TEIKYO_FOUNDATION_(UK) - Accounts

The trustees, who are also Directors of the charitable company for the purposes of the Companies Act 2006, present their Annual Report with the Consolidated Financial Statements of th Company for the year ended 31 March 2020. The Financial Statements 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)’, and Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006’.

Teikyo Foundation is a Charitable Company founded on 12 December 1990, Charity Registration number 1001232, Company registration number 02540502, with the liability of its members limited to £1 each by guarantee. The Registered Office and principal address of the Company is at Framewood Road, Wexham, Buckinghamshire, SL2 4QS.

The Charitable Company’s objects are to advance the education and training of school children and students, members of Teikyo University, Tokyo, Japan, its schools and other educational institutions administered by it, and to advance the education and training of other persons, in the United Kingdom and elsewhere.

In setting the Charity’s objectives and planning its activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

To fulfil the objects the Charitable Company comprises of 4 divisions, as follows:-

(a) Teikyo School United Kingdom

Teikyo School is a Senior High School located in Wexham, Buckinghamshire for Japanese boys and girls aged from 15 to 18. It provides boarding and day facilities. The School is responsible to the Japanese Department of Education (Monbukagakusho) and provides education in accordance within the Monbukagakusho’s remit. Students are recruited from throughout the World and fees are generally less than those charged by similar independent schools in Great Britain because they are subsidised by the Foundation. The School is registered with the Department for Education (reference number 825 / 6013), and is a member of the Independent Schools Association, The Independent Schools Council, The Boarding Schools Association and the Independent Schools Bursars’ association.

( b) Teikyo University of Japan at Cambridge

Teikyo University of Japan at Cambridge provides for up to 9 Okinaga Scholars – post graduate Japanese scholars personally selected from open competition – to study for PhD degrees at Cambridge University. The students are members of St Edmund’s College with whom Teikyo University has a 90 year agreement.

(c) Teikyo Study Abroad Programmes

Teikyo Foundation (UK) offers year-round Educational Study Abroad Programmes to Teikyo’s Universities, College and Schools from Japan and students from all parts of the world. Some 300 students each year enjoy Teikyo’s facilities at Wexham, Oxford and Durham.

(d) Teikyo Foundation (UK)

The Foundation’s considerable funds provide financial support to all its divisions when required. The above autonomous divisions are susceptible to changing student rolls due to changes in Japan’s economy, changing birth rates and the volatile political world. To counter any substantial financial loss, the Foundation has extensively diversified its educational activities within its Objects.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

PRINCIPAL ACTIVITY

Teikyo Foundation (UK)’s principal activity continues to be the operation of the Teikyo School and the provision of the various study programmes described above.

Teikyo Foundation (UK)’s Teikyo School is registered with the Department for Education for the promotion and maintenance of educational standards and meeting statutory requirements. In addition the Teikyo School has a close working relationship with The International School of Creative Arts, a language school and leisure and sports providers in the local community and further afield. The charity co-operates and works with these organisations in order to further local community access to the educational facilities on site and to optimise the use of its cultural and sporting facilities.

OBJECTIVES FOR THE YEAR

The Board’s main objective was to continue to pursue the education of Teikyo’s students be they School or Study Abroad Programme students, in order to help students develop and fulfil their potential to the highest level and to contribute to the wider community in which they live. Additionally, the Board aims to maximise the use of the facilities at the School by extending educational programmes both academic and in leisure to students from all over Great Britain and the world.

TEIKYO SCHOOL (UK)

The TS (UK) student roll in the academic year 2019-2020 decreased from 63 to 60. Fee income was £1,208,680 (2019: £1,230,320). The Board regularly reviews the student roll in order to maintain it at an appropriate level.

The English curriculum of Teikyo School is evolving to attract more students from Japan wishing to enter university in the UK or countries outside Japan. This includes the establishment of a dedicated IELTS class, a presentation and report writing skills class, and a more academic leaning across the whole syllabus. Going forward the goal is to arm all students with a sound, applicable and relevant knowledge of English to raise the overall academic level of current and future students.

During the year the students at the School and on short-course programmes continued to benefit from the formal educational activities offered as well as contributing to the wider community through involvement in exchange days with local schools and contributing to local events such as ‘Fulmer Activity Day’ and ‘Fulmer Day’ in May and June.

The sports facilities at the School have been made available to various groups in the local and wider community such as sports and football clubs and swimming clubs. Subsidised rates are offered to non-profit making concerns.

The School has continued to host organised language schools and activity centres during the year and continues to provide facilities to the International School of Creative Arts which was started in September 2009.

The results for the year ended 31 March 2020 are shown in the Statement of Financial Activities. Net incoming resources before investment gains/losses were £496,941 (2019 : £6,790) . Net incoming resources for the year after investment gains or losses were £1,494,835 (2019: £797,164). Unrestricted funds at 31 March 2020 were £13,930,494 (2019 : £12,435,659).

The Charitable Company is prevented by its Memorandum from paying its surplus, if any, to its members and accordingly no dividends are payable.

Fixed assets

Details of changes in fixed assets are shown in notes 12 and 13 .

RESERVES POLICY

The policy is to hold reserves sufficient to fund the activities of Teikyo in the U.K. including the Okinaga scholarship scheme, academic visits and the on-going major refurbishment of Teikyo’s facilities at Wexham, and to safeguard the Charity for the foreseeable future. It is envisaged that the reserves held in investments and in cash will be required to meet these commitments in the future. At 31 March 2020 liquid reserves represented by net current assets were £7,685,931 (2019 : £7,193,041).

INVESTMENT POLICY AND OBJECTIVES

The Company has absolute powers of investment of its corporate reserves. The Board continue to keep under review the investment risks and rewards and the current state of the market. The Board’s policy for 2019 -20 was to place all available retained funds, other than those required for day to day cash management, with Pictet & Cie Limited, the National Westminster Special Investment Account, the Bank of Tokyo Mitsubishi Deposit and National Westminster Corporate Bonds. Investments are reviewed regularly by the Board and professional advice is taken from Pictet & Cie Limited and other advisers as appropriate.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the Company are declining student numbers, loss of key staff, non-compliance with the applicable regulations, including health and safety, welfare and safeguarding, and deterioration to the infrastructure and property as a result of wear and tear and age. In mitigation, the School is looking to commence a new student recruitment programme with the possibility of offering sports scholarships to boost student numbers, and continues to work closely with the Teikyo Foundation in Japan to recruit new students. The School continues to review operating policies and procedures and is also reviewing safety arrangements on the campus and trip and travel arrangements for students. There is an on-going maintenance and refurbishment programme covering the teaching facilities and accommodation blocks.

Financial risk arises from any potential decline in student numbers or other charitable activity and income, but this is mitigated by the holding of significant financial reserves.

Covid-19

In the spring it was becoming evident that Covid-19 was having a severe disruption on many countries and on 19 March the World Health Organisation declared it was a pandemic. This resulted in ISCA students being called back home by their parents and them not attending the summer term. ISCA management asked for a reduction in fees because we were not providing any boarding facilities. Teikyo Foundation agreed compensation of £60,000. Cancellation of the ISCA Summer School was inevitable due to the worldwide lockdown which also meant the TSAP groups scheduled for spring and summer had to be cancelled. The financial impact for 2019 2020 is approximately £150,000.

The on-going impact of the pandemic is expected to have a material impact on the financial results and position for the year to 31 March 2021. Ardmore Language School cancelled their summer courses and the swim clubs were unable to use our swimming pool facilities for April, May, and June. To date, actual losses are estimated to be over £270,000, but we expect further claims for compensation from ISCA as their student numbers decrease.

Despite a concerted effort to promote the School through advertising and marketing, student numbers may not increase significantly. Teikyo Foundation has enrolled in the Government’s job retention (furlough) scheme.

GRANT-MAKING

The charity intends in the future to support further post graduate students at Wadham College Oxford, St Edmunds’s College Cambridge and Harvard University through the Okinaga Scholarship Scheme.

FUTURE PLANS

The Trustees will continue to develop links with the local community and groups in the future to enable the wider public community to continue to benefit from the activities and facilities and to broaden the educational experience of the Teikyo students.

The Charitable Company is a registered Charity, governed by its Memorandum and Articles of Association, and is engaged in providing educational facilities to Japanese and other nationals. Its Memorandum and Articles of Association dated 25 July 1990, were last amended on 14 February 2002. The articles have been re-written and will be put forward for approval at the next annual meeting.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

The members are Mr Y Okinaga and the Teikyo University Foundation (Japan). They are able to appoint trustees by Resolution of a Meeting or by Written Resolution.

New Trustees who are also the Directors are inducted into the workings of the Company as a registered Charity, including Board Policy and Procedures.

The Trustees meet as a Board at least once a year to determine the ‘general policy’ of the Company and review its overall management and control, for which they are legally responsible. The work of implementing most of the Board’s policies is delegated to the General Manager.

Guarantors

Amounts guaranteed at 31st March 2020 (and 2019)

£         

Mr Y Okinaga                                  1         

Teikyo University Foundation                          2         

The Charity does receive financial support from Teikyo University of Japan. Mr Y Okinaga is considered to be a key individual continuing the vision of Dr S Okinaga.

Statement of risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed. The Trustees and management continue to keep the charity’s activities under review, particularly with regard to any major risks that may arise as well as the systems and procedures established to manage them. Management monitors the effectiveness of internal controls and other viable means by which risks identified can be mitigated.

The Trustees meet as a Board at least once a year to determine the ‘general policy’ of the Company and review its overall management and control, for which they are legally responsible. The work of implementing most of the Board’s policies is delegated to the General Manager.

Mr Y Okinaga is also a guarantor of Teikyo University of Japan in Durham whose main activity is also the provision of educational facilities to Japanese nationals and is located in the grounds of Durham University.

On 7 September 2020, Group Audit Services Limited (trading as Wilkins Kennedy Audit Services) changed its name to Azets Audit Services Limited. The name it practices under is Azets Audit Services and, accordingly, it has signed the Report of the Independent Auditors in its new name.

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

The trustees, who are also the directors of Teikyo Foundation (UK) for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

Opinion

We have audited the financial statements of Teikyo Foundation (UK) (the ‘charity’) for the year ended 31 March 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 March 2020 and of its incoming resources and application of resources, for the year then ended;

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

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.

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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. 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.

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

the information given in the trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which 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

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

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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 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 an auditor's report 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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Teikyo Foundation (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is Framewood Road, Wexham, Slough, Buckinghamshire, SL2 4QS, United Kingdom.

The financial statements of the charitable company have been prepared in accordance with the Companies Act 2006 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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. 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.

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

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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 financial statements.

School and college fees, investment income, bank interest and other income are accounted for when receivable. Investment income is interest received on bank deposits and bonds.

Income is deferred proportionately where courses fall partly or fully in subsequent periods.

The value of donated services is included in the Statement of Financial Activities where the benefit to the Charitable Company is reasonably quantifiable and measurable. The value recognised is the price the Charity would expect to pay for a similar service or facility on the open market.

Direct charitable expenditure comprises services supplied and activities undertaken which are identifiable as wholly or mainly in support of the Charitable Company’s objectives. Those costs shown as governance relate to compliance with constitutional and statutory requirements. The Trustees have reviewed certain cost allocations and have included support costs of £443,415 (2019: £371,280) within direct charitable expenditure (see note 6), as they consider this more fairly represents the nature of the costs. ,

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

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 recognised in net income/(expenditure) for the year.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

At each reporting end date, the charity 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).

Cash and cash equivalents 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.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.

Basic financial liabilities, including creditors and bank 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 operations 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.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure for the period.

Consolidation

The group accounts consolidate the Charitable Company and its subsidiary Teikyo Services (UK) Limited for the year ended 31 March 2020.

In the application of the charity’s accounting policies, the trustees 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.

Donated services includes £45,998 (2019 : £47,264) in respect of staff seconded from Teikyo University pf Japan, the amount has been included in salaries as appropriate.

Charitable Income

Charitable Income

Charitable Expenditure

Charitable Expenditure

Electricity

Gas

Rates and council tax

Water rates

Catering

Transport

Estate management

Redecoration and refurbishment

Short course expenses

Bank charges

Professional support costs

Loss on disposals

Management and administration

Taxation

Charitable Expenditure

Charitable Expenditure

The average monthly number of employees during the year was:

Fixed asset investments

(b)    Share in subsidiary undertaking

The Charitable Company’s investment in its subsidiary company represents the cost of the acquisition of 100% (50,000 shares) of the ordinary share capital of Teikyo Services (UK) Limited, a company registered in England. The subsidiary operates a school shop and receives income from letting of the school accommodation and facilities. At 31 March 2020, the net liabilities of Teikyo Services (UK) Limited amounted to £177,362 (2019: £180,639) of which an amount of £314,013 (2019: £314,013) was owed to Teikyo University of Japan, which has undertaken not to seek repayment. The profit for the year was £3,277 (2019: loss £1,457). The total income for the year ended 31 March 2020 was £56,254 (2019: £176) with associated expenditure of £52,550 (2018: £1,633).

The accumulated losses of Teikyo Services (UK) Limited have been underwritten by Teikyo University of Japan. Teikyo Foundation (UK) will not, therefore, suffer as a result of the losses made by its subsidiary company. The audited financial statements of Teikyo Services (UK) Limited have an unqualified audit report.

There is no taxation charge for the company for the current year, due to the charitable status of the company.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The Charitable Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charitable Company in an independently administered fund. The pension cost charge represents contributions payable by the Charitable Company to the fund and amounted to £88,228 (2019: £77,834).

During the year ended 31 March 2020 the Charity recharged payroll costs of £392,394 (2019: £327,604) to Teikyo University of Japan in Durham, a related charity. At 31 March 2020 an amount of £1,186,066 was due from Teikyo University of Japan in Durham (2019 : £1,258,762).

During the year key management compensation was £99,756 (2019: £99,434).

Mr Y Okinaga is also a guarantor of Teikyo University of Japan in Durham, a registered charity whose main activity is also provision of educational facilities to Japanese nationals and which is based in Durham and Oxford.

The Charitable Company is a company limited by guarantee with no share capital. The liability of each member under guarantee does not exceed the sum of £1. The number of members at 31 March 2020 was 2 (2019: 2).

The group uses a property owned by Teikyo University of Japan for its principal activities. These premises are occupied rent free subject to the group meeting the full cost of maintaining the premises.

The Foundation has net incoming resources of £1,491,558 (2019: £798,622) in its own statement of financial activities.

The charity had no debt during the year.

An audit has been carried out under the Companies Act 2006 which also satisfies the audit requirements of the Charities Acts of 2011.