Since the financial statements for the year ended 31 December 2008 were filed at companies house, the trustees have re-examined the relationship between the UK branc and other organisations and accept that certain entities could fall within the wide definition of related party as defined by FRS 8. They consider that the following paragraph should have been included. As the trustees have agreed to the inclusion of this statement as and addendum to our audit report, our audit opinioin is not qualified in this respect.
Church of Scientology Interenational and its subsidaries and the UK Branch and other churches in the UK/world share similar arims and from time to time provide mutual assistance ot each other and therefore arguably qualify as related parties as defined by FRS 8. The UK branch receives support by way of loans and donations and purchased good and aservices from Church of Scientology International and its subsidaries. During the year, the UK Branch received loans of £309,804, received donations of £74,474, purchased books and other literature to a value of £3,515,432, and was charged £2,179,201 for ecclesiastical management services and courses.
At the year end, £19,769,877 was due to Church of Scientology International and its subsidaries
and of this amount £12,899,237 is included in Note 12
under "Accurals and other creditors" and £484,913 and £6,385,727 are included in Note 13
under "Loans from other churches" and "Other creditors" respectively. One of the two loans included was charged £505,960 interest on a commercial basis and is repayable on terms yet to be agreed with the UK Branch.
The other loan of £484,913 included was interest free and no advances have been received or repayments made in the period.
Flag Service Organisation charged £576,942 for courses provided to the UK Branch.
At the year end, £6,730,319 was due to Flag Service Organisation
and this amount is included in Note 12 under "Accruals and other creditors". The amount had increased in the period by exchange differences of £262,645
and interest charged of £798,692.
The balance due was reduced in the period by repayments of £139,591.
At the year end, £27,070,130 was due to and £Nil was due from other churches.
In addition, the UK Branch recieved donations from other churches amounting to £938,629.
At the year end there was a loan outstanding from the Church of Scientology Celebrity Centre International of £540,482
and this amount is shown in Note 12 under "Accruals and other creditors". The loan was increased by £145,920 in the period. The interest accrused was £106,462. No terms of repayment have been agreed.
At the year end there was a loan outstanding from Scientology Interenational Reserves Trust of £6,539,883
and of this amount £265,000 is shown in Note 12
under "accruals and other creditors" and £6,274,883 in Note 13
under "Other creditors". The loan was increased by £1,357,432 in the period and repayments of £195,000 were made. No interest was charged.
The loan is to be repaid over a period of three years, unless the term is extend by agreement.
The amount of £393,012
shown as due to group undertaking disclosed in note 12 to the financial statements relates to the balance due to the subsidariy company, Nesta Investments Limited.
There was no requirements under the Companies Action 1985 for a UK Branch of an overseas branch to be audited and thus unaudited financial statements for the year end 31 Decemeber 2008 were filed at Companies House in March 2009 and it was appropriate that no detailes of auditors remuneration were included in the financial statements. Subsequently, the trustrees requested an audit of these financial statements. The remuneration paid to the auditors was as follows:
Fees payable to the UK Branch's auditor for the audit of the financial statements £20,750
Fees payable to the UK Branch's auditor for other services £21,350
Grant Sellers Limited
Bank Court, Manor Road
Date 27 February 2011