**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