Charlty number- 1066592 MEDWAY EDUCATION TRUST TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
MEDWAY EDUCATION TRUST CONTENTS Page Reference and administrative detalls of the Charlty. its Trustees and advlsers Trustees. report Trust8es' responsibilities statement Independent auditor's report on th6 finan¢lal statements Consolidated statement of financlal activities Consolidated balance sheet 10 Charlty balance sheet Consolidated statement of cash flows 11 12 Notes to thè financial statements 13-31
MEDWAY EDUCATION TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 S Frost S Bell J Bruce S Campbell T Dupont Charity regist&rad number 1066592 Principal office Oneschool Global UK Msidstone Campus Heath Road Linlon Maidstone Kent ME17 4wr Chief executlve offlcer J Bruce Independent auditor Crowe U.K. LLP Fourth Floor St James House Sl James Square Chellenham GL50 3PR Bankers HSBC Sillingbourne- Digital Serv(ce Branch 115 High Street Sitlingbourne Kent ME10 4AL Page 1
MEDWAY EDUCATION TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees of Medway Education Twsl present their annual report and audited accounts for the year ended 31st December 2021 and confirm they comply with the requirements of the Charities Act 2011, the Trust deed, FRS102 and the Charities SORP IFRS 102}. Ob-ectives and Activities The charitable objects of the Trust are the advanMent of th& education of children and young people through the provision of education siles and premises. The objects also include any other charitable purpose for the benefit of the worldwide Christian fellowship known as the Plymouth Brethren Christian Church. The Trust's main activities are the support of Brethren schools and the PTovision of gr8nts lo organisalions that support children and families. In furtherance of its objects. the Trust provides one premise under fomal lease for an independent school based in Heath Road Maidslone Kent ME17 4HT, which has been run by Oneschool Global UK IOSGUKI. A separate building is also prowded lo Linlon Projects Ltd a Subsidiary Campus Trading company for local Campus & Co shop under a separate lease. The Trust also provides grant funding and other financial support lo OSGUK al the discretion of the Trustees in order lo onable OSGUK lo provide a well balancecl education al primary and secondary levels, for chil(Jren and young people whose parents appreciate the Christian ethos. Success is measured in terms of the provision ol appropriate facililies lo OSGUK whilst minimising expenditure. This in turn, frees up funds for raising standards of eduGation for all ncerned and for the improvement of facilities for pupils and stsff alike. The Trustees have referied to the guidance contained in the Charity Commission's general guidance on public benefit and have regard lo il when reviewing their aims and objectives, and in planning their future aclivilies. In particular they consider how planned activities will contribute lo the education81 aims and objectives they have sel. Volunteers are an integral part of the community ethos and values of the Trust and there are strong and willing group of volunteers who assist and support the Trust throughout the year. Structure Governan¢e and Mana ement Medway Education Trust is ¢onsliluled by a Deed of Trust dated 08 10 1997, amended 05 01 2005 and is registered with the Charity Commission for England and Wales. The TTuslees who served during the year and since the year end are set out on page 1. None of the Trustees, nor any person connected with them. received any remuneration from the Trust in the year ended 31st December 2021 lyear ended 31st December 2020 £nill. The power lo appoint Trustees is invested in the existing Trustees subje¢t to the Trust Oeed requirement. Truslees are selected according lo their own specialism in a particular field and are expected lo pursue that specialism. New Trustees are instructed in the need lo comptelY adhere to the ethos and values of the Trijsl. The Trustee5 have examined the major slralegic, business and operational risks that the Trust faces. The Trustees are satisfied that the rnajor risks identified have been adequately miligaled where necessary. 11 is recognised that systems can only provide reasonable bul not absolute assuran¢e that major risks have been adequately managed. nifl¢ant Activitigs Throughout the year the Trust has continued lo provide educational premises in support of the educational activities of OSGUK. Page 2
MEDWAY EDUCATION TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 The Trust has a wholly owned subsidiary company, Linton Proiects Ltd 05684296 which undertakes trading aclivilies. All profits chargeable lo ¢orporalion tax are gifted lo the Trust in support of the charitable activities of the Trust. Financial Review In the year ended 31 sl December 2021 the Group reported a nel surplus of £21,72812020 deficii of £117,393). All funds are unreslricled. The Trust is supported and finan principally by profits from ils trading subsidiary Linlon Projects Ltd 05684296 plus olhei ad hoc donations and those raised by fundraising events and grants from the Gra Trust. The Trustees believe that the Trust's funds are sufficient to mitigate any short to medium term risk of redd funding. The Trust's fundraising events principal operate wlhin the Brethren community and professional fundraisers are not used. Neither the Trust nor ar)y person acting on behalf of the Trust was subject lo an undertaking to be bound by any voluntary scheme for regulating fund-raising. or voluntary standard for fund-raising in respe¢t of activities on behalf of the trust. The TTUStees' policy is lo maintain minimum free reserves al a level which equates lo six months, unreslricled expenditure. This is approximately £10,000. At 31st December 2021 the free reserves of the Trust were £88,410131 sl December 2020 £fj39,0581. After making appropriate enquiries, the Trustees have a reasonable expe¢lalion that the charity has adequate resources lo continue in oper81ional existence for the foreseeable future. For this reason, il ¢onlinues to adopt the going concern basis in preparing the financial slalemenls. Further details reg8rding the adoption of the going concern basis can be found in the Accounting Poliues. Plans For Future Pariods The Trustees plan lo continue to support OSGUK lo provide a quality and deliver a consislenl and high level of educational experience and outcome for all students and staff. in accordan with the Trust's ethos and values. Appro order of the members of the board of Trustees and 8igned on their behalf by.. J Bruce Trustee Date: 31.C)I,L3 Page 3
MEDWAY EDUCATION TRUST STATEMENT OF TRUSTEES, RESPONS181LITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Truslees are responsible for preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally A¢cepled Accounting Praclicel. The law applicable lo charities in England & Wales requires the Trustees lo pfftpare financi81 statements for each financial year which give a true and fair view of the slate of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure. for that period. In preparing these financial slalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly.. obseNe the methods and principles of the Charities SORP {FRS 102)., make judgments and a¢¢ounling eslimales that are reasonable and prudent., slate whether applicable UK Accounting Standards {FRS 1021 have been followed, subject lo any m81erial departures disclosed and explained in the financial slalemenls., prepare the financial slalemenls on the going concern basis unless il is inappropTiale lo presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charills transactions and disdose with reasonable accuracy at any lime the financial position of the Group and the Charity 8nd enable them lo ensure Ihal the financial slalemenls comply with the Charities Act 2011, the Chaiily IA¢¢ounls and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguaiding the assets of the Group and the Charity and hence for taking reasonable steps for the PTevenlion and detection of fraud and other irregularities. y order of the members of the board of Trustees and signed on ils behalf by.. JBr Trustee Dale.. 31.OK.IS Page 4
MEDWAY EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST Opinion We have audited the financial statements of Medway Education Trust Ithe 'parenl charity'l and ils subsidiaries Ilhe 'group'l for the year ended 31 Dember 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charily balance sheet, the Consolidated slalemenl 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 Accounling Standards, including Financial Reportin9 Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Prad11. The financHI slalemenls have been pr8pared in accordance with Accounting and Reporting by Charities preparing their accounts in accordan with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference to the Accounting and Reporting by Charilies.. Slalemenl of Recommended Practice issued on 1 April 2005 which is referred lo in the extant regulations bul has beon withdrawn. This has been done in order for the accounts lo provide a true and fair view in accord8n¢o Wrth the Generally Accepted Accounting P¥aclice effective for reporting periods beginning on or after 1 January 2015. In our opinion Ihe financial slalements.. give a true and fair view of the slate of the Group's and of the parent charills affairs as al 31 December 2021 and of the Group's incoming resources and application of resour8, including ils income and expenditure for the year then ended., 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 oplnlon We conducted our audit in accordan¢e with International Standards on Auditing {UKI (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusioris relating to going concern In auditing the financial slalemenls. wa have concluded thal the Trustees, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriale. Based on the work we have perfomied. we have not identified any material uncertainties relating lo events or conditions that, individually or collectively. may c881 significant doubl on the Group's or the parent charitls ability to continue as a going ¢oncern for a period of al least twelve months from when the financial slalements are aulhorised for issue. Our responsibilities and the responsibililEs of the Trustees with respect lo going concem are described in the relevant se¢lions of this report. Page 5
MEDWAY EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST ICONTINUEDI Other information The otheT information comprises the information included in the Annual feport other than the financial statements 8nd our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial slalemenls does not cover the other inforrnalion and, except lo the extent otherwise explicitly staled in our report, we do not express any form of assurance Conclusion Ihereon. Our responsibility is lo read the other information and. in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the course of the audit, or othenmise appears lo be materially misslaled. If we identify such material inconsistencies or apparent materia misstalewenls. we are required lo determine whether this gives rise lo a material misst81emenl in the financial statements theMSee$. If. based on the work we have perfom)ed. we conclude that there is a material misslalemenl of this other information, we are required lo report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing lo report in respect of the following mallers where the Charities (Accounts and Reports) Regulations 2008 requires us to report lo you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect with the linanclal slalernenls., or the parent Charity has not kept sufficient accounting records., or the parent Charily financial statements are not in agreement with the accounting records and reluin8', 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 slalemenl, the Trustees are responsible for the preparation of Ihe financial statements which give a true and fair view, 2nd for such internal Control as the Trustees determine is necessary lo enable the preparation of financial slatemenls that are free from material misslalemenl. whether due lo fraud or error. In preparing the linanaal slalemenls, the Trustees are responsible for assessing the Group's and the parent charills ability lo ¢onlinue as a going con¢em, disclosing, as applicable, matters related lo going concem and using the going concern basis of a¢¢ounling unless the Trustees either intend lo Iiquidalo the Group or the parent charity or lo cease operations, or have no realisti¢ allernalive bul lo do so. Page 6
MEDWAY EDUCATION TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST ICONTINUEDI Audito¢s responsibilities for the audlt of the flnancial statgments We have been appointed as auditor under se¢lion 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulalions made or having effed Ihereunder. Our objectives are lo obtain reason8ble assurance about whether the linancial slalements as a whole are free from material misslalemenl, whether due lo fraud or error. and lo issue an Auditor's report that includes our opinion. Reasonab assurance is a high level of assLJrance, bul is not a guarantee that an audit conducted in accordan with ISAS IUKI will a5ways detect a ma16ri81 misslalemenl 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 lo influence the economic deusions of users taken on the basis of these financial slatemenls. Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design pro¢edures in line with our responsibilities, outlined above. lo delecl material misslalemenls in respect of irregularities, including fraud. The exlenl lo which our procedtjres are capable of delecling irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regu1810ry frameworks within which the charity operates. focusing .on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and The Charities and Trustee Investment {Sco118ndl Act 2005 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 slalemenl items. Auditing standards limit the required audit procedures to identify non-complian with Ihese18ws and regulations lo enquiry of the Trustees and other management and inspe¢lion of regulatory 8nd legal correspondence. if any. We identified the greatest risk of material impact on the financial slalements from irregularities, including fraud, lo be within the override of controls by management. Our audit procedures lo respond to these risks induded enquiries of management, and the Trustees about their own identifi¢ation and assessment of the risks of irregularities, sample lesling on the posting of joumals, reviwing accountlng estimates for biases and reviewing regulatory correspondence. Owing to the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even Ihough we have prop&rly planned and performed our audit in accord8n¢& with auditing standards. For example, the further removed non-¢ompliance with laws and regulalions lirregularili8sI is from the events and transactions refleded in the financial slalements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-delection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected lo delecl non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the linancial ststemenls is located on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibililies. This description forms part of our Auditorfs ieport. Page 7
MEDWAY EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEDWAY 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 GLS0 3PR Date: 31 January 2023
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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MEDWAY EDUCATION TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 As resl8led Total funds 2020 Restricted Unrestricted funds funds 2021 2021 Total funds 2021 Note Income from: Donations and legacies Charitable activities Other trading activities Investments 193,520 17.000 2,434,541 io 193.520 17,000 2,434,541 10 90,456 5.000 9,917,631 257 Total income 2,645,071 2,645.071 2,013.344 Expenditure on: Raising funds Charitable activities 2,095,799 527,544 2,095,799 527,544 1,605, 759 524,978 Total gxpenditure 2.623.343 2.623.343 2. 130, 737 Net incomel{expendlturel Transfers between funds 21,728 435,704 21,728 (117,393J 18 1435,7041 Net movement In funds 1435,7041 457,432 21.728 (117,393) Reconciliation of funds.. Total funds brought forward Nel movement in fL>nds 18 18 435.704 1435,7041 3,998,439 457,432 4,434,143 21,728 4,551,536 fl 17,393) Total funds carried forward 4.455.871 4.455,871 4,434, 143 The Consolidated Slalement of Financial Aclivilies includes all gains and losses recogniged in the year. The notes on pages 13 to 31 form part of these financial slalements. Page 9
MEDWAY EDUCATION TRUST CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021 As reslaled 2020 2021 Note Flxed assets Tangible assets 12 4.506,227 4,458,901 4,506,227 4,458,901 Current assets Stocks Debtors C8sh at bank and in hand 14 231,657 23,782 430,688 290,252 121,023 304,213 86,127 715,488 Creditors". amounts falling due within one year 18 168S.531) (696,079) Net current assets 596 19,409 Total assets less curnt liabilities 4,S06,823 4,478,310 Creditors.. amounts falling due after more than one year 17 {50,9521 {44, 167) Total net assets 4,455,871 4,434. 143 Charity funds Restricted funds Unreslricled funds 18 435, 704 3,998,439 18 4,455,871 Total funds 4.455,871 4.434, 143 The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. JBr ce Trustee Dale,. The notes on pages 13 to 31 fomi part of these financial slalemenls. P8ge10
MEDWAY EDUCATION TRUST CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021 As restated 2020 2021 Note Fixed assets Tangible assets Invesimenls 12 13 4,094,982 4.086,348 4,094,984 4,086.350 Current assets Debtors Cash at bank and in hand 15 514 94,626 934 251,612 95.140 252.546 Creditors.. amounts falling due within one year 16 16,7321 (113,490J Net currènt assets 88,408 139,056 Total assets less current liabilities 4.183,392 4,225,406 Total not assets 4,183,392 4,225,406 Charlty funds Restricted funds Unreslricled funds 18 18 435,704 3. 789. [02 4,183,392 Total funds 4.183,392 4,225,406 The financial slalomenls were approved and aulhorised for issue by the Trustees and signed on their behalf by.. uce Truslee Dale.. 3I.OK.I The notes on pages 13 to 31 fomi part of these financial statements. Page11
MEDWAY EDUCATION TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 As fpslaled 2020 2021 Note Cash flows from operating activities Nel cash used in operating activities 20 365,699 256,208 Cash flows from investlng a¢tlvlties Purchase of tangible fixed assets Interest received Disposal of tangible fixed assets {202,8791 (281,907) 10 257 1,019 Net cash used In Investing activities 1201.8501 1281,6501 Cash flows from financing actlvltles Repayrllenls of borrowing New finance leases 160.0001 22.626 Net cash lused Inllprovided by finan¢lng actlvities (37,3741 Change In cash and cash equivalents In the year Cash and c88h eouivalÈnls al the beginning of the year 126,475 125,4421 329, 655 304,213 Cash and cash equivalents at the end of the year 21 430.688 304,213 The notes on pages 13 to 31 form part of these financlal slalemenls Page 12
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 General Informatlon Medway Education Trust is an unincorporated chaiily (registered number 10665921 registered in England and Wales. The registered address is OSGUK Maidslone Campus, Heath Road, Linlon, Maidslone, Kent, ME17 4HT. Accountlng policies 2.1 Basis of preparation of financial statements The financial slalemenls have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing Iheir accounts in accordan 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 Republic of Ireland IFRS 102) and the Charities Act 2011. The financial slalemenls have been prepared lo give a 'true and faiv view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the extent reqUId lo provide a Irue and fair, view. This departure has involved following the Charities SORP IFRS 102) published in October 2019 rather than the Accounting and Reporting by Charities.. Slalemenl of Recommended Pracliee effective from 1 April 2005 which has since been withdrawn. Medway Educalbn Trust meets the definition of a public benefit entity under FRS 102. Assets and IbIlItIeS are initially recognised al historical cost or transaction value unless olhoNise slated in the relevant accounting policy. The Consolidated stslemenl of financial actDiilies (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and ils subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has also taken advantage of the exemption available to a qualifying enlily in FRS 102 from the requirement lo psent a Charity only slalemenl of ¢ash flows and rtain disclosures about the charity's financial instruments within the consolidated accounts. No separate SOFA has been prepared foi the Charity alone. 2.2 Going concern The Trustees are of the opinion that there is suffKient funding in place lo continue activities of the ch8rily. Therefore. the accounts have been PTepared on a going concern basis. 2.3 Income All income is recognised once the Charity has entitlement lo the income. il is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in rhe Consolidated statement of financial actiwlies on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance sheet. Where inoome is received in advance of enlillement of reipt, ils recognition is deferred and included in creditors as deferred income. Where enlillemenl occurs before incorne is CeIVed, the income is a¢trued. Income tax recoverable in relation lo investment income is recognised al the lime the investment income is receivable. Page 13
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 2.4 Expenditure Expenditure is recognised once thera 18 8 legal or conslructr've obligation lo transfer economic benefi'l lo a third party, il is probable that a transfer of economic benefits will be required in selllemenl and the amount of the obligation can be measured ieliably. Expenditure 18 classified by activity. Expendrture on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. All expendiluTe is inclusive of irrecoverable VAT. 2.5 Interest receivablè Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group- this is nomally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Tangible fixed assets and dapraciatlon Tangible fixed assets costing £500 or more are capitalised and recognised when fulLire economic benefits are probable and the cost or value of the 8ssel can be measured reliably. Tangible fixed assets are initially recognlsed al cost. After recognition, under the cost model, tangible fixed assets are measured al Gosl less accumulated depreciation and any accumulated impairment losses. All costs in¢urred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged so as to allctale the cost of tangible fixed assets less their residual value over their estimated useful lives, Depre¢ialion is provided on the followng basis.. Freehold property Motor v8hicles Fixtures and fillings 20A straight line 250/0 Straight line 200A reducing balance 2.7 Investments Investments in subsidiaries are valued al cost less proMsk)n for impairment. 2.8 Stocks Stocks are valued at the lower of cost and nel realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and 8n appropriate proportion of fixed and Variab overheads. 2.9 Debtors Trade and other debtors are recognised al the selllemenl amount after any liade discount offered. Prepayments are valued al the amount prepaid nel of any trade discounts due. Page 14
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies lcontinuedl 2.10 Cash at bank and in hand Cash al bank and in hand includes cash and short-tem highly liquid investments with a short matUrlY of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.11 LiabllSties and provisions Liabilities are Tecognised when there is an obligation al the Balance sheet date as a result of a past ovent, il is probable Ihal a transfer of e¢onomi¢ benefit will be required in selllement. and the amount of the s<lemenl can be eslimaled reliably. Liabilities are recognised at the amount that the Charity anticipates il will pay lo sellle the debt or the amount il has received as advanced payments for the goods or services il musl provide. Provisions are me88ured al the best estimate of the amounts required to settle the obligation. Where the eflecl of the lime value of money is material, the provision is based on the present value of those amounts. discounted at the PTe-lax discount rate that reflects the risks specific to the liability. The unwnding of the discount is recognised in the Consolidated slalemenl of financial activities as a finance cost. 2.12 Flnanclal instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their settlement value. 2.13 Fund accountlng General funds are unreslricled funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Reslricled funds are funds which are lo be used in accordance with specific reslriclions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each reslricled fund is sel out in the notes to the financial statements. Income from donatlons and legacies Restricted Unrestricted funds funds 2021 2021 Total funds 2021 Donations Grants 47,240 146,280 47,240 146,280 193,520 193,520 Page15
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from donations and legacles {continuedl As resl8led Total funds 2020 RestrKled Unreslricled fuiids funds 2020 2020 Donations 39,581 50,875 90,456 Income from charitable activities Unrestricted funds 2021 Total funds 2021 Rental income 17,OIX) 17,000 As sta1 Tol81 funds 2020 Unreslricled lunds 2020 Rental income 5,QOO 5,000 Page 16
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from other tradlng activities Income from non charitable tradlng actlvlties Unrestrictad funds 2021 Total funds 2021 Trading income- Linlon Projects Ltd 2,434,541 2,434,541 As resl8l&d Tolal funds 2020 Unrestricted funds 2020 Trading income- Linlon Projects Ltd 1,917,631 1,917,631 Investment income Unrestricted funds 2021 Totsl funds 2021 Interest income 10 10 Page17
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Investment income Icontinuedl unsIr1¢[@d funds 2020 Tolal funds 2020 Interest income 257 257 Expendlture on raising funds Other tradlng expenses - Linton Prolects Ltd Unr8strlcted funds 2021 Total funds 2021 Cost of sales Adminislralion expenses Interest payable Administration depreciation 1.815,824 210,374 8,239 61.362 1.815,824 210.374 8,239 61,362 2.095,799 2.095,799 Page18
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Expenditure on raislng funds Icolltinuedl other trading expenses - Linton Projects Ltd Icolltinuèdl As restaled Total funds 2020 Unreslricted funds 2020 Cost of sales Adminislr81ion expenses Interest payable Administration depreciation 1.444,586 127,637 6,603 26,g33 1,444.586 127,637 6.603 26,933 1,605. 759 1,605, 759 Analysis of expenditure on charltable activ5ties Summary by fund type Unyestrlcted funds 2021 Total 2021 Charilable activities 527,544 527,544 Res(ricled Unrestricted funds funds 2020 2020 Total 2020 Charitable activities 11.485 513,493 524,978 Page19
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of expendilure by activities Activities undertaken directly 2021 Support costs 2021 Total fund5 2021 Charitable activities 412,430 115,114 527,544 Activities undertakgn directly 2020 Support costs 2020 Total funds 2020 Costs of activities 416,543 108,435 524,978 Analysis of direct costs Total funds 2021 Total funds 2020 Donations 412,430 416,543 Donations were made to OSGUK. Page 20
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of expenditurè by activities Icontlnuedl Analysis of support costs Total fund$ 2021 Tolal funds 2020 Depreciation Other costs Finance charges Professional fees Premises cost 93,173 11,0871 1,415 11,101 10.512 92,275 6,560 9,600 115,114 108,435 Staff costs are nil. Medway Education Trust is run wholly by volunt¢grs. 10. Auditor's remuneration The auditor's remuneration amounts lo an auditor fee of £5,000 (2020 - £5,400), and non audit services of £2,25012020- £9,800). 11. Trustees, remunèration and expenses During the year. no Trusle8s received any remuneration or other benefits (2020- £MIL}. During the year ended 31 December 2021, no Trustee expenses have been incurred (2020- £NILJ. Page 21
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 12. Tangible fixed assets Group Freehold property Motor Flxtures and vehicles fittings Total Cost or valuation Al 1 January 2021 Additions 5,331,855 168,531 172,242 8,848 11,0191 5,504,097 202,879 11,0191 25.500 Disposals Al 31 Dember 2021 5,500,386 25.SOO 180.071 5,705,957 Depreclatlon Al 1 January 2021 Charge for the year 980,687 127,590 64.509 23,119 1,045,196 154,534 3,825 Al 31 December 2021 1,108,277 3,825 87.628 1.199,730 Net book valua Al 31 December 2021 4.392.109 21,675 92,443 4.506.227 At 31 De¢ember 2020 4,351, 168 107, 733 4,458,901 Page 22
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 12. Tangible fixed assets {continuedl Charlty Freehold property Cost or valuation At 1 January 2021 Additions 4,987,687 101,807 At 31 December 2021 5,089,494 Depreciation At 1 January 2021 Charge for the year 901.339 93.173 Al 31 December 2021 994,512 Net book value Al 31 December 2021 4,094,982 At 31 December 2020 4,086,348 Page 23
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 13. Fixed asset investments Principal subsldlaries The following was a SubSlary ¢Jndertaking of the Charty.. Name Company number Registered office or prlnclpal Principal activity place of buslness Linlon Projects Ltd 055684296 OSGUK Maidslone Campus, Heath Road, Maidstone, Kent, ME17 4HT Sale of retail goods The financial results of the subsidiary for the year were.. Name Income Expendlture ProfilllLossl I Surplusl IDeficitl for the year Net assets Linlon Projects Ltd 2.434,541 2,370,799) 63,742 272,481 Page 24
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 34 DECEMBER 2021 14. Stocks Gmup Group As restated 2021 2020 Stock 231,657 290,252 15. Dobtors Group Group As reslaled 2021 2020 Ch&rily Charity As sta1&d 2021 2020 Due within one year Trade debtors Other debtors Prepayments and accrued income 18,769 1,096 3,917 110,986 643 9,394 420 514 514 23.782 121,023 514 934 16. Creditors- Amounts falllng due wlthln one year Group Group As reslaled 2021 2020 Ch8ri(y Charity As reslaled 2021 2020 Bank overdrafts Other loans Trade creditors Other laxalion and social security Obligations under finance lease and hire purchase ¢onlracls Other creditors Accruals and deferred income 10,000 408,500 198,283 10.492 5,833 458,500 102,280 18,988 85,000 377 1,733 5,841 26,903 25,512 21,829 88,649 4,999 28.113 685,531 696,079 6.732 113,490 Page 25
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 17. Crèditors.. Amounts falling du6 after more than one year Group Group As reslaled 2021 2020 Bank loans Nel obligations under finan lease and hire PLJrchase conlrads 34,167 16,785 44. 167 50,952 44, 167 Page 26
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 18. Slatement of funds Statement of fvnds - current year Balance at 31 December 2021 Balance at 1 January 2021 Transfers inlout Income Expendlturè Unrestricted funds General Funds - all funds 3,998,439 2,645,071 12.623,343) 43S.704 4,455,871 Restricted funds Reslricled Funds- all funds 435,704 1435,7041 Totsl of funds 4,434,143 2,645,071 12,623,343) 4,455.871 Following a review of funds held and clarbfication from The Gra Trust, £435,704 of restricted funds have been transferred lo unreslricled funds in line with the objectives of the Charity. Page 27
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 18. Statement of funds Icontinueill Statement of funds - prlor year Balance al 31 December 2020 Balance 81 l January As r8slaled As resl&led 2020 Income Expendilure TTrnsfe in/oul Unrestricted funds General Funds- all funds 4, 104,347 1,973, 763 (2, 119, 252) 39,581 3,998,439 Restrlcted funds Restricted Funds- all funds 447. 789 39,581 (11,485) {39,581J 435. 104 Total of funds 4.551,536 2.013,344 {2, 130, 737) 4,434. f 43 19. Analysis of net assets betrwèen funds Analysls of net assets between funds - current year Unrestricted funds 2021 Total funds 2021 Tangible fixed assets Currenl assets Credilois due within one year Creditors due in more than one year 4.506,227 4,506,227 686,127 686,127 1685,5311 1685,5311 150,9521 150,9521 Total 4,455,871 4,455,871 Page 28
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. Analysls of net assets betweèn funds Icontinuedl Analysis of net assets between fund5 - prior year R8slricted uns1cled funds funds 2020 2020 Tol81 lunds 2020 Tangible fixed assets Current assets Creditors dLJe within one year Creditors due in more than one year 435, 704 4,023, 197 4.458,901 715,488 715,488 (696,OT9) (696,079) (44, 107) (44, 167) Total 435, 704 3,998,439 4,434. 143 20. Reconciliation of net movement In funds to net ¢a$h flow from operating activities Group Group As reslal8cI 2021 2020 Nel incomelexpendilure for the year {as per Slalemenl of Financial Actimlies) 21,728 f7 17,393) Adjustments for: Depreciation charges Interest received Decreasellincreasel in stocks De¢rease in debtors Increase in creditors Prior year adjuslmenl lo net income 154,534 1101 58.595 97.241 33,611 198,556 (257) (79,489) 38.013 141,116 75, 662 Net cash provlded by operatlng activlties 365,699 256,208 Page 29
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 21. Analysls of cash and cash equivalents Group 2021 Group 2020 Cash in hand 430.688 304,2t3 Total cash and ¢ash equivalents 430,688 304,213 22. Analysis of changes in net debt At1 .January 2021 Cash flows At31 December 2021 Cash al bank and in hand Bank overdrafts repayable on demand Debt due within 1 year Debt due after 1 year Finance leases 304.213 15,8331 1458,5001 144.1671 126,475 14,1671 50,000 10,000 122,6261 430,688 110.0001 1408,5001 134,1671 122.6261 1204,2871 159,682 144,6051 23. Operaling lease commitments Al 31 December 2021 the Group and the Charity had commff(menls lo make future minimum lease payments under non-cancellable operating leases as follows.. Group 2021 Group 2020 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 12,000 48,000 12,000 12.000 48,OQQ 24,000 72,000 84,000 Page 30
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 24. Related party transactions As slated in note 14, Linton Projects Ltd was a wholly owned subsidiary undertaking of the Charity. £275,000 (2020.. £307,500) was received by the Charity from the subsidiary under grft aid. Unsecured loans, interest free, have been provided to Linton Projects Ltd by immediate family members of the Directors ol Linton Projects Ltd and immediate family members of a Trustee of Medway Education Trust. Year end related party loan balanS are as follows.. 2021 2020 A Campbell A Ware & L Ware C Mumford & C Mumford G Mumford & E Mumford H Mumford 15.000 10.000 5,000 10,000 5,000 10,000 20,000 15,000 5,000 10,000 J Ware W Bruce 20,000 75.000 55.QOO Page 31