# **ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023** # **THE INTERNATIONAL HERMENEUTIC SOCIETY** **CHARITY REGISTRATION No: 263101** Castle View Accounting Ltd Ground Floor Offices 53 High Street Arundel West Sussex BN18 9AJ ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **CONTENTS** |Page 3|Legal and Administrative Information| |---|---| |Pages 4 to 7|Trustees' Report| |Page 8|Independent Examiner's Report| |Page 9|Statement of Financial Activities| |Page 10|Balance Sheet| |Pages 11 to 19|Notes to the Financial Statements| 2 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **CHARITY NUMBER** 263101 **DATE OF REGISTRATION** 23rd September 1971 **START OF FINANCIAL YEAR** 1st November 2022 **END OF FINANCIAL YEAR** 31st October 2023 **TRUSTEES AT 31ST OCTOBER 2023** Ken Lowe Derek Murray Janet Norwood Sara Goode Christian Hanschug Richard Freeman (Resigned 9th September 2023) Naomi O'Toole (Resigned 5th December 2023) **LEGAL STATUS** Unincorporated Charity ## **GOVERNING INSTRUMENT** Rule Adopted 23rd September 1971, as Amended 24th January 1999, as Amended 28th January 2001, as Amended 26th January 2003, as Amended 31st January 2016, as Amended 7th October 2018, as Amended 20th March 2022, as Amended 29th January 2023. ## **OBJECTS** To promote research and study into spiritual psychological and scientific knowledges for the purposes of discovering principles for the practical improvement and spiritual and physical well-being of mankind and to teach and otherwise provide facilities for the dissemination to the public of the results of such research and study and for that purpose to provide libraries study centres and other suitable places where such research study teaching and dissemination as foresaid may be conducted or carried on. **CORRESPONDENCE ADDRESS** Tan Y Garth Hall Pontfadog Llangollen LL20 7AS **PRIMARY BANKERS** TSB Bank Plc Henry Duncan House 120 George Street Edinburgh EH2 4LH **INDEPENDENT EXAMINERS** Castle View Accounting Ltd Ground Floor Offices 53 High Street Arundel West Sussex BN18 9AJ 3 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2023** At the end of the year the charity found itself back where it was just before Covid struck. In brief, we still needed to come up with a new sustainable business model as the basis for investment. It has been a long and difficult journey to get back to this point, a point which was challenging enough pre Covid. Although we have previously reported on these developments, it is relevant to briefly review that journey between these recurring points as it provides the context for the past year. Our old business model had failed which led to the collapse of the charity approximately seven years ago. The Council of Trustees was replaced by new members who, whilst continuing to run a full events programme, developed and implemented a three year strategic plan. Year one was a rescue operation to get Tan-y-Garth Hall fully operational again. In year two we tried out new ideas for diversification of income. In year three we developed the first draft of a long term Business Development Plan (BDP) with the aim of making the business case for raising investment finance. Most of the new ideas tried were successful, but lack of capacity was a key barrier to implementing them simultaneously. Success only created more work without the people to do it. This only confirmed what we already knew, it was not sustainable without more people. In the first draft of the BDP we envisaged five full-time equivalent people to run the Hall. When we ran revenue projections for these, we saw the need to push hard in exploiting the growing opportunities in the corporate wellbeing market. On further reflection we realised this approach would probably result in losing the essence of the charity’s work. We therefore decided to seek a more organic path of development in the second draft of our BDP. During the process of writing this we were hit by a triple “whammy”, which forced the closure of our retreat activities at the Hall. In January 2020 the roof failed during severe storms rendering most of the guest bedrooms unusable. In February, Covid hit followed by lockdown in March. By April we reached our deadline for completion of the Fire Risk Assessment remedial measures, which were essential to the continued operation of the Hall. These three factors combined to threaten the immediate survival of the centre and forced us to suspend work on the BDP whilst we addressed them. After a year of struggle, we devised and implemented a three year Covid Recovery plan financed by the sale of unused assets. Most of the key objectives for years one and two of the new plan were achieved, but not all of them. Apart from surviving and other achievements, we managed to return to holding residential retreats post Covid after a two year break. We raised enough finance to undertake extensive roof repairs and fit a fire alarm as well as develop our outdoor facilities. We achieved breakeven on our trading and restored our working capital whilst growing the 18-50’s membership and positioning the charity for future growth. However, despite these achievements we did not manage to; achieve sufficient return on our grant raising investment to pay off our Covid loans, develop a long term fundraising strategy, incorporate the charity, accelerate green and eco-developments or build the Hall’s core residential team from two to four people. This left us in need of a means to organically transition out of the recovery plan back into business development mode during the course of the past year. Our Lottery grant funded programme, Covid Recovery for All, gave us an opportunity to do this if we could develop it into a new wellbeing programme to sit alongside and compliment the charity’s existing programme. The key difference being that it was to be delivered by professional paid staff. We developed and piloted this in the first quarter of the year (October - Dec 2022) and launched in the second quarter from January 2023. Although it started well, and more than doubled our course revenues by the end of the whole year, they were not sufficient to fully fund paid staff as we went along. This resulted in some of the practitioners providing their services for free and the two Hall residents doing the catering work on top of their existing workload. By May, this had stretched our capacity beyond its limits. This had knock-on effects for all of the charity’s other activities for the remainder of the year. By June the situation worsened as the cost of living crisis bit into attendances on all of our retreats. It also produced above inflation increases in all of our key areas of expenditure including; property maintenance, housekeeping, utilities, insurances and transport, which we were not able to fully compensate for with prices rises of our own. Revenue from Airbnb accommodation rentals simultaneously evaporated. This trend progressed for the remainder of the year and resulted in a crisis by August 2023, at which point it was necessary for several retreats and fund-raising events to be cancelled so that our key worker could go on sick leave in October. Despite these difficulties and setbacks, the charity still managed to achieve some worthwhile outcomes in the year overall:- 4 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **TRUSTEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** Seven of the ten planned IHS retreats took place along with two one day retreats on Perennial Philosophy, (which were videoed for later distribution on-line). Five of the planned nine wellbeing retreats ran successfully as well as three volunteer working days, plus a volunteer’s Christmas party and the AGM. A large part of the lost income from Airbnb was mitigated by a directly negotiated ten day booking. Membership remained stable, down one to sixty nine, with the loss of older members (most notably founder member Gordon Smith), being balanced by new ones. The slow progress of the Friends of Tan-y-Garth Hall scheme halted and went into reverse as several subscribers cancelled due to the cost of living crisis. Despite this, overall membership fees were significantly up on the previous year due to three members taking out life memberships. The Council of managing trustees met nine times formally during the year and twice informally, all but one via Zoom video conference. Six managing trustees served with Christian Handschug as Chairman, Sara Goode as Vice Chair and Derek Murray as Secretary. Richard Freeman resigned towards the end of the year due to a conflict of interests with his role as Treasurer of the Eugene Halliday Association, shortly followed by Naomi Jennings-O’Toole at the end of the year. This left Ken Lowe as the other remaining trustee maintaining a quorum of four at the year end. Mindful of the disruptive impact on policy resulting from a relatively high churn of trustees since the Covid pandemic began, the Council decided to look to recruit only one new member by the AGM. The year saw significant administrative development with the transition from a manual spreadsheet-based method of bookkeeping, to an online accounting package provided by QuickBooks. This involved a large amount of extra work in the year which was managed and undertaken by Sara Goode with help from our retiring bookkeeper Graham Young. The transition was facilitated by a small grant from the Freeman family trust which paid for a portion of the extra time needed, the rest being done on a voluntary basis. After some difficulty, the transition was successfully completed by the end of the year. Although it resulted in the time savings in bookkeeping that were anticipated, the extra work involved in bedding in the new system and methodology, combined with a lack of compatibility with our method of cash-flow forecasting, created unanticipated problems. This resulted in a slower turnabout of monthly figures and less frequent reporting. At the time the reporting year ended, we were giving high priority to improving reporting and resolving this problem in the coming year. Despite the many difficulties faced during the year we were still able to put significant resources into maintaining and developing the infrastructure of the Hall and its grounds. A full electrical inspection was undertaken and all remedial work needed was carried out, thus completing the last major item and related cost required by our fire risk assessment. The second part of our wood storage area was rebuilt in its new location and the driveway parking area was restructured to facilitate the workflow to keep them supplied with wood. Thus moving us towards our green energy objectives. In the process, several dead trees were removed from the car park opening up the view across the valley whilst extending the parking area and providing two flat parking spaces for camper vans. A work area was created from the derelict upper stretch at the top of the driveway along with a disabled parking area on the terrace, all of which were surfaced in loose stone. Ongoing repairs to the roof were undertaken, the meditation room was redecorated and the second office was refurbished. The Dovecot roof was replaced and the surrounding knot garden area renovated with the addition of an outdoor electricity supply (in this and two other locations) to create a potential spa area. With the loan of a hot tub and the purchase of an inflatable cold pool, we were able to test the market potential for this type of facility during the summer. Following a request for help from a local church we hosted a Ukrainian refugee for three months. The cost of this was covered by her own voluntary work helping with cleaning the Hall and a cash donation from one of our members. This was later followed by another urgent request, this time from the Eugene Halliday Association in Manchester, to house their collection of books and tapes. 5 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **TRUSTEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** Despite the very short notice, due to the closing of their existing storage facility, the request was quickly agreed because it was already part of our established plan to develop our relationship with them by them becoming an anchor tenant at the Hall. However, once the books arrived it became apparent the space needed to store them was far greater than what was envisaged and the level of rent we had long budgeted for, was more than they were prepared to pay. This lead to a strain in our relationship which was eventually eased by the EHA making a donation equivalent to a year’s rent at the level we had requested. This provided a breathing space for us to find a long term solution agreeable to both parties. It also resulted in the aforementioned resignation of one of our trustees. As a result of funds donated by the Freeman family trust, we were able to increase the amount of paid freelance staff to support the maintenance and administration of the Hall and to extend this into the area of marketing support for half a day per week. This allowed us to do a variety of things including listing on a dedicated retreat website, sustained social media marketing and advertising, and refreshing our website. Although initial results were encouraging their impact diminished as the cost of living crisis deepened. Most importantly it made us realise that we needed to change our whole approach from each event being unique, to having a singular signature offering at the core of our marketing. In essence it reminded us that we still needed to fundamentally rethink our business model as this was at the heart of the original collapse and BDP going forward. Despite the extra freelance staff helping with maintenance, administration and marketing, our volunteers remained the lifeblood of the charity’s work in every area including; teaching, catering, maintenance, wood cutting, administration, cleaning, governance, marketing, event planning and management. Given that grant support for freelancers ran out at the end of the year in October 2023, and even a doubling of course income was not sufficient to replace it, it is clear that volunteers will remain fundamental to the sustainability of the charity for the foreseeable future. Add to this the ongoing crisis brought on by the cost of living rises, the challenges for the charity remain formidable and its future is not yet secured. However, these challenges remain the same as they were before the triple whammy of roof, Covid and fire alarm. Whilst the attempt to organically develop the covid recovery programme into a sustainable professional wellbeing programme during the year ultimately floundered on the rocks of the cost of living crisis, it did serve to focus our minds and confirm what we already knew before Covid. We still need to come up with a business development plan that makes the case for investment on the scale needed for long-term sustainability, i.e. BDP v.3. It remains the case that we either succeed in doing this or we have to sell the Hall and do something else. However, having returned to our pre-pandemic point, we are wiser for the journey and now have a much better idea of what the new business model needs to be based around, in particular, the need to have a stable core income from rentals e.g. by developing eco lodges. Whilst we know we need to go back into business development mode to achieve this, we also know that we need to find a way to create a six month period to put this together as we do not have sufficient capacity to run a retreat programme at the same time. Furthermore the Trustees recognise the need to put together a team during the coming year that can help with the skills needed, including; business planning skills, market research, planning applications, eco developments, project management, marketing and yoga retreat developments. For this we will need to call on our supporters past, present and future from both inside and outside the charity. We also accept that we will have to find ways to support the charity through the cost of living crisis and through the business development period needed, from other sources of income. We accept that this means continuing our long-term policy of using the strength of our balance sheet within prudent limits to support the development of the centre. 6 THE INTERNATIONAL HERMENEUTIC SOCIETY TRU8TEE*ANNUAL RepoRT IContlnu•dl FOR THE YEAR ENDED 31ST OCTOBER 2023 Trysl•w' R*pon￿lIttl L•w the Gar￿81￿ kn•¢*od A¢ttoJnt¥¥ PrbKi*B (WI Fir•K•l StoThtsd IW2.. Th8 FITh￿￿1 R•wtirq St8rthr¢ •Wtat40 intts UK of Ir•1￿￿ IUThW knf*JntirwJ Practtel. Charltt8s Act 2011 Wr• tru*ws to aat•n*rts tor finwK4* give 8 true f* crf Iho stat• of 4ff•'rn of ￿ CIO aTra cl tr* wrFkn crf cl tr• QO lty Fwb)J. kn F¥ep8rfrvJ fin￿&•1 £41 thqlr b•hlltsyTnJ•ts•......... ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS** Report to the trustees/ members of The International Hermeneutic Society on the accounts for the year ended 31st October 2023 set out on pages 9 to 19. ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the Charities Act, - to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention ## **Basis of independent examiner’s statement** My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention: 1. which gives me reasonable cause to believe that in, any material respect, the requirements: - to keep accounting records in accordance with section 130 of the Charities Act; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. K. Collaku MAAT Castle View Accounting Ltd Ground Floor Offices 53 High Street Arundel West Sussex BN18 9AJ Date: 21st August 2024 8 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST OCTOBER 2023** |**Notes**
**INCOMING RESOURCES**
**Incoming Resources from Generated Funds**
Donations, Grants & Legacies
**3a**
Charitable Activities
**3b**
Activities for Generating Funds
**3c**
Other Incoming Resources
**3d**
**TOTAL INCOMING RESOURCES**
**RESOURCES EXPENDED**
**Costs of Generating Funds**
Cost of Charitable Activities
**4a**
Governance Costs
**4b**
**TOTAL RESOURCES EXPENDED**
**NET INCOMING (OUTGOING) RESOURCES**
Funds Brought Forward
Profit on Disposal of Fixed Assets
Transfer Between Funds
**5**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2022/23**
**2021/22**
£
£
£
£
12,409
6,120
18,529
28,919
39,201
-
39,201
20,103
218
-
218
3,511
899
-
899
99
**52,726**
**6,120**
**58,846**
**52,632**
59,277
13,327
72,604
65,656
1,325
-
1,325
4,495
**60,602**
**13,327**
**73,929**
**70,151**
**(7,876)**
**(7,207)**
**(15,083)**
**(17,519)**
754,637
6,807
761,444
726,913
-
-
-
52,050
(400)
400
-
-
**746,361**
**-**
**746,361**
**761,444**| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 11 to 19 form part of these financial statements. 9 THE INTERNATIONAL HERMENEUTIC SOCIErY BALANCE SHEET AS AT 31ST OCTOBER 2023 Tothi 314)¢t42 FuTrJ8 314lct.23 Flx•d A•8•t• Tang￿8 Ass8ts Investments Tat•l Flx•d A•••l• n2.451 7T2,451 T13270 Tf2.451 773.270 6.(￿1 10.750 18.810 6,￿1 lo,7￿) 16.810 Cash at Bank an(J In H• 13.924 13,924 10,¥XK) 10,Lfl) 10.750 NEf CURRENT A88Ers 15.910 5,910 1174 TOTAL A8SET8 rA*r•it Ilat4llle8 7rn361 TI8.301 7T(444 10 15.C NET AS8ET3 741301 746,361 761,444 otth• Ctr*rlty Gonor81 FU￿1$ 746.361 746.361 754,837 8A07 T¥)tal Funds 7￿301 781,444 Apwo¥wJ trytMTrusts8son....................... .............. .. Shan•J boMNby Tm•t•• ........ Prmted N8fT*: ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **1. ACCOUNTING POLICIES** ## **Basis of Preparation & Assessment of Going Concern** ## **Basis of Preparation** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015) (Second Edition, effective 1st January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011. The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. ## **Assessment of Going Concern** Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. ## **Incoming Resources** ## _**Recognition of Incoming Resources**_ These are included in the Statement of Financial Activities (SOFA) when: ▪ the charity becomes entitled to the resources; ▪ the trustees are virtually certain they will receive the resources; and ▪ the monetary value can be measured with sufficient reliability ## _**Incoming Resources with Related Expenditure**_ Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA. ## _**Grants and Donations**_ Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources. ## _**Tax Reclaims on Donations and Gifts**_ Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate. ## _**Contractual Income and Performance Related Grants**_ This is only included in the SOFA once the related goods or services has been delivered. ## _**Gifts in Kind**_ Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable. ## _**Donated Services and Facilities**_ These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received. ## _**Volunteer Help**_ The value of any voluntary help received is not included in the accounts. ## _**Investment Income**_ This is included in the accounts when receivable. ## _**Investment Gains and Losses**_ This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year. 11 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **1. ACCOUNTING POLICIES (continued)** ## **Expenditure and Liabilities** ## _**Liability Recognition**_ Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. ## _**Governance Costs**_ Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters. ## _**Grants with Performance Conditions**_ Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output. ## _**Grants Payable without Performance Conditions**_ These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity. ## _**Investments**_ Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value. ## _**Unrestricted funds**_ These funds can be used for the general objectives of the charity as set out in the trustees report. The movements of the unrestricted funds are given in the Statement of Financial Activities. ## _**Restricted funds**_ These funds are where the donor has specified a purpose for the donation made. These restrictions often arise as a result of appeals for special offerings for specific purposes. ## _**Designated funds**_ These funds are funds set aside by the trustees out of unrestricted general funds for particular purposes or projects. ## _**Fixed Assets**_ Fixed Assets are capitalised if they can be used for more than one year and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt. ## _**Depreciation Expense**_ Depreciation is calculated at a rate to write off the cost of tangible fixed assets over their estimated useful lives. The rates applied are as follows: Fixtures, Fittings and Equipment 25% - Reducing Balance Motor Vehicles 25% - Reducing Balance ## _**Amortisation**_ No amortisation is charged to freehold Land and Buildings as the Land and Buildings is maintained to such a standard that the estimated residual value is not less than cost. ## _**Changes in Accounting Policies and Methods of Accounting**_ There has been no change to the accounting policies (variation rules and methods of accounting) since last year. 12 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **2. TANGIBLE FIXED ASSETS** |Cost
01-Sep-22
Additions
Net Book Value
31-Oct-23
Depreciation
01-Sep-22
Charge
Depreciation at
31-Oct-23
Net Book Value
31-Oct-23
Net Book Value
31-Oct-22|Land &
Motor
Equipment
**Total**
Buildings
Vehicle
Cost
**2022/23**
£
£
£
£
770,000
2,695
2,339
775,034
-
-
-
-
770,000
2,695
2,339
775,034
-
1,179
585
1,764
-
379
440
819
-
1,558
1,025
2,583
**770,000**
**1,137**
**1,314**
**772,451**
**770,000**
**1,516**
**1,754**
**773,270**| |---|---| The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st October 2023 : None 31st October 2022 : None 13 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **3. INCOMING RESOURCES** |**a) Donations, Grants & Legacies**
Gifts & Donations
Grants Received
Membership Subscriptions
**b) Charitable Activities**
Accommodation Income
Courses
Tapes & Publications
**c) Activities for Generating Funds**
Fundraising Income
Venue Hire
**d) Other Incoming Resources**
Sundry Income|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2022/23**
**2021/22**
£
£
£
£
8,567
-
8,567
8,753
-
6,120
6,120
18,000
3,842
-
3,842
2,166
**12,409**
**6,120**
**18,529**
**28,919**
17,373
-
17,373
10,524
21,538
-
21,538
9,512
289
-
289
67
**39,201**
**-**
**39,201**
**20,103**
218
-
218
3,301
-
-
-
210
**218**
**-**
**218**
**3,511**
899
-
899
99
**899**
**-**
**899**
**99**| |---|---| 14 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **4. RESOURCES EXPENDED** |**a) Cost of Charitable Activities**
Advertising & Publicity
Bank Charges
Cleaning Costs
Depreciation Expense
Equipment Costs
Freelance Contractors
Fundraising Costs
House Keeping Costs
Insurance Costs
Motor Vehicle Costs
Printing, Postage & Stationery
Rent & Rates
Repairs & Maintenance
Sundry Expenses
Tapes & Publications
Telephone Costs
Travel & Subsistence
Utility Costs
Volunteers Expenses
`
**b) Governance Costs**
Independent Examiners Fees
**9**
Legal & Professional Fees
Loan Interest|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2022/23**
**2021/22**
£
£
£
£
1,134
226
1,360
1,203
342
-
342
-
1,998
-
1,998
1,771
819
-
819
1,090
1,136
84
1,220
1,271
5,432
9,733
15,165
6,710
-
-
-
4,837
5,399
-
5,399
4,280
6,244
-
6,244
5,405
2,569
-
2,569
2,088
327
-
327
183
4,434
186
4,620
4,788
17,582
3,097
20,679
21,985
350
1
351
225
-
-
-
97
941
-
941
1,017
346
-
346
529
9,882
-
9,882
8,177
344
-
344
-
**59,277**
**13,327**
**72,604**
**65,656**
900
-
900
750
425
-
425
3,295
-
-
-
450
**1,325**
**-**
**1,325**
**4,495**| |---|---| 15 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **5. RESTRICTED FUNDS** ## **CURRENT FINANCIAL YEAR** |National Lottery Community Fund
Freeman Charitable Trust
**PREVIOUS FINANCIAL YEAR**
National Lottery Community Fund
Freeman Charitable Trust|**Balance**
**Balance**
**01-Nov-22**
Income
Expenditure
Transfers
**31-Oct-23**
£
£
£
£
£
2,513
-
2,513
-
-
4,294
6,120
10,814
400
-
**6,807**
**6,120**
**13,327**
**400**
**-**
**Balance**
**Balance**
**01-Nov-21**
Income
Expenditure
Transfers
**31-Oct-22**
£
£
£
£
£
-
10,000
7,487
-
2,513
-
8,000
3,706
-
4,294
**-**
**18,000**
**11,193**
**-**
**6,807**| |---|---| The Restricted funds held are wholly represented by the Charity's cash reserves are to be expended as specified above. 16 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **6. INVESTMENTS** The Charity held no fixed assets investments during this or the previous financial year. ## **7. CASH AT BANK AND IN HAND** |Cash at Bank & in Hand|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Oct-23**
**31-Oct-22**
£
£
**£**
**£**
10,750
-
10,750
13,924
**10,750**
**-**
**10,750**
**13,924**| |---|---| ## **8. DEBTORS AND PREPAYMENTS** |Sundry Debtors
VAT Recoverable|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Oct-23**
**31-Oct-22**
£
£
**£**
**£**
1,622
-
1,622
-
4,439
-
4,439
-
**6,061**
**-**
**6,061**
**-**| |---|---| ## **9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Independent Examiners Fees
Member Loans|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Oct-23**
**31-Oct-22**
£
£
**£**
**£**
900
-
900
750
10,000
-
10,000
10,000
**10,900**
**-**
**10,900**
**10,750**| |---|---| ## **10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR** |Bridging Loan
Member Loans
Rental Deposits|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Oct-23**
**31-Oct-22**
£
£
**£**
**£**
15,000
-
15,000
15,000
12,000
-
12,000
-
5,000
-
5,000
-
**32,000**
**-**
**32,000**
**15,000**| |---|---| During the previous financial year, the Trustee of The International Hermeneutic Society agreed to obtain a Bridging Loan from Mr P. Richards to assist with supporting the short term cashflow requirements in furtherance of the Charitable objects. The loan will become payable when the Charity has sufficient resources to settle outstanding liabilities and the short term loan has been taken at a rate of 3% payable per annum. Mr P. Richards has waived the payment of any interest during the financial year. 17 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **11. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Tangible Fixed Assets
Net Current Assets
Long Term Liabilities
**TOTAL FUNDS**|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Oct-23**
**31-Oct-22**
£
£
£
£
772,451
-
772,451
773,270
5,910
-
5,910
3,174
32,000
-
32,000
15,000
**746,361**
**-**
**746,361**
**761,444**| |---|---| ## **12. STAFF COSTS AND NUMBERS** The Charity employed no members of staff during this or the previous financial year. ## **13. PAYMENTS TO TRUSTEES AND OTHER RELATED PARTIES** During the financial year Trustee Derek Murray received £15,600 (2021/22:£7,800) in benefits in kind for boarding and lodging costs in his capacity as General Secretary & Resident Building Custodian in furtherance of the Charitable objects. Trustee Derek Murray made voluntary rent contributions of £4,770 (2021/22:£4,200) in the year. During the financial year the Charity obtained a short term interest free loan of £10,000 from Trustee Derek Murray to support the short term cash flow requirements of the International Hermeneutic Society in furtherance of the Charity's objects. During the financial year Trustee Derek Murray provided the Charity with a loan of £12,000 at Bank of England base rate plus 0.5% (current year total 5%) subject to annual review, enabling the capital and maintenance works for business development purposes in furtherance of the Charity's objects. The loan has been provided over a three year period and all conflicts of interest have been managed and documented in accordance with the Charity's Governing document. During the financial year the Charity repaid the interest free loan of £10,000 taken from Trustee Janet Norwood. The loan was provided in the previous financial year to support the short term cash flow requirements of the International Hermeneutic Society in furtherance of the Charity's objects. During the financial year Trustee Sara Goode received £4,544 (2021/22:£866) for providing freelance administrative services, marketing services and workshop practitioners services for The International Hermeneutic Society in furtherance of the Charity's objects. During the financial period Matthew Donnachie (Partner to Trustee Sara Goode) received £11,854 (2021/22:£2,495) for providing building and maintenance services and practitioners services for The International Hermeneutic Society in furtherance of the Charity's objects. No other payments were made to the Trustees or any persons connected with them during this financial year. No other material transaction took place between the organisation and a Trustee or any person connected with them. ## **14. RISK ASSESSMENT** The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. 18 ## **THE INTERNATIONAL HERMENEUTIC SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST OCTOBER 2023** ## **15. RESERVES POLICY** The Trustees have considered the level of reserves they wish to retain, appropriate to the Charity's needs. This is based on the Charity's size and the level of financial commitments held. The Trustees aim to ensure the Charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily. ## **16. PUBLIC BENEFIT** The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the Charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the Charity should undertake. 19