REGISTERED COMPANY NUMBER: 908985 {England and Wales) REGISTERED CHARITY NUMBER: 312101 REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 FOR EMERSON COLLEGE TRUST LIMITED HPGA Limited Chartered Accountants and Statutory Auditors Stslion House Connaught Road Brookwood Woking Surrey GU24 OER
EMERSON COLLEGE TRUST LIMITED CONTENT F THE CONSOLIDATED FINANCIAL STATEMENTS for the èar ènded 30 June 2023 Page Report of the Trustees 3107 Report of the Independent Auditors 71010 Consolidated Statement of Financial Activities 11 Consolidated B¥lance Sheet 12 Charitable Company B81ance Sheet 13-14 Cash Flow Ststement Notes lo the Cash Flow Statement 16 Notes to the Financial Statements 171032
EMERSON COLLEGE TRUST LIMITED REPORT OF THE TRUSTEES for the ear ended 30 June 2023 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial sl8tements ol the charity for the year ended 30 June 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recornmended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and organisation of the charity The principal objective of the charity is the administering of the Emerson College Trust Limited and the promotion of an adult centre of training for study and resear¢h in accordance with Steiner educational principles with special emphasis on education, agriculture, arts, and science. This benefits society by furthering alternative models in areas which are g8nerally acknowledged to need new thinking. In furtheranc& of ils objects, the charity operates Emerson College, Forest Row. Funds raised and donations are applied to promote study and research in anthropDsophy and biodynamic agriculture. The Trustees are aware of their duty to have due regard to the Charity Commission's public benefit guidance in formulating the strategy for the charity. They are satisfied that the objectives of the charity are of public bènèfit. ACHIEVEMENT AND PERFORP4lANCE Charitable activities Emerson College is a vibrant College with a rich, exciting, and varied programme of courses, performances, and talks. In the past year we have ¢¢ntinued to develop our own courses, following the negative impact of the coronavims pandemic. We have built up a number of su¢¢essftJl partnerships with other course providers and individuals to offer inspiring courses on the Emerson Campus in three different fields: Arts.. visual arts, storytelling la range of short, modular, and longer courses), clowning, eurythmy, poetry. sacred geometry, ceramics, singing. Care.. anthroposophical nursing, anthroposophical medicine, mental health, social therapy, counselling, herbal medicine, psychotherapy, holistic baby and childcare., spiritual care for those on the joumey of death and dying, working with trauma. Ecology.. sustainable agriculture, Goethean science, water research, medicinal herb cultivation. We continue to support participants to attend courses through g reduction of fees from our L)ursary fund. This gave access lo courses for people on Universal Credit, on low income or those that have caring responsibilities for family members. The college has continued to make improvements to the upgfftde of our student houses and other parts of the estate. We have continued to irnprove the administrative infrastructure of the organisation with new event bookings systems. IT servers and wireless connectivity installations all which contribute to a better running of the charity. The main strategic focus under the management of assets has been to undertake the sales of three properties to invest in capital expersditure in relation to upgrading Pixton House and other teaching and art studios. This has included the renovation of the North Dining Room. Iparticularly its beautiful roof lantern windows), and Music Room and transforming the Potting Sh8d into an Emerson Café and aoCIated dining areas into potential performancelevenl facilities. Other improvements have been focused in installing easy acce5S toilets in the Red Studio and Eurythmy House, with new roofing to the Story Hut, Green Studio and Green Studio Long. Taken as a whole, these improvements have positioned Emersor> as a much better facility for many of the activities which it facilitates and promotes. Event Hire and Accommodation Bookings. togethèr with new Course developmènt continue lo grow with activity and sales increasing by 190/D in the year. which is a trend that is contir¢uing into Ihe year 2023124 The Board of Trustttes agreèd a strategic staffing and recruitrnenl plan in the year to create and recruit to the roles of Co- Principal for Education and Head Df Hospitality, as the basis to enable significant growth in the areas of Emerson Courses and External Hire activities and lo enhance the quality of experience for visltors to Emerson. During the year the Co-PrinGipal for Asset Management and the of Head of Hospitality resigned. After careful str8tegie planning the Board resolved to establish the Co-Principal for Education as Principal and CEO for Emerson and re define the organisational responsibilities through the senior leadership team. Page S of 32
Future development Th@ upgrade of Pixton House will enable opening of the Emerson Café in the Year 2023124. Building on our strategic recruitment, we are planning for an incorne growth of 200/0. forming part of our three year income growth p13n, which aims to establish business sustainability by the year 2025126 Focal points of our efforts in the coming year are.. Opening the Emerson Café Rebuilding our income through the development of new courses, increased enrolmènl and venue hire Repaying the CIBLS loan through the rnechanism of the Ihree-yesr incorne growth plan Building on maintaining our publicly accessible estate, as a place of beauty for the benefit of our community and visitors, through the development of Botsnical Garden Walks linked lo the Emerson Café activity and the eskte's Derneter status. Maintaining and building on the Demeter certification of our estate through the development of new Biodynamic activities and sustainable horticulture programmes Improving the online booking systèm to enable better registration for students and participants and increase mid-week bookings Renewing our website and increasing our reach on social media Improving our donation sofbNare Increasing our fundraising efforts lo support our work Seeking grant support to renovate our facilities and improve accessibility Our Board structure, which now includes the Principal for Educstion and senior staff as required, together wlh the trustees, ¢ontinues to work well. There were [70 changes to our trustees. During the year a total of £ 262,304 was re1Ve in donations, including £ 177,943 from our tradiTrg subsidiary, plus £84,361 in other grants. FINANCIAL REVIEW Investment policy and objectives The Trustees have unlimited investment powers and currendy the ¢harity has unlisted investments as detsiled in the notes to the fi'nancial statements. Reserves pollcy The Trustees consider that the charity's assets are adequate to fulfil ils obligations and that it has sufficient free res@Nes to meet all ongoing operating costs for a period of six months. As at 3010612D23 the Trust and its subsidiary held a total of £401,820 in cash, with an outstanding loan of £ 146,667. OPERATING COSTS AND INCOME Vve made an operating loss of £195,719, excluding the net proceeds from asset sales1£265,9221 and the Mercury Provident Pension Scheme IMPPSI costs for the year1£67,723) Is@e note 8, page 22) - In addition to that and due to a revaluation of the MPPS liability which will be revlewed at the end of 2024, the accounts show an actuarial loss of £207.708 Is$8 note 20, page 341. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, the Memorandum, and Articles of Association, and Gonstitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Organisational structure The charity is governed by its Memorandum and Articles of Association. Activities are overseen by the Council consisting of Tmstees who meet six times each year or more frequently if required. The Articles of Association lay down that the Council shall comprise no fewer than 3 and no more than 20 Trustees. All Trustees need to be a member of the association. Induetion and training of new trusteès Trustees are appointed at the AGM when 81 least a third of the existing Trustees must sland down. Aftyone wishing to becomo a Trustee must first become s member of the Emerson Association. As the Association is premised on the vision and work of Rudolf Steiner, il is esser)tial thzl all Trustees can demonstrate that they are familiar with this vision and that il is an integral part of their lives. Page 4 of 32
Other qualities that Emerson Association would value in prospective Trustees would be experience working in other charities, specific professional skills, or experience in the field of adult education. Several of the existing Trustees were former students at Emerson. At present Emerson does not have any specific policy on Trustee training, except lo ensure all Trustees are familiar with current Charity law and the duties of Tlusteeship, but of course the Trust would send individual Trustees on special courses if this were deemed necessary. However, to ensure good working practice, there are regular discussions concerning Charity Commission guidance on good govemance and practice 81 Trustee meetings_ REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00908985 (England and Wales) Registered Charity number 312101 Registered office Pixton Hartfield Road FOREST ROW East Sussex RH18 5JX Trustees J Dyson P Blaxland de Lange K Orsak {resigned 1.11.22} R Levy (resigned 1.11.22) A Blampied-Radojcin M Leach S King S Fuller (appointed 4.11.22) J Smith lappointed 4.11.221 Auditors Shaw Gibbs (Audit) Limited 264 Banbury Road Oxford Oxfordshire Surrey OX2 7DY Bankers HSBC Bank plc 1 Centenary Square Birmingham B1 1HQ. Bankers Sanlsnder 2 Trilon Square Regent's Place London NW1 3AN P8ge S of 32
EMERSON COLLEGE TRUST LIMITED REPORT OF THE TRUSTEES for the ear ended 30 June 2023 Charities Statemenl of Recommended Practice ISORP 2005) requirements Reserves. The Charity holds thè following reserves.. a. Restricted funds that represent hypothecated grant funding. b. Payments made in advance that will be required lo fttnd expenditure in future years. And Sufficient working capitsl to ensure Ihg Charitable Company remains a going concern and can fund at least six months salaries of all staff employed by the Charity. 2. Principal risks & uncèrtainties.. the following represent the significant risks and uncertainties faced by the Charity.. a. Cost of living inflation which in a(idition to slowing economic growth and increasing the risk of a recession, impacts on the Charity in two principal ways by." i. Inflation results in increasing the c05t of fuel, utilitie8, food, building rrtaterials, and similar products that are required to be purchased lo provide for the on-going operation of the Charity. ii. Creating customer resistance lo fund edLJcalional coursès, events, accommodation, and food due lo the need to priorilise essential costs rather than education which is considèfftd to be a luxury good. It is therefore largely the case that the ability to participate in courses has high income elasticity of demand resulting in more expenditure on courses and events increasing with greater levels of disposable income and the converse during periods of reduced disposable income. The 00 effeds of inflation mitigate against each other- if prices are increased to maintain the viability of a serviTr, then due to the cost elasticity, cost increases will have an effect to reduce the level of demand. b. The trend towards on-line educational courses and podcasts provides substantial opportunities for the Charity, but a consequence is that participants lose the highly valued special characteristics of attending the Emerson Campus with the consequential loss in income from the use of residential accommodation and meals. ¢. Reputational risk- the College enjoys an international reputation for the qLtality of its educational courses but ?Iso the unique campus environment and experience it provides. Reputations are hard earned but easily lost rf the customer experience reduces or an event creates bad publicity for the Charity. As a result, the Charity carefully safeguards its reputation by seeking improvements in the seThice whilst maintaining the special qualities of the customer experience. The principal risks and uncertainties are contained through the Tmslees of the Charity pro-actively investing in the level of educational expertise and resources together with improving the College facilities and the flexibility of servic& provision. Furthermore, as part of the governance of the Charity, a risk policy and comprehensive risk register is pro- actively maintained, that includes identifying risks., assessing risks., evaluating what action needs to be taken on risks and periodic monitoring and assessment at each BDard meeting. 3. The Pay and remuneration policy for key leadership personnel-. 8. The Charity has recenly restructured its senior leadership team to further improve the emphasis on everyone working for ? single oryanisation and contributing to the success Df the organisation. The outcome was to appoint a post of Principal and CEO to replace the two Co-Principals- Educats'on and Asset Development. The level of remuneration for the CEO reporting dire¢lly to the Board was set by the Board of Trustees prior lo the appointmeTrt being made. b. No one is paid more than £60.000 p.a. IFTEI and all posts are contained within the Pay Policy agreed ty the Board of Trustees. The CEO will keep under review the Pay Policy and levels of pay and provide costed options for the Board of Trustees to eonsider and to agree any changes. Page 6 of 32
EMERSON COLLEGE TRUST LIMITED REPORT OF THE TRUSTEES forthe ear ended 30 June 2023 STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Emerson Gollege Trust Limited for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the slatè 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 thosg financial statements, the trustees are required select suitable accounting poli¢ies and then apply them consistently., observe the methods and principles in the Charity SORP., make judgements and estimates that are reasonable and prudent", prepare the financial statements on the going concern basis unless it is inappropriate to presume that the ¢haiitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities_ In 50 far as the trustees are aware.. there is no relevant audit information of which the charitable company's auditors are unaware., and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Shaw Gibbs (Audit) Limited, will be proposed for rtrappointmenl at the forthcoming Annual General Meeting. Approved by order of the board of trustees on 3rdlh November 2023 and signed on its behalf by.. Leach - Trustee Page 7 of 32
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMERSON COLLEGE TRUST LIMITED Opinlon We have audited the financial ststemenls of Emerson College Trust Limited (the 'parent charitable company'} and its subsidiary (the group) for the year ended 30 June 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statemènt and notes lo the financial stslements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 IUnite(J Kingdom Generally Accepted Accountsng Praetie¢}- In our opinion the financial statements_. give a true and fair view of the slate of the group's and of the parent charitsble company's affairs as a130 June 2023 and of the group's incoming resources and application of resources and application of resources, including ils income and expenditure, for the year then ended., have bèen properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice-, and have been prepared in accordance with the requirements of thè Companies Act 2006. Basis for opinion We conductèd our audit in accordance wtlh International Standards on Auditing IUKI {ISAs {UKII and appliGable law. Our responsibilities under those standards are further described in the Auditors resF>onsibilities for the audit of the financial statements section of our report. We a independent of the groL(p in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, inGluding the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these fftquiremenls. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concem basi5 Of accounting in the preparation of the financial statements is appropriate. Based Dn the work we have performed, we have not identified any material uncortainties relating to events or conditions that, individu311y or collectively, may cast significant doubt on the charitable company's ability to continu¢ as ? going concern for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are describèd in the relevsnt sections of this r8porL Other intorniation The trustees are responsible for the othèr information. The other information comprises thè informalion included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not covgr the other information and wè do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our r8sponsibilty is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears lo be matèrially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a Material misstatement In the finoncial stslemenls themselves. If, based on the work we have performed, we conGlude that there is a material misstatement of this Dther information, we are required to report that fact. We have nothing lo report in this reg8rd. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the auditi the information g(vèn in the Report of the Trustees for the financial yèar forwhich the financial ststements are prepared is consistent with the financial statements,. and the Report of the Truste8s has been prepared in accordancè with applicable legal requirements. Matters OT] which we are required to report by exception In the light of thfj knowledge and understanding of the group and parent charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees_ We have nothing to report in respEcl of the following matters where the Companies Act 2006 requires LJS to report to you if, in our opinion". P8ge 8 of 32
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMERSON COLLEGE TRUST LIMITED adequate accounting records have not been kept or retums adequate for our audit have not been received from branches not visited by LJS,. or the parent charitable company financial statements are not in agreement with the accounting records and returns.. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the infom)ation and explanations we require for our audit", or the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fijlly in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) artt responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intern81 control as the tmslees determine is necessary to en8ble the preparation of financial slalements Ih8t are free from material misstatement, whether due to fraud or ermr. In preparing the financial statements, the trustees are responsible for assessing the group's and parent charitable company's ability to continue as 8 going concern, disclosing, as applicable, matters related lo going Con[ ancj using the going ¢on¢em basis of accounting unless the trustees either intend to liquidate the group's or parent charitable company or to cease opèmtions, or have no realistic alternative bul to do so. Our responsibilities for the audit of the financial ststements Our objectives are to obtain reasonable assurance about whether the finan¢i81 statements as a whole are frae from material missl8tement, whether due lo traud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assuranTr, but is not a guarantèe that an audit conducted in accordance wth ISAS (UK) will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expe¢led to influence the economic d8cisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design proceduTes in line with our responsibilities, oullined above, to detect material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detailed below.. The exient to which the audit was considered capable of detecting irregularities including fraud Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and nonmpliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, ¢apabililiès and skilts to identify or recognise non-compliance with applicable laws and regulations,. we idefttified the laws and regulations applicable to the chartLable company through discussions with trustees and other management, and from our commercial knowledge and experiencè of the sector,. we focused on specific laws and regulations which we ¢onsidered may have a direct materi81 effect on the Inancial statements or the operations of the ¢h8ritable company, including compliance for accrediting, the Companies Act 2006, taxation, data pmtection, safeguarding, employment, environmental and health and safety legislation., we assessed the extent of compliance with the laws aF3d regulations identified above through making enquiriés of management and inspecting legal Correspondence., and identified laws and regulations were Gommunicated within the audit tgam regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial slat8m8nls to material misstatement, including obtaining an understanding of how fr8ud might occur, by.. msking ènquiries of management as to wher$ they Considered there was susceptibility lo fraud, their Page 9 of 32
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMERSON COLLEGE TRUST LIMITED knowledge of actual, suspected and alled fraud,. and considering the internal controls in place to mitlgste risks of fraud and non<ompliance with laws and re9ulations. To address the risk of fraud through management bias and overritje of controls, we.. performed analytical procedLtres to identify any unusual or unexpected reletionships., testèd jtsurnal entries to identify unusual tran5actions'. assessed whether judgèments and assumptions made in determining the accounting èslimates were indicative of potential bias., and investigated the rationale behind significant or unusual transactions. In respons& to the risk of irregLJlarilies and non-compliance with laws and regulations, we design8d procedures which included, but were not limited lo.. agreeing financial statement disclosures to underlying supporting do¢umentation'. enquiring of management as to any actual and potential litigation and claims., and reviewing correspondencè with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. There are inhertsnt limitations in our audit procedures described above_ The nre removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-complianee. Auditing standards also limit the audil procedures required to identify non-compliance with laws and rulationS to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to dètè¢t than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's websit& at ww.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is madè solèly to the charitable company's memb$rs, as a body, in aeeordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitsble company's members those matters we are required to slate to them in an auditors, report ancl for no other purpose_ To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a bod for our audi rk for this report, or for the opinions we have fomed. Lance Redman Lance Redman (Senior Statutory Auditor) for and on behalf of Shaw Gibbs (Audit) Limited 264 Banbury Road Oxford Oxfordshire OX2 7DY Date." 14tht November 2023 Page 10 of 32
EMERSON COLLEGE TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTMTIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT for the ear ended 30 June 2023 2023 Totsl funds 2022 Tokl fvnds Unrestricted funds Restricted funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Education 6,492 77,869 84,361 18,905 1,010,297 161,060) 949,237 797,798 Investment income Trading income Other income 773 645,000 33,215 773 645,000 33.215 428 430,000 65,407 22 Total 1,695.777 16,809 1,712,586 1,312.538 EXPENDITURE ON Subsidiary's trading activities 22 465,068 465,068 382,024 Charitable activitiès Education 1,221,108 8,544 1.229,652 1,048,856 Bank loan interest 15,386 15,386 3,015 Total 1,701,562 8,544 1.710,106 1,433,895 NET INCOMEIIEXPENDITURE) 15.7851 8,265 2,480 1121,3571 Actuarial gainsl(losses 20 1207,7081 1207,7081 Net movement in funds 1213,493) 8,265 1205,2281 (121,3571 RECONCILIATION OF FUNDS Total funds brought forward 2,181,633 130,538 2,312,171 2,433,528 TOTAL FUNDS CARRIED FORWARD 1,968,140 138.803 2,106,943 2,312,171 Page 11 of 32
EMERSON COLLEGE TRUST LIMITED ONSOLIDATED BALANCE SHEET At 30 June 2023 2023 Restricted Total funds funds 2022 Total funds Unrestricted funds Notes FIXED ASSETS Intsngible Fixed Asset Tangible assets Investments 13 14 1,340 2,764,559 12,267 1,340 2,764,559 12,267 2,278,378 2,778,166 2,778,166 2,290.645 CURRENT ASSETS Stocks Debtors Gash at bank and in hand 219,124 74,264 334.148 219,124 145,395 401,820 603,697 156,194 611,281 71,131 67,672 627,536 138,803 766,339 1,371,172 REDITORS Amounts falling due within one year 18 1500,2451 1500,245) 1567,976) NET CURRENT ASSETS 127,291 138.803 266,094 803,196 TOTAL ASSETS LESS CURRENT LIABILITIES 2.905,457 138,803 3,044,260 3.093,841 CREDITORS Amounts falling due aftèr more than one year 1106,6671 1106,6671 1146,667} PENSION LIABILI 20 1830,650} 1830,fj501 1635,003} NET ASSETS 1,968, 140 138,803 2,106,943 2,312,171 FUNDS Unrestricted funds Restricted funds 1,968,140 138,803 2,181,633 130,538 TOTAL FUNDS 2.106,943 2,312,171 These financial slatements have been preparecl in 80¢Ordan with the special provisions of Part 15 of the Cornpanies Act 2006 relating lo charitable small companies. The financial statements were approved by the Board of Trustees on 3rd November 2023 and were signed on its behalf by.. A Blampied-Radojcin -Truslee Psge 12 of 32
EMERSON COLLEGE TRUST LIMITED CHARITABLE COMPANY BALANCE SHEET At 30 June 2023 2023 Restrictèd Total funds funds 2022 Total ftjnds UnreslNcted funds Notes FIXED ASSETS Intangible assets Tangible assets Investments 13 14 1,340 2,764,559 12,267 1,340 2,764,559 12,267 2,278,378 12,267 2,778,166 2,778,166 2,290,645 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 16 17 37,687 550,909 36,089 37,667 622,040 103,761 40,995 1,174,232 152,632 71,131 67,672 624,665 138,803 763,468 1,367,859 CREDITORS Amounts falling due within one year 18 1497,3771 1497,3771 1564,6651 NET CURRENT ASSETS 127,288 138,803 266,091 803,194 TOTAL ASSETS LESS CURRENT LIABILITIES 2.90S,4S7 138,803 3,044,260 3,093,839 CREDITORS Amounts falling due after more than one year 1106,667) {106,667} (146,6671 PENSION LIABILITY 20 {830,6501 1830,6501 1635,003) NET ASSETS 1,968,140 138 803 2,106,943 2,312,170 FUNDS Unrestricted funds Restricted funds 19 1.968, 140 138,803 2,181,633 130,538 TOTAL FUNDS 2,106,943 2,312,171 These financial statements have been prepared In accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies. The financial statements were approved by the Board of Trustees on 3rd November 2023 and were signed on its behalf by.. M Leach -Trustee Page 13 of 32
EMERSON COLLEGE TRUST LIMITED CONSOLIDATED CASH FLOW STATEMENT for the èar ended 30 June 2023 2023 2022 Notes Cash flows from operating activities: Cash geneted from operations Interest paid 383,729 15,3861 252,335 Net cash provlded by {used inl operating activities 368,343 249,320 Cash flows from investing activities: Purchase of tangible fixed assets Purchase of intangible fixed asset Interest received 1536,9691 {1,6081 773 182,9711 428 Net cash provided by (used in} investing activities 1537,8041 182,5431 Cash flows from financing activities: New loan in year Loan repayments 40,0001 13,3331 Net cash provided by luged inl financing activities 40,0001 13,3331 Change in cash and cash equivalents In the reporting period Cash and cash equivalents at the beginning of the reporting period 1209,4611 153,444 611,281 457,837 Cash and cash equivalents at the end of tha reporting period 401.820 611,281 Page 14 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT for the ear ended 30 June 2023 RECONCILIATION OF NET INCOMEI{EXPENDITUREI TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net Incomellexpenditurel for the reporting period las per the statemenl of financial activities) Adjustments for: DepreciatlDn Gharges lrtlerest re¢eived Interest paid Movement in pensioA liability 2,480 1121,3571 51,056 {7731 15,386 112,0611 44,572 1428} 3,015 173,6321 Ilncreaselldecrease in stocks (Increaselldecrease in debtors Increaselldecreasel in creditors 384,573 10,799 67,731 256,340 12,0821 145,907 Net ¢a$h provided by lu$Èd in} operating activities 383.729 252.335 Page 15 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDA TED FINANCIAL STATEMENTS for the ear ended 30 June 2023 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statemenlg of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 'Accounling and Reporting by Charities.. Statement of Recommended Practice applieable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effe¢tive 1 January 2015)., Financi81 Reporting Stsndard 102'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 20(6. The financial statements have beèn prepared under the historical cost convention with the extsption of investments which are included at market value. Income All income is recognised in the Statement of Financial A1VIlieS once the charity has enlillement to the funds, il is probable that the income will be received and the amount can be measured reliably. Expendlture Liabilities are recognised as expenditure as soon as there is a legal or ¢onstruclive obligation committing the charity to that expenditure, il is probable that a transfer of economic benefits will be rèquired in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for Dn an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs Cannot be directly attributed lo particular headings they have been allocated to activities on a basis consistent wÉth the use of resources. Allocation and apportionment of costs Rèsources expended are included in the Statement of Financial Activities on an accru8ls basis and are allocated to a specific aclwity where costs relate directly lo that activity. Costs of generating funds are the costs directly attributable to raising funds. Charitable expenditure includes all costs directly relating to the objective of the charity and the ¢osts involved supporting that work. Governan costs relate to the costs of legal and professional fees, audit fees. Support costs include those costs connected with the management ofthe charity's assets, organisalional management and gdministration and Complian with constitutional and ststulory requirements. Expenditure on support costs of the Gharity includes all expenditure not directly related to the charitable activity or fundraising ventures. Tangible fixed a55ets Depreciation is provided al Éhe following annual rates in order to write off tr?ch asset over its estimated useful life. Freehold propety Short leasehold Machinery and office equipment Fixtures and fi'llings Library Books 10/0 on cost Over the life-time of the 7 years lease 20-25'/o on reducing balance 250J¢ on reclucing balance and 1 00/0 on cost 15_250A on reducing balance Assets costing £750 or more are capitalised. All other assets under this amount are expensed to the income and expenditure 2ccounl. Stocks Stocks are valued at the lower of cost and nel realis8ble value, after making due allowance for obsolete ancj slow rlloving items. Taxation The charity is exernpt from corporation tax on its charitable activtties. Page 16 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 ACCOUNTING POLICIES - continued Group Financial Statements The financial statements consolidatè the results of the charity and ils wholly owned subsidiary Emerson College Enterprise Limited on a line-by-line basis. A separate Statement of Financial Activities and In¢ome and Expenditure Account for the ¢hsrity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. Fund accounting Unrestricted funds can be used in accordance with the charitsble objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for path'cular restricted purposes. Further axplanation of the nature and purpose cif each fund is included in the notes lo the financial statements. Foreign currencies Assets and liabiltbes in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet dale. TransactlDns in foreign currencies are translated into sterling at the rate of exchange ruling al the date of transaction. Exchange differences are taken into account in arriving at the operating result. Pension costs and other post-retirement beneflts The charitable company was contributing to the Mercury Provident Pension Scheme which is an unsegregated multi-employer defined-benefit scheme. This is a collective policy scheme li.e. members have a joint and several obligation lo pay the liabilities of any member who is not able lo pay) for employees of a number of anthroposophical institutions in the UK and the assets of the scheme are held independently and separate to those of the Charitable Company. The scheme has been closed to further benefit accrual. Tre last actuarial valuation carried out to 29 December 2021 identified a funding short fall of £5.4 million on best estimate basis for the scheme as a whole. Emerson's share ot the best estimate valuation of the defiut was reflected in the financial statements for the year ended 30 June 2023, based on the actuarial valuation as at29 December2021. Subsequent to the closure of the defined benefit scheme the charitable company has ComMend conth"buting towards a money purchase pension scheme. Contributions payable for the year are charged in the income and expenditure aG¢ount. Investments Fixed asset investments108ns are slated at cost as they are ultimately redeemable at their original value and are not saleable. Other equities are stated at market value derived from information offered by the issuing company. DONATIONS AND LEGACIES 2023 2022 Donations Legacies Grants 83,161 13,558 2,010 3,337 84,361 18 905 In addition to the above donations a further donation of £177,94312022-. £70,360) was received from the college's subsidiary, Emerson College Enterprises Limited and this is not reflected in the consolidated accounts. INVESTMENT INCOME 2023 2022 Investment income and interest 773 428 773 428 Pag& 17 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Activity Educatron Education Education Educatlon EdueatlDn Student fees Student fees discount Student boarding & Catering Other income Venue hire & rental income 320.591 {72,812) 463,158 46,600 191,690 385,183 153,6291 288,189 20,654 157,401 949,237 797.798 Included in Venue hire & rental income are rents £54,253 {2022= £42,527), workspace rentals £16,147 12022.. £19,373), resideTrlial rental incorne of £121,29012022'. £95,501 } OTHER INCOME During the year rents and service charges received was £17,01912022.' £40,820) and furlough income was £nil {2022-. £24,587) and garden income of £16,196. CHARITABLE ACTIVITIES COSTS Direct costs Stjpport costs (See note 7) (See note 81 Totals Education 800,043 429,609 1,229 652 DIRECT COSTS OF CHARITABLE ACTIVITIES 2023 2022 staff costs Tutor Fees Tutor aecommodalion & material Provisions and housèhold Garden costs brary and Bookshop materials Repairs and maintenance Administration and ¢ourses Bad Debts Teacher training 469,399 95,136 49,868 87,898 11,702 17,172 52,083 7,413 5,393 3,979 358,040 165,438 59,811 55,793 6,205 6,661 40,453 921 800 043 696.666 SUPPORT COSTS Governance costs Management Totsls Education 410,648 18,981 429,609 Support costs, included in the above, are as follows.. Page 18 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 SUPPORT COSTS - continued Managernent 2023 2022 Education Total activities Trustees, fees Trustees, expenses Rates and Water Insurance Light and heal Telephone, inlernel & copier Postage and stationery Advertising & publicity Office equipment and IT Pension admin fees Pension deficit administration Pension deficit finan Costs Pension Levy Professional fees Travel & other costs 19,515 1,708 25,230 16,260 76,345 6,139 774 29,159 31,047 2,364 44.644 16,400 4,315 71,793 599 20,200 3,723 21,131 17,136 54,514 5,269 594 24,903 27,898 2,401 15,291 18,303 3,253 75,413 425 Membership Fees Bak & other charges Amortisation of intangible fixed asset Depreciation of tangible and heritage assets 883 12,417 268 51,056 4,393 714 410,648 340,133 Governance costs 2023 2022 Education Totsl activities Auditors, remuneration Auditors, remuneration for non aLtdit work Legal & professional fees 7,100 11,861 7,388 5,500 12,888 NET INCOMEIIEXPENDITURE) Net in¢omellexpenditurel is ststed after chargingllcredilingl. 2023 2022 Auditors, remuneration Other non-audit services Depreciation - owned assets 8,000 10,961 51,056 7,388 5,500 44,572 The subsidiary's audit and accountancy fee was £2.800 {2022'. £2,550) Page 19 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 10. TRUSTEES, REMUNERATION AND BENEFITS 2023 2022 Trustees, fees Trustees. expenses 2023 2022 Trustees, expenses 1,708 3,723 Trustees. expenses relate to travel and subsistence 11. STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pension costs 487,432 39,812 8,361 344,890 24,465 6,329 535,605 375,684 Th@ av@rage monthly number of employees during the year was as follows.. 2023 23 2022 19 Teaching and administration No ernployees received emoluments in excess of £60,000. The key management personnel of the charity are the trustees and departmental directors. The total employment costs including employer pension contributions of key management personnel totalled £73,391 12022 £67.8121. Included in key management personnel are trustees costs relating to J Dyson £9,585 for tutor fees and meals and £4,310 for other expenses and A Blsmpied- Radojcin £10,380 for tutor fees_and £101 for expenses 12. COMPARATIVES FOR THE STATENIENT OF FINANCIAL ACTIVITIES Unrestrtcted funds Restricted funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities 16,743 2,162 18,905 Education 797,798 797,798 Investment income Trading income Other income 428 430,000 65.407 428 430,000 65,407 Total 1,310,376 2,162 1,312,538 Page 20 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted funds Reslricled funds Total fvnds EXPENDITURE ON Charttable activities Education 995,170 53,686 1,048,856 Bank loan interest Subsidiary's trading activities 3,015 382,024 3,015 382,024 Total 1,380,209 53,686 1,433,895 NET INCOMEIIEXPENDITUREI {69,833) 151,5241 1121,3571 RECONCILIATION OF FUNDS Transfers between funds Total funds broughtforward 2,251,466 182.062 2,433,528 TOTAL FUNDS CARRIED FORWARD 2.181,833 130,538 2.312,171 13. INTANGIBLE FIXED ASSETS (GROUP AND COMPANY) Patents and lieences COST Additions 1.608 AMORTISATION Charge for the year 268 NET BOOKVALUE At30 June2023 At 30 June 2022 Pa9e 21 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 14. TANGIBLE FIXED ASSETS (GROUP AND COMPANY} Machinery and office equipment Freehold property Short leasehold COST Al 1 July 2022 Additions Disposals 2,549,361 435,023 77,000 188,695 14,797 At 30 June 2023 2,984,384 77,000 183,492 DEPRECIATION At 1 July 2022 Charge for year Eliminated on disposal 371,565 26,441 77,000 161,177 4.370 At 30 June 2023 398,006 77,000 165,547 NET BOOK VALUE At 30 June 2023 2,586,378 At 30 June 2022 2,177 796 7,518 Fixtur@s and fittings Library Books Totals COST At 1 July 2022 Additions Disposals 413,102 87,149 16,848 3,225,006 536,969 At 30 Junè 2023 500,251 16,848 3,761,975 DEPRECIATION At 1 July 2022 Charg8 for year Eliminated on disposal 320,037 19,977 16,848 946,628 50,788 At 30 June 2023 340,014 16,848 997,416 NET BOOK VALUE At 30 June 2023 160,237 2,764,55g At 30 June 2022 93,065 2,278,378 Page 22 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 15. FIXED ASSET INVESTMENTS {GROUP} Listed investments MARKETVALUE At 1 July 2D20 and 30 June 2022 12,268 NET BOOK VALUE At 30 June 2023 12,268 At 30 June 2022 12,268 There were no investment assets outside the UK. Emerson College holds 265 Depository Receipts in Triodos Bank NV. The charitable company's investment al the Balance Sheet date includes the £1 ordinary share in Emerson College Enterprises Limited sel up lo develop some of the properties with Emerson College stte. Emerson College Enterprises Limited Class of shares - Ordinary holding 1 OOQk 16. STOCKS 2023 2022 Stocks - Company Work-in-progress - Subsidiary 37,667 181,457 40,995 562,702 Group 219,124 603,697 17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 2022 Trade debtors other debtors Intercompany account Prepaymènts and accrued income 64,430 61,614 116,090 22,448 19,351 145,395 156,194 Charitsble Company 2023 2022 Tra(Se debtors Other debtors Intercompany account Prepayments and accrued income 58,053 58,901 485,735 19,351 112,425 17,261 1,026,890 17 656 622,040 1 174,232 ?? nf 2?
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED forthe ear ended 30 June 2023 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 2022 Trade creditors Social security and other taxes Other creditors Pension creditor Private loan5 Accruals and deferred incom& Bank Loan 61,491 11,050 9,735 45,000 64,048 3,586 9,541 70,297 332,969 40,000 380,504 40,000 500,245 567 978 Charitsble Company 2023 2022 Tradè creditors Social security and other taxes Other creditors Pension creditor Accruals and deferred income Bank Loan 61,490 11,050 9,734 45,000 330,103 40,000 63,388 3,586 9,540 70,297 377,854 40,000 497,377 564,665 The pension creditor disclosed as due within one year represents an estimate of the reduction in the liability which will be achieved in the next 12 months and not the actual peyments lo be madè in the next year. 18a. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR {Group and Charitable Company) 2023 2022 B8nk loans (see note 17bl 106,667 146,667 The bank loan is as s result of covid 19 and is sècured by the Government. The loan is non repayable for the first year and will be repaid ovei 6 years. 18b. LOANS An analysis of thè maturity of loans is given below.. 2023 2022 Amounts falling due within one year on demand.. Bank loans 40,000 40,000 Amounts falling between one and bNo years.. B8nk loans - 1-2 years 40.000 Amounts falling due between two and fi've years.. Bank loans - 2-5 years 65,667 106,667 Page 24 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 19. MOVEMENT IN FUNDS (Group and Charitable Company) Net movement in funds Transfers between At 30.6.23 funds At 1.7.22 Unrestricted funds General fund Biodyn2mic agriculture Holistic Baby & Child Care BD 14115 Libfftry Storytelling Beyond Words Designated Education Fund 2,144,917 26,019 474 188 7,937 3,098 (212,7461 18,3951 11071 12291 7,213 771 1411 1.932,130 16,624 367 41 15,150 3.869 2,181,633 (213.4931 1,968,140 Restricted funds Biodynamic agriculture fund Initiative Group Ruskin Hall (Refurbishmentl stage Library - Holistic Baby & Child Bursary Holistic Baby Anthroposophic Nursing Healing Words Storytelling Emerson Bursary Pfftctioners & Teachers Mrs Hunter Anthromed Scholarship Eurythmy Mrs Hunter Anthromed Teachers Training Pixton Restoration Aesculapius AAthroMed 10,t57 1,593 16,954 330 1,510 1,087 1,036 3,858 642 1,467 91,904 15191 9,638 1,593 15,934 330 {1,020) 11,5101 11,0871 1.036 3,858 213 7,387 89,694 11.21S 1,072 11,021 3,497 2,315 1429) 5,920 122.2101 11,215 1,072 11,021 3,497 2,315 130,538 8,265 138,803 TOTAL FUNDS 2,312,171 1205,2281 2.106,943 Page 25 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDA TED FINANCIAL STATEMENTS - CONTINUED for the ear ended 30 June 2023 Nel movement in funds, included in the above are as follows.. Incoming resources ResoUrS expended Movement in funds Unreslrlcted funds General fund Storytelling Biodynamic agriculture Holistic Baby & Child Care BD 14115 Course Development Library Education Fund 1,221,758 7,214 74 11071 {1,226.7961 1212,746} 7,214 18,3951 {1071 {2291 770 18,4691 {2291 1,000 1,230,709 (1,236,494} 1213,4931 Restricted funds Biodynamic agriculture fund Ruskin Hall (Refurbishmentl Bursary- Holistic Baby & Childcare Library- Holistic Baby & Childcare storytelling General Emerson Bursary Practioners & Teachers Mrs Hunter Anthromed Scholarship Eurythmy Mrs Hunter Anthromed Teachers Training Pixton Restoration Aesculapius Anthromed 15191 11,0201 11,0871 11,5101 142gi 1519) {1,0201 {1,0871 {1,5101 14291 5,920 122.2101 111,2151 1,072 11,021 3,497 2,315 5,920 122,2101 138,850 50,065 1,072 15,000 3,497 2,315 13,9791 77,869 169,6041 8,265 TOTAL FUNDS 1,308,578 11,306,098) 205,2281 Pa9e 26 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 19. MOVEMENT IN FUNDS- continued Comparatives for movement in funds Net movement in funds Transfers betwèen funds At 1.7.21 At 30.6.22 Unrestricted funds General fund Biodynamic agriculture Holistic 8aby & Child Care BD 14115 Course Development Library Storytelling Beyond VVord$ Education fund 2,220,017 25,019 1,974 (75,100) 2,144,917 25,019 474 {1,5001 229 4,227 (41} 3,710 3,098 188 7,937 3,098 2,251,466 169,8331 2,181,633 Restricted funds Biodynamic Agriculture Initiative Group Rusknn Hall (Refurbishmttntl Stage Library - Holistic Baby & Child Bursary Holistic Baby Anlhroposophic Nursing Healing Words Storytelling Emerson Bursary Practioners & Teachers 18,699 1,593 16,954 330 1,510 1,087 1,036 3.858 1,809 1,405 135,701 {6,5421 10,157 1,593 16,954 330 1,510 1,087 1,036 3858 642 1,467 91,904 11,167) 62 143,8771 182,062 (51,5241 130.538 TOTAL FUNDS 2.433,528 1121,3S71 2.312,171 Page 27 of 32
Comparative net movement in funds. included in the above ?re as follows.. Incoming resources Resounes expended Movernent in funcls Unrestricted funds General fund Storytelling Holistic Baby & Child Care BD 14115 Course Development Edu¢stion Fund 968,349 3,099 11,043,493) {75,1441 3.099 11.50DI 3,710 {1,500} Restricled funds Emerson Bursary Praclioners & Teachers storytelling Biodynamic agriculture fvnd 975,158 11,044.9931 169,8351 62 62 (43,8771 (1,1671 143,877) 11,1671 6,5421 62 151,5881 151,524) TOTAL FUNDS 975,220 (1,096,579) 1121,3571 P8ge 28 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED for the ear ended 30 June 2023 19. MOVEMENT IN FUNDS- continued RESTRICTED FUNDS Bio namics a riculture fund This fund represents the donation from a third paty lo construct and equip a building lo support a biodynamic training sch&me. The building was constructed a number of years ago, bul as the trustees are of the opinion that the restriction imposed by the donor extends beyond the construction of the building to an ongoing requirement that the building is used for the prescribed purpose this fund stands at the value of the original donation les5 th8 estimated depreciation of the building since its construction. Emerson College Trust Limited no longer owns this building and the balance has now been transferred to general reserves. Initiative Grou Funds raised to support students, social activitiès. Ruskin Hall Refurbishment Dor*ations received for refurbishment of Ruskin Hall Sla Funds wère received to improve the stage in Ruskin Hall. Libra Holistic and bab childcare Fund for Steiner Waldorf intemational birth to three training programme. Bursa Holistic Bab & Child Funds were received which are to be applied to a bursary on this course. Anthro oso hic Nursin Fund for the experienced based training in anthroposophical nursir¢g which leads to an exiended understanding of the human body. Healin Words Donation from International School of Storytelling for promotion and support of this storytelling course Sto Bursa Funds to provide bursaries for students on Storytelling Beyond Words course Sto tellin General Fund These arè the donations rece5ved for the art and craft of storytelling lo prepare people to carry the spoken word with a lively imagination into the community and places of work. Emerson Bursa Bursaries are offered to students in cases decided by the college. Praclioners and Teachers A legacy was received lo sel up a bursary for practioners and teachers. Mrs Hunter Anthromed Scholarshi Bursaries for students attending the Anthroposophical Medicine Course. Eu Ihm Resourtss to promote Eurylhmy courses and related initiatives. Mrs Hunter AnlhroMeQ Teacher Trainin Bursarles for training new teachers for the Anlhroposophical Medicine course. Piston Restor tion Fund Resour¢es to promote tha development of Pixton Building. Pa96 29 of 32
Aescula ius Anthromed Fund Bursaries for students attending the Anthroposophical Medicine course. DESIGNATED FUNDS Biod namics s riculture This fund provides bursary support for students wishing to train in biodynsmie agriculture at the college. page 30 of 32
Holistic Bab & Child Course Develo Ment This fund represents course development for the Holistic Baby and Child course.. Libra This fund was 8el up for library improvements. Sto ond Words Donations received are used to provide bursaries and course development. 20. PENSION COMMITMENTS As referred to in the 8ccounting policies the charitable company partlcipale8 in a defined benefit pension scheme, providing benefits based on final pensionable earnings, which is the basi¢ salary. The scheme has equal pension rights with respect to members of either sex. The assets of the scheme are held in a separate trustee administered Imulti-employerl fund. Although the assets and liabilities of the fund are not wholty attributsble to the Charitable company the scheme actuaries have ¢alcul8ted each emplDyels share of the fvnding shortfall as the proportion of the total that their past servi¢e liability bears to the total past seNice liability. The actuary's report as al 31 March 2007 disclosed that the scheme was in deficit in the order of £4.7 million and that Emèrson College Trust Limited's share of that deficit was £434,ODO and this was reflected in the accounts to 30th June 2008. The scheme funding shortfall was adjusted for contributions and expenses and accrued to 31st December 2008 and resulted in a revised deficit of £5.049 million with Emerson College Trust Lirnited's share rising to £449,945. The scheme has been GIDsed to further benefit a¢¢rual, and the future contributions levels have been calculated to eliminate the scheme deficit over a period of 19 years. These contributions commenced at £31,622 per annum together with an annual £10,694 contributior) to cover expenses. Every 1 April the CotrIbutIOnS are increasing by 5Yo. Emerson also has a liability with the other employers of the scheme lo fund the scheme's shortfall. The annual contribution from January 2022 increased to approximately £96,664 The most recent actuarial valuation was undertaken by an independent professionally qu81ified actuary ?$ at 29 December 2021 using the statement of funding principles. The prsncipal assumptions which have the most significant effect on the computation of the pension costs are those related to the rate of retum on investments (assumed lo be 1.6Q/o Post retirement and 1.6 /0 pre-tireMentI and the rate of increase in the Consumer Prices Index (assumed to be 2.70/0 pal. These assumptions have been dèrived from the market yields applying al the valuation date. In particular, the investment return used relating to prtrrelirèmenl liabilities was 2.15 percentage points per ar¢num in excess of the assumed rdte of increase in consumer price inflation. The actuarial Valuation Initial Results as at December 2021 showed that the scheme was in deficit in the order Df £12.9 million, and that Emerson's share of that deficit was approximatety £1.65 million. An estimated valuation as at 30 June 2023 has seen the dèficit reduce to £8.16 million and Emerson's share to approximately £1.35 million. The best estimate valuation of the deficit al 31 December 2021 was £5_64 million - 8est estimate basis is the calculation of the liability with all margins for prudence removed. This is the basls which the actuari8g expect to reflect the true cost of providing benefits to members of the Scheme. As there wa5 such a huge difference bètween the deficit in the scheme as calculated on the SFO basis from the 'best estimate" the trustees obtained independent professionel advice a number of years ago as to when the current payment plan would eliminate Emerson's share of the deficit. The independent actuary's opinion was that the current payment plan will pay off the deficit by 2029 not 2035 as anticipated under the SFO basis. Following the 2021 actuarial valuation the contribution plan has Changed and the scheme actuaries anticipate the current payment plan will clear the deficit on, a 'besl estimate basis by 31 March 2034. Using a discount rate to redu the deficit at 29 OeGember 2021 to nil by 31 March 2034 the funding shortfall at 30 June 2023 was estimated lo be £875,65012022'. £705,300). The actuarial loss arising this valuation was £207,708. The total payments made to this pension scheme in the year under review was £98,402 12022". £94,363). The payment was composed of 3 parts, pension administration £44,644, finance costs £16,400 & repayment of the dèficit £37,358. Page 31 of 32
EMERSON COLLEGE TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED forthe ear ended 30 June 2023 21. RELATED PARTY DISCLOSURES Related paty transactions for the year ended 30th June 2023 are disclosed in note 11. 22. TRADING INCOME AND EXPENDtTURE The subsidiary's income was £673,99912022'. £482,399), made up of trading income £645,00012022.' £430,00018nd other Income £33,38012022.. £47,092) and the costs before donation and interest to Emerson College Trust Limited werè £465,06812022. £382,024). 23. FINANCIAL PERFORiVIANCE OF THE CHARITIABLE COMPANY 2023 2022 Income Interest from intercompany loan Gift from SLJbsidiary Gain on sale of tangible fixed assets 1,033,598 35,977 177,943 881,339 24,792 70,360 1,247,518 (1,245,038) 207 708 1205,2281 2312 169 2 106 941 Expenditure on charitable activities Actuarial loss Net lexpenditurellin¢ome Total funds brought forward Tokl funds carried forward 976,491 11,097,849) {121,3581 2 433 528 2 312 170 Represented by". Unrestricted Funds Reslricled Funds Total Funds 1,968,138 138 803 2 106941 2,181,632 130538 2312 170 Page 32 of 32