## **Kung Ho Association** 9 Kenrick Place, London W1H 3FF ## **Annual Report and Financial Statements** **Registered Charity Number: 291613** Available at: www.charity-commission.gov.uk ## **Kung Ho Association** ## **Annual Report of the Management Committee for the Year Ended 5 April 2022** The management committee presents its annual report and financial statements for the year ended 5 April 2022. ## **Reference and administration information** 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 ## **Covid-19 Pandemic and its Impact** The pandemic continued to have 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 considered the offering of online teaching and learning in 2021 but results were not satisfactory and the committee decided to discontinue the online provisions for the Chinese School in 2022. ## **Structure, governance and management** 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. - 2 - ## **Principal objectives and activities** 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 2021. 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: 1. To communicate with prospective parents and students, and to re-start the proactive recruitment of students for the Sunday Chinese schooling from September 2022. 2. 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, subject to satisfactory student recruitment for the new academic year. 3. To develop potential income streams (including rental income) to support the ongoing School activities. ## **Volunteers and members** ## Volunteers Prior to the temporary suspension of the School activities, the Kung Ho Association has twenty volunteer teachers and 15 management committee members. ## 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. ## **Achievements and performance** ## Background 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. In conclusion, it has been another 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. - 3 - ## **Financial review** The income resources increased by 3% to £37,550 (2021: £36,330) while resources expended have also increased by 2% to £13,803 (2021: £13,503), creating a net surplus to the funds of £23,747 (2021: net surplus of £22,827). This represents an 8% increase of the association’s brought forward funds (2021: 9% increase). Owing to restrictions imposed by the Covid-19 measures, no fundraising events took place during the year. The association’s cash balance represented 48% of total net assets during the year (2021: 42%). - 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 £141,045 (2021: £118,611). ## `o` 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. ## **Accounting and reporting responsibilities** 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. - 4 - 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. ## **Trustees’ declaration** The report was approved by the trustees on 18 December 2022 and signed on their behalf by: ## **Chairperson** ## **Treasurer** - 5 - Kung Ho Assoclatlon Overall Statement of Financial Acti¥itRg For the Year Ended 5 Aprfl 2022 Unrestricted Endowment funds funds 2022 2021 Nrtes I￿oMe resources from generatlro fuThts - ALti*ities for generating fu Gross ta￿r￿ frIMn events FKx)I strKP sales Donatlons recelved SurKlry It￿Me - Investment IrKome: tJ4nk Interest Rental Ir￿Me IrKomiryJ res0w￿5 from ch￿r￿able resources . Sth5Ctlpti￿ & fee5 To￿tionS r￿e1ved Jtmlry i￿ome - Investment irK¢Jne'. ￿nk irterest Rental irKOn I￿Orr￿ir￿ resowces from d*ritable reS0￿ceS - Subscrlptlon & f￿5 Total ljKomlrvJ resowces 5(KJ 37,050 37,050 2Z430 37.550 37,550 22,430 Resources expended Cost of 9eneratiThJ fiMK15 Fu￿1raiSIr￿j costs paY￿￿nts for everts & Ik)natiorL' TÈlepFK)nè, advertis1￿ & protrrtlons JThlry expenses - InvestrrEnt costs.. bank charges Chaiitable artiV7ties IsctrKKA Iyeration5) t¥emises extErBe5 Re￿IrS & renewals TravellirvJ intirvJ, tx)Stage & ststionery Ot￿r5 (Ir￿1￿1r0 rouThglrw) InsWa￿e Detxeciatlon (k)verna[￿e costs Total resources exp￿￿ed Itx) 312 100 312 91 405 452 405 452 421 45 45 831 5,206 831 5,206 1,357 5,206 511 7,405 Net movement in fund Total furth br(xJoht forward Total funds carrled ff0Th￿rd 37,039 101,507 138,546 {6,894) 30,145 13,822 163,574 233,273 219,451 156,680 263,418 211,273 16 Approved by the trustees on 18 December 2022 and signed on their behalf by: **Chairman** ## **Treasurer** - 8 - Kung Ho Association Balance Sheet . The Associatbon For the Year Ended 5 April 2022 Unrestricted Endowm•nt funds funds 2022 2021 - Tarolble fixed assets - Investments Total fixd assets 163,905 163,905 169,111 io 163,905 I63,￿5 169,111 Current assets - Debtors - G75h at bank arKI in hsrKI Total current assets li 4,115 123,896 128,011 4,115 123,896 128,011 95,ffi5 95,LifS Credltors: - anKxJnts falliTU due wtthin one year Total assets less currert liabilrties 12 1,5(X) 126,511 1,500 163,905 2￿,416 263,676 Creditors: - atrKyJnts falliro after Or￿ Net assets 126,511 163,905 2￿,416 262,676 Funds of the charity Fut¥J ￿larKe LToLuht f(￿ard IwKomirvJ resowces Outgoing re50wces TrarKsfers GalrKs losses Fund balance carFled forward 93,565 35,145 (511) (1,688) 169,111 262,676 251,259 35,145 20,025 (6,894) (7,405) (8,608) 1,688 15 126,511 163,905 21)0,416 262,676 Kung Ho Association Balance Sheet- Kung Ho Chinese School For the Year Ended 5 April 2022 Unrestricted Endowment funds funds 2022 2021 - Tangible assets - Investments Total flxed assets io Debtors - Crysh at bank aFKI in139￿1 Total currert assets li 25,168 25,168 25,1&8 25,1&8 25.046 25,046 Creditors: - anK)unts falliw due within one year Total assets less current Ilatrllltles 12 6,519 18,649 6,519 18,649 25,046 cr￿ltOrs. - ènK)unts fallirvJ after one year Net assets 18,649 18,649 25,046 Funds of the charity FurKJ balan￿ bri)ught fonvard IrKomir¥J resource5 ortwiru 1ÈsourcÈs Transfers Gain5 l(ksses Fund balance carrled fonvard 25,046 25,046 16,041 [3,069) 13,328) {3,328) (6,397) (4,894) 3,328 15 18,649 18,649 35,016 io- ## **Note 1 Basis of preparation** 1. 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. 2. Change in basis of accounting There has been no change to the accounting policies (valuation rules and methods of accounting) since last year. 3. Changes to previous accounts No changes have been made to accounts for previous years. ## **Note 2 Accounting policies** ## **Incoming resources** 1. 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. 2. 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. 3. Grants and donations Grants and donations are only included in the financial statements when the association has unconditional entitlement to the resources. 4. 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. 5. 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. - 11 - ## 6. Contractual income and performance related grants This is only included in the financial statements once the related goods or services have been delivered. ## 7. 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. ## 8. 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. ## 9. Volunteer help The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. 10. Investment income This is included in the accounts when received. 11. 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. ## **Expenditure and liabilities** 12. Liability recognition Liabilities are recognised as soon as there is a legal or constructive obligation committing the association to pay out resources. ## 13. 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. 14. 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. 15. 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. - 12 - ## 16. Support costs 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. ## **Assets** 17. 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. ## 18. Investments 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. 19. Stocks and work in progress These are valued at the lower of cost or market value. ## **Note 3 Analysis of incoming resources** ## **Note 4 Analysis of resources expended** ## **Note 5 Support costs** The association has not analysed its support costs using activity categories. ## **Note 6 Details of certain items of expenditure** ## 1. Trustee expenses No expenses were paid to trustees during the year. 2. 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. ## **Note 7 Paid employees** The association has no paid employees during the year. - 13 - ## **Note 8 Grant making** 1. Total value of grants The association has not made grants or donations which in aggregate form a material part of the charitable activities undertaken. 2. Grant making costs The association does not identify and/or allocate support costs associated with grant making. 3. 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. ## **Note 9 Tangible fixed assets** ## 1. 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| 2. Accumulated depreciation and impairment provisions ||||||||Fixtures,||| |---|---|---|---|---|---|---|---|---|---| ||||||Freehold||fittings &||| ||||||Property||equipment||Total| ||||||£||£||£| |||||Basis|Straight-line||Straight-line||| |||||Rate|50 years||4 years||| |(a) Association:|||||||||| - 14 - ||||||Fixtures,|| |---|---|---|---|---|---|---| |||||Freehold|fittings &|| |||||Property|equipment|Total| |||||£|£|£| |(b) Chinese School:
Basis
Rate||||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| |3.|Net book value
(a) Association:
Chinese School:|Net book value
(a) Association:
Chinese School:|Net book value
(a) Association:
Chinese School:|||| |---|---|---|---|---|---|---| ||Brought forward|||-|-|-| ||Carried forward|||-|-|-| ||Total net book value carried forward|||169,111|-|169,111| (b) 4. Revaluation The fixed assets have not been re-valued during the year. ## **Note 10 Investment assets** The association has no investment assets. ## **Note 11 Debtors and prepayments** The association has no overall debtors or prepayments as at the balance sheet date. The association has an intra-balance of £4,115 (2021: £nil) with its Chinese school; the balance cancels out on consolidation – also see Note 12 and Note 16. ## **Note 12 Creditors and accruals** The Chinese school has an intra-balance of £4,115 creditors (2021: £nil) with the association; the balance cancels out on consolidation – also see Note 11 and Note 16. 1. Analysis of creditors: amounts falling due within one year 2. Security over assets There is no loan, overdraft or other creditor that holds a charge or other security over any assets of the association. - 15 - ## **Note 13 Endowment and restricted income funds** The association holds an expendable endowment fund in respect of its freehold property at 9 Kenrick Place, London. ## **Note 14 Transactions with related parties** The association has no transactions with related parties (other than the trustee expenses explained in Note 6). ## **Note 15 Transfers between funds** 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. ## **Note 16 Intra-balances between the Association and the School** 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. - 16 - ## **Kung Ho Association** ## **Independent Examiner’s Report to the Trustees of Kung Ho Association** I report on the financial statements of Kung Ho Association for the year ended 5 April 2022, 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. ## **Respective responsibilities of trustees and examiner** 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. ## **Basis of independent examiner’s report** 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. ## **Independent examiner’s statement** 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 2022 Liu’s Accountancy 4 Saxon Road Walton on Thames Surrey KT12 3HD - 17 -