New Kadampa Tradition - Charities report - 21.1

REGISTERED COMPANY NUMBER: 02758093 (England and Wales)

REGISTERED CHARITY NUMBER: 1015054

for

Page

Report of the Trustees  

1

to

9

Report of the Independent Auditors  

10

to

13

Statement of Financial Activities  

14

Statement of Financial Position  

15

Statement of Cash Flows  

16

Notes to the Statement of Cash Flows  

17

Notes to the Financial Statements  

18

to

36

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 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

Significant activities

Public benefit

Grantmaking

Volunteers

ACHIEVEMENT AND PERFORMANCE

Charitable activities

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 International Temples Project (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. Whilst the renovation project was initially delayed by the Covid-19 pandemic, work is now moving ahead swiftly.  Activities will begin in the Centre in the second half of 2021, with a firm opening date still to be confirmed.

During the year the charity sold its property in Singapore, moving the Centre there to smaller and more suitable premises and thereby releasing some funds for future ITP projects elsewhere.

ITP funds were also made available in the form of interest-free loans to assist with on-going renovation programme costs for KMC Austria in Vienna, KMC Dublin, and KMC Aberdeen.

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 around the world.  Total grants raised for the Kadampa Art Studio in 2020 amounted to £49,189.

A total of £461,965 was also given in other grants and international sponsorships and £658,118 in interest-free loans in support of other ITP activities throughout the world.

Donations made to the Charity's International Temples Project Fund in 2020, totalled £948,850.

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

Reserves policy

FUTURE PLANS

The charity continues to offer material support for the international development of NKT-IKBU Buddhist Centres through its International Temples Project.

In 2020 much progress was made on the construction of a traditional Kadampa Temple for World Peace in Málaga, Spain, and work is currently on-schedule for the inauguration in Spring 2022.

As mentioned previously, progress is also being made in relation to the renovation of the charity's property in Leeds city centre.  It is anticipated that activities will soon begin and the official opening will happen in the second half of 2021.

The charity recently made International Temples Project funds available in the form of a loan to KMC Mexico for the purchase of land in Mexico City where they will construct new premises for their Centre. After many years of searching for a suitable space, this is a wonderful development for the NKT-IKBU in Mexico.

The charity is also currently committed to purchasing a property in Sao Paolo, Brazil which will become the home of Mahabodhi KMC; a property in Stuttgart, Germany which will be the home of KMC Stuttgart; and a property in Dumfries, UK which will be the home of Vajrasattva KMC.

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 has carried out its activities in the past year.  Having demonstrated its ability not only to adapt but also to increase its activities during this time, the trustees are confident that the charity will remain in a good stable position throughout these continued 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);

(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

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

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

Related parties

Risk management

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

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

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

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

Paul A. P. Boseley, appointed 1 May 2018

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

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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 the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 2 July 2021 and signed on its behalf by:

Ms H C Wright - Trustee

Opinion

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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

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

-

the engagement partner ensured that the engagement team collectively had the appropriate

competence, capabilities and skills to identify or recognise non-compliance with applicable laws and

regulations;

-

we identified the laws and regulations applicable to the charity through discussions with directors and

other management, and from our commercial knowledge and experience of the religious charities

sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect

on the financial statements or the operations of the company, including the Companies Act 2006,

Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental

and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making

enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team

remained alert to instances of non-compliance throughout the audit

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their

knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and

regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were

indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators including the Health and Safety

Executive, and the charity’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

2 July 2021

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£   

£   

£   

£   

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

594,266

383,391

977,657

2,659,741

Charitable activities

4

International Festivals

2,056,228

-

2,056,228

1,411,834

Tharpa Publications

224,933

-

224,933

338,270

Manjushri Kadampa Meditation Centre

718,663

-

718,663

783,212

Shop and World Peace Cafe

193,566

-

193,566

330,119

Kadampa Art Studio and Internet

65,884

-

65,884

292,125

Properties Income

204,386

-

204,386

169,671

Investment income

3

327

-

327

692

Total

4,058,253

383,391

4,441,644

5,985,664

EXPENDITURE ON

Charitable activities

5

Grants Payable

67,563

403,079

470,642

279,583

International Festivals

102,684

-

102,684

419,779

Tharpa Publications

163,040

-

163,040

199,197

Manjushri Kadampa Meditation Centre

775,342

-

775,342

887,148

Kadampa Art Studio and Internet

220,206

-

220,206

337,008

Properties Expenditure

394,517

-

394,517

106,526

International Kadampa Development

(1,756,898

)

-

(1,756,898

)

1,065,716

Total

(33,546

)

403,079

369,533

3,294,957

NET INCOME/(EXPENDITURE)

4,091,799

(19,688

)

4,072,111

2,690,707

RECONCILIATION OF FUNDS

Total funds brought forward

29,063,462

2,848,523

31,911,985

29,221,278

TOTAL FUNDS CARRIED FORWARD

33,155,261

2,828,835

35,984,096

31,911,985

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£   

£   

£   

£   

FIXED ASSETS

Tangible assets

13

17,877,937

2,667,273

20,545,210

21,335,906

Investments

14

2,109

-

2,109

2,109

17,880,046

2,667,273

20,547,319