REGISTEREO CHARITY NUMBER 1111552 The CafflbridgeTrust forNewThinking inEconomics THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS TRUST INFORMATION Founder Professor T S Barker Trustees Professor T S Barker Professor P Arestis Mr R G Lewney Mr D M FTaylor Dr A Anger-Kraavi Address 19A Covent Garden Cambridge CBI 2HT Solicitors Taylor Vinters Merlin House Milton Road Cambridge CB4 ODP Auditors Ensors Accountants LLP 1st Floor, Victory House Vision Park Chivers Way Histon Cambridge CB24 9ZR Bankers HSSC 32 Market Hill Cambridge CB2 3HZ
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS CONTENTS Page Trustees, report Independent auditor's report to the Trustees Con501idated statement of financial activities Consolidated balance sheet io Consolidated statement of cash flows li Notes to the financial statements 11-28
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS TRUSTEES, REPORT FOR THE YEAR ENDED 30 JUNE 2022 The Trustees have pleasure in presenting their report and the financial statements for the year ended 30 June 2022. In preparing this report the Trustees have complied with the Charities Act 2011. the Accounting and Reporting by Charities.. Statement of Recommended Practice published July 2014 a5 updated IFRS102 SORPI, applicable accounting standards and the Trust Deed dated 28 September 2005. REFERENCE AND ADMINISTRATIVE INFORMATION The Trust was founded in 2005 and is registered with the Charity Commission for England and Wales under charity number 1111552. The Trustees who served throughout the year, principal address and professional advisors are given on the Trust information page. STRucfuRE, GOVERNANCE AND MANAGEMENT Governing document The Trust is governed by its Trust Deed dated 28 September 2005. Governing body The governing body consists of the Trustee5. The power of appointing new Trustees is vested in the Founder, Professor T S Barker. Recrultment and training of Trustees New Trustee5 may be appointed at any time, subject to the total number of Trustees not exceeding seven. New Trustees do not undertake a formal induction process. Organisational management The Trustees are legally responsible for the overall management and control of the Trust and meet at least twice a year. Group structure and relationships The Trust holds 51.22% of the issued share capital of Cambridge Econometrics Limited, a non- charitable company, which in turn has trading subsidiaries whose activities and trading performance are discussed below. The Trustees are responsible for the efficient running of the Trust and for all aspects of policy and strategy implementation.
THE CAMBRIDGE TRUST FOR NEWTHINKING IN ECONOMICS TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 30JUNE 2022 Risk management The Trustees are responsible for the management of the risks faced by the Trust. Risks are identified and assessed throughout the year. The Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. The Trustees recogni5e that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. OBJECTIVES AND AcfiviTIES Charitable obSect5 The Trust is established to advance education in the field of economics for the benefit of the public, with particular regard to the following principles.. that economic behaviour is primarily social rather than individual,. that economic behaviour is influenced by aesthetic and ethical values as well as economic values,. and that the pursuit of self-interest in economic behaviour can impact adversely on both society and the environment. The Trustee5 have given due consideration to Charity Commission published guidance on the operation of the public benefit requirement. Aims and intended impact The Trust aims to educate the public in developing practices and policies that recognise and redress the adverse effects that arise from a lack of awareness of the above principles. Objectives, strategies to achieve the objectives and principal activities for the year The Trust scheduled a a conference 'Economic policies for a post neoliberal world, to be held at Downing College. Cambridge on 17th March 2020. This conference was postponed due to the COVID19 Pandemic. The Trust plans to hold it's next conference 'Policies to tackle the cost of living crisis, on 8th March 2023. The principal activity of the Trust's trading subsidiary companies continued to be the provision of economic consultancy and forecasting services.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 FINANCIAL REVIEW AND RESULTS FOR THE YEAR Results for the year The Trust's trading subsidiary companies results show a profit after taxation of £107,660 12021 £92,887). The Trust had net expenditure of £69,20012021- £13,479). Principal funding sources The Trust's principal funding source is income from conferences. The Trust received £nil12021- £nill of income from the conferences. The trading subsidiary made a donation of £24,58S12021 - £nill to the Trust during the year. INVESTMENT POLICY AND PERFORMANCE The Trustees aim to maximise the total investment return as a means of earning revenue on funds until they are required to meet the Trust's objectives. The Trustees have invested cash reserves in bank dep051t accounts. RESERVES POLICY The Trust holds reserves in order to fund anticipated expenditure for the following year. The Trust has uncommitted reserves available for current activities amountinB to £82.179 1202 1 - £69,9941. This reserves policy doe5 not take into account the reserves held in the trading subsidiary. The Trustees consider that this level of reserves is appropriate and adequate for the Trust. PLANS FOR FUTURE YEARS Looking forward, the Trustees will be 5eekir>g opportunities to achieve the stated objective to advance education in the field of economics for the benefit of the public. The Trust will continue to support occasional seminars and consider sponsorship requests as thev arise.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 AUDITORS The Trustees will consider the reappointment of the auditors, Ensor5 Accountants LLP, at the next Trustees meeting. STATEMENT OF TRUSTEES, RESPONSIBILITIES Law applicable to Charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Trust's activities and financial position at the end of the year. Under that IBW the Trustee5 have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Prattice (United Kingdom Accounting Standards and applicable lawl. In preparing accounts giving a trus and fair view, the Trustees should follow best practice and= select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP.. make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standard5 and statements of recommended practice have been followed subject to any departures disclosed and explained in the accounts,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees have overall responsiblity for ensuring that the charity and its trading subsidiary are keeping proper proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the Trustees on and signed on their behalf by.. Professor T S Barker Trustee
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS Opinion We have audited the financial statements of the Cambridge Trust for New Thinking in Economics (the 'ch3rity'l and its group for the year ended 30 June 2022 set out on Pages 9 to 28. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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.. give a true and fair view of the state of the charity's affairs as at 30 June 2022 and of its incoming resources and application of resources for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 charity 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 We have nothing to report in respect of the following matters in relation to which the ISA5 IUKI require u5 to report to you where.. the trustees, Use of the going concern basi5 of accounting in the preparation of the financial statements is not appropriate,. or the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are aLJthorised for issue.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS INDEPENDENT AUDITOR5, REPORT TO THE TRUSTEES OF THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. 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. In connection wilh 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 Othernlse appears to be materially mi55tated. If we identify such material inconslStencie5 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. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation to which the Charaties (Accounts and Report51 Regulations 2008 require5 US to report to you if, in our opinion.. the information given in the trsutee's report is inconsistent in any material respect with the financial statements-, or sufficent accounting records have not been kept,. or the financial statemenst are not in agreement with the accounting records,. or we have not received all the information and explanations we require for Ouf audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement set out on page 4. the trustees 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 statement5 that are free from material misstatement, whether due to fraud orerror.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS Auditor's responsibilities for the audit of financial statements We have been appointed as auditor under section 152 of the Charities Act 2011 and report in accordance with regulation5 made under section 154 of that Act. 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 auditols report that includes our opinion. Reasonable as5ur3nce is a high level of assurance, but is not 3 guarantee that an audit conducted in accordance with ISAS IUKI 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-compli3nce 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 procedLtres are capable of detecting irregularities, including fraud, is detailed below. In identifyin8 and assessing risks of material misstatement in respect of irregularities. including fraud, the audit engagement team= obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework,. inquired of management, and those charged with governance. about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud,. discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements MBY be susceptible to fraud. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. A further description of our responsibilities for the audit of the financial Statements is located on the Financial Reporting Council's website at: http.'l/www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorfs report.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charaties (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Ensors Accountants LLP is eligible for appointment as auditor of the charity by virtue of its elibility for appointment as auditor of a company under section 1212 of the Companie5 Act 2006. Ensors Accountants LLP Chartered Accountants Statutory Auditor 1st Floor, Victory House Vision Park Chivers Way Histon Cambridge CB24 9ZR Date..
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS CONSOLIDATED STATEMENTOF FINANCALACTIVITIES FOR THE YEAR ENDED 30JUNE 2022 Unrestrirted Restricted Funds Funds 2022 2022 Total Funds 2022 Unrestrlrted Restricted Funds Funds 2021 2021 Total Funds 2021 Noie INCOME Charitable activitie5 Other trading activities 81.385 81,385 4,036,111 4,036,111 3,674,128 3,674,128 Total income 81.385 4.036,111 4,117,496 3.674.128 3,674,128 EXPENDITURE Cost5 of generating fund5 62,887 62,887 6,313 3.928,451 3,934,764 6,979 6,979 6,500 3.581,241 3,587.741 Other costs Totsl expenditure 69,200 3,928,451 3,997,651 13,479 3,581,241 3,594.720 NET INCOME I IEXPENDITUREI 12,185 107,660 119.84S 113,4791 92,887 79.408 Other gainslllossesl 19 152,5171 152,5171 169,2961 169,2961 NET MOVEMENT IN FUNDS 12,185 55,143 67.328 113,4791 23,591 10.112 RECONCILIATION OF FUNDS Fund balances at l July 69,994 850,795 920,789 83,473 827,204 910,677 FUND BALANCES AT 30 JUNE 82,179 905,938 988,117 69,994 850,795 920,789 All re5uIt5 relate to continuing operation5.
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS TRUST AND CONSOLIDATED BALANCE SHEETS FOR THE YEAR EAIDED 30 JUNE 2022 Group 2022 Group 2021 Trust 2022 Trust 2021 Note rixed as5etg Intangible assets Tangible assets Investment in trading subsidiary 406 81,248 io li 99.073 108 99,073 81,654 108 Curfent asset5 Debtors Cash at bank and in hand 12 2.083.340 2,586.490 674.069 881,395 25,365 90,127 72,936 2.757,409 3,467,885 115,492 72,936 Creditors.. 3mounts falling due within one year 13 1971.2481 11,762,8791 133,3131 13.0501 Net current asset5 1.786,161 1,705,006 82.179 69,886 Total assets les5 tuttent liabilities 1,885,234 1,786,660 82.179 69,994 Creditors.. amounts falling due after mole than one year 14 134.3361 143,7341 111,8731 Minority it)tere5ts 1862,7811 1810,2641 Total net asset5 988.117 920,789 82,179 69.994 Funds Restricted funds General unrestricted funds 19 20 905,938 82,179 850,795 69,994 82,179 69,994 Total funds 988,117 920,789 82.179 69,994 The notes at pages 12 to 28 forrn part of these fin3nci315tatements. Approved by the Trustees on and signed on their behalf by.. Professor T S 8èrker io-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 30JUNE 2022 Group 2022 Group 2021 Note Cash flows from operating activities: Net cash provided by / (used inl operating activities 21 1160,7041 179,798 Cash flows from investing activities: Purchase of property. plant and equipment 146,4311 121,2661 Net cash used in investing activities 146,4311 121,2661 Cash flows from financing activities: Dividend paid to minority interests (Profit) / loss on the sale of fixed assets Hire purchase agreement payment5 146,8291 11911 15461 Net cash used in investing activities 11911 147,3751 Change in cash and cash equivalents in the year 1207,3261 111,157 Cash and cash equivalent5 at the beginning of the year 881,395 770,238 Cash and cash equivalents at the end of the year 674,069 881,395 li
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Accounting policies 1.1 Basis of preparation and assessment of going concern The financial statements have been prepèred under the Charities Act 2011 on the historical cost convention, in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective I january 20151- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Trust Deed dated 28 September 2005. The trust constitutes a public benefit entity a5 defined by FRS 102. The financial statements are prepared in sterling, which is the functional turrency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The trustees believe that the group is well placed to manage its risks successfully. The trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thu5 they continue to adopt the going concern basis of accounting in preparing these financial statements. 1.2 Group financial statements The financial statements consolidate those of the Trust and its 51.220A owned trading subsidiary company, Cambridge Econometrics Limited and its 100% owned trading Subsidiary companies, Cambridge Econometrics Hungary Kft, Cambridge Econometric5 Belgium BV8A and Cambridge Econometrics Inc, on a line-by-line basis as set out in FRS 102. Cambridge Econometrics Limited is private company limited by shares incorporated in England and Wales. The registered office is 19A Covent Garden, Cambridge, CBI 2HT. 1.3 Income Trading turnover represents the fair value of consideration received or receivable, exclusive of Value Added Tax, in respect of the following three sources= Project revenue is recorded using a percentage of Completion method, which results in deferred revenue on the balance sheet when service5 are invoiced in advance of the revenue being earned and accrued revenue on the balance sheet when revenue is earned prior to invoicing the customer. The directors of the trading subsidiaries estimate the percentage of completion at the year end for each project using the best available evidence. Profit is recognised on the same basi5 as revenue. 12-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30JUNE 2022 Accounting policies Icontinuedl Subscription revenue is recognised over the period that the subscription cover5, which results in deferred revenue on the balance sheet, because subscriptions are invoiced in advance of the revenue being earned. Profst is recogni5ed on the same ba515 85 revenue. Other revenue, such as consultancy and training, and resulting profit. is recognised when the service 15 performed. Investment income is accounted for on a receivable basis. Donations recelvable for the general purposes of the Trust are credited to unrestricted funds, on an accruals basis. Conference income is recognised when the conference takes place. 1.4 Expenditure Expenditure is accounted for on an accrua15 basis and is included in the Statement of Financial Activities inclusive of any irrecoverable Value Added Tax. Governance costs include those costs incurred in the governance of the Trust and the cost5 of complying with constitutional and statutory requirements. 1.5 Foreign currencies Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilitie5 that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the Statement of Financial Activitie5. 1.6 Estimation technique5 In preparing the financial statements, management are required to make estimates and assumptions that affect the reported amounts of assets and liabilities èt the balance sheet date and the reported amount of revenues and expenses during the reporting period. The principal estimation technique used by the troding subsidiary companies is in determining the percentage completion of a project. 1.7 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Software 330A Straight line 13-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 30JUNE 2022 Accounting policies l¢ontinuedl 1.7 Tangible fixed assets and depreciation All fixed assets are initially recorded at cost. Depreciation is calculated $0 as to write off the cost of an asset, less Its estimated residual value, over the useful economic life of that asset as follows.. Leasehold property improvements Computer equipment, software and website Fixtures, fittings and equipment 15QA per annum straight line 20% per annum straight line IOOA per annum straight line 1.8 Investments Unlisted investments are stated at cost. The Trust's investment in its trading subsidiary company consists of 9,030 ordinary A shares of £1 each. These share5 were acquired on 15 October 2005 from a capitalisation of reserves and are consequently included at a cost of £nil. 1.9 Financial instruments The Trust ha5 elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recogni5ed in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets 3n(S liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the a55et and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balance5, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method uNle55 the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial asset5 classified as receivable within one year are not amortised. Classification of financial liabilities Financial liabilitie5 and eqLJity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the trust after deducting all of its liabilities. 14-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 30 JUNE 2022 Accounting pollcies Icontinuedl Basic financial liabilities Basic financial liabi5ities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently cariied at amort15ed cost. using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 1.10 Equity in5trument5 Equity instruments issued by the subsidiary companies are recorded at the proceeds received, net of direct issue costs. Dividend5 payable on equity instruments are recognised as liabilitie5 once they are no longer at the discretion of the company. 1.11 Derivatives Derivatives are initially recognised at f3ir value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative 15 designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activitie5 depends on the nature of the hedge relationship. A derivative with a posltive fair value is recognised as a financial asset, whereas a derivative with negative fair value is recognised a5 a financial liability. 1.12 Taxation The tax expense represents the SL¢m of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable income for the year. Taxable income differs from net income ès reported in the Statement of Financial Activities because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The1iability for current tax is cal¢ul3ted using tax rates that have been enacted or substantively enacted by the reporting end date. 15-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 30JUNE 2022 Accounting policies l¢ontinuedl Deferred tax Deferred taxatlDn in the trading subsidiary, Cambridge Econometrics Ltd. 15 recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions-. Provision is made for tax on gains arising from the revaluation land similar fair value adjustments) of fixed a5set5, and gains on disposal of fixed a55et5 that have been rolled over into replacement assets, only to the extent that. at the balance sheet dète, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance Sheet date, it is more likely than not that the taxable gain will be rolled over Into replacement assets and charged to tax only where the replacement assets are sold. Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable income from which the futUTe reversal of the underlying timing difference5 can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the years in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. 1.13 Employee benefits The costs of short-term employee benefits of the subsidiaries, employees are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recogni5ed in the period in which the employee's service5 are received. Termination benefits are recognised immediately as an expense when the companies are demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.14 Leases Leases are classified as finance leases. in the trading subsidiary, Cambridge Econometrics Limited. company's accounts, whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified a5 operating lease5. 16-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 Accounting policies Icontinuedl Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception ènd the present value of the minimum lease payments. The related liability 15 included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liabilitv. Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more 5VStematic basis is more representative of the time pattern in which economic benefits from ihe lease asset are consumed. 1.15 Pensions The trading subsidiary, Cambridge Econometrics Limited, operates a defined contribution pension scheme for executive directors and makes contributions to individual employees, personal pension plans. The assets of these schemes are held separately from those of the company in independentlv administered funds. The annual contributions payable are charged to the statement of financial activities. There is no liability other than for payment of these contributions. 1.16 Fund accounting Restricted funds represent the proportion of the trading subsidiarie5 funds attributable to the Trust. General unrestricted funds represent funds that are expendable at the discretion of the Trustees in the furtherante of the objects of the Trust. Such funds may be held in ordei to finance both working capital and capital investment. 17-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTE5 TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 30 JUNE 2022 Income from tradin8 subsidiaries activities The Trust owns 51.22% of the issued share capital of Cambridge Econometrics Limited (company number 019168251. Its trading results for the year, as extracted from its audited accounts are summarised below. The SLJbsidiary entities provide economic consultancy and forecasting services. The Trust's own results for the year are disclosed to distinguish them from the group results in the Consolidated Statement of Financial Activities. Sub5idaries Subsidiaries 2022 2021 Trust 2022 Trust 2021 Turnover Cost of sales 4,034.679 3,657.442 12,859,318) 12,784,006) 81,385 156,8001 Gross profit Administrative expenses Other Expenses Other income Gift Aid donation 1,175,361 11,060,026) 18331 1,432 873,436 1729,6591 16251 16,686 24,585 Gross income Charitable activities Governance costs 115,934 159,838 24,585 16,0871 16,3131 16,9791 16,5001 115,934 18,2741 159,838 166,9511 12,185 113,4791 Tax on profit on ordinary activities Retained incomellloss) 107,660 92,887 12,185 113,4791 Income from charitable activities 2022 2021 Conference income Donations 81,385 81,385 18-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 Analysis of total expenditure Direct Costs Staff Costs Deprec- iation Other Costs Total Charitable activities Governance costs 56,800 108 5,979 6,313 62,887 6,313 Total for Trust 56.800 108 12,292 69,200 Trading costs of subsidiaries Trading taxation 213,944 2,645.194 29,238 1,031.801 8,274 3,920.177 8,274 Total for group 270,744 2,645.194 29,346 1,052,367 3,997,651 Auditor's remuneration 2022 2021 Auditor'5 remuneration- group accounts Auditor's remuneration- subsidiaries 2,000 14,400 2,000 12,000 16,400 14,000 Net income /(expenditurel for the year 2022 2021 This is stated after charging.. Operating leases Depreciation 135,468 29,346 75,628 34,343 164,814 109,971 19-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 Particulars of employees 2022 Number 2021 Number Cost of sales Administration 50 46 56 53 The aggregate payroll costs of the above were.. 2022 2021 Wages and salaries Social security costs Pension costs 2,395,498 472,463 319,212 2.092,215 250,195 244,041 3,187,173 2,586,451 The Trustees did not receive any remuneration or other benefits during the year 12021 - £nill for their role as Trustees. Professor T S Barker, Mr R G Lewney and Dr A Anger-Kraavi were employees of the trading subsidiary during the year.. the Trust has no employees of its own. During the year none of the Trustees were reimbursed for expenses12021- £nill. The number of staff, considered to be Key Management, whose emoluments (salary plus taxable benefits excluding pension contributions) exceeded £60,000 within the group was as follows.. Emoluments exceeding 2022 Number 2021 Number É60,000- £69,999 £70,000- £79,999 £80,000- £89,999 £90,000- £99,999 Pension contributions on behalf of the above staff amounted to £67,46412021- £66,464). The number of the above senior staff to whom retirement benefits are accruing under defined contribution schemes wès 512021- 51. 20-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 Taxation As a registered charity, the Trust is exempt from taxation of income and gains falling within Section 505 of the Income and Corporation Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992. The taxation charge is wholly attributable to the trading subsidiaries. 2022 2021 Analysis of charge in the year Corporation tax 8,274 66.951 8,274 66,951 Intangible fixed assets Group Trust Software Total Software Total Cost At l July 2021 Addition5 Disposals 2,150 2,150 At 30 June 2022 2,150 2,150 Depreciation At l July 2021 Charge Disposals 1,744 406 1,744 406 At 30 June 2022 2,150 2,150 Net book value At 30 June 2022 At 30 June 2021 406 406 21-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 io Tangible fixed assets Group Plant and machinery Trust Plant and machinery Leasehold property improvements Total Total Cost At ljuly 2021 Additions Disposals 59.879 17,057 346,724 30,331 19571 406,603 47,388 19571 728 728 At 30 June 2022 76,936 376.098 453,034 728 728 Depreciation At l July 2021 Charge Disposals 42,602 7,585 282,753 21,355 13341 325,355 28,940 13341 620 108 620 108 At 30June 2022 50,187 303.774 353,961 728 728 Net book value At 30June 2022 26,749 72,324 99,073 At 30June 2021 17,277 63,971 81,248 108 108 li Investments The results of Cambridge Econometrics Limited and its subsidiaries, are summarised in note 2. At 30 June 2022 the trading subsidiary's assets, liabilities and reserves were as follow5.. 2022 2021 Assets 2,740,990 3,476,495 1972,2711 11,815,436) Capital and reserves 1,768,719 1,661,059 22-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021 12 Debtors Group 2022 Group 2021 Trust 2022 Trust 2021 Trade debtors Other debtors Corporation tax recoverable Prepayments Accrued income Deferred tax asset 1,108,200 45,095 649,552 34.622 39,145 128,102 1,735,069 25.365 89,700 820,448 19,897 2,083.340 2,586,490 25.365 13 Credltors: amounts falling due within one year Group 2022 Group 2021 Trust 2022 Trust 2021 Bank loans and overdraft Trade creditors Other tax and Social security Accruals Deferred income Other creditors 111,619 124,223 546,941 145,864 42,601 111,194 168.499 1,090.037 362,727 30,422 26,830 6,483 3,050 971,248 1,762,879 33.313 3,050 14 Creditors: amounts falling due after more than one year Group 2022 Group 2021 Trust 2022 Trust 2021 Bank loans and overdrafts 34,336 43,734 34,336 43,734 The bank loan is secured by a fixed and floating charge over the assets of the UK company. -23-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 15 Pensions The trading subsidiaries contribute to individual employees, personal pension plans. The assets of the schemes are held separately from those of the companies in independently administered fund5. The trading subsidiaries have no potent131 liability other than for the payment of these commitments. At the balance sheet date, £15,96712021- £13,353) of pension contributions were outstandinE. 2022 2021 Contributions payable by the trading subsidiaries for the year 319,212 244,041 319,212 244,041 16 Commitments under operating leases At 30 June 2022 the group had aggregate annual commitments under non-cancellable opefating leases a5 follow5.. Group 2022 Group 2021 Trust 2022 Trust 2021 Within one year Between two and five years In over five years 89,867 218,750 75,628 257,129 308,617 332,757 17 Related party transactions During the year the group paid rent of £65,650 12021 £65,650) to Cambridge Econometrics Investment Fund of which Professor T S Barker, Mr R G Lewney, Mr B C Gardiner, Mr A J Barker, Miss R A Beaven, Mr H B Pollitt. Mr D M F Taylor and Mr P T Summerton are trustees and beneficiaries. During the year Dr A Anger-Kraavi provided consultancy services to the group for £6,313 12021 £6.5001. At the year end the trust owed Dr A Anger-Kraavi £nil12021- £nill. -24-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
| 18 Analysis of total funds Analysis by type of asset and liability Tangible fixed assets Net current assets Creditors falling due after more than one year Minority interests Analysis by type of asset and liability Intangible fixed assets Tangible fixed assets Net current assets Creditors falling due after more than one year Provision for liabilities Minority interests 19 Movement in restricted funds Balance at 1 July 2021 Income £ £ Non-charitable trading funds 850,795 4,036,111 |
Unrestricted Funds 2022 £ 82,179 Restricted Total Funds Funds 2022 2022 £ £ 99,073 99,073 1,703,982 1,786,161 (34,336) (34,336) (862,781) (862,781) |
|---|---|
| 82,179 Unrestricted Funds 2021 £ 108 69,886 905,938 988,117 Restricted Total Funds Funds 2021 2021 £ £ 406 406 81,140 81,248 1,635,120 1,705,006 (43,734) (43,734) (11,873) (11,873) (810,264) (810,264) |
|
69,994 Expenditure £ (3,928,451) 850,795 920,789 Balance at Other 30June movements 2022 £ £ (52,517) 905,938 |
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 19 Movement in restricted funds {cont'dl Other movements Minority interests Transfers Total Profit share of minority interests Dividend paid to minority interests 152,5171 152,5171 152,5171 152,5171 Balance at l July 2020 Balance at 30 June Other Expenditure movements Income 2021 Non-charitèble trading funds 827.204 3,674,128 13,581,241) 169,2961 850,795 Other rnovements Minority interest5 Transfers Total Profit share of minority interests Dividend paid to minority interests 122,4671 146,8291 122.4671 146,8291 169,2961 169.2961 -26-
THE CAMBRIDGE TRUST FOR NEW THINKING IN ECONOMICS NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 30 JUNE 2022 20 Movements in unrestrirted funds Balance at l July 2021 Balance at 30 June 2022 Other Expenditure movements Intome General unrestricted funds 69.994 81,385 169,2001 82,179 Balance at l July 2020 Balance at 30June 2021 Other Expenditure movements Income General unrestricted funds 83.473 113,4791 69,994 21 Reconciliation of net income l {expenditurel to net cash flow from operating artivities Group 2022 Group 2021 Net movement ir) funds 67,328 10.112 Adjustment for.. Depreciation charges IProfitl 1105$ on the sale of fixed asset5 Profit attributable to minority interests Dividend paid to minority interests Tradin8 taxation Copier maintenance charges 29,012 191 52,517 34,354 22,467 46,829 66,951 546 8,274 Ilncreasel / decrease in debtors Increase I Idecreasel in creditors Tax paid 503, 150 1801.0291 120,1471 38.156 15,461 155,0781 Net cash used in operating activities 1160,7041 179,798 -27-