Charlty number.. 1056607 BROWNBERRIE EDUCATION TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 BROWNBERRIE EDUCATION TRUST CONTENTS Page RoferonGe and 4dminl8tr8llv8 delails of the Charftyi Its Trusteos and advlsers Trustses. roport Indèpèndent audStols rgport on the financlal statoments Consolldated ststemenl of flnancial actlvitios Consolldated balance sheet 10 Char4ty balance Sheet Con801idated 8tat6mgnt of cash flows 11 12 NotwJ lo the flnanGlal ¥tat•m•nt8 13-28 BROWNBERRIE EDUCATION TRUST REFERENCE AND ADMINISTRATIVE DETAIL8 OF THE CHARITY, IT8 TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Tru$tsos Mr A J Ledgeway Mr R G Walker Mr R Smaldon Th& Trust holds lille lo Ireehold land and buildings al York Campus, Bishoplhorpe Road, Bishoplhorpe, York, Y023 2QA, and leases a Satellite Campu& Springwo11, 60 Pear8th H811 Road, Tyn8 & Wear, NE9 7NT. Charlty reglstsred number 1056607 PrSnclpal offlco 7 Bedford Road Nunlhorp8 Middlesbrough TS7 OBY Indopendont audltor Crowé U.K. LLP Fourth Fioor st Jam88 Housè Sl Jame8 Squarè Chertenham GLSO 3PR 8ankèr8 rgln Money 181 Floor 40 Sl Vincent Place Glaygow G12HL Pago 1 BROWNBERRIE EDUCATION TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees of 8rownb8rrie Education Trust present their annual report and aLJdiled accounts for Ihè ye8r ended 31 sl December 2021 and Confirm they comply with the requireman18 01 the ChBrilies Act 2011, the Trust deed. FRS102 and the Chari118s SORP {FRS 1021. Ob-ectiV8s and Actlvltl•$ The ch8ritable objects of the Trust are the advancement of thg educallon of chlldren and young pe¢)ple through the provision of education siles and premises. Thè objects also Include any other charitable purp088 for the bonefil of th8 wor￿WIde Chrlstlan fell¢)wship known as the Plymouth Brethren Chrlslian Church In furthèrance of ils object8, the Trust prov1des premlses under formol lease for an independent school based In York & and Satellite Gafflpu8 based in Springwell, Ngwea8tle, which has been run by Oneschool Global UK IOSGUKI. Thè Trust also provides grant funding and othèr flnancLql 8UPPOrt lo OSGUK at the dlscretion of the Trustee8 in order lo enable OSGUK lo provide a well-balancod oducali¢)n al prknary and $e¢ondary16v61$, for childr8n and young people whosè parents appreciate the Chrisllan ethos. Succ86818 measurgd In torm$ of thé provlslon of appropriate facllltlg5 to OSGUK whllsl rnlnlm18ing 8xpendthr6. This In tum, free8 up fund8 for ralsing standards of educallon for all concern6d and for the Improvement of facilllles lor pupll8 and 8tsff alik•. The Tru8lee8 have referrgd lo Ihg guidance conlalned Sn the Charmy Comml88lon'8 general guidance on public benelll and have regard to il when reviewlng their aim8 and obleclive$, ttnd In plannln9 Ihelr fijlure activitles. In particular they considèr how planned acllvlli8s will conlribLrt& lo th8 educational aims and (Jbledives thèy have set. Volunteers are an integral part of the communlly ethos and valu88 of Ihg Tru8t and Ihere are Strong and willlng group of volunlegrs who 8881st and Support the Trust throughout th8 y88r. tru an Brownberrie EduGalion Tru$l is ¢on8lltuted by a De8d of Trust dgled 31 May 1996, amgnded 8 Odober 1997 and IB registered with tha Charlty Commi881on for England and Wala8. The Truslaes who 8erved durlng the year and since the y8ar end are set out on paga 1. None of the Tru8tee8, nor any person connected with them, recelvod any remuneration Irom the Tru81 in tho year gnded 31st Dècember 2021 (year ended 31 $1 Oecambèr 2020 £nlll. The power lo appoint Trust¢¢81$ Inv681ed In the 8xisling Tru81ee8 subject Ic tho Tfu$I D¢ed requiremgnt. Tru8tee8 ar8 Solecled according lo their own 8peciali8m in a particular field and are expected lo pursu8 that speciallsm. New Trustees are instructed in thè need lo completely adhere lo the elho8 and values of the Trust. The Trustegs have examined the major strategic, business and operallonal risks that the Trust faces. The Truslaes ar8 satisfied that the major risks identified have been adequately milgaled where necessary. It18 recognis8d that Sy8tem8 can onty provlde re880nablg bul not absolute assurance that major risk8 have been adequatgly managed. Throughout the year the Trust has continued to proiride educational prerni8&s in support of the educational activities of OSGUK. On the 3181 July 2021 the Trust was gifted by The Northumbria Education Trust the whole of the issued sharg capital of A¢ad Trading Ltd (Company Number 083163051 and now holds the share8 of ACAD Trading Ltd as a wholly Own￿ sub$idrary Company, whi¢h undertakes trading activities. All profits ¢hargeablg to cgrporallon tax Page 2 BROWNBERRIE EDUCATION TRUST TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 are glfted lo the Trust in 8UPPOrt of the charttablo aclivilie8 of the Tru81. Financlal Revlew In th¢ y88r anded 3181 Decèmbèr 2021 the Group r&portBé 8 nel 8urplu8 of £419,93112020 SUTpIu8 of £86,429). All funds are ur¢reslrithd. The Trust Is supported and flnanced prlnclpally by profits from ils trading subsidiary ACAD Trading Ltd plus other od ho¢ donations and Ihosg raised by fundraising events and grant8 from th8 Grac6 Trugl. In 2021 the Trust r8ceiv8d £50,000 in donations from ACAD Trading Ltd for which the Truslegs are very grateful. The Trust also r8ceived £45,156 from Northumbria Eduogtion Trust and £272.000 in gran18 from thè Gracè Trust for which the Trusloès ar8 Ilk8wlsè véry gratèful. The Trustee8 beli8v& that the Trust'8 funds are sufficlenl to miligale any short to medium tem risks of rgduced fundlng. The Tru$l'$ fundral$ln9 evenl$ prlnclpally op6rate withln thè Br6lhr8n ￿MmUnIty and prgfesslonal fundralser8 are not U59d. Neither the Trust nor any person acting on behalf of the Trust was subject lo Bn undertaking lo be bound by any voluntary sch8me for regulallng fiJnd-rai$ing, or voluntary 8laniJard for fund-raising in respect of aclivlll88 on bahalf olthe tru81. Th8 Trusle88' pollcy Is lo mainlaln mlnlmum free re8erveg al a lev81 whSch equates lo slx monlh8' unr8¥lrfcled expenditure. Thi8 Is approxlmalely £119.000. A$ at 3181 Decembèr 2021 the free r88erves of the Tru81 were £506,175 {3101 De¢ember 2020 £31,077), Aft&r maklng appropr5ale enqulrfes, the Tru8lee8 hav& a reasonable expeclallon that the charity ha$ adequate resources lo continue In operatlonal 8xlslance for the for88oeable fijlure. For IhI8 reason,11 contlnues to adopt the going concern basls In pTeparfng the financial slalement8. Furthér details ragarding the gdoplion of the golng conoem basis can be found In the Accounllng Poli¢ioS. The Trus1&88 plan to continue to 8upport OSGUK lo provide a quallly and dellver a con818tenl and high level of 8ducallonal èxp8ri&ncè and ouleome for all students and 8laff, in a¢Gordance with Ihg Trust's ethos and valu8S. As part of our continual improvement, the Trust has bèén eonsidering the location and standards of the current property, and Is lookln9 to Invest In either the oxisling property or lo consider a relocallon, whleh could incur significant cash flow, although the existing property 18 a valuable a8$01 which Gould fund o potential relocation, thu8 millgaling risk for the Tru81. Page 3 BROWNBERRIE EDUCATION TRUST TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Statèmént ol Trustees, Res sibiliti08 The tru81ees ar8 responslble for preparing the Annual Report and the flnarlcial statements in 8ccordance with applicable law and Unf(ed Kingdom Accounting Standards Iunited Kingdom GènerallyAccepl8d Accounllng Practi¢el. The law applic8bla to charille3 In England and Walès requires the trustees to pr8par6 flnanclal slalemenls for each flnancial year which give a truè And fair view of the slate of affairs of the charity and the group and ol th8 incomlng resourc&8 and application of resourc88 of the chariloble group ftsr that p8rlod. In preparing th&s8 fln8nclal sl818menl¥, the Iru8lee8 arg rgqulred to.. Select sultable accounting poli¢ie8 and then apply Ih8m conslslanlly, observe Ihg rnethods and principles In the Chariti88 SORP., make judgements and esllm8le8 that are reasonable and prudent., slate whelher applicyblg accounting standards have been followed, subject to any malerlal departures dlsdos8d and 8xplained in the flnaneial 8tatemenls', p￿pare the financial 81alem8nts on the golng concorn ba8is unle88 It is inappropdale lo pr88ume that the charity and group wlll Gonlinue In bu6ine$$. Tht Iruslaès are responsible for kegping proper accounting rècords that dlsclo8e wlth r8asonablg accuracy al any lime thb h'n8nci81 p0811lon ol thè charlty and the group and enablo them lo ensur8 that the financial stalgment5 comply w11h the Charities A¢t 2011, th8 Chartty (Accoun18 and Reports} Regulations 2008 and th8 provi8ion8 ol tho Tru¥l d&8d. They are a180 responslble for safeguardlng the a8sel$ of tha charlly and the group and hanee for taking reasonable ¥lep8 for the prevention #nd detecllon of fraud and other Srrogularllles. Appr¢)ved by ord¢r ol the members of the board of Trustees and slgned on thoir b•haW by.. Mr R Smald¢Jn Trustea Dat?.. Ji I￿•3(r JOAL Pagè 4 BROWNBERRIE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNBERRIE EDUCATION TRUST Oplnion W8 have audited the financlal 8lalemen18 of Brownberrie Education Trust {Ihe 'parenl chadtll and its 8ub8idiaries (thè 'group'l for the y&ar ended 31 D&c8mb8r 2021 whlch compri$6 the Consolidated statement of flnancial acliviti8s, thè Consolidated balance 8heel, the Charity balance sheet, th& Consolidated 8lalèmenl of cash flows and the related notes, induding a summary of significant accounting pollcies. The financi81 reportlng fr8mework that hs8 been applied in their preparation is applicable law and Unlled Kingdom Accounting Standards, including Flnancial R8POrtlng Slandald 102'Th6 Fin?ncial Reporting Standard applicable In th8 UK and Republic of Ireland, {Uniled Kingdom Ge￿rallY AcGeplgd Accounting Practice). The financial 8t8lemonls have beèn prepared in acGordanc8 wllh Aecounllng and R8porting by Chariti88 preparlng Ihelr accounts In accordanc8 wllh tha Financial Reporting Standards applicablg in the UK and Rèpubllc of Ireland {FRS 1021 in preference lo the Accountin9 and Reportlng by Charities.. Sialemant of Rè¢ommended Praclk8188ued on 1 Aprll 2005 whlch18 rèfarred lo in the oxtanl règulations bLrt h88 been wllhdrawn. Thls h8s bè8n domè in ord8r for the accoun18 to prDvlde a true and falr vlow In accordanc8 with the G8n8rally Accepted Accountin9 Practice effeclNe for reportlng perfods beginning Dn or aftèr 1 January 2015. In our oplnion tha financlal stHtomenls'. giv8 8 INe and f&lr view ofth8 81919 of the Group's and of the parent charftys #ffairs as al 31 December 2021 and of th& Group's Incomlng r&sourc8s and application of rè$ourco5, Including 118 Income and oxpendilure for Ihg year then ende(I', have begn property prepargj In 8ccordanco wllh United Klngdom G6nerally Accepted Accounllng Practice., and have bggn prepared In accordanco w￿h the requirements of th6 Charities Act 2011. 84sls for oplnlon Wg conducted our audit in 8ccordance with Intemallonal Standards on Audltlng IUKI IISA8 {UKII and oppllcable law. Our responslbilillés undar thos8 standards furth&r described in the Auditor's responsibilities for the aud of the financial stslemenls section of our report. We are Indèpgndenl oflh& Group in accordance with the 8lhical requirgmenls that are r81evanl lo our audll of finanGial slalements in the Unlled Klngdom. Including the Financial Reporting Council's Ethical Standa￿, and we hav& fulfilled tsur other ethical respon8ibililies in accordance with these requiremonls. We believe that the audit evid8nce w8 hav8 obtained18 8ufficianl and appropriate lo provlde 8 b8sis for our opinion. Con¢luslon$ r91atlng to golng conoorn In audlling tha financial slal6mènl8, we havè concluded that the Tru81ee8' Use of th6 golng con¢em ba818 of accounting in tha preparation of the financ￿1 statements 18 appropriate. Based on the work we have perfomied, we have ntsl identified any material uneertainlie8 relating to ev8nts or ondilions that, individually or collectively, may cast slgnlflcant doubl on Ihe Group's or the parent charity's abilty lo continue a8 a going concem for a period of al lea81 twefv9 months from when the ff nanclal stalémenls are authorised for i55ue. Our responsibilities and the responsibilllles of the Trustees with respocl lo going concern are described in the relevgnt se¢tions of this ￿port. Page 5 BROWNBERRIE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNBERRIE EDUCATION TRUST (CONTINUED) other Informatlon The other information G￿l#r1508 the informallon Included in the Annual report other than th8 financial 8talament8 and our Auditorfs report Ihereon. The Trustees are rèsponsible for the other Infomialion contained within the Annual report. Our opinion on the financial 81alemanls does not cover tho other inforrnation and, except lo the extent otherwise explicitly slated in our report, we do not express any fom1 Ot a8suranc8 conclusion Ihereon. OUT r&spon5ibilrty is lo read the other informalign and, In doing so, consider whglher th8 olh8r information Is mal8ri81ty incon818lenl with th& financl81 slalemenls or our knowledge obl8ln8d In the course of th6 audit, or olherwi8e appears lo bg materially misslaled. If w8 idenllfy such mal&rial inconsislen¢ie8 or apparent m81erial misslalemenis, we are required to d8lermlne whalher this gives rise lo a material misstalemenl in tha linancial 81al8m8nls Ihams81ves. If, bas8d on the work wa have perfomied, we conclude that thare 16 a mglerlal mis8lalement of this olhgr information, we are required lo ￿pOrt that fact. We have nglhing tg report In Ihls règard, Mattors on whl¢h w8 ar• wulred to roport by oxcoptlon We have nothing lo report In re8P8cI of the foll¢)wing maller8 where th8 Charhles IA¢¢oun18 and Rgportsl Regulallon8 2008 requlre5 us lo rèport to you if, In our oplnion.. the Information glven in tha Trusle8s' report IB Incon818tent In any m819ri81 respect wllh the fflnancial 8tat&menls', or the parent Charlly has not kept sufficlent a¢¢ounling record8,' or tha par&nt Ch8rily finandal stalemonls arg not in agreement wrth the accounllng rocords and relurno., or wa have not received all the informallon and 8xplan*ion8 we laquire for OUT audit. Re8pon81bllltle8 of tru¥t¢os AS explalned mor& fully In the TN$t888' re8ponslblllll88 Statement, th? Tru81ee3 gre rosponslble for th6 proparallon of the flnancial slat8menl8 which give a Irug and lalr view, and ft>r such internal Gonlrol 88 the Trustées da18rmine is nece88ary lo enabl8 the preparation of financial $18tem8nls that are fr90 from materfal mlssl8lemenl, whether due lo fraud Dr error. In pTepgring tho fin8nclal 81atemenls, the Tru81ees are Trsponslble for as6e881ng the Group'B and the parent charills ability lo continue a8 a going concem. disclosing, as Bpplicable, mallers r8lal@d lo going ¢onc8rn and using the goinG concem basls of aco)unting unle88 the Tru81ee8 erther intènd to liquldale the Group or the parant charlty or lo cease operation$, or have no reallstic amemalive bul lo do so. Page 6 BROWNBERRiE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNBERRIE EDUCATION TRUST {CONTINUEDI Audltorfs responslbllltl8s for tho audlt of th8 flnaneial statoment8 We have been appolnted a8 audAor und6r s8cIK)n 151 of the Charities AGI 2011 and report in accordance ￿th the A¢1 and rolevanl regulations madg or having effect thereunder. Our obj8ctiV88 are to obl8in reasonable assurance about whelh8r the financial $latemenl8 a$ a whol& are free from materlal mlsslalèmènl, whethèr due lo fraud or error, and 10 155ue an Auditor's r8POrt that include8 our opinion. Reasonable assurance is a high18vel of as8uranc&, bul Is not a guarantee that an audit conducted in accordance with ISA8 IUKI will a￿ayS det8Ct a malarial mi88lalemenl when ￿ exI818. Ml88lalém6nls oan 8ri8& from fraud or error and are con8idered malerlal If, individually or in th6 augregale, they could reasonably be axpact8d lo Influgn¢e tha eoonomi¢ decisions of users taken on the basis of th88e financial 81alemenls. Irrggularflles, including fraud, are in8lanco8 of noTrGomplianc8 with law8 And r8gulallon8. WO design proc8durg8 in line whh our responsiblllll8s, outlined abov8, tr) detect material mi881atemenl8 In re8peGt of irregularfll88, Including fraud. Thg 9Xt8nl lo whiGh our procedures are capable of do18Cting irregularilie8, Including fraud IB detailed below.. Wa oblalned an und6rslandlng of Ih618gal and regulatory framework8 wllhin whlch the Gharity operates. focusing on those laws and regulations that have a direct 8ffecl on the delérminalion ol material aMr)unts an¢J dI￿lOSure8 in the financial stslemenl8. Th& laws and regulations wg Gonsldered in this context were the Chariti85 Act 2011 and the Ch8rilies SORP IFRS 1021. We assessed the required compllancè wllh these kw$ and regulations as part of our Audit procgdur98 on Ihg related flnanclal 81al8menl Ilem8. Audlllng 8tandard8 Ilmil the rèqulrad audit procedures to Klgnlify nonwcompllantte with thesè laws and re9ulalion$ to enqulry of the Trustees and othér management and In8pecllon of regulatory and logal correspondence, If #ny. W9 idgnlified the greate81 risk of mat6rfal impact on the financial 5tal8m8nls from Irregulari11&8, Including fraud, to be within the overrfd& of controls by managemanl. Our audf( procedur88 to respond to these risks included enquiri68 of management, and Ihg Trusteos about their own identlflcatlon and a$sessmgnl of the ri8k8 of Irr8gul8riti88, sarnple 18sling on the posting of journals, ravlewing accounting eslimal8s for bia8e8 and rèviewlng regulatory correspondenGe, Owing lo the inherent limilats'on8 of an audit. there Is an unavoidablo risk that we may not have detected some material misslalemenls in thè financial $1g1gment¥, even though we have properfy plannèd and performed our audit in accordanc8 with auditing standards. For 8xampl&, th8 further removed non 3.737,212 Page 25 BROWNBERRIE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. SummAry of funds {continuèdl Summary of funds - prlor ye•r 881ance al 31 D8¢&mb&r 2020 Balance al l Jgiiuary 2020 T￿nSfer8 Inlout Income Expgrtdilu Deslgnated fund8 General funds Restricted funds 3,055,867 151,045 23,940 (73,055) (58. 776) 242,048 (18, 108) (223,949) 5,224,860 92,421 78,260 200,000 3.230,852 218,260 1131,831J 3,3t7,281 20. Analysls of ngt a¥Sgts botwoon funds Analys1$ of ngt a888ts botwo8n fund8 . current year Unro8trlctad fLind$ 2021 Total funds 2021 Tangible fixed as601$ Currgnt as8818 Creditors due wlthin one year 3,281,572 530,907 (75,267) 3,281.672 630,907 {76,2671 Total 3,737,212 3,737,212 Anafysls of net a3¥ets betwgen lunds- prlor year Unfftstricled funds 2020 Total furKIs 2020 Tangible fixed assets Current a8sets Creditors due wllhln one year 3,286,204 32,27T (1,200) 3,286,204 32,277 (1,200) Total 3,317,281 3,317,281 Pag8 28 BROWNBERRIE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 21. Reconclllatlon of net movèmènt in fund¥ to not cash Ilow from operatlng activities Group 2021 Gnwp 2020 N81 income for the year la8 par Slalemenl of Finan¢ial Activities) 419,931 86,429 Adjustments for: Depreciation charg88 Ilncreas6lldecre88e In $tock$ Increase In d8btors Increaselldecreasel In credllor8 114,702 198.8991 34,1621 74,087 96,801 18,391 (3,950) (196,6(XlJ Net G4¥h piovldod by op8ratlng actlvltles 476,649 1,071 22. Analy818 ofca8h and •qulvèl•nt# Group 2021 Gmiip 2020 Cash 81 bank and in hand 392,868 27,277 Total cash and cash equlvalents 392,856 27,277 23. AnAlyBl$ of Ghanga8 In n•t dgbt At31 l)Kember 2021 January 2021 Cash flows Cash at bank and in hand 27.277 365,579 392,8S6 Page 27 BROWNBERRIE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 24. Operating lea&0 comm5tmgnts Al 31 December 2021 the Group and th8 Charity had commilmenl$ to makè futuré minimum lèase paym8nl8 under non-cancellable op6raling leases as follows., Group 2021 Group 2020 Charfty 2021 Ch8rity 2020 Not later than 1 year Later than 1 year and not lal8r than 5 years 12,800 7,350 12,600 19,950 12,600 7,360 12.600 19,950 19,960 32,550 19,950 32,550 26. Relatad party tran$actlonJ Other than Iran8acllcn8 with the ¥ubsldlary Company, the Charlly ha8 not entered Into any relalod party transaction durlng the year. nor arg there any outstanding balanGeB ¢)wlng befv4een rèlated parties and the Chadty at 31 Dgc8mb8r 2021. Pag8 28