2020-09-30-accounts

Company Registration Number 02422385 (England and Wales) Charity Registration Number 802411

PO SHIN TAO TEH ASSOCIATION LIMITED (A Company Limited by Guarantee)

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

PO SHIN TAO TEH ASSOCIATION LIMITED

COMPANY INFORMATION

Trustees	Dr N Ho	Chairman
	Mrs T M Cheng	Treasurer
	Miss TW Lee
Secretary	Mrs K H Chow
Company number	02422385
Registered office	10 Havelock Rise
	Luton
	Bedfordshire
	LU2 7PS
Accountants	WebbAccountancy	Services Limited
	19 Diamond Court
	Opal Drive
	Fox Milne
	Milton Keynes
	MK15 0DU
Business address	10 Havelock Rise
	Luton
	Bedfordshire
	LU27PS

PO SHIN TAO TEH ASSOCIATION LIMITED

CONTENTS

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	Page
Trustees and directors’ report	1-2
Independent examiner’s report	3
Statement of financial activities	4
Balance sheet	5
Notestothefinancialstatements	6-11

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PO SHIN TAO TEH ASSOCIATION LIMITED

TRUSTEES AND DIRECTORS' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees and directors present their annual report and accounts of the charity for the year ended 30 September 2020.

Objectives and Activities of the Charity

The charity is governed by its Memorandum and Articles of Association. The powers of the Charity in the Articles are stated as being anything which is calculated to further its Object(s) or is conducive or incidental to doing so. In particular, the charity has power:

(1) To advance spiritual, mental and moral improvement by promoting the teachings of Tao, Confucius and Buddha (2) To give support and aid to those who need help.

Each year our trustees review our objectives and activities to ensure they continue to reflect our aims and comply with the Charity Commissions guidance on public benefit and to carry out our activities without damaging the local economy or community.

The charity’s main activities in relation to the objectives are to hold regular services and meetings at the charity’s premises. The aim is to encourage participants to comprehend the wisdom of Taoism, Confucianism and Buddhism. The charity collects donations and provides support and donations for the relief of poverty to the local community, national and international organisations.

How our Activities Deliver Public Benefit

We have a wide range of participants from diverse backgrounds that are involved in attending regular services and meetings within which the wisdom and teachings of Taoism, Confucius and Buddha are studied. The charity believes that promoting the divine studies is the best long-term method for uplifting spirit and improving mentality and morality and thus relieving poverty.

The charity concentrates its work on its local offices whereby our volunteers provide support and advice to the locals and assist them to become self-sufficient. We carry out our work by ourselves and utilise local knowledge and resources to promote our work where possible.

Achievements and Performance

From the outset, the charity has been promoting its objects by offering weekly services, assistance and support to those who need help. To fulfil the objects, the charity has been laying emphasis on divine teachings to encourage our members to embrace the five bonds of filial piety and ancient wisdom. The aims are to help our members to restore the intrinsic worth of integrity, confidence, encouragement, self-sufficiency, motivation and determination.

Since the outbreak of Covid-19 early this year, the charity has been following the government advice to prevent the spread of the disease. The charity has been enforcing preventative measures as suggested by the government guidelines in order to ensure that our premises are clean and safe to contact. Because of the pandemic situation, the intended charitable activities had to be cancelled or postponed to a later date. Our foregoing objects must be carried out in the digital form and remote manner.

The charity has been continuing to receive donations from our members living far and between since the start of the pandemic. This demonstrates our members, who have been following the divine teachings, appeared to have learned and developed a strong sense of confidence, independence, contentment and importantly, the capacity to care and support others.

The trustees are, therefore, very grateful to our members and volunteers for their incredible, enthusiastic involvement, efforts and sincere performance during the pandemic. The charity will continue to work towards the objects that are set out in the company’s Memorandum and Articles of Association and always reserve funds for those who need help.

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PO SHIN TAO TEH ASSOCIATION LIMITED TRUSTEES AND DIRECTORS' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Financial Review

Financial support continues to be received from donations.

The Trustees are satisfied that the charity’s costs have been reviewed and revised where required and are well controlled and that all costs are for the furtherance of the charity’s objectives.

The charity's income from all sources amounted to £51,900 (2019 £54,062). The Trustees would like to take this opportunity to thank all funders and supporters for their hard work and generosity. Total expenditure amounted to £32,291 (2019 £34,142). The surplus for the year amounted to £19,609 (2019 £19,920). This has increased the net funds available to £628,797 (2019 £609,188).

The Trustees have reviewed the reserves and propose to maintain unrestricted reserves at a level equal to at least twelve months running costs. The risks to which the charity is exposed, in the main to financial issues, are discussed and addressed at meetings of the Trustees and committee.

Structure Governance and Management

The charity is a charitable company limited by guarantee, incorporated on 13 September 1989.

The charity’s founding documents take the form of Memorandum and Articles of Association, by which it is governed.

The Directors of the company are also Trustees for the purposes of charity law and under the company's Articles are known as members of the Management Committee. The Management Committee meets on a regular basis. The Trustees are invited to be appointed by the current board of Trustees and as such can be dismissed as a Trustee, or asked to resign their position. However, this decision can only be made with the full consent of the Trustees as a whole.

Directors and Trustees Responsibilities

The Directors, who are referred to as Trustees, are responsible for preparing financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit and loss of the company for that period. In preparing those financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and with the FRS102 Statement of Recommended Practice. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf ofne Dr N Ho

Director

Date: .% [ bef so |

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PO SHIN TAO TEH ASSOCIATION LIMITED INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PO SHIN TAO TEH ASSOCIATION LIMITED

| report on the accounts of the company for the year ended 30 September 2020, which are set out on pages 5 to 10.

Respective Responsibilities of Trustees and Examiner

The Trustees (who are also the Directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• examine the accounts under section 145 of the Charities Act;

• to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and

to state whether particular matters have come to my attention.

Basis of Independent Examiner's Report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent Examiner's Statement

• In connection with my examination, no matter has come to my attention to indicate that: accounting records have not been kept in accordance with section 386 of the Companies Act 2006; the accounts do not accord with such records; where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements under section 396 of the Companies Act 2006, or are not consistent with the Charities SORP (FRS102) any matter which | believe should be drawn to the attention of the reader to gain a proper understanding of

the accounts.

WebbolenAccount Services Limited

Chartered Accountants

14 Jore Lolo 19 Diamond Court Opal Drive Fox Milne Milton Keynes MK15 ODU

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PO SHIN TAO TEH ASSOCIATION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2020

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		Unrestricted	Restricted	Total funds	Prioryear
		funds 2020	income funds	2020	funds 2019
			2020
	Notes	£	£	£	£
Income	3
Income and endowments from:
Donations, investment income		51,900	0	51,900	54,062
Total income		51,900	0	51,900	54,062
Expenditure	4
Expenditure on charitable activities		31,798	0	31,798	33,649
Fundraising costs		0	0	0	0
Governance and support costs		493	0	493	493
Total Expenditure		32,291	0	32,291	34,142
Net income / (Expenditure) before tax		19,609	0	19,609	19,920
Tax payable	6	0	0	0	0
Net income / (Expenditure)		19,609	0	19,609	19,920
Transfer between funds		0	(0)	(0)	(0)
Net movement in funds		19,609	0	19,609	19,920
Reconciliation of funds
Total funds brought forward		609,188	0	609,188	589,268
Totalfundscarriedforward		628,797	0	628,797	609,188

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PO SHIN TAO TEH ASSOCIATION LIMITED

BALANCE SHEET

AS AT 30 SEPTEMBER 2020

		Unrestricted	Restricted	Total funds	Prior year
		funds 2020	income funds	2020	funds 2019
			2020
	Notes	£	£	£	£
Fixed assets
Tangible assets	7	437,260	0	437,260	425,691
Current assets
Debtors	8	4,266	0	4,266	4,078
Cash at bank and in hand		309,977	0	309,977	301,305
Total current assets		314,243	0	314,243	305,383
Creditors: amounts falling due within oneyear	9	(2,206)	0	(2,206)	(1,386)
Net current assets/ (liabilities)		312,037	0	312,037	303,997
Creditors: amounts falling due after more than one vear	10	(120,500)	0	(120,500)	(120,500)
Provisions for liabilities		0	0	0	0
Total assets less current liabilities		628,797	0	628,797	609,188
Funds ofthe Charity
Restricted funds		0	0	0	0
Unrestricted funds		628,797	0	628,797	609,188
Totalfunds		609,188	0	609,188	589,268

For the financial year ended 30 September 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS102 SORP.

The financial statements were approved by the trustees and authorised for issue on J4[ob foo and are signed on its behalf lal, Dr N Ho Trustee / Director

Company Registration No. 02422385

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PO SHIN TAO TEH ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

• 1 Accounting policies

Company information

Po Shin Tao Teh Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 10 Havelock Rise, Luton, Bedfordshire, LU2 7PS. The charity constitutes a public benefit entity as defined by FRS102.

1.1 Basis of accounting These financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP FRS 102) issued on 16 July 2014, with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and with the requirements of the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

• 1.3 Turnover

All incoming resources are included in the Statement of Financial Activities (SoFA) when: the charity becomes entitled to the income;

the monetary value can be measured with sufficient reliability; and

it is more likely than not that the trustees will receive the resources. Grants and donations are only included in the SoFA when the general income recognition criteria are met. Legacies and other forms of voluntary income are only included in the SoFA when receipt is probably, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. Contractual income and performance related grants are only included in the SoFA once the charity has provided the related services or met the performance related conditions.

The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

• 1.4 Expenditure

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. All revenue expenditure is dealt with through the SoFA on an accruals basis and is allocated to their appropriate functional headings.

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PO SHIN TAO TEH ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

• 1.5 Governance and support costs Support costs have been allocated between governance costs and other support.

Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage

1.6 Tangible fixed assets

Tangible fixed assets are measured at cost and, 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:

Freehold Property 0% Fixtures, Fittings & Equipment 25% 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 credited or charged to profit or loss.

1.7 Impairment of fixed assets At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 Cash at bank and in hand Cash at bank and in hand are basic financial assets and 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.

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PO SHIN TAO TEH ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1.9 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as Basic Financial Instruments. Financial instruments are recognised in the company's balance sheet when the company 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 settlement value 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and 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 business 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.

1.10 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

• 1.11 Restricted funds

• Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. Distributions from restricted resources must be used for purposes consistent with donor intention and should be the first source of funding to support programmes and activities meeting the restriction.

• 1.12 Unrestricted funds

• Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

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PO SHIN TAO TEH ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

2 Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors 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 Incoming resources

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|funds|Prior year| |funds|2020|income|funds|2020|funds|2019| |2020| |£|£|£|£| |Donations|and|gift|aid|51,750|0|51,750|53,935| |Other|income|150|0|150|127| |Total|income|51,900|0|51,900|54,062| |4|Expenditure| |Direct|project|costs|3,988|)|3,988|7,557| |Donations|0|0|0|600| |Rates|&|water|6,448|0|6,448|6,323| |Insurance|2,936|0)|2,936|3,056| |Heat &|light|9,644|0|9,644|9,496| |Building|maintenance|1,077|0|1,077|429| |Motoring|expenses|1,919|0|1,919|2,766| |Print,|post,|stationery|0|0|(e)|0| |Telephone|999|0|999|1,003| |Cleaning|1,850|0|1,850|1,850| |Travelling|38|0|38|52| |Sundry|0|0|0|7| |Depreciation|1,871|0|1,871|510| |Profit/loss|on|disposal|of assets|1,028|0|1,028|0| |Expenditure|on|charitable|activities|31,798|0|31,798|33,649| |Independent examiners|fees|480|0|480|480| |Other fees|13|0|13|13| |Expenditure on|governance|and|support|493|0|493|493|

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PO SHIN TAO TEH ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

5 Employees

The average monthly number of persons (excluding trustees) employed by the company during the year was:

2020 2019 Charitable activities 0 0

No Trustees or members of the management committee received any remuneration for work undertaken in the management of the charity during the current or previous year.

6 Taxation

The charity is exempt from corporation tax on its charitable activities. On the basis of these financial statements the company has no corporation tax liability.

7 Tangible fixed assets

Tangible fixed assets
	Freehold		Fixtures,	Total
	Property	_Fittings	Fittings&
			Equipment
	£		£	£
Cost
At 1 October2019	424,163		24,217	448,380
Additions in the year		0	14,968	14,968
Disposals in theyear		0	-9,583	-9,583
At 30 September 2020	424,163		29,602	453,765
Depreciation and impairment
At 1 October 2019		0	22,689	22,689
Addback on disposal		0	-8,055	-8,055
Depreciation charged in the year		0	1,871	1,871
At 30 September 2020		0	16,505	16,505
Carrying amount
At 30 September 2020	424,163		13,097	437,260
At30September2019	424,163		1,528	425,691

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PO SHIN TAO TEH ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

8	Debtors
		2020	2019
	Amounts falling due within one year:	£	£
	Prepayments	4,266	4,078
		4,266	4,078
9	Creditors: amounts falling due within one year
		2020	2019
		£	£
	Accruals and deferred income	2,206	1,386
		2,206	1,386
10	Creditors: amounts falling due in more than one year
		2020	2019
		£	£
	Other creditors	120,500	120,500
		120.500	120,500

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