**Company Registration No. 03614841 (England and Wales) Registered Charity No. 1071247** 

**ACF SEVENOAKS (A COMPANY LIMITED BY GUARANTEE)** 

**Report and Financial Statements** 

**Year Ending 31 August 2020** 



## **ACF SEVENOAKS A COMPANY LIMITED BY GUARANTEE** 

## **CONTENTS** 

|**Legal and Administrative Information**<br>**Report of the Trustees**<br>**Report of the Independent Auditor**<br>**Statement of Financial Activities**<br>**Balance Sheet**<br>**Notes to the Financial Statements**|**Page**<br>**2**<br>**3 - 6**<br>**7 - 9**<br>**10**<br>**11**<br>**12 - 18**|
|---|---|



1 



## **ACF SEVENOAKS** 

## **A COMPANY LIMITED BY GUARANTEE** 

## **LEGAL AND ADMINISTRATIVE INFORMATION** 

**Company number** 03614841 

## **Registered charity number** 

1071247 

## **Governing document** 

ACF Sevenoaks is a company limited by guarantee governed by its Memorandum and Articles of Association dated 3 August 1998. It is registered as a charity with the Charity Commission. 

## **Directors and Trustees** 

M Al Fayed M A Collins C Fayed O Fayed 

## **Registered office** 

Suite 15 55 Park Lane London W1K 1NA 

## **Auditor** 

RSM UK Audit LLP 25 High Street Crawley West Sussex RH10 1BG 

## **Bankers** 

Allied Irish Bank (GB) Mayfair Business Centre First Floor Berkeley Square House 4-19 Berkeley Square London W1J 6BR 

## **Solicitors** 

Herbert Smith Exchange House Primrose Street London EC2A 2HS 

2 



## **ACF SEVENOAKS A Company Limited by Guarantee REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020** 

**_____________________________________________________________________** 

The Directors (who are also trustees of the charity for the purposes of the Charities Act) present their annual report together with the audited financial statements of ACF Sevenoaks (the company) for the year ended 31 August 2020.  The Board of Directors (BoD) confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (effective 1 January 2019) including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.  The report and statements also comply with the Companies Act 2006 as ACF Sevenoaks is a company limited by guarantee. 

## **Status and constitution** 

ACF Sevenoaks “ACFS” was formed on 7 August 1998 and began operating on 14 August 1998.  It is constituted as a company limited by guarantee in England and Wales. Since incorporation the bulk of the charity’s efforts have been directed to support of West Heath School, in Sevenoaks Kent, on land and buildings owned by the charity, including funding a program of capital works and refurbishment of school buildings. 

## **Directors and trustees** 

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows: 

M Al Fayed M A Collins C Fayed O Fayed 

The charity considers its key management personnel to be its board of trustees and the company secretary who is tasked with the day to day management of the charity. 

## **Appointment of trustees** 

As set out in the Articles of Association, unless otherwise determined by ordinary resolution, the number of members of the Board of Trustees shall be not less than two nor more than five. 

At every Annual General Meeting one third of the Trustees shall retire from office by rotation, determined by the length of service since their appointment or re-appointment, unless the minimum number for trustees would be breached. 

Trustees retiring by rotation may, if willing to act, be re-appointed to the Board at any general meeting.  Other persons may be appointed to serve as a trustee by ordinary resolution, provided the maximum number of trustees is not exceeded. 

A Trustee who retires at any annual general meeting may, if willing to act, be re-appointed. If they are not re-appointed, they shall retain office until the meeting appoints someone to act in their place or, if it does not do so, until the end of the meeting. 

Trustees may resign from the Board by written notice or be removed by ordinary resolution of the board. 

## **Trustee induction and training** 

The trustees keep up to date on their responsibilities by various means, such as reviewing the Charity Commission website, reading relevant periodicals and professional advice. 

## **Pay policy** 

The Trustees may be paid all reasonable travelling, hotel and any other reasonable expenses of whatsoever nature properly incurred by them in connection with their attendance at meetings of the Board of Trustees or committees thereof or general meetings or separate meetings of the holders of debentures of the charity or otherwise in connection with the discharge of their duties whether in the United Kingdom or elsewhere in the world. The Trustees are not entitled to remuneration as Trustees. Details of their expenses are disclosed in note 7 to the financial statements. 

3 



## **ACF SEVENOAKS A Company Limited by Guarantee REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020** 

## **Related parties and co-operation with other organisations** 

A Trustee who is in any way, whether directly or indirectly, interested in a contract or proposed contract, arrangement or dealing with the charity shall declare the nature of his interest at a meeting of the Board of Trustees. In the current year such related party transactions have been reported in note 13 of the financial statements. 

## **Objects** 

The objects are set out in the Memorandum as the promotion of education and the relief of children and young persons who are in conditions of need, hardship or distress. 

## **Aims** 

The charity’s policy is to support charity-established schools, which specialise in the provision of education to children whose mainstream education has broken down. 

## **Public benefit** 

The Trustees are satisfied that the objects are charitable and demonstrate that the charity operates for the public benefit. 

## **Review of activities** 

Following the grant of a long-term lease to the tenant, West Heath 2000, the charity’s main activity has been monitoring progress at The New School and its compliance with the lease covenants. Monitoring involves attending annual Trustee meetings and reading board minutes to understand the various systems incorporated and its financial viability. Failure of the school to meet its obligations under the lease, of which financial stability is one, may result in cancellation of the lease. 

## **Achievements** 

Continued annual compliance of the lease obligations and therefore continued support for West Heath 2000. 

## **Financial review** 

The operating deficit of £62,455 (2019: £50,695) shown in the Statement of Financial Activities arose principally from depreciation of Fixed Assets acquired in previous accounting periods and professional fees. 

## **Risk management** 

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate the exposure to these risks. The risks and related mitigation of such risks are as follows: 

- Failure of West Heath 2000 to comply with its obligations under the operating lease. 

- This is mitigated by attendance at West Heath 2000 Trustee meetings. 

## **Investment powers and policy** 

The Board of Trustees has the powers to invest the moneys of the charity not immediately required for its purposes in or upon such investments, securities or property as they may think fit. 

## **Reserves and going concern policy** 

The Trustees have established that unrestricted reserves are to be maintained to enable the charity to fulfil its primary objectives. The unrestricted reserves at 31 August 2020 were in deficit by £6,296 (2019: surplus £4,232). The designated funds being £3,303,313 (2019: £3,355,240). 

As the charity has continued to focus its activities on supporting the development of The New School, the Trustees do not consider it to be appropriate to raise funds and establish reserves for any other purpose. 

4 



## **ACF SEVENOAKS A Company Limited by Guarantee REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020** 

Once the program of capital works at The New School is completed, general fundraising will be directed towards the establishment of reserves which will ultimately enable the charity to make financial assistance of a significant amount to other newly-established schools similar in nature to The New School at West Heath.  Specific funds may be raised from time to time, to cover large capital projects at The New School which relate to the buildings and for which The New School is unable to provide funding of its own. This policy will be reviewed annually in the light of the charity’s successes in fulfilling its objectives. For the time being, reserves are maintained as a reflection of the original fundraising purpose, in particular a designated reserve equal to the net book value of Fixed Assets. 

The Trustees have considered the effects of Covid-19 on the activities of the charity and do not believe there will be any impact. The financial statements are prepared on a going concern basis as the charity has received confirmation from the Trustees that they will provide financial and other support to the extent necessary to enable the charity to continue to pay its liabilities as and when they become due for a period of not less than one year from the date of approval of these financial statements. 

## **Plans for future periods** 

The strategic plan that the charity will follow after capital works at The New School have concluded, shall include general fundraising to build reserves that will enable the charity to make financial assistance of a significant amount to other newlyestablished schools similar in nature to West Heath School.  Other specific funds could be generated to help fund large capital projects at The New School which relate to the buildings and for which The New School is unable to provide its own funding. This policy will be reviewed annually taking into account the progress of the existing capital works and the Charity’s ability to meet its other objectives. The current coronavirus (Covid-19) outbreak has not changed the future plans of the charity. 

## **Statement of Trustees Responsibilities** 

The Trustees (who are also Directors of ACF Sevenoaks for the purposes of company law) 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). 

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of its incoming resources and application of resources, including the income and expenditure of the charitable company 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 Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business. 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy, at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

5 



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## **ACF SEVENOAKS A Company Limited by Guarantee INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACF SEVENOAKS** 

## **Opinion** 

We have audited the financial statements of ACF Sevenoaks (the ‘charitable company’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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 charitable company’s affairs as at 31 August 2020 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; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 charitable company 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** 

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: 

- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. 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. 

7 



## **ACF SEVENOAKS A Company Limited by Guarantee INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACF SEVENOAKS** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Trustees’ Report. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees’ responsibilities set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so. 

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. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report . 

8 



## **ACF SEVENOAKS A Company Limited by Guarantee INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACF SEVENOAKS** 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the charitable company’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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 


Zoë Longstaff-Tyrrell (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor 25 High Street Crawley West Sussex RH10 1BG 

_27 May 2021_ 

9 



## **ACF SEVENOAKS A Company Limited by Guarantee STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020** 

|**Note**<br>**Income:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Interest received<br>**Total income**<br>**Expenditure:**<br>Charitable activities<br>4<br>**Total expenditure**<br>**Net expenditure and net movement in funds for the year**<br>**Reconciliation of funds**<br>Total funds brought forward<br>**Total funds carried forward**|**Total Funds**<br>**Total Funds**<br>**Unrestricted**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>-<br>11,514<br>350,000<br>350,000<br>12<br>7|
|---|---|
||**350,012**<br>**361,521**|
||412,467<br>412,216|
||**412,467**<br>**412,216**|
||**(62,455)**<br>**(50,695)**<br>3,359,472<br>3,410,167|
||**3,297,017**<br>**3,359,472**|



The Notes on pages 12 to 18 form an integral part of these Financial Statements 

10 



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## **ACF SEVENOAKS A Company Limited by Guarantee NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020** 

## **1. Accounting policies** 

## **a) Legal status** 

The charity is a company limited by guarantee and incorporated in England and Wales.  In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per voting member of the Charity. 

The charity’s objectives and aims are disclosed in the Trustees’ Report. 

## **b)** 

## **Accounting Convention** 

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, the requirements of the Companies Act 2006 and under the historical cost convention, modified to include the revaluation of freehold land and buildings. The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the charity’s governing document and 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 effective from 1 January 2019 (the FRS 102 Charities SORP 2019). 

The financial statements are prepared in sterling, which is the functional currency of the charitable company. 

The charity constitutes a public benefit entity as defined by FRS102. 

## **c) Going concern** 

The Trustees have considered the effects of Covid-19 on the activities of the charity and there has not been and do not believe there will be any impact. The financial statements are prepared on a going concern basis as the charity has received confirmation from the Trustees that they will provide financial and other support to the extent necessary to enable the charity to continue to pay its liabilities as and when they become due for a period of not less than one year from the date of approval of these financial statements. 

## **d) Fund accounting** 

Unrestricted Funds comprise accumulated surpluses and deficits on general funds and are available for use at the discretion of the trustees in furtherance of the general charitable objectives. 

Designated Funds are amounts that have been put aside at the discretion of the trustees.  At the year end they comprise of a Fixed Asset fund which represents the net book value of Fixed Assets held for use by the charity, and therefore not available for other purposes (Note 11). 

## **e) Income** 

Income represents the total income receivable during the period comprising donations, gifts, interest and rent receivable.  Donations received for general purposes of the charity are included as unrestricted funds. Any donations received for activities restricted by the donor are taken to restricted funds. 

12 



## **ACF SEVENOAKS A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020** 

## **Income (continued)** 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. 

## **f) Expenditure and irrecoverable VAT** 

Expenditure is recognised in the period in which it is incurred. The irrecoverable element of VAT is included with the item of expense to which it relates. 

_Charitable activities_ include the costs incurred for the provision of the School premises as well as governance costs primarily associated with constitutional and statutory requirements. 

## **g) Tangible Fixed Assets** 

Depreciation is provided on all tangible fixed assets in use, other than freehold land, at rates and bases calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: 

Improvements to buildings 

-   5% per annum 

Depreciation commences on improvements to buildings when the relevant projects are completed and the affected buildings have been returned to operating use. 

## **h) Operating leases** 

The rent receivable under a non-cancellable residential lease is at a controlled rent when demanded.  The income is credited to the Statement of Financial Activities over the period of the lease. 

## **i) Cash and cash equivalents** 

Cash and cash equivalents include cash in hand with original maturities of three months or less. 

## **j) Financial instruments** 

The charity applies the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. All financial instruments of the charity are basic and therefore measured at amortised cost. 

## **k) Tax policy** 

The charity is a registered charity and, as such, its income and gains falling within Sections 371 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to charitable objectives. 

13 



## **ACF SEVENOAKS A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2020** 

## **l) Judgements and key sources of estimation uncertainty** 

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

The trustees do not consider there to be any judgements or estimations that would have a significant effect on the financial statements. 

## **2. Donations and legacies** 

|Donations<br>**3.**<br>**Charitable activities**<br>Lease of land and buildings<br>**4.**<br>**Charitable activities**<br>Premises costs<br>Restricted donations<br>Governance costs|**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>-<br>11,514<br>-<br>11,514<br>**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>350,000<br>350,000<br>**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>51,927<br>51,927<br>350,000<br>350,000<br>10,540<br>10,289<br>412,467<br>412,216|**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>-<br>11,514<br>-<br>11,514<br>**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>350,000<br>350,000<br>**Unrestricted**<br>**Total Funds**<br>**Total Funds**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>51,927<br>51,927<br>350,000<br>350,000<br>10,540<br>10,289<br>412,467<br>412,216|
|---|---|---|
|||412,216|



14 



## **ACF SEVENOAKS** 

## **A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2020** 

|**5.**<br>**Net Income**<br>This is stated after charging:<br>Depreciation<br>**6.**<br>**Auditor’s remuneration**<br>RSM UK Audit LLP and its associates:<br>Auditors remuneration: For audit|**2020**<br>**£**<br>51,927<br>**2020**<br>**£**<br>10,500|**2019**<br>**£**<br>51,927|
|---|---|---|
|||**2019**<br>**£**<br>10,200|



**7. Staff costs and remuneration of key management personnel** The charity considers the Board of Trustees and the company secretary as their key management personnel. No members of the key management personnel received remuneration or direct reimbursement of expenses during the year. 

There were no employees other than the trustees and the company secretary during the year (2019: nil). 

## **8. Tangible fixed assets** 

|Cost<br>At 31 August 2019 and 2020<br>Depreciation<br>At 31 August 2019<br>Charge for year<br>At 31 August 2020<br>**Net book value**<br>At 31 August 2020<br>At 31 August 2019|**Freehold**<br>**Improvements**<br>**£**<br>1,273,815<br>948,332<br>51,927<br>1,000,259<br>273,556<br>325,483|**Freehold**<br>**Land and**<br>**Buildings**<br>**£**<br>3,029,757<br>-<br>-<br>-<br>3,029,757<br>3,029,757|**Total**<br>**£**|
|---|---|---|---|
||||4,303,572|
||||948,332<br>51,927|
||||1,000,259|
||||3,303,313|
||||3,355,240|



In accordance with FRS 102 section 17.16, no depreciation is charged on land as it considered to have an unlimited useful life. In accordance with the Charities SORP (FRS 102) section 10.30, no depreciation is charged on the buildings as the Trustees consider that the residual value of the buildings is likely to be at least equal to its cost included within the financial statements. 

15 



## **ACF SEVENOAKS** 

## **A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2020** 

## **9. Debtors** 

|Prepayments and accrued income<br>**10.**<br>**Creditors: Amounts falling due within one year**<br>Other Creditors<br>Accruals and deferred income<br>**Deferred income**<br>Deferred Income at 31 August 2019<br>Released from previous years<br>Amounts deferred in the year<br>**Deferred income at 31 August 2020**|**2020**<br>**£**<br>23,698<br>23,698<br>**2020**<br>**£**<br>20,040<br>34,198<br>54,238<br>23,698<br>(23,698)<br>23,698<br>23,698|**2019**<br>**£**<br>23,698|
|---|---|---|
|||23,698|
|||**2019**<br>**£**<br>9,840<br>33,898|
|||43,738|
|||23,698<br>(23,698)<br>23,698|
|||23,698|



Deferred income relates to rental income received in advance under the terms of the lease of the land and buildings. 

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## **ACF SEVENOAKS A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2020** 

## **11. Analysis of charitable funds** 

|||**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
|**Analysis of movements in unrestricted funds**||||
|Income||350,012|361,521|
|Expenditure||(360,540)|(360,289)|
|Net movement in fund||(10,528)|1,232|
|Balance 1 September 2019||4,232|3,000|
|Balance 31 August 2020||(6,296)|4,232|
|**Name of unrestricted fund**|**Description, nature and purposes of the fund**|||
|General fund|The ‘free reserves’ after allowing for all designated funds. The|||
||Trustees have set aside the general funds which they intend to use to|||
||enable the charity to fulfil its primary objectives.|||



|**Analysis of movements in designated funds**<br>Income<br>Expenditure<br>Net movement in fund<br>Balance 1 September 2019<br>Balance 31 August 2020|**2020**<br>**£**<br>-<br>(51,927)<br>(51,927)<br>3,355,240<br>3,303,313|**2019**<br>**£**<br>-<br>(51,927)|
|---|---|---|
|||(51,927)<br>3,407,167|
|||3,355,240|



|**Name of unrestricted fund**|**Description, nature and purposes of the fund**|
|---|---|
|Asset fund<br>|To purchase or pay for the repair and maintenance of buildings.|



## **12. Operating lease commitments** 

## **Lessor** 

The operating lease represents a lease of land and buildings to a third party with a remaining term of 93 years. 

At the reporting end date the charity had contracted with tenants for the following minimum lease payments: 

|Within one year<br>Between two and five years<br>More than five years|**2020**<br>**£**<br>350,000<br>1,400,000<br>30,800,000<br>32,550,000|**2019**<br>**£**<br>350,000<br>1,400,000<br>31,150,000|
|---|---|---|
|||32,900,000|



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## **ACF SEVENOAKS A Company Limited by Guarantee NOTES TO THE ACCOUNTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2020** 

## **13. Related party transactions** 

During the year, a company over which a Trustee has significant influence incurred costs of £10,200 (2019: £9,840) on behalf of the charitable company. The balance of £20,040 (2019: £9,840) remained outstanding at 31 August 2020 and is included within Other Creditors. 

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