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← Swarthmore Education Centre

2025-07-31-accounts

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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 2025

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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 - 13
Independent auditors' report on the financial statements 14 - 17
Statement of financial activities 18
Balance sheet 19
Statement of cash flows 20
Notes to the financial statements 21 - 37

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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 2025

Trustees Ms K J Badon, Chair
Mr N H Zaman
Dr E J Watkins
Mr I Greenwood (resigned 11 April 2025)
Mrs S J Taylor
Miss E J Exeter
Ms C A Reed (resigned 27 January 2025)
Cllr E F Thomson
Ms C Lord (appointed 21 February 2025)
Dr M Hollow (appointed 20 February 2025)
Mr M D G Blundell (appointed 20 February 2025)
Ms F Hodgson (appointed 20 February 2025, resigned 19 September 2025)
Company registered
number
04527579
Charity registered
number
1094451
Registered office
2/7 Woodhouse Square
Leeds
LS3 1AD
Company secretary
C Baillie
Senior management
team
C Baillie
P Johnson
J Macleod
M Ciesluk
Independent auditors
AAB Audit & Accountancy Limited
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG

Page 1

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

CHAIR'S STATEMENT FOR THE YEAR ENDED 31 JULY 2025

As I complete my eighth year as Chair of Trustees at Swarthmore, I reflect again on a very challenging year but one that as an organisation we have continued to manage well. We have looked forward positively, reaching out more into the deprived communities across the city and addressed all additional requirements imposed mainly by a range of external bodies at both a national and local level. Our turnover has remained relatively stable increasing very slightly from £1.94m in 23/24 to £1.96m in 24/25. All great testimony to our resilience as an organisation, our stability through difficult times and the continuous improvements we put in place in our financial, IT and HR systems. These systems have helped us to manage things better through changing and complex times. Despite facing several rising costs, including the NI increases, I am very pleased to be able to report that we closed this financial year with a small surplus of just over £20,000, thus exceeding our projections. Our reserves remain slightly lower than in an ideal situation, something we continue to review as trustees, but we are pleased to have retained our current reserve levels.

At our 2024 AGM we promised to continue to pursue our strategy, launched the year before, including continuing to value and support our workforce. Without our staff we are unable to deliver against our objectives, and we value highly their commitment and the dedication shown by all of our staff. This year saw the launch of our staff consultative forum. This has enabled feedback into both the organisation’s HR considerations and our strategy through staff representatives from each area with our Director and Trustee representatives. This is in addition to our termly staff meetings and the staff development and training days.

The stated objectives of our charity are to promote the education of the residents of Leeds and surrounding areas through provision of an educational establishment, and particularly, but not exclusively;

  1. to provide a learning community for personal development and social activity for those who may have been excluded from mainstream opportunities; 2. to provide opportunities and activities for the benefit of the community based on the recognition of the skills and experience which all people bring.

We have continued to show our genuine commitment to these objectives with the second year of our "Creative Communities" project, funded by the National Lottery. This culminated in a very special event at the Leeds City Museum with representatives from Hunslet, Belle-Isle, Middleton, and Holbeck all in attendance, sharing their work. It was a very moving event and very clear that the project had a deep and lasting impact on those communities, so something we would hope to replicate wider across the city. For the third year we had "warm space" funding, which provided vital support during winter to vulnerable groups of people who are struggling with heating costs. We also maintained and grew our Hardship Fund, which offers crucial support for students unable to afford to go to courses or for course materials.

We met our obligations under the Government's Coronavirus Business Interruption Loan Scheme (CBILS) that we received during COVID, maintaining our repayments despite the high interest rate. We are on track to pay this off as required by June 2027.

This year we also saw the launch of “Café No.5” which was a new concept looking to franchise our cafe to a new entrepreneurial team. They have been able to deliver high quality lunches to our study programme students, improved the environment with fresh plants and offering additional services such barbecues in the warm weather, alongside good quality food for all. This has seen an increase in footfall to the cafe and brought in people from the NHS, Candlelighters and other local businesses. It has been a good improvement to this service, whilst also reducing the challenges to our own staff and giving them more time to focus on our key role of delivering education.

So, in conclusion this has been a stable and successful year, when we have delivered fully against our objectives, reached out wider into the community into deprived areas, and still ended the year in a financially positive position, despite all the challenges. This coming year will certainly hold further challenges, and we are gearing up to draw more on corporate support to enable us to continue to improve our educational services and deliver fully against our stated objectives.

Page 2

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

CHAIR'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Many thanks to everyone who has supported us, including the Inner Wheel Leeds Club and Schofield Money for their interest and monies to Swarthmore Adult Education Centre.

Ms K J Badon Date: 20 January 2026

Page 3

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2025

The Trustees present their annual report together with the audited financial statements of the Swarthmore Education Centre for the year 1 August 2024 to 31 July 2025. 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).

Charitable Purpose

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.

Public Benefit

The Board of Trustees has carefully considered the Charity Commission's guidance on public benefit, particularly regarding the advancement of education, in setting and reviewing the Centre’s strategic objectives. This guidance outlines the necessity for all registered charities to explicitly demonstrate how their aims and activities provide public benefit.

Swarthmore Education Centre’s mission is deeply rooted in delivering tangible public benefits through education and community engagement. These benefits are achieved through a variety of initiatives and services that embody our commitment to inclusivity, accessibility, and lifelong learning. Key examples include:

The Centre’s effectiveness in delivering these public benefits is evidenced throughout the Report of the Board of Trustees. These achievements highlight the Centre’s unwavering dedication to creating a positive impact on individuals and communities across Leeds and beyond.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Main Activities

Swarthmore’s focus remained in line with the business strategy, aimed at increasing the range of full cost courses and the utilisation of affordable room hire. We continued to increase our course offer and further developed our workshop offer, reaching a new audience. We saw a decrease in room hire income partly due to losing two key customers in the period.

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 ESFA contract increased this year, enabling us to support 82 students within the programme. Flexible learning enables students to access education in a way and at a pace that suits their needs.

We offer an extensive range of courses in the Arts, Crafts, Health and Wellbeing, Maths, English and ESOL. We offer a range of supported courses for those students requiring additional support for their learning. 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. This year we focussed on raising the profile and income for Swarthmore through Corporate Funding and activities.

Our centre has a diverse range of rental spaces, including specialist art facilities, small, medium and large rooms, and a Hall. This allows us to accommodate a wide range of needs and requirements in the community. We offer discounted rates, specifically tailored for charities and local groups seeking venues for meetings, events, and educational courses. Our facilities continue to be embraced by occasional users and established groups.

In July 2025 we completed our Creative Communities project in South Leeds. An evaluation was undertaken at the end of the project, highlighting the positive outcomes across two years.

In January 2025 we were allocated £19,872 from the National Lottery to provide an inclusive Arts Project (Arts United) for adults with additional learning needs.

During the winter months Swarthmore once again accessed a small amount of funding to enable us to become a designated warm space for the city. This provided funds for users to access a free hot drink and soup in a warm and friendly environment.

Strategies Employed

Business Strategy

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

The Finance Committee explored opportunities for the organisation to ensure future success. It was identified that the greatest opportunities to generate surplus funds would be from growth of Income rather than cost cutting exercises. The main areas were highlighted as having the greatest impact:

Page 5

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

In addition to the new sources of Income, it is necessary to build upon Swarthmore’s reputation and to raise awareness of the centre, focussing on the range of courses, the talent of Tutors, and the facilities and spaces available for multiple uses. More resource has been added to support marketing, events, and social media engagement.

Grant Making/Funding

Hardship Fund

The Hardship Fund continues to play a vital role in removing financial barriers to learning for our students. It provides targeted support for those who may otherwise be unable to access education due to personal or economic circumstances. Funding is allocated to cover course and workshop fees—either in full or in part—and to assist with essential costs such as bus fares and lunches.

Entirely sustained through donations, the fund is used solely to support learners experiencing financial hardship, ensuring that opportunity and participation remain at the heart of Swarthmore’s mission.

This year, staff member Amy Smith undertook an impressive challenge to raise money specifically for the Hardship Fund. Amy paddle-boarded the length of the Llangollen Canal—travelling from England to Wales and back, a distance of around 90 miles—and raised an outstanding £864.43. Contributions like these allow us to respond flexibly to individual circumstances and ensure that learners who need support can continue to access education at Swarthmore.

Corporate Funding

In response to changes in external funding eligibility, we launched a new Corporate Funding initiative to secure essential financial support for adults with additional learning needs. This initiative aims to ensure that these learners can continue accessing high-quality classes at the Centre, despite reductions in traditional funding streams. It represents an important step in diversifying our income and strengthening the long-term sustainability of our provision.

Volunteers

Swarthmore is fortunate to be supported by a dedicated group of volunteers who make an invaluable contribution to the life of the Centre. This year, volunteers played a central role in our funded projects, including Creative Communities and Arts United, where they supported participants during sessions, assisted with group activities, and helped create a welcoming and inclusive environment. Their presence increased the level of individual support available and enabled staff to deliver more responsive, engaging sessions for learners with a wide range of needs.

We are also grateful for the contribution of our Pottery Department volunteer, who has provided support throughout the year. His input has strengthened the quality of the department and enriched the overall experience for users of the pottery studio.

The generosity, time, and commitment of our volunteers strengthen every aspect of our community. Their contribution enables us to extend our reach, deepen our impact, and maintain Swarthmore as a warm, supportive, and inclusive place to learn.

The Trustee Council is also made up entirely of volunteers who bring their skills and knowledge to support the Governance of the Centre.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Achievements and Performance

Review of Achievements

Study Programme

Our Study Programme expanded this year, enabling 82 students with additional needs to access tailored learning and support. Students benefited from individual learning plans, meaningful work experience and a broad range of enrichment activities designed to build confidence, independence and social skills.

Nineteen students completed the programme this year, with 13 progressing to positive destinations including volunteering, supported internships and further learning. We are proud of two students who completed A-level Sociology, achieving grades A and B—an exceptional accomplishment that reflects both their hard work and the high-quality support provided by the team.

The continued growth and strong outcomes of the Study Programme demonstrate Swarthmore’s commitment to inclusive education and to supporting young people to achieve their full potential.

Adult Learning

Our Adult Learning provision is delivered through a combination of Leeds City Council Tailored Learning contracts, Leeds City College Adult Skills Budget provision, and Swarthmore’s own full-cost courses and workshops. This blended offer enables us to reach a wide and diverse community of learners with varying needs, interests and learning preferences.

Provision spans supported learning, English, Maths, ESOL, arts and crafts, wellbeing courses and a growing programme of short workshops. The expansion of our workshop offer this year has created new pathways for learners to engage with Swarthmore—providing flexible, accessible opportunities for adults to develop skills, build confidence and connect with others.

Room Hire

Our room hire provision offers affordable, accessible facilities for the wider community, serving corporate organisations, charities and individuals. Although growth was lower than anticipated this year—due to the unexpected loss of two key hirers late in the year—we continue to provide a valued resource for external groups. We are reviewing our pricing structure for the coming year to ensure our offer remains both competitive and accessible.

Projects

Lottery funding has played a vital role in widening our reach and strengthening our community impact. This year we delivered two significant projects—Creative Communities (2023–2025) and the Arts United Project—which together engaged local residents, supported adults with additional needs and created meaningful opportunities for creativity, wellbeing and social connection.

Hardship Fund

This fund was established in 2025 to support individuals experiencing financial hardship. It is funded by a designation of 10% of the year's unrestricted surplus. The Trustees review the fund level annually to ensure that the allocation is appropriate and that the Charity maintains sufficient free reserves for its core operations.

Impact on Beneficiaries

Creative Communities

Creative Communities was a two-year, National Lottery-funded project delivered in South Leeds, designed to engage residents furthest from education and training in areas affected by poverty and social exclusion.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

The project exceeded its reach targets. Against a target of 200 participants, 300 people applied, 182 attended at least one workshop, and a further 125 engaged through community residencies. We worked with 22 volunteers, 10 of whom were former participants; one subsequently gained paid employment at Swarthmore as a Learning Support Assistant.

Volunteers consistently reported increased confidence, reduced social anxiety, and a renewed sense of purpose. Their lived experience of mental health challenges added genuine value to the peer support offered within workshops, enhancing wellbeing for participants and strengthening community cohesion.

Creative Communities built lasting relationships with local organisations and ensured public visibility of participants’ work. Artwork was displayed in 11 community venues, including mosaics, rag-rugging pieces, photo montages, masks, the Belle Isle Tapestry and the Celebrating Hunslet artwork. The 12-week exhibition at Leeds City Museum further boosted participants’ self-esteem and encouraged engagement with a major cultural and educational space.

The project has left a strong legacy. Participants formed their own independent sewing group in Belle Isle; many have progressed into new activities, volunteering or employment; and volunteers have moved on to further volunteering, college or work. Swarthmore’s profile has grown across South Leeds, with ongoing conversations about future collaborations.

Overall, Creative Communities demonstrated significant impact on wellbeing, confidence, cultural engagement and community connection, with sustained benefits beyond the life of the project.

Arts United

Arts United was a six-month, National Lottery-funded creative programme for adults with additional learning needs, designed to promote diversity, inclusion and personal expression. Running from January to July, the project offered two weekly sessions for 20 participants, supported by four volunteers.

The project delivered significant benefits in confidence, wellbeing and creative skill development. Participants engaged in a wide range of artistic mediums, with many reporting that the sessions provided a vital sense of calm, focus and personal achievement. Seven cultural visits—to venues including Leeds Art Gallery, the Henry Moore Institute, the Stanley & Audrey Burton Gallery and Leeds City Museum—broadened access to local cultural resources and provided inspiration for their work.

Strong relationships developed between participants, staff and volunteers, creating a supportive and inclusive environment that many described as transformative. The project culminated in a celebration event and an exhibition featuring over 130 artworks, showcasing the creativity and progress of everyone involved.

Arts United reinforced Swarthmore’s role as a welcoming and inclusive centre for adults with additional needs, with positive feedback highlighting the impact of both the programme and the supportive culture of the organisation.

Key Performance Indicators (KPIs)

Main achievements of the Charity

In March we had a successful monitoring visit from Ofsted, for our Study Programme provision. This followed the initial inspection in November 2023. Significant progress was made in three of the areas, and reasonable progress was made in the other two areas. The published report is available via the Ofsted website. The outcome of this report reflected the hard work and commitment of our staff, and following this visit a full inspection will likely take place in 2026.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Study programme:

==> picture [480 x 106] intentionally omitted <==

----- Start of picture text -----
Passed Accredited Quals 2024/25 2023/24
AS Levels 2 3
GCSE 0 6
Award Health and Care 0 2
Functional Skills L2 6 1
Functional Skills Entry and Level 1 26 16
Leavers 19 1
----- End of picture text -----

Our Study Programme students work towards a range of accredited units, which can build to a full qualification where appropriate. Functional Skills English is delivered over an extended period, and this year 22 students successfully completed all or part of their qualification. This reflects their hard work and the steady progress made across the year.

Adult Learning

2024/25 2023/24
Number of Unique Students enrolled onto a
course at Swarthmore		 574 646
Number of Enrolments onto Courses at
Swarthmore		 1,449 1,453
Number of Courses delivered 175 182
Number of students on Workshops 324 219
Percentage of Swarthmore (self-financing)
students completed and achieved		 87.99% 91.60%
Percentage of Leeds City Council (non-
accredited) students completed and achieved		 82.40% 83.50%
Percentage of Leeds City College (accredited)
students completed and achieved		 52.9% 77.10%

Our Adult Learning provision includes both subcontracted delivery and our own full-cost courses and workshops. Workshop attendance has continued to grow steadily throughout the year, reflecting increased demand for flexible and creative short-course learning.

Leeds City Council provision saw a small decrease of 1% in completion and achievement, while Leeds City College provision declined to 52.9%. This was largely due to the introduction of qualification-based routes for some supported learning students, a number of whom were not yet ready to pass external exams. In addition, some learners undertaking the Digital Skills Functional Skills qualification found the requirements challenging. These outcomes will inform how we shape and adapt provision moving forward to ensure it remains accessible and appropriately matched to learner needs.

In April 2025 we were once again shortlisted for Educate North Community Engagement Award – HE/FE Sector Award, a testament to the hard work and impact of the centre.

In September 2024, Café No. 5 launched fully, providing a new menu for our students and community as well as the essential provision of free school meals to eligible students in the study programme.

We continued to promote our exhibition space in the Café, successfully attracting a new and varied selection of contributors.

Financial Position

Swarthmore Education Centre finished with a surplus of £20,170 in the Year to 31st July 2025 compared to a surplus of £8,098 in the previous year.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

In 2023/24 Staff costs increased by almost £100K, due to wage reviews and changes in staffing levels.

In April 2025, the National Living Wage increased by over 6.7% at £0.77 per hour. At the same time, the threshold at which employers pay National Insurance Contributions reduced from £9,100 to £5,000, and the rate of Employers National Insurance Contributions increased from 13.8% to 15%. The combined impact of these increases led to additional staff costs of approximately £75,000 annually.

We are already aware that the National Living Wage will increase by a further 4.1% or £0.50 per hour from April 2026, placing further pressure on resources, meaning that we are unable to keep pace with applying the same level of pay increases across all roles.

Direct Costs are increasing at a faster rate than Revenues increase, but careful management of overheads, changes in outsourced service providers and reductions in utility bills help to offset the changes leading to a small increase in the Net surplus.

Risk management

Financial sustainability is the major financial risk for the charity, especially in the context of a Cost of Living Crisis. 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.

Another principal risk relates to keeping up to date with the rapid progress in technology and ensuring resilience to all “Cyber” related risks. During the year, we completed a migration of files to the cloud, upgraded our server and eliminated bottlenecks in our local network. Swarthmore maintains its Cyber Essentials PLUS accreditation (a government backed scheme setting high standards for security) and is undergoing a comprehensive Technology Review to ensure it is well placed for future challenges.

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, and health & wellbeing.

Swarthmore continues to explore opportunities for additional funding, building upon its relationship with Leeds City Council, and continuing relationships with funders such as The National Lottery. Over £200K of funding was granted by The National Lottery Community Fund in July 2023 to run a 2-year project. An additional £19,872 was allocated by the National Lottery to fund the Arts United Project which ran from January to July 2025. Pressure to retain existing funding streams while establishing new sources continued to be a challenge throughout the year.

Reserves Policy

The Trustees acknowledge the critical role reserves play in ensuring the financial stability and sustainability of the organisation. Our Reserves Policy establishes that the Centre will maintain unrestricted free reserves equivalent to a minimum of 1 to 3 months of operating expenditure. This prudent approach ensures the Centre can continue to support its core activities and respond effectively to unforeseen financial challenges.

Based on our current operations, monthly expenditure is estimated to be around £165,000, meaning the reserves to be held at 31st July should be within the range of £165,000 to £495,000. Current free reserves stand

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

at £220,350, backed up by Fixed Assets of £1,050,162 out of total unrestricted funds of £1,270,513. The trustees acknowledge the policy, and continue to address all areas for improvement, including focussing on quality and the learner experience.

The implementation of the Business Strategy to develop revenue streams will continue, and is expected to generate an increase in reserves, while also addressing ways to offset further increases in wages and costs that are expected to continue.

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:

Although there is a financial impact to the organisation, management have taken steps to mitigate this by controlling costs, improving cashflow and maintaining efficiencies and a clearer focus on our delivery.

There are clear signs that the growth ambition described in Swarthmore's 3-year business strategy has improved its financial position to date, and it will continue to be reviewed to ensure it can influence our planning in the year ahead.

Plans for future periods

We continue to focus on the areas set out in the business strategy. We will continue increase our Workshop offer in line with improving our range of courses on offer. The intention is to introduce new learners to the centre, raising awareness of the centre and the full range of delivery on offer.

To complement our existing delivery, we created a new role dedicated to improving the Quality across the Centre.

Our Study Programme will continue to deliver education to our students, maintaining funding for 82 students, with increased focus on progression for students when they complete their time with us. New roles were created in the Study Programme with a specific focus on sourcing work placements, supporting students, and preparing them for their onward journey after leaving Swarthmore.

We are reassessing the rooms and spaces available to hire, ensuring that they are not only fit for purpose, but offer a welcoming and attractive environment available for the community to use. Room hire pricing is also under review to ensure that the facility remains affordable for its users, while continuing to generate enough funds to support the centre and contribute to overheads.

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

In August 2025 we were allocated £14,500 to run a Living Well project at the Centre, aimed at supporting adults with additional learning needs to participate in health and well being activities, designed to improve their overall physical and mental well being. The project will run over one full year, with two courses taking place each term.

Information and advice

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

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

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 April 2025.

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 602 registered members.

There was a review of the Memorandum and Articles of Association during the 2022/23 Financial Year to ensure that they remain fit for purpose. The updated version was submitted to Companies House on 14 March 2023.

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 1 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 Finance (who also meet monthly), and HR and Health & Safety (who aim to meet termly). 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.

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. Online training will be made available, and it is expected that this will improve accessibility for trustees to take up relevant training.

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Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

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.

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:

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

Ms K J Badon Trustee Date: 20 January 2026

Page 13

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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 2025 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 14

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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 Companies Act 2006 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 15

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

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

Our audit procedures to respond to these risks included:

Page 16

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 AAB Audit & Accountancy Limited Gresham House 5-7 St Pauls Street Leeds LS1 2JG

Date: 20 January 2026

AAB Audit & Accountancy Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 17

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2025

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 income/(expenditure)
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
2025
£
914
1,786,862
42,435
14,750
1,844,961
37,719
1,773,620
1,811,339
33,622
(726)
32,896
1,237,617
32,896
1,270,513		 Restricted
funds
2025
£
117,074
-
-
-
117,074
-
130,524
130,524
(13,450)
726
(12,724)
21,892
(12,724)
9,168		 Total
funds
2025
£
117,988
1,786,862
42,435
14,750
1,962,035
37,719
1,904,144
1,941,863
20,172
-
20,172
1,259,509
20,172
1,279,681		 Total
funds
2024
£
104,730
1,712,737
117,543
2,932
1,937,942
88,923
1,840,921
1,929,844
8,098
-
8,098
1,251,411
8,098
1,259,509

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

The notes on pages 21 to 37 form part of these financial statements.

Page 18

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

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

BALANCE SHEET AS AT 31 JULY 2025

2025 2025 2024 2024
Note £ £
Fixed assets
Tangible assets 13 1,050,162 1,069,653
1,050,162 1,069,653
Current assets
Debtors 14 175,834 158,780
Cash at bank and in hand 238,967 301,544
414,801 460,324
Current liabilities
Creditors: amounts falling due within one
year 15 (162,514) (212,511)
Net current assets 252,287 247,813
Total assets less current liabilities 1,302,449 1,317,466
Creditors: amounts falling due after more
than one year 16 (22,768) (57,957)
Total net assets 1,279,681 1,259,509
Charity funds
Restricted funds 17 9,168 21,892
Unrestricted funds 17 1,270,513 1,237,617
Total funds 1,279,681 1,259,509

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However, an audit is required in accordance with section 144 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

Ms K J Badon Trustee Date: 20 January 2026

The notes on pages 21 to 37 form part of these financial statements.

Page 19

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE (A company limited by guarantee)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2025
Note
Cash flows from operating activities
Net cash provided by operating activities
20
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in 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		 2025
£
10,353
(46,162)
(46,162)
(26,768)
(26,768)
(62,577)
301,544
238,967		 2024
£
184,102
(26,647)
(26,647)
(23,274)
(23,274)
134,181
167,363
301,544

The notes on pages 21 to 37 form part of these financial statements

Page 20

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

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:

• Our on-going effective management of the continuing economic pressures (particularly with regard to increased energy prices and increase in NI contributions);

• The need to remain competitive by ensuring we can attract and retain skilled staff (leading to our ongoing review of salary levels);

• The impact of the Autumn 2025 budget statement, and changes in the national minimum wage.

Although there is a financial impact to the organisation, management have taken steps to mitigate this by controlling costs, improving cashflow and maintaining efficiencies and a clearer focus on our delivery. There are clear signs that the growth ambition described in Swarthmore's 3-year business strategy has improved its financial position to date, and it will continue to be reviewed to ensure it can influence our planning in the year 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 21

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

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.

• 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

All expenditure is inclusive of irrecoverable VAT.

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.

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.

Page 22

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

2. Accounting policies (continued)

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 £283,328 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:

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.

Page 23

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

2. Accounting policies (continued)

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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 24

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

4. Income from donations and legacies

Donations
Grants
Donations
Grants
5.
Income from charitable activities
Leeds City Council Adult Learning
Leeds City Council Additional Learning Support
Other grants
Student fees
Membership fees
Sale of education materials
Education Funding Agency
Income from Accreditation services		 Unrestricted
funds
2025
£
914
-
914
Unrestricted
funds
2024
£
194
-
194		 Restricted
funds
2025
£
5,750
111,324
117,074
Restricted
funds
2024
£
4,455
100,081
104,536
Unrestricted
funds
2025
£
268,477
301,568
11,207
120,322
5,767
1,270
-
1,077,829
422
1,786,862		 Total
funds
2025
£
6,664
111,324
117,988
Total
funds
2024
£
4,649
100,081
104,730
Total
funds
2025
£
268,477
301,568
11,207
120,322
5,767
1,270
-
1,077,829
422
1,786,862

Page 25

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

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
Tutoring services provided to community
Education Funding Agency		 Unrestricted
funds
2024
£
262,945
257,325
38,284
123,831
6,039
2,245
13,092
1,008,976
1,712,737		 Total
funds
2024
£
262,945
257,325
38,284
123,831
6,039
2,245
13,092
1,008,976
1,712,737

6. Income from other trading activities Income from non charitable trading activities

Cafe income
Rental income
Cafe income
Rental income		 Unrestricted
funds
2025
£
2,691
39,744
42,435
Unrestricted
funds
2024
£
37,563
79,980
117,543		 Total
funds
2025
£
2,691
39,744
42,435
Total
funds
2024
£
37,563
79,980
117,543

Page 26

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

7. Other incoming resources

Miscellaneous income
Miscellaneous income		 Unrestricted
funds
2025
£
14,750
Unrestricted
funds
2024
£
2,932		 Total
funds
2025
£
14,750
Total
funds
2024
£
2,932

8. Analysis of expenditure on charitable activities

Summary by fund type

Courses
Governance costs
Support costs
Courses
Support costs		 Unrestricted
funds
2025
£
1,444,331
-
329,289
1,773,620
Unrestricted
funds
2024
£
1,386,989
362,921
1,749,910		 Restricted
funds
2025
£
78,680
2,795
49,049
130,524
Restricted
funds
2024
£
39,250
51,761
91,011		 Total
2025
£
1,523,011
2,795
378,338
1,904,144
Total
2024
£
1,426,239
414,682
1,840,921

Page 27

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

9. Analysis of expenditure by activities

Courses
Governance costs
Support costs
Courses
Support costs		 Activities
undertaken
directly
2025
£
1,432,401
2,795
-
1,435,196
Activities
undertaken
directly
2024
£
1,345,325
-
1,345,325		 Support
costs
2025
£
90,610
-
378,338
468,948
Support
costs
2024
£
80,914
414,683
495,597		 Total
funds
2025
£
1,523,011
2,795
378,338
1,904,144
Total
funds
2024
£
1,426,239
414,683
1,840,921

Analysis of support costs

Staff costs
Depreciation
Premises
Communications and IT
General office
Legal and professional fees		 Governance
2025
£
63,653
-
-
-
-
26,957
90,610		 Courses
2025
£
149,648
65,653
114,943
8,578
36,523
2,993
378,338		 Total
funds
2025
£
213,301
65,653
114,943
8,578
36,523
29,950
468,948

Page 28

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

9. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Premises
Communication and IT
General office
Legal and professional fees		 Governance
2024
£
65,094
-
-
-
-
15,820
80,914		 Courses
2024
£
125,786
71,219
167,549
10,579
35,686
3,864
414,683		 Total
funds
2024
£
190,880
71,219
167,549
10,579
35,686
19,684
495,597
10.
Auditors' remuneration
2025
£
Fees payable to the company's auditor for the audit of the company's
annual accounts
12,150
Fees payable to the company's auditor in respect of:
Preparation of statutory accounts
1,800
11.
Staff costs
2025
£
Wages and salaries
1,329,296
Social security costs
108,254
Other pension costs
33,622
1,471,172
The average head count of employees during the year was 67 (2024: 80).
The average number of persons employed by the company during the year was as follows:		 2024
£
11,300
1,700
2024
£
1,284,297
105,474
34,065
1,423,836
2025 2024
No. No.
Number of staff (full-time employee) 47 48

Page 29

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

11. Staff costs (continued)

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 £191,980 (2024: £219,369).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL).

During the year ended 31 July 2025, no Trustee expenses have been incurred (2024 - £NIL).

13. Tangible fixed assets

Cost or valuation
At 1 August 2024
Additions
At 31 July 2025
Depreciation
At 1 August 2024
Charge for the year
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Freehold
property
£
1,383,329
-
1,383,329
533,916
27,666
561,582
821,747
849,413		 Long-term
leasehold
property
£
188,136
-
188,136
51,513
4,939
56,452
131,684
136,623		 Fixtures and
fittings
£
677,951
46,162
724,113
594,334
33,048
627,382
96,731
83,617		 Total
£
2,249,416
46,162
2,295,578
1,179,763
65,653
1,245,416
1,050,162
1,069,653

Page 30

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

14. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2025
£
18,486
204
157,144
175,834		 2024
£
72,211
-
86,569
158,780

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2025
£
31,229
24,373
29,976
8,308
68,628
162,514		 2024
£
22,808
51,342
27,572
9,670
101,119
212,511

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 2024
Resources deferred during the year
Amounts released from previous periods		 2025
£
67,156
20,170
(67,156)
20,170		 2024
£
63,416
67,156
(63,416)
67,156

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

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

Bank loans

2025 2024
£ £
22,768 57,957

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 31

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

17. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Hardship fund
General funds
Unrestricted Income fund
Unrestricted Property fund
Total Unrestricted funds
Restricted funds
National Lottery Grant -
Creative Communities
Hardship Fund
Arts United
Corporate funding
Inner wheel
Total of funds		 Balance at 1
August 2024
£
-
231,621
1,005,996
1,237,617
1,237,617
Balance at 1
August 2024
£
18,601
3,291
-
-
-
21,892
Balance at 1
August 2024
£
1,259,509		 Income
£
-
1,844,961
-
1,844,961
1,844,961
Income
£
91,452
2,560
19,872
1,940
1,250
117,074
Income
£
1,962,035		 Expenditure
£
-
(1,811,339)
-
(1,811,339)
(1,811,339)
Expenditure
£
(110,779)
(3,043)
(16,702)
-
-
(130,524)
Expenditure
£
(1,941,863)		 Transfers
in/out
£
3,362
(4,088)
-
(4,088)
(726)
Transfers
in/out
£
726
-
-
-
-
726
Transfers
in/out
£
-		 Balance at
31 July 2025
£
3,362
261,155
1,005,996
1,267,151
1,270,513
Balance at
31 July 2025
£
-
2,808
3,170
1,940
1,250
9,168
Balance at
31 July 2025
£
1,279,681

Page 32

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Unrestricted Income fund
Unrestricted Property fund
Restricted funds
UK Online
National Lottery Grant -
Creative Communities
Adidas project
Community grant - Art at the
Heart
National Lottery Community
Fund
Leeds Mind
Hardship Fund
Total of funds		 Balance at
1 August
2023
£
216,982
1,005,996
1,222,978
Balance at
1 August
2023
£
9,268
1,511
277
8,870
8,301
206
-
28,433
Balance at
1 August
2023
£
1,251,411		 Income
£
1,833,406
-
1,833,406
Income
£
-
-
-
-
100,081
-
4,455
104,536
Income
£
1,937,942		 Expenditure
£
(1,838,833)
-
(1,838,833)
Expenditure
£
-
(66)
-
-
(89,781)
-
(1,164)
(91,011)
Expenditure
£
(1,929,844)		 Transfers
in/out
£
20,066
-
20,066
Transfers
in/out
£
(9,268)
(1,445)
(277)
(8,870)
-
(206)
-
(20,066)
Transfers
in/out
£
-		 Balance at
31 July 2024
£
231,621
1,005,996
1,237,617
Balance at
31 July 2024
£
-
-
-
-
18,601
-
3,291
21,892
Balance at
31 July 2024
£
1,259,509

Page 33

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

17. Statement of funds (continued)

Designated Hardship Fund - This fund was established in 2025 to support individuals experiencing financial hardship. It is funded by a designation of 10% of the year's unrestricted surplus. The Trustees review the fund level annually to ensure that the allocation is appropriate and that the Charity maintains sufficient free reserves for its core operations.

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

Creative Communities - 2 year project delivering free creative workshops in South Leeds and promoting Pride in Place.

Hardship Fund - Following the Cost of Living Crisis, the Hardship Fund was created from Donations solely for the benefit of supporting Students who would otherwise be unable to afford to access Education at the centre.

Arts United - Arts united is a fun and creative project for adults aged 19 and over who have additional learning support needs.

Corporate Funding - To fund our Supported Learning Programme, promoting confidence, independence, and community connection by providing creative, confidence building classes.

Page 34

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

18. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
August 2024
£
-
1,237,617
21,892
1,259,509
Balance at
1 August
2023
£
1,222,978
28,433
1,251,411		 Income
£
-
1,844,961
117,074
1,962,035
Income
£
1,833,406
104,536
1,937,942		 Expenditure
£
-
(1,811,339)
(130,524)
(1,941,863)
Expenditure
£
(1,838,833)
(91,011)
(1,929,844)		 Transfers
in/out
£
3,362
(4,088)
726
-
Transfers
in/out
£
20,066
(20,066)
-		 Balance at
31 July 2025
£
3,362
1,267,151
9,168
1,279,681
Balance at
31 July 2024
£
1,237,617
21,892
1,259,509
Summary of funds - prior year
General funds
Restricted funds

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2025
£
1,050,162
405,633
(154,093)
(31,189)
1,270,513		 Restricted
funds
2025
£
-
9,168
-
-
9,168		 Total
funds
2025
£
1,050,162
414,801
(154,093)
(31,189)
1,279,681

Page 35

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2024
£
1,069,653
438,432
(212,511)
(57,957)
1,237,617		 Restricted
funds
2024
£
-
21,892
-
-
21,892		 Total
funds
2024
£
1,069,653
460,324
(212,511)
(57,957)
1,259,509
20.
Reconciliation of net movement in funds to net cash flow from operating activities
2025
£
Net income for the year (as per Statement of Financial Activities)
20,172
Adjustments for:
Depreciation charges
65,653
Decrease/(increase) in debtors
(16,850)
Decrease in creditors
(58,622)
Net cash provided by operating activities
10,353		 2024
£
8,098
71,218
105,441
(655)
184,102
21.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2025
£
238,967
238,967		 2024
£
301,544
301,544

Page 36

Docusign Envelope ID: 41E0C5A0-C641-4EC6-9DDB-4F1741EEF380

SWARTHMORE EDUCATION CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

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
2024
£
301,544
(22,808)
(57,957)
220,779		 Cash flows
£
(62,577)
(8,421)
35,189
(35,809)		 At 31 July
2025
£
238,967
(31,229)
(22,768)
184,970

23. Operating lease commitments

At 31 July 2025 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		 2025
£
5,484
7,719
13,203		 2024
£
5,172
11,645
16,817

Page 37