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2021-12-31-accounts

Charity number: 1057707

EALING EDUCATIONAL RESOURCES TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

EALING EDUCATIONAL RESOURCES TRUST

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 4
Independent auditor's report on the financial statements 5 - 8
Consolidated statement of financial activities 9
Consolidated balance sheet 10
Charity balance sheet 11
Consolidated statement of cash flows 12
Notes to the financial statements 13 - 29

EALING EDUCATIONAL RESOURCES TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Mr A Greenfield (appointed 14 January 2021)
Mr H Tennant (appointed 14 January 2021)
Mr B F Abernethie (appointed 14 January 2021)
Mr C D Parsons
Mr S Hill
Mr C A White
Mr S P Barnes (resigned 14 January 2021)
Mr H B Robertson (resigned 14 January 2021)
Charity registered
number
1057707
Principal office
Amberley
Wantage Road
Harwell
Oxfordshire
OX11 0LL
Chief executive officer
Mr C A White
Independent auditor
Crowe U.K. LLP
Fourth Floor
St James House
St James Square
Cheltenham
GL50 3PR
Bankers
Bank of Scotland
Edinburgh
EH2 2YR
Barclays Bank Plc
Acorn House
36-38 Park Royal Road
London
NW10 7JA

Page 1

EALING EDUCATIONAL RESOURCES TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees of Ealing Educational Resources Trust present their annual report and audited accounts for the year ended 31st December 2021 and confirm they comply with the requirements of the Charities Act 2011, the Trust deed, FRS102 and the Charities SORP (FRS 102).

Objectives and Activities

The charitable objects of the Trust are the advancement of the education of children and young people through the provision of education sites and premises. The objects also include any other charitable purpose for the benefit of the worldwide Christian fellowship known as the Plymouth Brethren Christian Church.

In furtherance of its objects, the Trust provides two premises under formal lease for an independent school based in Reading (the “School”), which has been run by OneSchool Global UK ("OSG") from 1 November 2019 and previously by Fulmer Education Trust. One of these is a freehold premises for primary pupils, and the other is a leased premises for secondary pupils which is classified as a programme related investment.

The Trust also provides grant funding and other financial support to OSGUK at the discretion of the Trustees in order to enable OSGUK to provide a well-balanced education at primary and secondary levels, for children and young people whose parents appreciate the Christian ethos.

The immediate aim of the Trust is to maintain its two premises in Reading, with the longer-term aim being to provide new premises which are better suited to the needs of the school.

Success is measured in terms of the provision of appropriate facilities to OSGUK whilst minimising expenditure. This in turn, frees up funds for raising standards of education for all concerned and for the improvement of facilities for pupils and staff alike.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit and have regard to it when reviewing their aims and objectives, and in planning their future activities. In particular they consider how planned activities will contribute to the educational aims and objectives they have set.

Volunteers are an integral part of the community ethos and values of the Trust and there is a strong and willing group of volunteers who support the Trust throughout the year.

Structure, Governance and Management

The Ealing Education Trust is constituted by a Deed of Trust dated 9 May 1995, amended 2 August 2004, and is registered with the Charity Commission for England and Wales.

The Trustees who served during the year and since the year end are set out on page 1. None of the Trustees, nor any person connected with them, received any remuneration from the Trust in the year ended 31st December 2021 (year ended 31st December 2020: £nil).

The power to appoint Trustees is invested in the existing Trustees subject to the Trust Deed requirement. Trustees are selected according to their own specialism in a particular field and are expected to pursue that specialism. New Trustees are instructed in the need to completely adhere to the ethos and values of the Trust.

The Trustees have examined the major strategic, business and operational risks that the Trust faces. The main risks that the Trustees have identified are unrecognised building work costs that have not been fully funded and the impact of the overall economic situation UK wide. The Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Page 2

EALING EDUCATIONAL RESOURCES TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Significant Activities

Throughout the year the Trust has continued to provide educational premises in support of the educational activities of OSGUK, whilst continuing to seek better suited alternative premises.

The Trust has a wholly owned subsidiary company, Zest Trading UK Ltd (Zest) which undertakes trading activities. All profits chargeable to corporation tax are gifted to the Trust in support of the charitable activities of the Trust.

Financial Review

In the year ended 31st December 2021 the Group reported a net deficit of £72,745 (31st December 2020: net deficit of £109,874). All funds are unrestricted.

The Trust is supported and financed principally by profits from its trading subsidiary Zest plus other ad hoc donations and those raised by fundraising events. In 2021 the Trust received £1,250,797 in donations from Zest for which the Trustees are very grateful. The Trust also received £120,000 in grants from the Grace Trust and a donation of £4,067 from ISIS Valley Education Trust for which the Trustees are likewise very grateful.

The Trustees believe that the Trust’s funds are sufficient to mitigate any short to medium term risk of reduced funding.

The Trust’s fundraising events principally operate within the Brethren community and professional fundraisers are not used. Neither the Trust nor any person acting on behalf of the Trust was subject to an undertaking to be bound by any voluntary scheme for regulating fund-raising, or voluntary standard for fund-raising in respect of activities on behalf of the Trust. The Trustees monitored the activities of those acting on behalf of the charity via the close community nature of the Plymouth Brethren Christian Church. No complaints were received about the Charity's fundraising activities and all participants were made aware of the requirement to protect vulnerable people and other members of the public.

The Trustees’ policy is to maintain minimum free reserves at a level which equates to six months’ unrestricted expenditure. This is approximately £190,000. At 31st December 2021 the free reserves of the Trust were £3,562,958 (31st December 2020: £3,566,193).

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Plans For Future Periods

The Trustees plan to continue to support OSGUK to provide a quality and deliver a consistent and high level of educational experience and outcome for all students and staff, in accordance with the Trust's ethos and values. The Trustees plan to continue to maintain the Reading primary and secondary premises. Other more appropriate sites continue to be searched for.

Page 3

EALING EDUCATIONAL RESOURCES TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr A Greenfield Trustee Date: 27th Oct 2022

Page 4

EALING EDUCATIONAL RESOURCES TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST

Opinion

We have audited the financial statements of Ealing Educational Resources Trust (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the parent charity'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.

Page 5

EALING EDUCATIONAL RESOURCES TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is 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 Group's and the parent charity'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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 6

EALING EDUCATIONAL RESOURCES TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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:

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and reviewing regulatory correspondence.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Page 7

EALING EDUCATIONAL RESOURCES TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 27 October 2022

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 8

EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Other expenditure
10
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
19
Net movement in funds
19
Total funds carried forward		 Unrestricted
funds
2021
£
124,067
10,000
1,250,797
-
-
1,384,864
1,057,167
400,442
-
1,457,609
(72,745)
6,354,715
(72,745)
6,281,970		 Total
funds
2021
£
124,067
10,000
1,250,797
-
-
1,384,864
1,057,167
400,442
-
1,457,609
(72,745)
6,354,715
(72,745)
6,281,970		 Total
funds
2020
RESTATED
£
120,000
10,000
987,274
5,887
1,535
1,124,696
856,832
377,682
56
1,234,570
(109,874)
6,464,589
(109,874)
6,354,715

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 13 to 29 form part of these financial statements.

Page 9

EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Unrestricted funds
19
Total funds		 131,428
45,958
3,619,151
3,796,537
(162,374)		 2021
£
2,647,807
2,647,807
3,634,163
6,281,970
6,281,970
6,281,970
6,281,970		 110,397
66,613
3,606,863
3,783,873
(222,593)		 2020
RESTATED
£
2,793,435
2,793,435
3,561,280
6,354,715
6,354,715
6,354,715
6,354,715

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr A Greenfield

Trustee Date: 27th October 2022

The notes on pages 13 to 29 form part of these financial statements.

Page 10

EALING EDUCATIONAL RESOURCES TRUST

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Unrestricted funds
19
Total funds		 2,469
3,572,855
3,575,324
(12,368)		 2021
£
2,601,920
2
2,601,922
3,562,956
6,164,878
6,164,878
6,164,878
6,164,878		 77,006
3,518,935
3,595,941
(29,750)		 2020
RESTATED
£
2,742,218
2
2,742,220
3,566,191
6,308,411
6,308,411
6,308,411
6,308,411

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr A Greenfield Trustee Date: 27th October 2022

The notes on pages 13 to 29 form part of these financial statements.

Page 11

EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Interest and dividends
Purchase of fixed assets
Fixed asset disposal
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
53,767
-
(18,620)
2,141
(16,479)
25,000
(50,000)
(25,000)
12,288
3,606,863
3,619,151		 2020
RESTATED
£
61,604
5,886
(91,439)
-
(85,553)
50,000
-
50,000
26,051
3,580,812
3,606,863

The notes on pages 13 to 29 form part of these financial statements

Page 12

EALING EDUCATIONAL RESOURCES TRUST

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

1. General information

Ealing Educational Resources Trust is an unincorporated charity (registered number 1057707) registered in England and Wales. The registered address is Amberley, Wantage Road, Harwell, Didcot, Oxfordshire, OX11 0LL.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Ealing Educational Resources Trust 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.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has also taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a Charity only statement of cash flows and certain disclosures about the charity's financial instruments within the consolidated financial statements.

No separate SOFA has been prepared for the Charity alone.

2.2 Going concern

The Trustees are of the opinion that there is sufficient funding in place to continue activities of the charity. Therefore, the accounts have been prepared on a going concern basis.

Page 13

EALING EDUCATIONAL RESOURCES TRUST

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

2. Accounting policies (continued)

2.3 Income

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 income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 14

EALING EDUCATIONAL RESOURCES TRUST

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

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Freehold property - 2% straight line
Freehold improvements - 2% straight line
Leasehold improvements - 20% straight line
Fixtures and fittings - 25% reducing balance

2.6 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 15

EALING EDUCATIONAL RESOURCES TRUST

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

2. Accounting policies (continued)

2.9 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.

2.10 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.

2.11 Financial instruments

The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Page 16

EALING EDUCATIONAL RESOURCES TRUST

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

3. Income from donations and legacies

Grants
ISIS Valley Education Trust
Grants		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
120,000
-
4,067
-
124,067
Restricted
funds
2020
£
120,000		 Total
funds
2021
£
120,000
4,067
124,067
Total
funds
2020
£
120,000

4. Income from charitable activities

Unrestricted
funds
2021
£
Rental income
10,000
Unrestricted
funds
2020
RESTATED
£
Rental income
10,000		 Total
funds
2021
£
10,000
Total
funds
2020
RESTATED
£
10,000

A lease is in place for the rental of the building to OSGUK for £5,000 p.a. The lease is in place until 31st December 2027.

The charity also leases a site in Reading - 'The Quad'. The charity has sublet the premises to OSGUK for £5,000 p.a. for the purposes of running a secondary school.

Page 17

EALING EDUCATIONAL RESOURCES TRUST

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

5. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2021
£
Trading income - Zest Trading UK Limited
1,250,797
Unrestricted
funds
2020
£
Trading income - Zest Trading UK Limited
987,274		 Total
funds
2021
£
1,250,797
Total
funds
2020
£
987,274

6. Investment income

Bank interest
Bank interest
Interest receivable		 Unrestricted
funds
2020
£
5,886
1
5,887		 Total
funds
2021
£
-
Total
funds
2020
£
5,886
1
5,887

Page 18

EALING EDUCATIONAL RESOURCES TRUST

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

7. Other incoming resources

Other income
Unrestricted
funds
2020
£
Other income
1,535		 Total
funds
2021
£
-
Total
funds
2020
£
1,535

8. Expenditure on raising funds

Other trading expenses

Unrestricted
funds
2021
£
Cost of sales
940,701
Administration expenses
103,198
Interest payable
451
Administration depreciation
12,817
1,057,167		 Total
funds
2021
£
940,701
103,198
451
12,817
1,057,167

Page 19

EALING EDUCATIONAL RESOURCES TRUST

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

8. Expenditure on raising funds (continued)

Other trading expenses (continued)

Cost of sales
Administration expenses
Interest payable
Administration depreciation		 Unrestricted
funds
2020
£
746,998
95,198
912
13,724
856,832		 Total
funds
2020
£
746,998
95,198
912
13,724
856,832

9. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Charitable activities
400,442
Unrestricted
funds
2020
£
Charitable activities
377,682		 Total
2021
£
400,442
Total
2020
£
377,682

Page 20

EALING EDUCATIONAL RESOURCES TRUST

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

10. Other expenditure

Other expenditure
Unrestricted
funds
2020
£
Other expenditure
56		 Total
funds
2021
£
-
Total
funds
2020
£
56

11. Analysis of expenditure by activities

Charitable activities
Charitable activities		 Activities
undertaken
directly
2021
£
386,301
Activities
undertaken
directly
2020
£
347,450		 Support
costs
2021
£
14,141
Support
costs
2020
£
30,232		 Total
funds
2021
£
400,442
Total
funds
2020
£
377,682

Page 21

EALING EDUCATIONAL RESOURCES TRUST

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

11. Analysis of expenditure by activities (continued)

Analysis of direct costs

Depreciation
Premises costs
Donations		 Total
funds
2021
£
140,299
91,429
154,573
386,301		 Total
funds
2020
£
150,211
116,239
81,000
347,450

Donations were made to OSGUK.

Staff costs are nil. Ealing Educational Resources Trust is run wholly by volunteers.

Analysis of support costs

Non educational premises costs
Professional charges
Governance costs
Administrative costs
12.
Auditor's remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
Non-audit services		 Total
funds
2021
£
-
7,816
5,077
1,248
14,141
2021
£
5,000
2,250		 Total
funds
2020
£
1,999
668
5,828
21,737
30,232
2020
£
5,750
-

Page 22

EALING EDUCATIONAL RESOURCES TRUST

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

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .

14. Tangible fixed assets

Group

Cost or valuation
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
property
£
2,345,228
-
(545)
2,344,683
135,260
37,854
(386)
172,728
2,171,955
2,209,968		 Freehold
improvements
£
118,061
-
-
118,061
12,792
2,361
-
15,153
102,908
105,269		 Leasehold
improvements
£
589,308
-
-
589,308
153,016
109,075
-
262,091
327,217
436,292		 Fixtures and
fittings
£
73,227
18,620
(10,201)
81,646
31,321
12,817
(8,219)
35,919
45,727
41,906		 Total
£
3,125,824
18,620
(10,746)
3,133,698
332,389
162,107
(8,605)
485,891
2,647,807
2,793,435

Page 23

EALING EDUCATIONAL RESOURCES TRUST

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

14. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
property
£
2,308,444
2,308,444
107,787
28,862
136,649
2,171,795
2,200,657		 Freehold
improvements
£
118,061
118,061
12,792
2,361
15,153
102,908
105,269		 Leasehold
improvements
£
589,308
589,308
153,016
109,075
262,091
327,217
436,292		 Total
£
3,015,813
3,015,813
273,595
140,298
413,893
2,601,920
2,742,218

The leasehold improvements have been reclassified from programme related investments in 2021, and the prior year has been restated. The costs relate to the refurbishment and repurposing of a leased site in Reading, 'The Quad'. The costs are being depreciated over the lease period of five years.

The brought forward figures have been restated.

Page 24

EALING EDUCATIONAL RESOURCES TRUST

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

15. Fixed asset investments

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity number place of business Zest Trading UK Limited 06357796 11 Arkwright Road, Reading, Sale of retail goods Berkshire, RG2 0LU

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Zest Trading UK Limited 1,300,797 (1,230,009) 70,788 117,094

Page 25

EALING EDUCATIONAL RESOURCES TRUST

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

16. Stocks

Group Group
2021 2020
£ £
Stock 131,428 110,397

17. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Tax recoverable		 Group
2021
£
39,313
-
2,012
2,469
2,164
45,958		 Group
2020
RESTATED
£
36,105
-
5,989
24,519
-
66,613		 Charity
2021
£
-
-
-
2,469
-
2,469		 Charity
2020
RESTATED
£
-
50,000
2,487
24,519
-
77,006

18. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
75,000
59,006
-
15,368
13,000
162,374		 Group
2020
£
100,000
48,971
1,296
42,576
29,750
222,593		 Charity
2021
£
-
(632)
-
-
13,000
12,368		 Charity
2020
£
-
-
-
-
29,750
29,750

Page 26

EALING EDUCATIONAL RESOURCES TRUST

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

19. Statement of funds

Statement of funds - current year

Balance at 1
January
2021
£
Unrestricted funds
General Funds
6,354,715
Statement of funds - prior year
Balance at
1 January
2020
£
Income
£
Unrestricted funds
General Funds
6,442,852
1,158,696
Restricted funds
Restricted Funds
-
120,000
Total of funds
6,442,852
1,278,696
20.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Tangible fixed assets
Current assets
Creditors due within one year
Total		 Income
£
Expenditure
£
1,384,864
(1,457,609)
Expenditure
£
Transfers
in/out
£
(1,366,833)
120,000
-
(120,000)
(1,366,833)
-
Unrestricted
funds
2021
£
2,647,807
3,796,537
(162,374)
6,281,970		 Balance at
31
December
2021
£
6,281,970
Balance at
31
December
2020
£
6,354,715
-
6,354,715
Total
funds
2021
£
2,647,807
3,796,537
(162,374)
6,281,970

Page 27

EALING EDUCATIONAL RESOURCES TRUST

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

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Endowment
funds
2020
£
-
(50,000)
50,000
-		 Unrestricted
funds
2020
£
2,793,435
3,833,873
(272,593)
6,354,715		 Total
funds
2020
£
2,793,435
3,783,873
(222,593)
6,354,715

21. Reconciliation of net movement in funds to net cash flow from operating activities

22.

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest income shown in investing activities
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Prior year restatement
Net cash provided by operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2021
£
(72,745)
162,107
-
(21,031)
20,655
(35,219)
-
53,767
Group
2021
£
3,619,151
3,619,151		 Group
2020
RESTATED
£
(109,874)
180,663
(5,886)
(22,599)
(14,952)
12,515
21,737
61,604
Group
2020
£
3,606,863
3,606,863

Page 28

EALING EDUCATIONAL RESOURCES TRUST

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

23. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1
January
2021
£
3,606,863
(100,000)
3,506,863		 Cash flows
£
12,288
25,000
37,288		 At 31
December
2021
£
3,619,151
(75,000)
3,544,151

24. Operating lease commitments

At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
132,460
211,620
344,080		 Group
2020
£
96,460
141,580
238,040		 Charity
2021
£
120,000
200,000
320,000		 Charity
2020
£
84,000
120,000
204,000

25. Related Party Transactions

Grants totalling £154,573, included within charitable expenditure for the year ended 31 December 2021, comprise amounts payable to OSG, a related party by virtue of the following: Mr W Burgess was a Director and Trustee of OSG and also a Director of Zest Trading UK Ltd, the wholly owned subsidiary of Ealing Educational Resources Trust. Mr W Burgess also has multiple family connections to the Trustees of Ealing Education Resources Trust. Mr W Burgess resigned as a Director of Zest Trading UK Ltd on 15 February 2022.

As at the 31 December 2021, unsecured concessionary loans of £75,000 made to Zest Trading UK Ltd by Mrs H Brunsdon remained outstanding (2020: £100,000). These loans qualify as related party transactions as they were made by Mr J Silcock (Director of Zest Trading UK Ltd), on Mrs H Brunsdon's behalf, under the authority granted to him by a Lasting Power of Attorney for Property and Financial Affairs.

26. Post balance sheet events

Property owned by the Trust at Chequers End Equestrian Centre, Chequers Lane, Cadmore End, HP14 3PQ has been sold in June 2022 for £2m.

Page 29