New Kadampa Tradition - Charities report - 20.1.6

NEW KADAMPA TRADITION - INTERNATIONAL KADAMPA BUDDHIST UNION - Company Information

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REGISTERED COMPANY NUMBER: 02758093 (England and Wales)

REGISTERED CHARITY NUMBER: 1015054

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

NEW KADAMPA TRADITION -

INTERNATIONAL KADAMPA

BUDDHIST UNION

Page

Report of the Trustees

Report of the Independent Auditors

Statement of Financial Activities

Statement of Financial Position

Statement of Cash Flows

Notes to the Statement of Cash Flows

Notes to the Financial Statements

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the

financial statements of the charity for the year ended 31 December 2019. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

In the wording of the charity's Memorandum of Association, the objects for which the charity is established are to increase

the Buddhist Faith throughout the world, under the spiritual guidance of the elected General Spiritual Director ('GSD') of

the NKT-IKBU, by promoting the activities of the union of Kadampa Buddhist Centres called the NKT-IKBU, the

international association of study and meditation centres that follow the pure tradition of Mahayana Buddhism derived

from the Buddhist meditators and scholars Atisha and Je Tsongkhapa, introduced into the West by the Buddhist teacher

Venerable Geshe Kelsang Gyatso; and that follow the three New Kadampa Tradition Study Programmes; and that are

guided by the code of moral discipline called the Internal Rules of the NKT-IKBU.

Significant activities

In order to promote its objects, the charity maintains an International Temples Project ('ITP'), whose aim is in general to

introduce the Buddhist Faith of the New Kadampa Tradition publicly and in particular to exemplify Buddhist practice

through service to the public.

To further the objects of the ITP, the charity continually emphasises the development throughout the world of:

(a) local Kadampa Buddhist Centres ('KBCs');

(b) Kadampa Meditation Centres ('KMCs');

(d) International Retreat Centres ('IRCs');

(e) publishing activities (under the name 'Tharpa Publications');

(f) Kadampa Companies.

In furtherance of its aims, the charity also operates the residential Buddhist Centre 'Manjushri KMC'; produces Buddhist art

prints and publishes printed, audio and e-books of Buddhist teachings, under the name 'Tharpa Publications'; holds annual

Spring and Summer Festivals with Buddhist teachings and meditation retreats; and maintains a 'Kadampa Art Studio' and

a 'Kadampa Internet' office, all at its Conishead Priory premises.

In support of the activities of the International Temples Project, the charity makes grants and interest-free loans to

NKT-IKBU Centres around the world. Requests for grants and loans are considered by the trustees on an individual basis,

and the financial forecasts for each project are closely examined to ensure viability. The charity takes a long-term view

when supporting the development of International Temples Project activities, and makes financial provisions as

necessary. When a grant or loan is made, the recipient Centre provides regular progress reports to the Secretary of the

GSD of the charity, who then reports to the Weekly Meeting of the Education Council, and the charity's Finance

Committee.

Public benefit

Identifiable benefits

In exercising their powers and duties, the trustees have due regard to the guidance on public benefit published by the

Charity Commission. They believe that the work of the charity in promoting the Buddhist Faith has clearly identifiable

public benefits.

The charity believes that there are three important public benefits to promoting the Buddhist Faith throughout the world: to

help people to develop their wisdom, to cultivate a good heart, and to maintain a peaceful mind.

If as individuals we do not strive to develop our wisdom, we will always remain ignorant of the true nature of reality.

Everyone wishes for happiness, but our ignorance of reality leads us to engage in non-virtuous actions, which in turn are

the main cause of all our suffering. Further, if we do not cultivate a good heart towards others, then our selfish motivation

destroys the harmony of our relationships with others. We then have no peace, and no chance to gain pure happiness.

Without inner, mental peace, outer peace is impossible, both personally and throughout society.

Benefit to the public

The charity supports a world-wide membership of Buddhist Centres, all of which offer classes of instruction in Buddhist

philosophy and meditation, bringing personal and social benefit.

These same programmes of study and meditation are directly offered by the charity at Manjushri Kadampa Meditation

Centre, which functions at the charity's main premises at Conishead Priory. All classes are accessible to the public. Both

'drop-in' classes and more advanced courses of Buddhist instruction are offered. Some are offered free of charge, whilst

modest fees are charged for others. A year-round programme of services of prayer and meditation is also offered; once

again open to the public.

The charity's main premises at Conishead Priory, including the Kadampa World Peace Temple and 70 acres of woodlands

and gardens, are freely open to the public daily throughout the year, providing a peaceful environment for anyone who

wishes to enjoy it. Free 15-minute meditation sessions are offered twice-daily in the Temple, and on weekends visitors

may also join the House and Temple Tour. The Café and Gift Shop continue to be popular with local people, course

attendees, and visitors to the area alike. Manjushri KMC also regularly hosts visits from school and other community

groups. All of these activities are staffed by volunteers from Conishead Priory's residential and local community, showing

the example of Kadampa Buddhist practice through service to the public.

In addition, the charity funds and supports the establishment of traditional and non-traditional World Peace Temples,

meditation and retreat Centres, World Peace Cafés, and Tharpa Publications throughout the world, all dedicated to the

promotion of the Buddhist faith through service to the public.

Grantmaking

In general, grants and loans are made only to NKT-IKBU Centres that are incorporated and registered as charities within

their own countries. Exceptions may be made in the case where Kadam Dharma is being newly establishing in a country

where there has been no prior activity.

Volunteers

All aspects of the day to day functioning of Manjushri KMC, Conishead Priory, are run by members of the residential

community together with volunteers from the extended community in the local area. The support of the community, as an

expression of their service to the public, means that the charity can operate with relatively low staff numbers.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

International Festivals

In 2019 the charity once again successfully hosted the annual NKT-IKBU International Spring and Summer Festivals at

Conishead Priory.

The International Spring Festival was held over a period of 5 days, and was attended by 1,570 people, from 40 countries.

The International Summer Festival was held over a period of two weeks, and was attended by 2,650 people, from 45

countries.

Each year, the International Fall Festival is held in a different country with varying levels of support offered by the charity

depending on the experience and skills within the Kadampa Centres of the host country. The 2019 Fall Festival was fully

hosted by Kadampa Meditation Centre New York, and saw 2,800 people from 43 countries come together to celebrate the

opening of the new Kadampa Temple for World Peace in Northern Arizona, USA.

Tharpa Publications

Tharpa successfully published and launched Venerable Geshe Kelsang Gyatso's latest book, The Mirror of Dharma with

Additions at Spring Festival, May 2019, while supporting the International Tharpas with a simultaneous launch in various

languages. The book featured prominently during the 2019 Fall Festival with 7,077 copies being sold between May and

December 2019.

A major focus of 2019 was increasing the capacity and scalability of Tharpa Publications. This was principally achieved

through two projects: firstly, moving all Tharpa UK's daily operations to cloud-based inventory management and

accounting software, and secondly making a major upgrade to Tharpa's ecommerce website. The former has resulted in

much improved efficiency and accuracy in all aspects of daily operations, and the latter has led to improvements in

ecommerce management and marketing not only for Tharpa UK, but also for 14 of the international Tharpa Publications.

Manjushri Kadampa Meditation Centre (Manjushri KMC), Conishead Priory

Manjushri KMC continued to offer a full and varied spiritual programme of meditation retreats and courses, study

programmes and prayer services throughout the year. Of particular note were the two annual weekend courses taught by

the Centre's Resident Teacher (who also serves as the General Spiritual Director of the NKT-IKBU). These two courses,

in March and November, were attended by 350 and 550 people respectively. Three public talks were also held in the

World Peace Temple, in February, June and September. More than 500 people attended the talks, mostly from the local

area. Manjushri KMC also continues to offer regular meditation classes at various venues throughout the South Lakes

area.

Day-visitors to Conishead Priory, including the Temple, grounds and World Peace Café, continue to increase each year.

There were 21,500 recorded day visitors to the Temple alone in 2019, but total visitor numbers are much higher than this.

The Priory is open to the public seven days a week. The free twice-daily 15-minute meditation sessions are an

established part of the public spiritual programme and continue to be popular. Some 10,638 people participated in the

meditation sessions in 2019, up from 10,300 in 2018.

We also welcomed around 2,000 children and young people, who came on group educational visits throughout the year,

and a further 660 people who came on various other organised group visits.

Kadampa Art Studio

The Kadampa Art Studio at Conishead Priory continues to produce Buddha statues and Buddha ornaments for traditional

and urban Temple developments, and for Kadampa Meditation Centres (KMCs) and International Kadampa Retreat

Centres (IKRCs) throughout the world. The Studio was particularly busy producing the Buddha statues and ornaments for

the new Kadampa Temple for World Peace at IKRC Grand Canyon in Arizona, USA, which was inaugurated at the 2019

International Fall Festival. In addition, statues and ornaments were produced for the following Centres:

- KMC York and KMC Plymouth, in the UK;

- KMC Albacete in Spain;

- KMC Montpellier in France;

- KMC Stockholm in Sweden;

- KMC Long Island in the USA; and

- KMC Canada in Toronto

FINANCIAL REVIEW

Financial review

Since 1 January 2011, the charity has followed financial guidelines set out in an internal guidance manual, called 'A

Money Handbook'. These guidelines recognise that all charity income is designated as ITP funds, and as such provides

the funding for all of the charity's activities.

The aims of the ITP are in general to introduce the Buddhist Faith of the New Kadampa Tradition publicly, and in

particular to exemplify Buddhist practice through service to the public.

In April 2019 the charity purchased a property in central Leeds and in early 2020 permissions were granted to transform

the property into a Kadampa Meditation Centre with large meditation room, shop and café area. Plans are currently (April

2020) being finalised and work is anticipated to start when feasible and in accordance with the government's Covid-19

pandemic guidelines.

ITP funds were also made available in the form of interest-free loans to assist with the purchase of new properties for

KMC Toulouse, KMC Stockholm and KMC Dublin; to support the ongoing activities of Kadampa Meditation Centre in

Tokyo (Japan); and to assist KMC Austria with renovation costs on their new property in Vienna.

As detailed above, the ITP funded the production of statues and other artwork in the Kadampa Art Studio for various other

new city-centre Kadampa Meditation Centres and Temples around the world. Total grants raised for the Kadampa Art

Studio in 2019 amounted to £256,137.

A total of £23,445 was also given in grants and £3,143,553 in interest-free loans in support of other ITP activities

throughout the world.

Donations made to the charity's International Temples Project Fund increased in 2019, totalling £2,567,190.

The trustees consider that providing interest-free loans rather than grants benefits the recipient NKT-IKBU Centres in a

number of ways. It provides safe funding for projects, and allows time for Centre activities to become established without

undue financial pressure; but at the same time it also helps create an attitude of financial independence and responsibility

in the recipients, and encourages an appreciation of the ITP through the recognition that repayment of the loan will ensure

that funds are available for future ITP projects.

Principal funding sources

The principal funding sources for the charity in 2019 included the surplus from the NKT-IKBU International Spring and

Summer Festivals held at Conishead Priory, and the surpluses from Tharpa Publications and Manjushri KMC.

The annual NKT-IKBU International Fall Festivals are not always hosted by the charity; whether or not to host these

events is decided each year in dependence upon the resources and skills available to the NKT-IKBU in the country where

the Festival is to be held.

Reserves policy

The ITP accounts are reviewed fortnightly to ensure that sufficient funds are available to cover current running costs, and

that there is a minimum of £75,000 available to replenish the funds in the charity's daily running account (as set out in 'A

Money Handbook'). The trustees are of the opinion that £750,000 is a comfortable level of free reserves in order to

maintain the basic operations of the charity including required capital expenditure or servicing of any borrowing, and to

provide some surety against adverse financial events, such as unbudgeted expenditure, or failure to achieve income

targets. This level of reserve funds is reviewed annually by the trustees.

To ensure the charity's ability to further its objects both in the UK and internationally, the trustees have designated funds

for the development and support of International Temples Project activities worldwide. The trustees further consider

reserves equal to one year's running costs and three years of building repair and maintenance costs a suitable level to

protect the charity in case of adverse financial events. This is reviewed annually by the trustees.

FUTURE PLANS

The charity continues to offer material support for the international development of NKT-IKBU Buddhist Centres through

its International Temples Project.

Much progress has been made on the plans for a traditional Kadampa Temple for World Peace in Malaga, Spain. All

planning stages are going according to schedule and work will commence in accordance with Covid-19 guidelines.

As mentioned previously, progress is also being made in relation to the renovation of the recently purchased property in

Leeds city centre. Again, the timeline for work to commence will be governed to a large extent by Covid-19 restrictions.

As with everyone else in the UK, and indeed around the world, the Covid-19 pandemic has dramatically altered the way in

which the charity carries out its activities. Recognising that it is more important than ever to help others to develop inner

mental peace and find methods to overcome stress and anxiety, our full and varied spiritual programme of meditation

retreats and courses, study programmes and prayer services have continued online. In this way, we have not only been

able to continue to offer spiritual support to existing students at this difficult time, but also to benefit many more people

than our in-person activities alone would otherwise have done. As a result of the demand for online courses, the trustees

are confident that the charity will remain in a good stable position throughout these challenging times.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a company limited by guarantee, incorporated in 1992 and now operating under Memorandum and

Articles of Association adopted in April 2007, when the organisation also adopted its present name (which is abbreviated

to "NKT-IKBU" in this report).

In the event of the company being dissolved, each Member is required to contribute an amount not exceeding £10

towards the settlement of any outstanding debts, liabilities and costs.

The company is registered as a charity, and is established, organised and operated exclusively for religious purposes.

There are four trustees, who are the Directors of the company. Two of the trustees are directly elected as such by the

Members of the charity, and two are ex-officio posts. The ex-officio posts are occupied by the General and Deputy

Spiritual Directors of the charity, who again are elected as such by the Members. An elected trustee's term of office is two

years, with re-election possible.

The Members of the charity are (a) the sole Subscriber to the original 1992 Memorandum and Articles of the charity

(namely Venerable Geshe Kelsang Gyatso); and (b) all incorporated NKT-IKBU Buddhist Centres throughout the world;

and (c) all the Resident Teachers of unincorporated NKT-IKBU Buddhist Centres throughout the world.

Organisational structure

The charity has a two tier structure with policy setting and strategic decision making being the responsibility of the trustees

and the implementation of procedures and day to day operational management being the responsibility of the executive

officers.

Decision making

The trustees make all the major decisions of the charity, and under their direction the central daily administrative tasks are

carried out by a team of executive officers.

Induction and training of new trustees

All trustees are already familiar with the practical work of the charity before their appointment, having undertaken similar

duties within the charity or within a related organisation. Other present and former trustees are also available to help a

new trustee with his or her responsibilities and duties.

Key management remuneration

Each remunerated officer or member of staff of the charity receives the same standard staff remuneration from the

charity. This standard staff remuneration applies across all departments within the charity and to all offices of the charity

including the office of General Spiritual Director.

The level of the standard staff remuneration of the charity accords with the principle of Buddhist practice through public

service. It is reviewed from time to time by the Finance Committee of the charity and any changes must be approved by

special resolution of the charity in general meeting.

Wider network

All Member Centres of the NKT-IKBU are independent legal entities, bound together firstly by the common spiritual

lineage called the "New Kadampa Tradition" of Buddhism, and secondly by membership of the charity. The General

Spiritual Director ('GSD') of the NKT-IKBU is also the Spiritual Director of each Member Centre.

NKT- IKBU and all Member Centres are bound by and follow, guidelines known as A Moral Discipline Guide: The Internal

Rules of the New Kadampa Tradition - International Kadampa Buddhist Union (the 'Internal Rules'), the purpose of which

- to help maintain and improve the spiritual development of all Dharma Centres of the NKT-IKBU, generation after

generation.

- to help maintain a close and supportive relationship between all Dharma Centres of the NKT-IKBU

- to help facilitate the day-to-day running and spiritual management of the NKT-IKBU

In accordance with the Internal Rules, three of the executive officers of the charity; the General Secretary and Deputy

Secretary, and the Secretary of the General Spiritual Director support Member Centres in their spiritual and material

development.

Related parties

In furtherance of the charity's objects of promoting the Buddhist faith through the development of Kadampa Buddhism

worldwide, interest-free loans are made to Member Centres as outlined in the Financial Review section above. Charity

owned properties are also made available to be used by Member Centres often on a rent-free basis, for similar reasons of

assisting the Member Centre's development without undue external financial pressures.

Donations to the charity's International Temples Project Fund are also received from Member Centres. As these are

completely discretionary, donations received from Member Centres are not disclosed separately in the accounts.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls

are in place to provide reasonable assurance against fraud and error.

The trustees of the charity meet regularly to review the major risks to which the charity is exposed, and they have

established procedures to mitigate such risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02758093 (England and Wales)

Registered Charity number

1015054

Registered office

Conishead Priory

Priory Road

Ulverston

Cumbria

LA12 9QQ

Trustees

Jennifer J. Andrews (aka Kelsang Droljang), appointed on 24 July 2012

Paul A. P. Boseley, appointed 1 May 2018

Heather C. Wright (aka Kelsang Dekyong), appointed on 1 August 2009

Henry F. Shefveland (aka Kelsang Jampa), appointed on 10 January 2016

Executive Officers

The daily central administrative tasks of the charity are carried out by the four main executive officers, as follows:

General Secretary - Stephen P. Cowing

Deputy Secretary - Anthony Roy Tyson

Secretary of the General Spiritual Director - Lisa McGovern (aka Kelsang Ringyal)

Treasurer - Linda Cay (aka Kelsang Maitri)

Company Secretary

S P Cowing

Auditors

RfM Fylde Limited

Summerdale

Head Dyke Lane

Pilling

Lancashire

PR3 6SJ

Bankers

Barclays Bank PLC, 86-90 Dalton Road, Barrow-in-Furness, Cumbria, LA14 1JF

CCLA Investment Management Ltd, COIF Charity Funds, 80 Cheapside, London, EC2V 6DZ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of New Kadampa Tradition - International Kadampa Buddhist Union for the

purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view

of the state of affairs of the charitable company and of the incoming resources and application of resources, including the

income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees

are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time

the financial position of the charitable company and to enable them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, RfM Fylde Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to

small companies.

Approved by order of the board of trustees on 26 May 2020 and signed on its behalf by:

Ms H C Wright - Trustee

Opinion

We have audited the financial statements of New Kadampa Tradition - International Kadampa Buddhist Union (the

'charitable company') for the year ended 31 December 2019 which comprise the Statement of Financial Activities, the

Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary

of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable

law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 December 2019 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial

statements section of our report. We are independent of the charitable company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and

we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you

where:

-	the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant

doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of

at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the

Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained

in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent

material misstatements, we are required to determine whether there is a material misstatement in the financial statements

or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a

material misstatement of this other information, we are required to report that fact. We have nothing to report in this

regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the

charitable company for the purposes of company law) are responsible for the preparation of the financial statements and

for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary

to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis

of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no

realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance

with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent

Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members

those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the

charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Meikle FCA (Senior Statutory Auditor)

for and on behalf of RfM Fylde Limited

Summerdale

Head Dyke Lane

Pilling

Lancashire

PR3 6SJ

26 May 2020

2019

2018

Unrestricted

Restricted

Total

funds

Notes

INCOME AND ENDOWMENTS FROM

Donations and legacies

390,423

2,269,318

2,659,741

3,016,574

Charitable activities

International Festivals

1,411,834

1,903,670

Tharpa Publications

338,270

382,807

Manjushri Kadampa Meditation Centre

783,212

847,672

Shop and World Peace Cafe

330,119

326,836

Kadampa Art Studio and Internet

292,125

310,044

Properties Income

169,671

84,279

Investment income

692

579

Total

3,716,346

2,269,318

5,985,664

6,872,461

EXPENDITURE ON

Charitable activities

Grants Payable

279,583

286,132

International Festivals

418,641

1,138

419,779

633,337

Tharpa Publications

199,198

164,745

Manjushri Kadampa Meditation Centre

886,436

712

887,148

945,095

Kadampa Art Studio and Internet

336,727

280

337,007

348,797

Properties Expenditure

100,208

6,318

106,526

74,533

International Kadampa Development

1,064,734

982

1,065,716

555,108

Total

3,285,527

9,430

3,294,957

3,007,747

NET INCOME

430,819

2,259,888

2,690,707

3,864,714

RECONCILIATION OF FUNDS

Total funds brought forward

28,632,643

588,635

29,221,278

25,356,564

TOTAL FUNDS CARRIED FORWARD

29,063,462

2,848,523

31,911,985

29,221,278

2019

2018

Unrestricted

Restricted

Total

funds

Notes

FIXED ASSETS

Tangible assets

18,764,062

2,571,844

21,335,906

19,575,263

Investments

2,109

18,399

18,766,171

2,571,844

21,338,015

19,593,662

CURRENT ASSETS

Stocks

339,845

384,160

Debtors

10,850,216

7,876,184

Investments

142,443

148,293

Cash at bank

3,519,960

134,236

3,654,196

3,983,591

14,710,021

276,679

14,986,700

12,392,228

CREDITORS

Amounts falling due within one year

(1,491,456

)

(1,491,456

)

(627,396

)

NET CURRENT ASSETS

13,218,565

276,679

13,495,244

11,764,832

TOTAL ASSETS LESS CURRENT LIABILITIES

31,984,736

2,848,523

34,833,259

31,358,494

CREDITORS

Amounts falling due after more than one year

(2,921,274

)

(2,921,274

)

(2,137,216

)

NET ASSETS

29,063,462

2,848,523

31,911,985

29,221,278

FUNDS

Unrestricted funds

29,063,462

28,632,643

Restricted funds

2,848,523

588,635

TOTAL FUNDS

31,911,985

29,221,278

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2020 and were

signed on its behalf by:

H C Wright - Trustee

Cash flows from operating activities

Cash generated from operations

(7,344

)

4,104,459

Interest paid

(117,223

)

(73,932

)

Net cash (used in)/provided by operating activities

(124,567

)

4,030,527

Cash flows from investing activities

Purchase of tangible fixed assets

(2,426,406

)

(386,456

)

Sale of tangible fixed assets

555,479

Interest received

692

579

Transfer of funds held on deposit

5,850

Net cash used in investing activities

(1,864,385

)

(385,877

)

Cash flows from financing activities

New bank loans in year

1,007,000

1,008,050

Bank loan repayments in year

(180,382

)

(135,081

)

New concessionary loans in year

850,550

550

Concessionary loan repayments in year

(17,611

)

(2,078,885

)

Net cash provided by/(used in) financing activities

1,659,557

(1,205,366

)

Change in cash and cash equivalents in

the reporting period

(329,395

)

2,439,284

Cash and cash equivalents at the

beginning of the reporting period

3,983,591

1,544,307

Cash and cash equivalents at the end of

the reporting period

3,654,196

3,983,591

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2019

2018

Net income for the reporting period (as per the Statement of Financial

Activities)

2,690,707

3,864,714

Adjustments for:

Depreciation charges

128,772

103,382

Profit on disposal of fixed assets

(18,488

)

Interest received

(692

)

(579

)

Interest paid

117,223

73,932

Impairment of fixed assets

204,698

Impairment of investments

16,290

Decrease/(increase) in stocks

44,315

(61,777

)

Increase in debtors

(2,974,032

)

(120,715

)

(Decrease)/increase in creditors

(11,439

)

40,804

Net cash (used in)/provided by operations

(7,344

)

4,104,459

2.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/1/19

Cash flow

At 31/12/19

Net cash

Cash at bank

3,983,591

(329,395

)

3,654,196

3,983,591

(329,395

)

3,654,196

Liquid resources

Deposits included in cash

Current asset investments

148,293

(5,850

)

142,443

148,293

(5,850

)

142,443

Debt

Debts falling due within 1 year

(450,467

)

(875,499

)

(1,325,966

)

Debts falling due after 1 year

(2,137,216

)

(784,058

)

(2,921,274

)

(2,587,683

)

(1,659,557

)

(4,247,240

)

Total

1,544,201

(1,994,802

)

(450,601

)

1.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of

Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting

Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies

Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of

investments which are included at market value.

There are no material uncertainties about the charity’s ability to continue.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

In accordance with Regulation 19 of The Charities (Accounts and Reports) Regulations 2008, individually and in

aggregate, each of the subsidiary undertakings are not material for the purposes of giving a true and fair view.

On this basis, the financial statements contain information about New Kadampa Tradition - International Kadampa

Buddhist Union as an individual charity and do not contain consolidated financial information as the parent of a

group.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Critical accounting judgements and key sources of estimation uncertainty made by trustees and management in

preparing these financial statements which also have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year include:

- Depreciation and impairment of fixed assets

- Impairment provisions for concessionary loans made to centres

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, 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.

Income received in advance of a festival, course, retreat or for provision of other specified service it is deferred

until the criteria for income recognition are met.

Donated goods, services and facilities

Donated goods, professional services and 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.

On receipt, donated goods, professional services and 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.

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.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the

amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Grants payable

Grants offered subject to conditions which have not been met at the statement of financial position date are noted

as a commitment but not accrued as expenditure.

ALLOCATION AND APPORTIONMENT OF COSTS

Support costs that cannot be directly attributed to a specific activity are apportioned across all relevant activities

on the basis of time spent on each activity by NKT administrative employees.

TANGIBLE FIXED ASSETS

Tangible fixed assets are capitalised at cost. The costs of property repairs, replacement and maintenance are

written off as they are incurred. The charity onlycapitalises items costing more than £10,000.

Depreciation isprovided soas to write off the cost of fixed assets to their estimated residual values over their

expected useful lives, as follows:

Freehold property

Land is not depreciated

Listed buildings - Straight line over 350 years

Non-listed buildings - Straight line over 80 years

Other land and buildings - Straight line over 25-50 years

Long leasehold

Straight line over 80 years, or lease period if shorter

Fixtures and fittings

15% on reducing balance

Motor vehicles

Straight line over 4 years

Depreciation is charged on a monthly basis from the calendar month following acquisition or on the bringing into

use of the asset, whichever is the later. A full month is charged in the month of disposal.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Fixed assets and investments are subject to review for impairment when there is an indication of a reduction in

their carrying value.

Anyimpairment is recognised in the year in which it occurs in the corresponding SOFA category.

Current asset investments

Current asset investments are measured at cost and comprise of cash balances set aside in separate bank

accounts for specific restricted purposes.

STOCKS

Stock is included at the lower of cost or net realisable value after making due allowance for obsolete and slow

moving items. 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.

TAXATION

The charity is exempt from corporation tax on its charitable activities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

FINANCIAL INSTRUMENTS

Concessionary loans

The charity meets the definition of a Public Benefit Entity ("PBE") and applies the measurement provisions of FRS

102 paragraphs PBE34.89-PBE34.97 to all its concessionary loans.

Financial instruments

The charity has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments that are not

concessionary loans.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at

transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each

reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment.

If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of

the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is

recognised in income or expenditure.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised,

the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the

carrying amount would have been had the impairment not previously been recognised. The impairment reversal is

recognised in income or expenditure.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are

settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party

or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been

transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party

without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and

preference shares that are classified as debt, 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

receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid

on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is

probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down

occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the

fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it

relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts 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 payables are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest.

Impairment

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets

have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any

affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the

carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised

immediately in income or expenditure.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of

its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss

been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in

income or expenditure.

2.	DONATIONS AND LEGACIES

2019

2018

Donations

2,659,741

3,016,574

3.	INVESTMENT INCOME

2019

2018

Deposit account interest

692

579

4.	INCOME FROM CHARITABLE ACTIVITIES

2019

2018

Activity

Festivals

International Festivals

1,411,834

1,903,670

Tharpa Publications

338,270

382,807

Manjushri Centre Activities

Manjushri Kadampa Meditation Centre

783,212

847,672

Shop and World Peace Cafe

330,119

326,836

Kadampa Art Studio Activities

Kadampa Art Studio and Internet

292,125

310,044

Properties Income

169,671

84,279

3,325,231

3,855,308

5.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

Direct

(see note

costs (see

Costs

note 7)

Totals

Grants Payable

279,583

International Festivals

414,865

4,914

419,779

Tharpa Publications

193,901

5,297

199,198

Manjushri Kadampa Meditation Centre

880,163

6,985

887,148

Kadampa Art Studio and Internet

336,092

915

337,007

Properties Expenditure

52,955

53,571

106,526

International Kadampa Development

872,376

193,340

1,065,716

2,750,352

279,583

265,022

3,294,957

Included within International Kadampa Development are foreign currency losses of £175,258.

6.	GRANTS PAYABLE

2019

2018

Grants Payable

279,583

286,132

The total grants paid to institutions during the year was as follows:

2019

2018

Gifts to Centres

279,583

286,132

Gifts to Centres include the following donations:

2019

2018

Grants for Kadampa Art Studio - 2019: 9 (2018: 19)

256,138

262,631

Gifts to Centres - 2019: 4 (2018: 4)

23,445

23,501

279,583

286,132

7.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

International Festivals

3,024

1,890

4,914

Tharpa Publications

1,717

2,642

938

5,297

Manjushri Kadampa Meditation Centre

4,302

2,683

6,985

Kadampa Art Studio and Internet

564

351

915

Properties Expenditure

53,571

International Kadampa Development

11,483

181,857

193,340

21,090

2,642

241,290

265,022

Activity

Basis of allocation

Management

NKT administrative employees

Finance

NKT administrative employees

Governance costs

NKT administrative employees

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2019

2018

Depreciation - owned assets

128,772

103,381

Surplus on disposal of fixed assets

(18,488

)

Exchange (gains)/losses

174,692

10,539

)

Impairment of tangible fixed assets

204,698

Impairment of fixed asset investments

16,290

Provision for unrecoverable loans

120,842

81,779

)

Loans written off

177,637

136,246

9.	AUDITORS' REMUNERATION

2019

2018

Fees payable to the charity's auditors for the audit of the charity's financial

statements

10,200

10,000

Audit-related assurance services

2,827

2,846

Total fees payable

13,027

12,846

10.	TRUSTEES' REMUNERATION AND BENEFITS

2019

2018

Trustees' salaries

8,273

7,680

During the year Heather C. Wright (aka Kelsang Dekyong) received the standard remuneration applicable to all

officers and staff members of the charity amounting to £8,273 (2018: £7,680) for her role as a Resident Teacher.

No other trustees' received any remuneration or benefits for the year ended 31 December 2019 nor for the year

ended 31 December 2018.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 December 2019 nor for the year ended

31 December 2018.

11.	STAFF COSTS

2019

2018

Wages and salaries

250,039

278,243

250,039

278,243

The average monthly number of employees during the year was as follows:

2019

2018

Manjushri Centre

Tharpa Publications

Kadampa Art Studio and Hosting

Support and Administration

Kadampa Hotels and School

No employees received emoluments in excess of £60,000.

All charity employees receive the same standard staff remuneration which applies across all departments and to

all offices of the charity. The level of the standard staff remuneration of the charity accords with the principle of

Buddhist practice through public service.

Volunteers

All aspects of the day to day functioning of Manjushri KMC, Conishead Priory, are run by members of the

residential community together with volunteers from the extended community in the local area. The support of the

community, as an expression of their service to the public, means that the charity can operate with relatively low

staff numbers.

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,878,856

137,718

3,016,574

Charitable activities

International Festivals

1,903,670

Tharpa Publications

382,807

Manjushri Kadampa Meditation Centre

847,672

Shop and World Peace Cafe

326,836

Kadampa Art Studio and Internet

310,044

Properties Income

84,279

Investment income

579

Total

6,734,743

137,718

6,872,461

EXPENDITURE ON

Charitable activities

Grants Payable

286,132

International Festivals

630,463

2,874

633,337

Tharpa Publications

164,741

164,745

Manjushri Kadampa Meditation Centre

944,738

357

945,095

Kadampa Art Studio and Internet

344,836

3,961

348,797

Properties Expenditure

74,533

International Kadampa Development

553,351

1,757

555,108

Total

2,998,794

8,953

3,007,747

NET INCOME

3,735,949

128,765

3,864,714

RECONCILIATION OF FUNDS

Total funds brought forward

24,896,695

459,869

25,356,564

TOTAL FUNDS CARRIED FORWARD

28,632,644

588,634

29,221,278

13.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Long

and

Motor

property

leasehold

fittings

vehicles

Totals

COST

At 1 January 2019

17,750,053

2,628,859

233,905

22,486

20,635,303

Additions

2,367,575

58,831

2,426,406

Disposals

(1,101,119

)

(5,235

)

(1,106,354

)

At 31 December 2019

19,016,509

2,628,859

292,736

17,251

21,955,355

DEPRECIATION

At 1 January 2019

806,301

22,804

210,848

20,087

1,060,040

Charge for year

97,885

22,804

8,083

128,772

Eliminated on disposal

(566,527

)

(2,836

)

(569,363

)

At 31 December 2019

337,659

45,608

218,931

17,251

619,449

NET BOOK VALUE

At 31 December 2019

18,678,850

2,583,251

73,805

21,335,906

At 31 December 2018

16,943,752

2,606,055

23,057

2,399

19,575,263

Included within freehold property additions is an inherited proportion of land and buildings for which a lease is

currently in place, as detailed within the leases note. As the purpose of acquiring this property was to further the

aims and objectives of the charity it has been accounted for in line with FRS 102 Section 16 - Property, plant and

equipment and not FRS 102 Section 17 - Investment Property.

14.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

MARKET VALUE

At 1 January 2019 and 31 December 2019

18,399

PROVISIONS

Impairments

16,290

NET BOOK VALUE

At 31 December 2019

2,109

At 31 December 2018

18,399

The net book value of investments comprises:

2019

2018

Investments in the UK

Investments outside the UK

2,109

18,399

Following the sale of the property in Holland, the investment in Hotel Kadampa Holland B.V. has been impaired in

full by £16,290 ahead of the liquidation of the company in 2020.

The company's investments at the balance sheet date in the share capital of companies include the following:

New Kadampa Tradition KMC Spain S.L.

Registered office: Registered in Spain

Nature of business: Rental services

Class of share:

holding

Ordinary

100

2019

2018

Aggregate capital and reserves

(147,033

)

(126,056

)

Loss for the year

(27,049

)

(29,979

)

The summary results for the year were as follows:

2019

2018

Gross income

21,613

Expenditure

(27,049

)

(51,592

)

Deficit

(27,049

)

(29,979

)

Hotel Kadampa Holland B.V.

Registered office: Registered in the Netherlands

Nature of business: Hotel Services

Class of share:

holding

Ordinary

100

2019

2018

Aggregate capital and reserves

873

(154,613

)

Profit for the year

147,444

65,987

The summary results for the year were as follows:

2019

2018

Gross income

12,632

136,376

Expenditure

(17,332

)

(70,389

)

Loans written off

152,144

Surplus

147,444

65,987

15.

STOCKS

2019

2018

Goods for resale

339,845

384,160

16.

DEBTORS

2019

2018

Amounts falling due within one year:

Trade debtors

127,615

48,361

Concessionary loans to Centres

9,160,157

6,273,550

VAT

855

Prepayments and accrued income

39,606

29,392

9,328,233

6,351,303

Amounts falling due after more than one year:

Concessionary loans to Centres

1,521,983

1,524,881

Aggregate amounts

10,850,216

7,876,184

Concessionary loans to centres are interest-free and stated after taking into consideration provisions against

potentially unrecoverable debts of £586,023 (2018: £205,337). Loans repayable on demand are classed as current

assets. Fixed term loans are repayable in full at a future date as stated within the loan agreements and are

classed as current asset or long term assets as appropriate to the repayment date in each agreement.

Included within concessionary loans are loans for which the following securities have been pledged:

- £245,777 Loan to KMC Cape Town, South Africa, secured against property owned by Tushita KBC

- £1,183,342 Loan to Nordic KMC, Norway, secured against property owned by Nordisk Kadampa

Meditasjonssenter (Nordic KMC)

- £1,744,858 Loan to KMC Stockholm, Sweden, secured against property owned by Kadampa Meditationscenter

Stockholm (KMC Stockholm)

In line with the objectives and aims of the charity, the concessionary loans have been provided to other Centres in

order to support those Centres to increase the Buddhist Faith throughout the world.

The concessionary loans to Centres, before provision for potentially unrecoverable debts is comprised of:

2019

2018

Loans due within one year - 2019: 25 (2018: 23)

9,746,180

6,478,887

Loans due after more than one year - 2019: 4 (2018: 4)

1,521,983

1,524,881

11,268,163

8,003,768

17.	CURRENT ASSET INVESTMENTS

2019

2018

Cash held on deposit

142,443

148,293

Cash held on deposit relates to funds required by the Spanish Government to be set aside until the completion of

the Spanish Temple Project. These funds are required to be held on deposit until approval has been granted by

the Spanish Government that these funds can be released.

18.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

Bank loans and overdrafts (see note 20)

208,045

165,485

Other loans (see note 20)

1,117,921

284,982

Trade creditors

85,856

73,545

VAT

7,082

Other creditors

12,503

Accruals and deferred income

67,131

96,302

1,491,456

627,396

19.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

Bank loans (see note 20)

2,921,274

2,137,216

20.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

Amounts falling due within one year on demand:

Bank loans

208,045

165,485

Concessionary loans from Centres

1,117,921

284,982

1,325,966

450,467

Amounts falling between one and two years:

Bank loans 1-2 years

217,046

172,487

Amounts falling due between two and five years:

Bank loans 2-5 years

2,251,156

1,357,672

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans more than 5 years by instalments

453,072

607,057

Concessionary loans from Centres are interest-free. Loans repayable on demand are classed as current liabilities.

Fixed term loans are repayable in full at a future date as stated within the loan agreements and are classed as

current liabilities or long term liabilities as appropriate to the repayment date in each agreement.

The concessionary loans from Centres is comprised of:

2019

2018

Other loans from Centres - 2019: 2 (2018: 1)

856,921

6,961

Loans from individuals - 2019: 4 (2018: 4)

261,000

278,061

1,117,921

284,982

21.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

Bank loans

3,129,319

2,302,701

Properties with a combined net book value of £10,777,028 have been pledged as security against secured debts.

22.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At 1/1/19

in funds

funds

31/12/19

Unrestricted funds

General funds

22,662,643

430,819

(330,000

)

22,763,462

Designated Funds

5,970,000

330,000

6,300,000

28,632,643

430,819

29,063,462

Restricted funds

Spanish Temple Fund

455,299

8,987

464,286

KMC Cuernavaca, Mexico

124,785

Leeds Property

2,250,000

Other Funds

8,551

901

9,452

588,635

2,259,888

2,848,523

TOTAL FUNDS

29,221,278

2,690,707

31,911,985

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

Unrestricted funds

General funds

3,716,346

(3,285,527

)

430,819

Restricted funds

Spanish Temple Fund

8,987

Leeds Property

2,256,318

(6,318

)

2,250,000

Other Funds

4,013

(3,112

)

901

2,269,318

(9,430

)

2,259,888

TOTAL FUNDS

5,985,664

(3,294,957

)

2,690,707

Comparatives for movement in funds

Net

Transfers

movement

between

At 1/1/18

in funds

funds

31/12/18

Unrestricted funds

General funds

24,546,695

3,735,948

(5,620,000

)

22,662,643

Designated Funds

350,000

5,620,000

5,970,000

24,896,695

3,735,948

28,632,643

Restricted funds

Spanish Temple Fund

451,504

3,795

455,299

KMC Cuernavaca, Mexico

124,785

Other Funds

8,365

186

8,551

459,869

128,766

588,635

TOTAL FUNDS

25,356,564

3,864,714

29,221,278

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

Unrestricted funds

General funds

6,734,743

(2,998,795

)

3,735,948

Restricted funds

Spanish Temple Fund

3,795

KMC Cuernavaca, Mexico

124,785

Other Funds

9,138

(8,952

)

186

137,718

(8,952

)

128,766

TOTAL FUNDS

6,872,461

(3,007,747

)

3,864,714

A current year 12 months and prior year 12 months combined position is as follows:

Net

Transfers

movement

between

At 1/1/18

in funds

funds

31/12/19

Unrestricted funds

General funds

24,546,695

4,166,767

(5,950,000

)

22,763,462

Designated Funds

350,000

5,950,000

6,300,000

24,896,695

4,166,767

29,063,462

Restricted funds

Spanish Temple Fund

451,504

12,782

464,286

KMC Cuernavaca, Mexico

124,785

Leeds Property

2,250,000

Other Funds

8,365

1,087

9,452

459,869

2,388,654

2,848,523

TOTAL FUNDS

25,356,564

6,555,421

31,911,985

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are

as follows:

Incoming

Resources

Movement

resources

expended

in funds

Unrestricted funds

General funds

10,451,089

(6,284,322

)

4,166,767

Restricted funds

Spanish Temple Fund

12,782

KMC Cuernavaca, Mexico

124,785

Leeds Property

2,256,318

(6,318

)

2,250,000

Other Funds

13,151

(12,064

)

1,087

2,407,036

(18,382

)

2,388,654

TOTAL FUNDS

12,858,125

(6,302,704

)

6,555,421

Restricted Income Funds

Spanish Temple Fund

Donations in Spain have been given to provide funds to construct a Kadampa Temple and to extend

accommodation in preparation for the Temple in Spain.

KMC Cuernavaca, Mexico Fund

The KMC Cuernavaca, Mexico Fund is held by NKT-IKBU until KMC Cuernavaca is legally registered and ready to

receive donations.

Leeds Property Fund

The Leeds Property Fund is to provide funds to renovate the property in Leeds City Centre acquired in 2019 which,

once completed, will be used as a Kadampa Meditation Centre at which point it will form part of the charity's

unrestricted charitable activities and will be transferred to unrestricted funds.

Other Funds

Other Funds are to account for monies received in respect of small projects.

Unrestricted Income Funds

Designated Fund

To ensure the charity's ability to further its objects both in the UK and internationally, the trustees have designated

funds for the development and support of International Temples Project activities worldwide. The trustees further

consider reserves equal to one year's running costs and three years of building repair and maintenance costs a

suitable level to protect the charity in case of adverse financial events. This is reviewed annually by the trustees.

General Fund

The general unrestricted fund represents free funds of the charity which can be applied at the discretion of the

trustees.

23.	CAPITAL COMMITMENTS

2019

2018

Contracted but not provided for in the financial statements

46,247

The capital commitment in 2018 relates to equipment for the Kadampa Art Studio ordered in October 2018, which

was delivered in April 2019.

24.	RELATED PARTY DISCLOSURES

New Kadampa Tradition KMC Spain S.L.

Subsidiary

New Kadampa Tradition KMC Spain S.L. operate from premises in Spain owned by NKT-IKBU. Rent of £40,420

(2018: £21,613) has been charged on this property.

At 31 December 2019 £1,127,561 (2018: £1,240,815) was owed by New Kadampa Tradition KMC Spain S.L. after

taking into consideration provisions against potentially unrecoverable debts of £168,236 (2018: £34,422).

Hotel Kadampa Holland B.V.

Subsidiary

Hotel Kadampa Holland B.V. operate from premises in Holland owned by NKT-IKBU on a rent-free basis.

During the year, loans totalling £170,361 were written off.

At 31 December 2019 £Nil (2018: £Nil) was owed by Hotel Kadampa Holland B.V. after taking into consideration

provisions against unrecoverable debts of £Nil (2018: £170,361).

KMC France and Bodhichitta IRC

Members

KMC France and Bodhichitta IRC operate from premises in France owned by NKT-IKBU. Rent of £56,973 (2018:

£62,666) has been charged on this property.

KMC Spain

Member

KMC Spain operates from premises in Spain owned by NKT-IKBU on a rent-free basis.

Tharpaland IRC

Member

Tharpaland IRC operates from premises in Germany owned by NKT-IKBU on a rent-free basis.

KMC Singapore

Member

KMC Singapore operate from premises in Singapore owned by NKT-IKBU on a rent-free basis.

KMC London

Member

KMC London operate from premises in London owned by NKT-IKBU on a rent-free basis.

KMC Paris

Member

KMC Paris operate from premises in Paris owned by NKT-IKBU on a rent-free basis.

KMC Edinburgh

Member

KMC Edinburgh operate from premises in Edinburgh owned by NKT-IKBU on a rent-free basis.

Key management personnel compensation

The total key management personnel compensation for the year was £22,708 (2018: £22,668).

25.	ULTIMATE CONTROLLING PARTY

The charity is controlled by its members.

26.	FINANCIAL INSTRUMENTS

The charity has the following financial instruments:

2019

2018

Financial assets that are debt instruments measured at amortised

cost

Trade debtors

127,615

48,361

Concessionary loans to centres (after provision for potential unrecoverable

debts)

10,941,984

7,798,431

Cash held on deposit

142,443

148,293

11,212,042

7,995,085

Financial liabilities measured at amortised cost

Bank loans

(3,129,319

)

(2,302,701

)

Other loans - Concessionary loans from centres

(1,117,921

)

(284,982

)

Trade creditors

(85,856

)

(73,545

)

(4,333,096

)

(2,661,228

)

27.	OPERATING LEASES - LESSOR

Operating leases primarily relate to land leases. Rents receivable of £78,633 (2018: £Nil) have been recognised

within properties income in the period. At the balance sheet date there was one lease in place with a remaining

contractual term of 4 years ending 5th January 2023.

The future minimum lease payments receivable under non-cancellable operating leases are as follows:

2019

2018

Within one year

103,566

Between one and five years

207,132

310,698