Charity number: 1071852
SCEPTRE EDUCATION
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
SCEPTRE EDUCATION
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 3 |
| Trustees' responsibilities statement | 4 |
| Independent auditor's report on the financial statements | 5 - 8 |
| Consolidated statement of financial activities | 9 |
| Consolidated balance sheet | 10 |
| Charity balance sheet | 11 |
| Consolidated statement of cash flows | 12 |
| Notes to the financial statements | 13 - 31 |
SCEPTRE EDUCATION
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021
| Trustees | B Tunley |
|---|---|
| R C Kingston | |
| J Douglass | |
| A Clarke | |
| S Calder | |
| H Purdom | |
| E Remmington | |
| Charity registered number 1071852 Principal office Oneschool Global UK Dunstable Campus Ridgeway Avenue Dunstable LU5 4QL Chief executive officer Alvin Clarke Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Cheltenham GL50 3PR Bankers NatWest 210 Butterfield Great Marlings Luton LU2 8DL |
Page 1
SCEPTRE EDUCATION
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees of Sceptre Education 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 (FRS 102).
Objectives and Activities
The charitable objects of the Trust are the advancement of the education of children and young people through the provision of education sites 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.
In furtherance of its objects, the Trust provides two premises under formal lease for an independent school based in Ridgeway Avenue, Dunstable, Bedfordshire, LU5 4QL and 468a Billing Road East, Northampton, NN3 3LF which are run by OneSchool Global UK (OSGUK).
There is also a building on the 468a Billing Road East, Northampton, NN3 3LF site used by the Subsidiary company Pinnacle EU Ltd.
The Trust also provides grant funding and other financial support to OSGUK at the discretion of the Trustees in order to enable OSGUK to provide a well balanced education at primary and secondary levels, for children and young people whose parents appreciate the Christian ethos.
Success is measured in terms of the provision of appropriate facilities to OSGUK whilst minimising expenditure. This in turn, frees up funds for raising standards of education for all concerned and for the improvement of facilities for pupils and staff alike.
The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit and have regard to it when reviewing their aims and objectives, and in planning their future activities. In particular they consider how planned activities will contribute to the educational aims and objectives they have set.
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, Governance and Management
Sceptre Education is constituted by a Deed of Trust dated 28.07.1998, (amended 19.08.2003) and is registered with the Charity Commission for England and Wales.
The Trustees 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 (year ended 31st December 2020 £nil). The power to appoint Trustees is invested in the existing Trustees subject to the Trust Deed requirement. Trustees are selected according to their own specialism in a particular field and are expected to pursue that specialism. New Trustees are instructed in the need to completely adhere to the ethos and values of the Trust.
The Trustees have examined the major strategic, business and operational risks that the Trust faces. The Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
Significant Activities
Throughout the year the Trust has continued to provide educational premises in support of the educational activities of OSGUK.
Page 2
SCEPTRE EDUCATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The Trust has a wholly owned subsidiary company, Pinnacle Trading EU Ltd (Company no 06652678) which undertakes trading activities. All profits chargeable to corporation tax are gifted to the Trust in support of the charitable activities of the Trust.
Financial Review
In the year ended 31st December 2021 the Group reported a net surplus of £20,295 (2020 surplus of £11,502). All funds are unrestricted.
The Trust is supported and financed principally by profits from its trading subsidiary Pinnacle Trading EU Ltd plus other ad hoc donations and those raised by fundraising events and grants from the Grace Trust. The Trustees believe that the Trust’s funds are sufficient to mitigate any short to medium term risk of reduced funding.
The Trust’s fundraising events principally operate within the Brethren community and professional fundraisers are not used. Neither the Trust nor any person acting on behalf of the Trust was subject to an undertaking to be bound by any voluntary scheme for regulating fund-raising, or voluntary standard for fund-raising in respect of activities on behalf of the trust.
The Trustees’ policy is to maintain minimum free reserves at a level which equates to six months’ unrestricted expenditure. This is approximately £16,500. At 31st December 2021 the free reserves of the Trust were £36,652 (31st December 2020 £146,837).
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Plans For Future Periods
The Trustees plan to continue to support OSGUK to provide a quality and deliver a consistent and high level of educational experience and outcome for all students and staff, in accordance with the Trust's ethos and values.
Approved by order of the members of the board of Trustees and signed on their behalf by:
J Douglass Trustee Date: 25.01.2023
Page 3
SCEPTRE EDUCATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state 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 statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the 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 its behalf by:
J Douglass Trustee Date: 25.01.2023
Page 4
SCEPTRE EDUCATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SCEPTRE EDUCATION
Opinion
We have audited the financial statements of Sceptre Education (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
-
give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 December 2021 and of the Group's 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 Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 5
SCEPTRE EDUCATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SCEPTRE EDUCATION (CONTINUED)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
-
the parent Charity has not kept sufficient accounting records; or
-
the parent Charity financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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 Group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.
Page 6
SCEPTRE EDUCATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SCEPTRE EDUCATION (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory 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 SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting 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 though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, 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-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Page 7
SCEPTRE EDUCATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SCEPTRE EDUCATION (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 GL50 3PR
Date: 27 January 2023
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 8
SCEPTRE EDUCATION
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Other income 7 Total income Expenditure on: Raising funds 8 Charitable activities 9 Total expenditure Net income Transfers between funds 20 Net movement in funds Reconciliation of funds: Total funds brought forward 20 Net movement in funds 20 Total funds carried forward |
Restricted funds 2021 £ - - - - - - - - - - (135,092) (135,092) 135,092 (135,092) - |
Unrestricted funds 2021 £ 1,203 1,156 3,047,424 11 29 3,049,823 2,738,978 290,550 3,029,528 20,295 135,092 155,387 1,257,447 155,387 1,412,834 |
Total funds 2021 £ 1,203 1,156 3,047,424 11 29 3,049,823 2,738,978 290,550 3,029,528 20,295 - 20,295 1,392,539 20,295 1,412,834 |
As restated Total funds 2020 £ 11,159 337,541 2,620,868 80 7,948 |
|---|---|---|---|---|
| 2,977,596 | ||||
| 2,328,583 637,511 |
||||
| 2,966,094 | ||||
| 11,502 - |
||||
| 11,502 | ||||
| 1,381,037 11,502 |
||||
| 1,392,539 |
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 13 to 31 form part of these financial statements.
Page 9
SCEPTRE EDUCATION
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 14 Current assets Stocks 16 Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 19 Provisions for liabilities Net assets Total net assets Charity funds Restricted funds 20 Unrestricted funds 20 Total funds |
228,946 196,255 386,527 811,728 (590,566) |
2021 £ 1,239,069 1,239,069 221,162 1,460,231 (44,981) (2,416) 1,412,834 1,412,834 - 1,412,834 1,412,834 |
194,786 146,749 451,880 793,415 (287,137) |
As restated 2020 £ 1,214,357 1,214,357 506,278 1,720,635 (310,000) (18,096) 1,392,539 1,392,539 135,092 1,257,447 1,392,539 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
J Douglass Trustee Date: 25.01.2023
The notes on pages 13 to 31 form part of these financial statements.
Page 10
SCEPTRE EDUCATION
CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 14 Investments 15 Current assets Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 20 Unrestricted funds 20 Total funds |
16,253 40,873 57,126 (20,476) |
2021 £ 1,102,273 2 1,102,275 36,650 1,138,925 1,138,925 - 1,138,925 1,138,925 |
28,082 133,792 161,874 (15,039) |
As restated 2020 £ 1,100,638 2 |
|---|---|---|---|---|
| 1,100,640 146,835 |
||||
| 1,247,475 | ||||
| 1,247,475 | ||||
| 135,092 1,112,383 |
||||
| 1,247,475 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
J Douglass Trustee Date: 25.01.2023
The notes on pages 13 to 31 form part of these financial statements.
Page 11
SCEPTRE EDUCATION
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Cash flows from operating activities Net cash used in operating activities 23 Cash flows from investing activities Interest received Loss on disposal of fixed asset Purchase of tangible fixed assets Correction to 2020 cash flow Net cash (used in)/provided by investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing New finance leases Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 24 The notes on pages 13 to 31 form part of these financial statements |
2021 £ 74,339 11 - (154,551) - (154,540) - (3,958) 18,806 14,848 (65,353) 451,880 386,527 |
As restated 2020 £ 5,273 80 3,591 (93,589) 100,326 10,408 275,000 - - 275,000 290,681 161,199 451,880 |
|---|---|---|
Page 12
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. General information
Sceptre Education is an unincorporated charity (no: 1071852) registered in England and Wales. The registered address is Oneschool Global UK, Dunstable Campus, Ridgeway Avenue, Dunstable, LU5 4QL.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Sceptre Education meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its 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 entity in FRS 102 from the requirement to present a Charity only statement of cash flows and certain disclosures about the charity's financial instruments within the consolidated accounts.
No separate SOFA has been prepared for the Charity alone.
2.2 Going concern
The Trustees are of the opinion that there is sufficient funding in place to continue activities of the charity. Therefore, the accounts have been prepared on a going concern basis.
Page 13
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Tangible fixed assets and depreciation
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 14
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.5 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
- Freehold property 2.5 - 20% straight line - Long-term leasehold property 2.5 - 20% straight line - Plant and machinery 25% straight line Motor vehicles - 25% straight line - Fixtures and fittings 25% straight line
2.6 Investments
Investments in subsidiaries are valued at cost less provision for impairment.
2.7 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.10 Liabilities
Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.11 Financial instruments
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2.12 Operating leases
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.
Page 15
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions 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 restricted fund is set out in the notes to the financial statements.
3. Income from donations and legacies
| Unrestricted funds 2021 £ Donations 1,203 Unrestricted funds 2020 £ Donations 6,550 Legacies 2,000 Grants 2,609 11,159 |
Total funds 2021 £ 1,203 |
|---|---|
| As restated Total funds 2020 £ 6,550 2,000 2,609 |
|
| 11,159 |
4. Income from charitable activities
| Unrestricted funds 2021 £ Rent income 5,000 School fees (3,844) 1,156 |
Total funds 2021 £ 5,000 (3,844) |
|---|---|
| 1,156 |
Page 16
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
4. Income from charitable activities (continued)
| Unrestricted funds 2020 £ Rent income 5,000 School fees 332,541 337,541 5. Income from other trading activities Income from non charitable trading activities Unrestricted funds 2021 £ Trading income - Pinnacle (EU) Limited 3,047,424 Unrestricted funds 2020 £ Trading income - Pinnacle (EU) Limited 2,620,868 6. Investment income Unrestricted funds 2021 £ Interest income 11 |
As restated Total funds 2020 £ 5,000 332,541 |
|---|---|
| 337,541 | |
| Total funds 2021 £ 3,047,424 |
|
| As restated Total funds 2020 £ 2,620,868 |
|
| Total funds 2021 £ 11 |
Page 17
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
6. Investment income (continued)
| As restated | ||
|---|---|---|
| Restricted | Total | |
| funds | funds | |
| 2020 | 2020 | |
| £ | £ | |
| Interest income | 80 | 80 |
7. Other incoming resources
| Other incoming resources Other incoming resources |
Unrestricted funds 2021 £ 29 Unrestricted funds 2020 £ 7,948 |
Total funds 2021 £ 29 |
|---|---|---|
| As restated Total funds 2020 £ 7,948 |
Page 18
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8. Expenditure on raising funds
Other trading expenses - Pinnacle (EU) Limited
| Unrestricted funds 2021 £ Cost of sales 2,371,979 Administration expenses 244,165 Corporation tax (15,680) Interest payable 14,506 Administration staff costs 49,079 Administration depreciation 74,929 2,738,978 |
Total funds 2021 £ 2,371,979 244,165 (15,680) 14,506 49,079 74,929 2,738,978 |
|---|---|
Page 19
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8. Expenditure on raising funds (continued)
Other trading expenses - Pinnacle (EU) Limited (continued)
| Cost of sales Administration expenses Corporation tax Interest payable Administration staff costs Administration depreciation |
Unrestricted funds 2020 £ 2,041,865 183,371 7,600 2,312 41,601 51,834 2,328,583 |
As restated Total funds 2020 £ 2,041,865 183,371 7,600 2,312 41,601 51,834 |
|---|---|---|
| 2,328,583 |
9. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2021 £ Charitable activities 290,550 Unrestricted funds 2020 £ Charitable activities 637,511 |
Total 2021 £ 290,550 |
|---|---|
| As restated Total 2020 £ 637,511 |
Page 20
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
10. Analysis of expenditure by activities
| Charitable activities Charitable activities Analysis of direct costs Staff costs Depreciation Teaching costs Premises costs Donations Educational support Grants to other Trusts |
Activities undertaken directly 2021 £ 242,680 Activities undertaken directly 2020 £ 621,390 |
Support costs 2021 £ 47,870 Support costs 2020 £ 16,121 Total funds 2021 £ - 54,910 - 27,157 160,613 - - 242,680 |
Total funds 2021 £ 290,550 As restated Total funds 2020 £ 637,511 As restated Total funds 2020 £ 3,908 70,538 (4,909) 28,461 - 262 523,130 621,390 |
|---|---|---|---|
In 2021, included within donations are £160,613 of donations to OSGUK.
Page 21
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
10. Analysis of expenditure by activities (continued)
Analysis of support costs
| Professional charges Administrative costs Governance costs |
Total funds 2021 £ 24,887 75 22,908 47,870 |
As restated Total funds 2020 £ - 5,166 10,955 |
|---|---|---|
| 16,121 |
11. Auditor's remuneration
- The auditor's remuneration amounts to an auditor fee of £5,000 (2020 £7,300) , and non-audit services of £2,250 ( 2020 - £ - ).
12. Staff costs
| Wages and salaries | Group 2021 £ 49,079 49,079 |
Group As restated 2020 £ 45,509 45,509 |
Charity 2021 £ - - |
Charity As restated 2020 £ 3,908 |
|---|---|---|---|---|
| 3,908 |
The average number of persons employed by the Group during the year was as follows:
| Group | ||
|---|---|---|
| Group | As restated | |
| 2021 | 2020 | |
| No. | No. | |
| Staff | 13 | 13 |
No employee received remuneration amounting to more than £60,000 in either year.
Staff costs are nil within the charity. Sceptre Education is run wholly by volunteers.
Page 22
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
13. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .
14. Tangible fixed assets
Group
| Cost or valuation At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 2,026,831 71,049 2,097,880 881,726 76,051 957,777 1,140,103 1,145,105 |
Long-term leasehold property £ 295,721 - 295,721 295,721 - 295,721 - - |
Plant and machinery Motor vehicles £ £ 34,135 - 2,023 22,650 36,158 22,650 27,007 - 3,870 5,663 30,877 5,663 5,281 16,987 7,128 - |
Fixtures and fittings £ 149,428 58,829 208,257 87,304 44,255 131,559 76,698 62,124 |
Total £ 2,506,115 154,551 |
|---|---|---|---|---|---|
| 2,660,666 | |||||
| 1,291,758 129,839 |
|||||
| 1,421,597 | |||||
| 1,239,069 | |||||
| 1,214,357 |
Page 23
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
14. Tangible fixed assets (continued)
Charity
| Cost or valuation At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 1,949,181 56,545 2,005,726 852,067 53,012 905,079 1,100,647 1,097,114 |
Long-term leasehold property £ 295,721 - 295,721 295,721 - 295,721 - - |
Fixtures and fittings £ 33,077 - 33,077 29,553 1,898 31,451 1,626 3,524 |
Total £ 2,277,979 56,545 |
|---|---|---|---|---|
| 2,334,524 | ||||
| 1,177,341 54,910 |
||||
| 1,232,251 | ||||
| 1,102,273 | ||||
| 1,100,638 |
Page 24
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
15. Fixed asset investments
Investments in subsidiary companies Charity £ Cost or valuation At 1 January 2021 2 At 31 December 2021
2 2
Principal subsidiaries
The following was a subsidiary undertaking of the Charity:
| Name | Company | Registered office or principal | Principal activity |
|---|---|---|---|
| number | place of business | ||
| Pinnacle (EU) Limited | 06652678 | Beta House, Borough Road, | Sale of retail goods |
| Brackley, Northamptonshire, | |||
| NN13 7BE |
The financial results of the subsidiary for the year were:
| Name | Income | Expenditure | Profit/(Loss) | Net assets |
|---|---|---|---|---|
| £ | £ | / Surplus/ | £ | |
| (Deficit) for | ||||
| the year | ||||
| £ | ||||
| Pinnacle (EU) Limited | 3,047,424 | 2,918,579 | 128,845 | 273,911 |
Page 25
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
16. Stocks
| Group | ||
|---|---|---|
| Group | As restated | |
| 2021 | 2020 | |
| £ | £ | |
| Stock | 228,946 | 194,786 |
17. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income Tax recoverable |
Group 2021 £ 161,940 26,940 2,083 5,292 196,255 |
Group As restated 2020 £ 90,986 50,471 - 5,292 146,749 |
Charity 2021 £ 8,878 - 2,083 5,292 16,253 |
Charity As restated 2020 £ 22,790 - - 5,292 |
|---|---|---|---|---|
| 28,082 |
18. Creditors: Amounts falling due within one year
| Other loans Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contracts Other creditors Accruals and deferred income |
Group 2021 £ 281,042 74,201 25,310 3,825 126,541 79,647 590,566 |
Group As restated 2020 £ 5,000 109,166 23,734 - 130,610 18,627 287,137 |
Charity 2021 £ - 13,284 - - 2,192 5,000 20,476 |
Charity As restated 2020 £ - - - - 2,352 12,687 |
|---|---|---|---|---|
| 15,039 |
Page 26
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
19. Creditors: Amounts falling due after more than one year
| Other loans Net obligations under finance lease and hire purchase contracts Statement of funds Statement of funds - current year Balance at 1 January 2021 £ Income £ Expenditure £ Unrestricted funds General Funds - all funds 1,257,447 3,049,823 (3,029,528) Restricted funds Building/capital funds 135,092 - - Total of funds 1,392,539 3,049,823 (3,029,528) |
Group 2021 £ 30,000 14,981 44,981 Transfers in/out £ 135,092 (135,092) - |
Group As restated 2020 £ 310,000 - |
|---|---|---|
| 310,000 | ||
| Balance at 31 December 2021 £ 1,412,834 |
||
| Unrestricted funds General Funds - all funds Restricted funds Building/capital funds Total of funds |
||
| - | ||
| 1,412,834 |
20. Statement of funds
Following a review of funds held and clarification from The Grace Trust, £135,092 of restricted funds have been transferred to unrestricted funds in line with the objectives of the Charity.
Page 27
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
20. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds - all funds Restricted funds Building/capital funds Total of funds |
Balance at 1 January 2020 £ 1,246,025 135,012 1,381,037 |
As restated Income £ 2,977,516 80 2,977,596 |
As restated Expenditure £ (2,966,094) - (2,966,094) |
Balance at 31 December 2020 £ 1,257,447 |
|---|---|---|---|---|
| 135,092 | ||||
| 1,392,539 |
The building fund is used for donations given for capital purposes.
21. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 January 2021 £ 1,257,447 135,092 1,392,539 |
Income £ 3,049,823 - 3,049,823 |
Expenditure £ (3,029,528) - (3,029,528) |
Transfers in/out £ 135,092 (135,092) - |
Balance at 31 December 2021 £ 1,412,834 - |
|---|---|---|---|---|---|
| 1,412,834 |
Following a review of funds held and clarification from The Grace Trust, £135,092 of restricted funds have been transferred to unrestricted funds in line with the objectives of the Charity.
Page 28
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
21. Summary of funds (continued)
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 January 2020 £ 1,246,025 135,012 1,381,037 |
As restated Income £ 2,977,516 80 2,977,596 |
As restated Expenditure £ (2,966,094) - (2,966,094) |
Balance at 31 December 2020 £ 1,257,447 135,092 |
|---|---|---|---|---|
| 1,392,539 |
22. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 1,239,069 Current assets 811,728 Creditors due within one year (590,566) Creditors due in more than one year (44,981) Provisions for liabilities and charges (2,416) Total 1,412,834 |
Total funds 2021 £ 1,239,069 811,728 (590,566) (44,981) (2,416) |
|---|---|
| 1,412,834 |
Page 29
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
22. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year (restated)
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total |
Restricted funds 2020 £ - 135,092 - - - 135,092 |
Unrestricted funds 2020 £ 1,214,357 658,323 (287,137) (310,000) (18,096) 1,257,447 |
Total funds 2020 £ 1,214,357 793,415 (287,137) (310,000) (18,096) |
|---|---|---|---|
| 1,392,539 |
23. Reconciliation of net movement in funds to net cash flow from operating activities
24.
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Interest income Increase in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by operating activities Analysis of cash and cash equivalents |
Group 2021 £ 20,295 129,839 (11) (34,160) (49,506) 7,882 74,339 |
Group As restated 2020 £ 11,502 |
|---|---|---|
| 122,371 (80) (30,509) 171,302 (269,313) |
||
| 5,273 | ||
| Group | ||
|---|---|---|
| Group | As restated | |
| 2021 | 2020 | |
| £ | £ | |
| Cash in hand | 386,527 | 451,880 |
Page 30
SCEPTRE EDUCATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
25. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year Finance leases |
At 1 January 2021 £ 451,880 (5,000) (310,000) - 136,880 |
Cash flows £ (65,353) (276,042) 280,000 (18,806) (80,201) |
At 31 December 2021 £ 386,527 (281,042) (30,000) (18,806) |
|---|---|---|---|
| 56,679 |
26. Operating lease commitments
At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
Group 2021 £ 68,950 104,575 173,525 |
Group As restated 2020 £ 31,950 59,525 |
|---|---|---|
| 91,475 |
27. Related party transactions
At 31 December 2021 Pinnacle (EU) Limited had outstanding loans of £10,000 due to related parties. £10,000 (2020: £10,000) was a loan due to C Kingston, the father of R Kingston, a Trustee of Sceptre Education Trust.
Page 31