**Charity registration number 1087766**
**Company registration number 04240017 (England and Wales)**
**CRANEDALE EDUCATIONAL CHARITABLE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2021**
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr A W A Outhwaite Mrs M E Outhwaite Mr J P Midgley Mr R E France Mr R H R Innes **Secretary** Mrs M E Outhwaite **Charity number** 1087766 **Company number** 04240017 **Registered office** Manor Farm Kirby Grindalythe Malton North Yorkshire UK YO17 8DB **Independent examiner** David Walker FCA 124 Acomb Road Holgate York YO24 4EY **Bankers** HSBC UK Bank Plc 27 Market Place Malton YO17 7LU
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7 - 8|
|Balance sheet|9 - 10|
|Notes to the financial statements|11 - 25|
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The trustees present their annual report and financial statements for the year ended 31 August 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The trust 's objects are the advancement of the public benefit of education concerning the natural environment and knowledge of the living world.
The policies adopted in furtherance of these objects is the operation of an educational field centre. There has been no change in this during the year.
The general aims of the trust remain the education, mainly of children, through its field centre, in matters concerning the natural environment.
Objectives for the year were, as previously, the effective running of the field centre and the provision of high quality field courses and services.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
The Charitable Trust is a market leader in the provision of high quality field courses and promotes its services to schools and colleges nationwide.
- 1 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Achievements and performance**
The financial year 2020 – 2021 was a year of great difficulty and anxiety with the continuing lockdown and school closures which prevented all school trips.
The uncertainty and unknown of this unprecedented situation was alleviated in part by the Government’s Furlough Scheme and all employees apart from the Head of Centre joined that scheme and received 80% of their wages/salaries. The Head of Centre accepted a pay cut but continued in post to administer the business and respond to customer enquiries.
The Trustees were highly involved in all discussions on the fate of the charity’s fragile finances and requested a thorough review and scaling down of all unnecessary expenditure. Many suppliers and contractors agreed either a reduction in premium payments or a premium ‘holiday’ for which the Charity was most grateful. The Charity received grants from Ryedale District Council totalling £39,214 between December 2020 and April 2021 which were gratefully received to keep the centre afloat during a period with only a small amount of income generated from day courses.
Countrywide restrictions started to ease in April 2021 and the government roadmap indicated that schools could start to return to the Centre from 17 May 2021 although the guidelines to follow were still unclear. The Head of Centre began the process of “re-awakening” the Centre after 15 months of closure pending a meeting with the Trustees and Accountant in late April.
This meeting took place on 20 April and the Head of Centre issued the following statement to staff :
_It is with a huge degree of disappointment that sadly, due to the lack of government guidance on how residential trips must operate, we do not feel we can open this Summer Term. The uncertainty on how many students we could safely accommodate makes financial planning impossible and even under the most optimistic scenarios, we do not feel it would be economically viable to open (even if all restrictions lift on June 21st)._
_I am beginning to contact all schools who are due to visit us between May and July to cancel their courses. This could mean we have a substantial amount of refunds to make as we are now cancelling their courses, however I will be appealing to them to transfer the money to next year if they are willing to do so._
_This means that the vast majority of you will remain furloughed until mid-late August, although we may ask some of you to return for training purposes in the interim._
_In reopening for the start of the next academic year, it at least gives us time to plan and prepare the Centre – this would include time to appoint new staff too as required. In order to help me plan with greater certainty, I would appreciate it if you could indicate to me at the earliest opportunity if you are thinking you will not return to work in September. After what will be 18 months away from the Centre, I will not blame anyone if they have found alternative work or have decided not to return for other reasons._
_In indicating to me your thoughts about not returning to work, please know this will not affect your furlough arrangements, as without work at the Centre in the interim you are entitled to receive these furlough payments. However, what I am trying to avoid is any last minute losses in staff which could hinder our ability to reopen. It has been a long and difficult road as you know, but at least we now have a date to work towards. The first group in is a Walking Holiday from 20th August._
_Thank you all for your continued support, if you would like to chat or have any concerns please get in touch as always._
- 2 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
Although it was a disappointment at the time ultimately it proved to be the correct decision as many restrictions remained all through the Summer and schools would have been unable to visit the Centre despite their stated intentions. The Centre had to pay out a lot of refunds whilst we were closed which was difficult but many schools successfully claimed lost monies from insurance companies so the Centre was fortunate to retain those monies rather than having to refund or carry forward towards future bookings.
In May 2021 the Centre was extremely fortunate to receive a one-off grant of £40,000 from the Garfield Weston Foundation towards core running from May to August 2021. The Head of Centre and Accountant put in a lot of work on the application and the Trustees extend their gratitude to them both for securing these much needed funds.
In August 2021 the Centre welcomed back its first guests in residence since the pandemic with a few non-tutored groups and staff began to come back to work for training and to prepare for students returning in September.
## **Financial review**
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to 12 month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised.
Total reserves are £ 39,245 (2020 £ 58,218 ) and therefore the current amount of reserves are less than this amount although it is the intention of the trustees to continue to generate surpluses in the future which will be retained in order adhere to the policy.
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees review the major risks which the trust faces on a regular basis with the trust's manager and believe that maintaining the trusts unres t ricted reserves as above, combined with a regular review of the trust's finances and financial controls will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate any significant risks.
## **Plans for future periods**
The Centre will reopen in September operating on an “austerity” budget and will manage with a much smaller team. Several senior staff members retired or moved on during the closedown which will mean reduced expenditure on wages going forward. Teachers are looking forward to be experiencing trips again with their students and bookings for 2021 – 2022 are very encouraging .
## **Structure, governance and management**
The trust was registered with the Charity Commission on 30th July 2001 and is constituted as a company limited by guarantee and is therefore governed by its memorandum and articles of association dated 22nd June 2001.
The trust began to operate on 1 September 2001 when the assets and liabilities of the registered charity also known as the Cranedale Educational Charitable Trust were transferred to the company at their balance sheet value.
- 3 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr A W A Outhwaite Mrs M E Outhwaite Mr J P Midgley Mr R E France Mr R H R Innes
The appointment of trustees is governed by the Articles of Association. At the annual general meeting one third of the trustees who are subject to retirement by rotation, or, if their number is not three or a multiple of three, the number nearest to one third shall retire from office; but if there is only one trustee who is subject to retirement by rotation, he shall retire.
Subject to the provisions of the articles , the trustees to retire by rotation shall be those who have been longest in office since their last appointment or reappointment, but as between persons who became or were last reappointed trustees on the same day those to retire shall (unless they otherwise agree among themselves) be determined by lot.
If the charity at the meeting at which a trustee retires by rotation, does not fill the vacancy the retiring trustee shall, if willing to act, be deemed to have been reappointed unless at the meeting it is resolved not to fill the vacancy or unless a resolution for the reappointment of the trustee is put to the meeting and lost.
As a result, M E Outhwaite and JP Midgley retire from office but, being eligible, offer themselves for re-election.
The charity may by ordinary resolution appoint who is willing to act to be a trustee and may also determine the rotation in which any additional trustees are to retire.
The trustees may appoint a person who is willing to act to be a trustee either to fill a vacancy or as an additional trustee provided that the appointment does not cause the number of trustees to exceed any number fixed by or in accordance with the articles as the maximum number of trustees. A trustee so appointed shall hold office only until the next following annual general meeting and shall not be taken into account in determining the trustees who are to retire by rotation at the meeting. If not reappointed at such annual general meeting, he shall vacate office at the conclusion thereof.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
## **Qualifying third party indemnity provisions**
All new trustees are given a copy of the trust's memorandum and articles of association and are provided with booklets CC3 and CC3a from the Charity Commissioners and "Running a Limited company" from Companies House, which give guidance and advice on being a trustee and director.
The trustees have complied with the duty imposed upon them by Section 4 of the Charities Act 2011/2006 to have due regard to guidance published by the Charity Commission.
The Trustees have also had regard to the Charity Commissioners guidance on public benefit.
The trust does not receive any services from volunteers.
The trustees meet regularly to manage the trust's affairs and delegate the day-to-day running of the trust's activities to its operational director, Mr Chris Cassells, general manager, tutors and administrative staff.
The remuneration of the charity's key management personal is agreed at the current market rates applicable to the particular duties performed by the employees concerned.
- 4 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The Memorandum and Articles of Association authorises the trustees to deposit or invest in the name of the charity and part of the funds as the trustees in their absolute discretion think fit.
The trust has numerous schools and educational facilities who return on a regular basis to the field centre. Although no formal working relationships have been formed with any of these entities.
The trust wholly owns a subsidiary company The Cranedale Centre Limited which provides holidays and associated goods and services of a non educational nature. It also provides the trust with transport facilities. The subsidiary's results are summarised in note 22.
## **Supplier payment policy**
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.
The trustees' r eport was approved by the Board of Trustees.
Mr A W A Outhwaite **Trustee**
25 May 2022
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## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF CRANEDALE EDUCATIONAL CHARITABLE TRUST**
I report to the trustees on my examination of the financial statements of Cranedale Educational Charitable Trust (the trust) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the trustees of the trust (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the trust are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the trust’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since the trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England & Wales., which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the trust as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **David Walker FCA**
## **Chartered Accountant**
124 Acomb Road Holgate York YO24 4EY
Dated: 25 May 2022
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## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
81,759
250,405
Charitable activities
**4**
113,544
-
Investments
**5**
2,484
-
**Total income**
197,787
250,405
**Expenditure on:**
Raising funds
**6**
576
-
Charitable activities
**7**
477,022
-
**Total expenditure**
477,598
-
Net gains/(losses) on investments
**11**
10,433
-
**Net (outgoing)/incoming resources before transfers**
(269,378)
250,405
Gross transfers between funds
250,405
(250,405)
**Net movement in funds**
(18,973)
-
Fund balances at 1 September 2020
58,218
-
**Fund balances at 31 August 2021**
39,245
-|**Total**
**2021**
**£**
332,164
113,544
2,484
448,192
576
477,022
477,598
10,433
(18,973)
-
(18,973)
58,218
39,245|**Total**
**2020**
**£**
137,040
449,047
2,637
588,724
808
675,774
676,582
(7,688)
(95,546)
-
(95,546)
153,764
58,218|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
10,299
126,741
Charitable activities
**4**
449,047
-
Investments
**5**
2,637
-
**Total income**
461,983
126,741
**Expenditure on:**
Raising funds
**6**
808
-
Charitable activities
**7**
675,774
-
**Total expenditure**
676,582
-
Net gains/(losses) on investments
**11**
(7,688)
-
**Net (outgoing)/incoming resources before transfers**
(222,287)
126,741
Gross transfers between funds
126,741
(126,741)
**Net movement in funds**
(95,546)
-
Fund balances at 1 September 2019
153,764
-
**Fund balances at 31 August 2020**
58,218
-|**Total**
**2020**
**£**
137,040
449,047
2,637
588,724
808
675,774
676,582
(7,688)
(95,546)
-
(95,546)
153,764
58,218|
|---|---|
- 8 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Stocks
**14**
Debtors falling due after one year
**15**
Debtors falling due within one year
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
Loans and overdrafts
**16**
Obligations under finance leases
**17**
Taxation and social security
Other creditors
**18**
Net current liabilities
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**19**
**Net assets**
**Income funds**
Unrestricted funds|**2021**
**£**
7,629
90,000
34,056
116,475
248,160
3,500
360
8,853
253,801
266,514|**£**
108,084
-
108,084
(18,354)
89,730
(50,485)
39,245
39,245
39,245|**2020**
**£**
**£**
133,860
104,164
238,024
5,913
72,221
44,246
65,639
188,019
-
1,403
7,018
308,296
316,717
(128,698)
109,326
(51,108)
58,218
58,218
58,218|
|---|---|---|---|
- 9 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 AUGUST 2021**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 25 May 2022
Mr A W A Outhwaite **Trustee**
## **Company Registration No. 04240017**
- 10 -
**CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **Charity information**
Cranedale Educational Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Manor Farm, Kirby Grindalythe, Malton, North Yorkshire, YO17 8DB, UK.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the trust's articles and memorandum of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the trust . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include fixed asset investments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.
## **1.4 Income**
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 11 -
**CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **(Continued)**
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant which specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
## **1.5 Expenditure**
Resources expended are accounted for on an accruals basis.
Costs of generating funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.
Charitable activities include expenditure associated with the field centre and educational programmes and include both direct and support costs relating to those activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings Straight line over 20 years Fixtures and fittings Straight line over 10 years, 5 years if leased asset
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.8 Impairment of fixed assets**
At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
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**CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.11 Financial instruments**
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust 's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the trust ’s contractual obligations expire or are discharged or cancelled.
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## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.12 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.13 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.14 Leases**
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
## **1.15 Creditors and provisions**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measure reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **2 Critical accounting estimates and judgements**
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
42,545
-
Government support
39,214
250,405
81,759
250,405|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
42,545
299
-
289,619
10,000
126,741
332,164
10,299
126,741|Total
2020
£
299
136,741
137,040|
|---|---|---|
- 14 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**3**
**Donations and legacies**
**Donations and gifts**
Garfield Weston
Foundation
Other
**Grants receivable for**
**core activities**
Ryedale Council Covid
Support Grants
Coronovirus Job Support
Scheme|40,000
2,545
42,545
39,214
-
39,214|-
-
-
-
250,405
250,405|40,000
2,545
42,545
39,214
250,405
289,619|-
299
299
10,000
-
10,000|**(Continued)**
-
-
-
299
-
299
-
10,000
126,741
126,741
126,741
136,741|
|---|---|---|---|---|---|
## **4 Charitable activities**
||**Field centre**|**Field centre**|
|---|---|---|
||**2021**|
**2020**|
||**£**|
**£**|
|Field Centre|113,544|
449,047|
## **5 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Rental income|600|600|
|Income from listed investments|-|4|
|Interest received on loan s|1,881|1,937|
|Interest receivable|3|96|
||2,484|2,637|
The rental income received arises from the letting of various parts of the centre's premises to the charitable trust's wholly owned subsidiary, Cranedale Centre Limited.
- 15 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **6 Raising funds**
|||**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Investment management|576|808|
|||576|808|
|**7**|**Charitable activities**|||
|||**Field centre**|
**Field centre**|
|||**operation**|
**operation**|
|||**2021**|
**2020**|
|||**£**|
**£**|
||Staff costs|252,995|
297,323|
||Depreciation and impairment|27,920|
30,917|
||Educational Purchases|5,424|
44,025|
||Repairs & Renewals|6,087|
10,280|
||Motor Expenses & Travel|203|
60,049|
||Teaching S taff Telephone|766|
687|
||Light, Heat & Power|24,935|
35,978|
||Sundry Expenses|2,456|
4,441|
||Rent & Rates|17,161|
32,249|
||Insurances|10,719|
11,737|
||Laundry|1,409|
12,004|
|||350,075|
539,690|
||Share of support costs (see note 8)|85,741|
93,971|
||Share of governance costs (see note 8)|41,206|
42,113|
|||477,022|
675,774|
All the charitable activities relate to the operation of the educational field centre .
- 16 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
69,539
22,899
Telecommunications
4,632
-
Printing & Stationery
722
-
Advertising
1,808
-
Staff Training
-
-
Sub contract labour
-
-
Cleaning & General Maintenance
4,723
-
IT Costs
4,317
-
Audit fees
-
2,500
Accountancy
-
1,520
Bank Charges
-
177
HP & Lease C harges
-
910
Bookkeeping
-
13,200
85,741
41,206
Analysed between
Charitable activities
85,741
41,206|**2021**
**£**
92,438
4,632
722
1,808
-
-
4,723
4,317
2,500
1,520
177
910
13,200
126,947
126,947|**2020 Basis of**
**allocation**
**£**
92,604 Time spent
5,584 Total Expenditure
2,303 Total Expenditure
3,991 Total Expenditure
620 Total Expenditure
674 Total Expenditure
6,547 Total Expenditure
6,251 Total Expenditure
2,750 Governance
182 Governance
177 Governance
231 Governance
14,170 Governance
136,084
136,084|
|---|---|---|
Governance costs includes payments to the auditors of £2,500 (2020 - £2,750) for the independent examination of the financial statments and £1,520 (2020- £182) for other services .
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.
Trustees AWA Outhwaite and ME Outhwaite, husband and wife, purchased various goods and services, at full commercial rates and under normal commercial terms, from the trust during the year as follows:
Cleaning services £ nil (2020- £ 4 , 833 ) Domestic services £ 4 , 481 (2020- £ 4 , 878 ) Motor insurance £ 4 , 700 (2020- £ 4 , 700 )
The amounts outstanding at the year end were £nil (2020 £nil) .
## **10 Employees**
The average monthly number of employees during the year was:
|**2021**|**2020**|
|---|---|
|**Number**|**Number**|
|35|39|
- 17 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2021**
**2020**
**£**
**£**
325,310
360,531
8,689
16,893
11,434
12,503
345,433
389,927|
|---|---|
There were no employees whose annual remuneration was more than £60,000.
## **11 Net gains/(losses) on investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Revaluation of investments|-|(7,688)|
|Gain/(loss) on sale of investments|10,433|-|
||10,433|(7,688)|
- 18 -
**CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **12 Tangible fixed assets**
|**Leasehold**
**land and**
**buildings**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 September 2020
404,122
349,919
Additions
-
3,944
Disposals
-
(6,600)
At 31 August 2021
404,122
347,263
**Depreciation and impairment**
At 1 September 2020
333,456
286,725
Depreciation charged in the year
13,115
14,805
Eliminated in respect of disposals
-
(4,800)
At 31 August 2021
346,571
296,730
**Carrying amount**
At 31 August 2021
57,551
50,533
At 31 August 2020
70,666
63,194|**Total**
**£**
754,041
3,944
(6,600)
751,385
620,181
27,920
(4,800)
643,301
108,084
133,860|
|---|---|
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £359 (2020 - £1,320) for the year.
|£359 (2020 - £1,320) for the year.|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Fixtures and fittings|2,585|2,420|
An impairment review of the charity's fixed assets has been undertaken. The net realisable value of the assets concerned has been assessed by estimating their market value. Their value in use has been determined by evaluating present value of the future benefits expected to arise from the continued use of the assets concerned.
It has been agreed that the improvements to the leasehold property will be acquired by the landlord at their written down value at the time of the landlord's terminating the trust's operating lease.
- 19 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **13 Fixed asset investments**
||**Listed**|**Cash in**|**Total**|
|---|---|---|---|
||**investments**|**portfolio**||
||**£**||**£**|
|**Cost or valuation**||||
|At 1 September 2020|104,090|74|104,164|
|Additions|74|(74)|-|
|Valuation changes|10,433|-|10,433|
|Charges|(576)|-|(576)|
|Disposals|(114,021)|-|(114,021)|
|At 31 August 2021|-|-|-|
|**Carrying amount**||||
|At 31 August 2021|-|-|-|
|At 31 August 2020|104,090|74|104,164|
## **Fixed asset investments revalued**
The investments have all been sold during the year.
- 20 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **14 Stocks**
|Raw materials and consumables
**15**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**Amounts falling due after more than one year:**
Amounts owed by subsidiary undertakings
Other debtors
**Total debtors**
**16**
**Loans and overdrafts**
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2021**
**£**
7,629
**2021**
**£**
19,138
14,918
34,056
**2021**
**£**
90,000
-
90,000
124,056
**2021**
**£**
50,209
3,500
46,709
19,855|**2020**
**£**
5,913
**2020**
**£**
35,146
9,100
44,246
**2020**
**£**
70,041
2,180
72,221
116,467
**2020**
**£**
50,000
-
50,000
10,000|
|---|---|---|
On 1st June 2020 the trust was advanced a loan of £50,000 under the Coronavirus Bounce Bank Loan Scheme. Repayable in instalments over 8 Years after an initial 12 months interest and repayment free. Interest is payable at 2.5%.
- 21 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **17 Finance lease commitments**
Future minimum lease payments due under finance leases:
|Within one year
Within two and five years
Less: future finance charges|**2021**
**£**
1,440
5,759
7,199
(3,063)
4,136|**2020**
**£**
1,520
1,139
2,659
(148)
2,511|
|---|---|---|
.
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
## **18 Other creditors falling due within one year**
|Payments received on account
Trade creditors
Other creditors
Accruals and deferred income
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**16**
Obligations under finance leases
**17**|**2021**
**£**
193,105
6,323
44,512
9,861
253,801
**2021**
**£**
46,709
3,776
50,485|**2020**
**£**
274,718
3,203
23,393
6,982
308,296
**2020**
**£**
50,000
1,108
51,108|
|---|---|---|
## **19 Creditors: amounts falling due after more than one year**
- 22 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **20 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||**Movement**|**in funds**|||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|
||**Incoming**|**Resources**||**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**resources**|**expended**|**1**|**September**|**resources**|**expended**|**31 August**|
|||||**2020**|||**2021**|
||**£**|**£**||**£**|**£**|**£**|**£**|
|Coronavirus Job Retention||||||||
|Scheme|126,741|(126,741)||-|250,405|(250,405)|-|
- 23 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **21 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|71,471|64,854|
The Cranedale Centre's freehold land is owned by Shipton Estates Limited of which Mr A W A Outhwaite, a trustee of the trust, is director and major shareholder. The centre is occupied under an operating lease, dated 1 January 201 8 , for 3 years, on a full repairing and insuring basis, at a rental of one acorn, if so demanded. Due to the expiration of the lease the tenancy is holding over under the landlord and tenant legislation with no notice having been served by either party.
On 4 January 2012 the trust entered into assured shorthold tenancies in respect of 4 domestic properties owned by Shipton Estates Limited to be occupied by the centre's tutors, the rents payable are at a full market rent and have been assessed by an independent surveyor. A rent free period was granted to the trust in respect of the coronavirus pandemic situation. The total rents paid amounted to £ 10 ,000 (2020£24,000) with amounts outstanding at the year end of £nil (2020- £nil).
A loan of £ 24 ,000 was advanced to Shipton Estates Limited on 14 December 201 7 and is repayable in instalments over four years , interest is payable at 6.67% the amount owing at the year end was of £ 2180 (2020- £8523).
The trust wholly owns a subsidiary company The Cranedale Centre Limited which provides holidays and associated goods and services of a non educational nature.
Goods and services were purchased from the company during the year, on normal commercial terms, totalling £ nil (2020- £ 59 , 968) with amounts outstanding at the year end of £nil (2020- £nil).
Goods and services were sold to the company during the year, on normal commercial terms, totalling £ 3 , 60 0 (2020- £ 4 , 200 ) with amounts outstanding at the year end of £ nil (2020- £ nil ).
The trust receives a rent from the company, in respect of a 12 month licence, renewable yearly, for the company to occupy and use, including trading from and the hiring out of, various areas of the Cranedale Centre, payable at a sum of £600 per annum (2020- £600) .
Donations under the Gift Aid scheme were also made to the trust, by the company, during the year totalling £ nil (2020- £ nil ) . The amount owing at the year end was £0 (2020- £ 0).
The trust has supported it's wholly owned subsidiary during the year and ha s an unsecured loan due from the company which has a balance at 31 August 2021 of £90000 (2020- £70041).
The loan is repayable in full on 13 July 2024 , and interest is payable at 2% above HSBC base rates, per annum.
- 24 -
## **CRANEDALE EDUCATIONAL CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **22 Subsidiaries**
These financial statements are separate trust financial statements for Cranedale Educational Charitable Trust for the year ending 31 August 2021.
Separate company financial statements are prepared in compliance with Companies Act 2006. Consolidated financial statements for the group are not required to be prepared in accordance with Companies Act 2006 and the Charities Act.
Separate financial statements for the trusts subsidiary, Cranedale Centre Limited are prepared and can be obtained from the registered office.
Details of the trust's subsidiaries at 31 August 2021 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Cranedale Centre Limited|UK|Educational Services|Ordinary|100.00|
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Cranedale Centre Limited|(36,100)|(41,957)|
The investments in subsidiaries are all stated at fair value.
- 25 -