Charity number: 1058933 THE MERESIDE EDUCATION TRUST TRUSTEES. REPORT AND FINANCIAL STATEPJJENTS FOR THE YEAR ENDED 31 DECEMBER 2021 THE MERESIDE EDUCATION TRUST CONTENTS Page Reference and administrative details of the Charfty, tts Trustees and advisers Trustees. report Independent audltovs report on the financlal statements Consolidatod ststernent of flnancial activities Consolidated balance sheet 10 Charty balance sheet Consolidated ststement of cash flows 12 Notes to the financial statements 13-35 THE MERESIDE EDUCATION TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustaes Mr L Baldwin Mr M Chadwick Mr K Devenish MT M Dunbar Mr J Hayward Mr M Hutchins Mr C Lewis Mr N Simpson MrAWells Mrv Wells Charity reglstered number 1058933 Principal officg Hartford Manor Greenbank Lane Northwich CW8 1HW Chief Executlve o￿l¢er Mr A Wells Independent auditor Crowe U.K. LLP Fourth Floor Sl James House Sl James Square Chettenham GL50 3PR Bankers Nalwest Bank plc AIITincham Cheshire WA14 1DB Page 1 THE MERESIDE EDUCATION TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees of Mereside Education Trust present their 8nnual report and audited accounts for the year ended 31st Deeember 2021 and confirm they comply with the requirements of the Charities Act 2011, the Trust deed. FRS102 and the Charities SORP IFRS 1021. Ob ecttves and Activities The charitable objects of the Trust are the advancement of the education of children and young people through the provision of education sites and premises. The objects also incluLle any other charitable purpose for the benefit Df the worldwide Christian fellowship known as the PtymoLrth Brethren Christian Church. The Trust's main activrfties are the support of Brethren schools and the proM5ion of grants lo organisalions that support children and families. In furtherance of tts objects, the Trust provides the premises under formal lease for an independent school based in Northwich, which has been run by Oneschool Global UK IOSGUKI. The Trust also provides grant funding and other finan¢ial support lo OSGUK at the discretion of the Trustees in order to enablè OSGUK to provide a well balanced education al primary and secondary levels, for children and young people whose parents appreciate the Christian ethos. Success is measured in terms of th& provision of appropriate facilities lo OSGUK whilst minimising expenditure. This in turn, frees up funds fDr raising standards of education for all concerned and for the improvèrnenl of facilities for pupils and staff alike. The Trustees have referr￿ to the guidance contained in the Charty Commission's general guidance on public benefit and have regard to rt when reviewing their aims and objectives, and in planning their future activitiès. In particular they consider how planned activities will contribute lo the educational aims and objectives they have sèt. Volunteers are an integral part of the ¢ommunty 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 Govemanca and Mana ement Mereside Education Trust is conslitLrted by a Deed of Trust dated 07 April 1995, amended 26 August 1996, 20 March 1997 and 18 December 2008 and is registered wrf(h the Charity Commis$ion for England and Wales. The Trustees who served during the year and Sin￿ the year end arg set out on page 1. None of the Truslegs, nor any person connected with them, received any remuneration from the Trust in the year ended 31$1 December 2021 (year ended 31st De￿mber 2020 £nill. 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 Char-ty has ttvo wholly owned subsidiary companies, Quanlo Enterprise Ltd Icompany Number 080686451. which undertakes trading activf(ies and Hartford Investments Ltd (Company number 102799691, which owns the school p￿MiseS in Northwich. All dislribulable profits from Quanto Enterprise Ltd ale donated to the Trust. The results of Quanlo EnterpTrse Ltd and Hartford Investments Ltd have been consolidated with those of the Trust in arder to produce the consolKlaled financial slalements which follow. The Trustees have examined the major strategic, business and Operational risks that the Trust faces. The Trustees are 5ali5fied that the major risks identified have been adequalety mitigated where necessary. 11 is recognised that systems can only provicle reasonable bul not absolute assurance that major risks have been adequately managed. Page 2 THE MERESIDE EDUCATION TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 nrficant Activitles Throughout the year the Trust has continued lo provide educational premises in support of the educational activrf(ies of OSGUK. Flnaneial Review In the year ended 31st December 2021 the Group reported a net deficit of £83,73412020 deficit of £1,833,716). All funds are unrestricted. The Trust is supported and financed by profrts from ils trading subsidiary Quanlo Enterprise Ltd plus other ad hoc donations. In the year ended 31st December 2021 the Trust received £21,020 from Allerton Education Trust and £1,191 from DEVA Education Trust which is now dormant. The Trust also received £86,400 from the Grace Trust. The Trust's fundraising events principally operatè within the Brethren communty 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 actNf(ies on behaW of the trust. The Trustees have exchanged contracts on the old school site in Stockport to purchase the pioperty for £2.65m. Completion has a delay clause of between 6 to 12 months, concluding March 2023. The Hartforcl Manor site Comprises thè Manor House from which the school opèrates, an adjacent derelict cottage and approximately one acre of unused car parking area. The Trustèes believe that the disposal of the cottage and l or surplus car park could raise additional funds wilhoul causing major disruption to the operation of the school, although no potential buyer has yet been sought. Hartford Manor is held at a carrwng value of £1.5m. The Manor has b*n valued in September 2021 al £2.8m. The Trustees intend lo transfer Hartford Manor up into the Trust al the earliest opportunity as part of the structural simplification of the Group. At 31 December 2021 the Trust and Group had substantial deffcit funds of -£2.740.391 12020.. deficit funds of 2.656,6571. The long lemi aim for the Trust has been to hold sufficient reserves to meet three month's operating costs and lo have sufficient funds lo repay rts loans as ￿quIred. In the short to medium term, the Trustees hope that the sale of the old school site in Stockport will help to alleviate the shortfall in funds and the sale of excess land and l or builcsings al the Hartford Manor site is also under consideration. The Trust continues to have numerous offers of long term loan sUPPOrt frDm "stakèholders" in the Tmsl li.e.' graduated students and their parents or grandparenlsl which COU￿ be used lo offset other loans requiring repayment. The Trust￿$ hope lo retum to a net assets position by 2023. As detailed in the rèference to going con¢em in the accounting policy and after making appropriate enquiries, the Trustees have a reasonablè expectation that the charty has adequate resources to continue in operational existence for the foreseeable fiJlure_ For this reason, il continues lo adopt the going con￿rn basis in preparing the financi?1 stslements. Further delai15 regarding the adoption of the going concem b&8is can be found in the Accounting Policies. Plans For Future Periods The Trustees plan lo continue to support OSGUK ID provide a quality and delwer a consistent and high levèl of educational experience and outcome for all students and staff, in accordance wtth the Trust's ethos and values. Page 3 THE MERESIDE EDUCATION TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Statfrment of Trustees, Res onsibilities The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (Untted Kingdom Generally Accepted Accounting Practice). The law applicable lo charrf(ies in England and Wales requires the Trustees to prepare financial slalements for each financial year which gNe a true and fair viw of the state of affairs of the charity and the group and of the incoming reSoUr￿S and application of TeSOur￿ of the charitable group for that period. In preparing these financial statements, the Trustees are required lo.. select su¢t8ble accounting policies and then apply them consistently., observg thg methods and principles in the Charf(ies SORP,. make judgements and estimates that are reasonable and prudent,. Slate whether applicable aeeounting standards have been followed, subject to any material departures disclosed and explainecl in the financial slalements., prgpare the financial statements on the going concern basis unlass it is inappropriate lo presume that the charity and group will continue in busines5. The Trustees are responsible for keeping proper accounting records that disclose wrth reasonable accuracy al any time the financial posrtion of th2 charity and the group and enable them to ensLJre that the financial slalements Comp￿ with the Charities Act 2011, the Chartty (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible fpr safeguarding the assets of the charity and the group and hence for18king reasonable steps for the prevention and detection of fraud and otheT irregularities. Approved by order of the members of the board of Trustees and signed on their behalf by.. Mr N Simpson Trustee Dale.. Page4 THE MERESIDE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MERESIDE EDUCATION TRUST Opinion We have audited the financial statements of The Mereside Education Trust Ithe 'parenl charity'l and its subsidiaries Ilhe 'group'l for the year ended 31 December 2021 which comprise the Consolidated 5talemenl of financial acliviliès, the ConsDlidaled bslance sheet, the Charty balancè sheet, the Consolidated slalement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framewort( that has been applied in their pr¶tion is applicable law and Unrted 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 Pradice). The financial slalements have been prepared in aecordance with Accounting and Reporting by Charrties preparing IheiT accounts in accordance with the Financial RepDrting Stand8rds applicable in the UK and Republic of Ireland IFRS 1021 in preference lo thè Accounting ancl Repo￿ng by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations bul has been withdrawn. This ha5 been done in order for the accounts to provide a true and fair view in accordance with the Generally A￿epted Accounting practi￿ effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements.. give a true and fair view of the slate of the Group's and of the parent charitys affair5 as al 31 December 2021 and of the Group's incoming resources and application of resources. including ils income and expenditure for the year then ended", have been properly prepared in accordance with Unf(ed Kingdom Generally A￿pIed A¢wunling Practice., and have been prepared in accordance WFth the requirements of the Charities Aet 2011. Basls for opinion We conducted our audi( in accordancg wf(h International Standards on Auditing IUKI IISAS IUK)) and applicable law. Our responsibilities under those standards ar& further described in th? Auditorfs ￿spOnSibl1111es for the audit of the financial statements se¢tion of our report. We are independent of the Group in accordance wrth the ethical requirements that are relevant lo our audtt of the financial statements in the United Kingdom. including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibill(ies in ac¢ordanGè wtth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Page S THE MERESIDE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OFTHE MERESIDE EDUCATION TRUST ICONTINUEDI Conclusions rèlating to going concern In auditing the financial stalemenls, we have concluded that the Trust￿, use of the going con￿rn 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 rèlating to events or conditions that, individually or cDlleclNely, may cast significant doubt on the Group's or the parent charty's ability to continue as a going concern for a period of at least kne￿e months Irom when the financial statements are aulhorised for issue. Oui responsibilities and the responsibilfiies of the Trustees wth respect lo going concern are described in the relevant sections of this report. The going concem basis is appropriate du& to the ongoing donations received from the Subsidiary Quanlo Enterprise Ltd and the agreed sale of the assets held for sale (see nol& 191 post year encl for £2.6m. The Group's Hartford Manor property has recentty been valued al £2.8m as of 31 December 2020. Other information The other infomiation Comprises the infomiation included in the Annual report other than the financial statements and our Audilorfs report thereon. The Trustees are responsible for the other information Contained wthin the Annual report. Our Dpinion on the financial ststements does not cover the other infomatiDn and, except lo the extent otherwise explicitly stated in our report, we do not express any forrn of assurance conclusion Ihereon. Our responsibility is to Tèad the other information and, in doing so, wnsider whether the other information is mate￿al￿ inconsislenl with the financial statements or our knowledge obtained in the coursg of the audit, or otherwise appears to be materially misstated. If we identfy such material inconsistencies or apparent material misstatements, w& are required lo dèleminè whether this gives rise to a material misststement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material rnisslalement of this other infomiation, we are required to ieport that fact. We have nothing to report in this regard. Matters on whlch we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Re9ulations 2008 requires us to report to you if, in our opinion: the infomialion given in the Trustees, report is inconsislenl in any materi41 respect wf(h the financial slalements-, or the parent Charty ha5 not kept sufFicienl accounting records., or the parent Charty financial slalemenls are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. Responsibilttie5 of trustees As explained more fulty in the Tnjstees, responsibilities slalemenl, the Trustèes are responsible for the preparation of the financial statements which gwe a truè and fair Vi￿, and for such inleTnal control as the Trustees determine is necessary ID enable the pffparation of financial slalemenls that are free from material misstatement, whether due to fraud or error. In preparing the financial stalemenls, the Trustees are responsible for assessing the Group's and the parent Page 6 THE MERESIDE EDUCATION TRUST INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE MERESIDE EDUCATION TRUST ICONTINUEDI charitys abilty lo continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the Trustees e(ther intend lo liquidate the Group or the parent charity or to ￿ase operations, or have no realistic alternative bul lo do so. Auditorf5 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 eff9Ct thereunder. Our objectivès are lo obtsin reasonable assurance aboLrt whether thè financial statement5 as a whoie are free from material mi$stal&ment, whether due to fraud or èrror, and to issue an Auditorfs report that includes our opinion. ReasDnable assurance is s high level of assurance, but is not a guarantee that an audit condu¢led in accordan￿ with ISAS IUKI will always detect 8 rnalerial misstatement when il exists. Misststements can arise from fraud Dr error and are considered material it, individually or in the aggregate, they could reasonabty be expected lo influence the economic decisions of users taken on the basis of these financial slalements. Irregularities, including f￿Ud, are instances of non-complian￿ with laws and regul*ions. We dosign prOc￿ureS in line with our re5ponsibilrf(ies, outlined above, lo detect material mrsslalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of delecling irregularities, including fraud is detailed bèlow.. We obtained an understanding of the legal and régulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect Dn the determination of rnalerial amoun15 and disclosures in the financial slalemenls. The laws and regulations we considered in this cDntext were the Charities Ad 2011 together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. Auditing standards limrt the required audrt procedures ttr identty non-compliance with these laws and regulations lo enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identffied the greatest risk of material impact on the financial statements frtsm irregularlcies, including fraud, to be wrthin the override of controls by management. Our audit procedures ID respond to these risks included enquiries of managèment, and the Trustees about their own idenlificalion and assessment of the risks of irregularrfcies. sample testing on the posting of journals, reviewing accounting estimates for biases and reviewing regulatory correspondence. C￿]ng to the inherent limitations of an audit, ther& is an unavoidable risk that we may not have detected sorne material misststemenls in the financial slalemenls, even though we have property planned and perfc)rmed our audit in accordance with auditing Standards. For example, the further removed non-compliance with laws anrj regulations lirregulariliesl is from the events and transactions reflected in the financial statèments, the less likely the inherentty limtied procedures required by auditing standards would identify (i. In addition, as with any audit, there remained a higher risk of non-deleclion of irregularities, as these may invofve ¢ollusion. forgery, intentional omissions, misrepresentslions, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected lo dele¢l nonwcompliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the FinancTal Reporting Council's website at.. www.frc.o .ukJauditorsres Audiloff s repDrt. onsibililies. This description fomis part of our Paye 7 ## **THE MERESIDE EDUCATION TRUST** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MERESIDE 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: 28 October 2022 Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 8 THE MERESIDE EDUCATION TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 As restated Total funds 2020 Unrestrictèd funds 2021 Total funds 2021 Note Income from: Donations and legacies Other trading activities Investments Other income 115,361 1.359,302 115.361 1,359,302 262,207 1,064, 792 74 39,327 39,327 2, 677 Total income 1.513,990 1,513,990 1,329. 750 Expendlture on: Raising funds Charitable activrties Other expendf(ure 1,163,371 434,353 1.163,371 434,353 915, 109 258,230 229,627 10 Total axpenditure 1.S97,724 1.597,724 1,402,966 Net expenditure before net lossès on investments Nel losses on investments 183,7341 183.7341 f73,216J {1,760,500) 16 Net movemgnt In funds 183,7341 183,7341 (1, 833,716) Reconclllatlon of funds.. Total funds brought fO￿ard Net movement in funds 12.656,6571 12.656,6571 f822.941) 183.7341 183,7341 (1.833, 776J Total funds carried forward 12,740,391) 12,740.3911 (2,656,657J Page 9 THE MERESIDE EDUCATION TRUST CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021 As restatgd 2020 2021 Note Frxed asseis Tangible assets 15 2,145,074 2, 106,505 2,145.074 2, 106,505 Current assets Stocks Debtors.- amounts falling du8 Wlthin one year Investments 17 99,614 40,255 417,850 281.021 99, 730 24,361 417,8 42g, 161 18 19 Cash al bank and in hand 838,740 970,502 Credi(ors'. amounts falling due within one ar 20 13,803.2361 (3,329,967) Net current liabilities (2,964,496) (2.359,465) Total assets less current liabilities 1819.4221 (252,960) Credrtors.. amounts falling due after more than one year Deferred tax 21 (1,916,000} 14,9691 (2,399,580) (4,1 17) Total net assets 12,740,391) (2, 656,657) Chartty funds Unrestricted funds 22 12,740,391) (2,656,657) Total funds 12.740,3911 (2, S56, 657) The financial statements were approved and aulhorised for issue by the Trustees and signed on their bÈhaK by.. Mr N Simpson Trustee Date.. The notes on pages 13 to 35 fom part of these financial statements. Page 10 THE MERESIDE EDUCATION TRUST CHARITY BAL4NCE SHEEr AS AT 31 DECEMBER 2021 As Trstaled 2020 2021 Note Fixed assets Tangible assèts Investments 15 16 588.133 202 588. 733 202 588,335 588,335 Curr9nt assets Debtors.. amounts falling due within one year Investments Cash al bank and in hand 18 19 7.827 417,850 147,323 5,173 417,850 305,386 573,000 728,409 Crèditors.. amounts falling due within ong year 20 13,590.5311 (3. 160, 695) Net Current liabilities 3.017,531) (2.432.286J Total assets less current liabllltles 12,429.1961 11.843,951) Debtors.. Smounls falling due after more than one year Creditors.. amounts falling due after more than one year 1,895,619 1.895, 619 21 11.916,0001 (2,399,580J Total net assets 12,449,577 (2,341,912) Charity funds Unrestricted funds 12,449.5771 (2,347,912) Total funds 12,449,577) f2,347.912J The financial statements were approved and authorised for issue by the Trustees and signed on their behaw by.. Mr N Simpson Trustee Dste.. 26 jo. IQLL The notes Dn p es 13 10 35 fomi part of these ffnancial statements. Page11 THE MERESIDE EDUCATION TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 As restated 2020 2021 Cash flows from operating activities Net C8sh used in operating activ(ties {18,8741 (27,898) Cash flows from Investing activities Interest and divKlends Purchase of tangible fixed assets Correction tc? 2020 cash flow T4 {77,2861 (6.874) (48.231J Net cash used in investing activiti 177.2861 155,0311 Cash flows from financing activities Repayments of borrowing Cash inflows from new borrowing 1678,5801 626,600 (203,000) 581,OL Net Gash (used inllprovided by flnancing activities 151.9801 378.000 Change in cash and cash equivalents in the year Cash and cash equivalents al the beginning of the year 1148,1401 429.161 295,071 134,090 Cash and cash equivalents at the end of the year 281.021 429, 161 The notes on pages 13 to 35 fom part of these financial slalemenls Page 12 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 General information The Mereside Education Trust is an unincorporated charity (registered number 10589331 registered in Englancl and Wales. The registered address is Hartford hAanor, Greenbank Lane, Northwich, CW8 1HW. Ac¢ountlng policies 2.1 Basis of preparation of financial statements The financial slalemenls hav& been prepared in accordan￿ with the Charities SORP IFRS 1021 Accounting and Reporting by Charrfcies.. Statement of Recommended Practice applicable to char(ties preparing their accounts in a¢cordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffe¢tive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republie of Ireland IFRS 1021 and the Charities Act 2011. The financial ststements have been preparecl to gNe a 'lrue and faif view and have departed from the Charrties {A¢cDunls and Reports) Regulations 2008 only to the extent required to provide a 'lnJe and fairf view. This departure has involved following the Charities SORP (FRS 1021 published in October 2019 rather than the Accounting and Reporting by Chattties.. Slalement of Recommendèd Practice effective from 1 April 2005 which has since been withdrawn. The Mereside Education Trust meèts the definition of a public benefrt entity under FRS 102. Assets and liabilities are inrtialty recognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy. The Consolidated ststemenl of financial aclNities (SOFA} and Consolidated bafance sheet consDlidale the financial slalemenls of th2 Charty and its subsidiary undertaking. The results of the subsidiary are ¢onsolidaled on a line by line basis. The Charity has also taken advantage of the exemption available to a qUalI￿n￿ entty in FRS 102 from the requiremènt to present a Charity onty slalemenl of cash flows and certain rlisclosures about the chartys financial instruments within the consolidated financial ststements. No separate SOFA has been prepared for the Charty alone. 2.2 Going con¢em The Trustees are of the opinipn that there is sufficient funding in place to continue adivities of the charity. Therefore, the accounts have been prepared on a going concern basis. The Trustees consider the Trust lo be a going concern due to the ongoing donations recewed from the subsidiary Quanlo Enterprise Ltd, the sale of th& assets held for sale (see note 191 post y8ar &nd for £2.6m, and the HartFord ManDr property, that is owned wrf(hin the group, will be transferred lo the Charity in the future. This has recenlty been valued al £2.8rn as of 31 December 2020. Page 13 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 2.3 Income All income is recognised once thè Charity has enlillement to the income. it is probable that the income will be re￿iVed and the amount of income recewable can be measured reliably. The recognition of income from lega¢ies is dependent on establishing entitlement, the probability of receipt and th2 abilty lo estimate with sufficient accuracy the amount receNable. Evidence of entitlement to a legacy exists when the Charty has sufficient evidence that a gift has been left to them Ilhrough knO￿edge of the existence of a valid will and the death of the benefactor) and the execLrtor is satisfied that the propety in question wll not be required to sa115fy claims in the estate. Receipt of a legacy must be recognised when il is probable that rt will be received and the fair value of the amount receivable, which will generalty be the expected cash amount to be distribLrted to the Charity, can be reliab￿ measured. Grants are included in the Consolidated statement of financial actNities on a recewable basis. The balan￿ of income received for spècrfic purposes but not expended during the period is shown in the reievant 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 enlillemenl occurs before income is recewed, the income i8 accrued. other income is rgcognised in the periocl in which it is receivable and lo the extent the goods have been provided or on completion of the service. 2.4 Expenditure Expenditure is recognised once thère is a legal or conslruclive obligation to transfer economic benefit lo a third party, it is prDbable 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 expendrture incurred by the Group lo raise funds for its charitable purposes and includes costs of all fundraising activities &venls and non-charilable trading. Expendfture on ¢harf(able activities is incurred on diredly undertaking the actmties which further the Group's objectives, as well as any assocwted support costs. All expenditure is inclusive o)f irrecoverable VAT. 2.5 Interest receivable Interest on funds held on deposrt is includecf when receivable and the amount can be measured reliabty by the Group., this is normalty upon notification of the interest paid or payable by the inslituliDn with whom the funds are deposited. 2.6 Tangible fixed a5$ets and depreciation Tangible fixed assets costing £500 or moTe 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 al cost. After re¢ognition, under the cost model, tangible fixed assets a￿ measured at Cost less accumulal&d depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixèd asset into its intended wDrking ¢ondition should be included in the measurement of cost. Page 14 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuad) 2.6 Tangible fixed assets and dèpreciation Icontinuedl Depr?ciation is charged so as lo allocate the wsl of tangible fixed assets less their residual value over their estirnated useful lives, Depreciation is provided on the following basis.. Freehold propety Freehold improvements Plant and equipment Computer equipment 20 200 200 330 2.7 Investments Fixed asset investments are a form of financial instrument and are inilialty r8cognised al their transaction cost and subsequently measured al fair value * the Balance sheet dale, unless the value cannot be measured reliably in which case it is measured al cost less impaimient. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossèsl on investments, in the Consolidated statement of financial activthes. 2.8 Stocks Stocks are valued at the lower of ¢osl and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of frxed and variable overheads. 2.9 Debtors Trade and other deblDrs ale recognised al the settlement amount after any trade discount offered. Prepayrnents are valued al the amount prepaid nel of any trade discounts due. 2.10 Cash at bank and in hand Cash al bank and in hand includes cash and short-terni highly liquid investments with a short maturity of three months or less from the dale of acquisition Dr opening of the deposit or similar account. 2.11 Liabilities Liabilrties and provisions are retognised when there is an obligation al the Balance sheet date as a result Df a past event, il is probable that a transfer of economic benèfit will be required in sèttlement, and the amount of the settlement can be estimated ￿lIablY. Liabilities are rewJnised at the amount tha the Charty anticipates il wll pay lo settle the debt or the amount it has recewed as advanced payments for the gO￿S or services it must provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material. the provlsion is based on the present value of those amounts. discounted al the pre-t8x discount rale that refiects thè risks specffic lo the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost. Page 15 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 2.12 Deferred taxation Full provision is rnade for deferred tax assets and liabiif(ies arising from all timing drfferences befvjeen the recognibon of gains and losses in the financial statements and recognition in the tax computstion. A net deferred lax asset is recognised only rf il can be regardÈd as more likely than not that there will be suitable taxable surpluses from which the future reversal of the undertying timing differences can be deducted. Deferred tax assets and liabilities are calculated al the tsx rates expected lo be effectNe al the lime the liming differences are expected lo reverse. 2.13 Financlal Instruments The Group only has financial assets and financial liabil((ies of a kind that qualffil as basic financial instruments. Basic ffnancial instruments are initialty ocognised al transaction value and subsequèntly measured al their settlement value with the exception of bank loans which are SLJbsequently measured at amortised cost using the effectwe interest method. 2.14 Fund accountiftg General funds are un￿$t[iCted fvnds whi¢h are available for use al the discretion of the Trusteès in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by thè Group for particular purposes. The costs of raising and administering such funds are ch8iged against the specific fund. The aim and use of èach restricted fund is set out in the note5 to the financial ststemenls. Investment income, gains and losses are allocated lo the appropriate fund. Page 16 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from donations and legacies Restri¢ted Unrestricted funds funds 2021 2021 Total funds 2021 Donations Legacies Grants Income from olh&r Trusts 1,997 4,753 86,400 22,211 1,997 4,753 86,400 22,211 115,361 11S,361 Income 01 £21,020 has been recieved from the Allerton Education Trust and £1,191 from DEVA Education Trust As restated Total funds 2020 Restricted Unreslricted funds funds 2020 2020 Donations Grants 3,600 136, 795 121.872 140,395 121.872 3, 600 258, 607 262,2Q7 Income from other trading activities Income from non charftsble trading activities Unrestricted funds 2021 Total funds 2021 Trading income from subsidiaries 1,359,302 1.359,302 Page 17 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from other trading activities Icontinued} Income from non charitable trading actlvities Icontinuèdl As Trstated Total fvnds 2020 UntrEstricted funds 2020 Trading income from subsidiaries 1,064, 792 1,054, 792 Investment income Total funds 2021 Bank interest Unrestncl8d funds 2020 Total funds 2020 Bank interest T4 74 Other incoming resources Unrestricted funds 2021 Total funds 2021 Other income 39,327 39,327 Page 18 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Othèr incoming resources Icontlnuedl As ￿Sta[ed Total funds 2020 Unrestricted fvnds 2020 Other income 2, 677 2,6fT Expenditure on ralslng funds Other trading expons9S Unrestricted funds 2021 Total funds 2021 Cost of sales Adrninistration expenses Interest payable Administration depreciation 1,058,342 88,198 110,OOD) 26,831 1,058,342 88,198 110,0001 26,831 1,163,371 1,163,371 Page 19 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Expenditure on raising fund5 Icontinuedl Other trading expenses Icontinuedl As restated Total funds 2020 Unrestricted funds 2020 Cost of sales Administration expenses Interest payable Adminislralion depreciation 772,546 56,155 10,000 14,536 772,546 56.155 10,000 14.536 853,237 853,237 Investment management costs Total funds 2021 Inveslrrent man8gem&nt costs Unrestricted funds 2020 Total funds 2020 Investment mangement costs 61,872 61,872 Page 20 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of expenditure on charitable a¢tlvities Summary by fund type Unr&stri¢ted funds 2021 Total 2021 Charitable activities 434.353 434,353 Un￿StriCted funds 2020 Total 2020 CharTtable actwities 258,230 258,230 Page21 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECErirBER 2021 10. Other expendlture Total funds 2021 Other expendtture Restricted Unrestiycted funds funds 2020 2020 Total funds 2020 Oneschogl Global UK transfer 3,600 226,027 229,627 11. Analysi$ of expenditure by actlvities A¢tivitl&s undertake directly 2021 Support Costs 2021 Total funds 2021 Charitable actiVTties 181,500 252,853 434,3S3 Activities undertaken directly 2020 Support costs Total funds 2020 2020 Charitable actNf(ies 44,110 214, 12Q 258,230 Page 22 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 11. Analysi5 of expgnditure by actNlties Icontinuedl Anatysis of dlrect Costs Total funds 2021 Total fvnds 2020 Staff costs Termination payments Donation 40,010 4,100 181,500 181,500 44,110 In 2021 donations were made lo OSGUK. staff costs are nil in 2021. The Mereside Education Trust is run entirely by volunteers. Analysis of support costs Total funds 2021 Tot81 funds 2020 Premises costs Adminislralive costs Finance ¢Dsls Professional charges Governan￿ costs Sundry costs 29,808 21,962 165.962 21,962 5,986 7,173 211 5, 105 196,333 3, 138 9.333 252.853 214, 120 12. Audltorfs remuneration The aud((orfs remuneration amounts to an auditor fee of £5,000 (2020- £5,530), and non-audi( services of £2,25012020- £ -1. Page 23 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 13. Staff costs Group 2021 Group 2020 Charity 2021 Ch8rify 2020 Wages and salaries Social securty costs Pension (x)ntributions Termination payments 29,687 3,294 T.029 4,100 29,687 3.294 7,029 44.110 44,110 Tha average number of petsons employed by the Charrty during the year was as follows.. Group 2021 No. Group 2020 No. Charity 2021 No. Charity 202Q Teaching Staff The number of employees who$9 employee benefrts lexcluding employer pension costs) exceeded £60.000 was.. Group 2021 No. Group 2020 No. In the band £60,001- £70.000 14. Trustees. rernuneration and expenses During the year, no Trustees received any remuneration or other benefrts (2G20- £NILJ. During the year ended 31 December 2021, no Trustee expenses have been incurred (2020- £NIL). Page 24 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 15. Tangible fixed assets Group Freehold property and improvements Plant and eqLsipment Computer equipment Total Cost or valuation Al 1 January 2021 Additions 2,225A99 50,208 66.347 27.078 8,687 2,300.533 77,286 At 31 Decernber 2021 2,275,707 93,425 8,687 2,377.819 Depreciation At 1 January 2021 Charge for the year 157,596 20.010 31,057 17,234 5,375 1.473 194,028 38,717 At 31 Detsmber 2021 177,606 48.291 6,848 232,745 Net book value At 31 December 2021 2,098.101 45,134 1,839 2.145,074 Af 31 D8G8mber 2020 2,067,903 35, 290 3,312 2, 1LIS.505 The propety held within Hartford Investments Limited is Harfford Manor. This is held al a carrying valuè of £1.5m. Hartford Manor has been valuèd in September 2021 at £2.8m as al 31 December 2020. Lending of £2.4m has bèen secured on Hatford Manor in 2021 and 2020, see note 21. Page25 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 15. Tangible fixgd a$5ets Icontlnuedl Charity Property improvements Cost or valuation At 1 January 2021 739,786 At 31 D￿rnber2021 739,786 Depreciation At 1 January 2021 151,653 At 31 De￿rnber 2021 151,653 Net Ix)ok value At 31 De¢ember2021 588,133 At 31 December 2020 588, 133 The charity only blf values have been restated. The costs abov9 comprise the repurposing and refurbishment costs of Hartford Manor which is ownèd by the trading subsidiary Hartford Investments Lirniled. These costs were borne by The Mereside Education Trust wrth a view to occupying the premise5 under a d&emed lease agreement by virtue of ils parent I subsidiary relationship with the Company. On 1 January 2020 Hartford Investments Lirnf(ed entered into a leas& agreement for Hartford Manor with Oneschool Global UK, effectively ceasing its deemed lease with The Mereside Education Trust. Page 26 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 16. Fixed asset investments Investments in Subsidiary Companies Cost or valuation Al 1 January 2021 3,174,625 At 31 December 2021 3,174,625 Impairn8nt At 1 January 2021 3,174,62S At 31 December 2021 3.174,625 Investments in subsidiary ¢ompanies Charity Cost or valuation At 1 January 2021 3,174,627 At 31 December 2021 3,174,627 lrnpairment At 1 January2021 3,174.42S At 31 December 2021 3,174,425 Net book value At 31 December 2021 202 At 31 December2020 202 The brought forward balances have been restated and the investment impaired in the prior year by a further £1,659,887. The investment in subsidiaries is equal lo the investh)enl in the share capital. Page 27 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 16. Fixed asset Investrnents (continued) Principal subsidiarfes The following were subsidiary undertakings ot the Charity.. Names Company number Registerèd office or princlpal Principal activity place of business Quanto Enterprise Ltd 08068645 Crows Nest Business Cenlre, Tattenhall Road, Newton-By- Tattpnhall, Chester. Cheshire, CH3 9BD 10279969 CIO Montacs, International Letting ancl operating House Kingsfield Court, Chester of own real est8te Business Park, Chester. Cheshire, England, CH4 9RF Sale of retail goods Hartford Investments Umited The financial results of the subsidiaries for the year We￿.. Names Income Expenditure ProfitllLossl I Surplusl IDefi¢itl for the year Net assets Quanlo Enterprise Ltd Hartford In￿stments Limi(&d 1,354.302 5,000 1,343.777 12.4081 10,525 7.408 126,010 1416,6201 17. Stocks Group 2021 Group 2020 Stock 99,614 99,130 18. Dèbtors Charity 2021 Ch8rily 2020 Due after more than one year Amounts owed by group undertakings 1,895.619 1,895,679 Amounts due from subsidiary companies after more than one year eomprise an interest free loan made by The Mereside Education Trust lo Hartford Investments Ltd under the term5 of a share purchase agreement on 21 September 2018. Page 28 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 18. Debtors Icontinuedl Group 2021 Group 2020 Charity 2021 Charity 2020 Due wtthin one year Trade debtors Other debtors Prepayments and accrued income 26,926 8,156 5,173 7,820 11,358 5,173 1,000 1,654 5.173 5. 173 40,255 24,367 7.827 5,173 19. Current asset invesknents Current investments cornprise land at Tennyson Close and the old school p￿miseS on Didsbury Road, both in StDckport. During the year ended 31 December 2019 the schDoI relocated from the Didsbury Road slte and the decision wss taken lo market it for sale. In order lo maximise the sales revenuè for the Trust, the Trustees made a planning application for residential use, the land in Tennyson Close forming part of that application. The carrying value is based on a valualoin by an independent professionally qualified value wrf(h re￿nt experience in the location and classrfication of the investment propety being valued. Group 2021 Gmup 2020 Charity 2021 Charity 2020 Properties held for sale 417,850 417,850 417.850 417,850 The carrying value of Tennyson Close, Stockport is £20,000 and the carrying value of Didsbury Road. Stockport is £397,850. The assèts have been sold post year for £2.6m. Contracts have been exchanged and deposits paid. Completion is expected in early 2023. Page 29 THE MERESIDE EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 20. Creditors: Amounts falling due withln one year Group Group As restated 2021 2020 Charlty Charity As ￿$t￿ted 2021 2020 Loans Other loans Trade creditors Amounts owecl to group undèrtakings Other taxation and social securty Other creditors Accruals and deferred income 3,417,600 125,000 81,242 3,041.(K)Q 70,000 63, 543 2,437 8, 749 29,352 114,886 3.417,600 3,04Y.000 1,881 12,000 2,963 2,437 4,259 17,762 157,373 1,677 157,373 409 113.886 3,803,238 3,329,967 3,590,S31 3, 160,695 21. Creditors: Amounts falling due after morè than one year Group 2021 Group 2020 Charity 2021 Charity 2020 Loans 1,916,000 2,399,580 1,916,000 2,399,580 Loans falling due wrf