REGISTERED COMPANY NUMBER: 04234021 (England and Wales) REGISTERED CHARITY NUMBER: 1087799
REPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022
FOR
WISBECH EDUCATIONAL FOUNDATION
Wheelers
Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
WISBECH EDUCATIONAL FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 4 |
| Report of the Independent Auditors | 5 to 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 to 23 |
WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2022
The Trustees submit their report and financial statements for the year ended 31 January 2022 under the Companies Act 2006, the Company's Memorandum & Articles of Association, the Foundation's Scheme and the Charities (FRS102) '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 2015)'.
OBJECTIVES AND ACTIVITIES
Objectives and aims
Wisbech Educational Foundation is a charity with the objective of "advancing education for the public benefit in or near Wisbech in particular but not exclusively by promoting the education of children attending independent schools in the area through the provision of grants to those in financial need, scholarships or prizes."
The Foundation is a continuation of the Wisbech Grammar School Charity which can trace it's history back to 1379 when a school was founded by the Wisbech Guild of the Holy Trinity at St Peter's and St Paul's church. Chartered by Edward VI in 1549 as a grammar school for boys, for much of its history it offered a largely classical curriculum of Greek, Latin and arithmetic under the governance of the Wisbech Corporation. After the first 150 years the school moved premises to the old guildhall in Hill Street and then on to South Brink before merging with the Wisbech High School for Girls in 1970 at their present site on North Brink.
For much of the 20th century, it was a non-fee paying voluntary-aided school, but following local council plans to remove this status and merge the Grammar School with a nearby secondary modern school, the governors took the decision to become fully independent in 1983 becoming a fee-paying day school, run by the charity for pupils aged 4 to 18 to attend from the three counties of Cambridgeshire, Norfolk and Lincolnshire. Following the closure of the nearby St Audrey's Convent, a significant feeder for the senior school, a new junior and infant preparatory school was opened in 1997, now known as Magdalene House.
In 2020, the charity transferred the business of the day to day running of the school to Wisbech Grammar School Ltd and Wisbech Educational Foundation now carries on charitable educational work within the local community. This includes awarding bursaries to those pupils who fulfil the academic criteria for entry to an independent school, and who will act as a positive role model, but who would otherwise be unable to afford the education on offer. The Foundation will also consider bursaries for other fee paying educational courses on its merits.
The trustees have regard to the Charity Commission's guidance on public benefit.
STRATEGIC REPORT
Achievement and performance
Charitable activities
During the year, the charity continued to help a number of local families who had suffered hardship for a variety of reasons, principally related to the Coronavirus pandemic, with financial support toward school fees to ensure that their child's education was not disrupted and started to pay a substantial bursary to assist a sixth form pupil to attend Wisbech Grammar School who would not otherwise have been able to do so.
Fundraising activities
The charity does not carry out significant fundraising activities.
Page 1
WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2022
STRATEGIC REPORT Financial review
Financial review (including reserves policy)
Having relinquished the day to day running of the school to Wisbech Grammar School Ltd, the charity's finances are on a much sounder footing. The trustees have kept a tight control on the charity's running costs and the charity has made a surplus during the course of the year.
The charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020 and the liability in the accounts is in accordance with the cessation valuation report dated 1 September 2020. The charity intends on repaying this liability in ten annual instalments, with the first instalment paid in September 2021, however, it is still in the process of formally agreeing and documenting the payment plan.
The charity's principal source of funding is the income it receives from its land and buildings. The trustees intend to use approximately one third of its rental income to fund bursaries, one third toward settlement of the pension cessation liability and one third to cover the charity's running costs and build its reserves so they can be invested to provide investment income to enable the charity to meet its objectives.
Plans for future periods
The charity is hoping to provide bursaries to pay 100% of the School fees for pupils from the local area who wish to attend the Sixth Form and earlier years at the Senior School of Wisbech Grammar School but whose parents are unable to afford the fees.
To qualify for such a bursary, the pupil would ideally be someone who does not attend the school and would have to apply to Wisbech Grammar School for a place.
The pupil would have to satisfy the Grammar School that they had the necessary academic qualifications for a place in the Sixth Form and his or her parents would have to satisfy the Grammar School's criteria for the award of a 100% bursary. The Grammar School would then initially make the recommendation to the charity to fund the Bursary.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing instruments
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
Co-opted trustees are elected by the Board of Trustees. The term of office for co-opted trustees is three years following which they are eligible for re-election.
The Bishop of Ely has the right to nominate one trustee and the Master and Fellows of Magdalene College Cambridge has the right to nominate two trustees. All nominations are confirmed by the Board of Trustees.
New trustees receive an induction into the workings of the Charity and are provided with Terms of Reference relevant to their position.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
04234021 (England and Wales)
Registered Charity number
1087799
Registered office
Wisbech Grammar School Chapel Road Wisbech Cambridgeshire PE13 1RH
Page 2
WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2022
Trustees
Chairman: Mrs E Morris, LLB Vice Chairman: Dr Q Wong, MB.BS, FRCGP, DRCOG, Treasurer: Mr C Goad, BFP, FCA
Dr C Mair BSc, BVetMed, MRCVS Mrs J Bodger BEd
The Venerable Hugh McCurdy, Archdeacon of Huntingdon and Wisbech, BA (retired on 11 April 2021) Mr I MacLachlan
Dr K Hart MBCRB, FRCPCH
REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary
Mr C Goad BFP FCA
Auditors
Wheelers Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
Bankers
Barclays Bank PLC
Solicitors
Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Wisbech Educational Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
-
there is no relevant audit information of which the charitable company's auditors are unaware; and
-
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Page 3
WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2022
AUDITORS
The auditors, Wheelers, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 13 October 2022 and signed on the board's behalf by:
Mrs E Morris LLB - Trustee
Page 4
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
Opinion
We have audited the financial statements of Wisbech Educational Foundation (the 'charitable company') for the year ended 31 January 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
-
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 January 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 5
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility of the prevention and detection of fraud rests with those charged with governance of the entity.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity and determined that the most significant are those that relate to the reporting framework (United Kingdom Accounting Standards in conformity with the Companies Act 2006, Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland") and the relevant tax regulations in the United Kingdom.
-
We understood how Wisbech Educational Foundation is complying with those frameworks by identifying the Charity's policies and procedures regarding compliance with laws and regulations.
-
We assessed the susceptibility of the Charity's financial statements to material misstatement, including how fraud might occur by enquiry during the planning and execution phases of our audit.
-
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved:
o Review of trustee minutes of meetings to identify any instances of non-compliance with laws and regulations, including communications with regulators and tax authorities.
o Auditing the risk of management override of controls, including through review of adjustments for appropriateness.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Helen Garrett BA FCA, CTA (Senior Statutory Auditor) for and on behalf of Wheelers Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
Date: 17 October 2022
Page 8
WISBECH EDUCATIONAL FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY 2022
| Notes INCOME AND ENDOWMENTS FROM Investment income 3 EXPENDITURE ON Charitable activities 4 Charitable activities Net gains on investments Capital contribution NET INCOME RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment 10 As restated TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 227,489 126,879 - (15,028) 85,582 4,722,820 222,708 4,945,528 5,031,110 |
Restricted funds £ - - 67 - 67 5,113 - 5,113 5,180 |
31.1.22 Total funds £ 227,489 126,879 67 (15,028) 85,649 4,727,933 222,708 4,950,641 5,036,290 |
31.1.21 Total funds as restated £ 230,152 142,731 115,163 (19,680) 182,904 4,767,737 - 4,767,737 4,950,641 |
|---|---|---|---|---|
The notes form part of these financial statements
Page 9
WISBECH EDUCATIONAL FOUNDATION
BALANCE SHEET 31 JANUARY 2022
| Notes FIXED ASSETS Investments Investments 11 Investment property 12 CURRENT ASSETS Debtors 13 Cash at bank CREDITORS Amounts falling due within one year 14 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 15 PENSION LIABILITY 20 NET ASSETS FUNDS 19 Unrestricted funds Restricted funds TOTAL FUNDS |
31.1.22 £ 9,131 5,760,000 5,769,131 91,760 134,339 226,099 (102,923) 123,176 5,892,307 (381,355) (474,662) 5,036,290 5,031,110 5,180 5,036,290 |
31.1.21 as restated £ 9,064 5,760,000 5,769,064 56,554 164,609 221,163 (109,684) 111,479 5,880,543 (404,902) (525,000) 4,950,641 4,945,528 5,113 4,950,641 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 13 October 2022 and were signed on its behalf by:
Mrs E Morris LLB - Trustee
Mr C Goad BFP FCA - Trustee
The notes form part of these financial statements
Page 10
WISBECH EDUCATIONAL FOUNDATION
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JANUARY 2022
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Interest element of hire purchase payments paid Net cash provided by/(used in) operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Cash flows from financing activities Loan repayments in year Capital repayments in year Pension liability capital repayment Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.1.22 £ 83,612 (4,925) (689) 77,998 - - (53,062) (4,867) (50,339) (108,268) (30,270) 164,609 134,339 |
31.1.21 as restated £ (1,563,168) (57) (1,411) (1,564,636) 411 411 (62,990) (9,402) - (72,392) (1,636,617) 1,801,226 164,609 |
|---|---|---|
The notes form part of these financial statements
Page 11
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JANUARY 2022
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Gain on investments Interest received Interest paid Interest element of hire purchase and finance lease rental payments Capital contribution adjustment (Increase)/decrease in debtors Decrease in creditors Net cash provided by/(used in) operations ANALYSIS OF CHANGES IN NET FUNDS At 1.2.21 £ Net cash Cash at bank 164,609 164,609 Debt Finance leases (7,684) (7,684) Total 156,925 |
31.1.22 £ 85,649 (67) - 22,013 689 15,028 (35,206) (4,494) 83,612 Cash flow £ (30,270) (30,270) 4,868 4,868 (25,402) |
31.1.21 as restated £ 403,450 (115,163) (411) 18,215 1,411 (200,866) 91,219 (1,761,023) (1,563,168) At 31.1.22 £ 134,339 134,339 (2,816) (2,816) 131,523 |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
Page 12
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022
1. STATUTORY INFORMATION
Wisbech Educational Foundation is a charitable company, limited by guarantee, registered in England and Wales. The company has no share capital and in the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The register number company number is 04234021 and the registered charity number is 1087799. The registered office is located at Chapel Road, Wisbech, Cambridgeshire PE13 1RH.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The financial statements are prepared in sterling which is the functional currency of the company.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Significant judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Investment property
Investment property is stated at fair value with changes in the fair value being recognised in the Statement of Financial Activities. No depreciation is provided in respect of investment property in accordance with FRS102 Chapter 16.
The fair value of investment property is assessed on an annual basis by the trustees. The main investment property has been included at a valuation of £5.6m based on a valuation of the property in 2019 by an external valuer and in accordance with a property option agreement in place. The option gives the tenant, Wisbech Grammar School Limited, an option to purchase the land and buildings from the Charity in the future at a value pre-determined by a qualified independent surveyor until 30 January 2025 and by reference to future RPI increases during the period 31 January 2025 and 30 January 2030. The trustees still consider this valuation to be appropriate.
Pensions liability
The Charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020. The Charity has had various discussions with Cambridgeshire County Council and the appointed actuary of the scheme, who have indicated that the cessation liability amounts to £525,000. This liability together with the associated assumptions is the liability referred to in these financial statements as detailed in note 20, reduced by the first instalment settled in September 2021. The Charity has not received any indication that the cessation liability will be revised.
continued...
Page 13
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
2. ACCOUNTING POLICIES - continued
Interest free loans
The charity has a long term liability being a loan which is interest free until 31 January 2030. In accordance with FRS102, this loan is discounted to its present value. From 31 January 2030, the agreement provides that interest will be charged at 2% above base. The trustees consider that this is a market rate of interest and as a result, this rate is considered appropriate for use in the discounting calculations.
Income
Income is recognised in the Statement of Financial Activities once the company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
i) The Charity's general fund consists of funds which the Charity may use for its purpose at its discretion, in furtherance of the general objectives of the Charity.
ii) The Charity's restricted funds are those where the donors have imposed restrictions on the use of the funds which are legally binding.
Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the quoted bid market price or market value. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the period.
Trade and other debtors
Trade and other debtors are recognised and carried at the lower of their original invoiced value and recoverable amount. Provision for impairment is made through the Statement of Financial Activities when there is objective evidence that the company will not be able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand includes cash and short term highly liquid investments with an original maturity date of three months or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Creditors and provisions
Creditors and provisions are recognised where the company 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 measured or estimated reliably. Creditors and provisions are recorded at transaction price.
continued...
Page 14
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
2. ACCOUNTING POLICIES - continued
Hire purchase and leasing commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset's useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the Statement of Financial Activities so as to achieve a constant rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the lease term. Lease incentives are recognised over the lease term on a straight-line basis.
Financial instruments
Basic financial instruments are initially recognised at transaction value and subsequently measured at their fair value.
Financing transactions are measured initially at the present value of future cashflows discounted at a market rate of interest and subsequently measured at amortised cost using the effective interest method.
3. INVESTMENT INCOME
| Rent and lettings COIF and Charifund shares Deposit account interest |
31.1.22 a £ 227,374 115 - 227,489 |
31.1.21 s restated £ 229,627 113 412 230,152 |
|---|---|---|
4. CHARITABLE ACTIVITIES COSTS
| CHARITABLE ACTIVITIES COSTS | |||
|---|---|---|---|
| Direct | Support | ||
| Costs (see | costs (see | ||
| note 5) | note 6) | Totals | |
| £ | £ | £ | |
| Charitable activities | 47,936 | 78,943 | 126,879 |
Page 15
continued...
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
5. DIRECT COSTS OF CHARITABLE ACTIVITIES
| Bad debts Grants |
31.1.22 a £ (14,208) 62,144 47,936 |
31.1.21 s restated £ 6,971 49,013 55,894 |
|---|---|---|
The Charity, during the year, committed to providing grants to support students of Wisbech Grammar School with their school fees totalling £62,144 (2021: £49,013).
6. SUPPORT COSTS
| Management £ Charitable activities 48,740 Support costs, included in the above, are as follows: Management Advertising Legal and professional fees Rates, water, gas, electricity and rent Insurance Other costs Finance Bank interest Interest on pension scheme liabilities Loan interest Hire purchase interest |
Governance Finance costs Totals £ £ £ 22,703 7,500 78,943 31.1.22 31.1.21 as restated Charitable Total activities activities £ £ - 14 6,034 11,480 12,000 14,387 30,306 27,299 400 3,371 48,740 56,551 31.1.22 31.1.21 as restated Charitable Total activities activities £ £ 38 57 4,887 - 17,089 18,158 689 1,411 22,703 19,626 |
|---|---|
Page 16
continued...
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
6. SUPPORT COSTS - continued Governance costs
31.1.22 31.1.21 as restated Charitable Total activities activities £ £ Auditors' remuneration 7,500 10,570
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.1.22 31.1.21 as restated £ £ Auditors remuneration 7,500 10,570
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 January 2022 nor for the year ended 31 January 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 January 2022 nor for the year ended 31 January 2021.
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Investment income EXPENDITURE ON Charitable activities Charitable activities Net gains on investments Capital contributions NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 230,152 142,731 114,500 (19,680) 182,241 4,763,287 4,945,528 |
Restricted funds £ - - 663 - 663 4,450 5,113 |
Total funds as restated £ 230,152 142,731 115,163 (19,680) 182,904 4,767,737 4,950,641 |
|---|---|---|---|
continued...
Page 17
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
10. PRIOR YEAR ADJUSTMENT
The charity has made a prior year adjustment to reflect a lease incentive provided as lessor of the property to the tenant during the five years to the end of the initial option period. The effect is to increase rental income and debtors as at 31 January 2021 by £40,000.
In addition, the charity has also made a prior year adjustment to reflect a non-interest bearing loan to be recognised at fair value. The effect of the adjustment is to reduce creditors and recognise a capital contribution of £220,546 made on the inception of the loan. Furthermore, notional interest of £18,158 has been charged for the year ended 31 January 2021 together with an adjustment of £19,680 to reflect other loan movements as a reduction to the value of the original capital contribution.
11. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | ||
|---|---|---|
| 31.1.22 | 31.1.21 | |
| as restated | ||
| £ | £ | |
| Shares | 4,131 | 4,064 |
| Other | 5,000 | 5,000 |
| 9,131 | 9,064 | |
| Additional information as follows: | ||
| Unlisted | ||
| investments | ||
| £ | ||
| MARKET VALUE | ||
| At 1 February 2021 | 4,064 | |
| Revaluations | 67 | |
| At 31 January 2022 | 4,131 | |
| NET BOOK VALUE | ||
| At 31 January 2022 | 4,131 | |
| At 31 January 2021 | 4,064 | |
| There were no investment assets outside the UK. | ||
| Cost or valuation at 31 January 2022 is represented by: | ||
| Unlisted | ||
| investments | ||
| £ | ||
| Valuation in 2022 | 4,131 | |
| Investments (neither listed nor unlisted) were as follows: | ||
| 31.1.22 | 31.1.21 | |
| as restated | ||
| £ | £ | |
| Valuation brought forward | 5,000 | 5,000 |
continued...
Page 18
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
11. FIXED ASSET INVESTMENTS - continued
Other fixed asset investments have been included at a trustee's valuation of £5,000 based on comparable market data.
12. INVESTMENT PROPERTY
| INVESTMENT PROPERTY | |
|---|---|
| FAIR VALUE At 1 February 2021 and 31 January 2022 NET BOOK VALUE At 31 January 2022 At 31 January 2021 |
£ 5,760,000 |
| 5,760,000 | |
| 5,760,000 |
The Investment Property is stated at fair value with changes in fair value being recognised in the Statement of Financial Activities. No depreciation is provided in respect of this property in accordance with FRS 102 Chapter 16. The property, let to Wisbech Grammar School Limited, has been included at a valuation of £5.6m based on a valuation of the property undertaken in 2019 and in accordance with the property option agreement. The property known as Town Field, Elm, which does not form part of the purchase option agreement, was valued by Maxey Grounds as at 31 January 2021, based on its market value in accordance with the requirements of the RICS Valuation - Global Standards 2020, at £160,000. The trustees consider this valuation to be appropriate at 31 January 2022.
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Hire purchase (see note 16) Trade creditors Other creditors Accruals and deferred income |
31.1.22 a £ 11,760 80,000 91,760 31.1.22 a £ 2,600 3,900 49,699 46,724 102,923 |
31.1.21 s restated £ 16,554 40,000 56,554 31.1.21 s restated £ 4,867 5,669 41,838 57,310 109,684 |
|---|---|---|
continued...
Page 19
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Hire purchase (see note 16) Other creditors |
31.1.22 a £ 216 381,139 381,355 |
31.1.21 s restated £ 2,817 402,085 404,902 |
|---|---|---|
Included within other creditors is an amount of £381,139 which represents the present value of a non interest bearing loan. The terms of this are that it will be interest free for ten years from 30 January 2020 and thereafter accrue interest at 2% above base. The principal amount outstanding at 31 January 2022 amounts to £531,731. The difference between the principal amount and present value of the loan is included within unrestricted general funds as a capital contribution.
16. LEASING AGREEMENTS
Minimum lease payments fall due as follows:
| Net obligations repayable: Within one year Between one and five years Within one year Between one and five years In more than five years |
Hire purchase contracts 31.1.22 31.1.21 as restated £ £ 2,600 4,867 216 2,817 2,816 7,684 Non-cancellable operating leases 31.1.22 31.1.21 as restated £ £ 18,818 71,068 48,568 176,514 15,833 25,833 83,219 273,415 |
|---|---|
Following the completion of the transfer of the business and tangible assets of the school, excluding the freehold land and buildings, on the 31 January 2020 to Wisbech Grammar School Limited, the operating lease and hire purchase contract liabilities were being met by Wisbech Grammar School Limited, however the leases were not assigned. During the year ended 31 January 2022, all but two of the vehicle operating leases were assigned.
17. SECURED DEBTS
The following secured debts are included within creditors:
| 31.1.22 | 31.1.21 | |
|---|---|---|
| as restated | ||
| £ | £ | |
| Hire purchase contracts | 2,816 | 7,684 |
As detailed in note 16, the original hire purchase liability is still in the name of the charity even though the assets were sold on 31 January 2020.
continued...
Page 20
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
18. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Investments Current assets Current liabilities Long term liabilities Pension liability 19. MOVEMENT IN FUNDS Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS Net movement in funds, included in the above ar Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
Unrestricted funds £ 5,765,000 225,050 (102,923) (381,355) (474,662) 5,031,110 At 1.2.21 £ 4,722,820 5,113 4,727,933 e as follows: Incoming resources £ 227,489 - 227,489 |
Restricted funds £ 4,131 1,049 - - - 5,180 Prior year adjustment £ 222,708 - 222,708 Resources expended £ (126,879) - (126,879) |
31.1.22 Total funds £ 5,769,131 226,099 (102,923) (381,355) (474,662) 5,036,290 Net movement in funds £ 85,582 67 85,649 Gains and losses £ (15,028) 67 (14,961) |
31.1.21 as restated Total funds £ 5,769,064 221,163 (109,684) (404,902) (525,000) 4,950,641 At 31.1.22 £ 5,031,110 5,180 5,036,290 Movement in funds £ 85,582 67 85,649 |
|
|---|---|---|---|---|---|
| e |
continued...
Page 21
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2022
19. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
At 1.2.20 £ 4,542,741 4,450 4,547,191 |
Net movement in funds £ 402,787 663 403,450 |
At 31.1.21 £ 4,945,528 5,113 4,950,641 |
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 230,152 - 230,152 |
Resources expended £ (142,731) - (142,731) |
Gains and Movement losses in funds £ £ 315,366 402,787 663 663 316,029 403,450 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
At 1.2.20 £ 4,542,741 4,450 4,547,191 |
Prior year adjustment £ 222,708 - 222,708 |
Net movement in funds £ 488,369 730 489,099 |
At 31.1.22 £ 5,253,818 5,180 5,258,998 |
|---|---|---|---|---|
continued...
Page 22
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2022
19. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 457,641 - 457,641 |
Resources expended £ (269,610) - (269,610) |
Gains and Movement losses in funds £ £ 300,338 488,369 730 730 301,068 489,099 |
|---|---|---|---|
20. PENSION AND SIMILAR OBLIGATIONS
The Charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020. The liability in the accounts is in accordance with the cessation valuation report dated 1 September 2020.
The Charity has had various discussions with Cambridgeshire County Council and the appointed actuary of the scheme, who have indicated that the cessation liability amounts to £525,000. This liability together with the associated assumptions and reduced by the first payment in an instalment plan, is the liability referred to in these financial statements. The Charity is still however in the process of formally documenting this agreement together with the payment plan by which it is to be settled. The figures advised by the actuary on behalf of the Cambridgeshire County Council includes a fixed interest sum of £27,250 in recognition of the fact that the liability is to be paid over a ten year term. In accordance with the Cambridgeshire County Council cessation valuation report, there is currently pending litigation which may result in changes to the calculated liability. The Charity, however, has not received any indication that the liability will be revised.
21. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 January 2022.
Page 23