SHINNYO.EN, U.K. (A COMPANY LIMITED B Y GUARANTEE) ACCOUNTS FOR THE YEAR ENDED 31 ST DECEMBER 2020 COMPANY NO. 2282524 REGISTERED CHARITY NO.. 299965 S2650-20
SHIyO-E, U.IL TRUSTEES. REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020 The trustees, who are also direclors of the charitv for thc purFrt)ses of the Companies Aci. submit iheir annual report and the audiled financial 5tatcments for the year ended 31 # December 2020. The trustees have adopted the provisions of the Statement of Recommended Prnctice (SORPI "Accounting and Reporling by Charities" in preparing the annual report and financial statemcnts of the charity. The financial statements have been prepared in ac£ordance with the ac¢ounting wlicies set out in notes to the accounts and comply with the charity's goveming document, the Charilies Act 2011 and Accounting and Reporting by Charities.. Statement of Rccommendcd Practice applicable to charilies preparing their account% in accordance with the Financial ReFK>rting Siandard applicable in ihe UK and Republic of Ireland published i October 2019. -l-he ¢harity is a chariiable company limited by guarant¢e. It is governed by a memorandum and articles or association. Shinnyo-en Shinnyo-en was founded in Japan in 1936 by Reverend Shinjo lio and is a Buddhist Order devoted to the practice of the teachings of the Buddha as handed down in the Grear Niana Sutr4 which is regarded as the ultimate distillation of the thinking of ihc Buddha. Through its founder. the Order can trace its spiritual lineage to the beginnings of the Buddhist leaching. With the exception of a small number of Bishops and minisle who provide leadership and spiritual ouidancc, the membership of Shinnyo-en consists of lay men and "Omen leading norn)al workday lives ,hO endeavour to follow and apply the teachings of the Buddha in the contexi of the present day lsving Cnvironment. With its emphasis on personal discipline and spirtlual development, and ork service (o the community at large, the Shinnyo Icaching strikes a re%ponsive chord among those seeking fuifilment in mind and spirit. As part of their training and spiritual development. Shinnyo prnclilioners undertake the tl)ree practices of Gohoshi, or voluntary service; Otasuke. or missionary endeavour. and Kangi, or ihe making of offerings. Objects and Aetivilie5 Shinnyo-en, U.K. was esiabli_qhed in 1988 10 further the propagalion of the Shinnvo-en doctrine in the Ilnited Kingdom. To help accomplish its mission, the Company works closely with lh¢ founding Shinnyo-en organ1sation in Japan and with other overseas Shinnyo-en eniilies. For the purposes of the Charities Act 2011, the Directors of the Company are regarded as irustees. The PTin¢ipal objecl of the Cotnpany is the advan¢¢tnent and pmmotion of religion by the extension of the spirit and the knoivledge of ihe teachings of the Buddha through the precepis and teachings of thc Shinnyo-en doctrine. Each year our trustees review our objecrives and activities io en5urc the>. continue to reflcct our aims. In carrying out ihis review the irustees have considered the Charity Commission s generdl guidance on public nefIt and in particular its supplemenrary public guidance on the advancemeni of religion for ihe public benefit. Shinnyo-en activities within the United Kingdom are SUFervised by the Branch Manager, with guidance from the founding Shinnyo-en organisaiion in Japan. These activities comprise a fvll liturgy of 5erviccs, meetings. progrnIne5 of trninLy and instruclion. as well as spiritual guidatkce for the practitioners arld the prop3gatIon of the Shinnyo leaching within the Uniicd Kingdom. There is also basic medilation training at ihe temple for the general publi¢ as well as monihly Evening services at th¢ Royal College of Phy51cian5 in London. Shinnyo-en docs not have forfflal policies designed to promote the Shinftyo leaching. Given that, nornially, new entfdnt5 join by way of introduction. it is considered that the impression created by fhe individual Shinnyo practitioner through exarnple and personal behaviour is the mosi potent ittfluence on thosc in search of spiritual development. In furtherance of their ¢ommilJnent to Gohoshi, or voluntary service. prnclilioners assist with the da)T_to-day activities of Shinnyo-en. U.K. and fvith the upkeep of Th¢ Manor House, which is the centre for Shinnyo-en aciivities in the United Kirkgdom.
.SHIMYO-Ef, Ll K. TRUSTEES, REPORT FOR THE YF.AR ENDED 31ST DECEMBER 2020 Continued Fundraising Activitie$ The Foundation d(5 not carr! out anv fundraising aelivilies. The eompani does not solicit funds oiher than on a voluntary basis OT assistance from the general public. either direcily or indircctly, nor does li engage in any form of commercial activity. Achievemellts and Perforniance Thc ultimate objective of all Shinnyo-cn activities is the spiritual development of the individual practitioners, to help in his or her quesi for enliDhienmcnt, and all activllies in the Uniied Kingdom during the year under review have been dirccted towards this end. These activities were supervised by the Branch Manager and co-ordinalcd by a Council drawn from among thc more exrienCed followers and together with representstions of the Youth Association (age range 16 10 36 ycars). Due to the outbreak of ihe Covid-19 coronavirus. it was decided that all aciivilies at Shinnyo-en. UK were cancelled fTOrn 4 ' March 2020 athd the temple remained closed until l July 2020 after ihe lockdom'n measures was announced by the IJK government on 23, March 2020. During this first lockdown. all templ¢ office slalT were on dut)., however, only a minimum number of office staff iVOTked at the iemplc lo conduct services and to carry out dailj administrdtions, otherwise they wett working ai home remolely. On I Julv 2020 the iemple gradually resumed activitics such as SCS5hin meditation training-. services with followers. participaiion at the templ¢ for private prayer in line with govemment guidelines. Due to the situation with the Coronavirus, Shillnyo-e UK was unfortunately unable to hold the meditation and lecture programme for locals iti 2020. However. despiie thc pandemic Shinny(Fen UK decided io hold the annual Shinnyo Laniem Floating by openÉng only the garden at the templc that aimed to Creat¢ feelings ofconneLlcdness with loved ones who are physicallv far from us and aiming to kindle an optimistic light of liope in our5elYes and others. The Sliinnyo Laniern Floating 2020 was held froln September 19th to the 26th to spread participants number over 8 days. Due to the length of the event and hiring -"online streaming-. facility. the Lantern Floating budget received by Shinnyo-en Japan was not sufficieni. Shinnv(Fen Japan agreed io reditycl unused funds from (he interfaith activiry io the Shinnyo Lantem Floating 20?0. The event was highly successful and attracted 1.100 attcndees at th¢ temple at]d also over 3,000 online viewers, including access lo the recorded events. Bccause of the closure and aclivities with restriciions at the iemple. it was expected th21 the donations from rollowers in 2020 would be significantly lower than the donations in 2019. However. the in¢ome of 2020 from followers was very stabl¢ and also the expenses Siayed lo.. There have been various Coronavin]s (Covid-19) 5UPFKTrrt schemes for businesses available by the government. I lowever. Shinnvo-en UK had adequate support from Shinny(Fen Japan lo ¢ontinue activities in 2020 and decided to not take up any of the schemes available. Th¢ Trustees wish to pla¢e on record their most sincere appreciation for the guidance and support received throughout the period under review from the Head ofthe Order. Shinnyo KeISh and for her never failing interest in the work of Shinnyo*n, U.K. Financial Review Shinnytsen, U.K. depends on donalions and gifts from Shinnyo followers in the United Kingdom lo cover its day- to-day outgoings. The founding Shinnv(Fen organisaiion in Japan meets the opcrational costs of the temple and if or when heavy expenditure is anticipated, on the repair and maintenanc¢ of the company property- The Company benefits ¢ongiderdblv from volutitary serwice pmvided by follom'ers. in particular with resp¢ct lo the upkeep of the Manor I louse buildings arEd ground5. Shinnyo-cn UK has achieved a surplus of Income over Expenditure for the year of £64.319 eompared with £218.3?6 for the previoiis year. but the charity received a I1.Stl decrease in its Subvcntion income from Shinnyo- en Japan. Donations for the year ended 31. December 20?0 saw a 41Q/o decrcase of £1 I I.U2¥ COTnpared to previous year which included a genen)us donatÈon of £1,000 from one family_ Rental income from the 5hoTI-
SHINNY(kEf*. U.K. TRUSTEES, REPORT FOR THE YEAR EIJl)ED 31ST DECEMBER 2020 Coutinued -term letting of the l.odge House were for a full year with a secured neiv t¢nancy agree¢nI in place towards the year end. Rental income is disclosed net of exndItUre in ihe year. Total Expenditure in the year decreased slightlv bv £7.162 to £454.397. This TS highlighted in Note 3. where there was an increase in restricted expenditure of £2?.672 but a reduciion in unrestricted expendilure of £29,834. As at the balance sheet date. the net current assets of £614,041 are considered sufficient to enable the Charity to continuc prior to receiving further subvention intoJne. Resen'es Policy Shinns'fren UK Reservcs Policy is to Enaintsin sufficient level of res¢rves to enable nornial day to day outgoings during the financial year. The irustees consider that the ideal level of reseryes as ai 31 st December 2020 would b¢ £394,309 which is the expecled annual OKttations of Temple cosrs as 5tat¢d in Noie 3 to ihe ac¢ounts. Shinnyo-en UK reFK)rted a Generdl Reserve fuftds of £766261 as stated in Note 10 to the accounts. The cliarity has r¢scrves of £743.056 after deducling tangible fixed assds held for charity use. Hencc. with iotal unrestricted expenditure expected to be maintained at a similar level, this is considered sufficient to meet budgeted costs and the nortnal day to day outgoings during the current fanCIal year commencing Isi January 2021. Plans for Future Periods Trustees have been in discussion on a regular basis with the temple staff to monitor and ensure we remain in compliance with ongoing gov¢mmenr guidance and are discussing tnonthly to updaie potential plans to reopen and Tesume iemple activities in accordance ii-ith the devclopments in the government guidelines and restrictions relating to ihe Covid-19 Coronavinjs. In respond to the governmeni onnouncemeni on 12th July 2021, Shinnyoknen UK made a decision lo reopen and resume selected activities from l M August 2021 onwards. Shinnyo-en, UK is delighted to be planning for the year running of ihe Lantern Floating in Septeinber 2021, nd it is anticipated that over 1.000 peoplc m.ill be ai ihe temple during 4-days period. This is dependent on any further or additional govemment safeguarding reslriciions being imposed as a resuli of the present coronavirus situation. The founding organisation, Shinnyo-en Japan, will be funding this event wa}, of subvention income totalling £40,000 which is similar lo the income received in April 2020. In order to make the Shinnyo En Japanese publications more widclv available to the public, Ihe International Department of Shinnyo En Japan proposed thal Shinnyo En UK enlisi the translation services of Mr Y. Shinokubo to undertake the iask of translating 4 volumes of the Shinnyo-en Japanegc books to English. During 2020, Mr Shinokubo h&s already undcrtaken 5ev¢ral translation jobs on an dd-hoc basis io g(M)d effect. Coing Concern The Trustees believe that preparing the accounts on the going concern basi5 15 appropriate due to the coniinu¢d rjnancial support of the fotsnding organisaiion, Shinnyo-en Japan. The TTUStee5 understand that Shinnyo-¢n Japan will continue to support the chatitable company by providing Subvention income to enable Shinnyo-en. UK to continue its charitable operatiotis &8 a going concern for the fote5eeable future. Structure, GovernaDce and Management Shinnyo-en, UK is governed by a memorandum and articles of association. Directors are appointed by ihe Board, in cotksultation 1th the founding Shinnl'o-en organisation in Japan. majoritv of the members of the Board must al all iiTnes be resident in the United Kingdoin. Resident Ministers were prcviously dppointed as directors and although changed on a regular b&is. they were familiar with the work of Ihe organisation, and encouiaged io aware of their responsibililies of governance.
SIIIYNYO-EN, U. TRUSTEES, REPORT FOR THE YFAR ENDED 31ST DECEMBER 2020 Continued Other directOTS are nomially selected from ihe tnore ex1]enced follo1¥c. who agaitk have a working knowledge of the organi5ation, but who may require Inore induction iviih the role they are undertaking from a regulatory and legal vieww)int. The organisalion was tnanaged on a day to day basis thtoughout the by the Branch Manager. Mr Shohei Nishino who is a150 the Company Secretary. The siaff consisrs of four full-tirne employees and one part-time staff. who rerted to the Board of Dircciors and ih¢ founding Shinnyo-en oaniSatiOn in Japan. The Board of Directors have assessed the major risks to which the organisation is exposed. in particulaT Ihose related to the operations and finances of the organisation and are satisfled that systems are in place to mitigate their exposure to risk. Procedures are in place to ensure compliance with health and safety of staff and followers and disabled access to the Manor House. Public Bentfit Trust Shinnyo-en, UK meets the definition of a public benefit entity under FRS 102. The TTUStees consider that the aims and objectives of the charity are able to deliver a public benefit and have given due regard io Public Benefit Guidance published by the Charity ComTnission. Shinnyo-en Youth Asso¢ialion for U.IL The purpose of the Youth Ass(Kiation is to= l ) Nurture the faith of ihe Younger generalion who are alrcady practicing ihe teaching. 2) Create a plaiforni to find answers lo their chall¢nges. 3) Creat¢ att En irontnent to more welcoming for new¢oTnerslbeginners. 4) Sirengthening relationships with youth from oiher faiths. Th¢ activities organi5ed by the Shinnyo-en, U.K. youth will be connected to the aFx)ve main objectives. Legal and Administrative InformatAO FULL NAME: SHtNNYO-EN, U.K. GOVERNING DOCUMENT: Memorandum and Articlcs of Ass(Kiation (as am¢nded to 24th September 1994) MODE OF INCORPORA"FION: Private Limited Company (Limiled bTr" Guardntee) Incorporated 1st AuL¥llSt 1988 R¢gistered Number.- 2282524 Entered on the Central Register of Charities maintained b), Ihe Charity. Commissioners 31 st Auoust 1988 Rcgistered Number- 299965 DIREC'foRS/TRUSTEES: R¢v. Koji Sugiyama (Chairn12n) Mr. Tsuyoshi Shinokubo- Resigned 18th August 2020 Mr. Kcnncih White Mr Rodney D. Ballard . Vatroslav P. Popovic Mr. Charles Ross Daj - Appointed l 8, August 2020
SHINNYlkEN. LI K. TRUSTEES, REPORT FOR THE YEAR F.NDED 31ST DECEMBER 2020 Continued Legal and Admittistrative Information (continucd) SECRETARY.. Mr Shohci Nishino BRANCH MANAGER.. Mr Shohei Nishino REGISTERED OFFICE.. 'I'he Manor House Woodaock LAtte North tA>ng Ditton Surrey KT6 5HL AUDITORS.. Couch Bright King & Co Chartcred Accountaiits First Floor, Shropshire House 179 Tottenham Court Road London WIT 7NZ SOLICITORS: Clifford Chance LLP 10 Up[r Bank st¢t London E14 5JJ Stone King LLP 28 Ely Place tAyndon ECI N 6TD BANKERS: Barclays Bank plc Kingston Business Centr¢ Surbiton Branch 81-83 Victoria Road Surbiion Surrey Kl 6 4PD
SHtNryYO-Ef4, U.K TRUSTEES, REPORT FOR THE YE.4R ETrIDED 31ST DECEMBER 2020 Conlinued Fixed Assets The movements in langible fixed ass¢ts for the vear arc shokn'n in Note 6 oflhese Financial Staiements. Directors, Ro4ponsibilitie$ for Preparing the Financi41 Statemellts The trustees (who arc also directors of Shinnv(Fen, U.K. for ihe purposes of company law) are responsible for preparing the Trustees, K¢port and ihe financial slaieJnents in accordance with applicable law aiid Uiiited Kingdom Accouniing Standards (United Kingdom Gcncrally Acc¢ptcd Accounling Pracli¢¢). Company law requires the directors to prepare financial statements for each financial y¢ar which giv¢ a true and fair view of the state of affairs of the charitable company and of ihe incoming resources and application of resources. incliiding thc income and expenditure. of the charitable company for tiiat period. In preparing these financial statements, the truste¢s are required to= select suitable accounting Frt)licies and apply them consistently observg the methods and princrples in the Charitics SORP 2019 (FRS102) make judgements and estimates that are asonable and prudent state whether applicablc UK accounting standards have been followed. subject to any material departures di5closcd and explained in ihe fanCial siaiements prepare the financial staiements on the going concern basis unless it is inappn)priate to presume that the charitable company will continue in operation. The Truslees are responsible for keeping adequate accounting re£ords that disclose with reasonable accuracy at any lime the financial position of ihc charitablc companv and enable them io ensure that ilie financial statements complv w'iih the Companies Act 2006. Thev are also rcsFrt)nsible for safeguardin¥ the assets of the charitable company and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustecs are aware.. ther¢ ]% no relevant audit infonnatior) of which the charitable compan$ auditor is unaware- and as dircctors have laken all the steps that the).. ought to have taken lo make iheins¢lves aware of ai)y relevant audit infom)ation and to estsblish that the company's auditors are aware of that infornjation. Auditor5 Colich Bright King & Co were re-appointed as the charitable company's auditors during the year and liave expressed their willingness lo coniinue in that capacity. This port has been prepared in accordance with the Statement of Recommended Practice and in accordance with th¢ special provisions of Part I S of the Companies Act 2006 relating to small companies. This report was approved by the Board on 23ra September 2021. Mr Shoh¢i NisEtino Se¢r¢tary
SHINNYO-EN, U. DETAILED INCOME AND EXPF.NDrruRF. AC.COUNT FOR THE YEAR ENDED 31ST DECEMBER 2020 2020 2019 Incotne Donations 157,918 268,946 Charilable aciivities.. Operatiotb of Temple Annual Events and Activities SpeLial Ceremony Intcrfaithl-'riends for Change Funds for Education Fund5 for Yoliih Association Activities FLiiid.8 for Lantcrn Floaiing Ceremony 300.000 335,000 i 0.000 6,000 i 0,000 6,000 14,833 25.000 30.000 346,000 J90,833 Other Irading activilies Chiryu Gakuin Dhamla Programme Publications and D¢i'otional Material IA)dge House- Short Tem Nd Rental Income 476 1,601 12.721 1,307 4,818 13,981 Oiher Income 14.798 20,106 Total Income 518,716 679,885 F.xpenditure Annual events and activilies Operation of Temple 60,088 394,309 424.143 Total Expenditure 454.397 461,559 Net Income for the Year 64,319 218.326 Surplus Brought Fonyard 737.827 519,501 Surplus CArried Fonvard £802.146 £737,827 Discontinued Operations For both financial periods there wer¢ no disconlinued operations. Recognised Gains For both financial periods, there M'ere no recognised gains or losses othcr than those shown above in the Income and Expendilure Accounl.
SHINNY(kEN, U.IL COMPANY NO. 2282524 STATEMENT OF FIN.4NCIAL POSITION AS AT 31ST DECEMBER 2020 Note 2020 2019 Fixed Assets Tangible Assets 3,388,105 3,395.551 Current Assets Debtors Cash at Bank and in hand 10.117 631.462 22.483 547,666 641,579 570,149 Creditors (ATnounts falling due within one year) 27,538 27,873 Net Current Assets 614,041 542,276 Total Assets Less Current Liabilities £4.002,146 £3,9J7.827 Funds Permanent F.ndowment from Parent Organisation 10 3,200,000 3,200,000 Unrestrieled Funds io 766,261 687,854 Restricted Fund5 10 35,885 49,973 £4,002,146 £3,937,827 Thcse accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by th¢ Directors on 241tr September 2021 Mr. Kenneth White Directors Mr. Vatroslav Popovic } Mr. Charles Day
SHINNYO-EN, U.IL sTATEmET OF FIN,A,CIAL ACTIVITIES FOR THE YEAR EINDED31ST DECEMBER2020 Total Funds 2020 Total Funds 2019 Unrestricted Funds Restrifted Funds Permanent Endom'ment Note Income Donalions 157.918 157,918 268,946 Ip7comefrom Chariiable Activities.- Subvention Income from Japan - Special Ceretnony Interfaith Friends for Change rund5 for Edu¢aiion l.unds for Youth AssiKiation Activities unds for Lantern Floating L¢remony Operation of Temple Incomcfrom oiher Irading Acltvilies.. Publications and Devotional Material Chiryu Gakuin Dhartna ProgramtHe Lodge House- Short Temi Net Rent In¢oTne Other Inco]ne 10.000 6.000 10.000 6.000 10,000 6,000 14.833 25.000 335,000 30,0(10 30,000 300.000 300.(IIKI 1.601 476 12.721 1,601 476 12.721 4,818 1,307 13,981 Total income 472,716 518,716 679,885 Expenditure on: Charitable Activities 394.309 60,088 454.397 461,i59 Total expenditure 394.309 60.088 454.397 461,559 Net in¢omc and net moveThents in lunds for the year 78.407 (14,088) (A.319 218.326 Transfers between Funds R¢conciliatioM of fund5 Totsl Funds brought forward 687.854 49.973 3.200,(M)o 3.937.827 3,719,501 Total Funds carried forw8rd 766261 35.885 3200.000 4.002,146 3,937.827 The statement of financial activitLe5 includes all gains and losses recognised in ihe year. All income and expenditure derive rrom coniinuing aciiviiies.
io SHLNNY(kEP*. U.IL STATEMENT OF CASH FLOWS FOR THE YEAR ENDF.D 31ST DECEMBER 2020 2020 2019 Cash flows from operating activities Net movements in funds for the year Adjuslmenlsfor.. Depreciation 64.319 218,326 11,821 11,195 76.140 229,521 Movenienis ill workin2 capilal Decreasc/(Increase) in Dcbtors 12,366 (9,152) (D¢crease}IIn¢rease in Creditors (335) 3,366 Nei cash generated by op¢raling activities 88,171 223,735 Cash flows from illvestiRg actiTrites Purchase of tangible fixed asscts (4,375) (3,766) Cash us¢d in investing activities {4,i75) {3,766) Increas¢ in cash and cash equivalents 83,796 219,969 Cash and cash equivalents at beginning of the year 547.666 327,697 Ch and cash equivalents ai the end of th¢ year 631,462 547,666
SHIf*'lYY(kEN. U.K. OTES TO THE ACCOUNTS FOR THE YF.AR E)L DED 31ST DECEMBER 2020 I Cojnpany status The charity is a Company limited by guarantee. In the eveni of the charity being wound up, members who constitute the eharilable company are required io contribuie an amount noi exceeding £10. During the year Ihe affairs ofihe charitable company were managed by the Directors named Dn page 4. 2 Accounting Policies The principal accountitlg polLcÉes. all of which have been applied consisiently throughout thc year, are set out below: Basis ofpreparation Th¢ financial siaiemcnls have been prepared in accordance with Accounting and Reporting by Charities.. Staiement of Recommendcd Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Finitncial Reportin& Standard applicable in ihe United Kingdom and Republic of Ireland (bRS 102). the Charities Act 2011. the Companies Act 2006 and UK Generdlly Accepled Accounting Practice. Shinny<Fen, UK mcets the definition of a public benefit eniilv under FR$ 102. Assets and liabilities are initially rccognised ai hisiorical cost or transaction value unless Othe.75¢ stated in the rclevant accounting policy noles. Funetional and PreselltatiODal CurreDCy The company's functional and presentation currency is GBP. Going Concern The iharity reported a cash inflow of £83.796 for th¢ year. I'he Trysle have received confirnialion that Shinnyo-en Japan will continue to support ihe charitsble cornpany by providing Subvention income to enable Shinnyo-cn UK to continue its chariiable operation5 for the foreseeable future. 'I"he TTust¢ consider ih¢re are no material uncenainiies about the Charit)'"'5 abili to continue as a going concern and ther¢fore continue to adopi the going concern basis in preparing the financÉal Statements. Incoming Resources and Resources Expended Income is recognised when the charity has eniitlement to the fuEhds, any rrOMi8n¢c conditions attaclied to the items of income have been mei. it is probable that the income will be rcceived and the amount can be measured reliably. The Charity, in common with many others of a simÈlar size and Organisatio derives a substantial proportion of its income from voluntary donations. Such donalions are rccognised and entered into the 2¢¢0unting records when they are received. Other incL)me. such as bank interest. is accounted for on an accruals basis. All expenditure is accounted for on accruals basis. Operating lea5e5 Rentals applicable to oper&iing le&ses are charged to the Statement of Fitwicial A¢tivities over the pcriod of the lease. Depreciatioll Depreciation is provided io wrifr off ihe Cost of fixed assets over their estimated useful lives on Ihc following basis.. Fixtures and Equipment - 2 tolo years straight line Motor Vehicle - 4 years gtraight line No depreciation h&s been provided in respect of the Company's inierest in freehold buildings.
12 sH1O-Er*,, U. OTES TO THF. ACCOUNTS FOR THE YEAR ENDF.I) 31. DECEMBER 2020 (Continued) 2 Accounting Policies (Continued) Key Judgements and E51imations The freehold continues io be maintaiTred io a hieh standard. and li is in the opinion of the directors, that the property would be worth more if il was at the end of I useful life ihat li originally cost. and therefore they consider no depreciation is necessary. Pension Costs The company operates a defined coniribution scheme for ihe bencfit of its eJnployees. The costs of contribulions are wrillen off against profits in the year they ate payable. Debtors and CredÈtors Debiors and crcditots with no stated inierest rdte and receivable or payable within otte year are recorded at transaciion price. Any losses arising from impaitrnent are recognised in the profit and loss account in other administraiive expenses. Foreign CurTency TraDSartions Foreign currency transactions are initially re¢ognised by applying to the foreign currency amount the spot exchange rate beNeen the fvnctional currency and foreign cutrency at ihe date ofihe Iransaciion. Monetary assets and liabilities denominated in a foreign currency at the balance She date are translated using the closing rate. Restricted Funds The restricted ar¢ fitnds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. Th¢ cost of raising and administering such funds are charg¢d againsi the specific fund. The aim and use of each nd is sct out in the nofrs lo the financia] statements. Unrestrieted Funds The accumulated funds are unrestricted funds available for use at ihe discreiion of the trustees. Permanent Endowment FuDd The donation from the Founding Organisation in Japan. Shinnyo-en. a5 for the purpose of acquiring the Manor Housc, for its subsequent conversion into the U.K. Centre and for continued capital projects. The monies were advanced subject io ihe conditions sei out in noie 10 to the accounts.
13 SHtNNYO-EN. U. NOTES TO THE ACCOLINTS FOR THE YEAR kNDF.D 31ST DECEMBER2020 (CoDtinued) 2020 2019 3 Charitable Activities Restricted Expellditure- Annual events and activities Educdtion Fund Youth Association Aciivilies Lantern Floating Ceretnony 5.362 837 53,889 4,583 10,012 22,821 60,088 37,416 Unre$iricted Expenditure- OperAtioDS of Temple Property Maintenance and Running Costs Meeiing, Prcmises Rentals and Propagation C¢rcmonies, Functions and Media Costs Motor Expenses Ministers, Costs and Welfare Depreciation and Los5 on Fixed ASS Disposals Suppon Costs - See Noie 4 Govemance Co.qts- See Note 4 93,862 9,i78 18.134 1.950 705 11.821 240.980 17.479 90,601 60,920 3.247 2,179 720 237,651 17,630 394,309 424,143 4 Analysis of Governallce and Support Costs General Govemance Support Function 2020 Total Sa]aries and relaied costs General Office Audit Fees Accountancy Services Legal and Other Professional Costs 228.417 12,563 228,417 12,563 6.975 6.480 4.024 All(Kated on time Invoiced evenis Governance Govemance Governance 6.975 6.480 4,024 240,980 17,479 258.459 Analysis of GovernaDee and Support Costs General Governance Support Function 2019 Total Salaries and related costs Gencral Office Audit Fee5 AccoLintaney Scrvice5 Legal and Other Professional Costs 226,322 11,329 226,322 11.329 6,750 6,480 4,400 Allo¢ated on time Invoiced events Governance Governancc Governance 6.750 6,480 4.400 237,651 17,630 255,281
14 SHINNYO-EN, U.K. NOTES TO THE ACCOUliTS FOR THE YEAR EI%DF.D 31ST DECEMBER 2020 (Contillued) 2020 5 Staff Costs 2019 Salary Employ¢rs Nalional Insurance Pension Costs 198.660 18.056 11,701 195,996 18,521 11,805 £228,417 £226,322 The avcrage number employed during the period. There are no emplovees with employee ben¢fits tn exces5 of£60,000. The charily operales a contributory pension schetne. It is a defiTted contribution scheme and contributions are charged in the statcment of financial aetivities as they accrue. The charge for the year was £11,807 (2019 - £11,805). I'he Key Management Personnel of the charity comprise the Company Secretary, the Branch Manager and the -frustees. The total ¢tnployee benefits ofthe kej management pcrsonnel wer¢ £56,053 (2019.. £55,875). The Trustees neither received nor waived anv remuneration during the year (2019.. £Nil). Trustces expenses paid during the year are disc105ed in Note 17. 6 Tangible Fixed Assets Fixtures Freehold Fittings & Property Equipmellt Motor Vehicle Cost As at I st January 2020 Additions Disposals Total 3,364,900 753,526 4,375 21,000 4,139,426 4,375 As at 31 st December 2020 3,364.900 757.901 21,000 4,143,801 Depreciation Aq at 1st January 2020 On Disposals Charge for ihe Ycar 722,876 20,999 743,875 11,821 11,821 As at 31 st December 2020 734,697 20.999 755,696 Net Book Value at 31 si Deeetnber 2020 3.364,91X> 23,204 3.388,105 Net Book Value at 31 st December 2019 3,364,900 30.650 3.395,551
15 SHININY(kEN, U.K. NOTES TO THE Accouyrs FOR THE YEAR ENDF.D 3 1ST DECEMBER 2020 (Continued) 2020 2019 7 Debtors Prcpayinenls Othcr Debtors 7.794 2.323 13,712 8.771 £10,117 £22,483 8 Creditors {Amounts falling due within one year) Sundry CredÈtors & A¢cruals Taxation and Social Security 22,810 4,728 22,170 5,703 £27,5J8 £27,873 9 Analysis of Net Assets between Fuods General Fund Restricted Permanent Fund Endowmellt Total Tangible Fixed Assets Cash at Bank and in Hand Chher Nel Current Assets 188,105 595,577 (17,421) 3,200,000 3,388,105 631,462 (17,421) 35,885 766.261 35,885 3,200.000 4,002,146
16 SHINNYO-EN. U.IL NOTF.S TO THE ACCOUNTS FOR THE YF.AK ENDED 31ST DECEMBER 2020 {Continued) l O Sti)tement of Funds Permanent Endowment This relates to moni¢5 received from the Parent Organisation in Japan, Shinnyo-en. for the purposes of acquiring the Manor House (Freehold Propertv from Note S), for its subsequent conversion inio (he U.K. Centre and forconlinued capiial projects. The monies H'ere advanced subject io the following eonditions.. i) That the said sum be applied only in pa)Inent of ihe pur¢hase price of the propety and other costs reasonably incurred by the Company in (he connection w'ith th¢ purchase and refvrbislmnent of the property. li) Following the purchase of the property it will not be 501d, leased. morttsaged, charged or oth¢nvise di5P05ed of: deali with or in an)v'a)' encumbei the whole or anv pan of ihe property, or interest in it without prior written conseni of Shillnyo-En. Ill) That at the time of appljintr for registration of itile io the propert). upon compleiion ofthe purchase application was made to the Registrar of H M Land Registtv for (he following ie5triction to be entere41 on the register atsainst the title. Except under an OTder of the Reuislrar, no disw>sition or dealing bj the proprietor olihe land is lo be re(Tistered without the consent of ihe Executive Dire¢tor of Shinnyo-En. Japan. The Funds donatcd have been transferred to the Pernjanent Endowncnt from Parent Organisation reserve. Outgoing Rcsources At l 2020 Rcsourtes Transfers At 31 December 2020 Generdl Reserve 687.854 472.716 394.309 766,261 Total unrestricted funils 687.854 472.716 394,309 766.261 Restricted fund5: Interfaith Friends for Change Funds for Lducatton 21.898 1.417 8.196 18.462 lo,0 {5,4271 26.471 2.055 7.359 5J62 837 Funds for Youth Association Aciivities Funds for Lantem Floating 30.000 53,889 5,427 Tot41 restricted funds 49.973 46.000 60,088 35.885 Perm&nent Endowment 3,200,IKKI 3200.000 Total Futtd$ 3.937.827 518.716 454.397 4,002.146 Restricted incom¢ was received in the year for Inierfaith Friends for Clwioe, Education and the Lantern Floating Ceremony. The Traa5fer between the restricted fvnds represents the redirection of unused fi]nds from the interfaith aclivity to th¢ Shinnyo Lantern Fl(kiiing 20?0 as agreed with Shinnyo En Japan_ The carried fon4'0rd funds for each are available for flllure expendiiure. Thc unrestricted fund represents the free funds of the charity ivhich are not d¢signated for panicular purposes, and are expendable ai the di5cr¢tion of the Trusi¢es in the furtherance of (he objects of ihe Order. Hence. such funds may be held to finante both working tapital and capital invcstment.
17 SIIINI Tr*'Y(kELN', U.K. NOTES TO THF. ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2020 (eolltinued) 11 Capital Commithiellts There are no outstanding commilments as at 3151 DeceTnber 2020 (2019- £Nil)- 12 Ikasillg Commitments Ai 315f December 2020, the company had annuat commitments under non-can¢ellable operating lease payjnenis rccognised as an expense as detailed klow: 2020 2019 Operating Leases which expire- Within one year Within ttvo to five years 2,791 4,653 2,791 7,444 13 Corporation Taxation The charit).. is excmpt from tax on incorne and gains falling within section 505 of the Taxes Act 1988 or section 252 of the TatIOn of Chargeable Gains Act 1992 10 ihe extent thal these arc applied io its charitable objerfs. 14 Contingcnt Liabilities There are no contingent liabilities to report. 15 Post Balance Sbeet Events There are no posi balance sheet events to rert. 16 Relgted Party TraDCtionS This year there were no directors provided wilh rent-free accoTnmodation ort Th¢ Manor House property in connection with their duties, as provided for under Clause 4 of the Memordndum of Association. The Coach House has not been occupied during the year by the junior Ministers on their temi of secondment in the Uni1ed Kingdom. Shinnyo-en Japan, the Founding organisation provides Shinnyo<n, UK with funding by way of subvcnlion income. For the year ended 31 St December 2020. Shinn}'O-en, UK received subvention income of £i46,000 (2019-. £3,833). which included £6,IMM) {2019.. £6,000) for Education and £Nil (2019.. £14,833) for Youth Association activities. During the year. training iravel expenses totalling £931 (2019- £1,767) were paid on behalf of trustees, wives. 17 Trustee Expenses During the year. the travel expcn5e5 of four trustees tota]ling £Nil (2019: £3.063) were paid for by Shinnyo- en, UK. 18 Control The E.xccutive Director of ShÈnnyTrcn Japan. oversees ihe overx]I managemeni of Shinnyo-en. UK and is the ultimate controlling party. 19 Gelleral Inforniation The charity is a company limited by guarantee. registered in England and Wales. The addre55 of the registered otTi¢e is The Manor House. Woodstock Lane Nortm Long Ditton, SUey. KT6 5HL.
18 INDEPENDENT AUDoR, REPORT TO THE MEMBERS OF SHIP4y[kE, U.IL Opinio We hae audited the financial statements of Shinn>'o-e]L UK for the seaT ended 31st December 2020 which comprise the primary statements such as ihe Income and F.Kpenditure Arcounl, the S(atement of FInCial Position. the Staicrn¢nt of Financial A¢tivities, the Ch Flow Siaiemenl and the related noic5. The fjjknqncial ieporting framework that has bcen applied in the&r preparaiion is applicable law and Uniied Kingdom Accounting Stslldards including FRS 102 'The Financial Reporting Standard applitrable in the UK Rcpublic of Ir¢land (United Kingdom Gen¢rallJ Accepied Accounting Practice). In OUT opinion the financial statements= give a tnje and fair view of the slate of the charitable company's affairs as ai Jlst Det¢tnber 20?0 and of its Éncoming resourLes and applicgtiort of re50urces,' intluding lis tn¢orne and expenditure. for Uie year then ended. have been properly prepared in accordance with United Kingdom Genera]ly Accepted Ac¢ountÈng Prartice applicable io smaller entities- have been prepared in accordan¢e with the rcquiternents of the Cotnpanies Aci 20(. Basis for opinion We eonducted our audit in accordance with International Standards on Auditing ItiKI IISAS (UKII and applicable laiv. Our responsibilities under those standaTds are further de5CTibed in the Auditor's resp(>n5ibilitics for the audii of the financial staiements scctiort of our report. Ille are independent of the charithble compan). in attoidance M'iih the erhical requirements that ar¢ relcvani to our audit of the fEnarbcial stale¢tS in the UK: inelllding ibe FRC'S Ethical Standard, and we have fulfilled our other ethival responsibililies in accordanc¢ with thcse requirements. We believe that the audit evidence we havc obtained is sufficient and appropriaie io provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in res of tht followithg matters in re10 to which the ISA5 (UK) require us to repon io you where". the tnjstees. use of the going concern bssis of accounting in the preparatton of the financial st2t¢ments ts nol appropriatw. or the trustecs have Rot disc105ed in the fJnan¢ial staiements any idcntified material uajcertainties that may cast signifjcant doubi about the charitablc Company's abtlity to continlle w adopt the going concern basis of accounting for a period of at least iwelve months from the date when ih¢ financtai statetnents are authorised for issue. Other inforrnation The trustees are resnsible ftsT the oihu infotmalion. The other inforni10ll ¢ompri5es the inforrnation included in the trustees, report. other than the financial statements arml our alIOT,5 report thereon. OUT opinion on the financial ststernents doe5 not cover the other infomi&ion and. exccpi to the extent oth¢r%*i5e expliciily stat in our repoJL we do not express any foTrn of assurance conclusion thereoh. In connc¢tion with our audii of the financial staternents. our resFK>nsibtlity ts to ad the other inforniation aÉJd, itt doing so, consider whetheT thc other infoTrnation is materially inconsi5t¢nt with the fjnancial stalemenis 01 our knowledge obtaincd in the alldil or othen¥ise aptraTS io k maierially misstated. If we ideTrtify' such material in¢onsi5tencies or appaTent rnaterial misstatements, we are required to deterrnine iTrheiher there is a mate¥ial misstatement in the financial ststetnents or a material mis51alemtrtt of the other infomation. If, ed on the work we have perfomked. we conclude that there is a material misstatement of thts oiher Infortnation. we are tequired io reJx)rt faa. We have nothing to repon in this regard. Opinions on other matter5 prestribed by the Companitt Act 21)06 In our opinion. based on the work uttdertakeTt in the coutse of the audii." (he infomiatEon givem in the tn]stees' report lincorpordting the directors, report) for the financial year for which the rinancial statements are prepared 15 consiment wilh the financial ststements. and the directors. report has been prepared in accordance with applicable lega] t¢quirements.
19 INDEPENDF.Nr AUDITORS, RF.PORT TO THE MEMBERS OF SHINNYO-ED, U.IL (Continued) Matters on which we are required to report bv exceptio In the light of our knowledge and unders(anding of the charitable cotnpan). and its environment obtsined in the oiurse of the audit. we have not identified mateTial misstaiements in the directors, report in¢luded 1th1 the trustee5' report. We have nothing to report in respcct of the following matters in relation to wthich the Companie5 Act 26 requires us io report to you if, in our opinion: adequate and propcs aceouftttng records haye noi been kept. or retUTns adequate for our audi( have not been received frotn brdnches not vistted by us- or the finan¢ial Statements are not in agreement with th¢ accouThiing i¢cords and turnS- or ertain dtwlosures of twsiees, rernunernion specified by law are oot made. or we have not received all the infonnion and explanations we Tequire for our audiL or the ITUStees were not errtitled io prepare the financial statements in accordance wilh the small ¢ompanies' regirne and lake advantage of ihe stna]I companiLS" exemptions in prering the Irllstees. report and from the requirement to prepare a strategic Teport. Responsibilities of irustees A5 explained rnore fully in the Trustees. Responsibiltites Statcrnent set out on p4e 6 th¢ Twstecs {who atr also the direLI0]S of thc chaTitable company for the purposes of the company la) are responsible for the Preparaiion of th¢ financial statements and for being sat15fied thai they give a true and fair view. and for such illiernal control as the trustees determine is nLessary to enable the piepardtion of financial SementS that are free from m•erial TnisstatemenL whether due to fraud or error. In preparing the financial statetnenls. the tn¢¢5 are responsible for assessing the charitable ¢otnpany's ability to continue as a going concem, disclosing, as applicable. manets related io going eon¢ern and using the going concern bas.is of accounting unless the trusiees either int¢nd to liquidate the charitable ¢ompany or io cease opcrations. or have no realistic alternative but to do so. Auditor's responsibilitie% for the audit of the financial statements Ollr tsbjectives are to obtain reasonable assurdt)¢e about whether thc flnanciai Stsi¢Thents as a whole are free from material misstaietnent. whether due to fraud or error, and w issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guardntee that an audit conducted in act(JTdance with ISAS IUKI will always dctect material rnissiatement when it exrsts. Misstatements can arise from fraud or error and arc Considered material if, individually or in the aggregatc, they ¢ould re&sonably be expected io infiuence the e¢onomic decisions ofuser5 tsken on the basis of these financial statements. Irregularities, including fraud. are iTrsian¢es of non-compliance wth laws and regulations. We desigR procedures in lirte with our responsibilities. outlined above, to deteci maierÈal misstakments in respcct of irregularities, ineluding fraud. The 5pecifJc PTocedures for this engagement and the exlent ¢0 which these are ¢apable of deie¢ting irregularities. including fraud is detailed b¢low'.
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF SHINPyYO-EP, U.EL {ContiDued) 20 We have,. Obtained an understanding of the legal and Wrgulatory framework applicabl¢ the entity and how the entity is complying with that framework: Obtained an uttderstanding of the entity's liCI¢S and procedures on Compliance with laws and Tegulations. including d(Kumentalion of any instances ofnon-compliancc- Identified the laws and regulations that have signiftcance in the conxt of the eniity; Obtsined an understanding of th¢ entity's risk assessment process. including the Tisk of fralld. Assessed and evaluated the susc£ptibility of the eniity's financia] sthtements to maleiial rnisstatemcDL through error and fraud. IFnplemenied procedures to enable ihe ideniification aTrl testing of or unexpected journal entries; Evaluated the a55UrnPtions aEJd judgements used by MaTemen1 within significanl accounting estima$ and assessed if these indicate evidence of management bias- Tested sikmificani ifdnsartion5. ill particular the evaluation ofthe IsinesS rationale for any which appear unusual or outside the Company's nom)al course of business- ReVI¢d the finarE¢ial staiemenis and tesied th¢ disclosures againsi supwrfing rtocumentation- Comrnunicated relevant matters lincluding those aFx)vel to all member5 of the audit tM to ensuT¢ they utJdeT5tood the risks speeific to the entity and the audit procedLEres planned to mitigate these. Bwause of the inherent limitations of an audiL there is a risk that we will noi detect 2]] irregularities. including those leading to a material missiatetnent in the financial siaiements or tson-compliante with regulation. This risk inLr¢ases ihe more that Compliance with a law OT regulation is removed from the events 9d transaciions reflected the fjnatjcial slatemenis, as we will be less likely to becom¢ aware of instances ofnon-complian¢e. The risk is also greater regarding iTgularitIeS oc¢utting due to fralld niher than errol. as fraud involvcs in*ntional concealmenL forgery.. collusion, omission or misrepresentation. A furth¢r dcs¢ription of our resp)nsibiliiies for ihe audit of the financial Sthtsments is located on the Financial Reporting Council's website at-. www.frc.org.uklaudiior%responsibilities. This description forms part of our auditor's report. Use of our report This rep)rt is made solely to the clkaritsble ¢ompany's members. as a b(ty. in ac£ordan¢e wtth Chapter 3 of Part 16 of the Companies Act 2006. Our kudlt WOTk has been undertaken so that we might stale to ihe charivdble company's members those matters we are required to stale to them in an auditols Tepori and foi no other pur$¢. To the fvllest extent permittcd by law. w¢ do not accept or assume Tesponsibiliiy io anyone oihcr than the charitsble ¢ompany and its rnembeTS as a body, for our audit work, foi this rert, or for the opin&05 we have fornied. Andrew Shepherd (Senior stalOry Auditor) for and oll behalf of Couch Bright Kints & Co Chartered Accountants & Statutorv Auditors First Fl(bor. Shropshire House 179 Tottenham Coun Road London. WIT 7NZ S¢ptember 2021