## **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** |**Notes**
**Income and endowments**
**from:**
Donations and legacies
3
Charitable activities
4
Venue hire
5
Grant income
6
**Total**
**Expenditure on:**
Charitable activities
7
Other
8
**Total**
Net gains on investments
**Net (expenditure)/income**
Transfers between funds
**Net (expenditure)/income**
**before other gains/(losses)**
**Other gains and losses**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**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 |Trade creditors
Other taxes and social security
Other creditors
13 **Movement in funds**
**Restricted funds:**
**Unrestricted funds:**
**General funds**
**Total funds**
14 **Analysis of net assets between funds**
Fixed assets
Net current assets
15 **Reconciliation of net cash**
Cash and cash equivalents
Net cash|**At 1 January**
**2021**
1,275,532
1,275,532|**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