CHARITY REGISTRATION NUMBER: 1059383
ForMission CIO Financial Statements
31 July 2023
HARRISON BEALE AND OWEN LIMITED
Chartered accountants & statutory auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
ForMission CIO
Financial Statements
Year ended 31 July 2023
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 5 |
| Statement of financial activities | 9 |
| Statement of financial position | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 |
| The following pages do not form part of the financial statements | |
| Detailed statement of financial activities | 22 |
| Notes to the detailed statement of financial activities | 23 |
ForMission CIO
Trustees' Annual Report
Year ended 31 July 2023
The trustees present their report and the financial statements of the charity for the year ended 31 July 2023.
Reference and administrative details
Registered charity name ForMission CIO Charity registration number 1059383 Principal office The trustees RA Baylis Chair S Bandawa CJ Cole (Resigned 4 November 2022) V Atiase (Resigned 4 April 2023) DL Fittro SK Potter Rev DC Pierce (Appointed 24 January 2023) Rev BA Thomas (Appointed 24 January 2023) D Rolles (Appointed 11 July 2023) Auditor Harrison Beale and Owen Limited Chartered accountants & statutory auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
The trustees
Structure, governance and management
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2023. 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 2015).
During 2022-23, three individuals joined the Board of Trustees and two resigned. The Board met on four occasions.
1
ForMission CIO
Trustees' Annual Report (continued)
Year ended 31 July 2023
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, sick 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.
2
Trustees' Annual Report (continued)
ForMission CIO
Year ended 31 July 2023
Achievements and performance
During the year ended 31 July 2023, ForMission continued to operate a franchise arrangement with its validating body, Birmingham 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. Collectively, these programmes include approximately 125 students.
ForMission continues to deliver robust, well-respected academic programmes across several hubs, both in the UK and in mainland Europe, as well as significant online provision. In April 2023, the college's BA and MA programmes were both successfully revalidated by Birmingham Newman University, for a further five years. Upon conclusion of the revalidation process, ForMission received the following endorsement by Professor Susan Docherty, Head of Theology at Birmingham Newman University:
"I really value the long-standing partnership our Department and University has with ForMission and would strongly recommend the College's courses. Their programmes offer a high-quality and rigorous academic education in Christian theology, biblical studies and missional leadership while also foregrounding the practical relevance of this study for contemporary churches and societies. The tutors know all their students as individuals, and the impressive level of support and challenge that staff provide enables students to achieve their full potential."
The college enjoys a reputation for innovation, diversity and a very positive student experience, at both undergraduate and postgraduate levels; results from the annual National Student Survey (NSS) continue to show ForMission performing well above the sectoral average. ForMission works very closely with a number of national and international partner organisations and these collaborations strengthen the college's position in the sector, as well as increasing both its profile and its ability to recruit students.
ForMission expanded its provision beyond undergraduate and postgraduate degrees by offering a Level 3 course in Christian Leadership. The college is exploring the provision of other short-term courses, or 'micro-credentials,' as well as developing new pathways/specialisms within its existing programmes. Other innovations include the introduction of three residential experiences each year for students predominantly studying online.
The college's operations continue to be overseen by the Senior Management Team, led by the Principal. During 2022-23, significant progress was made in improving the quality of the college's governance and operations, under the direction of the college's Quality Manager and with the assistance of its Audit Committee. With improved structures and policies in place, quality management and enhancement will next focus on making further improvements in academic management and programme delivery.
Vision and values
ForMission's vision is:
The new leadership of the college has articulated its vision as:
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.
Its core values are defined as:
being relational and missional; committed to diversity, excellence and service.
3
ForMission CIO
Trustees' Annual Report (continued)
Year ended 31 July 2023
Financial review
The results for the period have been impacted by a number of challenging factors, including below expected student recruitment; increased competition within the UK's theological education sector; and higher operating costs. These impacts were mitigated through a restructuring of staffing and the identification of additional cost-saving measures. It is anticipated that, in future, the broader range of offerings, including two new MA pathways, will improve student recruitment, as will additional staff capacity in this area. The net result for the year was a small deficit of £12,502, following the previous year's modest surplus of £8,138.
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:
-
select suitable accounting policies and then apply them consistently;
-
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;
-
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 2024 and signed on behalf of the board of trustees by:
RA Baylis Chair of Trustees
4
ForMission CIO
Independent Auditor's Report to the Members of ForMission CIO
Year ended 31 July 2023
Opinion
We have audited the financial statements of ForMission CIO (the ‘charity’) for the year ended 31 July 2023 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:
-
give a true and fair view of the state of the charity’s affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-
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.
5
ForMission CIO
Independent Auditor's Report to the Members of ForMission CIO (continued)
Year ended 31 July 2023
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 of the 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:
-
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
-
the financial statements 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.
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.
6
ForMission CIO
Independent Auditor's Report to the Members of ForMission CIO (continued)
Year ended 31 July 2023
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:
-
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 order to 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.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
7
ForMission CIO
Independent Auditor's Report to the Members of ForMission CIO (continued)
Year ended 31 July 2023
-
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.
-
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.
Harrison Beale and Owen Limited Chartered accountants & statutory auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
8
ForMission CIO
Statement of Financial Activities
Year ended 31 July 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Unrestricted | Endowment | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Charitable activities | 4 | 532,969 | – | 532,969 | 691,719 |
| Investment income | 5 | 118 | – | 118 | 6 |
| -------------------------------- | -------------- | -------------------------------- | -------------------------------- | ||
| Total income | 533,087 | – | 533,087 | 691,725 | |
| ================================ | ============== | ================================ | ================================ | ||
| Expenditure | |||||
| Expenditure on charitable activities | 6,7 | 545,589 | – | 545,589 | 683,587 |
| -------------------------------- | -------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 545,589 | – | 545,589 | 683,587 | |
| ================================ | ============== | ================================ | ================================ | ||
| -------------------------------- | -------------- | -------------------------------- | -------------------------------- | ||
| Net (expenditure)/income and net | |||||
| movement in funds | (12,502) | – | (12,502) | 8,138 | |
| ================================ | ============== | ================================ | ================================ | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 351,050 | 3,405 | 354,455 | 346,317 | |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 338,548 ================================ |
3,405 ======================= |
341,953 ================================ |
354,455 ================================ |
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 12 to 20 form part of these financial statements.
9
ForMission CIO
Statement of Financial Position
31 July 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Intangible assets | 13 | 189,920 | 189,920 |
| Tangible fixed assets | 14 | 3,091 | 5,691 |
| -------------------------------- | -------------------------------- | ||
| 193,011 | 195,611 | ||
| Current assets | |||
| Debtors | 15 | 58,986 | 67,602 |
| Cash at bank and in hand | 138,862 | 191,732 | |
| -------------------------------- | -------------------------------- | ||
| 197,848 | 259,334 | ||
| Creditors: amounts falling due within one year | 16 | 48,906 | 90,365 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 148,942 | 168,969 | |
| -------------------------------- | -------------------------------- | ||
| Total assets less current liabilities | 341,953 | 364,580 | |
| Creditors: amounts falling due after more than one year | 17 | – | 10,125 |
| -------------------------------- | -------------------------------- | ||
| Net assets | 341,953 | 354,455 | |
| ================================ | ================================ | ||
| Funds of the charity | |||
| Endowment funds | 3,405 | 3,405 | |
| Unrestricted funds | 338,548 | 351,050 | |
| -------------------------------- | -------------------------------- | ||
| Total charity funds | 19 | 341,953 ================================ |
354,455 ================================ |
These financial statements were approved by the board of trustees and authorised for issue on 24 May 2024, and are signed on behalf of the board by:
RA Baylis[Chair of Trustees ]
The notes on pages 12 to 20 form part of these financial statements.
10
ForMission CIO
Statement of Cash Flows
Year ended 31 July 2023
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Cash flows from operating activities | ||||
| Net (expenditure)/income | (12,502) | 8,138 | ||
| Adjustments for: | ||||
| Depreciation of tangible fixed assets | 2,600 | 2,600 | ||
| Other interest receivable and similar income | (118) | (6) | ||
| Interest payable and similar charges | 8,828 | 6,383 | ||
| Accrued (income)/expenses | (6,031) | 19,289 | ||
| Changes in: | ||||
| Trade and other debtors | 8,616 | 107,226 | ||
| Trade and other creditors | (32,053) | (87,145) | ||
| ---------------------------- | -------------------------------- | |||
| Cash generated from operations | (30,660) | 56,485 | ||
| Interest paid | (8,828) | (6,383) | ||
| Interest received | 118 | 6 | ||
| ---------------------------- | ---------------------------- | |||
| Net cash (used in)/from operating activities | (39,370) | 50,108 | ||
| ============================ | ============================ | |||
| 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 | (52,870) | 36,608 | ||
| Cash and cash equivalents at beginning of year | 191,732 | 155,124 | ||
| -------------------------------- | -------------------------------- | |||
| Cash and cash equivalents at end of year | 138,862 | 191,732 | ||
| ================================ | ================================ | |||
| Analysis of cash and cash equivalents | 2023 | 2022 | ||
| £ | £ | |||
| Notice deposits-less than 3 months | 138,862 | 191,732 | ||
| ================================ | ================================ |
The notes on pages 12 to 20 form part of these financial statements.
11
ForMission CIO
Notes to the Financial Statements
Year ended 31 July 2023
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. 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.
3. 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.
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.
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:
- 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:
-
Amortisation rates for the charity's course materials are incorrect leading to an overstatement of their carrying value.
-
Course fees recoverable are not paid in full.
12
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
3. 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 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 income is 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:
-
student fees are recognised when the college becomes entitled to receipt. In the case of selffunded undergraduates this will be on invoices issued at the commencement of the academic year or term as appropriate; for students with student loans this will be when money is received through our partner college, which should all be received in the appropriate academic year. For postgraduate students invoices are issued at the commencement of individual teaching modules.
-
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.
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:
-
expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities.
-
expenditure on charitable activities includes all costs incurred by a 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.
-
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 on a straight-line basis.
13
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
3. Accounting policies (continued)
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
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 retrospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
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 and fittings | - | 10% straight line |
| Office Equipment | - | 20% straight line |
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 course materials the carrying value is assessed against the estimated cost of having to re-write or otherwise acquire these.
14
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
3. 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. Charitable activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Educational activities | 528,841 | 528,841 | 687,711 | 687,711 |
| Other income | 4,128 | 4,128 | 4,008 | 4,008 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 532,969 ================================ |
532,969 ================================ |
691,719 ================================ |
691,719 ================================ |
5. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Bank interest receivable | 118 | 118 | 6 | 6 |
| ============== | ============== | ============== | ============== |
15
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
6. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Education and tuition | 523,864 | 523,864 | 669,259 | 669,259 | |
| Support costs | 21,725 | 21,725 | 14,328 | 14,328 | |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| 545,589 | 545,589 | 683,587 | 683,587 | ||
| ================================ | ================================ | ================================ | ================================ | ||
| 7. | Expenditure on charitable activities by activity type | ||||
| Activities | |||||
| undertaken | Support |
Total funds | Total fund | ||
| directly | costs | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Education and tuition | 523,864 | – | 523,864 | 669,259 | |
| Governance costs | – | 21,725 | 21,725 | 14,328 | |
| -------------------------------- | ---------------------------- | -------------------------------- | -------------------------------- | ||
| 523,864 | 21,725 | 545,589 | 683,587 | ||
| ================================ | ============================ | ================================ | ================================ | ||
| 8. | Analysis of support costs | ||||
| Analysis of | |||||
| support costs | Total 2023 | Total 2022 | |||
| £ | £ | £ | |||
| Governance costs | 21,725 | 21,725 | 14,328 | ||
| ---------------------------- | ---------------------------- | ---------------------------- | |||
| 21,725 | 21,725 | 14,328 | |||
| ============================ | ============================ | ============================ | |||
| 9. | Net (expenditure)/income | ||||
| Net (expenditure)/income is stated after charging/(crediting): | |||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 2,600 | 2,600 | |||
| Operating lease rentals | 733 | 1,939 | |||
| Property lease payments | 29,542 | 38,667 | |||
| ============================ | ============================ | ||||
| 10. | Auditors remuneration | ||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Fees payable for the audit of the financial statements | 6,000 | 4,000 | |||
| ============================ | ======================= |
16
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
11. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 236,210 | 317,826 |
| Social security costs | 6,976 | 8,393 |
| Employer contributions to pension plans | 20,266 | 17,652 |
| -------------------------------- | -------------------------------- | |
| 263,452 ================================ |
343,871 ================================ |
Included in the above figures are:
-
Redundancy costs on the grounds of ill-health in respect of one occasional member of staff.
-
Pension contributions of £3,302 made in respect of a former member of staff.
The average head count of employees during the year was 17 (2022: 20). The average number of full-time equivalent employees during the year is analysed as follows:
Teaching and support staff
| 2023 | 2022 |
|---|---|
| No. | No. |
| 9 | 9 |
| ============== | ============== |
The college employs staff on either a permanent basis, which may be full-time or part-time, or on an occasional basis to fulfil teaching requirements. During the year the college employed an average of nine permanent staff. An average of four members were employed on an occasional basis.
In addition the college engaged the Dean of Studies as part of a secondment arrangement from another college. His fees are included in staff costs.
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
Key Management Personnel
The key management personnel were the Principal and the Dean of Studies (seconded for part of the year). The total remuneration including pension contributions and social security costs in the year was £50,289. (2022: £58,236).
12. 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.
- Travel expenses to board meetings were paid to three trustees during the year. The total paid was £526 (2022: £476)
17
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
13. Intangible assets
| Course | |
|---|---|
| materials | |
| £ | |
| Cost | |
| At 1 August 2022 and 31 July 2023 | 286,216 |
| ================================ | |
| Amortisation | |
| At 1 August 2022 and 31 July 2023 | 96,296 |
| ================================ | |
| Carrying amount | |
| At 31 July 2023 | 189,920 |
| ================================ | |
| At 31 July 2022 | 189,920 |
| ================================ |
14. Tangible fixed assets
| Fixtures, | ||||
|---|---|---|---|---|
| fittings and | ||||
| Library | construction | Equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 August 2022 and 31 July 2023 | 18,270 | 25,693 | 8,186 | 52,149 |
| ============================ | ============================ | ======================= | ============================ | |
| Depreciation | ||||
| At 1 August 2022 | 17,076 | 21,196 | 8,186 | 46,458 |
| Charge for the year | 600 | 2,000 | – | 2,600 |
| ---------------------------- | ---------------------------- | ----------------------- | ---------------------------- | |
| At 31 July 2023 | 17,676 | 23,196 | 8,186 | 49,058 |
| ============================ | ============================ | ======================= | ============================ | |
| Carrying amount | ||||
| At 31 July 2023 | 594 | 2,497 | – | 3,091 |
| ============================ | ============================ | ======================= | ============================ | |
| At 31 July 2022 | 1,194 | 4,497 | – | 5,691 |
| ============================ | ============================ | ======================= | ============================ | |
| Debtors | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Trade debtors | 55,914 | 67,602 | ||
| Prepayments and accrued income | 3,072 | – | ||
| ---------------------------- | ---------------------------- | |||
| 58,986 | 67,602 | |||
| ============================ | ============================ | |||
| Creditors: amounts falling due within one year | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Bank loans and overdrafts | 10,125 | 13,500 | ||
| Accruals and deferred income | 19,059 | 25,090 | ||
| Social security and other taxes | 5,666 | 26,311 | ||
| Other creditors | 14,056 | 25,464 | ||
| ---------------------------- | ---------------------------- | |||
| 48,906 | 90,365 | |||
| ============================ | ============================ |
15. Debtors
16. Creditors: amounts falling due within one year
18
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
17. Creditors: amounts falling due after more than one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | – ============== |
10,125 ============================ |
18. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £20,266 (2022: £17,652).
19. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||
|---|---|---|---|---|
| At | ||||
| 1 August | At | |||
| 2022 | Income | Expenditure | 31 July 2023 | |
| £ | £ | £ | £ | |
| General funds | 351,050 | 533,087 | (545,589) | 338,548 |
| ================================ | ================================ | ================================ | ================================ | |
| At 1 August | At | |||
| 2021 | Income | Expenditure | 31 July 2022 | |
| £ | £ | £ | £ | |
| General funds | 342,912 | 691,725 | (683,587) | 351,050 |
| ================================ | ================================ | ================================ | ================================ | |
| Endowment funds | ||||
| At 1 August | At | |||
| 2022 | Income | Expenditure | 31 July 2023 | |
| £ | £ | £ | £ | |
| Tuition support endowment | 3,405 | – | – | 3,405 |
| ======================= | ============== | ============== | ======================= | |
| At 1 August | At | |||
| 2021 | Income | Expenditure | 31 July 2022 | |
| £ | £ | £ | £ | |
| Tuition support endowment | 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.
19
ForMission CIO
Notes to the Financial Statements (continued)
Year ended 31 July 2023
20. Analysis of net assets between funds
| Unrestricted | Endowment | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Intangible assets | 189,920 | – | 189,920 |
| Tangible fixed assets | 3,091 | – | 3,091 |
| Current assets | 194,443 | 3,405 | 197,848 |
| Creditors less than 1 year | (48,906) | – | (48,906) |
| Creditors greater than 1 year | – | – | – |
| -------------------------------- | ----------------------- | -------------------------------- | |
| Net assets | 338,548 | 3,405 | 341,953 |
| ================================ | ======================= | ================================ | |
| Unrestricted | Endowment | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Intangible assets | 189,920 | – | 189,920 |
| Tangible fixed assets | 5,691 | – | 5,691 |
| Current assets | 255,929 | 3,405 | 259,334 |
| Creditors less than 1 year | (90,365) | – | (90,365) |
| Creditors greater than 1 year | (10,125) | – | (10,125) |
| -------------------------------- | ----------------------- | -------------------------------- | |
| Net assets | 351,050 | 3,405 | 354,455 |
| ================================ | ======================= | ================================ | |
| Analysis of changes in net debt | |||
| At | At | ||
| 1 Aug 2022 | Cash flows | 31 Jul 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 191,732 | (52,870) | 138,862 |
| Debt due within one year | (13,500) | 3,375 | (10,125) |
| Debt due after one year | (10,125) | 10,125 | – |
| -------------------------------- | ---------------------------- | -------------------------------- | |
| 168,107 ================================ |
(39,370) ============================ |
128,737 ================================ |
21. Analysis of changes in net debt
22. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Not later than 1 year | 13,900 | – |
| Later than 1 year and not later than 5 years | 44,816 | 73,100 |
| ---------------------------- | -------------- | |
| 58,716 | 73,100 | |
| ============================ | ============================ |
20
ForMission CIO
Management Information
Year ended 31 July 2023
The following pages do not form part of the financial statements.
21
ForMission CIO
Detailed Statement of Financial Activities
Year ended 31 July 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Income and endowments | ||
| Charitable activities | ||
| Educational activities | 528,841 | 687,711 |
| Other income | 4,128 | 4,008 |
| -------------------------------- | -------------------------------- | |
| 532,969 | 691,719 | |
| -------------------------------- | -------------------------------- | |
| Investment income | ||
| Bank interest receivable | 118 | 6 |
| -------------- | -------------- | |
| -------------------------------- | -------------------------------- | |
| Total income | 533,087 | 691,725 |
| ================================ | ================================ | |
| Expenditure | ||
| Expenditure on charitable activities | ||
| Purchases | 168,590 | 192,314 |
| Wages and salaries | 236,210 | 317,826 |
| Employer's NIC | 6,976 | 8,393 |
| Pension costs | 20,266 | 17,652 |
| Operating leases | 733 | 1,939 |
| Rent | 29,022 | 40,875 |
| Light and heat | 22 | 548 |
| Repairs and maintenance | 156 | 2,229 |
| Insurance | 2,876 | 2,939 |
| Other establishment | 605 | – |
| Bad debts | 9,882 | 12,385 |
| Other motor/travel costs | 4,090 | 5,035 |
| Legal and professional fees | 8,889 | 9,162 |
| Telephone | 13,617 | 7,672 |
| Other office costs | 15,359 | 29,823 |
| Depreciation | 2,600 | 2,600 |
| Other interest payable and similar charges | 8,828 | 6,383 |
| IT costs | 11,263 | 20,363 |
| Library costs | 5,605 | 5,449 |
| -------------------------------- | -------------------------------- | |
| 545,589 | 683,587 | |
| -------------------------------- | -------------------------------- | |
| -------------------------------- | -------------------------------- | |
| Total expenditure | 545,589 | 683,587 |
| ================================ | ================================ | |
| -------------------------------- | -------------------------------- | |
| Net (expenditure)/income | (12,502) | 8,138 |
| ================================ | ================================ |
22
ForMission CIO
Notes to the Detailed Statement of Financial Activities
Year ended 31 July 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Expenditure on charitable activities | ||
| Education and tuition | ||
| Activities undertaken directly | ||
| External curriculum delivery costs | 168,590 | 192,314 |
| Salaries | 234,454 | 317,826 |
| Employer's NIC | 6,976 | 8,393 |
| Pension costs | 16,964 | 17,652 |
| Operating leases | 733 | 1,939 |
| Rent | 29,022 | 40,875 |
| Light & heat | 22 | 548 |
| Repairs & maintenance | 156 | 2,229 |
| Insurance | 2,876 | 2,939 |
| Other establishment | 605 | – |
| Bad debts | 9,882 | 12,385 |
| Travel costs | 4,090 | 5,035 |
| Legal and professional fees | 1,050 | 1,217 |
| Telephone | 13,617 | 7,672 |
| Other office costs | 15,359 | 29,823 |
| Depreciation | 2,600 | 2,600 |
| IT costs | 11,263 | 20,363 |
| Library costs | 5,605 | 5,449 |
| -------------------------------- | -------------------------------- | |
| 523,864 | 669,259 | |
| -------------------------------- | -------------------------------- | |
| Governance costs | ||
| Governance costs - pension costs | 3,302 | – |
| Governance costs – redundancy costs | 1,756 | – |
| Audit fees | 4,260 | 7,640 |
| Legal and other professional fees | 2,620 | 305 |
| Costs of trustees' meetings | 959 | – |
| Other finance costs | 8,828 | 6,383 |
| ---------------------------- | ---------------------------- | |
| 21,725 | 14,328 | |
| ---------------------------- | ---------------------------- | |
| -------------------------------- | -------------------------------- | |
| Expenditure on charitable activities | 545,589 | 683,587 |
| ================================ | ================================ |
23