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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1057707

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

EALING EDUCATIONAL RESOURCES TRUST

EALING EDUCATIONAL RESOURCES TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Reference and Administrative Information 2
Report of the Trustees 3 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities - Consolidated 9
Statement of Financial Activities - Parent Charity 10
Balance Sheet - Consolidated and Parent Charity 11
Cash Flow Statement - Consolidated 12
Notes to the Financial Statements - Consolidated and Parent Charity 13 to 23

Page 1

EALING EDUCATIONAL RESOURCES TRUST

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022

Registered charity number 1057707
Principle address Amberley
Wantage Road
Harwell
Didcot
Oxfordshire
OX11 0LL
Trustees Braden Abernethie
Andrew Greenfield
Stuart Hill
Cyril Parsons
Howard Tennent
Charles White
Auditors Richards Sandy Audit Services Limited
Thorneloe House
25 Barbourne Road
Worcester
Worcestershire
WR1 1RU
Bank Bank of Scotland
Edinburgh
EH2 2YR
Barclays
Acorn House
36-38 Park Royal Road
London
NW10 7JA

Page 2

EALING EDUCATIONAL RESOURCES TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their report with the financial statements of the charity for the year ended 31st December 2022. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objects

The charitable objects of the charity are the advancement of the education of children and young people from ages five to eighteen in particular by assistance to their parents to enable such children to be taught otherwise than as school as defined in the Education Acts and any other charitable purpose for the benefit of the worldwide Christian fellowship known as the Plymouth Brethren Christian Church.

Activities

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 ("OSGUK").

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 charity 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.

Public benefit

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

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

The trading activities of the charity's trading subsidiary Zest Trading UK Limited, which operates a small chain of convenience stores, are undertaken by volunteers.

ACHIEVEMENT AND PERFORMANCE

Significant activities

Throughout the year the charity has continued to provide educational premises in support of the educational activities of OSGUK.

The charity has a wholly owned subsidiary company, Zest Trading UK Ltd (Company Registration No. 06357796) which undertakes trading activities. All profits chargeable to corporation tax are gifted to the charity in support of the charitable activities of the charity.

FINANCIAL REVEW

Principal funding sources

The charity is supported and financed principally by profits from its trading subsidiary Zest Trading UK Limited plus other ad hoc donations and those raised by fundraising events and grants from The Grace Trust. The Trustees believe that the charity’s funds are sufficient to mitigate any short to medium term risk of reduced funding.

Approach to fundraising

The charity’s fundraising events principally operate within the Brethren community and professional fundraisers are not used. Neither the charity nor any person acting on behalf of the charity 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 charity.

Page 3

EALING EDUCATIONAL RESOURCES TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

Financial position

In the year the charity reported a net surplus of £103,360 (2021 - deficit of £143,533). The group reported a net surplus of £95,568 (2021 - deficit of £72,745).

At the year end the charity had net current assets of £5,599,235 (2021 - net current assets of £3,562,956). The group had net liabilities of £5,650,146 (2021 - £3,634,163).

Principal risks

The Trustees have examined the major strategic, business and operational risks that the charity faces. 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.

The principal risks to the charity are:

There were no serious incidents relating to the charity over the year to report.

Reserves policy

The charity’s policy is to maintain minimum free reserves at a level which equates to six months’ unrestricted expenditure. This is approximately £900,000. At the year end 2022 the free reserves of the group were £5,650,146 (2021 - £3,634,163). The high level of Free Reserves reflect the ongoing search for suitable freehold site from which to provide new premises which are better suited to the needs of the school.

Going concern

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.

FUTURE PLANS

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 charity's ethos and values.

The charity continues its search for more appropriate sites to provide new premises which are better suited to the needs of the school.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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.

Recruitment and appointment of trustees

The power to appoint trustees is invested in the existing trustees subject to the charity Deed of Trust 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 charity.

New trustees are appointed at charity meetings and training is given by the outgoing trustee being replaced, along with support from fellow trustees.

Holding Trustees

The freehold property is held in the names of 3 of the current trustees (as well as 3 trustees who resigned in previous years) of the charity.

The shares of the charity's subsidiary Zest Trading UK Limited are held in the names of Stuart Hill and Charles White.

Page 4

EALING EDUCATIONAL RESOURCES TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES' RESPONSIBILITIES

The trustees, are responsible for preparing the Report of the Trustees 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity deed, 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:

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

STATEMENTS AS TO DISCLOSURE TO OUR AUDITORS

In so far as the trustees are aware at the time of approving our trustees’ annual report:

Approved by order of the Board of Trustees on …........................ and signed on its behalf by:9th June 2023

Mr A Greenfield - Trustee

Page 5

EALING EDUCATIONAL RESOURCES TRUST

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of Ealing Educational Resources Trust (the 'parent charity') and its subsidiary (the 'group') for the year ended 31st December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement 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 (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, 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 director's 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 other material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 directors with respect to going concern are described in the relevant sections of this report.

Other matters - comparatives audited by a another auditor

The financial statements of the charity for the year ended 31 December 2021 were audited by another auditor who expressed an unmodified opinion on those financial statements.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

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 material 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 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:

Page 6

EALING EDUCATIONAL RESOURCES TRUST

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EALING EDUCATIONAL RESOURCES TRUST FOR THE YEAR ENDED 31 DECEMBER 2022

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, 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 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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 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 a Report of the Independent Auditors 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we have:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011 (and related legislation).

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures.

Significant laws and regulations effecting the group that may have an indirect impaction on the financial statements are the Food Standards Act 1999 (and related legislation), the Licensing 2003 Act (and related legislation) and the Data Protection Act 2018 (and related legislation). We have confirmed that the group has registered with the Food Standards Agency for all store that it operates, holds premises licences for all locations where it sells alcohol and is registered with the Information Commissioner's Office.

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 regulation. 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 Report of the Independent Auditors.

Page 7

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EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Note
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investment income
5
TOTAL INCOME
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
-
Property management
-
Grants issued to OneSchool Global UK
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
Carried forward
19		 Unrestricted
Fund
£
182,925
6,667
1,529,618
198,162
1,917,372
1,330,512
309,906
183,086
1,823,504
93,868
6,281,970
6,375,838		 Year Ended
31 December
2022
Total
Funds
£
182,925
6,667
1,529,618
198,162
1,917,372
1,330,512
309,906
183,086
1,823,504
93,868
6,281,970
6,375,838		 Year Ended
31 December
2021
Total
Funds
£
124,067
10,000
1,250,797
-
1,384,864
1,057,167
245,869
154,573
1,457,609
(72,745)
6,354,715
6,281,970

Page 9

EALING EDUCATIONAL RESOURCES TRUST

INDIVIDUAL PARENT STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Note
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Investment income
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
7
-
Property management
-
Grants issued to OneSchool Global UK
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
Carried forward
19		 Unrestricted
Fund
£
182,925
6,667
401,338
590,930
301,484
183,086
484,570
106,360
6,164,878
6,271,238		 Year Ended
31 December
2022
Total
Funds
£
182,925
6,667
401,338
590,930
301,484
183,086
484,570
106,360
6,164,878
6,271,238		 Year Ended
31 December
2021
Total
Funds
£
124,067
10,000
172,842
306,909
295,869
154,573
450,442
(143,533)
6,308,411
6,164,878

Page 10

EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022

Note
FIXED ASSETS
Tangible fixed assets
14
Investments
15
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank and in hand
LIABILITIES
Amounts falling due within one year
18
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted Funds
19		 Group
2022
£
727,392
-
727,392
139,558
103,078
5,667,028
5,909,664
(261,218)
5,648,446
6,375,838
6,375,838
6,375,838		 Group
2021
£
2,647,807
-
2,647,807
131,428
46,590
3,619,151
3,797,169
(163,006)
3,634,163
6,281,970
6,281,970
6,281,970		 Parent
2022
£
669,001
2
669,003
-
32,837
5,593,055
5,625,892
(23,657)
5,602,235
6,271,238
6,271,238
6,271,238		 Parent
2021
£
2,601,920
2
2,601,922
-
3,101
3,572,855
3,575,956
(13,000)
3,562,956
6,164,878
6,164,878
6,164,878

9th June 2023 The financial statements were approved by the Board of Trustees on …........................ and were signed by on its behalf by:

Mr A Greenfield - Trustee

Page 11

EALING EDUCATIONAL RESOURCES TRUST

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

Notes to the
consolidated
cash flow
statement
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
New concessionary loans
Concessionary loans repaid
Interest received
Interest paid
Net cash used in investing 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
2		 Group
2022
£
75,253
75,253
(30,924)
1,998,751
1,967,827
-
-
6,599
(1,802)
4,797
2,047,877
3,619,151
5,667,028		 Group
2021
£
53,026
53,026
(18,620)
3,333
(15,287)
25,000
(50,000)
-
(451)
(25,451)
12,288
3,606,863
3,619,151

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

1 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the year
(as per the statement of financial activities)
Adjustments for:
Depreciation charges
Profit on sale of tangible fixed assets
Interest received
Interest paid
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Cash at bank and in hand
Concessionary loans
ANALYSIS OF CHANGES IN NET DEBT		 At the start
of the year
£
3,619,151
(75,000)
3,544,151		 Group
2022
£
93,868
144,162
(191,574)
(6,599)
1,802
(8,130)
(56,488)
98,212
75,253
Cash flows
in the year
£
2,047,877
-
2,047,877		 Group
2021
£
(72,745)
162,107
(1,192)
-
451
(21,031)
20,655
(35,219)
53,026
At the end
of the year
£
5,667,028
(75,000)
5,592,028

2 ANALYSIS OF CHANGES IN NET DEBT

Page 12

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 ACCOUNTING POLICIES

Charity information

Ealing Educational Resources Trust is an unincorporated charity registered with the Charity Commission for England and Wales.

The registered office and principal activities of Ealing Educational Resources Trust are set out in the Report of the Trustees.

Basis of preparation

The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The accounts are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Group financial statements

These consolidated financial statements incorporate the accounts of Ealing Educational Resources Trust and its wholly owned subsidiary Zest Trading UK Limited on a line by line basis. Both entities prepare their individual entity financial statements adopting accounting policies not considered different from those of these consolidated financial statements and prepared to a year end of 31 December 2022. All intra-group transactions and balances are eliminated on consolidation.

The charity is exempt from disclosing Cash Flow Statement for the individual parent charity's results as the individual parent charity is a qualifying entity.

Going concern

At the time of approving these financial statements, the trustees have a reasonable expectation that the group and parent charity has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. The trustees continue to adopt the going concern basis of accounting in preparing these financial statements.

Incoming resources

All income is recognised once the group has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donation and grant income is recognised when the group has been notified of the amounts. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has passed to the buyer (usually on delivery of the goods) and the amount of turnover can be measured reliably.

Income from the supply of services represents the value of services provided to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

Income from construction contracts is recognised by reference to the stage of completion. The stage of completion is calculated by comparing costs incurred to date as a proportion of total expected costs, provided that total expected costs can be reliable estimated. Where the outcome of a construction contract cannot be reliably measured, income is recognised only to the extent of recoverability of costs incurred to date.

Rental income is recognised on a straight line basis over the lease period.

Page 13

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 ACCOUNTING POLICIES (Continued)

Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the group to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category.

The cost of generating funds indicates only those costs directly related to fundraising activities.

Charitable activity costs relate to those costs that directly relate to the running of the school.

Support costs are costs incurred to facilitate an activity. Unlike direct costs, which result directly from undertaking the activity, support costs do not change directly as a result of the activity undertaken. Support costs include property maintenance costs, including rates and utilities costs, depreciation of tangible fixed assets and legal and accountancy fees.

The irrecoverable element of Value Added Tax is included with the item of expenses to which it relates.

Stock

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete stock and slow moving items.

Tangible fixed assets

Tangible fixed assets, other than freehold and leasehold property, are stated at cost less depreciation. The trustees have reviewed the value of the freehold property and leasehold agreement and have made an appropriate impairment provision for any change in circumstances.

Depreciation of other assets are provided at rates calculated to write off the excess cost over the estimated residual amount evenly over the estimated useful economic life of each class of asset as follows:

Used for charitable activities
Freehold land : not depreciated
Freehold buildings : 2% on cost
Freehold improvements : 2% on cost
Leasehold improvements : 20% on cost
Fixtures, fittings and equipment : 25% on net book value
Used for trading activities
Leasehold improvements : 15% reducing balance
Fixtures, fittings and equipment : 25% on net book value

Freehold property is not depreciated on the basis that its residual value is not expected to be materially lower than its original cost.

If there is an indication that any tangible fixed assets is impaired, then such assets are then written down to their value in use, considered to be the present value of the asset’s remaining service potential plus the net amount that will receive from its disposal.

Investments in subsidiaries

Investments in subsidiaries in the parent charity's individual balance sheet are measured at cost less impairment.

Taxation

The charity is exempt from tax on income and gains falling within section 505 of the taxes Act 1988 or section 252 of the Taxation of chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Page 14

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 ACCOUNTING POLICIES (Continued)

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.

Operating leases

Rentals payable and receivable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Financial instruments

The charity has elected to apply the provisions of Section 11' Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction cost.

Cash equivalents

Short term bank bonds maturing in less than 30 days are considered cash equivalents and accounted for as cash at bank.

Concessionary loans

Concessionary loans are measured at cost.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are charged or credited to the Statement of Financial Activities.

Page 15

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Significant judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Freehold property held by the charity rented to OneSchool Global UK solely to further the objects of the charity (as defined by the charity’s Deed of Trust) have been accounted for within tangible fixed assets, in accordance with Charities SORP accounting treatments regarding social investments in property (land and buildings). Any financial return obtained is not a primary reason for owning the freehold property.

The setting of depreciation policies for tangible fixed assets (which are stated in the accounting policies) are considered a significant judgement. In addition significant judgement is considered to be applied in the review for impairment of tangible fixed assets. The net book value and movements in the year of tangible fixed assets are disclosed in note 14 of the financial statements.

The determining of total expected costs used in determining the stage of completion of construction contracts ongoing at the year end is based on judgement. The value of income recognised under construction contracts can be found in note 4 of the financial statements. The value of deferred income relating to construction contracts can be found in note 19 of the financial statements.

2 DONATIONS AND LEGACIES

Donations
Grants
- The Grace Trust
- Other		 Group
2022
£
-
182,925
-
182,925		 Group
2021
£
-
120,000
4,067
124,067		 Parent
2022
£
-
182,925
-
182,925		 Parent
2021
£
-
120,000
4,067
124,067

3 INCOME FROM CHARITABLE ACTIVITIES

Rental income Group
2022
£
6,667
6,667		 Group
2021
£
10,000
10,000		 Parent
2022
£
6,667
6,667		 Parent
2021
£
10,000
10,000

4 INCOME FROM OTHER TRADING ACTIVITES

Convenience store sales
Kitchen fitting sales
Other income		 Group
2022
£
1,170,348
307,521
51,749
1,529,618		 Group
2021
£
1,060,530
124,846
65,421
1,250,797		 Parent
2022
£
-
-
-
-		 Parent
2021
£
-
-
-
-

Page 16

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5 INVESTMENT INCOME

Gift aid distributions received from subsidiary
Bank interest received
Profit on disposal of tangible fixed assets
SING FUNDS EXPENDITURE
Convenience store stock purchases
Kitchen fitting costs
Administration expenses
Depreciation
Profit on disposal of tangible fixed assets
Interest payable		 Group
2022
£
-
6,599
191,563
198,162
Group
2022
£
909,219
273,762
128,508
17,232
(11)
1,802
1,330,512		 Group
2021
£
-
-
-
-
Group
2021
£
824,584
116,117
104,390
12,817
(1,192)
451
1,057,167		 Parent
2022
£
203,208
6,567
191,563
401,338
Parent
2022
£
-
-
-
-
-
-
-		 Parent
2021
£
172,842
-
-
172,842
Parent
2021
£
-
-
-
-
-
-
-

6 RAISING FUNDS EXPENDITURE

7 CHARITABLE ACTIVITIES COSTS

Direct costs
(see note 8)
Grants issued
(see note 9)
Support costs
(see note 10)		 Group
2022
£
273,773
183,086
36,133
492,992		 Group
2021
£
231,728
154,573
14,141
400,442		 Parent
2022
£
273,773
183,086
27,711
484,570		 Parent
2021
£
281,728
154,573
14,141
450,442

8 DIRECT COSTS

Premises management costs
Depreciation		 Group
2022
£
146,843
126,930
273,773		 Group
2021
£
91,429
140,299
231,728		 Parent
2022
£
146,843
126,930
273,773		 Parent
2021
£
141,429
140,299
281,728

Page 17

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9 GRANTS ISSUED

Grants issued to OneSchool Global UK
10 SUPPORT COSTS
Audit and accountancy fees
Legal and professional fees
Other		 Group
2022
£
183,086
183,086
Group
2022
£
13,887
21,143
1,103
36,133		 Group
2021
£
154,573
154,573
Group
2021
£
6,637
6,368
1,136
14,141		 Parent
2022
£
183,086
183,086
Parent
2022
£
5,465
21,143
1,103
27,711		 Parent
2021
£
154,573
154,573
Parent
2021
£
6,637
6,368
1,136
14,141

11 NET INCOME / (EXPENDITURE) CHARGES

Net income / (expenditure) per the Statement Of Financial Activities is stated after charging / (crediting):

Group Group Parent Parent
2022 2021 2022 2021
£ £ £ £
Operating lease income (6,667) (10,000) (6,667) (10,000)
Operating lease expenditure 113,501 154,035 90,833 134,000
Depreciation 144,162 153,116 126,930 140,299
Profit on disposal of tangible fixed assets (191,574) (1,192) (191,563) -
Auditor's remuneration (current year auditor) - audit fee
 5,200 - 2,000 -
Auditor's remuneration (prior year auditor) - audit fee
 - 6,300 - 6,300
Auditor's remuneration (current year auditor) - other services 1,500 - - -
Auditor's remuneration (prior year auditor) - other services
 - 3,000 - -

12 STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES

Staff costs

There were no employees in either the current or comparative years.

Trustees remuneration and expenses

The trustees were not paid nor received any other benefits from employment with the charity or its subsidiary during either the current or previous years.

None of the trustees were reimbursed expenses in either the current or previous years.

Page 18

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - CONSOLIDATED

Notes
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
TOTAL INCOME
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
-
Property management
-
Grants issued to OneSchool Global UK
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
Carried forward
19
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - PARENT CHARITY
Notes
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Investment income
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
7
-
Property management
-
Grants issued to OneSchool Global UK
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
Carried forward
19		 Unrestricted
Fund
£
124,067
10,000
1,250,797
1,384,864
1,057,167
245,869
154,573
1,457,609
(72,745)
6,354,715
6,281,970
Unrestricted
Fund
£
124,067
10,000
172,842
306,909
295,869
154,573
450,442
(143,533)
6,308,411
6,164,878		 Total
2021
£
124,067
10,000
1,250,797
1,384,864
1,057,167
245,869
154,573
1,457,609
(72,745)
6,354,715
6,281,970
Total
2021
£
124,067
10,000
172,842
306,909
295,869
154,573
450,442
(143,533)
6,308,411
6,164,878

Page 19

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14 TANGIBLE FIXED ASSETS - GROUP

Freehold
property
£
COST
At 1 January 2022
2,308,444
Additions
-
Disposals
(1,884,276)
At 31 December 2022
424,168
DEPRECIATION:
At 1 January 2022
(136,649)
Charge for the year
(15,496)
Disposals
78,287
At 31 December 2022
(73,858)
NET BOOK VALUE:
At 31 December 2022
350,310
At 31 December 2021
2,171,795
TANGIBLE FIXED ASSETS - PARENT CHARITY
COST
At 1 January 2022
Additions
Disposals
At 31 December 2022
DEPRECIATION:
At 1 January 2022
Charge for the year
Disposals
At 31 December 2022
NET BOOK VALUE:
At 31 December 2022
At 31 December 2021		 Freehold
improvements
£
118,061
-
-
118,061
(15,153)
(2,361)
-
(17,514)
100,547
102,908
Freehold
property
£
2,308,444
-
(1,884,276)
424,168
(136,649)
(15,496)
78,287
(73,858)
350,310
2,171,795		 Leasehold
improvements
£
625,547
6,992
-
632,539
(298,170)
(111,221)
-
(409,391)
223,148
327,377
Freehold
improvements
£
118,061
-
-
118,061
(15,153)
(2,361)
-
(17,514)
100,547
102,908		 Fixtures,
fittings &
equipment
£
81,646
23,932
(2,025)
103,553
(35,919)
(15,084)
837
(50,166)
53,387
45,727
Leasehold
improvements
£
589,308
-
-
589,308
(262,091)
(109,073)
-
(371,164)
218,144
327,217		 Totals
£
3,133,698
30,924
(1,886,301)
1,278,321
(485,891)
(144,162)
79,124
(550,929)
727,392
2,647,807
Totals
£
3,015,813
-
(1,884,276)
1,131,537
(413,893)
(126,930)
78,287
(462,536)
669,001
2,601,920

Freehold property is held by the charity for the purpose of renting it to OneSchool Global UK to be used by them as school premises, in order to directly further the objects of the charity (as defined by the charity’s Deed of Trust).

Page 20

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15 FIXED ASSET INVESTMENTS - PARENT CHARITY

Shares in subsidiary £

COST
At 1st January 2022 and 31st December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 2
2
2

Zest Trading UK Limited

Zest Trading UK Limited operates a small chain of convenience stores.

All of the issued share capital of Zest Trading UK Limited (company number 06357796) is held by holding trustees of Ealing Educational Resources Trust.

The registered office of Zest Trading UK Limited is 11 Arkwright Road, Reading, Berkshire, RG2 0LU.

At the year end Zest Trading UK Limited had assets and liabilities as follows:

Tangible fixed assets
Stocks
Debtors
Cash at bank
Creditors
Issued share capital
Retained earnings		 2022
£
58,391
139,558
70,241
73,973
(237,561)
104,602
2
104,600
104,602		 2021
£
45,887
131,428
43,489
46,296
(150,006)
117,094
2
117,092
117,094

Zest Trading UK Limited had trading results for the year as follows:

Turnover
Cost of sales
Administrative expenses
Other operating income
Interest receivable
Interest payable
Net profit
Gift aid distribution to the parent charity
Net movement in retained earnings		 2022
£
1,529,618
(1,182,981)
(154,151)
-
32
(1,802)
190,716
(203,208)
(12,492)		 2021
£
1,250,795
(940,701)
(116,013)
50,000
-
(451)
243,630
(172,842)
70,788

16 STOCKS

Convenience store goods held for resale Group
2022
£
139,558
139,558		 Group
2021
£
131,428
131,428		 Parent
2022
£
-
-		 Parent
2021
£
-
-

17 DEBTORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Trade debtors
VAT recoverable
Other debtors
Prepayments		 Group
2022
£
68,800
7,837
-
26,441
103,078		 Group
2021
£
39,313
2,164
2,644
2,469
46,590		 Parent
2022
£
-
7,837
-
25,000
32,837		 Parent
2021
£
-
-
632
2,469
3,101

Page 21

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18 CREDITORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Concessionary loans
Payments in advance on construction contracts
Trade creditors
Social security and other taxation
Gift vouchers
Accruals
19 MOVEMENT IN FUNDS - GROUP
Unrestricted funds
General fund
Movement in funds for the comparative year was as follows:
Unrestricted funds
General fund
MOVEMENT IN FUNDS - PARENT CHARITY
Unrestricted funds
General fund
Movement in funds for the comparative year was as follows:
Unrestricted funds
General fund		 Group
2022
£
75,000
14,262
117,127
5,100
24,041
25,688
261,218
As at 1
January
2022
£
6,281,970
6,281,970
As at 1
January
2021
£
6,354,715
6,354,715
As at 1
January
2022
£
6,164,878
6,164,878
As at 1
January
2021
£
6,308,411
6,308,411		 Group
2021
£
75,000
6,711
59,638
-
8,657
13,000
163,006
Incoming
resources
£
1,917,372
1,917,372
Incoming
resources
£
1,384,864
1,384,864
Incoming
resources
£
590,930
590,930
Incoming
resources
£
306,909
306,909		 Parent
2022
£
-
-
7,011
-
-
16,646
23,657
Resources
expended
£
(1,823,504)
(1,823,504)
Resources
expended
£
(1,457,609)
(1,457,609)
Resources
expended
£
(484,570)
(484,570)
Resources
expended
£
(450,442)
(450,442)		 Parent
2021
£
-
-
-
-
-
13,000
13,000
As at 31
December
2022
£
6,375,838
6,375,838
As at 31
December
2021
£
6,281,970
6,281,970
As at 31
December
2022
£
6,271,238
6,271,238
As at 31
December
2021
£
6,164,878
6,164,878

Page 22

EALING EDUCATIONAL RESOURCES TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20 LEASING ARRANGEMENTS

Minimum lease payments under non-cancellable operating lease fall due as follows:

Within one year
Between one and five years		 Group
2022
£
112,460
98,207
210,667		 Group
2021
£
112,460
169,167
281,627		 Parent
2022
£
100,000
66,667
166,667		 Parent
2021
£
100,000
166,667
266,667

21 RELATED PARTY TRANSACTIONS

Transactions with trustees

During the year the group received convenience store income from trustees totalling £75,294 (2021 - £75,674) and other income of £13 (2021 - £165). At the year end the group had convenience store trade debtors due from trustees totalling £54 (2021 - £37).

Companies in which at least one of the trustees have an interest in

During the year the group received from such companies convenience store income totalling £4,122 (2021 - £2,310).

During the year the group paid costs to companies with at least one of the trustees is a director and shareholder of totalling £218 (2021 - £481).

22 FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR AUDIT OF SMALL ENTITIES

In common with many other entities of our size and nature we use our auditors to assist with the preparation of the financial statements and also to prepare and submit returns to the tax authorities for Zest Trading UK Limited.

Page 23