����������������������������������������������������������
Charity number: 289430
Siri Guru Nanak Darbar (Sikh Temple)
Trustees' Report and Financial Statements
For the Year Ended 31 March 2023
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Contents
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 - 2 |
| Trustees' report | 3 - 9 |
| Independent auditors' report on the financial statements | 10 - 12 |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 26 |
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
| Reference and Administrative Details | |
|---|---|
| For the Year Ended 31 March 2023 | |
| Charity registration number | 289430 |
| Principal office | Guru Nanak Marg, Gravesend, Kent, DA12 1AG |
| Registered office | Guru Nanak Marg, Gravesend, Kent, DA12 1AG |
| Trustees | Manpreet Singh Dhaliwal (Chair) |
| Sohan Singh Bhatti | |
| Devinder Singh Boora | |
| Ajaib Singh Cheema (appointed 17 September 2023) | |
| Management Committee Officers | Manpreet Singh Dhaliwal, President |
| Devinder Singh Boora, General Secretary | |
| Jagdev Singh Virdee, General Secretary | |
| Balwinder Singh Cheema, General Secretary | |
| Swaran Singh, General Secretary | |
| Sohan Singh Bhatti, Treasurer | |
| Santosh Kaur Rani, Treasurer | |
| Inderpall Singh Sall, Vice President | |
| Kulwinder Singh Sandhu, Vice President | |
| Nanak Singh Chatwal, Vice President | |
| Baljit Singh Hayre, Vice President | |
| Baljit Singh Kang, Vice President | |
| Ajit Singh Clare, Vice President | |
| Gurmej Singh Biring, Vice President | |
| Priests | Mala Singh |
| Harbhajan Singh | |
| Gurdev Singh | |
| Punjabi Academy Teachers | Harpreet Kaur Sandhu (Teacher in Charge) |
| Amandeep Kaur Ghuman (Specialist for Yr 1) | |
| Paramjit Kaur Gill | |
| Gurpreet Kaur | |
| Sarbjit Kaur Natt | |
| Varinderjit Kaur | |
| Nachhatar Kaur Sodhi | |
| Rajbir Kaur Thind | |
| Vaneet Kaur (Early Year provision and UK QTS) |
Page 1
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Reference and Administrative Details For the Year Ended 31 March 2023
Bankers Barclays Bank Plc 355 Station Road, Harrow, HA1 2AW Lloyds TSB Plc 78 New Road, Gravesend, Kent, DA11 0AR Auditor UHY Kent LLP trading as UHY Hacker Young Thames House, Roman Square, Sittingbourne, Kent, ME10 4BJ
Bankers
Page 2
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
The Trustees of Siri Guru Nanak Darbar (Sikh Temple) present their report and financial statements for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.
Introduction
The Siri Guru Nanak Darbar (Sikh Temple) (“SGNDG”) is a charity located in Gravesend and primarily serves the local community providing both faith and non-faith based services and support to over 15,000 plus beneficiaries. The Gurdwara, also known as the SGNDG is a religious charity centered on the Sikh faith. All aspects of the SGNDG operations and management are premised on the foundations of Sikh teachings and principles.
OBJECTIVES AND ACTIVITIES
a. Policies and objectives, including strategies and activities for achieving these objectives
The object of the charity continues to be the furtherance of the Sikh Religion in accordance with the teachings of Sri Guru Granth Sahib Ji. Whilst the primary objective of the charity is to enable those of a Sikh heritage and Sikh commitment to share a place of worship, Sangat (congregation) and Langar (communal kitchen and food), the SGNDG prides itself on being able to extend its building and its volunteers' time to all members of the Gravesham community.
In addition to the aims and objectives defined in our constitution, the SGNDG set out or confirm each year its aims and objectives. This year our objectives were as follows:
-
Practice of Sikhi - to provide facilities to enable followers of the Sikh religion to practice their faith in a convenient and conducive environment in accordance to Sikh Gurmat i.e. the principles and rules laid down by the Ten Gurus and Sri Guru Granth Sahib Ji.
-
Celebration of Sikhi and Sikh Beliefs - to hold events to celebrate and commemorate key dates on the Sikh calendar.
-
Focus on education and sports - ensure the charity delivers education on both religious ideology and Punjabi language and providing opportunities for sports and the distribution of non-faith information and education.
-
Community Focus and Public Benefit - focus on community well-being, integration and diversity. This year, supporting the whole community continued to be a key priority. Although the pandemic has passed, the effects were still being felt, as well as the impact of the cost-of-living crisis that has followed.
b. Main activities undertaken to further the charity's purposes for the public benefit
The Trustees and the Management Committee have had due regard to the Charity Commission's guidance on public benefit. In particular SGNDG has provided public benefit in relation to the advancement of religion and of community development particularly through its education and youth activities which involve all members of the local community.
Following the pandemic, the Gurdwara sewadar teams have continued to work together to ensure that there is a safe environment for all. The steps taken are based on risk assessments that are regularly reviewed. Representatives of Gravesham Borough Council regularly inspect the Gurdwara Langar facility and we have always received a 5-star rating.
Page 3
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
c. Volunteers
Many volunteers (sewadars) give up their time to help at the Gurdwara, particularly at weekends and in the evenings. We are greatly indebted to these volunteers for their commitment and support.
ACHIEVEMENT AND PERFORMANCE
a. Key financial performance indicators
A key measurement for both the Trustees and the Management Committee as to their performance over the year is how closely we managed to deliver to our objectives and to the wishes of the Sangat (congregation). The review of activities section below highlights some of the key results delivered during 2022/23.
The Gurdwara’s Finance Team has worked hard to manage the income so that the Gurdwara continues to be able to serve the Sangat during these challenging times. While Gurdwara’s all over the country have been hit hard by the fall in numbers attending and lower incomes due firstly to Covid, and the cost-of-living crisis, we were able to minimise the impact by planning strategically. Some key decisions and actions are listed here:
-
Online donations facilities promoted further for Sangat to donate;
-
Ongoing substantial cost savings from free labour provided by Sewadars;
-
Gift Aid collected accurately and regularly;
-
Online Accounts package being used effectively to record income and expenditure; and
-
· Major financial decisions taken in full consultation with Management Team
b. Review of activities
Practice of Sikhism
Morning and evening services have continued to be conducted daily at the Gurdwara. Services and other practices according to the Sikh Rehat Maryada (Sikh Code of Conduct) were performed for weddings, birthdays, name-giving ceremonies, funerals or any other occasions according to the needs of worshippers.
Regular daily services/prayers were conducted with morning prayers between 4am and 10am and evening prayers between 4pm and 7.30pm. Langar (free kitchen for all) was supported and kept running throughout the year as is required by the Sikh Code of Conduct.
The following is a summary of services provided during 2022/23.
| a) | Anand Karajs / Weddings | – | 125 |
|---|---|---|---|
| b) | Akhand Paath | – | 48 |
| c) | Sukhmani Sahib Paath | – | 398 |
| d) | Sehaj Paath | – | 23 |
| e) | Funeral Services | – | 58 |
Page 4
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
Celebration of Sikhism and Sikh beliefs
The SGNDG celebrated all main events on the Sikh Calendar, including all the major Gurpurab’s (special religious anniversaries).
An annual Nagar Kirtan (procession) in the month of April is normally organised to celebrate the birthday of the Sikh Nation - the Khalsa Panth. This has proved very popular not only amongst the Sikh population, but also the wider local community. We have used this as a springboard as a means of interaction and dialogue with our local community. In 2020 and 2021, the Nagar Kirtan had to be cancelled due to Covid-19. April 2022 saw the welcome return of the Nagar Kirtan, followed by a Dharmic Mela on the Gurdwara grounds.
During the pandemic, the Gurdwara’s Digital and Technology Team facilitated keeping the Sangat engaged with the Gurdwara through installing live broadcast equipment in all three Diwan Halls. This facility has been maintained so that even after the pandemic, those who cannot come to the Gurdwara can enjoy the services from home or wherever they may be.
Education
The SGNDG supports the Guru Nanak Punjabi School, which conducts Punjabi language classes every Saturday. Children also attend workshops at the Gurdwara about Sikh issues. The curriculum is positioned to attain competence and fluency In Punjabi language to enable the students to attain GCSE and ‘A’ Level qualifications. For the academic year 2022/23, the number of students on roll was around 318 of which 60 are in the early years provision for 6 – 8 years old. Students are taught by teachers who have a first degree in teaching from Punjab and as well as LSA qualification in UK. The staff teaching time is approximately four hours per week, in line with the school terms. A specialist teacher usually teaches the ‘A’ Level class. There are currently ten teachers and three volunteers who are being supported to become teachers of Punjabi themselves.
Last year the number of students taking GCSE was 35, all of whom achieved level 9 – 4 in their exams. The bulk of the grades were at the higher levels. Since the impact of Covid it has been difficult to start the ‘A’ Level Punjabi classes as local schools have withdrawn support for the teaching of Punjabi. The school also offered GCSE in Sikhi before the pandemic, and it is being considered that this might be restarted if there is demand.
The Punjabi School teachers are named on the Reference and Administrative Details page.
In addition to Punjabi language teaching, the SGNDG normally provides the following educational and learning activities:
-
a) Kirtan classes where students also learn to play the Tabla and Harmonium;
-
b) Sikhi Camps regularly throughout the year;
-
c) Weekly Gatka Classes (Sikh martial arts) with approximately 40 students
Sports
SGNDG provides sporting facilities to Guru Nanak Sports Club where approximately 1,000 children and adults are normally involved in various sports. The number of people using the sports facilities has returned to normal after two years of reduced numbers due to the pandemic.
The sports club held two major events this year, a Karate competition and a Kabaddi tournament. Both were well attended. The Gurdwara was also chosen to host a visit of the Queen’s Baton Relay which travelled around the country before the Commonwealth Games in Birmingham.
Participation numbers in all sports clubs that use our facilities are steady or increasing, with more and more people taking an active part in healthy activities.
Page 5
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
The new Outdoor Gym has proved to be very popular with members of the Sangat. The walking track is used daily by many members of the Sangat to help them keep fit in a safe environment.
Community focus and public benefit
Supporting the Sangat with their health and wellbeing has become particularly important in recent years. A variety of actions have been taking place during 2022/23 to promote community well-being, diversity and integration for the greater public benefit.
The Health and Wellbeing Team offer their support to the Sangat face to face and remotely in various ways, signposting members of the Sangat to experts in the relevant fields if necessary. A helpline number is promoted on the website and social media and has been used by people who have reached out for advice and support. Poor mental health is a growing concern, and the number of deaths by suicide in the area has seen an increase in the last year.
Increasing the knowledge of Sikhism and the functioning of the Gurdwara to the wider community through presentations and guided tours for local students is normally a major activity at the Gurdwara, hosting Primary and Secondary Schools from across Kent, with students and teachers spending around two hours inside the Gurdwara. After suspension of this activity during 2020/21, about 90 visits were hosted during 2021/22 and this reduced to about 60 in 2022/23 as some schools faced financial shortages and could not organise transport to the Gurdwara.
The SGNDG web page (www.gurunanakdarbar.org) continues to be developed. The site has grown from a single page to a well-structured and comprehensive informational site where users can find details of the Gurdwara, its location, the events being held, and any major developments. The site enables schools, organisations and individuals to make requests to visit online if they would like a guided visit to learn about Sikhi.
Social Media has been used to good effect by SGNDG to engage with the Sangat, using Facebook, Instagram, Twitter (now X), LinkedIn, as well as broadcasting messages to subscribers through a text service and through WhatsApp.
Joint initiatives with other organisations that provided various services at the Gurdwara through clinics and drop-in sessions are proving helpful and informative to the Sangat. These include NHS OneYou health advice on a one-to-one basis, Sure Start sessions for mothers and toddlers, weekly Citizens Advice clinic, and weekly Legal Advice clinic.
The Gurdwara is active in representing the community at various forums, such as the North Kent Inter Faith Network and the Independent Police Advisory Group.
Improve the SGNDG Facilities
The main focus during this year was to maintain the Gurdwara's main building facilities in good order. We have purposebuilt facilities for sports, weddings, education, computer facilities, conference rooms, lecture theatre, kitchen facilities, car parking, disabled parking, disabled access ramps, shower and washing facilities.
The fountain area in front of the Gurdwara had become eroded and damaged and has been completely upgraded, with new automated fountains and lights fitted which enhance the Gurdwara’s outlook and attractiveness. The area devoted to the fountains has been reduced and the remaining area has been fitted with decking and seating space.
Page 6
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
Financial review
Total incoming resources for the year amounted to £2.23m, a small decrease from £2.32m in 2021/22.
Expenditure for the year was £1.31m, an increase from £1.04m in the previous year, leaving a net incoming resources of £913k (2022: £1.27m). The Trustees consider the surplus achieved on its activities to be satisfactory.
At 31 March 2023 the charity had total funds of £16.94m (2022: £16.03m), of which £5.5m (2022: £5.5m) related to restricted funds, the remainder relating to unrestricted funds.
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
b. Reserves policy
Restricted reserves are maintained in respect of the monies donated for the building of the new Gurdwara. Three months working expenses are to be held as a reasonable reserve to maintain the charity's services.
At 31 March 2023 the charity held free reserves (being total funds less restricted funds and other funds associated with tangible fixed asset and associated borrowings) of £1.3 6 m (2022: £618k).
c. Principal funding
The charity’s principal source of funding during the year was once again donations and associated gift aid claims, provided by members of the congregation wanting to contribute to the Gurdwara’s running costs.
STRUCTURE, GOVERNANCE AND MANAGEMENT
a. Constitution
The charity is governed by its constitution adopted on 15th April 1984.
The principal object of the charity continues to be the furtherance of the Sikh Religion in accordance with the teachings of Sri Guru Granth Sahib Ji.
There have been no changes in the objectives since the last annual report.
b. Method of appointment or election of Trustees
The Trustees are appointed and removed by the Sadh Sangat.
c. Policies adopted for the induction and training of Trustees
Advice for trustees published by the Charity Commission is given to new Trustees and new guidance is notified and made available at Committee meetings. Trustees are fully involved in the operations of the charity and have free access to all members of staff to ensure that they can be fully aware of the activities and methods of the charity.
Page 7
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
d. Pay policy for senior staff
The Trustees consider that they and the Management Committee officers comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no trustee received remuneration in the year, nor were any trustee expenses incurred.
The Management Committee also give their time freely and are not remunerated.
e. Organisational structure and decision making
The Trustees are responsible for the administration and investment policy of the Charity. A management committee, appointed by the President, is responsible for the day-to-day management of the charity. Members of the Management Committee are listed on the Reference and Administrative Details page. There are also sub-teams set up, covering building development and maintenance, youth related activities, sports, health and wellbeing, religious and Punjabi education, langar, finance and audit, and digital and technology. A sub-team head is appointed for each team.
f. Related party relationships
The charity did not enter into transactions with any related parties during the year.
g. Risk management and principal risks and uncertainties
The Trustees are required to consider all major risks to which the charity is exposed. An annual review is undertaken and systems have been established to mitigate such risks, or continue to be developed as part of its review process.
The main risks that the charity is exposed to are:
-
Reliance on charitable donations from members of the congregation as the main source of income. Financial sustainability is the major financial risk, and the management of this risk involves a regular review of available liquid funds to settle debts as they fall due.
-
Long term bank loans in place to fund the new Gurdwara building costs meant that the charity has been making repayments for several years, incurring significant annual interest costs. However, the loan was paid off completely in April 2022.
-
Ensuring the board of trustees has appropriate skills and individuals can devote sufficient time to their role.
-
· Non-financial risks include those arising from health and safety matters. The volume of visitors to the Gurdwara means that it is imperative that regular health and safety assessments take place and that adequate insurance cover is in place.
h. Trustees' indemnities
The charity maintains trustees/officers' liability insurance which gives appropriate cover for any legal action brought against its trustees.
PLANS FOR FUTURE PERIODS
The Trustees are looking to the future with confidence. Since we moved to the new building the community is now benefiting from the enhanced footfall and increased range of services. Ongoing negotiations with the local council continued in regard to the building at Clarence Place, with an application regarding redevelopment of the building going through the approval processes. The process was completed in late 2022 and actual work is now underway. Preparatory work has been carried out throughout 2023 and full refurbishment will commence in early 2024 following a tender process.
Page 8
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Trustees’ Report For the Year Ended 31 March 2023
The Covid-19 pandemic had a significant impact on the 2020/21 accounting period, followed by a significant recovery in 2021/22 as the postponed programmes such as weddings and Paaths needed to be accommodated. There was a significant amount of “catching up”, as families re-arranged their various programmes such as Anand Karajs and Sukhmani Sahib Paaths. 2022/23 onwards will see a reduction in numbers of events after the post-Covid “catch-up”. The rising cost of living has also increased the Gurdwara’s expenditure on fuel for heating, lighting and cooking, as well as increases in the price of foodstuffs for Langar.
The annual Vaisakhi celebrations with Nagar Kirtan and Dharmic Mela for April 2022 and 2023 took place as very successful events, after two years of cancellation due to Covid, and will also take place in April 2024.
TRUSTEES’ RESPONSIBILIITIES STATEMENT
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the 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 and of the incoming resources and application of resources of the charity 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 in the Charities SORP (Statement of Recommended Practice);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards 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 operation.
The Trustees are responsible for keeping proper 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.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved by the Trustees and signed on their behalf by:
…………………………… ……………………………. Manpreet Singh Dhaliwal Sohan Singh Bhatti Trustee Trustee
Date: ���������������
Page 9
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Independent Auditors' Report to the Members of Siri Guru Nanak Darbar (Sikh Temple)
Opinion
We have audited the financial statements of Siri Guru Nanak Darbar (Sikh Temple) (the 'charity') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
-
give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
Page 10
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Independent Auditors' Report to the Members of Siri Guru Nanak Darbar (Sikh Temple) (continued)
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:
-
the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees 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.
Auditors' 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 Auditors' 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:
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 noncompliance with laws and regulations, was as follows:
-
we identified the laws and regulations applicable to the trust through discussions with management, and from our commercial knowledge and experience of the charity and wider not-for-profit sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the operations of the charity;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
-
identified laws and regulations were communicated within the audit team and the team remained alert to instances of non compliance throughout the audit.
We assessed the susceptibility of the trust’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
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:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
• tested journal entries to identify unusual transactions;
Page 11
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Independent Auditors' Report to the Members of Siri Guru Nanak Darbar (Sikh Temple) (continued)
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading minutes of meetings of those charged with governance; and
-
enquiring of management and representatives of Trustees as to actual and potential litigation and claims.
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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
UHY Kent LLP
Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ
Date: 31 January 2024
UHY Kent LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 12
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Statement of financial activities For the Year Ended 31 March 2023
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Charitable activities Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 1,987,331 173,250 59,550 73 2,220,204 1,306,756 1,306,756 913,448 10,557,383 913,448 11,470,831 |
Restricted funds 2023 £ 8,000 - - - 8,000 8,000 8,000 - 5,471,486 - 5,471,486 |
Total funds 2023 £ 1,995,331 173,250 59,550 73 2,228,204 1,314,756 1,314,756 913,448 16,028,869 913,448 16,942,317 |
Total funds 2022 £ 2,005,424 249,450 61,025 5 |
|---|---|---|---|---|
| 2,315,904 | ||||
| 1,042,688 | ||||
| 1,042,688 | ||||
| 1,273,216 | ||||
| 14,755,653 1,273,216 |
||||
| 16,028,869 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 26 form part of these financial statements.
Page 13
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Balance Sheet As at 31 March 2023
| Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets / liabilities Total net assets Charity funds Restricted funds 14 Unrestricted funds 14 Total funds |
- 1,511,100 1,511,100 (156,009) |
2023 £ 15,587,226 1,355,091 16,942,317 5,471,486 11,470,831 16,942,317 |
223,534 500,871 724,405 (224,905) |
2022 £ 15,529,369 499,500 |
|---|---|---|---|---|
| 16,028,869 | ||||
| 5,471,486 10,557,383 |
||||
| 16,028,869 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Sohan Singh Bhatti Chair of Trustees
Manpreet Singh Dhaliwal Trustee
Date: ���������������
The notes on pages 16 to 26 form part of these financial statements.
Page 14
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Statement of Cash Flows For the Year Ended 31 March 2023
| Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Interest received Interest paid Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 17 |
2023 £ 1,258,775 (129,718) (129,718) (118,683) 73 (218) (118,828) 1,010,229 500,871 1,511,100 |
2022 £ 1,285,408 (53,526) (53,526) (1,349,157) 5 (14,395) (1,363,547) (131,665) 632,536 500,871 |
|---|---|---|
The notes on pages 16 to 26 form part of these financial statements
Page 15
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
1. General information
Siri Guru Nanak Darbar (Sikh Temple) is an unincorporated charity, registered in England. The charity's registered office is Guru Nanak Marg, Gravesend, Kent, DA12 1AG.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Siri Guru Nanak Darbar (Sikh Temple) 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.
2.2 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
2.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
2.4 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.
2.5 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 institution with whom the funds are deposited.
Page 16
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
2. Accounting policies (continued)
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
| Freehold property | - See below |
|---|---|
| Plant and machinery | - 3 - 10 years straight line |
| Fixtures and fittings | - 25% reducing balance |
Most of the value of the freehold property relates to the Gurdwara Temple. Depreciation has not been provided on the freehold property, other than the walking track, since any charge would be immaterial on the basis that the assets have a long useful life and a high residual value that is considered to be at least equal to the carried value of the assets in the accounts.
Impairment would be provided for if necessary. Impairment reviews are carried out when there are any indicators of impairment.
Depreciation has been provided on the walking track over 10 years on a straight line basis.
2.7 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.
2.8 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.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs 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.
Page 17
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
3. Income from donations and legacies
| Donations Donations including Langar Donation boxes - Golak Gift Aid tax reclaimed Government grants Analysis of 2022 total by fund |
Unrestricted funds 2023 £ 1,212,563 575,615 199,153 - 1,987,331 2,005,424 |
Restricted funds 2023 £ - - - 8,000 8,000 - |
Total funds 2023 £ 1,212,563 575,615 199,153 8,000 1,995,331 2,005,424 |
Total funds 2022 £ 1,285,589 512,368 193,548 13,919 |
|---|---|---|---|---|
| 2,005,424 | ||||
During the year the charity received donations totalling £275 (2022: £300) from trustees.
The government grant income of £8,000 for the current year is from Kent County Council for the trust to promote safer living (see note 14 for further details). Government grant income in 2022 related to claims made under the government Covid-19 Job Retention Scheme.
4. Income from charitable activities
| Hall hire for weddings and events Analysis of 2022 total by fund |
Unrestricted funds 2023 £ 173,250 249,450 |
Total funds 2023 £ 173,250 249,450 |
Total funds 2022 £ 249,450 |
|---|---|---|---|
Page 18
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
5. Income from other trading activities
Income from non charitable trading activities
| Rental income - Gravesham Council Rental income - Kent County Council Advertisement income Analysis of 2022 total by fund |
Unrestricted funds 2023 £ 30,800 28,750 - 59,550 61,025 |
Total funds 2023 £ 30,800 28,750 - 59,550 61,025 |
Total funds 2022 £ 29,600 30,275 1,150 |
|---|---|---|---|
| 61,025 | |||
6. Investment income
| Interest on cash deposits Analysis of 2022 total by fund |
Unrestricted funds 2023 £ 73 5 |
Total funds 2023 £ 73 5 |
Total funds 2022 £ 5 |
|---|---|---|---|
Page 19
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
7. Analysis of expenditure by activities
| Charitable activities Analysis of 2022 total In 2022, all expenditure related to unrestricted funds. |
Direct costs 2023 £ 1,308,449 1,036,607 |
Support costs 2023 £ 6,307 6,081 |
Total funds 2023 £ 1,314,756 1,042,688 |
Total funds 2022 £ 1,042,688 |
|---|---|---|---|---|
Analysis of direct costs
| Staff costs Depreciation Langar - Food costs Dharam Parcher - other costs Running costs - Temple Running costs - Education and sports centre Maintenance of buildings Sports clubs and activities Publicity costs Bank charges Bank loans and overdrafts Legal and professional Charitable donations Covid-19 support costs |
Total funds 2023 £ 295,510 70,990 204,861 143,208 374,313 25,002 156,016 3,653 5,537 3,093 378 7,127 18,761 - 1,308,449 |
Total funds 2022 £ 129,045 48,534 274,217 108,744 280,754 30,788 80,620 2,748 10,279 4,465 14,396 1,380 16,767 33,870 |
|---|---|---|
| 1,036,607 |
Page 20
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
7. Analysis of expenditure by activities (continued)
Analysis of support costs
| Total | Total | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Legal and professional costs | 6,307 | 6,081 |
8. Auditors' remuneration
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Fees payable to the charity's auditor for the preparation and audit of the charity's annual | ||
| accounts (incl. VAT) | 5,820 | 4,722 |
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2023 £ 278,428 13,371 3,711 295,510 |
2022 £ 115,412 10,728 2,905 |
|---|---|---|
| 129,045 |
Wages and salaries include the cost of waiting staff hired to support weddings, which is bought in via a third party company. These staff are not employed by the charity, and hence are not included in the average employee numbers below.
The average number of persons employed by the charity during the year was as follows:
| Priests Punjabi Academy Teachers Langar Team |
2023 No. 6 10 6 22 |
2022 No. 4 11 10 |
|---|---|---|
| 25 |
Page 21
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
9. Staff costs (continued)
No employee received remuneration amounting to more than £60,000 in either year.
The Trustees consider that they and the Management Committee officers comprise the key management personnel of the charity, in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees and Management Committee officers give of their time freely and are not remunerated.
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .
11. Tangible fixed assets
| Cost or valuation At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for the year On disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Freehold property £ 15,541,671 - - 15,541,671 122,103 13,567 - 135,670 15,406,001 15,419,568 |
Plant and machinery £ 239,375 21,996 (12,875) 248,496 198,914 13,247 (12,875) 199,286 49,210 40,461 |
Fixtures and fittings £ 239,233 107,722 (6,420) 340,535 169,893 44,176 (5,549) 208,520 132,015 69,340 |
Total £ 16,020,279 129,718 (19,295) 16,130,702 490,910 70,990 (18,424) 543,476 15,587,226 15,529,369 |
|---|---|---|---|---|
Page 22
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
12. Debtors
| Prepayments and accrued income Creditors: Amounts falling due within one year Bank loans Trade creditors Other creditors Accruals and deferred income |
2023 £ - - 2023 £ - 30,610 381 125,018 156,009 |
2022 £ 223,534 |
|---|---|---|
| 223,534 | ||
| 2022 £ 118,464 8,892 1,017 96,532 |
||
| 224,905 |
13. Creditors: Amounts falling due within one year
Page 23
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
14. Statement of funds
Statement of funds - current year
| Unrestricted funds Unrestricted income fund Restricted funds Building fund KCC - Covid-19 Engaging Communities & Reducing Risk fund Total of funds |
Balance at 1 April 2022 £ 10,557,383 5,471,486 - 5,471,486 16,028,869 |
Income £ 2,220,204 - 8,000 8,000 2,228,204 |
Expenditure £ (1,306,756) - (8,000) (8,000) (1,314,756) |
Balance at 31 March 2023 £ 11,470,831 |
|---|---|---|---|---|
| 5,471,486 - |
||||
| 5,471,486 | ||||
| 16,942,317 |
The general funds comprise funds that the trustees are free to use in accordance with the charitable objects.
The restricted funds are funds that have been given for particular purposes and projects. The purpose of each restricted fund is set out below:
Building fund - this represents fully spent money given since 2002 towards the construction of the new temple. The costs are included within freehold property in note 11.
Kent County Council (KCC) - Covid-19 Engaging Communities & Reducing Risk fund accounts for a grant awarded via a project designed to support initiatives and/or provide additional capacity to deliver interventions/initiatives linked to the prevention or containment of COVID-19 outbreaks.
Statement of funds - prior year
| Unrestricted funds Unrestricted income fund Restricted funds Building fund Total of funds |
Balance at 1 April 2021 £ 9,284,167 5,471,486 14,755,653 |
Income £ 2,315,904 - 2,315,904 |
Expenditure £ (1,042,688) - (1,042,688) |
Balance at 31 March 2022 £ 10,557,383 |
|---|---|---|---|---|
| 5,471,486 | ||||
| 16,028,869 |
Page 24
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2023 £ 10,115,740 1,511,100 (156,009) 11,470,831 |
Restricted funds 2023 £ 5,471,486 - - 5,471,486 |
Total funds 2023 £ 15,587,226 1,511,100 (156,009) 16,942,317 |
|---|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 10,057,883 724,405 (224,905) 10,557,383 |
Restricted funds 2022 £ 5,471,486 - - 5,471,486 |
Total funds 2022 £ 15,529,369 724,405 (224,905) 16,028,869 |
|---|---|---|---|
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Loss on the sale of fixed assets Decrease/(increase) in debtors Increase/(decrease) in creditors Interest payable Interest receivable Net cash provided by operating activities |
2023 £ 913,448 70,990 871 223,534 49,787 218 (73) 1,258,775 |
2022 £ 1,273,216 48,534 - (167,538) 116,806 14,395 (5) 1,285,408 |
|---|---|---|
Page 25
����������������������������������������������������������
Siri Guru Nanak Darbar (Sikh Temple)
Notes to the Financial Statements For the Year Ended 31 March 2023
17. Analysis of cash and cash equivalents
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Cash in hand | 1,511,100 | 500,871 |
18. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year |
At 1 April 2022 £ 500,871 (118,464) 382,407 |
Cash flows £ 1,010,229 118,464 1,128,693 |
At 31 March 2023 £ 1,511,100 - |
|---|---|---|---|
| 1,511,100 |
19. Related party transactions
The charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the charity at 31 March 2023.
20. Post balance sheet events
Since the year end the charity has obtained planning permission to convert the old gurdwara, in Clarence Place, Gravesend, into fourteen flats. Preparatory work has been carried out throughout 2023 and full refurbishment is due to commence in early 2024.
21. Controlling party
The charity is controlled by the trustees and on a day-to-day basis is managed by the Management Committee.
Page 26