The Slough Sikh School Trust - Charities report - 21.1

REGISTERED COMPANY NUMBER: 04786088 (England and Wales)

REGISTERED CHARITY NUMBER: 1103498

Report of the Trustees and

Financial Statements for the Year Ended 31 August 2020

for

The Slough Sikh School Trust

Page

Report of the Trustees

1

to

5

Report of the Independent Auditor

6

to

9

Statement of Financial Activities

10

Balance Sheet

11

Notes to the Financial Statements

12

to

19

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 August 2020. 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

The initial objectives of the trust was that of establishing a primary school to further the education of members of the public living in the town of Slough or the neighbourhood thereof, conducted in accordance with the principles and traditions of the Sikh religion.

This initial aim has been fulfilled and the school has been built and was opened in September 2007.

The trust has secondary aims which include running a Sunday Punjabi language teaching school which is run weekly on Sundays during term times only. The charity operates the Sunday Punjabi school which caters for around 175-200 pupils. The school does not have any measurable goals but for those children wishing to sit the GCSE or 'A' levels in Punjabi, the school prepares them for the exams. The charity also helps the day school by providing the services of a priest.

Historically the charity has also held a summer camp for one week during the summer holidays during which the pupils are taught about Sikh history, culture and the principals of the Sikh faith. The camp is well attended and around 350-400 pupils attend each year. Due to the covid pandemic the trust has had to cancel the summer camp. No camp was held in July/August 2020.

ACHIEVEMENT AND PERFORMANCE

Investment performance

The charitable company's basic investment objective is to maintain the real value of its investment and to maximise income. In order to do this, any excess funds have to be placed in a deposit account which is both a safe investment and gives a reasonable rate of return, though at present this target is difficult to achieve as a result of the very low rates of interest on offer from Banks & Building societies.

The charity measures performance by the fulfilment of its undertakings. To this end all of the aims have been satisfied, and in all cases the pupils in the school, the school community and indeed the wider community in Slough have benefitted from the charity's activities. The achievements of the charity and the related school have been covered in the section headed 'Objectives & aims'. The financial performance of the charity has been dealt with under the title of 'financial review'.

FINANCIAL REVIEW

Principal funding sources

The principal funding sources of the charity are donation income and fund raising income for its day to day activities and the running of the Sunday school. The charity does not use the services of outside fundraisers. However, since March 2020 the charity has had to curtail a lot of its activities due to lock downs imposed by the Government.

Reserves policy

The trustees have reviewed the policy on reserves and are of the opinion that taking into account the present levels of income and expenditure,the balance of free reserves is reasonable. Income from donations and other fund raising activities can fluctuate. Whilst donations have mainly been unrestricted, the very nature of the charity's principal activity means that donors have a reasonable expectation that funds will mainly be targeted towards the upkeep of the school buildings and the furtherance of the running of the Sunday Punjabi school and assisting the main school with grants. Grants receivable from DfE are restricted in their use and in any case have been dependent on expenditure being incurred.

Review for period

The Statement of Financial Activities for the year on page 10 shows net incoming resources for the trust of £65,460 (2019 14 months £156,233). In practice most of the funds received by the trust during the period are unrestricted funds and are considered to be unrestricted to enable the charity to meet the running costs of the charity, its activities and the main restricted funds received by the charity relate to and can only be used for capital costs of the school and the buildings.

During the accounting period of 12 months (2019 14 months) the trust generated the following income;

1) Donations totalling £25,230 (2019 - £118,452) were raised during the accounting period.

2) Sunday school fees were £23,022 (2019 - £18,941), which contribute towards the costs of the Charity's secondary object.

3) Grants totalling £Nil (2019- £Nil) were received from the Department of Education (DfE). However, Covid-19 furlough grants of £6,186 were received in the year.

Notwithstanding Covid-19, the trustees expect to continue to receive a reasonable level of donation income in the coming year in order to meet its share of contributions towards capital projects of the main school.

The trust charges a fee of £100 per annum per pupil. However the trust subsidises the Sunday School from its other donation income.

The movements in fixed assets are set out in the notes to the accounts.

As at 31 August 2020 total generated funds were £5,663,925 (2019 - £5,784,177). The restricted funds of £4,840,318 (2019- £4,958,150) included in this total are held for specific purposes and are not available for fund raising and administration expenditure and other projects.

The capital nature of the school building project means that £5,607,753 (2019 - £5,725,585) of the total generated funds are reflected in the balance sheet as fixed assets at the accounting period end.

FUTURE PLANS

Since the year end, the school has converted into an academy, with the name Sikh Academies Trust. Pursuant to this the school buildings are to be leased to the Multi-academy trust in which the main school is vested. Previously the School was paying for the buildings insurance cover, but new arrangements are being implemented such that the charity will now pay directly and re-charge this to the tenant trust.

Given the current impact of the Covid-19 pandemic, the trust's activities were affected in 2020 and income from donations and fundraising activities has been significantly reduced, However, the trust continues to pay its expenditure as it falls due. This is largely as a result of healthy cash reserves built up for such contingencies.

Other than the above there are no significant events since the end of the period which would have a material impact on the financial statements, such that they would require adjustments to be made to the financial statements

FUTURE DEVELOPMENTS

The trustees are now successfully operating the Sunday school, and at present the Sunday school is attended by around 175-200 children aged between 6 and 18. The Day school and the Sunday Panjabi School have had good educational performances and the trustees will undertake to ensure that this remains the case in the future.

The future aim of the trust is to expand capacity in the day school by adding a third form entry. This has become a priority given the oversubscription at early year provision in the School. This objective is a medium term goal and is subject to the trust having the funds and planning for any such extension to the School.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The charity firstly decides on the role and skill sets that are required for the vacant post of trustee. The Trustees decide on the skills required from the potential candidate and then nominate people who are willing to act as trustees. These persons are then vetted and interviewed. The best person is then nominated and registered as a trustee.

Organisational structure

The charity can have a maximum of seven trustees, and the decision making process in respect of the business of the charity is by majority in any meeting of the trustees. The charity is a small charity and the trustees are the management.

Induction and training of new trustees

The appointed trustees are provided with induction packs for their role as a governor of the school. In addition the roles and responsibilities as a trustee are explained together with specific policies that are operated by the charity. In respect of the role of the trustee as a governor of the school, the successful candidate will be sent on governor training courses.

Wider network

The trustees have also been governors of Khalsa Primary School (Slough), the school which was set up by the charity. The school is a voluntary aided school and has other governors, such as parent governors and staff governors. The governing body as a whole is involved in the decision making process of the school's governing body. The school has networked with other schools on educational matters during the year and will continue to network on mutually beneficial matters. In February 2021 the trustees ceased to be governors of Khalsa Primary School as the school was converted into an academy.

Apart from the school governing body the only other related parties as regards the charity are its trustees.

Risk management

The trustees have identified and discussed the top ten risks that may confront the charity and how they should be managed and minimised. These risks include damage to reputation and possible liabilities arising from the trust's activities. The trustees have examined these matters and they are satisfied that the charity's current internal financial and other controls adequately minimise the risks identified.

The controls established include;

1) The trustees meet every quarter to discuss and resolve any matters arising relating to financial, operational and fund raising matters. There is a clearly defined organisational structure and responsibilities are clearly defined.

2) The trust has established clearly defined roles and targets for each of the trustees, and they can seek help from volunteers to fulfil the remit of their roles within the trust.

3) All of the trustees are responsible for ensuring that the charity's assets are protected, and that the charity is in a position to meet its day to day commitments. To this end all major expenditure has to be passed by the trust prior to it being incurred.

4) The trust will, as part of its annual planning process, include an annual risk assessment programme to minimise the threats posed to the charity by external competition, political and economic factors which may affect the charity over time.

5) 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04786088 (England and Wales)

Registered Charity number

1103498

Registered office

Khalsa Primary School

Wexham Road

Slough

Berkshire

SL2 5QR

Trustees

N S Rana

O S Randhawa

H S Sohal

J Singh

G S Athwal (appointed 1.1.20)

Company Secretary

H S Sohal

Auditor

Ian S Anderson

Chartered Accountant & Statutory Auditor

Chartam House

16 College Avenue

Maidenhead

Berkshire

SL6 6AX

PUBLIC BENEFIT

The aims of the charity are to provide education and religious instruction in the principals of the Sikh faith. In all of the activities that it has undertaken to date, the children attending the school, the school community, parents and even the wider community have benefited from the activities of the charity. It is the stated aim of the charity that all its activities should be for the benefit of members of the school community and the wider community in Slough.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Slough Sikh School Trust 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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 auditor is 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 auditor is aware of that information.

AUDITOR

The auditor, Ian S Anderson, will be re-appointed under Section 487(2) of the Companies Act 2006.

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

Approved by order of the board of trustees on 27 May 2021 and signed on its behalf by:

O S Randhawa - Trustee

Opinion

I have audited the financial statements of The Slough Sikh School Trust (the 'charitable company') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In my opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

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

Basis for opinion

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of my report. I am independent of the charitable company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

I have nothing to report in respect of the following matters in relation to which the ISAs (UK) require me 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 my Report of the Independent Auditor thereon.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am 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 I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In my 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 I am 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, I have not identified material misstatements in the Report of the Trustees.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

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

-	I have not received all the information and explanations I require for my 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.

My responsibilities for the audit of the financial statements

My 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 Auditor that includes my 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:

As part of an audit in accordance with ISAs (UK), I exercise professional judgment and maintain professional

scepticism throughout the audit. I also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

4. Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and

whether the financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

A further description of my 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 my Report of the Independent Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the charitable company's members those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for my audit work, for this report, or for the opinions I have formed.

Ian Anderson BA FCA (Senior Statutory Auditor)

for and on behalf of Ian S Anderson

Chartered Accountant & Statutory Auditor

Chartam House

16 College Avenue

Maidenhead

Berkshire

SL6 6AX

28 May 2021

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

25,230

-

25,230

118,452

Other trading activities

3

40,223

-

40,223

37,766

Investment income

4

7

-

7

15

Total

65,460

-

65,460

156,233

EXPENDITURE ON

Raising funds

8,283

-

8,283

33,626

Charitable activities

Tuition

7,924

-

7,924

51,549

Premises

20,764

117,832

138,596

159,433

Religious support

30,909

-

30,909

18,804

Total

67,880

117,832

185,712

263,412

NET INCOME/(EXPENDITURE)

(2,420

)

(117,832

)

(120,252

)

(107,179

)

RECONCILIATION OF FUNDS

Total funds brought forward

826,027

4,958,150

5,784,177

5,891,356

TOTAL FUNDS CARRIED FORWARD

823,607

4,840,318

5,663,925

5,784,177

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

757,452

4,850,301

5,607,753

5,725,585

CURRENT ASSETS

Debtors

11

34,416

-

34,416

42,381

Cash at bank

58,094

12,316

70,410

61,885

92,510

12,316

104,826

104,266

CREDITORS

Amounts falling due within one year

12

(26,355

)

(22,299

)

(48,654

)

(45,674

)

NET CURRENT ASSETS

66,155

(9,983

)

56,172

58,592

TOTAL ASSETS LESS CURRENT LIABILITIES

823,607

4,840,318

5,663,925

5,784,177

NET ASSETS

823,607

4,840,318

5,663,925

5,784,177

FUNDS

15

Unrestricted funds

823,607

826,027

Restricted funds

4,840,318

4,958,150

TOTAL FUNDS

5,663,925

5,784,177

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 27 May 2021 and were signed on its behalf by:

O S Randhawa - Trustee

N S Rana - Trustee

1.	STATUTORY INFORMATION

The Slough Sikh School Trust is a private company, limited by guarantee, registered in England and Wales. The company is also a charity, registered in England and Wales. Details of registered numbers and registered office address and other statutory details can be found in the Report of the Trustees on page 4.

2.	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.

Going concern

The financial statements have been prepared on the assumption that the charitable company is able to operate as a going concern. The trustees consider this basis is appropriate because the charity has available cash funding for the next 12 months. There is no reason to doubt that the charity's modest donation income will be significantly lower or that the repayments of any long term bank loan will be other than within normal terms.

In arriving at this conclusion the trustees are conscious of the impact of Covid-19, which has resulted in lower income and certain costs in the year. The trustees also do not believe that Brexit has had any significant impact on the Charity's activities.

Significant judgements and estimates

The preparation of financial statements requires management to make significant judgements and estimates that affect the reported amounts of assets, liabilities, income and expenses. No significant judgements or assumptions have had to be made by management in preparing these financial statements.

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.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Allocation and apportionment of costs

Central administration costs not directly attributable to any particular activity are spread equally between tuition and events costs. Governance costs are split in proportion to direct costs excluding depreciation.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

All fixed assets are initially recorded at cost. Items costing less than £1,000 are not capitalised.

The freehold property is held as a functional fixed asset, in line with the definition in the Charities SORP. As the property is used for charitable purposes, it has been depreciated as required by the SORP. In line with standard accounting practice, the land element of the freehold property has not been depreciated.

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.

Financial instruments

The company only enters into basic financial instruments that result in the recognition of financial assets or liabilities like trade debtors, other debtors, trade creditors and other creditors, loans from banks or other third parties and loans to/from related parties.

Debt instruments like bank loans are initially measured at present value of future payments and subsequently at amortised cost using the effective interest method. Debt instruments which are payable or receivable within one year such as trade debtors or trade creditors are measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Employee benefits

Short- term employee benefits

Short term employee benefits are recognised as an expense in the period in which they are incurred.

Termination benefits

Provisions for termination benefits are only recognised when the company is legally committed to terminate the employment of employees.

3.	OTHER TRADING ACTIVITIES

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Fundraising events

7,230

16,400

Grant income

6,186

-

Lettings income

3,785

2,425

Sunday school fees

23,022

18,941

40,223

37,766

Historically the Charity's main annual fundraising event has been Mela. The 2018 event was held in July with the 2019 event being deferred until September. No significant event was held in 2020 because of Covid-19 restrictions.

The Panjabi school fees have increased as a result of the number of pupils being higher and the fee set at £100 per year per child. There has been some additional letting income compared with the previous year, due to classroom hire.

4.	INVESTMENT INCOME

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Deposit account interest

7

15

5.	GRANTS PAYABLE

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Tuition

-

15,000

Premises

7,977

7,812

Religious support

-

425

7,977

23,237

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

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Grants to Khalsa Primary School

7,977

22,812

Khalsa Primary School PTA

-

425

7,977

23,237

6.	NET INCOME/(EXPENDITURE)

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

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Auditor's remuneration

3,120

3,240

Depreciation - owned assets

117,832

137,471

The audit fee plus central support costs of £4,235 (2019 £5,389) have been allocated between expenditure on tuition, premises and religious support.

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the period ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the period ended 31 August 2019.

8.	STAFF COSTS

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

£

£

Wages and salaries

28,756

39,979

Other pension costs

146

185

28,902

40,164

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

Period

1.7.18

Year Ended

to

31.8.20

31.8.19

Priest

1

1

Sunday school

11

11

12

12

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

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

118,452

-

118,452

Other trading activities

37,766

-

37,766

Investment income

15

-

15

Total

156,233

-

156,233

EXPENDITURE ON

Raising funds

33,626

-

33,626

Charitable activities

Tuition

51,549

-

51,549

Premises

21,963

137,470

159,433

Religious support

18,804

-

18,804

Total

125,942

137,470

263,412

NET INCOME/(EXPENDITURE)

30,291

(137,470

)

(107,179

)

Transfers between funds

(33,567

)

33,567

-

Net movement in funds

(3,276

)

(103,903

)

(107,179

)

RECONCILIATION OF FUNDS

Total funds brought forward

829,303

5,062,053

5,891,356

TOTAL FUNDS CARRIED FORWARD

826,027

4,958,150

5,784,177

10.	TANGIBLE FIXED ASSETS

Freehold

property

£

COST

At 1 September 2019 and 31 August 2020

7,151,324

DEPRECIATION

At 1 September 2019

1,425,739

Charge for year

117,832

At 31 August 2020

1,543,571

NET BOOK VALUE

At 31 August 2020

5,607,753

At 31 August 2019

5,725,585

The trustees have considered the condition and use of the buildings reflected within freehold property, which had a historic cost of £5.9m. Based on their impairment review the trustees believe the present deprecation policy of 2% per annum on cost remains reasonable. Given the specific use of the land an buildings by the Khalsa Primary School, the trustees do not believe a revaluation of the freehold property would provide any benefit to a user of these financial statements.

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

1,780

4,445

Gift Aid

31,852

37,936

Prepayments

784

-

34,416

42,381

Other debtors includes £31,852 (2019 £37,936) in tax refunds for 2017 onwards, which the trustees are processing as reclaimable on gift aid donations.

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 13)

24,615

24,615

Trade creditors

4,363

5,959

Social security and other taxes

304

186

Salaries Control

9,172

4,413

Accrued expenses

10,200

5,160

Deferred income- school fees

-

5,341

48,654

45,674

13.

LOANS

The charity has no loans or bank overdrafts with its bankers. The bank overdrafts disclosed in notes 12 and 14 represents the allocation between the General and School Buildings funds (see note 15) under the Charities SORP.

14.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank overdrafts

24,615

24,615

Although the charity no longer has any bank loans, its principal bankers retain a charge over any cash deposits and a legal charge over the freehold property.

15.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.19

in funds

31.8.20

£

£

£

Unrestricted funds

General funds

826,027

(2,420

)

823,607

Restricted funds

School Building

4,958,150

(117,832

)

4,840,318

TOTAL FUNDS

5,784,177

(120,252

)

5,663,925

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General funds

65,460

(67,880

)

(2,420

)

Restricted funds

School Building

-

(117,832

)

(117,832

)

TOTAL FUNDS

65,460

(185,712

)

(120,252

)

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.7.18

in funds

funds

31.8.19

£

£

£

£

Unrestricted funds

General funds

829,303

30,291

(33,567

)

826,027

Restricted funds

School Building

5,062,053

(137,470

)

33,567

4,958,150

TOTAL FUNDS

5,891,356

(107,179

)

-

5,784,177