by selling “Time Burgess badges” to fans.
Keith Parker and his wife Cathy, Meditators from the Kent area, raised £24,498 on a sponsored walk to help the DLF UK continue funding TM courses for those in need, especially health professionals. These funds were matched by a Barclay’s Bank scheme offered to retired Barclays employees, such as Keith, to support their chosen charities. The total amount raised was £48,996.
## **Social Media and website**
The DLF UK continues to raise awareness of the benefits of Transcendental Meditation for the public and for vulnerable and disadvantaged groups through social media, website, and networking. A website was set up for the “Heal the Healers Now” campaign. Video testimonials from health professionals, already practising Transcendental Meditation, were recorded to promote TM to other NHS employees: www.healthehealersnow.uk Also, a video was made to raise funds to teach ambulance service employees: https://vimeo.com/467367092
## **Sponsorship**
The DLF UK offers full and partial sponsorship for individuals in need who cannot afford to pay for the standard course fee for TM. This year there has been a specific focus on raising funds for the “Heal the Healers Now” campaign to support TM courses for health professionals.
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **REPORT OF THE DIRECTORS AND TRUSTEES (CONTINUED)**
## **Financial review**
DLF UK acts under licence to teach TM from Maharishi Foundation (registered educational charity no. 270157), the official provider of Transcendental Meditation in the UK. In this context, DLF UK makes a small contribution to MF UK for each project and for each individual taught TM. However, during the Covid-19 pandemic the Trustees of Maharishi Foundation (registered educational charity no. 270157) were restricted in offering TM courses to the public in the lockdown period and therefore were unable to make their monthly contributions to support the work of the DLF UK. However, Maharishi Foundation has generously offered to reinstate the monthly payment when TM teaching returns to normal after the Covid-19 restrictions are lifted.
The DLF UK makes regular monthly payments to repay a start-up loan from the Spiritual Regeneration Movement (SRM) (registered charity no. 204025). During the Covid-19 pandemic restrictions, the Trustees of SRM approved for the monthly payments to be suspended until regular TM teaching can be resumed.
Income for the charity up to 28 February 2021 was £61,441(excluding loans): this includes donations, teaching commission, courses and fundraising events
## **Public Benefit Statement**
This statement complies with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. We have reviewed this guidance when reviewing our aims and objectives and in planning future activities. The Trustees consider how planned activities will contribute to the aims and objectives they have set.
## **Reserves**
The Trustees are satisfied that the charity has adequate funds to carry out its day-to- day functions.
## **Small Company Exemption**
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
This report was approved by the Board on 15[th] November 2021
Deirdre Parsons Executive Director/Trustee
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF DAVID LYNCH FOUNDATION UK**
I report on the accounts of the company for the year ended 28 February 2021 which are set out on pages 10 to 18.
## **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 with the requirements of the Companies Act 2006 (”the 2006 Act”).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving 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 with such records; or
- the accounts 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 accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
_Christine D Wade FCCA HastingsWade Chartered Certified Accountants 58-60 Stowupland Road Stowmarket Suffolk IP14 5AL_
17[th] November 2021
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)**
## **FOR THE YEAR ENDED 28 FEBRUARY 2021**
||Note|Unrestricted|Restricted|Total|Total|
|---|---|---|---|---|---|
|||Funds|Funds|Funds|Funds|
|||2021|2021|2021|2020|
|||£|£|£|£|
|INCOMING RESOURCES||||||
|**Incoming resources from generated funds**||||||
|**_Voluntary income_**||||||
|Donations including gift aid||22,176|-|22,176|30,486|
|**Activities for generating funds**||||||
|Fundraising||-|-|-|2,723|
|**Investment income**||||||
|Bank Interest|2|2|-|2|2|
|**Incoming resources**||||||
|**from charitable activities**|3|39,263|-|39,263|33.813|
|||----------|---------|----------|----------|
|||61,441|-|61,441|67,024|
|||----------|---------|----------|----------|
|RESOURCES EXPENDED||||||
|**Cost of generating funds**||||||
|Fundraising||-|-|-|-|
|**Charitable activities**|4|12,601|-|12,601|22,092|
|**Governance costs**|4|18,631|-|18,631|36,440|
|||-----------|---------|----------|-----------|
|**Total resources expended**||31,232|-|31,232|58,532|
|||-----------|---------|----------|-----------|
|**Net incoming resources**||30,209|-|30,209|8,492|
|||======|======|======|======|
|**Net movement in funds**||30,209|-|30,209|8,492|
|**Balances brought forward**||(3,221)|-|(3,221)|(11,713)|
|||----------|----------|---------|----------|
|**Balances carried forward**||26,988|-|26,988|(3,221)|
|||======|======|======|======|
The annexed nots form an integral part of these financial statements
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **BALANCE SHEET AS AT 28 FEBRUARY 2021**
|||Unrestricted|Restricted|Total|Total|
|---|---|---|---|---|---|
|||funds|fund|Funds|Funds|
|||2021|2021|2021|2020|
||Note|£|£|£|£|
|FIXED ASSETS||||||
|Intangible assets|8|1,170|-|1,170
|1,350|
|Tangible assets|9|-|-|-
|-|
|||--------
|---------|---------
|----------|
|||1,170|-|1,170
|1,350|
|||---------
|---------|---------
|----------|
|CURRENT ASSETS||||||
|Debtors|10|475|-|475
|-|
|Cash at bank and in hand||41,520|-|41,520
|10,010|
|||---------
|---------|---------
|----------|
|||41,995
|-|41,995
|10,010|
|CREDITORS||||||
|Amounts falling due within|11|(3,996)|-|(3,996)
|(4,080)|
|one year||||||
|||-----------|----------|----------
|-------------|
|NET CURRENT ASSETS||37,999
|-|37,999
|5,930|
|||-----------|-----------|----------
|-------------|
|TOTAL ASSETS LESS CURRENT||39,169|-|39,169
|7,280|
|LIABILITIES||||||
|CREDITORS||||||
|Amounts falling due after more than|11|(12,181)
|-|(12,181)
|(10,501)|
|One year||||||
|||------------|------------|------------
|-------------|
|NET ASSETS/(LIABILITIES)||26,988|-|26,988|(3,221)|
|||------------|------------|------------
|-------------|
|FUNDS||||||
|Unrestricted fund||26,988|-|26,988|(3,221)|
|Restricted fund||-|-|-
|-|
|||------------|------------|------------
|-------------|
|Total charity funds||26,988|-|26,988|(3,221)|
|||**======**|**======**|**=======**|=======|
The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2021 in accordance with Section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for:
- a) Ensuring that the company keeps accounting records which comply with Section s 386 and 387 of the Companies Act 2006 and
- b) Preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
(Continued overleaf)
10
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
**BALANCE SHEET AS AT 28 FEBRUARY 2021 (continued)**
The financial statements were approved by the board of Directors on 15[th] November 2021 .
Signed on behalf of the Board
Deirdre Parsons Director
The annexed notes form an integral part of these financial statements
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES**
## **1 ACCOUNTING POLICIES**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year.
## a
## Basis of preparation
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland issued October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are presented in sterling and rounded to the nearest pound.
The charity constitutes a public benefit entity as defined by FRS 102.
- b Company status
The charity is a private company limited by guarantee incorporated in England and Wales. The address of the Registered Office is 9 Garden Square, Rendlesham, Woodbridge, Suffolk, IP12 2GW. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £ 1 per member of the charity.
- c
## Fund Accounting
- Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
- Designated funds are unrestricted funds as set aside by the trustees for particular purposes.
- Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
## d
## Incoming resources
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.
## e
## Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy and costs linked to the strategic management of the charity.
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## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
f Fixed Assets and Depreciation
Fixed assets are depreciated at the following rates:
Website over 3 year’s straight line basis. Trademarks over 10 year’s straight line basis.
g Deferred Income
Where money received in advance relates to activities to be held in the next financial year the income is included as deferred income.
## **2 INVESTMENT INCOME**
|**2**|**INVESTMENT INCOME**|||
|---|---|---|---|
|||2021|2020|
|||£|£|
||Bank interest|2|2|
|||======|======|
|**3**|**INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**|||
|||2021
|2020|
|||£
|£|
||Commission from teaching
|900|5,000|
||Course fees
|20,863|28,813|
||Grant
|17,500|-|
|||______|______|
|||39,263|33,813|
|||======|======|
13
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
## **4 TOTAL RESOURCES EXPENDED**
## **Cost of generating funds**
|**Cost of generating funds**|||
|---|---|---|
||2021|2020|
||£|£|
|**Unrestricted**|||
|Event Fund Raising|-|-|
||--------|-------|
|**Charitable activities**|||
||2021|2020|
||£|£|
|**Unrestricted activities**|||
|Course fees|10,775|11,293|
|Teaching commissions and royalties|-|3,078|
|Teaching project expenses|-|1,117|
|Hire of rooms|1,029|2,680|
|Donations|797|400|
||--------|--------|
||12,601|18,568|
||--------|--------|
|**Restricted funds**|||
|Course fees|-|3,524|
||--------|--------|
||12,601|22,092|
||--------|--------|
|**Governance costs**|||
||2021|2020|
||£|£|
|**Unrestricted funds**|||
|Office expenses|1,773|1,208|
|Administration and consultancy fees|6,000|7,500|
|Promotional expenditure|6,598|4,556|
|Bank charges|439|78|
|Travel and subsistence|1,605|6,723|
|Insurance|677|696|
|Independent examiners fees|960|930|
|Legal and professional fees|168|720|
|Loan interest|231|303|
|Depreciation|180|180|
||--------|--------|
||18,631|22,894|
||--------|--------|
14
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
## **4 TOTAL RESOURCES EXPENDED (continued)**
||2021|2020|
|---|---|---|
||£|£|
|**Restricted funds**|||
|Office expenses|-|22|
|Travel and subsistence|-|13,524|
||--------|--------|
||-|13,546|
||--------|--------|
||18,631|36,440|
||---------|--------|
|There were no employees in the year ended 28 February 2021. (2020: Nil).|||
## **5 TRANSACTIONS WITH TRUSTEES**
No trustee received any remuneration in the year.
In the year one trustee in her role of Executive Director received £6,000 for administration and consultancy fees. (2020: £7,500).
No Trustees (2020: None) were reimbursed expenses for travel, subsistence and office costs incurred on behalf of the charity (2020: £Nil).
## **6 NET RESOURCES EXPENDED FOR THE YEAR**
|This is stated after charging:|2021|2020|
|---|---|---|
||£|£|
|Executive Director’s fees|6,000|7,500|
|Depreciation|180|180|
|Independent Examiner’s fee|960|930|
||======|======|
15
**DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
## **7 TAXATION**
No charge to corporation tax arises as the company is a registered charity and is exempt under s505 of the Income and Corporation Taxes Act 1988.
## **8 INTANGIBLE FIXED ASSETS**
|||Trademarks|
|---|---|---|
||COST|£|
||As at 28 February 2020 and 28 February 2021|1,800|
|||______|
||DEPRECIATION||
||At 28 February 2020|450|
||Charge for the year|180|
|||______|
||At 28 February 2021
|630|
|||_ _____|
||NET BOOK VALUE||
||At 28 February 2021|1,170|
|||======|
||At 28 February 2020|1,350|
|||======|
|**9**|**TANGIBLE FIXED ASSETS**||
|||Website|
||COST|£|
||As at 28 February 2020 and 28 February 2021|971|
|||______|
||DEPRECIATION||
||Brought forward at 1 March 2020|971|
||Charge for the year|-|
|||______|
||At 28 February 2021|971|
|||______|
||NET BOOK VALUE||
||At 28 February 2021|-|
|||======|
||At 28 February 2020|-|
|||======|
16
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
## **10 DEBTORS**
|**10**|**DEBTORS**|||||
|---|---|---|---|---|---|
|||||2021|2020|
|||||£|£|
||Gift aid on Just Giving donations|||475|-|
|||||===|===|
|**11**|**CREDITORS**|||||
||**Amounts falling due within one year**|||2021|2020|
|||||£|£|
||Loan|||750|2,400|
||Other creditors|||3,246|1,680|
|||||______|______|
|||||3,996|4,080|
|||||=====|======|
|**11**|**CREDITORS**|||||
||**Amounts falling due after more than**|**one year**||2021|2020|
|||||£|£|
||Loan|||12,181|10,501|
|The|amount repayable by instalments after 5 years is £5,607.|||||
|**12**|**ANALYSIS OF NET LIABILITIES**|**BETWEEN FUNDS**||||
|||Unrestricted|Restricted|Total|Total|
|||Funds|Funds|Funds|Funds|
|||2021|2021|2021|2020|
|||£|£|£|£|
||Intangible fixed assets|1,170|-|1,170|1,350|
||Net current assets|37,999|-|37,999|5,930|
||Creditors falling due|(12,181)|-|(12,181)|(10,501)|
||after more than one year|||||
|||_______|______|______|______|
||Total net liabilities|26,988|-|26,988|( 3,221)|
|||=======|======|======|======|
|||Unrestricted|Restricted|Total|Total|
|||Funds|Funds|Funds|Funds|
|||2020|2020|2020|2019|
|||£|£|£|£|
||Intangible fixed assets|1,350|-|1,350|1,530|
||Net current assets|5,930|-|5,930|(245)|
||Creditors falling due|(10,501)|-|(10,501)|(12,998)|
||after more than one year|||||
|||_______|______|______|______|
||Total net liabilities|(3,221)|-|(3,221)|(11,713)|
|||======|======|======|======|
17
## **DAVID LYNCH FOUNDATION UK (A company limited by guarantee) Company Registration Number 07933959 YEAR ENDED 28 FEBRUARY 2021**
## **NOTES (CONTINUED)**
## **13 MOVEMENT IN FUNDS**
||At 28 February|Incoming|Outgoing|Transfers|At 28 February|
|---|---|---|---|---|---|
||2020|Resources|Resources||2021|
||£|£|£|£|£|
|Unrestricted funds|(3,221)|61,441|(31,232)|-|26,988|
||======|======|======|======|======|
||At 28 February|Incoming|Outgoing|Transfers|At 28 February|
||2019|Resources|Resources||2020|
||£|£|£|£|£|
|Unrestricted funds|(11,713)|49,954|(41,462)|-|(3,221)|
|Restricted funds|-|17,070|(17,070)|-|-|
||-----------|-----------|-----------|----------|----------|
||(11,713)|67,024|(58,532)|-|(3,221)|
||======|=====|======|======|======|
## **14 CAPITAL COMMITMENTS**
The company had no capital commitments at 28 February 2021 or 28 February 2020.
## **15 CONTINGENT LIABILITIES**
The company had no contingent liabilities at 28 February 2021 or at 28 February 2020.
## **16 CONTROLLING PARTY**
The charity is controlled by the Trustees.
## **17 RELATED PARTY TRANSACTIONS**
- a) One trustee of the David Lynch Foundation UK is also the Chief Executive of the Maharishi Foundation. In the year ended 28 February 2021 the David Lynch Foundation UK received £900 in support of its promotional activities that resulted in many people taking courses offered by Maharishi Foundation.
- b) By virtue of one common trustee and certain related objects and activities, the David Lynch Foundation UK is connected to the Spiritual Regeneration Movement of Great Britain. The Spiritual Regeneration Movement of Great Britain lent the charity £25,000 as a start-up loan in December 2013. Interest is charged at a rate of 3 per cent above base rate. At 28 February 2021 the amount of loan outstanding was £12,017.
18