**Charity number: 294638**
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **COUNCIL'S REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Council and advisers**|1 - 2|
|**Council's report**|3 - 6|
|**Independent examiners report**|7|
|**Statement of financial activities**|8|
|**Balance sheet**|9|
|**Statement of cash flows**|10|
|**Notes to the financial statements**|11 - 23|
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS COUNCIL AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023**
|**Council**��� ����� �����|_��������� �_|_�������� �����_|_����_|_�������_|_���_|_� �������_|_������ ������� �������_|
|---|---|---|---|---|---|---|---|
|������� ����������|_�������� �_|_������ ��� �����_|_�� ��_|_����� �_|_��_|_�����_||
|��� ��� ���� ��� ���� ���������|_���������_|_��� ���������_|_������_|_�����_|_���_|_�������_|_���������� ������������_|
|������� ���������������|_������ ��_|_��� ����� �� ���_|_���_|||||
|��� ������ ������ ���|_������� �� �_|_������ ���������_|_�����_|_��������_|_��_|_������ ��_|_��� ��������� ���������_|
|������� ���������������||||||||
|��� ��� ���� ��� ���� ������������|_���������� ����� ����������_||_����_|_�� ����_|_���_|_���� �� �������_||
|������� ����������||||||||
|��� ��� ���� ��� ���� ������� ��|_������ ��_|_���� �� ������_|_����_|_��� �_|_��_|_�������_|_��������� ������ ������_|
|�����������|_������ ����_|_��� �����������_|_� ���_|_����� �_|_� �_|_�� ������_|_��������� �������� ������_|
||_����������_|_��������������_|_�����_|_�������_|_��_|_���������_|_�����������������������_|
||_�������� �_|_� ��� ���������_|_�� ���_|_�� ����_||||
|��� ������� �����|_������ ��_|_��� ������� ��_|_��� �_|_��� ���_|_���_|_� ������ ������������� �������� ��_||
|�����������|_���� ������_|_��� ��� ������ ��_|_����_|_�����_|_� �_|_� ��������_|_� ��������� �� ��� �����_|
||_�������� ��_|_���� ����� �����_|_��� �_|_� ����_|_��_|_��������_|_�� ��������� ������ �����_|
||_�� ��������_|_������ ������ �_|_������ ����_||_��_|_���� ����_|_� ��� ���� ������� �� ���_|
||_����� �����_|_�� ����_||||||
|��� ��� ��������|_������_|||||||
|��� ������� �����|_������ ���_|_������ ������ �_|_�����_|_�������_|_�� �_|_��� �����_|_� ������ �� �����������_|
||_������ ��_|_������ �������_|_���_|_������_|_���_|_� ���� �_|_��� ������ ����������_|
||_�����������_|_�� �������� ����_|_������_|_�_||||
|��� ����� �������� ���|_���������� �_|_�������� ��������_|_� ���_|_������_|_�� �_|_����� ���_|_������ ��� ��� ���������_|
||_��������� �_|_��������� �����_|_��� �_|_������_|_���_|_� ������������ ������ �����������_||
||_��������� �_|_�������� �����_|_�� �_|_�������_|_��_|_������ ������ �������� ��������_||
||_�����������_|||||||
|��� ����� ����_���� �����_|_��������� �_|_�� �����������_|_�� ��_|_����� �_|_���_|_��� �����_|_���� ������� ��� �������_|
||_�������� ��_|_�������� ������_|_�����_|_� �����_|_� ����� ���_||_�� ������� ����� ��� ���_|
||_����� ���_|_���� ������ �_|_������_|_��� ���_|_��_|_���� ���� ������ ������� �������_||
||_�������_|||||||
|��� ���� ������ ���|_��������� ������� ���� ��_||_�����_|_�� ����_|_� � �������_||_� ��������� �� ���������_|
||_����������_|_������� ������� ���_||_� ����_|_���_|_��� �����_|_����� ����� ���� ������_|
||_����������_|_������ ��� �����_|_�� ��_|_����� ��_|_������ �����_||_�����_|
|��� ���� ������� ���|_���������_|_��� �� ������ �� ��_|_� ��_|_�������_|_� ��_|_� �������_|_�_|
|��� ������ �������� ���� ����|�������� ��|��� ����� �������|�� �|��������|�_�_|_�������� ��_|_��� ��������� ������ ���_|
||_������ ����_|_����� �� �����_|_��_|||||
|��� ������� ����������||||||||
||_������� �_|_������������ ��_|_�����_|_�������_||_��������_|_���� ���������� �������_|
||_�� ��������_|_� ������� ����_|_�� ���_|_�����_|_����_|_��� �� ��_|_��_|
|��� ����������� ���������� ���� ���� ��|_������� �_|_�������� ������_|_�� ��_|_������_|_��_|_� �����_|_�� ��� ����������� ������_|
||_������ ����_|_����� �����������_|_�� ���_|_�������_|_�_|||
|**Charity registered number:**|294638|||||||
|**Principal Office:**|Magnesia|House||||||
||6 Playhouse Yard|||||||
||London|||||||
||EC4V 5EX|||||||
|**Clerk to the council:**|Simon Doughty|||||||
Page 1
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS COUNCIL AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
**Accountants:**
**Independent Examiner:**
Berg Kaprow Lewis LLP 35 Ballards Lane London N3 1XW Stephen Meredith FCA DChA Alliots LLP 13-21 High Street Guildford Surrey GU1 3DL
Page 2
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **COUNCIL'S REPORT FOR THE YEAR ENDED 31 MARCH 2023**
## **COUNCIL’S REPORT**
The Council, as trustees of the Charity, are pleased to present their report and the audited financial statements for the year ended 31 March 2023 The financial statements have been prepared in accordance with the accounting policies set out on page 13 and comply with the charity's deed and applicable law.
## **History**
The founding of The Imperial Society of Knights Bachelor (‘The Society’) was triggered by a legal action against the Walker Trustees in Edinburgh who, as holders of the office (originally by purchase) of Usher of the White Rod under the Walker Trust Act of 1877, claimed entitlement to certain dues from those persons receiving honours from the Crown. Many Knights objected to this. In 1902 a change had been made in the procedure connected with promotions of honour. The Central Chancery of the Orders of Knighthood (instituted by King Edward VII in that year) was given control of procedure for the ceremonial admission and promotion of all members of the Statutory Orders, but not the Knights Bachelor.
The Walker Trustees case highlighted the fact that Knights Bachelor had no representative body to speak for them. In the face of the litigation, Sir William Bull MP called a meeting of Knights Bachelor in the House of Commons to consider this issue. As a result of this, a formal meeting was convened at 31 Essex Street, in the Strand, on 27 April 1908 at which the Society of Knights Bachelor was founded.
In 1911 the Judicial Committee of the House of Lords held that the right of the Walker Trustees could no longer be enforced and that they were no longer entitled to claim fees from the recipients of honours. The initial prime motive for the formation of the Society had thereby been achieved.
In 1912 HM King George V permitted the Society its style of ‘Imperial’.
## **Objectives and activities**
## **a. Objectives**
The Society is now concerned with upholding the dignity of Knights Bachelor, maintaining a Register of Knights Bachelor and the undertaking of charitable pursuits as set out in its Constitution. The Society was registered as a charity in May 1986 (Number 294638).
The management and the affairs of The Society are vested in the Council. At each Annual General Meeting one third of the elected members are required to retire but are eligible for re-election, subject to the age limit on our bye-laws. Any two members of The Society may recommend to the Council any member of The Society as a candidate for election to the Council. It is a policy of the Council to recruit Members and Officers of the Council who have a mix of skills and experience.
Page 3
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **COUNCIL'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Objectives and activities (continued)**
## **b. Main activities**
The Society derives its income mainly from annual and lifetime subscriptions from members together with donations. In addition, income is received from commission on sale of insignia, merchandise and from investment income.
In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.
The Society continues to maintain the Knights’ Chapel, (part of St Faith’s Chapel) in the Crypt of St Paul's Cathedral, following the dedication of the Chapel in the presence of Her Majesty The Queen at a special service in 2008.
The Society maintains Registers of all Knights Bachelor from 1257 to the present day. These Registers are kept in special display cabinets in the Knights’ Chapel.
We continue to sponsor a chorister, who attends the St Paul’s Cathedral School. We have also in the past year given a donation to Family Action and to our Platinum Jubilee Trees project (see below).
During this financial year, the Society held luncheons for members and their guests, followed by an address from a guest speaker. During the year, the Society’s Scottish Division held an annual dinner and ladies’ luncheon.
Our major event for this last financial year was a grand dinner to celebrate the Platinum Jubilee of HM Queen Elizabeth II, held at Drapers’ Hall on 25th May 2022. Our guest of honour was HRH The Earl of Wessex (now HRH The Duke of Edinburgh).
On 21st July 2022, the Society held its Annual Service of Dedication at St Paul’s Cathedral. The sermon was given by The Bishop of London. The service was followed by a reception in the Nelson Chamber in the Crypt.
On 15th December 2022 the Society held a Carol Service in The King’s Chapel of the Savoy, conducted by the Chaplain of The King’s Chapel.
In the autumn 2021, we launched a fundraising Trees for the Jubilee campaign. This has now been completed although not before the sad death of HM Queen Elizabeth II, our patron since 1975. The Knights’ Copse in the Walsall Arboretum (supported mostly by members residing in England) was formally opened on 28th April 2023 by the Lord Lieutenant of West Midlands. The Cashel Orchard on the banks of Loch Lomond (supported by our members residing in Scotland), will be opened later in 2023 or early in 2024.
Each year, the Society responds to requests for information from Knights Bachelor, their families, and members of the public, regarding protocol and other related issues. We are frequently approached by professional organisations and solicitors to assist with the verification of Knight Bachelor titles, a task we undertake in consultation with the Central Chancery of the Orders of Knighthood and the Cabinet Office.
The Society makes a particular effort to remain in touch with the widows of deceased Knights Bachelor. Widows are also invited to attend our annual service of dedication, together with members of their families
Page 4
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **COUNCIL'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Achievements and performance**
## **Financial review**
## **a. Results for the year**
The Society had income of £138,159 (2022 :£76,480) and total expenditure of £189,824 (2022: £139,898), which after investment losses of £23,636 (2022:£34,080), produced a negative movement in funds of £75,301 (2022: £29,338).
Fund balances totalled £1,038,928 (2022: £1,114,229) at the year end, including restricted funds of £401,236 (2022: £443,674) and unrestricted funds £637,692 (2022: £670,555).
## **b. Reserves policy**
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to at least six months unrestricted expenditure. This provides sufficient funds to cover grants, management, administration and support cash. Free reserves at the year end were £637,692 (2022: £670,555).
## **c. Investment Policy**
The Council seeks to optimise income on funds held, most of which are invested into COIF funds whose performances are regularly reviewed. Our investment portfolio has been reviewed during the past year.
## **d. Risk Review**
The Council is aware of the risks that the Society is exposed to relating to operational, legal and financial matters and has satisfactory systems in place to manage the risks. We have a risk register which has been in place for some years now.
## **e. Accounting Services**
During this last Financial Year the Trustees have made provisions to improve the accounting and bookkeeping services for the Society. These will be implemented during the Financial Year 2023-24.
## **f. Fundraiser**
No professional fundraiser's are used by the charity.
Page 5
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **COUNCIL'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Statement of Council's responsibilities**
The Council are responsible for preparing the Council's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Council are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Council are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Council on 25 October 2023 and signed on their behalf by:
## Gary Hickinbottom
................................................ **The Rt. Hon. Sir Gary Hickinbottom Knight Principal**
## Pritpal Singh
................................................ **Sir Pritpal Singh Treasurer**
Page 6
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR FOR THE YEAR ENDED 31 MARCH 2023**
## **Independent Examiner’s Report**
## **Independent examiner’s report to the trustees of Imperial Society of Knights Bachelor**
I report to the trustees on my examination of the accounts of the Imperial Society of Knights Bachelor (the charity) for the year ended 31 March 2023.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the _Charities Act_ 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s financial statements carried out under s. 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under s. 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
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:
(1) accounting records were not kept in respect of the Trust as required by section 130 of the 2011 Act; or
(2) the financial statements do not accord with those records; or
(3) the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the _Charities (Accounts and Reports) Regulations_ 2008 other than any requirement that the financial statements give a ‘true and fair view which is not a matter considered as part of an independent examination. (4) the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Stephen Meredith FCA, DChA Alliotts LLP Friary Court 13-21 High Street Guildford Surrey GU1 3DL
Dated: 25 October 2023
Page 7
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income**
**Expenditure on:**
Raising funds
7
Charitable activities
9
**Total expenditure**
**Net expenditure before net**
**(losses)/gains on investments**
Net (losses)/gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2023**
**£**
**-**
**-**
**-**
**17,763**
**17,763**
**-**
**36,565**
**36,565**
**(18,802)**
**(23,636)**
**(42,438)**
**443,674**
**(42,438)**
**401,236**|**Unrestricted**
**funds**
**2023**
**£**
**66,143**
**39,741**
**9,098**
**5,414**
**120,396**
**56,197**
**97,062**
**153,259**
**(32,863)**
**-**
**(32,863)**
**670,555**
**(32,863)**
**637,692**|**Total**
**funds**
**2023**
**£**
**66,143**
**39,741**
**9,098**
**23,177**
**138,159**
**56,197**
**133,627**
**189,824**
**(51,665)**
**(23,636)**
**(75,301)**
**1,114,229**
**(75,301)**
**1,038,928**|_Total_
_funds_
_2022_
_£_
_36,657_
_14,784_
_9,585_
_15,454_
_76,480_
_10,820_
_129,078_
_139,898_
_(63,418)_
_34,080_
_(29,338)_
_1,143,567_
_(29,338)_
_1,114,229_|
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 11 to 23 form part of these financial statements.
Page 8
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **BALANCE SHEET AS AT 31 MARCH 2023**
|**Note**
**Fixed assets**
Intangible assets
12
Tangible assets
13
Investments
14
**Current assets**
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
18
**Total net assets**
**Charity funds**
Restricted funds
Total restricted funds
Unrestricted funds
**Total funds**|**16,561**
**30,686**
**553,894**
**601,141**
**(49,347)**
**401,236**|**2023**
**£**
**3,137**
**49,077**
**600,938**
**653,152**
**551,794**
**1,204,946**
**(166,018)**
**1,038,928**
**401,236**
**637,692**
**1,038,928**|_17,572_
_27,455_
_590,248_
_635,275_
_(49,303)_
_443,674_|_2022_
_£_
_4,182_
_50,293_
_624,574_
_679,049_
_585,972_
_1,265,021_
_(150,792)_
_1,114,229_
_443,674_
_670,555_
_1,114,229_|
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Council on 25 October 2023 and signed on their behalf by:
## Gary Hickinbottom Pritpal Singh
................................................ ................................................ **The Rt.Hon. Sir Gary Hickinbottom (Knight Principal) Sir Pritpal Singh (Treasurer) Trustee Trustee**
The notes on pages 11 to 23 form part of these financial statements.
Page 9
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Purchase of investments
Proceeds from disposal of investments
Income from investments
**Net cash provided by/(used in) investing activities**
**Net cash provided by financing activities**
**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**
The notes on pages 11 to 23 form part of these financial statements|**2023**
**£**
**(59,531)**
**-**
**-**
**23,177**
**23,177**
**-**
**(36,354)**
**590,248**
**553,894**|_2022_
_£_
_(82,659)_
_(280,000)_
_142,260_
_15,454_
**(122,286)**
**-**
**(204,945)**
_795,193_
_590,248_|
|---|---|---|
Page 10
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. General information**
Imperial Society of Knights Bachelor is a mutual membership society governed by rules adopted in May 1986 and amended in June 2000.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
IMPERIAL SOCIETY OF KNIGHTS BACHELOR meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Going concern**
At the time of approving the financial statements, the Council has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Council continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 11
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. Accounting policies (continued)**
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Members annual subscriptions**
Members’ annual subscriptions are accounted for on receipt. Life members’ subscriptions are credited to the Statement of Financial Activities (SOFA) over the average active life of the members, which is calculated to equate to the rate of 6.25% per annum. That portion not included in the SOFA is treated as deferred income in the balance sheet.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Intangible assets and amortisation**
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
Amortisation is provided on the following basis:
Computer software - % 20% on reducing balance
Page 12
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. .
Depreciation is provided on the following bases:
- Furniture and library 10 to 25% on reducing balance - Painting over 100 years
## **2.9 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## **2.10 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.11 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.12 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.13 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Page 13
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. Accounting policies (continued)**
## **2.14 Financial instruments**
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.
## **2.15 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Council in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Donations and legacies**
|**Unrestricted**
**funds**
**2023**
**£**
Donations
31,805
Annual membership subscriptions
23,130
Life membership subscriptions
11,208
66,143
_Total 2022_
_36,657_|**Total**
**funds**
**2023**
**£**
**31,805**
**23,130**
**11,208**
**66,143**
_36,657_|_Total_
_funds_
_2022_
_£_
_3,565_
_22,610_
_10,482_|
|---|---|---|
|||_36,657_|
||||
Page 14
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **4. Other trading activities**
|**Unrestricted**
**funds**
**2023**
**£**
Functions income
32,648
Royalties
2,801
Sales of merchandise
4,292
39,741
_Total 2022_
_14,784_|**Total**
**funds**
**2023**
**£**
**32,648**
**2,801**
**4,292**
**39,741**
_14,784_|_Total_
_funds_
_2022_
_£_
_6,105_
_2,801_
_5,878_|
|---|---|---|
|||_14,784_|
||||
## **5. Other income**
## **Income from fundraising events**
|**Unrestricted**
**funds**
**2023**
**£**
Gift aid tax refund
9,098
Book and other sales
-
9,098
_Total 2022_
_9,585_|**Total**
**funds**
**2023**
**£**
**9,098**
**-**
**9,098**
_9,585_|_Total_
_funds_
_2022_
_£_
_8,946_
_639_|
|---|---|---|
|||_9,585_|
||||
## **6. Investment income**
|Investment income
_Total 2022_|**Restricted**
**funds**
**2023**
**Unrestricted**
**funds**
**2023**
**£**
**£**
17,763
5,414
_10,045_
_5,409_|**Total**
**funds**
**2023**
**£**
**23,177**
_15,454_|_Total_
_funds_
_2022_
_£_
_15,454_|
|---|---|---|---|
|||||
Page 15
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **7. Raising funds**
|Merchandising costs
Function costs
_Total 2022_
**8.**
**Grants payable**
**Grants to institutions (5 grants):**
Family Action
St Paul's Cathedral - Chorister support
Cashel Forest Trust
Walsall Council - Trees
Mobility Trust
**9.**
**Analysis of expenditure by activities**
Charitable Activities
Grants payable
_Total 2022_|**Unrestricted**
**funds**
**2023**
**£**
4,753
51,444
56,197
_10,820_
**Grant**
**funding of**
**activities**
**2023**
**Support**
**costs**
**2023**
**£**
**£**
-
84,582
49,045
-
49,045
84,582
_21,000_
_108,078_|**Total**
**funds**
**2023**
**£**
**4,753**
**51,444**
**56,197**
_10,820_
**2023**
**£**
**15,000**
**3,500**
**10,244**
**20,201**
**100**
**49,045**
**Total**
**funds**
**2023**
**£**
**84,582**
**49,045**
**133,627**
_129,078_|_Total_
_funds_
_2022_
_£_
_4,390_
_6,430_|
|---|---|---|---|
||||_10,820_|
||||_2022_
_£_
_5,000_
_11,000_
_5,000_
_-_
_-_|
||||_21,000_|
||||_Total_
_funds_
_2022_
_£_
_108,078_
_21,000_|
||||_129,078_|
|||||
Page 16
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **9. Analysis of expenditure by activities (continued)**
## **Charitable activities**
|Staff costs
Rent, rates and insurance
Printing and stationery
Telephone and website
Office running costs
Postage
Calligraphy
Accountancy and independent examination/audit fees
Office equipment
Book costs
Amortisation
Depreciation
_Total 2022_|**Charitable**
**Activites**
**2023**
**£**
36,565
14,082
4,006
2,039
1,454
3,817
2,960
11,460
5,938
-
1,045
1,216
84,582
_108,078_|**Total**
**funds**
**2023**
**£**
**36,565**
**14,082**
**4,006**
**2,039**
**1,454**
**3,817**
**2,960**
**11,460**
**5,938**
**-**
**1,045**
**1,216**
**84,582**
_108,078_|_Total_
_funds_
_2022_
_£_
_36,777_
_13,912_
_2,837_
_1,055_
_636_
_2,037_
_1,072_
_10,524_
_2,575_
_34,392_
_1,045_
_1,216_|
|---|---|---|---|
||||_108,078_|
|||||
Accountancy costs include independent examination fees of £5,490 (including VAT) ( 2022 : Audit fees £9,600 including VAT).
## **10. Staff costs**
|Wages and salaries|**2023**
**£**
**36,565**
**36,565**|_2022_
_£_
_36,777_|
|---|---|---|
||||
|||_36,777_|
The average number of persons employed by the Charity during the year was as follows:
||**2023**|_2022_|
|---|---|---|
||**No.**|_No._|
|Clerk|**1**|_1_|
Page 17
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **10. Staff costs (continued)**
No employee received remuneration amounting to more than £60,000 in either year.
|**11.**|**Council's remuneration and expenses**|**Council's remuneration and expenses**|
|---|---|---|
||During the year, no Council member received any remuneration or other benefits_(2022 - £NIL)_.||
||During the year ended 31 March 2023, no Council expenses have been incurred_(2022 - £NIL)_.||
|**12.**|**Intangible assets**||
|||**Computer**|
|||**software**|
|||**£**|
||**Cost**||
||At 1 April 2022|**5,600**|
||At 31 March 2023|**5,600**|
||**Amortisation**||
||At 1 April 2022|**1,418**|
||Charge for the year|**1,045**|
||At 31 March 2023|**2,463**|
||**Net book value**||
||At 31 March 2023|**3,137**|
||_At 31 March 2022_|_4,182_|
Page 18
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **13. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2022
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
At 31 March 2023
**Net book value**
At 31 March 2023
_At 31 March 2022_|**Fixtures and**
**fittings**
**£**
**74,685**
**74,685**
**24,753**
**1,176**
**25,929**
**48,756**
_49,932_|**Other fixed**
**assets**
**£**
**2,984**
**2,984**
**2,623**
**40**
**2,663**
**321**
_361_|**Total**
**£**
**77,669**|
|---|---|---|---|
||||**77,669**|
||||**27,376**
**1,216**|
||||**28,592**|
||||**49,077**|
||||_50,293_|
|**14.**
**Fixed asset investments**
**Cost or valuation**
At 1 April 2022
Revaluations
At 31 March 2023
**Net book value**
At 31 March 2023
_At 31 March 2022_|**Listed**
**investments**
**£**
**624,574**
**(23,636)**|
|---|---|
||**600,938**|
||**600,938**|
||_624,574_|
Page 19
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
|**15.**
**Stocks**
Finished goods and goods for resale
**16.**
**Debtors**
**Due within one year**
Other debtors
Prepayments and accrued income
**17.**
**Creditors: Amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income
**18.**
**Creditors: Amounts falling due after more than one year**
Deferred income|**2023**
**£**
**16,561**
**2023**
**£**
**29,638**
**1,048**
**30,686**
**2023**
**£**
**1,288**
**13,900**
**34,159**
**49,347**
**2023**
**£**
**166,018**|_2022_
_£_
_17,572_|
|---|---|---|
|||_2022_
_£_
_21,259_
_6,196_|
||||
|||_27,455_|
|||_2022_
_£_
_2,576_
_3,248_
_43,479_|
||||
|||_49,303_|
|||_2022_
_£_
_150,792_|
Page 20
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **19. Deferred income**
|**Deferred income is included within:**
Current liabilities
Non current-liabilities
**Movements in the year:**
Deferred income at 1 April 2022
Amounts released from previous periods
Resources deferred during the year|**2023**
**£**
**11,208**
**166,018**
**177,226**
**2023**
**£**
**165,634**
**(11,208)**
**22,800**
**177,226**|_2022_
_£_
_14,842_
_150,792_|
|---|---|---|
|||_165,634_|
|||_2022_
_£_
_165,626_
_(10,482)_
_10,490_|
|||_165,634_|
## **20. Summary of funds**
## **Summary of funds - current year**
|General funds
Chapel fund|**Balance at 1**
**April 2022**
**£**
**670,555**
**443,674**
**1,114,229**|**Income**
**£**
**120,396**
**17,763**
**138,159**|**Expenditure**
**£**
**(153,259)**
**(36,565)**
**(189,824)**|**Gains/**
**(Losses)**
**£**
**-**
**(23,636)**
**(23,636)**|**Balance at**
**31 March**
**2023**
**£**
**637,692**
**401,236**|
|---|---|---|---|---|---|
||||||**1,038,928**|
The income funds of the charity include restricted funds comprising unexpended balances of donations and grants held on trust for specific purposes. The Chapel Fund arose from an appeal for funds to support the restoration of the Society's chapel at St Paul's Cathedral.
## **Summary of funds - prior year**
|General funds
Chapel fund|_Balance at_
_1 April 2021_
_£_
696,010
_447,557_
_1,143,567_|_Income_
_£_
_66,435_
_10,045_
_76,480_|_Expenditure_
_£_
_(102,121)_
_(37,777)_
_(139,898)_|_Gains/_
_(Losses)_
_£_
_10,231_
_23,849_
_34,080_|_Balance at_
_31 March_
_2022_
_£_
_670,555_
_443,674_|
|---|---|---|---|---|---|
||||||_1,114,229_|
Page 21
**IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **21. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|**Restricted**
**funds**
**2023**
**Unrestricted**
**funds**
**2023**
**£**
**£**
-
49,077
-
3,137
390,610
210,328
10,626
590,515
-
(49,347)
-
(166,018)
401,236
637,692|**Total**
**funds**
**2023**
**£**
**49,077**
**3,137**
**600,938**
**601,141**
**(49,347)**
**(166,018)**
**1,038,928**|
|---|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|_Restricted_
_funds_
_2022_
_£_
_-_
_-_
_405,973_
_-_
_37,701_
_-_
_443,674_|_Unrestricted_
_funds_
_2022_
_£_
_50,293_
_4,182_
_218,601_
_635,275_
_(87,004)_
_(150,792)_
_670,555_|_Total_
_funds_
_2022_
_£_
_50,293_
_4,182_
_624,574_
_635,275_
_(49,303)_
_(150,792)_
_1,114,229_|
|---|---|---|---|
Page 22
## **IMPERIAL SOCIETY OF KNIGHTS BACHELOR**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net expenditure for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Amortisation charges
Fair value gains and losses on investments
Investment income
Decrease/(increase) in stocks
Increase in debtors
Increase in creditors
Increase in deferred income
**Net cash used in operating activities**
**23.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**24.**
**Analysis of changes in net debt**
**At 1 April**
**2022**
**£**
Cash at bank and in hand
**590,248**
**590,248**|**2023**
**£**
**(75,301)**
**1,216**
**1,045**
**23,636**
**(23,177)**
**1,011**
**(3,231)**
**3,678**
**11,592**
**(59,531)**
**2023**
**£**
**553,894**
**553,894**
**Cash flows**
**£**
**(36,354)**
**(36,354)**|_2022_
_£_
_(29,338)_
_1,566_
_1,045_
_(36,691)_
_(15,454)_
_(5,247)_
_(12,708)_
_14,160_
_8_
_(82,659)_
_2022_
_£_
_590,248_
_590,248_
**At 31 March**
**2023**
**£**
**553,894**
**553,894**|
|---|---|---|
## **25. Related party transactions**
There were no related party transactions during the year (2022 - none).
Page 23