2021-12-31-accounts - Korean Education Foundation

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Korean Education Foundation

Charity No. 1154679

Company No. 07409314

Trustees' Report and Unaudited Accounts

31 December 2021

Korean Education Foundation Contents

	Pages
Trustees' Annual Report	2 to 3
Independent Examiner's Report	4
Statement of Financial Activities	5
Summary Income and Expenditure Account	6
Balance Sheet	7
Notes to the Accounts	8 to 14

Page 1

Korean Education Foundation Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 December 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 07409314

Charity No. 1154679

Principal Office

Korean Community Centre 110 Coombe Lane Raynes Park London SW20 0AY

Registered Office

Korean Community Centre 110 Coombe Lane Raynes Park London SW20 0AY

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

MinJung Kim Kyoung-Sun Chung Jounga Joo Jong-Han Kim Seung Sub Jung Jaehoon Yeon President Of Kocham(Korean Chamber Of Commerce) Headmaster of London Korean School President of Korean Residents Society Director of Education of the Embassy of the Republic of Korea in the UK Consul General of the Embassy of the Republic of Korea in the UK or Any Officers of the Embassy appointed by the Cousul General

Accountants

BH1 Accounting Limited V307, Vox Studios 1-45 Durham Street Vauxhall London SE11 5JH

Page 2

Korean Education Foundation Trustees Annual Report

OBJECTIVES AND ACTIVITIES

The objective of the charitable company is 'the advancement of Korean language education in England for the children of Korean origin or descent and to support and advance the awareness of Korean culture in England'.

In preparing these financial statements the trustees have had regard to the Chairty Commission's guidance on public benefit

ACHIEVEMENTS AND PERFORMANCE

The Foundation continued to hire out venue space and rent out accommodation in the year to December 2021. The charity also managed to generate income from under £1000 donations from individual and institutional donors. Grants were honoured to institutions specialising in Korean Education and individual scholars studying the Korean language. In the year to December 2021 such grants totalling £6,620 were paid (2020: £11,181).

In the past 3 years, we have selected and supported 29 scholars throughout the period. In addition to our scholarship program, we have carried out 2 mentoring and networking events for developing future leaders.

FINANCIAL REVIEW

As we were unable to carry out our events at the pre-pandemic level, our donation income was largely affected. Despite the reduced income, the foundation should not face any financial challenges in the coming 12 months. Fund-raising events are due to run at full capacity again in the second half of 2022.

PLANS FOR FUTURE PERIODS

During 2022, the Foundation will seek to continue to fulfil its objectives in creative ways that will assist in the advancement of the Korean language and culture in England. The foundation is working towards continuously hosting student-focused events such as career and leadership workshops, and fund-raising events.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Foundation is a registered charity and a company limited by guarantee in England and Wales. The Foundation hold and regularly update an internal governance policy but is governed overall by its Memorandum and Articles of Association. Any new trustee appointment must be recommended by 2 existing trustees, and the appointment must be approved by a 2/3 vote of all trustees.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

Minjung Kim Trustee 31 December 2021

Page 3

Korean Education Foundation Independent Examiners Report

Independent Examiner's Report to the trustees of Korean Education Foundation

I report to the charity trustees on my examination of the financial statements of Korean Education Foundation for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.)

Having satisfied myself that the financial statements of the charity 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 charity's financial statements 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 can confirm that no material 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 2006 Act ; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the Charities SORP (FRS 102).

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 financial statements to be reached.

Sooman Cho ACMA CGMA CIMA BH1 Accounting Limited V307, Vox Studios

1-45 Durham Street

Vauxhall London

SE11 5JH 31 December 2021

Page 4

Korean Education Foundation Statement of Financial Activities

for the year ended 31 December 2021

Unrestricted funds 2021 £ 987 2,756 41,606 -	Total funds 2021 £ 987 2,756 41,606 -	Total funds 2020 £ 16,221 8,728 38,749 3,861
45,349 10,660 56,412	45,349 10,660 56,412	67,559 16,039 49,559
67,072 -	67,072 -	65,598 -
(21,723) -	(21,723) -	1,961 -
(21,723)	(21,723)	1,961
(21,723) 1,275,532	(21,723) 1,275,532	1,961 1,273,571
1,253,809	1,253,809	1,275,532

Page 5

Korean Education Foundation Summary Income and Expenditure Account

for the year ended 31 December 2021

Income Gross income for the year Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the year Net (expenditure)/income before tax for the year Net (expenditure )/income for the year	2021 £ 45,349 45,349 54,504 12,568 67,072 (21,723) (21,723)	2020 £ 67,566
		67,566
		53,611 12,568
		66,179
		1,387
		1,387

Page 6

Korean Education Foundation Balance Sheet

at 31 December 2021

Company No. 07409314 Notes 2021 £ Fixed assets Tangible assets 10 1,212,560 1,212,560 Current assets Debtors 11 - Cash at bank and in hand 52,773 52,773 Creditors:Amount falling due within one year 12 (11,524) Net current assets 41,249 Total assets less current liabilities 1,253,809 Net assets excluding pension asset or liability 1,253,809 Total net assets 1,253,809 The funds of the charity Restricted funds 13 Unrestricted funds 13 General funds 1,253,809 1,253,809 Reserves 13 Total funds 1,253,809	2020 £ 1,225,128
	1,225,129 1,176 60,269
	61,445 (11,041)
	50,404 1,275,533
	1,275,533
	1,275,533
	1,275,532
	1,275,532
	1,275,532

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 December 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 responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 31 December 2021

And signed on its behalf by:

Minjung Kim Trustee

31 December 2021

Page 7

Korean Education Foundation Notes to the Accounts

for the year ended 31 December 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 8

Korean Education Foundation Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

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

Page 9

Korean Education Foundation Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 10

Korean Education Foundation

Notes to the Accounts

3 Income from donations and legacies

Donations 4 Income from charitable activities Fundraising events 5 Income from other trading activities Venue hire 6 Other income Grant income 7 Expenditure on charitable activities Grants to individuals Grants to institutions Fundraising events Marketing	Unrestricted £ 987 987 Unrestricted £ 2,756 2,756 Unrestricted £ 41,606 41,606 Unrestricted £ 1,320 5,300 2,245 1,795 10,660	Total 2021 £ 987 987 Total 2021 £ 2,756 2,756 Total 2021 £ 41,606 41,606 Total 2021 £ - -	Total 2020 £ 16,221
			16,221
			Total 2020 £ 8,728
			8,728
			Total 2020 £ 38,749
			38,749
			Total 2020 £ 3,861
			3,861

		Total 2021 £ 1,320 5,300 2,245 1,795 10,660	Total 2020 £ 1,281 9,900 3,623 1,235
			16,039

Page 11

Korean Education Foundation Notes to the Accounts

8 Other expenditure

Employee costs Motor and travel costs Premises costs Amortisation, depreciation, impairment, profit/loss on disposal of fixed assets General administrative costs Legal and professional costs 9 Staff costs Salaries and wages Pension costs No employee received emoluments in excess of £60,000. 10 Tangible fixed assets Cost or revaluation At 1 January 2021 At 31 December 2021 Depreciation and impairment At 1 January 2021 Depreciation charge for the year At 31 December 2021 Net book values At 31 December 2021 At 31 December 2020 11 Debtors Prepayments and accrued income	Unrestricted £ 18,270 79 17,020 12,568 4,283 4,192 56,412 2021 18,000 270 18,270 £ 1,250,000 1,250,000 25,000 12,500 37,500 1,212,500 1,225,000 2021 £ - -	Total 2021 £ 18,270 79 17,020 12,568 4,283 4,192 56,412 £ 196 196 68 68 136 60 128	Total 2020 £ 13,769 33 12,473 12,568 3,131 7,585
			49,559
			2020 13,634 135
			13,769
			£ 1,250,196
			1,250,196
			25,068 12,568
			37,636
			1,212,560
			1,225,128
			2020 £ 1,176
			1,176

Page 12

Korean Education Foundation Notes to the Accounts

12 Creditors: amounts falling due within one year

2021 £ 8,396 618 2,510 11,524 Incoming resources (including other gains/losses ) £ 45,349 45,349 At 1 January 2021 £	Resources expended £ (67,072) (67,072) Unrestricted funds £ 1,212,560 41,249 1,253,809 Cash flows £	2020 £ 10,516 525 -
		11,041
		At 31 December 2021 £ 1,253,809
		1,253,809
		Total £ 1,212,560 41,249
		1,253,809
		At 31 December 2021 £
60,269	(7,496)	52,773
60,269 60,269	(7,496) (7,496)	52,773
		52,773

Page 13

Korean Education Foundation Notes to the Accounts

16 Commitments

Operating lease commitments

Annual commitments under non-cancellable operating leases are as follows:

	2021	2021	2020	2020
	Land and buildings	Other	Land and buildings	Other
	£	£	£	£
Operating leases with expiry date:	-	-	-	-
*Pension commitments*
		2021		2020
		£		£
The pension cost charge to the company
amounted to:		270		135

17 Related party disclosures Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 14