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2020-12-31-accounts

Company number: 305704 Charity Number: 216041

The Lucis Trust

Report and financial statements For the year ended 31 December 2020

The Lucis Trust

Contents

For the year ended 31 December 2020

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent examiner’s report .................................................................................................... 13 Statement of financial activities (incorporating an income and expenditure account) ................... 15 Balance sheet ............................................................................................................................... 16 Statement of cash flows ................................................................................................................ 17 Notes to the financial statements ................................................................................................. 18

The Lucis Trust

Reference and administrative information

For the year ended 31 December 2020

Status The organisation is a charitable company limited by guarantee, incorporated organisation is a charitable company limited by guarantee, incorporated
on 5 October 1935 and registered as a charity on 5 October 1935
Governing The company was established under a Memorandum of Association which
document established the objects and powers of the charitable company and is
governed under its Articles of Association last amended in December 2013.
Company number 305704
Country of incorporation United Kingdom
Charity number 216041
Country of registration England & Wales
Registered office and Suite 54
operational address 3 Whitehall Court
London
SW1A 2EF
Honorary officers Christine Morgan Chief Executive Officer
Laurence Newey Executive Officer
Principal bankers Lloyds TSB Bank Plc
Charing Cross Branch
Villiers House
48-49 The Strand
London
WC2 5LL
Independent Noelia Serrano
examiner Sayer Vincent LLP
Chartered Accountants
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL
Investment Rathbones
managers 1 Curzon Street
London
W1J 5FB

1

The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

The trustees present their report and the financial statements for the year ended 31 December 2020.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Structure, governance and management

The charity is constituted as a charitable company, governed by its memorandum and articles of association last amended in December 2013.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 in the accounts.

Recruitment and appointment of the Trustees

According to the memorandum and articles of association, every candidate for election as a member shall be proposed by one member of the Board and seconded by another member of the Board. Notice of intention to propose a candidate for election, together with the name, address and description of every such candidate, and the names of his or her proposer and seconder (being members of the Board) shall be sent to the Chief Executive Officer (C.E.O.), fourteen days at least before, who will then send to each member of the Board a copy of the notice with the name, address and description of the candidates to be proposed, seven days at least before the meeting of the Board at which the election of the proposed member will be considered.

One-third of the members of the Trustees who have been longest in office since the last election, retire from office. A retiring member is eligible for re-election unless other new members take his/her place.

The following members retired and, being eligible, offered themselves for re-election in 2020:

Christine Morgan Diana Arcache Derek Fraser

Induction and training of the Trustees

Upon the appointment of a new member, an induction pack is sent to them which consists of a copy of the London Memorandum and Articles of Association, along with a copy of the Charity Commission booklet “The Essential Trustee: What you need to Know CC3” and the “Charities Act

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

2006 – what trustees need to know”. Included is a copy of the latest accounts with Trustees’ report which sets out key statements and policies of the charity. In addition, new members are notified that they will receive Quarterly Profit and Loss and Balance Sheet management accounts when they become available. They are also kept informed by means of minutes which are circulated by the Chief Executive Officer for approval by the Board during the year.

Related parties and relationships with other organisations

The Lucis Trust in London carries out its objectives for students and co-workers in the Commonwealth - excluding Canada and the Caribbean - as well as for those in Europe who wish to work and correspond in English and Greek. Although each of the three Lucis Trust offices, London, Geneva and New York, forms an independent legal and financial entity, they share the same philosophy and objectives. They differ mainly in the language group and/or geographical area of responsibility and they co-operate, whenever practical, to co-ordinate their activities and service projects.

The separate HQ’s support each other financially as required, or sometimes share funds with each other, when receiving beneficence, such as a large legacy. During 2020 no financial support was gifted to the Geneva centre; Geneva (2019: £40,000).

Subsidiary undertaking

The Trust also owns 100% of the share capital of The Lucis Press, which is consolidated as a subsidiary. The Lucis Press sells books and other merchandise on behalf of The Trust.

Risk statement

The Trustees have thought through measures to be taken for various categories of risk. They place a high priority on the procedures for the protection of all data and especially database information. At the beginning of 2019 the Trust’s IT management was outsourced to an outside company, Hiteishee. The plan to update all computer hardware and software so that data can be moved to the Cloud and the servers dispensed with, was completed in February 2021. Hiteishee are also responsible for maintaining security and back up of all data through Microsoft Cloud Services. Business class anti-virus and anti-malware software is installed and updated daily on workstations in the London office and on home equipment, organised by Hiteishee, who also arrange Microsoft Spam filtering. Transfer of all data is encrypted prior to transfer.

Movement of our data to Microsoft Cloud Services was delayed by the advent of Covid19. Hiteishee worked diligently with staff to enable home working with VPN connection to work- stations. The transfer to Cloud then took place with the upgrade of home equipment and installation of security and virus software on home computers.

The establishment of the Arcane School online (ASMIS) has been carefully assessed in terms of data security. The ASMIS portal (website) uses an SSL (secure sockets layer) certificate to establish

3

The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

a secure connection and to encrypt the transfer of data between the web server and a browser. The Arcane School is actively searching for a back-up person for the maintenance of the school’s website to assist the person/company (Fosferon) responsible for software updates, liaising with students on ASMIS issues and maintenance work. A student of the Arcane School assisted with some of the design and layout of the School's website, however we need a qualified person to assist with maintenance issues and software support and the search is therefore ongoing.

The Trust recognised a need for assistance on employment issues and contracted The HR Department for a period of 12 months initially, as well as advising us on our ongoing legal obligations as employers HR Department assisted in the update of documentation for example contract letter of employment and Staff Handbook including GDPR and Covid19 obligations.

The Lucis Trust does not charge for any of its services and is therefore reliant on attracting voluntary donations and legacies from co-workers. The cost of running the charity is always a factor to be borne in mind and this is considered in our reserves policy. The charity does not follow traditional fund-raising activities nor does it charge membership fees.

The Lucis Trust and Arcane School protects its name through Trade Marks when feasible.

Public benefit

The Trustees have referred to the Charity Commission's ‘guidance on public benefit’ when reviewing the charity's aims and objectives and in planning its future activities. The Lucis Trust makes its educational philosophy freely available to any interested enquirers. The Trustees consider how planned activities will contribute to the charity’s aims and objectives.

Investment

Rathbones continues to operate our investment funds with a value of £1,455,742, an increase of £106,173 in 2020 comprising £72,465 increase in the portfolio and £33,708 dividends. Of the £106,173 there was £40,000 drawdown of funds and a £6,418 management fee with a net increase of £59,755.

Rathbones reported that Lucis Trust's portfolio is performing well with a return of 7.55% over the last 12 months and the balanced index produced a total return of 1.95%. This outperformance was assisted by the lack of oil and hospitality businesses in the portfolio. The portfolio continues to be well placed, and Rathbone’s view is that this should continue when lockdown ends and the situation returns to the “new normal”. There are also significant investments in technology and pharma stocks, along with green energy, which Rathbone thinks are the future. They will be looking to increase weighting in these sectors as and when appropriate. Please refer to Rathbone Annual Report.

During 2019 a Loan of £50,000 was made to Giles Hutchins of The Natural Business Partnership. The Lucis Trust supports Natural Business Partnership recognising similar aims and values to the

4

The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

Trust. The interest on the loan of 3.75% is higher than dividends achieved from our investment portfolio. The financial backing of Triodos Bank and the purchase and development of land is considered a tangible asset, which offers good surety.

Natural Business Partnership loan is maintained at cost. Land value could be temporarily adversely affected by Covid-19 but positively affected by the increase in value as a result of land and building development. Early in 2021 Natural Business increased their debt by taking an interest free Government Loan of £100,000, the implications of which were discussed at a Trustees meeting. The lockdown of Covid-19 affected Natural Partnership as the business is largely focused around physical group meetings and one on one leadership training. It was noted that business activities were taking off well before the advent of the second lockdown, but losses were reported in 2020.

The slow-down in the business allowed additional time to prepare over the year with capital investment in improvement of the land and property and preparation of activities in readiness for active participation when the business can work to it's potential. The trustees agreed to monitor the situation and the C.E.O. agreed to notify trustees with regard to the payment of interest due at the end of July. A status and financial report were supplied by Natural Partnership.

As a result of a larger drawdown from Investments in 2019, funds were available to cover expenses over 2020 with only £40,000 drawdown in 2020. Long Term investments of £9,212 are held at Santander, £2,821 in an Australian Commonwealth account. Funds continue to be drawn from our Nigerian current account reducing the balance by £14,159 to £36,475 at the end of 2020.

Fraud policy

Fraud is defined as comprising both the use of deception to obtain an unjust or illegal financial advantage and intentional misrepresentation affecting the financial statements by one or more individuals among management and staff.

The Lucis Trust, by its very nature, is committed to high ethical and moral standards and members of staff share in this commitment. The Board already has policies in place that lessen the likelihood of fraud occurring. These internal controls include standing orders, cash sheet counter checks, documented procedures for inter-company transfers and Visa payments, and the requirement of two signatures for cheques and other authorisations.

The fraud policy applies to any irregularity, or suspected irregularity, involving employees as well as consultants/other parties. Any investigative activity required would be carried out without regard to any person’s relationship to the Trust, position or length of service.

The Board is absolutely committed to maintaining an honest, open and well-intentioned atmosphere within the Trust. It is therefore also committed to the elimination of any fraud within the Trust and to the rigorous investigation of any such cases. It encourages anyone who has reasonable suspicions of fraud to report them and assures staff that they will not be penalised in

5

The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

any way for reporting reasonably held suspicions of fraud i.e. those not shown to be malicious or groundless.

Objectives and activities

Charity objects

The objects are defined in the memorandum of association as follows:

Basis and values

The Lucis Trust provides worldwide financial support for the Arcane School, Triangles and World Goodwill as well as the books of Alice Bailey through its trading company, Lucis Press. Its international activities are dedicated to the establishment of right human relations. It promotes the education of the human mind towards recognition and practice of the spiritual principles and values upon which a stable and inter-dependent world society may be based.

The Lucis Trust is non-political and non-sectarian. It sponsors no special creed or dogma.

The Lucis Trust is on the roster of the United Nations Economic and Social Council and World Goodwill is a registered NGO.

Significant activities

The pandemic and lockdown meant that all arrangements for physical public meetings had to be cancelled and replaced by virtual meetings via Zoom online. This involved reformatting all programmes and some staff training in running meetings with the new technology. This coincided with the continuing project to enable each employee to work from home during the lockdown, including the purchase of appropriate equipment where needed and involving Hiteishee, who manage our computer systems.

Because of this, the 2020 Arcane School Conference became an online programme which was extended from the usual two days to three days of 6, 7 & 8 June 2020. The meetings were well attended and due to its online presence, students and co-workers from around the world participated and interacted in the programme of talks and discussions. Being online, a feature of the conference Zooms in London, Geneva and New York was the increased participation of students worldwide, language permitting. Videos of the conference were subsequently posted on the School’s website and transcripts posted to students. The monthly public meditation meetings were also changed from physical meetings to monthly zoom broadcasts.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

The weekly Triangles webinar continued to draw an international group of participants. The presentations, given by Triangles co-workers, remain available via a special archive on the Triangles website. In 2020 the Goodwill Meditation Group webinar became a permanent fixture with its webinars being held on the last Wednesday of each month. The aim is to empower the use the Goodwill meditation and to feature the creative application of goodwill in building right relationships. The webinar hosting duties alternate between London, New York and Geneva and include a presentation, meditation and discussions with participants.

The World Goodwill Seminar on 14 November 2020 was entitled “The Spiritual Dynamics of Crisis on the Path to Global Cooperation” and an accompanying booklet of quotes and thinking on this theme was produced. Because the format of the meeting was online, its virtual nature meant that the Seminar functioned in effect as one meeting across all three centres. The London phase had a record attendance of 312 in total over the course of the meeting. World Goodwill also contributed to World Unity Week (20-27 June) and hosted two sessions – one was “Goodwill and the Spirit of Relationship” and the other involved a special edition of the Goodwill Meditation Group webinar on World Unity.

Due to the pandemic, all trips were cancelled and instead the Lucis Trust held two Zoom webinars. The first was “Humanity and the New Fire”, on September 12[th] , which led discussions on Humanity’s awakening to its place and function in a living universe. It featured the astonishing scientific discovery of an integrating power at work in the cosmos which proves that the universe is alive. The second webinar, “The Ray of Hope”, on Saturday 19 December 2020 celebrated the energies of harmony, beauty and art as a driving force in social evolution. The programme featured four student presentations and included music, creative visualisation as well as discussion.

Special acknowledgement

The Lucis Trust relies on the voluntary donations and bequests of students and co-workers. The Trustees wish to record their gratitude for the generosity of donors who ensure that the objectives of the Trust can continue to be met. No charges are made to students for tuition for the Arcane School course, and most literature is distributed freely in accordance with the principle that spiritual teachings should not be denied on the grounds of money. Students and friends of the work give as they are able, knowing that it is their responsibility to give as well as to receive.

The Trust received the following legacies within the year.

Dorothy Lewis £1,705 D J Mellin £19,500 T Chivers £10,000

Gift Aid claims from 2020 of £9,237 (2019: £9,617) plus a post-tax return on investments of £994 (2019: £1,571) are stated in debtors.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

At this point, we would like to record our gratitude to regular volunteers who came into the Trust over the year to help with mailings, their time is estimated to amount to 1 day per week. Appreciation is also extended to the member of staff whose financial circumstances enables him to give his time without recompense.

Achievements and performance

Against the background of Covid-19, many office procedures had to change and one of these was the increased use of outside agents for printing both publications and envelopes, as well as the stuffing and dispatch of posted items. A small number of staff continued to work in the office for the dispatch of books, literature and transcripts as well as for other essential work which was not possible to be done outside of the office. The computer technology needed for home working, with its attendant adjustments and technical difficulties, also made up a large part of these changes.

The Lucis Trust distributed its mailings to all co-workers on its mailing lists in print and via email in English and Greek during 2020. Special booklets were produced on the meetings to be held by the Trust over the three spiritual festivals and for the Arcane School conference and similarly for the Autumn mailing and promotion of the World Goodwill Seminar on 14 November. In order to keep in touch with co-workers as far as possible, it was decided to continue to post worldwide unless we knew of severe restrictions and despite the delays to postal deliveries due to the pandemic. The Three Spiritual Festivals advertising involved worldwide Facebook advertising using the 2020 World Invocation Day video in French, Spanish and English (total cost of £600, reaching more than 500,000 people, with over 80,000 ThruPlays.

Two issues of the World Goodwill Newsletter – “Goodwill in World Affairs” were prepared: the first was on the theme “Problems of Humanity – Solutions for the World, part 1”. It shared reflections on three problem areas – Psychological Renewal of the Nations; Children, Youth and Education; and the Churches and Organised Religion. These themes were highlighted in the book, The Problems of Humanity by Alice Bailey. The second Newsletter was “Problems of Humanity – Solutions for the World part 2”, highlighting other themes in the book namely International Unity; Economics; and the Minorities.

The Cycle of Conferences continued to focus on important conferences including the World Economic Forum meeting in Davos-Klosters, Switzerland (Jan 21-24); the International Energy Agency Clean Energy Transitions Summit online, 9 July 2020; and the 75th Anniversary of the UN and related high-level events, from 21 September to 2 October 2020. This included providing members with notifications, links for background information and visualisation outline.

The Triangles service continued to expand, with London registering around 152 Triangles this year, an average of about three Triangles each week. Just over two thirds of these are international Triangles, and in these Triangles, about 150 people are new Triangle workers. Of special interest and a new development for the worldwide planetary network of Triangles, is that about a quarter of these new members live in India and a tenth of them are in Hong Kong.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

The quarterly Triangles Bulletin and the tri-annual Esoteric Group in Triangles communication were distributed to their members by email and post. These publications were produced in both English and Greek for distribution to co-workers in the UK and the Commonwealth as well as English speakers in Europe.

Website development continued with Skype/ZOOM monthly calls to keep members of the web team in London and New York in close touch with the developer. There has been continuing development of various parts of the site. A major upgrade to the latest version of Expression Engine (v4) has been completed, and towards the end of 2020, work was ongoing on upgrading the shopping cart module, CartThrob.

In 2020 Lucis Press completed the digitisation of four Clothbound titles A Treatise on Cosmic Fire, A Treatise on White Magic, Esoteric Psychology Vol I and Esoteric Healing, and worked with a professional company to complete several production stages of the Audiobook A Treatise on Cosmic Fire.

In 2020 there was increased interest in the AAB books with an overall 50% increase on 2019 sales. Especially of note was the purchase of many complete sets of twenty-four books of Alice Bailey, a doubling of sales from the Books and Publications section of the website. Amazon and distributors in India and Australia also doubled sales over the previous year.

Total revenue in 2020 was effectively £61,209 (£63,770 less New York reallocations of £2,561). Lucis Press sold 6,692 publications which included Alice Bailey books, Audio books and CD-ROM of The Twenty-Four Books of Esoteric Philosophy (including Downloads), eBooks and books from other publishers. The year's best-selling titles were Esoteric Healing, A Treatise on White Magic and Initiation, Human and Solar.

Financial review

The value of Lucis Trust group funds decreased slightly from £2,071,700 at the end of 2019 to £2,054,937 at the end of 2020.

The amount of £2,054,937 consists of:

£1,677,689 fixed assets. The fixed assets consist of the lease of the office space and essential equipment for pursuing the aims of the charity of £171,947. £1,505,742 is currently held as longterm investments.

£76,942 stock of books, the majority of which are the books of Alice Bailey, the foundation of the teachings which underlie the work and activities of the Lucis Trust.

£282,848 bank balances, debtors £46,547 and creditors of £29,089.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

Reserves policy

Our current available funds are held in deposit accounts, with less available funds in term deposit and investment portfolios. The total funds of £2,054,937 would provide for around four years annual expenditure of around £500,000. We have been fortunate to receive exceptional legacies over several years, some of which have been shared with the Trust in Geneva and New York. The charity would find a reserve of £1,000,000 acceptable. This would cover operations sufficiently should there be any significant changes in the operation or funding of the charity. For many years expenditure has exceeded general income and it is expected that reserves will continue to be drawn upon to enable the ongoing work of the charity to proceed. We acknowledge the contribution that legacies or unexpected large donations can make to our funds.

Going concern

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the amount of assets and liabilities within the next reporting period.

As outlined in the Activities, adjustments were made in 2020 to continue the work of Lucis Trust under Covid19 restrictions. Donations were not affected and some expenditure decreased in 2020, particularly in relation to events and travel. During 2020 there was increased interest from the public in the Activities of Lucis Trust and in Lucis Press publications resulting in an increase in sales.

Plans for the future

The Trust continues with its principal activities – The Lucis publishing companies (Lucis Press), Arcane School, Triangles and World Goodwill- which form the basis of its charity and service objectives. It is not necessarily our policy therefore to constantly initiate new projects although new material is constantly offered within the existing framework as appropriate. The planned technological changes are largely in place, although all aspects are constantly reviewed, updated and developed to meet the needs of the work and of students and co-workers.

The website is continually updated with the aim of attracting new visitors and providing them with information and the opportunity to engage in its activities. It is intended to continue to redesign certain pages on the website within its existing framework, and in 2021 there will be particular emphasis on the webpages for the Wesak Festival and World Invocation Day, with plans to improve the World Goodwill website in particular.

By mid February 2021, our IT Support company had worked with every employee to ensure their pc was able to function fully in the Cloud. This means that the aim of dispensing with hardware servers was achieved.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

Following the period of lockdown, most staff plan to return to work when they have been fully vaccinated. The aim is for the staff to return to work and a phased return will be discussed with each member. Decisions about a full return to prior arrangements and operations such as the holding of physical meetings, will be made according to how developments unfold.

Statement of responsibilities of the trustees

The trustees (who are also directors of The Lucis Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial 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 these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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The Lucis Trust

Trustees’ annual report

For the year ended 31 December 2020

The Trustees

Members of the Trustees, who are also trustees under charity law, who served during the year and up to the date of this report were as follows:

Christine Morgan Diana Arcache Mintze van der Velde Derek Fraser Stephen Nation Barbara Valocore Laurence Newey Peter H Peuler

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees as at 31 December 2020 was 8 Trustees in 2020. (2019: 8). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The trustees’ annual report has been approved by the trustees on Tuesday, 8th June 2021 and signed on their behalf by

Christine Morgan Chief Executive Officer

12

Independent examiner’s report

To the members of

The Lucis Trust on the unaudited accounts

I report to the trustees on my examination of the accounts of Lucis Trust and its subsidiary undertakings for the year ended 31 December 2020.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity trustees of the Company you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of the Charities Act 2011 (‘the Act’)/Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Consolidated accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011 (‘the 2011 Act’).

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the consolidated accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement - matter of concern identified

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accounts in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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Independent examiner’s report

To the members of

The Lucis Trust on the unaudited accounts

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Name: Noelia Serrano FCA

Address: Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Date: 28 June 2021

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The Lucis Trust

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Note
Income from:
2
3
4
5
5
12
Reconciliation of funds:
21a
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds
Investments
Total income
Expenditure on:
Other trading activities
Net income/(expenditure) for the year
Total expenditure
Net expenditure before net gains on
investments
Charitable activities
Arcane School
World Goodwill
Triangles
Other restricted
Net gains on investments
Other Trading Lucis Press
Lucis Trust
Arcane School
World Goodwill
Triangles
Other Restricted
Royalties VSA
Donations and legacies
Charitable activities		 Unrestricted
£
198,901
-
-
-
-
-
64,999
35,067		 Restricted
£
-
16,606
3,608
5,153
780
392
-
39		 2020
Total
£
198,901
16,606
3,608
5,153
780
392
64,999
35,106
Unrestricted
£
142,806
-
-
-
-
-
43,999
40,128		 Restricted
£
-
43,158
10,609
9,821
650
507
-
43		 2019
Total
£
142,806
43,158
10,609
9,821
650
507
43,999
40,171
298,967 26,578 325,545 226,933 64,788 291,721
166,692
-
-
-
6,320
64,437		 -
74,588
67,156
34,731
849
-		 166,692
74,588
67,156
34,731
7,169
64,437		 238,841
-
-
-
-
55,254		 -
122,815
81,167
31,179
1,583
-		 238,841
122,815
81,167
31,179
1,583
55,254
237,449 177,324 414,773 294,095 236,744 530,839
72,465
61,518		 -
(150,746)		 72,465
(89,228)		 240,466
(67,162)		 -
(171,956)		 240,466
(239,118)
133,983
(151,108)		 (150,746)
151,108		 (16,763)
-		 173,304
(171,573)		 (171,956)
171,573		 1,348
-
(17,125)
2,039,049		 362
32,651		 (16,763)
2,071,700		 1,731
2,037,318		 (383)
33,034		 1,348
2,070,352
2,021,924 33,013 2,054,937 2,039,049 32,651 2,071,700

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21a to the financial statements.

15

The Lucis Trust

Company no. 00305704

Balance sheet

As at 31 December 2020

Note
Fixed assets:
11
12
Current assets:
16
17
Liabilities:
18
17
21a
Total unrestricted funds
Total assets less current liabilities
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Debtors: amounts falling due after one year
Investments
Cash at bank and in hand
Investments
Tangible assets
Total funds
Fair value reserve
Non-charitable trading funds		 2020
2019
£
£
171,947
184,302
1,505,742
1,445,987
The group		 2020
2019
£
£
171,947
184,302
1,505,742
1,445,987
The group		 2020
2019
£
£
171,947
184,302
1,511,770
1,452,015
1,683,717
1,636,317
-
-
31,047
27,040
12,033
16,748
258,607
337,394
301,687
381,182
28,185
46,956
273,502
334,226
1,957,219
1,970,543
61,984
65,989
2,019,203
2,036,532
33,013
32,651
117,738
120,052
1,501,199
1,558,659
367,253
325,170
-
-
1,986,190
2,003,881
2,019,203
2,036,532
The charity		 2020
2019
£
£
171,947
184,302
1,511,770
1,452,015
1,683,717
1,636,317
-
-
31,047
27,040
12,033
16,748
258,607
337,394
301,687
381,182
28,185
46,956
273,502
334,226
1,957,219
1,970,543
61,984
65,989
2,019,203
2,036,532
33,013
32,651
117,738
120,052
1,501,199
1,558,659
367,253
325,170
-
-
1,986,190
2,003,881
2,019,203
2,036,532
The charity
1,677,689
76,942
46,547
12,033
270,815		 1,630,289
89,457
28,546
16,748
351,328		 1,683,717
-
31,047
12,033
258,607		 1,636,317
-
27,040
16,748
337,394
406,337
29,089		 486,079
44,668		 301,687
28,185		 381,182
46,956
377,248 441,411 273,502 334,226
2,054,937
-		 2,071,700
-		 1,957,219
61,984		 1,970,543
65,989
2,054,937 2,071,700 2,019,203 2,036,532
33,013
117,738
1,501,199
367,253
35,734		 32,651
120,052
1,558,658
325,170
35,169		 33,013
117,738
1,501,199
367,253
-		 32,651
120,052
1,558,659
325,170
-
2,021,924 2,039,049 1,986,190 2,003,881
2,054,937 2,071,700 2,019,203 2,036,532

For the year ending 31 December 2020 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The Trustees acknowledge the following responsibilities:

These accounts have been prepared in accordance with the special provisions applicable to small companies subject to the small companies’ regime.

Approved by the trustees on 8th June 2021 and signed on their behalf by

Christine P Morgan Director

16

The Lucis Trust

Statement of cash flows

For the year ended 31 December 2020

Note
23
Purchase of mix-motive investments
Increase in cash held by investment manager
24
Net cash (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Cash flows from operating activities
Purchase of fixed assets
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities		 £
£
(111,645)
35,103
(21,396)
184,646
(171,093)
-
(843)
26,417
(85,228)
368,076
282,848
2020		 £
£
(111,645)
35,103
(21,396)
184,646
(171,093)
-
(843)
26,417
(85,228)
368,076
282,848
2020		 £
£
(233,880)
40,171
(51,254)
315,354
(153,423)
(50,000)
(2,485)
98,363
(135,517)
503,593
368,076
2019		 £
£
(233,880)
40,171
(51,254)
315,354
(153,423)
(50,000)
(2,485)
98,363
(135,517)
503,593
368,076
2019
(85,228)
368,076		 (135,517)
503,593
282,848 368,076

17

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Statutory information

Lucis Trust is a charitable company limited by guarantee and is incorporated in United Kingdom. The registered office address is Suite 54, 3 Whitehall Court, London, SW1A 2EF.

b) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The trustees have taken advantage of the reduced disclosure framework exemptions as noted in FRS 102 section 1.12.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary Lucis Press Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

The impact of Covid-19 is not considered to be a serious threat to Lucis Trust stability as sufficient funds are available to work through the implications. Staff have adapted to operate from home with minimal attendance at the office and activities are being developed through the web-site for meetings and the Arcane School Conference. As supporters return to busy lives in 2021 donations may reduce, however savings will be made on travel and meetings. Investments which have been stable during 2020 should remain so.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

18

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

Accounting policies (continued)

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £100. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Length of lease

Depreciated to amount held in reserve 5 years

19

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

Accounting policies (continued)

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Investments in subsidiaries

Investments in subsidiaries are at cost.

Mixed motive investments

Mixed motive investments are recognised at cost and reviewed for impairment on an annual basis. Natural Business Partnership loan is maintained at cost. Land value could be temporarily adversely affected by Covid-19 and positively affected with increase in value as a result of land and building development.

m) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

p) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Financial instruments

With the exception of the listed investments described above the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

r) Foreign exchange

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange on the date that the transaction or transfer takes place. Exchange differences are taken into account in arriving at the net incoming resources for the year.

20

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

2
Income from donations and legacies		 s
Unrestricted
£
169,401
29,500
198,901
3
Unrestricted
£
64,999
64,999
4
Unrestricted
£
1,359
33,708
35,067
Income from listed investments
Bank accounts
Legacies
Income from investments
Lucis Press
Income from other trading activities
Gifts		 Unrestricted
£
169,401
29,500		 Restricted
£
-
-		 2020
Total
£
169,401
29,500		 Unrestricted
£
142,304
502		 Restricted
£
-
-		 2019
Total
£
142,304
502
198,901 - 198,901 142,806 - 142,806
Restricted
£
-		 2020
Total
£
64,999		 Unrestricted
£
43,999		 Restricted
£
-		 2019
Total
£
43,999
64,999 - 64,999 43,999 - 43,999
Unrestricted
£
1,359
33,708		 Restricted
£
39
-		 2020
Total
£
1,398
33,708		 Unrestricted
£
2,738
37,390		 Restricted
£
43
-		 2019
Total
£
2,781
37,390
35,067 39 35,106 40,128 43 40,171

21

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

Charitable activities

Staff costs (Note 7)
Travel
Post and carriage
Cost of book sales
Service charge
Building costs
Insurance
Printing & stationery
Telephone & fax
Conference, seminar, meetings
Office equipment costs
Repairs and maintenance
Advertising
Legal and professional charges
Audit and accountancy
Library and media costs
Bank charges
Depreciation
Miscellaneous
Donation
Governance costs
Total expenditure 2020
Total expenditure 2019		 Lucis Press
£
20,596
-
-
32,690
-
-
-
-
-
-
-
-
1,075
-
1,495
-
304
-
552
-		 Lucis Trust
£
76,878
-
-
-
-
-
-
-
-
-
-
-
-
634
-
-
-
-
-
-		 Arcane
School
£
37,116
1,262
3,303
-
-
-
-
415
-
1,002
-
-
-
-
-
33
-
-
-
-		 World
Goodwill
£
29,360
-
6,987
-
-
-
-
4,515
-
300
-
55
-
-
-
-
-
363
-		 Triangles
£
13,450
-
7,256
-
-
-
-
2,313
-
-
-
-
-
-
-
-
-
-
-
-		 Other
Restricted
£
-
-
-
-
-
-
-
-
9
-
-
6,320
-
-
-
-
600
240		 Governance
costs
£
12,791
-
-
-
-
-
-
-
-
-
-
-
-
-
5,280
-
-
-
-
-		 Support
costs
£
-
274
12,672
27,929
13,867
2,035
10,091
3,083
-
15,178
466
545
23,317
-
253
2,271
33,752
1,846
-		 2020
Total
£
190,191
1,536
30,218
32,690
27,929
13,867
2,035
17,334
3,083
1,311
15,178
466
7,995
23,951
6,775
286
2,575
33,752
3,361
240		 2019
Total
£
214,861
9,865
35,965
24,153
23,401
18,588
1,769
21,312
3,067
22,309
18,387
1,799
1,236
35,686
5,986
548
2,338
43,982
5,587
40,000
56,712
7,725
-		 77,512
78,609
10,571		 43,131
28,025
3,432		 41,580
22,786
2,790		 23,019
10,434
1,278		 7,169
-
-		 18,071
-
(18,071)		 147,579
(147,579)
-		 414,773
-
-		 530,839
-
-
64,437 166,692 74,588 67,156 34,731 7,169 - - 414,773 530,839
55,254 238,841 122,815 81,167 31,179 1,583 - -

22

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

5b Analysis of expenditure (prior year) 2019

Charitable activities

Staff costs (Note 7)
Travel
Post and carriage
Cost of book sales
Service charge
Building costs
Insurance
Printing & stationery
Telephone & fax
Conference, seminar, meetings
Office equipment costs
Repairs and maintenance
Advertising
Legal and professional charges
Audit and accountancy
Library and media costs
Bank charges
Depreciation
Miscellaneous
Donation
Support costs
Governance costs
Total expenditure 2019		 Lucis Press
£
22,000
-
-
24,153
-
-
-
-
-
-
-
-
167
-
826
-
334
-
446
-		 Lucis Trust
£
85,470
3,851
-
-
-
-
-
-
-
-
-
-
-
317
-
-
-
-
-
40,000		 Arcane
School
£
52,028
6,014
6,512
-
-
-
-
1,940
-
16,323
-
-
-
-
-
27
-
-
-
-		 World
Goodwill
£
29,990
-
7,758
-
-
-
-
6,671
-
5,986
-
949
-
-
166
-
-
381
-		 Triangles
£
12,412
-
5,010
-
-
-
-
1,646
-
-
-
-
-
-
-
-
-
-
-
-		 Other
Restricted
£
-
-
-
-
-
-
-
-
-
-
706
-
120
-
-
-
-
757
-		 Governance
costs
£
12,961
-
-
-
-
-
-
-
-
-
-
-
-
-
5,160
-
-
-
-
-		 Support
costs
£
-
-
16,685
-
23,401
18,588
1,769
11,055
3,067
-
17,681
1,799
-
35,369
-
355
2,004
43,982
4,003
-		 2019
Total
£
214,861
9,865
35,965
24,153
23,401
18,588
1,769
21,312
3,067
22,309
18,387
1,799
1,236
35,686
5,986
548
2,338
43,982
5,587
40,000
47,926
7,328
-		 129,638
98,531
10,672		 82,844
36,311
3,660		 51,901
26,586
2,680		 19,068
11,002
1,109		 1,583
-
-		 18,121
-
(18,121)		 179,758
(179,758)
-		 530,839
-
-
55,254 238,841 122,815 81,167 31,179 1,583 - - 530,839

23

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 33,752 43,983
Independent Examiner's fee 5,855 5,710
Additional Proffesional fee 690 276

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows:

Staff costs were as follows:
Volunteer costs
Salaries and wages
Social security costs
Other staff costs and staff benefits		 2020
£
159,284
8,311
21,496
1,100		 2019
£
171,193
9,528
22,075
12,065
190,191 214,861

No employee earned more than £60,000 during the year (2019: nil).

The total employee remuneration, including employer's national insurance and pension contributions, of two key management personnel, Laurence Newey and Christine Morgan in 2020, were £42,168 combined (Two personnel in 2019: £42,394). Both these individuals are trustees of the charity. Remuneration to trustees is permitted by the charity's governing documents.

One charity trustee claimed travel expenses whilst participating in voluntary work totalling £1,100 (one Trustee in 2019: £4,885) .

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Lucis Press
World Goodwill
Lucis Trust General
Governance
Arcane School
Triangles		 2020
No.
1.89
1.55
0.71
4.10
1.08
0.67		 2019
No.
2.43
1.77
0.73
5.00
1.30
0.77
10.0 12.0

24

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

9 Related party transactions

Related party transactions between Lucis Trust and Lucis Press are:

Related party transactions between Lucis Trust and Lucis Press are:
2020 2019
£ £
Lucis Trust Publishing Grant to Lucis Press - 8,000
Debtor at year end due to Lucis Press 75 2,687
Creditor at year end due from Lucis Press (1,679) (4,525)

Lucis Trust Donation to Lucis Trust, Geneva £0 in 2020 (£40,000 in 2019).

Aggregate unrestricted donations from Trustees of £3,303 were received in the year (£3,555 in 2019).

The Lucis Trust in London carries out its objectives for students and co-workers in the Commonwealth - excluding Canada and the Caribbean - as well as for those in Europe who wish to work and correspond in English and Greek. Although each of the three Lucis Trust offices, London, Geneva and New York, forms an independent legal and financial entity they share the same philosophy and objectives. They differ mainly in the language group and/or geographical area of responsibility and they co-operate, whenever practical, to co-ordinate their activities and service projects.

The trustees incurred expenses of £1,537 relating to travel and subsistence for voluntary attendance to events relating to the charity and its objects (2019: £3,851).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Lucis Press Limited gift aids available profits to the parent charity. Its charge to corporation tax in the year was:

2020 2019
£ £
UK corporation tax at 19% (2019: 19%) 1 1
11 Tangible fixed assets
The group & the charity
The group & the charity
At the end of the year
Charge for the year
At the start of the year
Eliminated on disposal
At the end of the year
Depreciation
At the start of the year
Net book value
Cost

At the start of the year
Additions in year
Disposals in year
At the end of the year		 Leasehold
property and
improvements
£
219,925
550
-

Fixtures and
fittings
£
138,442
589
(7,785)
Computer
equipment
£
209,442
20,257
(51,739)
Total
£
567,809
21,396
(59,524)
220,475 131,246 177,960 529,681
80,135
2,386
-		 128,844
3,657
(7,785)		 174,526
27,709
(51,738)		 383,505
33,752
(59,523)
82,521 124,716 150,497 357,734
137,954 6,530 27,463 171,947
139,790 9,598 34,916 184,304

All of the above assets are used for charitable purposes.

25

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

Listed investments
2020
2019
£
£
1,393,940
1,315,405
171,093
153,423
(184,646)
(315,354)
72,465
240,466
1,452,852
1,393,940
-
-
2,890
2,047
1,455,742
1,395,987
1,088,489
1,070,817
2020
2019
£
£
1,452,852
1,393,940
-
-
Business loan - Natural Business Partnership (note 13)
50,000
50,000
2,890
2,047
1,505,742
1,445,987
Additions at cost
Disposal proceeds
Net profit on change in fair value
Fair value at the end of the year
Fair value at the start of the year
Investment in trading subsidiary
Investments comprise:
Historic cost at the end of the year
Cash held by investment broker pending
reinvestment
Cash
Unlisted shares in UK registered companies
The group
The group
UK Common investment funds		 2020
2019
£
£
1,393,940
1,315,405
171,093
153,423
(184,646)
(315,354)
72,465
240,466
The group		 2020
2019
£
£
1,393,940
1,315,405
171,093
153,423
(184,646)
(315,354)
72,465
240,466
1,452,852
1,393,940
6,028
6,028
2,890
2,047
1,461,770
1,402,015
1,088,489
1,070,817
2020
2019
£
£
1,452,852
1,393,940
6,028
6,028
50,000
50,000
2,890
2,047
1,511,770
1,452,015
The charity
The charity
1,452,852
-
2,890		 1,393,940
-
2,047		 1,452,852
6,028
2,890		 1,393,940
6,028
2,047
1,455,742 1,395,987 1,461,770 1,402,015
1,088,489 1,070,817 1,088,489 1,070,817
1,505,742 1,445,987 1,511,770 1,452,015

13 Social or mixed motive investments

Business loan as part of a group venture to purchase land for The Natural Business Partnership engaged in the development of services that benefit the social, environmental and/or ethical considerations of its corporate clients.

Lucis Press facilitates the sales and distribution of the books upon which the foundation of the Lucis Trust is based.

26

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

14 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of Lucis Press Limited, a company registered in England (company number: 338727). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

below:
Profit on ordinary activities
Turnover
Other operating expenses
Gross profit
Administrative expenses
Cost of sales
Other Income
Assets
Liabilities
The aggregate of the assets, liabilities and funds was:
Funds		 2020
£
63,770
(32,690)		 2019
£
43,680
(24,153)
31,080
(1,075)
(30,672)		 19,527
(167)
(30,934)
(667)
1,232		 (11,574)
8,325
565 (3,249)
106,405
(64,643)		 107,586
(66,389)
41,762 41,197

15 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

2020 2019
£ £
Gross income 361,328 517,510
Result for the year (17,328) 4,598

16 Stock

Stock
Finished goods 2020
2019
£
£
76,942
89,457
The group		 2020
2019
£
£
-
-
-
-
The charity
76,942 89,457 - -

27

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

17 Debtors

Trade debtors
Due after more than 1 year from subsidiary
Prepayments
Amounts due from subsidiary
Other debtors		 2020
2019
£
£
6,392
3,580
14,715
14,292
25,440
10,674
-
-
The group		 2020
2019
£
£
6,392
3,580
14,715
14,292
25,440
10,674
-
-
The group		 2020
2019
£
£
-
-
12,746
13,678
18,226
10,674
75
2,688
31,047
27,040
61,984
65,989
The charity		 2020
2019
£
£
-
-
12,746
13,678
18,226
10,674
75
2,688
31,047
27,040
61,984
65,989
The charity
46,547 28,546 31,047 27,040
- - 61,984 65,989

With the exception of listed investments, all of the charity’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in note 20a below.

18 Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Loans
Other creditors
Amounts owed to subsidiary
Accruals		 2020
2019
£
£
9,500
9,500
8,123
23,006
4,294
4,059
767
1,933
6,405
6,170
-
-
The group		 2020
2019
£
£
9,500
9,500
8,123
23,006
4,294
4,059
767
1,933
6,405
6,170
-
-
The group		 2020
2019
£
£
9,000
9,000
7,165
22,233
4,294
4,059
767
1,979
5,280
5,160
1,679
4,525
28,185
46,956
The charity		 2020
2019
£
£
9,000
9,000
7,165
22,233
4,294
4,059
767
1,979
5,280
5,160
1,679
4,525
28,185
46,956
The charity
29,089 44,668 28,185 46,956

19 Pension scheme

Fully compliant with statutory pension scheme and all payments made.

20a Analysis of group net assets between funds (current year)

Tangible fixed assets
Net assets at the end of the year
Investments
Net current assets		 General
unrestricted
£
171,947
1,505,742
226,497
Designated
funds
£
-
-
117,738
Restricted
funds
£
-
-
33,013
Total funds
£
171,947
1,505,742
377,248
1,904,186 117,738 33,013 2,054,937

28

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

20b Analysis of group net assets between funds (prior year)

Total restricted funds
Total designated funds
General charity funds
Total charity unrestricted funds
Non-charitable trading funds
Total unrestricted funds
Total funds
Fair value reserve
Public Library
World Service
Triangles
Net current assets
Tangible fixed assets
Investments
Net assets at the end of the year
Movement in funds (current year)
VSA Fund
Book/Promotion Fund
Tibetan Book Fund
Staff Benefits Fund
Tibetan Book Fund
Unrestricted funds:
Designated funds:
Arcane School
World Goodwill
Restricted funds:		 At 1 January
2020
£
-
-
-
934
1,340
120
30,257		 General
unrestricted
£
184,302
1,445,987
288,708
Designated
funds
£
-
-
120,052
Restricted
funds
£
-
-
32,651
Total funds
£
184,302
1,445,987
441,411
1,918,997 120,052 32,651 2,071,700

Income & gains
£
16,606
3,608
5,153
540
120
120
431		 Expenditure
& losses
£
(74,588)
(67,156)
(34,731)
(600)
(9)
(240)
-
Transfers
£
57,982
63,548
29,578
-
-
-
-		 At 31
December
2020
£
-
-
-
874
1,451
-
30,688
32,651 26,578 (177,324) 151,108 33,013
67,347
6,182
46,523		 -
-
20,006		 -
(6,182)
(16,138)		 -
-
-		 67,347
-
50,391
120,052
325,170		 20,006
42,083		 (22,320)
-		 -
-		 117,738
367,253
1,558,658
2,003,880
35,169		 244,341
306,430
65,002		 (150,692)
(173,012)
(64,437)		 (151,108)
(151,108)
-		 1,501,199
1,986,190
35,734
2,039,049 371,432 (237,449) (151,108) 2,021,924
2,071,700 398,010 (414,773) - 2,054,937

21a Movement in funds (current year)

A description of these funds is given beneath the following note.

29

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

21b Movements in funds (prior year)

Total restricted funds
Total designated funds
General charity funds
Total charity unrestricted funds
Non-charitable trading funds
Total unrestricted funds
Fair value reserve
Arcane School
World Goodwill
Triangles
World Service
Public Library
Tibetan Book Fund
Restricted funds:
VSA Fund
Unrestricted funds:
Designated funds:
Staff Benefits Fund
Book/Promotion Fund
Tibetan Book Fund
Total funds		 At 1 January
2019
£
-
-
-
1,331
1,876
120
29,707
Income & gains
£
43,158
10,609
9,821
360
170
120
550		 Expenditure
& losses
£
(122,815)
(81,167)
(31,179)
(757)
(706)
(120)
-
Transfers
£
79,657
70,558
21,358
-
-
-
-		 At 31
December
2019
£
-
-
-
934
1,340
120
30,257
33,034 64,788 (236,744) 171,573 32,651
72,647
6,182
43,478		 -
-
12,519		 (5,300)
-
(9,474)		 -
-
-		 67,347
6,182
46,523
122,307
85,030		 12,519
240,140		 (14,774)
-		 -
-		 120,052
325,170
1,791,563
1,998,900
38,418		 162,735
415,394
52,005		 (224,067)
(238,841)
(55,254)		 (171,573)
(171,573)
-		 1,558,658
2,003,880
35,169
2,037,318 467,399 (294,095) (171,573) 2,039,049
2,070,352 532,187 (530,839) - 2,071,700

Purposes of restricted funds

Arcane School: A correspondence course of meditation, study and service.

World Goodwill: An educational service activity which promotes right human relations and spiritual values through its publications.

Triangles: Groups of three people link in daily thought and meditation.

World Service Fund: set up in 1957 to receive and administer money donated for service work other than the specific activities for which the Lucis Trust is legally responsible but which are broadly in line with its spiritual objectives. This fund will continue indefinately. During 2019 Lucis Trust transferred £2,500 into the fund.

Public Library Fund: set up in response to donations specifically directed towards supplying books to co-workers living in areas of financial hardship and where foreign currency is not easily obtainable e.g. Russia, Eastern Europe, Africa. This year funds were used to supply students in Africa. This fund will continue indefinitely.

30

The Lucis Trust

Notes to the financial statements

For the year ended 31 December 2020

Purposes of restricted funds (continued)

The Tibetan Book Fund (TBF) (restricted donated funds and designated): is a revolving fund administered by the Lucis Trust for the publishing of books written by Alice Bailey. The TBF is a revolving fund, money is advanced to manufacture books and is returned to the Fund as the books are sold. This Fund is restricted when donations are given specifically for the reprinting of the books. However, the majority of the funds are designated where funds have accumulated from sales where the Trust initially funded the publication of the books. Monies advanced to Lucis Press is treated as a loan secured against the stock of books. A revolving fund which will continue indefinately to enable the production of the books.

VSA Fund: The Vera Stanley Alder (VSA) Fund was set up to continue the printing and the promotion of the books of the late Mrs Alder. The Lucis Trust hold copyright of all her published works. To continue indefinately while the books remain in print. Lucis Trust printed one title in 2018 which continues to be marketed by Lucis Publishing Companies.

Purposes of designated funds

Staff Benefits Fund: £80,000 was set aside before 2009. Fund balance at start and end of year was £67,347. This fund is to cover unforeseen medical or financial expenses of staff that the Council of Management deem as suitable to receive assistance. It may also include payments to retired staff who experience financial hardship. The fund will continue while funds are available to replenish and indefinitely as required.

Book/Promotion Fund: A transfer from Tibetan Book Fund in 2004 set aside to enable promotion and distribution of the books. In 2020 the fund of £6,182 was used to contact a sound technician to produce the Audiobook A Treatise on Cosmic Fire. This fund is now depleted.

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

23 Reconciliation of net (expenditure) to net cash flow from operating activities

Net cash (used in) operating activities
Net (expenditure) / income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Gains on investments
Dividends, interest and rent from investments
Decrease/(increase) in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors		 2020
£
(16,763)
33,752
(72,465)
(35,106)
12,515
(17,999)
(15,579)		 2019
£
1,348
43,983
(240,466)
(40,171)
(5,429)
3,874
2,981
(111,645) (233,880)

24 Analysis of cash and cash equivalents

Cash at bank and in hand
Short term investments
Total cash and cash equivalents		 At 1 January
2020
£
351,328
16,748
Cash flows
£
(80,513)
(4,715)		 Other changes
£
-
-		 At 31
December
2020
£
270,815
12,033
368,076 (85,228) - 282,848

31