REGISTERED COMPANY NUMBER: 00049173 (England and Wales) REGISTERED CHARITY NUMBER: 212728
Report of the Trustees and
Financial Statements for the Year Ended 31 December 2020
for
The College of Psychic Studies
The College of Psychic Studies
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 7 |
| Report of the Independent Auditors | 8 | to | 11 |
| Statement of Financial Activities | 12 | ||
| Balance Sheet | 13 | to | 14 |
| Cash Flow Statement | 15 | ||
| Notes to the Cash Flow Statement | 16 | ||
| Notes to the Financial Statements | 17 | to | 27 |
The College of Psychic Studies
Reference and Administrative Details for the Year Ended 31 December 2020
| TRUSTEES | G C Dart CBE President |
|---|---|
| B C Adams (resigned 24.6.2020) | |
| C M Wilding | |
| D J Brockwell | |
| K Forsythe | |
| I S Kaye | |
| K S Tyler | |
| REGISTERED OFFICE | 16 Queensberry Place |
| South Kensington | |
| London | |
| SW7 2EB | |
| REGISTERED COMPANY | 00049173 (England and Wales) |
| NUMBER | |
| REGISTERED CHARITY | 212728 |
| NUMBER | |
| AUDITORS | Maximus Accountancy Services Limited |
| 47 Kensington Road | |
| Chichester | |
| West Sussex | |
| PO19 7XS | |
| BANKERS | Royal Bank of Scotland |
| 29 Old Brompton Road | |
| London | |
| SW7 3JE |
Page 1
The College of Psychic Studies (Registered number: 00049173)
for the Year Ended 31 December 2020
Report of the Trustees
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES Objectives, constitution and management
The objective of the College is to explore consciousness beyond matter.
The College is a registered charity constituted as a company limited by guarantee and governed by the Memorandum and Articles of the company. Trustees, whose responsibility it is to maintain proper control of the College's affairs, are recruited from those who are sympathetic to and familiar with the College's work whilst also offering the breadth of skills, attributes and experience to enable the trustees (collectively known as Council) to contribute effectively in achieving the aims and objectives of the College.
The induction of new trustees is effected by offering attendance at external training and information programmes and working alongside other trustees so deepening their knowledge of the College's operations.
The trustees provide over-sight of the College's activities and consider and approve the College's reserves, investment and risk policies. The trustees also set and monitor the achievement of longer-term objectives and strategies and oversee the quality of activities and the overall culture within which the College's activities are conducted. Within this the trustees contribute their own knowledge and professional expertise. Management accounts are produced quarterly and are reviewed by the trustees against budget and previous years' results. Key differences are followed up and explanations obtained.
The College Principal, Gill Matini, continues to assume responsibility for the day to day running of the College, whilst acting, with the trustees, as the College's ambassador in relation to other like-minded organisations.
Pay and remuneration of the Principal and senior management staff are set by the trustees based on agreed objectives and performance targets whilst also taking into account movements in the Consumer Price Index (CPI).
In this most challenging and difficult of years, the trustees sincerely thank the Principal, staff and tutors, who so ably and willingly supported the College and allowed it to operate throughout the year.
The College is not part of a wider group and there are no related parties with which it cooperates in pursuit of its charitable objectives.
Page 2
The College of Psychic Studies (Registered number: 00049173)
for the Year Ended 31 December 2020
Report of the Trustees
ACHIEVEMENT AND PERFORMANCE Charitable activities
The College is one of the world's oldest educational bodies dedicated to the exploration of psychic and spiritual phenomena.
It provides excellence in education and training whilst facilitating direct experience of consciousness, awareness and spiritual growth. It is unrivalled as a trusted source of information, guidance and tuition on the widest range of spiritual subjects.
In directing the College's activities and formulating its future plans, the trustees have paid due regard to the Charity Commission guidance on public benefit.
2020 was a year of exceptional challenge and change with the Covid pandemic necessitating a complete re-think of how we deliver our activities, the technology required and the consequent effect on staffing structure and numbers.
In March the College took an early decision to move our activities online. Fortunately, the recruitment of a Digital Manager was in place, and our website was adapted to manage online bookings and payments. Staff and tutors were introduced to Zoom as our preferred delivery channel and social media became our main promotional avenue rather than a printed programme.
This necessitated a complete review of our staffing structure and the skills required. Through to October the College augmented furlough payments to staff under the Coronavirus Job Retention Scheme. In October a new staffing structure was implemented to respond to the new digital environment. Four members of staff chose to take redundancy and we thank them for their contribution over many years.
Gill Matini, our Principal, and the new team rose magnificently to the challenge in adapting to a new digital environment. Our initial focus was to offer our courses online and other of our activities were added as the year progressed. Our tutors, not all of whom were familiar with Zoom, were offered the necessary training, and client feedback from their events was excellent.
Our website was adapted to cope with online bookings and payments whilst work on our new website continued. Our original specification required significant change to reflect the new online operation and again we were supported superbly by our web developer and graphic designer.
Without this huge effort and commitment from staff, tutors and our external support teams, it is no exaggeration to say that the future of the College would have been in doubt.
The financial results for the year reflect the disruption caused by the pandemic, staff redundancy costs and grants received under the Coronavirus Job Retention Scheme. Revenues in 2020 were £745,306 (2019 £1,037,095). An overall deficit of £214,038 (2019 surplus of £198,441) was recorded and charged to reserves after losses on investments of £54,083 (2019 net gains on investments of £243,235).
Page 3
The College of Psychic Studies (Registered number: 00049173)
for the Year Ended 31 December 2020
Report of the Trustees
ACHIEVEMENT AND PERFORMANCE
Future plans
The trustees have set their plans for 2021 assuming continued disruption from the pandemic.
Despite this our focus on reducing our operating deficit remains our key objective.
The primary means of delivering our educational material will continue to be online. This provides opportunities to attract a national and international client base without the constraints of a central London location and the physical limitations of small teaching rooms. It also allows us to reduce costs through online bookings and payments. We believe that these opportunities, coupled with savings through online operations, will allow us to reduce our deficit.
Our plans for 2021 are therefore to deliver our new website optimised for online operations and client ease of use, invest in our digital strategy and optimise the reach of College social media to widen our client base. The recruitment of a digital strategist will be considered.
Alongside this we plan to rebuild our programme of events to pre-pandemic levels and beyond. Within this we do not envisage, for example, running any overseas retreats in 2021, and there are significant constraints on operating our renowned healing course. Our initial priority is to rebuild our workshop levels to pre-pandemic levels or above.
We plan to trial opportunities for joint marketing initiatives with overseas organisations in allied fields of work but complementary to our areas of expertise and excellence. This is intended to extend and increase our international reach.
On the completion of the sale of our investment property in Farnham we will review our investment strategy with our investment managers Investec Wealth and Management. The planned reduction in operating deficit will allow us to focus on a total return basis for investment decisions, rather than one focussed on income and dividends. This should increase overall returns in the longer term.
Finally, the trustees are aware of the inherent risks of relying on digital delivery of the College's material and will therefore review the security and resilience of our IT systems and equipment.
Our new Trustees with their digital, corporate and business experience will be involved in these initiatives as well as in updating governance policies, reviewing the adequacy and scope of our insurance cover, liaising with our investment managers and refreshing and updating our HR policies and recruitment processes to both attract and retain key staff. We thank them all for their invaluable contribution.
Page 4
The College of Psychic Studies (Registered number: 00049173)
Report of the Trustees
for the Year Ended 31 December 2020
FINANCIAL REVIEW
Financial position
The financial performance is detailed in the attached accounts. The comparative figures (for the year ended 31 December 2019) have been restated, as explained in note 12 to the accounts.
The College's main sources of income are the courses, workshops, lectures and individual consultations it provides to clients, and the investment income it receives on its investments.
The College's activities were severely disrupted by the Covid pandemic and the decision was taken to close the College premises from 22 March 2020. This closure remained in force throughout the rest of the year.
£55,638 was received under the Coronavirus Job Retention Scheme.
Redundancy costs of £28,994, together with additional payments in lieu of notice and for holiday pay totalling £29,583, were incurred as a result of restructuring the team on the move to online working.
During the year there was a deficit of £159,955 (2019 £44,794) on the College's operations before gains and losses on investments.
After taking into account realised investment losses of £68,125 (2019 realised investment gains of £13,797) and unrealised investment gains of £14,042 (2019 £229,438), an overall deficit of £214,038 (2019 surplus of £198,441) was recorded.
There is no material pension liability affecting the financial position of the College.
Investment policy and objectives
The trustees have wide powers of investment granted by the College's Memorandum and Articles.
The overall objective of the investment policy is to create sufficient income and capital growth to enable the College to carry out its purposes consistently year by year.
The trustees have delegated discretionary investment management responsibilities to Investec Wealth and Management, of 2 Gresham Street, London EC2V 7QP, who have a dedicated Charities Portfolio Management Team. The investment managers have been given the objective of a long-term return of 3% above RPI with a minimum income of £60,000 per annum. The latter objective was not achieved during the year due to the pandemic increasing uncertainty and disrupting the UK economy with restrictions on dividend payments imposed by H M government.
With the introduction of MiFID 11 into Law on 3 January 2018, the trustees have decided to increase the permitted risk classification of the portfolio strategy from Medium Risk to Medium/Higher Risk (as defined by Investec Wealth and Management). The rationale behind this change is so that the investment manager may continue to manage the portfolio in the same manner as they have been since 2015 and it does not represent an intention by the investment manager to take a higher risk with regard to the investment strategy.
Apart from the financial objectives, the College has not set any other investment parameters for the investment managers.
During the year the investment property in Farnham was sold for gross proceeds of £600,000 to the existing tenant. £350,000 of the sales proceeds were was received during the year, with the balance payable by instalments in 2021. The tenant continued to pay rent on the property under the existing lease up to the date of completion in May 2021.
Sufficient liquid funds are held to cope with fluctuations in the College's financial position.
Page 5
The College of Psychic Studies (Registered number: 00049173)
for the Year Ended 31 December 2020
Report of the Trustees
FINANCIAL REVIEW
Reserves policy
The College has acquired, by legacies and donations, the property from which it operates and other investments. The income and capital growth from these investments is used to keep charges for the College's activities lower than they would otherwise be.
The trustees' objective is to achieve a balance between incoming resources and expenditure. Significant progress has been made over the last few years but this was reversed in 2020 due to the pandemic. The trustees have decided to maintain the minimum reserve level of £1.5m.
The total funds held by the College at 31 December 2020 were £2,877,299 and included restricted reserves amounting to £793.
The trustees have designated £3,480 of unrestricted funds leaving £2,873,026 of undesignated, unrestricted funds. Of the undesignated, unrestricted funds, £135,932 is represented by the functional fixed assets of the College and £458,374 relates to unrealised investment gains as at the balance sheet date.
The trustees therefore regard £2.28m (2019 £2.04m) of the charity's reserves as free reserves at the balance sheet date.
The amount of reserves is higher than the level targeted by the trustees and the trustees are of the opinion that this is reasonable while the College is working towards a balanced budget.
Risk factors
The major risks facing the College have been reviewed and systems and procedures have been established to manage these risks.
The operating deficit is clearly the main risk affecting the College.
The pandemic has increased the challenge of balancing expenditure with income. The general climate both economically and in terms of the pandemic remains uncertain. The College's central location in London and physical layout with many small rooms makes it vulnerable to any rise in infection levels despite investing in all reasonable mitigation measures. Illness amongst our staff and tutors is a major concern and threat to our continued operations. We will therefore be cautious in holding in-person events during 2021.
Although progress in reducing the deficit was reversed in 2020 due to the pandemic the trustees have taken measures to reduce costs and re-build income. These include reduced staffing levels, investing in a new website which accommodates online working, investment in digital marketing and social media and focussing on re-building our income particularly from workshops.
The risk and impact of breaches of digital security is increased with online working. A review of digital security will be carried out along with the implications of increased reliance on home working.
The risk from the loss of the property from which we operate in Queensberry Place has reduced due to online working. 16 Queensberry Place has been our home since 1925 as well a major financial asset. Due to the pandemic, it is no longer in daily use and we plan to invest in refurbishing the building to reduce any risk to its fabric and to improve security and surveillance systems.
The possible loss of key staff continues to be managed by updating our HR policies, practices and recruitment processes. Reduced numbers however increase the impact of losing staff.
In addition, the trustees continue to monitor the General Data Processing Regulations (GDPR) and to take steps to ensure compliance.
The College is aware that it must keep abreast of continual changes in its area of work and the needs of its clients as well as the activities of other workers and organisations in this field.
The College maintains professional indemnity cover on behalf of the trustees and the Principal.
Page 6
The College of Psychic Studies (Registered number: 00049173)
Report of the Trustees
for the Year Ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of The College of Psychic Studies for the purposes of company law) are responsible for preparing the Report of the Trustees 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 year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
-
there is no relevant audit information of which the charitable company's auditors are unaware; and
-
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Maximus Accountancy Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 30 July 2021 and signed on its behalf by:
G C Dart CBE - Trustee
Page 7
Report of the Independent Auditors to the Members of The College of Psychic Studies
Opinion
We have audited the financial statements of The College of Psychic Studies (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 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 Auditors' 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
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 Report of the Independent Auditors 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 with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
Opinions 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 8
Report of the Independent Auditors to the Members of The College of Psychic Studies
Matters on which we are required to report by exception
In the light of the 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 Report of the Trustees.
We have nothing to report in respect of the following matters where the 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 take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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.
Page 9
Report of the Independent Auditors to the Members of The College of Psychic Studies
Our 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 a Report of the Independent Auditors 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:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant are those that relate to the reporting framework (FRS 102, 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 2019)', the Charities Acts, and the Companies Act 2006), and the relevant tax compliance regulations. We also considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty, such as the General Data Protection Regulation (GDPR), and employment and health and safety regulations.
We understood how the charitable company is complying with those frameworks by making enquiries of management and those charged with governance (the charitable company's trustees). We corroborated our enquiries through our review of the minutes of the trustees' meetings and the trustees' own risk assessment, as well as consideration of the results of our audit procedures.
We assessed the susceptibility of the charitable company's financial statements to material misstatement, including how fraud might occur, by enquiries of management and those charged with governance, by reviewing the trustees' own risk assessment, and by considering our own knowledge of the charitable company's activities and its accounting system and controls. We also considered the existence of possible incentives to fraud.
Based on our understanding, we designed our audit procedures to identify significant instances of non-compliance with laws and regulations, and potential indicators of fraud. Our procedures involved enquiries of management and those charged with governance as to their knowledge of any instances of non-compliance with laws and regulations and any known instances of fraud (whether internal or external), review of the minutes of trustees' meetings, focussed audit testing, manual journal testing and an overall review of the general ledger transactions for the year. We also considered whether any judgements made in making accounting estimates are indicative of potential bias, including in respect of revenue recognition. Our procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.
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 Report of the Independent Auditors.
Page 10
Report of the Independent Auditors to the Members of The College of Psychic Studies
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 auditors' 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Hilary Julian BA FCA DChA (Senior Statutory Auditor) for and on behalf of Maximus Accountancy Services Limited 47 Kensington Road Chichester West Sussex PO19 7XS
20 August 2021
Page 11
The College of Psychic Studies
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 4 Interviews with sensitives Courses, workshops and lectures including outreach activities Annual subscriptions paid by members Publications, library and other activities including room hire Investment income 3 Total EXPENDITURE ON Raising funds 5 Charitable activities 6 Interviews with sensitives Courses, workshops and lectures including outreach activities Publications, library and other activities including room hire Administration costs Establishment costs Finance and professional costs Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment 12 As restated TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 82,109 89,100 422,597 48,026 14,093 89,381 745,306 17,120 51,710 155,080 56,266 397,615 143,787 83,683 905,261 (54,083) (214,038) 2,816,704 273,840 3,090,544 2,876,506 |
Restricted fund £ - - - - - - - - - - - - - - - - - 793 - 793 793 |
2020 Total funds £ 82,109 89,100 422,597 48,026 14,093 89,381 745,306 17,120 51,710 155,080 56,266 397,615 143,787 83,683 905,261 (54,083) (214,038) 2,817,497 273,840 3,091,337 2,877,299 |
2019 Total funds as restated £ 4,131 142,185 651,045 59,098 56,016 124,620 |
|---|---|---|---|---|
| 1,037,095 22,484 83,073 264,194 63,484 372,929 196,516 79,209 |
||||
| 1,081,889 243,235 |
||||
| 198,441 2,690,931 201,965 |
||||
| 2,892,896 | ||||
| 3,091,337 |
The notes form part of these financial statements
Page 12
The College of Psychic Studies (Registered number: 00049173)
Balance Sheet
31 December 2020
| Notes FIXED ASSETS Intangible assets 13 Tangible assets 14 Investments Investments 15 Investment property 16 CURRENT ASSETS Stocks 17 Debtors 18 Cash at bank and in hand CREDITORS Amounts falling due within one year 19 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 21 Unrestricted funds: General fund Beard Memorial Lecture Fund Laverne Fund Fair value reserve Restricted funds: LIGHT Production Fund TOTAL FUNDS |
Unrestricted funds £ 97,602 38,330 2,583,561 - 2,719,493 19,736 322,368 42,508 384,612 (227,599) 157,013 2,876,506 2,876,506 |
Restricted fund £ - - - - - - - 11,474 11,474 (10,681) 793 793 793 |
2020 Total funds £ 97,602 38,330 2,583,561 - 2,719,493 19,736 322,368 53,982 396,086 (238,280) 157,806 2,877,299 2,877,299 2,414,652 1,985 1,495 458,374 2,876,506 793 2,877,299 |
2019 Total funds as restated £ 58,645 61,479 2,253,806 585,000 2,958,930 12,304 350,884 47,323 410,511 (278,104) 132,407 3,091,337 3,091,337 2,160,276 1,985 2,560 925,723 3,090,544 793 3,091,337 |
|---|---|---|---|---|
The notes form part of these financial statements
continued...
Page 13
The College of Psychic Studies (Registered number: 00049173)
Balance Sheet - continued 31 December 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 30 July 2021 and were signed on its behalf by:
G C Dart CBE - Trustee
K Forsythe - Trustee
The notes form part of these financial statements
Page 14
The College of Psychic Studies
Cash Flow Statement
for the Year Ended 31 December 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Purchase of intangible fixed assets Purchase of tangible fixed assets Purchase of fixed asset investments Sale of fixed asset investments Sale of investment property Rent received Interest received Dividends received Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2020 a £ 25,174 25,174 (55,340) (3,718) (793,759) 394,921 350,000 33,893 638 54,850 (18,515) 6,659 47,323 53,982 |
2019 s restated £ (234,108) (234,108) (29,978) (11,017) (368,559) 491,009 - 39,626 143 84,851 206,075 (28,033) 75,356 47,323 |
|---|---|---|
The notes form part of these financial statements
Page 15
The College of Psychic Studies
Notes to the Cash Flow Statement for the Year Ended 31 December 2020
1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| OPERATING ACTIVITIES | ||
|---|---|---|
| Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Losses/(gain) on investments Loss on disposal of fixed assets Interest received Dividends received Rent received (Increase)/decrease in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Net cash provided by/(used in) operations |
2020 a £ (214,038) 29,222 54,083 14,028 (638) (54,850) (33,893) (7,432) 278,516 (39,824) 25,174 |
2019 s restated £ 198,441 32,621 (243,235) - (143) (84,851) (39,626) 826 (102,820) 4,679 |
| (234,108) |
- ANALYSIS OF CHANGES IN NET FUNDS
| At 1.1.20 | Cash flow | At 31.12.20 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 47,323 | 6,659 | 53,982 |
| 47,323 | 6,659 | 53,982 | |
| Total | 47,323 | 6,659 | 53,982 |
The notes form part of these financial statements
Page 16
The College of Psychic Studies
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value.
The financial statements are prepared on the going concern basis and are presented in sterling which is the functional currency of the charity.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Income received in respect of events which have yet to take place is deferred, as is the proportion of membership subscriptions received that relates to future periods.
Government grants are recognised in the period to which they relate.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Allocation and apportionment of costs
The majority of the charity's costs relate to the performance of its charitable activities. Other costs are allocated to their expenditure category based on their nature.
Intangible assets
Intangible assets are digital assets including website development costs which are capitalised when they are separable assets of continuing use to the charity, and are amortised over 5 years on a straight line basis. The amortisation of digital assets is included in establishment costs in the SoFA.
Tangible fixed assets
Fixed assets costing over £500 are capitalised. No depreciation is provided on freehold property on the grounds that it would be immaterial. Depreciation is charged on a straight line basis on fixtures, fittings and equipment based on the trustees' estimate of their expected useful lives which is currently 3 to 10 years.
Investment property
The investment property is carried at fair value based on its most recent valuation, with changes in its fair value recognised in 'net gains / (losses) on investments' in the SoFA. The aggregate surplus or deficit arising from the change in its value is transferred to a fair value reserve.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES - continued
Fund accounting
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Investments
Investments are recognised initially at fair value which is normally the transaction price. Subsequently, they are measured at fair value with changes recognised in 'net gains / (losses) on investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Debtors and creditors payable or receivable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
2. DONATIONS AND LEGACIES
| General donations Healing donations Legacies Grants |
2020 as £ 208 763 25,500 55,638 82,109 |
2019 restated £ 69 4,062 - - |
|---|---|---|
| 4,131 |
Grants received, included in the above, are as follows:
3.
| Coronavirus Job Retention Scheme grants INVESTMENT INCOME Rents received Dividends received Deposit account interest Interest on VAT refund |
2020 a £ 55,638 2020 a £ 33,893 54,850 51 587 89,381 |
s s |
2019 restated £ - |
|
|---|---|---|---|---|
| 2019 restated £ 39,626 84,851 143 - |
||||
| 124,620 |
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
4. INCOME FROM CHARITABLE ACTIVITIES
| Activity Sittings income Interviews with sensitives Courses, workshops and Courses, workshops and lectures including lectures outreach activities Membership subscriptions Annual subscriptions paid by members Publications and other Publications, library and other activities income including room hire 5. RAISING FUNDS Raising donations and legacies Bank charges Investment management costs Portfolio management Investment property repairs and other costs Aggregate amounts 6. CHARITABLE ACTIVITIES COSTS Direct Costs £ Interviews with sensitives 51,710 Courses, workshops and lectures including outreach activities 155,080 Publications, library and other activities including room hire 56,266 Administration costs - Establishment costs - Finance and professional costs - 263,056 |
2020 a £ 89,100 422,597 48,026 14,093 573,816 2020 a £ - 2020 a £ 16,215 905 17,120 17,120 Support costs (see note 7) £ - - - 397,615 143,787 83,683 625,085 |
2019 s restated £ 142,185 651,045 59,098 56,016 |
2019 s restated £ 142,185 651,045 59,098 56,016 |
|---|---|---|---|
| 908,344 | |||
| 2019 s restated £ 100 2019 s restated £ 18,112 4,272 22,384 22,484 Totals £ 51,710 155,080 56,266 397,615 143,787 83,683 |
2019 restated £ 100 2019 restated £ 18,112 4,272 |
||
| 22,384 | |||
| 22,484 | |||
| 888,141 |
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
7. SUPPORT COSTS
| SUPPORT COSTS | |||
|---|---|---|---|
| Management £ Administration costs 390,246 Establishment costs - Finance and professional costs - 390,246 |
Finance £ - - 81,183 81,183 |
Governance Other costs £ £ 7,369 - 143,787 - - 2,500 151,156 2,500 |
Totals £ 397,615 143,787 83,683 |
| 625,085 |
8. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2020 | 2019 | |
|---|---|---|
| as restated | ||
| £ | £ | |
| Auditors' remuneration | 2,500 | 2,427 |
| Depreciation - owned assets | 22,433 | 25,833 |
| Deficit on disposal of fixed assets | 14,028 | - |
| Digital assets amortisation | 6,789 | 6,788 |
| Income from operating leases | (33,893) | (39,626) |
In addition to the auditors' remuneration disclosed above, support costs includes £7,166 (2019 £5,515) in respect of other financial services provided by the auditor.
9. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
A total of £2,259 (2019 £7,862) was reimbursed to two trustees (2019 three trustees) during the year in respect of travel and subsistence expenses whilst performing their duties as trustees.
10. STAFF COSTS
| Wages and salaries Social security costs Other pension costs |
2020 a £ 323,218 26,641 8,334 358,193 |
2019 s restated £ 256,263 21,783 8,215 |
|---|---|---|
| 286,261 |
The figure for wages and salaries above includes redundancy payments of £28,944 and £23,248 for payments in lieu of notice and £6,335 for accrued holiday pay. No amounts were unpaid at the year end.
Other pension costs are in respect of defined contribution plans.
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
10. STAFF COSTS - continued
The average monthly number of employees during the year was as follows:
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| as restated | |||||
| Management and administration | 8 | 10 | |||
| The number of employees whose employee benefits (excluding employer pension costs) | exceeded | £60,000 was: | |||
| 2020 | 2019 | ||||
| as restated | |||||
| £70,001 - £80,000 | - | 1 | |||
| £80,001 - £90,000 | 1 | - | |||
| 1 | 1 | ||||
| 11. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | ||||
| Unrestricted | Restricted | Total | |||
| funds | fund | funds | |||
| as restated | |||||
| £ | £ | £ | |||
| INCOME AND ENDOWMENTS FROM | |||||
| Donations and legacies | 4,131 | - | 4,131 | ||
| Charitable activities | |||||
| Interviews with sensitives | 142,185 | - | 142,185 | ||
| Courses, workshops and lectures including | |||||
| outreach activities | 651,045 | - | 651,045 | ||
| Annual subscriptions paid by members | 59,098 | - | 59,098 | ||
| Publications, library and other activities | |||||
| including room hire | 52,859 | 3,157 | 56,016 | ||
| Investment income | 124,620 | - | 124,620 | ||
| Total | 1,033,938 | 3,157 | 1,037,095 | ||
| EXPENDITURE ON | |||||
| Raising funds | 22,484 | - | 22,484 | ||
| Charitable activities | |||||
| Interviews with sensitives | 83,073 | - | 83,073 | ||
| Courses, workshops and lectures including | |||||
| outreach activities | 264,194 | - | 264,194 | ||
| Publications, library and other activities | |||||
| including room hire | 60,327 | 3,157 | 63,484 | ||
| Administration costs | 372,929 | - | 372,929 | ||
| Establishment costs | 196,516 | - | 196,516 | ||
| Finance and professional costs | 79,209 | - | 79,209 | ||
| Total | 1,078,732 | 3,157 | 1,081,889 | ||
| Net gains on investments | 243,235 | - | 243,235 | ||
| NET INCOME | 198,441 | - | 198,441 |
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment As restated TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 2,690,138 201,965 2,892,103 3,090,544 |
Restricted fund £ 793 - 793 793 |
Total funds as restated £ 2,690,931 201,965 |
|---|---|---|---|
| 2,892,896 | |||
| 3,091,337 |
12. PRIOR YEAR ADJUSTMENT
During the year the charity received confirmation from HM Revenue & Customs (HMRC) that face-to-face courses, workshops and lectures, and similar live online events, should be classified as education, and that the income received from these activities is therefore exempt from value added tax (VAT). As a result, the charity made a retrospective claim for output tax that had incorrectly been accounted for to HMRC in respect of the income derived from exempt activities in earlier years (restricted by law to the four years prior to when the claim was agreed). The charity received a net refund of VAT, after taking into account irrecoverable input tax, of which just over £280k was in respect of years prior to the year ended 31 December 2020, and this has been treated as a prior year adjustment in these accounts. The comparative figures (for the year ended 31 December 2019) have therefore been restated, leading to an increase in income for the year ended 31 December 2019 of just over £110k, and an increase in expenditure due to irrecoverable input tax of nearly £32k. The overall effect of the restatement has been to reduce the deficit for the year ended 31 December 2019 by £72k, after also taking into account the adjustment to deferred income arising from the VAT correction. The reserves brought forward at 1 January 2019 have been increased by £202k.
13. INTANGIBLE FIXED ASSETS
| COST At 1 January 2020 Additions Disposals At 31 December 2020 AMORTISATION At 1 January 2020 Charge for year At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Digital assets £ 109,166 55,340 (9,594) 154,912 50,521 6,789 57,310 97,602 58,645 |
|---|---|
Amortisation of digital assets is included in establishment costs in the SoFA.
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
14. TANGIBLE FIXED ASSETS
| COST At 1 January 2020 Additions Disposals At 31 December 2020 DEPRECIATION At 1 January 2020 Charge for year Eliminated on disposal At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Freehold property £ 9,016 - - 9,016 - - - - 9,016 9,016 |
Fixtures, fittings and hardware £ 402,623 3,718 (49,552) 356,789 350,160 22,433 (45,118) 327,475 29,314 52,463 |
Totals £ 411,639 3,718 (49,552) 365,805 350,160 22,433 (45,118) 327,475 38,330 61,479 |
|---|---|---|---|
In the opinion of the trustees the market value of the freehold property on an existing use basis is £7-8m. This is based on a professional valuation obtained in February 2015, and a further professional valuation obtained in June 2021.
The College also benefits from collections of historic books and works of art which are not capitalised as they have not been formally valued, although they are estimated to have a value in the region of £300,000 for insurance purposes. The costs of obtaining such a valuation are considered to be onerous when compared to the benefit that would be derived.
The College's collections are made available to scholars and students as appropriate as well to the public at events such as exhibitions held by the College, or when items are loaned to third parties to exhibit.
15. FIXED ASSET INVESTMENTS
| MARKET VALUE At 1 January 2020 Additions Disposals Revaluations At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Listed investments £ 2,242,970 501,944 (394,921) (69,083) 2,280,910 2,280,910 2,242,970 |
Cash and settlements pending £ 10,836 291,815 - - 302,651 302,651 10,836 |
Totals £ 2,253,806 793,759 (394,921) (69,083) 2,583,561 2,583,561 2,253,806 |
|---|---|---|---|
Included in the market value of listed investments is £841,449 (2019 £532,643) which relates to securities listed outside the UK.
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
15. FIXED ASSET INVESTMENTS - continued
Included in the change in valuation for the year are £83,125 of realised losses and £14,042 of unrealised gains. The historical cost of the investments held at the balance sheet date was £1,822,536 (2019 £1,723,066) and the fair value reserve relating to them was £458,374 (2019 £519,904).
16. INVESTMENT PROPERTY
| FAIR VALUE At 1 January 2020 Disposals At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
£ 585,000 (585,000) - - 585,000 |
|---|---|
During the year the investment property was sold for gross proceeds of £600,000 to the existing tenant. £350,000 of the sales proceeds was received during the year, with the balance payable by instalments in 2021. The tenant continued to pay rent on the property under the existing lease up to the date of completion in May 2021.
17. STOCKS
| Books for resale Cabinet items for resale 18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income |
2020 a £ 2,697 17,039 19,736 2020 a £ - 290,272 32,096 322,368 |
2019 s restated £ 2,725 9,579 12,304 2019 s restated £ 27,310 280,497 43,077 350,884 |
|---|---|---|
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Social security and other taxes VAT Deferred income Accrued expenses |
2020 a £ 35,895 16,673 2,375 172,881 10,456 238,280 |
2019 s restated £ 22,355 6,810 42,419 197,203 9,317 |
|---|---|---|
| 278,104 |
Income is deferred where the conditions for recognition have not been met at the balance sheet date. The deferred income above relates to events taking place after the balance sheet date for which payment had been received in advance, grants received for which the expenditure has yet to be incurred, and the proportion of membership subscriptions received during the year which relate to the next accounting period. The majority of the deferred income at each year end is recognised in the following accounting period except where payment in full has been made for courses lasting more than a year in which case the income received is recognised over the duration of the course.
20. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years |
2020 2019 as restated £ £ 1,070 2,140 - 1,070 1,070 3,210 |
2020 2019 as restated £ £ 1,070 2,140 - 1,070 1,070 3,210 |
|---|---|---|
| 3,210 |
Operating lease payment of £2,140 (2019 £2,140) were recognised as an expense during the year.
21. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | |||||
|---|---|---|---|---|---|
| Unrestricted funds General fund Beard Memorial Lecture Fund Laverne Fund Fair value reserve Restricted funds LIGHT Production Fund TOTAL FUNDS |
At 1.1.20 £ 1,886,436 1,985 2,560 925,723 2,816,704 793 2,817,497 |
Prior year adjustment £ 273,840 - - - 273,840 - 273,840 |
Net movement in funds £ (212,973) - (1,065) - (214,038) - (214,038) |
Transfers between funds £ 467,349 - - (467,349) - - - |
At 31.12.20 £ 2,414,652 1,985 1,495 458,374 |
| 2,876,506 793 |
|||||
| 2,877,299 |
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
21. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Laverne Fund TOTAL FUNDS Comparatives for movement in funds At 1.1.19 £ Unrestricted funds General fund 1,919,687 Beard Memorial Lecture Fund 1,985 Laverne Fund 2,560 Fair value reserve 765,906 2,690,138 Restricted funds LIGHT Production Fund 793 TOTAL FUNDS 2,690,931 |
Incoming resources £ 745,306 - 745,306 745,306 Prior year adjustment £ 201,965 - - - 201,965 - 201,965 |
Resources expended £ (904,196) (1,065) (905,261) (905,261) Net movement in funds £ 198,441 - - - 198,441 - 198,441 |
Gains and losses £ (54,083) - (54,083) (54,083) Transfers between funds £ (159,817) - - 159,817 - - - |
Movement in funds £ (212,973) (1,065) (214,038) (214,038) At 31.12.19 £ 2,160,276 1,985 2,560 925,723 3,090,544 793 3,091,337 |
|||
|---|---|---|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds LIGHT Production Fund TOTAL FUNDS |
Incoming resources £ 1,033,938 3,157 1,037,095 |
Resources expended £ (1,078,732 ) (3,157) (1,081,889 ) |
Gains and losses £ 243,235 - 243,235 |
Movement in funds £ 198,441 - 198,441 |
|---|---|---|---|---|
The LIGHT Publications Fund consists of donations from the Pelegrin Trust for the production of two issues of LIGHT a year.
Included in the unrestricted funds are funds designated by the trustees as follows. The Beard Memorial Lecture Fund exists to fund an annual lecture in memory of the family of Paul Beard, a former president of the College. The Laverne Fund is designated to provide bursaries. All designated funds are represented by cash.
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The College of Psychic Studies
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
22. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
23. POST BALANCE SHEET EVENTS
In common with similar organisations, the charity has been affected by the outbreak of the Covid-19 virus, and the decision was taken to close the College premises early for the normal spring break, from 22 March 2020.
Subsequent lockdowns and high levels of Covid infections meant that the College did not open again for in person events until June 2021 for the summer.
Trustees remain cautious regarding the pandemic and no in person events are currently planned beyond August 2021.
Our full and expanding range of online events have proved popular with a national and international audience and will continue.
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