Charity numb9r: 1066592 MEDWAY EDUCATION TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
MEDWAY EDUCATION TRUST CONTENTS Page Refer&nce and AdmSnlstratlva Detalls of tho Charlty, Its Trustee5 and Advisors Tru5tees' R¢port Trustees. Responslblliti85 Statement Indepgndont Auditors. Report on the Financlal Statem•nts Consolldated Statement of Flnanclal Actlvltles 10 Consolidatsd Balonca Sheet Charlty Balance Sheet Consolldatod Statement of Cash Flows 12 13 Notes to the Flnanclal Statements 14-29
EDWAY EDUCATION TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees S FTOSI S Bell J Bruce S Campbell T Dupont J Bruce holds lille to freehold land and buildings at Maidslone Campus, Heath Road. Maldstone, ME17 4HT. Ex Trustee, C Groombridge, holds title lo freehold land and bulldings al Maidstone Campus, Heath Road. Maidslone, ME17 4HT Charlty reglsterod numbor 1066592 Principal 0ffi¢g OneSchoolGlobalUK Maidslone Campus Heath Road Linton Kent ME17 4HT Independont auditors Byrd Link Audit & Accountancy Services Limited Honeyboume Place Jessop Avenue Cheltenham GL50 3SH Bankers HSBC Sillingboume- Dlgltal servi Branch 115 High Street Sellingbourne Kent ME10 4AL Page 1
MEDWAY EDUCATION TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The TTUStees present their report, along wllh the consolidated financial statements of Medway Education Trust Ilhe charity) and ils subsldlary, Linlon Projects Ltd, for the year ended 31 December 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice appllcable lo ¢harilies preparing their accounts in accordance with the Financial Reporting Standard applicable lo the UK and Republic of Iroland IFRS 102) {effe¢tive 1 January 2019}, the requirements of the Charille8 Act 2011 and the Trust Deed. Objectives and actlvltlos The charitable objects of thè charity are the advancement of the edu¢alion of children and young people from ages flve to eighteen in particular by assistance lo their parents to enable such children lo be laughl otherwise than as at school as dgfined in the Education Acts and any other charitable purpose for the benefit of the worldwide Christian fellowship known as the Plymouth Bthren Christian Church. In furtherance of ils objects, the Trust provides one premise under formal lease for an independent school based in Heath Road, Maidslone, Kent. ME17 4HT, which is run by OneSchoolGlobalUK IOSGUK}. A separate building is also provided to Linlon PTojects Ltd 8 Subsidiary Campus Tradlng company for local Campus & Co shop under a separate lease. The charity also provides grant funding and other fin8nclal support lo OSGUK al the discretion of the Trustees In order to enable OSGUK to provide a well balanced education al primary and secondary levels, for children and young people whose parents appreclate the Christian ethos. Success is measured in terms of the provision of appropriate facilities lo OSGUK whllsl mlnimising expenditure. This in turn, frees up funds for raising slandards of education for all Conrned and for the improvement of facilities ftsr pupils and staff alike. The Trustees have referred to the guidance contained In the Charity Commission's general guidance on publlc benefit and have regard to il when reviewing their aims and objectives, and in planning their future activities. In particular they consKl6r how planned activities will contribute lo the educational aims and objectives they have set. Volunteers are an integrdl part of the community ethos and value8 of the charity and there are strong and willing group of volunteers who assist and support the charity throughout the year. The trading activities of the charitS trading subsidiary Linton Projects Ltd {Reglstered Number 056842961, which operates a chain of convenience stores, are undertaken by volunteers. Slgnificant Activltles Throughout the year the charity has conunuod lo provide educational premises in support of the educational activllies of OSGUK. The charity has a wholly owned subsidiary company, LSnton Projects Ltd, which undertakes Iradlng activities. All proflts chargeable lo corporation lax are gifted lo the charity In support of the charitable acllvilies of the Trust. Flnanclal Revlew The charity is supported and financed principally by profits from its trading subsldiary. Linton Projects Ltd, plus otheT ad hoc donations and those raised by fundraising events and grants from the Grace Trust. The Trustees believe that the charity's funds are sufficlenl lo miligate any short to medium term risk of Teduced fundlng. The tharivs fundralsing events prlncipally operate wilhln the Brelhrgn community. As part of the Trust's commitmenl lo the highest possible standards of fundraising, the Trustees lake steps lo ensure that all fundfaising 8divities are Compliance with legislative, regulatory and best practice standards. DuTlng 2022, all interactions with the general public were carried out by volunteers. Page 2
MEDWAY EDUCATION TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Where the Trust organises fundraislng events and co-ordinate the activities of our supporters In the wider communily on behalf of the Trust and wider charities. the Trust does not use professlonal fundraisers or involve commercial participators. The Trusl seeks lo comply with all relevant standards sel out by the Fundraising Regulator in their Code of Fundraising Practi. As a policy, the TTUSt seeks to respond lo all complaints within 10 days. The mosl seiious Complaints are escalated lo Trustees so they can consider lessons learnt. There have been no complalnts about fundraising activity in Ihe year ended 31 Dember 2022. Over the period the Trust conllnued lo undertake significant efforts lo ensure compliance with the General Data Prolecllon Regulallon IGDPRI. which came in to effect in May 2018. We remain entiTely committed lo protecting personal information of our supporters and beneficiaries. This work will continue during 2023 and beyond. In the year ended 31st December 2022 the charity reported a nel surplus of £107.10512021'. deficit of £42.0141. The group reported a net Surplus £132,25612021-. surplus of £21.728). Al the year end the charlty had nel current assets of £138.066 {2021.' net current assets of £88,408). The group had net current assets of £50,15212021'. nel Current assets of £5961. The charity's policy is lo maintain minimum free reseryes at a level which equates to six months, unreslrlcled expenditure. This is approximately £5,000. At the year ended 31 Dember 2022 the free roserves ol the Trust were £138,06612D2f.' £88,408). After making approprlale enquiries. the Trustees havè a reasonable expectation that the charity has 8dequale resources to continue in operational existen for the foreseeab16 future. For this reason, il continues to adopt the going concern basis in preparing the financial statements. Further details regardlng the adoption of the going concern basis Can be found in the Accounting Policies. Prlnclpal Risks The Trustees have examined the major slralegic, business and operational risks that the charity faces. The Trustees are satisfied that the major risks identified have been adequately miligaled where necessary. It is recognised that systems can only provide reasonable bul not absolute assurance that major risks have been adequately managed. The PTinclpal risks to the charity are: rlsk of damage to the property held by the charity lalthough the propety holds property Insurance)., risk of closure or r8lo¢alion of the schooling by Oneschool Global UK {considered unlikely)., and risk of fall in trading activities of the wholly owned trading subsidiary, either due lo a fall in customer loyally or a slgnificanl increase in suppller prices (closely monitored by the trading subsidiary dlreclors who would then lake approprSale action). There were no serlous Incldents relating to the charity over the yeaT lo report. Plans For Futurn Pariods The Trustees plan to wnlinue lo support OSGUK to provide a quallly and deliver a consislenl and high level of educational experience and outcome for all students and staff, in accordanco with the charity's ethos and values. structure, Govarnanco and Management Medway Education Tnjsl Is constituted by a Deed of Trust dated 08 October 1997. amended 05 January 2005 and Ss registered with the Charity Commission for England and Wales. The Trustees who setved during the year and since the year end are set out on page 1. None of the Trustees, nor any person conne¢ted with them, received any remuneration from the charity in the year ended 31 Page 3
MEDWAY EDUCATION TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER2022 December 202212021.. £nill. The power lo appoint Trustees is Invested in the existing Trustees subject lo the charity Deed requirement. Trustees are selected according to their own specialism in a partlcular field and are expected to Pursue that specialism. New Trustees are Snstructed in the need lo completely adhere to the elhos and values of the charity. New Trustees are appointed al charity meetings and Irainlng Is given by the outgolng Trustee being replaced, along with support from fellow Trustees. Decision making remains with the Trustees and there are no key management personnel to whom management is delegated. As such, 8iranyemenls for selling pay and remuneration of key management personnel are not required at this time. Approved by order of the members of the board of and signed on their behalf by: TTuslees on J Brucg Trustee Page 4
MEDWAY EDUCATION TRUST STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees are responsSble for PTeparing the Trustees, Report and the financial 8talemenls in accordance with applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepled Accounting Praclicel. The law appllcable lo charities in England & Wales requires the Tiuslees lo prepare financial statements for each financial year which give a true and fair view of the stale of affaiTS Df the Group and the Charity and of their Incoming resources and application of resources, including their income and expenditure. for that period. In preparlng these financial slalemenls, the Trustees are requlred to.. sele¢l suitable accounting policies and then apply them consistently., observe the methods and principles of the Charilles SORP IFRS 1021.. make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material departures dlsclosed and explained in the financial slatement¥'. prepare the financial slalemenls on the going concern basis unless It Is Inappropriate lo presume that the Group will conllnue in business. The Trustees are responsible for keeplng adequate accounting records that are sufficienl to show and explain the Group and the Charll*s transactions and disclose with reasonable accuracy al any lime the finanal position of the GTOUP and the Charity and enable them lo ensure that the financial statements comply with Ihe Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees and signed on ils behalf by. J Bru¢9 Trustee Date.. ICt.06 Z Page 5
MEDWAY EDUCATION TRUST INDEPENOENT AUDITORS. REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST Opinion Wg have audited the financlal slalemenls of Medway Education Trust Ilhe 'parenl chaiity,) and its subsldiarles (the 'group'l for the year ended 31 December 2022 which comprise the Consolidated Slalement of Financial Aclivilies, the Consolidated Balan Sheet, the Charity Balance Sheet. the Consolidated Slalemenl of Cash Flows and the Telaled notes, including a summary ol significant accounting policles. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally A¢pted Accounting Praclicel. The financial statements have been prepared in accordan with Accounting and Reporting by Charitles preparing their accounts in accordance with the Financial Reporting Standards appliGable in the UK and Republic of Ireland IFRS 102) in pference lo the Accounting and Reporting by Charities.. Stslemenl of Recommended Practi issued on 1 April 2005 which is referred to in the extant fegulalions bul has been withdrawn. Thls has b&en dong in OTder for the accounts to PTovide a true and fair view in accordance with the Generally Accepted Accounting Practi effective for reporting periods beginning on or after 1 January 2015. In our opinion the fJnanclal 8tstements'. give a true and fair view of the state of the Group's and of the parent charivs affairs as al 31 December 2022 and of the Group's incorning 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,. and have been prepared In accordance with the requirements of the Charities Act 2011. Basis for oplnSon We conducted our audit in accordance with Inlemational Standards on Auditing IUKI {ISAs IUKI) and applicable law. Our responsibilities undei those standards are further described in the Auditors, re5ponsibililies for the audit of the financial slalemenls section of our report. We are independent of the Group in accordance with the ethical requirem8nls that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Stsndard. and we have fulfilled ou¥ other ethical responsibilllles In accordan with these reqU1MentS. We believe that the aud1 evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons ralatlng to golng concern In auditing the financial slatemenls, we have concluded that the Trustees, use of the going concern basls of accounling in the preparatlon of the financial statements is appropriate. Based on th8 work we have performed, we have not identified any material UnrtaInlieS relating to events or conditions that, indivldually or collectwely, may cast significant doubl on the Group's or the parent charitys ability lo continue as a going con¢ern for a period of at least twelve months from when Ihe financial statements are aulhorised for issue. Our responslbililies and the re8pon8ibililies of the Trustees th respect lo going concern are described in the relevant secllon8 of this report. Page 6
MEDWAY EDUCATION TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST ICONTINUEDI Other Infomiatlon The other information comprises the information included in the Annual Report other than the financial slalemenls and our Auditors, Report Ihereon. The Trustees are responsible for the other infDrmalion contained within the Annual Report. Our opinSon on the financial statements does not cover the other information and. except lo the exlenl olheTwise explicitly staled in our report, we do not express any form ol assLJrance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other inforrnalion is materially Inconsistent with the financial stalemènls Dr our knowledge obtained in the course of the audit, or otherwise appeaTS lo be materially misstated. If we identify such mal&rial inconsislencles or apparent rnalerial misslalements. we are required to delermlne whether this gives rise to a material misslalemenl in the financial slalemenls Ihemsebves. If, based on the work we have p&rformed, we conclude that there is a material misstatement of this other Informallon, we are required to report Ihal fact. We have nothing lo report in this regard. Matters on which we are roquired to report by exception We have nothing lo report In respect of the following maller8 wheie the Charities (Accounts and Reports} Regulations 2Q08 requires us to report lo you if, in our opinion.. the information given in the Trustees, Report is inconsistent in any matertal respect with the financial slalemenis-, or the parent Charity has not kept sufficlenl accounting records,. or the parent Charity financial slalemenls are not in agreement with the accounting records and returns. or we have not received all the infomation and explanations we requlre foy our audit. Rasponslbilities of tmstees As explalned More fully in the Trusl8es' Responsibilities Stalemonl, the Trustees are responsible for the preparation of the financial slalements which give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the pveparation of financial stslemenls th8t are free from malerlaS misslalemenl, whether due to fraud or error. In preparlng the f1nancial stalemenls, the Trustees are responsSble for assessing the Group's and the parent charills abllity to continue as a going COnr, dis¢losing, as applicable, matters related lo going ¢oncem and using the going concern basis of accounting unless the Trustees either intend lo liquidate the Group or the parent charity or to cease operations, or have no realistic alternative bul lo do so. Page 7
MEDWAY EDUCATION TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST {CONTINUEDI Audltors. responsibilitles for the audit of the financlal ststsments We have b&en appc>inled as audllor under sedion 1 $1 of the Charities Act 2011 and report in accordance th the Act and relevant regulations made or having Qffecl Ihereunder, Our objectives are to obtain reasonable assurance about whether the flnancial slalements as a whole are free from material misstatement, whether due to fraud or eTror, and lo issue an Audllors, Report that includes our opinion. Reasonable assurance is a hlgh level of assurance, bul is not a guarantee that an audit condu¢led in accordan wllh ISA8 IUKI will always detect a material misslaternenl when il exists. Misstatements can arise from fraud Dr error and are considered material if. individually or in the aggregate, they could reasonably be expected lo Influence the econornic decisions of users taken on the basis of these financial statements. Irregularities. including fraud, are Instances of non-compliance wslh laws and regulations. We des procedures in line with our responsibilities, outlined above, lo delect material misstslements in respect of irregularities, including fraud. The extent lo whlch our procedures are capable of detecting irregularities. induding fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks wllhln which the charity and the group operates, focusing Dn those laws and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the finan¢iaS statements. The law8 and regulations we considered in this context were the Charity Commission, Charities Act 2011, HM Revenue & Customs and the Companies Act 2006 {for the subsidiary company). We have assessed the impact of breaches in such laws and regulations and consldered whether any such findings have a rnalerial impact on the financial $18lements. Audit prOdreS Gonducted including making enquiries with Trustees and mat)agemenl as well as revlewing Correspondenco and legal expenditure. We have considered the risk of management override of controls. Our audll procedures to Tespond to this risk Included enquiries of management, and the Trustees about their own identification and assessment of the risks of irregularities, samplg lesling on the posllng of journals, reviewing accounting estlmales for biasès and reviewng regulatory corresponden. Another area of risk is the risk of fraud within revenue iecognilion. Our procedures to respond to this risk included sample testing of income streams from source and agreelng through to the financial system and bank slalemenls. Our audit procedures, toeglher with our assessment of risks identified at planning were transparent to the charity and have b8en communicated lo the Trustees as well as the engagement team. Owing to the nature of an audit, where we can only work on a sample of financial transaction8, there is an unavoidable risk that we may not have detected some material misstatements the financial slalemenls, even though we have properly planned and porformed our audit in accordan with audlling standards. For example, the further removed non- compliance wlth laws and regulations lirregulariliesl are from the events and transactions reflected in the financial slalemenls. 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-deleclion of irregularities, as these may involve collusion, forgery, intentional omissions. misrepresentations, OT 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 regulalitsns. Ultimalely, 11 is the responsibllily of the Trustees for the prevention and detection of fraud ' 8nd non-compllance. A further description of our re5ponsibililies for the audit of the financial statements is IDcaled on the Financial Reporting Council's website al: www.frc.o .uklaudilorsres This de8criplion lorms part of our Auditors, Report. Page 8
MEDWAY EDUCATION TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF MEDWAY EDUCATION TRUST ICONTINUEDI Us• of our report This report is Made solely to the charills Trustees. as a body, in accordance with Part 4 of the Charltie8 (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's Trustees thos8 mallers we aTe reqUId to slate lo them in an Auditors, Report and for no other purpose. To the fullest extent permilled by law, we do not a¢p1 or assume responsibility ID anyone other than the charity and ils Trustees, as a body, for our audit work. for this report, or for the oplnions we have forrned. yrd Llnk Audlt & Accountancy Servl¢&s Llmltsd Honeyboume Place Jessop Avenue Chellenham GL50 3SH Dale.. 20 July 2023 Byrd Link Audit & Accountancy Services Limited are eliglble to o¢1 as auditors in temis of section 1212 of the Companies Act 2006. Page 9
MEDWAY EDUCATION TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted funds 2022 Totsl funds 2022 Tolal lunds 2021 Note Income from: Donations and legacies ChaTilable acllvities Other trading aclivllies Investments 235,358 14,167 2,726.646 18 235.358 14,167 2,726,646 18 193,520 17,000 2.434,541 io Total Income 2.976,189 2,976,189 2,645,071 Expenditure on: Raising fLJnds Charitable activities 2,341.513 502,420 2,341,513 502,420 2.095.799 527.544 Total expenditure 2,843.933 2,843,933 2,623,343 Net movernont In fund$ 132,256 132,256 21,728 Reconclllatlon of funds: Total funds brought fomard Nel movement in funds 4,455,871 132,256 4,455,871 132,256 4,434, 143 21,728 Total funds carrled forniard 4,588.127 4,588,127 4,455,871 The Consolidated Slalement of Financial Activit$ includes all gains and losses recognised in the year. The notes on pages 14 to 29 fomi part of these financial stalemenls. Page 10
MEDWAY EDUCATION TRUST CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 Noto Flxod assets Tanglble assets 12 4.575,928 4,506,227 4,575.928 4.506,227 Current assets Stocks Debtors Cash al bank and in hand 260,880 189,187 245.737 231,657 23, 782 430,688 14 695.804 686. 127 Creditors.. amounts falling due within one yeai 1645,652} (685,531) Net CUTrent assets 50,152 5g6 Totsl assets less current Ilabllltle$ 4,626,080 4,506,823 Creditors.. amounts falling due after more than one year 16 (37,9621 (50,952) Net assets excludlng penslon asset 4,588,118 4,455,871 Total net asgets 4,588,118 4,455,871 Charlty fund5 Restricted funds Unreslricled funds 17 General funds 17 4,588,118 4,455.871 Total unrestricted funds 17 4,588,118 4,455,871 Total funds 4,588,118 4,455,871 The financial ytslemenls were approved and orised for issue by the Trustees and signed on their behalf by.. J Bru¢ Trustee Dale.. The notes on pages 14 to 29 form part of Ihese financial slalemenls. Page11
MEDWAY EDUCATION TRUST CHARITY BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 Note Flxed assets Tangible assets Investments 12 4,059,929 92,502 4,094,982 4,152.431 4,094,984 Current ass•ts Debtors Cash al bank and In hand 14 38.185 111,516 514 94.626 149.701 95,140 Creditors.. amounts falllng due within one year 15 {11,635} (6,732) Not current assets 138,066 88,408 Total a$sgts less current Ilabilitigs 4.290.497 4, 183,392 Net assets ex¢luding penslon asset 4,290,497 4, 183,392 Total ngl assets 4.290.497 4, 783,392 Charlty funds Restricted funds Unrestricted fund8 17 17 4,290,497 4, 183.392 Total funds 4,290,497 4. 183,392 The Charitys net movement In funds for the year was £107.105 (2021- £(42,014)}. The financial statements were ap Joved and authorised for issue by the Trustees on and signed on Ihelr behalf by-. The nolos on pages 14 to 29 form part of these financial slalements. Page 12
MEDWAY EDUCATION TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Cash flows from operatlng activities Nel cash used in operating actlvities 116.117 365.699 Cash flows from Investlng actlvities Purchase of tangible fixed asset Interest received Disposal of tangible tixed asset 1233.187) (202,879) io 1,019 Net cash used in Investlng o¢t&vltles {233,178} 1201.B501 Cash flows from financing actlvltles Repayments of borrowing New finance leases Repayments of finance leases (64,0001 (60,OQOJ 22.626 13,890) Net Cash u$ed in finan¢lng activities 167,890) {37,3741 Change in cash and ¢a$h equlvalents In the year Cash and cash equivalents at the beginning of the year 1184,951> 430,688 126.475 304,213 Cash and cash ¢quivalents at the end of the year 245.737 430,688 The notes on pages 14 10 29 form part of those financial slalements Page 13
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 G8noral infomiation Medway Education Trust is an unincorporated ¢haTily (registered number 10665921 registered in England and Wales. The regislered address is OneSchoolGlobalUK. Maidslone Campus, Heath Road, Linlon, Maidslone. Kent. ME17 4HT. Accounting poll¢l&s 2.1 Basis of preparatlon of financial Statements The financial slalements have been prepared in accordance ¥th the Charities SORP IFRS 102}- Accounllng and Reporting by Charities.. Slalemenl ol Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportins Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financtal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the CharS1ies AGI 2011. The financial statements have been prepared to glve a 'lru8 and fairf view and have dgparted from the Charities (Accounts and Reports} Regulations 2008 only to the exlenl required to provide a 'lrue and fair, view. This departure has involved following the Charities SORP IFRS 1021 published in October 2019 rather than the Accounting and Reporting by Charities= Slalement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The finan¢ial statements have been prepared lo give a 'lrue and fair VIBW and have departed from the Charities {Accounls and Reports) Regulations 2D08 only lo the extent required lo provide a 'true and fairf 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 Practice effe¢live from 1 April 2005 which has Sin been withdrawn. Medway Education Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognlsed at hislorical cost or transaction value unless otherwise staled in the relevant accounting policy. The Consolidated $181emenl of financial activities ISOFAI and Consolidated balance sheet consolidate the financial slalements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charsty has also taken advantage of the exemption availabl8 to a qualifying entity in FRS 102 from the Tequiremenl tts present a Charity only statement of cash flows and certaln disclosures about the charills financial instruments within the consolidated accounts. No separate SOFA has been prepared for the Charlty alone. 2.2 Golng concorn The Twstees are of the opinion that there is sufficlenl funding in place lo continue acllvllles of the charity. Therefore, the accounts have been prepared on a golng concern basis. Pagg 14
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng pollcles {contlnuedl 2.3 Incomg All income is recognised once the Charity has enlillemenl to the income, il 18 probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolldaled Statement of Financial Activities on a receivabl8 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 income is received in advance of entillemenl of receipt, its recognition is deferred and included in creditors as deferred in¢ome. Where entillemenl occur8 before income is received, the income Is accrued. Inme lax recoverable In relation to investment Income is recognised at the lime the investment Income is receivable. 2.4 Expanditure Expenditure is recognised once there is a legal or conslruclive obligation lo transfer economic benefit lo a thSr4J party, it is probable that a transfer of economic benefits will be required in setllernenl and the amount of the obligation can be measured reliably. Expenditure is classified by actlvity. Expenditure on ¢harilable activities is incurred on directly undertaking the aclNilies which further the Group's objecttves, as well as any associated support costs. All expenditure is inclusive of Irrecoverable VAT. 2.5 Intorest recgivable Interest on funds held on deposit Is Induded when receivable and the amount Can be measured reliably by the Group., this is normally upon notification of the interest pald or payable by the institution with whom the funds are depDSlted. 2.6 Tanglble flxod a$$ots and depTeciatlon Tangible fixed assets ¢osling £500 or more are capilalised and recognised when future economlc benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognlsed al cost. After recognition, under the cost model. tangible fixed assets are measured al cost less accumulated dgp¥ecialion and any accumulated impairment losses. All costs incurrèd lo bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. DepTecialion Is charged so as to allocate the cost of tangible fixed assets less their resSdual value over their estimated useful Ilves, Depreclallon is provided on the following basis.. Freehold property Property improvements- Linlon Projects Ltd Motor vehld8S Fixtures and fillings 2% straight line 1 OYO straight line 25Dh straight line 20Yo reducing balance Page15
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 A¢¢ounting policies Icontlnuedl 2.7 Invostmgnts Investments in subsidiaries are valued ot cost less provision for impairment. 2.8 Sto¢k$ Stocks are valued al the lower of Cost and nel realisablè value after rllaking due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 2.9 Dgbtors Trade and other debtors are recognised al the selllement amount after any trade discount offered. Prepayfftenls are valued at the amount PTepaid nel of any trade discount8 due. 2.10 Cash at bank and in hand Cash al bank and in hand Includes cash and short-temi high5y liquld investments with a short maturity of three months or less from the dale of acquisition or opening of the depos11 or similar account. 2.11 Llabilltios and provisions Llabilities are Tecognised when there Is an obligation at the Balan Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the selllemenl can be ests'mated reliably. Liabilities are recognised al the amount that the Charity anticipates il wlll pay to settle the debt or the amount il has received as advanced payments for the goods or 8ervlces il mtjst provide. Provisions are measured at the best estimate of the amounts required to sellle the obligation. Where the effed of the Ilme value of money Is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rale that reflects the risks specific to the liability. The unwindlng of the discount is recognised in the Consolidated Slalemenl of Financial Activities as finance cost. 2.12 Financlal Instruments The Group only has financial assets and financial liabllilies of a kind that qualify as basic financial instruments. Basic flnancial instruments are initially re¢ognised al transaction value and subsequently measured al their settlement value. 2.13 Fund accountlng General funds aTe unreslricled funds whlch are available for use al the discretion of the Trustees in furtharance of the general objedives of the Group and which have not been designated for other purposes. Restricted funds are funds which are lo be used in accordance with specific reslrlclions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and adminlslering such funds are chBrged against the specific fund. The aim and use of each reslricled fvnd is sel oul In the notes to the financial statements. Page 16
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Income from donatlons and l•gacles Unrestricted funds 2022 Total funds 2022 Tot81 funds 2021 Donallons Other Donallons and Grants 129,626 105,732 129,626 105.732 47,240 146,280 235,358 235,358 193,520 Total 2021 193,520 193,520 Income from charltablg actlvlties Unrestricted funds 2022 Total funds 2022 Total funds 2021 Rent81 Income 14,167 14,167 17,000 Total 2021 17,000 17,000 Income from other Irading activitie$ - Llnton ProJ8cts Ltd Income from non charltablè tradlng actlvltles Unrestricted funds 2022 Total funds 2022 Tofal funds 2021 Sales Other income 2,622,570 104,076 2,622.570 104,076 2,372,3g5 62,146 2,726,646 2.726,648 2,434,541 Total 2021 2,434,541 2,434,541 Page 17
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Investment Income Unrestrlcted funds 2022 Total funds 2022 Total funds 2021 InleTesl income Interest receivable 10 18 18 10 Total 2021 10 10 Expgnditure on tradlng activitles - Llnton Projects Ltd Other trading exponses Unr&strlcted funds 2022 Total funds 2022 Total funds 2021 Cost of sales Administration expenses 5nteTesl payable Depreciation 2,031,283 269,009 13.541 27,680 2.031,283 269.009 13,541 27,680 1,815.824 244,792 8,239 26.944 2,341.513 2,341.513 2,095,799 Tolal 2021 2,095,799 2,095.799 Page18
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2022 Analysls of oxpandlturo on charitabl• activltlas Summary by fund type Unrestricted funds 2022 Total 2022 Tot81 2021 Charitsble Activities 502,420 502.420 527.544 Total 2021 527,544 527,544 Analysls of expondltur• by actlvitigs Activitles undortaken diTectly 2022 Support costs 2022 Total funds 2022 Total funds 2021 Charitable activities 398,914 103,506 502,420 527,544 Totsl 2021 412,430 115,114 527,544 Analysls of direct costs Total funds 2022 Total funds 2021 Activltles 2022 Donations 398.914 398.914 412,430 Total 2021 412,430 412,430 Donallons were made lo OSGUK. Page19
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Analysls of gxpanditure by activities {contlnuèdl Analysis of support co$t$ Total funds 2022 Tol81 funds 2021 Activities 2022 Deprecialiorb other costs Finance charges Professional fees Premises costs 93.964 93.964 93.173 (t,087) 1,415 ii,ioi 10,512 102 102 6.329 3.111 6,329 3.111 103,506 103,506 115,114 Tol812021 115,114 115,114 Staff costs are nil. Medway Educatlon Trust is run wholly by volunteers. 10. Audltors. rgmuneFation The audilor8' remuneration amounts lo an auditor fee of £4,525 (2021 £5,000), and and non audit services of £2.S251202f - £2,250}. 11. TTUStees' r&mungration and expenses During the year. no Trustees reiVed any remuneration or other benefits (2021- £NIL). During the year ended 31 Dember 2022. no Trustee expenses have been incurred (2021- £NILJ. Page 20
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12. Tangible flxed ossots Group Freehold property Motor Flxtures and vehicles fittlng$ Total Cost or valuatlon Al 1 January 2022 Additions 5,500.385 176,014 25.500 180,071 57,173 5.705,956 233,187 At 31 December 2022 5,676.399 25,500 237,244 5,939,143 D9preciatlon Al 1 January2022 Charge for the year 1.108.276 135.806 3,825 6.375 87,628 21.305 1.199.729 163.486 At 31 December 2022 1.244,082 10,200 108,933 1,363,215 Net book valuè Al 31 December 2022 4,432,317 15,300 128.311 4,575.928 Al 31 Decembgr 2021 4,392, 109 21,675 92.443 4,506,227 Page 21
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12. Tanglblo fixed assets Icontinuedl Charity Freehold property Cost or valuatlon Al 1 January 2022 Additions 5,089,494 58,909 At 31 Dember 2022 5,148,403 Dapreciatlon At 1 January 2022 Charge for the year 994.511 93,963 Al 31 December 2022 1,088,474 Net bookvalue Al 31 December 2022 4,059,929 Al 31 Dec8mber 2021 4,094,982 Page 22
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. FSxed asset InvgStment5 Invèstmonts In Subsidiary ompanies Charity Cost or valuation At l January2022 92,502 Al 31 December 2022 92.502 Net book value At 31 De¢ember 2022 92.502 At 31 December2021 92,502 Principal subsidiaries The following was a subsidiary undertaking of the Charity.. Regi5tsred offlc• or princlpal Prlncipal actlvlty place of business Name Company number Linlon Projects Ltd 055684296 OSGUK Maidstone Campus, Heath Road, Maidstone. Kent, ME17 4HT Sale of retail goods Included In consolldatlon Yes The financial results of the subsidiary for the year were= Nam$ Incom• ProfiUILoss} I Surplusl (Deficitl for the year Not a$sats Linlon Projects Ltd 2.725,605 384,093 390,124 Page 23
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. D•btors Group 2022 Group 2021 Charity 2022 Charity 2021 Due wlthln one year Trade debtors other debtOT8 Prepayments and accrued income Tax re¢overable 132,364 1.453 d,729 50,641 18.769 1,096 3,917 3,000 514 514 34.671 189.187 23,782 38,185 514 15. Creditors: Amounts falling duè within one year Group 2022 Group 202f Charlty 2022 Charity 2021 Bank loans Other loans Trade crediloTS Other taxation and social security Obligations under finance lease and hire purchase contracts Other Creditors Accruals and deferred income 10,000 354,500 193,541 10,000 408.500 198,283 10,492 2.235 1. 733 4,941 42,341 40,329 5,841 26,903 25,512 9.400 4,999 645.652 685.531 11,635 6, 732 16. Creditors: Amounts falllng due after more than ong year Group 2022 Group 2021 Bank loans Net obligations under finance lease and hire purchase contracts 24,167 13,795 34,167 16,785 37.962 50,952 Page 24
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17. statement of funds statement of funds- Current year Balance at 31 December 2022 Balanca at I January 2022 Income Expendltur• UnTestri¢ted funds General Funds- all funds 4,455.871 2,976,180 12,843.933) 4,588,118 statement of funds- prior year B81ance al 31 D8cenJber 2021 8alanc8 al l January 2021 TTrnsfers inloul Income Expenditure Unrostrlcted funds G8neTal funds 3,998,439 2.645,071 (2,623.343) 435, 704 4,455,871 Rostrictad funds Reslrlcted funds 435, 704 (435. 704) Total of lunds 4,434, 143 2,645,071 (2,623,343) 4.455,87f Followlng a review of funds held, and clarifi¢alion from The Gra Trust, £435.704 of restricted funds were Iransferred lo unrestricted funds in Ilno with the objectives of U)e Charity in the year ended 31 Dember 2021. P8ge 25
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Summary offunds Summary offunds- currentyear Balance at 31 D•comber 2022 Balan¢0 at 1 January 2022 Incomè Expendltur8 General funds 4.455,871 2.976,180 12,843,933) 4,S88,11B Summary of funds- prloryoar Balance 8t 31 December 2021 Balgnce al 1 Jsnuary 2021 Transfers in/oul InGomg Expendllure General funds Restricted funds 3,998,439 435,704 2.645,071 (2,623,343) 435,704 (435, 704) 4,455.871 4,434, 143 2,645,071 f2,623.343) 4,455.871 19. Analysi5 of net assets betwagn funds Analysis of net ass8ts between funds - current year Unrestricted funds 2022 Total funds 2022 Tangible fixed assets Current assets CTedilors due within one year Creditors due in more than one year 4.575,928 4.575,928 698,637 698.637 1648.485) 1648,485) 137,9621 137,962) Total 4.588,118 4,588.118 Page 26
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 19. Analysls of net assets betwegn funds {¢ontinuedl Analysis of net assets between funds - prlor year UnrestriGted fvnds 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one yeaT 4,506,227 4,5Q6,227 686,127 686, 127 (685.531) (685,531) (50,952) (50,952) Total 4,455,871 4,455.871 20. Reconclliatlon of net mov•ment In funds to not cash flow from operatlng actlvltSes Grovp 2022 Group 2021 Nel income for the year {as peT Slalement of Financlal Activities) 132.256 21,728 Adjustrnent$ far: D8precialion charges Interest received Decreasellincreasel In stocks DeueasellIn¢aseI in debtors Increasel{decreas8} in creditors exd. loans and HP 163.486 91 129,2231 1168.2361 17.843 154,534 (io) 58,595 97,241 33,611 Net cash provldod by operating actlvltles 116,117 365,699 21. Analysls of cash and cash equivalents Group 2022 Group 2021 Cash in hand 245,737 430,688 Total cash and cash equlval8nts 245,737 430,688 Page 27
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2022 Analy$ls of changes In net debt At1 January 2022 Cash flows At31 December 2022 Cash al bank and In hand Debt due within l year Debt due after 1 year FInan leases 430.688 1418.5001 134,167} 122,6261 (184,951} 54,000 10.000 3,890 245,737 1364,5001 124,1671 118,736) 23. Opgrating lèas8 commltmants At 31 December 2022 the Group and the Charity had commitments lo make future mlnimum lease payments under non-cancellable operating leases as follows.. Group 2022 Group 2021 Not late¥ than l year Later than 1 year and not later than 5 years Later than 5 years 12,000 48.000 12,000 48.000 12,000 60,000 72,000 Page 28
MEDWAY EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 24. Relatgd party transactions As stated note 14, Linton Prolects Ltd was a wholly owned subsidiary undertaking of the Charity. £360,00012021.. £275,000) was received by the Charity from the subsidiary under gift aid. Unsecured loans, interest free, have been provided lo Linlon Projects Ltd by Immediate family membels of the Directors of Linlon Projects Ltd and immediate family members of a Trustee of Medway Educallon Trust. Year end related party loan balances are as follows.. 2022 2021 A Campbell A Ware & L Ware C Mumford & C Mumford G Mumford & E Mumford H Mumford J Ware W Bruce 15,000 10,000 15.000 10,000 5,000 to,000 5,000 10,000 20,000 10,000 10.000 20,000 65,000 75.000 Loan balances owng to C & C Mumfor(l and H Mumford at 31 Decernber 2021 have been repaid during the year ended 31 December 2022. Payments totalllng £455.71 were made lo Woodville Consulting, of which S Bell is Sole Properielor. for the supply of door, architraves, ironmongery and kitchen items. This is included within Medway Education Trust's expenditure for the year ended 31 December 2D22. Donations totalling £12,880 were received from Trustees and their Glose family members during the year ended 31 December 2022. No donations were reslricled. Page 29