Charity registration number.. 1096922 Iceystone Education Trust TrUst￿S, Report and Financial Statements for the year ended 3 1st December 2023 mca Banbury Ltd. Unit 4-6 The Wharf Centre Wharfstreet WaTwick CV34 5LB Keystone Educatioll Trust Content5 Reference and Administrative Details Trustees, Report 2to5 Independ¢llt Auditors, Report 6t09 Consolidated Statement of Financial Activities Iotoll Consolidated Balance Sheet 12 Balance Sheet 13 Consolidated Statement of Cash Flows 14 Notes lo the Financial Statements 15to28 Keystone Education Trust Reference and Administrative Details Chief Executive Officer Mr N Hill Trustees MrNHill Mr G M Siins Mr S A Rusling Mr M J Donner MrD P Robins Charity RegistrAtion Number 1096922 Prlnclpal Offiee 3 l Ystrad Road Swansea SA5 4BT Audltor m¢a Ballbury Ltd Unit 4-6 The Wharf Centre Wharf Street Wan¥i¢k CV34 5LB Bankers Lloyds Bank pl 113 High Street Gorseinon Swansea SA4 4BR Page I Keystone Education Trust Trustees, Report The Trustees present their report with the financial statements of the charity for the year ended 3 1st Decanber 2023, The Tr￿slee8 have adopted the provisions of Accountins and R¢porÉing by Cbarities: Statement of Recommellded Practice appliGable to charities prepaiing their accounts in accordance with the Financial Reporting Standard applicable in the UK attd RepubliG of Ireland (FRS102) (effe¢tiv¢ l January 2019). Objectives and activities Objects andaittfs The charilable objects of the charity are the advan¢¢m¢nt of the education of Children arld young people from ages five to eighteen in particular by assistance to their parents to enable guch children to be taught ortxerwise than as school as defLned in the Education A¢ts and any other charitable purpose for th¢ benefit ofthe worldwide ehTlStian fellowship known as the Plymouth Brethren Christian Church. In furtherance of its objects. the Trust provides ihe premise under forn]al lease for an independent school b&sed in Sway Road Morriston Swansea which has been Lun by Oneschool Global UIC (OSGUK), The charity also provides donation funding to OSGUIC at the di$ci'etion of tFLe Trustees in order to enable OSGUK to provide a well-balanced education at prinwy and secondary levels. for Ghildren and youllg people whose parents appreciate th¢ Christian ethos. Suocess is tne￿ured in tem)s of the provision of appropriate fa¢iliti¢s to OSGUK whilst. minimising exp¢nditurg. This in turt], fr¢es up funds for raising standards of education for all concerned and for the improvement of facilities for pupils and stV4ff alike. The Trustees bave ref¢rr¢d lo the guidance contained in the Chatity Commission's general guidance on publi¢ benefit and have regard to it when reviewing their aims and objectives, and in planning their future activities. tn partioular diey conskder how planned activities will contribute to tbe educational aims and objectives they huve sgt. Voluiiteers are an integral part of the community ethos and values of the ¢harÈty and there are strong and willing group of volunt¢¢rs who asslst and support the charity thrOU￿]0Ut the year. The trading activities of the charity's trading subsidiary Mwa Trading Ltd, {registered company number.. 0631152), which operates a convenience store, are undertaken by volunteers. objeck1v￿, strategles ttnd aellvldes ThrOU￿boUt th¢ ygar the charÉty has continued to provide educational premises in support of the educational activities of OSGUK. Page 2 Keystolle Educatlon Trust Trustees, Report Fiiiancial review The charity is supported and financed principally by profits from it8 irading subsidiary Magna Trading Limited, plus other ad hoo don&tions and those raised by fiindraising events and grants from the Grace Trust. The Trustee5 belleve that the ¢harity's fi￿d5 aiE sufficient to ￿ltIgate short to medium terrn risk of reduced funding. The charity's fundraising events principally operats withi'n the Br¢thren community and prof¢ssional fundraisers are not LLsed, Neither the ch￿lty nor any person acting on behalf of the charity wa8 subject to an und¢rtaking to be Ix)und by any voluntary gcherne for regulating fimd-r&ising, or voluntary standard for fund-raising in respect of activities on behalf of tbe tll￿t. In the year ended 3 1st Decembet 2023 tbe cEwity r¢Frf)rted & net deficit of £252,493 {2022 deficit of £109,394). The group reported a net deficit of £162,740 (2022 d¢fiGil of £113,461), At the year end the charity bad net current assets of £44,632 (2022 net ¢urrellt assets of £177,209). The group had net CULTent assets of £144,655 (2022 net current assets of £168,894). The charity's policy is to maintain minimum fre¢ reserves at a level which equates to six month8, unrestricted expenditure. This is approximately £10.679. At the year cnd 2023 the free res¢rv¢s of the chartty were £146,998 {31st December 2022 £399,491). After making appropriate enquiries. the Trustees have a Teasonable expectation that the charity has adequate re3ource5 to continue in operational existence for the foreseeable futLLYe. Forthis reason. it continues to adopt the goittg concern basis tn pr¢paring the financial statements. Further details regarding the adoption of the going concern b&8is can be found in the Accounting Policies. Plans for fulure periods Altt￿ oRd kéy (Jbjettivasforfukureperlodg The Trustees plan to cO￿tinue to support OSGUK to providg a quality L￿d deliver a consistent and high lev¢1 of educational experience and outcome for all students and staff, in ￿CordanCe with the charity's ethos and values. Structure? governance And manAgeffjent Keystone Education Trust is ¢onstituted by a I)eed of TnLSt dated 30 December 2002 and is registsred with the Charity Commission for England Wales. Tb¢ Trustees who served during the year and since the year end are set OUÉ on page l. None of the Trustees. nor any person connected with thern, received any retnun￿￿tIoll from the charity in the year ended 3 1st December 2023 (year ended 31 st Deceinber 2022 £nil}. The power to appoint Trustees is invest'ed in the existing Tru51ges Subject to the charity Deed requirement. Trustees are selected according to theirown specialism in a partiGular fi¢ld and are expected to pursue that specialism. New Trustees are inslructsd in the need to ¢ompl¢lely adhere to the ethos and values of the charity. New Trustees are appointed at charity meetings and training ts given by the outgoing trustee being replaced, along with support from fellow Trustees. Page 3 Keystone Education Trust Trusteesl Report Prlncfipal Risks The Trustees have examin¢d the major strategic, businesg Aiid opei'ational risks that the charity faces. The Trustees are satisfied that the major risks id¢ntifi¢d h&v¢ been adequately nitig&ted wher¢ ne¢essary, It is recognised that systems can only provide reasonabl¢ but not absolute assurance that major risks have been adequately Inanaged. The principal risks lo the charity are.. risk of damage to the propety held by the charity (although the property holds property insuran¢e)' risk of ¢losure or rcloGation of the schooling by Onesohool Global UIC land ris1< of fall in trading activities of the wholly owned trading substdiary, either due to a fall in customer loyalty or a significant increase in supplierprices (closely tnonitored by the trading subsidiary directors who would then taic¢ appropriato ￿tIon), There were no serious incidents relating to the charity over the year to report Pag¢ 4 Keystone Education Trust Trustees, Report Statement of truste&4' respollsibilities Th¢ Irust¢es arc responsible for prepanng the Annual Report and the financial stateinents in accordance with applicabl¢ law and United Kingdom Accounting Standards. (United Kingdom Generally Accepted Accounting Pra¢ti¢e). The law applicable to charities in England and Wales requ&r¢s the trustees to prepar¢ finan¢Lal stat¢menls for each financial year which give a tyue and fair view ofthe state of affairs of the charity and the group and of the incoming resources and application of resou￿¢$ of the charitsble group for that period. In preparing these financial statements, the trustees are required to.. select Sultable accounting policies and apply them consistently, observe the methods and principles irt th¢ Clwit1¢8 SORP; make judgements and estimatss that ar¢ reasonabl¢ and pr[￿entr, State whether applicable a¢¢ounting standards, subject to any n]aterial departures disclosed and expl)ined in the financi￿ Statements,. and ptrpare the financial statements on the going concern basis unless it is tllappropriate to presume that the parent Charitable company will continue in bu5Lness. The truste¢s responsible for keeping proper accounting records that disclose with re2L8onable accurdcy at iny titn¢ the financial position of the charity alld the gtDup and enable them to ensure tILat tkne financial statetnents comply with tlLe Chartties Act 201 l. the Charity (Accounts and Reports) Regulatiolls 2008 and the provisions of the ¢harity deed. They arg also ￿spOnsIbLe for safeguarding the assets of the charity and the group and hence for talcing re&80nable Steps for the pr¢venl(on and detection of fraud and other irregularities. The anniial report was approved by tlie trustees of the charity on..... . ...... .... signed on its behalf by: rN Chief executiv¢ offi¢er and truste¢ Page 5 Keystone Education Trust Independent Auditorls Report to the Members of I plus ¢osls directly attribul&ble to the business combination. Identifiable assets acquired and liabiliti¢s and contingent liabilities assumed in a business combination are measured initially at their fair valEtes at the acquisition dale. Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, li8biliti¢s and contingent liabilities recogniged is recorded as goodwill. Inter-company transactions, balances and unrealised gains ontransactions betwe¢ll the chatllty at)d. its subsidiaries, whicli are related parties, are eliminated in full. Intra-group10ss¢5 ar¢ als0 eliminatod but may indi¢ate an itnpairtll¢nt that requir¢5 r¢cognition in the consolidated financial statements. Accounting policies of Subsidiaries have been clwiged where n¢cessary to ensure Gonsistency with th¢ policies adopted by the group. Non-controlling interests Én the net &￿et8 of consolidated subsidiaries are identifLed separately from the group's equity therein. Non-controlling interests consist of the ainount of those interests at the date of tkne original business combirtation and the non-controlling 8hAr¢holder's share of Ghanges ill equity sinGe the date of the coinbillation, Tot￿ COLnprehensive income is attributed to llon-controlling interests even if this results in the non-controlling interests having a deficit balance. Going toneern Th¢ trugte¢s ¢onsid¢r that there ar¢ no tnaterial un¢¢rtainties about th¢ group's abilily to continue as a going concern nor any significant areas of uneertlinty thdt affec,t the Carrying value of assets held by the group. Page 16 Keystone Education TnL8t Notes to the Financial Statements for the Year Ended 31 December 2023 Income All income is recognised once ('he Charity has entitlement to the incoine, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of in¢om¢ from legaGies is dependent on establishing ¢ntitlem¢nt, tb¢ probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of elltitlement to a legacy exisls when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and th¢ death of the benefactor) and the exe¢utor is satisfled that th¢ property in question will not be required to satisfy Claims in the estate, Receipt of a legacy niust be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expeoted Cash &niount to be distributed to the CILarity, can be reliably measured. Grants are included in the Consolidated statement of financial activities on a receivable basis, The balance of inoorne received for specific purposes but not expended during the period is shown in the relevant funds on I'he Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and in¢luded in creditors as deferred income. Where ¢iititlement oc¢urs before inwme is recetved, th¢ tncoine is accrued. Income tax recoverable in relation to investment income is recognised at the time the investment income is oivable. Otherincome Interest on funds held on deposit is included when receivable and the atnount can be measured reliably by the Group. this is nonnally upon notification of the interest paid or payable by the institiition with whom the fijnds are deposited. Expenditure Expenditiire is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable thai a transfer of eGonomiG b¢n¢fits will be required in settl¢m¢nt and th6 a￿O￿t of the obligation can be measured reliably. Expenditure is classified by &ctivity. Expenditure on cbaritable activities 18 incurred on directly undertd£ing the activities which further the Group's obje¢tiv¢s, as w¢ll as any &ssociated support costs. All exp¢nditur¢ is inclusive of irrefjoverable VAT, Tangible fixed assets Tangible fixed assets costing £500 or more are capil'alised and recognised wben ￿tUre economic bellefits are probable and the cost or value of the asset Can be measured reliably, Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets -.aTe-Measured-at-¢0gt..les￿￿ee￿mu1at¢d-depr¢cIat.l0n-alld..any-a￿urnulaled..IiMpa1vjnQnI-IoS$eS-A.l1-c0st*lncv￿ed-lO- bring a tangible fixTd asset into its tntended working condition should b¢ in¢lud¢d in tli¢ measurement of Gost, Page 17 Keystone Education Trust Notes to the Fillancial Statements for the Year Ellded 31 December 2023 Depreciation and amortisation D¢pr¢ciatioll is charged so as to allocate I'he cost of tangible fixed assets le55 their residual value over their estimated useful lives. Assets ¢osling less than £500 are written off to the SOFA in tbe year of purcha5¢. A￿¢t class Freehold Property Plaiit & Machinery L¢aschold Propety DepreelAtion method &nd rate 20/0 Straight Lin¢ 200/0 Straight Line IO% Straight Line Current asset investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at tlie Balance sheet date, unless th¢ value cannot be measured reliably in which ra8e it is tn¢a5ured at cost less irnpaimient. Investment gains and losses, whether realised oi. untEalised, are combined and pr¢sented a5 'Gainsl(Losses) on invegttnents, in the Consolidated statement of finattcial activitigs. InveslmellÉs in subsidiaries are valued at cost l¢ss provision for impairnLent. Stock Stocks are valued at th¢ lower of c05t and net r¢alisable value after Lnalcing due allowance for obsolete and sIow- moving slock8. Cost includeg all direct costs and an appropriate proportion offixed and variable ovetheads. Trade debtors Ti'ade ond other debtors are recognised at the setilement arrLount after any trad¢ discount offered, Pi'epaymetLts are valued at th¢ amount prepaid net of any trade discounts due. Fund structure General fiinds are UllresiTiCted funds which are available for use at the di5Gretion of the Trustees in furtherance of the general objectives of the Group and which have not been designat¢d for other purposes. Restricted funds are funds wbicb are to be used in accordanGe with speGifio restrictions imposed by donors or which have been raised by the Group for particular purposes. The ¢osts of raising and administ¢ring 5u¢h funds are charged against the speoifiG fund. The aim and use of ¢a¢h restricted fund is set out. in the noiES lo th¢ financial statements. Investment incorne, gains and losses are allocated to the appropriate fund, Finaneial inSt￿mentS ClassifieftÈioH The CP￿lty only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. BasicJnancial_instr.uments_arLinitially_.rEcO￿Ise￿at..tra￿sactio￿_V.a1UC...￿nd..SubseqUe￿ÈIy-1￿ea8ur¢1L￿t-theIr--___._____....._. settlemei)t value. Page 18 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 December 2023 3 Income from donations and legacio8 Unrestiieted futtds General Totsl funds Gifts donations 235,078 235,078 215,078 Total for 2023 235,078 TotAI for 2022 11,050 11,050 4 Ineome from charitable activities Unrestrlcted funds General Total funds Rental Income 4,167 4,167 Total for 2023 4,167 4,167 Total for 2022 4,167 4,167 5 Income from other trading xctlvitles Unrestricted funds General Totsl funds TradÉng In¢0￿e- Magna Tradillg Ltd I'otAI for 2023 805,215 805,215 805,215 805,215 TotAI for2022 762,030 762,030 6 Investmellt income Unrestricted funds GenerAI Total funds Bank Interest Total foi. 2023 546 546 546 Total for 2022 34 34 Pag¢ 19 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 Deeember 2023 7 Expenditure on r&ising funds n) Costs of ¢rading 8ctiYities Unrestricted funds General Total funds Trading Costs- Maglla Trading Ltd 723,201 723,201 Total for 2023 TotAI for 2022 65 8 Expendlture on eharitable Aetlvltles Unr￿trIcted fullds General Total fuiids Nots Charitsble activiti¢s 484,513 484,513 Total for 2022 Page 20 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 Deeember 2023 9 Anatysis of support C08ts Support Costs allocated to charitllble activiti Premises costs Administration including eosts depreciation Oth¢r support costs GovernAnce eosts Finance Costs Charitable Activities Tothl 2023 Charitable A¢tLVlties Premlses costs Admilli8tratAon including costs dep￿tI￿tiOn Other suppoit tosts Governance costs Finance costs Charitable AGtivitigs 119852 Total 2022 Charitable ActLVlties Other supports costs are donations made to OSG. Staff costs are nil. Keystone Education TrLlSt is run Entirely by volunteers. Page 21 Keystone Education Trust Notes to the Financial Statements for th¢ Year Ended 31 December 2023 10 Trustees remuner￿ti0n and expènses No trustees, nor any persons connected with them, have received any remuneration from the group during tILe year. No trnstees hav¢ r¢¢eived any r¢imbursed expeD8es or ally other benefits froin the Gharity during the year. 11 Auditors, remuneration 2023 2022 Other fees to auditors The auditing of aeeounts of any associate of the charity Audit-related assuran¢e $ervic¢s All other non-audit services 4,000 2,500 2,000 00 500 Page 22 Keystolle Education Trust Notes to the Financial Statements for the Year Ended 31 December 2023 12 Tangible r￿ed assets Group Land and buildings Furniture and equipment Total Cost At l January 2023 Disposals At 3 I December 2023 I,E98,557 94,605 (1,685) 1,293,162 (I,685) 1,198,557 92,920 1,291,477 Depreciation At l January 2023 Charge for the year Eliminated on disposals At 31 December 2023 776,279 119,915 51,858 19.311 (2,410) 828,137 139.226 (2,410) 896,194 68,759 964.953 Net boolÉ valu¢ At 31 December 2023 302,363 24,161 326,524 At 31 Deceniber 2022 422,278 42,747 465,025 CharÉty Land and building$ Total Cost At l January 2023 1,198,557 1.198,557 D¢preciAtion At l January 2023 Charge for the year At 3 l Deceillber 2023 776,279 119.915 776,279 119.915 896.194 896,194 N¢t book Yalue At 31 D¢c¢mber 2023 302,363 302,363 At 31 DBcen]bcr 2022 422278 422278 13 Fixed asset investments Charity Shayes in group undert4kings and participating intsrests Page 23 Keystone Educatioll Trust Notes to the Financial Statem¢nts for the Year Ended 31 December 2023 Subsidiary uadertakings Total Cost A¢ l January 2023 At 31 December 2023 Net book value Ai 31 December 2023 At 31 December 2022 Details of undertakings Details of the illvestm¢nts in the charity holds 200/0 or moro of the Dominal value of any class of share capital are a8 follows: Coulltry of ineorpor*tion Proporiioll of voting rights Principal lld shares held activity Undertaking Holding 2(ll3 2022 Subsidiary undertAkin Magoa Ttydding Ltd Unit 2, Viaduct Road, Chvaelod-Y-G&rth, Taffs United Kingi IOOO/o lo￿/ Sale of Retail Good Well, Cardiff, CF15 9JN 14 Stock Group Charity 2023 2023 2022 Stocks 106 722 15 Debto Group Charity 2023 2022 2023 2022 T"radE"debiors- Other debtors 12,890 532 12,890 113,405 li Pagc 24 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 December 2023 16 Credilors: amount5 falling due within one year Group Charity 2023 2022 2023 2022 Trade creditor5 VAT Other creditors Accruals 57,380 7.817 4.716 12,715 71.432 5.301 3,454 3,401 3,129 6.580 8,000 34 17 Creditors: amounts falling due after one year Group Charity 2023 2022 2023 2022 Bank loans Page 25 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 December 2023 18 Funds Group BAlance at 31 December Balanee at I January 2011 Incoming resour¢e5 Resourees expended 2023 Unrestricted fund$ General Balance at 31 December 2022 Balance at I January 2022 Incoming resources Resources expended Unrestricted funds General Charity Balance at 31 December 2023 Balance at I January 2023 IDcoming resources Resources expended Unrestrieted funds General )99 490 14 Balgnce at 31 December BAlanee at I January 2022 Incoming resources Resourees expended 2022 Unrestricted funds General Page 26 I