TRUSTEES’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for year ended 31 January 2015
F I N D H O R N f O U N D A T I O N
Spiritual Community Ecovillage Learning Centre
The Findhorn Foundation Scottish Charity Number SC007233
THE FINDHORN FOUNDATION (Charity Number: SC007233) CHARITY INFORMATION Trustees Lisette Schuitemaker
(Chairperson from 24 November 2014)
Robin Alfred
(resigned 24 November 2014)
Clive Kitson Lady Diana Whitmore
(resigned 24 November 2014)
Mari Hollander Roger Collis Paul Dickinson Mark Anderson Nicola Coombe
(appointed 25 April 2014)
Judith Bone
(resigned 15 May 2014)
Helen Wildsmith
(appointed 6 May 2015)
Chair of Management
Camilla Bredal-Pedersen
The Management Group Martin Roche-Nishimori
(Finance)
Paul Johnson
(Assets)
Chris Brown
(Communications - resigned 13 April 2015)
Michael Mitton
(Communications - appointed 1 April 2015)
Judith Bone
(Education)
Joern Fiebig
(Education)
Caroline Matters
(Spiritual and Personal Development)
Pete Finch
(Park Campus)
India Brown
(Cluny Campus - resigned 15 May)
Kicky Anderberg
(Cluny Campus - appointed 15 May)
Rossana Bonanno
(The Park Living Education and Service)
Micaela Aminoff
(Cluny Campus, Living Education and Service)
General Secretary
John Lowe
Principal Address
The Park, Findhorn, Forres, IV36 3TZ
Auditors
Mazars LLP, Chartered Accountants and Statutory Auditors, Apex 2, 97 Haymarket Terrace, Edinburgh, EH12 5HD
Bankers
Bank of Scotland, Forres Branch, 102 High Street, Forres, IV36 1PA Triodos Bank, 24 Hanover Street, Edinburgh, EH2 2EN
Solicitors
Shepherd & Wedderburn LLP, Solicitors, 66 Queen Street, Edinburgh, EH2 4NE R & R Urquhart WS, Solicitors, 117-121 High Street, Forres, IV36 0AB
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Annual Report and Financial Statements year end 31 January 2015
CONTENTS Charity Information
2
Introduction
4
Highlights
6
Trustees’ Report
9
Auditors’ Report
22
Statement of Financial Activities
24
Balance Sheet
25
Cash Flow Statement
27
Notes to the Financial Statements
28
“The essence for me has been the personal enrichment coming from living in a diverse yet focused community, with an underlying spirituality centred on universe, creation, nature and the oneness of all creation.” Applied Ecovillage Learning Participant
Annual Report and Financial Statements year end 31 January 2015
3
Dear Friends,
A man came in the door of Traigh Bhan, our retreat house on the island of Iona that was given to the Findhorn Foundation many years ago, when we Trustees happened to be meeting there. He came to thank the Foundation, he said, for being there. For doing what we are doing. For continuing to be an inspiration to so many around the world. Some of us recognised him immediately as a
Lisette Schuitemaker, from
former congressman from the United States. With courage and
the Netherlands, first came
foresight, and often alone in his views, in his sixteen years in office
to the Findhorn Foundation
this man worked tirelessly for peace, human rights and social
in 1998 and recognised the
justice. And he came to thank the Findhorn Foundation for being
Foundation and community
an inspiration to him through the years.
as the outer manifestation of her inner world. Having
We don’t always know who it is we touch with the work that we
recently sold her PR &
do, with the way that we live, in striving to create a new story for
Communications agency,
humanity. We know it when we see the eyes of first timers light up
she volunteered to do PR
or when we felt the buzz of the world come together at the New
and fundraising for the
Story Summit in September 2014. We know it when children from
Foundation and was asked
nearby schools come for a day and when we talk to young people
to be a Trustee in 2001. She
who want to make their life within our community. Consciousness,
has served on the Board
however, has its own methods of reaching out to those who are
of Social Venture Network
ready to wake up to the reality of life as partnership with all that is.
Europe, has chaired a
That, in essence, is the new story.
number of charities in the Netherlands and is currently
In the Findhorn Foundation we, like so many around the world,
chair of the Centre for
make the choice to be participants in the new story. Every day we
Human Emergence NL. She
choose to see the potential of co-creating life in harmony with
is also an author of three
nature, each other and the divine in each moment. As the new
books on personal and
Chair of Trustees, I feel honoured to serve that purpose. I thank
spiritual development, one
those who have come before us and all who dedicate themselves to
of which has been published
this promising way of life. After 52 years, the Findhorn Foundation
in English.
is still a vital, vibrant organisation. Always changing, growing, adapting to new circumstances and shaping them by our intention, attention and actions.
Lisette Schuitemaker Chair of Trustees
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Annual Report and Financial Statements year end 31 January 2015
VISION STATEMENT The Findhorn Foundation is a spiritual community, an ecovillage and an international centre for holistic learning, helping to unfold a new human consciousness and create a positive and sustainable future. Founded in 1962, this community and centre is built on courageously partnering with all of life, each and every day. Through being a living demonstration of the integration of spiritual principles into everyday life, we seek to foster with others a world based on the essential truths common to all religions and spiritual teachings. As a centre of service, we work to create new models for individuals and communities that seek to embody inspired forms of ecology, economy, culture and spirituality.
Annual Report and Financial Statements year end 31 January 2015
5
SOCIAL
HIGHLIGHTS The New Story Summit, our hugely successful
Our Building Bridges and Outreach
and inspiring autumn special event, was
Departments collaborated to deliver a successful
attended by 335 people from 50 countries
‘Taste of Findhorn’ for 20 Chinese people
on six continents and viewed by hundreds of
creating the first ecovillage in southwest China.
people online from 31 countries. Every person
Their positive experience here led them to invite
part of a growing movement for positive
three Foundation staff members to participate
change, a new story for life on this planet.
in a ceremony in Beijing and work with their emerging project in China. Our staff members were warmly welcomed and this reciprocal visit to China has cemented a strong relationship
ENVIRONMENTAL
between the two bodies.
To ensure its status as conservation land in perpetuity, the Foundation purchased 33.96 hectares of wild land adjacent to The Park from Duneland Ltd, to become the guardian of Wilkies Wood and the surrounding area titled the Hinterland. The purchase was made possible with the help of a generous donation.
Funding received for our Building Bridges
ECONOMIC
department to deliver the Youth Empowerment
6
33.96 Hectares
Programme (YEP) for another three years (two programmes per year). YEP is a three-monthlong opportunity for disadvantaged young people in our local area to join our community, learn life skills, garden, gain confidence and see the possibilities of life.
Annual Report and Financial Statements year end 31 January 2015
Youth Empowerment Programme 3 more years 2 programmes per year 3 months long each
2014/2015 Caroline Myss, Jeddah Mali, Michael Roads
The ongoing collaboration and visioning
and Robert Holden, spiritual teachers known
between the Foundation and the community
worldwide, made return visits this year to
within which it sits to form new structures in
present three- or four-day events. In addition
which our different paths can be celebrated
to those participants physically attending the
and yet made productive for the good of the
events, many more people around the world
whole.
joined online through our web-streaming facility.
Climate Finance Advance, an invitation only event, brought together a select group of experts in climate finance to discuss underpinning and supporting key global agreements on climate change. This gathering was a unique opportunity for the Findhorn Foundation to support the development of a
Supporting a global agreement on climate change
global agreement on climate change.
In close collaboration with the Global Ecovillage Network (GEN), the Findhorn Foundation was awarded European Erasmus Plus funding of 450,000 Euros as co-ordinator of a Sustainable Innovation for Resilient Communities (SIRCle) project. We recognise that partnering and networking with like-
450 000 Euros
minded organisations is becoming increasingly significant in order to work actively with the funds available for the benefit of the evolutionary process of the world as a whole. Annual Report and Financial Statements year end 31 January 2015
7
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Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION TRUSTEES’ REPORT For the year ended 31 January 2015 The Trustees present their report and the financial statements for the year ended 31 January 2015. This report is prepared in accordance with the recommendations of the Statement of Recommended Practice – Accounting and Reporting by Charities issued in April 2005 and complies with applicable law.
OBJECTIVES AND ACTIVITIES
learning experiences our programmes offer, guests are provided with concrete tools that help them to relate to each other and the world in new ways. Central to this is
The Findhorn Foundation recognises that we are all part of an interconnected web of
the application in everyday life of spiritual principles common to all religions and
life. As each individual begins to integrate this knowledge, our behaviour will naturally
ecological practices designed to promote sustainability.
evolve in consciousness and the world will change. To facilitate this evolution
We run approximately 300 programmes
the Foundation offers a wide range of programmes, workshops and events, and a variety of ways to participate, with the aim of creating an environment that enables each person to deepen his or her connection with all of life.
per year (including workshops, conferences and events) and produce a brochure once a year detailing all that is on offer. These programmes are also published on our website at www.findhorn.org where ample information about our vision, aims, and
Visitor Programmes This year the Findhorn Foundation welcomed over 2,000 residential guests from 66 countries and over 5,000 day or
partnerships is also available. In recent years, social media is also being used to engage with and inspire people, mainly through our Facebook pages, the popularity of which continues to grow year on year.
short-term visitors. Through the holistic
Annual Report and Financial Statements year end 31 January 2015
9
Global Network The Findhorn Foundation is grateful for the
The Foundation also enjoys a dynamic
ongoing support of our Resource People
relationship with 122 Fellows across the
(RPs), a group of currently 180 people in 33
world - thinkers, authors, speakers and wise
countries who help us further our aims by
ones who help us fulfil our mission through
organising events in their home countries.
their networks and expertise. The support of
To help support and strengthen this global
these Fellows in advancing the Foundation’s
network, every two years the Foundation
work is invaluable.
hosts a gathering for the RPs and has set up a Facebook group which the RPs use for mutual support and information sharing.
180 Resource People 33 Countries
Community The Findhorn Foundation is part of a spiritual community and ecovillage and this environment enriches our educational and ecological work. This community has evolved to incorporate many like-minded organisations and includes people of all ages and from all walks of life. Together we pioneer living and working the new story
122 Fellows
10
into being.
Annual Report and Financial Statements year end 31 January 2015
Annual Report and Financial Statements year end 31 January 2015
11
Partner Organisations The Findhorn Foundation works in
Empowerment Programme, a three-month
partnership with a number of organisations
opportunity for disadvantaged young
and public bodies globally and locally to
people in our local area. In 2014 we also
offer inspiration and together showcase
delivered seven pilot ‘Creative Breaks’ for
practical applications for sustainable living.
local unpaid carers and those they care for, funded by the Big Lottery in partnership
The Findhorn Foundation is:
with Quarriers and the Moray Council.
Â’ a founding member of Global Ecovillage Network, a well-established worldwide
The Findhorn Foundation also works in close
network of sustainable communities
partnership with our sister organisation
and initiatives, which in July of 2015
the Findhorn Foundation College, which
celebrated its 20th anniversary here at the
develops and delivers accredited courses
Foundation, where it began
in further and higher education and professional development such as the
Â’ a member of the New Findhorn Association (NFA), the umbrella organisation for the Findhorn Foundation Community, founded in 1999 and now in the next phase of its maturity, re-visioning how best to organise, facilitate and hold the increased growth and diversity of the expanding wider community Â’ a member of tsiMORAY, an organisation which assists and supports social enterprises to become more sustainable in relation to a triple bottom line for people, places and planet
Permaculture Design Course, Ecovillage Design Education and a College semester for university students in collaboration with Antioch University which has five campuses in the USA. Established in 2001, the College offers experiential education for personal transformation and sustainable living. The College’s Board of Trustees is appointed in conjunction with the Trustees and Management group of the Findhorn Foundation. The College is in its second year of a three year EU funded FP 7 project to optimise the use of renewable energies generated at The Park. An
Through our Building Bridges initiative, we work closely with Action for Children and the Moray Council to deliver the Youth
12
ecovillage in Portugal and one in Italy are also demonstration sites for the ORIGIN partnership, led by Heriot Watt University.
Annual Report and Financial Statements year end 31 January 2015
Along with the Findhorn Foundation College,
We are grateful for their dedication as both
our other partners in the design and delivery
are also on the Spiritual Caucus Coordinating
of sustainable development programmes are:
Council, of which Frances is co-convenor. Frances is also on the Values Caucus Council.
Â’ CIFAL Scotland - the part of the Local
While serving on these councils, Frances
Development Programme of the United
and John organise meditations, workshops,
Nations Institute of Training and Research
talks and various meetings and events at the
(UNITAR) covering Northern Europe, and
UN Headquarters. They are also members
one of a global network of training centres.
of the Conference of NGOs Committee
Founded and first based in The Park,
on Sustainable Development in New York
Findhorn, it is now located in Edinburgh
(NGOCSD).
Â’ Gaia Education - in July 2015 celebrating 10 years of developing curricula for
Through our Applied Ecovillage Living and Gaia Education Design for Sustainability
sustainable community design drawing
programmes, the latter in association with
from good practice within ecovillages
Findhorn Foundation College, the Foundation
worldwide. Gaia Education’s innovative
has for the past ten years supported the
curriculum for Ecovillage Design Education was launched during the 10th anniversary conference of the Global Ecovillage
UN Decade of Education for Sustainable Development (UNDESD), 2005-2014. UNDESD closed at the end of 2014 and the
Network at the Findhorn Ecovillage in
Foundation, from a position of continuing
October 2005. Their registered office is in The Park, Findhorn
to serve the advancement of sustainability by transforming lives and protecting the planet, is preparing to align its Education for
In 1997, the Findhorn Foundation was
Sustainable Development programmes with
approved for formal association with the
the forthcoming Sustainable Development
United Nations, through the Department of
Goals.
Public Information, as a recognised NonGovernmental Organisation. Since then, we are represented regularly in UN briefing
The trading activities related to the Findhorn Foundation are carried out through a wholly-
sessions by Frances Edwards and John
owned subsidiary, New Findhorn Directions
Clausen at the UN headquarters in New York.
Limited. With a high level of professionalism
Annual Report and Financial Statements year end 31 January 2015
13
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Annual Report and Financial Statements year end 31 January 2015
it provides accommodation, infrastructure
invited to decide how much they would like
and other site services in the context of
to contribute rather than pay a set fee. A
the Findhorn Ecovillage, and manages a
report which outlines the way we went about
holiday caravan park also located in The Park,
this and the results of this experiment is
Findhorn, one of the Findhorn Foundation’s
available for download to anyone interested
two sites.
in gift economy at http://bit.ly/ffger. As a consequence of the interest and success of
The Universal Hall Company runs artistic
the event, the Findhorn Foundation is playing
shows, dance, theatre and music in the
a key role in supporting New Story Follow
Universal Hall in The Park when this is
On initiatives, for instance through the New
not being used for Findhorn Foundation
Story Hub (www.newstoryhub.com).
conferences or events. The performances
The 450,000 Euros European Erasmus Plus
are usually well attended by people from the
funding awarded to the Findhorn Foundation
local area and form a valued addition to the
as the coordinator of a Sustainable
cultural life in this part of Moray which is a
Innovation for Resilient Communities
reason the Company attracts support and
(SIRCle) project, is spread over three years
funding from Creative Scotland.
and will be distributed between ten partner organisations, including GEN, University of
For related party transactions please see note 20.
Lisbon, Aeidl, Altekio and Transition Romania. The project uses adult education to address
Achievements and Performance
one of the most pressing needs of our time, namely how to marry effective grassroots
The Findhorn Foundation was able to
responses to climate and social change with
maintain a good level of trading income
the capacity to make a sustainable living in a
despite the continuing financial challenges in
challenging economic climate. This funding
the world.
was secured in close collaboration with the Global Ecovillage Network (GEN).
Our major event for 2014 was the New Story Summit, which generated an unprecedented
We completed the purchase of 33.96
amount of interest, with record numbers of
hectares of wild land, which added ÂŁ100,000
attendance and hundreds of people viewing
worth of land to our balance sheet.
online through our relatively new web-
Surrounding the Park settlement and titled
streaming facility. The event was attended by
the Hinterland, we are happy to keep this land
a multicultural group of individuals of diverse
in conservation in perpetuity.
ages. It was also a successful experiment in gift economy where participants were
Annual Report and Financial Statements year end 31 January 2015
15
PLANS FOR FUTURE PERIODS In general, our aims for the future are to
We are also enquiring into how we can
continue the development of new services in
attract more young people and make it
order to reach a wider audience globally and
possible financially for them to stay on
locally; to continue to connect with people
and eventually move into positions of
and provide them with tools to increase the
responsibility. A number of initiatives are
quality of their inner and outer lives; and to
under discussion and will be implemented in
continue to lighten our ecological footprint,
the coming year.
for instance by the replacement of caravans and energy inefficient buildings with
The energy of the new story is alive within
permanent buildings or mobile ecological
our whole community as we find our change
alternatives.
process is organically happening in parallel to that of the wider community and its core
The Findhorn Foundation also continues
organisation, the NFA. This feels timely
to make a substantial number of its public
and there is readiness to engage as part of
facilities accessible for all in order to reach a
a planned NFA working group from June
wider audience and will continue to develop
2015 in support of clearer collaboration and
a welcoming and inclusive environment for all.
governance across the whole community.
At the time of this report, the Findhorn Foundation collective of co-workers, Management and Trustees have embarked on a change process which will unfold over the next six to twelve months. This is in response
‘What is needed in the world now?’
to a recognition across our organisation and community over the last year and a half that in order to move into our next phase, shifts and movements related to purpose, culture, structure and governance are required. We are asking the questions, ‘What is needed in the world now?’ and ‘How can we best serve that?’
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Annual Report and Financial Statements year end 31 January 2015
‘How can we best serve that?’
Annual Report and Financial Statements year end 31 January 2015
17
FINANCIAL REVIEW There was a surplus for the year of £219,847. Overall income for the year showed a small
STRUCTURE, GOVERNANCE AND MANAGEMENT
increase to £2,585,046 (from £2,535,182), however programme income, which has been the Findhorn Foundation’s principal funding source for many years, decreased to £1,391,575 (from £1,489,730). Costs decreased to £2,568,854 (from £2,666,105) largely through a decrease in project and other expenditure. Full details of income and expenditure are noted below in this report.
General reserves are mostly held in land and buildings on a long-term basis. This is necessary to fulfil the Findhorn Foundation’s charitable aims by providing accommodation and teaching facilities.
New Findhorn Directions Limited is the Findhorn Foundation’s wholly owned trading company. Total income increased from £651,675 to £701,716, resulting in a final pretax profit for the year of £7,525 compared to £43,792 for 2014.
The group net worth increased by £219,847 (4.5%) to £5,135,519. This is primarily due to property revaluation of The Park Building during the year.
Policy on Reserves The aim of the Foundation’s Financial Reserves Policy is to cover the fixed element of its operational expenditure for four months, using overdraft facilities and/or cash. The current fixed element is approximately one third of total operational expenditure. This policy was adopted by the trustees in May 2013 and will be reviewed at intervals, in relation to perceived risks to the Foundation.
Reserves The amount and purpose of the reserves are set out in note 18. The Development Reserve represents donations received for a number of different projects as specified by the donors. All other reserves are held in order to further the general aims of the Findhorn Foundation as described above.
Governing Document The Findhorn Foundation is a Charitable Trust constituted by the original Trust Deed dated 9 May 1972, as amended 10 December 1998, and is registered and regulated by the Office of the Scottish Charity Regulator.
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Annual Report and Financial Statements year end 31 January 2015
Recruitment and Appointment of Trustees
day running of the Findhorn Foundation is
The appointment of new Trustees is the
co-worker who has worked for the Findhorn
responsibility of the Board of Trustees and
Foundation for more than one year can join
is carried out in close consultation with The
the Council as long as they commit to attend
Findhorn Foundation management team and
meetings and inform themselves about the
the Co-workers’ Council.
background of topics.
Trustee Induction and Training
Trustees benefit from trustee indemnity
delegated to the Management group, in close consultation with the Co-workers’ Council. Any
insurance arranged by and at the expense of New Trustees are appointed bearing in mind
the Findhorn Foundation. None of the Trustees
their familiarity with the mission and vision of
has a beneficial interest in the charity and
the Findhorn Foundation and their expertise
any other interests are clearly declared and
and experience in the field of spirituality,
reviewed annually.
finance, management and other appropriate areas. Induction takes place through a number
Risk Management
of meetings with Trustees, the Chair of Management, relevant managers and others
A risk register is maintained by the
within the organisation.
Management group and reviewed by Trustees and Managers annually. The Trustees have assessed the major risks to which the charity
Organisational Structure
is exposed, in particular those related to The Board of Trustees has overall responsibility
the operations and finances of the Findhorn
for managing the charity and appoints the
Foundation, and are satisfied that systems,
Chair of Management in close consultation
including the risk register, are in place to
with the Management group and co-workers.
mitigate exposure to the major risks.
The Board meets twice a year with the Management group and has regular conference calls and further informal meetings if deemed necessary. Responsibility for the day-to-
Annual Report and Financial Statements year end 31 January 2015
19
Statement of Trustees’ Responsibilities
safeguarding the assets of the charity and
The Trustees are responsible for preparing
irregularities.
hence for taking reasonable steps for the prevention and detection of fraud and other
the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Law applicable
Statement as to Disclosure of Information to Auditors
to charities in Scotland requires the Trustees to prepare financial statements for each financial
So far as the Trustees are aware, there is no
year which give a true and fair view of the
relevant audit information of which the Trust’s
state of affairs of the charity and of the net
auditors are unaware, and each Trustee has
incoming/(outgoing) resources for the financial
taken all steps that he or she ought to have
year. In preparing financial statements giving a
taken as a Trustee in order to make himself/
true and fair view, the trustees are required to:
herself aware of any relevant audit information
Â’ select suitable accounting policies and then
and establish that the Trust’s auditors are
apply them consistently Â’ observe the methods and principles in the Charity SORP
aware of that information.
This report was approved by the trustees on 20th October 2015 and signed on its behalf by
Â’ make judgements and estimates that are reasonable and prudent Â’ prepare the financial statements on the going concern basis unless it is inappropriate
Mari Hollander
to presume that the charity will continue in
Trustee
operation
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply
Mark Anderson
with the Trustees and Investment (Scotland)
Trustee
Act 2005, The Charities Accounts (Scotland) Regulations 2006 and the constitution of the charity. They are also responsible for
20
Annual Report and Financial Statements year end 31 January 2015
Annual Report and Financial Statements year end 31 January 2015
21
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE FINDHORN FOUNDATION For the year ended 31 January 2015 We have audited the financial statements of
with the Auditing Practices Board’s (APB’s)
The Findhorn Foundation for the year ended
Ethical Standards for Auditors. This report is
31 January 2015 which comprise the Statement
made solely to the charity’s trustees as a body.
of Financial Activities, the Balance Sheet, the
Our audit work has been undertaken so that
Cash Flow Statement and the related notes.
we might state to the charity’s trustees those
The financial reporting framework that has
matters we are required to state to them in
been applied in their preparation is applicable
an auditor’s report and for no other purpose.
law and United Kingdom Accounting Standards
To the fullest extent permitted by law, we
(United Kingdom Generally Accepted
do not accept or assume responsibility to
Accounting Practice).
anyone other than the charity and the charity’s trustees as a body for our audit work, for this
Respective Responsibilities of Trustees and Auditor As explained more fully in the Trustees’
report, or for the opinions we have formed.
Scope of the Audit of the Financial Statements
Responsibilities Statement set out on page 20, the trustees are responsible for the preparation
A description of the scope of an audit of
of the financial statements which give a true
financial statements is provided on the
and fair view.
Financial Reporting Council’s website at www.frc.org.uk/apb/scope/private.cfm.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in
Basis for Qualified Opinion on Financial Statements
accordance with regulations made under that Act.
As set out in Note 11 to the financial statements, the buildings shown on the
22
Our responsibility is to audit and express
balance sheet at valuation have not been
an opinion on the financial statements
valued in accordance with Financial Reporting
in accordance with applicable law and
Standard 15, as reflected in Accounting
International Standards on Auditing (UK and
and Reporting by Charities: Statement of
Ireland). Those standards require us to comply
Recommended Practice (revised 2005) (“the
Annual Report and Financial Statements year end 31 January 2015
SORP�). It is a requirement of the SORP that classes of fixed assets included in financial statements at valuation, should be revalued
Matters on which we are Required to Report by Exception
every 5 years with an interim valuation after
We have nothing to report in respect of the
3 years, Note 11 sets out the valuation dates
following matters where the Charities Accounts
by asset. Without more up to date valuations
(Scotland) Regulations 2006 (as amended)
having been carried out, we are unable to
requires us to report to you if, in our opinion:
determine what, if any, adjustment to the carrying value is required.
Â’
the information given in the Trustees’ Report is inconsistent in any material
Qualified Opinion on the Financial Statements
respect with the financial statements; or
Â’ In our opinion, except for the possible effects
proper accounting records have not been kept; or
of the matter described in the Basis for Qualified Opinion paragraph, the financial
Â’
the financial statements are not in
statements:
agreement with the accounting records and
Â’
returns; or
give a true and fair view of the state of the charity’s and the consolidated affairs as at 31 January 2015 and of the consolidated
Â’
incoming resources and application of
we have not received all the information and explanations we require for our audit.
resources for the year then ended;
Â’
have been properly prepared in accordance with United Kingdom Generally Accepted
Mazars LLP, Chartered Accountants and
Accounting Practice; and
Statutory Auditor Apex 2
Â’
have been prepared in accordance with
97 Haymarket Terrace
the requirements of the Charities and
Edinburgh
Trustee Investment (Scotland) Act 2005
EH12 5HD
and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Date
Mazars LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Annual Report and Financial Statements year end 31 January 2015
23
THE FINDHORN FOUNDATION (Charity Number: SC007233) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 January 2015
Notes Incoming resources Incoming resources from generated funds Donations and grants Investment income
3
Commercial trading operations
General Reserve £
Development Reserve £
266,688 2,033
191,676
548,193
-
Property Revaluation Reserve £
Restricted Funds £
Total 2015 £
Total 2014 £
-
-
-
-
458,364 2,033
150,245 3,052
548,193
475,672
Incoming resources from charitable activities
4
1,391,575
-
-
-
1,391,575
1,489,730
Other incoming resources Other income
5
184,881
-
-
-
184,881
416,483
2,393,370
191,676
-
-
2,585,046
2,535,182
1,766
-
-
-
1,766
14,126
669,507
669,507
587,089
138,804
1,857,985
2,027,504
-
-
28,002
406
-
39,190 406
9,384
2,430,050
138,804
-
-
2,568,854
2,666,105
(36,680)
52,872
-
-
16,192
(130,923)
Transfers
46,988
(46,988)
-
-
Net incoming/ (outgoing) resources for the year
10,308
5,884
10,308
5,884
203,655 203,655
Total funds b/fwd at 1 February 2014
2,889,806
103,930
Total funds c/fwd at 31 January 2015
2,900,114
109,814
Total incoming resources Resources expended Costs of generating funds Costs of generating voluntary income Commercial trading operations Charitable activities
6
1,719,181
Governance costs
7
39,190
Other resources expended - taxation Total resources expended Net incoming/ (outgoing) resources before transfers c/fwd
2
-
-
16,192
(130,923)
-
203,655 219,847
(130,923)
1,710,696
211,240
4,915,672
5,046,595
1,914,351
211,240
5,135,519
4,915,672
Other recognised gains and losses Unrealised gains and losses
There were no acquisitions or discontinued operations during the year. The charity had incoming resources of £2,083,051 and a surplus of £219,846.
24
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION (Charity Number: SC007233) BALANCE SHEET As at 31 January 2015
Group 2015 £
Group 2014 £
Charity 2015 £
Charity 2014 £
4,970,625 88,002 ────── 5,058,627
4,847,711 88,002 ────── 4,935,713
4,634,389 440,270 ────── 5,074,659
4,487,953 455,806 ────── 4,943,759
78,145 152,508 478,413 ────── 709,066
51,344 264,983 135,176 ────── 451,503
72,238 119,081 399,991 ────── 591,310
43,665 231,535 95,849 ────── 371,049
(398,774)
(363,000)
(317,517)
(311,767)
Net Current Assets
────── 310,292 ──────
────── 88,503 ──────
─────── 273,793 ───────
─────── 59,282 ───────
Total Assets Less Current Liabilities
5,368,919
5,024,216
5,348,452
5,003,041
Notes Fixed Assets Tangible assets Investments
Current Assets Stocks Debtors Cash at bank and in hand
Creditors: amounts falling due within one year
11 12
13
14
Creditors: amounts falling due after more than one year
16
(212,933)
(87,368)
(212,933)
(87,368)
Provisions for liabilities and charges
17
(20,467)
(21,176)
-
-
────── 5,135,519 ══════
────── 4,915,672 ══════
────── 5,135,519 ══════
────── 4,915,673 ══════
Net Assets
Annual Report and Financial Statements year end 31 January 2015
25
THE FINDHORN FOUNDATION (Charity Number: SC007233) BALANCE SHEET As at 31 January 2015
Notes
Group 2015 £
Group 2014 £
Charity 2015 £
Charity 2014 £
General reserve
18
2,900,114
2,889,806
2,556,362
2,530,519
Development reserve
18
109,814
103,930
109,814
103,930
Funds retained within a noncharitable subsidiary
18
96,516
96,516
-
-
Property revaluation reserve
18
1,914,351
1,710,696
1,914,351
1,710,696
Investments revaluation reserve
18
-
-
440,268
455,804
Restricted funds
18
114,724 ────── 5,135,519 ══════
114,724 ────── 4,915,672 ══════
114,724 ────── 5,135,519 ══════
114,724 ────── 4,915,673 ══════
Financed by:
The financial statements were approved by the Board of Trustees on 20 October 2015 and signed on its behalf by
Mari Hollander Trustee
26
Mark Anderson Trustee
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION (Charity Number: SC007233) CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 January 2015
Notes Reconciliation of operating (loss)/profit to net cash inflow from operating activities Operating (deficit)/surplus (prior to taxation and returns on investments and servicing of finance) Depreciation and loss on sale of fixed assets Decrease/(increase) in stocks (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash inflow from operating activities CASH FLOW STATEMENT Net cash inflow from operating activities Returns on investments and servicing of finance Taxation paid Capital expenditure and financial investment Financing
8 8 8
Increase/(decrease) in cash in the year
Group 2015 £
Group 2014 £
Charity 2015 £
Charity 2014 £
48,629
(104,689)
63,884
(146,291)
240,616 (26,801) 112,475 17,470 ────── 392,389 ══════
240,528 10,609 (7,926) (57,916) ────── 80,606 ══════
208,498 (28,573) 111,357 (15,324) ────── 339,842 ══════
207,224 12,623 23,294 3,531 ────── 100,381 ══════
392,389 (32,028) (4,985) (159,875) 147,736 ────── 343,237 ══════
80,606 (16,850) (13,221) (276,567) 21,220 ────── (204,812) ══════
339,842 (32,157) (151,279) 147,736 ────── 304,142 ══════
100,381 (16,804) (275,412) 15,692 ────── (176,143) ══════
343,237 14,076 (17,797) (145,000) 985 ────── 195,501 (91,976) ────── 103,525 ══════
(204,812) (18,500) (15,692) ────── (239,004) 147,028 ────── (91,976) ══════
304,142 14,076 (17,797) (145,000) 985 ────── 156,406 (102,803) ────── 53,603 ══════
(176,143) (15,692) ────── (191,835) 89,032 ────── (102,803) ══════
Reconciliation of net cash flow to movement in net funds/(debt) (Note 9) Decrease in cash in the year Repayment of interest free loans Increase in Savings and Loan Scheme New Bank Loan secured Repayment of bank loan Movement in net (debt)/funds in the year Net funds at 1 February 2014
9
Net funds/(debt) at 31 January 2015
9
Annual Report and Financial Statements year end 31 January 2015
27
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015
1.
Accounting Policies
1.1
Accounting convention The financial statements are prepared under the historical cost convention, as modified by the revaluation of certain fixed assets, and are in accordance with applicable accounting standards, the Charities Accounts (Scotland) Regulations 2006, Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) issued in March 2005.
1.2
Group financial statements These financial statements consolidate the results of the charity and its wholly owned subsidiary New Findhorn Directions Limited on a line by line basis. A separate statement of financial activities is not presented within the group financial statements for the charity itself, following the exemptions afforded by paragraph 397 of the SORP.
1.3
Depreciation Depreciation is provided on tangible fixed assets at rates calculated to write off the cost of each asset over its expected useful life, as follows: Caravans (second hand) Caravans (new caravans) Buildings Eco-mobile homes Tenant’s Improvements Wind Park Computers Plant and machinery Tools and equipment Fixtures and fittings Motor vehicles
-
Over six years Over twelve years 2%-10% straight line 7% - 10% reducing balance 10% reducing balance 5% reducing balance 33.33% reducing balance 10% - 15% reducing balance 15% - 33% reducing balance 10% - 15% reducing balance 25% reducing balance
All assets costing more than £500 are capitalised except for motor vehicles, where assets in excess of £1,000 are capitalised. 1.4
28
Taxation With the exception of the surplus derived from the activities of the subsidiary New Findhorn Directions Limited, all income is applicable and applied to charitable purposes and relief is given to the Trust under section 505 Income and Corporation Taxes Act 1988.
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
1.5
Hire Purchase and leasing commitments Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Investments The investment in the subsidiary undertaking is stated at net asset value of the company and any unrealised or realised gains or losses are taken to the Statement of Financial Activities. Unlisted investments by the subsidiary, New Findhorn Directions Limited, are stated at cost, which is appropriate under the Companies Acts whilst the treatment for charity investments should be at valuation. The trustees consider that valuation is similar to cost.
1.7
Stocks Stocks are valued at the lower of cost and net realisable value.
1.8
Reserves The general reserve consists of amounts received which have yet to be committed or designated to a specific use by the Trust. The development reserve comprises grants and donations received for development projects which have been restricted by the donor.
1.9
Income Donations are included as they are received whilst all other income is included in the year to which it relates.
1.10 Expenditure All expenditure is included on an accruals basis, inclusive of any VAT which cannot be recovered, and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expenses in the SOFA. 1.11 Deferred taxation Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the subsidiary company’s accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when timing differences reverse, based on current tax rates and laws. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the asset. Deferred tax assets and liabilities are not discounted.
Annual Report and Financial Statements year end 31 January 2015
29
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
1.12 Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transactions. Exchange differences are taken into account in arriving at the (deficit)/surplus for the year. 1.13 Residuary legacies Legacies are included in voluntary income when the amount is known. 1.14 Fund accounting Funds held by the charity are either: Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees. Designated funds – these are funds set aside out of unrestricted general funds for specific future purposes or projects. Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in note 18. 2. Net incoming/ (outgoing) resources for the year Group 2015 £
2014 £
Charity 2015 2014 £ £
The (deficit)/surplus arises after charging: Depreciation of tangible fixed assets: - Owned - Held under finance leases Loss on disposal of tangible fixed assets Auditors’ remuneration Auditors’ remuneration from non-audit work
30
223,681 16,935 11,750 9,500 ═════
Annual Report and Financial Statements year end 31 January 2015
231,373 9,155 10,500 9,260 ═════
191,586 16,912 8,500 7,000 ═════
207,224 7,500 7,360 ═════
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
3. Income from investments Group 2015 £ Interest received
2,033 ───── 2,033 ═════
Charity 2015 £
2014 £ 3,052 ───── 3,052 ═════
2014 £
134 ───── 134 ═════
1,557 ───── 1,557 ═════
4. Incoming resources from charitable activities Group 2015 £ Core programme course income Workshop course income Conferences and events income Long term programme income Other educational income
471,186 384,545 103,579 156,673 275,592 ────── 1,391,575 ══════
Charity 2015 £
2014 £
410,264 290,750 279,794 240,879 268,043 ────── 1,489,730 ══════
471,186 384,545 103,579 156,673 275,592 ────── 1,391,575 ══════
2014 £
410,264 290,750 279,794 240,879 268,043 ────── 1,489,730 ══════
5. Other income Group 2015 £ Rental income Other income
88,908 95,973 ───── 184,881 ═════
2014 £ 82,474 334,009 ───── 416,483 ═════
Charity 2015 £ 102,256 107,661 ───── 209,917 ═════
2014 £ 95,822 343,875 ───── 439,697 ═════
Annual Report and Financial Statements year end 31 January 2015
31
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
6. Charitable activities Group 2015 £ Staffing costs Direct programme costs Projects expenses Development fund expenses Food and domestic Rent, fuel and maintenance IT and office expenses Marketing Other expenditure Depreciation Loss on sale of fixed assets Finance costs Trading deficit/(surplus)
589,376 215,217 28,584 138,804 256,813 157,781 45,015 29,224 185,536 191,586 16,912 34,061 (30,924) ────── 1,857,985 ══════
2014 £ 597,776 192,104 314,367 12,605 254,393 172,646 45,525 36,685 167,752 207,224 19,902 6,525 ────── 2,027,504 ══════
Charity 2015 £ 589,376 215,217 28,584 138,804 256,813 311,304 45,015 29,224 185,536 191,586 16,912 32,921 (30,924) ────── 2,010,368 ══════
2014 £
597,776 192,104 314,367 12,605 254,393 348,649 45,525 36,685 167,982 207,224 18,361 6,525 ────── 2,202,196 ══════
7. Governance costs Group 2015 £ Audit fees Accountancy fees Legal fees Meeting expenses
32
8,500 7,000 23,690 ───── 39,190 ═════
Annual Report and Financial Statements year end 31 January 2015
2014 £ 7,500 7,360 11,292 1,850 ───── 28,002 ═════
Charity 2015 £ 8,500 7,000 23,690 ───── 39,190 ═════
2014 £ 7,500 7,360 11,292 1,850 ───── 28,002 ═════
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
8. Gross Cash Flows Group 2015 £ Returns on investments and servicing of finance Interest received Finance costs
Capital expenditure Payments to acquire tangible assets Proceeds from disposal of investment
Financing Debt due within 1 year Repayment of interest free loans New interest free loan Increase in Savings and Loan Scheme Debt due after 1 year New secured loan repayable by 2024 Bank loan repayments Capital element of hire purchase
2014 £
Charity 2015 £
2014 £
2,033 (34,061) ───── (32,028) ═════
3,052 (19,902) ───── (16,850) ═════
134 (32,291) ───── (32,157) ═════
1,557 (18,361) ───── (16,804) ═════
(159,875) ───── (159,875) ═════
(301,567) 25,000 ───── 276,567 ═════
(151,279) ───── (151,279) ═════
(275,412) ───── (275,412) ═════
(14,076) 17,797
18,500 15,692
(14,076) 17,797
15,692
145,000 (985) ───── 147,736 ═════
(12,972) ───── 21,220 ═════
145,000 (985) ───── 147,736 ═════
───── 15,692 ═════
Annual Report and Financial Statements year end 31 January 2015
33
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
9. Analysis of changes in net funds Opening Balance Cash at bank and in hand Debts due within 1 year Debts due after 1 year
£ 135,176 (139,784) (87,368) ────── (91,976) ══════
Opening balance Cash at bank and in hand Debts due within 1 year Debts due after 1 year
Cash flows £ 343,237 (3,721) (144,015) ────── 195,501 ══════
Cash flows
£ 95,849 (111,284) (87,368) ────── (102,803) ══════
£ 304,142 (3,721) (144,015) ────── 156,406 ══════
Group Non-cash changes £ (18,450) 18,450 ────── ══════ Charity Non-cash changes £ (18,450) 18,450 ────── ══════
Closing balance £ 478,413 (161,955) (212,933) ────── 103,525 ══════
Closing balance £ 399,991 (133,455) (212,933) ────── 53,603 ══════
10. Staff costs Total group staff costs amount to £726,665 (2014 - £717,845) which includes employers national insurance £23,188 (2014 - £21,454). The average number of people employed during the year was 119 (2014 -128). Total staff costs of the charity amount to £552,272 (2014 - £548,278) which includes employers national insurance £11,910 (2014 - £11,430). Payments to self-employed persons amount to £37,105 (2014 - £43,803). The average number of people employed during the year was 106 (2014 – 115). Of these 64 (2014 – 73) were paid a staff allowance and 42 (2014 – 42) were salaried. No employee received remuneration of more than £60,000. 2 trustees, who are employees, received remuneration totalling £6,262 (2014 – 2 totalling £8,069) with employers national insurance £nil (2014 - £nil) for work done on behalf of the charity. 2 trustees received payment through self-employment, £11,214 (2014 – 2 totalling £11,734) and 3 trustees received travel expenses and other expenses totalling £6,624 (2014 – 3 totalling £1,772).
34
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued) 11. Tangible fixed assets – group and charity Group
Cost or valuation At 1 February 2014 Additions Disposals Surplus on revaluations At 31 January 2015
Depreciation At 1 February 2014 Charge for the year On disposals Surplus on revaluations At 31 January 2015
Net book values At 31 January 2015 At 31 January 2014
Land and
Motor
Plant and
Fixtures and
buildings
Vehicles
Equipment
Machinery
fittings
Caravans
Total
£
£
£
£
£
£
£
5,349,635 119,323 (15,463) 170,329 ────── 5,623,824 ──────
208,599 ────── 208,599 ──────
554,231 20,640 (6,756) ────── 568,115 ──────
611,333 19,912 (1,029) ────── 630,216 ──────
327,750 ────── 327,750 ──────
447,830 ────── 447,830 ──────
7,499,378 159,875 (23,248) 170,239 ────── 7,806,334 ──────
1,277,351 114,166 (4,545) (33,326) ────── 1,353,646 ──────
173,478 10,509 ────── 183,987 ──────
394,293 35,522 (1,573) ────── 428,242 ──────
197,936 35,493 (195) ────── 233,234 ──────
217,611 13,051 ────── 230,662 ──────
390,998 14,940 ────── 405,938 ──────
2,651,667 223,681 (6,313) (33,326) ────── 2,835,709 ──────
4,270,178 ══════ 4,072,284 ══════
24,612 ══════ 35,121 ══════
139,873 ══════ 159,938 ══════
396,982 ══════ 413,397 ══════
97,088 ══════ 110,139 ══════
41,892 ══════ 56,832 ══════
4,970,625 ══════ 4,847,711 ══════
Land and buildings is further analysed below.
Cost or valuation At 1 February 2014 Additions Disposals Surplus on revaluations At 31 January 2015
Depreciation At 1 February 2014 Charge for the year On disposals Surplus on revaluations At 31 January 2015
Net book values At 31 January 2015 At 31 January 2014
Tenant’s
Wind
Buildings and
Eco-mobile
Improvements
Park
Caravans
homes
£
£
£
£
247,786 ────── 247,786 ──────
112,290 ────── 112,290 ──────
4,450,572 109,320 (15,463) 170,329 ────── 4,714,758 ──────
538,987 10,003 ────── 548,990 ──────
57,314 6,660 ────── 63,974 ──────
30,766 4,080 ────── 34,846 ──────
1,046,906 70,596 (4,545) (33,326) ────── 1,079,631 ──────
142,365 32,830 ────── 175,195 ──────
183,812 ══════ 190,472 ══════
77,444 ══════ 81,524 ══════
3,635,127 ══════ 3,403,666 ══════
373,795 ══════ 396,622 ══════
Annual Report and Financial Statements year end 31 January 2015
35
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
11. Tangible fixed assets – group and charity (continued) Charity
Cost or valuation At 1 February 2014 Additions Disposals Surplus on revaluations At 31 January 2015
Depreciation At 1 February 2014 Charge for the year On disposals Surplus on revaluations At 31 January 2015
Net book values At 31 January 2015 At 31 January 2014
Buildings and
Eco-mobile
Plant and
Tools and
Fixtures and
Motor
Caravans
homes
machinery
equipment
fittings
vehicles
Total
£
£
£
£
£
£
£
4,450,572 109,320 (15,463) 170,329 ────── 4,714,758 ──────
538,987 10,003 ────── 548,990 ──────
566,880 12,762 (1,029) ────── 578,613 ──────
540,968 19,194 (5,630) ────── 554,532 ──────
296,479 ────── 296,479 ──────
208,599 ────── 208,599 ──────
6,602,485 151,279 (22,122) 170,329 ────── 6,901,971 ──────
1,046,906 70,596 (4,545) (33,326) ────── 1,079,631 ──────
142,365 32,830 ────── 175,195 ──────
174,054 31,336 (195) ────── 205,195 ──────
382,224 34,644 (470) ────── 416,398 ──────
195,505 11,671 ────── 207,176 ──────
173,478 10,509 ────── 183,987 ──────
2,114,532 191,586 (5,210) (33,326) ────── 2,267,582 ──────
3,635,127 ══════ 3,403,666 ══════
373,795 ══════ 396,622 ══════
373,418 ══════ 392,826 ══════
139,132 ══════ 158,744 ══════
89,303 ══════
24,612 ══════ 35,301 ══════
4,634,389 ══════ 4,487,953 ══════
100,974 ══════
Properties have not been revalued in line with Financial Reporting Standard 15, where valuation is required every 5 years. However it is the trustees’ opinion that properties are held at a valuation that is lower than current market value. This is due to valuations being carried out in 2001, 2008 and 2009 and properties being depreciated over 10-50 years. The trustees have not carried out valuations on the properties due to significant cost of valuing the charity’s extensive portfolio. Noted below are the latest valuations of the properties. At 31 January 2001 the trustees revalued land owned by The Findhorn Foundation at £500,000, with an original cost of £250,000. During the year ended 31 January 2008, the property, Treya, was revalued by Harvey, Donaldson and Gibson, Chartered Surveyors, on the basis of vacant possession and in accordance with RICS Specification for Residential Mortgage Valuations, at £225,000 with an original cost of £51,731. During the year ended 31 January 2009, the properties, Bag End 2, Bag End 3, Bag End 5, Bag End 9, The Park Building, Santiago, Guest Lodge and The Youth Building, were revalued by Harvey, Donaldson and Gibson, Chartered Surveyors, on the basis of vacant possession and in accordance with RICS Specification for Residential Mortgage Valuations, at £1,816,840, in total. The original cost of these properties was £544,597. During the year ended 31 January 2015, the property, The Park Building, was revalued by Harvey, Donaldson and Gibson, Chartered Surveyors, on the basis of vacant possession and in accordance with RICS specification for Residential Mortgage Valuations, at £375,000 with an original cost of £204,672.
36
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
12. Fixed Asset Investments Cost
Phoenix Community Stores Limited Duneland Limited Ekobay Findhorn Wind Park Limited
At 31/01/14 £ 15,001 11,000 1 62,000 ────── 88,002 ══════
Group Additions Disposals £ ────── ══════
£ ────── ══════
At 31/01/15 £ 15,001 11,000 1 62,000 ────── 88,002 ══════
The investments held by the group are stated at cost less provision and are held by the subsidiary, New Findhorn Directions Limited, which values them for limited company accounts. Because these are all unquoted, it is impractical to value them at market value. During the year the subsidiary continued to provide a loan of £35,000 (2014: £35,000) which is included in the investment of £62,000 to Findhorn Wind Park Limited. £15,000 was repaid in April 2015. The investment in Phoenix Community Stores Limited is stated at a cost of £25,001 less a provision of £10,000.
Charity Trading subsidiary The trading subsidiary, New Findhorn Directions Limited is wholly owned by the charity, is registered in Scotland, operates a caravan site, and maintains energy supplies and infrastructure for The Park. The investment is revalued every year based on the net assets in the subsidiary at the year end.
Annual Report and Financial Statements year end 31 January 2015
37
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
12. Fixed Asset Investments (continued) COST OR VALUATION At 1 February 2014 Revaluation during the year At 31 January 2015
£ 455,806 (15,536) ────── 440,270 ──────
NET BOOK VALUE At 31 January 2015
440,270 ══════
At 31 January 2014
455,806 ══════
13. Debtors Group 2015 £ Trade debtors Amounts due to subsidiary undertaking (note 20) Amounts owed by connected charity Other debtors Prepayments and accrued income
38
2014 £
Charity 2015 £
2014 £
55,356 -
46,100 -
26,203 -
18,001 1,096
19,388 114 77,650 ───── 152,508 ═════
45,028 2,307 171,548 ───── 264,983 ═════
19,388 73,490 ───── 119,081 ═════
45,028 167,410 ───── 231,535 ═════
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
14. Creditors: amounts falling due within one year
Trade creditors Accruals Tax and social security Deferred income Amounts owed to related undertaking (note 20) Other creditors Interest free loans Ekopia loan Savings and Loan Scheme (note 15) Bank loan
Group 2015 £ 73,790 41,141 9,839 77,005 19,695 15,345 15,298 28,500 106,081 12,076 ───── 398,770 ═════
2014 £ 68,593 26,231 14,492 90,431 17,601 5,868 23,000 28,500 88,284 ───── 363,000 ═════
Charity 2015 2014 £ £ 63,270 53,077 20,258 9,835 6,196 8,210 77,005 81,169 17,333 48,192 15,298 106,081 12,076 ───── 317,517 ═════
23,000 88,284 ───── 311,767 ═════
15. Savings and Loan Scheme The scheme relates to money borrowed from the Foundation’s co-workers and supporters to assist in the financing of its activities. Statements are issued to participants recording receipts and withdrawals. No interest is paid to members of the scheme. 16. Creditors: amounts falling due after one year
Interest free loans Bank loan
Group 2015 2014 £ £ 80,994 87,368 131,939 ───── ───── 212,933 87,368 ═════ ═════
Charity 2015 2014 £ £ 80,994 87,368 131,939 ───── ───── 212,933 87,368 ═════ ═════
The Bank loan is repayable in monthly instalments with the last instalment due in December 2024. Interest is charged on the loan at 3.5% over base rate. The Loan is secured over the Park Building, The Park, Findhorn, Moray, IV36 3TZ and Treya, 224 Pineridge, The Park, Findhorn, Moray, IV36 3TZ.
Annual Report and Financial Statements year end 31 January 2015
39
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
17. Provisions for liabilities and charges Deferred tax is analysed over the following timing differences: Group Provided 2015 2014 £ £ 20,467 21,176 ════ ════
Accelerated capital allowances
Charity Provided 2015 2014 £ £ ════ ═════
Movements on the provision for deferred taxation are: 2015 £ 21,176 (709) ───── 20,467 ═════
At 1 February 2014 (Release)/ charge for year At 31 January 2015
2014 £ 20,257 919 ───── 21,176 ═════
2015 £ ──── ════
2014 £ ───── ═════
18. Analysis of net assets between funds
Tangible fixed assets Investments Cash at bank and in hand Other net current liabilities Other liabilities Provisions for liabilities and charges
General Reserve
Development Reserve
Property Revaluation Reserve
Restricted Funds
Total 2015
Total 2014
£
Funds retained within a noncharitable subsidiary £
£
£
£
£
£
2,941,550 88,002 272,083 (168,121) (212,933) (20,467)
109,814 -
1,914,351 -
96,516 -
114,724 -
4,970,625 88,002 478,413 (168,121) (212,933) (20,467)
4,847,711 88,002 135,176 (46,673) (87,368) (21,176)
────── 2,900,114 ══════
────── 109,814 ══════
────── 1,914,351 ══════
────── 96,516 ══════
────── 114,724 ══════
────── 5,135,519 ══════
────── 4,915,672 ══════
Purposes of reserves Funds retained within a non-charitable subsidiary This represents the capital redemption reserve which is not distributable. Property revaluation reserve This represents the excess of the value of the property in the financial statements over its original cost.
40
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
18. Analysis of net assets between funds (continued) Development reserve This represents amounts restricted by the donor for specific development projects. General reserve This represents unrestricted funds which can be used for general purposes. Restricted funds This represents a grant for the Biomass boiler which will be released to unrestricted funds over the life of the asset. 19. Contingent liabilities The Findhorn Foundation has provided a letter of guarantee for Findhorn Foundation College for £30,000. In addition, New Findhorn Directions Limited has borrowed £28,500 from Ekopia Resource Exchange and this loan is guaranteed by The Findhorn Foundation using the property “Traigh Bhan”, on Iona. 20. Related party transactions Included in debtors at the year end is a balance of £19,388 (2014 - £45,029) relating to Findhorn Foundation College, whose board are appointed in conjunction with the Trustees and Management Group of The Findhorn Foundation. During the year, £49,354 (2014 - £103,136) of the income came from the College. During the year, £345 (2014 - £286) was received from CIFAL Scotland Limited for goods and services supplied, at the year end a balance of £15 (2014 - £13) was included in debtors. Universal Hall is an independent company formed in 2009 that promotes artistic performances in The Findhorn Foundation’s Universal Hall. The company pays the Foundation for food, accommodation, space and equipment rental and internet services. Universal Hall paid £17,567 to The Findhorn Foundation in the year ending 31 January 2015 (2014 - £155,539) and owed The Findhorn Foundation £5,037 (2014 - £1,414) at the year end.
Annual Report and Financial Statements year end 31 January 2015
41
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
20. Related party transactions (continued) During the year the subsidiary paid £2,944 (2014 - £2,005) to a business run by A L Walker, a director. The amount due to the related party at the year end is £178 (2014 - £450). The subsidiary purchases electricity supplies from Findhorn Wind Park Limited, an associated undertaking, amounting to £142,236 (2014 - £136,363) from Findhorn Wind Park Limited. These transactions were conducted at an open market value. At the year end the company owes Findhorn Wind Park Limited £19,695 (2014 - £17,601). The subsidiary also provided a loan to Findhorn Wind Park Limited of £35,000 (2014 - £35,000). This loan is unsecured and has no fixed terms of repayment. During the year ending 31 January 2015, interest receivable on this loan amounted to £1,899 (2013 - £2,591). During the year there were the following transactions with the Trustees and businesses associated with them –
42
Received £
Outstanding at year end £
£4,750 (2014 - £5,250)
£nil (2014 - £450)
Mari Hollander
Rent
Nicola Coombe
Donation
£200 (2014 - £nil)
£nil (2014 - £nil)
Nicola Coombe
Course income
£779 (2014 - £nil)
£nil (2014 - £nil)
Lisette Schuitemaker
Donation
£91,279 (2014 - £66,125)
£nil (2014 - £nil)
Mark Anderson
Donation
£1,205 (2014 - £441)
£nil (2014 - £nil)
Paul Dickinson
Donation
£535 (2014 - £900)
£nil (2014 - £nil)
Judith Bone
Donation
£350 (2014 - £225)
£nil (2014 - £nil)
Annual Report and Financial Statements year end 31 January 2015
THE FINDHORN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2015 (continued)
20. Related party transactions (continued)
Paid £ £2,400 (2014 - £2,400)
Owed at year end £ £nil (2014 - £nil)
£3,863 (2014 - £5,669)
£nil (2014 - £nil)
£nil (2014 - £225)
£nil (2014 - £nil)
£7,243 (2014 - £5,704)
£1,766 (2014 - £nil)
Judith Bone
Educational Services
Clive Kitson
Educational Services
Robin Alfred
Trustees dinner, etc
Robin Alfred as Findhorn Consultancy
Educational Services
Lady Diana Whitmore
Travel
£264 (2014 - £546)
£nil (2014 - £nil)
Roger Collis
Travel
£1,753 (2014 - £934)
£nil (2014 - £nil)
Mark Anderson
IT Consultancy
£3,971 (2014 - £6,030)
£1,003 (2014 - £320)
Kosha Joubert
Educational services
£nil (2014 - £9,838)
£nil (2014 - £nil)
All of the above transactions were at market value. 21.
Ultimate controlling party
The ultimate controlling party is considered to be the Board of Trustees.
Annual Report and Financial Statements year end 31 January 2015
43
F I N D H O R N f O U N D A T I O N
Spiritual Community Ecovillage Learning Centre
Scottish Charity Number SC007233