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2022-03-31-accounts

The Koestler Trust

Trustees’ Report for the year ended March 31st, 2022

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31st MARCH 2022

Charity Number 01105759 Company Number 04961363

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The Koestler Trust

Trustees’ Report for the year ended March 31st, 2022

THE KOESTLER TRUST REPORT AND ACCOUNTS 2021-22

CONTENTS

Page
Trustees’ Report 1 – 11
Statement of Trustees’ Responsibilities 12 – 13
Independent Auditors’ Report 14 – 17
Consolidated Statement of Financial Activities 18
Consolidated Balance Sheet 19
Consolidated Cash Flow Statement 20
Notes to the Accounts 21 - 34

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

TRUSTEES’ REPORT

The Trustees, who are also directors of the Company for the purposes of the Companies Act, and trustees for charity law purposes, present their combined directors’ and trustees’ annual report with the financial statements of the charity for the year ended 31[st] March 2022. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Charity’s governing document, applicable law and the requirements of the Statement of Recommended Practice (FRS 102). The Company has taken advantage of the exemptions available to smaller entities.

LEGAL AND ADMINISTRATIVE DETAILS OF THE CHARITY

Charity number: 1105759 Company limited by guarantee number: 4961363 Principal and Registered address: Koestler Arts Centre 168a Du Cane Road, London W12 0TX Telephone: 020 8740 0333 Email: info@koestlerarts.org.uk Website: www.koestlerarts.org.uk Auditors: Knox Cropper LLP 65 Leadenhall Street, London EC3A 2AD Trustees and company directors: Dame Anne Owers (Chair) Ariane Bankes (Vice Chair for Arts) Jane Gillespie (Treasurer and Chair of the Finance & HR subcommittee) David Banks Nicholas Bowlby (until Dec 2021) Stephen Chambers RA (until Dec 2021) Robert Taylor (resigned June 2022) Andrea Rose Carl Hardwick Gary Mansfield Roger Hill (until Dec 2021) Sir Richard Heaton Page Nyame Satterthwaite (from Dec 2021) Nicola Solomons (from Dec 2021) Dr Nora Laraki (from Dec 2021) Jasmin Booth (from Dec 2021)

Company Secretary and Chief Executive Officer: Sally Taylor Honorary President:

Lord David Ramsbotham

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trust is governed by its Memorandum and Articles.

The Board of Trustees met 4 times during the year, all the meetings have been held remotely on ZOOM and the Annual General Meeting was held on 9th December 2021, also by ZOOM.

The Board has 4 sub-groups, each of which provides oversight of specific aspects of the charity's work: -

The Finance & HR Sub-Group was chaired by Jane Gillespie as Treasurer, and includes the Chair, Vice Chair, Chief Executive and Development Director. It met on 4 occasions by ZOOM during the year, scrutinising the finances and HR and planning strategic development.

The Outreach & Involvement Sub-Group , chaired by Robert Taylor and serviced by Sarah Matheve, Director of Outreach & Involvement, oversees the mentoring programme and all other ways that the Trust engages with and supports offenders and secure patients, e.g., with work experience placements at the Koestler Arts Centre and outreach visits to establishments. The group includes service users and representatives from partner agencies.

The Arts Sub-Group , chaired by Ariane Bankes and serviced by Director of Arts Fiona Curran, oversees the awards process, exhibitions, and sales. This group also includes award winners, awards judges, and prison art tutors.

The ‘Koestler House’ subgroup, chaired by David Banks, and serviced by Sally Taylor, CEO, which provides oversight and guidance around the proposed new premises.

Staff management is underpinned by Support & Supervision meetings, where each member of staff meets one-to-one with his or her line manager every 4-6 weeks. The decisions of these meetings are recorded in writing. Each member of staff also has an annual appraisal to review progress and set targets for the year ahead. Team meetings are held every week, in 2020/21 by Zoom. The Chief Executive’s Support & Supervision is provided by the Chair of Trustees.

RISK AND INTERNAL CONTROL

An overall risk assessment is reported annually to the Board of Trustees. This addresses issues from specific aspects of infrastructure, including data protection, health and safety, human resources, environmental impact and office fabric and equipment. Each of these areas is the responsibility of a designated member of staff, who reports regularly to the team meeting.

AIMS AND OBJECTIVES

The Koestler Trust’s ongoing aims are: -

  1. To motivate offenders, secure patients, and detainees to take part and achieve in the arts, helping them transform their lives.

  2. To increase public awareness and understanding of arts by offenders, secure patients & detainees.

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

  1. To be an efficient, dynamic, and collaborative organisation, driven by values, quality, and outcomes.

As registered with the Charities Commission, the Koestler Trust’s charitable objects are “for the advancement of the arts and education and for purposes beneficial to the community:

The Trustees refer to the guidance contained in the Charity Commission general guidance on public benefit when reviewing the aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

HOW THE CHARITY’S ACTIVITIES DELIVER PUBLIC BENEFIT

The Koestler Trust’s awards, exhibitions, artwork sales, mentoring and outreach form a coordinated and effective programme of motivations for offenders, secure patients, and detainees to participate and achieve in the arts. The awards provide goals and rewards, the exhibitions offer recognition, the sales provide financial rewards, the mentoring supports offenders to take up or develop their arts practice, especially after release into the community, and the outreach visits to prisons bring artistic opportunities to new beneficiaries.

These activities bring benefits to the offenders, detainees, and patients themselves – raising their self-awareness, helping them express and understand their feelings, and developing their skills and self-discipline. These improvements in turn bring benefits to their families and communities, and to the staff who work in prisons and other establishments.

Most importantly arts activity offers a diversion from re-offending. For the community at large, the overriding benefit of the Koestler Trust’s activities is to help offenders move towards crime-free lives. The Trust also benefits the public by raising awareness and understanding of offenders, detainees, and secure patients, through exhibition and showcasing of their artistic achievements.

ACTIVITIES AND ACHIEVEMENTS DURING 2021-22

Much of the period of this report continues to have been affected by the Covid 19 pandemic, its consequences, and Government action and guidance in the light of the pandemic. This has not only affected the prison service and other secure settings but also the arts environment, in terms of restrictions and closures, and how we were able to operate as a charity in these times.

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

The operational aim throughout the year was to bring the team back into the office as safely as we were able and adopting social distancing rules, use of masks and other risk assessed measures to make the team feel safe and create a COVID secure environment. Again, the team involved in the processing of the Awards were prioritised in the office, and temporary help was employed to regain some of the time in processing the 2021 Awards which had been lost to the Lockdown which was in place at the beginning of 2021, and had therefore delayed our usual annual cycle, by approximately 3 months.

All the Trust’s activities during 2021-22 aimed to maximise and increase the charity's public benefit.

Achievements 2021-22 - Aim 1

Help to motivate offenders, secure patients, and detainees to take part and achieve in the arts, helping them transform their lives.

Throughout the pandemic, life in prisons had become enormously restrictive. This continued as the pandemic eased on the outside, but prisons and other secure settings were relatively slow to open up, and inmates were still being held in 23-hour Lockdown, with very limited access to purposeful activity, which included art rooms and education.

Inspections by HM Inspectorate of Prisons have found that recovery in prisons has generally been slow and inconsistent, leaving many prisoners frustrated as their life remains unchanged while restrictions in the community have been lifted. There has been disappointingly little progress to improve time out of cell, which in most prisons is far from returning to already insufficient pre-pandemic levels. Apart from the small proportion in work, for many prisoners, spending 22.5 hours a day locked in their cell is not unusual, nor is having to choose between completing basic domestic tasks or exercising. In the Inspectorate’s adult prisoner surveys in 2020/2021, 49 per cent of respondents said that they spent fewer than two hours out of their cell on a typical weekday, which rose to 67 per cent at weekends.

Criminal Justice Joint Inspection report May 2022

This year continued to demonstrate some of the most challenging circumstances our communities and criminal justice system have ever faced, our work has continued to concentrate on reaching as many people as possible, and offering positivity, focus and opportunities to build wellbeing, building on our experiences in 2020/21 and lessons learnt as a result.

Although the extended effects of the pandemic have worsened the challenging realities of so many of our beneficiaries, it has also emphasised the importance of creativity, and the role the Koestler Awards play as a platform for that creativity.

We have endured 18+ months of 22/23 hours per day of solitary confinement and it has been horrendous. Without creative activity I am sure I would have become chronically stressed and depressed to a potentially dangerous degree! Many inmates, who could not occupy themselves, have succumbed - it is tragic!

Being creative, especially in lockdown, has really helped me with my mental health. Being in prison is hard but being inside and in full lockdown, well that's a lot harder. My artwork has kept me going and I hope you all enjoy looking at my artwork.

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

It has given me a feeling of fulfilment, purpose, and drive. Creativity has given me new perspective and confidence. It has opened a whole new door for me. One without limits as I am the pioneer of what I am doing with rice. It has helped me manage my time in prison and during lockdown, thanks to Koestler.

It's been therapeutic, focused my mind on achieving an aim and a goal. During lockdown it saved me. Art keeps my mind stimulated, satisfies my creative need.

Quotes from entrants to the Koestler Awards 2021

2021 Koestler Awards

We again delayed the 2021 Koestler Awards deadline until June, we were delighted to receive 6,468 entries. 2547 men, women and young people entered the 2021 Koestler Awards, only a marginal reduction on 2020. There were 1,094 first-time entrants despite reduced marketing opportunities,

269 establishments were represented in the Awards. These included prisons, young offender institutions, secure mental health units, immigration removal centres and probation services, a reduction of 6 on 2020.

62 volunteer judges joined us physically and remotely to safely offer awards and share their expertise through written feedback and encouragement for our entrants. We granted 2,596 awards, and £29,836 prize money was sent to award-winners.

We aim to send written feedback to every entrant. In 2021, with little opportunity for volunteers to join us due to the pandemic, we have relied on our judges and small staff team to provide this year’s feedback. 92% of entrants received personalised, written feedback on their work, a remarkable achievement with such reduced capacity.

Continuing Covid 19 adaptations

2021 Outreach and Involvement

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

We have seen the return of many of the Outreach programmes which the Covid-19 pandemic made impossible in 2020. These programmes celebrate achievement and encourage creativity, as well as providing tailored opportunities to encourage participation in the Koestler Awards.

Having hosted a virtual Arts Tutor Seminar in 2020, we welcomed back around 30 staff members from secure settings to our in-person 2021 seminar,at our UK exhibition at Southbank Centre. Having taken on board feedback from the previous virtual event, we also hosted a webinar for around 20 members of prison staff, enabling people from across the UK to attend and share best practice and learning from the year.

Establishment visits resumed from early 2022, giving Koestler Arts staff the opportunity to meet current and potential Koestler Awards entrants in prisons and secure mental health units, and encourage creativity more widely across the establishments, although several were still cancelled at short notice due to COVID infections. Bespoke videos for prisons were also created where we were unable to undertake visits.

The Art Aid sheets established during 2020 to provide inspiration to our beneficiaries when art classes did not function, have developed and become a permanent feature of our outreach programme. They also continue to offer professional development opportunities to former entrants and mentees who receive a fee for the commission and experience of working to a brief.

We are also continuing to commission videos and audio from entrants, mentees and Koestler Arts alumni, as well as employing alumni to create and edit marketing material. Including the voices of our beneficiaries brings an authenticity to the content and will continue to be core to our marketing material.

The commissioning of online tutorials is an idea we are exploring which responds to needs identified by our beneficiaries to have access to online learning that feels relevant to them. The pilot is in its early stages and we are pleased with the resulting tutorials and masterclasses which can be viewed through our YouTube channel.

We intended to hold Exhibited Artist Family days at the 2021 Exhibition, but we were not in a position to take the events forward. There had still been no clarification from HMPPS on restrictions imposed on people on licence from attending celebratory events, and it was felt that this made planning and risk assessing an event, where artists themselves often attend with family members, too difficult to navigate. As in 2020, we therefore continued to create bespoke information packs for every artist with work in the show that they could share with family members.

Mentoring & Scholarships

The mentoring and scholarship programme offers bespoke, one-to-one assistance over the course of the year, and despite the challenges brought by the pandemic it has continued to deliver on the 4 key objectives of the programme:

1. To help prisoners maintain an arts practice post-release through bespoke arts mentoring

2. To improve mentees’ coping ability, reduce stress and engender hope for the future

3. To support mentees to access education and training

4. To provide a diversion from reoffending

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

Face-to-face mentoring sessions started again following lockdown, and we are actively recruiting and training mentors again to meet the growing demand for support via the programme.

One of the key outcomes of the programme post-pandemic is its holistic impact on wellbeing. With resettlement presenting varied challenges, the pandemic has heightened many of the emotional challenges which people are faced with on release. Through participating in the project, mentees have continued to report reduced stress and anxiety, and well as reduced isolation and increased support networks. The data from our new project evaluation tools have showed, through both qualitative and quantitative data, the impact of the mentoring programme.

Milestone Project Average (over last 3
years)
Mentees report a reduced sense of isolation/increased
support networks		 95%
Mentees have desisted from re-offending 6 months
from finishingmentoring		 85.5%
Mentees feel that they are better equipped to manage
their mental health/wellbeing		 89.5%
Mentees report reduced stress/anxiety 86.5%
Mentees report improved self-esteem and confidence 89.5%

Some notable projects successes in 2021 include

Achievements 2021-22 - Aim 2

Increase public awareness and understanding of arts by offenders, secure patients, and detainees.

Koestler Arts fulfils its 2[nd] charitable aim through an innovative national programme of events, exhibitions, displays and partnerships, showcasing the excellence of our entrants’ work to an expanding audience.

2021-2 Exhibitions and Displays

The I and the We , our UK exhibition returned to our usual space at the Southbank Centre and opened at the end of October 2021,where it was enthusiastically greeted by our friends and

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

supporters. Curated by artist Camille Walala and her sister, curator Sarah Ihler-Meyer, The I and the We showcased around 200 artworks selected from the 2021 Awards. The exhibition was free and open every day until 5 December, and featured daily tours by ex-prisoner exhibition Hosts, employed by us and specially trained to help guide visitors around the exhibition.

In conjunction with the exhibition, we launched Koestler Voices: New Poetry from Prisons Volume 3 . Featuring a foreword by former Scots Makar Jackie Kay, the anthology gathered together 50 poems from the 2020 and 2021 Koestler Awards, showcasing some of the inspiring poetry written by people in the criminal justice system.

At the end of 2020 we were thrilled to be able to complete the curation project with young people from Sheffield Youth Justice Service behind the exhibition at Sheffield’s Millennium Gallery, which showcased artwork from across Yorkshire. However, the Exhibition itself ‘ My Path’ was postponed because of COVID restrictions which prevented the reopening of Galleries, until May 2021. Several pieces from the ‘ My Path’ exhibition were also shown at Ripon Museum from June to September

We also opened exhibitions in Manchester’s HOME, ’Soul Journey to Truth’ curated on Zoom by Lady Unchained, as part of the Ripples of Hope Human Rights Festival, and a further exhibition ‘ Power- Freedom to Create’ at the National Justice Museum in Nottingham. We were very grateful to all these galleries for continuing to support our exhibitions despite the issues they were dealing with during this time, imposed on them because of COVID restrictions

A small display at All Saints Dulwich from 5 October to 15 November coincided with Prisons Week / Prisons Sunday, and the church invited the chaplain at HMP Wandsworth to preach alongside the artwork. A further display in Newcastle Cathedral was in partnership with the Oswin Project was part of a conference called ‘Changing Perception’ and on display in March and April 2022.

2021 Events & Public Engagement

Our annual spoken word and poetry event Voices from Prison also took place at Southbank Centre during the course of the exhibition, and featured performances of written work from the 2020 and 2021 Koestler Awards by former Koestler Awards entrants, in front of a sold-out audience.

We opened the Koestler Arts Centre to the public in September for Open House London, as part of our commitment to share the creativity of Koestler Awards entrants with as wide a public audience as possible. This 2-day event also provided entrants with more opportunities to sell their work ,as well as supporting the charity Victim Support, which receives 25% of each artwork sale.

We continue with our monthly e newsletter distribution and continued in 2021/22 to increase our presence on Twitter, and now have more than 11,000 followers. We also posted all Medal Winners online to encourage entries and for art tutors to use, alongside images of work in our Exhibitions. Films made by ‘Way Out TV’ a company encouraging prisoners to become involved in TV production, and a film made at the Southbank Centre of the Exhibition have also been posted.

Following feedback from mentees around the positive impact of feeling part of a like-minded community, we initiated our Two Together Instagram takeover. We produced a series of interviews between 10 current and former mentees available on Instagram. These videos give

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

an insight into the impact of developing an arts practice in prison, and also work as a marketing tool for the mentoring scheme.

Achievements 2021-22 - Aim 3

Be an efficient, dynamic, and collaborative organisation, driven by values, quality, and outcomes.

Operations and Administration

We have been delighted to see continued support for our work and for those isolated in the criminal justice system throughout the year. The support of multi-year grants from ACE, HMPPS and Paul Hamlyn Foundation have allowed us to ensure our core work could continue.

We remain enormously grateful to all those Trusts, Foundations and individuals who have remained loyal to us during this difficult time. We have produced and widely distributed our Annual Review.

We have maintained regular contact with our individual supporters, building relationships and sharing the impact of their support, which has led to high donor retention. Centring our communication with Trusts and Foundations around stories from our beneficiaries has also seen our income from this area remain stable, which has been encouraging as we look to develop new partnerships to enable our work to grow.

This is the fourth year of the four-year funding that the Koestler Trust has benefitted from as a National Portfolio Organisation of Arts Council England, which is a great endorsement of the quality of our work. We continue to be hugely grateful also to the Ministry of Justice for their ongoing support.

This is also the third year of a 10-year grant from the Paul Hamlyn Foundation for our core work, which has underpinned some vital new developments, in particular again this year our Digital work has proved vital.

This is also the final year of the 4-year Business Plan ‘ Enhancing Engagement’ to improve the experience of both our beneficiaries and increase our Audience reach and diversity, and to continue to support our fundraising, in particularly digitally.

Koestler Arts has a strong ethos of social justice and is committed to taking action to reduce its energy consumption and waste. As outlined in our Environmental Action Plan, our new premises will build on the recommendations of an eco-audit and has had sustainability embedded at each step. Alongside the premises, we are committed to greening our awards and exhibitions as well as our office activities, with a commitment to sustainable printing and materials as well as a reduction in landfill waste.

Whilst the initial fundraising and granting of Planning Permission for our new premises was completed in 2020 and the Board of Trustees gave the go ahead to start the project at the December 2020 Board meeting, the project was delayed during 2021 because of negotiations on the lease of the land, and a consequent redesign of the building. This necessitated a reapplication for Planning Permission, which was granted again in December 2021. A

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

rebudgetted scheme was approved by the Board in January 2022 at an Extraordinary meeting, and work started on the construction of the building in March 2022. It is anticipated that the building will be in place, adjacent to our current offices, in the Autumn of 2022. This will enable a sea change in our operations allowing us a tailormade space and modern facilities in which our work can thrive.

We are hugely grateful to Arts Council England, including the Capital Kickstarter Fund, the Ministry of Justice, Hammersmith and Fulham Council, Trusts and Foundations and individuals who have all contributed to ensure that our new building has been made possible.

We were delighted to be shortlisted for the 2022 Award for Civic Arts Organisations in recognition of our work and response to the pandemic, and we are very grateful to the Calouste Gulbenkian Foundation for providing this opportunity to show the transformative impact of art in the criminal justice system.

We undertook a Board recruitment drive which resulted in a pleasingly large number of applicants, and we welcomed four new Board members to join our experienced Board to contribute to the health of the Charity.

The Koestler Trust remains a London Living Wage employer.

FINANCIAL REVIEW

The Koestler Trust’s income in 2021/22 was £847,489. This does not include income raised for our Capital funds for the new building.

The Koestler Trust has again delivered a successful year financially

In terms of Government funding, the Trust, retains its annual core grant from Her Majesty’s Prison and Probation Service (£75,000). This will continue into 2022/23. We remain part of Art Council England’s National Portfolio, receiving a core grant of £75,000 per year for 2018-22, which has been extended into 2022/23. Our grant from the Paul Hamlyn Foundation to support our core work, makes the Foundation our largest supporter.

Grant-making Foundations continued to provide the largest proportion of the Trust’s income at 49%. The Monument Trust, The Henry Smith Charity and the Bromley Trust were among those who maintained their support in 2021/22. During the year, the Trust also continued to receive funding from the Marie Louise von Motesiczky Trust.

This fundraising, alongside continuing much appreciated support for scholarships, named awards and core contributions from both individuals and smaller Trusts and Foundations, and Art Societies, contributed 24% of our fundraising total. We were also very fortunate to receive generous funds from Legacies left to the Trust during the year.

The Trust continued to receive funds from businesses, raising 6% of our funds from these sources. Our main corporate donors remain Elysium Healthcare and Sodexo Justice Services. CCLA continued their support and the collection of Koestler Trust work in their offices. Doughty Street Chambers supported the Visitors Choice award.

RESERVES

The Trust must raise its money on an ongoing basis (it does not have an endowment from its founder Arthur Koestler).

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

The Trustees' policy is to have reserves of unrestricted funds for the total costs of running the charity for at least 3 months ahead. At the year end, the Trust had free reserves of £184,905 with the unrestricted reserve of £564,212.

FUNDRAISING PRACTICES

All fundraising for the Koestler Trust is undertaken by the staff team, led by the Chief Executive and Development Director. No professional fundraisers or commercial participators carry out any fundraising activities on our behalf. Donor data is maintained on a secure database, and staff have undertaken training into the requirements of GDPR rules.

FUTURE PLANS

Enhancing Engagement: the Koestler Trust’s Strategic Plan to 2021/22 saw the last year of this plan, setting out 3 strategic goals relating to the charity’s three main areas of work. The development of our next 5-year plan was undertaken by the team and the Board during the year.

A new Equality and Diversity Policy and Action Plan has been developed to sit alongside our 5- year business plan. This plan will underpin our responsibility to attract a more diverse workforce and Board of Trustees, alongside our standing commitment to have a Board member with lived experience of the criminal justice system. The policy and action plan will ensure this commitment reaches beyond our internal structures, recognising and removing barriers which people from all backgrounds may face in accessing our Award Scheme, exhibition and events programme and outreach projects.

Our priorities for 2022-23

We will continue with many of the adaptations put in place to cope with the COVID 19 restrictions, which have proved valuable, particularly around digital delivery.

It is anticipated that our new building will be completed this coming financial year, our 60th anniversary. The building will enable a sea change in our operations, which will be reflected in our 2022-25 Business Plan.

Other plans include:

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the annual report and the financial statement in accordance with applicable law and 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 charity and of the net income or expenditure of the charity for the year. In preparing these financial statements the Trustees are required to:

The Trustees are responsible for maintaining 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.

The Trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.

In accordance with company law, as the company’s directors, we certify that:

Bringing increased self-confidence, wellbeing, hope and resilience to those in the criminal justice system has never been more vital. On behalf of the Trustees, I would like to thank the staff team, who have made sure that this vital work has kept going through very challenging times. Thanks also to my fellow Trustees, and all the donors, supporters and volunteers who helped to unlock the talent inside.

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2022

2022 will be an important milestone for Koestler Arts. It will be our 60[th] anniversary, and we can reflect back on the thousands of people who have participated in, and been inspired by, our work. But we will also very much be looking forward. Thanks to the amazing efforts of Sally Taylor and the team, our Koestler House sub-committee, and many of our loyal supporters, Koestler Arts will have its own home for the first time. Based in custom-built shipping containers, still in the shadow of HMP Wormwood Scrubs, it will continue to be a beacon of hope, now and for the future.

Approved by the Trustees and signed on their behalf by:

Dame Anne Owers (Chair of Trustees)

Date:

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The Koestler Trust Independent Auditor's Report To The Members Of The Koestler Trust For the ear ended 31 March 2022 y

Opinion

We have audited the financial statements of The Koestler Trust (the ‘parent company’) and its subsidiary ('the group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Statement of Cash flows 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 charity’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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

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.

/Continued …

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The Koestler Trust Independent Auditor's Report To The Members Of The Koestler Trust For the ear ended 31 March 2022 y

(Continued)

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement in the Trustees' Report, 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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

/Continued …

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The Koestler Trust Independent Auditor's Report To The Members Of The Koestler Trust For the ear ended 31 March 2022 y

(Continued)

Auditor’s 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 an auditor’s report 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:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

/Continued …

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The Koestler Trust

Independent Auditor's Report To The Members Of The Koestler Trust For the ear ended 31 March 2022 y

(Continued)

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor’s 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 parent company and the parent company’s members as a body, for our audit work, for this report or for the opinions we have formed.

Shoaib Arshad (Senior Statutory Auditor) For and on behalf of:

Knox Cropper LLP

Chartered Accountants & Statutory Auditors 65 Leadenhall Street London EC3A 2AD

10 November 2022

Registered company no. 04961363

17

The Koestler Trust

Consolidated Statement of Financial Activities (incorporating the Income and Expenditure Account) For the ear ended 31 March 2022 y

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
for charitable activities
2
for capital development
2
Other trading activities
4
Investments
5
Other
6
TOTAL
EXPENDITURE ON:
Raising funds
Costs of generating voluntary
income
Charitable activities
TOTAL EXPENDITURE
7
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 APRIL 2021
TOTAL FUNDS AT 31 MARCH 2022		 Unrestricted
Funds
2022
£
758,130
-
34,716
325
-
793,171
124,362
690,763
815,125
(21,954)
592,742
570,788
**£ **		 Restricted
Funds
2022
£
54,318
411,926
-
-
-
466,244
-
66,899
66,899
399,345
467,110
866,455
**£ **		 Total
Funds
2022
£
812,448
411,926
34,716
325
-		 Total
Funds
2021
£
967,181
397,221
11,083
692
30,715
1,259,415 1,406,892
124,362
757,662		 120,410
640,967
882,024 761,377
377,391
1,059,852		 645,515
414,337
1,437,243
**£ **		 1,059,852
_£ _

All income and expenditure has arisen from continuing activities. None of the Charity’s activities were acquired or discontinued during the above two financial years.

18

The Koestler Trust

(company limited by guarantee) (registered company no. 04961363) Consolidated Balance Sheet

As at 31 March 2022

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
14
Short term investments
15
Cash at bank and in hand
16
CREDITORS: amounts falling due within
one year
17
NET CURRENT ASSETS
TOTAL EXPENDITURE
NET ASSETS
FUNDS
Unrestricted funds:
Designated funds
18
Subsidiary companies
18
General fund
18
Restricted funds
18		 Charity
2022
£
482,076
100,223
582,299
56,822
50,053
935,359
1,042,234
(193,866)
848,368
1,430,667
£
368,195
-
196,017
564,212
866,455
1,430,667
**£ **		 Group
2022
£
482,075
100,222
582,297
54,883
50,053
949,387
1,054,323
(199,377)
854,946
1,437,243
£
368,195
6,576
196,017
570,788
866,455
1,437,243
**£ **		 Charity
2021
£
11,923
100,181
112,104
86,996
50,053
989,244
1,126,293
(180,553)
945,740
1,057,844
£
407,504
-
183,230
590,734
467,110
1,057,844
_£ _		 Group
2021
£
11,922
100,180
112,102
86,701
50,053
995,686
1,132,440
(184,690)
947,750
1,059,852
_£ _
407,504
2,008
183,230
592,742
467,110
1,059,852
_£ _

The financial statements have been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 relating to small companies and the Financial Reporting Standard 102. The financial statements were approved, and authorised for issue, by the Board of Trustees on ________ and signed on their behalf by:-29/09/22

DAME ANNE OWERS, Chair

JANE GILLESPIE, Treasurer

The annexed notes form part of these financial statements

19

The Koestler Trust Consolidated Cash Flow Statement For the ear ended 31 March 2022 y

Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation
Decrease in debtors
Decrease/(increase) in creditors
Investment income
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investments (fixed and short term)
Return on investment - interest receivable
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2021
Components of cash and cash equivalents
At 1 April
2021
£
Cash at bank and in hand
995,686
Cash and cash equivalents at 31 March 2022		 2022
£
377,391
2,912
31,818
14,687
(325)
426,483
(473,065)
(42)
325
(46,299)
995,686
949,387
£
Cashflows
£
(46,299)		 2021
£
645,515
7,361
56,020
(92,626)
(692)
615,578
(8,773)
(172)
692
607,325
388,361
995,686
_£ _
At 31 March
2022
£
949,387

20

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

1. ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102 have been prepared under the historical cost convention, and in accordance with applicable United Kingdom accounting standards and the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities' (FRS 102) and the Companies Act 2006. The presentational currency of the financial statements is Pound Sterling (£).

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

Group financial statements

These financial statements consolidate the results of the Charity and its wholly-owned subsidiary, Koestler (Sales) Limited, on a line by line basis. A separate Statement of Financial Activities for the Charity itself is not presented because the Charity has taken advantage of the exemptions afforded by the Companies Act 2006 and SORP 2015.

Company status

The Koestler Trust is a company limited by guarantee. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Charity for particular purposes. The cost of administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Statutory grants which are given as contributions towards the Charity's core services are treated as unrestricted.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, it is probable that the amount will be received and the amount can be quantified with reasonable accuracy. Revenue grants recieved are deferred when conditions are attached, for example when they relate to a specific future period.

Investment Income is recognised on an accruals basis.

21

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

Resources Expended

Expenditure is recognised on an accruals basis, inclusive of irrecoverable VAT.

Charitable activities include expenditure associated with the staging of art exhibitions as an essential part of promoting artistic activities on the part of people within the criminal justice system, as set out in the Trust’s Objectives stated in the Trustees report. They also include the award of prizes for the artistic merit of the work and the activities of the Koestler Art Centre, which organises the exhibitions, promotes the work of the Trust within the prison system, including specific arts projects and exhibits prisoner art on a permanent basis.

Support costs are overhead expenditure and management costs necessary in order to control the charitable activities of the Trust and ensure that the Trust’s objectives are being achieved. They are allocated over the charity’s expenditure headings, including fundraising, charitable activities and governance based on staff costs.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computer equipment Over 4 years Fixtures, fittings & equipment Over 7 years

Pensions

The Charity contributes to a defined contribution pension scheme on behalf of a number of employees. The pension charge represents the amount payable by the charity to the pension fund in respect of the year.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Judgements and key sources of estimation uncertainty

Judgements and key sources of estimation uncertainty are detailed in the above accounting policies, where applicable.

Financial Instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments, for example debtors, cash at bank and creditors. These are initially recognised at transaction value and subsequently valued at settlement value.

22

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
£ £ £ £
Income for Charitable activites
Donations from Public Sector 151,380 - 151,380 151,380
Donations from Trusts 344,159 51,318 395,477 460,892
Donations from Businesses 52,609 2,000 54,609 52,537
Donations from Individuals 100,091 1,000 101,091 107,366
Legacies 107,317 - 107,317 195,006
758,130 54,318 812,448 967,181
Capital Grants (note 3) - 411,926 411,926 397,221
**£ ** 758,130 **£ ** 466,244
 **£ ** 1,224,374 _£ _ 1,364,402
Comparative donations and legacies
Unrestricted Restricted Total
Funds Funds Funds
2021 2021 2021
Income for Charitable activites £ £ £
Donations from Public Sector 151,380 - 151,380
Donations from Trusts 367,892 93,000 460,892
Donations from Businesses 50,487 2,050 52,537
Donations from Individuals 107,366 - 107,366
Legacies 195,006 - 195,006
_£ _ 872,131 _£ _ 95,050
 _£ _ 967,181

In addition to the above grants, donations and legacies, the Trust receives the use of 168a Du Cane Road, and the costs associated with maintaining the premises, free of charge from HMP Wormwood Scrubs. This benefit is not included in the Statement of Financial Activities as the value cannot be ascertained without substantial expense on a quantity surveyor.

23

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

3.
KOESTLER HOUSE DEVELOPMENT
Capital Funds brought forward
Allocation of unrestricted grants and donations
Restricted grants and donations (note 2)
Analysis of Capital Funds (note 18)
Designated Funds
Restricted Funds		 2022
£
479,724
-
411,926
891,650
£
82,503
809,147
891,650
**£ **		 2021
£
82,503
-
397,221
479,724
_£ _
82,503
397,221
479,724
_£ _

The development for the new building has not started during the year. The advances of £27,223 from 2021 and the costs of £443,741 incurred during the year has been reported as additions to leasehold building under note 11 of these financial statements.

4. INCOME FROM OTHER TRADING ACTIVITIES

Trading income
Total 2022
Total 2021
5.
INVESTMENT INCOME
Interest receivable from:
Bank interest
Total 2022
Total 2021
6.
OTHER INCOMING RESOURCES
Other income
Total 2022
Total 2021		 Unrestricted
Funds
2022
£
34,716
34,716
£
11,083
£
Unrestricted
Funds
2022
£
325
325
£
692
£
Unrestricted
Funds
2022
£
-
Nil
£
30,715
_£ _		 Restricted
Funds
2022
£
-
Nil
£
Nil
£
Restricted
Funds
2022
£
-
Nil
£
Nil
£
Restricted
Funds
2022
£
-
Nil
£
Nil
£		 Total
Funds
2022
£
34,716
34,716
£
Total
Funds
2022
£
325
325
£
Total
Funds
2022
£
-
Nil
£		 Total
Funds
2021
£
11,083
11,083
_£ _
Total
Funds
2021
£
692
692
£
Total
Funds
2021
£
30,715
30,715
_£ _

Other income is the Government support during Covid-19 under the Coronavirus Job Retention Scheme.

24

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

7.
RESOURCES EXPENDED
Staff costs
£
Cost of charitable
activities by project:
UK Exhibition at
Southbank
29,649
Out of London
Exhibitions
64,318
Prizes Awarded
-
Arts Response & Awards
144,690
Publicity
26,542
Mentoring
42,684
Outreach and
Involvement
82,912
Koestler sales
-
Total charitable
expenditure
390,795
Costs of generating
voluntary income
69,679
460,474
£
Resources expended include:
Audit fee (inclusive of VAT)
Other services
Depreciation		 Other direct
costs
£
42,121
7,498
29,836
23,051
17,448
6,667
3,556
28,582
158,759
17,577
176,336
£		 Support
costs
£
15,789
34,251
-
77,051
14,134
22,730
44,153
-
208,108
37,106
245,214
£		 Total 2022
£
87,559
106,067
29,836
244,792
58,124
72,081
130,621
28,582
757,662
124,362
882,024
£
2022
3,480
2,766
2,912		 Total 2021
£
52,759
72,053
25,889
231,412
53,834
69,611
110,555
24,854
640,967
120,410
761,377
_£ _
2021
3,312
2,628
4,981

Details of staff costs are given in Note 9.

25

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

5. RESOURCES EXPENDED (continued)

Comparative resources expended

Other direct Support
Staff costs costs costs Total 2021
£ £ £ £
Cost of charitable
activities by project:
UK Exhibition at
Southbank 28,487 8,074 16,198 52,759
Out of London
Exhibitions 34,717 17,596 19,740 72,053
Prizes Awarded - 25,889 - 25,889
Arts Response & Awards 138,011 14,927 78,474 231,412
Publicity 29,020 8,313 16,501 53,834
Mentoring 42,136 3,516 23,959 69,611
Outreach and
Involvement 70,403 120 40,032 110,555
Koestler sales - 24,854 - 24,854
Total charitable
expenditure 342,774 103,289 194,904 640,967
Costs of generating
voluntary income 70,743 9,442 40,225 120,410
_£ _ 413,517 _£ _ 112,731
 _£ _ 235,129 _£ _ 761,377

8. SUPPORT COSTS

SUPPORT COSTS
Governance costs
Staff costs
General overheads		 Total
2022
£
7,813
143,932
93,469
245,214
**£ **		 Total
2021
£
5,877
142,516
86,736
235,129
_£ _

26

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

9. STAFF NUMBERS AND COSTS

Wages and salaries
Social security costs
Pension costs
Cost of contracted staff
Other staff costs
Allocated to:
Charitable activities
Fundraising costs
Support costs
Average number of employees		 2022
£
527,087
42,920
29,249
1,200
3,950
604,406
£
2022
£
390,795
69,679
143,932
604,406
£
21		 2021
£
504,974
30,327
15,506
5,226
-
556,033
_£ _
2021
£
342,774
70,743
142,516
556,033
_£ _
19

One (2020: one) employee received remuneration of more than £60,000 between £60,001 to £70,000.

The key management personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the Charity, directly or indirectly, including any Trustee of the Charity. In addition to the Trustees, Key management personnel includes the management team.

Following the recommendations of the National Council for Voluntary Organisations’ guidance on Setting and Communicating Remuneration Polices (April 2014), and with the agreement of the individual staff involved, the Koestler Trust has started publishing the gross salaries of its management team. These are as follows:

Chief Executive
Director of Arts
Director of Outreach & Involvement
Director of Development		 2022
£
68,612
46,581
39,063
44,154
198,410
**£ **		 2021
£
67,225
37,537
37,912
43,855
186,529
_£ _

27

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

10. TRUSTEES REMUNERATION AND BENEFITS

The Articles of Association allow for the payment of professional fees to Trustees under certain circumstances, however, during the year, no members of the Board of Trustees received any remuneration (2021 - £NIL).

No members of the Board of Trustees received reimbursement of expenses (2021 - £NIL).

11. TANGIBLE FIXED ASSETS

Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
On disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Koestler
House
£
-
470,964
-
470,964
-
-
-
-
470,964
£
Nil
£		 Fixture and
fittings
£
5,176
-
(2,000)
3,176
2,667
398
(2,000)
1,065
2,111
£
2,509
_£ _		 Computer
equipment
£
15,739
2,101
-
17,840
6,326
2,514
-
8,840
9,000
£
9,413
_£ _		 Total
£
20,915
473,065
(2,000)
491,980
8,993
2,912
(2,000)
9,905
482,075
**£ **
11,922
_£ _

A new building 'Koestler House' is under construction on leased land. Accounting for the depreciation of Koester House will commence when the building becomes operational.

12. INVESTMENTS
CCLA COIF Charities Deposit Fund
Investment in subsidiaries (note 13)		 Charity
2022
£
100,222
1
100,223
**£ **		 Group
2022
£
100,222
-
100,222
**£ **		 Charity
2021
£
100,180
1
100,181
_£ _		 Group
2021
£
100,180
-
100,180
_£ _

28

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

13. INVESTMENT IN SUBSIDIARIES

Koestler (Sales) Limited is a company limited by guarantee whose members are also the trustees of the Koestler Trust. The Company had a policy of donating 25% of sales income from artwork to Victim Support and is included in the costs of sales. The Company also had a policy to gift aid its profits to the Trust. One of the Trustees, Robert Taylor (resigned June 2022), was a director of Koestler (Sales) Limited. The financial results of Koestler (Sales) Limited are as follows:

Turnover
Cost of sales
Administrative costs
Profit in the year before Gift Aid
Gift Aid donations to Koestler Trust (Charity)
Profit in the year
Current assets
Liabilities
Profit and loss account
Capital and reserves		 2022
£
34,716
(25,083)
(3,499)
6,134
(1,566)
4,568
£
14,028
14,028
(7,453)
6,575
£
6,575
6,575
**£ **		 2021
£
11,083
(6,921)
(2,596)
1,566
(15,337)
(13,771)
£
6,621
6,621
(4,613)
2,008
£
2,008
2,008
_£ _

Following are the inter-company transactions during the year and balances held at the year end.

2022 2021
£ £
Balance due to Koestler Trust as at 31 March 2022 2,501 475
Koestler Trust income entitlement during the year 1,566 15,337

29

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

14. DEBTORS

Due within one year
Grant debtors
Due from group undertakings
Prepayments and accrued income
15. INVESTMENTS HELD AS CURRENT ASSETS
CAF 12 months fixed rate investment		 Charity
2022
£
-
2,501
54,321
56,822
£
Charity
2022
£
50,053		 Group
2022
£
-
-
54,883
54,883
£
Group
2022
£
50,053		 Charity
2021
£
-
475
86,521
86,996
£
Charity
2021
£
50,053		 Group
2021
£
-
-
86,701
86,701
_£ _
Group
2021
£
50,053

16. Cash at bank and in hand

The year end cash balance reflects the funds already raised and received for the construction of the new Koestler Arts building which will take place in 2022/23.

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Grants in advance
Social security and other taxes
Accruals
Other creditors		 Charity
2022
£
160,794
9,535
18,771
4,766
193,866
**£ **		 Group
2022
£
160,794
9,535
20,791
8,257
199,377
**£ **		 Charity
2021
£
152,556
10,574
12,767
4,656
180,553
_£ _		 Group
2021
£
152,556
10,574
14,452
7,108
184,690
_£ _

30

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

**18. ** STATEMENT OF FUNDS
Transfers and
Brought Incoming Resources investment Carried
Forward Resources Expended gains/(losses) Forward
£ £ £ £ £
DESIGNATED FUNDS
2021-22 Projects 21,001 - (21,001) - -
2022-23 Projects - 40,000 - - 40,000
Regional Exhibition Fund 50,000 - (50,000) - -
Mentoring & Outreach
Fund 40,000 - (5,000) - 35,000
Arts Awards and Response
Fund 110,000 - (110,000) 90,000 90,000
Family Support and Hosts
Fund 25,000 - (10,000) - 15,000
Website and Database
Development Fund 40,000 - - - 40,000
Koestler House
Development Fund 82,503 - - - 82,503
Koestler House Running
Costs Fund 15,000 - - - 15,000
Scholarships 24,000 - (24,000) - -
Mentoring Fund - - - 50,692 50,692
**£ ** 407,504
 **£ ** 40,000 £ (220,001)
 **£ ** 140,692 **£ ** 368,195
RESTRICTED FUNDS
UK Exhibition at
Southbank - 17,818 (17,818) - -
Koestler House
Development Fund 397,221 411,926 - - 809,147
Mentoring 69,889 36,500 (49,081) - 57,308
**£ ** 467,110
 **£ ** 466,244 £ (66,899)
 £ Nil **£ ** 866,455
SUMMARY OF FUNDS
Designated Funds 407,504 40,000 (220,001) 140,692 368,195
Subsidiary companies 2,008 34,716 (30,148) - 6,576
General Funds 183,230 718,455 (564,976) (140,692) 196,017
592,742 793,171 (815,125) - 570,788
Restricted Funds 467,110 466,244 (66,899) - 866,455
£ 1,059,852
 **£ ** 1,259,415 £ (882,024)
 £ Nil **£ ** 1,437,243

31

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

18. STATEMENT OF FUNDS (continued)

Comparative statement of funds

DESIGNATED FUNDS
2021-22 Projects
2020-21 Projects
Regional Exhibition Fund
Mentoring & Outreach
Fund
Arts Awards and
Response Fund
Family Support and Hosts
Fund
Website and Database
Development Fund
Koestler House
Development Fund
Koestler House Running
Costs Fund
Scholarships
RESTRICTED FUNDS
2020-21 Projects
UK Exhibition at
Southbank
Regional Exhibition Fund
Koestler House
Development Fund
Mentoring
SUMMARY OF FUNDS
Designated Funds
Subsidiary companies
General Funds
Restricted Funds		 Brought
Forward
£
-
56,100
-
-
20,000
-
-
82,503
-
-
158,603
£
-
-
-
-
63,000
63,000
£
158,603
15,779
176,955
351,337
63,000
414,337
_£ _		 Incoming
Resources
£
21,001
-
-
-
-
-
-
-
-
24,000
45,001
£
2,050
2,000
14,500
397,221
76,500
492,271
£
45,001
11,083
858,537
914,621
492,271
1,406,892
_£ _		 Resources
Expended
£
-
(56,100)
-
-
(20,000)
-
-
-
-
-
(76,100)
£
(2,050)
(2,000)
(14,500)
-
(69,611)
(88,161)
£
(76,100)
(24,854)
(572,262)
(673,216)
(88,161)
(761,377)
£		 Transfers and
investment
gains/(losses)
£
-
-
50,000
40,000
110,000
25,000
40,000
-
15,000
-
280,000
£
-
-
-
-
-
Nil
£
280,000
-
(280,000)
-
-
Nil
£		 Carried
Forward
£
21,001
-
50,000
40,000
110,000
25,000
40,000
82,503
15,000
24,000
407,504
_£ _
-
-
-
397,221
69,889
467,110
_£ _
407,504
2,008
183,230
592,742
467,110
1,059,852
_£ _

32

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
482,075
Fixed asset investments
-
100,222
Net current assets
368,195
(379,704)
368,195
£
202,593
£
Comparative analysis of net assets between funds
Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
11,922
Net current assets
407,504
173,316
407,504
£
185,238
_£ _		 Restricted
Funds
£
-
-
866,455
866,455
£
Restricted
Funds
£
-
467,110
467,110
_£ _		 Total
Funds
£
482,075
100,222
854,946
1,437,243
**£ **
Total
Funds
£
11,922
947,750
959,672
_£ _

20. PENSION COMMITMENTS

Pension costs in note 9 relate to payments made to a defined contribution pension scheme. The charitable company’s liability is limited to making the payments due to the scheme on a timely basis. The liability at the 31 March 2022 is £4,768 (2021 : £4,656).

21. RELATED PARTIES

There were no related party transactions, other than those disclosed in note 6 and 7.

33

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2022 y

22. COMPARATIVE CONSOLIDATED 22. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL STATEMENT OF FINANCIAL STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted d Total Unrestricted Restricted Total
Funds s Funds Funds Funds Funds
2022 2 2022 2021 2021 2021
£ £ £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies -
for charitable activities 872,131 95,050 967,181
for capital development - 397,221 397,221
Other trading activities - 11,083 - 11,083
Investments - 692 - 692
Other - 30,715 - 30,715
TOTAL - 914,621 492,271 1,406,892
EXPENDITURE ON:
Raising funds
Costs of generating voluntary
income - 120,410 - 120,410
Charitable activities - 552,806 88,161 640,967
TOTAL EXPENDITURE - 673,216 88,161 761,377
NET MOVEMENT IN FUNDS - 241,405 404,110 645,515
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 31 MARCH 2020 - 351,337 63,000 414,337
TOTAL FUNDS AT 31 MARCH 2021 £ Nil
 _£ _ 592,742
 _£ _ 467,110
 _£ _ 1,059,852

34