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.
Page 19
## SHARING ONE LANGUAGE
## 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|
Page 20
## SHARING ONE LANGUAGE
## 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||
||||||||||||
Page 21
## SHARING ONE LANGUAGE
## 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).
Page 22
## SHARING ONE LANGUAGE
## 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|
Page 23
## SHARING ONE LANGUAGE
## 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|
Page 24