## **ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023** ## **SUKYO MAHIKARI** **CHARITY REGISTRATION No: 298721** Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS ## **SUKYO MAHIKARI** ## **CONTENTS** |Page 3|Legal and Administrative Information| |---|---| |Page 4|Independent Examiners Report to the Trustees| |Page 5|Trustees' Report| |Page 6|Statement of Financial Activities| |Page 7|Balance Sheet| |Pages 8 to 14|Notes to the Financial Statements| 2 ## **SUKYO MAHIKARI** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **CHARITY NUMBER** 298721 **DATE OF REGISTRATION** 7th February 1988 **START OF FINANCIAL YEAR** 1st April 2022 **END OF FINANCIAL YEAR** 31st March 2023 **TRUSTEES AS AT 31ST MARCH 2023** 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** London Mahikari Centre 20 Suffolk Road South Norwood London SE25 6EG **PRIMARY BANKERS** Barclays Bank plc Croydon Branch 1 Northend Croydon Surrey CR9 1SX **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 trustees/ members of Sukyo Mahikari on the accounts for the year ended 31st March 2023 set out on pages 6 to 14. ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the Charities Act, - to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention ## **Basis of independent examiner’s statement** My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention 1. which gives me reasonable cause to believe that in, any material respect, the requirements: - to keep accounting records in accordance with section 130 of the Charities Act; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. K. Collaku MAAT Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS Date: 17th January 2024 4 SUKYO MAHIKARI TRUSTEES. REPORT FOR THE YEAR ENDED 31ST MARCH 2023 Th8 Tru8t8es of Sukyo Mahikari have rknsure in sutjmrtkng th8ir Annual Rerxjrt aTrl Ac(x)unts for th8 y8ar 1st April 2022 to 31st March 2023. Oblectlves of Sukyo Mahlkarl Sukyo Mahik8ri Is a ch8rily that 8XiSts th8 8dvarrfj￿nl d workl [￿ar￿ aTh1 the harrfMn888 of man￿n￿, for the worship of G￿. Creator of the univ8r8e, and to gukle humanity in the estatrA￿￿￿I of 8 univers81 civilisation b888d on a synthesis of rdvJion and science. Attendance & Memb8rshlp The activities of the ch8rily have teen uTh*ertaken to meet the (*wtiV8s of th8 charty and for the ￿nefit of its members and the wid&r community. With the liftirwJ oftravel restrictions rA)st Covkl. rnany aclivrtie5 resumed al our London Centre where 3 Primary Courses were hekj and 1 Prirnary Course was hekj at the Oxfor(J Centre resuttirwJ in 24 rnernÈers. Many mernters also travelled to Japan and LuxemtyJurg to attend c8rernoni8s aThY Seccffldary & A￿va￿ed ￿￿[ses. As8oclatlon Irbt8rn8tlonaleSukyo Mahlkarl Our organisalion 15 a mefflLEr of the As50cwlwJn Sukyo Mahikari EurowAfrique AS.B.L. and Ihe Iruslees attended several online rneetlThJ5 and phy5Kal meetings of the asxKkalK)n throughout ￿ year. MeTnL%rs from the UK a150 part￿Ip81ed in the Surnmer Garden Fete. Youth Camp and SFrf￿l interest grw stminars how LN)th onlinè and in Férson for youth. se1¥)￿r5 and bu5ine5speoJe. The Trustees rnalntai￿d their mem￿rshIP Fe8s fiThandal donat￿n5 to th8 A5XCk?t￿jTr Sukyo Mahlkarf Europ*4frfqu8 A.S.B.L to 8upwrt their activit￿5 in the region which 15 COrnF4efflentary lo Lknieclive& Trust8eB' Responslbllltles The tru51ee5 are re5Wns1b￿ for prepariNJ the Trusiees Rewrt and thtr find￿rdI stsiements in accordance wrth appllcabb law and th• United Kingdom Accounting siandards (United KI￿￿1 GeneraltyA￿pt6d kntyJnting Pracith GAAPI. The law ap￿1¢ab￿ lo charIt￿$ in ErrfJlarf Wales, the ChantssAct 2011, Ch8ritylA¢count$ 8rn1 Reports) Re9ul8tbns and tr* provlslons of the trust deecj ￿qUIreS the tru$tees to prepare fina￿￿81 $tslemenls for eW finaWI year whth glve a true falr view of the slate of aff8lr$ oflhe charty an¢J ofthe irKoming resources and appI￿￿n of ￿sOUrf￿, indudiThJ the Irwme aTrY ex￿n￿lture ofthe ¢h8rilyfor that periooj. In preparing those finan¢k81 ststernenls, t￿ trust*$ arg to.. select suitsbltr acctyJntiNJ and thon appty Ihern ecffjsi4tefit￿, observe the methods a￿1 principks in ihe Charity SORP,. make ludgemenls and esllmales that a￿ ￿8$on0￿￿e arKY prudent prepa￿ the finarKo1 $tslements on the gyrvJ coThxm ba$1$ unless It Is Inapprorxkqte lo presurne that the charty WIU continue lo operate. The Irus¢ee$ are resp￿$1￿￿ for keeprg propera¢￿nI1ry recwds wh'ch ￿￿k)se with accuracy al any time the hnanckl tM)Sitlon of the charity and to enable tl*m to erwre that the finarrol st8teft￿nts comtAy with the Charities Act 2011. the Charity IAc¢ount$ and Retortsl Regubth)ns and Ihe tm*K)ns (rfthe Trust Deed. They a￿ also wpon$ibè for safeguardirp the assets ofthe charty aThJ tr￿'r￿ reascvwfje steps for the arKY detectKJn offraud a other ir￿g￿larItIe$. 5th December 2023 Approved by the Trustee5 Qn ...................................................................................................................................................... Sign8d on their by Truste8 . Printed Name.. sterthn Ch ## **SUKYO MAHIKARI** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31ST MARCH 2023** |**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
**2022/23**
**2021/22**
£
£
£
£
£
162,749
-
-
162,749
192,931
6,908
-
-
6,908
6,439
357
-
-
357
26
**170,014**
**-**
**-**
**170,014**
**199,396**
177,880
-
-
177,880
197,079
950
-
-
950
900
**178,830**
**-**
**-**
**178,830**
**197,979**
**(8,816)**
**-**
**-**
**(8,816)**
**1,417**
374,448
-
35,000
409,448
408,031
**365,632**
**-**
**35,000**
**400,632**
**409,448**| |---|---| 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 8 to 14 form part of these financial statements. 6 SUKYO MAHIKARI BALANCE SHEET AS AT 31ST MARCH 2023 Totsl 31-Mar-23 Totsl 31-Mar-22 FUNJ FUNJ FuThJ Note5 Flx•d A6sèti Tangiwe Assets 2.151 82.151 93.678 Curr•nt Amots Stttk Cash at Bank and in Debiors & Prepayments 17 2.244 274.732 51.746 2.244 309.732 51.746 2.180 324.754 52.872 Total Curr•nt AIMt• 320.722 35.ONJ 363.722 379 806 Cr•ditor$'. Amwnts fallirvJ within one year 45.241 45.241 64,036 NET CURReNT ASSETSI¢UABIUTIESI 283.481 318.481 315.770 TOTAL ASSETS less current Iiablths 365,632 3S.000 400.632 409.448 Cmdltori.. L￿g Tem) Llab"lit 10 NET ASSET$IILIABILITIE31 365,632 35.000 400.632 409,448 Fundi oltho GenerE4 Funds Designated FurK1s Reslricled Funds 365.632 374,448 35.0 35,00) Totsi Fund 365.632 35,000 400.632 409.448 5th December 2023 Approved ty the Trusieescl)................................................................................................................................................................ &'gned w trEir bthllby Trustee.................................................................... Prinm Nam8'. &"r(￿ Baik9y ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31ST MARCH 2023** ## **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 note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015) (Second Edition, effective 1st January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (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. 8 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **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: Land & Buildings Property Refurbishment Furniture & Equipment 2% - Straight Line Basis 10% - Straight Line Basis 25% - Straight Line Basis 9 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **2. TANGIBLE FIXED ASSETS** |Cost
01-Apr-22
Additions
Cost at
31-Mar-23
Depreciation
01-Apr-22
Charge
Depreciation at
31-Mar-23
Net Book Value
31-Mar-23
Net Book Value
31-Mar-22|Land
Furniture &
**TOTAL**
& Buildings
Equipment
**2022/23**
£
£
£
206,862
62,105
248,885
-
-
-
206,862
62,105
248,885
129,826
45,463
155,179
5,884
5,643
11,527
135,710
51,106
166,706
**71,152**
**10,999**
**82,151**
77,036
16,642
93,678| |---|---| The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st March 2023 : None 31st March 2022 : None 10 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **3. INCOME AND ENDOWMENTS** |**Notes**
**a) Donations & Legacies**
Gifts & Donations
Grants Received
**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
**2022/23**
**2021/22**
£
£
£
£
£
162,749
-
-
162,749
192,931
-
-
-
-
-
**162,749**
**-**
**-**
**162,749**
**192,931**
6,908
-
-
6,908
6,439
**6,908**
**-**
**-**
**6,908**
**6,439**
357
-
-
357
26
**357**
**-**
**-**
**357**
**26**
Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Fund
Fund
Fund
**2022/23**
**2021/22**
£
£
£
£
£
11,527
-
-
11,527
10,721
27,840
-
-
27,840
49,009
2,358
-
-
2,358
3,003
5,176
-
-
5,176
6,630
2,765
-
-
2,765
4,767
464
-
-
464
1,314
107,093
-
-
107,093
110,959
2,398
-
-
2,398
1,233
2,086
-
-
2,086
1,910
13,562
-
-
13,562
4,536
2,611
-
-
2,611
2,997
**177,880**
**-**
**-**
**177,880**
**197,079**
950
-
-
950
900
**950**
**-**
**-**
**950**
**900**| |---|---| 11 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **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-22**
Income
Expenditure
Transfers
**31-Mar-23**
£
£
£
£
£
35,000
-
-
-
35,000
**35,000**
**-**
**-**
**-**
**35,000**
**Balance**
**Balance**
**01-Apr-21**
Income
Expenditure
Transfers
**31-Mar-22**
£
£
£
£
£
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. 12 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **7. CASH AT BANK AND IN HAND** |Cash at Bank and in Hand|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-23**
**31-Mar-22**
£
£
£
**£**
**£**
274,732
-
35,000
309,732
324,754
**274,732**
**-**
**35,000**
**309,732**
**324,754**| |---|---| ## **8. DEBTORS AND PREPAYMENTS** |Gift Aid Tax Recoverable
Sundry Debtors|Unrestricted
Designated
Restricted
**Total**
**Total**
Fund
Fund
Fund
**31-Mar-23**
**31-Mar-22**
£
£
£
**£**
**£**
49,600
-
-
49,600
47,992
2,146
-
-
2,146
4,880
**51,746**
**-**
**-**
**51,746**
**52,872**| |---|---| ## **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-23**
**31-Mar-22**
£
£
£
**£**
**£**
950
-
-
950
900
44,291
-
-
44,291
63,136
**45,241**
**-**
**-**
**45,241**
**64,036**| |---|---| ## **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-23**
**31-Mar-22**
£
£
£
£
£
82,151
-
-
82,151
93,678
283,481
-
35,000
318,481
315,770
-
-
-
-
-
**365,632**
**-**
**35,000**
**400,632**
**409,448**| |---|---| 13 ## **SUKYO MAHIKARI** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST MARCH 2023** ## **12. STAFF COSTS AND NUMBERS** |**TOTAL**
**2022/23**
**£**
Gross Wages and Salaries
95,161
Employer's National Insurance Costs
4,102
Pension Contributions
7,830
**107,093**
Employees who were engaged in each of the following activities:
**TOTAL**
**2022/23**
Activities in furtherance of organisation's objects
3|**TOTAL**
**2021/22**
**£**
97,900
5,404
7,655
**110,959**
**TOTAL**
**2021/22**
3| |---|---| The Charity operates a PAYE scheme to pay all members of employed staff and no employees received emoluments in excess of £60,000. (2021/22: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 (2021/22: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 (2021/22: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. ## **17. STOCK** Stock consists of items acquired by the Charity to generate income in furtherance of the Charity's objects. Stock is valued at the lower of cost or net realisable value. 14