2021-07-31-accounts - Formission CIO

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CHARITY REGISTRATION NUMBER: 1059383

ForMission ClO Financial Statements 31 July 2021

HARRISON BEALE AND OWEN LIMITED Chartered accountants & statutory auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

ForMission ClO

Financial Statements

Year ended 31 July 2021

	Page
Trustees' annual report	1
Independent auditor's report to the members	4
Statement of financial activities	8
Statement of financial position	9
Statement of cash flows	10
Notes to the financial statements	11
The following pages do not form part ofthe financial statements
Detailed statement of financial activities	22
Notestothedetailedstatementoffinancialactivities	24

ForMission ClO

Trustees’ Annual Report

Year ended 31 July 2021

The trustees present their report and the financial statements of the charity for the year ended 31 July 2021.

Reference and administrative details

Registered charity name	ForMission ClO
Charity registration number	1059383
Principal office
The trustees
	Rev Dr	MacRobert
	RA Baylis
	S Bandawa
	CJ Cole
	V Atiase
	DL Fittro
Auditor	Harrison Beale and Owen Limited
	Chartered accountants & statutory	auditor
	Highdown House
	11 Highdown Road
	Leamington Spa
	Warwickshire
	CV311XT

Structure, governance and management

The trustees present their report with the financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

During 2020-21, two individuals joined the Board of Trustees, and the Chair retired, to be replaced by the Vice-Chair. The Board met on six occasions.

In March 2021, ForMission CIO's Constitution was revised and the new document was submitted to the Charity Commission.

ForMission ClO

Trustees’ Annual Report (continued)

Year ended 31 July 2021

Objectives and activities

ForMission's main focus is the provision of Christian education and training. Its charitable objectives are defined in its governing document as:

(1) To advance the Christian religion in the United Kingdom, Europe and overseas in particular but not exclusively by the study of the doctrines of the Christian faith and by the provision and maintenance of a college or colleges.

(2) To advance education for the public benefit in the doctrines of the Christian faith in particular but not exclusively by assisting those who profess to be Christians in preparing for their ministry; and promoting or conducting research into the said doctrines and publishing or arranging for the publication of the useful results of such research.

(3) To relieve the poor, such and aged in need.

The charity is a Public Benefit Entity as defined by FRS 102. The trustees confirm that at all times in both planning and carrying out the charitable activities they have had due regard to the guidance notes on Public Benefit supplied by Charities Commission.

Achievements and performance

During the year ended 31 July 2021, ForMission agreed a new franchise arrangement with its validating body, Newman University, for ForMission students based in the UK. This arrangement exists alongside the pre-existing arrangement whereby the college's programmes are validated by the university. A small number of students are completing courses through the college's previous validating partner.

ForMission continues to deliver robust, well-respected academic programmes across several campuses, both in the UK and in mainland Europe. The college enjoys a reputation for innovation, diversity and a very positive student experience, at both undergraduate and postgraduate levels. ForMission works very closely with a number of partner organisations and these collaborations strengthen the college's position in the sector and increase its ability to recruit students. The college responded quickly to the Covid pandemic, making all of its teaching available online, and training its staff for such provision and developing the concept of an online campus.

Leadership and management of the college underwent significant restructuring, with the appointment of a new Principal and Accountable Officer in December 2020; expansion of the college's Senior Management Team; and appointments to teaching and administrative positions, including a new Director of Research, Director of Campus Development and Recruitment, and a Professional Services Manager. ForMission has made good progress preparing to reapply for registration with the Office for Students, in accordance with its 3-year Strategic Development Plan.

Vision and values

The new leadership of the college has articulated its vision as:

e To encourage and equip Christians to transform the world through missional presence and action. The College is a learning community of reflective practice, community engagement, leading-edge missional theology and participation in God's mission.

And its core values have been defined as:

e Being relational and missional; committed to diversity, excellence and service.

ForMission ClO

Trustees’ Annual Report (continued)

Year ended 31 July 2021

Financial review

The results for the period have been affected by a number of challenging factors, including a smaller than usual intake of students; changes in the availability of student finance for ForMission's programmes; and the impact of the Covid pandemic. These impacts were mitigated through a combination of restructuring; renegotiation of leases; and reduced travel and associated costs during lockdown. The net result is a deficit for the year of £5,500.

Trustees’ responsibilities statement

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

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

In preparing these financial statements, the trustees are required to:

e select suitable accounting policies and then apply them consistently;
e observe the methods and principles in the applicable Charities SORP;
° make judgments and accounting estimates that are reasonable and prudent;
° state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees’ annual report was approved on 24 May 2022 and signed on behalf of the board of trustees by:

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RA Baylis Trustee

ForMission ClO

Independent Auditor's Report to the Members of ForMission ClO

Year ended 31 July 2021

Opinion

We have audited the financial statements of ForMission CIO (the 'charity') for the year ended 31 July 2021 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

e give a true and fair view of the state of the charity's affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
° have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

ForMission ClO

Independent Auditor's Report to the Members of ForMission ClO (continuea)

Year ended 31 July 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our Knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding ofthe[charity] and[its] environment[obtained][in][the] course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

e the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
° adequate accounting records have not been kept; or
e the financial statements are not in agreement with the accounting records and returns; or
e we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

ForMission ClO

Independent Auditor's Report to the Members of ForMission ClO (continuea)

Year ended 31 July 2021

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management and those charged with governance, including an assessment of any key laws and regulations with which the charitable company must comply in the ordinary course of its operations.

Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole.

As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of noncompliance is greater where compliance with a law of regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

e Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
° Obtain an understanding of internal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
e Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

ForMission ClO

Independent Auditor's Report to the Members of ForMission ClO (continuea)

Year ended 31 July 2021

e Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.
e Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

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Harrison Beale and Owen Limited Chartered accountants & statutory auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

24 May 2022

ForMission ClO

Statement of Financial Activities

Year ended 31 July 2021

			2021		2020
		Unrestricted	Endowment
		funds	funds	Totalfunds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	-	-	—	221
Charitable activities	5	647,709	-	647,709	952,522
Investment income	6	-	-	—	45
Total income		647,709	-	647,709	952,788
Expenditure
Expenditure on charitable activities	7,8	653,209	-	653,209	993,246
Total expenditure		653,209	-	653,209	993,246
			7
Net expenditure and net movement	in
funds		(5,500)	-	(5,500)	(40,458)
Reconciliation of funds
Total funds brought forward		348,412	3,405	351,817	392,275
Totalfundscarriedforward		342,912	3,405	346,317	351,817

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 11 to 20 form part of these financial statements.

ForMission ClO

Statement of Financial Position

31 July 2021

		2021	2020
	Note	£	£
Fixed assets
Intangible assets	14	189,920	189,920
Tangible fixed assets	15	8,291	14,291
		198,211	204,211
Current assets
Debtors	16	174,828	157,766
Cash at bank and in hand		155,124	232,583
		329,952	390,349
Creditors: amounts falling due within one year	17	158,221	205,618
Net current assets		171,731	184,731
Total assets less current liabilities		369,942	388,942
Creditors: amounts falling due aftermore than one year	18	23,625	37,125
Net assets		346,317	351,817
Funds ofthe charity
Endowment funds		3,405	3,405
Unrestricted funds		342,912	348,412
Totalcharityfunds	20	346,317	351,817

These financial statements were approved by the board of trustees and authorised for issue on 24 May 2022, and are signed on behalf of the board by:

RA Baylis Trustee

The notes on pages 11 to 20 form part of these financial statements.

ForMission ClO

Statement of Cash Flows

Year ended 31 July 2021

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|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |£|£| |Cash|flows|from|operating|activities| |Net|expenditure|(5,500)|(40,458)| |Adjustments|for:| |Depreciation|of tangible|fixed|assets|6,000|6,000| |Amortisation|of|intangible|assets|-|29,000| |Other|interest|receivable|and|similar|income|-|(45)| |Interest|payable|and|similar|charges|6,469|6,865| |Accrued|(income)/expenses|(56,610)|26,475| |Changes|in:| |Stocks|-|253| |Trade|and|other|debtors|(17,062)|(24,126)| |Trade|and|other|creditors|9,213|111,174| |Cash|generated|from|operations|(57,490)|115,138| |Interest|paid|(6,469)|(6,865)| |Interest|received|-|45| |Net|cash|(used|in)/from|operating|activities|(63,959)|108,318| |Cash|flows|from|financing|activities| |Proceeds|from|borrowings|(13,500)|(13,500)| |Net|cash|used|in|financing|activities|(13,500)|(13,500)| |Net|(decrease)/increase|in|cash|and|cash|equivalents|(77,459)|94,818| |Cash|and|cash|equivalents|at|beginning|of year|232,583|137,765| |Cash|and|cash|equivalents|at|end|of year|155,124|232,583|

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Analysis of Cash and Cash Equivalent

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|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Cash|in|hand|-|688| |Notice|deposits-less|than|3|months|155,124|231,895| |Total|cash|and|cash|equivalents|155,124|232,583|

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The notes on pages 11 to 20 form part of these financial statements.

ForMission ClO

Notes to the Financial Statements

Year ended 31 July 2021

General information

The charity is a public benefit entity and a registered charity in England and Wales. The address of the principal office is Rowheath Pavilion, Heath Road, Bournville, Birmingham, B30 1HH.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities SORP (FRS 102) and the Charities Act 2011. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

3. Accounting policies

The financial statements are prepared in Sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue. However not all future events or conditions can be foreseen. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity's activities and the wider economy.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

e There will continue to be a sufficient number of students enrolling on the college's courses, both undergraduate and postgraduate.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

e Amortisation rates for the charity's course materials are incorrect leading to an overstatement of their carrying value.
e Course fees recoverable are not paid in full.

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

e Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
° Legacy income is recognised when receipt is probable and entitlement is established.
° Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
e Income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

e Expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
e Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
e Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the lease term ona straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Course materials

10% on a straight line basis over the estimated 10 year economic life

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Library	-	10% straight line
Fixtures, fittings and	-	10% straight line
construction
OfficeEquipment	-	20%straightline

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

Accounting policies (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Donations and legacies

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Donations
	Donations	-	-	221	221
5.	Charitable activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Educational activities	647,616	647,616	941,642	941,642
	Governments grants	—	—	8,027	8,027
	Other income	93	93	2,853	2,853
		647,709	647,709	952,522	952,522

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

6. Investment income

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Unrestricted|Total|Funds|Unrestricted|Total|Funds| |Funds|2021|Funds|2020| |£|£|£|£| |Bank|interest|receivable|—|—|45|45| |7.|Expenditure|on|charitable|activities|by fund|type| |Unrestricted|Total|Funds|Unrestricted|Total|Funds| |Funds|2021|Funds|2020| |£|£|£|£| |Education|and|tuition|638,045|638,045|980,765|980,765| |Support|costs|15,164|15,164|12,481|12,481| |653,209|653,209|993,246|993,246| |8.|Expenditure|on|charitable|activities|by|activity|type| |Activities| |undertaken|Support|Total|funds|Total|fund| |directly|costs|2021|2020| |£|£|£|£| |Education|and|tuition|638,045|-|638,045|980,765| |Governance|costs|-|15,164|15,164|12,481| |638,045|15,164|653,209|993,246| |9.|Analysis|of support|costs| |Analysis|of| |support|costs|Total|2021|Total|2020| |£|£|£| |Governance|costs|15,164|15,164|12,481| |10.|Net|expenditure| |Net|expenditure|is|stated|after|charging/(crediting):| |2021|2020| |£|£| |Amortisation|of|intangible|assets|-|29,000| |Depreciation|of|tangible|fixed|assets|6,000|6,000| |Operating|lease|rentals|1,662|3,003| |11.|Auditors|remuneration| |2021|2020| |£|£| |Fees|payable|for|the|audit|of the|financial|statements|4,000|4,000|

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ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

12. Staff costs

The average head count of employees during the year was 17 (2020: 21). The average number of full-time equivalent employees during the year is analysed as follows:

				2021		2020
				No.		No.
Teaching	and	support	staff		8	21

The above figures do not include the teachers and support workers who work on a self-employed basis or who are shared with other colleges and are therefore not actually employed by the charity. These workers are engaged as required to fulfil teaching and other duties as required to ensure the college is properly resourced at all times

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

Key Management Personnel

The key management personnel are the Principal and the Deans of Study and Operations. Their total remuneration including pension contributions in the year was £59,514. (2020: £140,877). The cost reduced in the year due to staffing structural changes.

13. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees in either the current or previous years.

No expenses were paid to trustees during either the current or previous years

14. Intangible assets

	Course
	materials
	£
Cost
At 1 August 2020 and 31 July 2021	286,216
Amortisation
At 1 August 2020 and 31 July 2021	96,296
Carrying amount
At 31 July 2021	189,920
At31July2020	189,920

Following an impairment review senior management and the trustees consider that no amortisation is required for the current year. In their opinion the carrying amount is a fair representation of the value in use of the existing course materials.

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

15.	Tangible fixed assets
			Fixtures
			fittings, and
		Library	construction	Equipment	Total
		£	£	£	£
	Cost
	At 1 August 2020 and 31 July 2021	18,270	25,693	8,186	52,149
	Depreciation
	At 1 August 2020	14,476	15,196	8,186	37,858
	Charge for the year	2,000	4,000	-	6,000
	At 31 July 2021	16,476	19,196	8,186	43,858
	Carrying amount
	At 31 July 2021	1,794	6,497	-	8,291
	At 31 July 2020	3,794	10,497	-	14,291
16.	Debtors
				2021	2020
				£	£
	Trade debtors			174,828	157,766
17.	Creditors: amounts falling due within one year
				2021	2020
				£	£
	Bank loans and overdrafts			13,500	13,500
	Trade creditors			202	31,537
	Accruals and deferred income			5,801	62,411
	Social security and other taxes			98,000	50,276
	Other creditors			40,718	47,894
				158,221	205,618
18.	Creditors: amounts falling due after more than one		year
				2021	2020
				£	£
	Bank loans and overdrafts			23,625	37,125
19.	Pensions and other post-retirement benefits
	Definedcontributionplans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £21,763 (2020: £41,498).

ForMission ClO

Notes to the Financial Statements (continued)

Year ended 31 July 2021

20. Analysis of charitable funds

Unrestricted funds
	At 1			At
	August 2020	Income	Expenditure	31 July 2021
	£	£	£	£
General funds	348,412	647,709	(653,209)	342,912
	At 1			At
	August 2019	Income	Expenditure	31 July 2020
	£	£	£	£
General funds	388,870	952,788	(993,246)	348,412
Endowment funds
	At 1			At
	August 2020	Income	Expenditure	31 July 2021
	£	£	£	£
Tuition support endowment	3,405	-	—	3,405
	At 1			At
	August 2019	Income	Expenditure	31 July 2020
	£	£	£	£
Tuitionsupportendowment	3,405	—	-	3,405

The endowment fund represents assets transferred from Springdale College Charitable Trust and is to be used to generate income to pay for student tuition.

ForMission ClO

Notes to the Financial Statements (continuea)

Year ended 31 July 2021

21. Analysis of net assets between funds

		Unrestricted	Endowment	Total Funds
		Funds	Funds	2021
		£	£	£
	Intangible assets	189,920	-	189,920
	Tangible fixed assets	8,291	-	8,291
	Current assets	326,547	3,405	329,952
	Creditors less than 1 year	(158,221)	-	(158,221)
	Creditors greater than 1 year	(23,625)	-	(23,625)
	Net assets	342,912	3,405	346,317
		Unrestricted	Endowment	Total Funds
		Funds	Funds	2020
		£	£	£
	Intangible assets	189,920	-	189,920
	Tangible fixed assets	14,291	-	14,291
	Current assets	386,944	3,405	390,349
	Creditors less than 1 year	(205,618)	-	(205,618)
	Creditors greater than 1 year	(37,125)	-	(37,125)
	Net assets	348,412	3,405	351,817
22.	Analysis of changes in net debt
		At		At
		1 Aug 2020	Cashflows	31 Jul 2021
		£	£	£
	Cash at bank and in hand	232,583	(77,459)	155,124
	Debt due within one year	(13,500)	—	(13,500)
	Debt due after one year	(37,125)	13,500	(23,625)
		181,958	(63,959)	117,999