Charity number: 1058608
LONG LEYS EDUCATION TRUST
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
LONG LEYS EDUCATION 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 |
LONG LEYS EDUCATION TRUST
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 DECEMBER 2021
| Trustees | Mr B Arnett, Trustee |
|---|---|
| Mr C R Arnett, Chair | |
| Mr C Glass, Trustee | |
| Mr N Turner, Trustee | |
| Mr T J Pocock, Trustee | |
| Mr D Warrilow, Trustee | |
| Charity registered number 1058608 Principal office 107 Stockbridge Road Elloughton Brough East Riding HU15 1HW Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Cheltenham GL50 3PR Bankers Barclays Bank plc Leicester LE87 2BB |
Page 1
LONG LEYS EDUCATION TRUST
TRUSTEES' REPORT FOR THE PERIOD ENDED 31 DECEMBER 2021
The Trustees of Long Leys Educational 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. The objects also include any other charitable purpose for the benefit of the worldwide Christian fellowship known as the Plymouth Brethren Christian Church.
The trust’s main activities are the support of Brethren schools and the provision of grants to organisations that support children and families.
In furtherance of its objects, the Trust provides one premise under formal lease for an independent school based in Ridgeway Campus, Ridge Way, Scunthorpe. DN17 1BS, which has been run by OneSchool Global UK (OSGUK).
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.
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 are strong and willing group of volunteers who assist and support the Trust throughout the year.
Structure, Governance and Management
Long Leys Educational Trust is constituted by a Deed of Trust dated 17 September 1996 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 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.
Significant Activities
Throughout the year the Trust has continued to provide educational premises in support of the educational activities of OSGUK.
Page 2
LONG LEYS EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2021
On the 31st July 2021 the Trust was gifted by Northmoor Education Trust the whole of the issued share capital of Edutrade Ltd (Company number 13312138) and now holds the shares in Edutrade Ltd as a wholly owned subsidiary company, 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 surplus of £166,303 (2020 deficit of £243,070). All funds are unrestricted.
The Trust is supported and financed principally by profits from its trading subsidiary Edutrade Ltd plus other ad hoc donations and those raised by fundraising events. The Trust received a donation from Northmoor Education Trust (now Dormant) of £36,423 for which Trustees are 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’ policy is to maintain minimum free reserves at a level which equates to six months’ unrestricted expenditure. This is approximately £60,000. At 31st December 2021 the free reserves of the Trust were £593,795 (31st December 2020 £350,435). The Trustees are looking to re-establish sufficient Free Reserves over the next 5 years though the Trustees believe that with the freehold property of £1,067,168, which is held free of debt, provides the buffer required by the policy.
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.
Page 3
LONG LEYS EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures
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disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
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charity and group will continue in business.
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 T J Pocock Trustee Date: 31 October 2022
Page 4
LONG LEYS EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONG LEYS EDUCATION TRUST
Opinion
We have audited the financial statements of Long Leys Education Trust (the 'parent charity') and its subsidiaries (the 'group') for the period 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:
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give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the period then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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.
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LONG LEYS EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONG LEYS EDUCATION 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:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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the parent Charity has not kept sufficient accounting records; or
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the parent Charity financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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
LONG LEYS EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONG LEYS EDUCATION 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.
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LONG LEYS EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONG LEYS EDUCATION 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: 31 October 2022
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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LONG LEYS EDUCATION TRUST
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 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 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward 20 Net movement in funds 20 Total funds carried forward |
Unrestricted funds 2021 £ 670,475 10,000 1,073,466 10 - 1,753,951 902,246 685,402 1,587,648 166,303 2,298,813 166,303 2,465,116 |
Total funds 2021 £ 670,475 10,000 1,073,466 10 - 1,753,951 902,246 685,402 1,587,648 166,303 2,298,813 166,303 2,465,116 |
Total funds 2020 £ 145,618 62,500 - 114 61,933 270,165 - 513,235 513,235 (243,070) 2,541,883 (243,070) 2,298,813 |
|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the period.
The notes on pages 13 to 29 form part of these financial statements.
Page 9
LONG LEYS EDUCATION TRUST
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 13 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Provisions for liabilities Total net assets Charity funds Unrestricted funds 20 Total funds |
164,918 49,892 460,815 675,625 (115,917) |
31 December 2021 £ 3,292,609 3,292,609 559,708 3,852,317 (1,369,349) (17,852) 2,465,116 2,465,116 2,465,116 |
- 28,500 324,435 352,935 (2,500) |
31 July 2020 £ 3,479,727 3,479,727 350,435 3,830,162 (1,531,349) - 2,298,813 2,298,813 2,298,813 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Mr T J Pocock
Trustee Date: 31 October 2022
The notes on pages 13 to 29 form part of these financial statements.
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LONG LEYS EDUCATION TRUST
CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 13 Investments 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Total net assets Charity funds Restricted funds 20 Unrestricted funds 20 Total funds |
45,500 183,192 228,692 (15,543) |
31 December 2021 £ 3,207,458 380,646 3,588,104 213,149 3,801,253 (1,369,349) 2,431,904 - 2,431,904 2,431,904 |
28,500 324,435 352,935 (2,500) |
31 July 2020 £ 3,479,727 - 3,479,727 350,435 3,830,162 (1,531,349) 2,298,813 - 2,298,813 2,298,813 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Mr T J Pocock
Trustee Date: 31 October 2022
The notes on pages 13 to 29 form part of these financial statements.
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LONG LEYS EDUCATION TRUST
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2021
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash used in financing activities Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period |
2021 £ 707,337 (408,957) - (408,957) (162,000) (162,000) 136,380 324,435 460,815 |
2020 £ 80,844 (96,990) 114 (96,876) (50,000) (50,000) (66,032) 390,467 324,435 |
|---|---|---|
The notes on pages 13 to 29 form part of these financial statements
Page 12
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
1. General information
The Long Leys Education Trust is an unincorporated charity (no: 1058608) registered in England and Wales. The registered address is 107 Stockbridge Road, Elloughton, Brough, HU15 1HW.
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.
Long Leys Education 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 for 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.
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 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.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
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.
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 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% using the straight line method |
|---|---|---|
| Improvements to property | - | 15% on a reducing balance basis & 20% on a |
| straight line basis | ||
| Plant and machinery | - | 25% on a reducing balance basis |
| Motor vehicles | - | 25% on a reducing balance basis |
| Computer equipment | - | 33% using a straight line method |
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.
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 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
Liabilities and provisions 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 Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
2.12 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.
2.13 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
3. Income from donations and legacies
| Unrestricted funds 2021 £ Donations Northmoor Education Trust 36,423 Donations 632,885 Legacies 1,167 670,475 |
Total funds 2021 £ 36,423 632,885 1,167 670,475 |
Total funds 2020 £ - 145,618 - |
|---|---|---|
| 145,618 |
4. Income from charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Rental income | 10,000 | 10,000 | 62,500 |
5. Income from other trading activities
Income from non charitable trading activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Trading income - Edutrade Humber Limited | 1,073,466 | 1,073,466 | - |
6. Investment income
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Bank interest | 10 | 10 | 114 |
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
6. Investment income (continued)
7. Other incoming resources
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Other income | - | - | 61,933 |
8. Expenditure on raising funds
Costs of raising voluntary income
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Trading costs - Edutrade Humber Limited | 902,246 | 902,246 | - |
9. Analysis of expenditure on charitable activities
Summary by fund type
| Restricted | Unrestricted | |||
|---|---|---|---|---|
| funds | funds | Total | Total | |
| 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Charitable activities | - | 685,402 | 685,402 | 513,235 |
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
10. Analysis of expenditure by activities
| Activities | ||||
|---|---|---|---|---|
| undertaken | Support | Total | Total | |
| directly | costs | funds | funds | |
| 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Charitable activities | 604,585 | 80,817 | 685,402 | 513,235 |
Analysis of direct costs
| Depreciation Sundry Repairs Donation IT cost |
Activities 2021 £ 566,858 - 16,259 21,468 - 604,585 |
Total funds 2021 £ 566,858 - 16,259 21,468 - 604,585 |
Total funds 2020 £ 462,768 998 863 - 214 |
|---|---|---|---|
| 464,843 |
The donation was made to OSGUK.
Analysis of support costs
| Loan interest Governance costs - accountancy Finance Other support costs |
Activities 2021 £ 60,886 5,200 - 14,731 80,817 |
Total funds 2021 £ 60,886 5,200 - 14,731 80,817 |
Total funds 2020 £ 45,814 2,500 78 - |
|---|---|---|---|
| 48,392 |
Staff costs are nil. The charity is run wholly by volunteers.
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
11. Auditor's remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit services | 5,000 | - |
| Fees payable to the Charity's auditor in respect of: | ||
| Non audit services | 2,250 | - |
12. Trustees' remuneration and expenses
During the period, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the period ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
13. Tangible fixed assets
Group
| Cost At 1 August 2020 Additions On acquisition of subsidiaries At 31 December 2021 Depreciation At 1 August 2020 Charge for the period At 31 December 2021 Net book value At 31 December 2021 At 31 July 2020 |
Freehold property £ 1,067,168 - - 1,067,168 88,845 23,730 112,575 954,593 978,323 |
Improve- ments to property £ 3,333,907 294,589 10,511 3,639,007 832,503 545,756 1,378,259 2,260,748 2,501,404 |
Plant and machinery £ - 15,969 79,165 95,134 - 23,788 23,788 71,346 - |
Motor vehicles £ - - 5,026 5,026 - 1,256 1,256 3,770 - |
Computer equipment £ - - 3,697 3,697 - 1,545 1,545 2,152 - |
Total £ 4,401,075 310,558 98,399 |
|---|---|---|---|---|---|---|
| 4,810,032 | ||||||
| 921,348 596,075 |
||||||
| 1,517,423 | ||||||
| 3,292,609 | ||||||
| 3,479,727 |
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
13. Tangible fixed assets (continued)
Charity
| Cost At 1 August 2020 Additions At 31 December 2021 Depreciation At 1 August 2020 Charge for the period At 31 December 2021 Net book value At 31 December 2021 At 31 July 2020 |
Freehold property £ 1,067,168 - 1,067,168 88,845 23,730 112,575 954,593 978,323 |
Long-term leasehold property £ 3,333,907 294,589 3,628,496 832,503 543,128 1,375,631 2,252,865 2,501,404 |
Total £ 4,401,075 294,589 |
|---|---|---|---|
| 4,695,664 | |||
| 921,348 566,858 |
|||
| 1,488,206 | |||
| 3,207,458 | |||
| 3,479,727 |
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
14. Fixed asset investments
Investments in subsidiary companies Charity £ Cost Transfer in of Edutrade Humber Limited 380,546 Investment in Edutrade Humber Limited 100 At 31 December 2021 380,646
Principal subsidiaries
The following was a wholly owned subsidiary undertaking of the Charity from 31 July 2021. The subsidiary transferred to Long Leys Education Trust from Northmoor Education Trust. The results of the subsidiary have been consolidated into the Long Leys Education Trust from the date of transfer.
| Name | Company | Registered office or principal | Principal activity |
|---|---|---|---|
| number | place of business | ||
| Edutrade Humber Limited | 06243263 | Melton House, Jackson Way, | Sale of retail goods |
| Melton, East Riding of Yorkshire, | |||
| HU14 3HJ |
The financial results of the subsidiary for the 5 month period were:
| Name | Income | Expenditure | Profit/(Loss) | Net assets |
|---|---|---|---|---|
| £ | £ | / Surplus/ | £ | |
| (Deficit) for | ||||
| the 5 month | ||||
| period | ||||
| £ | ||||
| Edutrade Humber Limited | 1,073,466 | 1,040,254 | 33,312 | 413,759 |
Page 23
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
15. Stocks
| Group | ||
|---|---|---|
| 31 | Group | |
| December | 31 July | |
| 2021 | 2020 | |
| £ | £ | |
| Stock | 164,918 | - |
16. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
Group 31 December 2021 £ 42,594 - 7,298 49,892 |
Group 31 July 2020 £ - 28,500 - 28,500 |
Charity 31 December 2021 £ - 45,500 - 45,500 |
Charity 31 July 2020 £ - 28,500 - |
|---|---|---|---|---|
| 28,500 |
17. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
Group 31 December 2021 £ 53,320 8,152 27,561 26,884 115,917 |
Group 31 July 2020 £ - - 2,500 - 2,500 |
Charity 31 December 2021 £ (6,226) - - 21,769 15,543 |
Charity 31 July 2020 £ - - 2,500 - |
|---|---|---|---|---|
| 2,500 |
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LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
18. Creditors: Amounts falling due after more than one year
| Other loans 19. Deferred taxation Group and Charity Brought in at 31 July 2021 The deferred tax liability is made up as follows: Accelerated capital allowances |
Group 31 December 2021 £ 1,369,349 |
Group 31 July 2020 £ 1,531,349 |
Charity 31 December 2021 £ 1,369,349 Group 31 December 2021 £ 17,852 |
Charity 31 July 2020 £ 1,531,349 |
|---|---|---|---|---|
| 31 December 2021 £ 17,852 |
||||
| 17,852 | ||||
| Group 31 July 2020 £ - |
Page 25
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
20. Statement of funds
| Statement of funds - current period Balance at 1 August 2020 £ Unrestricted funds Designated funds Designated Funds 1 1,948,378 General funds General Funds 1 350,435 Total Unrestricted funds 2,298,813 Statement of funds - prior period Balance at 1 January 2020 £ Income £ Unrestricted funds Designated funds Designated Funds - all funds 435,367 270,165 General funds General Funds - all funds 2,106,515 - Total Unrestricted funds 2,541,882 270,165 |
Income £ - 1,753,951 1,753,951 Expenditure £ (50,467) (462,767) (513,234) |
Expenditure £ - (1,587,648) (1,587,648) Transfers in/out £ (304,630) 304,630 - |
Balance at 31 December 2021 £ 1,948,378 |
|---|---|---|---|
| 516,738 | |||
| 2,465,116 | |||
| Balance at 31 July 2020 £ 350,435 |
|||
| Unrestricted funds Designated funds Designated Funds - all funds General funds General Funds - all funds Total Unrestricted funds |
|||
| 1,948,378 | |||
| 2,298,813 |
Page 26
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
21. Summary of funds
Summary of funds - current period
| Balance at 1 August 2020 £ Designated funds 1,948,378 General funds 350,435 2,298,813 Summary of funds - prior period Balance at 1 January 2020 £ Income £ Designated funds 435,367 270,165 General funds 2,106,515 - 2,541,882 270,165 |
Income £ - 1,753,951 1,753,951 Expenditure £ (50,467) (462,767) (513,234) |
Expenditure £ - (1,587,648) (1,587,648) Transfers in/out £ (304,630) 304,630 - |
Balance at 31 December 2021 £ 1,948,378 516,738 |
|---|---|---|---|
| 2,465,116 | |||
| Balance at 31 July 2020 £ 350,435 1,948,378 |
|||
| Designated funds General funds |
|||
| 2,298,813 |
22. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 31 December 2021 £ Tangible fixed assets 3,292,609 Current assets 675,625 Creditors due within one year (115,917) Creditors due in more than one year (1,369,349) Provisions for liabilities and charges (17,852) Total 2,465,116 |
Total funds 31 December 2021 £ 3,292,609 675,625 (115,917) (1,369,349) (17,852) |
|---|---|
| 2,465,116 |
Page 27
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
22. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 31 July 2020 £ 3,479,727 352,935 (2,500) (1,531,349) 2,298,813 |
Total funds 31 July 2020 £ 3,479,727 352,935 (2,500) (1,531,349) 2,298,813 |
|---|---|---|
23. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Increase in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors Increase in deferred tax Net cash provided by operating activities |
Group 31 December 2021 £ 166,303 596,075 - (164,918) (21,392) 113,417 17,852 707,337 |
Group 31 July 2020 £ (243,070) 462,768 (114) - 21,500 (160,240) - 80,844 |
|---|---|---|
Page 28
LONG LEYS EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
24. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
Group 31 December 2021 £ 460,815 460,815 |
Group 31 July 2020 £ 324,435 |
|---|---|---|
| 324,435 |
25. Analysis of changes in net debt
| Cash at bank and in hand Debt due after 1 year |
At 1 August 2020 £ 324,435 (1,531,349) (1,206,914) |
Cash flows £ 136,380 162,000 298,380 |
At 31 December 2021 £ 460,815 (1,369,349) |
|---|---|---|---|
| (908,534) |
26. Related party transactions
Unsecured loans, with below market interest rates, have been provided to the Charity by the Trustees (including their immediate family and / or business interests) as follows:
At the start and end of the period there was an outstanding loan balance with B Arnett (Trustee) of £17,500.
At the start and end of the period there was an outstanding loan balance with C Arnett (Trustee) of £50,000.
At the start of the period there was an outstanding loan balance with N Turner (Trustee) of £78,000. £75,000 was repaid in the period. £3,000 was outstanding at the year end.
Page 29