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2023-03-31-accounts

Charity registration number 262540

SIRI GURU SINGH SABHA NORTHAMPTON

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

SIRI GURU SINGH SABHA NORTHAMPTON

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees H S Kooner
Dr RS Diu (Appointed 9 October 2022)
Mr N Chandi
Mr NS Sidhu-Brar
Mr CK Grewal
Charity number 262540
Principal address 35-37 St James Mill Road
St James
Northampton
NN5 5JW
Independent examiner Jervis & Partners
30 Harborough Road
Kingsthorpe
Northampton
NN2 7AZ
Bankers Lloyds Bank TSB
George Row
Northampton
National Westminster Bank
The Drapery Branch
41 The Drapery
Northampton
Executive Committee Amarjit Singh Atwal President
Bahadur Singh Mahil Secretary
Surjeet Singh Thind Treasurer
Nirmal Singh Chandi
Harbans Singh Kooner
Varinder Kaur Kooner
Ravinder Singh
Mandeep Singh Dhesi
Manpreet Singh Tiwana
Kulwinder Singh Bains
Lakvir Singh Basra
Kuljot Kaur Hans (Resigned December 2021)
Davinder Singh Minhas

SIRI GURU SINGH SABHA NORTHAMPTON

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 13

SIRI GURU SINGH SABHA NORTHAMPTON

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and 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).

Objectives and activities

The main object of the charity is the advancement of the Sikh Religion for the benefit of the public of Northamptonshire. In furtherance of the said object the Charity has the following powers:

To practice and promote the Sikh Religion by holding services and meeting by celebrating Gurpurbs and by organising Sunday School to teach Gurmukhi to enable both the children and adults to read the Holy Scriptures Guru Granth Sahib Ji.

To purchase, lease, hire or otherwise acquire suitable premises for holding services and meetings and an accommodation for the minister or visiting delegates from other Sikh institutions and if necessary to sell the same subject to any of consent of the Charity Commissioners.

To borrow money as necessary for the purposes of the Charity and to mortgage or change property of the charity as security therefore subject to any consent of the Charity Commissioners.

To purchase furniture and equipment for such premises acquires as aforesaid and to improve, repair and maintain the said premises.

To employ a Minister or preacher and to pay him such remuneration as shall be agreed.

To purchase Sikh Religious literature, CD/DVD and tape recordings and the equipment to play such CD/DVD and tape recordings.

To accept donations and subscriptions and to raise funds by lawful means.

To make donations for charitable purposes and to apply funds of the Charity in furtherance of the main object.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

SIRI GURU SINGH SABHA NORTHAMPTON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

The main activities and achievements are provided in the annual President's report.

Investigate other ways of increasing donations

The past 12 months have continued to be an extremely busy period for the Trustees and management committee.

Summary

With the pandemic behind us, were seeing new families arrive in Northampton and come to the gurdwara, hence, there has been an increase in sangat numbers.

As the sangat grows, so too must the way the gurdwara is managed.

The trustees, committee members and other volunteers have continued to work very hard to fundraise and spend a lot of personal time to assist at the gurdwara.

During the year many visitors visited the gurdwara and were really pleased to see the efforts of the Sikh community in providing vital support for local communities, especially during the pandemic. Feedback is always generally positive in nature.

The Building

During the construction stage of the building and poor workmanship by the contractor we had to spend large amount of money rectifying the works, this was confirmed by number of independent experts who visited the building and provided reports on the workmanship of the previous contractor.

Roof Works

Due to roof leaks we had to call the roofing manufacturer to inspect the problem and they confirmed that the roof had not been installed in line with the manufacturers instructions. Therefore, we have had to bring in a thirdparty contractor to rectify the mistakes at a cost of £36,785.

Brickwork

We had also invited the brick manufacturer to inspect the brickwork because of concerns about the standard of bricklaying. The report highlights a number of tasks that need to be completed to rectify the workmanship.

Drainage

We had problems with the foul and surface water drainage all due to improper drainage system, and again we had to bring in a third-party contractor to rectify the mistakes at cost of £7,000. We haven't had any issues since.

SIRI GURU SINGH SABHA NORTHAMPTON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Car Park Surfacing

Surfacing and tarmacking work was carried out in the car park area. Doing this now allows us to fully utilise the car parking spaces and we’ve created a one-way route around the car park. The total cost for this work was £12,000, of which £4000 was contributed by the community centre. We hope to have professional line markings carried out in the future. Car park line marking will provide clear and visible guidance for drivers and pedestrians , improving safety and preventing accidents. It will also help to optimize parking space usage and enhance the appearance of the car park.

Ventilation System

While looking into commissioning our ventilation system which was paid for but not completed during construction stage and following a survey of the current mechanical and electrical installations of the building, some concerns were highlighted. We take the safety of our sangat, volunteers and community extremely seriously therefore we instructed third- party electrical contractor to produce Electrical Inspection Report and carry out remedial action urgently, by the time all works are completed the total cost will be in region of £30,000. The ventilation system work itself is estimated to cost around £100,000. When completed it will introduce fresh air into indoor spaces while removing stale air, it is important that this work is done in order to fully comply with building and health and safety regulations.

Conclusion

The Gurdwara unfortunately does not have sufficient funds to cover the amount of all these costs therefore we still need to fundraise at every opportunity for these projects and continue to depend on the generosity of our sangat and supporters.

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Future developments

Investigate other ways of increasing donations, such as through gift aid.

SIRI GURU SINGH SABHA NORTHAMPTON

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The trustees who served during the year and up to the date of signature of the financial statements were: A S Atwal (Resigned 9 October 2022) H S Kooner Dr RS Diu (Appointed 9 October 2022) Mr N Chandi Mr NS Sidhu-Brar Mr CK Grewal

Since May 2011 the charity is administered by an Executive committee as shown on the previous page.

The trustees' report was approved by the Board of Trustees.

H S Kooner Trustee Dated: 14 May 2023

Mr N Chandi Trustee Dated:14 May 2023

SIRI GURU SINGH SABHA NORTHAMPTON

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SIRI GURU SINGH SABHA NORTHAMPTON

I report to the trustees on my examination of the financial statements of Siri Guru Singh Sabha Northampton (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements 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 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that 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 financial statements to be reached.

Jervis & Partners

30 Harborough Road Kingsthorpe Northampton NN2 7AZ

Dated: 14 May 2023

SIRI GURU SINGH SABHA NORTHAMPTON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

**Unrestricted ** Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 222,492 232,676
Charitable activities 4 16,224 13,728
Total income 238,716 246,404
Expenditure on:
Raising funds 5 168,059 149,493
Total expenditure 168,059 149,493
Net income for the year/
Net movement in funds 70,657 96,911
Fund balances at 1 April 2022 1,927,697 1,830,785
Fund balances at 31 March 2023 1,998,354 1,927,696

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SIRI GURU SINGH SABHA NORTHAMPTON

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
10
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
13
Net assets
Income funds
Unrestricted funds
Designated funds
14
General unrestricted funds		 2023
£
£
2,684,931
136,627
(1,570)
135,057
2,819,988
(821,634)
1,998,354
1,863,297
135,057
1,998,354
1,998,354		 2022
£
£
2,684,931
102,233
(921)
101,312
2,786,243
(858,547)
1,927,696
1,826,384
101,312
1,927,696
1,927,696

The financial statements were approved by the Trustees on 14 May 2023

H S Kooner Mr N Chandi Trustee Trustee

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Siri Guru Singh Sabha Northampton is a Charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings

nil

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.6 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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 associated assumptions are based on historical experience and other factors that are considered to be 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Building fund 134,405 122,380
Golak collection 31,459 25,281
Membership fees 25 1,275
Gift aid income 32,695 33,983
Degh 3,148 3,692
Sundry donations 20,760 46,065
222,492 232,676

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Charitable Charitable
Income Income
2023 2022
£ £
Rent received 16,224 13,728

5 Raising funds

Trading costs
Support costs
Support costs
Staff costs
Rates and water
Insurance
Light and heat
Repairs & maintenance
Sundries
Accountancy
Legal and professional
Donations
Bank charges
Bank loan interest
Analysed between
Trading		 Support
costs
Governance
costs
£
£
35,272
-
1,692
-
3,000
-
4,319
-
74,316
-
8,477
-
-
240
-
-
-
12,570
-
1,709
-
26,464
127,076
40,983
127,076
40,983		 2023
£
35,272
1,692
3,000
4,319
74,316
8,477
240
-
12,570
1,709
26,464
168,059
168,059		 Unrestricted Unrestricted
funds
funds
2023
2022
£
£
168,059
149,493
168,059
149,493
Support
costs
Governance
costs
2022
£
£
£
25,283
-
25,283
1,963
-
1,963
3,013
-
3,013
2,981
-
2,981
55,729
-
55,729
16,091
-
16,091
-
240
240
-
2,008
2,008
-
9,464
9,464
-
1,993
1,993
-
30,728
30,728
105,060
44,433
149,493
105,060
44,433
149,493		 Unrestricted Unrestricted
funds
funds
2023
2022
£
£
168,059
149,493
168,059
149,493
Support
costs
Governance
costs
2022
£
£
£
25,283
-
25,283
1,963
-
1,963
3,013
-
3,013
2,981
-
2,981
55,729
-
55,729
16,091
-
16,091
-
240
240
-
2,008
2,008
-
9,464
9,464
-
1,993
1,993
-
30,728
30,728
105,060
44,433
149,493
105,060
44,433
149,493
149,493
2022
£
25,283
1,963
3,013
2,981
55,729
16,091
240
2,008
9,464
1,993
30,728
149,493
149,493

6 Support costs

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Other pension costs		 2023
Number
3
2023
£
34,924
348
35,272		 2022
Number
2
2022
£
24,728
555
25,283

There were no employees whose annual remuneration was more than £60,000.

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10 Tangible fixed assets

Cost
At 1 April 2022
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
11
Loans and overdrafts
Bank loans
Payable after one year		 Freehold land and buildings
£
2,684,931
2,684,931
2,684,931
2,684,931
2023
2022
£
£
774,634
806,547
774,634
806,547		 Freehold land and buildings
£
2,684,931
2,684,931
2,684,931
2,684,931
2023
2022
£
£
774,634
806,547
774,634
806,547
2,684,931
2,684,931
2,684,931
2022
£
806,547
806,547

SIRI GURU SINGH SABHA NORTHAMPTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

12 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Creditors: amounts falling due after more than one year
Notes
Bank loans
11
Other creditors		 2023
£
1,330
240
1,570
2023
£
774,634
47,000
821,634		 2022
£
681
240
921
2022
£
806,547
52,000
858,547

13 Creditors: amounts falling due after more than one year

14 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement
in funds
Movement
in funds
Balance at
1 April 2021
Incoming
resources
Balance at
1 April 2022
Incoming
resources
31
£
£
£
£
Building Fund
1,800,731
25,653
1,826,384
36,913
1,800,731
25,653
1,826,384
36,913		 Balance at
March 2023
£
1,863,297
1,863,297

15 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).