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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 00049173 (England and Wales) REGISTERED CHARITY NUMBER: 212728

Report of the Trustees and

Financial Statements for the Year Ended 31 December 2022

for

The College of Psychic Studies

The College of Psychic Studies

Contents of the Financial Statements for the Year Ended 31 December 2022

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 26

The College of Psychic Studies

Reference and Administrative Details for the Year Ended 31 December 2022

TRUSTEES G C Dart CBE President
C M Wilding
D J Brockwell Vice-President
K Forsythe (resigned 20.2.2023)
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
INDEPENDENT AUDITORS Carpenter Box
Chartered Accountants
Statutory Auditor
Amelia House, Crescent Road
Worthing
West Sussex
BN11 1RL
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 2022

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 2022. 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 College's aim and purpose as an educational charity is to provide direct experience of consciousness, awareness and spiritual growth. The College achieves this and delivers public benefit by providing education and training through courses, workshops and talks as well as individual consultations. As such it is unrivalled as a trusted source of information, guidance and tuition on the widest range of spiritual subjects.

By moving to online tuition the College now reaches a national and international audience. As a result increased numbers of students are able to access our tuition, with international students now accounting for 25% of our sales - an increase of 24% on last year. This is a key criteria in our assessment of our performance alongside the public benefit we deliver through the quality of our activities as measured by client feedback.

The trustees are ever mindful of their responsibilities in ensuring the financial and long-term sustainability of the charity. They achieve this by an ongoing programme of developing our activities and investment in the College's home at 16 Queensberry Place in South Kensington.

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 education 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 be responsible 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).

The trustees sincerely thank the Principal, staff and tutors, who so ably and willingly support the College.

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 2022

Report of the Trustees

ACHIEVEMENT AND PERFORMANCE

Charitable activities

2022 was another year of significant achievements not least in exceeding our pre-pandemic level of sales through our online platforms. Our new website which we continue to develop is now our main means of marketing along with social media. Overseas clients who previously had no means of accessing our courses and workshops now represent 25% of sales.

Whilst online is our predominant channel of providing education we continue to explore the demand for in person tuition using our premises at 16 Queensberry Place, South Kensington. This is an ongoing challenge but to date client demand for in person events has been lower than we anticipated.

We held a 3 day Tarot conference at the College with international speakers and an exhibition - Creative Spirits - allowed members and guests to view items from our extensive archives. The exhibition included the automatic drawings of Anna Mary Howitt Watts, one of our founder members, and Aleksandra Ionowa dubbed Finland's Hilma of Klint.

Our Georgiana Houghton album of spirit art was exhibited at the Venice Biennale.

Reflecting our increased dependence on our computer systems and the internet we increased security and resilience by moving our systems onto remote cloud-based servers, reviewed and improved our cyber security and tightened up procedures for remotely accessing our systems through multi-factor authorisation.

Without the commitment of staff, tutors and our external support teams none of this would have been possible and the College would not have emerged from the pandemic stronger than before nor achieved our increasing recognition both nationally and internationally.

Revenues in 2022 were £925,862 (2021 £858,514). An overall deficit of £324,096 (2021 surplus of £265,219) was recorded and charged to reserves after losses on investment of £387,046 (2021 net gains on investment of £299,945).

Future plans

A sustainable financial performance remains a key priority of the trustees along with increasing student numbers and sales whilst upholding the College's reputation for the excellence, professionalism and integrity of its activities.

The trustees intend that the primary means of delivering our educational material will remain online. We will continue to build a national and international following whilst exploring those activities where there is a significant demand for in house tuition.

A challenge for 2023 will be to develop an overall digital strategy aimed at attracting new clients and marketing ourselves to a wider audience. This will include developing our social media and digital marketing programmes.

To increase sales we will continue trials of joint marketing initiatives with overseas organisations in allied fields of work but complementary to our areas of expertise and excellence.

A comprehensive third-party inspection of our electrical, fire and security systems highlighted areas for modernisation and improvement. We have worked closely with our insurers on priorities and will agree and implement a significant programme of works in 2023.

The trustees are conscious of the need to implement strong safeguarding policies for staff and clients. To this end much work has been undertaken to develop the necessary policies. In 2023 these will be communicated to all staff and tutors and the necessary training provided.

Staff development and succession planning for our most senior roles, including our trustees, will continue to be an area of focus.

Finally, four investment managers including our existing provider were invited to make proposals for the future management of our investment portfolio. After a review Brewin Dolphin of 12 Smithfield Street, London EC1A 9LA are to be appointed as our investment managers with effect from 23 February 2023.

Page 3

The College of Psychic Studies (Registered number: 00049173)

Report of the Trustees

for the Year Ended 31 December 2022

FINANCIAL REVIEW

Financial position

The financial performance is detailed in the attached 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.

A surplus of £62,950 (2021 deficit £34,726) was achieved on the College's operations before gains and losses on investments.

After taking into account realised investment losses of £91,638 (2021 realised investment gains of £24,181) and unrealised investment losses of £295,408 (2021 unrealised investment gains of £275,764), an overall deficit of £324,096 (2021 surplus of £265,219) was recorded and charged to reserves.

Our investments are held with a view to a 5 to 10 year time horizon and the trustees believe that within this our aim of a return of RPI plus 3% will be attained.

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 £50,000 per annum.

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.

Sufficient liquid funds are held to cope with fluctuations in the College's financial position.

It is intended to appoint Brewin Dolphin of 12 Smithfield Street, London EC1A 9LA as our investment manager as from 23 February 2023. Their overall objectives are similar to those noted for Investec apart from the minimum income target being raised to 2.5% of portfolio value or approximately £70,000 per annum.

Page 4

The College of Psychic Studies (Registered number: 00049173)

for the Year Ended 31 December 2022

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 with an operating surplus of £62,950 (2021 operating deficit £34,726) on the College's operations before gains and losses on investments.

The trustees now consider it reasonable to reduce the minimum reserve level from £1.5m to £1.0m. This is due to us now having substantially reduced our deficit, with a small surplus achieved in 2022, and our reduced dependance on our premises at 16 Queensberry Place due to our move to online tuition. We believe that the improved resilience of our systems and investment in better cyber security will allow us to restore normal operations without any significant interruption to our activities. Previously the gaining of statutory permissions and the task of re-building the College following any major incident could take many years and significantly disrupt our operations.

The total funds held by the College at 31 December 2021 were £2,818,422 and included restricted reserves amounting to £793.

The trustees have designated £3,300 of unrestricted funds leaving £2,814,329 of undesignated, unrestricted funds. Of the undesignated, unrestricted funds, £82,588 is represented by the functional fixed assets of the College and £211,280 relates to unrealised investment gains as at the balance sheet date.

The trustees therefore regard £2.52m (2021 £2.40m) 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 prudent given high levels of inflation reducing clients disposable income, the continuing international and economic uncertainties and the fluctuations in stock market valuations worldwide.

Given this level of reserves, our trading performance and the value of the freehold property owned by the College in Queensberry Place, Kensington - valued on a fair market basis by the valuers Knight Frank in July 2021 at £8m - the trustees believe that the College is and will for the foreseeable future remain a going concern.

Page 5

The College of Psychic Studies (Registered number: 00049173)

for the Year Ended 31 December 2022

Report of the Trustees

FINANCIAL REVIEW

Risk factors

The major risks facing the College have been reviewed and systems and procedures have been established to manage these risks.

Whilst the trustees remain focused on balancing income and expenditure the surplus for the year of £62,950 (2021 deficit £34,726) is now considered to be at a level for the College to continue as a viable educational charity for the foreseeable future.

The risk and impact of breaches of digital security is increased with our new reliance on online working. A comprehensive review of digital security has been carried out. All our computer files are now stored on the cloud using Microsoft Azure software, multi-factor authentication introduced for remote access and certification gained under the Cyber Essentials Assurance Scheme. Certification of compliance with GDPR regulations has also been obtained.

Our premises at 16 Queensberry Place are an essential part of our operations and a major financial asset. As part of our modernisation and improvement plan a comprehensive review of electrical, fire and security systems has been carried out. All necessary electrical improvements have been implemented. Working with our insurers we have obtained quotes from third parties for upgrading our fire compartmentation and fire doors and replacing and extending our security and fire alarm systems with wifi connectivity. We have prioritised the necessary work and our intention is to carry out all necessary work during 2023.

Safeguarding our staff, clients and tutors is a continuing priority. During the year a comprehensive safeguarding policy has been drafted and approved by the trustees. This will now be communicated and the necessary training given to all involved.

Loss of key staff is a major risk and we continue to implement a progressive salary policy and introduce staff development plans. During the year the high levels of inflation and high energy prices were recognised by exceptional salary awards to our more junior staff.

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 its field. Joint working with other organisations has been trialed and this will be continued in 2023.

The College maintains professional indemnity cover on behalf of the trustees and the Principal.

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.

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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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

Page 6

The College of Psychic Studies (Registered number: 00049173)

for the Year Ended 31 December 2022

Report of the Trustees

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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:

AUDITORS

Carpenter Box 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 18 May 2023 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 2022 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:

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:

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

· Obtaining an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations; · Obtaining an understanding of the charity's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud

· Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the charity and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the charity for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

· Making enquiries of management and those charged with governance about any known or suspected instances of non-compliance with laws and regulations and fraud;

· Reviewing minutes of meetings of the board and senior management.

· Challenging assumptions and judgements made by management in their significant accounting estimates.

· Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Robin Evans BA FCA CTA (Senior Statutory Auditor) for and on behalf of Carpenter Box Chartered Accountants Statutory Auditor Worthing

7 June 2023

Carpenter Box is a trading name of Carpenter Box Limited

Page 11

The College of Psychic Studies

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2022

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
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
£
4,203
119,391
655,124
62,815
16,932
67,397
925,862
19,695
69,184
257,635
53,554
262,922
131,783
68,139
862,912
(387,046)
(324,096)
3,141,725
2,817,629
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
793
793
2022
Total
funds
£
4,203
119,391
655,124
62,815
16,932
67,397
925,862
19,695
69,184
257,635
53,554
262,922
131,783
68,139
862,912
(387,046)
(324,096)
3,142,518
2,818,422
2021
Total
funds
£
2,814
109,865
601,340
55,887
11,328
77,280
858,514
21,410
62,748
240,516
40,776
269,390
179,471
78,929
893,240
299,945
265,219
2,877,299
3,142,518

The notes form part of these financial statements

Page 12

The College of Psychic Studies (Registered number: 00049173)

Balance Sheet

31 December 2022

Notes
FIXED ASSETS
Intangible assets
12
Tangible assets
13
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
19
Unrestricted funds:
General fund
Beard Memorial Lecture Fund
Laverne Fund
Fair value reserve
Restricted funds:
LIGHT Production Fund
TOTAL FUNDS
Unrestricted
funds
£
59,325
23,263
2,747,041
2,829,629
11,975
35,328
149,193
196,496
(208,496)
(12,000)
2,817,629
2,817,629
Restricted
fund
£
-
-
-
-
-
-
11,474
11,474
(10,681)
793
793
793
2022
Total
funds
£
59,325
23,263
2,747,041
2,829,629
11,975
35,328
160,667
207,970
(219,177)
(11,207)
2,818,422
2,818,422
2,603,049
1,985
1,315
211,280
2,817,629
793
2,818,422
2021
Total
funds
£
81,603
28,286
3,154,324
3,264,213
13,896
31,069
58,465
103,430
(225,125)
(121,695)
3,142,518
3,142,518
2,509,813
1,985
1,315
628,612
3,141,725
793
3,142,518

The notes form part of these financial statements

continued...

Page 13

The College of Psychic Studies (Registered number: 00049173)

Balance Sheet - continued 31 December 2022

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 18 May 2023 and were signed on its behalf by:

G C Dart CBE - Trustee

D J Brockwell - 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 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by 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
Rent received
Interest received
Dividends received
Net cash provided by/(used in) 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
2022
£
15,691
15,691
-
(1,123)
(597,527)
617,764
-
332
67,065
86,511
102,202
58,465
160,667
2021
£
206,354
206,354
(8,333)
-
(1,035,980 )
765,162
13,525
7
63,748
(201,871)
4,483
53,982
58,465

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 2022

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
Decrease in stocks
(Increase)/decrease in debtors
Decrease in creditors
Net cash provided by operations
2022
£
(324,096)
24,340
387,046
4,084
(332)
(67,065)
-
1,921
(4,259)
(5,948)
15,691
2021
£
265,219
33,909
(299,945)
467
(7)
(63,748)
(13,525)
5,840
291,299
(13,155)
206,354

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank and in hand 58,465 102,202 160,667
58,465 102,202 160,667
Total 58,465 102,202 160,667

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 2022

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, rounded to the nearest £.

At the time of approving the financial statements, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The trustees have considered relevant information, including the impact of subsequent events and the Covid-19 pandemic, in making their assessment. Based on these assessments and having regard to the resources available to the charity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the financial statements.

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.

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.

continued...

Page 17

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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.

Operating lease commitments

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

2. DONATIONS AND LEGACIES

General donations
Legacies
3.
INVESTMENT INCOME
Rents received
Dividends received
Deposit account interest
2022
£
3,203
1,000
4,203
2022
£
-
67,065
332
67,397
2021
£
2,748
66
2,814
2021
£
13,525
63,748
7
77,280

The investment property was sold during the year ended 31 December 2020. In accordance with the sale agreement the purchaser paid £250,000 of the purchase consideration by instalments during the year ended 31 December 2021. In recognition of the extended payment period the purchaser continued to pay rent until the purchase consideration had been paid in full. The charity had no commitment as lessor at either year end.

continued...

Page 18

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

4. INCOME FROM CHARITABLE ACTIVITIES

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
2022
£
119,391
655,124
62,815
16,932
854,262
2021
£
109,865
601,340
55,887
11,328
778,420

An analysis of income from charitable activities by geographical market is given below:

2022 2021
£ £
United Kingdom 640,480 607,523
Europe 91,248 67,638
North America 95,686 81,961
Rest of the World 26,848 21,298
854,262 778,420

5. RAISING FUNDS

Investment management costs

Portfolio management
Investment property repairs and other costs
2022
£
19,695
-
19,695
2021
£
20,667
743
21,410

6. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
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
Direct
Costs
£
69,184
257,635
52,304
-
-
-
379,123
Support
costs (see
note 7)
£
-
-
1,250
262,922
131,783
68,139
464,094
Totals
£
69,184
257,635
53,554
262,922
131,783
68,139
843,217

continued...

Page 19

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

7. SUPPORT COSTS

SUPPORT COSTS
Management
£
Publications, library and
other activities including
room hire
-
Administration costs
242,580
Establishment costs
-
Finance and professional
costs
-
242,580
Finance
£
1,250
-
-
60,639
61,889
Governance
Other
costs
£
£
-
-
20,342
-
131,783
-
-
7,500
152,125
7,500
Totals
£
1,250
262,922
131,783
68,139
464,094

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022 2021
£ £
Auditors' remuneration 7,500 5,000
Depreciation - owned assets 6,146 10,044
Deficit on disposal of fixed assets 4,084 467
Digital assets amortisation 18,194 23,865
Income from operating leases - (13,525)

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

During the year one trustee was reimbursed £483 in respect of travel and subsistence expenses incurred whilst performing their duties as a trustee (2021: one trustee was reimbursed £206 in respect of relevant training and one trustee was reimbursed £359 in respect of travel and subsistence expenses). In addition the charity incurred expenditure of £182 (2021: £430) for trustees' subsistence.

10. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
2022
£
166,472
13,580
3,297
183,349
2021
£
178,424
14,331
3,620
196,375

Other pension costs are in respect of defined contribution plans.

The key management personnel of the charity comprise the Principal and Assistant to the Principal. The total employee benefits of the key management of the charity were £126,629 (2021: £117,582).

continued...

Page 20

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

10. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

2022
2021
Management and administration
5
5
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
2022
2021
£70,001 - £80,000
1
1
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Total
funds
fund
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,814
-
2,814
Charitable activities
Interviews with sensitives
109,865
-
109,865
Courses, workshops and lectures including
outreach activities
601,340
-
601,340
Annual subscriptions paid by members
55,887
-
55,887
Publications, library and other activities
including room hire
11,328
-
11,328
Investment income
77,280
-
77,280
Total
858,514
-
858,514
EXPENDITURE ON
Raising funds
21,410
-
21,410
Charitable activities
Interviews with sensitives
62,748
-
62,748
Courses, workshops and lectures including
outreach activities
240,516
-
240,516
Publications, library and other activities
including room hire
40,776
-
40,776
Administration costs
269,390
-
269,390
Establishment costs
179,471
-
179,471
Finance and professional costs
78,929
-
78,929
Total
893,240
-
893,240
Net gains on investments
299,945
-
299,945
NET INCOME
265,219
-
265,219
RECONCILIATION OF FUNDS
Total funds brought forward
2,876,506
793
2,877,299
2022
2021
Management and administration
5
5
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
2022
2021
£70,001 - £80,000
1
1
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Total
funds
fund
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,814
-
2,814
Charitable activities
Interviews with sensitives
109,865
-
109,865
Courses, workshops and lectures including
outreach activities
601,340
-
601,340
Annual subscriptions paid by members
55,887
-
55,887
Publications, library and other activities
including room hire
11,328
-
11,328
Investment income
77,280
-
77,280
Total
858,514
-
858,514
EXPENDITURE ON
Raising funds
21,410
-
21,410
Charitable activities
Interviews with sensitives
62,748
-
62,748
Courses, workshops and lectures including
outreach activities
240,516
-
240,516
Publications, library and other activities
including room hire
40,776
-
40,776
Administration costs
269,390
-
269,390
Establishment costs
179,471
-
179,471
Finance and professional costs
78,929
-
78,929
Total
893,240
-
893,240
Net gains on investments
299,945
-
299,945
NET INCOME
265,219
-
265,219
RECONCILIATION OF FUNDS
Total funds brought forward
2,876,506
793
2,877,299
2022
2021
Management and administration
5
5
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
2022
2021
£70,001 - £80,000
1
1
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Total
funds
fund
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,814
-
2,814
Charitable activities
Interviews with sensitives
109,865
-
109,865
Courses, workshops and lectures including
outreach activities
601,340
-
601,340
Annual subscriptions paid by members
55,887
-
55,887
Publications, library and other activities
including room hire
11,328
-
11,328
Investment income
77,280
-
77,280
Total
858,514
-
858,514
EXPENDITURE ON
Raising funds
21,410
-
21,410
Charitable activities
Interviews with sensitives
62,748
-
62,748
Courses, workshops and lectures including
outreach activities
240,516
-
240,516
Publications, library and other activities
including room hire
40,776
-
40,776
Administration costs
269,390
-
269,390
Establishment costs
179,471
-
179,471
Finance and professional costs
78,929
-
78,929
Total
893,240
-
893,240
Net gains on investments
299,945
-
299,945
NET INCOME
265,219
-
265,219
RECONCILIATION OF FUNDS
Total funds brought forward
2,876,506
793
2,877,299
858,514
21,410
62,748
240,516
40,776
269,390
179,471
78,929
893,240
299,945
265,219
2,877,299

continued...

Page 21

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
TOTAL FUNDS CARRIED FORWARD
12.
INTANGIBLE FIXED ASSETS
COST
At 1 January 2022
Disposals
At 31 December 2022
AMORTISATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
ACTIVITIES -
Unrestricted
funds
£
3,141,725
continued
Restricted
fund
£
793
Total
funds
£
Total
funds
£
3,142,518
Digital
assets
£
99,690
(4,084)
95,606
18,087
18,194
36,281
59,325
81,603

Amortisation of digital assets is included in establishment costs in the SoFA.

13. TANGIBLE FIXED ASSETS

COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
Freehold
property
£
9,016
-
9,016
-
-
-
9,016
9,016
Fixtures,
fittings
and
hardware
£
356,789
1,123
357,912
337,519
6,146
343,665
14,247
19,270
Totals
£
365,805
1,123
366,928
337,519
6,146
343,665
23,263
28,286

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.

continued...

Page 22

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

13. TANGIBLE FIXED ASSETS - continued

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 £475,000 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.

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2022
Additions
Disposals
Revaluations
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
Listed
investments
£
3,105,335
566,688
(617,764)
(387,046)
2,667,213
2,667,213
3,105,335
Cash and
settlements
pending
£
48,989
30,839
-
-
79,828
79,828
48,989
Totals
£
3,154,324
597,527
(617,764)
(387,046)
2,747,041
2,747,041
3,154,324

Included in the market value of listed investments is £1,349,092 (2021 £1,514,266) which relates to securities listed outside the UK.

Included in the change in valuation for the year are £91,638 of realised losses (2021 £24,181 of realised gains) and £295,408 of unrealised losses (2021 £275,764 of unrealised gains). The historical cost of the investments held at the balance sheet date was £2,455,933 (2021 £2,476,723) and the fair value reserve relating to them was £211,280 (2021 £628,612).

Cost or valuation at 31 December 2022 is represented by:

Cash and
Listed settlements
investments pending Totals
£ £ £
Valuation in 2022 2,667,213 79,828 2,747,041

continued...

Page 23

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

15. STOCKS

Books for resale
Cabinet items for resale
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Deferred income
Accrued expenses
2022
£
2,411
9,564
11,975
2022
£
29
35,299
35,328
2022
£
25,606
4,681
6,885
163,017
18,988
219,177
2021
£
2,250
11,646
13,896
2021
£
38
31,031
31,069
2021
£
19,534
3,102
5,388
181,284
15,817
2021
£
2,250
11,646
13,896
2021
£
38
31,031
31,069
225,125

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.

At the balance sheet date deferred income amounted to £163,017 (2021: £181,284) of which none (2021: 4,491) is due after more than one year. The amount of deferred income brought forward and released during the year was £168,445 (2021: £158,188). The amount of income received during the year and included in deferred income carried forward was £150,177 (2021: £166,591). The deferred income brought forward at 1 January 2021 was £172,881.

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022 2021
£ £
Within one year 820 885

Operating lease payments totalling £1,126 (2021 £1,513) were recognised as an expense during the year.

continued...

Page 24

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Beard Memorial Lecture Fund
Laverne Fund
Fair value reserve
Restricted funds
LIGHT Production Fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Beard Memorial Lecture Fund
Laverne Fund
Fair value reserve
Restricted funds
LIGHT Production Fund
TOTAL FUNDS
At 1.1.22
£
2,509,813
1,985
1,315
628,612
3,141,725
793
3,142,518
as follows:
Incoming
resources
£
925,862
925,862
At 1.1.21
£
2,414,652
1,985
1,495
458,374
2,876,506
793
2,877,299
Net
movement
in funds
£
(324,096)
-
-
-
(324,096)
-
(324,096)
Resources
expended
£
(862,912)
(862,912)
Net
movement
in funds
£
265,399
-
(180)
-
265,219
-
265,219
Transfers
between
funds
£
417,332
-
-
(417,332)
-
-
-
Gains and
losses
£
(387,046)
(387,046)
Transfers
between
funds
£
(170,238)
-
-
170,238
-
-
-
At
31.12.22
£
2,603,049
1,985
1,315
211,280
2,817,629
793
2,818,422
Movement
in funds
£
(324,096)
(324,096)
At
31.12.21
£
2,509,813
1,985
1,315
628,612
3,141,725
793
3,142,518

Page 25

continued...

The College of Psychic Studies

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Laverne Fund
TOTAL FUNDS
Incoming
resources
£
858,514
-
858,514
858,514
Resources
expended
£
(893,060)
(180)
(893,240)
(893,240)
Gains and
Movement
losses
in funds
£
£
299,945
265,399
-
(180)
299,945
265,219
299,945
265,219

The LIGHT Production 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.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022 or for the year ended 31 December 2021.

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

At 31 December 2021 the restricted fund of £793 was represented by cash at bank of £11,474, and creditors falling due within one year of £10,681. The unrestricted funds amounting to £3,141,725 were represented by fixed assets of £3,264,213, cash at bank and in hand of £46,991, other current assets of £44,965 and creditors falling due within one year of £214,444.

Page 26