The Mereside Education Trust Report and Financial Statements 31 Dec 2020 Charity number.. 1058933
The Mereside Education Trust Report and Financial Statements Contents Page Legal and administrative information Report of the Trustees Report of the Independent Audrior Group Slalement of Financial Activf(ies Group analysis of continuing and discontinued operations 10 Charity Statement of Financial Activities 11 Charity analysis of continuing and discontinued operations 12 Group and Charity baknce sheets 13 Group cash flow statement 14 Charity cash flow Statement 15 Notes forming part of the financial statements Addf(ional information (does not fomi part of the financial statements) 16-30 31
The Mereside Education Trust Legal and administrative infomiation Trustees Mr L Baldwin Mr M Ch8dwck Mr K Devenish Mr M DLJnbar Mr J Hayward Mr M HLrtchins Mr C Lews Mr N Simpson MrA Wells Mrvwells Al Trustees hold liue to the investment property, see note 19. Chief Executive Officer MrA Wells Address of Principal Office Hartford Manor Genbank Lane Northwich CW81HW Department for Education Registration number 3561S030 Auditor Dr J R Ayling Bsc FCA 8 TTOUtbeck Avenue Leamington Spa CV32 6NE Accountants Oldfield SeNiees Santis House Curriers Close Coventry CV4 8AW Bankers Natwesl Bank plc 23 Stamford New Road Attrincham Cheshire WA14 1DB Solicitors Rothwell and Evans 3 Claremont Road Sale Cheshire M33 7DZ Charitres Aid Foundation Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
The Mereside Educatlon Trust Report of the Trustees for the year ended 31 Dec 2020 The TFuslees of The Mereside Education Trust present their annual report and audrf( financial ststemenls for the year ended 31 December 2020 and confitm they compty with the qUirements of the Charities Act 2011, the trust deed and the Charities SORP IFRS 102). structure, governance and management Th& Mereside Education Trust is constituted by a Deed of Trust dated 7 April 1995, amended 26 August 1996, 20 March 1997 and 18 Dember 2008, and is registered wff(h the Charty Commission for England and Wales. The Trustees who have served during the year and Sin the year end are set out on page 1. None of the Trustees, nor any person connected with Ihern, received any remuneration from the Group in the year ended 31 December 2020 (year ended 31 December 2019.- £nill. The power lo appoint trustees is vested in the existing Trustees. Trustees are selected according to their own specialism in a needed field, and are expected lo pursue that specialism. New trustees are instructed in the need to completely adhere to the ethos of the Trust. The Trustees give of their time freely. All major decisions, including those of a financial nature, are made by the Board of Twslees 81 their regular meetings. The Charty has two Whol owned subsidiary companies, Quanto Enterprise Ltd, which undertakes trading activrf£ies and Hartford Investments Ltd. which owns the school premises in NDrthwich. All dislribulable profits from Quanto Enterprise Ltd a donated to the Trust. The results of Quanto EnleTprise Ltd and Hartford Investments Ltd have been consolidated with those of the Trust in order to produce the consolidated financial ststemÈnls which follow. The Trust embarked, in eonjunction wrf(h other Plymouth Brethn Schools in the UK, to consolidate during 2019 into one new charitable entity, Oneschool Global UK (registered charty number (11813011, OSG" OSG PTovides advice and guidance to the Trustees and monitor5 expenditure of the funding they provide. This affiliation supersedes that previously provided by Focus Leaming Trust Iregislered charity number 10997251. The Trustees have examined the major strategi¢, business and operational risks which the Group faces and confimi that systems have been established to mrtigale those risks. Objectives and activities Objects - 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 WDrfdwide Christian fellowship known as the PMouth Brethren Christian Church. The Trust's main actiwties are the support of Brethren schools and the provision of grants to organisations that support chi5dren and families. Ethos - Students attending Brethren schools are encouraged to develop their full potential and acquire the discipline of leaming how lo learn, while upholding Christian teachings and beliefs. The truth and authority of the Holy Bible and strong family values underpin the commitment Df the School lo provide quality in every facet of education urrioulum. teachers, facilities, management and discipline in a safe and caring environment. Values - The Trustees are drawn from the Brethren communty and the School is eommrtted to a way of life that is governed by the Holy Bible, expecting the conduct Df pupils and staff consistently lo reflect Biblical values and the specrfic values of the School, whi¢h include". Integrity- uprightness. honesty and decorous conduct, govemed by the HO Bible., Care & Compa5sion- kindness, consideration and generosty to all.. Re5pect- for all people, propety, Dpinions and authority., Responsibilty- for our action5, progres5 and environment,. Commitment- to self4iscipline and the pursuti of eXllen.
The Mereside Education Trust Report of the Trustees for the year ended 31 Dec 2020 Objectives and activtties (continued) Objectives - The key objectives for the year were to ensure that Hartford hllanor was appropriately adapted for use as a school premises and to pursue the sale of the old school site for the maximum pri. Volunteers are an integral part of the communty ethos and values of the school. The Trustees have referred to the guidance contained in the Charity Commission's general gtJid8n¢e on public benefjt and have had regard to il when reviewing their aims and objectives, and in pl8nnirbg their future 8CtMties. Achievements and perfomiance The Trust has supported the Brethren school in Northwich, providing use of the school building and supporting the education provision provided by OSG. Pupils who attend the Schwl are expected lo act in accordan wth the doctrines and praetices of the Brethren, but there is no other academic or financial selection process for admission to the School. The curriculum is designed lo provide opportunrties for pupils of varied abilities and interests. The subjects offered are in line wf(h the National Curriculum and cover key learning areas. There is an increasing focus on encouraging and developing seIrected leaming principles wlh students. The aim is lo provide a broad and balanced Cu1cUlrn which promotes personal development and prepares students for increasing Independen and responsibilty. OSG was incorporated for that purpose and, whilst reeognising the responsibilities of each relevant local communty, rf( is considered that the advantages of providing education through orbe organisation are onsiderable and that in particular allows.. lal delivery of a single entity lo promde a single employer of school staff., {bl delivery of positive leaming outcomes in line with a single, Global vision,. and (cl maximisation of the benefrts of a UK-wide ecosystem.
The Mereside Education Trust Report of the Trustees for the year ended 31 Dec 2020 Financial Review In the year ended 31 December 2020 the Group reported nel expendf(ure of £792,226 12019.. net expendff(ure of £1,297,996) leaving group funds at 31 December 2020 at a deficf( of £1,566,936 cOMpad wffch a defi¢it of £Tf4,710 at 31 Dember 2019. The Charty reported nel expenditure of £165,384 for the year compared with nel expenditure of £673,616 for the prior year and had deficrf( funds of £1,276,158 at 31 December 2020 compared wi(h defic1£ funds of £1,110,774 al 31 December 2019. All funds are unreslrided. Quanto Enterprise Limited made an operating prorr( of £220,287 (year ended 31 December 2019.. £191,988), of which £220,00012019.. £190,000) was donated to The Mereside Education Trust. As a consequence of the contractual obligations imposed by the transfer of operations to OSG. The Mereside Education Trust has incurred costs of £229,627 12019.. £132,862) comprising the passing on of third paty donations and subsidiary inctrme. At 31 December 2020 the Charity had overpaid £4,17312019'. 9,435} to OSG, in respect of these commitments. The Trust continues lo work closety with OSG to ensure that continued funding received by the TTUSI, intended lo support the education of ils students, is passed on to OSG in order lo continue those provisions in line wf(h the Trust's charitab12 objectives. The Trust is supported and financed principally by donatsons and by grants from OSG. Further net loan5 of £378,000 have been taken out in 2020 to help offset the reduced grant funding reiVed in 2020. Significant fundraising activfties were not undertaken during 2020 or 2019. The Group and Charity had nel liabilities of £1,566,936 and £1,276,158, respectNely, at 31 Dembe1 2020. At 31 December 2020 a loan of £100,000 was in breach of its repayment terms. The terms of this loan have not been formally renegotiated. Following the transfer of principal operations to OSG on 31 August 2019, the Charty became finanGially dependent on the support of OSG. Despite these conditions, the Trustees believe that the Charty and Group remain going concerns due to the following opportunities lo raise additional funds.. A Section 106 agreement for residential planning permission on the old school sV(e in Stockport is expected to be received from the Local Authority Soon. The Trustees have reiVed and accepted an offer to purchase the propety, wlh residential planning approval, for £2.6m, although no contraS have yel been exchanged. The Hartford Manor sitè comprises the Manor House from which the school operates, an adjacent deliCt cottage 8nd approxim81ely one acre of unused car p8rking area. The Trustees believe that the disposal of the cottage and l or surplus car park could raise additional funds without causing major disruption lo the operation of the school, ahOUgh no potential bLryer has yel been sought. The rapid and ongoing nature of the CoMd-19 pandemic means there is signrficanl unrtainty about the housing market and resulting propety valuations. Consequently, the Trustees are unrtain when, and rf the Charity or Group will retum to a positive asset and current asset position. These are Material uncertainties related lo events or conditions that may cast signrficant doubt on the enlf(ies' abilty to continue as going cOnrS, and therefore the Charty and Group might be unable lo realise their assets and discharge their liabilities in the nomi81 course of business. Al 31 December 2020 the Charity and Group had substantial deficit funds. The long term aim for the Charity has been lo hold sufficient reserves to meet one month's oper*ing costs and to have sufficient funds lo repay f(s loans as required. In the short to medium temi, the Trustees hope that the sale of the old school sile in Stockport wll help to alleviate the shortfall in funds and the sale of excess land and l or buildings at the Hartford Manor site is also under consideration. The charity continues to have numerous offers of long temi loans from 'slakeholders' in the Trust li.e.' ex-sludents and their parents or grandparenlsl which could be used lo offset other loans requiring repayment. The Trustees hope to return to a net assets position by 31 December 2022. Plans for future periods The Trusteès intend to continue to support OSG lo assist them in delivering a high level of educational experience and outcome for all students and staff, in accordance wf(h the Trust's ethos and values.
The Mereside Education Trust Report of the TrustÈes for the year ended 31 De¢ 2020 STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practi). The law applicable to chartties in England & Wales requires the trustees to prepare financial slalements for each financial period which give a true and fair wew of the state of affairs of the Group and the Charity and of the incorning reSoUrS and application of resources of thè Group and the Charity for that period. In preparing these financial slalemenls, the trustees are required lo.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP 2019 IFRS 1021., make judgements and estimates that are reasonable and PTudenl', slate whether applicable accounting stsndards have been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Group or Charty will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose wfth reasonable accuracy al any lime the financial position of the Group and the Charty and enable them to ensure that the financial ststemenls comply with thè Charities Act 2011. the Charty (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguaiding the assets Df the Group and the Chanty and hence for taking reasonable steps for the prevention and detectton of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Group and the Charity and financial infomialion included on the Charty's and subsid1aS webs(tes. Legislation in the United Kingdom goveming the preparation and dissemination of financBI statements may differ from legislation in other Approved by the Trustees and syned on their behaK by.. Simpson, Trustee Date
Report of the Independent Auditor To the Trustees of The Mereside Education Trust Opinion I have audited the financial slalements of The Mereside Education Trust Ilhe "Parent Charty'j and ils subsidiaries Ithe Group") for the year ended 31 December 2020, which comprise the Group and Charty Statements of Financial Activities, the Group and Charity Balance Sheèts, the Group and Ch8rty Cash FIDW Ststemenls and Group and ChaTity Notes to the financial slalements, including a summary of significant accounting policies. The financial reporting framework that has been applied iri 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 Irgland" (United Kingdom Generally Accepted Accounting Practice). In my opinion, the financial slalements: give a true and fair view of the stste of the Group's and Parent Charity's affairs as al 31 December 2020 and of the Group's and Parent Charity's incoming resources and application of resources, including its income and expenditure, for the year then ended., hsve been property prepared in accordance with United Kingdom Generally Atpted Accounting Practice", and have been prepared in accordance wlh the requirements of the Charrties Act 2011. Basis for opinion I conduded my audit in accordance with Sntemalional Standards on Auditing IUKI IISAS (UKII and applicable law. My responsibili(ies under those standards are further described in the auditorfs responsibilities for the aud.rt of the financial statements section of my report. l am independent of the Group and Parent Charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC'S Ethical Standard, and I have fuKilled my other ethical responsibilities in accordance wrfih these requirements. I believe that the audit evidence I have obtained is sufficient and appmpriate lo provide a basis for my opinion. Material uncertainty related to going concern I draw attention to note 3 in the financial statements, which indicates that at 31 December 2020 the Charity and the Group had material net liabilities and material net current liabilities meaning that there were insufficient funds lo setue balances due to their creditors. Al 31 December 2020 loans of £100,000 were in breach of their repayment tenns. Following a transfer of principal operations to Oneschool Global UK I OSG") on 31 August 2019, the Charty became financially dependent on the support of OSG. Uncertainty in thè housing market and resulting property valLJalions has been caused by the rapid and ongoing nature of the Covid-19 pandemic. As slated in note 3, these conditions and events, along wi(h other matters as set forth in note 3, indicate that a material uncertainly exists that may cast signrfi¢ant doubl on the Charitys and Group's abilty lo continue as going concerns. My opinion is not modified in respect of this matter. Conclusions relating to going concgrn In audf(ing the financial statements, I have concluded that the Trustees, use of the going concem basis of accounting in the preparatron of the financial statements is appropriate. My responsibiltties and the responsibilities of the Trustees with reset to going coneem are described in the relevant sections of this report.
Report of the Independent Audltor To the Trustees of The Mereside Education Trust (continued) other infomiation The other informalDn comprises the infomation includèd in the Trustees, annual report, other than the fin8nckAI ststements and my auditorfs report thereon. The Twslees are responsible for the other infom?ation contained wthin the annual report. My opinion on the financial statements d$ not cover the other infomiation and. except to the extent othenlSe explicitly slated in my report, I do not express any fom of assurance conelusion Ihereon. My responsibilty is to read the other infomalion 8nd, in doing so, consider whether the other infonnation is materially inconsislenl wth the financial statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If l identfy such material inconsistencies or apparent material misstatements, l am required lo determine whether this gives rise to a material misslatemenl in the financial ststements themselves. If, based on the work I have performed, I conclude that there is a material misstslement of this other infomialion, l am required to reFJOrt that fact. I have nothing to report in this regard. Matters on which l am required to report by exception I have nothing lo report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require me lo report lo you if, in My opinion.. the infomiation given in the financial slalemenls is inconsistent in any material respect wi(h the Trustees, Report., or sufficient accounting records have not been kepl-, or the financial slalements a not in agreement with the accounting records,. or • I have not received all the information and explanations I require for my audit. Responslbllltles of Trustees As explained more fully in the Trustees, Responsibilities Statement sel out on page 5, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary lo enable the preparation of financial ststemenls that are free from material misstatement, whether due to fraud or error. In preparing the financial stalemenls, the Trustees are ffsponsible for assessing the Group's and the Parent Charivs abilities to Continue as a going concern, dis¢losing, as appli¢able, matters related to going conrn 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 akematwe but to do so.
Report of the Independent Auditor To the Trustees of The Mereside Education Trust (continued) Auditor's responsibilities for the audrt of the financial statements I have been appointed as auditor under section 151 of the chare$ Act 2011 and report in accordance wtih gulationS made under section 154 of that Act. My objectives are to obtain reasonable assurance about whether the financial statemerbts as a whole are free from material misststement, whether due lo fraud or errtsr, and to issue an auditorfs report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstslement when it exists. Misslatemenls 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 instsnces of non-compliance wrth laws and regulations. I design procedures in line wrfch my rèsponsibilities, outlined above, lo delecl material misstatements in respect of irregularities, including fraud. The exterit lo which my procedures are capable of detecting irregularities, including fraud is detailed below. Because of the inherent limrtalions of an audit, there is a risk that I will not delect all irregularitiès, including those leading lo a material misslatemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance wlh a law or regulation is removed from the events and transactions reflected in the financial slalemenls, as I wll be less likely to become aware of instances of n0n-c0rnplian. The risk is also greater regarding irregularTiies occurring due lo fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of my responsibilities for the audi( of the financial statements is located on the Financial Reporting Council's websrte at.. www.frc.org.uklaudiiorsresponsibiltiies. This description fomis part of my aud(tDr's report. Use of my report This report is m8de Sole to the Charity's Trustees, as a y, in aordan wi(h Part 4 of the Charf(ies (Accounts and Reports) Regulations 2008. My audit work has been undertaken so that I might slate to the Charity's Trustees those matters l am required to state to them in an auditor's report and for no other purpose. To the fullest extent perniitted by law, I do not accept or sssume respon5ibilty lo anyone other than the Charity and the Charws Trustees as a body, for my audit work. for this report. or for the opinions I have formed. 28 October 2021 Dr J R Ayling Bsc FCA, Statutory Auditor Dr J R Ayling Bsc FCA 8 Troutbèck Avenue Leamington Spa Warwickshire CV32 6NE Dale DrJ R Ayling FCA is elwible forappointment as auditorof the Group and the Charty by virtue of rfs eligibilty forappointment8s auditorof a company undersection 1212 ofthe Companies Act 2006 tself.
The Mereside Education Trust Group Statement of Financial Activities for the year ended 31 Dec 2020 Grou Totsl Total Restricted Year ended Year ended funds 31 Dec 2020 31 Dec 2019 Unrestricted funds Notss Income and endowmgnts from: Donations and legacies Charitable activities Other trading actmties Investments 103,888 131,812 6 1,049,792 74 3,600 107,488 131,812 1,049,792 74 149.835 745,402 771,179 Other 7,677 7.677 3,467 Total 1,293,243 3,600 1,296,843 1,669,891 Expenditure on: Expenditure on raising funds Charitable actThrities 834,418 9 1,025,024 834,418 1,025,024 565,307 1,884,385 Other Oneschool Global UK transfer 226,027 3,600 229,627 132,862 3,442 Sundry Total 2,085,469 3,600 2,089,069 2,585,9 Net loss on Investments 17,19 381,891 Net expenditure 1792.2261 1792,2261 11,297,996) Transfers btheen funds 24 Net movement in funds 1792,226} 1792,226} (1,297,996) Total funds brought forward 24 1774,7101 1774,7101 523,286 Total funds Carried forward 24 {1,566,9361 11,566,936) 1774,7101 There were no recogriised gains and108ses for the Group for the CLTrrenl or prior years other than those included in the ststement of Financial Activrfties. An analysis of continuing and discontinued activities is presented on the next page.
The Mereside Education Trust Group analysis of continuing and discontinued operations for the year ended 31 De¢ 2020 Grou Discon- rotal Continuiny tinued 12m ended Continuing operatiorks operations 31 Dec 20 operations Discon- Total tinued 12m endèd operations 31 Dec 19 Notes Income and endowments from.. Donations and legaries Chsritable actimties 107,488 131,812 6 1,049,792 107.488 138.362 11,473 613,259 12,083 149.835 745.402 131,812 1.049.792 132.143 759,096 Other tracling acti1tieS Investsnents T11,179 74 74 Other 7.677 7.677 3.467 3,467 Total 1.296.843 1,296,843 1,033,078 636,815 1,669,891 Exnlture on= Rak8ing funds Charitable 8Ctwities 834.418 834,418 1.025.024 554,367 973.132 10,940 911,253 565,307 1,884,385 9 1.025,024 Othèr Oneschool Global UK tfr 229,627 229.627 75.000 57,862 132.862 Sundry exp8nses 3,442 3.442 Total 2,089,069 2,089,069 1,605,941 980,055 2.585,996 N8t105s on Fnv8stments 381,891 381,891 Net expenditure 1792,2261 1792,2261 1954,7561 1343,2401 11,297.9961 10
The me$[de Education Trust Charity Statement of Financlal Activities for the year ended 31 De¢ 2020 Chari Total Totsl Restricted Year ended Year ended funds 31 Dec 2020 31 Dec 2019 Unrestricted funds Notes Income and endowments from: Donations and legacies Charitable aclimlies Other trading activities Investment income 66,088 121,812 3,600 69,688 121,812 112,035 745.402 17,399 270,572 3,467 290,781 2,677 290,781 2.677 Other Totsl 481,358 3,600 484,958 1,148,875 Expendlture on: Expenditure on raising funds Chartsble actWFties Other 61,872 258,230 61.872 258,230 63,458 1,240.838 Oneschool Global UK transfer Sundry 226,027 3,600 229,627 132,862 3,442 Total 546,129 3,600 549,729 1,440,600 Net loss on investments 17,19 100,613 100,613 381,891 Net expenditure 1165,3841 {165,3841 {673,8161 Transfers between funds 24 Net movemenl in funds 1165,3841 (165.3841 1673,6161 Totsl funds brought foward 24 11,110,774) {1,110,774) 1437.1581 Total funds carried forward 24 11,276,158) (1,276,158) (1.110,7741 There were no recognised gains and k)sses for the Char¥iy for the current or prior years other than those included in the statement of Financial Activrfcies. An an81ysis of ¢onlinuing and dis¢onlinued activities is presented on the next page.
The Mereside Education Twst Charity analysis of continuing and d5sCOnnUed operations for the year ended 31 Dec 2020 Chari Discon- Total nued 12m ended Continuing operations 31 Dec 20 operations Discon- Total tinued 12m ended operations 31 Dèe 19 ¢ontinuln9 operations Income and endowments from: Donath"ons and legaaes Charitable activ8$ 69,688 69,688 100.562 11,473 613.259 112,035 745,402 121,812 121,812 132,143 Other trading activities Investments 5,316 270,572 3,467 12,083 17,399 270,572 3,467 290,781 2,677 290,781 2,6TT Other Total 484,958 484,958 512,060 636,815 1,148,875 Expenditure on: Raising fvnds Charttable actmties 81,872 258.230 61,872 258,230 52.518 10.940 63,458 1.240.838 329.585 911.2 Other Oneschool Global UK tfr 229.627 229,627 75.000 57.862 132.862 Sundry expenses 3,442 3,442 Total 549,729 549,729 460,545 980,055 1.440,600 Net loss on investments 100,613 100,613 381,891 381,891 Net expendtture 1165,3841 1165,3841 1330,3761 1343,2401 1673,6161 12
The Mereside Educatlon Trust Group and Charity Balance Sheets as at 31 Dec 2020 Grou Char 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Notes Fixed assets Intangible fixed asset Tangible assets Investments 15 1,079,721 16 2.108.505 17 1,619,582 2,232,609 705,673 983,420 1,660,089 3,186,226 3,852,191 1,660,089 1,689,093 Current assets Stocks Debtors Investments Cash at bank and in hand 99,130 24,361 417,850 429,161 89,513 49,786 417,850 134,090 18 19 5,173 417,850 305,386 31,542 417,850 56,751 970,502 691,239 728,409 506,143 Llabilities Credrtors.. amounts falling due wf(hin one year 20 (3,324,084) 12,918,560) {3,160,695) {2,802,0491 Net Current Ilabilities 12,353,582) 12,227,321) (2,432,286} {2,295,906} Debtors.. amounts falling due after MO than one year 18 1,895,619 1,895,619 Totsl assets less current liabilities 832,644 1,624,870 1,123,422 1,288.806 Credftors.. amounts falling due after more than one year 21 12.399.580} (2,399,580) (2,399,580) (2,399,580} Total net liabtlÈti9$ 11,586,936) 1774,710) 11.276,1 S81 11,110,774) Funds Restricted Unrestricted 24 24 11,566,936) (774,7101 11,276,158) 11,110,774) 11,566,936) 1774,7101 {1,276,158) {1.110,774) Approved by the trustees and signed on their behalf by.. li t{10 2011 Mr pson, Trustee Date 13
The Mereside Education Trust Group cash flow statement forthe year ended 31 Dec 2020 Year ended 31 Dec 2020 Year ended 31 Dec 2019 Cash flows from operdting actNities Nel expendTture Adjustments for.. Amortisation charge Depreciation charge Loss on transfer of frxed assets to Oneschool Glob81 UK Losses on current investments Interest income shown in investing aLlivities Increase in stocks Decrease in debtors Increase l (decrease) in creditors 1792,2261 11,297,996) 539,861 132,978 539,861 116,111 192,879 381.891 181 {14,3701 61,146 1126,916) (74) 19,6171 25,425 27,524 Net cash used in operating activf(ies 176,129} 1147,402) Cash flows from investing a¢tivities Interest and diwdend5 Purchase of tangible fixed assets 74 16,8741 11,289,389) Net cash used in investing actThiities 16,8001 11,289,381) Cash flows from financing activities Repayments of borrowing Cash inflows from new borrowng {203.0001 581,000 11,049,200) 1.960,000 Net cash provided by financing activf(ies 378,000 910,80Q Change in cash and cash equDRlenls in the period Cash and cash equivalents brought foNard 295,071 134,090 1525,983) 660,073 Cash and cash equivalents carried forward 429,161 134,090 Analysis of cash and cash èquivalents Cash in hand 429.161 134,090 Changes in net debt Atstart of year At end of year Cash flows Cash Loans falling due within one year Loans falling due after more than one year 134.090 12.733,000) 12.399,580) 295,071 1378,000) 429,161 (3,111.000) (2,399,580) Total 14,998,490) (82,929} (5,081,419) 14
The Mereside Education Trust Charity cash flow statement for the year ended 31 Dec 2020 Year ended 31 Dec 2020 Year ended 31 Dec 2019 Cash flows from operating activities Net expenditu Adjustments for.. Impairment of fixed asset investment Depreciation charges Loss on transfer of fixed assets to Oneschool Global UK Losses on current investments Interest income shown in investing activities Decrease in debtors Increase I Idecreasel in creditors 1165.3841 (873,6161 100,613 96,067 192,879 381,891 (81 54,160 (126.7981 1741 26,369 646 Net cash used in by operating 8¢ttvthes {37,8301 {75,4251 Cash flows from investing activities Interest and dividends Purchase of investments Purchase of tsngible fixed assets 74 (71,609} (80,564) (1,280,591) Net cash used in investing activities (71,535} (1,361,14n Cash flows from financing activities Repayments of borrowirig Cash inflows from new borrowing (193,0001 551,000 (1,044,200) 1,960,000 Net cash provided by financing activities 358,000 915,800 Change in cash and cash èquivalents in the period Cash and cash equivalents brought forward 248,635 56,751 1520,772) 577,523 Cash and cash equivalents carried for•vard 305,386 56,751 Analysis of Cash and cash equivalents Cash in hand 305,386 56,751 Changes in net dèbt At start of year At end of year Cash flows Cash Loans falling due within orbe year Loans falling due after more than one year 56,751 12,683,000) 12,399,580) 248,635 1358,0001 305,386 (3,041,000} 12,399,580} Total 15,025,829) 1109,3651 15,135,194} 15
The Mereside Education Trust Notes forniing part of the financial statements for the year ended 31 Dec 2020 AccountSng policies {al Basis of preparation The Mereside Education Trust is a Charity registered in England & Wales. The address of the registered Offi is given in the Charty infomalion on p8ge 1 of these financial statements. Until 31 August 2019 the Trust operated an independent school based in Stockport. and subsequent Northwich, which edu¢8tes approximately 150 pupils from 7 to 18 years of age. sin that date rt has continued to own, via ils wholly owned subsidiary company Hartford Investments Limited, the building from which the school is operated by another Chartiy, Oneschool GSobal UK IregisteTed Charity number 11813011. The Charity Constitutes a public benefit entity as defined by FRS 102. The financial stslements and consolidated financial statements have been prepared in a¢¢ordan¢e with Attounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of IreEand {FRS 1021 issued in October 2019. the Financi81 Reporting Standard appIable in the United Kingdom and Republic of Ireland IFRS 1021, and UK Generally A¢pted Practice. The financial slalements are prepared on a going concem basis under the historical cost convention. The signfficant accounting policies applied in the preparation of these financial stslèments a set out below. These policies have been consistently applied to all years presented unless otheise slated. Ibl Method of consolidation The resuEts of The Mereside Education Trust and its wholly owned subsidiaries, Quanto Enterprise Limf(ed and Hartford Investments Limited, have been consolidated to Produ Group accounts using the acquisition method. Unrestricted funds are available for use at the discretion of the trust¢¢s in furtherance of the general objectives of the Charity, or the Group. and which have not been designated for other purposes. Designated funds comprise unreslTlCted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is sel out in the notes lo the financial statements. Restricted funds are funds whieh are lo be used in accordance with specffic restrictions imposed by donors or which have been raised by the Ch8rily, or the Group, for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sel in the notes lo the financial slatemenls. {dl Incorne recognition All incoming resources are included in the Slalemenl of Financial Activrties ISOFAI when the Charty or the Group is legally entitled to the income after any perfornian conditions have been met. the amount can be measured reliably and il is probable that the income will be received. For donations to be recognised the Charty will have been nolrfied of the amounts and the settlement date in writing. 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 mel or the fulIMent of those conditions is within the control of the Charity and f( is probable that they will be fUllEed. Donated facilities and donated professional services are recognised in income at their fair value when their econornic benefrt is probable, il can be measured reliably and the Charity, or the Group, h8S control over the rfLem. Fair value is determined on the basis of the value of the grft to the Charity, or the Group. For example the amount the Charity, or the Group, would be willing to pay in the open market for such f8cilities and setvices. A corresponding amount is recognised in expenditure. Income from trading activities includes income earned from fundraising events and trading actNrties to raise funds for the Chanty, or the Group. Income is receivecl in exchange for supptying goods and services in order to raise funds 8nd is regnised when entillemenl has occurred. Investment income is eamed through trading aetivthes undertaken by the trading subsidiaries, the profts from whom are donated to the Parent Charity. All income arises in the United Kingdom. 16
The Mereside Education Trust Notes forming part of the financial statements for the year ended 31 Dec 2020 Accountlng policles Icontinued} {el Expendlture recognition All expenditure is accounted for on an accruals basis and has been classrfied under headings that aggregate all costs related to the category. Expenditurè is recognised where there is a legal or constructive obligation lo make payments to third parties, it is probable that the settlement wll be required and the amount of the obligation can be measured reliably. 11 is calegorised under the followng headings= Costs of raising funds includes the costs of fundraising and trading activities Expenditure on charf(able activities comprises the costs of promsion of education and associated costs IeCoVerable VAT is charged as an expense against the activity for which expenditure arose. lry Support costs allocation Support costs are those that assist the work of the Charty, or the Group, but do not dire¢tly represent charitable activrties and include office costs, governance cos15, and administrative payroll costs. Where support costs cannot be dirttclly attributed to particular headings they have been allocated lo expenditure on charitable adivities as raising funds is undertaken on a wholly voluntary basis. The analysis of these costs is included in note 11. Igl Intangible fixed assets - goodwill Goodwill arising on business combinations is capitslised, classtfied as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwll is five years becau the useftjl economic lrfe cannot be estimated reliably. Provision is made for arby Impairment. {hl Tangible fixed assèts Tangible fixed assets are slated at cost lor deemed costl or valuation less accumulated depreciation and accurnulat impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation ts provided on all tangible fixed assets, at rates calcuL3ted lo write off the cost, less estimated residual value, of each asset on 8 Systemati¢ basis over its expected useful lrfe as follows.. Freehold land No depreciation Freehold buildings 20/0 straight line Freehold improvements 13.60A slraighl line Leasehold improvements Over the lease term Fixtures, frtiings & equipment Non compuier equipment 20.fi straight line Computer equipment 33ts/D straight line Assets costing less than £500 are written off to the SOFA in the year of purchase. {il Investments Investment properties for which fair value can be me8sured liablY are measured at fair value at each reporting date with changes in fair value recognised in 'nel gains I Ilossesl on investments, in the SOFA. Current asset investments are those which are expected to be sold within 12 months of the balance sht date. Fixed asset investments are those held for ongoing use by the Charity- lil stocks Stocks comprise finished goods and are stated al the lower of cost and estimated selling price bss costs to complete and sell. Cost includes all costs of purchase, costs of conversion and Dther costs incurred in bringing stock to its present location and condrf£ion. CDSt is calculated using the first-in, flrst- out fomiula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. 17
The Mereside Education Trust Notes forming part of the financial statements for the year ended 31 Dec 2020 Accountlng policies Icontinued} {kl Debtors and credteor5 Debtors and credrtors with no staled interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Itl Concessionary loans Concessionary loans include those payable lo, or receivable from. third parties which are interest free or below market interest rates and are made. or reived, lo advan Charitable purposes. Where the loan is repayable on demand within onè year, the loan is measured al cost, less impairment. {ml Impaimient Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balancè sheet date. If such indication exists, the recoverable amount of the asset, Dr the asset's cash generating unit, is estimated and compared to the carrytng amoLEnt. Where the carrying amount exceeds its recoverable amount, an impairment loss is cOgnised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation de¢reaso. {nl Provisions Provisions are recc)gnised when the Charty, or the Group, has an obligation at the balants sheet date as a result of a past event, (( is probable that an OLrfow of economic beneffts will be required in settlement and the amount can be reliabty estimated. {ol Employee benefits Retirement benefits to employees of the trust are Provided by the Teachers, Pension Scheme I'TPS'I. This 15 a defined benefi( scheme and the assets are held separately from those of the Irusl. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over emplciyees, working INes wrf(h the ITUSt in such a way that the pension ¢ost is a substsnlially level percentage of Current and future pensionable payroll_ The contributions are detemiined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 14, the TPS is a mulli-employer scheme and there is insufficient inforyn3tion available lo use defined benefrt accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate. Ipl Tax The Charity is an exempt Charity wtthin the meaning of schedLtle 3 of the Charities Act 2011 and is considered to psss thè lesls set out in Paragr8ph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a Charity for UK corporation tsx purposes. Iql Going concern The financial stslements have been prepared on a going concem basis. see note 3. {r} Judgements and key sources of estimation uncertainty In the application of the Group's a¢counting policies, the Trustees are required to make judgmerbts, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underfying assumptions are reviewed on an tsngoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects On that period, or the period of the revision and future periods where the revision affects both current and fu[U peri¢xls. 18
The Mereslde Education Trust Notes forniing part of the financial statements for the year ended 31 Dec 2020 Oneschool Global UK On 31 August 2019 the Charty transferred Tts prirnary operations lo Oneschool Global UK, "OSG" Under the terms of the associated transfer agreement, the 'Agreemenl" The Mereside Education Trust incurred the following expendi(ure'. Gn)up & Chari Year ended Year ended 31 Dec 2020 31 Dec 2019 Transferral of cash b818nces Contractual payment of post transfer third paty donations Contractual payment of post transfer subsidiary income 57,862 9,627 220,000 229,627 75,000 132,862 The contractual payment of post transfer third paty donations includes a reslricled amount of £3,600 12019.. £nill. Prepayrnents and accrued income include £4,173 12019". £9.4351 in rèspect of arnounls overpaid to Oneschool Global UK during the yèar ended 31 December 2020 see note 18. From 1 September 2019, under the lem)s of the Agrèement, The Mereside Education Trust has eharged school fees and collected receipts from parents on an 8gency On basis as follows= Grou & Chari Year ended Year ended 31 Dec 2020 31 Dec 2019 Balance held a5 agent blf Funds recewed as agent Funds paid as agent Balan held as agent clf 5,281 254,207 1259,4881 5,281 5,281 Going Concern and Covid-19 The Group and Charty had net liabilities of £1.566,936 and £1,276,158, SpeCtely, al 31 Dernber 2020. At 31 December 2020 a loan of £100,000 was in breach of its repayment terms. The lems of this loan have not been formally renegotiated. Followng a transfer of principal operations lo Oneschool Global UK I OSG") on 31 August 2019, the Charity b8came financially dependent on the support of OSG. Despite these condrf(ions, the Trustees believe that the Charity and Group remain going concems due to the followng opportunities to raise addiiTonal funds= A Section 106 agregment for residential planning permission on the old school site in Stockport is expected lo be received from the Local Authorty soon. The Trustees have rèceived and atpted an offer to purchase the property, with residential planning approval, for £2.8m, atthough no contracts have yet been exchanged. The Hartford Manor sV(e comprises the Manor House from which the school operates. an adjacent derelict cottage and approximately one acre of unused car parking area. The Trustees believe that the disposal of the cottage and l or surplus car park could raise add(£ional funds wfchoul causing major disruption to the operation of the school, af(hough no potential buyer has yet been sought. The rapid and ongoing nature of the Covid-19 pandemic means there is signrficant uneertainty about the housing market and resutting propety valuations. Consequently, the TDJStees are UnrtaIn when, and rf the Charity or Group will return lo a positive asset and current asset position. These are material uncertainties related to events or condi(ions that may cast signrficant doubt on the enlilies, ability to continue as going concerns, and therefore the Charity and Group might be unable to realise their assets and discharge their liabilities in the nomial course of business. 19
The Mereside Education Trust Notes fomiing part of the financial statements for the year ended 31 Dec 2020 Donations and legacies Group Charity Year ended Year ended Year ended Year ended 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Gffts and donations 107,488 149,835 69.688 112,035 Included wi(hin gifts and donations for the Group and the Charity is £3,60012019.. £10.8531 relating to the restricted Capital fund, see note 24. Gifts and donations for the Group include £37,800 (2019.. £37,800} in respect of premises occupied free of charge by the trading subsidiary, Quanlo Enterprise Ltd. The sum of £37,800 is the Trustees, estimate of the rental charge5 the company would incur if rent was charged at the full commercial rate. The Group premises costs {nole 111 inclLtde £37,800 in respect of these waived charges. Income from charitable activities Group Charity Year ènded Year ended Yearended Yearended 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 School fees Career Advantage Program Grant income 246,280 22.000 477,122 745,402 246,280 22,000 477,122 745,402 131,812 131,812 121,812 121,812 InclLtded Mlhin grant income for the Group and the Charity is £nil (2019.. £38,600) relating to restricted funds, see note 24. The caer Advantage Program income was also restricted. Other trnding activities Group Chartty Year ended Year ended Year ended Year ended 31 Dec 2020 31 De¢ 2019 31 Dec 2020 31 Dec 2019 Fundraising income Other Ir8ding income 5,316 765,863 771,179 5,316 12,083 17,399 1.049,792 1,049,792 Investment income Group Charity Year ended Year ended Year ended Year ended 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Income from subsidiaries Bank interest 290,707 74 290,781 270,584 74 74 270,572 20
The Mereside Education Trust Notes forming part of the financial statements for the year ended 31 De¢ 2020 Expenditu on raisin9 funds Group Year ended Year ended 31 Dec 2020 31 Dec 2019 Charity Year ended Year ended 31 Dec 2020 31 Dec 2019 Trading costs Invèstment management costs 772,546 61,872 834.418 512,789 52,518 565,307 10,940 52,518 63,458 61,872 61,872 Expenditure on charltable activitiès Group Charity Year ended Year ended Year ended Year ended 31 DK 2020 31 Dec 2019 31 Dec 2020 31 De¢ 2019 Tutoring costs Student transport Fee relief Other direct costs Totsl direct costs Support costs 44,110 525,129 39,139 86,076 38,165 688.509 1.195.876 1,884,385 44,110 525,129 39,139 86,076 38,165 688,509 552,329 1,240,838 44,110 980,914 1.025,024 44,11Q 214,120 258,230 Included wfthin tutoring costs for the Group and the Charity are restricted costs of £nil12019.' £14,025}. Included within fee relief Charges for the Group and Charty for the year ended 31 December 2019 Is a restricted amount of £22,000. 10 Trustees, expenses and remuneration The Trustees all give freely their time and expertise without any forni of remuneration or other benefft in cash or kind (year ended 31 Dernber 2019.. £nil}. Expenses paid lo the Trustees in the year lolalled £nil 12019.. £nill. During the year, Trustees made donations of £nil (2019.. £nil}. Related paty transactions are di%closed in note 26. 11 Allocation of support costs All support costs are allocated lo the sole charitable activity of the Charity and the Group, being the advancement of education of Children and young people from the ages of five to eighteen. Support cost Group Charity PrnIses costs Adminislraliv& costs Amgrbsalion of goodwill Depreciation and loss on disposals Finance costs Professional charges Governance costs 64,955 17,416 539.861 132,978 204,775 9,441 11,488 980,914 211 5,105 196,333 3,138 9,333 214,120 Premises costs for the Group include £37,800 in respect of waived rental costs, see note 4 21
The Mereside Educatlon Trust Notes fomiing part of the financial statements forthe year ended 31 Dec 2020 12 Net movement in funds for the year The net movement in funds for the year is slatgd after ¢harging'. Group Charty Year ended Year ended Yearended Yearended 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Amortisation of goodwill Depre¢ialion of tangible fixed assets Audit fees 539,861 132,978 5,450 539,861 116,111 5,350 96,067 5,350 S,450 No other fees were paid lo the auditor (year ended 31 December 2019.. £nill. 13 Staff costs Group & Charity Year ended Year ended 31 Dec 2020 31 Dec 2019 The staff costs were.. Wages and salaries Social security costs Pension contributions Temiination costs 29,687 3,294 7,029 4,100 44.110 421.069 41,307 56,684 15,050 534,110 59,400 593,510 Other staff costs linc agency slaffi 44,110 Agency staff were used for leaching purposes when the Trust has been temporarily unsuccessful in recruf(ing a teacher for specrfie subjects. The number of empk)yees whose empk)yee benefrts (including holiday pay accruals under FRS1021 exceeded £60,000 was. Yearended Yearènded 31 Dec 2020 31 Dec 2019 No. No. £80,001 to £70,000 The Charity and Group employed one member of leaching staff for the period 1 January 2020 to 31 August 2020. The average weekly number of leaching and support staff employed during the year ended 31 December 2019 was 13. Included wthin termination payments are statutory redundancy payments of £nil 12019.. £9,450) and other payments of £4,10012019.' £5,600). 14 Teache. pension Scheme The Teachers. Pension Scheme (rpsi ES a statutory, contributory, defined benefft scheme, govemed by the Teachers, Pensions Regulation$120101 and, from 1 April 2014, by the Teachers, Pension Scheme Regulations 2014. Membership is automatic for full-lime lea¢hers and, from 1 January 2007, aulomatrc for teachers in part4ime employrnent follomring appointment or a change of contract. atthough they are able lo opt out. The TPS is an unfunded scheme and members contribute on a 'pay as you go, basis these contributions along with those made by employers are Credited lo the Exchequer. Ret1ment and other pension beneffts are paid by public funds provided by ParliamenL 22
The Mereside Education Trust Notes fomiing part of the financial statements for the year ended 31 Dec 2020 14 Teachers. pension scheme {contSnuedl Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordanc& wrf(h the Public Service Pensions (Valuations and Employer Cost Capl Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuattons are dependent on assumptions about the value of fLrture costs, design of benefits and many other factors. The Latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance wi(h the Public Service Pensions Ivaluations and Employer Cost Capl Directions 2014. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consullalion are.. Employer contribution rate set at 23.60/0 of pensionable pay from 1 Sèptember 2019 116.40A to 30 August 20191 (including a 0.08Q/o employer administration charge)., Total scheme liabilitiès (pensions currently in payment and the estimated cost of future benefits) for service to the effectwe date of £218,100 million, and notional assets leslimaled future contributions together wrf(h the notional investments held al the valuation date) of £196,100 million, gThfing a notional past service defici( of £22,000 million., An employer cost cap of 10.9 % of pensionable pay will be applied lo future valuations.. The assumed real rale Df return is 2.8 % in excess of prices and 20A in excess of earnings. The rate of real eamings grosrth is assumed lo be 2.20/0. The assumed nominal rale of return is 4.45QA. Until 1 September 2019 the employer Contribution rate was 16.4/0 The TPS valuation for 2016 determined arb employer rale of 23.6'/ts from September 2019, which wll be payable during the implementation period until the next valuation as al March 2020, whereupon the empk)yer contribution rale is expected lo be reassessed and will be payable from 1 April 2023. The pension costs paid lo TPS in the period (including holiday pay accruals under FRS1021 amourbted 10 £7,029 {2019.' £56,684). A copy of the valuation report and supporting documentation is on the Teachers, Pensions wèbsite. Under the definrbons set out in FRS 102, the TPS is a multiemployer pension schème. The charty has accounted for ils contributions to the scheme 88 rf (( were a defined contribution scheme. The charty has set out above the information available on the scheme. 15 Intangible fixed asset- goodwill The carrwng amounts for goodwll arising on the purchase of the entire share capitsl of Hartford Investments Ltdlsee note 171 is as follows.. Group Chartty Cost At 1 January 2020 and 31 December 2020 Amortisation At 1 January 2020 Charge for year At 31 December 2020 2,699,304 1,079,722 539,861 1,619,583 Net book value At 310ecember 2020 1,079,721 At 31 Dernber2019 1,619,582 23
The Mereside Education Trust Notes fomiing part of the financial statements for the year ended 31 Dec 2020 16 Tangible fixed assets Group Leasehold improve- ments Freehold land & buildings Freehold improve- ments Fixtures, fittings & equipment Total Cost At 1 Jan 2020 Transfer Additions At 31 Dec 2020 1,485,713 780,789 1738,884) 27,157 2,293,659 738,884 902 739,786 5,972 33,129 6,874 2,300,533 1,485713 41,905 Depreciation At 1 Jan 2020 Transfer Charge for year Al 31 Dec 2020 5,943 44,555 (33,2111 8,380 19,724 10,552 61,050 33,211 100,613 133,824 17,829 23,772 6,156 16,708 132.978 194.028 Net book value Al 31 Dec 2020 1,461,941 1,479,770 605,962 22,181 736,234 16.421 16,605 2,106.505 2,232,609 At 31 Dec 2019 Charity Leasehold improve- ments Freehold land & buildings Freehold improv&- ments Fixtures. fittings & equipment Total Cost Al 1 Jan 2020 Transfer Al 31 Dec 2020 738,884 738,8841 738,884 1738,8841 Depreciation At 1 Jars 2020 Transfer At 31 Dec 2020 33,211 133,2111 33,211 133,2111 Net book value At 31 Dec 2020 At 31 Dec 2019 705,673 705,673 The leasehold improvements for the Charty al 1 January 2020 comprise the repurposing and refutbishment costs of Hartford hAanor which is owned by the trading subsidiary Hartford Investments Ltd. These costs had been bome by The Mereside Education Trust w(th a view to occupying the premises under a deemed lease agreement by wrtue of its parent I subsidiary relationship with the Company. On 1 January 2020 Hartford Investments Ltd entered into a lease agreement for Hartford Manor wf(h Oneschool Global UK, effectroely ceasing ts deemed lease with The me$Ide Education Trust. As a sull of these events, The Mereside Education Trust's interest in these kasehold improvements has been transferred to its investment in Hartford Inveslrnenls Ltd, See note 17, as Hartford Investments Ltd has benefrtted from the improvements made to thè property. For the Group, the caprtalised costs of repurposing and refurt)ishment have transfeThed from leasehold improvements to freehold improvements. This transfer represents the assets initially being associated with the leasing arrangement, through The Mereside Education Trust, and subsequentty being attributed to the freehold premises owned by Hartford Investments Ltd. Lending of £2,399,580 at 31 December 2020 and 31 December 2019 has been secured on Hartford Manor, see note 22. 24
The Mereside Education Trust Notes forming part of the financial statements for the year ended 31 Dec 2020 17 Fixed asset investments Charity Hartford Investments Ltd Quanto Enterprisg Ltd Totsl Cost or valuation At 1 Jan 2020 Transfer Additions At 31 Dec 2020 Impaimient At 1 Jan 2020 Charge for year At 31 Dec 2020 2.397,343 705,673 71,609 3,174,625 2,397,345 705,673 71,609 3,174,627 1,413,925 1QO,613 1,514,538 1,413,925 100,613 1,514,538 Carrying amount At 31 Dec 2020 1,660,087 1,660,089 At 31 Dec2019 983.418 983,420 The Charity owns 100DA of the share capitsl of Quanlo Enterprise Limited, a company registered in England and Wales. Quanto Enterprise Limited undertakes general trading in order to raise funds for the Charity. The followng results of Quanlo Enterprise Limff(ed have been consolidated wrth those of The Mereside Education Trust-. Year 9nded Year ended 31 Dec 2020 31 D9¢ 2019 Trading income Trading costs Other income Support costs Operating profil Donation lo Mereside Educatn Tnjst Nel proff( 1.049,792 IfK2,5461 10,000 66,959 220,287 220.000 287 753,780 1501,8491 59,943 191,988 190,000 Assets Liabilities Net assets 280,311 164,826 115485 231,209 116,011 115198 C311ed up share capital Retsined earnings Capital and reserves 115,483 115485 115,196 115 198 25
The Mereside Education Trust Note5 forming part of the financial statements for the year ended 31 Dec 2020 17 Fixed asset investments Icontinuedl The charty owns 1000/0 of the Sha capital of Hartford Investments Limited, a company registered in England and Wales which owns 14artford Manor in Northwi¢h. The carrying value is based on a valuation by an independent professionally qualified valuer w(th recent experience in the location and class of the investment propety being valued. The transfer lo fixèd asset investments comprises the Chariws net book value of leasehold irnprovernents al 1 January 2020, see note 76. The followng results of Hartford Investments Limited have been consolidated w((h those of The Mereside Education Trust: Year ended Yearended 31 Dec 2020 31 Dec 2019 serVe charge income Supportcosts Net loss 5,000 17.829 Assets Amount due lo The Mereside Education Trust Other liabilities Nel liabil¢(ies 1,484.762 11,895,619} 1,480,823 11,895,619) 500 415296 Called up share capital Reserves Capitsl and reserves 200 432,057 431857 200 415,496 415296 18 Debto Grou Char 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Due within one year. Trade debtors Other debtors PpayMents 8nd arUed income 7,820 85 16,456 24.361 21,066 754 27,966 49,786 20,645 5,173 5,173 10,897 31,542 Prepayments and accrued income include £4,173 12019-. £9,435) overpaid lo Oneschool Global UK under the transfer agreement, see note 2. Grou Chari 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Due after more than one year: Amounts due from subsidiary co. 1,895,619 1,895,619 Amounts due from subsidiary companies after more than one year comprrse an interest free loan made by The Mereside Education Trust to Hartford Investments Ltd under the terms of a share purchase agreement on 21 September 2018. Additions to Hartftsrd Investments Ltd (note 171 include £70,707 12019.. £80,564) in Tespecl of concessionary interest on this loan. 26
The Mereside Education Trust Notes forming part of the financlal statements for the year ended 31 Dec 2020 19 Current investments Current investmènts Comprise land at Tennyson Close and the old school premise5 on Didsbury Road, both in Stockport. During the year ended 31 December 2019 the school relocated from the Didsbury Road sile and the decision was taken to market it for sale. In order to maximise the sales revenue for the Trust, the Trustees made a planning application for residential use, the land in Tennysorb Close fonming part of that application. The carrying value is based on a valuation by an independent professionally qualrfied valuer wrf(h recent experien in the location and class of the investment propety being valued. Charity & Group Didsbury Road. Stockport Tennyson Close, Stockport Total Carrying value al 31 Dec 2020 and 31 Dec 2019 20,000 397,850 417,850 20 CredFtors: amounts falling due within one year Grou Cha 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Loans (see note 22) Trade creditors Amounts Owed to group undertakings Accruals and deferred income Taxation and soci81 securty Other Creditors 3,111,000 63,543 2,733,000 89,650 3,041,000 2,963 2.437 113,886 2,683,000 39,142 118,835 8,749 21,957 3,324,U84 77,847 74,298 18.083 2,918,560 409 3,160,695 5,609 2,802,049 21 Creditots: amounts falling due after more than one year Grou Char 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Loans (see note 22} 2,399,580 2.399,580 2,399 580 2,399,580 22 Loans Group Charty At 1 January 2020 Loans advanced Loans repaid Al 31 December 2020 5.132,580 581,000 {203,0001 5,510,580 5,082,580 551,000 {193,0001 5.440,580 Loans due after more than one year comprise a non cOnSsiOnary loan secured on the Group's premises, Hartford Manor. All other loans were concessionary, unsecured loans with either zero or below market rate interest charges. At 31 December 2020 ban5 of £100,000 were in breach of their repayment temis. The terms of these loans have not been fom)ally renegotiated. 27
The Mereside Education Trust Notes forming part of the financial statements for the year ended 31 Dec 2020 23 Deferred income Group Charity At 1 January 2020 Amounts released lo income At 31 December 2020 2,818 2,8181 2,818 12,8181 Deferred income at 31 Dember 2019 comprised payments on account from students, parents of £2,818. There was no deferred income at 31 Decernber 2020. 24 Summary of fund movements Group Fund balance blf Fund balance ¢lf Loss on investments Income Expendlture Unrestricted funds General fund Restricted funds Capital fund 1774,7101 1,293,243 {2,085,4691 11,566,936) 3,600 (3,6001 Totsl funds 74,710 1,296,843 2,089,069 1,566,936 Charity Fund balance Fund balan¢e Lo$$ on investments Income Expenditure Unrestricted funds General fund Restricted fvnds Capital fund 11,110,774) 481,358 1548,129} 1100,6131 11,276,158) 3,600 (3,6001 Totsl funds 1,110.774 484,958 549,729 100613 1276.158 The Capital fund is used to collect and spend funds obtained for capital purposes. 28
The Mereside Educatlon Trust Notes forming part of the financial statements for the year ended 31 Dec 2020 25 Analysis of net assets by fund Group Restricted Funds Unrostricted Funds Total Fixed assets Current assets Current liabilities CredTtors due after more than one year Fund balance 3,186,226 970,502 13,324,084) 2,399,580) 1,566,936 3,186.226 970.502 (3,324,084) 2,399,580) 1,566,936} Charity Restricted Funds Unrestrlcted Funds Total Ftxed assets Current assets Current liabilities Debtors due aftèr more than one year Creditors due after more than one year Fund balance 1,660,089 728,409 13,160,695) 1,895,619 12,399,580 {1,276,1581 1,660,089 728,409 13,160,695) 1,895,619 12,399,580) 11,276,158) 26 Related party transactions Included in grant income for the Group and the Charty {nole 51 is funding of £nil (year ended 31 December 2019.. £330,954) from the Focus Learning Trust IRegistered Charty number 1099725) and £113,36912019." £132,143) from Oneschool Global UK Ltd. Both Focus Leaming Trust and Oneschool Global UK, in addition to providing financial assistance, have provided technical support and are therefore in a posrtion to advise upon and Influen policies adopted by The Mereside Education Trust. No fee discounts, including deductions Madè under the Career Advantage Program were awarded lo Trustees, or their immediate family and l or business interests in the year ended 31 December 2020. Such discounts were made during the year ended 31 Dernber 2019 as follows.. Mr L Baldwin.. £1,884, Mr C Lew5.' £1,332, Mr M Chadwck.. £3,192 and Mr N Simpson.. £4,986. Unsecured loans, wf(h below rnarket interest rates, have been provided to the Charty by the Trustees (including their immediate family and l or business interests} as follows.. Bal blf at l Jan 2020 Advanced in the year Repaid in the year Bal clf at 31 Dec 2020 Trustee MT K Deveni5h Mr M Dunbar Mr J Hawrd hitr M Hutchins Mr C Lewis Mr N Simpson MrA Wells Mrvwelis 39,000 25.000 20,000 100.000 50,000 50,000 450,000 100,000 834,000 30,000 69,000 25,000 20,000 100.000 45,000 65,000 450,000 100,000 874,000 45,000 15,000 150,0001 90,000 (50,0001 Group loans include an addi(ional unsecured balance of £10,000, advanced in the current year, which is attributable to Mr M Hutchins. 29
The Mereside Educatlon Trust Notes forming part of the financial slatements for the year ended 31 Dec 2020 27 Controlling party and ultimate controlling party The controlling paty and uttimate controlling party of the Charty and the Group is the Board of Trustees of The Mereside Education Trust. 30
The Mereside Education Trust Additional infomiation for the year ended 31 Dec 2020 (Does not fon77 part of the financial statements) l On9School Global UK On 31 August 2019 the Charty transferred ils primary operations lo Oneschool Global UK {registered charty number 107634131, "OSG Under the terms of the associated transfer agreement, the "Agreement" The Mereside Education Trust, "MET, incurred the followng expenditure.. Year ended Year ended 31 Dec 2020 31 Dec 2019 Transferral of cash balances Contractual payment of post transfer third paty donations Contractual payment of post transfer subsidiary income 57,862 9,627 220,000 229,627 75,000 132,862 Included within prepayments and accru income is £4,173 overpaid to OSG under the temis of the Agreement. This is made up as follows.. Nel book value of fIxtus, fittings & equipment al date of transfer 192,879 Transferral of cash balanS 157.8621 Post transfer net school fee income attributable to OSG Gross fees invoiced Fee waivers CAP deducted Agency debtor adjustment (411,5971 71,785 39,000 30,487 (270,325) Contractual payment of post transfer subsidiary income (295,000) Contractual payment of post transfer third party donations (15,227) Other adjustments Costs incurred by MET to be recharged to OSG Costs incurred by OSG to be recharged to MET Income received by MET lo be refunded lo OSG Income received by OSG to be refunded lo MET 29,015 110,8571 116,5631 8,173 9,768 Payments made by MET lo OSG 439,940 OverpayTnent to carry forward at 31 December 2020 4,173 31