## **ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022** ## **SUKYO MAHIKARI** **CHARITY REGISTRATION No: 298721** Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS 1 ## **SUKYO MAHIKARI** ||**CONTENTS**| |---|---| |Page 3|Legal and Administrative Information| |Page 4|Independent Examiners Report to the Trustees| |Page 5 to 6|Trustees' Report| |Page 7|Statement of Financial Activities| |Page 8|Balance Sheet| |Pages 9 to 15|Notes to the Financial Statements| 2 ## **SUKYO MAHIKARI** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **CHARITY NUMBER** **CHARITY NUMBER** 298721 **DATE OF REGISTRATION** 7th February 1988 **START OF FINANCIAL YEAR** 1st April 2021 **END OF FINANCIAL YEAR** 31st March 2022 **TRUSTEES AS AT 31ST MARCH 2022** Simon Bailey Sidney Chang Stephen Choo Virginia Fox Lamia Tully Vui Hau Yuen The existing trustees appoint any new trustees following the provisions laid out in the organisation's governing instrument. **LEGAL STATUS** Unincorporated Charity **GOVERNING INSTRUMENT** Trust Deed Dated 7th February 1988 **OBJECTS** To advance religion in accordance with the teaching and practice of Sukyo Mahikari ## **REGISTERED ADDRESS** > **REGISTERED ADDRESS** London Mahikari Centre 20 Suffolk Road South Norwood London SE25 6EG **PRIMARY BANKERS** Barclays Bank plc Croydon Branch 1 Northend Croydon Surrey CR9 1SX **SOLICITORS** Peter Kingshill & Co 7 Liverpool Terrace Worthing West Sussex BN11 1TA **INDEPENDENT EXAMINERS** Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS 3 INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS Report to the trusteesl wnbers ol Sukyo Mthikari on the accc*Jrts frjr the y￿r 31st March 2022 set (xrt on pages 7 to R￿pectI￿ ras￿61￿￿1￿1#5 of trutyle￿ and •xamln•r Thc Charity￿ t￿￿te9S are respon$ible for the preparation of the rKwunts. The cha(rty's tn¢sttstrts con5￿Je[ that an audit 16 not raquired for this ywr Lwhyor section 144 of the Charbbos Act 2011 (tho ch81￿86 Act) and that an lnd6p8ndP￿t oxamlnation is neede(J. It Is my rosponsibility to.. èxamine the ar￿)unts wler *Xion 145 01 Ihe Chariw ACL to folknv the procoduits laKI in lh8 general Di￿l￿n9 gi¥en by th8 Charty Commission luncler secuon 14515llbl olthe charit￿ ACL and to Sta￿ wh¢th•r pw1lcu￿r matters have coma to my altw)tion B*￿• ol Ind•p•nd•nl •xamlnrf* 8t*t•m•nt My ex8rnination w88 cwrl•d eArt in Br£ordBrth th gener81 gN8n by the Charity Comml$8ion. An èxarninabon neludès a review of the accounliro racords k8Pt by the chwity and a cornparisgn ol the accounts pr868nl8LI with thos8 r*cords. tt pljo includes constderation ol any unusual items or disclosures in th8 accounts, and 588king explanations Irom th8 trugt88s con¢8rning any s￿h matlers. Th8 urKJen4ken do Thjl provide all the evhJerKe thal would bo required in an audit. and consequently no opin*)n is gwen as to wthether the Kc4yJnts w•sant o Irug #nd fair. ¥1￿ and th8 report Is Ilmhted io thTh8e matters Sel out in Ihe state￿￿nI bdry4V. Ind•p•nd•nt •xamln•e# stat•rn•Trt In coThnectlon Mth my èx8min8lion. no matter has comè to my attent which givos rne reasonaÈ48 ￿￿&t to bdlevt ¢ho1 in. any rnateriol reycL the rth)ulrernO￿. to keep aCC￿n￿ng racordy in a￿Ordar￿9 wlh ￿tioTr 130 01 thè Charit￿ Act.. and to prepare accoun￿ which accord ￿1h the a¢couniirKJ roc(*ds ar*J COm￿Y with the aC￿UntIng requ*8ment8 of th• Charllth Act havg not t4en rn￿.. or 2. to wh¢h, In rny opl￿n, attentkn 8hwbJ b8 dr•wm in order lo en•t4& a wopw uTh*st8thYir*J tsfthe aco)unts to b8 K. CollAku MAAT Castlo View Aco)untlng Lid Now Barn Mudb•rry Lan• 8o$ham Chichestèr West Sussgy P018 8TS D*e.' 17th Jaw 2023 ## **SUKYO MAHIKARI** ## **TRUSTEES' REPORT** ## **FOR THE YEAR ENDED 31ST MARCH 2022** The Trustees of Sukyo Mahikari have pleasure in submitting their Annual Report and Accounts for the year 1st April 2021 to 31st March 2022. ## **Objectives of Sukyo Mahikari** Sukyo Mahikari is a charity that exists for the advancement of world peace and the happiness of mankind, for the worship of God, Creator of the universe, and to guide humanity in the establishment of a universal civilisation based on a synthesis of religion and science. ## **Attendance & Membership** The activities of the charity have been undertaken to meet the objectives of the charity and for the benefit of its members and the wider community. With the gradual lifting of the Covid 19 restrictions, our official Centres in South London, Oxford and Reading remained open throughout the year. Risk Assessments were carried out and the appropriate changes were made to comply with Government guidelines on hygiene and safe social distancing. Visits to the Centre were by appointment only and all visitors were required to follow strict hygiene practices supervised by staff members. The Trustees were greatly encouraged by the increased attendance at the centres of both members and visitors. Despite the gradual lifting of the Covid 19 restrictions, the Trustees and staff members worked tirelessly to maintain regular communications with members through emails, newsletters, telephone calls and group online meetings to support members in their practice and to promote dialogue. In addition, members were encouraged to deepen their understanding of Sukyo Mahikari teachings and the practice of the art of True Light through these online meetings and spiritual guidance given by ministers. Monthly ceremonies at the South Norwood Centre were held throughout the year with restricted numbers and strict adherence to Government guidelines on hygiene and social distancing. A total of five primary courses were held (in May, July, September, November 2021 and January 2022) and resulted in sixteen new members. In addition, nine members attended the intermediate course for the first time, which was held in Luxembourg in August 2021, with a further nine members reattending the course. We continued to participate in Faith Action, the Places of Worship Taskforce sponsored by the Ministry of Housing, Communities and Local Government with the following remit: "The goal of the taskforce is to develop a plan to enable the phased and safe reopening of places of worship when the evidence shows it is the right time to do so". ln addition to their role on the taskforce, Faith Action have been asked to make use of their national network of faith-based and community organisations to gather additional input for government consideration on the challenges the priorities of different faith groups and strengthen the capacity of faith-based organisations to respond to the impact of the pandemic. Despite the economic hardship faced by everyone, the level of donations received from members has increased, which enabled the refurbishment project of the 30-year-old kitchen and other maintenance projects to be completed. The Trustees wish to extend their deep appreciation to all members and visitors for their support in another challenging year. ## **Association Internationale Sukyo Mahikari** Our organisation is a member of the Association Sukyo Mahikari Europe-Afrique A.S.B.L, and the trustees attended several online meetings and physical meetings of the association throughout the year. Members from the UK also participated in special interest group seminars held in the UK and other countries through online seminars for youth, scholars and businesspeople. In view of the challenging times due to Covid 19, the Trustees maintained their Membership Fees and financial donations to the Association Sukyo Mahikari Europe-Afrique A.S.B.L to support their activities in the region which is complementary to our objectives. 5 SUKYO MAHIKARI TRUSTEES. REPORT leontlnuedi FOft7HEYL4R ENDED 318T klARCH 2022 Tho 4WKatl• lo chvili•6 in 2011. ¢)• w>Y Aepytsl Ile9￿&￿￿ o aiv) F4if vlvw Lrf 4rffaws Ll charity *Kur*vJ c4 IM %WI CLVlknL* iocpernts. fir￿￿￿1 of ￿ thunty lo enat* •wre fina￿1 c￿rIY CW"des kt 2011. t￿ thrty IP£ctrJrts 8TrJ Re￿8) Régukn(rt •bJ cl thè Trust 088d TW ¥0 f¢spwIW fty irrAoiILqril I lthJ8nuw 2023 ## **SUKYO MAHIKARI** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2022** |**Notes**
Donations & Legacies
**3a**
Activities for Generating Funds
**3b**
Investment Income
**3c**
**TOTAL INCOME**
**EXPENDITURE ON:**
Charitable Activities
**4a**
Governance Costs
**4b**
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**
**INCOME AND ENDOWMENTS FROM:**|Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Fund
Fund
Fund
**2021/22**
**2020/21**
£
£
£
£
£
192,931
-
-
192,931
166,014
6,439
-
-
6,439
11,178
26
-
-
26
485
**199,396**
**-**
**-**
**199,396**
**177,677**
197,079
-
-
197,079
188,188
900
-
-
900
850
**197,979**
**-**
**-**
**197,979**
**189,038**
**1,417**
**-**
**-**
**1,417**
**(11,361)**
373,031
-
35,000
408,031
419,392
**374,448**
**-**
**35,000**
**409,448**
**408,031**| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 9 to 15 form part of these financial statements. 7 SUKYO MAHIKARI LANCE SHEET AS AT 31 MARCH 2022 T¢Jlal 31-Mar-22 31.Mar.21 Fwwj 91,720 SlrK C*h ai Bart •rhY H*J 2.1 289.754 52J72 2.1 324.754 .872 2222 258.356 PA.gRn Tal•1 Cuvf•nt A*MIA 64,0 29,227 NEfcLIIREI4T A88ENLLIWLrntsi 3IC 315,710 316,J11 374.448 3S.IXWJ 40P,418 400,031 Cr•dhor•.' Lry T•rni l￿dUS 10 IIET AMFryI IAWI ME#> 174 44• PwKhTDf Ih•Ch•rKy Ggwal Fund¥ t*8lJn8t80 Fun( 374.44 374W8 373,031 35.toj 35.(h)) Total Fundl 374A48 I lth January 2021 Prhtsd N￿rr￿.. rfK•I B*WJy ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022** ## **1. ACCOUNTING POLICIES** ## **Basis of Preparation & Assessment of Going Concern** ## **Basis of Preparation** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011. The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. ## **Assessment of Going Concern** Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. ## **Incoming Resources** ## **Recognition of Incoming Resources** These are included in the Statement of Financial Activities (SOFA) when: ▪ the charity 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 Expenditure** Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA. ## **Grants and Donations** Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources. ## **Donations and Membership Fees** Donations and membership fees are made to the Regional Centre in Luxembourg and the International HQ in Takayama, Japan. These Centres provide support for the activities in England and Wales through teachers and training material, and members in England and Wales pay regular visits to these other Centres. ## **Tax Reclaims on Donations and Gifts** Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate. ## **Contractual Income and Performance Related Grants** This is only included in the SOFA once the related goods or services has been delivered. ## **Gifts in Kind** Gifts in kind are accounted for at a reasonable estimate of their value to the charity 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 charity. Gifts in kind for use by the charity are included in the SOFA 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 charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received. ## **Volunteer Help** The value of any voluntary help received is not included in the accounts. ## **Investment Income** This is included in the accounts when receivable. 9 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **1. ACCOUNTING POLICIES (continued)** ## **Expenditure and Liabilities** ## **Liability Recognition** Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. ## **Governance Costs** Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters. ## **Grants with Performance Conditions** Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA 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 a grant which remain in control of the charity. ## **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, eg allocating property costs by floor areas, or per capital employed, staff costs by the time spent and other costs by their usage. ## **Unrestricted Funds** Unrestricted funds can be used for the general objectives of the charity. The movements of the unrestricted funds are given in the Statement of Financial Activities. ## **Restricted Funds** Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of a special appeal and fall into one of two sub-classes: restricted income funds or endowment funds. ## **Designated Funds** Designated Funds are funds set aside by the trustees from the unrestricted general funds which have been ring fenced for particular purposes or projects. ## **Stock** Stock consists of item purchased in order to generate profits to further the Charity's objects. Stock represents the unsold reading materials purchased from Japan and are valued at the lower of costs or net realisable value. ## **Fixed Assets** Fixed Assets are capitalised if they can be used for more than one year and cost at least £1,000. They are valued at cost or, if gifted, at the value to the charity on receipt. ## **Depreciation Expense** Depreciation is calculated at a rate to write off the cost of tangible fixed assets over their estimated useful lives. The rates applied per annum are as follows: 2% - Straight Line Basis Land & Buildings 2% - Straight Line Basis Property Refurbishment 10% - Straight Line Basis Furniture & Equipment 25% - Straight Line Basis 10 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **2. TANGIBLE FIXED ASSETS** |Cost
01-Apr-21
Additions
Cost at
31-Mar-22
Depreciation
01-Apr-21
Charge
Depreciation at
31-Mar-22
Net Book Value
31-Mar-22
Net Book Value
31-Mar-21|Land
Furniture &
**TOTAL**
& Buildings
Equipment
**2021/22**
£
£
£
206,862
49,426
248,885
-
12,679
12,679
206,862
62,105
261,564
123,942
40,626
155,179
5,884
4,837
10,721
129,826
45,463
165,900
**77,036**
**16,642**
**93,678**
82,920
8,800
91,720| |---|---| The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st March 2022 : None 31st March 2021 : None 11 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **3. INCOME AND ENDOWMENTS** |**Notes**
**a) Donations & Legacies**
Gifts & Donations
**b) Activities for Generating Funds**
Publication Sales
**c) Investment Income**
Bank Interest
**4. EXPENDITURE ON:**
**Notes**
**a) Charitable Activities**
Depreciation Expenses
Gifts & Donations
Insurance Costs
Printing, Postage & Stationery
Rent & Rates
Repairs & Maintenance
Staff Costs
**12**
Sundry Expenses
Telephone Costs
Travel & Subsistence
Utility Costs
**b) Governance Costs**
Independent Examiner's Fee
**9**|Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Fund
Fund
Fund
**2021/22**
**2020/21**
£
£
£
£
£
192,931
-
-
192,931
166,014
**192,931**
**-**
**-**
**192,931**
**166,014**
6,439
-
-
6,439
11,178
**6,439**
**-**
**-**
**6,439**
**11,178**
26
-
-
26
485
**26**
**-**
**-**
**26**
**485**
Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Fund
Fund
Fund
**2021/22**
**2020/21**
£
£
£
£
£
10,721
-
-
10,721
9,389
49,009
-
-
49,009
45,890
3,003
-
-
3,003
2,673
6,630
-
-
6,630
7,820
4,767
-
-
4,767
6,806
1,314
-
-
1,314
2,551
110,959
-
-
110,959
104,377
1,233
-
-
1,233
535
1,910
-
-
1,910
3,339
4,536
-
-
4,536
2,063
2,997
-
-
2,997
2,745
**197,079**
**-**
**-**
**197,079**
**188,188**
900
-
-
900
850
**900**
**-**
**-**
**900**
**850**| |---|---| 12 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **5. DESIGNATED FUNDS** The Charity held no Designated Funds during this or the previous financial year. ## **6. RESTRICTED FUNDS** |Endowment Fund
Endowment Fund|**Balance**
**Balance**
**01-Apr-21**
Income
Expenditure
Transfers
**31-Mar-22**
£
£
£
£
£
35,000
-
-
-
35,000
**35,000**
**-**
**-**
**-**
**35,000**
**Balance**
**Balance**
**01-Apr-20**
Income
Expenditure
Transfers
**31-Mar-21**
£
£
£
£
£
35,000
-
-
-
35,000
**35,000**
**-**
**-**
**-**
**35,000**| |---|---| Restricted Funds represents an initial endowment from our European HQ to establish Sukyo Mahikari. The Restricted Funds held are wholly represented by the Charity's cash reserves. 13 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **7. CASH AT BANK AND IN HAND** |Cash at Bank and in Hand|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-22**
**31-Mar-21**
£
£
£
**£**
**£**
289,754
-
35,000
324,754
258,356
**289,754**
**-**
**35,000**
**324,754**
**258,356**| |---|---| ## **8. DEBTORS AND PREPAYMENTS** |Gift Aid Tax Recoverable
Sundry Debtors|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-22**
**31-Mar-21**
£
£
£
**£**
**£**
47,992
-
-
47,992
79,290
4,880
-
-
4,880
5,670
**52,872**
**-**
**-**
**52,872**
**84,960**| |---|---| ## **9. CREDITORS ACCRUALS AND DEFERRED INCOME: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Independent Examiner's Fee
Sundry Creditors|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-22**
**31-Mar-21**
£
£
£
**£**
**£**
900
-
-
900
850
63,136
-
-
63,136
28,377
**64,036**
**-**
**-**
**64,036**
**29,227**| |---|---| ## **10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR** The Charity held no long term liabilities during this or the previous financial year. ## **11. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Tangible Fixed Assets
Net Current Assets
Long Term Liabilities
**TOTAL FUNDS**|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-22**
**31-Mar-21**
£
£
£
£
£
93,678
-
-
93,678
91,720
280,770
-
35,000
315,770
316,311
-
-
-
-
-
**374,448**
**-**
**35,000**
**409,448**
**408,031**| |---|---| 14 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2022** ## **12. STAFF COSTS AND NUMBERS** |Gross Wages and Salaries
Employer's National Insurance Costs
Pension Contributions
Employees who were engaged in each of the following activities:
Activities in furtherance of organisation's objects|**TOTAL**
**2021/22**
**£**
97,900
5,404
7,655
**110,959**
**TOTAL**
**2021/22**
**3**|**TOTAL**
**2020/21**
**£**
92,024
4,991
7,362
**104,377**
**TOTAL**
**2020/21**
**3**| |---|---|---| Activities in furtherance of organisation's objects The Charity operates a PAYE scheme to pay all members of employed staff and no employees received emoluments in excess of £60,000. (2020/21:None) ## **13. PAYMENTS TO TRUSTEES AND RELATED PARTY TRANSACTIONS** The only payments made to the Trustees consisted of reimbursements of expenses incurred in furthering the Charity's objects and no direct benefits were received by the Trustees during the financial year (2020/21:None). No other payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them (2020/21:None). ## **14. RISK ASSESSMENT** The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. ## **15. RESERVES POLICY** The Trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily. ## **16. PUBLIC BENEFIT** The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake. 15