2023-03-31-accounts

Charity registration number 507811

GURU NANAK GURDWARA

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

GURU NANAK GURDWARA

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr Balbir Singh
	Mr Mohinder S Samra
	Mr Major Singh
	Mr Daljit Singh Sunner
	Mr Talvinder Singh Bains
	Mr Avtar Singh Krothe
	Mr Lehmber Singh Gill
	Mr Mohan Singh
	Mr Jaswinder Singh Dhaliwal
	Mr Gurpal Singh Gill
Secretary	Mr Sukhdev Singh Bath
	Mr Kashmir Singh Bains
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 - 3
Statement of Trustees' responsibilities	4
Independent auditor's report	5 - 8
Statement of financial activities	9
Balance sheet	10
Statement of cash flows	11
Notes to the financial statements	12 - 21

GURU NANAK GURDWARA

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

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.

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GURU NANAK GURDWARA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

• 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 celebrates 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 have 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.

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 Balbir Singh Mr Mohinder S Samra Mr Surinder S Gill (Deceased 16 February 2023) Mr Major Singh Mr Daljit Singh Sunner Mr Talvinder Singh Bains Mr Avtar Singh Krothe Mr Lehmber Singh Gill Mr Mohan Singh Mr Jaswinder Singh Dhaliwal Mr Gurpal Singh Gill

The trustees are appointed after wider consultation in the Sikh Community.

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GURU NANAK GURDWARA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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.

Decisions 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 £5,000 to Nishkam Jatha, £950 to Sikh channel, £2,000 to Sikh Hunters (Walsall FC) and £11,250 to Walsall Asian Football.

The Gurdwara does not allow alcohol or drugs or people under the influence of alcohol or drugs on the premises.

The Gurdwara (Temple) does not have any related parties.

The Trustees' report was approved by the Board of Trustees.

Mr Balbir Singh

Trustee Dated: 4 February 2024

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GURU NANAK GURDWARA

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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.

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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 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 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 2023 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.

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' report; 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.

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GURU NANAK GURDWARA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GURU NANAK GURDWARA

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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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: https:// 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 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 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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GURU NANAK GURDWARA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GURU NANAK GURDWARA

Patara is a trading style of T S Patara & Co Ltd.

Chartered Accountants Statutory Auditor

4 February 2024 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 section 1212 of the Companies Act 2006.

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GURU NANAK GURDWARA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted	Unrestricted
		funds	funds
		2023	2022
	Notes	£	£
Income from:
Donations and legacies	3	696,154	556,838
Investments	4	10,892	8,421
Total income		707,046	565,259
Charitable activities
Gurdwara Costs	5	430,899	250,525
Donations	5	19,200	9,125
Religion Promotion	5	13,008	9,694
Investment Income	5	22,741	16,678
Total charitable expenditure		485,848	286,022
Other expenditure	10	1,850	1,620
Total expenditure		487,698	287,642
Net income and movement in funds		219,348	277,617
Reconciliation of funds:
Fund balances at 1 April 2022		7,615,121	7,337,504
Fund balances at 31 March 2023		7,834,469	7,615,121

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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GURU NANAK GURDWARA

BALANCE SHEET

AS AT 31 MARCH 2023

Notes Fixed assets Tangible assets 11 Investment property 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities The funds of the charity Unrestricted funds	2023 £ £ 6,265,507 646,406 6,911,913 34,193 928,173 962,366 39,810 922,556 7,834,469 7,834,469 7,834,469	2022 £ £ 6,094,532 136,406 6,230,938 38,427 1,382,521 1,420,948 36,765 1,384,183 7,615,121 7,615,121 7,615,121	2022 £ £ 6,094,532 136,406 6,230,938 38,427 1,382,521 1,420,948 36,765 1,384,183 7,615,121 7,615,121 7,615,121
			6,230,938 1,384,183
			7,615,121
			7,615,121
			7,615,121

The financial statements were approved by the Trustees on 4 February 2024

Mr Balbir Singh Trustee

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GURU NANAK GURDWARA

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes Cash flows from operating activities Cash generated from operations 18 Investing activities Purchase of tangible fixed assets Purchase of investment property Investment income received Net cash used in 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	2023 £ £ 233,977 (189,217) (510,000) 10,892 (688,325) - (454,348) 1,382,521 928,173	2022 £ £ 283,742 (198,390) - 8,421 (189,969) - 93,773 1,288,748 1,382,521

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

GURU NANAK GURDWARA is a charity established by a charitable trust deed (constitution ) adopted 11th April 1978, as amended 1st May 1999 and is an unincorporated association..

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 amounts 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.

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.

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

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 it's vicinity to generate rental income to fund activities of the Gurdwara. Some investment properties have been demolished and will be replaced with new chapel of rest to support funeral services and six new houses.

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 the statement of financial activities.

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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 non-depreciable 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 property

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.

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.

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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 payments 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.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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 Income from donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Donations and gifts	696,154	553,343
JRS Grant	-	3,495
	696,154	556,838

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Income from donations and legacies		(Continued)
	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Donations and gifts
Donations and gifts	683,374	544,243
Donations and gifts in kind	12,780	9,100
Other	-	-
	696,154	553,343
Grants receivable for core activities
JRS Grant	-	3,495
	-	3,495

3 Income from donations and legacies

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.

4 Income from investments

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Rental income	7,200	7,400
Interest receivable	3,692	1,021
	10,892	8,421

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

5 Expenditure on charitable activities

Gurdwara Costs Donations Religion Promotion Investment Income 2023 2023 2023 2023 £ £ £ £ Direct costs Depreciation and impairment 18,242 - - - Rates 3,378 - - 22,741 Property Insurance 20,086 - - - Heat and Light 153,406 - - - Food Supplies 122,335 - - - Wages and NIC 30,505 - - - Repairs and Maintenance 48,167 - - - Telephone 1,453 - - - Motor and transport expenses 1,399 - - - Cleaning and sundry expenses 26,167 - - - Bank Charges 4,280 - - - Stationery 1,481 - - - Donations - 12,000 - - Other charitable expenditure - 7,200 13,008 - 430,899 19,200 13,008 22,741 Analysis by fund Unrestricted funds 430,899 19,200 13,008 22,741	Total 2023 £ 18,242 26,119 20,086 153,406 122,335 30,505 48,167 1,453 1,399 26,167 4,280 1,481 12,000 20,208
	485,848
	485,848

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5	Expenditure on charitable activities					(Continued)
	Previous year:	Gurdwara	Donations	Religion	Investment	Total
		Costs		Promotion	Income
		2022	2022	2022	2022	2022
		£	£	£	£	£
	Direct costs
	Depreciation and impairment	15,855	-	-	-	15,855
	Rates	2,978	-	-	16,678	19,656
	Property Insurance	14,126	-	-	-	14,126
	Heat and Light	69,395	-	-	-	69,395
	Food Supplies	69,195	-	-	-	69,195
	Wages and NIC	25,324	-	-	-	25,324
	Repairs and Maintenance	28,007	-	-	-	28,007
	Telephone	1,094	-	-	-	1,094
	Motor and transport expenses	1,743	-	-	-	1,743
	Cleaning and sundry expenses	17,269	-	-	-	17,269
	Bank Charges	3,716	-	-	-	3,716
	Stationery	1,823	-	-	-	1,823
	Donations	-	3,125	-	-	3,125
	Other charitable expenditure	-	6,000	9,694	-	15,694
		250,525	9,125	9,694	16,678	286,022
	Analysis by fund
	Unrestricted funds	250,525	9,125	9,694	16,678	286,022

6 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.

7 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.

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Employees

The average monthly number of employees during the year was:

Preachers There were no employees whose annual remuneration was more than £60,000.	2023 Number 4	2022 Number 5

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

9 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.

10 Governance costs

Auditors' Remuneration Tangible fixed assets Cost At 1 April 2022 Additions At 31 March 2023 Depreciation and impairment At 1 April 2022 Depreciation charged in the year At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022	Land and buildings £ 6,004,690 154,519 6,159,209 - - - 6,159,209 6,004,690	Fixtures, fittings & equipment £ 384,089 34,698 418,787 303,029 17,364 320,393 98,394 81,060		2023 £ 1,850 1,850 Motor vehicles £ 32,229 - 32,229 23,447 878 24,325 7,904 8,782	2022 £ 1,620
					1,620
					Total £ 6,421,008 189,217
					6,610,225
					326,476 18,242
					344,718
					6,265,507
					6,094,532

11 Tangible fixed assets

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Investment property Fair value At 1 April 2022 Additions through external acquisition At 31 March 2023	2023 £ 136,406 510,000
	646,406

The trustees consider that the carrying amount of investment properties approximates to their fair value.

13 Debtors Amounts falling due within one year: Other debtors 14 Creditors: amounts falling due within one year Accruals and deferred income	2023 £ 34,193 2023 £ 39,810	2022 £ 38,427
		2022 £ 36,765

15 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds Previous year: General funds	At 1 April 2022 Incoming resources Resources expended At 31 March 2023 £ £ £ £ 7,615,121 707,046 (487,698) 7,834,469 At 1 April 2021 Incoming resources Resources expended At 31 March 2022 £ £ £ £ 7,337,504 565,259 (287,642) 7,615,121

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GURU NANAK GURDWARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Capital commitments

Amounts contracted for but not provided in the financial statements:

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.

17 Related party transactions

There were no disclosable related party transactions during the year (2022 - None).

18 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: Decrease/(increase) in debtors Increase in creditors Cash generated from operations	2023 £ 219,348 (10,892) 18,242 4,234 3,045 233,977	2022 £ 277,617 (8,421) 15,855 (28,042) 26,733 283,742

19 Analysis of changes in net funds

The charity had no debt during the year.

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