2022-05-31-accounts - Vipassana Trust

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VIPASSANA TRUST

TRUSTEES’ ANNUAL REPORT

VIPASSANA TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

COMPANY NUMBER:- 2246810

REGISTERED CHARITY NUMBER:- 327798

R J FRANCIS AND CO. Chartered Accountants & Registered Auditors Marshall Business Centre Faraday Road Hereford HR4 9NS

VIPASSANA TRUST

FOR THE YEAR ENDED 31ST MAY 2022

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CONTENTS: PAGE
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CONTENTS:	PAGE
Company Information	1
Trustees’ Annual Report	2 - 5
Independent Auditor’s Report	6 - 9
Statement of Financial Activities	10
(Incorporating the Income and Expenditure Account)
Balance Sheet	11
Notes to the Financial Statements	12 - 16
The following page does not form part of the
statutory financial statements:
Detailed Statement of Financial Activities	17

VIPASSANA TRUST

Trustees for Financial Year 2021/22

President	Yuta Fairs-Billam
Secretary	Toby Fairs-Billam
Treasurer	Gavin Mitchell
Trustees serving throughout the year
	Claire Coache
	Robert Doyle
	Datta Mandnikar
	Lisle Turner
	Gus Griffin
Trustees appointed during the year
	James Chan	October 2021
	Kevin Clifford	October 2021
	Raquel Faraco	October 2021
Trustees resigned during the year
	Abhishek Srivastava	October 2021
	Guedion Hebtegabriel	October 2021
	Katja Fidler	October 2021
Company Number	2246810
Registered Office	Dhamma Dīpa
	Pencoyd
	St. Owens Cross
	Hereford
	HR2 8NG
Auditors	RJ Francis & Co Limited
	Marshall Business Centre
	Faraday Road
	Hereford
	HR4 9NS
Bankers	HSBC UK Bank plc
	Bristol Commercial Centre
	3 Temple Quay
	4th Floor, Temple Back East
	Bristol
	BS1 6DZ

Charity Registered in England and Wales No: 327798

(1)

VIPASSANA TRUST

TRUSTEES’ ANNUAL REPORT

The trustees, who are also directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 May 2022.

AIMS AND CHARITABLE PURPOSES

Vipassana Trust exists to advance human happiness through the teaching of principles established by the late Sayagyi U Ba Khin. These include the practice of Vipassana meditation: a technique for developing concentration, insight and higher standards of morality that was originally taught by the Buddha.

ACTIVITIES – MEETING OUR CHARITABLE PURPOSES

Vipassana meditation courses are provided for adults and Anapana meditation courses are provided for children and young people. The trust's activities are based at two sites: Dhamma Dīpa, a residential meditation centre at Pencoyd, Herefordshire; and Dhamma Padhāna, a second purpose-built residential centre adjacent to Dhamma Dīpa. Additional courses are held at rented sites in the North of England and in Scotland.

The number of full-time adult participants (and number of courses) this year are summarised below (excluding 1-day courses):

		2021/22			2020/21
Course Type	Dhamma Dīpa	Dhamma Padhāna	Total	Dhamma Dīpa	Dhamma Padhāna	Total
10-day	1,982 (20)	164 (3)	2,056 (21)	301 (10)	0 (0)	309 (10)
Other	66 (14)	472 (12)	538 (13)	46 (3)	196 (6)	252 (9)

Note: 10-day courses are the standard introduction of the technique to adult students; ‘old’ students, that is those who have already completed a course in this tradition, may participate in these courses as well as in others that are shorter or longer.

A Vipassana course for an adult is a rewarding but often demanding experience. The trust has a thorough application process to ensure that applicants understand the nature of what they are undertaking and have a good chance of benefitting from their commitment of time and effort.

RECENT ACHIEVEMENTS

Both Centres have returned to full course schedules and numbers after the disruption of the pandemic. The Masterplan for the completion of Dhamma Dipa received approval from Herefordshire Council. The farmhouse underwent a thorough renovation, improving the facilities for male students.

FINANCIAL SUPPORT TO VIPASSANA TRUST (DHAMMA SUKHAKĀRI)

In January 2018 Walnut Tree Manor in Haughley Green, Suffolk was purchased by the Dhamma Sukhakāri Trust and this organisation has been able to support it in a number of ways, including financially. During the financial year under review this meant holding any funds still being donated to it for the East Anglia Fund as designated funds for Dhamma Sukhakāri and transferring the balance to them from time to time.

Initially a monthly contribution of £3,000 was made but this support was discontinued in October 2020 at their request when its trustees felt that the organisation had achieved financial stability.

The first course was held there in October 2018 and Vipassana Trust is delighted to have been in the position to have made assistance available to this exciting development to help spread of Vipassana meditation across the UK.

FUTURE STRATEGY

The purpose of Vipassana Trust is to organise and run courses in Vipassana Meditation as taught by S.N. Goenka in the tradition of Sayagyi U Ba Khin.

For 2022/23, Vipassana Trust’s ambitions at Dhamma Dipa are:

To continue to disseminate information about Vipassana meditation.
To continue to support the existing regional groups in the UK.
To build the maintenance workshop extension.
To design and implement Masterplan media components in order to inspire donations to complete the Centre development. 5. To start building Block J and Block A1.

(2)

VIPASSANA TRUST

TRUSTEES’ ANNUAL REPORT

The Dhamma Padhāna Branch Future Strategies are:

To continue to provide suitable meditation facilities to those who wish to work more deeply in Vipassana Meditation, by providing longer courses and other courses for those who have sat a number of 10-day courses.
To resolve the construction issues that have emerged with the zinc roofing of the pagoda
In order to help satisfy strong demand for long courses, the trust decided to delay the construction of a new kitchen/dining room and instead build 26 additional single en-suite rooms.

FINANCIAL STATEMENT

The incoming resources for the year amounted to £1,006k (2020/21: £667k), expenditure was £924k (2020/21: £665k) leaving a net surplus of £82k (2020/21: £2k)

As stated in the note regarding a Contingent Liability for repairs to the Pagoda Roof the Trustees, since the completion of the Pagoda in July 2017 a defect with the parts of the roof has become apparent which will require replacement. The Trust, through its subsidiary Vipassana Construction and Services Limited (VCSL), has sought legal advice and, while VCSL will do its best to resolve this dispute without resort to litigation, the Trustees acknowledge the potential for litigation if settlement attempts fail, as well as the attendant fees and costs of such litigation, many of which may not be recoverable even if there is a successful outcome.

COVID-19 PANDEMIC

Like many other organisations, Vipassana Trust has been affected by the Covid-19 Pandemic. A ‘Covid Response Team’ was immediately set up by the Trust with several doctors included, some of whom already serve other committees. This became ‘The Covid Group’.

The Trust followed Government Guidelines and was in regular communication with local health authorities. Following the easing of restrictions in May 2021 courses were able to recommence at both Campuses with robust Covid measures in place. With the lifting of restrictions announced in July 2021 courses have been able to resume with full capacity, albeit continuing to follow government guidelines and continued Covid measures.

The Trust’s Cash Flow projections have been regularly reworked to reflect the change in the Government Guidelines and centre closures. These were used to provide the information that helped establish the financial stability of the Trust throughout the pandemic.

Both branches (Dhamma Dīpa and Dhamma Padhāna) were fortunate to have built up reserves to invest in new buildings and so have had something of a cushion to work with. They have also been supported by regular monthly donations, which have not reduced despite the economic situation and by other generous dana from old students.

The effects on the organisation of all these changes and other factors are closely monitored and the cash flow and projections updated monthly. The Trustees are confident that Vipassana Trust will be able to continue to run courses successfully. There may well be further lockdowns but even with this, using its reserves, we believe that the future of the organisation is secure.

ORGANISATION

Management of the trust's business affairs is by a Board of Directors.

Vipassana Trust directly runs a programme of ten-day and other shorter courses at Dhamma Dīpa. In addition, its branch, Dhamma Padhāna, the European Long-Course Centre, is dedicated to running courses for experienced students. It provides special facilities for students who wish to take longer courses (20 days or more). Dhamma Dīpa and Dhamma Padhāna share many facilities, in particular the office, kitchen and maintenance workshop.

In addition, it organises 3-day and 10-day courses at rented off-centre locations in different parts of the UK whenever possible. Unfortunately this has not been possible in the financial year under review.

No charges are made for attending courses, either by way of fees or accommodation expenses, and donations are accepted only from students who have successfully completed a 10-day course. It is made clear to all participants that these donations are not payment for the teaching and accommodation that they have received, but contributions towards the costs of providing courses in the future for others to attend. The donations are called 'dana' (a Pali word). Donations given at the end of a course (course dana) are the main source of funding for the trust, which also receives donations by way of monthly standing orders and one-off donations. We also receive student loans of varying amounts and duration.

Teaching and serving (working) on courses is always done on a voluntary basis. The day to day running of the centre is largely done by volunteers, although the Trust employs two part-time office staff and a full-time maintenance manager. It also pays for the services of a part-time self-employed finance manager.

(3)

VIPASSANA TRUST

TRUSTEES’ ANNUAL REPORT

RESTRICTED FUNDS

Branch activities and specific projects are funded by donations given specifically for these activities and from surplus funds designated by trustees.

In addition, the trust collects dana from old students for specific projects or for its sister organisations in other countries such as the Global Pagoda fund. These monies are used solely to support the projects to which they have been donated. The Outreach and Global Pagoda Funds are the only ones that may receive gifts from those who have not completed a 10-day course.

SUBSIDIARY COMPANY

Vipassana Construction and Services Ltd (VCSL) was incorporated in 2013 but remained dormant until April 2015. It was set up after consultation with professional advisors as an appropriate way to manage and administer certain activities of Vipassana Trust which fall outside its main objectives, most specifically to act as principal contractor for its building projects. VCSL is a wholly owned subsidiary of Vipassana Trust and its directors are appointed by the trust.

RESERVES POLICY

The policy of the trust is to invest any liquid or current asset backed reserves into upgrading and building new facilities as funds allow, after providing sufficient funds to meet the anticipated running costs of the organisation. Cash flow forecasts are prepared regularly to enable Trustees to make such investment decisions prudently.

The Net Current Assets below represents the position of the two main funds in terms of the net of cash and near cash current assets less provisions and liabilities due within one year.

Fixed Assets Long Term Liabilities Loan to subsidiary Net Current Assets Total Funds Fixed Assets Long Term Liabilities Net Current Assets Total Funds	General Funds	Restricted funds Total Dhamma Padhāna Other restrict.
	Dhamma Dīpa Desig- nated
		2022
	1,735k - (646k) - - - 600k 68k	3,568k - 5,303k (2,657k) - (3,303k) 55k - 55k 525k 18k 1,211k
	1,689k 68k	1,491k 18 3,266k

		2021
	1,771 k - (779 k) - 592 k 60 k	3,624 k - 5,395 k (2,430 k) - (3,209 k) 329 k 17 k 998 k
	1,584 k 60 k	1,523 k 17 k 3,184 k

FINANCIAL MANAGEMENT & RISK REVIEW

The finance committee regularly scrutinises the financial situation by way of monthly income and expenditure review, cash flow statements and forecasts. We aim to be prudent in our financial management with regards to commitments to future expenditure.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware:

there is no relevant audit information of which the charity's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions

(4)

VIPASSANA TRUST

TRUSTEES’ ANNUAL REPORT

AUDITOR

A resolution to re-appoint R J Francis & Co Limited as auditor for the ensuing year will be proposed at the Annual General Meeting.

Registered office: Dhamma Dīpa Pencoyd St. Owens Cross Hereford HR2 8NG

Signed by order of the trustees

Toby Fairs-Billam Company Secretary

Date: 2[nd] October 2022

(5)

VIPASSANA TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIPASSANA TRUST

Opinion

We have audited the financial statements of Vipassana Trust for the year ended 31st May 2022, which comprise the Statement of Financial Activities, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including the charities SORP (FRS 102) ‘Accounting and Reporting by charities applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

In our opinion the financial statements:

give a true and fair view of the state of the company’s affairs as at 31[st] May 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (IS As (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusion relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cost significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections in this report.

(6)

VIPASSANA TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIPASSANA TRUST

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 required us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.

(7)

VIPASSANA TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIPASSANA TRUST

Responsibilities of Trustees

As explained more fully in the Statement of Trustee’s Responsibilities (set out on page 3), the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations was as follows:

The engagement partner ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the Company through discussions with Trustees and other management and from our commercial knowledge and experience of this business sector.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls we:

Performed analytical procedures to identify any unusual or unexpected relationships
Assessed whether judgments and assumptions made in determining accounting estimates included in the Accounts were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiring of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

(8)

VIPASSANA TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIPASSANA TRUST

Material misstatements that arise due to fraud can be harder to detect than those that arise from error, as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of Our Report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

………………………………………. R J Francis (Senior Statutory Auditor)

For and on behalf of R J Francis & Co Limited, Statutory Auditor

Marshall Business Centre Faraday Road Hereford HR4 9NS

2[nd] October 2022

(9)

VIPASSANA TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME & EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31ST MAY 2022

Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2022
2021
Note
£
£
£
£
INCOME AND ENDOWMENTS FROM:
Donations and Legacies
3
549,366
384,301
933,667
444,149
Investment income
4
724
699
1,423
14
Other Income
5
48,651
23,250
71,901
223,175
_
_
_
_
598,741
408,250
1,006,991
667,338
_
_
_
_
EXPENDITURE ON:
Costs of charitable activities
6
486,515
438,384
924,899
665,650
_
_
_
_
486,515
438,384
924,899
665,650
_
_
_
_
NET SURPLUS /
(DEFICIT)
FOR THE YEAR
7
112,226
(30,134)
82,092
1,688
TRANSFER BETWEEN FUNDS
-
-
-
-
RECONCILIATION OF FUNDS
Total funds brought forward
1,643,962
1,540,050
3,184,012
3,182,324
_
_
_
_
TOTAL FUNDS CARRIED
FORWARD
1,756,188
1,509,916
3,266,104
3,184,012
_
_
_
_

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

(10)

VIPASSANA TRUST

BALANCE SHEET

31ST MAY 2021

	Note £ FIXED ASSETS Tangible Assets 9 Investments 10 CURRENT ASSETS Debtors 11 120,409 Cash at Bank and in hand 1,474,797 _ 1,595,206 _ CREDITORS:Amounts falling due within one year 12 329,157 _ NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS:Amounts falling due after more than one year 13 3,285,928 Provisions for liabilities and charges 14 17,002 _ NET ASSETS FUNDS Restricted Income Funds 15 Unrestricted Income Funds 16 TOTAL FUNDS	2022 2021 £ £ £ 5,302,885 5,395,207 100 100 _ _ 5,302,985 5,395,307 _ _ 75,730 1,233,776 _ 1,309,506 _ 270,651 _ 1,266,049 1,038,855 _ _ 6,569,034 6,434,162 3,196,098 54,052 _ 3,302,930 3,250,150 _ _ £3,266,104 £3,184,012 _ _ 1,509,916 1,540,050 1,756,188 1,643,962 _ _ £3,266,104 £3,184,012 _ _

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved and signed on behalf of the board on 2[nd] October 2022.

........................................................ Director

Gavin Mitchell

Treasurer and Director

(11)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

1. STATUTORY INFORMATION

Vipassana Trust is a private limited charitable company, limited by guarantee, registered in England and Wales. The company’s registered number, registered office address and registered charity number can be found on the company information page.

2. ACCOUNTING POLICIES

a) Basis of preparing the financial statements

The financial statements have been prepared in accordance with the charities SORP (FRS 102) ‘Accounting and Reporting by charities applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

b) Cash Flow Statement

The trustees have taken advantage of the exemption in Update Bulletin 1 from including a cash flow statement in the financial statements on the grounds that the Company is small.

c) Depreciation

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Land & Buildings - 2% Straight Line Fixtures, Fittings and Equipment - Various between 4% - 25% Motor Vehicles - 25% Straight Line

It is the charity’s policy not to capitalise items that cost less than £5,000

d) Foreign Currency

Transactions in foreign currency are recorded at the rate on the day when the transaction is made. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the closing exchange rates on that date; any exchange differences are recognised in the profit and loss account.

e) Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

f) Reserves Policy

The reserves policy of the trust is to invest any liquid or current asset backed reserves in upgrading and building new facilities as funds allow after providing sufficient funds to meet the anticipated running costs of the organisation. Cash flow forecasts are prepared regularly to enable Trustees to make such investment decisions prudently.

3.

4.

DONATIONS AND LEGACIES	Unrestricted	Restricted	Total Funds	Total Funds
	Funds	Funds	2022	2021
	£	£	£	£
Dana	466,572	342,	808,886	341,837
Gift Aid	82,794	41,987	124,781	46,072
Legacies	-	-	-	56,240
	_	_	_	_
	549,366	384,301	933,667	444,149
	_	_	_	_
INVESTMENT INCOME	Unrestricted	Restricted	Total Funds	Total Funds
	Funds	Funds	2022	2021
	£	£	£	£
Bank Interest Receivable	724	699	1,423	14
	_	_	_	_

(12)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

5.
6.
7.
8.

OTHER INCOME
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2022
2021
£
£
£
£
Foreign Exchange Gain
-
-
-
126,457
Wayleaves
154
-
154
-
Feed in Tariff Income
4,196
-
4,196
4,982
Other Income
80
94
174
73
RHI Subsidy
37,146
18,573
55,719
41,009
Covid Grants
3,600
2,400
6,000
41,017
JRS Furlough Receipts
1,292
-
1,292
9,637
Capital Grant Income
2,183
2,183
4,366
-
_
_
_
_
48,651
23,250
71,901
223,175
_
_
_
_
COST OF CHARITABLE
ACTIVITIES
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2022
2021
£
£
£
£
Cost of Charitable Activities
486,515
438,384
924,899
665,650
_
_
_
_
Cost of Charitable Activities includes:
GOVERNANCE COSTS
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2022
2021
£
£
£
£
Audit Fees
4,774
-
4,774
4,610
_
_
_
_
NET (OUTGOING) / INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
2022
2021
£
£
Auditor’s Remuneration
4,774
4,610
Depreciation
166,913
160,695
_
_
STAFF COSTS AND EMOLUMENTS
Total staff costs were as follows:
2022
2021
£
£
Wages and Salaries
53,881
52,290
Social Security Costs
-
-
_
_
£53,881
£52,290
Particulars of employees:
The average number of employees during the year, was as follows:
2022
2021
No.
No.
Full Time
1
1
Part Time
2
2

No employee received emoluments of more than £60,000 during the year (2021 - £Nil).

(13)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

9. TANGIBLE FIXED ASSETS

10.

TANGIBLE FIXED ASSETS
		Dhamma
	Land &	Padhana	Plant &	Motor
	Buildings	Buildings	Equipment	Vehicles	Total
	£	£	£	£	£
Cost
At 1stJune 2021	3,430,233	4,253,881	20,591	13,342	7,718,047
Purchased? from subsidiary	-	-	22,250	-	22,250
Additions	12,254	10,030	44,807	-	67,091
Transfers	(316,132)	(147,631)	463,763	-	-
	__	__	__	______	__
At 31st May 2022	3,126,355	4,116,280	551,411	13,342	7,807,388
	__	__	__	______	__
Depreciation
At 1stJune 2021	1,662,109	630,955	16,434	13,342	2,322,840
Purchased? from subsidiary	-	-	14,750	-	14,750
Charge for the Year	56,135	79,388	31,390	-	166,913
Transfers	(91,028)	(41,249)	132,277	-	-
	__	__	__	______	__
At 31st May 2022	1,627,216	669,094	194,851	13,342	2,504,503
	__	__	__	______	__
Net Book Value
At 31st May 2022	1,499,139	3,447,186	356,560	-	£5,302,885
	__	__	__	______	___
At 31stMay 2021	1,768,124	3,622,926	4,157	-	£5,395,207
	__	__	__	______	___
INVESTMENTS				2022	2021
Subsidiary Interest At Cost				£100	£100
				____	____

Representing 100% of Ordinary Shares held for Vipassana Construction and Services Limited.

11.

DEBTORS	2022	2021
	£	£
Gift Aid Outstanding	17,698	6,878
Prepayments	6,588	5,672
RHI Subsidy	12,792	8,911
Other Debtors	26,519	30,480
Amounts owed by Subsidiary Undertaking	1,812	23,789
Loan to Subsidiary Undertaking	55,000	-
	_	_
	£120,409	£75,730
	_	_

Other debtors includes a loan of £25,000 from the North of England branch. It is confirmed that there are no fixed repayment terms for this loan: The loan is to Dhamma Sukhakari (an affiliated organisation of Vipassana Trust)

Loan to Subsidiary Undertakings:

This is a working capital loan to cover costs prior to commencement of the next phase of building. There is no specific repayment date, although it is confirmed that the loan will not be repayable within 12 months.

12. CREDITORS: Amounts falling due within one year


CREDITORS:Amounts falling due within one year	2022	2021
	£	£
Trade Creditors	36,815	16,844
Bank Loans	32,565	49,736
Loans from students and other centres	211,722	180,499
Taxation and Social Security	1,260	1,177
Accruals	24,050	20,479
Other Creditors	18,378	1,916
Solar Panel Grant	4,367	-
	_	_
	£329,157	£270,651
	_	_

(14)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

13.

CREDITORS:Amounts falling due after more than one year
2022
2021
£
£
Bank Loan
Due within 1 - 2 years
33,909
130,076
Due within 2 - 5 years
110,355
213,498
Due after 5 years
274,188
340,282
_
_
418,452
683,856
Loans from students and other centres:
Due within 1 - 2 years
217,409
284,434
Due within 2 - 5 years
393,845
88,913
Due after 5 years
2,243,122
2,138,895
_
_
2,854,376
2,512,242
Solar Panel Grant:
Due within 1 - 2 years
4,367
-
Due within 2 - 5 years
8,733
-
_
_
13,100
Nil
_
_
£3,285,928
£3,196,098
_
_

The Company bank loans are secured by the following charges:-

A legal charge in respect of the Freehold Property Dhamma Dipa, Harewood End, Hereford, HR2 8NG. A debenture including a fixed charge over all present freehold and leasehold property.

14.

PROVISIONS FOR LIABILITIES AND CHARGES	2022	2021
	£	£
Provision for future payment of reciprocal gifts	£17,002	£54,052
	_	_

Reciprocal gifts represent Dana given by centres across Europe to support the building of the European Long Course Centre. Loans were provided by local students to their respective European Trusts. This figure was then donated to Dhamma Padhana, on the understanding that Dhamma Padhana would make a reciprocal donation of the same amount back to each Trust, to facilitate repayment of these loans.

Whilst technically the only contract is between the student and their local Trust, Vipassana Trust has scheduled potential repayment dates of these reciprocal gifts, with some reciprocal gifts already having been repaid in full. The Trust recognises its commitment to repay these sums, hence the full provision for these figures in the Financial Statements.

15.

RESTRICTED FUNDS		Incoming /
	Balance as	(Outgoing)	Transfer of	Balance
	at 1st June 2021	Resources	Funds	31st May 2021
	£	£	£	£
Dhamma Padhana	1,522,827	(31,266)	-	1,491,561
	_	_	__	__
Outreach Fund	6,749	585	-	7,334
Kenya Fund	180	-	-	180
Grand Pagoda Fund (India)	2,047	(1,824)	-	223
Dhamma Tapovana Fund (India)	408	(408)	-	-
New Building Fund	7,007	3,326	-	10,333
Vipassana Research Institute (I	832	(547)	-	285
	______	_	__	__
	17,223	1,132	-	18,355
	_	_	__	__
	1,540,050	(30,134)	-	1,509,916
	_	_	__	__

(15)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

NOTES EXPLAINING NATURE OF FUNDS

Outreach Fund: for promoting the spread of Dhamma in the UK. New Building Fund: for the new building projects at Dhamma Dipa

Funds donated to Vipassana Trust on behalf of affiliated overseas organisations: Vipassana Research Institute (India) Grand Pagoda Fund (India) Dhamma Tapovana Fund (India) Kenya Fund

16. UNRESTRICTED FUNDS

UNRESTRICTED FUNDS
	Balance as	Incoming /	Transfer of	Balance
	at 1st June 2021	(Outgoing)	Funds	31st May 2022
		Resources
	£	£	£	£
Unrestricted Funds	1,583,565	105,015	-	1,688,580
	__	__	__	__
Designated Funds
East Anglia Fund	2,987	2,371	-	5,358
North of England	52,643	3,489	-	56,132
Scotland	4,767	1,351	-	6,118
	__	__	__	__
	1,643,962	112,226	-	1,756,188
	__	__	__	__

When Dana is given at the end of courses not held at Dhamma Dipa or Dana is given to further Dhamma in certain geographical areas within the UK it is made clear that such funds are of a ‘designated’ nature. That is the Trustees will apply such funds to that area or to other areas within the UK in line with the general objectives of the Trust.

Designated funds are allocated by the trustees for specific purposes. Any decision to designate funds requires express approval of the Trust.

With the exception of funds given to Dhamma Padhana, the Second Centre Fund and certain overseas Trusts it is Trust’s policy only to accept funds as ‘restricted’ in special circumstances and that, as far as possible, all Dana is given to assist with the spread of Dhamma throughout the UK in line with the Trust’s overall objectives.

17. RELATED PARTY TRANSACTIONS

There were no loans from Trustees to the charity still repayable at the year end (2021 £Nil).

Vipassana Trust holds a participating interest in Vipassana Construction and Services Limited. All transactions between the two Companies are at a strictly agreed commercial rate. Included in the other debtors figure at Note 11 in the accounts are amounts due from Vipassana Construction and Services Limited totalling £56,812 (2021 - £23,789). Included in the other creditors figure at Note 12 in the Accounts are amounts due to Vipassana Construction and Services Limited totalling £3,432 (2021 - £9,090)

18. COMPANY LIMITED BY GUARANTEE

Under the terms of the Company’s Memorandum and Articles every member of the Company undertakes to contribute to the assets of the Company if it is wound up during the time that they are a member, or within one year afterwards for payment of debts and liabilities of the Company contracted before they ceased to be a member, up to a maximum of £100.

19. CAPITAL COMMITMENTS

There were no capital commitments authorised by the board and contracted for.

Authorised but not contracted for: Maintenance building extension £14K

Design and Planning: £173K

20. CONTINGENT LIABILITIES

Since the completion of the Pagoda in July 2017, a defect with parts of the roof has become apparent, which will require replacement. The Trust, through its subsidiary Vipassana Construction and Services Limited (VCSL), has sought legal advice and, while VCSL will do its best to resolve this dispute without resort to litigation, it is possible that such litigation, with attendant fees, will be required with no guarantee of a successful outcome and recovery of those costs.

(16)

VIPASSANA TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2022

				Other
	Dhamma	Dhamma	East	Restricted	2022	2021
	Dipa	Padhana	Anglia Fund	Funds	Total	Total
Income
Dana	464,527	340,064	2,045	2,250	808,886	341,837
Gift Aid	82,399	39,831	395	2,156	124,781	46,072
	_	_	_	_	_	_
	546,926	379,895	2,440	4,406	933,667	387,909
Covid Grants	3,600	2,400	-	-	6,000	41,017
Bank Interest Received	724	699	-	-	1,423	14
Wayleaves	154	-	-	-	154	-
Feed in Tariff Income	4,196	-	-	-	4,196	4,982
Legacies	-	-	-	-	-	56,240
RHI Subsidy	37,146	18,573	-	-	55,719	41,009
Sundry Income	80	94	-	-	174	73
Foreign Exchange Gains	-	-	-	-	-	126,457
JRS Furlough Receipts	1,292	-	-	-	1,292	9,637
Capital Grant Income	2,183	2,183	-	-	4,366	-
	_	_	_	_	__	_
	596,301	403,844	2,440	4,406	1,006,991	667,338
	_	_	_	_	__	_
Expenditure
Other Course Expenses	8,173	3,769	-	-	11,942	3,691
Kitchen	111,067	61,944	-	-	173,011	82,347
Household	20,985	9,728	-	-	30,713	36,707
Maintenance	49,253	27,886	-	-	77,139	111,312
Office Costs	60,931	31,233	-	-	92,164	85,105
Utilities, Rates and Insurance	71,609	51,097	-	-	122,706	91,143
Motor Expenses	1,879	1,025	-	-	2,904	4,152
Financial Costs	4,088	2,670	69	12	6,839	3,238
Mortgage Interest and Loan Interest	14,766	46,682	-	-	61,448	70,060
Foreign Exchange Losses	-	91,007	-	-	91,007	-
Remitted Funds	-	-	-	3,262	3,262	-
Budgeted Maintenance Spend	68,828	16,023	-	-	84,851	-
Dhamma Sukhakari
- Monthly Contributions	-	-	-	-	-	15,000
- Donations	-	-	-	-	-	2,200
	_	_	_	_	_	_
	411,579	343,064	69	3,274	757,986	504,955
	_	_	_	_	_	_
Change in Current Assets	184,722	60,780	2,371	1,132	249,005	162,383
Depreciation	74,867	92,046	-	-	166,913	160,695
	_	_	_	_	_	_
Total Costs	486,446	435,110	69	3,274	924,899	665,650
	_	_	_	_	_	_
Net Gain / (Loss) for Year	109,855	(31,266)	2,371	1,132	82,092	1,688
	_	_	_	_	__	__
Balance of funds brought forward	1,640,975	1,522,827	2,987	17,223	3,184,012	3,182,324
Transfer	-	-	-	-	-	-
	_	_	__	_	__	__
	1,640,975	1,522,827	2,987	17,223	3,180,750	3,182,324
	_	_	_	_	__	__
Balance of funds carried forward	1,750,830	1,491,561	5,358	18,355	3,266,104	3,184,012
	_	_	_	_	__	__

Note that the above are balances of revenue reserves (income less expenditure) and do not reflect capital expenditure. To arrive at the figure for funds available for projects capital expenditure should be deducted. Please refer to notes 15 and 16.

The unrestricted funds total for Dhamma Dipa includes the following designated funds: -

North of England £56,132 (2021 - £52,643) Scotland £ 6,118 (2021 - £4,767)

(17)

This page does not form part of the statutory financial statements