2021-12-31-accounts

Company registration number: 2481025 Charity registration number: 1019182

Sharing One Language (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 December 2021

SHARING ONE LANGUAGE
CONTENTS
Reference and Administrative Details	1
Strategic Report	2 to 3
Trustees' Report	4 to 7
Independent Examiner's Report	8
Statement of Financial Activities	9
Balance Sheet	10
Statement of Cash Flows	11
Notes to the Financial Statements	12 to 24

SHARING ONE LANGUAGE REFERENCE AND ADMINISTRATIVE DETAILS

Secretary S Evans Charity Registration Number 1019182 Company Registration Number 2481025

The charity is incorporated in England and Wales.

Registered Office Bridge Chambers The Strand BARNSTAPLE Devon EX31 1HB Independent Examiner Glover Stanbury Chartered Accountants and Registered Auditors 30 Bear Street BARNSTAPLE Devon EX32 7DD Bankers HSBC plc 10 High Street BARNSTAPLE Devon EX31 1BQ

Page 1

SHARING ONE LANGUAGE

STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2021, in compliance with s414C of the Companies Act 2006.

Achievements and performance

Financial review

With no income from groups at all, the only income during the year has been from 5 very limited sources:

• The first through a small amount of regular on-line teaching of English courses by the teaching team

• The second through an extended on-line teacher training programme in the spring where donations were invited.

• The third through sales from the bookshop. This has always been recognised as a bonus, accounting for about 1% of normal total income, but at the same time providing for our main office.

• The fourth was a one-week live programme run by two staff in a Czech school for both teachers and students.

• In addition an on-going “Just Giving” option was available on our website to anyone who wanted to donate.

The Government’s furlough scheme allowed us to maintain all staff on the payroll, whilst we continued to use the 20% of non-furloughed time, we chose for work which was either needed (as in the office) or enabled us to try to raise some income. In reality the attempts to raise money did not match the expenditure but we were in completely unknown territory. The use of on-line for educational training was new to us but in the pandemic became a norm for everyone – and so did not have the appeal we expected. However, it has given us new ideas for development for the future as teaching returns to normal.

The end of the furlough scheme in October gave us the biggest problem as we then had to absorb all our salary costs and with our cash flow dwindling gave us a huge challenge. The staff agreed to cuts in salaries for October and unless income was found, even more severe ones were agreed for the New Year, without which closure looked inevitable by Easter.

The year itself showed a loss half of what we suffered in 2020, due to these salary reductions as well as several cost-cutting decisions. The landlord trust was accepting of our situation and was not putting pressure to repay the rent which we owed and had not paid all year.

Our belief was that, with the pandemic seeming to be turning a corner, that if we could hold on to the spring teachers would be in a better position to judge what was possible. Many were expressing their wish to come and so we would be in a position to judge the future and a positive response from bookings would enable us to restart our work with confidence. Thankfully this decision was justified as we were able to receive our first groups in May 2022.

Page 2

SHARING ONE LANGUAGE

STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Policy on reserves

Sharing One Language holds reserves in its accounts to sustain short term cashflow needs. As the activities are mainly seasonal, reserves are vital to aid cashflow in the winter months. Also, as a contingency against the risks outlined below, the aim is to maintain a reserves level of at least £50,000.

Plans for future periods

Aims and key objectives for future periods

As of September 2022, the number of groups which will have been received from May to December this year will be approaching 40% of what would be a normal year total. It has assured cash flow through the coming New Year period and the bookings for 2023 especially early on are very encouraging. SOL is now repaying the Government loan and is also making an agreement to make partial payments for our rent. The staff continue to accept the need to find other work to support their own cut in hours and salary with a hoped for review in January 2024.

Principal risks and uncertainties

The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to try to mitigate those risks. The main risks are economic factors, exchange rate fluctuations, changes enacted as part of the Brexit negotiations, the current war in Ukraine and also other political changes in visa policies etc.

The current specific risk identified relates to the Covid-19 virus which escalated far more than could have been originally anticipated. As such the reserves of the company have been completely depleted and the balance sheet is in a deficit situation as reflected in the accounts. However the overall Covid situation has improved with the successful vaccination programmes that have been carried out in all European countries and travel has recommenced which has enabled groups to again visit the UK in mid to late 2022. With the current reserves position the situation is being reviewed regularly and there is reasonable prospect for a slow improvement in the reserves situation in 2022, however the company does face other operational challenges as group numbers start to return to a more normal level.

The strategic report was approved by the trustees of the charity on 23 September 2022 and signed on its behalf by:

M Humfrey Trustee

Page 3

SHARING ONE LANGUAGE TRUSTEES' REPORT

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2021.

Objectives and activities

Objects and aims

The aim of Sharing One Language continues to be to provide support for the teaching and learning of English in the countries of Eastern and Central Europe. These countries continue to have economic situations resulting in very low incomes by UK standards and so access to the English language is often restricted as a result because of the cost of tuition and travel.

Sharing One Language’s provision of short courses for students, teachers and future teachers throughout the year in our three centres in North and Mid Devon continues to be the backbone of our work and primary income earner. The recruitment of native speaking teachers is a much lower priority as the demand, as well as the supply of teachers, has continued to fall. School populations are falling, local teachers are teaching larger classes and more lessons and schools cannot afford the additional costs of accommodation required for a native speaking teacher.

Public benefit

As described above, the charity supports the teaching and learning of English in the countries of Eastern and Central Europe. Over the years the charity has provided education to thousands of students and teachers who otherwise would not have access to an English teacher. The groups that visit the United Kingdom also benefit the wider economy as well, particularly in the North Devon area.

The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 4

SHARING ONE LANGUAGE TRUSTEES' REPORT

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: A H S White P Chapman M Humfrey D G Luggar (appointed 23 March 2022)

Secretary: S Evans

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Sharing One Language for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Structure, governance and management

Nature of governing document

The organisation is a charitable company limited by guarantee. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up the members liability will be a maximum of £1.

Page 5

SHARING ONE LANGUAGE TRUSTEES' REPORT

Recruitment and appointment of trustees

The Directors of the company are also the charity trustees and manage the organisation as a Board of Trustees. This board is headed by the chairperson. New trustees are appointed by the Board if a suitable candidate is identified who would benefit the company with regard to their knowledge and expertise.

Induction and training of trustees

As such, training of the trustees is minimal although, prior to any appointment, the activities of SOL are explained as part of the induction process.

Organisational structure

The day to day management of the charity is undertaken by the general manager Grenville Yeo. The trustees have commissioned a consultancy review of the structure and future management of Sharing One Language bearing in mind that the general manager will be retiring in the not too distant future although this will be phased in over a number of years.

Major risks and management of those risks

The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to try to mitigate those risks. The main risks are economic factors, exchange rate fluctuations, changes enacted as part of the Brexit negotiations, the current war in Ukraine and also other political changes in visa policies etc.

The current specific risk identified relates to the Covid-19 virus which escalated far more than could have been originally anticipated. As such the reserves of the company have been completely depleted and the balance sheet is in a deficit situation as reflected in the accounts. However the overall Covid situation has improved with the successful vaccination programmes that have been carried out in all European countries and travel has recommenced which has enabled groups to again visit the UK in mid to late 2022. With the current reserves position the situation is being reviewed regularly and there is reasonable prospect for a slow improvement in the reserves situation in 2022, however the company does face other operational challenges as group numbers start to return to a more normal level.

Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Page 6

SHARING ONE LANGUAGE TRUSTEES' REPORT

Cash flow risk

The Charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. However, the charity mainly invoices in GBP which minimises the direct impact of these changes. In addition, the charity's reserves policy and also payment in advance for courses means that there should be no exposure to interest rate charges.

Credit risk

The Charity’s principal financial assets are bank balances and cash, trade and other receivables. The Charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Charity uses accumulated funds held in unrestricted reserves. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

The annual report was approved by the trustees of the charity on 23 September 2022 and signed on its behalf by:

M Humfrey Trustee

Page 7

SHARING ONE LANGUAGE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SHARING ONE LANGUAGE ("THE COMPANY")

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Sharing One Language 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

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:

1. accounting records were not kept in respect of Sharing One Language as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

4. the accounts 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 accounts 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 accounts to be reached.

Nigel Bennett FCA Chartered Accountants and Registered Auditors ICAEW

30 Bear Street BARNSTAPLE Devon EX32 7DD

23 September 2022

Page 8

SHARING ONE LANGUAGE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

				Total		Total
		Unrestricted		2021		2020
	Note	£		£		£
Income and Endowments from:
Donations, legacies and grants	3	75,932		75,932		79,342
Charitable activities	4	14,726		14,726		97,444
Other trading activities	5	6,317		6,317		3,331
Investment income	6	7		7		226
Total Income		96,982		96,982		180,343
Expenditure on:
Raising funds	7	(5,327)		(5,327)		(5,920)
Charitable activities	8	(151,177)		(151,177)		(284,378)
Total Expenditure		(156,504)		(156,504)		(290,298)
Net expenditure		(59,522)		(59,522)		(109,955)
Net movement in funds		(59,522)		(59,522)		(109,955)
Reconciliation of funds
Total funds brought forward		17,426		17,426		127,381
Total funds carried forward	21	(42,096)		(42,096)		17,426

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 21.

Page 9

SHARING ONE LANGUAGE (REGISTRATION NUMBER: 2481025) BALANCE SHEET AS AT 31 DECEMBER 2021

SHARING ONE LANGUAGE (REGISTRATION NUMBER: 2481025) BALANCE SHEET AS AT 31 DECEMBER 2021
		2021		2020
	Note	£		£
Fixed assets
Tangible assets	15	5,035		6,439
Current assets
Stocks	16	500		500
Debtors	17	784		657
Cash at bank and in hand	18	42,140		115,119
		43,424		116,276
Creditors: Amounts falling due within one year	19	(90,555)		(105,289)
Net current (liabilities)/assets		(47,131)		10,987
Net (liabilities)/assets		(42,096)		17,426
Funds of the charity:
Unrestricted income funds
Unrestricted funds		(42,096)		17,426
Total funds	21	(42,096)		17,426

For the financial year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The financial statements on pages 9 to 24 were approved by the trustees, and authorised for issue on 23 September 2022 and signed on their behalf by:

M Humfrey Trustee

Page 10

SHARING ONE LANGUAGE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

		2021		2020
	Note	£		£
Cash flows from operating activities
Net cash expenditure		(59,522)		(109,955)
Adjustments to cash flows from non-cash items
Depreciation	7	1,404		1,704
Investment income	6	(7)		(226)
		(58,125)		(108,477)
Working capital adjustments
(Increase)/decrease in debtors	17	(127)		103
Increase in creditors	19	15,072		1,825
Decrease in deferred income		(30,015)		(114,156)
Net cash flows from operating activities		(73,195)		(220,705)
Cash flows from investing activities
Interest receivable and similar income	6	7		226
Purchase of tangible fixed assets	15	-		(1,905)
Net cash flows from investing activities		7		(1,679)
Cash flows from financing activities
Value of new loans obtained during the period		209		50,000
Net decrease in cash and cash equivalents		(72,979)		(172,384)
Cash and cash equivalents at 1 January		115,119		287,503
Cash and cash equivalents at 31 December		42,140		115,119

All of the cash flows are derived from continuing operations during the above two periods.

Page 11

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 CHARITY STATUS

The charity is a charity limited by guarantee, incorporated in the United Kingdom and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Bridge Chambers The Strand BARNSTAPLE Devon EX31 1HB

These financial statements were authorised for issue by the trustees on 23 September 2022.

2 ACCOUNTING POLICIES

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Sharing One Language meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. There is a concern regarding the current covid-19 pandemic which has had a material impact on the operations of Sharing One Language, which does pose a material threat to the survival of the charity. If the going concern basis was not utilised the only asset that would have to be restated would be fixed assets which are currently stated at £5,035 and the break up value of these assets would be considerably less. Plans are in place by the trustees and actions are being taken to address the matters of concern and groups are now able to travel to the UK and thus income is now being generated in 2022 which is expcted to reduce the current deficit reserves situation, however, this is not expected to be entirely cleared in the short term.

Page 12

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

• The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.

Other trading activities

Shop income is recognised as earned (that is, as the related goods or services are provided).

Investment income

Investment income is recognised on a receivable basis.

Other income

Income from charitable activities represents amounts receivable as groups visit the United Kingdom. Amounts invoiced during the year for a subsequent years visit are carried forward within creditors as accrued income.

Page 13

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 14

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Asset class Depreciation method and rate Leasehold property improvements 5% straight line basis Fixtures and fittings 20% reducing balance

Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated selling costs. Cost is determined using the first-in, first-out (FIFO). Items donated for resale or distribution are not included in the financial statements until they are sold or distributed.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Foreign exchange

Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the closing rates at the balance sheet date and the exchange differences are included in the statement of financial activities.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 15

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 3 INCOME FROM DONATIONS AND LEGACIES

3 INCOME FROM DONATIONS AND LEGACIES
	Total		Total
	2021		2020
	£		£
Donations and legacies;
Donations	4,655		1,884
Grants, including capital grants;
Government grants	71,277		77,458
	75,932		79,342
4 INCOME FROM CHARITABLE ACTIVITIES
	Unrestricted
	funds		Total
	General		funds
	£		£
Group contributions	10,370		10,370
Total for 2021	10,370		10,370
Total for 2020	97,344		97,344
5 INCOME FROM OTHER TRADING ACTIVITIES
	Unrestricted
	funds		Total
	General		funds
	£		£
Trading income;
Shop income from sale of donated goods and services	6,317		6,317
Total for 2021	6,317		6,317
Total for 2020	3,331		3,331
6 INVESTMENT INCOME
	Unrestricted
	funds		Total
	General		funds
	£		£
Interest receivable and similar income;
Interest receivable on bank deposits	7		7
Total for 2021	7		7
Total for 2020	226		226

Page 16

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7 EXPENDITURE ON RAISING FUNDS

COSTS OF TRADING ACTIVITIES

COSTS OF TRADING ACTIVITIES
			Unrestricted
				funds		Total
				General		funds
		Note		£		£
Costs of goods sold				5,327		5,327
Total for 2021				5,327		5,327
Total for 2020				5,920		5,920
8 EXPENDITURE ON CHARITABLE ACTIVITIES
	Unrestricted
		funds		Total		Total
		General		2021		2020
		£		£		£
Group expenditure		124,537		124,537		251,839

In addition to the expenditure analysed above, there are also governance costs of 26,640 (2020 - 32,539) which relate directly to charitable activities. See note 9 for further details.

Page 17

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9 ANALYSIS OF GOVERNANCE AND SUPPORT COSTS

Charitable activities expenditure

Charitable activities expenditure
	Unrestricted
	funds
			Total		Total
	General		2021		2020
	£		£		£
Staff costs	88,559		88,559		148,231
Host family payments	-		-		32,546
Excursions	(90)		(90)		24,064
Room hire, teachers' and co-ordinators' expenses	108		108		808
Light, heat and power	3,772		3,772		4,816
Insurance	2,353		2,353		2,448
Repairs and maintenance	2,504		2,504		3,203
Telephone and fax	4,523		4,523		4,304
Office accommodation expenses	11,771		11,771		11,626
Printing, postage and stationery	1,284		1,284		2,810
Sundry expenses	2,882		2,882		4,081
Travel and subsistence	182		182		1,436
Advertising	947		947		2,373
Legal and professional fees	1,730		1,730		1,959
Bank charges and interest	1,824		1,824		2,639
Foreign currency (gains)/losses	207		207		(821)
Depreciation	1,404		1,404		1,704
Hands up project	-		-		3,200
Hire of plant & machinery	368		368		412
Loan interest	209		209		-
	124,537		124,537		251,839

Page 18

SHARING ONE LANGUAGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

GOVERNANCE COSTS

GOVERNANCE COSTS
	Unrestricted
	funds		Total		Total
	General		2021		2020
	£		£		£
Staff costs
Wages and salaries	18,847		18,847		22,525
Social security costs	410		410		736
Pension costs	362		362		417
Independent examiner fees
Examination of the financial statements	3,357		3,357		4,934
Other governance costs	3,664		3,664		3,927
	26,640		26,640		32,539
10 NET INCOMING/OUTGOING RESOURCES
Net outgoing resources for the year include:
			2021		2020
			£		£
Depreciation of fixed assets			1,404		1,704

11 TRUSTEES REMUNERATION AND EXPENSES

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

12 STAFF COSTS

The aggregate payroll costs were as follows:

12 STAFF COSTS The aggregate payroll costs were as follows:
	2021		2020
	£		£
Staff costs during the year were:
Wages and salaries	103,368		141,317
Social security costs	2,627		4,748
Pension costs
	1,811		2,085
Tuition and guide fees	372		23,759
	108,178		171,909

The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:

charity during the year was as follows:
	2021		2020
	No		No
Administration	2		3
Management staff	1		1
Teachers, co-ordinators and guides	3		5
	6		9
No employee received emoluments of more than £60,000 during the year.
13 INDEPENDENT EXAMINER'S REMUNERATION
	2021		2020
	£		£
Examination of the financial statements	3,357		4,934

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14 TAXATION

The company is a registered charity and is, therefore, exempt from taxation upon it's charitable activities.

15 TANGIBLE FIXED ASSETS

15 TANGIBLE FIXED ASSETS
		Short
		leasehold			Furniture
		property			and
	improvements equipment								Total
		£			£				£
Cost
At 1 January 2021		4,085			55,009				59,094
At 31 December 2021		4,085			55,009				59,094
Depreciation
At 1 January 2021		3,645			49,010				52,655
Charge for the year		204			1,200				1,404
At 31 December 2021		3,849			50,210				54,059
Net book value
At 31 December 2021		236			4,799				5,035
At 31 December 2020		440			5,999				6,439
16 STOCK
					2021				2020
					£				£
Stocks					500				500
17 DEBTORS
					2021				2020
					£				£
Prepayments					259				657
Other debtors					525				-
					784				657

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18 CASH AND CASH EQUIVALENTS

18 CASH AND CASH EQUIVALENTS
	2021		2020
	£		£
Cash on hand	2,268		2,976
Cash at bank	39,872		112,143
	42,140		115,119
19 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
	2021		2020
	£		£
Bank loans	50,209		50,000
Trade creditors	19,572		3,877
Pension scheme creditor	218		202
Accruals	3,996		4,635
Deferred income	16,560		46,575
	90,555		105,289

20 PENSION AND OTHER SCHEMES

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £1,811 (2020 - £2,085).

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21 FUNDS

21 FUNDS
							Balance at
							31
	Balance at 1		Incoming		Resources		December
	January 2021		resources		expended		2021
	£		£		£		£
Unrestricted funds
General	17,426		96,982		(156,504)		(42,096)
							Balance at
							31
	Balance at 1		Incoming		Resources		December
	January 2020		resources		expended		2020
	£		£		£		£
Unrestricted funds
General	127,381		180,343		(290,298)		17,426
22 ANALYSIS OF NET ASSETS BETWEEN FUNDS
Current year
			Unrestricted			Total funds at 31
			funds			December
			General				2021
			£				£
Tangible fixed assets			5,035				5,035
Current assets			43,424				43,424
Current liabilities			(90,555)				(90,555)
Total net assets			(42,096)				(42,096)
Prior year
			Unrestricted			Total funds at 31
			funds			December
			General				2020
			£				£
Tangible fixed assets			6,439				6,439
Current assets			116,276				116,276
Current liabilities			(105,289)				(105,289)
Total net assets			17,426				17,426

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23 ANALYSIS OF NET FUNDS

23 ANALYSIS OF NET FUNDS
	At 1				At 31
	January		Financing		December
	2021		cash flows		2021
	£		£		£
Cash at bank and in hand	115,119		(72,979)		42,140
Net debt	115,119		(72,979)		42,140
	At 1				At 31
	January		Financing		December
	2020		cash flows		2020
	£		£		£
Cash at bank and in hand	287,503		(172,384)		115,119
Net debt	287,503		(172,384)		115,119

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