**Charity Registration No. 507811**
## **GURU NANAK GURDWARA**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **GURU NANAK GURDWARA**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr Jagdev S Mavi|
|---|---|
||Mr Jora Singh|
||Mr Harbans Singh|
||Mr Harpal S Samra|
||Mr Sucha S Sohal|
||Mr Balbir Singh|
||Mr Joga S Khatkar|
||Mr Mohinder S Samra|
||Mr Surinder S Gill|
||Mr Major Singh|
||Mr Daljit S Sunner|
|**Secretary**|Mr Sarbjit S Khera|
|**Charity number**|507811|
|**Principal address**|127 West Bromwich Rd|
||Walsall|
||West Midlands|
||WS1 4DE|
|**Auditor**|Patara is a trading style of T S Patara & Co Ltd.|
||Financial House|
||352 Bearwood Rd|
||Bearwood|
||Birmingham|
||B66 4ET|
|**Bankers**|Barclays Bank Plc|
||The Bridge|
||Walsall|
||West Midlands|
|**Accountant**|A Dhillon & Co|
||61-63 Alexandra Rd|
||Walsall|
||West Midlands|
||WS1 4DX|
## **GURU NANAK GURDWARA**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of Trustees' responsibilities|5|
|Independent auditor's report|6 - 9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|15|
|Notes to the financial statements|12 - 21|
## **GURU NANAK GURDWARA**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity's objectives are provision of place of worship , promoting education and practise of Sikh religion including wedding ceremonies for the benefit of the local Sikh community . In addition to the religious services the Sangat is encouraged to engage with the charity. Educational services are provided not only in Punjabi but in wider curriculum as well as homework clubs and other activities. The charity also engages with other local and wider community charities to support needy causes. The Charity also promotes health and wellbeing by providing and holding health workshops and events.
The policies adopted in furtherance of these objectives are the provision of a place of worship (Gurdwara) in Walsall and there is no change in these during the year.
The aim of the charity is to support Sikh Community in Walsall and provide a place for functions and ceremonies for the benefit of the local Sikh community so they can practise their religion.
The objectives for the year is to provide a place of worship including provision of wedding ceremonies , Education, community engagement for the Elderly, health and wellbeing for the local Sikh community. To ensure that the Gurdwara is run in accordance with the wishes of the congregation (Sangat) .
The Charity raises enough money to be able to finance the running costs of the Gurdwara and accumulate money for future developments for the benefit of the local community. Sports in all ages is encouraged along with funding for local sports and youth clubs.
The criteria to assess success is the smooth operation of the activities at the Gurdwara to the satisfaction of the congregation and the local Sikh community.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Gurdwara (Temple) carried out the following activities during the year:
- The provision of a place of worship including a place for wedding ceremonies for the local Sikh community.
- Promote the basic principles of the Sikh religion.
- Promote education and sport in the community
- Generate rental income from investment properties within the vicinity of the temple to fund the activities of the Gurdwara.
The Gurdwara relies heavily on the use of volunteers from the community.
## **Achievements and performance**
- The charity is fulfilling its main objective of providing a place of worship and for the provision of wedding ceremonies for the local Sikh community satisfactorily.
- 1 -
## **GURU NANAK GURDWARA**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
- The charity makes donations to local community organisations with similar objectives if and when required.
- The charity continues to rent investment properties in order to raise income for the objective of the charity.
- The community celebrate s Gurpurabs every year with great energy along the New Year celebrations.
- Nagar Kirtan is done during April / May each year.
- Rental income has reduced substantially as a result of demolition of existing investment properties in order to construct a chapel of rest to support funeral services and six new houses for investment.
## **Financial review**
The Gurdwara (Temple) is funded by donations from the congregation as well as income from investment properties. The charity is operating satisfactorily and has surplus funds.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at least at a level equivalent to between six to twelve month's expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The principal sources of income is donations and rental income from investment properties. The income is used to provide a place of worship and for the wedding ceremonies for the local Sikh community and other activities set out above.
The Trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **COVID-19 & BREXIT.**
This has made an unprecedented global economic impact with lockdowns and business closures - the long term impacts are unclear.
The impact of COVID-19 on the financial statements is generally considered a non-adjusting event. The Gurdwara has had to close it's premises temporally in line with Government policy of dealing with CoVid 19 virus. The Gurdwara has resorted to Government Support in the form of Furlough scheme.
The Gurdwara's income and surplus has suffered as a result of lockdowns measures enforced by the Government but it has sufficient funds to survive in the short to medium term.
Although it is not yet possible to predict the overall potential impacts of the COVID-19 outlook on the overall UK economy and the uncertainty it causes, the Trustee's are confident that the discovery of the vaccine will reduce any major impact of COVID-19 on the Gurdwara.
The principal risks and uncertainties facing the Gurdwara is Brexit and the COVID-19. Brexit does not have direct impact on the Gurdwara other than that in line with the general effect on the British economy and the uncertainty it causes to the community in general. With regards COVID-19 the future is still uncertain but the Gurdwara is managing the risk in a satisfactory manner.
The plan to demolish existing investment properties in order to construct a chapel of rest to support funeral services and other investment properties is in operation although delayed due to CoVid19.
- 2 -
## **GURU NANAK GURDWARA**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
As the investment properties are being demolished they have been eliminated from the accounts and the value of the land has been transferred to freehold premises in the previous year.
The previous revaluation reserve for investment properties was reversed and the surplus loss is shown as loss on investment properties in the previous year.
## **Structure, governance and management**
The charity was established by a charitable trust deed (constitution) adopted 11th April 1978, as amended 1st May 1999 and is an unincorporated association.
Under the basic principal of Sikhism the premises are open to all with restriction that no alcohol or drugs are allowed on the premises.
The charity is registered with the Charity Commission for England and Wales.
The Trustees who served during the year were: Mr Jagdev S Mavi Mr Jora Singh Mr Harbans Singh Mr Harpal S Samra Mr Sucha S Sohal Mr Balbir Singh Mr Joga S Khatkar Mr Mohinder S Samra Mr Surinder S Gill Mr Major Singh Mr Daljit S Sunner
The trustees are appointed after wider consultation in the Sikh Community.
The Gurdwara is run by the community for the community with the help of a management committee under the control of the Trustees. The management committee is appointed from the congregation every two years.
The management committee consists of 2 General Secretaries 8 Treasurers and 4 Stage Secretaries together with other committee members as deemed necessary by the management committee.
D ecisions are made after consultation as per the constitution.
Trustees are encouraged to attend courses to keep themselves acquainted with the duties and responsibilities of the trustees.
The management committee provide their services on a voluntary basis.
The Gurdwara (Temple) works with the local community organisations in order to promote the objectives of the charity.
During the year the Charity made donations of £15,000 to NHS - Walsall, £6,000 to Sikh Hunters (Walsall FC) and £970 to Sikh Council Scotland.
During the year the Charity acquired an investment property.
The Gurdwara does not allow alcohol or drugs or people under the influence of alcohol or drugs on the premises.
- 3 -
## **GURU NANAK GURDWARA**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Gurdwara (Temple) does not have any related parties.
The Trustees' r eport was approved by the Board of Trustees.
## **Mr Balbir Singh**
Trustee Dated: 30 January 2022
- 4 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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 sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity constitution. They 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.
- 5 -
## **GURU NANAK GURDWARA**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF GURU NANAK GURDWARA**
## **Opinion**
We have audited the financial statements of GURU NANAK GURDWARA (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources, 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 Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 charity 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.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the 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 cast significant doubt on the charity’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 of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
- 6 -
## **GURU NANAK GURDWARA**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GURU NANAK GURDWARA**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the s tatement of Trustees' r esponsibilities, 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 Trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
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 .
- 7 -
## **GURU NANAK GURDWARA**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GURU NANAK GURDWARA**
## **The extent to which the audit was considered capable of detecting irregularities including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement 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 charity through discussions with trustees and other management and from our knowledge and experience in the relevant field.
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charity Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity’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; and
- 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;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.
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 enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
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 is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 8 -
## **GURU NANAK GURDWARA**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GURU NANAK GURDWARA**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Talwinder Patara BSc(Hons) BFP FCA FRSA (Senior Statutory Auditor) for and on behalf of Patara is a trading style of T S Patara & Co** 30 January 2022 **Ltd.**
**Chartered Accountants Statutory Auditor**
Financial House 352 Bearwood Rd Bearwood Birmingham B66 4ET
Patara is a trading style of T S Patara & Co Ltd. is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
- 9 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2021**|2020|
||**Notes**|
**£**|**£**|
|**Income from:**||||
|Donations and Gifts|**3**|186,724|530,317|
|Incoming resources from charitable activities||||
||**4**|-|1,200|
|Investment income.|**5**|5,646|48,280|
|**Total income**||192,370|579,797|
|**Expenditure on:**||||
|**Charitable activities**||||
|The costs of charitable activities carried out by the Gurdwara are as follows:||||
|Gurdwara Costs|**6**|140,097|253,258|
|Donations|**6**|21,970|26,326|
|Religion Promotion|**6**|-|14,424|
|Investment Income|**6**|1,388|1,992|
|**Total charitable expenditure**||163,455|296,000|
|Governance costs|**11**|1,350|1,850|
|**Total resources expended**||164,805|297,850|
|Net gains/(losses) on investments|**10**|-|(263,400)|
|Gross transfers between funds||-|(596,068)|
|**Net income/(expenditure) for the year/**||||
|**Net movement in funds**||27,565|(577,521)|
|Fund balances at 1 April 2020||7,309,939|7,887,459|
|**Fund balances at 31 March 2021**||7,337,504|7,309,939|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 10 -
## **GURU NANAK GURDWARA**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
Investment properties
**14**
**Current assets**
Debtors
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds - general|**2021**
**£**
**£**
5,911,997
136,406
6,048,403
10,385
1,288,748
1,299,133
(10,032)
1,289,101
7,337,504
7,337,504
7,337,504|**2020**
**£**
**£**
5,804,673
-
5,804,673
27,950
1,503,484
1,531,434
(26,168)
1,505,266
7,309,939
7,309,939
7,309,939|
|---|---|---|
The financial statements were approved by the Trustees on 30 January 2022
Mr Sucha S Sohal **Trustee**
- 11 -
## **GURU NANAK GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
During the year the Trustees eliminated fully depreciated fixture and fittings to the value of £100,000.00 from the financial statements. These represent fixtures and fitting which had become obsolete and consumed during the years.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Donations, legacies and other forms of voluntary income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.
Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.
## **1.5 Expenditure**
Governance costs includes legal and professional costs which are not capable of being allocated to any charitable activity.
The charity has only a few relevant activity categories on which resources are expended and as such the costs between the different categories are easily allocated without the use of any method of apportionment.
- 12 -
## **GURU NANAK GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## **Place of Worship**
The charity provides a place of worship , promoting education and practise of Sikh religion including wedding ceremonies for the benefit of the local Sikh community.
## **Donations**
The charity provides small amount of donations to local community organisations with similar objectives.
## **Religion Promotion**
The charity carries out various events to promote the basic principles of the Sikh religion.
## **Investment Income**
The Gurdwara has investment properties within the vicinity of the T emple to generate rental income to fund activities of the Gurdwara. The investment properties will be demolished and replaced with new chapel of rest to support funeral services and six new houses for investment.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings See note below. Fixtures, fittings & equipment 15% reducing balance Motor vehicles 10% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **No Depreciation.**
No depreciation is provided in respect of freehold land and buildings. The charity has a policy of regular maintenance and repair, so that the asset maintains its performance standards. The assets are not expected to suffer from economic or technological obsolescence and the estimated residual values are material. An impairment review is carried out annually on the tangible fixed assets other than nondepreciable land), at the end of each accounting period, where: - no depreciation is charged as it is deemed immaterial because of the length of the remaining useful economic life or where the estimated residual value is not markedly different from the carrying amount; or - the tangible fixed assets estimated useful economic life exceeds 50 years.
## **1.7 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
- 13 -
## **GURU NANAK GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## **1.11 Taxation**
The income/gains have been applied for charitable purposes only and as a result Section 505 ICTA 1988 provides for the exemption of charity's income from direct taxation.
- 14 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**20**
**Investing activities**
Purchase of tangible fixed assets
Purchase of investment property
Investment income received
**Net cash (used in)/generated from**
**investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
**£**
39,600
(123,576)
(136,406)
5,646
(254,336)
-
(214,736)
1,503,484
1,288,748|**2020**
**£**
**£**
257,146
(44,088)
-
48,280
4,192
-
261,338
1,242,146
1,503,484|
|---|---|---|
- 15 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3**
## **Donations and Gifts**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Donations and gifts|176,682|530,317|
|Grants receivable - Furlough Grant|10,042|-|
||186,724|530,317|
|**Donations and gifts**|||
|Donations and gifts|169,402|509,517|
|Donations and gifts in kind|7,280|20,800|
||176,682|530,317|
|The Charity receives gifts in kind mainly in the form of food as part of the congregational offerings. These|||
|gifts in kind are used as part of the free langer (food) and as part of the items required in the day to day|||
|running of the Gurdwara (Temple). The gifts in kind of food offering has been included in the accounts.|||
|The charity has not received any legacies during the year.|||
|**Grants receivable for core activities**|||
|JRS Grant|10,042|-|
||10,042|-|
- 16 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4**
## **Incoming resources from charitable activities**
||**2020**|
|---|---|
||**£**|
|Youth Opportunities grant|1,200|
## **5 Investment income.**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Rental income|3,675|43,295|
|Interest receivable|1,971|4,985|
||5,646|48,280|
- 17 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **6 Charitable activities**
**The costs of charitable activities carried out by the Gurdwara are as follows:**
|**Gurdwara**
**Costs**
**Donations**
**Religion**
**Promotion**
**Investment**
**Income**
**£**
**£**
**£**
**£**
Depreciation and
impairment
16,252
-
-
-
Rates
6,458
-
-
1,388
Property Insurance
13,688
-
-
-
Heat and Light
48,441
-
-
-
Food Supplies
12,242
-
-
-
Flowers and Decorations
-
-
-
-
Wages and NIC
19,967
-
-
-
Repairs and
Maintenance
12,454
-
-
-
Telephone
1,360
-
-
-
Motor and transport
expenses
1,495
-
-
-
Cleaning and sundry
expenses
5,461
-
-
-
Bank Charges
1,500
-
-
-
Stationery
779
-
-
-
Donations
-
15,970
-
-
Sponsorships of local
sports clubs
-
6,000
-
-
Religious Activities
-
-
-
-
140,097
21,970
-
1,388
140,097
21,970
-
1,388
**Analysis by fund**
Unrestricted funds -
general
140,097
21,970
-
1,388
140,097
21,970
-
1,388
**For the year ended 31 March 2020**
Unrestricted funds -
general
253,258
26,326
14,424
1,992
253,258
26,326
14,424
1,992|**Total**
**2021**
**£**
16,252
7,846
13,688
48,441
12,242
-
19,967
12,454
1,360
1,495
5,461
1,500
779
15,970
6,000
-
163,455
163,455
163,455
163,455|**Total**
**2020**
**£**
17,960
13,913
12,054
78,025
66,700
2,715
19,719
17,556
1,626
7,682
9,280
4,421
3,599
7,326
19,000
14,424
296,000
296,000
296,000
296,000|
|---|---|---|
- 18 -
**GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Description of charitable activities**
## Gurdwara Costs
Provision of place of worship , promoting education, sports and practise of Sikh religion including wedding ceremonies for the benefit of the local Sikh community.
## Donations
The charity provides small amount of donations to local community organisations with similar objectives.
## Religion Promotion
The charity promotes the basic principles of Sikh religion.
## Investment Income
The Gurdwara has investment properties within the vicinity of the temple to generate rental income to fund activities of the Gurdwara.
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
There are no transactions with the trustees other than their participation as members of the congregation.
## **9 Employees**
The average monthly number of employees during the year was:
||**2021**|**2020**|
|---|---|---|
||**Number**|**Number**|
|Preachers|3|3|
There were no employees whose annual remuneration was £60,000 or more.
## **10 Net gains/(losses) on investments**
|Revaluation of investment properties
Gain/(loss) on sale of investment properties|**Total**Unrestricted
funds
general
**2021**
2020
**£**
£
-
596,068
-
(859,468)
-
(263,400)|
|---|---|
- 19 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **11 Governance costs**
|Auditors' Remuneration
Legal and Professional Fees|**2021**
**£**
1,350
-
1,350|**2020**
**£**
1,350
500
1,850|
|---|---|---|
## **12 Taxation**
The income/gains have been applied for charitable purposes only and as a result Section 505 ICTA 1988 provides for the exemption of charity's income from direct taxation.
## **13 Tangible fixed assets**
|**Cost**
At 1 April 2020
Additions
Disposals
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Land and**
**buildings**
**£**
5,702,901
116,997
-
5,819,898
-
-
-
-
5,819,898
5,702,901|**Fixtures,**
**fittings &**
**equipment**
**Motor vehicles**
**£**
**£**
463,912
32,229
6,579
-
(100,000)
-
370,491
32,229
374,295
20,074
14,429
1,823
(100,000)
-
288,724
21,897
81,767
10,332
89,617
12,155|**Total**
**£**
6,199,042
123,576
(100,000)
6,222,618
394,369
16,252
(100,000)
310,621
5,911,997
5,804,673|
|---|---|---|---|
## **14 Investment property**
|**Fair value**
At 1 April 2020
Additions through external acquisition
At 31 March 2021|**2021**
**£**
-
136,406
136,406|
|---|---|
- 20 -
## **GURU NANAK GURDWARA**
## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **14 Investment property**
**(Continued)**
The trustees consider that the carrying amount of investment properties approximates to their fair value.
|**15**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**16**
**Creditors: amounts falling due within one year**
Accruals and deferred income|**2021**
**£**
10,385
**2021**
**£**
10,032|**2020**
**£**
27,950
**2020**
**£**
26,168|
|---|---|---|
## **17 Capital commitments**
The Gurdwara is undergoing a major development project of demolishing existing investment properties and replacing them with a chapel of rest to support funeral services and other investment properties. This project has ongoing capital commitment, the liability of which is determined as the project progress.
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2020 - None).
## 19 **Analysis of changes in net funds**
|The charity had no debt during the year.
**20**
**Cash generated from operations**
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
(Gain)/loss on disposal of investment property
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Cash generated from operations**|**2021**
**2020**
**£**
**£**
27,565
(577,521)
(5,646)
(48,280)
-
859,468
16,252
17,960
17,565
(5,311)
(16,136)
10,830
39,600
257,146|
|---|---|
- 21 -