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FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2006

REGISTERED CHARITY NUMBER: 1077365 REGISTERED COMPANY NUMBER: 3838253

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PSYCHOSYNTHESIS AND EDUCATION TRUST

PRESIDENT CHAIR PERSON TRUSTEES

D Whitmore B Squires H L Askar C W Burgess P Hein I E Horton M Shaw H Sieroda J Shiers B Squires D Whitmore J Wallman 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

COMPANY SECRETARY COMPANY REGISTRATION NO. REGISTERED OFFICE

REGISTERED CHARITY NO. AUDITOR

BANKERS

SOLICITORS

Bates, Wells & Braithwaite 2-6 Cannon Street London EC4M 6YH

PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2006 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 2006. Psychosynthesis and Education Trust is a company limited by guarantee.

Page 1

PRINCIPAL ACTIVITIES
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 blo-Psychosynthesls) 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 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 organisati ons to be accredited by the British Association for Counselling (and Psychotherapy) 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. 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. 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 subcommi ttees. 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 statuto ry 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 ce ntral role of Soul and Self in psychology and to renew the soul in the eve ryday life of individuals, the family, groups, organisati ons 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. The Charity also seeks to: address despair and the lack of meaning people feel; renew their direction and purpose and increase their sense of personal freedom. understand and relieve suffering on a mental, emotional and spiritual level. encourage reintegration with one's essential and purposeful Self. support people as they find their place within an Intricate network of relationships and within society. support systems working towards a sustainable future for humanity. 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 2006

Page 2

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 Cert ificate In Psychosynthesis Studies, as a professional development course for non-Psychosynthesis trained counsellors. The charity also offers a one year, Postgraduate Cert ificate in Transpersonal & Integrative Supe rv ision: 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 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. REVIEW OF ACTIVITIES

Celebrating 25 Years
The Trust, in its current form, celebrated its 25th anniversary In December 2005 by means of a dedicated event hold at the new Docklands campus of UEL This was a welcome opportunity to reflect on the organisation's past, its present and its future.

Counselling & Psychotheraov Training

The Trust's professional counselling & psychotherapy training student numbers decreased slightly with a total of 180 (from 187 in 2004/05). This does not Include 67 students on the introductory Essentials course, which runs 8 times a year. The Graduate Studies programme, now combined with the Public Programme, was more successful than expected, and it appears it is likely to be even more successful in the coming 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. Pathways to Growth This is an initiative with the purpose of finding a way to take Psychosynthesis out into the wider community. It is almost a year now since the first person registered as a Pathways Leader. A leader plans and deliver workshops based on the basic principles of Psychosynthesis with the aid of a pack, which has an extensive, in-depth overview of Psychosynthesis, Psychosynthesis exercises and the basis for how to set up Psychosynthesis workshops. During this year many people have joined the Pathways project and it is continuing to grow. There are plans underway for training weekends in running Psychosynthesis groups. PPA - PsvchQsvnthesis Professional Association The new graduate association was formed during this year, as a separate company. One of the first activities of the PPA was to elect the board of directors. The purpose of the PPA is to promote and develop excellence in the practice of counselling and psychotherapy by the promotion of professional training standards and to maintain and enhance the professional status of counsellors and psychotherapists. This also Includes opportunities for creative networking and social events. Graduate studies Proaramme 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 approximately every month. Training & Research Conference The Trust held its first annual conference in March 2006 open to staff, graduates and students, with more than 50 a ttendees.

Income from letting space in the building

The top two floors of the Trust's building continue to be successfully let. This will continue to provide the Trust with a stable source of Income for at least the next 1.5 years.

PSYCHOSYNTHESIS AND EDUCATION TRUST THE DIRECTORS' AND TRUSTEES' REPORT YEAR ENDED 31 AUGUST 2006 FUTURE DEVELOPMENTS The development of new courses which expand the portfolio of courses offered by the Trust, to include areas such as Mediation and Conflict Resolution, and Couple Therapy, as well as an Applied strand for the Post Graduate Diploma and MA; To market the courses more widely, In order to att ract 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.

Page 3

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.
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 2006 show a loss of 62,796 (2005:43,197). This is mainly due to overhead costs rising ahead of income during the year. Since the year end the trustees and staff have taken steps to address this trend, by focusing on income generation measures and reducing overheads. The effect of the loss was to reduce reserves from 525K to 462k. 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.

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 164k. This level has not yet been achieved.
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 (Appointed 02/12/05) H L Askar B Squires P Hein H Sieroda J Shaw J Shiers (Appointed 02/12/05) I E Horton (Appointed 09/03/06 & resigned March 2007) C W Burgess (Appointed 09/03/06)

These financial statements comply with the Charity's governing document, the Statement of Recommended Practice 'Accounting and Reporting by Cha rities' (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. Approved and signed on behalf of the Board of Directors and Trustees on ..... .L~~..

Brenda Squires Chair

PSYCHOSYNTHESIS AND EDUCATION TRUST

STATEMENT OF BOARD OF DIRECTORS' AND TRUSTEES' RESPONSIBILITIES YEAR ENDED 31 AUGUST 2006

Page 4

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 for that year. In preparing those financial statements, the Board of Directors and Trustees are required to:

select suitable accounting policies and then apply them consistently; -

make judgements and estimates that are reasonable and prudent;

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

prepare 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 keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 1985, the Statement of Recommended Practice for Accounting by Charities 2005 and the Charity's governing document.

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 identificati on 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.

PSYCHOSYNTHESIS AND EDUCATION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PSYCHOSYNTHESIS AND EDUCATION TRUST YEAR ENDED 31 AUGUST 2006

Page 5

We have audited the financial statements of Psychosynthesis And Education Trust for the year ended 31 August 2006 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 8. This report is made solely to the Charity's trustees, as a body, In accordance with Section 43(2)of the Charities 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 4. 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 the Board of Directors' and Trustees' Report is not 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 examinati on, 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 prepara ti on 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 2006 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.

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Euro House 1394 High Road London N20 9YZ Maclntyre Hudson LLP Chartered Accountants and Registered Auditor

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Page 6

PSYCHOSYNTHESIS AND EDUCATION TRUST STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2006

Notes

Unrestricted Funds General Designated Funds Funds

2006 Total

2005 Total

INCOMING RESOURCES
Incoming resources from charitable activities: Programmes and Courses 459,439 21,553 459,439 21,553 452,486 11,230

Counselling services
Incoming resources from activities for generating funds: Room rentals Voluntary & other income Donations and Gifts Investment Income Other income

166,057

166,057

165,449

80 5,528 250 652,907

80 5,528 250 652,907

267 6,851 636,283

TOTAL INCOMING RESOURCES RESOURCES EXPENDED

Costs of generating funds Charitable activiti es Governance costs TOTAL RESOURCES EXPENDED

2
30,202 663,475 19,296 712,973 30,202 663,475 19,296 712,973 30,412 642,403 8,167 680,982,

NET OUTGOING RESOURCES

FOR THE YEAR BEFORE TRANSFERS Transfers between funds NET RESOURCES EXPENDED/INCOMING RESOURCES BEING NET EXPENDITURE FOR THE YEAR Net gain/(loss) on investment assets NET MOVEMENT IN FUNDS BALANCES BROUGHT FORWARD AT 1 SEPTEMBER 2005 BALANCES CARRIED FORWARD AT 28 31 AUGUST 2006 (60,066) (60,066) (44,699) (60,066) (60,066) (44,699)

(2,730) (62,796) -

(2,730) (62,796)

1,502 (43,197)

479,763

45,507

525,270

568,467

416,967

45,507

462,474

525,270

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

The notes and accounting policies on pages 8 to 13 form part of the financial statements

Page 7

PSYCHOSYNTHESIS AND EDUCATION TRUST BALANCE SHEET

AT 31 AUGUST 2006

2006 Notes FIXED ASSETS Investments Tangible assets 6 7 80,922 1,017,844 1,098,766

2005 83,652 1,047,878 1,131,530

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

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

3,598 20,020 111,300 134,918

CREDITORS: Amounts falling due within one year

(247,881)

(186,913)
(102,212) 996,554 (51,995) 1,079,535

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

10

(534,080) 462,474

(554,265) 525,270

FUNDS UNRESTRICTED FUNDS General fund Designated funds TOTAL FUNDS

11 11

416,967 45,507 462,474

479,763 45,507 525,270

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

2 l I 6 ~ 0~'

Brenda Squires Chair

Chris Burgess Trustee

The notes and accounting policies on pages 8 to 13 form pert of the financial statements

PSYCHOSYNTHESIS AND EDUCATION TRUST STATEMENT OF ACCOUNTING POLICIES YEAR ENDED 31 AUGUST 2006 BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost convention, 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 102,212 (2005: 51,995). 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 Charitys 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 liabili ty equal to the amount received, repre senting Its obliga tions to carry out the programmes and courses. That liability Is reduced and repo rted as income as the programmes and courses are performed.

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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 repo rted as other recognised gains and losses In the Statement of financial Activiti es. 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 50 years straight line Furniture & Fittings 4 years straight line 4 years straight line Office Equipment Plant and machinery 10 years straight line 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 e.g. floor areas as set out in 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.

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2006 1 Investment Income Total Interest receivable on Investments in Treasury Stock Bank interest receivable 4,522 1,006 5,528 Basis of allocation Training & CPD Room Counselling Rental Total 2006

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Total 4,522 2,329 6,851 Total 2005

2 Resources expended
Costs of generating funds Legal fees of negotiating new rental lease Advertising and marketing costs 4,644 25,558 30,202 Costs directly attributable to charitable activities Staff, trainers' fees and costs Direct UEL registration costs Direct Bursaries Direct Counselling service Direct Pro rata on activity Advertising, printing and stationery Post and telephone Pro rata on activity Pro rata on activity Insurance Pro rata on activity Sundries Pro rata on usage Rates and utilities Pro rata on usage Repairs, maintenance and cleaning Pro rata on activity Depreciation Computer consumables Pro rata on activity Pro rata on activity Bank charges Consultancy fees Pro rata on activity Pro rata on activity Interest payable Bad debt provision Direct 1,536 28,876 30,412

378,215 3,000 8,813 21,375 7,598 12,018 12,746 7,570 26,037 24,027 5,236 915 40,196 547,746

15,542 9,725 2,672 950 1,502 1,593 3,785 13,019 3,003 655 114 12,562 5,025

13,265 2,672 950 1,502 1,593 3,785 13,019 3,003 655 114 5,025

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

383,563 1,540 6,041 14,407 25,051 13,936 14,218 13,800 12,232 73,314 36,296 4,490 1,043 39,797 2875 642,403

70,146

45,583

663,475

Governance costs allocated to activities: Staff salaries Audit fees

Other professional fees 6,413 6,000 6,883 19,296 5,523 2,645 8,167 68D,982

Total resources expended

3 TRUSTEES REMUNERATION The trustees neither received nor waived any emoluments during the year (2005: nil). Out of pocket expenses were re-imbursed to trustees as follows:

712,973

2006 312

2005 211

Travel

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2006

Page 10

4 TOTAL RESOURCES EXPENDED

Staff Costs Costs of generating funds Costs directly attributable to charitable activities Governance costs Depreciation Other Allocated Costs 30,202 425,728 19,296 Total 2006 30,202 663,475 19,296 712,973 Total 2005 30,412 642,403 8,167

207,713

30,034

207,713

30,034

475,226

680,982

Other direct costs include:

Total 2006 6,000 33,728 30,034

Total 2005

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

5,523 19,376 36,296

5 STAFF COSTS

Total 2006 197,636 16,490 214,126

Total 2005 172,147 16,344 188,491

Wages and salaries Social security costs

6 FIXED ASSET INVESTMENTS

At Valuation
Market value at 1 September 2005 Additions Net gains on revaluation Market value at 31 August 2006 83,652 (2,730) 80,922 82,150 1,502 83,652

Analysis of investments Cost Fixed interest securities 78,650

Market Value 2006 80,922

Market Value 2005 83,652

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2006

Page 11

7 TANGIBLE FIXED ASSETS Freehold Land & Buildings COST At 1 September 2005 Additions Disposals Plant & Machinery Furniture & Fixtures Office Equipment

Total

1,137,779

16,857

41,329

6,093

1,202,058

At 31 August 2006
DEPRECIATION At 1 September 2005 Charge for year

1,137,779

16,857

41,329

6,093

1,202,058

110,683 22,755
133,438

5,058 1,685
6,743

35,343 4,096
39,439

3,096 1,498
4,594

154,180 30,034
184,214

On disposals
At 31 August 2006 NET BOOK VALUE At 31 August 2006 At 1 September 2005 1,004,341 1,027,096 10,114 11,799 1,890 5,986 1,499 2,997 1,017,844 1,047,878

The fixed assets are used by the Charity for the furtherance of its objectives. The freehold property is secured by a bank loan shown in note 10 below.

8 DEBTORS 2006 Trade debtors Prepayments and accrued income 112,275 4,549 2005 7,380 12,640 20,020

116.824

9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2006 Bank loans and overdrafts Other loans Trade creditors Other creditors Other taxation and social security Accruals and deferred income 21,852 10,000 47,528 32,266 5,293 130,942 2005 18,000 20,000 14,870 37,825 96,218

247,881

186,913

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (Continued) YEAR ENDED 31 AUGUST 2006 10 CREDITORS: AMOUNTS FALLING DUE WITHIN AFTER MORE THAN ONE YEAR 2006 Bank loans and overdrafts Other loans 534,080

Page 12

2005 554,265

534,080

554,265

Bank loan
Amounts repayable between one and two years Amounts repayable between two and five years Amounts repayable after five years 21,852 65,556 446,672 534,080 18,000 66,000 470,265 554,265

Amounts repayable within one year

21,852
555,932

18,000
572,265

The bank loan is with No rt hern Rock plc and has sixteen years remaining at the balance sheet date. A sum of 21,852 is also included within current liabilities. Interest is payable at a rate of 1.50% above the Northern Rock base rate. The loan is secured by a legal charge over the charity's property at 92-94 Tooley Street, London, SE1 2TH. The other loan is with The Bolton's and only has one year remaining at the balance sheet date. A sum of 10,000 is included within current liabilities. Interest is payable at a rate of 1.5%. The loan is secured over the Charity's property at 92-94 Tooley Street, London, SE1 2TH.

The outstanding amounts in the above loans represent 53% (2005: 56%) of the book value of 92-94 Tooley Street, London, SE1 2TH.

11 STATEMENT OF FUNDS Balance 01 Sep 2005 General Rese rve Designated Rese rves Development fund 479,763 Expenditure Transfer between funds (715,703) Balance 31 Aug 2006 416,967

Income

652,907

45,507

45,507 462,474

Total unrestricted funds Designated rese rves

525,270

652,907

(715,3

The Development fund is to provide for future marketing and education. 12 RELATED PARTY TRANSACTIONS No transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 8.

PSYCHOSYNTHESIS AND EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 AUGUST 2006

Page 13

13

COMMITMENTS OPERATING LEASES

At 31 August 2006 the Charity had the following annual commitment under non-cancellable operating leases: Office equipment 2006 2005 Operating leases which expire Within one year Within two to five years

7,432 26,288

19,376

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