Registered number: 00555631 Charity number: 207480
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 7 |
| Independent auditor's report on the financial statements | 8 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 - 14 |
| Notes to the financial statements | 15 - 28 |
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
| Trustees | J Connell |
|---|---|
| R C C Temple | |
| L J N Morrocco | |
| S E Wood (appointed 1 April 2022) | |
| A M Planidin (appointed 1 April 2022) | |
| N Jobst | |
| A Courtenay-Mayers | |
| J Thorold, Co-Chairman | |
| B Beatley (deceased 14 July 2022) | |
| D Bethge | |
| S Bethge (appointed 1 April 2022) | |
| A W H Gibbs, Joint Treasurer | |
| C R Glanville, Joint Treasurer | |
| Z D Glanville (deceased 10 September 2021) | |
| M J K Planidin | |
| Company registered number 00555631 Charity registered number 207480 Registered office 14th Floor 33 Cavendish Square London W1G 0PW Company secretary R C C Temple Independent auditor Simmons Gainsford LLP Chartered Accountants 14th Floor 33 Cavendish Square London W1G 0PW Bankers National Wesminster Bank Plc 46 Notting Hill Gate London W11 3HZ |
Page 1
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of the company The Gurdjieff Society (the charitable company) for the ended 31 March 2022.
The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective 1 January 2015).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The Society is constituted as a charitable company limited by guarantee, incorporated on 6th October 1955 and registered as a charity on 28 December 1967. The charitable company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Strategies for achieving objectives
The Society aims to maintain and develop the practical approach to research initiated by G.I. Gurdjieff and his closest pupils and to invite participation in this work from those members of the public who express a serious interest in pursuing it.
c. Activities undertaken to achieve objectives
The principal aim of the Society is research into the advancement of mankind and the development of thought, through lectures, meetings and other activities - specifically in relation to the teachings of G.I. Gurdjieff.
Under the Articles of Association, the Board of Directors is known as the Council of the Society. The members are also Trustees for the purposes of the Charities Act 1993.
When reviewing the Society's aims and objectives in planning future activities, the Council have considered the Charity Commission's general guidance on public benefit.
Page 2
THE GURDJIEFF SOCIETY (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
d. Main activities undertaken to further the Company's purposes for the public benefit
Since 1955, the activities of the Society have been conducted mainly at its two properties in London, and also at its property in Berkshire. The activities include meetings in small groups to exchange views and study specific material, the practice of dances known as the “movements”, musical activities and various crafts, and work on translations and literature associated with the ideas of G.I.Gurdjieff.
At our Berkshire facility we aim to provide an education in the crafts of glass working, mosaics, painting, sewing, upholstery, carpentry, horticulture, building restoration methods, the study of sound and the making of simple musical instruments, with the emphasis on working with a sustained effort of attention, along the lines of the ideas of G.I. Gurdjieff.
The Society maintains a website, www.gurdjieff.com, which provides a contact point for enquiries from members of the public. Although some responses are limited to a passing curiosity, those who express a genuine interest are given advice on any questions raised and on suitable preparatory reading about G.I.Gurdjieff's teachings. When an enquirer demonstrates a sincere interest in engaging in the Society's activities, then the Council will offer an opportunity to meet and discuss matters in person. Although mainly based in London, the Society also conducts activities in several regional locations within the United Kingdom, and in the Republic of Ireland. Consequently, potential participants are not generally precluded from joining because of their location. Enquiries from those who live outside the UK are referred to the appropriate Gurdjieff foundation abroad. The Society maintains contacts with numerous such foundations overseas.
Members and participants of the Society also hold public meetings at various locations throughout the United Kingdom, where an introduction to the ideas of G.I.Gurdjieff is given and public interest is invited.
The Society presents regular cultural events (e.g. lectures, musical performances, storytelling and poetry), open to the public for a nominal entrance fee, at one of its London properties. A website, www.clarendonevents.org.uk, is maintained to advertise these events.
The Society also maintains the website www.in-between.org.uk, which presents material on a wide range of cultural topics, including subjects directly related to the teaching of G.I.Gurdjieff. Visitors to the website are invited to contribute material for review and possible publication on the site.
The Society does not discriminate against potential participants on grounds of age, race, sex or religion.
The Council has updated the Society's policy on Safeguarding to meet requirements of current Charity Commission guidance. A senior trustee has been appointed to take charge of this matter and a team of Society members stands ready to respond to any Safeguarding issues which might arise. Appropriate Safeguarding policy documents have been created, announced and made available to all participants in the Society's activities. The Council is fully committed to keeping the subject of Safeguarding under regular review and to maintaining future compliance with any further developments in Charity Commission guidance.
Those people who are actively involved in the aims of the society are generally asked to contribute towards the running costs of the Society, but it has always been, and remains, the Council's firm policy that nobody shall be excluded from activities because of lack of financial means. Existing contributors who experience temporary financial difficulties are invited to resume contributing when they are able to do so.
It has been established from the outset that all members of the Council give of their time freely and no remuneration was paid to any member of the Council in the year. Expenses paid to Council members (e.g. for travel abroad in furtherance of the Society's aims) are properly recorded in the accounts.
Any private benefit which may accrue to members or participants in the Society's activities is purely incidental.
Page 3
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
The Council members have paid due regard to the guidance issued by the Charity Commission in deciding what activities the Society should undertake.
Achievements and performance
a. Key performance indicators
The statement of financial activities shows a net reduction of funds of £14,925 (2021: decrease of £49,213) before other recognised gains of £nil (2021: gains of £180,000). Reserves stand in total at £9,021,172 (2021: £9,036,097).
b. Review of activities
Due to continued restrictions imposed by COVID-19, the Society was again obliged to suspend most activities in pursuance of its objectives at its three properties. In these exceptional circumstances, financial contributions from participants were lower than expected and this will necessitate a modest withdrawal from reserves in order to fund the Society’s running costs, to maintain its properties in good condition, and to meet the costs of ongoing improvement of the premises in Berkshire.
The Council continued to foster relationships with Gurdjieff foundations in other countries.
The Society’s customary presentations at the Clarendon Events venue were again suspended throughout the 2021/2022 year due to COVID-19 restrictions. Presentations are due to resume in June 2022.
Weekly readings from G.I.Gurdjieff's work "All and Everything" at the Clarendon Events venue were also suspended throughout the 2021/2022 year due to COVID-19 restrictions. The readings are expected to resume in the near future.
A range of new material was added to the website www.in-between.org
The Society continued to invite and receive enquiries from the public via its main website, www.gurdjieff.com, and the appropriate responses made, to provide further information about Gurdjieff's teaching and the Society's activities.
c. Investment policy and performance
The charitable company holds an investment property from which it derives rental income and which is managed by external agents to achieve market returns.
The freehold property is valued at estimated market value. The property has been revalued in the prior year and the trustees believe the value is unchanged.
Page 4
(A company limited by guarantee)
THE GURDJIEFF SOCIETY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Financial review
a. Going concern
As a result of the pandemic the trustees have been in regular touch by email, and some meetings have continued using online communication platforms. The trustees themselves, as is permitted by law, have since the initial lockdown ended continued to meet on a regular basis, to consider how best to continue with the work of the Charity, and to review the Society’s business generally, in order to be ready to resume the Society’s educational activities as soon as this is both permitted in law and is practicable in fact.
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
b. Reserves policy
The members of the Council have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ("the free reserves") held by the charitable company should be no less than two years anticipated expenditure, given the nature of the income of the society.
At this level the Council feel that they would be able to continue the current activities of the society in the event of a significant drop in funding. The reserves have maintained the required level this year.
c. Material investments policy
The charitable company continues to hold an investment property.
d. Principal funding
The principal source of income for the society is donations and legacies received from its members. The funds are used to provide facilities for group meetings and discussions and to promote similar societies around the world.
Structure, governance and management
a. Constitution
The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 22 September 1955.
The company is constituted under a Memorandum of Association dated 22 September 1955 and is a registered charity number 207480.
The company was incorporated on 6 October 1955 and commenced trading on that date. The principal object of the company is to maintain and develop research into the advancement of mankind and the development of thought, through lectures, meetings and other activities. The research relates to the teachings of G.I. Gurdjieff.
There have been no changes in the objectives since the last annual report.
Page 5
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
b. Methods of appointment or election of Trustees
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. New trustees are elected by the Council from persons contributing to the aims of the society. New trustees are selected on the basis of their contribution to the activities of the society and the benefit they can provide to the governance of the society.
c. Policies adopted for the induction and training of Trustees
New trustees are made aware of their responsibilities as trustees by reference to information provided by the Charity Commission.
d. Pay policy for senior staff
There are no senior staff members.
e. Organisational structure and decision-making
All decisions are made by the council or by delegated trustees or members of the society for specific areas of expertise.
f. Financial risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. They believe that maintaining free reserves at the levels stated will provide sufficient resources.
g. Trustees' indemnities
The Society provides and maintains indemnity insurance for the committee members as allowed under the charitable company's Articles of Association.
None of the council members had any beneficial interest in the charitable company. All of the council members are members of the charitable company and guarantee to contribute £1 in the event of a winding up.
Funds held as custodian
There are no funds held as custodian.
Future developments
The Gurdjieff Society continues to extend its activities in furtherance of its objectives including the development of Bray. It is also seeking to strengthen its relationship with the like-minded organisations in North and South America, Europe and, increasingly, many other parts of the world.
Page 6
THE GURDJIEFF SOCIETY (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
This report was approved by the Trustees, on and signed on their behalf by: 19/12/2022 | 14:09 GMT
A W H Gibbs
(Trustee)
Page 7
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GURDJIEFF SOCIETY
Opinion
We have audited the financial statements of The Gurdjieff Society (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company'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.
Page 8
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GURDJIEFF SOCIETY (CONTINUED)
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 contained within the Annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company 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 Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
Page 9
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GURDJIEFF SOCIETY (CONTINUED)
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, 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 charitable 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 charitable company or to cease operations, or have no realistic alternative but to do so.
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.
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
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the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities; the nature of the company, including its management structure and control systems;
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completeness of income;
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compliance with the Charities Act 2011 requirements and disclosures; and
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effect of Covid on the ongoing performance of the charity.
We also considered laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006 and the SORP.
Based on this understanding we identified the following matters as being of significance to the entity:
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laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law and Charities Act 2011;
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the timing of the recognition of rental and other income;
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compliance with legislation relating to health and safety and fire risk assessments;
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management bias in selecting accounting policies and determining estimates;
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inappropriate journal entries; and
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the requirement to impair investment properties and the amount of any such impairments.
Page 10
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GURDJIEFF SOCIETY (CONTINUED)
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
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enquiries of managing trustees and those charged with governance as to whether the entity complies with such laws and regulations and discussion with the same regarding any known or suspected instances of non-compliance;
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enquires with the same concerning any actual or potential litigation or claims;
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proof in total of rental income with reference to the lease agreements;
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analytical review of other income and expenditure;
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assessment of matters reported to management and the result of the subsequent investigation; and
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obtaining an understanding of the relevant controls and testing their operation during the period.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Use of our report
This report is made solely to the charitable 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 charitable 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
David Pumfrey FCA (Senior statutory auditor)
for and on behalf of Simmons Gainsford LLP
Chartered Accountants Statutory Auditors 14th Floor 33 Cavendish Square London W1G 0PW
Date: 19/12/2022 | 15:19 GMT
Page 11
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Raising funds 5 Charitable activities Total expenditure Net movement in funds before other recognised gains Other recognised gains: Gains on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 101,733 76,756 178,489 13,870 179,544 193,414 (14,925) - (14,925) 9,036,097 (14,925) 9,021,172 |
Total funds 2022 £ 101,733 76,756 178,489 13,870 179,544 193,414 (14,925) - (14,925) 9,036,097 (14,925) 9,021,172 |
Total funds 2021 £ 80,582 73,858 154,440 12,861 190,792 203,653 (49,213) 180,000 130,787 8,905,310 130,787 9,036,097 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15 to 28 form part of these financial statements.
Page 12
THE GURDJIEFF SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 00555631
BALANCE SHEET AS AT 31 MARCH 2022
| Note Fixed assets Tangible assets 10 Heritage assets 12 Investment property 11 Current assets Debtors 13 Investments 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total net assets Charity funds Unrestricted funds Designated funds 16 General funds 16 Total unrestricted funds 16 Total funds |
16,356 312,910 93,275 422,541 (10,937) 8,608,867 412,305 |
2022 £ 5,193,368 16,200 3,400,000 8,609,568 411,604 9,021,172 9,021,172 9,021,172 |
15,044 295,558 126,241 436,843 (11,009) 3,375,950 5,660,147 |
2021 £ 5,194,063 16,200 3,400,000 |
|---|---|---|---|---|
| 8,610,263 425,834 |
||||
| 9,036,097 | ||||
| 9,036,097 | ||||
| 9,036,097 |
Page 13
THE GURDJIEFF SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 00555631
BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on _______ 19/12/2022 | 14:09 GMT and signed on their behalf by:
A W H Gibbs
(Trustee)
The notes on pages 15 to 28 form part of these financial statements.
Page 14
THE GURDJIEFF SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. General information
The Gurdjieff Society is a Company limited by guarantee, and it is incorporated in England and Wales. The address of the registered office is 14th Floor, 33 Cavendish Square, London, W1G 0PW.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Gurdjieff Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Company status
The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Page 15
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading Gains/(losses) on investments’ in the Statement of financial activities incorporating income and expenditure account.
Investment properties are included on the balance sheet at their open market value. Although this accounting policy is in accordance with the applicable accounting standard, Charities SORP FRS102 it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the council members, compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
Page 16
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.7 Tangible fixed assets and depreciation
All assets costing more than £1,000 are capitalised
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.
The Society does not provide for depreciation on freehold buildings. It is considered however, that non-compliance with the standard does not have a material effect on the financial statements since it is the Society's policy to maintain freehold buildings to a standard which will prolong their useful lives indefinitely and certainly for greater than 50 years and to ensure that their value will not diminish over time. Maintenance costs are charges to the income and expenditure account in the period incurred. In the opinion of the Council, therefore, any charge for depreciation would be immaterial.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Fixtures and fittings - 15% straight line
2.8 Heritage assets
Where heritage assets have been purchased, they are initially recognised at cost. After recognition, under the cost model, heritage assets are measured at cost less any accumulated impairment losses.
2.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.10 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 17
THE GURDJIEFF SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
2.12 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.13 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Page 18
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Donations 92,239 Legacies 9,494 101,733 4. Investment income Unrestricted funds 2022 £ Investment income - rental income 74,404 Investment income - Interest receivable 2,352 76,756 5. Raising funds Unrestricted funds 2022 £ Expenditure on investment management 13,870 |
Total funds 2022 £ 92,239 9,494 101,733 Total funds 2022 £ 74,404 2,352 76,756 Total funds 2022 £ 13,870 |
Total funds 2021 £ 75,582 5,000 80,582 |
|---|---|---|
| Total funds 2021 £ 70,537 3,321 73,858 |
||
| Total funds 2021 £ 12,861 |
Page 19
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6. Analysis of charitable expenditure
| Study & International costs Property expenses Charity management Governance costs |
Activities undertaken directly 2022 £ 51,302 108,753 4,565 14,924 179,544 |
Total funds 2022 £ 51,302 108,753 4,565 14,924 179,544 |
Total funds 2021 £ 40,757 130,880 4,775 14,380 190,792 |
|---|---|---|---|
Page 20
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6. Analysis of charitable expenditure (continued)
Analysis of direct costs
| Staff costs Depreciation Travel Events and expenditure Light & heat Rates Repairs and maintenance Insurance Bank charges Household expenses General admin fees Printing, postage & stationery Membership fees Book costs Total 2022 Total 2021 |
Study & International costs 2022 £ 37,294 695 939 906 - - - - - - - - 4,510 6,958 51,302 40,757 |
Property expenses 2022 £ - - - - 13,088 27,654 37,979 14,351 - 15,681 - - - - 108,753 130,880 |
Charity management 2022 £ - - - - - - - - - - 720 3,845 - - 4,565 4,775 |
Governance Costs 2022 £ 6,552 - - - - - - - 283 - 8,089 - - - 14,924 14,380 |
Total funds 2022 £ 43,846 695 939 906 13,088 27,654 37,979 14,351 283 15,681 8,809 3,845 4,510 6,958 179,544 190,792 |
Total funds 2021 £ 46,207 695 79 328 13,930 43,820 45,875 16,058 293 11,197 8,363 3,947 - - 190,792 |
|---|---|---|---|---|---|---|
7. Auditor's remuneration
The Auditor's remuneration amounts to an Audit fee of £6,000 (2021 - £6,000), and fees for other services of £1,535 (2021 - £1,535)
Page 21
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
8. Staff costs
| 2022 £ Wages and salaries 37,294 Contribution to defined contribution pension schemes 6,552 43,846 The average number of persons employed by the Company during the year was as follows: 2022 No. Property supervisor 1 |
2021 £ 39,655 6,552 |
|---|---|
| 46,207 | |
| 2021 No. 1 |
No employee received remuneration amounting to more than £60,000 in either year.
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year, Trustees received the reimbursement of expenses amounting to £939 (2021: £79)
Page 22
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
10. Tangible fixed assets
| Cost or valuation At 1 April 2021 At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property £ 5,192,667 5,192,667 - - - 5,192,667 5,192,667 |
Fixtures and fittings £ 186,842 186,842 185,446 695 186,141 701 1,396 |
Total £ 5,379,509 5,379,509 |
|---|---|---|---|
| 185,446 695 186,141 |
|||
| 5,193,368 | |||
| 5,194,063 |
In the Trustees' opinion, the value of the freehold buildings at 31 March 2022 was not less than £15m.
Page 23
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| 11. Investment property Valuation At 1 April 2021 At 31 March 2022 Comprising Cost Annual revaluation surplus/(deficit) 2010 2011 2014 2018 2019 2021 |
Freehold investment property £ 3,400,000 |
|---|---|
| 3,400,000 | |
| £ 24,050 1,975,950 1,250,000 1,250,000 (1,000,000) (280,000) 180,000 3,400,000 |
| 12. | Heritage assets | ||
|---|---|---|---|
| Assets recognised at cost | |||
| Heritage | |||
| asset 1 | Total | ||
| 2022 | 2022 | ||
| £ | £ | ||
| Carrying value at 1 April 2021 | 16,200 | 16,200 |
The heritage asset relates to the former home of G I Gurdjieff, the Society's founder, and is owned equally between the Society (UK), and those in Paris and New York with maintenance cost shared equally.
The asset is held as a holding of 1,100 shares in the Societe Civil Immobiliere, having been acquired by donation in 1979.
Page 24
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Debtors
| Due within one year Other debtors Prepayments and accrued income Tax recoverable |
2022 £ 3,428 5,114 7,814 16,356 |
2021 £ 2,126 4,828 8,090 |
|---|---|---|
| 15,044 |
14. Current asset investments
| Term deposit account 15. Creditors: Amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
2022 £ 312,910 2022 £ - - 4,937 6,000 10,937 |
2021 £ 295,558 |
|---|---|---|
| 2021 £ 297 5 3,262 7,445 |
||
| 11,009 |
Page 25
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Statement of funds
| Statement of funds - current year Balance at 1 April 2021 £ Unrestricted funds Designated funds Freehold Property Fund - Heritage Asset Fund - Investment Property Fund 3,375,950 3,375,950 General funds Free reserves 5,660,147 Total Unrestricted funds 9,036,097 Statement of funds - prior year Balance at 1 April 2020 £ Unrestricted funds Designated funds Designated Funds - all funds 3,195,950 General funds General Funds - all funds 5,709,360 Total Unrestricted funds 8,905,310 |
Income £ - - - - 178,489 178,489 Income £ - 154,440 154,440 |
Expenditure £ - - - - (193,414) (193,414) Expenditure £ - (203,653) (203,653) |
Transfers between funds £ 5,192,667 16,200 24,050 5,232,917 (5,232,917) - Gains/ (Losses) £ 180,000 - 180,000 |
Balance at 31 March 2022 £ 5,192,667 16,200 3,400,000 8,608,867 |
|---|---|---|---|---|
| 412,305 | ||||
| 9,021,172 | ||||
| Balance at 31 March 2021 £ 3,375,950 |
||||
| Unrestricted funds Designated funds Designated Funds - all funds General funds General Funds - all funds Total Unrestricted funds |
||||
| 5,660,147 | ||||
| 9,036,097 |
Page 26
THE GURDJIEFF SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Statement of funds (continued)
Designated funds
Funds have been designated by the Trustees as follows:
Freehold Property Fund - This represents the carrying value of the charity's freehold property.
Heritage Assets Fund - This represents the carrying value of the charity's heritage assets.
Investment Property Fund - This represents the carrying value of the charity's investment properties.
17. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 5,193,368 Investment property 3,400,000 Heritage assets 16,200 Current assets 422,541 Creditors due within one year (10,937) Total 9,021,172 |
Total funds 2022 £ 5,193,368 3,400,000 16,200 422,541 (10,937) 9,021,172 |
|---|---|
Analysis of net assets between funds - prior year
| Unrestricted funds 2021 £ Tangible fixed assets 5,194,063 Investment property 3,400,000 Heritage assets 16,200 Current assets 436,843 Creditors due within one year (11,009) Total 9,036,097 |
Total funds 2021 £ 5,194,063 3,400,000 16,200 436,843 (11,009) 9,036,097 |
|---|---|
Page 27
THE GURDJIEFF SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
18. Pension commitments
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £6,552 (2021: £6,552).
Page 28