The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
The Fellowship of the
School of Economic Science
Report and Financial Statements
For the Year Ended 31 December 2015
The School of Economic Science
Registered Charity Number: 313115
OSCR No.: SC039950
1
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Table of Contents
REPORT OF THE TRUSTEES ........................................................................................................... 3
1. Status and Trustees .......................................................................................................................... 3
Trustees ........................................................................................................................................................ 3
2. Governance structure and management ........................................................................................... 4
Trustee Election, Induction and Training ..................................................................................................... 5
Management Arrangements ........................................................................................................................ 6
Development Plan ....................................................................................................................... 6
Financial accounts ........................................................................................................................................ 7
Property Trustees ......................................................................................................................................... 7
Endowment Fund Treasurer ........................................................................................................................ 8
Finance Sub-Committee ............................................................................................................................... 8
Investment Sub-Committee ......................................................................................................................... 8
Staff Sub-Committee .................................................................................................................................... 8
Membership Committee .............................................................................................................................. 9
Advertising and Communications Committee ............................................................................................. 9
Risk Management.......................................................................................................................................10
Advisers ......................................................................................................................................................11
Courses, lectures and events .....................................................................................................................12
Promoting the Arts .....................................................................................................................................14
Residential courses.....................................................................................................................................15
Educational and other associations ...........................................................................................................15
4. Achievement and Performance ....................................................................................................... 16
Properties ...................................................................................................................................................17
Waterperry Gardens ..................................................................................................................................17
5. Public Benefit ................................................................................................................................. 18
Publications ................................................................................................................................................19
6. Financial Review and Results for the Year ........................................................................................ 19
Investment Gains .......................................................................................................................................20
Investment Income.....................................................................................................................................20
Reserves Policy ...........................................................................................................................................21
7. Plans for the Future ........................................................................................................................ 22
8. Auditor........................................................................................................................................... 23
Report of the Independent Auditor ........................................................................................... 24
Respective responsibilities of trustees and auditors .................................................................................24
Scope of the audit of the financial statements ..........................................................................................24
Opinion on financial statements ................................................................................................................25
Matters on which we are required to report by exception .......................................................................25
Consolidated Statement of Financial Activities .......................................................................... 26
Group and Charity Balance Sheets ............................................................................................. 27
Consolidated Cash Flow Statement ............................................................................................ 28
Notes to the Financial Statements ............................................................................................. 29
Appendices ............................................................................................................................... 47
2
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
REPORT OF THE TRUSTEES
The Trustees present the Report and audited accounts for the year ended 31 December 2015.
The financial statements have been prepared in accordance with the accounting policies set
out in Note 1 to the financial statements and comply with the Charity’s governing document,
applicable law and the requirements of the 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 (FRS102).
1. Status and Trustees
1.1 The Charity is the Fellowship of the School of Economic Science ("the Fellowship"), which
was established in 1937 and is registered in England and Wales as an Educational Charity No.
313115. It is also registered with the Office of the Scottish Charity Regulator under registration
number SC 039950. The governing instrument of the Fellowship is the Rules of the Fellowship
as amended at an Extraordinary General meeting on 8 March 2009 and further amended at the
Annual General Meeting of 21 July 2009.
1.2 The membership of the Fellowship at December 2015 consisted of 239 Ordinary Members
and 40 Associate Members. Fellowship members are appointed by the Executive Committee on
the recommendation of the Membership Committee in accordance with Rule 3 and Rule 12(8).
Trustees
1.3 The Trustees of the Charity during the year are listed below. Seven members of the
Executive Committee and the Principal and Treasurer elected in July 2013 were re- elected at
the AGM in July 2015.
agreed to continue in the office of General Secretary.
The Trustees are:
continued to serve as a co-opted member until having to resign due to
branch commitments.
Note: (1) Member of the Finance Sub-Committee
(2) Member of the Investment Sub-Committee
(3) Member of the Estates Sub-Committee
(4) Member of the Staff Sub-Committee
(5) Member of the Advertising and Communications Committee
(6) Member of the Membership Committee
1.4 The Trustees have appointed four sub-committees to advise and report on specified areas
3
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
of responsibility. They are the Finance Sub-Committee; the Investment Sub-Committee; the
Estates Sub-Committee and the Staff Sub-Committee. At least one Trustee sits on each SubCommittee. The Trustees are also represented on the Advertising and Communications
Committee which is otherwise appointed from among the student body and chaired by the
Senior Tutor.
1.5 Four members of the Membership Committee are elected annually at the AGM and a
Trustee is appointed by the Trustees to serve with them.
2. Governance structure and management
2.1 The Rules set out the Objects of the Charity. These are:
1) To promote the study of natural laws governing the relations between men in
society and all studies related thereto and to promote the study of the laws, customs
and practices by which communities are governed and all studies related thereto.
2) To disseminate by all lawful means knowledge of the matters referred to in (1)
hereof.
3) To promote any art or science, to produce, print, publish and circulate any
periodicals, books and works of art.
4) To organise a School for the furtherance of these objects, such School to be
known as the School of Economic Science.
5) To advance for the public benefit education in the United Kingdom and in
particular by establishing or maintaining or assisting one or more schools for children.
2.2 Object 6 contains various provisions to assist the furtherance of the above objects,
including the acquisition and holding of land and chattels, funding, the provision of library
facilities, etcetera.
2.3 The Objects of the Charity are carried out through the School of Economic Science (“the
School”), established and maintained in accordance with Object 4. In furtherance of its objects,
the School offers a unique form of continuing adult education based on Practical Philosophy
and Economics-with-Justice through courses developed within the School. From those
foundations studies extend into many other fields including language, Renaissance studies,
Plato, art, music, law, government and education. Through the School in London and its
seventeen regional Branches the Fellowship offers its courses to the public at some sixty
locations throughout England and Scotland. Studies are directed by the Senior Tutor,
. The School works on a principle of voluntary service and the Senior Tutor is
supported by a team of volunteers, including Branch Leaders, all of whom are also students in
the School. Branch Leaders also act as delegates of the Trustees for the practical administration
of their particular Branch.
4
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
2.4 The Fellowship owns a number of properties in the UK which are mainly used for
delivering the School's courses in furtherance of the Objects. Five cottages at Waterperry, the
Lodge at Nanpantan and two other properties are used for residential purposes either to
accommodate essential staff or to provide income to the Fellowship.
2.5 The Fellowship meets once each year in Annual General Meeting to approve the Report of
the Trustees and the Financial Statements and to elect the Officers and other members to form
the Executive Committee for the following year. A quorum of two-thirds of the number of
Ordinary Members is required. Associate Members may attend General Meetings but do not
have a voting entitlement.
2.6 Any person currently enrolled on a Philosophy or Economics course in the School of
Economic Science (Rule 3) is eligible for membership of the Fellowship.
2.7 The Membership Committee continues to monitor the breadth and strength of the
membership of the Fellowship. During the year 2 people ceased being members, and 7
students accepted becoming members.
2.8 The Chairman and the Treasurer are officers elected annually under Rules 8 and 9
respectively. The Chairman is also the Chairman of the Executive Committee and the Principal
of the School. The other Trustees are the members of the Executive Committee elected
annually at the Annual General Meeting in accordance with Rule 12(1) and co-opted members.
Each of the Trustees can be contacted via the School's head office at 11 Mandeville Place,
London W1U 3AJ.
2.9 The general philosophic direction of the School’s work and the scope and content of study
material continues under the direction of the Senior Tutor, who is responsible for making or
approving appointment of tutors and Branch Leaders. There is close communication with the
Trustees in relation to these matters.
Trustee Election, Induction and Training
2.10 Under the Rules of the Fellowship, the Trustees are elected by and from the Ordinary
Members of the Fellowship who have invariably obtained considerable knowledge and
experience of the work of the Charity prior to becoming members of the Fellowship. As
Ordinary Members they are required to receive the annual reports and financial statements
and elect the Officers and Executive Committee annually. As a result, even newly appointed
trustees are familiar with the work and ethos of the Charity long before they become trustees.
On appointment they are supplied with the minutes and agendas for the previous year’s
business of the Executive Committee and are free to question any member of the Committee, or
Internal Auditor about any aspects of the Committee’s business or the general administration
of the School should they so wish. New Trustees are also supplied with Charity Commission
guidance on the role and responsibilities of Trustees.
5
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
2.11 As a matter of policy, each year at least two members of the Executive Committee attend a
one day external seminar on Charity Governance so as to ensure that the Executive Committee
is kept up to date with developments in charity governance and trustee responsibilities.
Several trustees regularly receive the charity magazine, Governance.
Management Arrangements
2.12 The day-to-day management of the Charity is undertaken on a voluntary basis by the
Senior Tutor, the members of the Executive Committee, the Branch Leaders and advisers and
assistants appointed from within the Fellowship and current students in the School. The
volunteers are supported by a small and dedicated team of full and part-time paid staff.
2.13 The Fellowship year is divided into three terms, and the Executive Committee normally
meets three times each term, with additional meetings arranged as necessary to deal with any
matters requiring urgent consideration. Twice each year the Executive Committee meets for a
full day to consider matters of a more strategic nature outside the normal run of business.
2.14 The Branch Leaders as local representatives of the Fellowship are provided with clear
Terms of Reference by the Trustees. They typically meet at the end of January with the Senior
Tutor for a three-day residential period during which Trustees attend to speak about and
discuss current issues and matters relating to the management and organisation of the School,
and their role as Trustee representatives. The aim is to allow the Branches as much autonomy
as possible while maintaining the unity of the School as a whole. The current Trustee with
particular responsibility for the Branches is
who is himself a Branch Leader.
2.15 Decisions on matters of policy and strategy are made by the Trustees on behalf of the
Fellowship in consultation where appropriate with the Senior Tutor. Decisions relating to the
day to day operations of the School are implemented by the relevant person within the
management structure, and within the policy and strategy framework as set out by the
Executive Committee.
2.16 There is provision in Rule 19 for an officer, or two or more members of the Executive
Committee, or at least ten Ordinary Members to call an Extraordinary General Meeting of the
Fellowship at any time to discuss and vote upon matters of major significance (e.g. major
changes in policy or strategy, proposed actions outside the scope of established policy etc.).
There were no requests for additional meetings during the year to 31 December 2015
Development Plan
2.17 The Executive Committee’s aims and activities for the year to December 2015 were
outlined in a Strategic Plan the main aims being summarised as being to:
 Support the further development of the studies of the School
 Reflect philosophic principles in the organisation and administration of the School;
 Take care of the Trustees’ regulatory obligations and the reputation of the School.
6
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Statement of Trustees’ Responsibilities
2.18 The Trustees are responsible for preparing the Report of the Trustees and Financial
Statements in accordance with applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice).
2.19 The law applicable to charities in England, Wales and Scotland requires the Trustees to
prepare financial statements for each financial year which give a true and fair view of the state
of affairs of the charity and the group and of the incoming resources and application of
resources of the group for that period. In preparing these financial statements, the Trustees are
required to:

Select suitable accounting policies and then apply them consistently;

Observe the methods and principles in the Charities SORP;

Make judgments and estimates that are reasonable and prudent;

State whether applicable UK accounting standards and statements of recommended
practice have been followed, subject to any departures disclosed and explained in the
financial statements; and

Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Charity will continue in operation.
Financial accounts
2.20 The Trustees are responsible for keeping proper accounting records that 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 Rules, the Charities and Trustee
Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as
amended) and the provisions of the Charity’s constitution. They are also responsible for
safeguarding the assets of the Charity and the group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
2.21 The Trustees and staff, through the Finance Sub-Committee meetings continue to improve
the financial accounting practices in recognition of their obligations and in response to the
advice from the Charity’s auditors. In particular, a new 5 year Budget for property maintenance
has been developed and introduced in 2016, while a Finance Manual has been drafted but had
not yet been adopted at the end of the accounting period.
Property Trustees
2.22 Rule 15 provides for the appointment by the Trustees of not more than five nor less than
three Property Trustees for the purpose of holding and dealing with "any freehold or leasehold
properties from time to time acquired by the Fellowship and the proceeds of sale thereof and
all monies or other property of the Fellowship in their hands upon the terms of a Trust
7
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Deed….". This is necessary because the Fellowship is an unincorporated association.
The current Property trustees are:
Endowment Fund Treasurer
2.23
was appointed to the role of Endowment Treasurer in 2014 assisted by
Finance Sub-Committee
2.24 The Executive Committee has appointed a Finance Sub-Committee under Rule 12(6)
comprising:
2.25 The meetings of the Finance Sub-Committee are also normally attended by the accounts
manager and minutes of its meetings are kept.
Investment Sub-Committee
2.26 The Executive Committee has also appointed an Investment Sub-Committee under Rule
12 (6) comprising:
2.27 In December 2010, acting upon the advice and recommendations of the Investment SubCommittee, the Executive Committee placed funds to the value of £4,000,000 with two
investment fund managers, listed below (para 2.40). In the period since then the market value
of these investments has fluctuated within the expected range and have been partly drawn
down for operating purposes. One of the trustees
is an employee of Heartwood
Wealth Management. The investment strategy will be reviewed in 2016.
Staff Sub-Committee
2.28 The Executive Committee has appointed a Staff Sub-Committee under Rule 12 (6)
comprising:
8
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
2.29 Early in the year the Fellowship’s Office Manager notified the Trustees of her intention to
retire following the AGM. Before doing so she formulated a plan for a revised management
structure which after careful consideration was adopted by the Trustees. As a result
was appointed as General Manager with an assistant,
At about
the same time the enrolments manager,
also retired and
was appointed in her place.
joins the Executive Committee meetings as an ex
officio member. The new management arrangements have resulted in significant
improvements in management efficiency and in the services provided to the Fellowship and
Senior Tutor and have been widely welcomed.
2.30 The Trustees extend their grateful thanks to
for over a decade of dedicated
all the best in long and happy retirements.
service and wish her and
Remuneration Policy
2.31 The Fellowship aims to pay its employees a fair salary commensurate with their skills and
level of responsibility, comparable to the private sector. There is an annual pay review in April,
which aims to keep pay increasing in line with the real cost of living in London. The School
contributes 7% of Gross salary to the pension fund of each employee, and has offered all
employees pension advice. One employee earned between £60,000-£69,999 during the year.
During 2016, a system of performance appraisals was introduced, to be conducted annually in
future.
Membership Committee
2.32 The Fellowship elected the following members of the Membership Committee at its AGM
in July 2015:
agreed to continue as the Trustee’s representative on the membership
Committee.
Advertising and Communications Committee
2.33 Attracting new students to the School is a high priority since offering courses to the public
is the most visible benefit provided by the School and the main means of fulfilling the Charity’s
Objects. Advertising and its effectiveness is kept under constant review by the Advertising and
Communications Sub-Committee. (See 1.4 above).
2.34 Advertising for Branches within the UK is administered locally under the direction of each
Branch Leader. In London the primary form of advertising historically has been cross track
posters on the London Underground supplemented by search engine 'pay per click' advertising
9
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
and the maintenance of websites providing information and a primary means of enrolment.
Advertising particularly in London is a significant cost and the Advertising and
Communications Sub-Committee seeks to maximise personal referrals and promote the
School’s reputation.
2.35 In December 2014 the decision was made to offer the Introductory Philosophy and
Economics courses free of charge (except for a modest administration charge) on the basis
that:
(a) more people attending the courses better fulfills the objects of the Charity;
(b cost may be a barrier to access for some who would value the courses;
and the new approach might be cost neutral if
(c) it translated into higher (paying) uptake of the second term or
(d) it facilitated a reduction in cross-track advertising for the same uptake
Several Branches elected to trial the same approach.
2.36 As anticipated the experiment resulted in much higher enrolment for introductory
courses making the work of the Fellowship available to a larger group of people. Additionally
the proportion of new students attending due to personal referrals has increased. The greater
numbers have allowed for a reduction in the use of cross track posters from three times to
once a year bringing a significant reduction in London advertising costs. The initiative to offer
free courses is being kept under review but seems likely to continue.
2.37 The Trustees hope that further benefits may arise in the medium term if personal
recommendations increase in place of more costly methods of promotion.
Risk Management
2.38 The trustees are required to certify each year that the major risks to which the Charity is
exposed have been assessed and that appropriate steps are being taken to minimise those
risks. A comprehensive risk management structure is in place and is kept under regular review.
is the member of the Executive Committee with overall responsibility for these
matters having taken up the role in 2014.
a) Implementation of the risk management procedures continues to be undertaken on a
voluntary basis by:
Risk Manager
Assistant Risk Manager
b) The key to risk management in the day to day operations of the Charity is the attention
and care taught in the courses, practised by the students and built into the ethos of the School.
To support this the risk management team has produced a set of policy statements and other
guidance covering the main risk areas for the benefit of those who assist in this process (e.g.
house stewards and bursars, tutorial staff, Branch Leaders and local risk managers). An
approved Health and Safety policy statement has been issued to all relevant persons. Meetings
10
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
with Branch representatives took place during the year and the process is continuing. The key
risk management controls are:
 Individual care and attention given by students and tutors.
 Formal agendas for all meetings of the Executive Committee, which are circulated in
advance in draft form for comments or additions;
 Risk Management as a regular agenda item with reports ‘by exception’ from each
committee member;
 The issue of action lists shortly after each Executive Committee meeting for review at
the next meeting;
 The circulation of information throughout the management structure on the principal
legal requirements (e.g. health & safety, protection of the vulnerable, provision for the
disabled etc.) and on issues arising from time to time;
 A comprehensive organisational structure with clear lines of reporting;
 The setting of annual budgets and interim budget monitoring for the various activities
and cost centres;
 Strategic planning, budgeting and management accounting;
 Clear authorisation and approval procedures.
c) Specific risks were identified and addressed as follows:
(i) Risks associated with ongoing WGL losses and falling staff moral were
addressed through adoption of a radical business plan involving both
management and board restructuring.
(ii) To ensure governance policy documents were both useful and relevant,
Policies and Terms of Reference were placed on a new review schedule
and any not reviewed in last 3 years were brought up to date as required.
(iii)
The financial risk of continuing deficit was addressed through a
series of radical measures working parties. Most effort was directed at the
potential savings through property consolidation. The report was
scheduled for release in early 2016.
(iv)
Risks to trustees and others in responsible positions were
considered through revisiting incorporation. It was decided that at the
present time there was little to gain due to costs and changes to
organisational structures involved.
(v) Health and Safety risks addressed the implications of CDM (construction,
design and management), logging activities, and improved fire alarm
testing; two minor accidents were reviewed.
Advisers
2.39 The Charity has appointed external advisers from time to time for various purposes, as set
out below:
Bankers
National Westminster Bank plc
2a Charing Cross Road
London WC2H 0NN
Statutory Auditors
11
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Sayer Vincent LLP
Invicta House
108-114 Golden Lane
London EC1Y 0TL
Insurance Brokers
Access Insurance
Selsdon House
212-230 Addington Road
South Croydon CR2 8LD
Solicitors
Field Fisher Waterhouse
34 Vine Street
London EC3N 2AA
Collyer-Bristow
4 Bedford Row
London WC1R 4DF
Investment Managers
Heartwood Wealth Management
77 Mount Ephraim
Tunbridge Wells Kent TN4 8BS
Ruffer LLP
80 Victoria Street
London SW1E 5JL
3. Delivering the Objects of the Charity
3.1 As indicated above, the Fellowship fulfills its Objects through the School of Economic
Science, established and maintained in accordance with Object 4. The School of Economic
Science aims to be a centre of spiritual and practical knowledge and enquiry for people
leading normal working and family lives. The intention is to help individuals lead full, rich
and useful lives, in service of society and to evolve the spiritual aspect of their being in
accordance with natural laws.
Courses, lectures and events
3.2 The prime Objects 1 and 2 are most visibly pursued by offering courses, seminars and
workshops in economics, philosophy and related topics. Courses and events are offered in
London and through eighteen regional Branches at approximately fifty locations throughout
England and Scotland. The School also publishes books and audio recordings of lectures etc
and maintains contact with and supports similar studies throughout an international
network of more than thirty associated Schools with similar objects in sixteen countries.
12
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
3.3 The courses advertised to the public in both Economics-with-Justice and Practical
Philosophy offer an introduction to fresh and stimulating approaches to both subjects. The
School provides for students to continue their studies for as long as they wish viewing
philosophy in particular as a life-long study with practical applications at all stages of life.
3.4 The courses treat philosophy as a personal and practical attitude to life and its
opportunities, enabling people to deepen and develop an understanding of life and of
themselves. They are not academic courses such as would be followed in a university but
develop as far as possible on practice and experience. The School has found that exploring
the inner life requires a method of cultivating inner stillness and for this purpose students
are offered an introduction to the practice of meditation after a few terms' study of
philosophy. Thereafter, regular practice of meditation is central to the study and practice of
philosophy. The value of this approach has become very widely accepted in recent years
under the name ‘mindfulness’ and the Fellowship is pleased to support and participate in
that development with the benefit of its 50 years’ experience of continuous practice.
3.5 Economics-with-Justice is taught as a human and social subject derived from observable
principles of the universe and human relationships with and within them. The School offers
the view that economics has to be founded on principles of justice and equity and that
economic injustices indicate failures to understand or observe basic natural laws or
principles in economic policy. All the major problems of contemporary economic life can be
examined from this perspective with a view to offering practical policies and principles as
the foundation of a more just and equitable economic system. These courses too are aimed
at the interested citizen.
3.6 Because they are intended for people with normal working and family lives, the
School’s courses are based on evening classes offered on a weekly basis. These are
supported by weekend activities, and weekend and week-long residential seminars are
available to students who have studied in the School for some time.
3.7 Introductory philosophy courses are offered at every location other than the residential
centres. In London they are offered on five weekday evenings and on Saturday mornings,
but elsewhere the frequency of these courses varies from location to location according to
the available resources and demand. In London economics courses are offered on three
weekday evenings and on Saturday mornings, and several branches also offer economics
courses. In addition, a range of Saturday studies are available on Saturday mornings in
London under the general title of ‘Horizons’.
3.8 In the year to 31 December 2015 a wide variety of courses, concerts, lectures and
conferences were offered. The Horizons programme continued to offer a variety of subjects
at Mandeville Place on Saturday mornings. The Sanskrit Faculty continues to make a
substantial contribution to the study of the Sanskrit language in the UK and elsewhere and
work continues on the highly respected translation of the Letters of Marsilio Ficino which
13
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
have been a major contribution to the revival of academic studies of this little known but
extremely influential Renaissance philosopher. Numerous presentations and courses were
organised across the Branches. Economics with Justice, Philosophy and Sanskrit are
available on-line.
3.9 Following the success of "The Value of Values" conference in 2014 a further event is
planned to be held in 2016 at Waterperry in conjunction with Globalisation for the
Common Good Initiative.
Promoting the Arts
3.10 Object 3 includes the promotion of the arts. The Fellowship meets this in part through
supplementary studies undertaken by groups of students within the School that have over
many years included an art group, a music group, translation groups and many others.
Calligraphy has been practiced in the School for many years both as a fine art and as a
reflective practice in fine attention. The School’s choir Discantus gave a number of public
concerts in the UK and overseas and there was a series of early evening concerts at the
School’s main building in Mandeville Place, London.
3.11 Art in Action is the single largest and most public element in this part of the Fellowship’s
work. Founded by a member of the Fellowship
in part on the simple
observation that people are fascinated when artists and craftsmen demonstrate their skill and
discuss their work. In 1977 51 artists and musicians took part and 14,000 visitors attended.
In 2015, under the direction of
, Art in Action welcomed approximately
25,000 people over four days. Visitors come to learn, buy, take classes and enjoy the
performances of 400 demonstrating artists, designer-makers, teachers, musicians and
performers.
3.12 Art in Action is organised, managed and staffed by students assisted in recent years by
increasing numbers of public volunteers. The principle of Art in Action is to demonstrate the
value of the artistic intent in action that is the defining characteristic of art. The emphasis is
upon supporting the artists to demonstrate the exceptionally fine quality of attention,
discipline and love that they bring to their work and to match that with a similar standard of
artistry in action in the work of staff and volunteers serving them and the public visitors.
Service
3.13 Although a fee is charged for courses to cover fixed costs the School was founded on the
Socratic principle that knowledge should be given free of charge and has continued to
maintain that principle. Service without seeking individual benefit or reward is central to the
ethos of the Charity. The School’s teaching services, based on the principle of learning and
teaching and guided by a love of truth and justice, are provided entirely on that principle by
students whose own studies have progressed sufficiently to enable them to pass what they
have learned on to others. Much of the administration as well as renewal and maintenance of
premises is also provided on the service principle as part of the practical application of
philosophy. It is one of the main principles of the School that no-one should gain financial
14
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
benefit from their participation. Only the weekday office staff at Mandeville Place and a few
other persons are full or part time paid employees.
3.14 Students also staff the refreshment and bookshop facilities that are provided in
support of classes and other events on a voluntary basis.
Residential courses
3.15 The School has residential study centres at Waterperry House in Oxfordshire,
Nanpantan Hall in Leicestershire and Brinscall Hall in Lancashire. All of these venues are used
mainly for residential weekend and week-long courses which supplement and enhance the
philosophy, economics and other courses provided by the School. At times when Waterperry
and Nanpantan are not in use by the School rooms are available for hire and this produces
some modest revenue which helps to defray the costs of running the houses which in turn
helps to keep fees down. Nanpantan Hall is now licensed for the conduct of weddings and is
being actively promoted for that purpose with a view to providing funds for the charity.
Educational and other associations
3.16 During the last fifty years the School has assisted the establishment and development
of associated Schools with similar objects to those of the Fellowship in numerous countries
around the world. Close contact is maintained with these Schools through regular visits by
the Senior Tutor and other tutors from the UK and elsewhere and through the provision of
study materials. The leaders of associated Schools attend meetings in the UK from time to
time and students from associated Schools often attend residential events in the UK and
assist with Art in Action. These arrangements enable the work of the School to reach many
thousands of students in other parts of the world.
3.17 Students of the School who were at that time the parents of young children were
instrumental in establishing The Independent Educational Association Limited (IEAL) in
1975. The IEAL is a separate charity that operates the St James Independent Schools for
children between the ages of 4 and 18. The St James Junior School in Stockport occupied
premises owned by the Fellowship which are also used by the North-West Branch for evening
courses but was closed in the summer of 2015.
3.18 Students of the School have continued to support the St James’ schools financially and
by providing direct voluntary service and fund-raising activities. The Fellowship continues to
provide occasional financial and other assistance to the St. James schools in accordance with
Rule 1(5), and IEAL has also provided facilities for use by the School. One member of the
Executive Committee of the Fellowship is currently a member of the Governing Board of IEAL
3.19 Some years ago students in the School established another separate charity known as
the Education Renaissance Trust, which aims to support and encourage similar initiatives in
the field of education. There continue to be close links with this organisation and the School
supports its work by providing accommodation and other facilities from time to time.
15
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
3.20 There is a common purpose to these educational ventures which is to advance for the
public benefit a holistic education for children which takes full account of their spiritual,
mental, emotional and physical needs in the context of the present age. The schools combine
traditional teaching methods and subjects with new initiatives like introducing meditation
and mindfulness practices, offering Sanskrit as a classical language and teaching appropriate
aspects of philosophy from an early age. The children’s schools are highly respected and
recognised leaders in exploring and using such added dimensions to children’s education.
Although they are independent charities, their aims and methods are entirely consistent with
those of the Fellowship.
3.21 Senior students in the School have also been instrumental in establishing and
currently play a role in a number of other charities with broadly similar aims. Among
these is the Jyotirnidhi Nyasa Trust, whose principal object is to advance education in
Vedic philosophy and the Sanskrit language in India and elsewhere.
3.22 The School is a corporate member of the Coalition for Economic Justice a loose
association of charitable and other groups with a common interest in the establishment of
economic justice on similar principles to those taught in the economics course. Some
meetings of the Coalition are hosted at the premises at Mandeville Place in London and also
meetings and courses held by another coalition member, the Henry George Foundation. The
School’s policy is to be open to informal links with like-minded people and organisations
whose objectives are compatible with Fellowship’s Objects.
4. Achievement and Performance
4.1 The School is not a public fundraising charity and does not set fund-raising targets nor in
general any specific aims for expansion. The main sources of funding are fees from courses
(which are kept to a necessary minimum), gifts and legacies with some contribution from
interest from investments. Steps continue to be taken to find supplementary sources of
income and to safeguard the value of the Charity’s assets.
4.2 At the close of 2015 there were 2,300 students enrolled in London and the Branches.
Since founding in 1937 the schools have provided courses to tens of thousands of people in
the UK; in London over 55,000 students have attended philosophy classes. In addition during
the year occasional events have been organised ranging from a two week Plato Study
conference at Delphi in Greece to numerous public talks and events in London and Branches.
4.3 The following actions have been undertaken:

The School continues to organise courses, seminars and events to enable
students to present the findings of their studies to a wider public.

Contact continues to be made and maintained with like-minded organisations with a
view to collaborating with them in the development of common fields of study.
16
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015

Work on advertising and promoting public courses as cost-effectively as possible has
continued particularly with increased use of electronic communications and social media.

Budgets have been carefully reviewed to enable the Charity to function within its means.

The use of the School’s residential properties has also been reviewed to identify means
of making better use of the facilities which the Fellowship has available.
Properties
4.4 In addition to its residential premises referred to at 2.4 and 3.15 above the Fellowship
owns nine other freehold properties and one long leasehold, used for the purpose of
delivering its courses. Otherwise, many Branches take premises on short leases or occupy
premises under licence to deliver courses.
Waterperry Gardens
4.5 When the Waterperry Estate was acquired in the 1970s there was an established
horticultural centre which the School maintained and expanded consistently with Object 3
(promote arts and sciences). The horticultural centre is now run as a separate trading entity
known as Waterperry Gardens Limited. WGL is wholly owned by the Fellowship. Waterperry
continues to command international renown for the formal gardens which are supported by a
garden shop, tea shop, gift shop and art and crafts gallery. Waterperry has been a centre of
excellence in horticultural arts and science since before the Fellowship acquired it and has
been maintained and developed as such. The enterprise provides horticultural courses
recognized and accredited by the Royal Horticultural Society as well as training, recreational
and horticultural facilities for public use and enjoyment. Waterperry is a Partner Garden with
the Royal Horticultural Society and an approved centre for RHS Qualification levels 1 -3, is a
well know centre of expertise in apple and pear cultivation and also houses two national
collections of alpine plants of the saxifrage genus.
4.6 Apart from serving the public WGL also maintains the Waterperry estate and makes an
important contribution to the local economy and employment. Students on the School’s
residential courses at Waterperry enjoy the benefit of the beautiful gardens and setting.
4.7 In 2010 the Trustees decided to invest £495,000 in enhancing and developing WGL. To
date some £357,000 has in fact been invested. The return on that investment has not yet
been as anticipated and during the reporting period it became clear that a change in
management structure would benefit both the business and the Waterperry estate. As a
result of a review by the Board of Directors and the Trustees the management of the
business has been consolidated with the overall management of the estate under the
direction of the Steward of Waterperry. Under its new management all aspects of the
business have been closely scrutinized and it is confidently expected that the resulting
reforms will begin to produce an appropriate return on investment in the near future.
17
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
4.8 Following the management changes during the period several of the directors of the
company, including the Chairman,
, stood down and the Trustees wish
to extend their thanks to them for their service during a difficult time for the business.
took was appointed Chairman of the Board and represents the Trustees on the
Board.
4.9 The financial results of Waterperry Gardens Limited are consolidated with those of the
Fellowship and are included in the Consolidated Statement of Financial Activities and Group
Balance Sheet. A separate Balance Sheet has been prepared to show the position of the
Charity alone.
5. Public Benefit
5.1 The Trustees are very conscious of the Charity's obligation to benefit the public and have
referred to the Charity Commission’s general guidance on public benefit when reviewing aims
and objectives and planning future activities. Courses are offered to the general public at over
fifty locations in the UK, with the Practical Philosophy course being offered three times a year
in most of them, often free of charge except for a modest administration fee. As described
earlier, the School also provides study materials and other support to many associated
schools offering the same or similar courses in other parts of the world.
5.2 The Practical Philosophy courses are available to everyone, and this is made clear in the
publicity material. They are widely advertised and in recognition of the principle of
knowledge given free course fees, if charged at all, are kept to a practical minimum sufficient
to cover the regular running costs. There are concessions for those on low incomes or
experiencing financial hardship. Capital expenditure is largely met out of accrued financial
resources together with bequests and donations from students who can afford to contribute
over and above the regular payment of fees.
5.3 A major new initiative was launched in Spring 2014; to offer introductory courses free of
charge except for a minimal £10 administrative fee in London and some Branches. As
indicated above, it is hoped that this initiative will make the principle of ‘knowledge given
free’ more directly evident and further extend the public benefit delivered by the Charity.
5.4 The introductory courses continue to attract students from a wide spectrum of the public
and in all age groups from teenage years upwards. The School is committed to an ethic of
lifelong learning and development and many students continue to attend classes throughout
their adult life also providing the service upon which the School depends. Additionally, its
educational aims and the study opportunities that it provides cover a broad spectrum, all
based on the fundamental philosophy that humanity is united in a common conscious essence
and that natural laws offer the possibility that human beings can live freely and prosperously
without exploitation or misuse of Nature.
5.5 The work of the School described above under Object 3 advances the arts in many ways.
Art in Action serves to support and publicise the activities of the considerable number of
18
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
artists and crafts people from the UK and various other countries around the world who
demonstrate their work to the public at the event. The fresco paintings created by the Art
Group of the School at Waterperry House are regularly open to the public with popular
guided tours. Art courses are offered to the public under the Art in Action banner from time
to time and have proved popular. In addition the School provides public drawing and painting
classes at St. Oswald’s Studios in West London.
5.6 Through Waterperry Gardens Limited the School supports the advancement of the art
and science of horticulture including by offering courses to the general public. The high
standards of horticultural courses are recognised by the Royal Horticultural Society and the
courses are popular. The nationally recognised ornamental gardens have been maintained
and substantially enhanced over the years since the School acquired Waterperry House and
grounds. WGL also offers public courses in various arts and crafts.
Publications
5.7 An audio recording of ‘The Ten Principal Upanishads’, the translation by
and W B Yeats CD was produced and made available in 2015. In June 2015 Shepheard-Walwyn
published the 10th volume of The Letters of Marsilio Ficino, translated by members of the
Renaissance Group. Shepheard-Walwyn also published No Debt, High Growth, Low Tax, an
analysis of Hong Kong’s fiscal regime by
, a member of the Economics
Department of the School. The School also published The Sounds of Sanskrit, a CD of Sanskrit
hymns, scriptures and sutras, set to music and sung by
, a songwriter and
Sanskrit scholar in the School. Half the proceeds will go to the School and half to the Chetana
Trust, which was established by the late Vasant Kothari to promote the teaching of Sanskrit. A
revised edition of Extracts from Blackstone’s Commentaries on the Law of England is in
preparation with a view to publication early in 2016.
6. Financial Review and Results for the Year
6.1 The consolidated Statement of Financial Activities which accompanies this report
shows that the Group generated a surplus in the 12 months to end December 2015 of
£1,399,000 compared to the deficit of £1,045,000 in the previous 12 months. The
comparative figure for the Charity alone (excluding the trading results of Waterperry
Gardens Limited) is a surplus of £1,391,000 compared to the previous 12 month’s deficit
of £1,054,000. The factors contributing to the overall financial improvement are described
below.
6.2 Waterperry Gardens Limited generated a surplus of £8,000 for the twelve months to
December 2015, after group transfers. This compares to the 12 months of 2014 when a
surplus of £7,000 was made. This was achieved despite one off redundancy costs, and some
investment in the operation. There is further commentary on the progress being made at the
Garden centre elsewhere in this report.
6.3 The Charity’s income from courses was almost the same compared to last year, which is
encouraging, given the experiment to offer Introductory courses free, after the £10
19
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
administration fee. However voluntary income at £1,272,000 was significantly higher than
last year’s total of £228,000, and explains the turnaround. This breaks down to £1,086,000
from legacies, and £186,000 from donations and gift aid. The Charity’s trustees are
extremely grateful to all those who make voluntary donations to the Fellowship by way of
legacies or otherwise.
6.4 The Art in Action festival surplus at £9,000 (before support costs) was encouraging
compared to the 2014 loss of £41,000, despite the fact that attendance was lower than we
anticipated, once again. The allocation of support costs across all activities is a requirement
of the Charity SORP, and does not necessarily reflect the largely voluntary effort in staging
Art in Action.
6.5 The total Charity resources expended on courses and residential property fell from
£2,464,000 to £1,472,000. This was due to the much reduced programme of refurbishment
during the year.
Investment Gains
6.6.Investment gains for the year were £424,000. This is the net position after property
transactions and a fall in the value of investments with our fund managers Heartwood and
Ruffer combined of £447,000. This includes withdrawal of £450,000 during the year, to
support ongoing Charitable activities, once again higher than the planned 3% withdrawal pa.
The remaining rental properties in Australia from the Anthony Graham legacy were sold in
2015, showing a loss of £65,000 against their book value, while 87 Brook Green has been
revalued to £3m.
Investment Income
6.7 Our investments with Heartwood and Ruffer continue to show marginally positive
returns net of fees, despite the need for draw downs in excess of the planned 3% per annum.
G r o s s Investment income for the year was £142,000 which breaks down into dividend
income of £43,000, rental income of £98,000 from 87 Brook Green, and Australia, as well as
£1,000 of interest from the bank. Costs were £74,000 for the year made up of management and
agency fees. A further review meeting with both Heartwood and Ruffer took place in June
2015, and the Investment sub committee has recommended some changes to our investment
strategy, which is currently being considered by the EC. Further meetings will be held with
our fund managers in June 2016. Trustees will report to the AGM any change in the light of
the review.
6.8 The Charity continues to operate within the prevailing economic conditions in the UK,
where disposable income, particularly for young people, is under pressure, and recognises
that during the next few years it will be difficult to balance its incoming resources with
resources expended. As a result, current expenditure on property has been limited to
maintenance, while improvements will only be undertaken when funds allow. Radical
measures to improve the situation have been under discussion during 2015 and 2016, with
significant reductions in expenditure on advertising for example, and the Fellowship will be
fully briefed on any other significant proposals.
20
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Reserves Policy
6.9 The Charity requires financial reserves to maintain and advance its activities for the
following reasons:
• To retain free of debt its holdings for operational purposes of properties, equipment,
etc. (with a net book value at 31 December 2015 of £14,349,000 million) used
extensively for educational and residential purposes in accordance with the Charity’s
objects. Property ownership provides long term security of tenure, a measure of
financial resilience, the opportunity for higher standards of maintenance, facilities
adapted to the Charity’s specific requirements, and for lower running costs in the long
term than occurs with a dependency upon rented accommodation. In addition, the
following reserves will be held for the purposes described.
6.10 At the year end, the Charity held total reserves of £22,630,000. Of these, £22,172,000
were unrestricted reserves.
6.11 £14,349,000 are held as fixed assets of the charity which are required to enable the
charity to carry out its activities and therefore, not freely available.
Revaluation reserve
6.12 The charity holds investments of £6,841,000. The gains on these investments of £887,000
are held within a revaluation reserve as they have not been realised.
Designated funds
6.13 Building and Capital Asset Reserve - £2m
• To hold building acquisition funds for purchasing additional accommodation,
particularly in the larger branches (currently without property) where many students
attend classes held in rented accommodation. Finding suitable premises with consent
for educational use in the right location is difficult, so there are only limited
opportunities for the Charity to make such investments.
• This Fund can be used for buildings improvement and refurbishment either from the
interest earned thereon or from the capital itself. In recent years fees and other sources
of income have been insufficient to cover such expenses, and this situation is expected
to continue. This fund is also part of the Designated Fund.
Opportunity Reserve - £2m
6.14 The Opportunity Reserve is intended to provide funds to meet special targets of
opportunity or need that further the mission of the organisation, which may or may not have
specific expectation of incremental or long-term increased income. The Opportunity Reserve is
also intended as a source of internal funds for organisational capacity building, such as staff
development, research and development, or investment in infrastructure that will build longterm capacity. The target amount of the Opportunity Reserve will be determined by the
Executive Committee.
21
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
6.15 Free Reserve £2.936m
6.16 The Trustees consider that an adequate level of Operating Reserve is approximately
£1.7m. This would provide sufficient reserves to meet the charity’s running costs for a period
of 6 months in the event of major disruption to our activities.
6.17 This fund would also be used to provide financial support from the Charity fund to the
Benevolent Fund, as referenced in the note about Designated Funds. The balance will for the
time being be held to cover operating deficits, until such time as these can be eliminated.
6.18 At 31 December 2015 unrestricted group reserves were £1.236 million, and the trustees
will invest the surplus funds in line with our investment policy. The trustees will review the
designated funds of the charity in the forthcoming year and update as necessary.
Investment Policy
6.19 During the year the trustees continued to hold investments with Heartwood and Ruffer,
referred to above. Other funds were also placed in deposits with major UK banks.
7. Plans for the Future
7.1 The specific plans for the coming year, in addition to the School's established regular
activities described earlier, can be summarised as:

Continue to develop new opportunities for short courses, seminars and
workshops.

Continue to provide a widening range of learning opportunities to the public through the
above-mentioned facilities including the new free introductory courses initiative; to offer
art workshops to the general public from time to time; and to provide more access and
facilities for the general public at the Waterperry residential centre.

To encourage students of the School to publish articles, leaflets and books on subjects
they have studied within the School, and to provide support to these efforts.

To complete the review and redesign of the School's web site, and expand further the use
of internet and other publicity channels.

To review the School's environmental and sustainability performance, and
implement new measures in accordance with its policy.

To extend its links and where appropriate engage in joint activities with
organisations having similar aims and objects.
22
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
8. Auditors
8.1 The view of the Trustees is that Sayer Vincent LLP continue to add value as our auditors.
They were re-appointed as auditors at the 2015 AGM and have expressed their willingness
to continue in that capacity. We recommend that they are appointed for another year.
Approved by the Trustees on 19 July 2016 and signed on their behalf by:
…………………………………... Chairman
…………………………………...Treasurer
23
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
Report of the Independent Auditor
The Fellowship of the School of Economic Science
Report of the Independent Auditor to the Members Year ended 31 December 2015
We have audited the financial statements of The Fellowship of the School of Economic Science
for the year ended 31 December 2015 which comprise the consolidated statement of financial
activities, the group and parent charity balance sheet, the group cashflow statement and the
related notes.
The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice).
This report is made solely to the charity’s trustees, as a body, in accordance with section
44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 144 of the
Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has
been undertaken so that we might state to the charity’s trustees those matters we are required
to state to them in an auditors' report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the charity and the
charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of trustees and auditors
As explained more fully in the statement of the trustees’ responsibilities set out in the report of
the trustees, the trustees are responsible for the preparation of financial statements which give
a true and fair view.
We have been appointed as auditors under section 144 of the Charities Act 2011 and 44(1)(c)
of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with
regulations made under those Acts.
Our responsibility is to audit and express an opinion on the financial statements in accordance
with applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board’s Ethical Standards for
Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial
statements sufficient to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This includes an assessment of:
whether the accounting policies are appropriate to the charity’s circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting
estimates made by the trustees; and the overall presentation of the financial statements. In
24
The Fellowship of the School of Economic Science
Annual Report and Accounts Year to 31 December 2015
addition, we read all the financial and non- financial information in the report of the trustees to
identify material inconsistencies with the audited financial statements and to identify any
information that is apparently materially incorrect based on, or materially inconsistent with,
the knowledge acquired by us in the course of performing the audit. If we become aware of any
apparent material misstatements or inconsistencies we consider the implications for our
report.
Opinion on financial statements
In our opinion the financial statements:
 Give a true and fair view of the state of the group’s and parent charity’s affairs as at 31
December 2015 and of the group’s incoming resources and application of resources, for
the year then ended;
 Have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
 Have been prepared in accordance with the requirements of the Charities Act 2011 and
of the Charities and Trustee Investment (Scotland) Act 2005 and of regulations 6 and 8
of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 and
Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in
our opinion:
 The information given in the report of the trustees is inconsistent in any material
respect with the financial statements; or
 Sufficient and proper accounting records have not been kept; or
 The financial statements are not in agreement with the accounting records and returns;
or
 We have not received all the information and explanations we require for our audit.
1 August 2016
Sayer Vincent LLP, Statutory Auditors
Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act
2006.
25
The Fellowship of the School of Economic Science
Consolidated statement of financial activities
For the year ended 31 December 2015
Unrestricted
Note
£'000
Income from:
Donations and legacies
Charitable activities
Courses & Residential
Art Festivals
Other trading activities
Investments
Restricted
£'000
2015
Total
£'000
Unrestricted
£'000
Restricted
£'000
2014
Total
£'000
2
1,265
7
1,272
199
29
228
3
3
4
5
1,152
741
1,920
142
8
-
1,160
741
1,920
142
1,161
725
1,875
167
-
1,161
725
1,875
167
5,220
15
5,235
4,127
29
4,156
6
1,869
-
1,869
1,719
24
1,743
6
6
1,393
845
74
79
-
1,472
845
74
2,457
765
76
7
-
2,464
765
76
Total expenditure
4,181
79
4,260
5,017
31
5,048
Net income / (expenditure) before net
gains / (losses) on investments
1,039
(64)
975
(890)
(2)
(892)
424
-
424
(153)
-
(153)
1,463
(64)
1,399
(1,043)
(2)
(1,045)
Reconciliation of funds:
Total funds brought forward
20,709
522
21,231
21,752
524
22,276
Total funds carried forward
22,172
458
22,630
20,709
522
21,231
Total income
Expenditure on:
Raising funds
Charitable activities
Courses & Residential
Art Festivals
Investments
Net gains / (losses) on investments
Net movement in funds
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.
Movements in funds are disclosed in Note 23 to the financial statements.
26
The Fellowship of the School of Economic Science
Consolidated statement of cash flows
For the year ended 31 December 2015
Note
Cash flows from operating activities
27
2015
£'000
Net cash provided by / (used in) operating activities
£'000
2014
£'000
(462)
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Net movement in cash held for investment portfolio
142
(321)
2,332
(1,513)
(169)
Net cash provided by / (used in) investing activities
(494)
167
(558)
2,449
(1,452)
(27)
471
Cash flows from financing activities:
Repayments of borrowing
£'000
-
579
(28)
Net cash provided by / (used in) financing activities
-
(28)
Change in cash and cash equivalents in the year
9
57
386
329
-
-
395
386
Cash and cash equivalents at the beginning of the
year
Change in cash and cash equivalents due to
exchange rate movements
Cash and cash equivalents at the end of the year
28
28
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
1
Accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities:
Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the
Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS
102) (August 2014) and the Charities Act 2011. Under company law the directors must not approve the
financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the
company and the profit or loss of the company for that period.
The accounts (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 Accounting and Reporting by Charities preparing their accounts
in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended
Practice effective from 1 April 2005 which has since been withdrawn.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in
the relevant accounting policy or note.
These financial statements consolidate the results of the charity and its wholly-owned subsidiary Waterperry
Gardens Limited (company number 02233285) on a line by line basis. Transactions and balances between the
charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between
the two companies are disclosed in the notes of the charity's balance sheet. A separate statement of financial
activities, or income and expenditure account, for the charity itself is not presented as the summary of the
result for the year is disclosed in the notes to the accounts.
b) Reconciliation with previously Generally Accepted Accounting Practice (GAAP)
In preparing the accounts, the trustees have considered whether in applying the accounting policies required
by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was required. The transition
date was 1 January 2014. No transitional adjustments were required.
c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going
concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next reporting period.
e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to
the income have been met, it is probable that the income will be received and that the amount can be
measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate
has been granted, the estate has been finalised and notification has been made by the executor(s) to the
charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy,
in whole or in part, is only considered probable when the amount can be measured reliably and the charity
has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the
charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not
been met, then the legacy is a treated as a contingent asset and disclosed if material.
Courses and residential fees are included in the statement of financial activities during the year as earned.
Fees are paid by students attending the early parts of the philosophy courses by the term.
Students attending the early parts of the philosophy course, which make up a majority of this income, pay a
fee covering their attendance at these classes. However, students in the senior parts of the School pay an
annual composite fee that also includes the costs of their residential accomodation and study days
attendance. Any income recieved in advance is deferred.
29
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
1
Accounting policies (continued)
Investment income is recognised as income during the year to which it relates.
Income received in advance of the provision of a specified service is deferred until the criteria for income
recognition are met.
f)
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 bank.
g) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets
these criteria is charged to the fund.
Unrestricted funds are donations and other income received or generated for the charitable purposes.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
h) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party,
it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make
voluntary contributions to it, as well as the cost of any activities with a fundraising purpose

Expenditure on charitable activities includes the costs of courses and residentials and art festivals
undertaken to further the purposes of the charity and their associated support costs

Expenditure on investments relates to investment management fees incurred by the School

Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
i)
Allocation of support costs and governance costs
Resources expended are allocated to the particular activity where the cost relates directly to that activity.
However, the cost of overall direction and administration of each activity, comprising the salary and overhead
costs of the central function, is apportioned directly to the appropriate activity except for some expense items
that have been apportioned accoridng to the space occupied.
Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries,
the costs associated with this publicity are allocated to charitable expenditure.
Where such information about the aims, objectives and projects of the charity is also provided to potential
donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of
literature occupied by each activity.
Governance costs are the costs associated with the governance arrangements of the charity. These costs are
associated with constitutional and statutory requirements and include any costs associated with the strategic
management of the charity's activities.
Support and governance costs are apportioned as follows:

Cost of raising funds

Investments

Courses & Residential

Art Festivals
30
44%
2%
34%
20%
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
1
Accounting policies (continued)
j)
Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
k) Taxation
The Fellowship is a registered charity and therefore is not liable to income or corporation tax on income
derived from its charitable activities, as it falls within the various exemptions available to registered charities.
The subsidiary company is subject to corporation tax but any profits arising will normally be Gift Aided to the
income charity, so generally no tax charge will arise.
l)
Tangible fixed assets
It is the policy of the Trustees to maintain buildings held for charitable use in such condition that their useful
economic life is indefinate. In the opinion of the Trustees, the favourable location of these properties,
combined with this policy, results in the residual value of the properties (by reference to their purchase price)
being not less than their present carrying value in the accounts. Consequently no deprecation is charged on
those properties. An annual impairment is undertaken in accordance with Financial Reporting Standard 11 Impairment of fixed assets and goodwill. When the carrying amount of the asset is higher than the
recoverable amount, the asset is written down.
For other tangible fxied assets depreciation is provided at rates calculated to write down the cost of each
asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Long leasehold property
2% on cost
4-33.3% on cost

Improvements in building

Motor vehicles
25% on cost
10%-33.3% on cost

Equipment
Items of equipment are capitalised where the purchase price exceeds £1,000, but there is some leeway for
branches. Certain temporary items of equipment have been written off at the rate of 50% on cost.

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.
Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net
realisable value and value in use.
m) Investment properties
Investment properties are measured initially at cost and subsequently included in the balance sheet at fair
value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of
financial activities. The valuation method used to determine fair value will be stated in the notes to the
accounts.
Investments
Investments are value in the balance sheet at their mid-market price at the balance sheet date. Investment
management costs are accounted for as incidental costs of the acquisition or disposal where transaction
based, while investment income management costs are charged as expenditure out of the relevant income
funds. Investment gains and losses are shown in the statement of the financial activities.
Investments in subsidiaries
Investments in subsidiaries are at cost.
31
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
1
Accounting policies (continued)
n) Stocks
Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first
out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be
sold in the normal course of business after allowing for the costs of realisation. Provision is made where
necessary for obsolete, slow moving and defective stocks.
o) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered.
Prepayments are valued at the amount prepaid net of any trade discounts due.
p) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of
three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances
exclude any funds held on behalf of service users.
q) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event
that will probably result in the transfer of funds to a third party and the amount due to settle the obligation
can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement
amount after allowing for any trade discounts due.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial
instruments. Basic financial instruments are initially recognised at transaction value and subsequently
measured at their settlement value with the exception of bank loans which are subsequently measured at
amortised cost using the effective interest method.
r)
Foreign currencies
Assets and liabilities in foreign currencies are transalted into sterling at the rates of exchange ruling at the
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange
ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating
result.
s) Pensions
The charity operates a defined contribution scheme for the benefit of employees. Contributions payable are
charged to the statement of financial activities in the eyar they are due. For one member of staff, retirement
benefits have been agreed and the full amount payable recognised as a long term liability. This is recognised
at the new present value, discounted at an appropriate rate as explained in note 15 to the accounts.
t)
Volunteers
In line with SORP 2015, the contribution of general volunteers is not be included as income in the accounts
due to the absence of a reliable measurement basis. However the role of volunteers within the charity is
disclosed in the report of the trustees.
32
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
2
Income from donations and legacies
Legacies
Donations and gift aid
Unrestricted
£'000
Restricted
£'000
2015 total
Total
£'000
2014
Total
£'000
1,086
179
7
1,086
186
102
126
1,265
7
1,272
228
A contingent asset of £940,000 related to legacies has not been included in the financial statements as
although the school received notification by 31 December 2015, other relevant recognition criteria were not
met at the balance sheet date.
3
Income from charitable activities
Unrestricted
£'000
Restricted
£'000
2015
Total
£'000
2014
Total
£'000
Courses & Residential
1,152
8
1,160
1,161
Sub-total for courses & residential
1,152
8
1,160
1,161
Arts Festival
741
-
741
725
Sub-total for art festivals
741
-
741
725
1,893
8
1,901
1,886
Unrestricted
£'000
Restricted
£'000
2015
Total
£'000
2014
Total
£'000
1,645
-
1,645
1,627
54
82
78
61
-
54
82
78
61
65
89
63
31
1,920
-
1,920
1,875
Unrestricted
£'000
Restricted
£'000
2015
Total
£'000
2014
Total
£'000
98
43
1
-
98
43
1
87
80
-
142
-
142
167
Total income from charitable activities
4
Income from other trading activities
Waterperry Gardens admission
Ancilliary activities
Sales of:
Books, Tapes and CDs
Refreshments
Income from room hire and rents
Various other sources of income
5
Income from investments
Rent
Dividends
Bank deposit and short term interest
33
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
6
Analysis of expenditure
Charitable activities
Cost of
raising
Courses and
Arts
funds Investments
residential
festivals
£'000
£'000
£'000
£'000
Staff costs (Note 10)
Direct supply costs
Cost of sales
Welfare
Publicity
Premises - running costs
Premises - major repairs
Legal & professional
Audit and other fees
Administration
Depreciation
Governance
costs
£'000
Support
costs
£'000
2015 Total
£'000
2014
Total
£'000
614
106
701
25
37
40
1
7
47
41
64
-
151
312
2
219
164
104
31
150
142
75
344
86
43
52
36
85
11
41
-
118
34
377
-
958
762
787
45
296
237
144
171
7
659
194
1,610
631
729
66
412
358
175
121
58
700
188
1,619
64
1,275
732
41
529
4,260
5,048
232
9
183
105
-
(529)
-
-
18
1
14
8
(41)
-
-
-
Total expenditure 2015
1,869
74
1,472
845
-
-
4,260
5,048
Total expenditure 2014
1,743
76
2,464
765
-
-
-
Support costs
Governance costs
Of the total expenditure, £4,181,000 was unrestricted (2014: £5,017,000) and £79,000 was restricted (2014: £31,000).
The apportionment of Support and Governance costs is a requirement of Charities SORP (Statement of Recommended Practice). The apportionment
seeks the fairest method of apportioning costs. In this instance we have calculated a percentage of each of the four lines of expenditure based on
the proportion of total direct costs.
34
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
7
Net income for the year
This is stated after charging / crediting:
Depreciation
Loss or profit on disposal of fixed assets
Interest payable
Interest receivable
Trustees' remuneration
Trustees' expenses
Operating lease rentals:
Other
Auditors' remuneration (excluding VAT):
Audit
Other services
Foreign exchange gains or losses
8
2015
£'000
2014
£'000
198
13
-
147
(3)
4
24
1
3
2
21
7
-
24
11
-
Grant making
Cost
St James Durban
Rethinking Economics
Just This Day
Other
At the end of the year
Grants to
institutions
£'000
Grants to
individuals
£'000
Support
costs
£'000
2015
£'000
2014
£'000
10
2
2
-
-
10
2
2
3
1
7
11
-
-
7
11
1
13
-
15
18
-
33
16
Grants are given for education and research purposes.
35
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
9
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
Salaries and wages
Redundancy and termination costs
Social security costs
Employer’s contribution to pension schemes
2015
£'000
2014
£'000
1,094
38
77
(251)
1,062
76
472
958
1,610
The retirement benefits payable to a former employee in 2014 were no longer payable as at the end of 2015.
This has resulted in a credit to staff costs of the remaining liability. At 31 December 2015 retirement
benefits were payable to one other employee which has been included based on the assumptions outlined in
note 20.
One employee earned between £60,000-£69,999 during the year (2014: nil).
The total employee benefits including pension contributions of the key management personnel were
£150,305 (2014: £119,286).
The trustees were not paid or received any other benefits from employment with the charity in the year
(2014: £nil). No member of the board of management received payment for professional or other services
supplied to the charity (2015: £nil).
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £209
(2014: £1,181) incurred by 1 (2014: 3) members relating to attendance at meetings of the trustees.
36
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
10
Staff numbers
The average number of employees (head count based on number of staff employed) during the year was as
follows:
Raising funds
Courses and residentials
Arts festivals
11
2015
No.
2014
No.
74
26
16
72
21
26
116
119
Related party transactions
, one of the trustees of the charity, is also an employee at Heartwood Wealth Management which
manages a portflio of investments on behalf of the charity. The decision to place investments with
Heartwood was made before
became a trustee. In the year, the charity incurred fees of £20,029
(2014: £22,300) for management of the investments.
There are no donations from related parties which are outside the normal course of business and no
restricted donations from related parties.
12
Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable
purposes. The charity's trading subsidiary Waterperry Garden Limited is liable to pay corporation tax at 20%
on any profits not gift aided to the parent charity. In 2015 it received a tax refund of £11 (2014: paid
corporation tax of £11).
37
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
13
Tangible fixed assets
The group
Freehold
£'000
Leasehold
£'000
Equipment/
£'000
Total
£'000
12,282
-
470
1
-
3,780
320
(16)
16,532
321
(16)
12,282
471
4,084
16,837
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
-
224
17
-
2,079
181
(13)
2,303
198
(13)
At the end of the year
-
241
2,247
2,488
Net book value
At the end of the year
12,282
230
1,837
14,349
At the start of the year
12,282
246
1,701
14,229
Freehold
£'000
Leasehold
£'000
Equipment/
£'000
Total
£'000
12,282
-
185
-
2,878
283
15,345
283
12,282
185
3,161
15,628
Depreciation
At the start of the year
Charge for the year
-
25
4
1,233
155
1,258
159
At the end of the year
-
29
1,388
1,417
Net book value
At the end of the year
12,282
156
1,773
14,211
At the start of the year
12,282
160
1,645
14,087
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
All of the above assets are used for charitable purposes.
The charity
Cost
At the start of the year
Additions in year
At the end of the year
All of the above assets are used for charitable purposes.
38
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
14
Investment properties
The group
2015
£'000
2014
£'000
The charity
2015
£'000
2014
£'000
Fair value at the start of the year
Additions
Disposals
Revaluation during the year
3,028
(267)
489
1,118
2,511
(520)
(81)
3,028
(267)
489
1,118
2,511
(520)
(81)
Fair value at the end of the year
3,250
3,028
3,250
3,028
After the sale of investment properties held in 2014 and 2015, the remaining property is Brook Green. This
property was last valued as at 31 December 2015 internally by trustees, based on the market value of similar
properties at that date.
39
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
15
Investments
The group
The charity
2015
£'000
2014
£'000
2015
£'000
2014
£'000
3,820
1,513
(2,113)
4,347
1,453
(2,043)
4,177
1,513
(2,113)
4,704
1,453
(2,043)
(16)
63
(16)
63
3,204
3,820
3,561
4,177
387
218
387
218
Market value at the end of the year
3,591
4,038
3,948
4,395
Historic cost at the end of the year
3,183
3,561
3,540
3,917
The group
2015
£'000
2014
£'000
The charity
2015
£'000
2014
£'000
1,065
19
308
152
88
160
1,124
25
437
132
169
164
1,065
19
308
152
88
160
1,124
25
437
132
169
164
641
223
602
46
60
227
-
663
164
936
46
125
53
-
641
223
602
46
60
227
357
663
163
936
46
125
53
357
3,591
4,038
3,948
4,394
Investments at the start of the year
Additions at historic cost
Diposals at open market value
Unrealised gain on value of shares
Investments at the end of the year
Cash held by broker
Investments comprise:
Heartwood Wealth Management Fund
Equity
Private equity
Bonds
Property
Hedge funds
Cash
Ruffer Fund
Index
Credit/liquid
Equities
Global
Other
Cash
Investment in the UK Subsidiary
There were no investments representing over 5% by value of the portfolio.
40
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
16
Subsidiary undertaking
The charity owns the whole of the issued ordinary share capital of Waterperry Garden Limited, a company
registered in England. The subsidiary is used for non-primary purpose trading activities. All activities have
been consolidated on a line by line basis in the statement of financial activities. Available profits are gift
aided to the parent charity. A summary of the results of the subsidiary is shown below:
2015
£'000
2014
£'000
1,666
(1,355)
1,649
(1,279)
311
370
(301)
(360)
Operating profit / (loss)
10
9
Interest payable
(2)
(2)
Profit / (loss) on ordinary activities
8
7
Profit / (loss) for the financial year
8
7
519
(335)
511
(335)
184
176
Turnover
Cost of sales
Gross profit
Administrative expenses
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds
41
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
17
Stock
The group
2015
£'000
Books
Garden centre stock
18
Debtors
19
The charity
2015
£'000
2014
£'000
124
240
106
238
124
-
106
-
364
344
124
106
The group
2015
£'000
Subsidiary company
Trade debtors
H M Revenue & Customs
Prepayments
Other debtors
2014
£'000
2014
£'000
The charity
2015
£'000
2014
£'000
60
25
24
1,032
67
23
62
49
105
50
25
24
1,010
30
57
23
42
29
1,141
201
1,214
181
Creditors: amounts falling due within one year
The group
2015
£'000
Trade creditors
Accruals
Student loans
External loans
Taxes and social security costs
Retirement benefits payable within one year
Deferred income
Other creditors
42
2014
£'000
The charity
2015
£'000
2014
£'000
101
59
9
52
14
3
189
170
221
6
20
64
43
4
116
77
59
9
7
14
3
46
127
66
6
20
14
43
4
45
427
644
215
325
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
20
Creditors: amounts falling due after one year
The group
2015
£'000
Retirement benefits payable in more than one
year
2014
£'000
The charity
2015
£'000
2014
£'000
33
349
33
349
33
349
33
349
The retirement benefits payable to a former employee in 2014 were no longer payable as at the end of 2015.
This has resulted in a credit to staff costs of the remaining liability. At 31 December 2015 retirement
benefits were payable to one other employee which has been included based on the assumptions below.
The present value of the future cashflows have been calculated using the following assumptions:
2015
2.00%
2.25%
S2NFA
N/A
Discount rate at the end of the year
Future pension increases
Mortality rates basis
Mortality rates improvements
21
2014
3.50%
2.50%
PNA00
0.75%
Pension scheme
The Fellowship does not opreate an independent scheme, but contributes 7% of the salary of those staff who
have decided to enter into a personal pension arrangement, direct to the insurer. The charge for the period
was £68,000 (2014 - £80,000). The remaining pension charge relates to the retirement benefits to be paid
to a former employee as explained in note 15.
43
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
22
23
Analysis of group net assets between funds
Restricted
£'000
Designated
£'000
General funds
£'000
Total funds
£'000
Tangible fixed assets
Fixed asset investments
Net current assets
Creditors: amount falling due in over one year
458
-
3,951
49
-
14,349
2,890
966
(33)
14,349
6,841
1,473
(33)
Net assets at the end of the year
458
4,000
18,172
22,630
Movements in funds
At the start
of the year
Incoming
resources &
gains
£'000
£'000
£'000
£'000
£'000
Restricted funds:
Specific charitable activities
Future branches properties
385
137
15
-
(79)
-
-
321
137
Total restricted funds
522
15
(79)
-
458
1,715
-
-
(1,715)
-
2,300
2,204
-
-
-
(2,300)
(2,204)
2,000
2,000
2,000
2,000
6,219
-
-
(2,219)
4,000
Revaluation reserve
Non charitable trading funds
General funds
(181)
14,671
489
1,666
3,489
(1,658)
(2,523)
398
1,821
887
(173)
17,458
Total unrestricted funds
20,709
5,644
(4,181)
-
22,172
Total funds
21,231
5,659
(4,260)
-
22,630
Unrestricted funds:
Designated funds:
Buildings acquistion
Buildings improvement &
refurbishment
Charity fund
Building and capital asset reserve
Opportunity reserve
Total designated funds
44
Outgoing Transfers
resources &
losses
At the end of
the year
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
23
Movements in funds (continued)
Purposes of restricted funds
The fund comprises of monies raised in prior years for the specific purpose of purchasing a local building for
two branches based in Berkshire and the Midlands. Other funds relate to specific activites of the various
faculties and branches in the School.
Purposes of designated funds
Building and Capital Asset reserve
The purpose of this fund is to hold building acquisition funds for purchasing additional accommodation,
particularly in the larger branches where many students currently attend classes held in rented
accommodation. Finding suitable premises with consent for educational use in the right location is difficult,
so there are only limited opportunities for the Charity to make such investments.
This Fund can be used to for buildings improvement and refurbishment either from the interest earned
thereon or from the capital itself. In recent years fees and other sources of income have been insufficient to
cover such expenses, and this situation is expected to continue.
Opportunity Reserve
The Opportunity Reserve is intended to provide funds to meet special targets of opportunity or need that
further the mission of the organisation which may or may not have specific expectation of incremental or
long-term increased income. The Opportunity Reserve is also intended as a source of internal funds for
organisational capacity building, such as staff development, research and development, or investment in
infrastructure that will build long-term capacity. The target amount of the Opportunity Reserve will be
determined by the Principal and Treasurer, in consultation with the Executive Committee.
24
Reconciliation of net income / (expenditure) to net cash flow from operating activities
2015
£'000
2014
£'000
Net income / (expenditure) for the reporting period (as per the statement
of financial activities)
(Gains)/losses on investments
Depreciation
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Investment income
1,399
(424)
198
(20)
(940)
(533)
(142)
(1,045)
153
184
17
(4)
368
(167)
Net cash provided by / (used in) operating activities
(462)
(494)
45
The Fellowship of the School of Economic Science
Notes to the financial statements
For the year ended 31 December 2015
25
26
Analysis of cash and cash equivalents
At 1 January
2015
£'000
Cash flows
£'000
Other
changes
£'000
At 31
December
2015
£'000
Cash at bank and in hand
386
9
-
395
Total cash and cash equivalents
386
9
-
395
-
Operating lease commitments
The group's total future minimum lease payments under non-cancellable operating leases is as follows for
Equipment
2015
2014
£'000
£'000
Less than 1 year
1 - 5 Years
Over 5 years
27
Results of the parent charity
Turnover
Net result of the charity
46
1
3
-
2
-
4
2
2015
£'000
2014
£'000
3,625
1,391
2,566
(1,054)
The Fellowship of the School of Economic Science
1.
Appendix 1 - detailed Statement of Financial Activities for London and the Branches
(£000's)
This appendix is for information and does not form part of the audited financial statements
31 December 2015
31 December 2014
Income Expenses
Net
Income Expenses
Net
Course & Residential Fees
Philosophy / Economics Fee
Waterperry House
Nanpantan Hall
Brinscall Hall
Sanskrit + Other Faculties
Art Courses
Meetings
Other Activities & Income
Art Festival Income
Art in Action
Investment Income
Interest / Dividends
Rent
Income from WGL
Gain on Sale of Fixed Asset
Voluntary Income
Gift Aid
Donations
Legacies
App note 1
Ancillary Activities
Bookshop
Catering
Rental Income
Other Activities
Total Incoming Resources & Co
before Overhead Expenses
Overhead Expenses
Advertising
Accommodation - London
Accommodation - Branches
Audit Fees
Benevolent Fund
Legal & Professional
Travel & Motor
Administration Salaries
Administration - London
Administration - Branches
Grant to IEAL
Overseas Schools Support
App note 2
721
191
138
35
48
2
25
1
1,161
742
430
112
54
14
609
721
(239)
26
35
(6)
(12)
25
1
552
703
195
138
37
50
4
33
1
1,161
56
16
8
694
703
(267)
(14)
37
(7)
(12)
25
1
467
735
7
725
766
(41)
77
87
3
167
29
77
58
3
137
44
98
2
143
26
44
72
2
117
101
85
1,086
1,272
-
101
85
1,086
1,272
91
85
102
277
-
91
85
102
277
54
82
103
70
309
35
120
4
9
168
18
(38)
99
61
140
69
89
122
26
305
23
51
2
12
88
45
38
120
14
217
3,625
1,538
2,088
2,635
1,577
1,058
-
218
225
318
41
65
10
116
100
21
8
1,120
-
-
310
216
326
45
2
34
13
754
208
37
13
1,959
-
26
-
Total Resources Expended
2,658
Other Gains / (Losses)
(424)
(424)
2,234
1,392
Net Movement in Funds Surplus / (Deficit)
462
152
3,625
47
29
3,536
2,635
153
153
3,689
(1,054)
The Fellowship of the School of Economic Science
2. Appendix 2 - Branches and Student Numbers
This appendix is for information and does not form part of the audited financial statements
Student Numbers
Gross
Operating
Contrib.
Income
Costs
to London
Parts 1 - 6
Parts 7+
2015
2015
2015
Branch
Dec-15 Dec-14 Dec-15 Dec-14
£'000
£'000
£'000
Surplus
/ Deficit
2015
£'000
Surplus
/ Deficit
2014
£'000
Bath / Bristol
Berkshire
Croydon
Devon
East Anglia
Guildford
Kingston
Kent
Lincoln
Midlands
Newcastle
North East
North West
Oxford
Scotland
St Albans
Sussex
Wessex
39
12
66
101
89
63
52
26
106
5
302
268
36
115
40
18
46
13
28
34
3
60
65
45
25
6
17
126
140
27
41
20
25
39
32
31
74
10
66
56
42
20
136
177
46
114
18
25
50
22
24
70
8
67
70
7
47
10
17
158
183
53
94
20
24
57
14.0
10.9
31.7
1.2
29.9
29.2
5.7
17.5
1.5
15.7
0.5
132.6
144.8
15.5
88.1
11.1
12.1
29.8
13.4
7.4
27.2
1.3
22.1
25.9
1.3
10.8
2.5
15.1
128.7
118.2
15.0
65.2
7.9
11.2
28.6
1.0
1.5
3.5
3.9
-
0.6
2.4
4.4
(0.1)
7.9
3.4
4.4
5.2
(1.0)
0.6
0.5
0.4
26.6
0.5
22.9
(0.6)
0.9
1.3
1
3
0
(0)
6
(5)
3
4
(0)
1
0
0
23
2
21
4
(0)
(4)
Total
1,384
0
897
0
592
502
10
80
57
674
346
625
619
3,033.4
1,721.8
1,311.6
(1,111)
2,058
346
1,522
0
3,625.1
2,223.6
1,391.7
(1,054)
London
Charity Totals
9.9
Notes:
1. Student numbers are an approximate guide to philosophy attendees at the third week of Autumn Term 2015.
2. Contributions to London costs represent voluntary payments made by Branches towards London's overhead
expenses.
3. Charity totals for Gross Income 2015 and Operating Costs 2015 shown above do not equal the totals for Income
and Expenses in Appendix 1. This difference is caused by the elimination of transactions between London and the
Branches.
48
The Fellowship of the School of Economic Science
3. Appendix 3 - Fixed Assets - Charity
This appendix is for information and does not form part of the audited financial statements
Cost or
Additions
Cost or
Accumulated
£'000
Nominal Value
(Disposals)
Nominal Value
Depreciation
@ 1/1/15
During Year
@ 31/12/15
& Amortisation
Net
Book Value
@ 31/12/15
Freehold Property
St Oswald Studios, London
83 Brook Green, London
Waterperry House, Oxford
Nanpantan Hall, Loughborough
Brinscall Hall, Preston
64 Woodland Lane, Leeds
13 Addiscombe Road, Croydon
18 Chester St., Edinburgh
26a Portsmouth Rd., Guildford
11-13 Mandeville Place, London
Belmont House, Stockport
89 East Hill, Colchester
Park House, Glasgow
AinA Barn - Waterperry
21a Hamilton Terrace, Arran
Total Freehold Property
Long Lease
Carter Knowle Rd., Sheffield
Total Property
Improvements
Waterperry House
Waterperry Estate
Waterperry Art in Action
Nanpantan Cloakroom upgrade
Nanpantan Cloakroom upgrade
Nanpantan Cloakroom upgrade
Mandeville Place sound-proofing
MP New Carpets
MP Cabinets
MP Windows
Sedlescombe Road Refurbishmen
St Oswald's Studios Refurbishme
St Oswald's StudiosElectrical wor
Nanpantan Coachhouse Improve
Nanpantan New Fire Alarm
NH Central Heating System
NH Stonework
NH New Windows
Waterperry Biomass Project
Wterperry South lodge
Wterperry North lodge
Waterperry New Gate
Waterperry New Glass door
Waterperry -Oil Tank
Waterperry Spinney cottage
Waterperry - Boiler
Waterperry New Road
Branches
Equipment
London Houses
Nanpantan
Waterperry
Art in Action
Branches
Benevolent Fund
Motor Vehicles
Capital in Progress
83 Brook Green
Coach House Improvements
Spinney Cottage
WH Potting Shed
Waterperry New Road
87 Brook Green Refurbishment
Bartlett Cottage
Jacobean Wing Refurbishment
81
48
3,582
618
202
40
330
375
385
5,520
456
228
265
66
87
81
48
3,582
618
202
40
330
375
385
5,520
456
228
265
66
87
-
81
48
3,582
618
202
40
330
375
385
5,520
456
228
265
66
87
12,282
-
12,282
-
12,282
185
-
185
(29)
156
12,467
-
12,467
(29)
12,438
75
206
3
16
14
4
11
3
375
26
3
23
20
67
41
3
672
13
99
5
3
2
7
127
1,818
13
87
206
3
16
14
4
11
3
3
2
375
26
3
23
20
66
41
3
672
13
99
5
3
2
138
14
7
143
2,003
(75)
(181)
(3)
(9)
(8)
(2)
(5)
(1)
(0)
(0)
(32)
(2)
(0)
(11)
(7)
(17)
(10)
(1)
(139)
(5)
(18)
(5)
(1)
(0)
(1)
(1)
(1)
(7)
(543)
12
25
(0)
7
6
2
6
2
3
2
343
24
3
12
13
49
31
2
533
8
81
2
2
137
13
6
136
1,459
361
133
206
117
156
23
995
(321)
(122)
(174)
(74)
(137)
(15)
(844)
40
12
32
43
18
8
152
-
83
63
17
162
360
131
204
117
153
23
987
3
2
(1)
138
14
16
185
1
3
2
2
9
14
1
39
17
1
2
72
69
(1)
(39)
46
(1)
17
(2)
90
83
63
17
162
Total Non Property
2,877
283
3,160
(1,387)
1,773
Total Fixed Assets
15,344
283
15,627
(1,416)
14,211
49
The Fellowship of the School of Economic Science
4. Appendix notes
1 The figures shown in the statement of financial activities take out internal transactions within the group.
Last year’s Voluntary income figure of £277k in the appendix included support to the branches which was removed from
the consolidated figure of £228k.
2 The reduction in Administration costs for 2015 compared to 2014 is due to the inclusion of a pension provision in 2014
of 392k and a reduction of £344.3 in 2015.
50