Grace Foundation (A Company Llmltod by Guarantee) (Registered Number 50032761 {Charily Number 11030211 Annual Report and Financial Statements Year Ended 31 August 2021 IBDO
Grace Foundation IA Company Llmlted by Guarantee) Annual report and flnanclal statements for the year endgd 31 August 2021 Contgnts Pago: Trustees annual report Independent examiner's report lo the Iruslees Statement of financial activities Balance sheet Notes forming parl of the financial statements Trustegs Lord Edmislon Lady Edmislon A M Edmislon Secretary G E Hutton Correspondonce address and reglstered offlce The Gale, Internallonal Drive, Solihull, B90 4WA Reglstered Charlty number 1103021 Reglstered number 5003276 Accountants and Independent examlner BDO LLP, 2 Snow Hlll, Birmingham, B4 6GA Bankers Nalwest Bank PLC. St Philips Place, Birmingham, B3 2PP
Grace Foundation IA Company Llmlted by Guaranteg) Trust99s' annual report for the year ended 31 August 2021 Trustees, Report The Trustees have pleasure in submilling their Report and Financial Statements for the year ended 31 August 2021. The Foundation is a company limited by guarantee. The liability of members in the ev&nl of the charity being wound up is limited to a sum not exceeding ten pounds each. The cofflpany is governed by a Memorandum and Articles of Association which were last amended on 3 April 2004. The Memorandum of Assctialion sets out the company's investment powers. Roference and admlnlstratlve detall Grace Foundation is a registered charity, number 1103021. The charity Iruslees during the year ended 31 August 2021 and at Ihe dale of signing this report were: Lord Edmislon Lady Edmiston A M Edmiston OblgGtlvgs, Pollclès and Organlsatlon The Foundation was incorporated on 24 December 2003 with ils objectives being the advancement. for the public benefit, education in the United Kingdom by promots'ng the establishment, maintenance. carrying on, management and development of schools wlh a Christian olhos and in accordance with Christian principles. The Trustees, who are Directors of the Company. are set out on the first page of these financial slalements. We have referred to the guidance contained in tho Charity Commission's general guidance on public benefit when reviewing our airn and objectives and in planning our future aclivilies. In particular. the trustees consider how planned activities will contribute lo the aims and objectives they have set. Rglatlonships wlth Other Bodlès During the year, The Foundation continued lo contribute towards the work carried out by Tove Learning Trust who operate a chain of Academies based around the Midlands, Norlhamplonshire and Milton Keynes. They provide education for pupils of different abilities between the ages of 11 and 19. In the 2021-22 Academic year they will slarl to work with other Mulli-Academy Trusts such as Inviclus Education Trust. Developmgnts, Activities and Achlevements The foundation continues lo work within Tove Learning Trust to support young people and their families. We place curriculum leaders. ethos youth workers and family support workers into schools lo work directly th students lo make a holistic impact. We also operate a Central team of specialists who SUPPOTI leaching of holistic subjects such as Relationships and Sex Education. This work has been recognised by external agenciès such as OFSTED and is measured by statistics, sludenvparent voice and stories of transformation. During the year there was significant output by the team despite the global pandemic disruptions across their core themes of Developing Character & values, Building Healthy Relationships and Understanding Christian Perspectives. This included 197,000 sludenl engagements, 6820 Family Inlervenlions, 3218 Support Group places and over 1287 mentoring sessions. The Foundation will Continue to disburse funds lo the Grace Academy schools who have continued lo sponsor Ethos Workers and provided funding lo carry out the development of the Christian Ethos within Tove Learning Trust. In addition lo this the Foundation now employs staff directly and they are based in an expanding number of schools.
Grace Foundation {A Company Limited by Guarantee) Trustees, annual report for the year ended 31 August 2021 {contlnued) Reserves Pollcy The general funds are used by the Foundation to fund future dislribulions to the Academies. The Trustees have tried lo maintain reserves by matching the level of incoming resources lo the level of expenditure. Th8 Trustees remain aware of the level of the funds and Confirm that all reserves shall be used to pursue the Foundations future objectve$. Unreslrlcled reserves were £136,561 as at 31 August 2021 12020 - £61,217 deficit) Flnanclal Revlew The Foundation received income of £896,90212020 - £456,350) during the year. Total outgoing resources were £699,124 (2020- £624,375) for the year. The Foundation is dependent upon donations to safeguard its long term future. Golng Concem and rlsk revlew Grace Foundation aims to continue and expand its current acllvity and will primarity be funded by donations from l.m. Group Limited. The trustees have agreed budgeted charitable activity for the period of al least twelve months from the dale of approval of the accounts and have sought assurances from th8 Directors of l.m. Group Limited that they will continue lo make contributions in line with this budget. The Trustees have considered the impact of the Covid-19 pandemic on their business operations and cashftow forecasts. The Trustees are taking all reasonable steps to continue the operations of the Foundation complying with government rules and safety guidelines. The Trustees have further sought assurances from the Directors of l.m. Group Limited of the financial slr8nglh and liquidity of l.m. Group Limited to continue lo fund GTace Foundation and allow it lo Gonlinue lo satisfy ils operational objectives and honour firsancial obligations as they fall due. Trustegs A list of trustees is shown on the front shoel to the arcounls. The Appoinler lo the charity is Lord Edmislon. The Appointer has th8 ultimate power to appoint and remove trustees. The training and induction provided for Trustees will depend on their existing experience. Where necessary induction will provide training on charity and educational legal and financial mallers, inductlon lends lo be done informally and is tailored specifically to the individual. In preparing the Trustees, reFXXt advantage has been taken of the small companies, exempllon. Approved by the board of Iruslees and signed on their hall on A M Edmiston Trustee Dale 5 April 2022
Grace Foundation IA Company Llmited by Guarantee) Independent examlner's report to the trustees of Grace Foundatlon for the year ended 31 August 2021 I report on the charity Trustees on the accounts of the Cornp8ny for the year ended 31 August 2021, which are set out on pages 5 10 14. This report is made solely to the charity's Iruslees, as a body, in accordance with Regulation 31 of the Charllies IA¢¢ounls and Reports) Regulations 2008. My work has been undertaken so that I might stale lo the charity's Iruslees those mallers l am required to stale to them in an independ8nl 8xamineVs report and for no other purpose. To the fullest exlenl permilled by law, I do not accept or assume responsibility lo anyone other than the Charity's Iruslees as a body. for My work, for this report, or for the statement I have made. Responsibilities and basls of rèport As the charit$ Iruslees of the Company land also ils dire¢tors for the purposes of company lawl you are responsible for the preparation of th8 accounts in accordance wlh the requirements of the Companies A¢1 20061'lhe 2006 ACVI. Having satisfied myself that the acwunts of the Company are not required to be audited under Part 16 of the 2006 Act and are eSigible for independent examination, I report in respect of my 8xaminalion of your ¢harity's accounts as carried oijt under section 145 of Ihg Charities Act 2011 {'Ihe 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515) {bl of Ihtr 2011 A¢t. Independent examiner's statement Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified lo undertake the ex8minali(¥) because l am 8 member of ACCA, which is one of the listed b¢xlies. I have completed my examination. l ¢onfirm that rK) rnatters hav8 come to my allention in Connection with the examination giving me cause to believe.. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act.. or the accounts do not a¢¢ord with those records., or the accc>unls do not comply ¥Mlh the accounting requiremanls of section 396 of the 20C16 Act other than any requirtsmenl that the accounts give a 'lrue and fairf view which is not a maller considered as part of an independent examination., or the accounts have not been prepared in accordance with tho methods and principles of the Statement of Recommended Pra¢ti¢e for accounting and reporting by charities, appli¢able lo charities preparing their accounts in accordan¢8 with the Financial Reporting Standard appli¢able in the UK and Republic of Ireland IFRS 102}. I have no concsrns and have come across no other mallers in connection with the examination lo which allenlion should be drawn in this report in order lo enable a proper underslan(Sing of the accounts lo be reached. DO¢u$nId by.. yfta'a8filfF4atr' Chartered Certified Accountant BDO LLP 2 Snow Hill Birmingham B4 6GA Dale 25 April 2022 BDO LLP is a limited lialilily partnership registered in England and Wales {wilh registered number OC3051271.
Grace Foundation {A Company Llmlted by Guarantee) statement of flnancial activities for the year ended 31 August 2021 Note 2021 2020 Income from: Donations Grant income 894.766 2.136 437,200 19,150 Total Income 896.902 456,350 Expenditure on.. Charitable expenditure 699.124 624.375 Net Income l (expendlture) 197,778 (168,0251 Fund balarte brought forward al 1 September 12 (61,2171 106,808 Fund balances carrled forward at 31 August 12 136,561 (61,2171 All disclosures relate only lo continuing operation8. There are no recognised gains or losses other than those disclosed above. The notes on pages 8 to 14 form parl of these financial slatemenls.
Grace Foundation IA Company Llmited by Guarantee) Balance sheet as at 31 August 2021 Company number 5003276 Note 2021 2021 2020 2020 Non-current assets Tangibl8 fixed assets 1,885 2,828 Current assets Debtors Cash al bank and in hand 2.377 182,414 236 46,270 Credltors: amounts falllng du9 wlthln one year 10 {50.115) 1110,5511 Not current assets l {Ilabllltles) 134.676 164,0451 Total assets less current Ilabllltles 136,561 {61,217} The funds of the charlty: Unrestricted funds 12 136.561 161,217) For the year ended 31 August 2021 the company was enlilled lo ex8mption from audit under section 477 of the Companies Act 2006 relating to small companies. The membars have not required the company to obtain an audit of its financial statements for the year in queslion in aGcordance with section 476. The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions applicable lo companies subject to the small companies, regime. Approved by the Board of Trustees and signed on their behalf on A M Edmiston Trustee Dale 5 April 2022 The notes on pages 8 to 14 form part of these financial slalemenls.
Grace Foundation IA Company Llmlted by Guarantee) Stat9mgnt of cash flows as at 31 August 2021 Note 2021 2020 Cash flows from operatlng actlvltles Cash provided by operating activities 14 136,144 {61.4071 Cash flows from Investlng actlvltles Purchase of equipment (3.771) Increasel{decreasel in cash and cash equivalents in the year 136.144 {65.178) Cash and cash equivalents al the beginning of the year 46.270 111,448 Total cash and cash equlvalents at the end of th9 year 182,414 46.270 Analysls of cash and cash equlvalents Cash at bank and in hand 182,414 46.270
Grace Foundation {A Company Llmlted by Guarantee) Notes to the accounts for the year ended 31 August 2021 Accountlng pollclès Basls of preparatlon The financial slalements have been prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice} and comply with the statement of Recommended Practice {SORPI Accounting and Reporting by Charities FRS 102 effective from January 2019. The financial statements are prepared under the historic cost convention. The financial statements are prepared in pound sterling 1£) and the figures are rounded lo tho nearest £. Judgements In applylng accountlng pollcles and key sourcgs of gstimation uncertalnty In preparing these financial slalements, the Trustees and Directors have madejudgements. the details of which are included in tho following accounting policies. Going conc&m Grace Foundation aims to continue and expand ils current activity and will prlmarily be funded by donations from l.m. Group Limited. The trustees have agreed budgeted charitable activty for the period of al least twelve months from the Balance Sheet date and have sought assurances from the Directors of l.m. Group Limited thal they will continue lo make contributions in line with this budget. The Trustees have considered the impact of the Covid-19 pandemK on thelr buslness operations and cashflow forecasts. The Trustees are taking all reasonable steps lo continue the operations of the Foundation complying with government rules and safely guidelines. The Trustees have further sought assurances from the Directors of l.m. Group Limited of the financial strength and liquidity of l.m. Group Limited lo continue to fund Grace Foundation and allow il to continue lo satisfy its operational objectives and honour financial obligations as they fall due. The charity has taken assurances from the directors of l.m. Group Limited that the group will continue to make charitable donations lo satisfy the ongoing working capital requirements of Grace Foundation for a period of at least twelve months from the approval dale of these financial slalemenls. Accordingly, the Iruslees consider it appropriate lo prepare these financial statements on a going concern ba81$. Fund accounting Unrestricted funds Unrestricted funds comprise the accumulated deficillsurplus on the slalement of fnancIal activities. They are available lor use al the discretion of the Iruslees in furtherance of the general objectives of the charity and are retained for workin9 capital purposes. Income Donations and other income are recognlsed within the slalemenl of financl81 activities when receivable. Expenditure Expenditur8 has been Gharged lo the slalem8nl of financial activities on an accruals basis. Govemm8nt grants Government grants are recognised when il is reasonable to expect that the grants will be receThied and that all related conditions will be met usually on submission of a valid claim for payment.
Grace Foundation {A Company Limited by Guarantee) Notes to the accounts for the year endod 31 August 2021 {contlnued) Accountlng pollcles Basls of preparatlon Icontlnued) Direct chaTitable expenditure relates lo the donations made in the period. Donations payab are payments made to third parties in the furtheran of the charitable objectives of the TrusL Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the management of the charity. Operating leases Rentals applicable lo operating leases are charged lo the Statement of Financial Actlvlty over the perlod In whlch the cost is incurred. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at Irans8clion value and subsequently measured at their selllemenl value with the exception of bank loans which are subsequently measured 81 amorlised cost using the effective interest method. Pension costs Contributions to the company's defined contribution penslon scheme are Gharged to the profil and loss account in the period in which they become payable. Taxaln The company is a charity wlthin the meaning of Par8 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempl from taxation in respect of income or capital gains wilhln categories Covered by Chapter 3 of Parl 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to Gharilable purposes. No lax charge arose in the period. Tangible fixed assets Tangible fixed assets under the cost model are slated al hlstorical cost less aGGumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly allribulabl8 lo bringing the assets to the location and condition necessary for it to be capable of operating in the manner inlerKled by management. The company adds lo the carrying amount of an item of fixed assets the cost of replaclng parl of such an item when that cost is incurred, if the replacement part is expected lo provide incremental future benefits lo the company. The carrying amount of the replaced parl is derecognised. Repairs and maintenance are charged to the statement of financi81 activities during the period in which they are incurred. Depreciation is provided on the following basis.. Computer equipment 250A Slraighl line The assets. residual values, useful lives and depreciation methods are reviewed. and adjusted prospectively If appropriate, or if there Is an indication of a significant change since the last reporting dale. Gains and losses on disposals are determined by comparing the proGeeds with the carrying amount and are recognised within adminislralive expenses in the Statement of financia5 aclivilies
Grace Foundation IA Company Limited by Guarantee) Notes to the accounts for the year ended 31 August 2021 (contlnu8d) Donations 2021 2020 Donations 894,766 437,200 Grants 2021 2020 Government granls 2,136 19,150 Dlrect charltab19 expendlture 2021 2020 Ethos fund expenses Personnel costs Governance costs {note 5) Depreciation Tove Learning Trust 93,742 447,291 4,477 943 152,671 56,820 217,692 5,490 1,252 343,121 699,124 624,375 Etho8 Fund expenses includes travel, meeting, phone costs and Education support costs. Governance costs 2021 2020 Bank charges Legal and professional fees Indep8nd8nt examiner fees 57 2,033 3,400 285 4,183 4.477 5,490 10
Grace Foundation (A Company Llmlled by Guarantee) Notes to the accounts for the year ended 31 August 2021 (contlnugd) Net Income I lexpendlturel 2021 2020 Net income I lexpenditurel is staled after charging.. D8precialion Independent examiners fees 943 4.183 1.252 3.400 staff costs 2021 2020 Salaries National insurance Pension costs 341,406 25,096 35,097 156,694 6,190 12,817 401.599 175,701 Average number of persons employed by the charity during the year (excluding Trusleesl analysed by function.. Number Numbèr Management and administration of the charity Ethos and support workers 13 There were no employees included above whose earnings (including taxable benefits in kind} exceeded £60,000. {2020 - £Nil) No trustees received any emoluments or were reimbursed any expenses during the year. The key management personnel comprise the trustees whose employee benefits total £Nil {2020 - £Nill. 11
Grace Foundation IA Company Limited by Guarantee) Notes to the accounts for the year ended 31 August 2021 (continued) Flxed assets Computer equipment Cost Al 1 September 2020 and al 31 August 2021 5,008 Depreclatlon Al 1 September 2020 Provided for during the year 2,180 943 At 31 August 2021 3.123 Net book value At 31 August 2021 1,885 Al 31 August 2020 2,828 Dobtors 2021 2020 Prepayments Other debtors 2,377 236 2,377 236 10 Cradltors.. amounts falllng due wlthln one year 2021 2020 Accruals and deferred incomo Other creditors Taxation and social security 34,421 7,075 8,619 94,233 11,048 5,270 50,115 110,551
Grace Foundation (A Company Llmited by Guarantee) Notes to the accounts for the year ended 31 August 2021 (contlnued) 11 Flnanclal Instruments 2021 2020 Flnanclal assets Cash and cash equivalents Financial assets that are debt instruments measure al amorlised cost 182,414 46,270 236 182,414 46,506 Flnanclal Ilabllltlès Financial liabilities measured al amortised costs 41,496 105.402 Financial assets measured at amorlised cost comprise other debtors and prepayments. Financial assets also include cash arml cash equivalents. Flnancial liabilities measured at amortised cost comprise other creditors and arUal$. 12 Movemènt In funds At 1 September 2020 At 31 August 2021 Incoming resourcos Outgoing rg$ourc8s Unrestricted funds {61,2171 896,902 1699,124) 136,$61 Movement In funds Iprlor yearl At 1 September 2019 At 31 August 2020 Incomlng resources Outgoing resources Unrestricted funds 106,808 456,350 1624,375) 161,2171 13 Pensions The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge arrK)unted to £35.097 12020 - £12.8171. There were outstanding contributions of £Nil12020- £Nil) al the end of the financial year. 13
Grace Foundation IA Company Llmlted by Guarantee) Notes to the accounts for the year ended 31 August 2021 (contlnuedj 14 Reconciliatlon of incomel{expendlture) In funds to net cash flow from QP9rating activities 2021 2020 InGomellexpendilure} in funds Add back depreciation charge IlncreasellDecrease in debtors IncreasellDecreasel in creditors 197.778 943 12.1411 160.4361 {168.0251 1,252 105,366 Nel cash provided by operating aclwities 136.144 61,4071 15 Related party transactlons During tho year the company made payments of £152.671 12020 - £343,121) lo Tove Learning TTUSt, a company in which Lord and Lady Edmiston are directors. The charity deals with Tove Learning Trust on an arm's length basis. £31,699 was outstanding in the Cuent y8ar12020 - £88,659). During the yoar donations of £894,76612020 - £430.0001 were received from l.M.Group Limited, a company which Lord Edmislon indireotly owns 100Vv of the issued share capital. Radical Outreach Limited is a company owned and controlled by a family member of Lord Edmiston. During the year Radical Outreach Limited provided consultancy services to Grace Foundation and received £20.161 {2020- £18,844). £Nil was oulslanding in the Gurrenl year12020 - £1,571 }. 14
This DEED is made the 24 day of March 2022 between l.m. Group Limlted of The Gate, International Drive, Sollhull, B90 4WA I'IMG") and Grace Foundatlon of The Gate. International Drive, Solihull B90 4WA I"Grace'l. Now it Is agreed as follows.. I. IMG and its directors hereby agree that It shall continue to provlde funding and flnancial assistance to Grace, a registered charity, forthe period from the date of thls Deed and ending 30 April 2023 In a sum sufficientfor Grace to be able to continue to operate as a going conrn and to meet all of its flnancial obligations to its creditor5 UP to a limit of £1.5million. 2. Thls Deed is subject to the laws of England and Wales and the Courts of England shall have exclusive jurisdiction to determine any dlspute relating to It. Executed as a Deed the day and year above written.. Executed by Gary Hutton on behalf of l.m. Group Llmlted: Executed by Gary Spicer on behalf of Grace Foundatlon: