**Charity Registration No. 1097945** **Company Registration No. 04609187 (England and Wales)** ## **KNOWSLEY ENTERPRISE ACADEMY** # **COMPANY LIMITED BY GUARANTEE** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mr Aliyes Hassan| |---|---| ||Mr James Hignett| ||Mr Graham Archibald| ||Mr Stephen Dumbell| ||Ms June Bradshaw| ||Mr John Garvey| ||Mr Dave Harwood| ||Mr John Reynolds| ||Mr Barry Gilfoyle| ||Mr Stephen Davies| |**Secretary**|Mr James Hignett| |**Charity number**|1097945| |**Company number**|04609187| |**Principal address**|North Mersey Business Centre| ||Woodward Road| ||Knowsley Industrial Park| ||Merseyside| ||L33 7UY| |**Registered office**|North Mersey Business Centre| ||Woodward Road| ||Knowsley Industrial Park| ||Merseyside| ||L33 7UY| |**Independent examiner**|Mr Peter Taaffe FCA CTA DChA| ||BWM| ||Castle Chambers| ||43 Castle Street| ||Liverpool| ||L2 9SH| |**Bankers**|Lloyds Bank plc| ||Merchants Court| ||2-12 Lord Street| ||Liverpool| ||L2 7XT| **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Statement of trustees' responsibilities|4| |Independent examiner's report|5| |Statement of financial activities|6 - 7| |Balance sheet|8| |Notes to the accounts|9 - 21| **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## The trustees present their report and accounts for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016) . ## **Objectives and activities** Knowsley Development Trust announced the establishment of the Knowsley Youth Enterprise Academy, whose main objective is to use knowledge and encourage progression by Knowsley's youth regardless of their education or economic status to boost enterprise opportunities and have consistently covenanted monies to enable the charity to develop work around this theme. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** ## Ormside Education Centre Our main focus during this year has been Ormside Education Centre. While we have been unable to accommodate visitors due to the on-going pandemic, we have been able to move forward with the new build project. 0% VAT was achieved with the assistance of BWM, meaning that costs of the new build can be kept to a minimum. The 0% rating was awarded due to the fact that Ormside is for educational use only. A bid was also put into Sport England, for a fund of up to £150,000.00. KEA were awarded £75,000.00 which will greatly assist. This fund will be accessed in the current year once invoices are received for various aspects of the project. Phase 8 Development Company Ltd completed work on the timber frame & stair pack at their factory on Arbour Lane in Knowsley. The frame will be held there until it is required on-site in Cumbria. ## Other Projects Unfortunately, during this year, we were unable to run the NeetTV Film Project, Arts Festival & the JASON project. This was due to the pandemic & the government rules that were in place in regard to social distancing etc. ## Staffing No new staff were recruited during the year. ## **Financial review** Income for the year ended 31 March 2021 amounted to £78,709 (2020: £77,325). The Statement of Financial Activities gives details of total expenditure for the period of £107,342 (2020: £78,662), resulting in net expenditure in the year to 31 March 2021 of £28,633 (2020: £101,337). This brought the total funds of the charity to £392,786 of which £338,781 have been designated for ongoing and future projects. ## **Reserves policy** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level to meet at two years' staffing and operational costs less donated staff and premises costs. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. - 1 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ The main purpose of this policy is to eliminate any potential liability to the charity and to reduce the dependency on public funding. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to manage exposure to the major risks. ## **Plans for the future / Covid-19** Our main focus is again, the new build at Ormside Education Centre. On-site work has now begun to create the foundations prior to the timber frame being erected. The project is moving forward & we aim to have all of the works completed in time for March 2022, when bookings will commence for the end-of-year residential visits. Funds were received from Sport England for the timber frame & stair costs, in the sum of £59,500. Further invoices will be raised when received for other aspects of the build, with a further £15,500 available from the fund. The Arts festival is currently in planning for commencement in May/June 2022, with the aim of a September 2022 auction event. The NeetTV Film Project & JASON Project will go into planning over summer 2022 to commence in September 2022. We have recruited a new staff member as of August 2021, who is focusing on the social media presence of KEA as well as KDT & Phase 8 Development Company Ltd. He will assist with projects going forward. ## **Structure, governance and management** The charity is a company limited by guarantee, established to regenerate areas of social and economic deprivation and in particular the Borough of Knowsley. The company was incorporated on 5 December 2002 (company registration number 4609187) and registered as a charity on 11 June 2003. The trustees, who are also the directors for the purpose of company law, who served during the year were: Mr Aliyes Hassan Mr James Hignett Mr Graham Archibald Mr Stephen Dumbell Ms June Bradshaw Mr John Garvey Mr Dave Harwood Mr John Reynolds Mr Barry Gilfoyle Mr Stephen Davies None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of winding up. No person shall be admitted a member of the Charity unless their application for membership is approved by the trustees. The Trustees in their absolute discretion may permit any member of the Charity to retire, provided that after such retirement the number of members is not less than two. - 2 - ## **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Small companies provisions** This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. On behalf of the board of trustees ## **Mr Stephen Dumbell** Trustee Dated: 26 October 2021 - 3 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ The trustees, who are also the directors of Knowsley Enterprise Academy for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these accounts, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 4 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KNOWSLEY ENTERPRISE ACADEMY** I report to the trustees on my examination of the financial statements of Knowsley Enterprise Academy (the charity) for the year ended 31 March 2021. This report is made solely to the charity's trustee s , as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustee s those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my examination, for this report, or for the opinions I have formed. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable d irections given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **Mr Peter Taaffe FCA CTA DChA** BWM Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9SH Dated: 29 October 2021 - 5 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Current financial year**
**Unrestricted Designated**
**Restricted**
**funds**
**funds**
**funds**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
53,900
20,000
-
Investments
**4**
43
-
-
Other income
**5**
4,766
-
-
**Total income**
58,709
20,000
-
**Expenditure on:**
Charitable activities
**6**
103,528
3,601
213
Transfers between funds
**14**
(213)
-
213
**Net movement in funds**
(45,032)
16,399
-
Fund balances at 1 April 2020
99,037
322,382
-
**Fund balances at 31 March 2021**
54,005
338,781
-|**Total**
Total
**2021**
2020
**£**
**£**
73,900
74,000
43
180
4,766
3,145
78,709
77,325
107,342
178,662
-
-
(28,633)
(101,337)
421,419
522,756
392,786
421,419| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 6 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Prior financial year** |**Prior financial year**|||||| |---|---|---|---|---|---| |||**Unrestricted**|**Designated**|**Restricted**|**Total**| |||**funds**|**funds**|**funds**|| |||**2020**|**2020**|**2020**|**2020**| ||**Notes**|**£**|**£**|**£**|**£**| |**Income from:**|||||| |Donations and legacies|**3**|44,000|-|30,000|74,000| |Investments|**4**|180|-|-|180| |Other income|**5**|3,145|-|-|3,145| |**Total income**||47,325|-|30,000|77,325| |**Expenditure on:**|||||| |Charitable activities|**6**|87,624|36,977|54,061|178,662| |**Net income/(expenditure)**||(40,299)|
(36,977)|(24,061)|(101,337)| |Transfers between funds|**14**|(24,061)|
-|24,061|-| |**Net movement in funds**||(64,360)|
(36,977)|-|(101,337)| |Fund balances at 1 April 2019||163,397|359,359|-|522,756| |**Fund balances at 31 March 2020**||99,037|322,382|-|421,419| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 7 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE BALANCE SHEET** ## _**AS AT 31 MARCH 2021**_ |**Notes**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Funds of the charity**
Unrestricted funds
Designated funds
**15**
General unrestricted funds|**2021**
**£**
7,876
354,736
362,612
(5,432)
338,781
54,005|**£**
35,606
357,180
392,786
392,786
392,786|**2020**
**£**
4,667
385,186
389,853
(8,878)
322,382
99,037|**£**
40,444
380,975
421,419
421,419
421,419| |---|---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021. The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accounts were approved by the Trustees on 26 October 2021 Mr Stephen Dumbell **Trustee Company Registration No. 04609187** - 8 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **Charity information** Knowsley Enterprise Academy is a private company limited by guarantee incorporated in England and Wales. The registered office is North Mersey Business Centre, Woodward Road, Knowsley Industrial Park, Merseyside, L33 7UY. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. The Charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. ## **1.2 Going concern** At the time of approving the accounts and as detailed in the Trustees’ report the Trustees have considered the impact of Covid-19 on the charity and the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the accounts. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. ## **1.4 Income** Donations, legacies and other forms of voluntary income are recognised as income when receivable, except insofar as they are incapable of financial measurement. Bank interest is accounted for when received into charity's bank accounts. - 9 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** **(Continued)** ## **Donated services and facilities** Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that the economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. ## **1.5 Expenditure** Expenditure reflects all amounts paid and accrued during the year. Expenditure is allocated to charitable activities or governance costs. Charitable expenditure comprises all expenditure directly relating to the objectives of the charity. Value added tax is not recoverable by the charity and is included in the relevant cost in the statement of financial activities. Governance costs represent costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Property improvements 4% per annum straight line Plant and machinery 25% per annum straight line Fixtures, fittings & equipment 25% per annum straight line Computers 25% per annum striaght line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. - 10 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** **(Continued)** ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.10 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.11 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **1.12 Taxation** As a registered charity the Company benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The Company is not VAT registered. Expenditure is recorded in the accounts inclusive of VAT. - 11 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** |**Unrestricted Designated**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
(600)
-
Grants receivable for
core activities
10,500
20,000
Donated goods and
services
44,000
-
53,900
20,000|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
(600)
-
-
30,500
-
30,000
44,000
44,000
-
73,900
44,000
30,000|Total
2020
£
-
30,000
44,000
74,000| |---|---|---| Donations for 2021 are shown as a negative amount due to a credit being raised against funds received in 2019, there were no other donations in the year. |**Grants receivable for**
**core activities**
Covid-19 SBRR grant
Knowsley Metroplitan
Borough Council|10,500
-
10,500|-
20,000
20,000|10,500
20,000
30,500|-
-
-|-
30,000
30,000|-
30,000
30,000| |---|---|---|---|---|---|---| ## **Donated goods and services** Donated services were provided to Knowsley Enterprise Academy by KDT in the form of premises and staff costs. Premises costs total £20,000 (2020: £20,000) and is based on the actual rental income which KDT would expect to receive for the space provided. Staff costs total £24,000 (2020: £24,000) and are stated at the level of salary paid to each staff member by KDT during the year. - 12 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **4 Investments** |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2021**|2020| |||**£**|£| ||Interest receivable|43|180| |**5**|**Other income**||| |||**Unrestricted**|Unrestricted| |||**funds**|funds| |||**2021**|2020| |||**£**|£| ||Rental income recieved from sublet office space|4,766|3,145| - 13 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **6 Charitable activities** |Staff costs
Depreciation and impairment
Premises costs
Travelling expenses
Hire of equipment
Training & education costs
Project & marketing costs
Professional fees
Sundry expenses
NEET TV costs
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds
Designated funds
Restricted funds
**For the year ended 31 March 2020**
Unrestricted funds
Designated funds
Restricted funds|**2021**
**£**
59,512
4,839
33,801
68
-
-
-
-
172
213
98,605
8,737
107,342
103,528
3,601
213
107,342|**2020**
**£**
75,318
4,950
56,174
162
10,875
13,852
5,574
1,023
2,410
2,743
173,081
5,581
178,662
87,624
36,977
54,061
178,662| |---|---|---| - 14 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **7 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Independent
examination fees
-
1,080
Accountancy
-
5,340
Legal and professional
-
883
IT costs
-
1,276
Bank charges
-
158
-
8,737
Analysed between
Charitable activities
-
8,737|**2021**
Support
costs
Governance
costs
**£**
£
£
1,080
-
1,050
5,340
-
1,686
883
-
1,476
1,276
-
1,221
158
-
148
8,737
-
5,581
8,737
-
5,581|2020
£
1,050
1,686
1,476
1,221
148
5,581
5,581| |---|---|---| Governance costs have been recharged to charitable activities. Governance costs includes payments to the accountants for independent examiner's fees of £1 ,080 (20 20 : £1, 050 ) and accountancy fees of £ 5,340 (20 20 : £1, 686 ). ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration during the year, and n o trustee was reimbursed any expenses during the year (2020: none) . ## **9 Employees** ## **Number of employees** The average monthly number of employees during the year was: ||**2021**|**2020**| |---|---|---| ||**Number**|**Number**| |Activities undertaken directly|1|2| |**Employment costs**|**2021**|**2020**| ||**£**|**£**| |Wages and salaries|58,663|72,839| |Social security costs|-|1,557| |Other pension costs|849|922| ||59,512|75,318| Employee costs include donated staff costs from KDT for the amount of £24,000 (2020: £24,000). There were no employees whose annual remuneration was £60,000 or more. - 15 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **10 Tangible fixed assets** |**Property**
**improvements**
**Plant and**
**machinery**
**Fixtures,**
**fittings &**
**equipment**
**Computers**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2020
37,516
3,360
27,943
34,122
At 31 March 2021
37,516
3,360
27,943
34,122
**Depreciation and impairment**
At 1 April 2020
4,502
1,329
27,820
28,845
Depreciation charged in the year
1,501
840
123
2,375
At 31 March 2021
6,003
2,169
27,943
31,220
**Carrying amount**
At 31 March 2021
31,513
1,191
-
2,902
At 31 March 2020
33,014
2,030
123
5,277|**Total**
**£**
102,941
102,941
62,496
4,839
67,335
35,606
40,444| |---|---| Improvements include refurbishments costs of £37,516 for the Ormside site in Cumbria . During the year the deed to the property was transferred to Knowsley Enterprise Academy, the trustees intend to have the property valued after the extension works are complete. |**11**
**Financial instruments**
**Carrying amount of financial assets**
Debt instruments measured at amortised cost
**Carrying amount of financial liabilities**
Measured at amortised cost
**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments|**2021**
**£**
358,260
5,432
**2021**
**£**
2,539
4,556
781
7,876|**2020**
**£**
388,288
8,878
**2020**
**£**
3,113
-
1,554
4,667| |---|---|---| - 16 - ## **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **13 Creditors: amounts falling due within one year** |Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
-
282
5,150
5,432|**2020**
**£**
5,858
284
2,736
8,878| |---|---|---| - 17 - ## **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **14 Restricted funds** Restricted fund consists of the following projects: ## **Movement in funds** |||**Balance at**|**Income**|**Expenditure**|**Transfers**|**Balance at**|**Expenditure**|**Transfers**|**Balance at**| |---|---|---|---|---|---|---|---|---|---| ||**1**|**April 2019**||||**1 April 2020**|||**31 March 2021**| |||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**| |NEET TV||-|30,000|(54,061)|24,061|-|(213)|213|-| NEET TV - a unique and innovative project focused on working with 16-19 year olds in Knowsley who are currently not in Education, Employment or Training (NEET). The aim of the project is to motivate and equip young people with skills to enhance their employability prospects. The overspend of £231 (2020: £24,061) has been funded from unrestricted funds. - 18 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **15 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |||||**Movement**|**in funds**|| |---|---|---|---|---|---|---| ||**Balance at**|**Expenditure**|**Balance at**|**Income**|**Expenditure**|**Balance at**| ||**1 April 2019**||**1 April 2020**|||**31 March 2021**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Ormside Project|239,359|(28,477)|210,882|20,000|(3,601)|227,281| |Jason Project|100,000|(7,500)|92,500|-|-|92,500| |Arts Festival|20,000|(1,000)|19,000|-|-|19,000| ||359,359|(36,977)|322,382|20,000|(3,601)|338,781| Ormside Project - during a previous year, the charity designated funding to the Ormside Centre, a centre based near Appleby in Cumbria, with the aim of providing youngsters of NEET TV the access to the facilities for both fun and educational purposes. During the current year £20,000 was donated from Knowsley Metropolitan Borough Council towards the costs of building an extension at Ormside. Jason Project - £100,000 was previously designated as a subsidy to employers to offer support and training through freelance tutors to help young people into employment with local businesses. £92,500 is remaining and has not been spent in the year due to all projects being on hold because of Covid-19. Arts Festival - £20,000 was previously designated to help fund the upcoming Festival, now postponed due to Covid-19. - 19 - ## **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**16**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 March 2021 are represented
by:
Tangible assets
4,093
31,513
-
Current assets/(liabilities)
49,912
307,268
-
54,005
338,781
-|**Total**Unrestricted
funds
Designated
funds
Restricted
funds
**2021**
2020
2020
2020
**£**
£
£
£
35,606
7,430
33,014
-
357,180
91,607
289,368
-
392,786
99,037
322,382
-|Total
2020
£
40,444
380,975
421,419| |---|---|---| - 20 - **KNOWSLEY ENTERPRISE ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **17 Related party transactions** Knowsley Enterprise Academy is a charitable venture, limited by guarantee and set up by Knowsley Development Trust Ltd. Knowsley Development Trust Ltd is a not for profit organisation operating from North Mersey Business Centre. All Trustees of Knowsley Enterprise Academy are also directors of Knowsley Development Trust Ltd. During the financial year Knowsley Development Trust provided staff and office facilities free of charge to Knowsley Enterprise Academy totalling £24,000 (2020: £24,000) and £20,000 (2020: £20,000) respectively. There were no other transactions with Knowsley Development Trust Ltd during the current or previous year. Mr S Dumbell, Mr J Garvey, Mr D Harwood, Mr A Hassan, Mr J Hignett and Mr J Reynolds are also directors of Your Travel Borough Wide Ltd. There were no transactions with Your Travel Borough Wide Ltd in the current year (2020: expenditure of £10,875). Mr A Hassan and Mr S Dumbell are also directors of Phase 8 Development Company Limited (a 100% owned subsidiary of Knowsley Development Trust Ltd.). There were no transactions with Phase 8 Development Company Limited in the current year (2020: expenditure of £2,640). Mr S Davies is also a director of Structec (N.W.) Limited. There were no transactions with Structec (N.W.) Limited in the current year (2020: rental income of £203). There are no other related party transactions. ## **18 Company limited by guarantee** Knowsley Enterprise Academy is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £10. - 21 -