## Manchester Buddhist Centre
## Statement of Financial Activities
for the year ended 31 December 2021 Unrestricted Restricted Total funds _Total funds_ funds funds 2021 _2020_ Note £ £ £ _£_ **Income from:** Donations and legacies 3 113,473 30 113,503 _138,755_ Charitable activities 4 127,167 - 127,167 _144,040_ Investments 5 - - _35_ **Total income 240,640 30 240,670** _**282,830**_ **Expenditure on:** Charitable activities 6 256,277 - 256,277 _267,273_ **Total expenditure 256,277 - 256,277** _**267,273**_ **Net income/(expenditure) for the year** 7 **(15,637) 30 (15,607)** _**15,557**_ Transfer between funds - - - _-_ **Net movement in funds for the year (15,637) 30 (15,607)** _**15,557**_ **Reconciliation of funds** Total funds brought forward 769,386 6,654 776,040 _760,483_ **Total funds carried forward 753,749 6,684 760,433** _**776,040**_ 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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Manchester Buddhist Centre
## Balance Sheet
as at 31 December 2021 Note 2021 _2020_ £ £ _£ £_ **Fixed assets** Tangible assets 10 705,396 _725,275_ **Total fixed assets 705,396** _**725,275**_ **Current assets** Stock 16,867 _17,610_ Debtors 11 11,477 _2,763_ Cash at bank and in hand 94,263 _109,344_ **Total current assets 122,607** _**129,717**_ **Liabilities** Creditors: amounts falling due in less than one year 12 (39,910) _(36,104)_ **Net current assets 82,697** _**93,613**_ **Total assets less current liabilities** 788,093 _818,888_ Creditors: amounts falling due after more than one year 13 (27,660) _(42,848)_ **Net assets 760,433** _**776,040**_ **Funds of the charity:** Restricted income funds 14 6,684 _6,654_ Unrestricted income funds 15 753,749 _769,386_ **Total charity funds 760,433** _**776,040**_ The notes on pages xyz to xyz form part of these accounts. Approved by the trustees on ___/___/2022 and signed on their behalf by: Chris Effendowicz (Trustee)
17
## Manchester Buddhist Centre
Statement of Cash Flows for the year ending 31 December 2021
Note 2021 _2020_ £ _£_
**Cash provided by/(used in) operating activities** 18 **(15,081)** _**47,132** Cash flows from investing activities:_ Dividends, interest, and rents from investments - _35_ **Cash provided by/(used in) investing activities -** _**35**_ Increase/(decrease) in cash and cash equivalents in the year (15,081) _47,167_ Cash and cash equivalents at the beginning of the year 109,344 _62,177_ **Cash and cash equivalents at the end of the year 94,263** _**109,344**_ 18
Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021
**1 Accounting policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows: **a Basis of preparation** The financial statements have been prepared in accordance with 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), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Accounting Practice. The accounts (financial statements) have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following 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), second edition - October 2019, rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Manchester Buddhist Centre meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. **b Preparation of the accounts on a going concern basis** The financial statements have been prepared on the going concern basis, as the trustees are confident that the charity will continue to be able to meet its liabilities as they fall due. Donations, primarily via standing orders have held up well, and show no sign of declining. With the re-opening in April 2021 more normal forms of income are beginning to build, though it is predicted that the year will be characterised by losses as furlough ends and attendance at events is still partial and hesitant. This is all to be expected after the pandemic restrictions and public anxiety, but the reserves increased considerably over lockdown, and are available to service this period until losses are eliminated. Business rental incomes are slowly building back up, albeit that the café space is empty again and further offers need investigating. Community occupancy is also slowly increasing with consequent improvement in rent income.
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
**b Preparation of the accounts on a going concern basis (cont.)**
Splitting the rating structure of the building into separate businesses has also, eventually, led to a 2k pa permanent reduction in rates bills for the building. It is also to be noted that the two North Manchester communities' mortgages only have only approximately 2 and 1.5 years to run (after the 12 month capitol payments holiday), so costs will drop permanently by 1.9k in two years time. However, the most significant financial impact is the considerable reduction in paid staff levels. 1.8 roles have ended, and all but one of the further roles have reduced by one or two days per week. This means that staff costs will decline over late 2020 to mid 2021 by 25-30%. As staffing costs are the single highest expenditure, this will contribute considerably to financial stability. Meanwhile the volunteer community is slowly but significantly taking up vacated workloads. Retreats and courses, though currently less attractive to more anxious, older community members, are being well attended by newer, younger Sangha members who are very energetic and pleased to occupy the building. 2021 is therefore a considerable transition year through reduction in structural costs, though temporary fuel costs will rise, balanced by lower income through lower attendance for some little time yet. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
## **c Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material. Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met. **d Donated services and facilities** Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. **e Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
## **f Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity. **g Expenditure and irrecoverable VAT** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Expenditure on charitable activities includes the costs of running the Manchester Buddhist Centre undertaken to further the purposes of the charity. - Other expenditure represents those items not falling into any other heading. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. **h Operating leases** Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease. **i Tangible fixed assets** Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows: Per annum Buildings (excluding value of land) 2% Library 5% Ground floor refurbishment 10% Fixtures & fittings 25%
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
## **j Stock**
Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. **k Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. **l Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. **m Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. **n Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
## **o Pensions**
**----- Start of picture text -----**
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme.
The charity’s contribution is restricted to the contributions disclosed in note 8. There were no
outstanding contributions at the year end.
2 Legal status of the charity
The charity is an unincorporated charity, registered as a charity in England & Wales. The
registered office address is disclosed on page 1.
3 Income from donations and legacies
Current reporting
period Unrestricted Restricted Total 2021
£ £ £
Donations 83,263 30 83,293
Coronavirus Job Retention Scheme 30,210 30,210
Total 113,473 30 113,503
Previous reporting
period Unrestricted Restricted Total 2020
£ £ £
Donations 92,561 11 92,572
Coronavirus Job Retention Scheme 46,183 - 46,183
Total 138,744 11 138,755
DRAFT
**----- End of picture text -----**
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Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
**4 Income from charitable activities Current reporting period** Unrestricted Restricted Total 2021 £ £ £ **Fees and other income** Room Hire - - - Bookshop Sales 19,740 - 19,740 Charges for classes/events 28,640 - 28,640 Rental Income: Right Livelihood Businesses 26,383 - 26,383 Spiritual Communities 52,404 - 52,404 **Total** 127,167 - 127,167 _**Previous reporting period** Unrestricted Restricted Total 2020 £ £ £_ _**Fees and other income** Room Hire 3,934 - 3,934 Bookshop Sales 16,338 - 16,338 Charges for classes/events 32,362 - 32,362 Rental Income: Right Livelihood Businesses 26,710 - 26,710 Spiritual Communities 64,696 - 64,696_ _**Total** 144,040 - 144,040_ 25
Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
## **5 Investment income**
All of the charity's investment income arises from money held in interest bearing deposit accounts. All investment income is unrestricted. **6 Analysis of expenditure on charitable activities** Total 2021 _Total 2020_ £ £ Staff costs 153,471 _158,833_ Bookshop stock & expenses 11,246 _10,607_ Services/Utilities 23,835 _28,547_ Maintenance/H&S 11,300 _9,192_ Administration 13,648 _21,518_ Loans/mortgages/interest 1,992 _2,192_ Depreciation 19,879 _19,988_ Other costs 15,760 _13,477_ Governance costs 5,146 _2,919_ 256,277 _267,273_ 2021 _2020_ £ _£_ Restricted expenditure - - Unrestricted expenditure 256,277 267,273 256,277 267,273 26
Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
**7 Net income/(expenditure) for the year** This is stated after charging/(crediting): 2021 _2020_ £ _£_ Depreciation 19,879 19,988 Independent examiner's remuneration: Independent examination 600 _600_ Accountancy fees 1,442 _1,350_ **8 Staff costs** Staff costs during the year were as follows: 2021 _2020_ £ _£_ Wages and salaries 136,208 _144,791_ Social security costs 2,254 _2,621_ Pension costs 1,950 _2,106_ Team support 2,444 _1,100_ Training 10,615 _8,215_ 153,471 _158,833_ No employees has employee benefits in excess of £60,000 (2020: Nil). The average number of staff employed during the period was xyz (2020: 11). The Manchester Buddhist Centre operates a flat management structure, with decisions being taken collectively by staff. The key management personnel of the charity comprise the trustees and the staff team. The total employee benefits of the key management personnel of the charity were £xyz (2020: £149,518).
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Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
|**9**|**Trustee remuneration and expenses, and related party transactions**|
|---|---|
||The charity is part of a network of connected charities, similar organisations, each of which is|
||legally autonomous. The various charities in the network co-operate in their shared objectives of|
||advancing the Buddhist religion. Specifically, the charity aims to contribute financially to the|
|DRAFT
Dayanandi is a tenant in one of the community houses.
The transactions between the charity and the above related parties are as follows:
2021
_2020_
£
_£_
The Clear Vision Trust
_1,346_
Earth Café
_4,560_
Bodywise
_12,909_
Breathworks
_6,944_
One Tek
_350_
Abhayaratna Trust
_600_
Dayanandi, trustee and tenant
_3,538_
2021
_2020_
£
_£_
Acharashraddha
_13,626_
Vishangka
_14,017_
Silabodhi
_12,579_
Triratna Development Fund, an organisation which provides help and guidance to Triratna
centres. In 2021, the charity made a payment of £xyz to this fund.
Support received by the Trustees in 2020 are as
follows:
The charity’s rules allow for support – such as living allowances mentioned above – to be given to
the Trustees (ie. members of the charity’s council who are members of the Triratna Buddhist
Order).
Otherwise, the Trustees have not claimed any expenses in 2021.
The charity rents out parts of the main building to other businesses which are connected with the
centre. These are: Breathworks, a company that teaches mindfulness-based approaches to
managing pain and other chronic conditions; and Bodywise, a company that offers complementary
therapies (such as massage, acupuncture, and shiatsu) as well as teaching yoga and Chi Kung.
During 2020 The Clear Vision Trust ceased to operate in the year, meaning some months rents
were lost. However, OneTek, an ethical Fast Fibre business, took the space and began to pay rent
towards the end of the year. Sadly Earth cafe ceased trading, and all rent from the basement
space was lost. Work began to find a replacement asap.
Rental income to the charity:||
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Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
**10 Fixed assets: tangible assets** Freehold Office and Land and Computer Total Buildings Equipment Library **Cost** £ £ £ £ At 1 January 2021 909,129 51,400 2,409 962,938 Additions - - - - At 31 December 2021 909,129 51,400 2,409 962,938 **Depreciation** At 1 January 2021 185,517 49,746 2,400 237,663 Charge for the year 18,216 1,654 9 19,879 At 31 December 2021 203,733 51,400 2,409 257,542 **Net book value** At 31 December 2021 705,396 - - 705,396 _At 31 December 2020 723,612 1,654 9 725,275_
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Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
**11 Debtors** 2021 _2020_ £ _£_ HMRC (tax for Gift Aid donations) 1,920 _2,266_ Prepayments 9,557 _247_ Other debtors - _250_ 11,477 _2,763_ **12 Creditors: amounts falling due within one year** 2021 _2020_ £ _£_ Triodos Mortgages 21,415 _20,894_ Other Creditors and Accruals 17,656 _14,645_ Taxation and social security costs 839 _565_ 39,910 _36,104_ **13 Creditors: amounts falling after more than one year** 2021 _2020_ £ _£_ Personal Loan 2,250 _2,250_ Triodos Mortgages 25,410 _40,598_ 27,660 _42,848_ Repayable after more than 5 years by instalments - _-_ The Triodos mortgages were taken out to purchase 2 & 4 Healey Close Salford and the mortgages are secured on the properties with variable interest rates. The mortgages are repaid on a capital and interest basis by regular monthly payments over a repayment profile of 12 years. The mortgages represent xyz% of the carrying value of the properties.
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Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
|DR
**14**
**Analysis of movements in restricted funds**
Balance at 1
January
2021
Income
£
£
921
30
4,478
-
1,255
-
Total
6,654
30
_Balance at_
_1 January_
_2020_
_Income_
_£_
_£_
_910_
_11_
_4,478_
_-_
_1,255_
_-_
_Total_
_6,643_
_11_
_Stan Kukalowisz_
_Bursury Fund_
_Vajra Hall Fund_
Stan Kukalowisz
Bursury Fund
**_Previous reporting_**
**_period_**
Vajra Hall Fund
Other
_Other_
**Current reporting**
**period**
31|Expenditure
£
-
-
-
-
_Expenditure_
_£_
_-_
_-_
_-_
_-_|Transfers
£
-
-
-
-
_Transfers_
_£_
_-_
_-_
_-_
_-_|T
Balance at
31
December
2021
£
951
4,478
1,255
6,684
_Balance at_
_31_
_December_
_2020_
_£_
_921_
_4,478_
_1,255_
_6,654_|
|---|---|---|---|
Manchester Buddhist Centre
Notes to the accounts for the year ended 31 December 2021 (continued)
**14 Analysis of movements in restricted funds (cont.)** Stan Kukalowisz This money has been donated specifically to the fund to enable those with Bursury Fund low incomes to be able to apply for a Bursury. This can be used primarily to pay for or contribute towards the cost of our local residential retreats organised by the Manchester Buddhist Centre. Vajra Hall Fund This is money fundraised to enable us to fit secondary glazing to the windows of the Vajra Hall Shrine room. Other Other smaller restricted amounts collected and dispersed during the year **15 Analysis of movement in unrestricted funds Current reporting** Balance at As at 31 **period** 1 January December 2021 Income Expenditure Transfers 2021 £ £ £ £ £ General fund 769,386 240,640 (256,277) - 753,749 769,386 240,640 (256,277) - 753,749 _**Previous reporting** Balance at As at 31_ _**period** 1 January December 2020 Income Expenditure Transfers 2020 General fund 753,840 282,819 (267,273) - 769,386 753,840 282,819 (267,273) - 769,386_ **Name of Description, nature and purposes of the fund unrestricted fund** General fund The free reserves after allowing for all designated funds
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Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
**16 Analysis of net assets between funds** General Designated Restricted fund funds funds Total £ £ £ £ Tangible fixed assets 705,396 - - 705,396 Other net current assets/(liabilities) 76,013 - 6,684 82,697 Creditors of more than one year (27,660) - - (27,660) Total 753,749 - 6,684 760,433 _**Previous reporting period** General Designated Restricted fund funds funds Total £ £ £ £ Tangible fixed assets 725,275 - - 725,275 Other net current assets/(liabilities) 86,959 - 6,654 93,613 Creditors of more than one year (42,848) - - (42,848) Total 769,386 - 6,654 776,040_ 33
Manchester Buddhist Centre
## Notes to the accounts for the year ended 31 December 2021 (continued)
**17 Financial instruments** Financial instruments measured at amortised cost comprise the loan financing provided by Triodos bank to the charity. 2021 _2020_ £ _£_ Loan payable falling due within one year 21,415 _20,894_ Loan payable falling due in more than one year but in less than five years 25,410 _40,598_ 46,825 _61,492_ The Triodos mortgages were taken out to purchase 2 & 4 Healey Close Salford and the mortgages are secured on the properties with variable interest rates. The mortgages are repaid on a capital and interest basis by regular monthly payments over a repayment profile of 12 years. The mortgages represent xyz% of the carrying value of the properties. **18 Reconciliation of net movement in funds to net cash flow from operating activities** 2021 _2020_ £ _£_ **Net income/(expenditure) for the year** (15,607) _15,557_ **Adjustments for:** Depreciation charge 19,879 _19,988_ Dividends, interest and rents from investments - _(35)_ Decrease/(increase) in stock 743 _1,637_ Decrease/(increase) in debtors (8,714) _15,914_ Increase/(decrease) in creditors (11,382) _(5,929)_ **Net cash provided by/(used in) operating** (15,081) _47,132_
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