**Charity registration number: 1165900** ## **Eckankar United Kingdom CIO** **Report and Accounts** **31 December 2022** ## **Eckankar United Kingdom CIO Report and accounts Contents** ||**Page**| |---|---| |Charity information|1| |Chairman's statement|2| |Trustees' annual report|3 - 4| |Independent examiner's report|5| |Statement of Financial Activities|6| |Balance sheet|7| |Notes to the accounts|8 - 15| ## **Eckankar United Kingdom CIO Charity Information** ## **Trustees** S Mallett S Kumar J MacLennan D Beechcroft D Zwilling-Ikpoh Chairman President Secretary Treasurer/CFO ## **Independent examiner** Mrs N Howatson FCCA Marshall Smalley Accoun 22A Main Road Gedling Nottingham NG4 3HP ## **Bankers** NatWest Bank Plc Fleet Street Branch PO Box 281 156 Fleet Street London EC4A 2DX ## **Registered office** Eckankar UK International House 126 Colmore Row Birmingham B3 3AP 1 Chairnwi's Report An lTrPer￿n Younx Ad￿1 Mirt•nd Grrrt eveni In BIrtsth￿kn IApdl)artd * Youth FAmily ewnt in (Au￿&1) wtu (Cktsknxk Dated 30.1023 **Eckankar United Kingdom CIO Charity Registration Number: 1165900 Trustees' Annual Report** The Trustees present their Report and Accounts for the year ended 31 December 2022. ## **Reference and administrative details** Eckankar United Kingdom CIO is registered with the Charity Commission (No 1165900) and was registered as a charitable incorporated organisation on 7 March 2016. The principal address is Eckankar UK, International House, 126 Colmore Row, Birmingham, B3 3AP. ## **Trustees** The following persons served as trustees during the year: S Mallett Chairman S Kumar President J MacLennan Secretary D Beechcroft Treasurer/CFO D Zwilling-Ikpoh ## **Structure, governance and management** The Charity is constituted as a charitable incorporated organisation (CIO). The governing document of the Charity is the constitution dated 7 March 2016. There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law. The governance of the charity rests with the board of trustees, who are responsible for the implementation of all policies and procedures and the regular review, monitoring and control of their financial resources. Regular board mettings are held at least twice a year and ex-committee meetings are held on an as required basis. Trustees are appointed by the Board and serve for 1 year at a time. ## **Objectives and activities** The Charity is established to advance religion in accordance with the principles and tenets of ECKANKAR. The Charity's objectives and aims are: 1. To serve as a non-profit religious organisation through which and by which the ECKANKAR teachings may be given in the United Kingdom for the spritual benefit of its United Kingdom members and all others who seek spiritual upliftment, and; 2. To protect, follow, and teach the tenets, doctrines, and principles of ECKANKAR as interpreted and taught by The Living ECK Master, the spiritual head of ECKANKAR, who presently is Sri Harold Klemp, and ; 3. To exercise all rights, powers, and privileges necessary to fulfil the aforesaid objects, and to hold in trust and use all its property and assets exclusively for the benefit of its organisational objects. When undertaking the Charity's work, the trustees have had regard to the guidance issued by the Charity Commission on public benefit. 3 **Eckankar United Kingdom CIO Charity Registration Number: Trustees' Annual Report** **1165900** ## **Achievements and performance** The trustees consider that the objectives as laid out above have been met during the year under review and various measures have been put in place or are under review to ensure that as an organisation and in terms of its teachings ECKANKAR continues to thrive in the UK. ## **Future plans** The charity remains committed to the support of its UK members and to continue to implement initiatives and achieve its aims and objectives under the guidance of the parent church in the USA. ## **Financial review** The financial position of the Charity at the year end was as follows: |Net income
Unrestricted funds available for the general purposes of the Charity
Restricted funds
Total funds
Designated reserves included in unrestricted funds above|**2022**
**2021**
**£**
**£**
19,382
(28,713)
533,336
509,529
-
-
533,336
509,529
303,697
291,413| |---|---| ## _Reserves policy_ The trustee's aim is for annual income to at least meet annual expenditure. The current reserves would be required for possible future projects and capital expenditure. The trustees meet regularly to discuss the level of reserves. ## _Going concern_ After making enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. ## _Risk management_ The trustees have made assessments of the major financial and operating risks that the charity faces and have put in place controls to mitigate or eliminate them. These are continuously monitored at board meetings. This report was approved by the Trustees on 30 October 2023 and signed on their behalf. S Mallett Chairman and Trustee 4 **Eckankar United Kingdom CIO Independent Examiner's Report** **Charity Registration No.: 1165900** ## **Independent Examiner's Report to the Trustees of Eckankar United Kingdom CIO on accounts for the year ended 31 December 2022** I report to the charity trustees on my examination of the accounts of the above charity ("the Trust") for the year ended 31 December 2022, which are set out on pages 6 to 15. ## **Responsibilities and basis of report** As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act"). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act. In carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that, in any material respect: - accounting records were not kept in accordance with section 130 of the Charities Act; or - the accounts did not comply with the accounting records; or - the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. 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. ## Nicola Howatson Nicola Howatson (Oct 31, 2023 10:50 GMT) Mrs N Howatson FCCA Marshall Smalley Accountants Chartered Accountants 22A Main Road Gedling Nottingham NG4 3HP Date: 31st October 2023 5 ## **Eckankar United Kingdom CIO Statement of Financial Activities for the year ended 31 December 2022** |**Incoming resources (Note 2)**
**Income and endowments from:**
Donations and legacies
Charitable activities
Investments
Other
**Total**
**Resources expended (Note 3)**
**Expenditure on:**
Charitable activities
Other
**Total**
**Net income/(expenditure)**
**Extraordinary items**
**Transfers between funds**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**£**
26,099
7,477
1,774
450
35,800
16,418
-
16,418
19,382
4,425
-
23,807
509,529
533,336|**Restricted**
**income**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total funds**
**£**
**26,099**
**7,477**
**1,774**
**450**
**35,800**
**16,418**
**-**
**16,418**
**19,382**
**4,425**
**-**
**23,807**
**509,529**
**533,336**|**Prior year**
**funds**
**£**
17,872
6,129
11
-
24,012
52,725
-
52,725
(28,713)
-
-
(28,713)
538,242
509,529| |---|---|---|---|---| 6 ## **Eckankar United Kingdom CIO Charity number: 1165900 Balance Sheet as at 31 December 2022** |**Notes**
**Fixed assets**
Tangible assets
7
**Total fixed assets**
**Current assets**
Stocks
8
Debtors
9
Cash at bank and in hand
10
**Total current assets**
**Creditors: amounts falling due**
**within one year**
11
**Net current assets**
**Total net assets**
**Funds of the Charity**
Restricted income funds
12
Unrestricted funds
12
**Total funds**|**Unrestricted**
**funds**
**£**
795
795
15,310
18,905
501,804
536,019
(3,478)
532,541
533,336|**Restricted**
**income**
**funds**
**£**
-
-
-
-
-
-
-
-
-|**Total this**
**year**
**£**
**795**
**795**
**15,310**
**18,905**
**501,804**
**536,019**
**(3,478)**
**532,541**
**533,336**
**-**
**533,336**
**533,336**|**Total last**
**year**
**£**
867
867
16,003
16,455
485,445
517,903
(9,241)
508,662
509,529
-
509,529
509,529| |---|---|---|---|---| Approved by the board of Trustees on: S Mallett Trustee S Kumar Trustee 7 **Eckankar United Kingdom CIO Notes to the Accounts for the year ended 31 December 2022** ## **1 Accounting policies** ## _**Basis of preparation**_ These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS102)) and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and with the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS102. ## _**Going concern**_ There are no material uncertainties about the charity's ability to continue. ## _**Recognition of income**_ Income is included in the Statement of Financial Activities (SoFA) when: - the charity becomes entitled to the resources; - it is more likely than not that the trustees will receive the resources; and - the monetary value can be measured with sufficient reliability. ## _Grants and donations_ Grants and donations are only included in the SoFA when the general income recognition criteria are met. In the case of performance related grants, income is only recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are met. Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. ## _Donated goods_ Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so. Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable. Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable. ## _Volunteer help_ The value of any voluntary help received is not included in the accounts but is described in the notes below. 8 ## **Eckankar United Kingdom CIO Notes to the Accounts for the year ended 31 December 2022** ## _Deferred income_ No material item of deferred income has been included in the accounts. ## _**Expenditure and liabilities**_ Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. ## _Support costs_ Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## _**Tangible fixed assets**_ Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: Equipment 15% reducing balance basis Office furniture & fittings 25% reducing balance basis Display plant 25% reducing balance basis ## _**Stocks**_ Stocks held for sale as part of non-charitable trade are measured at the lower or cost or net realisable value. Goods or services provided as part of a charitable activity are measured at net realisable value based on the service potential provided by items of stock. Work in progress is valued at cost less any foreseeable loss that is likely to occur on the contract. ## _**Debtors**_ Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received. ## _**Creditors**_ The charity has creditors which are measured at settlement amounts less any trade discounts. ## _**Provisions**_ Liabilities are measured at recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. 9 ## **Eckankar United Kingdom CIO Notes to the Accounts** ## **for the year ended 31 December 2022** ## **2 Analysis of income** |**Unrestricted**
**funds**
**£**
**Donations and legacies**
General donations
26,099
**Total**
26,099
**Charitable activities**
ECK Materials sales
7,477
**Total**
7,477
**Income from investments**
Interest received
1,774
**Total**
1,774
**Other**
Other incoming resources
450
**Total**
450
**TOTAL INCOME**
35,800
**3**
**Analysis of expenditure**
**Unrestricted**
**funds**
**£**
**Expenditure on charitable activities (note 4)**
Direct spending
11,483
Support costs
4,935
**Total**
16,418
**TOTAL EXPENDITURE**
16,418|**Restricted**
**income**
**funds**
**£**
-
-
-
-
-
-
-
-
-
**Restricted**
**income**
**funds**
**£**
-
-
-
-|**Total funds**
**£**
26,099
26,099
7,477
7,477
1,774
1,774
450
450
**35,800**
**Total funds**
**£**
**11,483**
**4,935**
**16,418**
**16,418**|**Prior year**
**funds**
**£**
17,872
17,872
6,129
6,129
11
11
-
-
24,012
**Prior year**
**funds**
**£**
42,472
10,253
52,725
52,725| |---|---|---|---| 10 ## **Eckankar United Kingdom CIO Notes to the Accounts** ## **for the year ended 31 December 2022** ## **4 Expenditure on charitable activities** |**Direct spending**
ECK Materials cost of sales (note 5)
Meeting costs
Seminar costs
Vahana costs
Student costs
**Support costs**
_Administrative overheads_
Accounts package
Insurance
Registered Office
Information Centre
Telephone
PO Box and postage costs
Stationery, printing and copying
_Professional fees_
Independent Examiners fee
Legal fees
_Financial costs_
Bank charges and paypal fees
Depreciation & amortisation|**Unrestricted**
**funds**
**£**
6,021
2,721
-
1,199
1,542
11,483
1,807
553
360
1,315
-
-
43
540
-
155
162
4,935|**Restricted**
**income**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total funds**
**£**
**6,021**
**2,721**
**-**
**1,199**
**1,542**
**11,483**
**1,807**
**553**
**360**
**1,315**
**-**
**-**
**43**
**540**
**-**
**155**
**162**
**4,935**|**Prior year**
**funds**
**£**
3,190
3,080
36,000
202
-
42,472
1,807
502
-
3,381
461
1,175
-
891
1,000
99
937
10,253| |---|---|---|---|---| 11 ## **Eckankar United Kingdom CIO** ## **Notes to the Accounts** **for the year ended 31 December 2022** ## **5 ECK Materials** |**Sales of materials**
**Cost of sales**
Stock brought forward
Purchases
Customs duties etc
Postage
Total stock value
Area stock adjustment re stocktake
Prior year adjustment
Adjusted stock value
Stock carried forward
Stock used
ECK Materials surplus for the year
**6**
**Extraordinary items**
Write off Paypal creditor not due|**Unrestricted**
**funds**
**£**
7,477
16,003
6,030
530
510
23,073
(1,730)
(12)
21,331
15,310
6,021
1,456|**Restricted**
**income**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-|**Total funds**
**£**
**7,477**
**16,003**
**6,030**
**530**
**510**
**23,073**
**(1,730)**
**(12)**
**21,331**
**15,310**
**6,021**
**1,456**
**2022**
**£**
4,425|**Prior year**
**funds**
**£**
6,129
14,506
2,957
-
-
17,463
1,730
-
19,193
16,003
3,190
2,939
**2021**
**£**
-| |---|---|---|---|---| 12 ## **Eckankar United Kingdom CIO Notes to the Accounts** ## **for the year ended 31 December 2022** ## **7 Tangible fixed assets** |**Cost**
At 1 January 2022
Additions
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for the year
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021|**Equipment**
**£**
3,723
90
3,813
2,856
162
3,018
795
867|**Office**
**furniture &**
**fittings**
**£**
4,011
-
4,011
4,011
-
4,011
-
-|**Display**
**plant**
**£**
3,145
-
3,145
3,145
-
3,145
-
-|**Total**
**£**
10,879
90
10,969
10,012
162
10,174
795
867| |---|---|---|---|---| |**8**
**Stocks**
**For**
**For**
**distribution**
**resale**
**£**
**£**
**Charitable activities:**
At 1 January 2022
-
16,003
Added in period
-
7,070
Expensed in period
-
(6,021)
Impaired
-
(1,742)
At 31 December 2022
-
15,310
**9**
**Debtors**
Other debtors
Amounts due after more than one year included above
**Stock**
Accrued income (Gift Aid)|**Work in**
**progress**
**£**
-
-
-
-
-
**2022**
**£**
15,470
3,435
18,905
-|**Total**
**£**
16,003
7,070
(6,021)
(1,742)
15,310
**2021**
**£**
13,470
2,985
16,455
-| |---|---|---| 13 ## **Eckankar United Kingdom CIO** ## **Notes to the Accounts** ## **for the year ended 31 December 2022** |**10 Cash at bank and in hand**
Short term deposits
Current accounts
Cash floats
**11 Creditors: amounts falling due within one year**
Accruals and deferred income
Other creditors
Paypal account|**2022**
**£**
164,000
337,772
32
501,804
**2022**
**£**
-
540
2,938
3,478|**2021**
**£**
206,012
279,364
69
485,445
**2021**
**£**
3,057
750
5,434
9,241| |---|---|---| 14 ## **Eckankar United Kingdom CIO Notes to the Accounts** ## **for the year ended 31 December 2022** ## **12 Charity funds** |**Current year**
At 1 January 2022
Income
Expenditure
At 31 December 2022
**Previous year**
At 1 January 2021
Income
Expenditure
At 31 December 2021|**ECK Temple**
**Centre**
**Designated**
**fund**
**General**
**funds**
**£**
**£**
291,413
218,116
12,284
23,516
-
(11,993)
303,697
229,639
289,521
248,721
1,892
22,120
-
(52,725)
291,413
218,116
**Unrestricted**|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-|**Total funds**
**£**
509,529
35,800
(11,993)
533,336
538,242
24,012
(52,725)
509,529| |---|---|---|---| ## **Unrestricted funds** ## _General funds_ These funds are held for meeting the objectives of the charity and to provide reserves for future activities and, subject to charity legislation, are free from all restrictions on their use. ## _ECK Temple Centre designated fund_ The ECK Temple Centre designated fund represents monies set aside by the trustees with the ultimate aim of buying a physical space in the UK. The funds have no formal restrictions and may be reallocated in the future if deemed necessary by the trustees. ## **13 Transactions with trustees and related parties** None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity in either the current or the prior reporting periods. No trustee expenses have been incurred in either the current or the prior reporting periods. ## _**Transactions with related parties**_ There have been no related party transactions during the current or prior reporting periods. 15 Eckankar United Kingdom Marshall Smalley Accountants Ltd CIO 22a Main Road Gedling Nottingham NG4 3HP ## Dear Sir, We write to confirm that to the best of our knowledge and belief, and, having made appropriate enquiries of other trustees and officials of the charity, the following representations given to you in connection with the preparation of the charity’s financial statements and the independent examination for the year ended 31[st] December 2022: - 1. We acknowledge as trustees our responsibility for the financial statements, which you have prepared for the company. All the accounting records have been made available to you for the purpose of your work and all transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and trustee meetings have been made available to you. 2. We confirm that we have declared all related party interests and transactions to you. 3. We confirm that there are no contingent liabilities. 4. We confirm that we have fully reviewed the liabilities included in the financial statements, that the liabilities are not understated and have been properly disclosed in the financial statements. 5. We confirm that we have fully reviewed the debtors in the financial statements, that the debtors are not overstated and have been properly disclosed in the financial statements. 6. We confirm that we have fully reviewed the restricted funds shown in the financial statements, that the restricted funds are not understated and have been properly disclosed in the financial statements. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. 7. We confirm the closing value of stock and work in progress as at 31[st] December 2022 as £15,310 and that it is correctly stated at the lower of cost or net realisable value. 8. We confirm that we are not aware of any after date events that materially alter the transactions or balances included in the financial statements. 9. We confirm that there are no reasons to assume that the charity should not be treated as a going concern. ## Yours faithfully ------------------------------------------------- Mr S Mallett 31/10/23 ------------------------------------------------- Date