PSYCHOSYNTHESIS AND EDUCATION TRUST

FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2007

REGISTERED CHARITY NUMBER: 1077365 REGISTERED COMPANY NUMBER: 3838253 DRAFT ACCOUNTS

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PSYCHOSYNTHESIS AND EDUCATION TRUST

PRESIDENT CHAIR PERSON TRUSTEES

Lady Diana Whitmore Brenda Squires

Hugh Lee Askar Chris W Burgess Peter Hein

Michael Shaw Helen Sieroda John Shiers Brenda Squires Lady Diana Whitmore
COMPANY SECRETARY DIRECTOR OF PROGRAMMES Jim Wallman Keith Silvester

DIRECTOR OF OPERATIONS AND DEVELOPMENT Jim Wallman COMPANY REGISTRATION NO. REGISTERED AND PRINCIPAL OFFICE 3838253 92-94 Tooley Street London SE1 2TH 1077365 Maclntyre Hudson LLP Chartered Accountants Euro House 1394 High Road London N20 9YZ Barclays Bank PLC Southwark branch 29 Borough High Street London SE1 1 LY Bates, Wells & Braithwaite 2-6 Cannon Street London

REGISTERED CHARITY NO. AUDITOR

BANKERS

SOLICITORS

EC4M 6YH

PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' A ND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2007

Page 1

The Trustees of the Psychosynthesis & Education Trust, who are also the Directors of the charitable company of the same name, present their annual report and the audited statements for the year ended 31 August 2007. Psychosynthesis and Education Trust is a company limited by guarantee. A WORD FROM THE CHAIR: Psychosynthesis: a psychology for our times? In the early twentieth century neurologist Sigmund Freud and his followers were pioneering work with talking therapy, analysis of dreams and word association. In this way they were attempting to map out the effect of unconscious drives on our waking life and thus help alleviate the symptoms of patients who were suffering from neuroses. An Italian psychiatrist, Roberto Assagioli, was one of the party. An early follower of Freud, Assagioli was the first to bring psychoanalysis to Italy. Soon however a fissure began to appear. Assagioli took exception to Freud's emphasis on the sexually repressed and primitive aspects of the unconscious. Surely, he maintained, the unconscious is also the source of our greatest works of art and scientific breakthroughs? Over time Assagioli was to develop this view into a theory of the unconscious. He distinguished various facets of the psyche: he spoke of the superconscious - the realm of inspiration and abstract thinking, the middle unconscious - just beyond our everyday awareness, and of the lower unconscious, which corresponds to Freud's unconscious. He melded together his interest in traditional Eastern thought and philosophy with his research into Western humanistic psychology. Assagioli was keen to study what was healthy and creative in us as well as understanding what was pathological; it is as valid, he said, to trace the highest achievements and experiences of mankind as it is to disentangle what is dysfunctional.Our awe and our joy matter as much, if not more, than our despair. In fact our despair can often be the key to our spiritual awakening. In time his work gave rise to psychosynthesis, which is a form of transpersonal psychology. It has often been said that in our times there is a need for a new type of spirituality and 'spiritual' expression. For many, orthodox religion has lost its impact. Psychosynthesis offers a blend of psychology and spirituality. It addresses our need to know ourselves in the fullness of our being, as well as satisfying the urge to experience ourselves as part of a larger whole. In itself psychosynthesis neither endorses nor refutes religion for it focuses on experience rather than on intellectual belief. In an era where there is a danger of black and white thinking on spiritual matters it offers an opportunity to explore one's inner world without the necessity of adhering to preset tenets. Assagioli was a secular Jew, at one time imprisoned under Mussolini. He practised and worked in Florence, the Italian city that more than any other embodies the ideals and aspirations of the Renaissance. In his own way he was a Renaissance man with an interest in psychiatry, science, art, religion and philosophy. It is small wonder then that Assagioli sought to gather what was best and strongest in different traditions. Assagioli distinguishes psychosynthesis from psychoanalysis. In traditional psychoanalysis the contents of the psyche are analysed and interpreted by the therapist. Although dealing with highly charged emotional material, it is primarily an intellectual process whereby what has been repressed is unearthed and explored in the safety of the therapeutic relationship. This surfacing helps give greater freedom and awareness to the analysand. Psychosynthesis builds on this process and has many elements in common with it, but it goes further in employing an array of methods and techniques, which tap directly into the creativity of the client and help him or her discover inner resources and wisdom. The methods used include guided imagery, active imagination work, free drawing, Gestalt work and role-play. Through techniques such as these the various warring elements within the person can be brought into harmony. Working in a period before research had revealed what we now know about hemispherical specialisation, Assagioli understood perfectly the necessity of synthesising the two sides of the brain for optimal functioning. Thus imagination is balanced by rational thinking, and emotion by practicality. A psychology for now? At a time when institutions and beliefs are shifting, the individual often experiences a sense of dislocation and can feel disconnected from his or her inner world. This can lead not only to an aridity of spirit, but a general state of confusion. Why am I here? What is important to me? What is the purpose of my life? How can I find meaning and fulfilment? Often the answers to these questions are nearer than we might think. Thanks to the innovative work of Roberto Assagioli and others in the field of psychosynthesis, we now how have a body of knowledge and experience to help us in the journey of self discovery.

Brenda Squires Chair

PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2007 PRINCIPAL ACTIVITIES

Page 2

The principal activity of the company is to "foster psychological research into the various elements of the human psyche including without limitation body, mind, emotions and spirit and the synthesis thereof (known as bio-Psychosynthesis) and its dissemination to the public through educational, scientific and charitable activities.

The Psychosynthesis and Education Trust is the longest established psychosynthesis centre in Britain. It was founded in 1965 by 'the father of psychosynthesis', Roberto Assagioli, together with Sir George Trevelyan, Dr Martin Israel and Geoffrey Leytham.

The modern training programmes were developed from 1982 onwards by Diana Whitmore and others, who studied under Assagioli, and who now continues her connection with the Trust as President. The Trust is a training and accrediting member of the Humanistic and Integrative Psychology Section of the United Kingdom Council for Psychotherapy (UKCP), and was one of the first counselling training organisations to be accredited by the British Association for Counselling and Psychotherapy.

The Trust is also a member of the European Association for Psychotherapy (EAP) and a founding member of the European Federation for Psychosynthesis Psychotherapy (EFPP). All Trust staff subscribe to Codes of Practice and Ethics of these bodies. A team of qualified psychosynthesis practitioners teach and supervise students. The team members are drawn from various backgrounds and disciplines, including psychology, education, philosophy, religious practice, psychiatry, organisational work and management. The Trust's programmes are validated by the University of East London (School of Psychology). The Trust operates its own Counselling Referral Service which is pa rticularly suitable for clients who might be less confident about contacting a therapist directly. The Counselling Serv ice Manager assesses and places clients with the counsellor who best fits their needs and diagnosis. This service also includes low cost counselling for those on low incomes.

CONSTITUTION OF THE CHARITY

The Charity is a company limited by guarantee and is governed by the Rules and Regulations of the Memorandum and Articles of Association incorporated on 3 September and registered on 10 September 1999. The power of appointing and removing Directors and Trustees from the Board is vested in the Board of Directors and Trustees. New trustees are recruited through recommendations. Membership is non transferable and ceases upon death. A minimum of 2 members is required at all times. New Trustees are provided with an induction pack to acclimatise them to their new role and further training is discussed and relevant training courses attended.

Day to day management is delegated to and carried out jointly by the Director of Programmes and the Director of Operations, in close consultation with the Trustees, at the full quarterly meetings, and at meetings of Trustee subcommittees.

The Charity has the power to invest monies, not immediately required for the furtherance of its objectives, in such investments, securities or property as it thinks fit, subject to any statutory requirements. The investments currently held were acquired in accordance with these powers. CHARITY OBJECTIVES The Trust's main purpose is to gain recognition for the central role of Soul and Self in psychology and to renew the soul in the every day life of individuals, the family, groups, organisations and society. Our vocation is to address the needs of humanity in a way that is pragmatic as well as spiritual and relevant to everyday life. We acknowledge both pain and potential in the human experience. Our aims are:- Work with people in life crisis support people as they find their place within an intricate network of relationships and within society. promote the practice of transpersonal counselling and psychotherapy by providing a training centre of excellence. = provide psychosynthesis educational techniques suitable for schools and adult education. promote the value of psycho-spiritual work in counselling, psychotherapy and education through research, dissemination and publication.

PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2007

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CHARITY OBJECTIVES (continued) The Charity's objectives are primarily achieved by: Training Psychosynthesis counsellors and therapists. The charity offers a validated, one year, part time Graduate Certificate in Psychosynthesis Foundations, a two year, part time Post Graduate Diploma in Psychosynthesis Counselling, and a two year, part time Master of Arts in Psychosynthesis Psychotherapy. The Post Graduate Diploma is accredited by the British Association of Counselling and Psychotherapy (BACP), and the MA by the United Kingdom Council for Psychotherapy (UKCP). All three are accredited by the University of East London (UEL). Training Psychosynthesis and non-Psychosynthesis counsellors and therapists. The charity offers a one year, Post Graduate Certificate in Psychosynthesis Studies, as a professional development course for non-Psychosynthesis trained counsellors. The charity also offers a one year, Postgraduate Certificate in Transpersonal & Integrative Supervision: from an integrated and transpersonal perspective for Psychosynthesis and non-Psychosynthesis trained counsellors and therapists. Both are accredited by the University of East London (UEL). Offering introductory courses in Psychosynthesis (such as the popular Essentials course) to the public and on-going professional training for graduates and other qualified therapists; Offering a counselling referral service, including a low-cost counselling service, for the general public; and Offering a free or a subsidised rate for the use of rooms at 92-94 Tooley Street for organisations furthering Psychosynthesis.
The directors consider that the objectives set for 2007 have been achieved in respect of courses offered, and the fianancial objectives are under review. REVIEW OF ACTIVITIES - 2006107

Counselling & Psychotherapy Training The Trust's professional counselling & psychotherapy training student numbers decreased with a total of 98 new student enrolments (from 139 in 2005/06). This does not include 97 students (up from 76 in 2005/06) on the introductory Essentials course, which runs six times a year. The Trust continued to have two intakes of the former, 3-year PG Diplomas (in two different formats). The former Training in Supervision course and Graduate Certificate in Psychosynthesis Counselling and Therapy, and the MA in Psychosynthesis Psychotherapy all ran successfully.
24 Students qualified as counsellors and 3 students successfully completed their Masters course in 2006-07. This compared favourably with 18 and 5 respectively in 2005-06. Graduate studies Programme We have had a wide range of events in this programme aimed at graduates and others interested in professional development. The programme involves an event at least once a month. Training & Research Conference

The Trust held its second annual conference in March 2007 open to staff, graduates and students, with more than 50 attendees.
Income from letting space in the building

In February 2007 the second floor tenant moved out and it proved difficult to re-let. A new tenant was secured in November 2007. Counselling Service
The counselling service continued to deliver psychosynthesis counselling to the general public, some of it low cost. The number of clients rose very slightly, from 113 in 2005-06 to 114 in 2006-07 - of which 41 /a were low cost clients.

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PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2007 FUTURE DEVELOPMENTS

Page 4

The development of new courses which expand the portfolio of courses offered by the Trust, to include an Applied strand for the Post Graduate Diploma and MA; Develop a holistic marketing plan, taking account of our various stakeholders and developing further the uptake of courses, sale of publications and generally raising the Trust's profile.

To market the courses more widely, in order to attract students from more varied backgrounds; To co-host the European Federation summer school in Britain in the summer of 2008.
Strengthen financial management and strategic planning within the Trust. To co-host the European Federation summer school in Britain in the summer of 2008. Strengthen financial management and strategic planning within the Trust. Raise the profile of psychosynthesis and our training by extending our programme of essentials training groups to various pa rts of the UK outside London. To increase student intake by at least 10%. To develop partnerships with other psychosynthesis organisations, for training and professional development. Develop a charitable Bursary Fund to support students on low incomes, and to fundraise to support the fund. To develop further the counselling service's outreach to the local community and disadvantaged groups, as well as to local businesses. The strategy for achieving these objectives is under continious review. INCOME GENERATION AND FUNDRAISING Some income is generated by book sales and publishing; a small amount of funding is received from the University of East London; but most of the income is generated by tuition fees and the letting of the building. The Trust has not invested resources in fundraising during the financial year. INVESTMENT POLICY AND RETURNS Aside from a Treasury Bond held by the Trust, any funds that are not required for immediate needs are placed on deposit. In view of the financial position of the charity the Trustees have decided not to make any further longer term investment deposits at this time.

FINANCIAL POSITION
The financial results for the year ended 31 August 2007 show net resources expended, prior to recognised gains and losses, of 53,093 (2006:60,066). The main cause of the deficit was reduced income due to lower student numbers than previous years and a gap in the tenancy of the second floor. The majority of the expenditure has been the cost of freelance trainers for the courses, and in management, administration, professional consultancy, capital expenditure, and maintenance of the building. Since the year end the trustees and staff have taken steps to address this trend, by focusing on income generatior measures and reducing overheads.

The Trust has put in place new financial procedures and a forward three-year budgeting plan which, taken together with a revised marketing strategy and strategic management plan is expected to lead to improved student uptake in 2007-08 and beyond. This will, if the plans are successful, enable the Trust to rebuild its rese rves and develop greater financial stability. The majority of the expenditure has been in supplying trainers for the courses, and in management, administration, professional consultancy, capital expenditure, and maintenance of the building. The directors consider that the market value of the charity's land and buildings is in excess of 2 million.

RESERVES POLICY
The Trustees have reviewed their reserves policy and aim to safely commit as much as possible to furthering the charity's objectives, while retaining financial stability and the potential to respond to new opportunities. The main role of reserves is to permit the charity to manage change effectively, particularly where the regulatory and educational frameworks within which the Trust operates undergoes change. Currently the reserves policy is to retain six months operating costs, covering key staff and overheads, amounting to some 164,000. This level has not yet been achieved.

PSYCHSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2007

Page 5

MANAGEMENT OF RISK The Trustees have examined, in conjunction with the senior management team, the significant risks that might affect the continued operation of the charity. They maintain a risk register, and this is reviewed regularly to ensure that all risks have been properly identified and amelioration plans are in place where appropriate. BOARD OF TRUSTEES AND DIRECTORS The Directors and Trustees who served the Charity during the year were as follows:

D Whitmore
H L Askar B Squires

P Hein
H Sieroda M Shaw

J Shiers
I E Horton ( Resigned 22 February 2007) C W Burgess

These financial statements comply with the Charity's governing document, the Statement of Recommended Practice 'Accounting and Repo rt ing by Charities' (SORP 2005) and the special provisions for small companies under Part VII of the Companies Act 1985. AUDITOR The resolution to reappoint Maclntyre Hudson LLP as auditors for the ensuing year will be proposed at the next meeting of the Board of Directors and Trustees.

PSYCHOSYNTHESIS AND EDUCATION TRUST

STATEMENT OF BOARD OF DIRECTORS' AND TRUSTEES' RESPONSIBILITIES YEAR ENDED 31 AUGUST 2007 GOVERNANCE AND INTERNAL CONTROL

Page 6

Company law and Charity law requires the Board of Directors and 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 of the surplus or deficit of income of the Charity
selected suitable accounting policies and then apply them consistently;

made judgements and estimates that are reasonable and prudent;

stated whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;

prepared the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

The Board of Directors and Trustees are responsible for ensuring that the charity has appropriate systems of controls, financial and otherwise, keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of

They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that: the charity is operating efficiently and effectively;

its assets are safeguarded against unauthorised use or disposition;

proper records are maintained and financial information used within the charity or for publication is reliable; and the charity complies with relevant laws and regulations.

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: a strategic plan and an annual budget approved by the Trustees; regular consideration by the Trustees of financial results, variance from budgets, non financial performance indicators and benchmarking reviews; delegation of authority and segregation of duties; and identification and management of risks.

In so far as each and every Trustee and director is aware: there is no relevant audit information of which the auditors are unaware; and

each and every Trustee and director has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Approved and signed on behalf of the Board of Directors and Trustees on ... ).`$AQ100.8)........

Chris Burgess Trustee

PSYCHOSYNTHESIS AND EDUCATION TRUST

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Page 7

YEAR ENDED 31 AUGUST 2007

We have audited the financial statements of Psychosynthesis And Education Trust for the year ended 31 August 2007 which comprise the Statement of Financial Activities, the Balance Sheet and related notes on pages 6 to 13 which have been prepared under the historical cost convention and the accounting policies set out on page 10. This report is made solely to the Charity's trustees, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the Charity's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND AUDITORS The Board of Directors' and Trustees' are responsible for preparing the Board of Directors' and Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) as set out in the Statement of Board of Directors' and Trustees' Responsibilities on page 6. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985, whether information given in the Board of Directors' and Trustees' Report is consistent with the financial statements, if the Charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' and trustees' remuneration and transactions with the Charity is not disclosed. We read other information contained in the Board of Directors' and Trustees' Report and consider whether it is consistent with the audited financial statements. We consider the implications for our audit report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information beyond that referred to in this paragraph. BASIS OF OPINION We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Board of Directors and Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION In our opinion the financial statements: give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Charity's affairs as at 31 August 2007 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; and have been properly prepared in accordance with the Companies Act 1985. In our opinion the information given in the Directors' and Trustees' Report is consistent with the statements. 11

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Page o

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2007

Unrestricted Funds General Designated

Notes Funds Funds

2007
Total

2006
Total

INCOMING RESOURCES Incoming resources from charitable activities: Programmes and Courses Counselling services Incoming resources from activities for generating funds: Room rentals Voluntary & other income Donations and Gifts Investment Income Other income TOTAL INCOMING RESOURCES RESOURCES EXPENDED Costs of generating funds Charitable activities Governance costs TOTAL RESOURCES EXPENDED NET OUTGOING RESOURCES FOR THE YEAR BEFORE TRANSFERS Transfers between funds NET RESOURCES EXPENDED/INCOMING RESOURCES BEING NET EXPENDITURE FOR THE YEAR OTHER RECOGNISED GAINS AND LOSSES Net gain/(loss) on investment assets
NET MOVEMENT IN FUNDS BALANCES BROUGHT FORWARD AT 1 SEPTEMBER 2006 BALANCES CARRIED FORWARD AT 31 AUGUST 2007

440,378 13,929

440,378 13,929

459,439 21,553

147,022

147,022

166,057

25 4,667 606,021

25 4,667 606,021

80 5,528 250 652,907

2 13,681 627,194 18,238 659,113 13,681 627,194 18,238 659,113 30,202 663,475 19,296 712,973

(53,093)

(53,093)

(60,066)

(53,093)

(53,093)

(60,066)

(405) (53,498) -

(405) (53,498)

(2,730) (62,796)

416,967

45,507

462,474

525,270

363,469

45,507

408,976

462,474

There were no other recognised gains or losses. All operations are continuing.

The notes and accounting policies on pages 10 to 15 form part of the financial statements

Page 9
F'STt.I-IU S7N T Ht S IS

AND

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TRUST

BALANCE SHEET AT 31 AUGUST 2007

2007 Notes

2006

FIXED ASSETS Investments Tangible assets

6 7

80,517 991,253 1,071,770

80,922 1,017,844 1,098,766

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

8,258 89,566 1,227 99,051

3,598 116,824 25,247 145,669

CREDITORS: Amounts falling due within one year

(225,779)

(247,881)

NET CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after more than one year NET ASSETS

(126,729) 945,042

(102,212) 996,554

10

(536, 066) 408,976

(534,080) 462,474

FUNDS UNRESTRICTED FUNDS General fund Designated funds TOTAL FUNDS

12 12

363,469 45,507 408,976

416,967 45,507 462,474

These financial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies, the Financial Reporting Standard for Smaller Entities (effective January 2005), the Charities Act 1993 and in accordance with the Statement of Recommended Practice 'Accounting by Charities' (SORP 2005).

Approved by the Board of Directors and Trustees on ..... ...........

~---~

V r--'

, ~ ~Q1 Chris Burgess Trustee

Brenda Squires Chair

The notes and accounting policies on pages 10 to 15 form part of the financial statements

PSYCHOSYNTHESIS AND EDUCATION TRUST CTATFMFNT OF ACCOUNTING POLICIES YEAR ENDED 31 AUGUST 2007 BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and with exception of investments which are included at market value, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2005). The financial statements also comply with the Statement of Recommended Practice for Accounting by Charities (SORP 2005), the Charities Act 1993 and the Companies Act 1985. GOING CONCERN The financial statements have been prepared under the going concern basis notwithstanding net current liabilities of 126,729 (2006: 102,212).

Page 10

The validity of this assumption depends on the Charity's ability to meet the repayments due on its loans as and when they fall due. The Trustees have reviewed the Charity's trading forecasts, budgets and cash flow projections for a period of twelve months following the approval of these financial statements. Based on their review they anticipate that the Charity's working capital deficit will be reduced and the Charity will be able to meet its short term liabilities as they fall due. Accordingly, these financial statements have been prepared on a going concern basis. TITLE The company has an exemption under section 30(5) of the Companies Act 1985 from using "Limited" in the title. INCOME The Charity's income is derived from five main sources; programmes and courses, counselling, room hire, donations and investment income. Recognition of programmes and courses, counselling and room hire income is on a accrual basis. Where the income is received in advance of programmes and courses being performed, the Charity recognises, as deferred income, a liability equal to the amount received, representing its obligations to carry out the programmes and courses. That liability is reduced and reported as income as the programmes and courses are performed. Donations are included in income when received. Income from investments is recognised on a receivable basis. FUND ACCOUNTING Unrestricted funds are available for use at the discretion of the Board of Directors and Trustees in furtherance of the general objectives of the Charity. Designated funds are unrestricted funds earmarked by the Board of Directors and Trustees for particular purposes. FIXED ASSETS All fixed assets are initially recorded at cost. INVESTMENTS Investments are included at market value at the balance sheet date. Any changes in value during the year, whether realised or unrealised are reported as other recognised gains and losses in the Statement of financial Activities. STOCKS Stocks have been valued at the lower of costs and net realisable value. DEPRECIATION Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Freehold property 2% on cost or revalued amount 4 years straight line Furniture & Fittings 4 years straight line Office Equipment 10 years straight line Plant and machinery RESOURCES EXPENDED Expenditure is recognised on an accrual basis as a liability is incurred. Costs of generating funds comprise the costs associated with the running of room rentals. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and any costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource.

Costs relating to a particular activity are allocated directly, others are apportioned on a appropriate basis based on activity, (note 2). OPERATING LEASES Rentals on operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

PSVrNQSVNTHFSIS ANn Fn11r:ATI(fN TRIIST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2007

Paae 11

1 Investment income

2007 Total

2006 Total
4,522 1,006

Interest receivable on Investments in Treasury Stock Bank interest receivable

4,522 144

4,666

5,528

2 Resources expended Basis of allocation Training & CPD Costs of generating funds Legal fees of negotiating new rental lease Advertising and marketing costs Counselling Room Rental Total 2007 Total 2006

13,681 13,681

4,644 25,558 30,202

Costs directly attributable to charitable activities Staff, trainers' fees and costs Direct Direct UEL registration costs Bursaries Direct Counselling service Direct Printing and stationery Pro rata Post and telephone Pro rata Insurance Pro rata Pro rata Sundries Pro rata Rates and utilities Repairs, maintenance and cleaning Pro rata Depreciation Pro rata Pro rata Computer consumables Bank charges Pro rata Consultancy fees Pro rata Interest payable Pro rata Bad debt provision Direct

376,546 9,831 on activity on activity on activity on activity on usage on usage on activity on activity on activity on activity on activity 18,532 4,210 7,981 11,698 7,299 27,907 21,273 8,036 770 18,213 1,312 513.606

15,473

13,207

9,825 2,317 526 998 1,462 3,649 13,953 2,659 1,005 96 17,201 2,277

2,317 526 998 1,462 3,649 13,953 2,659 1,005 96 2,277

405,226 9,831 9,825 23,165 5,262 9,977 14,622 14,597 55,813 26,591 10,045
962 17,201 22,766 1,312

407,022 3,000 8,813 9,725 26,719 9,497 15,022 15,933 15,140 52,074 30,034 6,545
1,144 12,562 50,245 -

71,440

42,148

627,194

663,475

Governance costs allocated to activities: Staff salaries Audit fees Other professional fees 6,000 12,238 18,238 Total resources expended 3 TRUSTEES REMUNERATION The trustees neither received nor waived any emoluments during the year (2006: nil). Out of pocket expenses were re-imbursed to trustees as follows: 2007 2006 312 659,113 6,413 6,000 6,883 19,296 712,973

Travel

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2007 4 TOTAL RESOURCES EXPENDED Staff Costs Costs of generating funds Costs directly attributable to charitable activities Governance costs 205,917 Depreciation 26,591 Other Allocated Costs 13,681 394,686 18,238 Total 2007 13,681 627,194 18,238

Pane 12

Total 2006 30,202 663,475 19,296

205,917

26,591

426,605

659,113

712,973

Other direct costs include:

Total 2007

Total 2006

Auditor's remuneration Audit fee Operating lease rentals -Equipment Depreciation (note 7)

6,000 34,469 26,591

6,000 33,728 30,034

5 STAFF COSTS AND NUMBERS

Total 2007 198,891 17,846 216,737

Total 2006 197,636 16,490 214,126

Wages and salaries Social security costs

No employee received emoluments of more than 60,000. The average number of employees during the year, calculated on the basis of full time equivalents: Counselling Adminisrative and Finance

1 8

1 8

6 FIXED ASSET INVESTMENTS At Valuation Market value at 1 September 2006 Additions Net losses on revaluation Market value at 31 August 2007 80,922 (405) 80,517 83,652 (2,730)

Analysis of investments Cost Fixed interest securities 78,650

Market Value 2007 80,517

Market Value 2006 80,922

F'SY vi~V3 7 iV i i~3iv

-AND

TRUST

o...... ~ ~

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2007

TANGIBLE FIXED ASSETS Freehold Land & Buildings COST OR VALUATION At 1 September 2006 Additions Disposals At 31 August 2007 DEPRECIATION At 1 September 2006 Charge for year On disposals At 31 August 2007 NET BOOK VALUE At 31 August 2007 At 1 September 2006 981,585 1,004,341 8,429 10,114 1,239 1,890 1,499 991,253 1,017,844 Plant & Machinery Furniture & Fixtures Office Equipment

Total

1,137,779 -

16,857 16,857

41,329 41,329

6,093 6,093

1,202,058 1,202,058

1,137,779

133,438 22,756 156,194

6,743 1,685 8,428

39,439 651 40,090

4,594 1,499 6,093

184,214 26,591 210,805

The fixed assets are used by the Charity for the furtherance of its objectives. The freehold property is used as security against the bank loan shown in note 11. The freehold property has not been professionally valued. The directors consider that the market value is in excess of 2 million at 31.8.07.

DEBTORS 2007 Trade debtors Other debtors Prepayments and accrued income 73,929 15,637 2006 112,275 4,549

89-566
9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2007 Bank loans and overdrafts Other loans Trade creditors Other creditors Other taxation and social security Accruals Deferred income

116,824

2006 21,852 10,000 47,528 32,266 5,293 24,270 106,672

125,544 5,332 8,908 85,995

225,779

247,881

NOTES TO THE FINANCIAL STATEMENTS(continued) YEAR ENDED 31 AUGUST 2007

10 DEFERRED INCOME - COURSES Balance at 1 September 2006 Amount released to incoming resources Amount deferred in the year

2007 106,672 (106,372) 85,695

2006 81,084 (81,084) 106,672

Balance at 31 August 2007

85,995

106,672

11 CREDITORS: AMOUNTS FALLING DUE WITHIN AFTER MORE THAN ONE YEAR 2007 Bank loans and overdrafts 536,066 2006 534,080

536,066

534,080

Bankloan Amounts repayable between one and two years Amounts repayable between two and five years Amounts repayable after five years 536,066 536,066

21,852 65,556 446,672 534,080

Amounts repayable within one year 536,066

21,852 555,932

The bank loan is with No rt hern Rock plc and has fifteen years remaining at the balance sheet date on an interest only basis. A sum of NIL (2006: 21,852) is included within current liabilities. Interest is payable at a rate of 1.50% above the No rt hern Rock base rate. The loan is secured by a legal charge over the charity's prope rt y at 92-94 Tooley Street, London, SE1 2TH.

The other loan was with Boltons Trust and has been fully settled at the balance sheet date. A sum of NIL (2006: 10,000) is included within current liabilities. Interest was payable at a rate of 1.5%. The loan was secured over the Charity's property at 9294 Tooley Street, London, SE1 2TH.

The outstanding amounts in the above loans represent 55% (2006: 53%) of the book value of 92-94 Tooley Street, London, SE1 2TH.

cr

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2007

Page 115

12

STATEMENT OF FUNDS

Balance 01 Sep 2006 General Reserve

Revaluation reserve Designated Rese rv es Development fund Total unrestricted funds

Income

Expenditure

Transfer between funds

Balance 31 Aug 2007

363,469

416,967

606,021

(659,519)

45,507 462,474

606,021

(659,519)

45,507

408,976

Designated reserves The Development fund was established as a fund to provide for future marketing and education for the charity.

13 RELATED PARTY TRANSACTIONS No transactions with related parties were undertaken such as are required to be disclosed under the Reporting Standard for Smaller Entites (January 2005).

14 COMMITMENTS OPERATING LEASES At 31 August 2007 the Charity had the following annual commitment under non-cancellable operating leases: Office equipment 2006

2007 Operating leases which expire Within one year Within two to five years After more than five years

36,967 -

7,432 26,288 -

15 COMPANY LIMITED BY GUARANTEE Each member of the Charity has guaranteed to contribute up to 1 in the event of a winding up.