The trustees present their annual report and financial statements for the year ended 30 June 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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) (second edition - October 2019) (effective 1 January 2019).
The principal objectives of the charity are:
1. To offer anyone an opportunity to learn Chinese languages (Cantonese and Mandarin) and culture.
2. To promote racial harmony through language teaching and other educational activities.
3. To raise awareness and mutual understanding among different races and cultures in society.
The charity runs a school based at Drummond Community High School in Edinburgh which offers individuals the opportunity to aim for SQA N5, Higher and Advanced Higher Level qualifications in Cantonese and Mandarin. The charity also runs various clubs and extra-curricular activities to help promote Chinese culture.
Cultural activities and projects
After the COVID-19 pandemic, most of the classes have been resumed to in-person. However, the school faces a significant drop in student enrolment compared to the years before the pandemic.
In November 2022 to February 2023, the school participated in the project, Edinburgh Wellbeing Pact: Coorie in for the Winter. The school organised four monthly meet-up events to strengthen the connection between the new immigrants from Hong Kong and the local community, as well as promoting Cantonese culture in Edinburgh.
In June 2023, the school was invited by Art 27 Edinburgh to help organise the free event for the Dragon Boat Festival at Southside Community Centre. We arranged some performances and workshops through cooperation with the University of Edinburgh.
Results for the year
The review compares the finances for the 12 month period to 30 June 2023 and the 12 month period to 30 June 2022.
The accounting policies under which the financial statements have been prepared are detailed on pages 7 and 8.
The charity's unrestricted charitable activities for the 12 month period to 30 June 2023 resulted in a deficit of £11,405 compared with a deficit of £7,284 for the previous 12 month period to 30 June 2022.
Overall, the charity spent £17,628 (2022 - £10,528) on its core activities.
Reserves policy
The charity maintains unrestricted funds not committed for a specific use at a level equivalent to approximately twelve months of annual expenditure. This allows the charity to continue to operate and deliver on its objectives should there be a reduction in income.
The total reserves for the 12 month period to 30 June 2023 were £6,342 all of which were unrestricted and the reserves policy was not been met at the year end. The trustees aim to rebuild these reserves in line with the policy.
The total reserves for the previous 12 month period to 30 June 2022 were £17,747 all of which were unrestricted.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details are given in the accounting policy 1.2.
Risk management
The Trustees have assessed the major risks to which the company is exposed, most of the internal policies in particular those related to the operations and finances of the company have been reviewed and we will continue the policy review in the upcoming year to ensure our current procedures are adapted post-COVID19 pandemic.
Future developments
The School Board and Headteacher will be working closely to improve the quality of teaching and learning through the following activities:
1. Review the management and teaching plan
2. Find a suitable venue for the classes
3. Exploring new fund resources due to lack of funding
4. Doing more school promotions on the social media
5. Developing the Mandarin and Cantonese classes
6. Improving communication with parents and encouraging parents’ involvement in a flexible manner
7. Improving and developing learning ability to let students confidently sit the SQA National 5, Higher and even Advanced Higher Chinese examination
8. Planning an event for Chinese New Year celebration this year
9. Working with different organisations for promoting Chinese education and culture
The company, which is a recognised charity in Scotland, is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 18 December 2007.
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:
Method of appointment or election of trustees
The management of the company is the responsibility of the Trustees who are elected and co opted under the terms of the Articles of Association.
Organisational structure and decision making
The Trustees are legally responsible for the overall governance, strategy, and direction of the charity. Trustees meet on a regular basis, however, day to day management of the charity is delegated to the School's Head Teacher.
Policies adopted for the induction and training of trustees
Should any new trustees be appointed they will be given whatever training they require and be provided with a full brief of the work and history of the charity.
The trustees, who are also the directors of Edinburgh Chinese School 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 company 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 company and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees and signed on their behalf by:
I report on the financial statements of the company for the year ended 30 June 2023, which are set out on pages 5 to 11.
The company’s trustees, who are also the directors of Edinburgh Chinese School for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Edinburgh Chinese School is a private company limited by guarantee incorporated in Scotland. The registered office is 45 Upper Craigour, Edinburgh, EH17 7SE.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the company's constitution, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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) (second edition - October 2019) (effective 1 January 2019). The company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have reviewed the future funding and activities of the charity. The trustees are aware that the year end reserves are less than annual expenditure, and are currently looking for new funding and ways to control costs to ensure sustainability. 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.
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations and similar income
Donations and similar income are included in the year in which they are receivable, which is when the charity becomes entitled to the resource and receipt is probable.
Income from charitable activities
Income from charitable activities includes income from activities or where entitlement is subject to specific performance conditions is recognised as earned (as the related service is provided).
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities, the charity is not registered for VAT and accordingly expenditure is shown gross.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
Chinese New Year
Chinese School
Chinese School
Income from charitable activities
Teachers' fees
Teaching materials, books and training
Other costs
Independent Examiner's Fee
None of the trustees (or any persons connected with them) received any remuneration during the year, but one of them was reimbursed a total of £323 for travelling expenses (2022- £12 was reimbursed).
The average monthly number of employees during the year was:
Deferred income is included in the financial statements as follows:
Included within deferred income are receipts totalling £1,045 (2022 - £720) received in advance for services to be provided next year.
Funding was received towards a project to engage community connection between Hong Kongers who have recently moved to Edinburgh and the Edinburgh locals through Cantonese classes.
The company's unrestricted funds are as follows:
Incoming resources
Resources expended
Incoming resources
Resources expended
There were no disclosable related party transactions during the year (2022 - none).