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2024-03-31-accounts

Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report & Accounts Year ended 31 March 2024 Charity No: 1169053


Busen Martial Arts & Sports Trust CIO – Annual Report 31 March 2024

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


TABLE OF CONTENTS

Page
Trustees’ Annual Report 2 to 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 13
Independent Examiner’s Report 14

Busen Martial Arts & Sports Trust CIO – Annual Report 31 March 2024

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


The Trustees present their Annual Report and financial statements of Busen Martial Arts & Sports Trust CIO (also referred to as "Busen Trust" “Trust” or "the Charity") for the year ended 31 March 2024.

  1. The Charity is named Busen Martial Arts & Sports Trust. It is a Charitable Incorporated Organisation (“CIO”), and the Charity Registration number is: 1169053

  2. Busen Martial Arts & Sports Trust was granted charitable status in September 2016.

  3. The objects of the charity are, through the management of a Martial Arts and Fitness Centre for amateur sport, to:

  4. a. be a Centre of Excellence for Martial arts, particularly Karate and Judo, providing adults and young people with opportunities ranging from beginner level to international standard.

  5. b. promote accessible, affordable sport and fitness activities for adults and young people catering for a wide range of different abilities.

The principal areas of benefit are within the London Borough of Richmond upon Thames (“LBRuT”), however, the facility is available to wider communities reflecting the wider initial support from Sport England, London Marathon Charitable Trust, Hampton Fund and LBRuT.

  1. The principal office and website addresses are:

244 Stanley Road, Twickenham, TW2 5NP

www.bu-senTrust.org.uk

  1. The Trustees who served during the year were as follows:

Colin Sinclair – Chair of the Board of Trustees Roger Mills Mark Oakley Ian Barclay Keith Hourigan (appointed: 9.1.2024) David McSweeney (appointed: 24.1.2024)

  1. Patron and Key advisor to the Trust is as follows:

Frank Perry, Chief Instructor, Martial Arts also Head of United Kingdom Seiki Juku Karate Organisation (UKSKO) and the Busen Martial Arts School (9[th] Dan Karate)

  1. Building of the Busen Martial Arts & Fitness Centre commenced on site in June 2021. In the period April 2023 to March 2024, the following progress was achieved:

Year to March 2024

Undertook commissioning of the Dojo and Gymnasium and installation of additional Sport equipment both fixed and movable along with the use of children’s Soft Play apparatus enabling the very youngest of children to enjoy the facilities.

The Building ‘snagging list’ was worked through, following the signing of the 30-year lease in January 2023, and it is now down to a more manageable level to be able to operate and function fully.

Regular classes were in place for the following activities – Karate, Judo, Gymnastics, Ju-Jitsu, Box fit and Soft Play; Membership was 483 (2023: 229) in total and weekly attendances averaging 761 (2023:463).


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


March 2024

The Trustees and Management were delighted with the Official Opening of the Centre ably conducted by Richmond Mayor, Councillor Suzette Nicholson, and amongst the dignitaries attending was Sir Vince Cable, Councillor Gareth Roberts, Council Leader and other Council members from Richmond Borough (LBRuT), Michael Dinsdale of the World Karate Federation took the opportunity to also present our Patron with a 9[th] Dan award. The evening was also treated to various martial art demonstrations culminating with a double ice break by Sensei Joe Perry and Shihan Frank Parry.

8. Funding of the Centre from start up

By way of background, the source of the funding to build the new Martial Arts & Sports Centre at Stanley Road in Teddington is summarised below:-

Capital funding towards the new building (built and owned by LBRuT):

Busen Martial Arts and Sports Trust £350,000
Sport England £250,000
London Marathon Charitable Trust £200,000
London Borough of Richmond upon Thames £1,282,300
Funding for equipment towards the new building:
Busen Martial Arts & Sports Trust £50,000
Hampton Fund £50,000

Funding for equipment towards the new building:

The Trust was loaned money from the Chair of the Trustees and the Patron, further details are in Note 9 to the financial statements.


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


  1. Assets of the Charity as of 31 March 2024

  2. a. Leasehold improvements with a carrying value of £294,167 (2023: £297,500) linked to the 30-year lease followed by a 10 year right to renew.

  3. b. Equipment with net book value of £81,413 (2023: £74,548) including, judo mats, sports, fitness and soft play equipment.

  4. c. Financial assets: Trade debtors £7,770 (2023:£232) and a Cash balance £36,600 (2023: £18,870)

10. Risks to the Charity

The Charity exists to deliver its objectives through the management of the Martial Arts & Fitness Centre. Current principal risks identified are:

Demand – if the use of the Centre does not meet with the Trust’s minimum targets to operate at, or above, break-even. The first 15 months of operation demonstrated that there is strong demand for the Centre’s programmes and the Centre is a going concern.

Overhead costs - particularly with regard to Staff and Energy costs, especially in future periods following the Budget of November 2024 and the increases in national insurance costs effective from April 2025. The building is very energy efficient, and the best possible tariff has been negotiated with suppliers.

Building defects - LBRuT accepted Practical Completion, and the Trust signed the lease and took possession of the building although there were a number of defects and a large number of snagging items.

People - the Centre’s development is dependent on a relatively small number of key officers and Trustees. The last two main risk areas of expertise identified last year, Talent and Building management experience, have now been mitigated further with the proposed appointment of Richard Eve as a Trustee in 2025 and access to HR Consultants as and when needed. Middle management staff will be trained to be able to also cover in the event of absences at any senior level.

11. Public Benefit Statement

The new Centre currently has 483 (2023: 229) members providing 761 (2023: 463) average attendances per week; 2023/24 was a full year.

The Centre is aiming to achieve 1000 members and 2500 attendances per week at its seasonal peaks within 5 years of operation, although expects annual averages to be lower than this.

Discounted memberships are available to families on income support, universal credit, free school meals, unemployed and similar hardships.

The Charity is developing a range of socially beneficial programmes including access for children with a wide range of disabilities and exercise referral in conjunction with LBRuT and the NHS.

  1. The financial statements have been subject to scrutiny by an independent examiner and his report follows the financial statements which are based on the Charity Commission template for CIOs (referenced CC17) along with the template for Independent Examiners.

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and to comply with the Charity's governing document, the Charities Act 2011 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 (FRS 102) (effective 1 January 2019).

The Trustees prepared a Reserves Policy during 2024 now that the Charity is fully established and following a full year of Charitable Activities the Trustees primary Reserves objective in the foreseeable future is to grow sufficient funds and capital to be able to finance the Activities and, begin to repay the subordinated loans (see Note 9); the loan repayments will be regularly reviewed balanced by meeting the Charity’s principal objectives and, therefore, the Reserves policy recognises that any repayments will have to be done most likely over the medium to long term, subject to the continuing fundraising activities being successful in generating annual surpluses in the meantime.

Approved by the Board of Trustees on 25[th] January 2025 and signed on its behalf:

…………………………………………..

Colin Sinclair Chair of the Board of Trustees

Date: 25 January 2025


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053

________________________________

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 March 2024

Restricted
Unrestricted Income Total
Funds Funds 2024
Notes £ £ £
Income
Donations & legacies 3 - - -
Charitable activities* 3 261,817 - 261,817
Total income 261,817 - 261,817
Expenditure
Charitable activities* 4 231,854 10,000 241,854
Total expenditure 231,854 10,000 241,854
Net movement in funds 29,963 (10,000) 19,963
Reconciliation of funds:
Total funds brought forward 1 April 2022 2,235 47,500 49,735
Total funds carried forward 31 March 2023 32,198 37,500 69,698
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 March 2023
Restricted
Unrestricted Income Total
Funds Funds 2023
Notes £ £ £
Income
Donations & legacies 3 50,000 50,000
Charitable activities* 3 28,578 28,578
Total income 28,578 50,000 78,578
Expenditure
Charitable activities* 4 26,343 2,500 28,843
Total expenditure 26,343 2,500 28,843
Net movement in funds 2,235 47,500 49,735
Reconciliation of funds:
Total funds brought forward 1 April 2022 - - -
Total funds carried forward 31 March 2023 2,235 47,500 49,735

*The Charitable activities commenced in January 2023 following occupation of the Martial Arts and Fitness Centre


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


BALANCE SHEET as at 31 March 2024

BALANCE SHEET as at 31 March 2024
2024 2024 2023 2023
Notes £ £ £ £
FIXED ASSETS
Tangible assets 6 375,580 372,048
Total fixed assets 375,580 372,048
CURRENT ASSETS
Debtors 7 7,770 232
Cash at bank 36,600 18,870
Total current assets 44,370 19,102
CREDITORS:amounts due within one year 8
(21,294)
(21,294) (12,436) (12,436)
Net Current assets 23,076 6,666
Total assets less current liabilities 398,656 378,714
CREDITORS:amounts due after one year 9 (328,958) (328,979)
NET ASSETS 69,698 49,735
CHARITY FUNDS
Restricted income funds 12 37,500 47,500
Unrestricted funds 12 32,298 2,235
TOTAL FUNDS 69,698 49,735

The financial statements on pages 6 to 13 were approved by the Board of Trustees on 25 January 2025 and signed on its behalf by:

………………………………………..

Colin Sinclair Chair of Board of Trustees

25 January 2025


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


1. ACCOUNTING POLICIES

Basis of accounting

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and under the historical cost convention, except as modified for the annual revaluation of fixed asset investments.

Within the definitions of FRS 102, the Charity is a public benefit entity.

The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the Charity's governing document, the Charities Act 2011 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 (FRS 102) (effective 1 January 2019).

Going concern

The global economy has been significantly impacted by the COVID-19 pandemic, war in the Ukraine, a spike in energy prices and high levels of inflation continue into 2025. This will continue to be a challenging time for our Trustees and the People running the Centre. However, the Trustees have considered the future likely cash flows for the Charity covering a period of at least twelve months from the date of approval of these financial statements, and they are confident that sufficient funding is available to support the on-going activities of the Charity. The financial statements have, therefore, been prepared on a going concern basis.

The financial statements do not include any adjustments that would result should the going concern basis of preparation not be appropriate. In the event that this basis is not appropriate provisions may be required and assets may need to be written down to their recoverable amount with additional liabilities possibly emerging.

Income

General donations and other similar types of voluntary income are brought into account when receivable and donated income is included gross. Donations given for specific purposes are treated as restricted income.

Investment income is accounted for on a receivable basis once the dividend has been declared or the interest has been earned.

Income receivable from charitable activities is recognised as income when earned by the Charity.

Expenditure

All expenditure is accounted for on an accruals basis and is allocated to the Charity's principal activity where the costs can be identified as being directly related to that activity. All costs that cannot be identified as relating directly to the Charity's principal activity are categorised as either support costs or governance costs. Any costs that cannot be specifically categorised are allocated in proportions based upon a suitable ratio applicable to the nature of the cost involved.

Governance costs are the costs associated in running the Charity as a United Kingdom charitable incorporated organisation and specifically include the costs of the external independent examination.

Grants payable are recognised in the period in which the approved offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised only when the conditions attaching to the award are fulfilled. Grants offered subject to conditions, which have not been met at the balance sheet date, are noted as a potential commitment, but are not treated as a liability.


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


Tangible fixed assets

All tangible assets purchased that have an expected useful economic life that exceeds one year are capitalised and classified as tangible fixed assets. Tangible fixed assets are stated at historical cost less depreciation. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write each asset down to its estimated residual value over its expected useful life, as follows:

Long leasehold property improvements 3.33% straight line
Fixtures, fittings, and equipment 20.0% straight line

Financial instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are therefore classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities, or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities.

Financial assets and liabilities

The Charity's debtors and creditors that meet the definition of either a financial asset or a financial liability are initially recognised at the transaction value and thereafter are stated at amortised cost using the effective interest method.

Fund accounting

The general fund comprises the accumulated surpluses of unrestricted income over expenditure, which are available for use in furtherance of the general objectives of the Charity.

Restricted funds are funds subject to specific conditions imposed by donors. The purpose and use of the restricted funds are set out in the notes to the financial statements. Amounts unspent at the year-end are carried forward in the balance sheet.

Future Change in Accounting Policies

FRS102 was amended in 2024 with the associated changes in the Charities SORP expected to be effective in 2026; the most likely impact will be the introduction of the long leasehold building onto the Balance Sheet as an asset with a Right Of Use with a corresponding lease liability. Other changes are not expected to be materially different.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There were no specific judgements, estimates and assumptions that were critical to the preparation of these financial statements.


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


3.
Analysis of Income
Details
Donation from Hampton Fund
(Charity no. 211756)
Charitable activities:
Martial Arts
Gym membership
Gymnastics classes
Other
Total income
4.
Analysis of Expenditure
Details
Charitable activities:
Teaching instructors
Centre staff costs (note 5)
Rent payable
Repairs & maintenance
Depreciation
Equipment rental
Utilities & cleaning
Materials
IT software & consumables
Telephone & internet
Advertising & marketing
Printing and stationery
Training
Accountancy
Consultancy
Insurances
Bank charges
Charitable donation
Travel
Total expenditure on raising funds
Unrestricted funds
Restricted
Income funds
TOTAL
TOTAL
2024
2023
2024
2023
2024
2023
£
£
£
£
£
£
-
-
-
50,000
-
50,000
164,464
16,448
-
-
164,464
16,448
46,616
9,071
-
-
46,616
9,071
36,906
3,059
-
-
36,906
3,059
13,831
-
-
-
13,831
-
261,817
28,578
-
50,000
261,817
78,578
Unrestricted funds
Restricted
Income funds
TOTAL TOTAL
2024
2023
2024
2023
2024
2023
£
£
£
£
£
£
90,016
7,915
-
-
90,016
7,915
55,972
7,530
-
-
55,972
7,530
3,803
-
-
3,803
-
4,196
1,250
-
-
4,196
1,250
10,302
3,271
10,000
2,500
20,302
5,771
19,867
-
-
-
19,867
-
22,927
-
-
22,927
-
2,651
204
-
-
2,651
204
7,012
4,140
-
-
7,012
4,140
1,731
203
-
-
1,731
203
6,245
783
-
-
6,245
783
1,236
57
-
-
1,236
57
473
-
-
-
473
-
2,544
800
-
-
2,544
800
1,440
-
-
-
1,440
-
1,240
133
-
-
1,240
133
84
57
-
-
84
57
75
-
-
-
75
-
40
-
-
-
40
-
231,854
26,343
10,000
2,500
241,854
28,843

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


5. Staff costs

The Centre staff were subcontracted for the period to March 2023 from Busen Martial Arts School. Full time employees were recruited in April 2023. The Trustees were very grateful again for the volunteering provided by many people in the year under review and the initial period when opening the Centre back in January 2023 followed by the Official Opening in March 2024..

6.
Tangible fixed assets
Cost
At the beginning of the year
Additions
At the end of the year
Depreciation(SL= Straight Line basis & %Rate p.a.)
At the beginning of the year
Charge for the year
At the end of the year
Net book value
At the beginning of the year
At the end of the year
7.
DEBTORS
Trade debtors
Prepayments
Total
8.
CREDITORS DUE WITHIN ONE YEAR
Trade creditors
Accruals
Membership fees in advance
HMRC: PAYE deductions
Pension contributions
Total
Leasehold
Improvements
£
Fittings and
Equipment
£
Total
£
Leasehold
Improvements
£
Fittings and
Equipment
£
Total
£
300,000
-
77,819
377,819
23,835
23,835
300,000 101,654
401,654
3.33% SL 20% SL
2,500
3,333
3,271
5,771
16,970
20,303
5,833 20,241
26,074
297,500 74,548
372,048
294,167 81,413
375,580
2024
£
2023
£
1,573
232
6,197
-
7,770
232
2024
£
2023
£
10,261
3,501
1,773
7,430
2,892
1,505
5,843
-
525
-
21,294
12,436

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


9. CREDITORS DUE AFTER ONE YEAR

9.
CREDITORS DUE AFTER ONE YEAR
2024 2023
£ £
Subordinated Loan by Trustee (Colin Sinclair) 50,000 50,000
Subordinated Loan by Patron (Frank Perry) 278,958 278,979
Total 328,958 328,979

The subordinated loan from the Trustee is interest free and repayable only once sufficient funds are available to commence repayment.

The subordinated loan from the Patron is interest free until repayment of the principal is in full; material repayments will only commence once sufficient funds are available to commence repayment and interest at a commercial savings rate will be applied until repayment is made in full. The interest element, if any, represents a contingent liability, and no reliable estimate can be made at this time.

After the year end, modest repayments started to be made for the loans in the summer of 2024, subject always to the forward-looking projections. The intention is to continue the repayments on a quarterly basis.

10. TRANSACTIONS WITH TRUSTEES AND RELATED PARTIES

Other than the subordinated loans mentioned above, in Note 9, the there were no transactions with Trustees or Related Parties to disclose.

Transactions with the Patron and his Busen Martial Arts School were all at arm’s length and the values were for services totalling £20,000 (2023: £6,000) which was not paid for until after the year end.

The name and logo of Bu’sen Martial Arts has been provided by the Patron on a royalty free basis.

11. RESERVES POLICY

The Trustees developed a Reserves Policy during 2024 following the Charity’s Activities commencing in January 2023 enabling a view to be taken on likely levels of demand. In the light of the excellent utilisation of the facility during 2024, the Trustees main focus over the foreseeable future is to grow sufficient surplus funds to pay down the subordinated loans which were the critical capital injected to enable the Charity to become fully operational. As detailed in Note 9 The allocation of funds will be balanced by meeting the Charity’s objectives thereby recognising the subordinated loan repayments will have to be done over the medium to long term, subject to the levels of surplus fundraising activities and any donations in the meantime. The continuing financial support provided by these subordinated loans is essential for the Trust to remain a going concern and this Policy will be reviewed annually hereafter.


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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


12.
CHARITY FUNDS
Current year 2024
Fund name
Purpose & Restrictions
Restricted
Income Fund:
Donation from
Hampton
Fund
To acquire Equipment and fittings
(Mats, Punchbags, Seating, Gym
equipment)
Unrestricted
Fund
Finance working capital of
Charity Activities
Total Funds
Prior year 2023
.Fund name
Purpose & Restrictions
Restricted
Income Fund:
Donation from
Hampton
Fund
To acquire Equipment and fittings
(Mats, Punchbags, Seating, Gym
equipment)
Unrestricted
Fund
Finance working capital of
Charity Activities
Total Funds
Balance
b/fwd
£
Income
£
Expenditure
£
Balance
c/fwd
£
47,500
-
10,000
37,500
2,235
261,817
231,854
32,198
49,735
261,817
241,854
69,698
Balance
b/fwd
£
Income
£
Expenditure
£
Balance
c/fwd
£
-
50,000
2,500
47,500
-
28,578
26,343
2,235
-
78,578
28,843
49,735

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Busen Martial Arts & Sports Trust CIO Trustees’ Annual Report For the year ended 31 March 2024

Charity No. 1169053


Independent Examiner’s Report

I report to the Trustees on my examination of the accounts of the Busen Martial Arts & Sports Trust (“the Trust”) set out on pages 6 to 13, for the year ended 31 March 2024.

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 and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission for England and Wales under section 145(5)(b) of the Act.

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:

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.

Signed……………………………………….

Mark Jones MAAT

Member of the Association of Accounting Technicians

Date: 25 January 2025


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