The Trustees present their annual report and financial statements for the year ended 30 September 2024.
The financial statements have been prepared in accordance with accounting policies set out in our note 1 to the accounts and comply with the charity’s governing document, ” Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019) and the Charities Act 2011.
The objectives of the charity are to provide educational services to educational institutions and students in the field of interior architecture and design.
The charity also aims to advance subjects in interior design, interior architecture and related disciplines in particular by the provision (or assistance with the provision) of:
- Land, buildings, equipment or other services;
- Conferences, seminars, training, courses or public research; and
- Such other means as the trustees from time to time determine.
Other charitable activities include the prevention and relieve of poverty and financial hardship among those persons, in particular students and prospective students of interior design, interior architecture and related disciplines, who are at risk of being in need by the provision (or assistance with the provision) of:
- Grants
- Scholarships
- Bursaries
- Loans
- Other financial assistance and such other means at the trustees may from time to time determine.
The Trustees are of the opinion that the ability to offer financial assistance to students meets its requirements to consider the need to consider the public benefit requirements of the charity.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
In 2023-24 the charity issued 51 membership invoices; this figure was down 5 on 2022-23. This was principally due to the decision at the 2023 AGM at Sheffield Hallam University was to initiate a provision for ‘affiliate membership’ of Interior Educators. This was in response to a number of members reporting that their institutions were refusing to pay due to pressures on departmental or institutional budgets.
At the end of the accounting year 7 members’ invoices were unpaid; 1 course closed and invoice will not be paid, 3 have not responded and 3 did not pay and requested affiliate status. Of those 3, 3 will be full members in 2024-25. Overall, the number of members is expected to remain similar in 2025.
The other significant financial decision taken at the AGM was to change the focus and scale of the annual IE summer show. Again this was largely driven by members’, and their students’, financial circumstances. The 2024 exhibition built on the success of the IE National Student Awards and the exhibition was limited to the entrants and winners of these. The cost of the exhibition was managed from within the membership fee rather than requesting a further cost from members – in 2023 this had been £1,200 and there was an increasing sense that the exhibition was not inclusive.
The Interior Educators national student awards were again very successful, attracting nearly 500 entrants from across the UK with the winners being published in the national design press. The newly formatted awards exhibition at The Drum Labs in London was also a great success, with a live relay of the awards presentations. The show was sponsored by Brinkworth Design and the Royal College of Art and was designed to be flat-packed and is now ‘on tour’ around the UK.
Interior Educators AGM in November 2023 was at Sheffield Hallam University in London with its mid-year meeting at the University of Derby in March 2024. In addition to the matters described above discussions focussed on our response to key issues affecting our discipline and the wider Creative Arts and Design in Higher Education. Through meetings with the Council for Higher Education in Art and Design (CHEAD) we discussed the risks and difficulties that multiple admissions entry requirements place on secondary school students applying to creative courses and whether IE was in a position to help rationalise this process. This is an ongoing issue.
Our partnership with United in Design continues to grow and enables students from less advantaged or professionally familiar backgrounds to access employment in the Interiors industry. The decision to reintroduce prizes at the IE awards in the form of book and materials vouchers was designed to both reward students’ achievement and enable students’ development and progress.
An updated Interior Educators Strategic Plan was also discussed that would be for the period 2024-30, thus aligning broadly with Universities Strategic Plans, and also covering IE’s 20th anniversary in 2026. This was presented in draft at the meeting in Derby and confirmed at the 2024 AGM in Newcastle.
We were delighted to confirm that three IE Conferences were now being in planned: 2024 Northumbria University, 2025 Edinburgh College of Art, University of Edinburgh, 2026 Glasgow School of Art. IE is currently committed to support each conference to a sum of £3,000, with a possible further £2,000 for publication or dissemination of the event.
The 2024 AGM took place, in person and online, at Northumbria University prior to the conference in November 2024. The 2025 AGM will take place at Edinburgh.
All members and trustees who volunteer for Interior Educators do so on the basis that their work is recognised in publicity and is not remunerated.
During the year the charity generated income totaling £22,425. There was no exhibition income in the year. With the majority of expenditure relating to show costs, the charity has reported a deficit for the year of £10,020 (2023: surplus £25,502 as restated).
Reserves policy
The Trustees are conscious of the need to have a reserves policy. The Trustees have decided that unrestricted reserves should be maintained at a minimum of £20,000, which corresponds to running costs needed for the summer show. Unrestricted reserves are £32,046 at 30 September 2024 (2023: £42,066 as restated).
Risk assessment
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a charity and is recognised as such by the HM Revenue & Customs for taxation purposes. As a result there is no liability to taxation on any of its income.
Interior Educators is a charitable company, limited by guarantee, that was incorporated on 20 June 2008. The company was awarded charitable status was granted on 29 July 2012 and registered with the Charity Commission for England and Wales on 31 July 2012. The Charity is governed by its memorandum and articles of association.
The Trustees who served during the year and up to the date of signature of the financial statements were:
The Trustees are also the directors of the charitable company for the purposes of company law and under the company's articles. None of the trustees has any beneficial interest in the Charity. All of the trustees are members of the Charity and guarantee to contribute £10 in the event of a winding up.
Appointment of Trustees
As defined by the Articles of Association, the Trustees are re-elected/elected through a vote at the Annual General Meeting. A revised term of 4 years for Director-Trustees and 3 years for Trustees was proposed and accepted at the AGM at Napier Edinburgh on 26 April 2019, in order to ensure turnover of participation whilst maintaining continuity.
Management
The management of the Charity is the responsibility of the Board of Trustees.
Decisions are made by the Trustees at regular trustees’ meetings by a majority vote. Each trustee has one vote. If a casting vote is required, it can be exercised by the chairman elected by the trustees for that meeting.
There is a possible influence on the charity’s operating policies of other educational charities in the design and creative sector such as the CHEAD organisation.
The charity is affiliated to a global network of other similar associations such as I.D.E.A. (Interior Design/Architect educators Association) in New Zealand and Australia and I.F.I (the International Federation of Interior Architects and Designers).
Trustees' induction and training
Training is through mentorship with existing trustees, using external resources and/or training as appropriate. Outgoing trustees have made it clear that they will remain available to mentor those who are new to the role.
The above report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006 relating to small companies.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Interior Educators (the charity) for the year ended 30 September 2024 which comprise the statement of financial activities, balance sheet and related notes.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
Interior Educators is a private company limited by guarantee incorporated in England and Wales. The registered office is Bede House, 3 Belmont Business Park, Durham, DH1 1TW.
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), the Charities Act 2011 and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The prior year figures have been restated to reflect a correction to the timing of income recognition.
The financial impact of this change in policy is shown in note 11.
The charity has a reported a deficit in the year. Given that the charity had exceeded its reserves policy target at the year end, and given expectations of future income and expenditure levels, the Trustees consider that the charity has sufficient cash resources to meet its ongoing obligations and will continue in operational existence for the foreseeable future. They have therefore opted to continue to prepare the financial statements on a going concern basis.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Donations, legacies and membership subscriptions are included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Grant income, where related to performance and specific deliverables, is accounted for as the charity earns the right to consideration by its performance.
Income received from exhibition income is credited in full in the period in which it is received.
Expenditure is recognised when a legal or constructive obligation has been entered into and has been charged direct to charitable expenditure, cost of generating funds or governance costs.
Charitable activities comprise 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 accounting and independent examination fees and costs linked to the strategic management of the charity.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
VAT
The charity is not registered for VAT and accordingly expenditure includes VAT where appropriate.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Trustees are not aware of any such items affecting the financial statements.
Membership income
Exhibitor income
Show venue
Show security
Other show costs
Website maintenance
Insurance
Trustee expenses
Accountancy and independent examination fees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the current or prior years. One trustee received a reimbursment of expenses relating to travel and accomodation totalling £128 (2023: £370)
There were no employees in the current or prior year.
There were no disclosable related party transactions during the year (2023 - none).