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2022-07-31-accounts

Registered number: 04527579 Charity number: 1094451

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Chairman's statement 2 - 3
Trustees' report 4 - 10
Independent auditors' report on the financial statements 11 - 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 34

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2022

Trustees Mr P Hall (resigned 31 March 2022)
Ms A W M Katung (resigned 31 May 2022)
Mrs D Hodgkinson (resigned 31 March 2022)
Dr E J Roberts (resigned 31 December 2021)
Mr N H Zaman
Ms C L Walker
Ms K J Badon
Mrs S Sinha
Dr E J Watkins
Ms C Wigzell (resigned 31 March 2022)
Mr I Greenwood
Ms M Ellis (resigned 31 March 2022)
Mr J L Arnison (appointed 31 March 2022, resigned 26 October 2022)
Mrs S L Taylor (appointed 31 March 2022)
Miss L R Huxley (appointed 31 March 2022)
Company registered
number
04527579
Charity registered
number
1094451
Registered office
2/7 Woodhouse Square
Leeds
LS3 1AD
Company secretary
C Baillie
Senior management
team
P Johnson
A Torbitt
J Macleod
C Baillie
S Emmett
Independent auditors
Sagars Accountants Ltd
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG

Page 1

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

CHAIR'S STATEMENT FOR THE YEAR ENDED 31 JULY 2022

This has been my fifth year as Chair of the Trustee Council at Swarthmore and the Trustees were very pleased to be able to reopen the Centre to learners after the long COVID lockdown. We were well placed to make this a year of strong recovery despite the ongoing prevalence of COVID, with the Omicron variant hitting us hardest in December 2021, just as the Government support came to an end. We also had to deal with the reality that for some people who may have otherwise come along to Swarthmore, there was still a degree of caution about returning to face-to-face learning. Despite that, over the full financial year we saw slowly the numbers of new learners coming to Swarthmore increasing and thus benefitting from our many and varied adult education courses. Part of the increase was down to our ongoing blended learning approach, keeping some digital classes alongside our face-to-face ones and a mix of both. We continued to make great strides forward on the digital delivery front and we were proud to win the Educate North award for Digital Education and Development in April 2022, against stiff competition. This was a great testament to both the quality and innovation of our digital delivery at Swarthmore.

We continued to invest in our building, fully refurbishing the hall, decorating, and refreshing all classrooms and creating an improved and positive learning environment throughout. We restarted our room hire in earnest in Spring 2021 and as a result we have seen a slow increase in room hire uptake. We placed purifiers in many rooms, reducing greatly the potential for spread of infection. We continued to invest in our IT infrastructure to enable our business to grow, and we achieved the Cyber Essentials as required. Our ambition looking forward is to work toward Cyber Essentials Plus in the coming year.

This year also saw Swarthmore deliver a uniquely tailored programme for a number of Ukrainian refugees who came to Leeds. Our programme aimed to support the refugees and enable them to assimilate well in our city by gaining skills, knowledge and ultimately jobs. Not only did the programme support the refugees, but it also enabled our civic leaders and host families to deliver on their ambitions to provide a safe place with a future and promise of hope. Our Art at the Heart project, funded by the European Social Fund, enabled the sharing of creativity with many who would otherwise not get that opportunity.

This year we were able to reopen our on-site café, recreating our community and exhibition space, thus bringing the heart back into Swarthmore. This in turn has helped with the mental health of many who had felt isolated and lonely during COVID lockdown.

The Study Programme - that delivers to a wide range of students aged between 18 and 24 - continued to show steady growth. Our specially tailored programme for each student, taking full account of their needs requires special teaching skills and patience, but in return it offers the genuine reward of making a real difference in their lives, in their families lives and within their communities. We were particularly proud this year as for the first time one of our Study Programme students accepted a place at University after he gained three A levels - two A* and one grade A. What a fantastic achievement. The Study Programme achieved an amazing 100% pass rate for GCSE's, whilst across the Centre our overall pass rate was 95%.

To enable us to deliver education in the widest sense, we continued during the year to work with a wide range of partners including Leeds University, Pyramid Arts, many employers in the area, Leeds Older People's Forum and the Age Friendly Steering Group. Our ongoing relationships with close partners, including Leeds City Council, Leeds City College and MoJ continued to grow and improve, providing much needed income to the Centre .

Page 2

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

CHAIR'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Financially, we had income from ESFA £882,973, Leeds City Council £443,800 and Leeds City College £39,107 alongside our income from paying students, room hire and our café. Despite all of this we still disappointingly ended the year in a deficit position, which means we must now move forward to a year of growth.

So, looking forward, to achieve the growth necessary we will have ongoing improvements by investing further in our staff, our building and our governance which will enable us to realise further the full potential in the Centre, based on a strong strategic business plan.

So may I close this report with many thanks to all our students for supporting Swarthmore, to our incredible staff who work tirelessly to deliver high quality education, to our management team that continues to grow stronger, to our Director, Chris Baillie, who has set a high standard in the Centre and created a positive culture across the organisation and last but not least to all the Trustees, who give their time freely to provide Swarthmore with strategic leadership. By working together, putting the best interests of Swarthmore first, we are making a difference in many lives.

I am looking forward to continued improvements in the coming year so we can continue to realise our full potential as an organisation as the adult education provider across Leeds.

Julie Badon Date: 21 February 2023

Page 3

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

The Trustees present their annual report together with the audited financial statements of the Swarthmore Education Centre for the year 1 August 2021 to 31 July 2022. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

Policies and objectives

The objects of the company shall be to promote the education of the residents of Leeds and surrounding areas through the provision of an educational establishment, and in particular but not exclusively:

(a) to provide a learning community for personal development and social activity for those who may have been excluded from mainstream educational opportunities;

(b) to provide opportunities and activities for the benefit of the community based on the recognition of the skills and experience which all people bring.

The vision that shapes our annual activities remains the promotion of education, encouragement to participate through friendly learning whilst ensuring equality of opportunity for all. The charity also has the general aim of contributing to the quality of life of the people of Leeds by expanding their horizons through the provision of exciting, challenging and accessible professional and community courses and events.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance "public benefit: running a charity (PB2)". Swarthmore relies on a combination of public funding and the income from fees and charges to cover its operating costs. Affordability and access to our courses and activities is important to us and is reflected in our pricing policy set out in detail later in this report.

The year 2021/2022 was our post covid ‘Recovery year’. The Centre opened to face to face classes in adult delivery, (LCC/Full Cost, etc) the café reopened on reduced hours of opening, room hire was available for booking, and we had a number of successful exhibitions throughout the year. Study Programme numbers increased, and a blended approach to continuous learning remained in place for our most vulnerable learners. The first term was affected by the Omicron variant, and numbers were still low for recruitment, which was still predominantly online in the first term, with face to face classes increasing over the year. We invested in air purifiers across the Centre to provide a safe environment for students, staff and visitors.

We successfully applied for funding for a small project working with refugees in the Centre. Art at the Heart was funded by the ESF, and we engaged with the Ukrainian community to deliver an arts and ESOL programme, culminating in a well attended celebration event in August 2022. Our commitment to engaging with those furthest away from education and training remains a key factor in our provision.

Page 4

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Objectives and activities (continued)

In April 2022, we won the Educate North Digital Education and Development Award for our Swarthmore Connected project. A proud achievement for our work during the pandemic.

We endeavour to encourage all within our community to participate in our activities and to enjoy our cafe and/or to view our exhibitions. The courses we provide, both accredited and non-accredited, are to be enjoyed by all, from the young adults attending our full-time study programme, our supported adult classes, classes for working and retired adults and those seeking work.

The strategies employed to achieve the charity's aims and objectives are to:

Adult Education programmes

We aim to offer an extensive range of courses in the Arts, Languages, Health and Wellbeing, Maths, English and ICT. These range in level from entry to level 3, accredited and non-accredited, short and year long courses. We work with partners to deliver courses and activities out in the community to reach groups of people that would not normally access the Centre. Our full cost courses were reinstated this year, offering one day workshops and longer courses ranging from 6 hours to 12 weeks in length.

Study Programme

We provide a full time study programme for young adults with learning difficulties who develop skills to improve their independence and support them to progress to further learning, work or volunteering opportunities. The success of the programme was further celebrated by one of our students gaining 3 A levels at grades A AA and securing a place at University. The ESFA contract increased this year and our contractual arrangements continued.

Flexible learning enables students to access education in a way and at a pace that suits their needs. The study programme was inspected by Ofsted in November 2017 and maintained its grade 2, Good.

Volunteers

Swarthmore is fortunate to have a number of volunteers, who this year provided invaluable support to our funded projects, such as Art at the Heart.

Page 5

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Objectives and activities (continued)

Hire of facilities

The Centre has a number of rooms for hire ranging from small meeting rooms to our large hall and art studios. We provide these facilities at discounted rates for charities and community groups so they can hold meetings, events and courses. The Centre is utilised by occasional users as well as long established groups, such as Leeds People's Choir. Although there was an increase in fees for room hire this year, we remain competitive, and we have continued to see growth in this area.

Cafe

The cafe is the social hub of the Centre and is a valuable resource to students, members of the public and staff. It also provides an environment for exhibitions. The café returned this year, albeit with reduced hours.

Information and advice

We continued to provide high quality, impartial and free information and advice to our prospective students throughout the year. We achieved the Matrix standard this year.

Strategic report

Achievements and performance

Main achievements of the company

----- Start of picture text -----
2021/22 2020/21 2019/20
----- End of picture text -----

2021/22 2020/21 2019/20
Students enrolled onto a
course at Swarthmore		 771 555 1,674
Courses delivered 176 171 343
Swarthmore (self-
financing) students
completed and achieved		 77.4% n/a 94.2%
Leeds City Council (non-
accredited) students
completed and achieved		 70.1% 84.6% 89.5%
Leeds City College
(accredited) students
completed and achieved		 - 85.0% 89.1%

Fundraising activities and income generation

The Charity does not use any professional fundraiser or commercial participator to carry out activities on the Charity's behalf. Due to the low level of fundraising the Charity undertakes, the Charity is not a participator of any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising for the activities carried out on behalf of the Charity.

Page 6

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Strategic report (continued)

Financial review

Reserves Policy and Going concern

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The trustees consider three months of expenditure to be the ideal level of reserves. Based on our current operations, monthly expenditure is estimated to be around £150,000, meaning the reserves to be held at 31st July should exceed £450,000. Current free reserves stand at £148,366, backed up by Fixed Assets of £1,157,471 total unrestricted funds of £1,305,837. This indicates a deficit of £301,634 in current reserves. The trustees acknowledge the policy, and continue to address all areas for improvement, including focussing on quality and the learner experience.

Deficit

Swarthmore Education Centre finished with a deficit of £98,923 in the Year to 31st July 2022 compared to a deficit of £13,165 in the previous year.

Risk management

Financial sustainability is the major financial risk for the charity, especially in the context of a recovery year post pandemic. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due and active management of trade debtors and creditors balances to ensure sufficient working capital by the charity. Attention continued to be focussed on implementing systems and procedures to mitigate financial risks where possible.

Principal funding

The principal sources of income to the Centre were:

The support of our partners continues to be essential in maintaining such a varied programme of courses, including Maths, English, a wide variety of arts, health and wellbeing, languages and counselling.

A planned restructure was implemented and following the consultation period in the summer of 2021, a small number of staff had requested voluntary redundancy. New roles were agreed with a renewed focus on improving the student experience and developing external links to provide us with a range of new/additional income opportunities whilst maximising existing relationships.

Swarthmore continues to explore opportunities for additional funding, building upon its relationship with Leeds City Council, and establishing new relationships with funders such as The National Lottery. Pressure to retain existing funding streams while establishing new sources continued to be a challenge throughout the year as the Centre slowly recovered from the impact of the pandemic.

Page 7

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Our Pricing Policy

Our pricing policy reflects our strategy of enabling all within our community, whatever their means, to take part in our courses and activities.

It is the aim of Swarthmore to set prices that are affordable enough to attract students to attend courses, whilst ensuring that enough revenue is generated to make the courses viable. We believe that our courses are exceptional value for money, compared to other organisations, and course fees will continue to be reviewed.

Pay policy for senior staff

The directors consider the board of trustees and the senior management team listed on page 1 as comprising the key management personnel of the charity. All trustees give their time freely and no trustee remuneration was paid. The pay of senior staff is reviewed annually, with the last increase in September 2021.

Structure, governance and management

Constitution

Swarthmore is an incorporated company limited by guarantee and the company's Memorandum and Articles of Association are the legal framework upon which our governance is based. It is a registered charity with the Charity Commission. Anyone over the age of 18 can become a member of Swarthmore once enrolled on a Swarthmore course, and there are currently 510 registered members.

Methods of appointment or election of Trustees

As set out in the Articles of Association the chair of the trustees is nominated by the Trustee Council. Up to 13 members of the Trustee Council are nominated by the members of the charitable company, up to 2 are appointed by the Leeds Society of Friends and up to one third may be co-opted by the Trustee Council to provide specialist skills, subject to an overall maximum of 15 members.

In accordance with the Articles of Association all officers and co-opted members and one third of elected members of the Management Committee retire at the Annual General Meeting and being eligible, offer themselves for re-election.

Organisational structure and decision-making policies

The Trustee Council administers the charity. The Council meets monthly and there are currently three subcommittees covering HR, Health and Safety and Finance who also meet regularly. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of the delegation approved by the Trustees, for operational matters including finance, employment, and the activities of the Centre.

Page 8

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Structure, governance and management (continued)

Policies adopted for the induction and training of Trustees

New trustees are given an induction pack and inducted by the Chair of Trustees and other members of the Council. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with any contractual organisation must be disclosed to the full Trustee Council. In the current year no such related party transactions were reported.

Plans for future periods

Our recovery year has seen a steady growth in adult learning delivery, room hire and events. Our Study Programme continued to deliver learning to our students and embraced the new technology available by offering a blended approach to maintain engagement. The study programme has increased in number to 80 students and remains fully subscribed.

Although no longer accessing any government funding, we have seen an increase in income, compared to previous years. Our plan is to increase the uptake in courses, promoting the facilities at the centre, and accessing additional funds where we are able. Recruitment and retention of staff remains a key factor in the success of the Centre, as plans for further growth are in progress.

A review of costs for our courses is in place, particularly in light of the cost of living crisis and costs of materials etc. Although prices have increased, we remain competitive and offer value for money to our students.

Still impacted by the pandemic, we invested in air purifiers and CO2 monitors, making the centre as safe as possible for our community to return.

Refurbishment of our Hall as an entertainment and events space aims to improve our room hire offer, and we are already seeing an increase in bookings, despite an increase in rates.

We continue to strengthen and develop our links with the community, external partners and our customers.

Page 9

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report including the strategic report 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Sagars Accountants Ltd, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 21 February 2023 and signed on their behalf by:

Ms K J Badon Trustee

Page 10

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWARTHMORE EDUCATION CENTRE

Opinion

We have audited the financial statements of Swarthmore Education Centre (the 'charitable company') for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

Page 11

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWARTHMORE EDUCATION CENTRE (CONTINUED)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 12

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWARTHMORE EDUCATION CENTRE (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019 and the Education and Skills Funding Agency.

We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were Charities Commission Regulations and Health and Safety and safeguarding considerations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with regards to the timing of recognition of income and the override of controls by management.

Our audit procedures to respond to these risks included:

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 auditors' report.

Page 13

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWARTHMORE EDUCATION CENTRE (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Susan Seaman BA FCA CIOT (Senior Statutory Auditor)

For and on behalf of Sagars Accountants Ltd Gresham House 5-7 St Pauls Street Leeds LS1 2JG

21 February 2023

Sagars Accountants Ltd are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 14

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net (expenditure)/income
Transfers between funds
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
6,720
1,499,602
80,333
3,125
1,589,780
74,440
1,626,594
1,701,034
(111,254)
6,064
(105,190)
1,411,027
(105,190)
1,305,837		 Restricted
funds
2022
£
17,090
-
-
-
17,090
-
4,760
4,760
12,330
(6,064)
6,266
9,732
6,266
15,998		 Total
funds
2022
£
23,810
1,499,602
80,333
3,125
1,606,870
74,440
1,631,354
1,705,794
(98,924)
-
(98,924)
1,420,759
(98,924)
1,321,835		 Total
funds
2021
£
202,751
1,282,183
4,342
11,231
1,500,507
46,954
1,466,718
1,513,672
(13,165)
-
(13,165)
1,433,924
(13,165)
1,420,759

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 34 form part of these financial statements.

Page 15

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee) REGISTERED NUMBER: 04527579

BALANCE SHEET AS AT 31 JULY 2022

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 240,301
163,744
404,045
(137,435)		 2022
£
1,157,471
1,157,471
266,610
1,424,081
(102,246)
1,321,835
1,321,835
15,998
1,305,837
1,321,835		 269,902
252,884
522,786
(170,739)		 2021
£
1,193,584
1,193,584
352,047
1,545,631
(124,872)
1,420,759
1,420,759
9,732
1,411,027
1,420,759

The financial statements were approved and authorised for issue by the Trustees on 21 February 2023 and signed on their behalf by:

Ms K J Badon

Trustee

The notes on pages 18 to 34 form part of these financial statements.

Page 16

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21		 2022
£
(29,579)
(36,516)
(36,516)
-
(23,045)
(23,045)
(89,140)
252,884
163,744		 2021
£
(41,750)
(101,456)
(101,456)
150,000
(1,900)
148,100
4,894
247,990
252,884

The notes on pages 18 to 34 form part of these financial statements

Page 17

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Swarthmore Education Centre, 2/7 Woodhouse Square, Leeds, LS3 1AD.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Swarthmore Education Centre meets the definition of a public benefit entity under FRS 102.

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

2.2 Going concern

The directors consider the charitable company to be a going concern and the financial statements have been prepared on that basis. In coming to this conclusion, the directors have considered the residual impact of Covid-19, and the increasing pressures of the Cost of Living crisis, presenting significant increases in energy costs and desire to meet future wage demands. Although there is a financial impact to the organisation, management have taken steps to mitigate this by controlling costs or passing these on where it is unavoidable. A new 3-year business strategy currently under development will further strengthen Swarthmore’s financial position for the period ahead.

2.3 Judgements and key sources of estimation uncertainty

The preparation of the 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 year. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

Page 18

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2. Accounting policies (continued)

2.4 Income

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

2.5 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Page 19

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2. Accounting policies (continued)

2.6 Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

2.7 Tangible fixed assets and depreciation

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

In accordance with SORP 2000 the Management Committee capitalised freehold land and buildings at 2-5 Woodhouse Square, Leeds gifted on 1 April 2003 at their estimated value to the centre of £1,100,000. Subsequently, there has been £267,482 of improvements to the property.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives .

Depreciation is provided on the following bases:

Page 20

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2. Accounting policies (continued)

2.8 Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

2.9 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straightline basis over the lease term.

2.10 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

2.11 Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

3. Limited by guarantee

The company is limited by guarantee to the value of £1 per member on winding up.

Page 21

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

4. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
5,251
Grants
-
Government Coronavirus Job Retention Scheme grant
1,469
6,720
Unrestricted
funds
2021
£
Donations
3,741
Grants
-
Government Coronavirus Job Retention Scheme grant
126,124
129,865		 Restricted
funds
2022
£
-
17,090
-
17,090
Restricted
funds
2021
£
13,800
59,086
-
72,886		 Total
funds
2022
£
5,251
17,090
1,469
23,810
Total
funds
2021
£
17,541
59,086
126,124
202,751

5. Income from charitable activities

Unrestricted
funds
2022
£
Leeds City Council Adult Learning
254,629
Leeds City Council Additional Learning Support
189,171
Other grants
11,764
Student fees
126,907
Membership fees
6,938
Sale of education materials
3,743
Tutoring services provided to community
23,477
Education Funding Agency
882,973
1,499,602		 Total
funds
2022
£
254,629
189,171
11,764
126,907
6,938
3,743
23,477
882,973
1,499,602

Page 22

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

5. Income from charitable activities (continued)

Leeds City Council Adult Learning
Leeds City Council Additional learning support
Other Grants
Student fees
Membership fees
Sale of educational materials
Contract income
Education Funding Agency		 Unrestricted
funds
2021
£
277,292
149,910
27,956
226
6,153
148
3,096
817,402
1,282,183		 Total
funds
2021
£
277,292
149,910
27,956
226
6,153
148
3,096
817,402
1,282,183

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2022
£
Cafe income
29,375
Rental income
50,958
80,333
Unrestricted
funds
2021
£
Cafe income
4,588
Rental income
(246)
4,342		 Total
funds
2022
£
29,375
50,958
80,333
Total
funds
2021
£
4,588
(246)
4,342

Page 23

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

7. Other incoming resources

Miscellaneous income
Miscellaneous income		 Unrestricted
funds
2022
£
3,125
Unrestricted
funds
2021
£
11,231		 Total
funds
2022
£
3,125
Total
funds
2021
£
11,231

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Courses
1,203,108
Governance costs
69,670
Support costs
353,816
1,626,594		 Restricted
funds
2022
£
4,294
-
466
4,760		 Total
funds
2022
£
1,207,402
69,670
354,282
1,631,354

Page 24

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

8. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Courses
Creche
Governance costs
Support costs		 Unrestricted
funds
2021
£
1,041,604
18,039
55,711
306,070
1,421,424		 Restricted
funds
2021
£
39,026
-
-
6,268
45,294		 Total
funds
2021
£
1,080,630
18,039
55,711
312,338
1,466,718

9. Analysis of expenditure by activities

Courses
Governance costs
Support costs
Courses
Creche
Governance costs
Support costs		 Activities
undertaken
directly
2022
£
1,207,402
-
-
1,207,402
Activities
undertaken
directly
2021
£
1,080,630
18,039
-
-
1,098,669		 Support
costs
2022
£
-
69,669
354,282
423,951
Support
costs
2021
£
-
-
55,711
312,338
368,049		 Total
funds
2022
£
1,207,402
69,669
354,282
1,631,354
Total
funds
2021
£
1,080,630
18,039
55,711
312,338
1,466,718

Page 25

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Premises
Communications and IT
General office
Legal and professional fees
Governance costs
Staff costs
Depreciation
Premises
Communication and IT
General office
Legal and professional fees
Governance costs		 Courses
2022
£
-
-
-
-
-
-
69,669
69,669
Courses
2021
£
-
-
-
-
-
-
55,711
55,711		 Governance
2022
£
143,440
72,629
112,783
11,068
12,550
1,812
-
354,282
Governance
2021
£
133,917
62,750
81,198
10,320
21,701
2,452
-
312,338		 Total
funds
2022
£
143,440
72,629
112,783
11,068
12,550
1,812
69,669
423,951
Total
funds
2021
£
133,917
62,750
81,198
10,320
21,701
2,452
55,711
368,049

Page 26

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

10. Auditors' remuneration

2022 2021
£ £
Fees payable to the company's auditor for the audit of the company's
annual accounts 9,500 6,400

11. Staff costs

Wages and salaries
Social security costs
Other pension costs		 2022
£
1,172,360
91,348
28,557
1,292,265		 2021
£
1,085,723
77,241
29,148
1,192,112

Included within staff costs are statutory redundancy, termination and settlement payments made during the year totalling £23,936 (2021 - £18,938).

The average head count of employees during the year was 77 (2021: 74).

The average number of full-time equivalent employees during the year is analysed as follow:

2022 2021
No. No.
Number of staff 45 45

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £214,992 (2021: £247,261).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 July 2022, Trustee travel expenses totalling £21 have been incurred (2021 - £ NIL) .

Page 27

(A company limited by guarantee)

SWARTHMORE EDUCATION CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

13. Tangible fixed assets

Cost or valuation
At 1 August 2021
Additions
At 31 July 2022
Depreciation
At 1 August 2021
Charge for the year
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Freehold
property
£
1,367,482
-
1,367,482
451,659
27,350
479,009
888,473
915,823		 Long-term
leasehold
property
£
188,136
-
188,136
36,143
5,124
41,267
146,869
151,993		 Fixtures and
fittings
£
603,594
36,516
640,110
477,826
40,155
517,981
122,129
125,768
2022
£
18,971
2,571
218,759
240,301		 Total
£
2,159,212
36,516
2,195,728
965,628
72,629
1,038,257
1,157,471
1,193,584
2021
£
2,180
2,117
265,605
269,902

14. Debtors

Page 28

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
22,808
38,204
21,126
3,562
51,735
137,435		 2021
£
23,228
71,271
14,319
8,261
53,660
170,739

The bank loan included in creditors falling due in less than one year is secured by the company. The security is by a fixed and floating charge over all assets and undertakings of the company.

Deferred income at 1 August 2021
Resources deferred during the year
Amounts released from previous periods		 2022
£
19,797
24,109
(19,797)
24,109		 2021
£
4,496
19,797
(4,496
19,797

Deferred income relates to course fees, membership fees and room bookings paid in advance.

16. Creditors: Amounts falling due after more than one year

2022 2021
£ £
Bank loans 102,246 124,872

Included within creditors: amounts falling due after more than one year is an amount of £nil (2021: £25,520) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

The bank loan included in creditors falling due in after more than one year is secured by the company. The security is by a fixed and floating charge over all assets and undertakings of the company.

Page 29

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

17. Statement of funds

Statement of funds - current year

Balance at 1 Balance at 1 Transfers Transfers Balance at
August 2021 Income Expenditure in/out 31 July 2022
£ £ £ £ £
Unrestricted funds
Unrestricted Income fund 343,212 1,589,780 (1,668,560) 6,064 270,496
Unrestricted Property fund 1,067,815 - (32,474) - 1,035,341
1,411,027 1,589,780 (1,701,034) 6,064 1,305,837
The unrestricted property fund represents monies held in freehold and leasehold property at the year end
Balance at 1 Transfers Balance at
August 2021 Income Expenditure in/out 31 July 2022
£ £ £ £ £
Restricted funds
UK Online 9,268 - - - 9,268
National Lottery grant 464 - (464) - -
Adidas project - 1,606 (220) - 1,386
Community grant - Art at the
Heart - 15,484 (4,076) (6,064) 5,344
9,732 17,090 (4,760) (6,064) 15,998
Balance at 1 Transfers Balance at
August 2021 Income Expenditure in/out 31 July 2022
£ £ £ £ £
Total of funds 1,420,759 1,606,870 (1,705,794) - 1,321,835

The unrestricted property fund represents monies held in freehold and leasehold property at the year end.

UK Online is a grant from the Tinder Foundation to support specific programmes of digital inclusion activity.

National Lottery funding relates to grants received to help with the impact of the Covid-19 pandemic on the ability to provide learning to students.

Adidas Project relates to promoting inclusion of females in sport.

Community Grant - Art at the heart relates to community art based project for refugees.

The transfer of £6,064 between the restricted and unrestricted fund relates to the purchase of Chromebooks in the year for the Community Grant - Art for the heart.

Page 30

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Unrestricted Income fund
Unrestricted Property fund
Restricted funds
UK Online
Leeds City Council Adult
Learning funding
Supply of Chromebooks from
DfE
National Lottery grant
Total of funds		 Balance at
1 August
2020
£
352,469
1,068,165
1,420,634
Balance at
1 August
2020
£
9,268
4,022
-
-
13,290
Balance at
1 August
2020
£
1,433,924		 Income
£
1,427,621
-
1,427,621
Income
£
-
-
13,800
59,086
72,886
Income
£
1,500,507		 Expenditure
£
(1,435,843)
(32,535)
(1,468,378)
Expenditure
£
-
(4,022)
-
(41,272)
(45,294)
Expenditure
£
(1,513,672)		 Transfers
in/out
£
(1,035)
32,185
31,150
Transfers
in/out
£
-
-
(13,800)
(17,350)
(31,150)
Transfers
in/out
£
-		 Balance at
31 July 2021
£
343,212
1,067,815
1,411,027
Balance at
31 July 2021
£
9,268
-
-
464
9,732
Balance at
31 July 2021
£
1,420,759

Page 31

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

18. Summary of funds

Summary of funds - current year

Balance at 1
August 2021
£
General funds
1,411,027
Restricted funds
9,732
1,420,759
Summary of funds - prior year
Balance at
1 August
2020
£
General funds
1,420,634
Restricted funds
13,290
1,433,924		 Income
£
1,589,780
17,090
1,606,870
Income
£
1,427,621
72,886
1,500,507		 Expenditure
£
(1,701,034)
(4,760)
(1,705,794)
Expenditure
£
(1,468,378)
(45,294)
(1,513,672)		 Transfers
in/out
£
Balance at
31 July 2022
£
6,064
1,305,837
(6,064)
15,998
-
1,321,835
Transfers
in/out
£
Balance at
31 July 2021
£
31,150
1,411,027
(31,150)
9,732
-
1,420,759		 Transfers
in/out
£
Balance at
31 July 2022
£
6,064
1,305,837
(6,064)
15,998
-
1,321,835
Transfers
in/out
£
Balance at
31 July 2021
£
31,150
1,411,027
(31,150)
9,732
-
1,420,759
Balance at
31 July 2021
£
1,411,027
9,732
1,420,759
Summary of funds - prior year
General funds
Restricted funds

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,157,471
Current assets
388,047
Creditors due within one year
(137,435)
Creditors due in more than one year
(102,246)
Total
1,305,837		 Restricted
funds
2022
£
-
15,998
-
-
15,998		 Total
funds
2022
£
1,157,471
404,045
(137,435)
(102,246)
1,321,835

Page 32

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted
funds
2021
Restricted
funds
2021
£
£
Tangible fixed assets
1,193,584
-
Current assets
513,054
9,732
Creditors due within one year
(170,739)
-
Creditors due in more than one year
(124,872)
-
Total
1,411,027
9,732
20.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net expenditure for the year (as per Statement of Financial Activities)
(98,924)
Adjustments for:
Depreciation charges
72,629
Decrease/(increase) in debtors
29,601
Increase/(decrease) in creditors
(32,885)
Net cash used in operating activities
(29,579)
21.
Analysis of cash and cash equivalents
2022
£
Cash in hand
163,744
Total cash and cash equivalents
163,744		 Total
funds
2021
£
1,193,584
522,786
(170,739)
(124,872)
1,420,759
2021
£
(13,165)
62,750
(110,839)
19,504
(41,750)
2021
£
252,884
252,884

Page 33

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 August
2021
£
252,884
(23,228)
(124,872)
104,784		 Cash flows
£
(89,140)
420
22,626
(66,094)		 At 31 July
2022
£
163,744
(22,808)
(102,246)
38,690

23. Operating lease commitments

At 31 July 2022 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
5,695
-
5,695		 2021
£
-
16,682
16,682

Page 34

Company name: Swarthmore Education Centre Registered office: 2/7 Woodhouse Square, Leeds LS3 1AD Company number: 4527579 (registered in England and Wales)

Charitable Company Trustees: N Zaman, K Badon, S Sinha, I Greenwood, Dr E Watkins, Ms C L Walker, S L Taylor and L R Huxley.

21 February 2023

Sagars Accountants Ltd Chartered Accountants Gresham House 5-7 St Pauls Street Leeds LS1 2JG

Dear Sirs

Swarthmore Education Centre Accounts for the year ended 31 July 2022

We provide this letter in connection with your audit of the financial statements of Swarthmore Education Centre for the year ended 31 July 2022 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the financial position of the charity as at 31 July 2022 and of the results of its operations for the year then ended in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”).

We confirm that the following representations are made on the basis of sufficient enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation and that, to the best of our knowledge and belief, we can properly make each of these representations to you.

  1. We have fulfilled our responsibility for the fair presentation of the financial statements in accordance with UK GAAP.

  2. We acknowledge as trustees our responsibility for making accurate representations to you.

  3. We acknowledge our responsibility for the design and implementation of internal control to prevent and detect fraud and errors.

  4. We confirm that we have received confirmation from each director who was a director at the time of the approval of the financial statements that:

  5. a. they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that you are aware of that information and

  6. b. that so far as they are aware there is no relevant audit information of which you are unaware.

  7. We have provided you with all accounting records and relevant information, and granted you unrestricted access to persons within the entity, for the purposes of your audit.

  8. All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records or other information provided to you.

  9. In respect of accounting estimates and judgements, we confirm our belief that the significant assumptions used are reasonable.

Company name: Swarthmore Education Centre Registered office: 2/7 Woodhouse Square, Leeds LS3 1AD Company number: 4527579 (registered in England and Wales)

Charitable Company Trustees: N Zaman, K Badon, S Sinha, I Greenwood, Dr E Watkins, Ms C L Walker, S L Taylor and L R Huxley.

  1. We have considered the adjustments in Appendix 1, proposed by you. In our judgement, these adjustments are appropriate given the information available to us. We further confirm that we have now made these adjustments to the financial statements.

  2. We do not wish to adjust the financial statements for the actual errors set out in Appendix 2 as we believe that the errors are immaterial, both individually and in aggregate, to the financial statements as a whole.

  3. We are not aware of any actual or possible litigation or claims against the company whose effects should be considered when preparing the financial statements

  4. All grants, donations and other incoming resources, the receipt of which is subject to specific terms and conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such incoming resources.

  5. We can confirm there has been no clawback of income in the year.

  6. We are not aware of any breaches of our charitable trusts and have advised you of the existence of all endowments and funds maintained by us.

  7. There have been no events since the balance sheet date which require disclosure or which would materially affect the amounts in the financial statements. Should any material events occur which may necessitate revision of the figures in the financial statements, or inclusion in a note thereto, we will advise you accordingly.

  8. We have assessed that there is no significant risk that the financial statements are materially misstated as a result of fraud.

  9. We are not aware of any fraud or suspected fraud affecting the charity involving those charged with governance, management or other employees who have a significant role in internal control or who could have a material effect on the financial statements.

  10. We are not aware of any allegations by employees, former employees, regulators or others of fraud, or suspected fraud, which would have an impact on the charity’s financial statements.

  11. We are not aware of any known or suspected instances of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its business.

  12. We confirm that complete information has been provided to you regarding the identification of related parties and that we are not aware of any significant transactions with related parties.

  13. We confirm we have appropriately accounted for and disclosed related party relationships and transactions in accordance with applicable accounting standards and with the recommendations of the applicable charity SORP.

  14. We confirm that, having considered our expectations and intentions for the next twelve months and the availability of working capital, the Charitable company is a going concern. We are unaware of any events, conditions, or related business risks beyond the period of assessment that may cast significant doubt on the Charitable company’s ability to continue as a going concern.

Company name: Swarthmore Education Centre Registered office: 2/7 Woodhouse Square, Leeds LS3 1AD Company number: 4527579 (registered in England and Wales)

Charitable Company Trustees: N Zaman, K Badon, S Sinha, I Greenwood, Dr E Watkins, Ms C L Walker, S L Taylor and L R Huxley.

  1. We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements.

  2. We confirm that the restricted funds as disclosed in note 22 to the financial statements are complete and that no restrictions have been placed on any other income streams received during the year.

Yours faithfully,

………………….

Trustee

Signed on behalf of Swarthmore Education Centre

21-Feb-2023 On ………………….

Appendix 1 - Summary of adjustments made to the accounts during the audit

ppendix 1 - Summary of adjustments made to the accounts during the audit
Profit/(Loss) per client accounts
Client late adjustments
Air purifiers not capitalised
Growth Company grant income not posted
Reallocation of restricted income from unrestricted income (£17,090)
Reallocation of restricted expenditure from unrestricted expenditure (£10,144)
Profit/(Loss) per final audited accounts		 £
(111,020)
(1,442)
7,634
5,906
-
-
(98,922)

Appendix 2 - Summary of uncorrected misstatements in the accounts

NB Some of the “errors” shown below are test differences only. This means that they are not actual errors but are judgements made during audit tests of the maximum potential errors within populations tested. These judgements are reached to avoid us doing any further testing in those areas and there is no suggestion that adjustments to the financial statements should be made for these differences.

Nature of Error
Debit balances on trade creditors ledger
due to overpayments (£2,639)
Under provision of employee claim
Post year end invoices not accrued for
(extrapolated error)
Total effect on profit		 Monetary
Amount
£
Areas
Misstated
Reasons for not correcting
-
Debtors and
creditors
Immaterial
(2,500)
Expenditure and
creditors
Immaterial
(9,656)
Expenditure and
creditors
Immaterial
(12,156)

The above list does not include those misstatements regarded as trivial.