Charity registration number: 1077572
The Highcombe Edge Trust
Trustees' Report and Financial Statements for the year ended 31st December 2023
mca Banbury Ltd Unit 4-6 The Wharf Centre Wharf Street Warwick CV34 5LB
The Highcombe Edge Trust
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 5 |
| Independent Auditors' Report | 6 to 9 |
| Consolidated Statement of Financial Activities | 10 to 11 |
| Consolidated Balance Sheet | 12 |
| Balance Sheet | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 to 26 |
The Highcombe Edge Trust
Reference and Administrative Details Trustees Mr S L White Mr B H Prisgrove Mr G Marsh Mr P Moggach Mr R Rose Charity Registration Number 1077572 Principal Office Hindhead Campus Tilford Road Hindhead Surrey GU26 6SJ Auditor mca Banbury Ltd Unit 4-6 The Wharf Centre Wharf Street Warwick CV34 5LB Bankers Lloyds Bank Business Banking BX1 1LT
Page 1
The Highcombe Edge Trust
Trustees' Report
The Trustees present their report with the financial statements of the charity for the year ended 31st December 2023. The Trustees have adopted the provisions of 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 (FRS102) (effective 1 January 2019).
Objectives and activities
Objects and aims
The charitable objects of the charity are the advancement of the education of children and young people from ages five to eighteen in particular by assistance to their parents to enable such children to be taught otherwise than as school as defined in the Education Acts and 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 one premises under formal lease for an independent school based in Hindhead which has been run by OneSchool Global UK (OSGUK).
A separate building is also provided Zapp UK Trading Ltd a Subsidiary Campus Trading company for local Campus & Co shop under a separate lease.
The charity also provides donation funding 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 charity and there are strong and willing group of volunteers who assist and support the charity throughout the year.
The trading activities of the charity’s trading subsidiary Zapp UK Trading Ltd (Registered Number 09432502), which operates a chain of convenience stores, are undertaken by volunteers.
Objectives, strategies and activities
Throughout the year the charity has continued to provide educational premises in support of the educational activities of OSGUK.
The charity has a wholly owned subsidiary company, Zapp UK Trading Ltd which undertakes trading activities. All profits chargeable to corporation tax are gifted to the charity in support of the charitable activities of the charity.
Page 2
The Highcombe Edge Trust
Trustees' Report
Financial review
The charity is supported and financed principally by profits from its trading subsidiary Zapp UK Trading Ltd plus other ad hoc donations and those raised by fundraising events and grants from the Grace Trust. The Trustees believe that the charity’s funds are sufficient to mitigate any short to medium term risk of reduced funding.
The charity’s fundraising events principally operate within the Brethren community and professional fundraisers are not used. Neither the charity nor any person acting on behalf of the charity 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.
In the year ended 31st December 2023 the charity reported a net deficit of £251,846 (2022 deficit of £96,699). The group reported a net deficit of £93,464 (2022 surplus of £53,558).
At the year end the charity had net current assets of £99,390 (2022 net current assets of £49,824). The group had net current assets of £455,104 (2022 net current asset of £399,755).
The charity’s policy is to maintain minimum free reserves at a level which equates to six months’ unrestricted expenditure. This is approximately £48,395. At the year end 2023 the free reserves of the charity were £5,472,242 (31st December 2022 £5,724,088).
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
Aims and key objectives 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 charity's ethos and values.
Structure, governance and management
The Highcombe Edge Trust is constituted by a Deed of Trust dated 15 July 1999 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 charity in the year ended 31st December 2023 (year ended 31st December 2022 £nil).
The power to appoint Trustees is invested in the existing Trustees subject to the charity 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 charity.
New Trustees are appointed at charity meetings and training is given by the outgoing trustee being replaced, along with support from fellow Trustees.
Page 3
The Highcombe Edge Trust
Trustees' Report
Principal Risks
The Trustees have examined the major strategic, business and operational risks that the charity 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.
The principal risks to the charity are:
• risk of damage to the property held by the charity (although the property holds property insurance);
• risk of closure or relocation of the schooling by OneSchool Global UK (considered unlikely); and
• risk of fall in trading activities of the wholly owned trading subsidiary, either due to a fall in customer loyalty or a significant increase in supplier prices (closely monitored by the trading subsidiary directors who would then take appropriate action).
There were no serious incidents relating to the charity over the year to report
Page 4
The Highcombe Edge Trust
Trustees' Report
Statement of trustees' responsibilities
The trustees are responsible for preparing the Annual 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 and 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 charity and the group and of the incoming resources and application of resources of the charitable group for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the parent charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group 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 charity deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on ...................... and signed on its behalf by: 28/08/2024
......................................... Mr B H Prisgrove Trustee
Page 5
The Highcombe Edge Trust
Independent Auditor's Report to the Members of The Highcombe Edge Trust
Opinion
We have audited the financial statements of The Highcombe Edge Trust (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group's and parent charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 6
The Highcombe Edge Trust
Independent Auditor's Report to the Members of The Highcombe Edge Trust
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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the parent charity financial statements are not in agreement with the accounting records and returns; or
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the parent charity has not kept sufficient accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of trustees' responsibilities (set out on page 5), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the 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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with the applicable laws and regulations.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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To address the risk of fraud through management bias and override of controls, we:
Page 7
The Highcombe Edge Trust
Independent Auditor's Report to the Members of The Highcombe Edge Trust
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Performed analytical procedures to identify any unusual or unexpected relationships;
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Tested journal entries to identify unusual transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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Agreeing financial statement disclosures to underlying supporting documentation
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Enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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We define materiality as the magnitude of misstatement in the Financial Statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning and in the scope of our audit work and in evaluating the results of our work.
Page 8
The Highcombe Edge Trust
Independent Auditor's Report to the Members of The Highcombe Edge Trust
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 group'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.
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......................................
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...................................... Martin Cox (Senior Statutory Auditor) For and on behalf of mca Banbury Ltd, Statutory Auditor
Unit 4-6 The Wharf Centre Wharf Street Warwick CV34 5LB
Date:............................. 12/09/2024
Page 9
The Highcombe Edge Trust
Consolidated Statement of Financial Activities for the Year Ended 31 December 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income 6 Other income Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income 6 Other income Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward |
Unrestricted funds £ 107,071 8,750 379 2,509,175 2,625,375 (2,105,910) (612,929) (2,718,839) (93,464) (93,464) 5,879,993 5,786,529 Unrestricted funds £ 81,524 7,633 54 2,259,409 2,348,620 (1,940,642) (447,828) (2,388,470) (39,850) (39,850) 5,919,843 |
Total 2023 £ 107,071 8,750 379 2,509,175 |
|---|---|---|
| 2,625,375 | ||
| (2,105,910) (612,929) |
||
| (2,718,839) | ||
| (93,464) | ||
| (93,464) 5,879,993 |
||
| 5,786,529 | ||
| Total 2022 £ 81,524 7,633 54 2,259,409 |
||
| 2,348,620 | ||
| (1,940,642) (447,828) |
||
| (2,388,470) | ||
| (39,850) | ||
| (39,850) 5,919,843 |
The notes on pages 15 to 26 form an integral part of these financial statements.
Page 10
The Highcombe Edge Trust
Consolidated Statement of Financial Activities for the Year Ended 31 December 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Total funds carried forward Note 17 |
Unrestricted funds £ 5,879,993 |
Total 2022 £ 5,879,993 |
|---|---|---|
All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 17.
The notes on pages 15 to 26 form an integral part of these financial statements. Page 11
The Highcombe Edge Trust
Consolidated Balance Sheet as at 31 December 2023
| Note Fixed assets Tangible assets 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: Amounts falling due within one year 16 Net current assets Net assets Funds of the group: Unrestricted income funds Unrestricted funds Total funds 17 |
2023 £ 5,331,425 310,006 168,076 303,478 781,560 (326,456) 455,104 5,786,529 5,786,529 5,786,529 |
2022 £ 5,557,930 249,005 124,974 247,697 |
|---|---|---|
| 621,676 (299,613) |
||
| 322,063 | ||
| 5,879,993 5,879,993 |
||
| 5,879,993 |
The financial statements on pages 10 to 26 were approved by the trustees and authorised for issue on . ................... and signed on their behalf by: 28/08/2024
.........................................
Mr B H Prisgrove Trustee
The notes on pages 15 to 26 form an integral part of these financial statements. Page 12
The Highcombe Edge Trust
Balance Sheet as at 31 December 2023
| Note Fixed assets Tangible assets 12 Investments Current assets Debtors 15 Cash at bank and in hand Creditors: Amounts falling due within one year 16 Net current assets Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 17 |
2023 £ 5,106,558 266,294 5,372,852 1,663 111,027 112,690 (13,300) 99,390 5,472,242 5,472,242 5,472,242 |
2022 £ 5,407,970 266,294 |
|---|---|---|
| 5,674,264 | ||
| 1,124 66,127 |
||
| 67,251 (17,427) |
||
| 49,824 | ||
| 5,724,088 | ||
| 5,724,088 | ||
| 5,724,088 |
The financial statements on pages 10 to 26 were approved by the trustees, and authorised for issue on . ................... and signed on their behalf by: 28/08/2024
.........................................
Mr B H Prisgrove Trustee
The notes on pages 15 to 26 form an integral part of these financial statements. Page 13
The Highcombe Edge Trust
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
| Note Cash flows from operating activities Net cash expenditure Adjustments to cash flows from non-cash items Depreciation 7 Investment income 6 Working capital adjustments Increase in stocks 14 Increase in debtors 15 Increase in creditors 16 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 6 Purchase of tangible fixed assets 12 Sale of tangible fixed assets Net cash flows from investing activities Cash flows from financing activities Repayment of loans and borrowings 16 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December |
2023 £ (93,464) 355,684 (379) 261,841 (61,001) (43,102) 56,733 214,471 379 (138,125) 8,946 (128,800) (29,890) 55,781 247,697 303,478 |
2022 £ (39,850) 191,139 (54) 151,235 (1,568) (62,849) 146,397 233,215 54 (235,812) 13,472 (222,286) (117,479) (106,550) 354,247 247,697 |
|---|---|---|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 15 to 26 form an integral part of these financial statements. Page 14
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
1 General Information
The Highcombe Edge Trust is an unincorporated charity (no: 1077572) registered in England and Wales. The registered address is Somerville, 8 Bridle Close, Grayshott, Hindhead, GU26 6EA.
2 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
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 Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Highcombe Edge Trust 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 notes.
Basis of consolidation
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 financial statements.
No separate SOFA has been prepared for the Charity alone.
Page 15
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Going concern
The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.
Page 16
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
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.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
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 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.
Tangible fixed assets
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 17
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
Depreciation and amortisation
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Assets costing less than £500 are written off to the SoFA in the year of purchase.
Asset class Depreciation method and rate Freehold property 2% Straight Line Plant & Machinery 20% Straight Line Leasehold property 10% Straight Line Fixtures & Fittings 15% Reducing Balance
Current asset investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ’Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
Stock
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.
Trade 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.
Fund structure
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.
Investment income, gains and losses are allocated to the appropriate fund.
Financial instruments
Classification
The Charity 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.
Page 18
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
- 3 Income from donations and legacies
| 3 Income from donations and legacies | ||
|---|---|---|
| Gifts and donations Total for 2023 Total for 2022 4 Income from charitable activities Rental Income Total for 2023 Total for 2022 5 Income from other trading activities Trading Income - Zapp UK Trading Ltd Total for 2023 Total for 2022 6 Investment income Bank Interest Total for 2023 Total for 2022 |
Unrestricted funds General £ 107,071 107,071 81,524 Unrestricted funds General £ 8,750 8,750 7,633 Unrestricted funds General £ 2,509,175 2,509,175 2,259,409 Unrestricted funds General £ 379 379 54 |
Total funds £ 107,071 |
| 107,071 | ||
| 81,524 | ||
| Total funds £ 8,750 |
||
| 8,750 | ||
| 7,633 | ||
| Total funds £ 2,509,175 |
||
| 2,509,175 | ||
| 2,259,409 | ||
| Total funds £ 379 |
||
| 379 | ||
| 54 |
Page 19
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
7 Expenditure on raising funds
a) Costs of trading activities
| Trading Costs - Zapp UK Trading Ltd Total for 2023 Total for 2022 8 Expenditure on charitable activities Note Charitable activities 9 Total for 2022 |
Unrestricted funds General £ 2,105,910 2,105,910 1,940,642 Unrestricted funds General £ 612,929 447,828 |
Total funds £ 2,105,910 |
|---|---|---|
| 2,105,910 1,940,642 Total funds £ 612,929 |
||
| 447,828 |
9 Analysis of support costs
Support costs allocated to charitable activities
| Charitable activities Charitable activities |
Governance Administration costs £ costs £ 2,718 110 Governance Administration costs £ costs £ 7,050 6,798 |
Premises costs including depreciation £ 395,219 Premises costs including depreciation £ 153,532 |
Other support costs £ 214,882 Other support costs £ 280,448 |
Total 2023 £ 612,929 |
|---|---|---|---|---|
| Total 2022 £ 447,828 |
Other supports costs are donations made to OSG.
Staff costs are nil. The Highcombe Edge Trust is run entirely by volunteers.
Page 20
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
10 Trustees’ remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the group during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
11 Auditors' remuneration
| 11 Auditors' remuneration | ||
|---|---|---|
| Other fees to auditors The auditing of accounts of any associate of the charity All other non-audit services |
2023 £ 4,000 2,000 6,000 |
2022 £ 4,525 2,525 |
| 7,050 |
Page 21
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
12 Tangible fixed assets
Group
| Cost At 1 January 2023 Additions Disposals At 31 December 2023 Depreciation At 1 January 2023 Charge for the year Eliminated on disposals At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 Charity Cost At 1 January 2023 At 31 December 2023 Depreciation At 1 January 2023 Charge for the year At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Land and buildings £ 5,997,720 138,125 - 6,135,845 718,813 123,828 - 842,641 5,293,204 5,278,907 Land and buildings £ 5,913,429 5,913,429 698,042 108,829 806,871 5,106,558 5,215,387 |
Furniture and equipment £ 708,950 - (30,757) 678,193 429,927 231,856 (21,811) 639,972 38,221 279,023 Furniture and equipment £ 473,667 473,667 281,084 192,583 473,667 - 192,583 |
Total £ 6,706,670 138,125 (30,757) |
|---|---|---|---|
| 6,814,038 | |||
| 1,148,740 355,684 (21,811) |
|||
| 1,482,613 | |||
| 5,331,425 | |||
| 5,557,930 | |||
| Total £ 6,387,096 |
|||
| 6,387,096 | |||
| 979,126 301,412 |
|||
| 1,280,538 | |||
| 5,106,558 | |||
| 5,407,970 |
13 Fixed asset investments
Charity
Page 22
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
Shares in group undertakings and participating interests
| Shares in group undertakings and participating interests | ||
|---|---|---|
| Cost At 1 January 2023 At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Subsidiary undertakings £ 266,294 266,294 266,294 266,294 |
Total £ 266,294 |
| 266,294 | ||
| 266,294 266,294 |
Details of undertakings
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:
capital are as follows: |
|||||||
|---|---|---|---|---|---|---|---|
| Country of | Proportion of voting rights | Principal | |||||
| Undertaking | incorporation | Holding | and shares held | activity | |||
| 2023 | 2022 | ||||||
| Subsidiary undertakings | |||||||
| Zapp UK Trading Ltd | |||||||
| The Old Fire Station, Wheeler Lane, Witley, Goldalming, Surrey, |
United Kingdom | 100% | 100% | Sale of goods |
retail | ||
| GU8 5QU | |||||||
| 14 Stock | |||||||
| Group | Charity | ||||||
| 2023 | 2022 | 2023 | |||||
| £ | £ | £ | |||||
| Stocks | 310,006 | 249,005 | - | ||||
| 15 Debtors | |||||||
| Group | Charity | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||
| £ | £ | £ | £ | ||||
| Trade debtors | 124,022 | 105,455 | 500 | - | |||
| Prepayments | 25,419 | 18,395 | - | - | |||
| Other debtors | 18,635 | 1,124 | 1,163 | 1,124 | |||
| 168,076 | 124,974 | 1,663 | 1,124 |
Page 23
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
16 Creditors: amounts falling due within one year
| Bank loans Trade creditors Other taxation and social security VAT Other creditors Accruals |
Group 2023 2022 £ £ 3,000 32,890 217,821 75,567 342 39,860 14,926 16,343 28,492 25,159 61,875 109,794 326,456 299,613 |
2023 Charity 2022 £ £ - - 10,975 - - - - - - 7,547 2,325 9,880 13,300 17,427 |
2023 Charity 2022 £ £ - - 10,975 - - - - - - 7,547 2,325 9,880 13,300 17,427 |
|---|---|---|---|
| 17,427 |
Page 24
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
17 Funds
| Group Unrestricted funds General Unrestricted funds General Charity Unrestricted funds General Unrestricted funds General |
Balance at 1 January 2023 £ 5,879,993 Balance at 1 January 2022 £ 5,919,843 Balance at 1 January 2023 £ 5,724,089 Balance at 1 January 2022 £ 5,820,787 |
Incoming resources £ 2,625,375 Incoming resources £ 2,348,620 Incoming resources £ 361,082 Incoming resources £ 351,129 |
Resources expended £ (2,718,839) Resources expended £ (2,388,470) Resources expended £ (612,929) Resources expended £ (447,828) |
Balance at 31 December 2023 £ 5,786,529 |
|---|---|---|---|---|
| Balance at 31 December 2022 £ 5,879,993 |
||||
| Balance at 31 December 2023 £ 5,472,242 |
||||
| Balance at 31 December 2022 £ 5,724,088 |
18 Analysis of net assets between funds
Group
Page 25
The Highcombe Edge Trust
Notes to the Financial Statements for the Year Ended 31 December 2023
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets Charity Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ 5,331,425 781,560 (326,456) 5,786,529 Unrestricted funds General £ 5,557,930 621,676 (299,613) 5,879,993 Unrestricted funds General £ 5,106,558 266,294 112,690 (13,300) 5,472,242 Unrestricted funds General £ 5,407,970 266,294 67,251 (17,427) 5,724,088 |
Total funds at 31 December 2023 £ 5,331,425 781,560 (326,456) |
|---|---|---|
| 5,786,529 | ||
| Total funds at 31 December 2022 £ 5,557,930 621,676 (299,613) |
||
| 5,879,993 | ||
| Total funds at 31 December 2023 £ 5,106,558 266,294 112,690 (13,300) |
||
| 5,472,242 | ||
| Total funds at 31 December 2022 £ 5,407,970 266,294 67,251 (17,427) |
||
| 5,724,088 |
19 Related party transactions
Charity
During the year, the charity received £244,882 of donations from its trading subsidiary.
Page 26