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← The Cordwainers Educational And Training Charitable Trust Company

2024-07-31-accounts

COMPANY REGISTRATION NUMBER: 3100993

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY

COMPANY LIMITED BY GUARANTEE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

Charity Number: 1050213

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Contents Page
General Information 1
Trustees’ Annual Report 2
Independent Auditor’s Report 6
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Reference and Administrative Details

Year ended 31 July 2024

Registered Charity Name The Cordwainers Educational and Training Charitable Trust Company Charity Number 1050213 Company Registration Number 3100993 Principal Office Saddlers House Gutter Lane LONDON EC2V 6BR Registered Office Saddlers House Gutter Lane LONDON EC2V 6BR Trustees G C R Booth (In post on 28 November 2024) A Chamberlain S A Childs J D Church (Chair) C P Fairweather E C Fairweather A B N Peal Professor Sir Stephen Powis (appointed 18 July 2024) R O M Williams Secretary P J Graham Auditor HaysMac LLP 10 Queen Street Place LONDON EC4R 1AG Bankers Hoares Bank 37 Fleet Street LONDON EC4Y 1BT Investment Managers Bordier and Cie (UK) PLC 23 King Street LONDON SW1Y 6QY

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Trustees’ Annual Report For the year ended 31 July 2024

The trustees, who are also directors for the purposes of company law, present their annual report and the financial statements of the company for the year ended 31 July 2024.

The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (second edition, issued in 2019).

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown in the schedule of general information on page 1 of the financial statements.

TRUSTEES

The trustees who served the Company during the period were as follows:

STRUCTURE, GOVERNANCE AND MANAGEMENT OF THE CHARITY

Governing document

The Cordwainers Education and Training Charitable Trust Company is a charity registered with the Charity Commission and a company limited by guarantee, governed by its Memorandum and Articles of Association, incorporated on 6 September 1995.

The charity was established for the promotion of education through, but not limited to, the provision of accommodation for individuals undertaking vocational or educational training, and for the support of education and training through the distribution of grants and awards. The charity owns Cordwainers Court, Mare Street, London, E9 7PS which provides affordable accommodation to students studying at the University of the Arts London (UAL).

Induction and training of new trustees

On appointment, new trustees receive detailed information on both their role as a trustee and the charity. They are invited to attend a trustees’ meeting before formally accepting the position and are also invited and encouraged to visit Cordwainers Court and to take part in aspects of the charity’s work to gain a fuller understanding of the issues involved.

Organisational structure

The directors of the charitable company (’the charity’) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. There is a minimum of four trustees, three of which are ex-officio and are appointed by the Worshipful Company of Cordwainers. Other trustees, including an independent trustee, are elected by the board of trustees of the charity. All appointments are subject to ratification at the next Annual General Meeting. The charity has management liability insurance, which indemnifies the trustees.

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Trustees’ Annual Report For the year ended 31 July 2024

Related parties

The charity has a close relationship with the Worshipful Company of Cordwainers, which, in accordance with the Memorandum and Articles of Association, appoints three ex-officio trustees.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. To this end, the charity maintains a risk register.

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and are satisfied that systems and controls are in place to mitigate exposure to the major risks. As part of the process, in addition to the risk register, the trustees review:

The trustees have reviewed the charity’s own internal financial controls and those used by UAL, as managers of the property, and are satisfied that these are appropriate in minimising any risk to the charity’s funds.

Over the last year, the trustees reviewed extensively options for a major refurbishment of Cordwainers Court Blocks A – C, which were constructed in 1996. This included seeking and obtaining planning permission to extend the blocks slightly, to enable all the rooms to be upgraded to en suite accommodation. Regrettably, significantly increased construction and financing costs have made the project unaffordable for the charity to carry out itself and, after long deliberation, the trustees have decided to sell Cordwainers Court during the coming year. A strategic risk to the charity, therefore, is the inability to secure a buyer for the property which would delay the charity being able to re-structure into a predominantly grant-making charity.

CHARITABLE OBJECTIVES AND ACTIVITIES

Objects

The charity’s objects are the promotion of education and in particular, but without prejudice to the generality of the foregoing:

Donations policy

It is the policy of the trustees to use available income to provide affordable student accommodation. The four blocks of Cordwainers Court, consisting of 25 self-catering flats, mostly for four students, are maintained to a high level but are some of the cheapest hall accommodation available in London. In addition, the charity supports education through the distribution of grants and awards in the form of scholarships, bursaries and other awards, such as for hardship.

Public benefit

The objects of the charity are to provide accommodation for those undergoing vocational and educational training and to make available scholarships and bursaries to students. The trustees confirm they have complied with the duty in section 17 of the Charities Act 2011 in that they have referred to the guidance contained in the

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY

Company Limited by Guarantee

Trustees’ Annual Report For the year ended 31 July 2024

Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the year.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

In addition to providing grants, the trustees see one of the primary charitable activities of the charity as the provision of affordable student accommodation in a city where rents are often excessive and consequently unaffordable for many; as a result, since its construction, Cordwainers Court has proved highly popular with students. The hall of residence again achieved full occupancy during the year, as students have struggled with costs in London; during the 2023–24 year over 75% of the accommodation was taken on 50-week contracts.

Grants totalling £50,000 were made to three educational institutions in 2023/24: £39,000 was allocated to the London College of Fashion, part of the University of Arts London, £5,000 to De Montfort University, £5,000 to the University of Northampton and £1,000 to Capel Manor College. These grants were used to support students studying footwear design or shoemaking, through scholarships, bursaries, and prizes for excellence. An additional sum of £10,000 was provided to UAL, for the university-run Student Welfare and Enrichment programme and a hardship fund and was thus able to help the wider student population.

FINANCIAL REVIEW

Financial performance

The charity ended the year with a surplus for the year of £158,770 (2023: surplus £123,853) before net investment gains of £56,125 (2023: losses £14,175), and an overall increase in net funds of £214,895 (2023: increase of £109,678). Expenditure of £333,784 on legal and professional fees on the development of Cordwainers Court has been capitalised following the decision by the trustees to sell the property.

Reserves policy and going concern

The charity’s financial position remains positive and the result for the year is shown on page 9.

It is the normal policy of the charity to maintain free funds at a level which equates to or exceeds approximately 12–24 months operational expenditure. Over the last year, the trustees have been reviewing the future of Cordwainers Court and have considered the risks faced by the charity in failing to secure a buyer for the property in the next 12-24 months. They consider the cash reserves held will ensure the charity remains a going concern over this period.

The level of reserves as at 31 July 2024 was £4,209,008 (2023: £4,352,897) and the reserves were wholly unrestricted. Free funds, being unrestricted reserves excluding tangible fixed assets, were £1,846,955 (2023: £1,881,364). Of the reserves, £1 million is allocated to the general operational reserve and the balance is allocated to a redevelopment reserve. The latter has been built up in case it is necessary to cover a period without income if no buyer for the hall of residence can be found.

Investment policy and objectives

The trustees have power to make any investment which they see fit. Some of the charity’s assets are invested in a balanced portfolio, managed by Bordier and Cie (UK) PLC, who act as independent custodians on behalf of the charity.

PLANS FOR FUTURE PERIODS

As Blocks A–C are now over 25 years old, the trustees had been considering options for a major refurbishment to take place in the next few years and had secured planning permission for small extensions to Blocks A – C to enable all rooms to be upgraded to ensuite accommodation. Regrettably, the trustees have concluded that

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee Trusteesl Annual Report For theyear ended 31 July 2024 enable all rooms to be upgraded to ensuite acccmmoda¢ion. Regrettably, they have conduded that Increases in construction and financing c05¢5 haye rendered the project unaffordable for the tharity to carry out itself and therefore. having extensively considered ail possible option5, have concluded that the hall of residence should be marketed for sale. Notice was served to UAL in August 2024 to cease the provision of student accommodation from the end of the 2024125 academic year. The trustees are now giving carefijl consideration to the future strategy of the chariry. which is likely to become x predominarrtly 8r4nt-yving chariry supporting educ2ti0n. TRUSTEES. RESPONSIBILITIES STATEMENT The tru5tee5 (who are ako director5 of The Cordwainers Educational and Training Charitable Trust Company for the purposes of company law) are responsible for preparing the trustees. annual report and the financial 5tatemer)ts in accordance with applioble law and regulatloTr5. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare financial statements in accordance with United Kingdom Generdlly Accepted Accounting Pracuce (Unired Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they we a tnje and fair view of the state of affairs of the company and the income and expenditure of the company for that period. In preparing these financial Statements, the trusreès are required to: Select suitable accountlng policie5 and then appty them consistendy, ObseNe the methods and principles in the Charities SORP.. Make judgements and accounting estima¢e5 that are reasonable and prudent- Stats whether applitable UK accounting standards have been followed. 5ubjett to any materi deparwres d15c105ed and explained in the financial statements- Prepare the finanaal statements on the going concern basis unless it is inappropriate to presume that the company will continue in operntion. The trustees are responsible for keeping proper a¢counting records that disclose with reasonable a¢¢ura¢y at any time the financial position of the company and enablÈ them to ensure that the financial statements comply wlth the Companies Act 2016. They are also rèsponsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and dection of fraud and other irregularities. The trustees are responsible lor the maintenance and integrity of the corporate and firmnclal inforniation included on the tharity's web51te. Legislation in the Unl￿d Kingdom governing the preparntion and dissemination of financial statements may differ from legislation in other jurisdittions. In accordance with company law. each person who is a trustee and company direttor at the date of approydl of this report confirms thaL So far as the trustee is aware. there is no relevant audit infomiation of which the company5 p6ditor is unaware: and The trustee has taken all steps that they ought to have taken as a trustee to mak any relevarbt audit inforniation and to establish that the company's auditor is a 5 aware of nforniation. Thi5 reporr 15 prepared in accordance with the Small companie5. regime (section 4 Companie5 Acr 2￿6). Signed by order of the trUs￿eS on 28 November 202+. J D Church Trusteelchair P J Gra Com y Secreory

CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY

Company Limited by Guarantee

Independent Auditor’s Report For the year ended 31 July 2024

OPINION

We have audited the financial statements of The Cordwainers Educational and Training Charitable Trust Company (‘the charitable company’) for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY

Company Limited by Guarantee

Independent Auditor’s Report For the year ended 31 July 2024

OPINIONS ON OTHER MATTERS PRESCRIBED BY COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report prepared for the purpose of company law).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal controls as the trustees determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial

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CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY

Company Limited by Guarantee

Independent Auditor’s Report For the year ended 31 July 2024

statements such as the Companies Act 2006 and the Charities Act 2011, and other factors such as income tax and value added tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of estimation uncertainty and to manual accounting journals. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

fdenaseorns

______ Andrew Broome (Senior Statutory Auditor) For and on behalf of HaysMac LLP 10 Queen Street Place LONDON EC4R 1AG

5 Dec 2024

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Statement of Financial Activities (including Income and Expenditure Account)

For the year ended 31 July 2024

Note
INCOME
Donations and legacies
2
Income from investments
3
Income from charitable activities
4
TOTAL INCOME
EXPENDITURE
Raising funds – investment manager’s fees
Charitable activities
5
TOTAL EXPENDITURE
NET INCOME BEFORE GAINS/(LOSSES) ON
INVESTMENTS
Gains/(losses) on investments
11
NET MOVEMENT IN FUNDS FOR THE YEAR
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2024
£
4,639
53,911
919,534
978,084
(4,088)
(815,226)
(819,314)
158,770
56,125
214,895
4,352,897
**4,567,792 **		 2023
£
4,651
25,116
876,125
**905,892 **
(2,823)
(779,216)
(782,039)
123,853
(14,175)
109,678
4,243,219
4,352,897

All the above amounts relate to continuing activities.

All the above amounts relate to unrestricted funds.

The notes on pages 12 to 18 form part of these accounts

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee Balance Sheet At 31 July 2024 2024 2023 Notes FIXED ASSETS Tanzible assets 10 2,695,837 1471,533 INVESTMENTS Investments 1,432,814 841916 CURRENT ASSETS Debtors Cash at bank 12 33.883 502.131 S36.014 37.116 1.129.2BI 1.166.397 CREDITORS: Amounts falling due within one year 13 196,873) {127,949) NET CURRENT ASSETS 439,141 1,038.448 TOTAL ASSETS 4.567,792 4.352,897 FUNDS Unrestritted income funds 4,567,792 4.351897 TOTAL FUNDS 4,567,792 4,3S2,897 These accounts have been prepared in accordance with the promsions of Part 15 of the Companies Act 2Cw)6 applicable to companies subject tts thè small companies, regime. These financial statemènts were approved by the trustees and authorised for issue on 28 November 2024 and edo ,their behalf by. J D Church Trusteelchair ABPeal Trustee The notes on pages 12 to 18 form part of th¢so accounts

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Statement of Cash Flows

For the year ended 31 July 2024

Notes
Cash provided by operating activities
15
Cash flows from investing activities
Purchase of fixed assets
Investment income
Purchase of investments
Movement on cash with investment managers
Disposal of investments
Cash from/(used) in investing activities
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2024
£
186,496
(333,784)
53,911
(627,724)
(11,605)
105,556
(813,646)
(627,150)
1,129,281
502,131		 2023
£
214,123
-
25,116
(440,358)
14,027
116,114
(285,101)
(70,978)
1,200,259
1,129,281

The notes on pages 12 to 18 form part of these accounts

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

1 ACCOUNTING POLICIES

The Cordwainers Educational and Training Charitable Trust Company is a registered charity (charity number: 1050213) and a company limited by guarantee in England and Wales (company number: 3100993). In the event of the charity being wound up the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are to provide affordable quality student accommodation, and to make available scholarships and bursaries to students.

The principal accounting policies adopted, judgements and sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

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

The financial statements are prepared under the historical cost convention except for investments which are revalued at the balance sheet date.

The financial statements are presented in sterling, which is the functional currency of the charity and rounded to the nearest pound.

The Cordwainers Educational and Training Charitable Trust Company meets the definition of a public benefit entity under FRS 102.

Going concern

The accounts are prepared on a going concern basis which assumes that the charitable company will continue to operate for the foreseeable future and a minimum period of 12 months from the approval of the accounts.

The charity reported a cash outflow of £627,150 for the year but with the current level of cash reserves, the charity is considered to be a going concern.

Income

Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Academic rental income is recognised on a receivable basis.

Donations and grants

Income from donations, grants and covenants, is included in income when these are receivable.

Donations in kind are included at the estimated value to the charity of the services received.

Interest receivable

Interest is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the bank.

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

Expenditure and irrecoverable VAT

Expenditure is accounted for on an accruals basis and is recognised once there is an obligation to make a payment to a third party and the amount of the obligation can be measured reliably. Expenditure is inclusive of any VAT which cannot be recovered. The costs associated with donations in kind are included at the same value as the related income.

Expenditure which is directly attributable to specific activities has been included in the cost of operation of the activities. Other office costs which are attributable to more than one activity are allocated to support.

A management charge is payable to UAL. This is included in the cost of operation of Cordwainers Court. Grants offered subject to conditions which have not yet been met at the year-end date are noted as a commitment but not accrued as expenditure.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The charity had no restricted income and expenditure or funds in the current and prior years.

Fixed assets

Assets with a useful life in excess of one year are capitalised on the balance sheet. All fixed assets are recorded initially at cost.

Depreciation

Property, fixtures and fittings are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the net book value of the asset and is recognised in net income/(expenditure) for the year.

Investments

Listed investments are valued using the bid price at the year-end date.

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the statement of financial activities.

Critical accounting judgements and key sources of estimation

In the application of the charity’s accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Useful economic lives of tangible assets

The annual depreciation charge is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 10 for the carrying amount of the property, fixtures and fittings, and Note 1 for the useful economic lives for each class of asset.

2 DONATIONS AND LEGACIES

2024 2023
£ £
Donations 4,639 4,651

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

3 INCOME FROM INVESTMENTS

Bank and other interest receivable
Dividends
4
INCOME FROM CHARITABLE ACTIVITIES
Rents receivable
Sundry income
5
EXPENDITURE ON CHARITABLE ACTIVITIES
Note
Grants
Cordwainers Court management and operational
expenses
Support costs
6
6
SUPPORT COSTS
Support costs:
Salaries, Employer’s NIC and pension costs
Office expenses
Depreciation
Governance costs (see below)
Governance costs:
Auditor’s remuneration
Accountancy fees
Professional fees		 2024
£
16,050
37,861		 2023
£
12,076
13,040
53,911 25,116
2024
£
916,253
3,281		 2023
£
873,033
3,092
919,534 876,125
2024
£
50,000
593,212
172,014
815,226
2024
£
54,334
995
109,480
7,205
172,014
6,432
773
-
7,205		 2023
£
50,000
490,340
238,876
779,216
2023
£
51,634
1,099
110,258
75,885
238,876
6,432
1,619
67,834
75,885

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THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

7 NET INCOME FOR THE YEAR

The net income before gains/(losses) on investments is stated after charging:

Depreciation
Auditor’s remuneration
Accountancy fees – software package and payroll		 2024
2023
£
£
109,480
110,258
6,432
6,432
773
1,619

8 STAFF COSTS AND NUMBERS

Total staff costs were as follows:

Wages and salaries
Social Security and pension costs		 2024
£
51,054
3,280
54,334		 2023
£
48,623
3,011
51,634

Particulars of employees:

The charity directly employed three part-time staff members and the average monthly number of employees (including part-time staff) during the year was 3. The average number of full-time equivalents was as follows:

Support Staff 2024
2023
No
No
1
1

No employee received remuneration of more than £60,000 during the year (2023: Nil).

A management charge of £261,381 (2023: £238,571) was payable to the UAL during the year. This charge covers administrative and building management services and includes the cost of three staff members, employed by the UAL who work at Cordwainers Court.

9 TRUSTEES’ REMUNERATION AND BENEFITS AND THE COST OF KEY PERSONNEL

The key management of the charity comprises the trustees and no remuneration was received by the trustees in either year. No trustees’ expenses were paid in either year.

16

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

10 TANGIBLE FIXED ASSETS

COST
At 1 August 2023
Additions
At 31 July 2024
DEPRECIATION
At 1 August 2023
Charge for the year
At 31 July 2024
NET BOOK VALUE
At 31 July 2024
At 31 July 2023		 Freehold
Property
£
2,807,359
333,784
3,141,143
502,345
38,060
540,405
2,600,738
2,305,014		 Fixtures &
Fittings
£
775,029
-
775,029
608,510
71,420
679,930
95,099
166,519		 Total
£
3,582,388
333,784
**3,916,172 **
1,110,855
109,480
1,220,335
2,695,837
2,471,533

Cushman and Wakefield carried out an open market valuation of the properties in July 2015 when the freehold building was valued at £6,600,000. There is no policy of ongoing property revaluation, so the 2015 valuation was not reflected in the financial statements. Land is not depreciated because it is assumed to have an unlimited useful economic life.

11 INVESTMENTS

11
INVESTMENTS
Market value brought forward
Purchases at cost
Disposal proceeds
Gains/(losses) on investments
Cash held for investment
Total investments
Historical cost of investments (excluding cash)
12
DEBTORS
Trade debtors
Prepayments
Gift Aid debtor		 2024
£
836,379
627,724
(105,556)
56,125
1,414,672
18,142
1,432,814
965,146
2024
£
4,229
29,589
65
33,883		 2023
£
526,310
440,358
(116,114)
(14,175)
836,379
6,537
842,916
482,511
2023
£
9,194
27,857
65
37,116

17

THE CORDWAINERS EDUCATIONAL AND TRAINING CHARITABLE TRUST COMPANY Company Limited by Guarantee

Notes to the Financial Statements

For the year ended 31 July 2024

13 CREDITORS: amounts falling due within one year

Trade creditors
Other creditors
Accruals
Deferred income
Deferred income
Balance brought forward
Released during the year
Advanced rent received
Balance carried forward		 2024
£
12,692
1,752
34,888
47,541
96,873
2024
£
55,298
(55,298)
47,541
47,541		 2023
£
23,369
1,788
47,494
55,298
127,949
2023
£
44,743
(44,743)
55,298
55,298

14 COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and therefore does not have any share capital. Any surplus made cannot be distributed to members and the members have not claimed upon the company assets. There is no ultimate controlling party of the charity. Each member’s liability is limited to £10.

15 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net movement in funds
Add/(Less) investment gain/losses
Add depreciation charge
(Less) interest shown in investing activities
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 2024
£
214,895
(56,125)
109,480
(53,911)
3,233
(31,076)
186,496		 2023
£
109,678
14,175
110,258
(25,116)
3,207
1,921
214,123

16 RELATED PARTY TRANSACTIONS

The Worshipful Company of Cordwainers is considered to be a related party of the charity as the Company has a longstanding, historic connection with the charity and the Company has representation on the Board of Trustees.

There were no related party transactions during the year (2023: Nil).

There were no amounts due to or from the Worshipful Company of Cordwainers at the year-end (2023: £Nil).

18