REGISTERED CHARITY NUMBER: 271034
REPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
FOR
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 7 |
| Report of the Independent Auditors | 8 to 10 |
| Statement of Financial Activities | 11 |
| Statement of Financial Position | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 to 23 |
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020
TRUSTEES
Mr Vishram Vaghji Patel Holding Trustee and President Mr Kanji Manji Kerai Vice President Mr Harice Jesani Secretary Mr Lalit Karsan Bhanderi Treasurer MR Dharmendra Devji Jesani Assistant Teasurer Mr Rashik Vekaria Mr Dhanji Karsan Varsani Holding Trustee (deceased 28/1/2021) Mr Mansukh Karsan Vaghji Holding Trustee Mr Devji Karsan Patel Holding Trustee and committee member Mr Shivji Naran Rabadia Holding Trustee Mr Valji Shamji Dabasia Holding Trustee Mr Vinesh Pindoria Assistant Secretary Mr Dhanji Parbat Patel Holding Trustee Mr Dipak Patel Assistant Treasurer
The Management Committee & Sub Committee members of the Charity as at the year ended 31st December 2020 and at the date of approval of the accounts were:
| Other Advisors | Co - opted Advisors | Kothar |
|---|---|---|
| Arvind K Bhanderi | Mavji Varsani | Shivji N Rabadia |
| Manji K Hirani | Gunvant Halai | Valji S Dabasia |
| Nanji M Jesani | Valji Mepani | Arunbhai Amin |
| Vishal L Bhanderi | Karsan Rabadia | |
| Hasil L Bhanderi | Internal Auditors | |
| Jadavji K Kerai | Nitesh D Mayani | |
| Bhavesh D Karsan | Kamlesh J Kerai | |
| Naran V Bhudia | ||
| Virji P Halaria | ||
| Valji V Kara |
| PRINCIPAL ADDRESS | Westfield Lane |
|---|---|
| Kenton | |
| Harrow | |
| Middlesex | |
| HA3 9EA | |
| REGISTERED CHARITY | 271034 |
| NUMBER | |
| AUDITORS | Shaw Wallace |
| 43 Manchester Street | |
| London | |
| W1U 7LP |
Page 1
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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). The board of trustees are satisfied with the performance of the charity during the year and the position at 31st December 2020 and consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations.
Name, registered office and constitution of the charity
The Principal Office is: Westfield Lane, Kenton, Harrow, Middx, HA3 9EA Charity Registration Number: 271034 Telephone number: 020 8909 9899
Trustees and professional advisers are presented on page 1.
Page 2
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
OBJECTIVES AND ACTIVITIES Objectives and aims
The charity's aims including the changes or differences it seeks to make through its activities.
The objectives of The Temple shall be to advance and propagate the Hindu Religion according to the teachings of Lord Shree Swaminarayan, and in furtherance of that objective ‘The Temple’ shall be empowered as follows:
(a) to distribute and disseminate knowledge concerning the teachings
(b) to promote any charitable purpose in connection with The Temple
(c) to advance the cultural interest of the devotees of The Temple
(d) to establish, maintain and manage a centre or centres for activities promoted by The Temple to further any of the objectives contained herein
(e) to obtain, collect and receive money and funds by way of contributions, donations, subscriptions, grants and any other lawful means and to accept and receive gifts of property of any description (whether or not it is subject to any trust) and use such money, funds and property to further any objectives contained herein.
An explanation of the charity's main objectives for the year.
This year has been challenging for all of us with the Covid 19 pandemic and the government-imposed lockdowns for the safety and well-being of all of us. We have had to adopt to the new rules and have only opened up the temple following the government guidelines.
The temple organisation has reached out to support the community with ready food parcels and uncooked vegetable deliveries to homes for people who asked for support during the first lockdown. We have also supplied soft drinks, biscuits and refreshments to the NHS staff and nurses at Stanmore orthopaedic and the Northwick Park hospital during the first lockdown when travel was restricted.
The temple building team and all other support volunteers completed the Sinhasan upgrade works and the new Golden Sinhasan works for the beloved Ghanshyam Maharaj after three years of planning, material selection and importing from India, organising the skilled workers visas and having the specialist workers complete here in UK to our requirements and under our supervision. Our Sinhasan is the first of this kind in UK and has been made from the donated ornaments from our congregation.
The other main objectives for the year have been the continued support for the spiritual wellbeing of the congregation by ensuring that adequate administrative resources were available to observe all the regular festivals and cultural activities where possible under the nation guidelines.
We note and know that there is a lot of unfounded misinformation being shared and circulated in the social media about our organisation which we cannot control. We have reviewed our internal records for the past few years and can convey that none of the past committee members have committed fraud or miss allocated any of our charity funds.
The Charity celebrated various festivals as best as we could following the national guidelines during the year, including Ramnavmi (Birth of Lord Shree Ram and Lord Shree Swaminarayan), Shivratri, Janmashtami (Birth of Lord Shree Krishna) Diwali (New Year) etc.
Strategies for achieving objectives
The management committee aims to advance and promote the religious and cultural interests of the followers by providing a safe place for worship and facilities to encourage our younger generation to participate in religious and cultural activities.
Distribute and disseminate knowledge concerning the teachings of Lord Shree Swaminarayan; through holding regular religious discourses, katha parayan, celebration of religious festivals and to encourage youngsters and older devotees to be part of these activities. Promotion of charitable purpose in connection with the Charity and the advancement of the cultural interests of the devotees of the Charity are also key components of the strategies. The Trustees hope to implement their strategies by maintaining and managing a centre or centres for activities to a very high standard to ensure the well being of the worshippers.
Page 3
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
OBJECTIVES AND ACTIVITIES
Activities for achieving objectives
The Charity continues to attract an increasing number of followers each year. This year was no exception, with many devotees attending the Temple and taking part in daily activities.
The Charity celebrated various festivals during the year, including Diwali (New Year), Janmashtami birth of Lord Shree Krishna), Ramnavmi (Birth of Lord Shree Ram and Lord Shree Swaminarayan), Shivratri etc.
The Charity's donation making policies
The Trustees consider making donations to local and other organisations as they deem worthy. Donations are also made from time to time for natural disasters and relief around the world.
Public benefit
The charity has achieved the public benefit objectives by meeting the spiritual requirements of the congregation. This was achieved by holding on line the daily sabhas, arti and discourses. All key festival and religious dates are observed and celebrated by the devotees. Young persons sabhas were held online where youngsters from any faith are welcome.
Volunteers
The Charity depends heavily upon the continuing support of devotees. We also thank all volunteers for the hard work during the year, particularly those working within the areas of Prashad preparations, various educational activities, car park duties, Library, cleaning, organised special events, decorations, Naryal and other religious activities and pray that they continue to serve Lord Shree Swaminarayan in the future.
Although volunteer contribution is integral to the contribution of the Charity, It is difficult to quantify the number of voluntary hours served by the devotees, for which we remain indebted as it is integral to the success of the Charity.
ACHIEVEMENT AND PERFORMANCE Charitable activities
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The Temple celebrated its 54th anniversary since inception.
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The temple has a good online attendance for all the major festivals like Ramnavmi, Diwali, Janmashtami, Patosav, Parayan.
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The Temple website is continually updated with additional features such as Daily Darshan and announcements for future events.
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IT team continues to support various functions for Temple activities.
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The Temple supports the Ghanshyam Nursery, which provides valuable support to the community through Grants and facilities.
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Educational activities supervision including Gujrati and Nursery Schools.
Investment performance
In the Financial Review section of this report, there is a description of the investment policies and objectives established by the Trustees and the extent to which social, environmental or ethical considerations are taken into account.
FINANCIAL REVIEW
Financial position
The trustees have adopted the provisions of 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). As stated in the introduction to this report, the trustees consider the financial performance by the charity during the year to have been satisfactory.
The Statement of Financial Activities show net surplus for the year of a revenue nature of £685,419 (2019: £1,073,090) total reserves at the year-end stand at £15,006,727 (2019: £14,321,308).
Specific changes in fixed assets
Changes in fixed assets are shown in detail in the notes to the financial statements.
Principal funding sources
Apart from the income generated by Donations, Naryal, Tulsi Vivah, Thakar Thari, Hindola, Ramnavmi and Janmashtmi, the principal funding sources for the Charity are currently by way of Darshan, Aarti, Thar, Diwali and Ankot.
Charity's funds are being used in the short term for the running of the Temple activities, together with improving the facilities of the Temple, hence assisting in the furtherance of the Charity and supporting its key objectives.
Page 4
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
FINANCIAL REVIEW
Investment policy and objectives
The Trustees' investment powers are covered by the Trustees' 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 requirements and given the current uncertainties in the financial markets, the Trustees consider it appropriate to be holding funds in deposit accounts where they achieve a steady return.
Reserves policy
The Executive Committee have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ('free reserves') held by the charity should be between 9 to 12 months of the resources expended, which equates to £500,000 in general funds: At this Ievel, the Executive Committee feels that they would be able to continue current activities of the charity.
Based on the future plans as detailed below, the Executive Committee feels that there are sufficient funds available to meet these activities in the coming year.
To reduce the risk of over expenditure, procedures for authorisation of all transactions and projects exist. To further mitigate the risks, the Executive Committee will carry out periodic reviews of the progress of objectives stated.
Restricted funds amounting to £Nil (2019: £420,101) are not available for general purpose. The restricted funds are to be used for the renewal and replacement of the Singhasan including any related costs.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
FUTURE PLANS
In 2020, the Trustees carried out a review of the Charity's activities and produced a medium- and long-term plan as detailed below to enable the Temple to meet its objectives.
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We will be undertaking the re development of our Charlton Road property. These are anticipated to be major costs for the next few years.
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As part of our long-term plans, the temple is working towards programmes and facilities for our elderly devotees.
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- To identify and invest in facilities geared towards expanding sporting, cultural and life skills for our members and the local community. In the current year, the Trustees continued the search for suitable facilities and fields to achieve this.
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To facilitate the usage of the Nilkanth Hall and Ghanshyam Hall to obtain maximum benefit for the Temple and devotees.
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Maintain and improve existing Temple facilities and to fulfil our statutory obligation of hygiene and safety as well as providing a comfortable and congenial environment for praying.
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Continue to maintain high standards of the education building including installation of facilities for the disabled.
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Continue publication of Literature in English.
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Organise additional Hinduism classes.
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Organise further Bal Mandal trips and Shibirs.
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Establish relationships with local schools for religious education.
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Organise various courses such as First Aid, Health & Safety etc.
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Participate in other charity work such as fundraising.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Charity constitution
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
The Charity was registered on the 1st April 1976 and is governed by its Constitution. The aim of the charity is to advance and propagate the Hindu Religion according to the teachings of Lord Shree Swaminarayan.
Page 5
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment of new trustees
The Executive Committee is elected annually by the members and comprises of six or more honorary officers and eleven advisors. The Constitution allows the committee to co-opt further members.
The trustees who served during the year are listed under "Reference and Administrative details" on page 1.
Induction and training of new trustees
As part of their induction program, new Trustees are made aware of their responsibilities. This includes an introduction to the objectives, scope and policies of the Charity, the Charity Commission information on Trustees' responsibilities and a copy of the Constitution. Additional training is available to keep up with all new regulations concerning the Charity's activities.
Organisational structure and Decision making
Decision making duties are carried out by the Trustees at their monthly meeting. Other ad-hoc decisions are taken by the Trustees with executive positions.
Membership of wider network
The charity is affiliated to Shree Swaminarayan Temple of Bhuj, Kutch, India who have no impact on the operating policies adopted by the charity.
Related parties
The Ghanshyam Education Trust (GET) is a separate entity, which undertakes the administration and running of educational activities. GET is a charity and a company limited by guarantee, in which the members of SKSST are the Guarantors. The members of the GET are the Trustees named on Page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited.
GET runs the activities with the support and guidance from the Temple volunteers and the management committee
Risk management
The Trustees identify the major risks to which the Charity is exposed to each financial year when preparing and updating a strategic plan, in particular, those areas related to the operations and finances of the Charity. The Trustees then review any major risks which have been identified and establish systems to mitigate those risks.
Among the major risk of the Charity is the possibility of endangering the worshipper's safety and comfort in any way. This is mitigated by the support of experienced stewards and maintenance teams who ensure that all such aspects are covered by appropriate training and monitoring procedures.
The Trustees have also put in place appropriate internal controls and monitoring procedures, including budgetary control and review to minimise financial risks.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
Page 6
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the 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.
Approved by order of the board of trustees on 29 October 2021 and signed on its behalf by:
.......................................................................... Mr Vishram Vaghji Patel - Trustee
Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
Opinion
We have audited the financial statements of Shree Kutch Satsang Swaminarayan Temple (Mandir) London (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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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 Auditors' 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 FRC's 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 trustees' 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 trustees 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 Report of the Independent Auditors 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 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 this gives rise to a material misstatement in the financial statements themselves. 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
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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 are appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or have effect thereunder.
Our objectives are to obtain reasonable assurance about whether the accounts 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 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.
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:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
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used data analytics to investigate the rationale behind any significant or unusual transactions.
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing any available correspondence with HMRC and the company's legal advisors (although none was noted as being received by the charity).
As a result of our procedures we did not identify any key audit matters relating to irregularities.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uk/auditors' responsibilities. This description forms part of our auditor's report.
Use of our report
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.
Shaw Wallace Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 43 Manchester Street
London W1U 7LP
Date: 29 October 2021
Page 10
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 585,211 Charitable activities 5 Gift Aid Tax Refund 88,005 Bal Mandal 5,566 License fee Income 95,000 Other trading activities 3 1,930 Investment income 4 286,611 Total 1,062,323 EXPENDITURE ON Raising funds 6 249,910 Charitable activities 7 Bal Mandal 550 Management and administration costs 173,372 Library expenses 1,650 Total 425,482 NET INCOME 636,841 Transfers between funds 17 468,679 Net movement in funds 1,105,520 RECONCILIATION OF FUNDS Total funds brought forward 13,901,207 TOTAL FUNDS CARRIED FORWARD 15,006,727 |
Restricted fund £ 48,578 - - - - - 48,578 - - - - - 48,578 (468,679) (420,101) 420,101 - |
31/12/20 Total funds £ 633,789 88,005 5,566 95,000 1,930 286,611 1,110,901 249,910 550 173,372 1,650 425,482 685,419 - 685,419 14,321,308 15,006,727 |
31/12/19 Total funds £ 1,105,432 139,577 18,303 95,000 3,315 268,952 1,630,579 316,775 30,721 208,435 1,558 557,489 1,073,090 - 1,073,090 13,248,218 14,321,308 |
|---|---|---|---|
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 11
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2020
| Unrestricted fund Notes £ FIXED ASSETS Tangible assets 11 5,436,936 Investment property 12 3,550,340 8,987,276 CURRENT ASSETS Stocks 13 8,873 Debtors 14 153,346 Cash at bank and in hand 6,028,559 6,190,778 CREDITORS Amounts falling due within one year 15 (171,327) NET CURRENT ASSETS 6,019,451 TOTAL ASSETS LESS CURRENT LIABILITIES 15,006,727 NET ASSETS 15,006,727 FUNDS 17 Unrestricted funds Restricted funds TOTAL FUNDS |
Restricted fund £ - - - - - - - - - - - |
31/12/20 Total funds £ 5,436,936 3,550,340 8,987,276 8,873 153,346 6,028,559 6,190,778 (171,327) 6,019,451 15,006,727 15,006,727 15,006,727 - 15,006,727 |
31/12/19 Total funds £ 5,376,062 3,550,340 8,926,402 8,873 81,183 5,428,383 5,518,439 (123,533) 5,394,906 14,321,308 14,321,308 13,901,207 420,101 14,321,308 |
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 29 October 2021 and were signed on its behalf by:
.............................................
Mr Vishram Vaghji Patel - Trustee
The notes form part of these financial statements
Page 12
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 2 Cash and cash equivalents at the end of the reporting period 2 |
31/12/20 £ 671,708 671,708 (153,543) 36,000 46,675 (70,868) 600,840 5,427,719 6,028,559 |
31/12/19 £ 1,089,863 1,089,863 (168,566) - 33,274 (135,292) 954,571 4,473,148 5,427,719 |
|---|---|---|
The notes form part of these financial statements
Page 13
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
|---|---|---|---|---|
| 31/12/20 | 31/12/19 | |||
| £ | £ | |||
| Net income for the reporting period (as per the Statement of Financial | ||||
| Activities) | 685,419 | 1,073,090 | ||
| Adjustments for: | ||||
| Depreciation charges | 56,669 | 58,202 | ||
| Interest received | (46,675) | (33,274) | ||
| Decrease in stocks | - | 1,000 | ||
| Increase in debtors | (72,163) | (15,123) | ||
| Increase in creditors | 48,458 | 5,968 | ||
| Net cash provided by operations | 671,708 | 1,089,863 | ||
| 2. | ANALYSIS OF CASH AND CASH EQUIVALENTS | |||
| 31/12/20 | 31/12/19 | |||
| £ | £ | |||
| Cash in hand | 578 | 707 | ||
| Notice deposits (less than 3 months) | 6,027,981 | 5,427,676 | ||
| Overdrafts included in bank loans and overdrafts falling due within one year | - | (664) | ||
| Total cash and cash equivalents | 6,028,559 | 5,427,719 | ||
| 3. | ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1/1/20 | Cash flow | At 31/12/20 | ||
| £ | £ | £ | ||
| Net cash | ||||
| Cash at bank and in hand | 5,428,383 | 600,176 | 6,028,559 | |
| Bank overdraft | (664) | 664 | - | |
| 5,427,719 | 600,840 | 6,028,559 | ||
| Total | 5,427,719 | 600,840 | 6,028,559 |
The notes form part of these financial statements
Page 14
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Incoming resources
Income from donations and grants, including capital grants, is Included when these are receivable, except as follows:
-
investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in Statement of Financial Activities in the period that they arise.
-
When donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the preconditions for use have been met.
-
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.
-
Gifts in kind are valued by the amount stated on the receipt if provided by the donor. Where no receipt is available, the items are valued by multiplying the weight with the prevailing price on the respective precious metal or commodity exchange in London at the respective wholesale price of each, plus a fixed value for labour per gram.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Interest receivable
Interest receivable is recognised in Statement of Financial Activities as they accrue, using the effective interest method.
Resources expended
The policy for including items within the relevant activity categories of resources expended is that expenditure is charged to the Statement of Financial Activities on an accruals basis, inclusive of VAT which cannot be recovered and is classified as follows:
Costs of generating funds
The costs of generating funds comprise the costs associated with attracting voluntary income.
Charitable activities
Charitable expenditure shall include all expenditure directly related to the objects of the charity including the following: -
Activities in furtherance of the charity's objectives and aims.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature to support them.
Governance costs
Governance costs shall include all expenditure directly related to the administration of the charity including expenditure incurred in the management of the charity's assets, organisational administration and compliance with charitable and statutory requirements.
continued...
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SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES - continued
Allocation of costs within types of resources expended
The methods and principles for the allocation and apportionment of all costs between the different activity categories of resources set out above are: -
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold property 1% Straight line basis Furniture & Equipment 20% Reducing Balance Murtis & Valuables NIL
Freehold buildings have been depreciated at 1% as the Charity follows a program of regular refurbishment and maintenance of its properties. This includes reinstatement of the fabric of buildings, where necessary, in order to maintain them to the highest level. Accordingly, in the opinion of the Trustees, the depreciation provided is appropriate.
Investment property
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at costs.
Subsequent to initial recognition:
Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in Statement of Financial Activities in the period that they arise.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items.
Taxation
As a registered charity, the charity is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
continued...
Page 16
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES - continued
Judgments and key sources of estimation uncertainty 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 the 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 estimates 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.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
-
Fair value of investment property
-
The investment property valuation contains a number of assumptions upon which the trustees and the property agent have based their valuations of the property. The assumptions on which the property valuations reports have been based include, but are not limited to, matters such as the tenure and tenancy details for the properties, ground conditions at the properties, the structural conditions of the properties, prevailing market yields and comparable market transactions. These assumptions are market standard and accord with the Royal Institution of Chartered Surveyors (RICS) valuation. However, if any assumptions made by the property valuer prove to be inaccurate; this may mean the value of the investment property differs from their valuation, which could have a material effect on the Statement of Financial Position.
2. DONATIONS AND LEGACIES
| Arti Darshan Thar Thakar Thali Diwali and Ankot Katha and Parayans Hindola Ramnavmi and Janmashtami Tulsi Vivah Naryal General Donations Sadhu Contributions Nilkanth Hall Contributions Patotsav Charity Activities Murtis and Valuables |
Restricted Unrestricted Total Total 31/12/20 31/12/20 31/12/20 31/12/19 £ £ £ £ - 81,100 81,100 159,579 - 263,402 263,402 260,060 - 7,596 7,596 32,104 - 40,405 40,405 78,857 - 4,600 4,600 39,960 - 5,211 5,211 4,278 - 10,741 10,741 27,660 - 192 192 8,025 - 24,762 24,762 50,831 - 63,781 63,781 103,047 - 3,626 3,626 28,117 - 2,830 2,830 21,185 - 35,921 35,921 44,210 - 41,044 41,044 58,412 48,578 - 48,578 189,107 48,578 585,211 633,7891,105,432 |
|---|---|
continued...
Page 17
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
| 3. OTHER TRADING ACTIVITIES Library Income 4. INVESTMENT INCOME Rents received Deposit account interest 5. INCOME FROM CHARITABLE ACTIVITIES Gift Aid Tax Refund £ Gift Aid Tax Refund 88,005 Bal Mandal - License fee income - 88,005 |
Bal Mandal £ - 5,566 - 5,566 |
License fee Income £ - - 95,000 95,000 |
31/12/20 £ 1,930 31/12/20 £ 239,936 46,675 286,611 31/12/20 Total activities £ 88,005 5,566 95,000 188,571 |
31/12/19 £ 3,315 31/12/19 £ 235,678 33,274 268,952 31/12/19 Total activities £ 139,577 18,303 95,000 252,880 |
|---|---|---|---|---|
6. RAISING FUNDS
Raising donations and legacies
| Donations Voluntary expenses Prashad and Puja expenses Wages and salaries |
Restricted Unrestricted Total Total 31/12/20 31/12/20 31/12/20 31/12/19 £ £ £ £ - 11,793 11,793 30,811 - 10,797 10,797 19,520 - 98,227 98,227 156,204 - 70,559 70,559 65,626 - 191,376 191,376 272,161 |
|---|---|
continued...
Page 18
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
6. RAISING FUNDS - continued
| Investment management costs Rental properties expenses Aggregate amounts 7. CHARITABLE ACTIVITIES COSTS Bal Mandal Management and administration costs Library expenses 8. SUPPORT COSTS Management £ Management and administration costs 165,555 Rates and water Insurance Light and heat Telephone Postage and stationery Cleaning Repairs and renewals IT costs Depreciation |
31/12/20 £ 58,534 249,910 Support Direct costs (see Costs note 8) £ £ 550 - - 173,372 1,650 - 2,200 173,372 Governance Finance Other costs £ £ £ 2,532 884 4,401 Restricted Unrestricted Total 31.12.20 31.12.20 31.12.20 £ £ £ - 13,529 13,529 - 10,483 10,483 - 28,380 28,380 - 1,366 1,366 - 2,182 2,182 - 9,605 9,605 - 42,648 42,648 - 693 693 - 56,669 56,669 - 165,555 165,555 |
31/12/19 £ 44,614 316,775 Totals £ 550 173,372 1,650 175,572 Totals £ 173,372 Total 31.12.19 £ 30,031 9,521 41,735 1,723 1,025 4,644 51,242 4,479 58,202 202,602 |
|
|---|---|---|---|
continued...
Page 19
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
8. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
Governance costs
| Governance costs | ||
|---|---|---|
| 31/12/20 | 31/12/19 | |
| Management | ||
| and | ||
| administration | Total | |
| costs | activities | |
| £ | £ | |
| Auditors' remuneration | 3,200 | 3,160 |
| Professional and legal fees | 1,201 | - |
| 4,401 | 3,160 |
9. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
10. STAFF COSTS
| 31/12/20 | 31/12/19 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 70,559 | 65,626 |
| 70,559 | 65,626 | |
| The average monthly number of employees during the year was as follows: | ||
| 31/12/20 | 31/12/19 | |
| Engaged on charitable activities | 4 | 4 |
No employees received emoluments in excess of £60,000.
continued...
Page 20
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
11. TANGIBLE FIXED ASSETS
| COST At 1 January 2020 Additions Disposals At 31 December 2020 DEPRECIATION At 1 January 2020 Charge for year At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Freehold property £ 4,889,691 - - 4,889,691 321,992 49,226 371,218 4,518,473 4,567,699 |
Fixtures and fittings £ 683,537 151,184 - 834,721 322,409 7,443 329,852 504,869 361,128 |
Murtis and Valuables £ 447,235 2,359 (36,000) 413,594 - - - 413,594 447,235 |
Totals £ 6,020,463 153,543 (36,000) |
|---|---|---|---|---|
| 6,138,006 | ||||
| 644,401 56,669 |
||||
| 701,070 | ||||
| 5,436,936 | ||||
| 5,376,062 |
According to the Trustees' review the market values are no different from those recorded.
12. INVESTMENT PROPERTY
| FAIR VALUE At 1 January 2020 and 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
£ 3,550,340 |
|---|---|
| 3,550,340 | |
| 3,550,340 |
According to the Trustees' review the market values are no different from those recorded.
13. STOCKS
| STOCKS | ||
|---|---|---|
| 31/12/20 | 31/12/19 | |
| £ | £ | |
| Donated goods and bought in goods | 8,873 | 8,873 |
continued...
Page 21
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Accrued income Prepayments 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 16) Other creditors 16. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank overdrafts 17. MOVEMENT IN FUNDS Net movement At 1/1/20 in funds £ £ Unrestricted funds General fund 13,901,207 636,841 Restricted funds Charitable Activities 420,101 48,578 TOTAL FUNDS 14,321,308 685,419 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,062,323 Restricted funds Charitable Activities 48,578 TOTAL FUNDS 1,110,901 |
31/12/20 £ 142,201 11,145 153,346 31/12/20 £ - 171,327 171,327 31/12/20 £ - Transfers between funds £ 468,679 (468,679) - Resources expended £ (425,482) - (425,482) |
31/12/19 £ 69,591 11,592 81,183 31/12/19 £ 664 122,869 123,533 31/12/19 £ 664 At 31/12/20 £ 15,006,727 - 15,006,727 Movement in funds £ 636,841 48,578 685,419 |
|||
|---|---|---|---|---|---|
continued...
Page 22
SHREE KUTCH SATSANG SWAMINARAYAN TEMPLE (MANDIR) LONDON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
17. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Charitable Activities TOTAL FUNDS Comparative net movement in funds, included in the above are a |
At 1/1/19 £ 13,017,224 230,994 13,248,218 s follows: |
Net movement in funds £ 883,983 189,107 1,073,090 |
At 31/12/19 £ 13,901,207 420,101 14,321,308 |
|---|---|---|---|
| Unrestricted funds General fund Restricted funds Charitable Activities TOTAL FUNDS |
Incoming resources £ 1,441,472 189,107 1,630,579 |
Resources expended £ (557,489) - (557,489) |
Movement in funds £ 883,983 189,107 1,073,090 |
|---|---|---|---|
Transfers between funds
The transfer between funds represents the amounts utilised for the new Singhasan included in the fixed assets under fixtures and fittings.
18. RELATED PARTY DISCLOSURES
Incoming resources includes a license fee received from Ghanshyam Education Trust (GET) of £95,000 (2019: £95,000). GET is a charity and a company limited by guarantee in which the members of SKSST are the guarantors.
Included in creditors amounts falling due within one year is a balance of £11,430 (2019: £3,973 creditor) due to GET. The members of the company are the Trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited.
During the year the charity transacted at arms length, with committee members for provision of goods and services at an aggregate amount of £NIL (2019: £nil).
19. TRUSTEES' NOTE TO THE ACCOUNTS.
During a previous year, there was a burglary at the temple. This resulted in the loss of important artefacts. An insurance claim was duly notified and lodged for the loss. The insurance claim was not successful.
Page 23