Central Language School Cambridge
Registered charity no: 1056074
TRUSTEES' REPORT
and
ACCOUNTS
for the year ended
31 August 2021
CONTENTS
| CONTENTS | |
|---|---|
| Page | |
| Legal and administrative details | 2 |
| Trustees' report | 3 - 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7 - 9 |
| Independent examiner's report | 10 |
CENTRAL LANGUAGE SCHOOL CAMBRIDGE LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2021
CHARITABLE STATUS
Registered charity no: 1056074
MISSION STATEMENT
The Central Language School is a small, friendly, city-centre School founded in 1996 by a group of Christians in Cambridge.
Our aim is to give students a warm welcome and an excellent opportunity to learn English in a caring, community atmosphere. Our general English courses, from Elementary to Advanced level, are run throughout the year for adults.
TRUSTEES
Mr Andrew Watts (Chairman) Mr David Farrer (Treasurer) Mr Michael Priestley Mrs Elizabeth Watts Mr Malcolm Wylie Mrs Christine Bromwich Mr Graham Seed Mr Bartow Wylie
SCHOOL MANAGEMENT
Mrs Sian Serrano (Business Manager) Mr James Dennis (Director of Studies)
REGISTERED OFFICE
Stoneyard Centre, 41B St Andrews Street, Cambridge CB2 3AR
BANKERS
Lloyds TSB, Cambridge
INDEPENDENT EXAMINER
Geoff Mann FCIE, Geoff Mann Ltd, Cambridge
2
CENTRAL LANGUAGE SCHOOL CAMBRIDGE TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021
The Trustees present their Report for the year ended 31 August 2021, which incorporates the Legal and Administrative Details on Page 2.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trust was established by Trust Deed and registered as a Charity with the Charity Commission in 1996. Under this Trust Deed the power to appoint Trustees is vested in the Trustees for the time being.
The Charity has a Board of Trustees who meet quarterly and are responsible for its strategic direction and policy. A Principal is appointed by the Trustees to manage the day to day operations of the charity.
OBJECTS, ORGANISATIONS AND ACTIVITIES
The Mission Statement of the Charity is stated on Page 2.
During 2020/21 the Charity continued to provide English Language teaching services at The Stoneyard Centre, 41B St Andrew's Street, Cambridge. This was both online tuition due to the Covid pandemic and also a resumption of face to face tuition from October 2020 onwards. The Tustees record with thanks the encouragement and assistance received from our landlords, St Andrew's Street Baptist Church.
During the past year we have had 55 full time students studying for a total of 310 student weeks on various courses. Students independently passed FCE, CAE, KET, PET and IELTS exams. There have also been 32 part time students. The Trustees record their thanks to the staff for their dedication to the work of the school and pastoral care of the students.
The language school continues to be fully accredited by the British Council and registered by the UK Border Agency. We also have membership of the English UK which is a national association of accredited English language schools and centres. The Trustees record their thanks to Mrs Sian Serrano (Business Manager), Mr James Dennis (Director of Studies) and all the staff for maintaining high standards of teaching, management and welfare at the school especially with the additional challenges posed by the Covid pandemic.
Many of our students have been accommodated with host families and the Trustees are grateful to all host families for their support of the school.
FINANCES
The attached accounts on pages 5 to 9 reflect the Trust’s activities for the year and show the state of the finances at 31 August 2021. The Trustees are grateful to Mr Geoff Mann for his independent examination of the accounts.
3
CENTRAL LANGUAGE SCHOOL CAMBRIDGE TRUSTEES' REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021
RESERVES POLICY
The Trustees have conducted a risk assessment and considered the level of unrestricted funds not committed or invested in tangible fixed assets ("the free reserves") that should be maintained by the charity to meet its liabilities and to sustain the organisation in the event of any unforeseen shortfalls in income. The Trustees have assessed the reliability of the charity's main sources of income and taken into account seasonal and market trends.The Trustees have examined the requirement for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The Trustees consider that, given the nature of the organisation’s work, the level of free reserves should be approximately four month’s expenditure on unrestricted funds. This would equate to £39,000 based on current year expenditure. The Trustees are of the opinion that this provides:
- sufficient flexibility to cover temporary shortfalls in incoming resources due to timing differences in income flows
• adequate working capital to cover core costs
• an allowance to enable the organisation to cope and respond to unforeseen emergencies whilst specific actions are implemented.
Current free reserves amount to £46,718 and we will be working towards maintaining this level during the current financial year.
RISK REVIEW
The Trustees have conducted their own review of the major risks to which the charity is exposed and have agreed a risk management strategy which comprises :
(i) an annual review of the risks which the charity may face;
(ii) the establishment of systems and procedures to mitigate those risks identified in the plan; and (iii) the implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise.
On behalf of the Trustees David Farrer
21 June 2022
4
CENTRAL LANGUAGE SCHOOL CAMBRIDGE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021
| Note INCOMING RESOURCES Fees & Accommodation 2 Student Excursions Exam Fees Refreshments Book Sales HMRC Furlough Miscellaneous Donations Bank Interest Total Incoming Resources RESOURCES EXPENDED Costs of Generating Funds Publicity 3 Charitable Expenditure Operating Costs 6 Governance Costs 4 Total Resources Expended NET MOVEMENT IN FUNDS FUND BALANCES Brought forward 1 September 2020 Carried forward 31 August 2021 |
TOTAL Unrestricted Funds 2021 59,813 150 0 10 72 17,383 28 2,445 539 80,440 372 117,115 800 118,287 (37,847) 84,565 46,718 |
TOTAL Unrestricted Funds 2020 £ 149,776 1,933 2,446 572 152 |
|---|---|---|
| 35,650 0 |
||
| 1,510 669 |
||
| 192,708 | ||
| 488 214,989 890 |
||
| 216,367 | ||
| (23,659) | ||
| 108,224 | ||
| 84,565 |
5
CENTRAL LANGUAGE SCHOOL CAMBRIDGE BALANCE SHEET AS AT 31 AUGUST 2021
| Note CURRENT ASSETS Debtors 7 Bank Balances Cash in Hand CURRENT LIABILITIES Creditors 8 TOTAL NET ASSETS FINANCED BY: ACCUMULATED SURPLUS Unrestricted Funds Approved by the Trustees on 21 June 2022 David Farrer Treasurer |
2021 £ 0 59,703 33 59,736 13,018 46,718 46,718 46,718 |
2020 £ 680 91,395 53 |
|---|---|---|
| 92,128 7,563 |
||
| 84,565 | ||
| 84,565 | ||
| 84,565 | ||
6
CENTRAL LANGUAGE SCHOOL CAMBRIDGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021
1 ACCOUNTING POLICIES
(a) BASIS OF PREPARATION OF ACCOUNTS
The accounts have been prepared under the historical cost convention and include the the results of the charity's operations, which are described in the Report of the Trustees and all of which are continuing. They have been prepared in accordance with the Charities Act 2011 and 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 the Republic of Ireland (FRS 102) revised with effect from 1 January 2019.
Central Language School meets the definition of a public benefit entity under FRS 102.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
(b) INCOMING RESOURCES
Incoming resources are recognised in the year in which the charity is entitled to the receipt, and the amount can be measured with reasonable certainty. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
(c) RESOURCES EXPENDED
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
(d) PENSIONS
The charity contributes to money purchase, defined contribution schemes, on behalf of its employees. No liability exists in respect of pensions other than monthly contributions due which is included within creditors.
(e) DEBTORS
Trade debtors and other debtors are recognised at their settlement amount due after any discounts. Prepayments are valued at the amount prepaid net of any trade discount due.
7
CENTRAL LANGUAGE SCHOOL CAMBRIDGE NOTES TO THE ACCOUNTS continued FOR THE YEAR ENDED 31 AUGUST 2021
1 ACCOUNTING POLICIES (continued)
(f) CREDITORS AND PROVISIONS
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
| 2 FEES & ACCOMMODATION 2021 £ Fees & Accommodation 60,498 Less Agents Fees 685 59,813 3 COSTS OF GENERATING FUNDS 2021 £ Publicity, Printing and Literature 372 372 4 GOVERNANCE COSTS OF THE CHARITY 2021 £ Independent Examination Fee 470 Other Administration and Professional Fees 330 800 5 STAFF COSTS 2021 £ The staff costs were: Wages and salaries 86,753 Social Security costs 2,802 Other Pension costs 2,197 91,752 The average number of staff employed by the charity during the year was: Business Manager 1 Director of Studies 1 Part time administrators 1 Full time teachers 1 Part time teachers 4 8 |
2021 £ 60,498 685 59,813 2021 £ 372 372 2021 £ 470 330 800 2021 £ |
2020 £ 153,615 3,838 |
|---|---|---|
| 149,776 | ||
| 2020 £ |
||
| 488 | ||
| 488 | ||
| 2020 £ 460 430 |
||
| 890 | ||
| 2020 £ |
||
| 86,753 2,802 |
140,343 5,919 |
|
| 2,197 91,752 |
3,475 | |
| 149,737 | ||
| 1 1 1 1 5 |
||
| 9 |
8
CENTRAL LANGUAGE SCHOOL CAMBRIDGE NOTES TO THE ACCOUNTS continued FOR THE YEAR ENDED 31 AUGUST 2021
| 6 OPERATING COSTS Staff Costs Accommodation General Office Teaching Aids & Materials IT Equipment/Website Rent Stationery Telecoms Insurance Travel Student Excursions Refreshments English UK Training Bank & Credit Charges Exam Fees Social Activities 7 DEBTORS Students 8 CREDITORS Fees & Accommodation received in advance Accruals |
2021 £ |
2020 £ 149,737 29,545 3,351 1,068 1,028 14,833 674 731 1,256 253 1,905 696 1,803 2,455 2,489 2,456 709 |
|---|---|---|
| 91,752 5,943 1,408 100 3,370 6,800 892 1,016 1,098 0 150 82 2,130 0 1,015 0 1,359 117,115 |
||
| 214,989 | ||
| 2020 £ 680 |
||
| 2021 £ 0 0 2021 £ 10,819 2,199 13,018 |
||
| 680 | ||
| 2020 £ 4,603 2,960 |
||
| 7,563 |
9 PAYMENTS TO TRUSTEES
An amount of £825 (2020 £1,254) was paid to David Farrer, a trustee of the charity, for the provision of accountancy services. No other payments were made to trustees nor were any expenses reimbursed to them.
10 RELATED PARTY TRANSACTIONS
There were no related party transactions in the year that required disclosure.
9
CENTRAL LANGUAGE SCHOOL CAMBRIDGE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CENTRAL LANGUAGE SCHOOL CAMBRIDGE
I report to the trustees on my examination of the accounts of the charity for the year ended 31 August 2021 set out on pages 2 to 9.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER
As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Acts 2011 ("the Act").
I report in respect of my examination of your charity's accounts carried out under section 145 of the Act, and in carrying out my examination I have followed the applicable directions given by the Charity Commission under section 145(5)(b) of the Act.
INDEPENDENT EXAMINER'S STATEMENT
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
the accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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
I have no concerns and have come across no other matters in connection with the examination to which attention should be brought in this report in order to enable a proper understanding of the accounts to be reached.
Geoff Mann FCIE Geoff Mann Ltd Dee House Highworth Avenue Cambridge
21 June 2022
10