Charity r¢gistration number. 1096922 Keystone Education Trust Trustees, Report and Financial Statement5 for the year ended 31st Decenther 2024 mca Banbury Ltd Ut)il 4-6 The Wharfcentre Wharf Street Warwick CV34 5LB Keystone Education Trust Contents Reference &nd. Administrative Details TTUSt¢es' .Lieport 2to5 Independent Auditors, Report 6t09 Consolidated stateM￿lt of Financial Activities iotoii Consolidated Balance Sheet 12 Balance Sheet 13 Con801idated Statement of Cash Flows 14 Notes to the Financial Stat¢ments 15to28 Keystone Education Trust Reference and Administrative Details Chief Executive Officer MrN Hill Trustees Mr N Hill MrGMSims Mr S A Rusling Mr RBrown Mr D P Robins Charfity Registrgtion Number 1096922 PrincipAI Office 31 Ystrad Road Swansea SA5 4BT Auditor rnGa Banbury Ltd Unit 4-6 The Wharfcentre Wharf Street Warwick CV34 5LB Bankers Lloyds Bat]k plc 113 High Street Gor5¢illQn Swansea SA4 4BR Page I Keystone Educ&tion Trust Trusteesl Report Th¢ Tmstees present their Teport with the financial statsments of the ¢￿￿'1ty for ttLe year ended 3 1st December 2024. The Trustees have adopted the provisions of Accounting and Reporting by ChAritie8.' Statetnellt of Rec,ommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective l Janliary 2019). Objectlves and A¢tiviti¢s Objects and aims Th¢ ¢haritable objects of the oharity are the advancement of the education of Ghildren and young peopl¢ from ages five to eighteen in particular by assiytance to their parents to enable such ¢hildren to be taughl otherwise than at school as defined in the Education Acts and any other charitable purpose for the benefit of the worldwid¢ Christian fellowsliip known as the Plymouth Brethren Ct]ristian Church. In furtherance of its objects. the Trust provid¢s the premise under forn]al lease for &n independent school based in Sway Road Morriston Swansea which has been run by Oll¢School Global (OSGUK). The ¢liarity alsD provides donation funding to OSGUIC at the discTetion of the Tru8tees in older to enable OSGUK to provRde & well balallced education at priinary ￿]d seGondary levels, for Children and young people whose parents appreciate the Christian ethos. Su¢¢ess is measured in tsrnis of tlie provision of appropriate f&ciliti¢s to OSGUK whi15t minimxsing expenditure. This in tunL frees up funds for raising 8t.l￿datds of education for all concemed and for Éhe irnprovgment of facilities for pupils and staff alike. The Trlistees have tEferred to the guidance contaill¢d in the Charity Commissioll's general guidance on publi¢ benefit and have ￿gard to it when reviewing th¢ir aims alld objectives, and in planning tlieir future activities. In particular they consider how plat]ned activities will contribiite to the education&1 aims and objectives they have set. Volunteers are ¥Sll integral part of the community ethos and values of the cliarity and there are strong and willing group of voliinteers who a8SlSt and siipport the churity througliout the y¢ar. TILe trading activities of th¢ chartty's trading subsidiary Magna Trading Ltd, (registered coinpany numb¢r,' 0631152). whiGh operates a convenience store, are undertaken by volunteers, Objectivej, sti'aÈegies und activities ThToughout the year the charity has continued to provide educational prernis¢s in support uf tbe educ&tioii&l activitie5 of OSGUK. Page 2 Keystone Education Trust Trustees, Report Flllancial review Th¢ chai'ity is suppoited and financed principally by profits from its trading subsid1￿Y Magna Trading Limitsd, plus other &d hoc donations and those raised by fundt7ising events and grants from the Grace TrLlSt. The Trust¢¢$ b¢lieve that the charity's El￿d8 are yufficient to rnitigate any sliort to n]ediiim tenn risk of Tedu¢ed fundillg. The charity's fundraising events principally operate within the Brethren community and professional fundraisers are llot us¢d. Neither the Gliarity nor any person aEtiiig on behalf of the charity was subject to an uudertaking to be bound by any voluntary scheme for regulating fund-raisillg, or voluntary standard for fund-raising in r¢spe¢t of activities on behalf of the trust. In the ye8J ended 3 1st Decetnber 2024 th¢ ¢harity i¢ported a net surplus of £18,166 (2023 defiGLt of £252,493). The group reported a net siirplus of £37,237 (2023 deficit of £162,708). At the year end the clmrity Ithd llet ¢umnt. &%s¢ts of £7,807 (2023 net current assets of £44,632). The group had net current assets of £308,448 (2023 net current assets of £271,211). The charity'5 policy IS to maintain minimum free r¢sEiv¢s at a l¢v¢l which equates to six months, uThrestrirted expendithr¢. At the year end 2024 tlie free reserves of the charity wei'¢ £L65,164 (31st De¢¢mber 2023 £146,998). After making appropriate enqluries, the Trustees have a reasonable expectation tbat d)e charity has adequats resoiirces to continue in operational existence for the foreseeable future. For this reason, Lt continues to adopt d]e going conoem basis in pr¢paru]g the financial slHtsments. Further details regarding the adoption of the going concern basis can be found ill the Accounting Poli¢i¢s. Plans for future periods Aims and key objecliyeJforfu¢ureperiods Tlie Trustees plan to continue tD supporl OSGUK to provide a quality and deliver a consistent and high level of eduoattonal ¢xp¢ri¢n¢¢ and out¢0￿¢ for Students and staff, in accordance with the charity's ethos and values. During the year a propos￿ was agreed to merge Keystone and Whit¢¢roft Education Trusl to ¥Yeats a new campiis by merging the existing Swansea & Bristol canipuses into oiie. This process is being led by Whits¢roft Education Trust. A memorandum of undei'slandiiig between Whitecroft and Keystone has been agreed and signed by trust¢¢s. Stru¢tvre) governance and management Keystone EdLi¢ation Trust IS Collstituted by a Deed of Trust dated 30 Deceinber 2002 and 14 registered with tbe Charity c.onirnission for Englp¢iid Rnd Wale5. 'The Trustees who Se￿ed duiing the year and 8lnCe th¢ year ¢nd are set out on page l. None of the Trustees, nor ally person Connected with them, received ally retnuneration froiTi the clwity in the year ended 3 1st December 2024 (y¢ar ¢nd¢d 3 1st De￿Inber 202) £nil). The power to appoint Trugtees is iiivested in tlie existing Trustees siibject to the clwity Deed requirement. Trustees are selected according lo tlieir own sp¢ciali5ni ill a particular field and are expected to PLirsue that specialisni. New Irustees are instrLiCted itL th¢ n¢¢d to compl¢tely adhere I'o the ethos aiid values of the charity. New Trustees ￿e appointed at charity meetings and training is given by the outgoiiig trustee being replaced, long with support frojn fellow Trustees. Page 3 Keystone Lducation Trust 'rrustees' Report Prlncipal Risk8 The Trustees have examined the major strdtegiG, business and operational risks that th¢ charity faces. The Trustees are. satisfied that the tnajor risks identifLed have beeLi adequately n]itigated where necessary. It is recognised tl)at SYSt￿nS can only provide reasonable but not absolute assiirnnce that tnajor risks l)#ve be¢n adequately rnanaged. The pi'u)¢ipal rislcs to the charity are.. . risk of damage to the property held by the ch&rity {81tkLough the property holds property insurance). risk of fall in Iradllig activiti#s of the wholly owlled trading subsidiary, either due to a 'Fall ID Gustorner loyalty or a significRnt increase in supplier prices (closely monitored by the ti'ading subsidiary dir¢Gtors who would then tal(e appropriate action). the Trust is at ris1< of losing its lenant (OSG) within the next 12 months and will the￿fOre need to Consider disposal of the propety. There were no serioiis inGidents relatiiig to the cl]arity over the year to report Page 4 Keystone Education Trust Trustees, Report Statement of trust'ees, respon5ibllIlties The trustees are responsible for preparillg the Anniial Report and the fillttncial ststements in accordance with applicable law and United Kingdom A¢coullting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England alld Wales i'equires the trLlStees to prepare financial statements for ea¢h fLnwicial year wliich give a true and fair view of die state of affairs of the cli&wity and the group and of the inwming r¢sour¢es and appli¢ation. of resources of the Gharitable group for tliat period. In pi'epai'ing th¢se financial stst¢m¢nts, the trustees are required to: select siiitable accounting policies and apply th¢m cotssistently. observ¢ the methods and principles in tbe Charitles SORP; make judgements and estinwtes that aTe reasonable and prudent,. state whether applicable accounting standard8, subject to &ny materiaI departures disclosed and explained in the financial statements. and prepare the financial statements on the going concem basi8 unless it is inappropriate to presume Ihat the parent Ch￿1t￿ble conipany will continue in business. Th¢ trustees are responsible for keeping pi'oper accounting records that disclose with re&gonable accLiracy at any tirne the financial position of the charity and tELe group and enable them to onsure that the financial statetnents comply wit& tb¢ Charities Act 2011, the Clwity (A¢Gounts and R¢ports) Regiilatl￿iS 2008 and the provisions of the charity deed. They are also responsible for safegiiardtng the assets of tb¢ charity and the groiip and hence for taking reasonable stepg for the pr￿¢￿tion and detection of fraiid and other i￿egUlarltie8. Tb¢ annual report was approved by the trustees of the charity on . sigiied on its b¢tLalf by.. MrN Chief executive Dffjcer and trLlStee Page 5 Keystone EdueatRon Trust Illdependent Auditorls Report to the Members of Keystone Educatioll Trust Opinion We have audit¢d th¢ fjnanoial statements of Keyston¢ EdLi¢ation Trust (the 'cliakltable parent company,) and its subsidiaries {th¢ 'groiTP') for the year ended 31 Deoember 2024, which comprise the Consolid&(ed Statetn¢rLt of Financial Activities, Consolidated Balance Sheet, BalanGe Sheet. ConsolidatBd Statement of Cash Flows and Notes to the FIn￿GIal Statements, incliidiiig a summary of signifi¢ant accounting policies. The financial reporting frameworli that has been applied in their preparation is United Kingdorn A¢¢oiinting Standards. comprising Charities SORP - FRS 102 The Financial Reporting Standard &ppliG8ble in th¢ UK and Republic of Ir¢land' and applicable law (Ulllted Ktngdom Generally AGGeptgd A¢counting Pwtice). In our opinion the financial statements: give a true alld fair view of the state of t]Je group's and parent charity'g affairs as at 31 December 2024 and of its in¢oming resources and application of resources, iricluding its income ￿]d expenditure, for th¢ yw then have b¢¢n properly prepared in accordance with United Kingdom Generally Accepted Accounting Pra¢t.i¢¢' and have been prepared in aGGordance with the requirement8 of the Companies Act 2006. Basis for opinion We condii¢ted our audit in accordance with lttt¢rrtational Standards on Auditing (UIC) (ISAS (UK)) and appliGable law. Our responsibilities linder those st2ndards Rre furtber described in the auditor Tesp0115ibiliti¢s for the audit of the financial statements section of our report, W¢ ar¢ illdependent of the group in accordance with the ethical Teqiiiretneiits that are relevant to our audit of tli¢ fmallcial statements in the IJK, including the FRC'S Ethical Standard, and we bave fulfilled our other ethical responsibilit'ies in accordance with these rwuirements, We believe that the audit evideLice we have obtained is sufficient and appropria¢e to provide a basis for our opinioii. Conclusions relating to going coneern In auditing the financial stat¢ni¢nts, w¢ bave concluded that dje trust¢¢s us¢ of tbe going cottcern basis of accoLinting in the prepaTation of the financial statements is appropriate. Based on the work we h&v¢ perfonn¢d, we have not identifled &Thy malei'ial uncertainties relating to events or collditions that, individually or collectively. may cast significant doubt on the group's ability to continue as a Eoing ¢oncen] for a period of at least twelve Inonths frotn when the original fiiianGial statetnents were authorised for issue. Our re8ponsibiliti¢s and tbe responsibilities of the trustees with respect to going concein ￿e dcscTibed in the relevant s¢Gtions of this report. Other illforlliation Tbe trusl'ees are responsible foy the othei. infomiatioll. The other inforn]ation comprises th¢ iiifoiYn&tion included ui the annual report, other than the financial statements and oiir auditor's report tb¢reon. Our opinion on the financial statements does not ¥over the other infonn&tion and, except to the extent otberwisc explicitly stated in our report, ￿ do not expres8 any forni of assurallce concliision thereoii. In connection with our aiidit of the fiiiancial statements, our responsibility is to read the otlier infomi&tion and, in doiiig so, consider whether the other iiifomation is iiiaterially iilGOIISiStent witTrL the fmancial statements or OUT knowledge obtained in the audit or otherwise app¢Mrs to be materially misstated. If we identify such material inconsist¢n¢ies or apparent material misstatements, we are required to determine whethpA' there is a mafrrial Inisstatement in the financial statements or a material misstatement of the other information. If, bas¢d on the work we have perfortned, we coiiclude that there is a material misstatetnellt of this other infDm&tion, we are required to r¢port that fact. Page 6 Keystone Education Trust Independent Auditorls Report to the Members of Keystone Education Trust We have nothing to report iii thls r¢gard. IVLatters on which we are vequlred to report by exeeplion We have nothing to report in respect of the following matters where the Charitie8 (Accoullt8 and Reports) R¢gulatiolls 2008 requir¢s u5 to report to you if, in our opinion.. the information BiY¢n in the Trustees, report is inconsistent in any material respect with the financial statements. or the parent charity financial slat¢ments are not in agreement with the accoullt(llg records and returns. or the parent charity has not kept sufficiellt a¢¢ounting r¢¢ords,' or we hav¢ not re¢¢iv¢d a]1 the information and explallatioiis we require for our audit. Responslbilltles of truste&5 As explained more fjjlly in th¢ Statement of trnstees, responsibilities (set out OL] page 5), the tnistees are responsible for the preparation of the financial statemeiits and for being satistied that they give a i￿C and fair view, and for siicb intern￿ control as the trustees deternline is necessary to enable the preparation of financial stst¢m¢nts that are fr¢e from materiaI mi8Stat¢mFnt, wh¢tELer due tt) fraud or error. In preparing the financial statemertts, the tMste¢s are r¢5ponsibl¢ for &5se5sing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of aGcoiinting unless the trustees either intend to liquidate the eliartty or Éo cease operations, or have no realistic altemative but to do so. Audltor responsibilities for the audit of the finalleial $tatemellts Our objectives are to obtain reasonable assurance abolit whether th¢ fillancial statements as a whole are free from n￿terial misstatement, whether diie to frai￿ or error. and to issue auditor's report that includes our opinion, R¢a50nable assurance is a high level of assuraiice, but is not a gllarante¢ that an audit condiicted in accordance with ISAS (UK) will ajways det¢fjt a xnatgrial mi5Statement when it exists. Misstatements can arise frotn fraud or ¢rTor and are Considered matsriaj 1£ individually or iii the aggregate, they could reasonably be ¢xpected to influeiice the economkc decisions of usel'8 talcen on the basis of these fmancial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed b¢low'. The engagement partner ¢nsured that tlie engag¢m¢nt tearn collectively had the appropriate ¢ompet¢nGe, capabilities [￿d skills to id¢ntify or recognise non-compliaLce with the applicable law8 and i'egulations. We assessed the susc¢ptibility of the company's finanGial statements to material misstatemenl including oblaining an iinderstanding of how fraud ￿l￿t occur, by: Mal(iiig enquiries of management as to WI￿re they Considered there was susceptibility to fraud, th¢ir Iciiowledge of actual, suspe¢t¢d Hnd alleged fraud. l￿d Consid¢ring the internal controls in place to mitigate risks of fraiid and non-compliance with laws and regulations. To address th¢ risk of fraud tbrough management bias and ove￿Ide of controls. we: P¢rforrn¢d analytical procedLires to identify any i￿UsUaL or unexpected relationships. Tested journkd entries to identify unusuf¢l transaclLOllS' Assessed whetber judg¢inents and ossumptions Jnade in deterinining tlie accounting estimates were indicative of potenti&l bias. ￿ld 1iiv¢stigat¢d the rationale beliind 8ignifi¢ant or unusual transactiolls. Page 7 Keystone Education Trust Independent Auditorls Report to the Members of Keystone Education Trust In response to the risk of irregularitie5 and non-compliance with laws and regulations. we desigmed pro¢¢durcs which included, but were not limited to: Agreeing financial stalement disclosures to undeTlying supporting documentation Enquiring of mHnagemenl ￿ to actual and potential liligation attd claims: There are inherent limitations in our audit procedures described above. The mor¢ removed those laws and regiilation5 are from financial transactions, the less likely it is that we would become aware oenon-complian¢e. Auditing stslldards also liinit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other managenient, Material mAsstatements that arise due to fraud ¢&n be hArd¢r to detect than those that aTise from error as they may involve delibei'ate concealment or colIusion. As parl of an audit in accordance with ISAY (UK), we exercise professional judgement maintain prof￿51011&1 scepticism throughout the audit. We also: Id¢ntify and assess the risks of material misstatemcnt of the finanGial st8t¢ments. whether due to fraud or error. design Und p¢rfomi audit procedures responsive to those risks, and obtain audtt evidence that is sufficient and appropriate to provide a b￿lS for our opinion. The risk of not detecting a matertal misstalem¢nt resulting from fraud is higher than for one resulting from error, as frdud may involve collusion, rgery, intentional omissions, misrepresentations. or the ov¢rride of internal ¢ontrol. Obtain an understanding of intemal control rel¢vant to the audit in order to design audit procedures that are appropriale in the circumstances, bLLt not for the purpose of expressing an opinion on the effectiveness of the company'5 internal wtttrol. Evaluate tl)e appropriateness of accounting policies used and the reasonablenesg of accouuting estimates and related disLlnsures mad¢ by th¢ directors. Conclude on the appropriateness of the directors, use of tlle going coiicern basis of accounting and. based on the audit ei'id¢nce obtaine(L v4hether a material uncertainty exists related to events or conditions that may cast si￿)1r1¢an£ doubt on the charity'5 ability to continue a8 a goillg conuem. If we coiiclude ihat a material unG¢rtainty exists. we are required to draw attention in oui. Report of the Auditors to the related disclosiires iii the fillanci￿ statements or, if such disclosures are iTh¢id¢quate, to modify uur opinion. Our wnelusions are based on the audit cvid¢nce obtained up to the dat.¢ of our Report of th¢ Auditors. How¢v¢r, ￿tUre events or onditions may cause the company to G¢4se to cijntinuo 18 a going concern. Evalithte the ovei'all present&tion, structure and content of the f￿￿}cIal statements, including the disclosures. And wliether the financial statements r¢present the underlying transactions and evernts in a matmgr thal achieves fair presentation We defme nateriality as the ma￿LtUde of misstatement in the Financial Statements thyt inalces it probable that the economic decisions of a T¢asonably knowledgeable person would be chaii8ed or influenced. We use m&t¢riality both iii planniiig and in the scope of our audit work and in evaluating the resiilts of our work, We communicate with those charged with governance regarding, among other matters. the plann¢d scope &nd timing of the audit and signific&nt audit ffftdings. including any significant deficiencies in intemal wnlrol that we identify during oiir audit. A ftuth¢r descriptioii of our responsibilities is available on the Financial Reporting Coiincil's vRbsite at: www.frc.org.uldauditorsresponsibilities. This descrip¢ion forms part of oui. auditor's report. Page 8 Keystone EducatlOD Trust Independent Auditor's Report to the Members of Keystone EduLation Trust Uy¢ of our report TE]is report is made solely to the oharity's Ti'ustees, as a body. in accordan¢¢ witli Part 4 of the Cbarities (AcGounts R¢port5) Regulations 20D8. Our audit work has been undertal(en so that we rnight state to the group's tnistees tliose matters we are required to state to th¢in tn an aiiditor's report and for no other purpose. To tFLe fullest extent pernlitted by law. we do not accept or assiimo r¢sponsibility to anyone other than the ¢harity and its trustees as a body, for our audit work, for this report, or for the opinions we have forn]ed. Martin Cox (Senior Statutory Auditor} For and on behalf of mca B￿bUrY Ltd, Statutory Auditor Unit 4-6 Tbe Wharfcentre Wharf Street Warwick CV34 51 Date: 1210912025 Page 9 Keystone Education Trust Consolidated Statement of Financial Activities for the Year Ended 31 December 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Totsl 2024 Nots Income and Endowments from: Donations and legacies Charitable activities Investment income Other income 80,200 7,500 395 866,820 80,200 7,500 395 866,820 Total income 954,915 954,915 Expenditure on: Raising funds Charilabl¢ activities (750,799) 166.879 (750,799) 166,879 Total expenditure 917,678 917,678 Net income 37,237 37,237 Net movetnent in funds 37,237 37,237 Reconciliation of funds Total funds brought forward 271,211 271,211 Total funds carried fonvard 18 308,448 Unre$trieted funds 308,448 Total 2023 Note Ineome And Kndowments from: Donations and legaGies Charitable activities Investment incom¢ Other income 235,078 4,167 546 805,215 235.078 4,167 546 805,215 Total inc0￿e 1,045,006 1,045,006 Ei xpeuditure on: Raising funds Charitable activities (723,201) 484,513 (723,201) 484,513 Total expenditure 1.,207,714 1,207,714 Net expenditure Net movcment in funds {162,708 162,708 (162,708) (162,708) Reconciliation of funds Total fluids brought forward 433,919 433,919 The noteg oil pages 15 to 28 fonn integrnl part of these fiiiancial sts.t¢in¢iits. Page 10 Keystone Education Trust Consolidated Statement pf Financial Activities for the Year Ended 31 December 2024 (Including Consolidated Income and Expenditure Account alld Statement of Total Recognised Gains and Losse￿) 1Snrestricted funds Total 2023 Note Total fullds carried forward 18 271,211 271,211 All of Ihe groiip's activities derive from Continuing operations diiring the above two periods, The ftinds breakdown for 2023 is shosvn in note 18. The note8 on pages 15 to 28 fonjh an integral part of these financial statements. Page 11 Keystone Education Trust Consolidated Balance Sheet as at 31 December 2024 2024 2023 Note Flxed assets Tangible assets 12 377,771 326,524 Curren* assets Stocks Debtors Ca811 at bank ￿la in hand 14 15 135,106 35,727 55,008 106,722 57,381 63,212 225,841 227,315 Creditors: Amoiints falling due within one year 16 95,164 82.628 Net eurrent assets 130,677 144,687 Total assets les5 current liabiliti 508,448 471,211 Creditors: Amounts falling due after mor¢ Ihan y¢ar 17 200,000) (200,000) 271,21L Net assets 308,448 Funds of the group: Unrestricted income funds lJnrestriGt¢d funds 308,448 271,211 Total funds 18 308,448 271,211 The fili ci&1 statements on pages 10 to 28 weie approved by tlie trnstees and authorised for issue on 2£. and signed on their behalf by: MrN Chief executive officeL' and trustee The notes on pages 15 to 28 fomi integral part of these financial statements. Page 12 Keystone Ei ducation Trust Balance Sheet as at 31 December 2024 2024 2023 Note Fixed assets Tangible assets Investin¢nts 12 357,354 302,363 357,357 302,366 Current assets Debtors Casli at ban1< and in hand 15 12,890 41,723 54,613 9,981 23,074 23,074 Creditors: Amounts falling due within one year Net current assets 16 (15,267 7,807 44,632 Total 2sset$ les$ currettt liAbiliti 365,164 346,998 Creditors: knounts falling due after more th4n Olle ye8r 17 200,000 200,000) Net assets 165,164 146,998 Fllnds of the eharity: Unrestricted income funds UnrestiuGt¢d fiu]ds 165,164 146,998 Total funds 18 165,164 146,998 The Icial statemellts on pages 10 to 28 were approved by the tnistees, and authorised for issue on and signed Oll tb¢ir belialf by.. MrN C,hief executive officer and t￿stee The llotes on pages I S to 28 fonn an iiitegral part of these financial statements. Page 13 Key8tone Education Trust Consolidated Statement of Cash Flows for the Year Ended 31 December 2024 2024 2023 Note Cash flows from operating Activities Net casb inGomel(expenditure) 37.237 (162,708) Adjustments to cash floivs from rton-La$h Items Depreciation Inve&tn]ent income 17,537 395 139,226 546 54,379 (24,028) Working c&pital adjustments Increase in stocks Decreasel(increase) in debto InCre￿¢/{d¢¢rea8e) in creditors Net cash flows from opei'ating activities Cash flow8 from investing activiti£s teiest receivable and Simil￿ income PLLrchase of tangible fixed assets Sale of tangibl¢ fixed assets Net Gash flows from investing activitiey 14 15 16 (28,384} 21,655 12,535 (9,299) (22,957) 10,720 60,185 (67,004) 395 {68,784) 546 12 (725 (68,389) (179) Net d¢Gr¢ase ITh cash wid G&sh equivalent8 (8,204} 63,212 (67, 183) 130,395 c.ash and Gash equivalents at l January Cash and cash equivalents at 31 December 55,008 63,212 All of thg ¢ash flows are derived from wntiniiing operation8 durAng the above two periods. The notes on pages 15 to 28 fortn all llltegMI part o'f thes¢ financial statements. Page 14 Keystone Educvdtion Trust Notes to the f4inancial Statements for the Year Ended 31 December 2024 l General Infonnation The Iceystone Education Trust 18 an iinincorporated Gharity {no.' 1096922) registered in England & Wales, The registered address 1.8 3 l Ystrad Road, Swansea, SA5 4B T. 2 Accounting policies Statement of compliance The fiLiaThcial statements have been prepared in accordance with A¢¢ounting and Reporting by Charities: Statrment of Recommended Practice (applicable to charities pr¢paring their aGcounts in accordance widi the FIn[￿claI Repoiting Standard applicable in the UK and Republic of Irell￿d (FRS 102)) (issued in October 2019) (Cknities SORP (FRS 102)). th¢ Finan¢ial R¢porting Standard applicable in the UK and RepLiblic of Ireland (FRS 102) and the Companies Act 2a06. Basis of preparation The financial stateinents have been prepared to give a ltiie and fair, vi¢w and have departed from the Charities (Account's and Repoits) regulations 2008 on]y to the extent required to provide a 'ts￿e and fair, view. This departiire bas involved following th¢ Chariti¢s SORP (Flis 102) published in October 2019 rather than the Accounting and Reporting Charities: Slaternent of Recomtnended Practice effeotive from l April 2005 which E]as sinr¢ been withdlawn. Keystone Education TrLlSt rneets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially r¢Gognised at histoii¢al cost or transaction value unless othei'wise stated in the relevant accounting policy not¢s. Basis of eonsolidxtion Tbe Consolidated statement of financial activities (SOFA) alld Con80lidated balan￿ sheet consolidate the financial statements of the Charty and its subsidiary imdertaking. The results of the subsidiary are consolidat¢d on a lin¢ by lin¢ basis. Tlie Charity has also taken advantage of the exemption available to a qualifying entity ill FRS 102 from the requirement to present a Charity only statement of cLqh flows and certaiii disclosures about the Charity's fillall¢ial instrumellts within the Gonsolidated financial statements. No separate SOFA has b¢¢ll prepared for the Charity alone. Page 15 Keystolle Education Trust Notes to the Financial Statements for the Year Ended 31 December 2024 A subsidiary is an entity conti'olled by the charity. Control is achieved where the Ch￿'Ity has th¢ Pcpwer to govein the financial and operating policies of an entity so as to obtain benefits from its activities. TIL¢ results of subsidiaries awuirKd or disposed of dliring the year are included in the statement of fitwioiaI activities fi'om the effective date of acqiiisition or lip to th¢ effective date of dispos&l, as appropriate. Where necessary, adjustments are made to the fiiwicial stat¢ments of 8ub8idiaries to bring tbeir &ccounting policies into liJJ¢ with those used by tlie groiip. The purchase method of acwunling is used to account for business rombinations that result in tb¢ acquisition of subsidiaries by tkn¢ groiip. The cost of a business combination is m¢asured as the fair value ot. the assets givcn, equily iiistruments issued and liabilities incurred or assumed at the date of exchange, plus costs direGÉIy atti-ibiitable to the busin¢s5 rombiL]ation. Identifiable a8sets acqiiired alld liabilities and contingent liabilities assumed in a biisin¢ss Gombinatlon are measured initially at their fair valiies at the acquisition date. Any excess Df the cost of th¢ business combiimtion over the acquirer's interest in the net fair value of th¢ identifiable assets, liabilities 2nd contingent liabilities recognised is recorded g4s goodwill. Inter-company transactions, balan¢¢s and unrealised gains Oll transactiolls between the charity and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but rnay indicate an impaimient that requires recognition in the consolidatsd financi&l statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net a3s¢ts of ¢ons0lidated subsidiaries aff id¢ntifi¢d separately frolli th¢ gLDUP'S ¢quity therein. Non-contt'olling interests cottsist of the atnount of those interests dt the datc of the original business combination and the non-controlling shareholder's share of changes in eouity since the date of the combination. Total compLthensive incorne is attributed to non-controlling illterests even if this resulls in tIL¢ non-controlling interests having a deficit balan¢¢. Going concern The tnistees coiisider that there are no mateTLal iincertainties abolit the group's ability to continue as a going concern nor any significant area5 of uncertainty tliat af£¢¢t th¢ carrying value of assets held by th¢ group. Page 16 Keystone Education Trust Notes to the Financial Statements for the Year Ended 31 December 2024 Income All inwme is reoogni5ed once the Cliarity has entitlement to the income, it is probable that the income will be received and the atnount of income r¢o¢ivable can bo measured reliably, The recognition of income from legt4cies is dependent on establishing entitlemeiit, the probability of receipt and the Mbility to estimate with sufficient aGciiracy the amoulll receivable. Evidence of entitlement to a legacy exists when the Charity has suffIcÉent evidence tknt a gift ha$ been l¢ft to them (through knowledge of the existence of a valid will and tlie deatli of tlie benefactor) and the executor is satisfied that the property in question will not be I'¢quir¢d to satisfy claims in the estate, Receipt of a legacy must be recognised when it is probable that it will be i'eceived and the fair value of the an]ount receivable, which will generally be the expected cash amount to be dÈstributed to the Ch￿￿ty, can be reliably measiired. Grants are included in the Consolidated stal'ement of fillancial activities Oll a receivable basis, The balance of income LEceived for specific purposes but not expended diiring the period is shown in the relevant funds on the Balance sli¢¢t. Wher¢ income is received in advance of entitlement of receipt, its recognition is defeThed and included ij) creditors as deferred income. Wberc entitlgmcnt occurs before income is received, the income is accrued. Incorn¢ tax reGover&ble in relation to investment income is recognised at the time the investtnent income is rec¢ivable. Other income lTrterest on funds held on deposit is included whcn receivable and the amoiint can be measured r¢liably by the Group. this is normally upou llotifiration of the interest paid or payable by the institution with whorn the funds are deposited. Expenditllre Expenditure is reCO￿liSed once there is a logal or constructive obligation to tratLsfer ecoi)omic ben¢fit to & third party, it is probable that a transfer of ewnomic benefits will be required in settlement ￿}d th¢ amoiiiit of the obligation can be M¢￿ulEd r¢liably. Expeiiditure is classified by activity. Expendiknre on charitsble activitie9 IS Lncuri'ed on directly undertaking tkn¢ a¢tivities which fiirther the Group's ObJ￿11VeS, as ￿11 as any associaled support costs. All expenditu￿ is inclusive of ittecoverable VAT. Tangible r￿ed Assets Tangible fixed assets costing £500 or more are capitalised and recognised when future econoinic beneflts are probable and the cost or value of the assct can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, langibl¢ fixed assets are measiir¢d at Gost less accumillated depreciation and ¥tny a¢¢umulated impairnient losses. All cost8 incLirr¢d to bring a t￿gible f￿ed asset into its intended workiiig condition sbould be incliided in the measurement of eost. Page 17 Im its trading Subsidiary. Page 28