kadampa meditation centre birmingham (a company limited …

Kadampa Meditation Centre Birmingham (a company limited by guarantee)

Trustees' report

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annualreport together with the financial statements of Kadampa Meditation Centre Birmingham (the company) for the yearended 31 December 2019

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 2015).

In preparing this report the trustees have taken advantage of the small company exemptions provided bysection 415A of the Companies Act 2006.

Constitution

The company is registered as a charitable company limited by guarantee and is a registered charity number1025003

The principal object of the company is to promote and follow the pure tradition of Mahayana Buddhist derivedfrom the Buddhist Meditators and scholars Atisha and Je Tsongkhapa, as introduced into the West by Buddhist teacher Venerable Geshe Kelsang Gyatso, and to always remain a member of the Buddhist Union (NKT-IKBU) and always follow and act in accordance with the internal rules of the NKT-IKBU

Governing document

Memorandum and Articles of Association dated 1 June 1993 as amended by resolution dated 29 March 2007

Review, achievement and public benefit statement

2019 has seen changes in the management of Kadampa Meditation Centre Birmingham. The resident teacher, Kelsang Leksang left at the end of January 2019.The EPC, Kelsang Lhasang stepped into the role of resident teacher, which meant that the Centre was down to two managers from February. In mid June, Alastair Pugh (admin director) was asked to go to Arizona and Christine Twomey (Kelsang Gyalwa) agreed to help the Centre as admin director.This was on a part time basis as she was travelling between Birmingham and Peterborough to fulfil both roles. Effectively, the Centre was being managed by the resident teacher and a part time AD. No full time replacement was found for the AD role, so Kelsang Gyalwa became full time from September.In the meantime, Lhasang was fulfilling the Education Programme Co-ordinator (EPC) role as well as being the resident teacher. Roland Jones agreed to move to KMC Birmingham as full time EPC and started from September. So it can be seen that there was not a full management team from the beginning of February until the beginning of September - seven months in total.The education programme continued as planned, with a very successful public talk in May by Gen Gomchen who brought in 101 people, Kadam Lucy James brought in 52 people in July, Gen Kelsang Lekma brought in 50 people in September and Kadam Bridget Heyes brought 85 people in November. The Manjushri Empowerment in December brought just 29 people, which was much lower than normal. Attendances for the first term of 2019remained stable in comparison with 2018, with an average 157 people per week coming to classes at the Centre and its two main branches (Solihull and Sutton Coldfield).Term 2 saw an average reduction in attendances by 37%, with an average of 99 people attending per week. Term 3 saw more reduced numbers with a further 24% reduction in numbers to an average 75 people weekly. The Wolverhampton class numbers reduced so that it was ineffective to keep goingbeyond the end of the year. The kadampa house on City Road had four rooms to rent out after Leksang left and three of those were occupied with residents.The other room was rented out through AirBnB until it gained a new resident in July. In October two residents moved out almost at the same time.Two rooms were then put out to rent on AirBnB, successfully bringing in approximately £1000.The gross income (£92549) includes the bi-annual donation of £10k, this compares with £88726 of 2018 without the donation. The Centre employed its third member of management from September and so now is fully staffed, with three sponsored rooms at the house.

Kadampa Meditation Centre Birmingham (a company limited by guarantee)

Trustees' report

remained stable in comparison with 2018, with an average 157 people per week coming to classes at the Centre and its two main branches (Solihull and Sutton Coldfield).

Registered number 02828912

Charity number 1025003

Kadampa Meditation Centre Birmingham

Unaudited trustees' report and financial statements

For the year ended

31 December 2019

(a company limited by guarantee)

Page

Reference and administrative details of the charity, its trustees and advisors 1

Trustees' report 2 - 3

Independent Examiners Report 4

Statement of financial activities 5

Balance sheet 6

Notes to the financial statements 7 - 11



Contents

Trustees Ian Arter

Edward G Realf

M Counter-Matta (resigned 21 October 2019)

C Twomey (appointed 2 September 2019)

S Holder (appointed 21 October 2019)

Company registered number 02828912

Charity registered number 1025003

Registered office 1 The Postbox

Commercial Street

Birmingham

B1 1RS



1

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual

report together with the financial statements of Kadampa Meditation Centre Birmingham (the company) for the year

ended 31 December 2019.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles

of Association, 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 2015).

In preparing this report the trustees have taken advantage of the small company exemptions provided by

section 415A of the Companies Act 2006.

Constitution

The company is registered as a charitable company limited by guarantee and is a registered charity number

1025003

The principal object of the company is to promote and follow the pure tradition of Mahayana Buddhist derived

from the Buddhist Meditators and scholars Atisha and Je Tsongkhapa, as introduced into the West by Buddhist

teacher Venerable Geshe Kelsang Gyatso, and to always remain a member of the Buddhist Union (NKT-IKBU)

and always follow and act in accordance with the internal rules of the NKT-IKBU

Governing document

Memorandum and Articles of Association dated 1 June 1993 as amended by resolution dated 29 March 2007

Review, achievement and public benefit statement

2019 has seen changes in the management of Kadampa Meditation Centre Birmingham. The resident teacher, Kelsang Leksang

left at the end of January 2019.

The EPC, Kelsang Lhasang stepped into the role of resident teacher, which meant that the Centre was down to two managers

from February.

In mid June, Alastair Pugh (admin director) was asked to go to Arizona and Christine Twomey (Kelsang Gyalwa) agreed to help

the Centre as admin director.

This was on a part time basis as she was travelling between Birmingham and Peterborough to fulfil both roles. Effectively, the

Centre was being managed by the resident teacher and a part time AD. No full time replacement was found for the AD role,

so Kelsang Gyalwa became full time from September.

In the meantime, Lhasang was fulfilling the Education Programme Co-ordinator (EPC) role as well as being the resident teacher.

Roland Jones agreed to move to KMC Birmingham as full time EPC and started from September. So it can be seen that there

was not a full management team from the beginning of February until the beginning of September - seven months in total.



Trustees' report

2

The education programme continued as planned, with a very successful public talk in May by Gen Gomchen who brought in 101

people, Kadam Lucy James brought in 52 people in July, Gen Kelsang Lekma brought in 50 people in September and Kadam Bridget

Heyes brought 85 people in November.

The Manjushri Empowerment in December brought just 29 people, which was much lower than normal. Attendances for the first

term of 2019 remained stable in comparison with 2018, with an average 157 people per week coming to classes at the Centre and its

two main branches (Solihull and Sutton Coldfield).

Term 2 saw an average reduction in attendances by 37%, with an average of 99 people attending per week. Term 3 saw more reduced

numbers with a further 24% reduction in numbers to an average 75 people weekly. The Wolverhampton class numbers reduced so

that it was ineffective to keep goingbeyond the end of the year.

The kadampa house on City Road had four rooms to rent out after Leksang left and three of those were occupied with residents.

The other room was rented out through AirBnB until it gained a new resident in July. In October two residents moved out almost

at the same time.

Two rooms were then put out to rent on AirBnB, successfully bringing in approximately £1000.The gross income (£92549) includes

the bi-annual donation of £10k, this compares with £88726 of 2018 without the donation. The Centre employed its third member

of management from September and so now is fully staffed, with three sponsored rooms at the house.

By order of the Board

Ian Arter

19 April 2020



Trustees' report cont…

3



Independent Examiners Report to the Trustees of Kadampa Meditation Centre Birmingham

I report on the accounts of the company for the year ended 31 December 2019.

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 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.

It is my responsibility to:

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

· 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 (FRS 102)

Joanne Watkin BA (Hons) FCA

Purple Cat Accountancy Limited

87 Highgate Road

Walsall

West Midlands

WS1 3JA

19 April 2020



4

Note General Restricted

fund fund 2019 2018

Income 3

Donations and legacies 17,161 17,161 6,425

Charitable activities 74,230 74,230 81,243

Other trading activities 1,086 1,086 1,030

Investments - - 28

Total income 92,477 0 92,477 88,726

Expenditure on: 4

Raising funds 3,399 3,399 3,801

Charitable activities 95,778 897 96,675 93,858

Total expenditure 99,177 897 100,074 97,659

Net income / (expenditure) (6,700) (897) (7,597) (8,933)

Balance brought forward at 1 January 2019 10 303,842 3,742 307,584 316,517

Balance carried forward at 31 December 2019 10 297,142 2,845 299,987 307,584

The notes form part of these financial statements

Total funds


Statement of financial activities for the year ended 31 December 2019

(incorporating income and expenditure account)


5



Notes 2019 2018

Fixed assets

Tangible fixed assets 5 287,352 286,655

Current assets

Stocks 6 3,437 5,409

Debtors 7 23,820 21,217

Cash at bank and in hand 33,334 34,308

Total current assets 60,591 60,934

Creditors: amounts falling due within one year 8 (12,164) (4,269)

Net current assets 48,427 56,665

Total assets less current liabilities 335,779 343,320

Creditors: amounts falling due after more than one year 9 (35,793) (35,736)

Net assets 299,986 307,584

Represented by

Funds

Unrestricted general fund 10 297,142 303,842

Restricted fund 10 2,845 3,742

299,987 307,584

The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies

No members have required the company to obtain an audit of its accounts for the year in question in accordance with

section 476 of the Companies Act 2006

The directors acknowledge their responsibility for complying with the requirements of the Companies Act with respect to

accounting records and for the preparation of accounts

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small

companies' regime and in accordance with FRS102 SORP

Approved by the board on 19 April 2020

and signed on its behalf by

Ian Arter

Director



Balance sheet as at 31 December 2019

6

1. Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless stated

in the relevant note(s) to these accounts.

The accounts 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 (FRS 102)

and with the Charities Act 2011

2. Accounting policies

Recognition of income

Income is included in the Statement of Financial Activities (SoFA) when

- the charity becomes entitled to the resources

- the monetary value can be measured with sufficient reliability

Tax reclaims on donations and gifts

Gift Aid receivable is included in income when there is 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.

Income from interest

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

Income from membership

Membership subscriptions received in the nature of a gift are recognised as donations

Creditors

The charity has creditors which are measured at settlement amount

Tangible fixed assets

These are valued at cost and depreciated at the following rates:

Freehold buildings 1% straight line

Fixtures and fittings 25% reducing balance

Office equipment 25% straight line

Stocks

Stocks are measured at the lower of cost and net realisable value

Debtors

Debtors are measured on initial recognition at settlement amount; subsequently they are measured at the cash or other consideration

expected to be received.



Notes to the accounts

year ended 31 December 2019

7

3. Income 2019 2018

Donations and legacies

Donations (including tax recoverable) 17,161 6,425

Charitable activities

Accommodation 18,349 13,286

Courses 50,356 60,581

Shop and cafe sales 5,525 7,376

74,230 81,243

Other trading activities

Fundraising and other income 1,086 1,030

Income from investments

Interest - 28





8

4. Expenditure 2019 2018

Expenditure on raising funds

Fundraising 1,866 2,676

Publicity 1,533 1,125

3,399 3,801

Expenditure on charitable activities

Utilities and household 10,941 6,665

Rent and service charges 47,039 48,720

Insurance 1,112 2,727

Education and courses 579 2,276

Gompa 1,846 2,212

Donations - 250

Sponsorships 9,833 9,751

Repairs and renewals 1,874 861

Branches 3,917 3,936

Shop and café cost of sales 4,944 4,787

Administration 1,291 765

Motor and travel 2,656 1,724

Telephone 1,107 1,229

Accountancy 120 120

Bank charges 740 1,068

Professional fees 244 315

Loan interest 1,771 1,301

Property depreciation 2,895 2,895

Fixtures and fittings depreciation 1,081 1,353

Office equipment depreciation 903 903

Vehicle depreciation 1,782 -

96,675 93,858





9

5. Fixed assets Freehold Fixtures and Office Vehicles Total

property Fittings Equipment

Cost

Balance brought forward at 1 January 2019 289,500 10,455 3,612 - 303,567

Additions - 234 - 7,125 7,359

Disposals

Balance carried forward at 31 December 2019 289,500 10,689 3,612 7,125 310,926

Depreciation

Balance brought forward at 1 January 2019 8,926 6,364 1,622 - 16,912

Charge for the year 2,895 1,081 903 1,782 6,662

Released on disposal

Balance carried forward at 31 December 2019 11,821 7,445 2,525 1,782 23,574

Net book value at 31 December 2019 277,679 3,244 1,087 5,343 287,352

Net book value at 31 December 2018 280,574 4,091 1,990 - 286,655

6. Stocks 2019 2018

Goods held for resale 3,437 5,409

7. Debtors 2019 2018

Trade debtors 29 -

Other debtors 23,791 21,217

23,820 21,217

8. Creditors: amounts falling due within one year 2019 2018

Trade creditors 7,484 1,296

Bank loans 1,261 1,095

Hire purchase 1,067 -

Other creditors 2,352 1,878

12,164 4,269

The bank loan is secured by a legal charge dated 22 March 2016 over the freehold property to which the loan relates





10

9. Creditors: amounts falling due in more than one year 2019 2018

Hire purchase 1,244 -

Bank loan 34,549 35,736

35,793 35,736

The bank loan is secured by a legal charge dated 22 March 2016 over the freehold property to which the loan relates

10. Funds Balance at Income Expenditure Balance at

1 January 2019 31 December 2019

Total unrestricted funds 303,842 92,477 (99,177) 297,142

Restricted fund

Inlight trust 3,742 (897) 2,845

Total restricted fund

Total funds 307,584 92,477 (100,074) 299,987

11. Fees for examination of the accounts 2019 2018

Independent examiner's fees 300 120





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