RECISTFRED CHAIUTY NUMBER: 801632 CHARITY COMMISSION REPORT OF THE T USTEES ALYD UNA ED FINANCIAL EMED4TS FOR THE YEAR EIYDED 31 DECEMBER 2025 FOR THE NALANDA TRUST FI CRT Limited &c 24 Wellingtonia Court Laine Close Brigkton East Sussex BNI 6fD THE NALANDA TRUST COLYTl4 NTS FINANCL4L STA TEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Page Report of the Tru$tee5 TndependelltExamlner's Report 10 Statejllent of FthatteiAI Actlyltles Balance Sheet 12 Notss to th¢ Finalleial Statements 13 to 21 THE NALANDA TRUST REPORT OF THE TRUSTEE FOR THE ELNDED 31 DECEMBE The twt¢6s pr¢sent their report Ivith the financial ststeinents of tILe charity Eoi the year eDded 31 Deceinber 2025. 'llie truste¢$ have adopted the PrnViSiODS of Accountit)g and Reporting by ChariÉie5'. Statement of Recomm6nded PrabticE applicable to charities preparing their aceoiLlll8 in accwd&nee with the Pit￿n£la1 ReportiD8 StalldaFd applicable in the UK and Rtpublic of IrelarLd {FRS 102) (Èffective l Jalluary 2019). OBJECTIVES AND ACTIVITIES Objeetiiie5 and The charity objectives are the advzncernent of the Buddhist religion in particular by". lEncoUragi￿ members and others to live m accordance ihe teachings of the Blld(th& 2.Supportin¥ ordained members of the Triratna Buddhist ComDllinity and other duly ordained Buddhisw at the discretion of the Council of the A&so¢iatiO]L . MaThtaining close ¢oll)munication witb and worlang under the guidance of the TriL7tDa Buddhist Onler and in cooper&tion with other groupswith the sa￿e objectives. 4.U5ingJ applicaliolls of the Buddha'5 teaching to promote the health and well-beinLi of all. Page I THE NALANDA TRUST REPORT OF T TRUSTEE5 OR THE AR ENDED EMBER 2025 OBJErfivES AiYD ACTivrriES Svgnifieant aetivitits li i5 a joy to preseth this r¢port on Ibe life of the North Loudoll Buddhist Centse 2025. Ttlis has bern a year of trall5iTion- we slartcd the year with & need io a(Idr¢ss immediate challeijges which shifted into a period of ¢onsoli(lation, and growth. What Collows is a testament to the dedication of our teaDL local order nLeinber4 Jnitras, donor volunteers, teacheT& and the vll)raDt spirit of our communiry - including all our r¢S￿l4r$, friei)ds. and those of you jusi passing through or ttying it outl The Noth London Buddhist Ce]fft otfers courses a￿a classes in mediratioll, BuddhisnL YO￿ and other activities to promote healt]L happiness and well-being. Its ain) is to develop a Buddhi￿ prnctice ¢ommunity in the ciry relevant to our lives in th¢ 21st Qnrwy. It is part of an ititemational network of the TriTatna Buddhist CotnmLWity whi¢h has over 80 ntres WQTld-wide. Our Team The Contre continues to thTive through the &¥trnordinary generosity of our Sallgba. Tbroughout 2025, Ihave boen inoved by the moLf thall 100 people w￿0 gave iheir tI￿e so fteely - from the reception desk and arrangi1￿ $hTillO floweTS fo supporting courses and cleaning the floors. Sotne Departures The year brougbl a number oldepartures to our Council attd Core centre teaTD.' I W￿￿t to &xtend a heartfelt thallk you to Ku5ala, who"5tepFKd fro￿ the council of Trusiees in May aft¢r mDTe than ten years ol's¢rYice, and Kshantisar4 stepped down tkcernber. I particularly sratEful to Kshantisara for her suppgrt a5 Council Secretary dwing my fiTSt two years as Chair. - To address the 2024 f￿ancIal deficit and Tising costs, we ]nd to make the difficuh d¢¢isi(m to restrllctUEe our This resulted the redundancies of Sl]vla (Communications) alld Anandavalra (B￿lId￿g Manager). J am Pl&￿d to Teport that Silvia is doing well in the West IA)ttdon Bllddhist Celltre team. I am also delighted that Anandavajra reJn8iDS a Vltal part o£the NLBC ¢on]munity and conti￿UeS as a Tn¢mber of our Council of Trustees. - T also want io thank SeYen#, who $t¢pped b￿k fyom ma￿1￿8 knokshop in July. Th¢ Centre Tea￿. Ollr Et)gine roojn L retnain deeply &Tatefid foT the ￿ergetiC work and dedicated altrllism ofour tore centre team.. maitrish￿ra has been a h￿01¢ 8ddttion to the ieam as Centre MallageT. biingillg a d¢terryJined zeal, p091tivity and ap3bility. He recethly also took ot) ih¢ n)1¢ of Men's Mitra ConvenoT. Prasadasara reJnaiDS a star of lifr at the centr¢, she coordi11a*$ our bodywork proje /0 since then. Thi$ e])sures that we can upgraded fire-escape locks andnew cathon monoxide alarffls. We ajgo wot*'ed to create more fill￿tIOnal a￿d illviiij2g environments forthe Sangha: The Llbrary.. W¢ have coFJipletely transforn￿d the unpoeticalty tilled 'multiPUTpose Toom, . p&inrin& sanding d floors, alld installing shelvillg. It is wonderful to f1nally see all the book5 in yla¢? al￿ the tWD] bell￿F Use(L - Shrlllekeeplng.. Moving tho meamt we Could rationalize the shrÉDe room cupboard and ajlowed owcollection of n]yas to be stored with the beauty aTJd [T5P￿t they deseive. - Small ShriDe Roorn: We iustalled new, efficieat panel hel￿$ aT]d have b¢gun the dejigm ph￿¢ for a new upgraded shvine. Kitchell: We nude functionol up.(ryades lo our li￿ting aTLd water healing Syste￿ to ensure a ￿ore consistent and ener&Y-¢fficient supply for everyone using tlie builth"ftg. ID 2U26, we wi]I focus on the aestbetic and envirotune41tAI quality of our rnoms. Projects oll tILe borizA)n include coinmissiimin8 new sbrin¢ tables, buyin(F new m￿ltation chai￿, atkd addiDg secondary ￿aLl￿6[ to ITnprove heHt reL'ention and noise yeduction in botb 5hrin¢ roi)DJs. A5 building llkatHgetnent responsibilitit5 transltion lo ib¢ Centrt Manager, SÉ ttaiiE re5tructur¢, we will adopt a more focused appEoadi. Our PriOTity will be tllaintainitLg cornpliallce while being S¢]￿tiV¢ with new renovatio￿4 ensuring pri￿7t1Ze projects that Jnost directly support and enhance the lÈfe of the Centre. P￿re 5 THE NALA UST REPORT F THE TRUSTEES FOR THE YEA ETr4DED 31 DECEMBER 2025 Fif+lANCIAL RETrIEW Financial position 2025 represellted a Si￿]fIcant financial recovery and a madced improveJllenLon the provious year. l am pleased to report that w¢ ended the year with a surplus of approxlmately £8,01￿ in OUT bat￿. Tbis 15 a vital step in reslorillg our finattcia] heawl aftof OUT financial challenges of 2024. Ending 2025 with a fair SUTplug 8Jlows lls to bogin r¢buildillg ow. fmancial resÈrves thead of schedule. We iejnain about £30.000 short ot our ￿serVeS poli¢y to hold thre¢ month5 of expendihre {iu compliollce with Charity Conynission guidance), but we ar¢ J)ow on tra¢k to signAfic￿tlY close that gap by tho ond ot 2026 and it)ro 2027 we ho￿ io recoupthe full a]iiounl we are Tequired to hold. In¢ome Our in¢om¢ g￿W &cr035 3eveTai key areas, detnonsLTatillg both the Songha's engagement alld the effertiyelless of o new prtsj¢¢ts. Our Buddhism and Meditation courses perfornied exceptionally well. and B(Klywork was a pdrti¢ulw' standimL fiDisbing ne￿ty £5.000 ahead of last year'4 figures. Retreats also saw & strong recovery. thatths to our well-attsnded December weekend &L V8irasana and the addition of a F¢bruary retreat at Othot)a. DOn￿lon5 (both momhly and on¢-off5) outperfonDed exptctation5. pniving that iht NoTth London Buddbist Ceutre Gan r¢ly on th¢ extraordinary g¢lleTosity of its community. However: we did challenoes. Income fro￿ our wceldv Dharma cl&8ses w8s consistently lower thaTL boped for, and illcojlle trom treat￿e￿L Toom hires fell below bud8eL While some of this sterns frtm all ovcr-optitnistie budget projection, these 8reas will be a clear focus far atteTrtion in 2026. ExpendittJIe Total expenditure finished well Ixlow budget. This was pri]narily driven by the diffLcuJt but necesgzry ]xocess 0£ iestructuringi OUT tean] a￿d reducing our headcount. The Iesulting yayroll savings were substantial and will continu¢ to benefit our sustAinability into 2026. We a]$0 redu¢od ¢osts by moving away from extrrnal cIes￿l￿g contractors and enli8ting more help from our dedicated volullteer& Our focus for 2026 witt be on stabilizing our treatment mojll hire. Tefilling our dTrgital dollation tracking. and i￿￿easIng incotne from our weekly Dlwma classes. Reserves pollcy The iotaj fllnds of the ¢harity were £885,395 of wlii¢h £8dH,241 ￿¢ ￿p1S$¢llted by fixed a8sois, Itaving £41.154. EXpelldltt￿e in 2025 was £302.563 and so the level of unrestricted reseryes was betweell l and 2 months. Ttt order to enyllre the charity has sufficient fllnds io tske into accouni unforeseen evenrs the tNstees deem that 3 months expeuditure LS required a5 a general reserY¢. Page 6 THE NALANDA TRUST REP THE TRUSVEE FOR THE YEAR ENDED 31 DECEMBER 2 FUTURE PLAIYS Reflething on the past year. l atn struck by the Icsilience of our community. Vthile we have had to ￿ some difficuh decisions, we enter the new year with a l&iller, more sustainable team structure and a clearer w)derstanding of our prioTities. ThroughouL 2025, the Council and I sougbt a more pithy way of breaking dowi our work to ensure we were truly living oiit our missioll. This process led us .to id¢ntify six key project$ that llow serve as a frarn¢work to help us foclls our gy Ot) what Tnatters most.. building a spirituaj ¢on]munity. guided by the Buddty in the heart of the city. The six VA5ion project baskets are-. l. Dis¢ov¢r: We wallt to make it as e&w as powl)le tor people to cross our threshold. ellcoullterit￿' the DharnH and living communty. 2. D¢eptn.' To lurn a crowd iDto a co[DM￿1uty, we offer focused contexts for JDeditatiOD, Dh"arnrd explorniion and friendship. 3. Gather: The Buddha exhorted hi5 followffs to gather in large numbers. We'll ￿eate Ye(wulAr opporttmities for the s￿ba to come tog¢ther fi)r cohnection and shared prncti¢¢. 4. Commit.. Corntllitt¢d practitiODers are tbe heart of our colljnwnity.. As GoiDg tOT Re￿ge is the ¢¢nttMI aot of a Buddbi5L we create conditions for p￿PIe to join leam5, enter siudy grDUP* bwome Mitras, and train to join the Order. S. Givt: Dana, generosity, is the first of the San8ravastu, so to both build San8ha and resource our '&￿1t2b1e aims,, we ask peopl¢ for donations and CiEat¢ opportutiities for ￿ople to Yoluther. . Caring for our Hojne: Our five-sÉory building is tILe f(Kal point and home for our cornmunity. it r¢quires us to give Èt Collective care ajd ongoing renovation. 6. Bodywork & min￿u￿ts$.' our secular project, prnD￿ting ]Leaitb and wellbeing throuJ¢p Yoi4 Qigo)Jg, Secu12r Mindfiilttess. NVC and affordable thernpy rooms forhir¢. TowaTds the end of 2025, we have aIr￿dY begl￿ to think terms of ihese project baskets, aDd you rnay have ]￿tICed that the Ja]L-Apr 2026 printed pro￿arnMe already uses them as its core slm¢tt]re. En 2026. ￿Y goal is to see a ￿leY stt*tegy etneTqe about bow we can ]Dake evenmore of these six projects areas to better serve North London, deepen our collective practice of the dharnia8nd continue to build a wbrani SpMu￿1 con￿￿nIty together. STRUCTURE, GOVERNANCE AND mANAG£1￿[￿T Governing docunjellt The Ch￿￿ty Is ¢ontroll¢d by its goY¢ming do¢Lm)ont, a d¢ed of truit and con$titutss an unincorporated charity. Charity eonstitulM)ll The charity w&s registered on 6 June 1989. The Charity 15 by its Rules adopted 29 May 1989 as amendtd 17 September 2001, 14 SeptEmber 2011 and 10 SeptembeT 2014. Charity Trustees The tNste¢s are Inembers of the charity but this entitles them ￿llY to voting rights. The tru5tee5 have no benefLcial illterest Ill the ¢h&ity. Trust¢es are elected annually from the membership by the incmbers at the AGM. As amd ￿hen needed, new trllstees are sougbt from within the membÈrghip and from the pool of experienced cOn￿]tted Buddhists who 8r¥ able (o attend meelings in LoDdon. All tru8toes are reqlli￿d to have releva]Lt experience ￿]d skills in order to serye on the tru8te¢ body. Th￿teeS meetings are monthly. All tru￿¢¢5 give iheiy time voluntarily and Teceive no benefits from the cbarity fvr theirtruthe worL Any expellses reclaimed from the clwity are set out in 3nnllal accounts Confliet ofilltsreyt We requiLr a trustee to absent the]nselYes from any di%u$sions, and take no part in tbe voting upon the matter, in Nvhich it Is possible that a conflict will ar15E between their dLrty to a¢r wlely in the interests of the a$sociation aud personal inwest (includillg but not limit¢d to any p￿onal fllwicial ￿tereSt). REFERELYCE AND AD}￿HN[STRATIvE DETAILS RegÈstered Charity 801632 Page 7 THE NALANDA REPORT TRUSTEES FOR THE YEAR EF4DED 31 DEC£MBER 2025 Prillcipal address 72 Flolloway Road London N7 4GB Truslt*$ Rathaprdbha {John Robitt Coopey) Karllnagitx ISW? Buim$)- Serjttary Ku5ala (Guy RethnoDd) (resigned 21.5.25) Vajralliitra {Michael Ward) Maitriwnbhava IShan)n Reed) Darsavini (Eve LKaT) AnandavajTa (Jot)athan Tun)bull) KshEmtisarn{Ursul& (resigned 3.12.25) Ksarnikara (KsantTTraTa Greelll- Choir Maitiishura {David BTe¢D) {appoiuted 3.L2.25) llldEpendent Examiner Christophcr Robert Tyler FCA DChA FCTE FI CRT Limited F]at 24 Wellingtonia Court Laine Close Brighton East Sussex BNI 6TD Oyerntlng Name North Lot)don BiiddhI￿ CenttE Prilleip#l Banker5 Santander Bank Bootle Mtrseysid¢ L30 4fjB Image Front Cover The image on th¢ front cover is proiryded by Aryajit (Stephen Heppel) Property The property omred by the trust is hcld in the following Dames: David Zuka5, Petw Gill and David Green. STATEMENT OF TRUSTEES, RESPONSIBILITJES The truslees are responsfi)le for prÈp2vin£ the ileport of the Tn￿tee5 and th¢ financ￿31 5talellLeDts Tn accordance Mryth appIl￿ble law and Ullited Kit)gdom Ac¢ounting Standards (United Kingdom Genertdly Accepted A¢cou#till8 Tractice). Charty law ￿qUilI$ th¢ twst¢es to prepare financial statements for each financia] year. Under that law, the truste¢s have elected to prepare the fLDancial 8tatrn*nlS in accordallce with United Kingdom Generally Accepted AccountitLg Pradice (United Kingdom Accounting Standards and applicable law). U1￿£r chaLity law the trugtees Lnusl not approve ih¢ f1nancial statements unle&s they are satisfied Ibat they give a true and fair view of the stale of affairs of the charity and of thts incoming resources and application of ie50ttrce& iucknding th inc4)me and expenditure, of the Ch￿ty for that ￿rI0￿ In pyep3Jing those fiJ)an¢ial statement& the trustee5 are I'cquired to select 5Uitable ac¢ouDtit)g wlicies and then apply th￿n consistentty. observe th¢ methods and principles in the Charities SORP. ak¢ jud8ements ané esttnmtes that are reasollable and ptudent. preyare the financial state5nents OD the going ¢on¢em basis unl¢&8 it is inappropri81¢ 10 presume that the chai'Èty wiIl continue in business. Page 8 THE NALA DATR REPORT OF THE TRUSTE£S R THE YEAR ENDED I DECEiKBER 2025 STATEMENT OF TRUSTEES, RESPONSIBILJTtES- Continued The tru5tee5 are rcsponsiblc for krepiTJg pn)w accouttting rwjrds which disclose with reasonable a¢our&cy at any ti]De rhe financial positÈon of the charity aDd to enable thetn tlTr ￿sUrE that the fJnancia] statemeiils C￿￿P]Y with the Charities Att 2011 and The Charity (AccouDts and Reports} Regulations 2008. They are ais(Tr re5ponsTrble for safegiuarding tho assets of the charity and hence for taking reasonable step5 sor the PTeventi(m and detectio￿ vf fiaud and ￿h¢r irreglllarities. Approved by order of the board of trn$tees on ......... nd signed on it5 behalfby: K >nb', KAf- K50￿t￿a- TTUStee PagE 9 ILNDEPE XAMINER'S RE THE NALANDA TRUST RUSTEES OF Independent examilltr's report to the trustees of The NalaDda Trll5t I report to the charity ttugte&s on my exa￿l￿ation of the accounts of The Nalanda Th￿t (the Trust) for the year ended 31 DeCe￿bEr 2025. Responsibilities and basis of report As the charity t[￿stee$ of th¢ Trusi you Oxe responsible for the wepayation of the ￿CoUNtS in accordance with tbe requiT¢ments of the Charities Aci2011 Cthe Aev). I reEx)rt in iespect of 2Dy eXaMi￿tion of the Trust's accounts cdrried out imder Se¢tAon 145 of the Act and in carrying o￿t my examinauoll I have tollowed all &ppli¢able Di¢p¢tton$ given by the Charity Comulission under Sectioll 145(5)(b) of the Act. llldepelldent ¢xaminer's statement Since YO￿ charttys gro￿ incorne txceeded £250,000 your exami￿ must ￿ a mejnber of a tisted bLNly. I can COT)finn Ih&t l am qualified to undertake the examiD&tion bec&use l Bm a member of the I￿stiCUte of charte￿ AwDUlltaTrts in England and Wales, whi¢h is one of the lisÈ¢d bLidies. I h&ve completed my examinatio￿ I confirm that ZLO ]]]aÈuial n￿{terS have come to ]ny ￿tte￿tion JEL cOnD￿tiOn the exaTuinatiorLgiving me cause to be]ievethat in any material respect: accounting r¢¢ords were not k¢pt in r&￿peCt ofihc 'fr(LSt required by Section 130 of the Art. or tbe a¢¢ounts do not accord with those record5. or the accounts do not ¢ompty the applicable requiremeiits concerning the fom and COTtt¢nt of ac£OUt￿ SEt out in th¢ Charities (AccoLWJts and Reports) Regulations 2008 Oth￿ than ally requirement that the a£cou]rts sive a true and fair view which is not a ]llatter co)]sidered as part of an independent exaJllit)atio I have no concerns and have come across no otkner matters in Con￿eCtIOn with tbe examination to wlllch atiention should t¢ drawn ill this TetK>rt in order to enable a proper understanding of the accounts to bereached. Christopher Robert Tyl¢r FCA DChA FCIE FI CRT Limited Flat 24 Wellill8tonia Court Laille C105E BrightLlll East Sussex BNI 6TD Pag¢ 10 THE NALAND STATEMENT OF FJNALNCIAL ACTIVITIES FOR THE YEAR ETrIDED 31 DECEMBER 2025 025 Total JJd5 2024 Total nds Unrestricted lunds Restricted fi]nd Notes INCOME AND ETrIDOWMENTS FROM Donations and legacies li,879 13.879 24,345 Charltable actlvltks Charitable &¢tivitie$ 218.025 218,025 181,405 Other ttadiiigF activities Jllvesl]nellt inCOULe 34,86l 43.899 34,861 43,899 6,354 53,630 Total 310,664 310.6fv1 265,734 EXPENDITURE ON Charitable activiÉies Officers Exp¢ns¢s People 6,901 149,169 4,449 6,901 149,169 4,449 54.082 3,599 168,715 3,831 67,482 55,490 Charges Cet)tre Activiiies Other 75J97 12.565 12,565 Total 302.563 3(Y2,-$63 311,128 NET INCOMEI(EXPETrIDITURE) 8.101 8,101 (45.594) RECONCTLIATION OF FUNDS Total fvnds bmugbt fonvard 877294 877294 922,888 TOTAL FUNDS CARRIED FORWARD 885,395 885,i95 877,294 The notes form part of thL*e fin•)ciat statements Pag¢ll THE NALANDA TRU BALANCE SHEEIT 31 DEcEI￿BER 2 2025 Tot&i fullds 2024 Total Unrestricted fi]nds Restricted rund Notes FIXEI D ASSETS TangÉble assets 13 844,241 844.241 853212 CURRENT ASSETS Stocks Debt015 Cagh at bank and in halld 14 15 4.527 5.176 41,058 4.527 5,176 41,058 6,205 3,666 26.S02 50,761 50,761 36,673 CREDITORS Atnounts falliDg due within one year 16 (9,607) (9,607) (12,591) CURRENT A&SETS 41,154 41,154 24.082 TOT AL LESS CURRE*NT LIABILITIES 885,395 885.395 877294 NET ASSETS 885.395 885,)95 877294 FUNDS Un￿sti]Cted fi]nds 885,395 877,294 TOTAL FUEYDS 885.19. S77,294 fiDallcial ststements were opproved by the Board of Trnste¢s aTtd authoTiSed tor issue . weTe SI￿¢d on its ￿hallby. on Ks8ntikat7- TTUStee The notes form part of th¢s¢ finan¢ial sr8thrnents Page l? THE NALANDA TRUST NOTES T THE FINANCL4L STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 AccoufqTING POLICIES Basis of preparingthe fthafteial staltmcnts The fiDanci&l statements have been pr¢pared in accordance Nqth AcCoL￿tin￿7 aT]d Reporting by Charities: Statement of ReCon￿￿nded Practice applicable to ch￿iLieS preparing th¢Èr acwuiits iii acc4)rdallce witb the Fin3￿claI ResMTrrtill8 Standard applicable the UK and Republic oflreland (fRS 1021 (£tTective l Jatkuary 2019) - (Charities SORP (FRS 102)), the Financial ReportiDg7 Standard applÉcable ill the UK and Republic of Ireland (FRS 102) and the Cbarities Act 2011. The Na]and& Th'ust meets tbe d¢finilion of a public entity ullder FRS102. Assets and liabilities are initially recognised at htstorical cost or. transa¢tiOJL value unless otherwise s(ated in the relevant accountillg tK)]icy note. The 'fr£￿e5 consider there are no material ullcertainties a[X)￿ the charitys ability to continue &q a going collcem. Intome Income is Trcogmised when the Ch￿ity has entitlement to the fulld5, any performall¢e conditions attached ro the Ètem(s) of income b&ve been meL it is probable thk)t the income SFIII be received and the a￿oUnt Can be measured reliably. Jnoome doDations is accounted for as received by the charty. The income froJb fithdraising venthres is sho￿￿ gross, with the associaied C4)sts incliided in ￿ndraLSIng ¢osts. The value Df volunlary work is not includcd in the fit￿£]81 statements. Incoine from government and other graTrts, whether 'capital' grants or 'revenue' grants, 15 rEcognised when the Lharity has entitlem¢nt to the fi￿d4 any perfunllan¢e conditions attached to th¢ graiits have been ]nel, it is probable that the income will be received andthe amount can be measuTed irliably and is not deferred. ror leg￿1¢& ¢Mti¢lernenl 15 tak¢n #s the earlier ol the datr on which eitbey.. the ¢1)atÉty is aware that prob2te lias been grante( the estate h&8 been fU￿1&S¢d alld notification bas been made by the executorfs) to the chatity that a distrll)ution will be made, or when a distributioll is received from the estate. Releipt of a legacy, whole or in part. is onlv considered probable when the amount ¢an be measured iEliably and the cbarty has been notified tsf the executorfs intention to make a distribution. Where legacies bave been nolified io the ¢hariry. oi the c1￿]ty 15 aware of the gra7)ting of p¥obw4 and the criteria lor income recognition have not been mei, Ihen the legacy 15 treated as a colltlljgent asset dis¢lo$¢d if meterial. Income received in advance of a provision of a sLwified s¢ryico is deferred wttil tbe criteria for illcojlle i'e¢oguxtion we rneL Jnterest on fL￿&S held on deposit is included trc¢ivabl¢ and the amomt call be measwed ￿17&bIY by the cbarity; this is ]Jorma]ty upott notification of the interest paid or payable by tbe Bank Expenditure Liabilities &rc rccognised a5 expenditure as soon as there is a IBga] or C{￿￿U¢llYe obligauoD cojnmitting the charity to that expendibjre, it is probable that a transfer ot economic bEnefits Trvill be req￿l[¢d in selflement attd the amount of th¢ obligation can be Me￿ll[¢d IeliabFy. EX￿nditure is accounted for on ￿ accruals basiy and has been classified under headings that aggregafe all cost related to the category. Where costs cannot be di￿¢t]Y ttttribllted lo particular headiDgs they h2ve bEen a]l(Kated to activilits on ft basis CODSlStent with the use of resowres. Expenditure is cla55ified Und￿ the follow&n8 activity headings:. Cogts of raising fundg illcludes expenditute on rullnill&T Courses aftd events. Expendituie on charitsJ)le activities includes the costs o£runnillg the North Lolldon Bu(kihist Centre Idertaken to fiirtherihe purposes ofth¢ Chaiity. - Other ex￿nditi￿e Tep¢tsents those Items not Calling into a]iy other h¥adittg. Pag¢ 13 colltinued... THE NALAYJ DA TRUST NOTES TO TFTE FITrIANCTAL ST ATETrtENT FOR THE YEAR ENDED 31 DECEMBER2025 ACCOUNTING POLICTES- conttnued Expenditure liieeoverable VAT is charged as a cost against the activity for which the expenditllrc was incurred. T4nglble fixLyI 2$8Èts Llldividual r￿ed a85ei8 ¢O$ti))g ￿00 OT Inoro are capitolised at cost and are depr¥¢iatsd over their &stimated ugethl ¢conomiG liyes on a straighi lille basis as follows. F￿hold Land and buiSdiugs - no dyD¢i8Lioll 18 Provided on tILe land element and the buildings are dtrpreciated over ItK) years straiJ)t litte. Lift and ￿gIne ￿fUrbISh￿¢nt- over 10 years stsai-trt litte. Office equipllwiL fittiDgs and furnitur¢ - ovet i to l O Yea￿ straight line. Computer hardware and sOftw￿e- over 3 to 5 years strai￿t line. Sthcks Stork is included at th¢ lower of ¢ost or net realisabte value. In genetaL cost is determiued on a first in, fjrst out basis. Net rea]i5able valu¢ is the pri¢e at which stocks caD be sold in tht notinal COiLrse of bvsll]¢ss after allowing tlie costs of realisation. ProTrision is where necessary Eor obsolete, slow movino and defective stocks. Donated items of stock aTe rEco￿[Std at fair value which is the amount the charity would hav¢ been willing to pay for the iten]s on the openmarket. TaxAlion The charity is exempt frotntsx on its cbaTltable activities. Fund aeeollntlng UnTostri¢led fvnds can be used in a￿Orda￿Ce with the ¢l)aritabl¢ objectives at the discretion o'fihe tnjsteeg. ReStriC￿d funds only be used for particular re8th¢tod purposes the objects of th¢ charity. Restriction$ 4Ti5e when sp¢cified by the dollor or when funds are rni5ed for parti¢ularTestricted purposes. Further explanation of the uatur¢ and putyO$¥ of oach fund is included in the note$ to the financial stateJnonis. Pension costs Employees Df the cbarity aTe cnlitled to join a defwed contributio]2 'mon6y purcbase, s¢bem¢. The charity's cothributioll is r¢stri¢t¢d io the contributions diselosed in the note5 to the a¢wunts. There were llo outstanding colltributiolls at the Y￿ end. Debtors Trade and orher debtors are recognised at Ébe settle￿ent aulount due after any tsadc di5counl offwe