Charity Registration No. SC023606 (Scotland)
Company Registration No. SC335413 (Scotland)
EDINBURGH CHINESE SCHOOL
TRUSTEES' REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
EDINBURGH CHINESE SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
M K Song
Dr J Li
K H Fung
(Resigned 28 February 2023)
Y L Tsang
(Appointed 25 March 2023)
Y C Leung
(Appointed 25 March 2023)
Charity number (Scotland)
SC023606
Company number
SC335413
Registered office and principal address
45 Upper Craigour
Edinburgh
EH17 7SE
Independent examiner
A J Sinclair BAcc CA
French Duncan LLP trading as AAB
81 George St
Edinburgh
United Kingdom
EH2 3ES
EDINBURGH CHINESE SCHOOL
CONTENTS
Page
Trustees' report
1 - 3
Independent examiner's report
4
Statement of financial activities
5
Balance sheet
6
Notes to the financial statements
7 - 11
EDINBURGH CHINESE SCHOOL
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

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).

Objectives and activities

 

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.

 

Achievements and performance

 

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.

 

Financial review

 

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.

 

EDINBURGH CHINESE SCHOOL
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

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

 

Structure, governance and management

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:

M K Song
Dr J Li
K H Fung
(Resigned 28 February 2023)
Y L Tsang
(Appointed 25 March 2023)
Y C Leung
(Appointed 25 March 2023)
EDINBURGH CHINESE SCHOOL
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

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.

 

Statement of trustees' responsibilities

 

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:

Y L Tsang
Trustee
Dated: 28 February 2024
EDINBURGH CHINESE SCHOOL
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF EDINBURGH CHINESE SCHOOL
- 4 -

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.

Respective responsibilities of trustees and examiner

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.

Basis of independent examiner's statement

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.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(a)
which gives me reasonable cause to believe that in any material respect the requirements:
(i)

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

(ii)

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

have not been met or
(b)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Antony J Sinclair BAcc CA
French Duncan LLP trading as AAB
81 George St
Edinburgh
EH2 3ES
United Kingdom
Dated: 28 February 2024
EDINBURGH CHINESE SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2023
2023
2023
2022
Notes
£
£
£
£
Income from:
Donations and legacies
2
491
1,170
1,661
705
Charitable activities
3
4,562
-
4,562
2,539
Total income
5,053
1,170
6,223
3,244
Expenditure on:
Charitable activities
4
16,458
1,170
17,628
10,528
Net expenditure for the year/
Net movement in funds
(11,405)
-
(11,405)
(7,284)
Fund balances at 1 July 2022
17,747
-
17,747
25,031
Fund balances at 30 June 2023
6,342
-
6,342
17,747

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
EDINBURGH CHINESE SCHOOL
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 6 -
2023
2022
Notes
£
£
£
£
Current assets
Cash at bank and in hand
9,127
20,069
Creditors: amounts falling due within one year
8
(2,785)
(2,322)
Net current assets
6,342
17,747
Income funds
Unrestricted funds - general
6,342
17,747
6,342
17,747

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 28 February 2024
Y L Tsang
Trustee
Company Registration No. SC335413
EDINBURGH CHINESE SCHOOL
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
1
Accounting policies
Charity information

Edinburgh Chinese School is a private company limited by guarantee incorporated in Scotland. The registered office is 45 Upper Craigour, Edinburgh, EH17 7SE.

1.1
Accounting convention

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.

1.2
Going concern

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.    

1.3
Charitable funds

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.

1.4
Income

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).

EDINBURGH CHINESE SCHOOL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 8 -
1.5
Expenditure

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.

1.6
Leases

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.

2
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Donations and gifts
491
-
491
705
General grants
-
1,170
1,170
-
491
1,170
1,661
705
For the year ended 30 June 2022
705
-
705
Grants receivable for core activities
Edinburgh Wellbeing Impact: Coorie in for Winter
-
1,170
1,170
-
-
1,170
1,170
-
EDINBURGH CHINESE SCHOOL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
3
Charitable activities

Chinese New Year

Chinese School

Total
2023

Chinese School

2023
2023
2022
£
£
£
£

Income from charitable activities

271
4,291
4,562
2,539
Analysis by fund
Unrestricted funds - general
271
4,291
4,562
2,539
4
Expenditure on charitable activities
2023
2022
£
£

Teachers' fees

4,838
3,158

Teaching materials, books and training

2,292
2,532

Other costs

8,758
3,236
15,888
8,926
Share of governance costs (see note 5)
1,740
1,602
17,628
10,528
Analysis by fund
Unrestricted funds - general
16,458
10,528
Restricted funds
1,170
-
17,628
10,528
5
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£

Independent Examiner's Fee

-
1,740
1,740
-
1,602
1,602
-
1,740
1,740
-
1,602
1,602
Analysed between
Charitable activities
-
1,740
1,740
-
1,602
1,602
EDINBURGH CHINESE SCHOOL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
6
Trustees

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).

7
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
1
1
There were no employees whose annual remuneration was more than £60,000.
8
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Deferred income
9
1,045
720
Accruals
1,740
1,602
2,785
2,322
9
Deferred income
2023
2022
£
£
Other deferred income
1,045
720

Deferred income is included in the financial statements as follows:

2023
2022
£
£
Deferred income is included within:
Current liabilities
1,045
720
Movements in the year:
Deferred income at 1 July 2022
720
390
Released from previous periods
(720)
(390)
Resources deferred in the year
1,045
720
Deferred income at 30 June 2023
1,045
720

Included within deferred income are receipts totalling £1,045 (2022 - £720) received in advance for services to be provided next year.

EDINBURGH CHINESE SCHOOL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
10
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Incoming resources
Balance at
1 July 2022
Incoming resources
Resources expended
Balance at
30 June 2023
£
£
£
£
£
Edinburgh Wellbeing Pact: Coorie in for Winter
-
-
1,170
(1,170)
-

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.

11
Unrestricted funds

The company's unrestricted funds are as follows:

Movement in funds
Movement in funds
Balance at
1 July 2021

Incoming resources

Resources expended

Balance at
1 July 2022

Incoming resources

Resources expended

Balance at
30 June 2023
£
£
£
£
£
£
£
General Funds
25,031
3,244
(10,528)
17,747
5,053
(16,458)
6,342
12
Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

2023-06-302022-07-01falseCCH SoftwareiXBRL Review & Tag 2022.2SC3354132022-07-012023-06-30SC335413bus:Director12022-07-012023-06-30SC335413bus:Director22022-07-012023-06-30SC335413bus:Director32022-07-012023-06-30SC335413bus:Director42022-07-012023-06-30SC335413bus:Director52022-07-012023-06-30SC3354132023-06-30SC3354132022-06-30SC335413bus:FRS1022022-07-012023-06-30SC335413bus:IndependentExaminationCharity2022-07-012023-06-30SC335413bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP