2021-04-05-accounts - The Kung Ho Association

Kung Ho Association

Kung Ho Association

Annual Report of the Management Committee for the Year Ended 5 April 2021

Reference and administration information

Covid-19 Pandemic and its Impact

Structure, governance and management

Principal objectives and activities

Volunteers and members

Volunteers

Members

Achievements and performance

Background

Financial review

Accounting and reporting responsibilities

Trustees’ declaration

Treasurer

Chairman

Treasurer

Note 1 Basis of preparation

Note 2 Accounting policies

Incoming resources

3. Grants and donations

Expenditure and liabilities

16. Support costs

Assets

18. Investments

19. Stocks and work in progress

Note 3 Analysis of incoming resources

Note 4 Analysis of resources expended

Note 5 Support costs

Note 6 Details of certain items of expenditure

Note 7 Paid employees

Note 8 Grant making

Note 9 Tangible fixed assets

Note 10 Investment assets

Note 11 Debtors and prepayments

Note 12 Creditors and accruals

Note 13 Endowment and restricted income funds

Note 14 Transactions with related parties

Note 15 Transfers between funds

Note 16 Intra-balances between the Association and the School

Kung Ho Association

Independent Examiner’s Report to the Trustees of Kung Ho Association

Respective responsibilities of trustees and examiner

Basis of independent examiner’s report

Independent examiner’s statement

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

9 Kenrick Place, London W1H 3FF

Annual Report and Financial Statements

Registered Charity Number: 291613 Available at: www.charity-commission.gov.uk

The management committee presents its annual report and financial statements for the year ended 5 April 2021.

Name of Charity:

Kung Ho Association

Registered Charity Number: 291613 Address:

9 Kenrick Place, London W1H 3FF

Management Committee:

Members of the management committee are the trustees of the association.

Ms T. Y. Lam Y. B. Pang Y. L. Lau K. T. Ho K. T. Pang Ms Y. Y. Chow W. S. Lee

(Chairperson) (Treasurer)

Bankers:

Bank of China 90 Cannon Street London EC4N 6HA

HSBC Bank plc 8 Canada Square London E14 5HQ

Independent Examiner:

Sunny Liu BA FCCA Liu’s Accountancy 4 Saxon Road Walton on Thames Surrey KT12 3HD

The pandemic has had a fundamental impact on Kung Ho Association and its Chinese school operations during the current financial year. No Sunday schooling, sporting or fundraising events were possible due to the imposed restrictive measures on social distancing and gatherings. The management committee assesses, reviews and monitors the pandemic impact and effect and to take all appropriate actions to continue its operations to benefit the minority Chinese living in London.

Kung Ho is an unincorporated charitable association, governed by a written constitution adopted in April 1947. Members of Kung Ho’s management committee are elected at the AGM on a two-year term of office. Additional committee members may be co-opted to the management committee during the year. The committee conducted meetings via telephone during the year.

The principal function of the association remains in charitable activities that directly or indirectly benefit the minority Chinese living in London. Subject to the comments made relating to the pandemic and its impact, the association had run Chinese school classes on Sundays at Westminster College prior to March 2020. For over four decades since its inception in 1968 these classes have benefited thousands of Chinese children, as well as many of those from other ethnic background. The school follows a curricular programme that guides students to attaining excellent grades in GCSE Chinese, a recognised academic qualification in the UK.

Kung Ho’s main objectives for next year are:

To explore the online teaching and learning provisions, via the use of the UKAPCE app (UK Association for the Promotion of Chinese Education).
To provide information on Kung Ho Chinese School, its opening times, a calendar of activities and other communication with parents and students via its social media page.
To develop potential income streams (including rental income) to support the ongoing School activities.

Prior to the temporary suspension of the School activities, the Kung Ho Association has twenty volunteer teachers and 15 management committee members.

In terms of its membership, the Association has taken an informal approach to the recording members’ details and enforcement of rules. With a steady but marginally increasing number of members, the management committee proposed the introduction of a more formal register where personal and membership details could be properly recorded and maintained with due consideration to all current and applicable data protection laws.

Kung Ho considers itself an umbrella charitable association that serves to represent and develop a coherent voice for the ethnic Chinese living in London. Generations of students have achieved excellent attainment from the Chinese school in their formal academic training with us every Sunday during school term time. Our students have retained and, for some, regained pride in their cultural roots and values. Many of our former students return to the school as volunteer teachers, further reinforcing the communal aspects of our work.

Since March 2021, the school explored various options including online teaching provisions. The Chinese school hopes to attract current and prospective students to join the online class. Students who are currently participating in the class are temporarily exempt from tuition fees, and teachers who support the delivery of the online course are reimbursed expenses as volunteers, in line with the existing policies.

In conclusion, it has been a very challenging year in relation to services delivered to our members and children at the Chinese school. The management committee continued to recognise the importance of having the association’s accounts up to date. The Association would like to thank Liu’s Accountancy for their advice and independent examination.

The income resources decreased by 24% to £30,330 (2020: £60,388) while resources expended have decreased by 66% to £13,503 (2020: £39,584), creating a net surplus to the funds of £22,827 (2020: net surplus of £20,804). This represents a 9% increase of the association’s brought forward funds (2020: 7% increase).

Owing to restrictions imposed by the Covid-19 measures, no fundraising events took place during the year. The association’s cash balance represented 42% of total net assets during the year (2020: 35%).

Reserves and investment policies

During the year the management committee continued its banking facilities with Bank of China and HSBC, the existing bankers. As the association’s reserves are limited and all funds held by the association earn interest tied to the banks’ respective base rates, the management committee does not have an investment policy at present. It will review both this and the reserves policy when the association’s reserves increase. The free reserves as at the year-end amounted to £118,611 (2020: £90,712).

Risk assessment

The management committee does not believe the association is subject to any substantial risks beyond the liabilities disclosed in the financial statements. The association has no employees and owns a freehold property at 9 Kenrick Place, London. It holds building and contents insurance policies.

The management committee accepts that the association’s reputation could be at risk through a serious complaint regarding a teacher’s conduct. In addition to the existing training programme for all volunteer teachers, the management committee is considering formalising the recruitment vetting process of volunteers, which will be reviewed on a regular basis. The process includes the enhanced Criminal Records Bureau on volunteers and committed members.

The management committee is responsible for preparing financial statements for each financial year, which gives a true and fair view of the association’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the management committee should follow best practice and:

select suitable accounting policies and then apply them consistently;
make judgement and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the association will continue in operation.
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The management committee is responsible for:

keeping accounting records which disclose with reasonable accuracy at any time the financial position of the association and enable the management committee to ensure that the annual financial statements comply with the applicable Charities Acts; and
safeguarding the association assets and for taking reasonable steps for prevention and detection of fraud and other irregularities.

The report was approved by the trustees on 18 December 2021 and signed on their behalf by:

Chairperson

Kung Ho Association	Kung Ho Association

Overall Statement of Financial Activities
For the Year Ended 5 April 2021

			Unrestricted	Endowment
			funds	funds	2021	2020
		Notes	£	£	£	£
Income resources
Income resources from generating funds
-Activities for generating funds
	Gross takings from events	3			-	3,463
	School shop sales				-	12
	Donations received		11,200		11,200	-
	Sundry income		2,700		2,700	-
-Investment income: bank interest					-	-
	Rental income		22,430		22,430	31,808
Incoming resources from charitable resources
-Subscription & fees					-	12,771
Total incoming resources			36,330	-	36,330	48,054

Resources expended		4-8
Cost of generating funds
-Fundraising costs
	Payments for events		1,000		1,000	1,679
	Telephone, advertising & promotions		100		100	50
	Sundry expenses				-	1,670
-Investment costs: bank charges			91		91	63
Charitable activities (school operations)
	Premises expenses			3,223	3,223	19,964
	Repairs & renewals			430	430	1,480
	Travelling		2,008		2,008	4,842
	Printing, postage & stationery		88		88	297
	Others (including roundings)				-	(1)
	Insurance			1,357	1,357	1,334
	Depreciation			5,206	5,206	5,206
Governance costs					-	3,000
Total resources expended			3,287	10,216	13,503	39,584

Net movement in funds			33,043	(10,216)	22,827	8,470
Total funds brought forward		16	90,578	174,317	264,895	256,559
Transfers		15	(5,010)	5,010	-	-
Adjustments & roundings					-	-
Total funds carried forward			118,611	169,111	287,722	265,029

Kung Ho Association	Kung Ho Association

Statement of Financial Activities- The Association
For the Year Ended 5 April 2021

			Unrestricted	Endowment
			funds	funds	2021	2020
		Notes	£	£	£	£
Income resources
Income resources from generating funds
-Activities for generating funds
	Gross takings from events	3	-		-	3,463
	School shop sales
	Donations received	3	-		-	-
	Sundry income		-		-	-
-Investment income: bank interest			-		-	-
	Rental income		22,430		22,430	-
Incoming resources from charitable resources
-Subscription & fees			-		-	-
Total incoming resources			22,430	-	22,430	3,463

Resources expended
Cost of generating funds
-Fundraising costs
	Payments for events & donations	3	1,000		1,000	1,192
	Telephone, advertising & promotions		100		100	50
	Sundry expenses		-		-	1,250
-Investment costs: bank charges			91		91	63
Charitable activities (school operations)
	Premises expenses			360	360	585
	Repairs & renewals			421	421	1,480
	Travelling		-		-	-
	Printing, postage & stationery		73		73	240
	Others (including roundings)
	Insurance			1,357	1,357	1,334
	Depreciation			5,206	5,206	5,206
Governance costs			-		-	3,000
Total resources expended			1,264	7,344	8,608	14,400

Net movement in funds			21,166	(7,344)	13,822	(10,937)
Total funds brought forward		16	80,341	170,918	219,451	230,386
Total funds carried forward			101,507	163,574	233,273	219,449

Kung Ho Association	Kung Ho Association

Statement of Financial Activities- Kung Ho Chinese School
For the Year Ended 5 April 2021

			Unrestricted	Endowment
			funds	funds	2021	2020
		Notes	£	£	£	£
Income resources
Income resources from generating funds
-Activities for generating funds
	Gross takings from events				-	-
	School shop sales		-		-	12
	Donations received		11,200		11,200	-
	Sundry income		2,700		2,700	-
-Investment income: bank interest			-		-	-
	Rental income		-		-	-
Incoming resources from charitable resources
-Subscription & fees			-		-	12,771
Total incoming resources			13,900	-	13,900	12,783

Resources expended
Cost of generating funds
-Fundraising costs
	Payments for events		-		-	487
	Telephone, advertising & promotions		-		-	-
	Sundry expenses		-		-	420
-Investment costs: bank charges
Charitable activities (school operations)
	Premises expenses			2,863	2,863	19,379
	Repairs & renewals			9	9	-
	Travelling		2,008		2,008	4,842
	Printing, postage & stationery		15		15	57
	Others (including roundings)				-	-
	Insurance				-	-
	Depreciation			-	-	-
Governance costs			-		-	-
Total resources expended			2,023	2,872	4,895	25,185

Net movement in funds			11,877	(2,872)	9,005	(12,402)
Total funds brought forward		16	34,142	(19,379)	14,763	16,020
Total funds carried forward			46,019	(22,251)	23,768	14,763

Kung Ho Association

Overall Balance Sheet
For the Year Ended 5 April 2021

		Unrestricted	Endowment
		funds	funds	2021	2020
	Notes	£	£	£	£
Fixed assets
-Tangible fixed assets	9	-	169,111	169,111	174,317
-Investments	10	-	-	-	-
Total fixed assets		-	169,111	169,111	174,317

Current assets
-Debtors	11			-	-
-Cash at bank and in hand		120,111	-	120,111	91,706
Total current assets		120,111	-	120,111	91,706

Creditors:
-amounts falling due within one year	12	1,500	-	1,500	994
Total assets less current liabilities		118,611	169,111	287,722	265,029

Creditors:
-amounts falling due after one year		-		-	-
Net assets		118,611	169,111	287,722	265,029


Funds of the charity	13
Fund balance brought forward		92,983	174,317	267,300	256,560
Incoming resources		33,925	-	33,925	48,054
Outgoing resources		(3,286)	(10,216)	(13,502)	(39,584)
Transfers	15	(5,010)	5,010	-	-
Gains and losses		-	-	-	-
Fund balance carried forward		118,611	169,111	287,722	265,029



The notes on pages 11 to 16 form part of these financial statements.

Approved by the trustees on 18 December 2021 and signed on their behalf by:

Kung Ho Association

Balance Sheet- The Association
For the Year Ended 5 April 2021

		Unrestricted	Endowment		restated
		funds	funds	2021	2020
	Notes	£	£	£	£
Fixed assets
-Tangible fixed assets	9		169,111	169,111	174,317
-Investments	10		-	-	-
Total fixed assets		-	169,111	169,111	174,317

Current assets
-Debtors	11	-		-	-
-Cash at bank and in hand		95,065	-	95,065	76,942
Total current assets		95,065	-	95,065	76,942

Creditors:
-amounts falling due within one year	12	1,500		1,500	-
Total assets less current liabilities		93,565	169,111	262,676	251,259

Creditors:
-amounts falling due after one year				-	-
Net assets		93,565	169,111	262,676	251,259


Funds of the charity
Fund balance brought forward		76,942	174,317	251,259	248,321
Incoming resources		20,025	-	20,025	35,271
Outgoing resources		(1,264)	(7,344)	(8,608)	(14,400)
Transfers	15	(2,138)	2,138	-	-
Gains and losses		-	-	-	-
Fund balance carried forward		93,565	169,111	262,676	251,259

Kung Ho Association

Balance Sheet- Kung Ho Chinese School
For the Year Ended 5 April 2021

		Unrestricted	Endowment
		funds	funds	2021	2020
	Notes	£	£	£	£
Fixed assets
-Tangible fixed assets	9		-	-	-
-Investments	10		-	-	-
Total fixed assets		-	-	-	-

Current assets
-Debtors	11	-		-	-
-Cash at bank and in hand		25,046	-	25,046	14,764
Total current assets		25,046	-	25,046	14,764

Creditors:
-amounts falling due within one year	12	-		-	-
Total assets less current liabilities		25,046	-	25,046	14,764

Creditors:
-amounts falling due after one year		-		-	-
Net assets		25,046	-	25,046	14,764


Funds of the charity
Fund balance brought forward		16,041	-	16,041	16,021
Incoming resources		13,900	-	13,900	12,783
Outgoing resources		(2,022)	(2,872)	(4,894)	(25,184)
Transfers	15	(2,872)	2,872	-	-
Gains and losses		-	-	-	-
Fund balance carried forward		25,046	-	25,046	3,620

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Basis of accounting

These financial statements have been prepared on the basis of historic cost in accordance with:

Accounting and Reporting by Charities – Statement of Recommended Practice (issued in March 2008) and applicable accounting standards;
Financial Standards for Smaller Enterprises; and
The Charities Acts 2016, 2011 and related regulations.

In particular the Statement of Financial Activities shows resources classified to properly reflect the activities of the association. The financial statements have been prepared on a deferred income and accruals basis.

Change in basis of accounting

There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.

Changes to previous accounts

No changes have been made to accounts for previous years.

Recognition of incoming resources

These are included in the financial statements when:

the association becomes entitled to the resources;
the trustees are virtually certain they will receive the resources; and
the monetary value can be measured with sufficient reliability.
Incoming resources with related expenditures

Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resources and related expenditure are reported gross in financial statements.

Grants and donations are only included in the financial statements when the association has unconditional entitlement to the resources.

Subscription income and school fees

Subscriptions from members cover a 12 month period and are renewable annually, depending on when the association received the initial subscription. School fees cover a 12 month academic year runs from 1 September to the following 31 August. Fees are payable at the start of each academic year on enrolment or re-enrolment of students.

Tax reclaims on donations and gifts

Incoming resources from tax reclaims are included in the financial statements at the same time as the gift to which they relate.

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Contractual income and performance related grants

This is only included in the financial statements once the related goods or services have been delivered.

Gifts in kind

Gifts in kind are accounted for at a reasonable estimate of their value to the association or the amount actually realised.

Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the association.

Gifts in kind for use by the association are included in the financial statements as incoming resources when receivable.

Donated services and facilities

These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the association is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the association of the services or facility received.

Volunteer help

The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

Investment income

This is included in the accounts when received.

Investment gains and losses

This includes any gain or loss resulting from revaluing investments to market value at the end of the year, and on the sale of investments.

Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the association to pay out resources.

Governance costs

Include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters.

Grants with performance conditions

Where the association gives a grant with conditions for its payment being a specific level of services or output to be provided, such grants are only recognised in the financial statements once the recipient of the grant has provided the specified service or output.

Grants payable without performance conditions

These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grants which remain in the control of the association.

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Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources, e.g. allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Tangible fixed assets for use by the association

There are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the association on receipt.

Investments quoted on a recognised stick exchange are valued at market value at the year end. Other investment assets are included at trustees’ best estimate of market value.

These are valued at the lower of cost or market value.

		2021	2020
		£	£
Gross takings from events
	Annual dinner	700	700
	Badminton tournament	-	2,063
	Other events	-	-
Total takings from events		700	2,763
Analysis of resources expended
		£	£
Payments for events
	Annual dinner	1,000	80
	Badminton tournament	-	1,112
	Other events	-	-
Total payments for events		1,000	1,192

The association has not analysed its support costs using activity categories.

Trustee expenses

No expenses were paid to trustees during the year.

Fees for examination of the accounts

No fees were paid for any external statutory scrutiny of accounts or other services provided by the independent examiner.

The association has no paid employees during the year.

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Total value of grants

The association has not made grants or donations which in aggregate form a material part of the charitable activities undertaken.

Grant making costs

The association does not identify and/or allocate support costs associated with grant making.

Grant made to institutions

The association has not made grants or donations to particular institutions that are material in the context of its grant making.

Cost or valuation

		Fixtures,
	Freehold	fittings &
	Property	equipment	Total
	£	£	£
(a) Association:
Balance brought forward	260,314	2,533	262,847
Additions	-	-	-
Disposals	-	-	-
Balance carried forward	260,314	2,533	262,847
(b) Chinese School:
Balance brought forward	-	7,527	7,527
Depreciation charge for year	-	-	-
Disposals	-	-	-
Balance carried forward	-	7,527	7,527

Accumulated depreciation and impairment provisions

		Fixtures,
	Freehold	fittings &
	Property	equipment	Total
	£	£	£
Basis Rate (a) Association:	Straight-line Straight-line 50 years 4 years
Balance brought forward	85,997	2,533	88,530
Depreciation charge for year	5,206	-	5,206
Disposals	-	-	-
Balance carried forward	91,203	2,533	93,736

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		Fixtures,
	Freehold	fittings &
	Property	equipment	Total
	£	£	£
Basis Rate (b) Chinese School:	Straight-line Straight-line 50 years 4 years
Balance brought forward	-	7,527	7,527
Depreciation charge for year	-	-	-
Disposals	-	-	-
Balance carried forward	-	7,527	7,527

Net book value (a) Association:
Brought forward	174,317	-	174,317
Carried forward	169,111	-	169,111
(b) Chinese School:
Brought forward	-	-	-
Carried forward	-	-	-
Total net book value carried forward	169,111	-	169,111

Revaluation

The fixed assets have not been re-valued during the year.

The association has no investment assets.

The association has no overall debtors or prepayments as at the balance sheet date. The association has an intra-balance of £nil debtors (2020: £nil) with its Chinese school; the balance cancels out on consolidation – also see Note 12 and Note 16.

The Chinese school has an intra-balance of £nil creditors (2020: £nil) with the association; the balance cancels out on consolidation – also see Note 11 and Note 16.

Analysis of creditors: amounts falling due within one year

Security over assets

There is no loan, overdraft or other creditor that holds a charge or other security over any assets of the association.

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The association holds an expendable endowment fund in respect of its freehold property at 9 Kenrick Place, London.

The association has no transactions with related parties (other than the trustee expenses explained in Note 6).

Property-related expenditures including the depreciation charge on tangible fixed assets, building insurance, repairs and the part-time caretaker cost have been allocated against the endowment funds. The association receives rental income from the property. The transfer between unrestricted and endowment funds at the balance sheet date comprises of the above expenditure movements during the year and is notional in relation to the non-cash depreciation charge on assets.

The management committee has agreed to cancel the intra-balances of debtors and creditors between the association and the school in avoid the build up of significant balance sheet items. The balances cancel out on consolidation and have no impact on the overall balance sheet or profit and loss account.

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I report on the financial statements of Kung Ho Association for the year ended 5 April 2021, which are set out on pages 5 to 16.

This report is made solely to the association’s trustees, as a body, in accordance with Section 43(3) of the Charities Act 1993 (the Act). My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the association and the association’s trustees as a body for my examination, for this report or for the opinion I have formed.

The association’s trustees are responsible for the preparation of the financial statements and accompanying notes. The trustees consider that the audit requirement of Section 43(2) of the Act does not apply and that an independent examination is needed. It is my responsibility to:

examine the financial statements in accordance with Section 43(3)(a) of the Act;
follow the procedures laid down in the General Directions given by the Charity Commission under Section 43(7)(b) of the Act; and
state whether particular matters have come to my attention.

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the association and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

Accruals and deferred income

In connection with my examination, no matter has come to my attention:

which gives me reasonable cause to believe that, in any material respect, the requirements to:
keep proper accounting records in accordance with Section 41 of the Act; and
o prepare financial statements which accord with the accounting records and to comply with the accounting requirements of the Act
have not been met; or
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Sunny Liu BA FCCA 18 December 2021 Liu’s Accountancy 4 Saxon Road Walton on Thames Surrey KT12 3HD

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