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 2022
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 York YO24 4EY Bankers HSBC UK Bank Plc 27 Market Place Malton YO17 7LU
CRANEDALE EDUCATIONAL CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 - 7 |
| Balance sheet | 8 - 9 |
| Notes to the financial statements | 11 - 25 |
CRANEDALE EDUCATIONAL CHARITABLE TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022
The trustees present their annual report and financial statements for the year ended 31 August 2022.
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.
Achievements and performance
After 18 months of enforced closure due to the coronavirus lockdown, the Cranedale Centre re-opened its doors to school visits from 1st September 2021.
It was a challenging year from a monetary perspective as we had ‘rolled over’ many deposits and booking fees in order to maintain our customer base. Therefore, most schools who visited only had to pay their remaining balance (around 50% of the course fee). Their previous payments being utilised over the preceding two years both for school refunds and to pay the Centre’s ongoing monthly bills.
The person days for the academic year Sept 2021 – Aug 2022 was 12,369 (2.4% down on the last ‘pre-covid’ year in 2018/19) however, as stated above, the challenge of rolling over deposits and sometimes ‘full balances’ meant we ran a year of ‘essential spending’ only.
Another challenge was starting operations again with around a quarter of our staff team being brand new employees, including 3 tutors and almost an entirely new catering department. This presented challenges to staff as they had to ‘find their feet’ very quickly. We were also operating with a much smaller team (circa 30-35 employees, as oppose to 40-45 employees pre pandemic). For the first month or so, customer feedback was much more negative than usual, especially with regards food, this feedback enabled our teams to learn what our customers have come to expect over the years and our staff should be credited with excelling in their roles as, thankfully, positive feedback became common place once again, certainly after the first term.
Teachers and their students were very pleased to return to us and very relieved that the Centre ‘made it through’ the difficult period of enforced closure. Whilst the spectre of Covid remained (some staff requiring to isolate and last minute student dropouts) thankfully, due to our strict cleaning regimes and hygiene controls, the Centre avoided any mass ‘outbreak’ for the entirety of the year.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
Whilst spending was restricted we continued in the purchase of a new and long-awaited Centre boiler (which had been planned originally for August 2020) and installed a more efficient and reliable oil boiler in January 2022. We also invested in new hardware for the catering department, including a commercial microwave.
We made changes to our food systems to further minimise wasted food – rather than large portions of food that often ended up in the bin, portions were more measured to save cost and minimise waste. We also provided free sanitary items, we began offering ‘Halal roasts’ which has been very well received and even highlighted specifically in letters we have received by some visiting students.
The Head of Centre and Deputy Head of Centre spent many days actively teaching in the field, as did former tutors who returned and worked ‘freelance’ to assist the relatively young and inexperienced educational team. All staff worked very long hours and this goodwill was testament to their commitment to the Charity and recognition of the difficult and fragile place the Centre was still in as it ‘regained its footing’ from its mothballed state.
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 £ 146,867 (2021 £ 39,245 ) and therefore the current amount of reserves are less than the required 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 unrestricted 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
As the end of the financial year approached, the trading company was able to purchase two new ‘2022’ registration minibuses to replace two 2012 models that had become unreliable. We also were able to advertise for 2 additional tutors to alleviate the pressure on the educational team for the following academic year. Repeat bookings remain strong with additional interest in bookings coming from new Geography and Biology A-level groups, although often bringing smaller cohort sizes. Most ‘roll over payments’ have now taken place, which means we can obtain a greater income stream.
Overall, we seek to return to a somewhat more normal year (where current staff can build and develop on their experiences and new staff can be inducted at a steadier pace).
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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
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, R E France and R H R Innes 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.
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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
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 21.
The trustees' report was approved by the Board of Trustees.
Mr A W A Outhwaite Trustee
29 June 2023
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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 2022.
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
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2 the financial statements do not accord with those records; or
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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 York YO24 4EY
Dated: 29 June 2023
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2022
| Current financial year Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 152 989 Charitable activities 4 901,428 - Investments 5 3,309 - Total income 904,889 989 Expenditure on: Raising funds 6 - - Charitable activities 7 798,256 - Total expenditure 798,256 - Net gains/(losses) on investments 11 - - Net incoming/(outgoing) resources before transfers 106,633 989 Gross transfers between funds 989 (989) Net income/(expenditure) for the year/ Net movement in funds 107,622 - Fund balances at 1 September 2021 39,245 - Fund balances at 31 August 2022 146,867 - |
Total 2022 £ 1,141 901,428 3,309 905,878 - 798,256 798,256 - 107,622 - 107,622 39,245 146,867 |
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 |
|---|---|---|
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 2022
Prior 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 incoming/(outgoing) resources before transfers (269,378) 250,405 Gross transfers between funds 250,405 (250,405) Net income/(expenditure) for the year/ 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 |
|---|---|
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
BALANCE SHEET
AS AT 31 AUGUST 2022
| Notes Fixed assets Tangible assets 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 assets/(liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year 19 Net assets Income funds Unrestricted funds |
2022 £ 12,102 150,000 31,181 148,695 341,978 5,800 594 8,445 221,048 235,887 |
£ 85,193 106,091 191,284 (44,417) 146,867 146,867 146,867 |
2021 £ 7,629 90,000 34,056 116,475 248,160 3,500 360 8,853 253,801 266,514 |
£ 108,084 (18,354) 89,730 (50,485) 39,245 39,245 39,245 |
|---|---|---|---|---|
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2022
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 2022.
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 29 June 2023
Mr A W A Outhwaite
Trustee
Company Registration No. 04240017
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2022
| Notes Cash flows from operating activities Cash generated from/(absorbed by) operations 22 Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received Net cash (used in)/generated from investing activities Financing activities Repayment of bank loans Payment of obligations under finance leases Net cash (used in)/generated from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ (4,307) - - - 3,309 (3,174) (360) |
£ 36,752 (998) (3,534) 32,220 116,475 148,695 |
2021 £ (3,944) (8,057) (74) 124,528 2,484 209 1,625 |
£ (65,935) 114,937 1,834 50,836 65,639 116,475 |
|---|---|---|---|---|
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
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 [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts 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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
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 Fixtures and fittings
Straight line over 20 years 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 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).
1.8 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.
1.9 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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
1 Accounting policies
(Continued)
1.10 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 payments 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.
1.11 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.
1.12 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13 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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
1 Accounting policies
(Continued)
1.14 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.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
3 Donations and legacies
| Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 152 - Government support - 989 152 989 Donations and gifts Garfield Weston Foundation - - Other 152 - 152 - Grants receivable for core activities Ryedale Council Covid Support Grants - - Coronovirus Job Support Scheme - 989 - 989 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 152 42,545 - 989 39,214 250,405 1,141 81,759 250,405 - 40,000 - 152 2,545 - 152 42,545 - - 39,214 - 989 - 250,405 989 39,214 250,405 |
Total 2021 £ 42,545 289,619 |
|---|---|---|
| 332,164 | ||
| 40,000 2,545 |
||
| 42,545 | ||
| 39,214 250,405 |
||
| 289,619 |
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
4 Charitable activities
| **Field centre ** | Field centre | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Field Centre | 901,428 | 113,544 |
5 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Rental income | 600 | 600 |
| Interest received on loans | 2,590 | 1,881 |
| Interest receivable | 119 | 3 |
| 3,309 | 2,484 |
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.
6 Raising funds
| Investment management | 2022 £ - - |
2021 £ 576 |
|---|---|---|
| 576 |
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
7 Charitable activities
| Field centre | Field centre |
|
|---|---|---|
| operation | operation | |
| 2022 | 2021 | |
| £ | £ | |
| Staff costs | 327,281 | 252,995 |
| Depreciation and impairment | 27,198 | 27,920 |
| Educational Purchases | 77,331 | 5,424 |
| Repairs & Renewals | 37,358 | 6,087 |
| Motor Expenses & Travel | 124,040 | 203 |
| Teaching Staff Telephone | 272 | 766 |
| Light, Heat & Power | 48,654 | 24,935 |
| Sundry Expenses | 3,509 | 2,456 |
| Rent & Rates | 18,795 | 17,161 |
| Insurances | 9,689 | 10,719 |
| Laundry | 2,501 | 1,409 |
| 676,628 | 350,075 | |
| Share of support costs (see note 8) | 76,137 | 85,741 |
| Share of governance costs (see note 8) | 45,491 | 41,206 |
| 798,256 | 477,022 |
All the charitable activities relate to the operation of the educational field centre.
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CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
8 Support costs
| Staff costs Telecommunications Printing & Stationery Advertising Cleaning & General Maintenance IT Costs Audit fees Accountancy Bank Charges HP & Lease Charges Bookkeeping Analysed between Charitable activities |
Support costs Governance costs £ £ 52,283 23,173 3,754 - 2,122 - 2,703 - 8,722 - 6,553 - - 2,500 - 1,520 - 207 - 2,371 - 15,720 76,137 45,491 76,137 45,491 |
2022 £ 75,456 3,754 2,122 2,703 8,722 6,553 2,500 1,520 207 2,371 15,720 121,628 121,628 |
2021 Basis of allocation £ 92,438 Time spent 4,632 Total Expenditure 722 Total Expenditure 1,808 Total Expenditure 4,723 Total Expenditure 4,317 Total Expenditure 2,500 Governance 1,520 Governance 177 Governance 910 Governance 13,200 Governance 126,947 126,947 |
|---|---|---|---|
Governance costs includes payments to the auditors of £2,500 (2021 - £2,500) for the independent examination of the financial statments and £1,520 (2021- £1,520) 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 £6,249 (2021- £nil) Domestic services £7,155 (2021- £4,481) Motor insurance £2,540 (2021- £4,700)
The amounts outstanding at the year end were £nil (2021 £nil).
10 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 |
|---|---|
| Number | Number |
| 33 | 35 |
- 18 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
| 10 Employees Employment costs Wages and salaries Social security costs Other pension costs |
(Continued) 2022 2021 £ £ 363,977 325,310 17,656 8,689 21,104 11,434 402,737 345,433 |
(Continued) 2022 2021 £ £ 363,977 325,310 17,656 8,689 21,104 11,434 402,737 345,433 |
|---|---|---|
| 345,433 |
There were no employees whose annual remuneration was more than £60,000.
11 Net gains/(losses) on investments
| **Total ** | Unrestricted | |
|---|---|---|
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Gain/(loss) on sale of investments | - | 10,433 |
12 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 19 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
13 Tangible fixed assets
| Leasehold land and buildings Fixtures and fittings £ £ Cost At 1 September 2021 404,122 347,264 Additions - 4,307 Disposals - (33,270) At 31 August 2022 404,122 318,301 Depreciation and impairment At 1 September 2021 346,571 296,731 Depreciation charged in the year 11,725 15,473 Eliminated in respect of disposals - (33,270) At 31 August 2022 358,296 278,934 Carrying amount At 31 August 2022 45,826 39,367 At 31 August 2021 57,551 50,533 |
Total £ 751,386 4,307 (33,270 |
|---|---|
| 722,423 | |
| 643,302 27,198 (33,270 |
|
| 637,230 | |
| 85,193 | |
| 108,084 |
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 £717 (2021 - £359) for the year.
| (2021 - £359) for the year. | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Fixtures and fittings | 2,868 | 3,585 |
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.
14 Stocks
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Raw materials and consumables | 12,102 | 7,629 |
- 20 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
| 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 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 |
2022 £ 21,313 9,868 31,181 2022 £ 150,000 181,181 2022 £ 47,035 5,800 41,235 15,400 |
2021 £ 19,138 14,918 |
|---|---|---|
| 34,056 | ||
| 2021 £ 90,000 |
||
| 124,056 | ||
| 2021 £ 50,209 |
||
| 3,500 46,709 |
||
| 19,855 |
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 2022
17 Finance lease commitments
Future minimum lease payments due under finance leases:
| Within one year Within two and five years Less: future finance charges |
2022 £ 1,439 4,321 5,760 (1,984) 3,776 |
2021 £ 1,440 5,759 |
|---|---|---|
| 7,199 (3,063 |
||
| 4,136 |
.
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 |
2022 £ 153,045 16,531 35,058 16,414 221,048 |
2021 £ 193,105 6,323 44,512 9,861 |
|---|---|---|
| 253,801 |
19 Creditors: amounts falling due after more than one year
| Creditors: amounts falling due after more than one year | ||
|---|---|---|
| Notes Bank loans 16 Obligations under finance leases 17 |
2022 £ 41,235 3,182 44,417 |
2021 £ 46,709 3,776 |
| 50,485 |
- 22 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
20 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | 75,457 | 71,471 |
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 2021, 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 £12,000 (2021- £10,000) with amounts outstanding at the year end of £nil (2021- £nil).
A loan of £24,000 was advanced to Shipton Estates Limited on 14 December 2017 and is repayable in instalments over four years, interest is payable at 6.67% the amount owing at the year end was of £0 (2021£2180).
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 £124,040 (2021- £nil) with amounts outstanding at the year end of £nil (2021- £nil).
Goods and services were sold to the company during the year, on normal commercial terms, totalling £3,600 (2021- £3,600) with amounts outstanding at the year end of £nil (2021- £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 (2021- £600).
Donations under the Gift Aid scheme were also made to the trust, by the company, during the year totalling £nil (2021- £nil). The amount owing at the year end was £0 (2021- £ 0).
The trust has supported it's wholly owned subsidiary during the year and has an unsecured loan due from the company which has a balance at 31 August 2022 of £150000 (2021- £90000).
The loan is repayable in full on 13 July 2024, and interest is payable at 2% above HSBC base rates, per annum.
- 23 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
21 Subsidiaries
These financial statements are separate trust financial statements for Cranedale Educational Charitable Trust for the year ending 31 August 2022.
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 2022 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 | 39,131 | (2,826) |
The investments in subsidiaries are all stated at fair value.
| 22 Cash generated from operations Surplus/(deficit) for the year Adjustments for: Investment income recognised in statement of financial activities Gain on disposal of investments Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in stocks (Increase) in debtors (Decrease) in creditors Cash generated from/(absorbed by) operations |
2022 £ 107,622 (3,309) - 27,198 (4,473) (57,125) (33,161) 36,752 |
2021 £ (18,973) (2,484) (10,433) 27,920 (1,716) (7,589) (52,660) |
|---|---|---|
| (65,935) |
- 24 -
CRANEDALE EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
| 23 | Analysis of changes in net funds | |||
|---|---|---|---|---|
| At 1 September | Cash flows | At 31 August | ||
| 2021 | 2022 | |||
| £ | £ | £ | ||
| Cash at bank and in hand | 116,475 | 32,220 | 148,695 | |
| Loans falling due within one year | (3,500) | (2,300) | (5,800) | |
| Loans falling due after more than one year | (46,709) | 5,474 | (41,235) | |
| Obligations under finance leases | (4,136) | 360 | (3,776) | |
| 62,130 | 35,754 | 97,884 |
- 25 -