**Charity Registration No. 266260** 

## **THE SHREE SWAMINARAYAN TEMPLE TRUSTEES' REPORT AND ACCOUNTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 



**THE SHREE SWAMINARAYAN TEMPLE FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Index** 

||**Page**|
|---|---|
|Legal and administrative information|1|
|Trustees' report|2 – 7|
|Independent auditors’ report|8 - 10|
|Statement of financial activities|11|
|Balance Sheet|12|
|Statement of cash flows|13|
|Notes to the accounts|14 - 21|





**THE SHREE SWAMINARAYAN TEMPLE LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021** 

|Trustees|K. A. Kerai|(Chair)|
|---|---|---|
||K. K. Jesani||
||K. D. Patel||
||R. H. Bhudia||
||V. H. Bhudia||
||P. K. Hirani||
||D. B. Khetani||
||G. K. Hirani||
||L. H Virji||
|Charity number|266260||
|Principal address|220-222 Willesden Lane||
||London||
||NW2 5RG||
|Auditors|Goldwins Chartered Accountants||
||75 Maygrove Road||
||London||
||NW6 2EG||
|Bank|Barclays Bank||
||Willesden Green||
||London||
||NW3 5JS||
|Solicitors|Sheridan and Stretton||
||233 King Street||
||London||
||W6 9LP||



Page | 1 



**THE SHREE SWAMINARAYAN TEMPLE** 

**TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

The Trustees present their annual report together with the audited financial statements of the charity for the year ended 31 December 2021. 

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 Charities Act 2011, the charity's Trust Deed 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 January 2015). 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Constitution** 

Shree Swaminarayan Temple Trust is registered as a charity, number 266260, and is constituted under a Trust deed. The Trust's affairs are governed by its Rules and Regulations of Association which allow it to undertake any activities covered by its objects with no specific restrictions. 

## **Methods of appointment or election of Trustees** 

The management of the charity is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed. 

## **Governance** 

The charity is administered by the Board of Trustees which is responsible for its overall management and control. The Board meets regularly to discuss and formulate policy which it then implements. 

The Trust has a minimum of three and a maximum of nine Trustees who shall hold office until their resignation or removal by the parent body. The Trustees appoint a Chairman, Secretary and Treasurer from among themselves to act as a committee to manage the affairs of the Temple in line with its governing document. The induction of new Trustees is carried out on an informal basis by one of the current Trustees. 

The parent body is the "Shree Swaminarayan Temple, Bhuj", a Public Religious Trust registered under the Bombay Public Trust Act, 1950. It holds the exclusive power to appoint and remove Trustees and may appoint persons on their behalf to manage the Temple jointly with the Trustees in the event of any dispute. 

## **Trustees** 

The Trustees who served during the year were: 

K. A. Kerai (Chair) K. K. Jesani K. D. Patel R. H. Bhudia V. H. Bhudia P. K. Hirani 

Page | 2 



**THE SHREE SWAMINARAYAN TEMPLE** 

**TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

D. B. Khetani G. K. Hirani L. H Virji 

## **OBJECTIVES AND ACTIVITIES** 

## **Policies and objectives** 

The purposes of the Trust are the advancement and propagation of the faith of Swaminarayan among its members and others to allow all generations to experience the soul, spirit and essence of the religion and culture. 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. 

## **Activities undertaken to achieve objectives** 

The Trust opens the Temple daily to allow all its members to come and worship at a suitable time for them. The Trust also runs a school in the Temple and organises additional events for the local children in order that they can experience learning in a fun environment amongst their peers. In addition, the Trust makes grants to various institutions using funds donated by its members for specific causes or the allocation of unrestricted reserves by the Board of Trustees in line with its charitable objectives. 

Each year the Trustees review our objectives to ensure that they continue to reflect our aims. In shaping the organisation's objectives for the year and planning its activities, the Trustees have considered the Charity Commission's general guidance on public benefit. 

## **Grant-making policies** 

The Trust has established its grant making policy to achieve objectives for the public benefit which are supplemental to the provision of the Temple for its members. These have mainly been involved in overseas aid. 

In the past and result from the Trustees identifying an institution which requires assistance, either as a result of a disastrous event or request from its parent body. The Trustees will subsequently organise for specific collections to be held in respect of these institutions whereupon the donations received will be granted to the institution to provide monetary assistance as required. 

## **Main activities undertaken to further the charity's purposes for the public benefit** 

The primary activity undertaken by the Trust is the provision of the Temple as a place of worship for all its members. The Temple is open daily all year round and includes special celebrations for key annual festivals such as Diwali, when the Temple receives thousands of visitors daily who are provided with meals and a place to celebrate their faith among friends and family. 

Page | 3 



**THE SHREE SWAMINARAYAN TEMPLE** 

**TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

In addition, the Trust runs a Gujarati School at the Temple and the Academy which provide forums where children can study and sit their G.C.S.E. exams in Gujarati, play sport with their peers and develop their understanding of the teachings of Shikshapatri. 

The charity also provides overseas aid to various institutions who require monetary assistance via the collection of donations from its members which are then granted to the relevant body in control of the relief efforts. 

## **Volunteers** 

In common with all charities the Trust is heavily reliant on the contribution made by a number of volunteers who aid the day to day management of the Temple. The Trustees would like to thank all the volunteers for their hard work and dedication to the successful running of the Temple, especially during another difficult year we have had with Covid-19. 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Review of activities** 

The Covid-19 pandemic continued to affect the UK and the world. Following government guidance, on 4[th] January 2021 we decided to close the Temple again from the public. Wedding bookings were also cancelled and rescheduled. The Temple was already on standby to provide online prayers and sermons as we had done throughout periods in 2020. Our YouTube channel was used for daily prayers and mediums such as Zoom and Microsoft Teams was used for our weekly youth and gujarati classes. 

We continued to provide additional help to local food banks from money raised in 2020. Food and essential items were purchased from wholesalers and delivered to food banks and external kitchens as needed. In May 2021, the Covid-19 pandemic affected people in India in huge numbers. Hospitals were not able to supply oxygen and people were dying without receiving much needed treatment. Our parent temple in Bhuj, immediately transformed one of their boarding schools into a temporary hospital and care facility for infected patients. We provided monetary support and also sourced oxygen concentrators from USA to send directly to this facility in Bhuj. 

On 12[th] April 2021, with Covid-19 cases in the UK easing, we decided to re-open the Temple for darshan only, meaning that people prayed and left. We continued social distancing and limiting numbers allowed on the premises. On 18[th] May 2021, we extended the prayers to standing only. Throughout 2021, we continued mandatory masks, hand sanitization and social distancing. The annual anniversary celebration was held at the Temple for the first time in two years as well as the Diwali celebration in November. 

In late November, the Temple held a ceremony to remember all the lost souls that had passed away. The ceremony had over 140 families participating. Priests from India were called especially for the 7-day occasion. Food was served to more than a thousand people each evening. 

Page | 4 



**THE SHREE SWAMINARAYAN TEMPLE** 

**TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **FINANCIAL REVIEW** 

## **Review of financial position** 

The Trust's work is reliant upon the voluntary time and effort it receives from its members but it continues to prosper through donations which is supplemented by rental income from properties it owns adjacent to the Temple. The Trust is in a strong financial position at the year end and is able to meet all foreseeable charitable obligations. 

## **Reserves policy** 

The Trust's unrestricted reserves are largely represented by investment in the Temple. The Trust's policy is to build up its reserves in order to generate income and acquire further properties in which to provide facilities for religious meetings and education. 

The Thaal Fund is held to cover major projects and fund specific religious ceremonies within the Temple. The endowment fund was received specifically in order to fund the building and additions to the Temple. 

In 2017, the Trust commenced development of the site 1-5 Deerhurst Road. In 2019, the work was completed as scheduled. 

## **Investments policy** 

The Trustees' investment powers are covered by the Trust's governing document and allow the Trustees to invest surplus funds to generate income with which to fund future activities. The Trustees' investment policy is to aim for safety commensurate with immediate and planned spending. 

## **Risk management** 

The Board of Trustees is responsible for the management of risks faced by the charity. Risks are identified, assessed and controls are established as appropriate. 

The trustees have reviewed and assessed the risk arising from the Covid-19 and appropriate measures and action taken to mitigate those risks. Some of the measures and action taken by the Trust includes reducing number of visitors in the temple at a time with 2 meters apart marked standing spots and crowd control management in place. When cases of Covid have increased, the trustees have taken measures to close the Temple to the public. Consequently, the Trustees are satisfied that any major risks have been mitigated. 

## **Fundraising statement** 

All the Trust’s fundraising activity is undertaken by an in-house team and this activity is monitored on an ongoing basis as part of the Trust’s wider evaluation processes. The Trust generally does not make direct fundraising approaches to individuals unless a specific need occurs. In 2018 and 2019, the Regeneration Project required fundraising and individuals were asked to make donations or interest free loans. 

The Trust ensures that no members of the public are subject to undue pressure to donate or made to feel that the Trust is unreasonably persistent in its requests. The Trust does not email members of the public to donate via email. 

Page | 5 



**THE SHREE SWAMINARAYAN TEMPLE** 

**TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Plans for the future** 

The future plan for the temple is to provide facilities for devotees of all ages groups within the temple. The temple expansion has provided better facilities for parents with babies and young children, a creche, dedicated classrooms for infants and refurbished kitchen area for daily food offerings. The new supported living accommodation has provided a place for elderly devotees to stay and assist those in need. They will be provided with daily meals and have easy access to the temple and its facilities. 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Disclosure of information to auditors** 

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: 

- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of 

- any relevant audit information and to establish that the charity's auditors are aware of that information. 

Page | 6 



THE SHREE SWAMINARAYAN TEMPLE
TRUSTEES. REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
Auditors
The trustees passed a motion to revapwint auditors. Goldwin Chartered AceA)untants for the
audrt for the year ending 31.12.21. The designated Trustees will prot)ose a motion
reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on I lTrl?l and signed on
their behalf by-
K. A. Kerai
Trustee
On Behalf of Trustees
Pag817

**THE SHREE SWAMINARAYAN TEMPLE** 

## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE SHREE SWAMINARAYAN TEMPLE FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Opinion** 

We have audited the financial statements of THE SHREE SWAMINARAYAN TEMPLE (the ‘Charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of the group’s income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent 

Page | 8 



**THE SHREE SWAMINARAYAN TEMPLE** 

**INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE SHREE SWAMINARAYAN TEMPLE FOR THE YEAR ENDED 31 DECEMBER 2021** 

with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or 

- proper accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not obtained all the information and explanations necessary for the purposes of our audit. 

## **Responsibilities of the trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error 

Page | 9 



**THE SHREE SWAMINARAYAN TEMPLE** 

## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE SHREE SWAMINARAYAN TEMPLE FOR THE YEAR ENDED 31 DECEMBER 2021** 

and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor’s report. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

## Goldwins 

**Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG** 

4 July 2022 

Page | 10 



## **THE SHREE SWAMINARAYAN TEMPLE STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 December 2021** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>**3**<br>Charitable activities<br>**4**<br>Other trading activities<br>**5**<br>Investment income<br>**6**<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>**7**<br>Net income for the year<br>Transfers between funds<br>Net movement in funds<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**<br>**15**|**2021**<br>**2020**<br>**Endowment Unrestricted**<br>**Restricted**<br>**Total**<br>**Total**<br> <br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>1,107,293<br>60,191<br>1,167,484<br>626,625<br>-<br>407,571<br>-<br>407,571<br>313,138<br>-<br>117,850<br>-<br>117,850<br>13,910<br>-<br>154<br>-<br>154<br>684|
|---|---|
||**-**<br>**1,632,868**<br>**60,191**<br>**1,693,059**<br>**954,357**<br>-<br>77,372<br>-<br>77,372<br>39,172<br>-<br>442,428<br>-<br>442,428<br>266,177|
||**-**<br>**519,800**<br>**-**<br>**519,800**<br>**305,349**|
||**-**<br>**1,113,068**<br>**60,191**<br>**1,173,259**<br>**649,008**<br>-<br>-<br>-<br>-<br>-|
||**-**<br>**1,113,068**<br>**60,191**<br>**1,173,259**<br>**649,008**<br>946,315<br>11,237,490<br>2,149,816<br>14,333,621<br>13,684,613|
||**946,315**<br>**12,350,558**<br>**2,210,007**<br>**15,506,880**<br>**14,333,621**|



All of the above results are derived from continuing activities. 

There were no other recognised gains or losses other than those stated above. 

The attached notes form part of these financial statements. 

Page | 11 



THE SHREE SWAMINARAYAN TEMPLE
BALANCE SHEET
AS AT 31 December 2021
2021
2020
Fixed Ass•ts:
Tangibl8 fLxe(J assets
10
15.769,543
15.760,556
Curr¢nt Assets:
Debtors
Cash at bank and in hand
11
193,599
1,138,141
1.331,740
80,581
478.263
558,844
Credltors: Amounts falllng due within
one year:
12
(1,216,403
{943.279
Net Current Assets l (Ilabllltlesl
115.337
1384.4351
Croditors: Amounts falllng du• In
morg than on• year.
13
{378,000)
11,042.5001
Total net assots
15,506.880
14,333.621
Resebves:
Endowment funds
Unrestricted - General funds
Restricted funds- Building fund
946.315
12.350,558
2.210,007
946.315
11,237.490
2,149.816
14
1S.$06,880
14,333,621
11.7..1.2i
Approved by the Board of Trusteeg on .... . . .
..and siqned on its bohalf ty.
K. A Keral
Trustso
P. IL Hlranl
Trustee
Pag8 | 12

## **THE SHREE SWAMINARAYAN TEMPLE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 December 2021** 

|**Note**<br>**16**<br>**Cash flows from investing activities:**<br>Sale/ (purchase) of fixed assets<br>**Cash provided by / (used in) investing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>**17**<br>**Net cash provided by / (used in) operating**<br>**activities**|**2021**<br>**£**<br>(18,863)|**2021**<br>**£**<br>**678,741**<br>**(18,863)**|**2020**<br>£<br>(28,534)|**2020**<br>£<br>(301,174)<br>(28,534)|
|---|---|---|---|---|
||||||
|||**659,878**<br>**478,263**||(329,708)<br>807,971|
|||**1,138,141**||478,263|



Page | 13 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **1. Accounting policies** 

## **a) 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) and the Charities Act 2011. 

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. 

## **b) Going concern** 

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

## **c) Income** 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. 

## **d) Donations of gifts, services and facilities** 

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution. 

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **e) Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

## **f) Fund accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity. 

Designated funds are unrestricted funds set aside by the Trustees for particular purposes. 

Page | 14 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **1. Accounting policies** 

## **g) Expenditure and irrecoverable VAT** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: 

- Costs of raising funds comprise of trading costs and the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. 

- Expenditure on charitable activities includes the costs of delivering services and other activities undertaken to further the purposes of the charity and their associated support costs. 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

## **h) Allocation of support costs** 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. Support costs are allocated between cost of raising funds and charitable activities. 

## **i) Tangible fixed assets** 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

Equipment 33.33% reducing balance method Solar panels (included in freehold property) 5% reducing balance method Golden cradle Nil Jewellery Nil 

Freehold land and building are not depreciated as it is the Charity policy to maintain the property with regular repairs and refurbishment work. Accordingly the trustees consider that because the residual value is not significantly different from carrying amount, any depreciation charge would be immaterial. 

The trustees have reviewed the useful economic life of the Golden cradle and Jewellery held at the Temple 

and consider it to be many years and therefore have not charged any depreciation on these assets. 

## **j) 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. 

## **k) Cash at bank and in hand** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **l) Creditors and provisions** 

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. 

## **m) Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

Page | 15 



## **THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **2. Detailed comparatives for the statement of financial activities** 

|**Incoming from:**<br>Donations and legacies<br>Charitable activities<br>Other trading activities<br>Investment income<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>Net income / (expenditure) for the year<br>Transfers between funds<br>Net movement in funds<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**<br>**3. Income from donations**<br>Donations<br>**4. Income from charitable activities**<br>Religious activities|2020<br>2020<br>2020<br>Endowment<br>Unrestricted<br>Restricted<br>Total<br>Funds<br>Funds<br>Funds<br>Funds<br>£<br>£<br>£<br>£<br>-<br>582,325<br>44,300<br>626,625<br>-<br>313,138<br>-<br>313,138<br>-<br>13,910<br>-<br>13,910<br>-<br>684<br>-<br>684|
|---|---|
||-<br>910,057<br>44,300<br>954,357<br>-<br>39,172<br>-<br>39,172<br>-<br>266,177<br>-<br>266,177|
||-<br>305,349<br>-<br>305,349<br>-<br>604,708<br>44,300<br>649,008<br>-<br>-<br>-<br>-|
||-<br>604,708<br>44,300<br>649,008<br> 946,315<br>10,632,782<br>2,105,516<br>13,684,613|
||**946,315**<br>**11,237,490**<br>**2,149,816**<br>**14,333,621**|
||**2021**<br>2020<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**£**<br>**£**<br>**£**<br>£<br>1,107,293<br>60,191<br>1,167,484<br>626,625|
||**1,107,293**<br>**60,191**<br>**1,167,484**<br>626,625|
||**2021**<br>2020<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**£**<br>**£**<br>**£**<br>£<br>407,571<br>**-**<br>407,571<br>313,138|
||**407,571**<br>**-**<br>**407,571**<br>313,138|



The above represents rental income received in respect of housing provided to elderly members of the Trust in order to position them close to the Temple to enable them to visit and take part in various festivals. 

|**5 Income from other trading activities**<br>Temple hall hire<br>**6 Income from investments**<br>Bank interest|**2021**<br>2020<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**£**<br>**£**<br>**£**<br>£<br>117,850<br>**-**<br>117,850<br>13,910|
|---|---|
||**117,850**<br>**-**<br>**117,850**<br>13,910|
||**2021**<br>2020<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**£**<br>**£**<br>**£**<br>£<br>154<br>-<br>154<br>684|
||**154**<br>**-**<br>**154**<br>684|



Page | 16 



## **THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **7. Analysis of expenditure** 

|Rates and services<br>Insurance<br>Light and heat<br>Repair and maintenance<br>Cleaning<br>Telephone<br>Legal & professional fees<br>Depreciation<br>Gujarati school expenses<br>Academy expenses<br>Festival expenses<br>Calendars and CDS<br>Wages and salaries<br>Bank charges<br>Audit fees<br>Support costs<br>Governance costs<br>**Total expenditure 2021**<br>Total expenditure 2020|**Cost of**<br>**raising**<br>**funds**<br>**Charitable**<br>**Activities**<br>**Support**<br>**costs**<br>**Governance**<br>**costs**<br>**2021**<br>**Total**<br>2020<br>Total<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>23,305<br>-<br>2,394<br>-<br>**25,699**<br>14,494<br>-<br>-<br>30,692<br>-<br>**30,692**<br>20,009<br>12,762<br>-<br>71,407<br>-<br>**84,169**<br>58,975<br>33,218<br>52,302<br>-<br>**85,520**<br>64,193<br>-<br>-<br>13,696<br>-<br>**13,696**<br>12,118<br>834<br>-<br>3,912<br>-<br>**4,746**<br>3,778<br>7,253<br>-<br>-<br>-<br>**7,253**<br>6,717<br>-<br>-<br>9,876<br>-<br>**9,876**<br>9,439<br>-<br>5,841<br>-<br>-<br>**5,841**<br>5,272<br>-<br>-<br>-<br>-<br>**-**<br>180<br>-<br>211,439<br>-<br>-<br>**211,439**<br>71,074<br>-<br>8,555<br>-<br>-<br>**8,555**<br>9,461<br>-<br>22,100<br>-<br>-<br>**22,100**<br>21,250<br>-<br>-<br>-<br>3,614<br>**3,614**<br>1,189<br>-<br>-<br>-<br>6,600<br>**6,600**<br>7,200|
|---|---|
||77,372<br>247,935<br>184,279<br>10,214<br>**519,800**<br>305,349<br>-<br>184,279<br>(184,279)<br>**-**<br>-<br>10,214<br>-<br>(10,214)<br>**-**<br>**77,372**<br>**442,428**<br>**-**<br>**-**<br>**519,800**|
||39,172<br>266,177<br>-<br>-<br>-<br>305,349|



Of the total expenditure, £519,800  (2020: £305,349) was unrestricted and £0 (2020: £0,) was restricted. 

Page | 17 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **8. Net income / (expenditure) for the year** 

This is stated after charging / (crediting): 

|This is stated after charging / (crediting):|**2021**|2020|
|---|---|---|
||**£**|£|
|Depreciation|9,876|9,439|
|Auditors remuneration|6,600|7,200|



## **9. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** 

|Staff costs were as follows:<br>Salaries and wages|**2021**<br>2020<br>**£**<br>£<br>**22,100**<br>21,250|
|---|---|
||**22,100**<br>21,250|



There are no key management personnel costs during the year. (2020: Nil) 

None of the trustees received any remuneration nor were they reimbursed any expenses during the year (2020: none). 

## **Staff numbers** 

The average number of employees (head count based on number of staff employed) during the year was as follows: 

|Employees|**2021**<br>2020<br>**No.**<br>No.<br>**4**<br>4|
|---|---|
||**4**<br>4|



## **10. Tangible fixed assets** 

|**Cost**<br>At the start of the year<br>Additions in year<br>Disposals in year<br>At the end of the year<br>**Depreciation**<br>At the start of the year<br>Charge for the year<br>Eliminated on disposal<br>At the end of the year<br>**Net book value**<br>**At the end of the year**<br>At the start of the year|**Freehold**<br>**land and**<br>**buildings**<br>**Fixtures and**<br>**fittings**<br>**Golden**<br>**cradle**<br>**Jewellery**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>14,812,811<br>137,810<br>62,960<br>891,753<br>15,905,334<br>-<br>8,989<br>-<br>9,874<br>18,863<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**14,812,811**<br>**146,799**<br>**62,960**<br>**901,627**<br>**15,924,197**|
||21,699<br>123,079<br>-<br>-<br>144,778<br>1,970<br>7,906<br>-<br>-<br>9,876<br>-<br>-<br>-<br>-<br>-|
||**23,669**<br>**130,985**<br>**-**<br>**-**<br>**154,654**|
||**14,789,142**<br>**15,814**<br>**62,960**<br>**901,627**<br>**15,769,543**|
||14,791,112<br>14,731<br>62,960<br>891,753<br>15,760,556|



All of the above assets are used for charitable purposes. 

Page | 18 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **11. Debtors** 

|Prepayment and accrued income<br> **Creditors: amounts falling due within one year**<br>Other creditors<br>Accruals<br>Concessionary loans<br> **Creditors: amounts falling due after one year**<br>Concessionary loans|**2021**<br>2020<br>**£**<br>£<br>193,599<br>80,581|
|---|---|
||**193,599**<br>80,581|
||**2021**<br>2020<br>**£**<br>£<br>50,803<br>54,679<br>6,600<br>6,600<br>1,159,000<br>882,000|
||**1,216,403**<br>943,279|
||**2021**<br>2020<br>**£**<br>£<br>378,000<br>1,042,500|
||**378,000**<br>1,042,500|



## **12. Creditors: amounts falling due within one year** 

## **13. Creditors: amounts falling due after one year** 

These comprise loans from various individuals to fund the refurbishment and redevelopment work carried out as part of the regeneration project. These loans are interest free, unsecured and repayable between 3 to 5 years from the date received. 

## **14. Analysis of net assets between funds** 

|Tangible fixed assets<br>Net current assets<br>Long term (liabilities)<br>**Net assets at the end of the year**<br>**Analysis of net assets between funds 2020**<br>Tangible fixed assets<br>Net current (liabilities)<br>Long term (liabilities)<br>**Net assets at the end of the year**|**Endowment**<br>**funds**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>946,315<br>12,613,221<br>2,210,007<br>15,769,543<br>-<br>115,337<br>-<br>115,337<br>-<br>(378,000)<br>-<br>(378,000)|
|---|---|
||**946,315**<br>**12,350,558**<br>**2,210,007**<br>**15,506,880**|
||**Endowment**<br>**funds**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>946,315<br>12,664,425<br>2,149,816<br>15,760,556<br>-<br>(384,435)<br>-<br>(384,435)<br>(1,042,500)<br>-<br>(1,042,500)|
||**946,315**<br>**11,237,490**<br>**2,149,816**<br>**14,333,621**|



Page | 19 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **15. Movements in funds** 

|**Endowment funds:**<br>Temple endowment funds<br>**Total Endowment funds**<br>**Restricted funds:**<br>Regeneration project fund<br>Thaal fund<br>**Total restricted funds**<br>**Unrestricted funds:**<br>Designated funds<br>General funds<br>**Total unrestricted funds**<br>**Total funds**<br>**Movements in funds 2020**<br>**Endowment funds:**<br>Temple endowment fund<br>**Total Endowment funds**<br>**Restricted funds:**<br>Regeneration project fund<br>**Total restricted funds**<br>**Unrestricted funds:**<br>**Designated funds**<br>**General funds**<br>**Total unrestricted funds**<br>**Total funds**<br>**Purposes of funds:**|**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>946,315<br>-<br>-<br>-<br>946,315<br>**At the start**<br>**of the year**<br>**Income**<br>**Expenditure**<br>**At the end of**<br>**the year**<br>**Transfers**|
|---|---|
||**946,315**<br>**-**<br>**-**<br>**-**<br>**946,315**|
||2,149,816<br>-<br>-<br>-<br>2,149,816<br>-<br>60,191<br>-<br>-<br>60,191|
||**2,149,816**<br>**60,191**<br>**-**<br>**-**<br>**2,210,007**|
||954,979<br>-<br>-<br>-<br>954,979<br>10,282,511<br>1,632,868<br>(519,800)<br>-<br>11,395,579|
||**11,237,490**<br>**1,632,868**<br>**(519,800)**<br>**-**<br>**12,350,558**|
|||
||**14,333,621**<br>**1,693,059**<br>**(519,800)**<br>**-**<br>**15,506,880**|
||**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>946,315<br>-<br>-<br>-<br>946,315<br>**At the start**<br>**of the year**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**At the end of**<br>**the year**|
||**946,315**<br>**-**<br>**-**<br>**-**<br>**946,315**|
||2,105,516<br>44,300<br>2,149,816|
||**2,105,516**<br>**44,300**<br>**-**<br>**-**<br>**2,149,816**|
||954,979<br>-<br>-<br>-<br>954,979<br>9,677,803<br>910,057<br>(305,349)<br>-<br>10,282,511|
||**10,632,782**<br>**910,057**<br>**(305,349)**<br>**-**<br>**11,237,490**|
|||
||**13,684,613**<br>**954,357**<br>**(305,349)**<br>**-**<br>**14,333,621**|
|||



## _Temple endowment fund_ 

Temple endowment fund was received in order to help finance the Temple building and additions to the Temple. 

## _Regeneration project fund_ 

Regeneration project fund was set up to collect donations to be used specially to fund the redevelopment work on the charity's properties carried out under the regeneration project. 

Page | 20 



**THE SHREE SWAMINARAYAN TEMPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021** 

## **Purposes of funds (continued)** 

## _Designated fund_ 

Designated funds are set up to finance the festival activities and other religious services. 

## **16. Reconciliation of net income / (expenditure) to net cash flow from operating activities** 

|**Net income / (expenditure) for the reporting period**<br>**(as per the consolidated statement of financial activities)**<br>Depreciation<br>(Increase)/ decrease in debtors<br>Increase/ (decrease) in creditors<br>**Net cash provided by / (used in) operating activities**|**2021**<br>2020<br>**£**<br>£<br>1,173,259<br>649,008<br>9,876<br>9,439<br>(113,018)<br>125,953<br>(391,376)<br>(1,085,574)|
|---|---|
||**678,741**<br>(301,174)|



## **17. Analysis of cash and cash equivalents** 

|**Analysis of cash and cash equivalents**||
|---|---|
|Cash at bank and in hand<br>**Total cash and cash equivalents**|**At the start**<br>**of the year**<br>**Cash flows**<br>**Other**<br>**changes**<br>**At the end of**<br>**the year**<br>£<br>£<br>£<br>**£**<br>478,263<br>659,878<br>-<br>1,138,141|
||**478,263**<br>**659,878**<br>**-**<br>**1,138,141**|



## **18. Related party transactions** 

Included in the concessionary loans is an amount of £150,000 (2020:£150,000) repayable to Mr K D Patel, one of the trustees. The loan is non interest bearing and repayable in 3 years. 

Page | 21