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2023-03-31-accounts

The Koestler Trust

Trustees’ Report for the year ended March 31st, 2023

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31st MARCH 2023

Charity Number 01105759 Company Number 04961363

The Koestler Trust

Trustees’ Report for the year ended March 31st, 2023

THE KOESTLER TRUST REPORT AND ACCOUNTS

CONTENTS

Page
Trustees’ Report 1 – 9
Independent Auditors’ Report 10 – 13
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15
Consolidated Cash Flow Statement 16
Notes to the Accounts 17 – 30

The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

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 2023. 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: Sir Richard Heaton KCB (Chair from 13 December 2022) Dame Anne Owers (trustee and Chair to 13 December 2022) Sally Bacon OBE (from 28 September 2023) Gary Badley (from 23 March 2023) Ariane Bankes (to 13 December 2022; reappointed 23 March 2023; Chair of the Arts sub-committee) David Banks (to 13 December 2022) Jasmin Booth (Treasurer and Chair of the Finance and HR subcommittee since 13 December 2022) Thomas Campbell (from 29 September 2022; Chair of the Koestler House sub-committee from 13 December 2022) Jane Gillespie (resigned as trustee, Treasurer and Chair of the Finance and HR sub-committee, 13 December 2022) Carl Hardwick Dr Nora Laraki Gary Mansfield (Chair of the Outreach and Involvement subcommittee since June 2022) Page Nyame Satterthwaite Carrie Peters (from 29 June 2023) Andrea Rose (Vice Chair) Nicola Solomon (to 19 May 2023) Robert Taylor (to 1 May 2022) Honorary President: Lord David Ramsbotham, who very sadly passed away in December 2022 Company Secretary and Fiona Curran (Interim Chief Executive from 1 April 2023, Chief Chief Executive Officer: Executive from 1 June 2023) Sally Taylor (to 31 March 2023)

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Koestler Trust (working name Koestler Arts) is governed by its Memorandum and Articles. Updated Articles of Association were adopted by special resolution passed on 14 December 2022.

The Board of Trustees met four times during the year and the Annual General Meeting was held on 14 December 2022.

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

The Finance and HR sub-committee is chaired by the Treasurer (Jane Gillespie until December 2022, and Jasmin Booth from December 2022) and includes the Chair, Vice Chair, Chief Executive and Development Director. It met on four occasions by Zoom during the year, scrutinising the finances and HR, and planning strategic development.

The Outreach and Involvement sub-committee , is chaired by Gary Mansfield and serviced by Sarah Matheve, Director of Outreach and Involvement. It oversees the mentoring programme and all other ways that the Charity engages with its beneficiaries, including work experience placements at the Koestler Arts Centre, family days and outreach visits to establishments. The group includes service-users and representatives from partner agencies.

The Arts sub-committee , is chaired by Ariane Bankes and serviced by Arts Manager, Joanna Tapp (while Fiona Curran was on maternity leave). It oversees the awards process, exhibitions, and sales. This group also includes award winners, awards judges, and prison art tutors.

The Koestler House sub-committee was chaired by David Banks until March 2023, and since then by Tom Campbell. The group provides oversight and guidance around the new Koestler Arts Centre building project.

Staff management is underpinned by Support and Supervision meetings, where each member of staff meets one-to-one with their line manager every 4-6 weeks. The decisions of these meetings are recorded in writing. Team meetings are held fortnightly. The Chief Executive’s Support and 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 Charity’s ongoing aims are to:

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

As registered with the Charities Commission, the Charity’s charitable objects are “for the advancement of the arts and education and for purposes beneficial to the community: a) to promote the creative enterprise of inmates and former inmates of prisons, young offender institutions, secure units and any other establishment for the lawful detention of individuals including patients and former patients in high security psychiatric and other hospital units in the United Kingdom ("the institution") and those subject to non-custodial orders in the United Kingdom and persons subjected to similar regimes outside the United Kingdom in the fields of the visual and performing arts, sciences, crafts or trades by the provision of awards to such persons and groups of persons for meritorious work and the exhibition of their work;

b) to institute or support worthwhile artistic or creative projects at any of the institutions which aim to stimulate the education or skills of such persons and to assist in their rehabilitation and resettlement in society.”

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 Charity’s awards, feedback, exhibitions, artwork sales, mentoring and outreach form a coordinated and effective programme of motivations for people in the criminal justice system to participate in the arts. The awards provide goals and rewards, feedback and exhibitions offer a connection to the outside world, sales provide recognition, the mentoring encourages participants to sustain their progress after release into the community, and the outreach visits to prisons bring artistic opportunities to new beneficiaries.

These activities bring benefits to the participants themselves - raising their self-awareness, helping them express and understand their feelings, and developing their skills and selfdiscipline. These improvements, in turn, bring benefits to participants’ 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 Charity’s activities is to help people in the criminal justice system move towards crime-free lives. The Trust also benefits the public by raising awareness and understanding of people in the criminal justice system, through showcasing their artistic achievements.

ACTIVITIES AND ACHIEVEMENTS DURING 2022-23

2022 was the Charity’s 60[th] anniversary year. Our entrants were at the heart of the annual programme, helping reach out to others within the criminal justice system and sharing an unprecedented number of works through our largest showcase ever. The celebration continued with several displays around the country.

The impacts of the Covid 19 pandemic could still be felt in the criminal justice system during this period. The establishments we work with were still returning to their usual regimes, including improving access to outside arts charities coming in for workshops, and allowing

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

volunteers to re-engage. We know that many establishments carry staff vacancies; that is challenging for the Charity too, as we rely on some of the great individuals working in establishments to help us support entrants. However, we have seen positive signs during this period, with the number of entries increasing, and we continue to use some of the new ways of working with establishments that we deployed during the pandemic period. We were able to carry out new initiatives that were inspired by focus groups of our potential, current and past entrants, to inspire new participants. We were pleased to be able to welcome volunteer judges and feedback-writers back in larger numbers than the previous year.

Work on the new Koestler Arts building began, and it was nearing completion by the end of March 2023. This will be our new home; its successful completion is hugely important to our future profile and ways of working.

Achievements, 2022-23 - Aim 1

Rising populations, and two years of Covid-19 restrictions, saw very restricted access to libraries and other learning facilities during 2020 and 2021-2022. So in 2021 only 22% of those surveyed by the Prison Reform Trust reported that accessing education was either ‘very easy’ or ‘quite easy.’ Yet we know that purposeful activity is key to successfully navigating a sentence. 89% of our entrants in 2021 told us that participating in the Koestler Awards built their selfconfidence, a crucial stepping-stone to a positive future.

Our priority for 2022-23, therefore, was to ensure that no one felt excluded from our core offer: we made changes to the ways that we inspired people to participate, how we motivated entrants to stay engaged, and to how we fostered stronger, more trusting relationships between people in secure settings and the wider public.

‘ Creativity has given me purpose and direction in my life. I wake up excited to create, rather than depressed about destroying something.’ Koestler Awards entrant 2022

In 2022, 3,048 men, women and young people entered the Koestler Awards with 6,744 pieces of visual art, music, and writing. 282 secure settings across the UK were represented in the Awards, including prisons, young offender institutions and secure mental health facilities, as well as probation services and approved premises.

This increase in entrant numbers (+20%), artworks created (+4%) and establishments represented (+5%) is an achievement at a challenging time for the criminal justice system. Around £30,000 was awarded in prize money to Koestler Awards entrants by more than 70 volunteer Awards judges, who included Bidisha, Jeremy Deller, Wilfrid Wood, Hot Chip and previous Koestler Awards entrants and Mentees.

1,410 people entered the Koestler Awards for the first time, while 299 entrants have been entering the Awards for over five years. Including exhibition audience feedback, 97.8% of entrants received personalised feedback on at least one of their entries. Judges, volunteers and staff members provided 87% of this, while feedback cards written by visitors to our exhibitions made up the remaining.

2022 marked another record in the history of Koestler Arts, with the work of 1,915 entrants being chosen for exhibition at Southbank Centre in October - around ten times more work than we would normally display.

‘It feels magical when a piece I’ve created speaks to another person.’

Koestler Awards entrant 2022

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

35 establishment visits have been made in the year since February 2022, ensuring as many people in secure settings as possible could see the potential for creativity in secure settings and learn about the Awards. Visits also enable staff and prisoners to share feedback on our work and have their achievements celebrated by Koestler Arts staff members at certificate presentations.

The Outreach team also piloted In-Person Feedback Days , an idea that came from the focus groups which we held in the first year of funding from Paul Hamlyn Foundation to help us ensure our entrants shape future plans and projects. This pilot saw artists and writers with experience of the value of arts in secure settings join learners at three establishments to lead live feedback sessions: HMP Stafford, HMP & YOI Stoke Heath and St Andrew’s Healthcare Birmingham. 28 prisoners and secure patients participated in the sessions, each sharing their own artworks for discussion, and feeding back their thoughts and feelings on the artwork of their peers.

We welcomed 55 staff members from secure settings around the country to our 2022 Arts Tutor Seminar , nearly double the number that were able to attend in person in 2021. The seminar allowed teaching staff, who often work in isolation from each other, to share experiences and best practice, as well as feedback on areas where Koestler Arts could grow to offer greater impact in the criminal justice system.

We were thrilled that in 2022 our popular Friends and Family Events returned for the first time since the start of the Covid-19 pandemic, with 7 Family and Friends Afternoons at Southbank Centre. Friends and relatives of the 1,915 artists exhibited at our national exhibition received invitations to join Koestler Arts staff at the show, where they were able to view their loved one’s artwork in a supportive environment and learn more about the Koestler Awards from specially trained ex-prisoner exhibition hosts. We also hosted Family Days at both our exhibitions in Bracknell and Glasgow, welcoming 26 guests including several of the artists with work on display.

The Koestler Arts Mentoring Programme helps further the transformative power of the arts, and provides opportunity, access, and growth in individual lives post release. Over the course of a year, Koestler Arts mentees receive bespoke one-to-one assistance from a specialist in their chosen artform. 15 mentoring relationships are currently being supported through the scheme, with referrals from probation services increasing and in-person sessions now back in place following the pandemic.

We continue to commission and pay mentees to produce our monthly Art Aid sheets , and have also been able to offer additional, paid commissions to mentees, including the production of unique artworks and paid speaking opportunities.

‘My involvement with Koestler Arts helped the parole board see me as an individual with aspirations and a strong base to start my life again.’ Koestler Award Winner and Mentee, 2022

Achievements, 2022-23 Aim 2

For our 60[th] anniversary celebrations we were able to showcase an unprecedented number of entries to the Koestler Awards at events and exhibitions in Glasgow, Newcastle, Bracknell and London, as well as online.

Throughout March 22, Changing Perceptions was open and free to the public at Newcastle Cathedral. The exhibition was organised by the Oswin Project, a charity supporting prison-

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

leavers in the Northeast of England and showcased 15 Koestler Awards artworks alongside work from the Burnbake Trust, HM Prisons Low Newton and Northumberland.

The summer saw the return of Koestler Arts to the Supreme Court with The Future is Never Too Big , a public display of artwork by under 18s in secure settings or under supervision with a youth offending team, which ran until the autumn.

Freedom , our 15[th] UK exhibition in partnership with Southbank Centre, opened at the end of October. Curated by artist Ai Weiwei, Freedom was our biggest exhibition to date. The exhibition featured daily tours by ex-prisoner exhibition hosts , employed by Koestler Arts and trained to help guide visitors around the exhibition, as well as opportunities for visitors to buy over 1,000 pieces of original artwork.

Our annual spoken word and poetry event Voices from Prison also took place at Southbank Centre in October, as part of the London Literature Festival. The event brought together writers and performers with lived experience of the criminal justice system with a public audience of 150 , for an evening of spoken word and poetry readings.

In January 2023 we were able to exhibit in Scotland again, opening Our World , an exhibition of artwork from the Scottish criminal justice system at Glasgow’s Tramway gallery. The exhibition was co-curated by a group of prisoners from HMP Shotts, and centred on key themes of nature, identity, current affairs and colour.

Also opening in January 2023, On My Plate was an exhibition by women in the criminal justice system, in partnership with the University of Surrey’s ‘Doing Porridge’ research project. Held at South Hill Park Arts Centre in Bracknell, the exhibition focused on food inside and outside the criminal justice system, combining art made in the research project’s creative workshops and pieces entered into the 2022 Koestler Awards.

Achievements, 2022-23 - Aim 3

The charity was awarded the 2022 Longford Prize for our work making ‘a vital human connection between prisoners and the public.’ We were also shortlisted for the Calouste Gulbenkian Foundation 2022 Award for Civic Arts Organisations, in recognition of our work throughout the pandemic in supporting prisoners.

Having resiliently navigated the pandemic to ensure that our core offer continued, levels of fundraising were achieved and staff welfare was prioritised, as a small charity we are now facing the challenges of the cost of living crisis in terms of fundraising and HR. In 2022-23 we offered slight pay increases to staff members on the lowest salaries.

While donor retention remained around 85-95%, we are closely monitoring the impact of the current economic climate on our individual giving , particularly regular donations, and are focusing on increasing levels of communication and in-person and online opportunities for supporters to be involved with our work. At this time more than ever, multi-year grants from trusts and foundations as well as public funders can give us the security to plan ahead. We have been successful in a very competitive round to retain our status as an Arts Council England NPO at our current level of support (£76,380 a year) for 2023-2026, as well as successfully achieving a 3-year grant from HMPPS (£75,000 a year).

The new Koestler Arts Centre neared completion in 2022-23, with fit-out work and the move planned for 2023. We are excited to be able to welcome staff, volunteers and visitors to an accessible, environmentally-friendly building, from which we can do much more for our beneficiaries. The use of recycled shipping containers for the new building meant that many of

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

the increases in the costs of raw materials seen during the project were less impactful than has been seen in other similar projects during this period. The charity’s future budgets will, for the first time, take into account building running costs, although there will be no ongoing rent or loan repayments.

To coincide with the move into our new premises, we also redeveloped our website , to ensure it is accessible and clearly represents the charity, our aims and our activities. Through the redevelopment of our main website, as well as our donation and e-commerce platforms, we aim to make the process of supporting Koestler Arts through visiting exhibitions, volunteering, donating and buying artwork and merchandise easier, as well as streamlining the ways people can directly benefit and get involved with our work. Equality and Diversity remains a standing item on our Board agendas and staff and stakeholder focus groups are under way to explore additional ways we can remove barriers which people from all backgrounds may face in accessing our work.

This year saw a series of changes to our Board and Management team . Dame Anne Owers, Chair of Trustees, alongside 3 long-standing Trustees stood down at our December AGM. A successful round of Board recruitment has brought in new Board members with experience across business, and the prison system, with two new trustees with experience in fundraising and probation joining in 2023-24.

Our Chief Executive, Sally Taylor, stepped down, after nearly eight years in post, at the end of the financial year. The Board and staff of the Charity thank her for her huge contribution over this time; she led us through the challenges of the pandemic and her drive and vision delivered us an inspiring new building. An open recruitment process started early in 2023, and in June the Board was delighted to announce that Fiona Curran, previously Director of Arts with the charity for over 13 years, had been selected as our new Chief Executive.

The charity remains a London Living Wage employer.

FINANCIAL REVIEW

The Koestler Trust’s consolidated income in 2022-23 was £946,446. This does not include income raised for our capital funds for the new building.

The Koestler Trust delivered a successful year financially. In terms of Government funding, the Charity retained its annual core grant from HMPPS (£75,000). We remained part of Art Council England’s National Portfolio, receiving a core grant of £76,380, which was reconfirmed for the next funding period. 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 Charity’s income (excluding capital grants), at almost 30%. The Maingot Charitable Trust and the Bromley Trust were among those who maintained their support in 2022-23. 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, smaller Trusts and Foundations, and Art Societies, also helped us reach fundraising targets. We were very fortunate to receive generous funds from Legacies left to the Trust during the year - an unusually high amount for the charity.

The Trust continued to receive funds from businesses. Our main corporate donors remain Elysium Healthcare, Serco and Sodexo Justice Services. CCLA Investment Management

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

continued their support and to host a collection of Koestler Arts work in their offices. Doughty Street Chambers supported the Visitors Choice Award at the UK exhibition.

RESERVES

The Trust has no permanent endowment. It must therefore raise money on an ongoing basis.

The Trustees' policy is to have reserves of unrestricted funds for the total costs of running the charity for at least three months ahead. At the year end, the Trust had free reserves of £269,090 with the total unrestricted reserve of £537,229.

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 legislation.

FUTURE PLANS

The new Board and Senior Leadership Team assembled for a combined strategy day in September 2023, and following that session we will work together to update our five-year business plan. We anticipate that our new strategy will use the new building to improve every aspect of our work. It will also be a welcoming and accessible space for alumni and prison staff to visit, and will reduce our impact on the environment. We will look to digitise processes and use modern software, so that we can respond quicker with tailored support, be better able to monitor participation levels and trends, raise funds more effectively, reach audiences, and support increasing numbers of beneficiaries. We will look to ensure that our offer remains relevant to all possible participants, including young people, those serving short sentences, and those from minority or disadvantaged backgrounds. We will look to showcase work in new ways, across the whole of the UK, covering music and performance as well as the visual arts.

As well as processing an almost 30% increase in Koestler Awards entries, producing a poetry anthology, a UK exhibition and our first exhibition in the South West of England, one of our key activities in 2023-24 will be to open our new Koestler Arts Centre, next door to the current building on the grounds of HMP Wormwood Scrubs. We are very grateful to the individuals, Arts Council England, the Ministry of Justice, The London Borough of Hammersmith and Fulham, and the Trusts and Foundations who have supported this project over the last few years. We also thank the Koestler House sub-committee who have helped steer its progress.The Charity has been able to secure use of its current premises until the end of March 2024, in order to efficiently return the record number of 2023 entries, as we move into our new premises.

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:

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The Koestler Trust Trustees’ Report for the year ended March 31st, 2023

material departures disclosed and explained in the financial statements.

· Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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:

· so far as we are aware, there is no relevant audit information of which the charitable company’s auditors are unaware; and

· as directors of the company, we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

We are privileged to work with thousands of individuals in the criminal justice system who have the potential to thrive, to succeed, and in many cases to turn their lives around. Increasing their wellbeing, self-confidence, hope and resilience is as vital as ever. On behalf of the Trustees, I would like to thank the Charity’s small and talented staff team, led passionately and skilfully for many years by Sally Taylor and, since June, by our superb new Chief Executive Fiona Curran. They are the people who have kept this vital work going through some very challenging times. They have also positioned the Charity to modernise and improve its operations, so that we can continue to change lives in the years ahead. On behalf of the Trustees and staff, I would also like to thank all the donors, supporters and volunteers who have shared the Charity’s powerful vision and have helped to unlock the talent inside. And I would like to thank my fellow Trustees too, for lending their time and experience to the Charity and for supporting it in so many ways.

Very soon, Koestler Arts will have its own home for the first time. Still in the shadow of HMP Wormwood Scrubs, but constructed from shipping containers, our new headquarters will be as distinctive and different as the Charity itself: a brilliant arts organisation in a penal setting, and a powerful reminder that change is possible.

Approved by the Trustees and signed on their behalf by:

Richard Heaton Signed on 15/12/23 @ 21:09 Sir Richard Heaton KCB Chair of Trustees

0023-12-15 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 2023 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 2023 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 2023 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 2023 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 2023 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

Registered company no. 04961363

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The Koestler Trust

Consolidated Statement of Financial Activities (incorporating the Income and Expenditure Account) For the ear ended 31 March 2023 y

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
for charitable activities
2
for capital development
2
Other trading activities
4
Investments
5
TOTAL
EXPENDITURE ON:
Raising funds
Costs of generating voluntary
income
Charitable activities
TOTAL EXPENDITURE
6
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 APRIL 2022
TOTAL FUNDS AT 31 MARCH 2023		 Unrestricted
Funds
2023
£
847,792
-
37,048
2,370
887,210
136,057
765,444
901,501
(14,291)
570,788
556,497
**£ **		 Restricted
Funds
2023
£
59,236
490,268
-
-
549,504
-
94,432
94,432
455,072
866,455
1,321,527
**£ **		 Total
Funds
2023
£
907,028
490,268
37,048
2,370		 Total
Funds
2022
£
812,448
411,926
34,716
325
1,436,714 1,259,415
136,057
859,876		 124,362
757,662
995,933 882,024
440,781
1,437,243		 377,391
1,059,852
1,878,024
**£ **		 1,437,243
_£ _

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.

14

The Koestler Trust

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

As at 31 March 2023

Notes
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Debtors
13
Short term investments
14
Cash at bank and in hand
15
CREDITORS: amounts falling due within
one year
16
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted funds:
Designated funds
17
Subsidiary companies
17
General fund
17
Restricted funds
17		 Charity
2023
£
966,638
102,000
1,068,638
90,304
-
970,102
1,060,406
(270,288)
790,118
1,858,756
£
260,730
-
276,499
537,229
1,321,527
1,858,756
**£ **		 Group
2023
£
966,637
101,999
1,068,636
89,202
-
1,004,809
1,094,011
(284,623)
809,388
1,878,024
£
260,730
19,268
276,499
556,497
1,321,527
1,878,024
**£ **		 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
_£ _

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 2023-12-18________ and signed on their behalf by:-

Richard Heaton

Signed on 15/12/23 @ 21:09

SIR RICHARD HEATON KCB, Chair

J Booth ~~Signed on 18/12/23 @ 13:52~~

JASMIN BOOTH, Treasurer

The annexed notes form part of these financial statements

15

The Koestler Trust Consolidated Cash Flow Statement For the ear ended 31 March 2023 y

Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation
(Increase)/decrease in debtors
Decrease 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 increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April 2022
Components of cash and cash equivalents
At 1 April
2022
£
Cash at bank and in hand
949,387
Cash and cash equivalents at 31 March 2023		 2023
£
440,781
5,844
(34,319)
85,246
(2,370)
495,182
(490,406)
48,276
2,370
55,422
949,387
1,004,809
£
Cashflows
£
55,422		 2022
£
377,391
2,912
31,818
14,687
(325)
426,483
(473,065)
(42)
325
(46,299)
995,686
949,387
_£ _
At 31 March
2023
£
1,004,809

16

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 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.

17

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 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.

18

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

2. DONATIONS AND LEGACIES
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Income for Charitable activites
Donations from Public Sector 151,380 11,250 162,630 151,380
Donations from Trusts 253,903 28,543 282,446 395,477
Donations from Businesses 76,261 12,817 89,078 54,609
Donations from Individuals 85,857 6,626 92,483 101,091
Sales of Donated Goods - - - 2,574
Legacies 280,391 - 280,391 107,317
847,792 59,236 907,028 812,448
Capital Grants (note 3) - 490,268 490,268 411,926
**£ ** 847,792 **£ ** 549,504
 **£ ** 1,397,296 _£ _ 1,224,374
Comparative donations and legacies
Unrestricted Restricted Total
Funds Funds Funds
2022 2022 2022
Income for Charitable activites £ £ £
Donations from Public Sector 151,380 - 151,380
Donations from Trusts 344,159 51,318 395,477
Donations from Businesses 52,609 2,000 54,609
Donations from Individuals 100,091 1,000 101,091
Sales of Donated Goods 2,574 - 2,574
Legacies 107,317 - 107,317
758,130 54,318 812,448
- 411,926 411,926
_£ _ 758,130 _£ _ 466,244
 _£ _ 1,224,374

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.

19

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

3.
KOESTLER HOUSE DEVELOPMENT
Capital Funds brought forward
Restricted grants and donations (note 2)
Analysis of Capital Funds (note 17)
Designated Funds
Restricted Funds		 2023
£
479,724
490,268
969,992
£
82,503
887,489
969,992
**£ **		 2022
£
82,503
397,221
479,724
_£ _
82,503
397,221
479,724
_£ _

The development of the new building started during the year and will be completed in 2023-4. The costs of £959,228 incurred by 31 March 2023 has been reported as additions to leasehold building under note 11 of these financial statements.

4. INCOME FROM OTHER TRADING ACTIVITIES

Trading income
Total 2023
Total 2022
5.
INVESTMENT INCOME
Interest receivable from:
Bank interest
Total 2023
Total 2022		 Unrestricted
Funds
2023
£
37,048
37,048
£
34,716
£
Unrestricted
Funds
2023
£
2,370
2,370
£
325
_£ _		 Restricted
Funds
2023
£
-
Nil
£
Nil
£
Restricted
Funds
2023
£
-
Nil
£
Nil
£		 Total
Funds
2023
£
37,048
37,048
£
Total
Funds
2023
£
2,370
2,370
**£ **		 Total
Funds
2022
£
34,716
34,716
_£ _
Total
Funds
2022
£
325
325
_£ _

20

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

6.
RESOURCES EXPENDED
Staff costs
£
Cost of charitable
activities by project:
UK Exhibition at
Southbank
35,323
Out of London
Exhibitions
32,307
Prizes Awarded
-
Arts Response & Awards
141,538
Publicity
27,925
Mentoring
41,195
Outreach and
Involvement
90,761
Koestler sales
-
Total charitable
expenditure
369,049
Costs of generating
voluntary income
74,837
443,886
£
Resources expended include:
Audit fee (inclusive of VAT)
Other services
Depreciation		 Other direct
costs
£
101,462
23,480
28,539
28,008
34,102
9,200
9,295
21,855
255,941
13,589
269,530
£		 Support
costs
£
22,482
20,562
-
90,084
17,773
26,219
57,766
-
234,886
47,631
282,517
£		 Total 2023
£
159,267
76,349
28,539
259,630
79,800
76,614
157,822
21,855
859,876
136,057
995,933
£
2023
6,600
2,040
5,844		 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
4,680
1,566
4,981

Details of staff costs are given in Note 8.

21

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

6. RESOURCES EXPENDED (continued)

Comparative resources expended

Other direct Support
Staff costs costs costs Total 2022
£ £ £ £
Cost of charitable
activities by project:
UK Exhibition at
Southbank 29,649 42,121 15,789 87,559
Out of London
Exhibitions 64,318 7,498 34,251 106,067
Prizes Awarded - 29,836 - 29,836
Arts Response & Awards 144,690 23,051 77,051 244,792
Publicity 26,542 17,448 14,134 58,124
Mentoring 42,684 6,667 22,730 72,081
Outreach and
Involvement 82,912 3,556 44,153 130,621
Koestler sales - 28,582 - 28,582
Total charitable
expenditure 390,795 158,759 208,108 757,662
Costs of generating
voluntary income 69,679 17,577 37,106 124,362
_£ _ 460,474 _£ _ 176,336
 _£ _ 245,214 _£ _ 882,024

7. SUPPORT COSTS

SUPPORT COSTS
Governance costs
Staff costs
General overheads		 Total
2023
£
15,520
168,605
98,392
282,517
**£ **		 Total
2022
£
7,813
143,932
93,469
245,214
_£ _

22

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

8. 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		 2023
£
521,700
42,927
28,294
-
19,570
612,491
£
2023
£
369,049
74,837
168,605
612,491
£
21		 2022
£
527,087
42,920
29,249
1,200
3,950
604,406
_£ _
2022
£
390,795
69,679
143,932
604,406
_£ _
19

One (2022: 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		 2023
£
71,685
17,886
40,456
46,038
176,065
**£ **		 2022
£
68,612
46,581
39,063
44,154
198,410
_£ _

23

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

9. 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 (2022 - £NIL).

No members of the Board of Trustees received reimbursement of expenses (2022 - £NIL).

10. TANGIBLE FIXED ASSETS

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Koestler
House
£
470,964
488,264
959,228
-
-
-
959,228
£
470,964
_£ _		 Fixture and
fittings
£
3,176
608
3,784
1,065
1,015
2,080
1,704
£
2,111
_£ _		 Computer
equipment
£
17,840
1,534
19,374
8,840
4,829
13,669
5,705
£
9,000
_£ _		 Total
£
491,980
490,406
982,386
9,905
5,844
15,749
966,637
**£ **
482,075
_£ _

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.

11. INVESTMENTS
CCLA COIF Charities Deposit Fund
Investment in subsidiaries (note 12)		 Charity
2023
£
101,999
1
102,000
**£ **		 Group
2023
£
101,999
-
101,999
**£ **		 Charity
2022
£
100,222
1
100,223
_£ _		 Group
2022
£
100,222
-
100,222
_£ _

24

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

12. 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. Three of the Trustees were directors of Koestler (Sales) Ltd during the year: Dr Nora Laraki, (appointed December 2022) Gary Mansfield, and Robert Taylor (resigned September 2022).

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)
Corporation tax charge
Profit in the year
Current assets
Liabilities
Profit and loss account
Capital and reserves		 2023
£
37,048
(17,712)
(3,750)
15,586
(2,501)
(393)
12,692
34,708
34,708
(15,440)
19,268
19,268
19,268		 2022
£
34,716
(25,083)
(3,499)
6,134
(1,566)
-
4,568
_£ _
14,029
14,029
(7,453)
6,576
_£ _
6,576
6,576
_£ _

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

2023 2022
£ £
Balance due to Koestler Trust as at 31 March 2023 1,667 2,501
Koestler Trust income entitlement during the year 2,501 1,566

25

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

13. DEBTORS

DEBTORS
Charity Group Charity Group
2023 2023 2022 2022
Due within one year £ £ £ £
Due from group undertakings 1,667 - 2,501 -
Prepayments and accrued income 79,484 80,049 54,321 54,883
**£ ** 90,304 **£ ** 89,202 _£ _ 56,822 _£ _ 54,883
INVESTMENTS HELD AS CURRENT ASSETS
Charity Group Charity Group
2023 2023 2022 2022
£ £ £ £
CAF 12 months fixed rate investment - - 50,053 50,053

14. INVESTMENTS HELD AS CURRENT ASSETS

15. 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 be completed in 2023-24

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Grants in advance
Social security and other taxes
Accruals
Other creditors		 Charity
2023
£
214,178
10,062
40,303
5,745
270,288
**£ **		 Group
2023
£
214,178
10,062
40,603
14,153
284,623
**£ **		 Charity
2022
£
160,794
9,535
18,771
4,766
193,866
_£ _		 Group
2022
£
160,794
9,535
18,771
10,277
199,377
_£ _

26

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

17. STATEMENT OF FUNDS

STATEMENT OF FUNDS
DESIGNATED FUNDS
2022-23 Projects
Outreach Fund
Mentoring 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
Mentoring Fund
RESTRICTED FUNDS
UK Exhibition at
Southbank
Koestler House
Development Fund
Mentoring
SUMMARY OF FUNDS
Designated Funds
Subsidiary companies
General Funds
Restricted Funds		 Brought
Forward
£
40,000
-
35,000

90,000
15,000
40,000
82,503
15,000
50,692
368,195
£
-
809,147
57,308
866,455
£
368,195
6,576
196,017
570,788
866,455
1,437,243
£		 Incoming
Resources
£
-
-
-
-
-
-
-
-
-
Nil
£
17,818
490,268
41,418
549,504
£
-
37,048
850,162
887,210
549,504
1,436,714
**£ **		 Resources
Expended
£
(40,000)
(35,000)
(90,000)
-
(9,270)
(82,503)
(15,000)
(50,692)
(322,465)
£
(17,818)
-
(76,614)
(94,432)
£
(322,465)
(24,356)
(554,680)
(901,501)
(94,432)
(995,933)
£		 Transfers and
investment
gains/(losses)
£
-
65,000
50,000
100,000
-
-
-
-
-
215,000
£
-
-
-
Nil
£
215,000
-
(215,000)
-
-
Nil
£		 Carried
Forward
£
-
65,000
50,000
100,000
15,000
30,730
-
-
-
260,730
**£ **
-
1,299,415
22,112
1,321,527
**£ **
260,730
19,268
276,499
556,497
1,321,527
1,878,024
**£ **

27

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

17. STATEMENT OF FUNDS (continued)

Comparative statement of funds

DESIGNATED FUNDS
2021-22 Projects
2022-23 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
Mentoring Fund
RESTRICTED FUNDS
UK Exhibition at
Southbank
Koestler House
Development Fund
Mentoring
SUMMARY OF FUNDS
Designated Funds
Subsidiary companies
General Funds
Restricted Funds		 Brought
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
_£ _		 Incoming
Resources
£
-
40,000
-
-
-
-
-
-
-
-
-
40,000
£
17,818
411,926
36,500
466,244
£
40,000
34,716
718,455
793,171
466,244
1,259,415
_£ _		 Resources
Expended
£
(21,001)
-
(50,000)
(5,000)
(110,000)
(10,000)
-
-
-
(24,000)
-
(220,001)
£
(17,818)
-
(49,081)
(66,899)
£
(220,001)
(30,148)
(564,976)
(815,125)
(66,899)
(882,024)
£		 Transfers and
investment
gains/(losses)
£
-
-
-
-
90,000
-
-
-
-
-
50,692
140,692
£
-
-
-
Nil
£
140,692
-
(140,692)
-
-
Nil
£		 Carried
Forward
£
-
40,000
-
35,000
90,000
15,000
40,000
82,503
15,000
-
50,692
368,195
_£ _
-
809,147
57,308
866,455
_£ _
368,195
6,576
196,017
570,788
866,455
1,437,243
_£ _

28

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Fixed asset investments
Net current assets		 Unrestricted Funds
Designated
General
Funds
Funds
£
£
-
7,409
-
101,999
260,730
186,359
260,730
£
295,767
**£ **		 Restricted
Funds
£
959,228
-
362,299
1,321,527
**£ **		 Total
Funds
£
966,637
101,999
809,388
1,878,024
**£ **
Comparative analysis of net assets between funds
Unrestricted Funds
Designated General Restricted Total
Funds Funds Funds Funds
£ £ £ £
Tangible fixed assets - 11,111 470,964 482,075
Fixed asset investments - 100,222 - 100,222
Net current assets 368,195 91,260 866,455 854,946
_£ _ 368,195 _£ _ 202,593 _£ _ 866,455 _£ _ 1,437,243

19. PENSION COMMITMENTS

Pension costs in note 8 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 2023 is £5,746 (2022 : £4,768).

20. RELATED PARTIES

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

29

The Koestler Trust Notes to the consolidated Financial Statements For the ear ended 31 March 2023 y

21. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted d
Total
Unrestricted
Funds s
Funds
Funds
2023 3
2023
2022
£ £
£
£
INCOME AND ENDOWMENTS FROM:
Donations and legacies
-
for charitable activities
717,398
for capital development
-
Other trading activities
-
34,716
Investments
-
325
TOTAL
-
752,439
EXPENDITURE ON:
Raising funds
Costs of generating voluntary
income
-
124,362
Charitable activities
-
669,501
TOTAL EXPENDITURE
-
793,863
NET MOVEMENT IN FUNDS
-
(41,424)
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 31 MARCH 2021
-
996,852
TOTAL FUNDS AT 31 MARCH 2022
Nil
£
955,428
_£ _		 Restricted
Funds
2022
£
95,050
397,221
-
-		 Total
Funds
2022
£
812,448
411,926
34,716
325
492,271 1,259,415
-
88,161		 124,362
757,662
88,161 882,024
404,110
63,000		 377,391
1,059,852
467,110
_£ _		 1,437,243
_£ _

30