Grace Foundation
(A Company Limited by Guarantee)
(Registered Number 5003276) (Charity Number 1103021)
Annual Report and Financial Statements
Year Ended
31 August 2022
Grace Foundation (A Company Limited by Guarantee)
Annual report and financial statements for the year ended 31 August 2022
Contents
Page:
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2 Trustees annual report 5 Independent examiner's report to the trustees 6 Statement of financial activities
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7 Balance sheet
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8 Statement of cash flows
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9 Notes forming part of the financial statements
Trustees
Lord Edmiston Lady Edmiston A M Edmiston
Secretary
G E Hutton
Correspondence address and registered office
The Gate, International Drive, Solihull, B90 4WA
Registered Charity number
1103021
Registered number
5003276
Independent examiner
Heather Wheelhouse ACA, BDO LLP, R+, 2 Blagrave Street, Reading, Berkshire, RG1 1AZ
Bankers
NatWest Bank PLC, St Philips Place, Birmingham, B3 2PP
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Grace Foundation (A Company Limited by Guarantee)
Trustees’ annual report for the year ended 31 August 2022
Trustees' Report
The Trustees have pleasure in submitting their Report and Financial Statements for the year ended 31 August 2022. The Foundation is a company limited by guarantee. The liability of members in the event of the charity being wound up is limited to a sum not exceeding ten pounds each. The company is governed by a Memorandum and Articles of Association which were last amended on 3 April 2004. The Memorandum of Association sets out the company's investment powers.
Reference and administrative detail
Grace Foundation is a registered charity, number 1103021.
The charity trustees during the year ended 31 August 2022 and at the date of signing this report were:
Lord Edmiston Lady Edmiston A M Edmiston
Objectives, Policies and Organisation
The Foundation was incorporated on 24 December 2003 with its objectives being the advancement, for the public benefit, education in the United Kingdom by promoting the establishment, maintenance, carrying on, management and development of schools with a Christian ethos and in accordance with Christian principles. The Trustees, who are Directors of the Company, are set out on the first page of these financial statements.
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
Relationships with Other Bodies
During the year, The Foundation continued to contribute towards the work carried out by Tove Learning Trust who operate a chain of Academies based around the Midlands, Northamptonshire 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 start to work with other Multi-Academy Trusts such as Invictus Education Trust.
Developments, Activities and Achievements
The foundation continues to 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 to work directly with students to make a holistic impact. We also operate a Central team of specialists who support teaching of holistic subjects such as Relationships and Sex Education. This work has been recognised by external agencies such as OFSTED and is measured by statistics, student/parent 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 student engagements, 6820 Family Interventions, 3218 Support Group places and over 1287 mentoring sessions.
The Foundation will continue to disburse funds to the Grace Academy schools who have continued to sponsor Ethos Workers and provided funding to carry out the development of the Christian Ethos within Tove Learning Trust. In addition to this the Foundation now employs staff directly and they are based in an expanding number of schools.
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Grace Foundation (A Company Limited by Guarantee)
Trustees’ annual report for the year ended 31 August 2022 (continued)
Reserves Policy
The general funds are used by the Foundation to fund future distributions to the Academies and to maintain appropriate financial headroom.
The Trustees have tried to maintain reserves by matching the level of incoming resources to the level of expenditure. The Trustees remain aware of the level of the funds and confirm that all reserves shall be used to pursue the Foundations future objectives. Unrestricted reserves were £141,254 as at 31 August 2022 (2021 – £136,561). The Foundation targets positive unrestricted reserves of at least £100,000.
Financial Review
The Foundation received income of £893,415 (2021 - £896,902) during the year. Total outgoing resources were £888,722 (2021- £699,124) for the year. The Foundation is dependent upon donations to safeguard its long term future and will primarily be funded by donations from I.M. Group Limited. The trustees have agreed budgeted charitable activity for the period of at least twelve months from the Balance Sheet date and have received assurances from the Directors of I.M. Group Limited that they will continue to make contributions in line with this budget.
Going Concern and risk review
Grace Foundation aims to continue and expand its current activity and will primarily be funded by donations from I.M. Group Limited. The trustees have agreed budgeted charitable activity for the period of at least twelve months from the Balance Sheet date and have received assurances from the Directors of I.M. Group Limited that they will continue to make contributions in line with this budget.
The charity has further sought assurances from the Directors of I.M. Group Limited of the financial strength and liquidity of I.M. Group Limited.
The trustees have considered all reasonable risks associated with the operation of its business model for a period of at least 12 months from the date of signing the accounts. These risks include the potential resurgence of Covid-19 pandemic impacting social distancing and the ability of the business to perform its operations in school environments. Risks also include increasing pressures on salaries and the ‘cost of living’ crisis in the UK. The trustees consider that their close management style and controlled expenditure will give the company sufficient headroom to adapt the business model sufficiently to continue in operational existence and operate within its cash headroom.
Grace Foundation has taken assurances from the directors of I.M. Group Limited that the group will continue to make charitable donations to satisfy the ongoing working capital requirements of the charity for a period of at least twelve months from the approval date of these financial statements in order to allow Grace Foundation continue to satisfy its operational objectives and honour financial obligations as they fall due.
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Grace Foundation {A Company Llmlted by Guarantèèl Trustees, annual report forthe year ended 31 August 2022 (conlinued) Tru$tees A list of trustees is shown on the front shèet to the accounts. The Appolnler lo the ¢harily Is Lord Edmislon. The Appolnler has the ulllmale power lo aptKJlnl and remove Iiuslees. The key management ptsrsonnel is GaTy Spicer. 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 matters. induction lends to be done informally and is tailored spe¢ifi¢ally lo the individual. In preparing the TTUStees' report advantage has been taken of the small companies. exemption. Approved by the board of trustees and signed on their behalf on A M Edmislon Trusteè Date 1 March 2023
Grace Foundation (A Company Limited by Guarantee)
Independent examiner’s report to the trustees of Grace Foundation for the year ended 31 August 2022
I report on the charity Trustees on the accounts of the Company for the year ended 31 August 2022, which are set out on pages 6 to 15.
This report is made solely to the charity's trustees, as a body, in accordance with Regulation 31 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's trustees 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's trustees as a body, for my work, for this report, or for the statement I have made.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
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 I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts 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
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the accounts 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 accounts to be reached.
Heather Wheelhouse ACA BDO LLP R+ 2 Blagrave Street Reading Berkshire RG1 1AZ
02 March 2023 Date
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
5
Grace Foundation (A Company Limited by Guarantee)
Statement of financial activities for the year ended 31 August 2022
| Note Income from: Donations 2 Grant income 3 Total Income Expenditure on: Charitable expenditure 4 Net income 6 Fund balance brought forward at 1 September 12 Fund balances carried forward at 31 August 12 |
2022 £ 893,415 - __ 893,415 888,722 __ 4,693 136,561 __ 141,254 __ |
2021 £ 894,766 2,136 _ 896,902 699,124 _ 197,778 (61,217) _ 136,561 _ |
|---|---|---|
All disclosures relate only to continuing operations. There are no recognised gains or losses other than those disclosed above.
The notes on pages 9 to 15 form part of these financial statements.
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Grace Foundation IA Company Limited by Guarantee) Balancè sh8&t as at 31 August 2022 Company number 5003276 Note 2022 2022 2021 2021 Non.current assets Tangible fixed assels 942 1,885 Current as$¢ts Debtors Cash al bank and in hand 5,924 180,282 2.377 182,414 creditors: amounts f•lling due within one year 10 145,8941 150,1151 Net current assets 140.312 134,678 Total assets less current 141.254 136.561 The funds of th8 charlty: Unrestricted funds 12 141.254 136.561 For the year ended 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companles Act 2006 relating to small companies. The rnembers have riot required the Company lo obtain an audit of its financial slalemenls for the year in quesllon in accordan with section 476. The trustees 8¢knowledge their responsibilities for complying wilh the requirements of the Companles Act 2006 with respect lo accounting records and the preparation of financial slalements. These financial statements have been prepared in a¢efjrdance wlth the provisions applicable to companies subject lo the small companies, regime. Approved by the Board of Trustees and signed on their beha5f on A M Edmislon Trustee Date 1 March 2023 The notes on pages 9 10 15 form part of these financial slaternents.
Grace Foundation
(A Company Limited by Guarantee)
Statement of cash flows as at 31 August 2022
| Note Cash flows from operating activities Cash provided by operating activities 14 Cash flows from investing activities Purchase of equipment (Decrease)/increase in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year Analysis of cash and cash equivalents Cash at bank and in hand |
2022 £ (2,132) __ - (2,132) 182,414 180,282 _ 180,282 _ |
2021 £ 136,144 __ - 136,144 46,270 182,414 |
|---|---|---|
| _ 182,414 _ |
8
Notes to the accounts for the year ended 31 August 2022
Grace Foundation (A Company Limited by Guarantee)
1 Accounting policies
Basis of preparation
The financial statements 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 (SORP) 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 (£) and the figures are rounded to the nearest £.
Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing the Financial Statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
There are not considered to be any key areas of judgement in these financial statements.
Going concern
Grace Foundation aims to continue and expand its current activity and will primarily be funded by donations from I.M. Group Limited. The trustees have agreed budgeted charitable activity for the period of at least twelve months from the Balance Sheet date and have received assurances from the Directors of I.M. Group Limited that they will continue to make contributions in line with this budget.
The charity has further sought assurances from the Directors of I.M. Group Limited of the financial strength and liquidity of I.M. Group Limited.
The trustees have considered all reasonable risks associated with the operation of its business model for a period of at least 12 months from the date of signing the accounts. These risks include the potential resurgence of Covid-19 pandemic impacting social distancing and the ability of the business to perform its operations in school environments. Risks also include increasing pressures on salaries and the ‘cost of living’ crisis in the UK. The trustees consider that their close management style and controlled expenditure will give the company sufficient headroom to adapt the business model sufficiently to continue in operational existence and operate within its cash headroom.
Grace Foundation has taken assurances from the directors of I.M. Group Limited that the group will continue to make charitable donations to satisfy the ongoing working capital requirements of the charity for a period of at least twelve months from the approval date of these financial statements in order to allow Grace Foundation to continue to satisfy its operational objectives and honour financial obligations as they fall due.
The Trustees confirm that at the time of approving the financial statements, there are no material uncertainties regarding the foundations ability to continue operational existence for the foreseeable future. Accordingly, the trustees consider it appropriate to prepare these financial statements on a going concern basis.
Fund accounting
Unrestricted funds
Unrestricted funds comprise the accumulated deficit/surplus on the statement of financial activities. They are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and are retained for working capital purposes.
9
Notes to the accounts for the year ended 31 August 2022 (continued)
Grace Foundation (A Company Limited by Guarantee)
1 Accounting policies
Basis of preparation (continued)
Income
Donations and other income are recognised within the statement of financial activities when receivable.
Expenditure
Expenditure has been charged to the statement of financial activities on an accruals basis.
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met usually on submission of a valid claim for payment. This includes the Government Coronavirus Job Retention Scheme (‘Furlough’).
Direct charitable expenditure relates to the donations made in the period. Donations payable are payments made to third parties in the furtherance of the charitable objectives of the Trust.
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 to operating leases are charged to the Statement of Financial Activity over the period in which 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 transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Pension costs
Contributions to the company's defined contribution pension scheme are charged to the profit and loss account in the period in which they become payable.
Taxation
The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 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 charitable purposes. No tax charge arose in the period.
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Grace Foundation
(A Company Limited by Guarantee)
Notes to the accounts for the year ended 31 August 2022 (continued)
1 Accounting policies
Basis of preparation (continued)
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the
company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of financial activities during the period in which they are incurred.
Depreciation is provided on the following basis:
- Computer equipment 25% straight 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 date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the Statement of financial activities
2 Donations
3
| Donations Other income Grants Government grants |
2022 £ 890,000 3,415 __ 893,415 __ 2022 £ - __ |
2021 £ 894,766 - __ 894,766 _ 2021 £ 2,136 _ |
|---|---|---|
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Grace Foundation
(A Company Limited by Guarantee)
Notes to the accounts for the year ended 31 August 2022 (continued)
| 4 Direct charitable expenditure Ethos Teams Programme costs Personnel costs Governance costs (note 5) Depreciation Tove Learning Trust Donations to Audacious Church |
2022 £ 140,649 684,526 6,045 943 51,559 5,000 __ 888,722 __ |
2021 £ 93,742 447,291 4,477 943 152,671 - _ 699,124 _ |
|---|---|---|
Ethos Fund expenses includes travel, meeting, phone costs and Education support costs.
5 Governance costs
| 5 Governance costs |
||
|---|---|---|
| Bank charges Legal and professional fees Independent examiner fees 6 Net income Net income is stated after charging: Depreciation Independent examiners fees. 7 Staff costs Salaries National insurance Pension costs |
2022 £ 9 2,756 3,280 __ 6,045 _ 2022 £ 943 3,280 _ 2022 £ 530,210 37,164 50,021 __ 617,396 |
2021 £ 9 285 4,183 __ 4,477 |
| __ 2021 £ 943 4,183 |
||
| _ 2021 £ 341,406 25,096 35,097 _ 401,599 |
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Grace Foundation
(A Company Limited by Guarantee)
Notes to the accounts for the year ended 31 August 2022 (continued)
| Average number of persons employed by the charity during the year | ||
|---|---|---|
| (excluding Trustees) analysed by function: | Number | Number |
| Management and administration of the charity | 7 | 4 |
| Ethos and support workers | 16 __ |
13 __ |
| There were no employees included above whose earnings (including | taxable benefits in kind) exceeded | |
| £60,000. (2021 - £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 (2021 - £Nil).
8 Fixed assets
| 8 Fixed assets |
||
|---|---|---|
| Cost At 1 September 2021 and at 31 August 2022 Depreciation At 1 September 2021 Provided for during the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 9 Debtors Prepayments |
Computer equipment £ 5,008 _ 3,123 943 _ 4,066 _ 942 _ 1,885 _ 2022 2021 £ £ 5,924 2,377 _ __ |
|
| _ 3,123 943 _ 4,066 |
||
| __ 942 |
||
| __ 1,885 |
||
| _ 2021 £ 2,377 _ |
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Grace Foundation (A Company Limited by Guarantee)
Notes to the accounts for the year ended 31 August 2022 (continued)
10 Creditors: amounts falling due within one year
| Accruals and deferred income Other creditors Taxation and social security Financial Instruments Financial assets Cash and cash equivalents Financial liabilities Financial liabilities measured at amortised costs |
2022 £ 28,787 5,037 12,070 __ 45,894 _ 2022 £ 180,282 __ 180,282 _ 45,894 __ |
2021 £ 34,421 7,075 8,619 __ 50,115 |
|---|---|---|
| _ 2021 £ 182,414 _ 182,414 |
||
| _ 41,496 _ |
11 Financial Instruments
Financial assets measured at amortised cost comprise other debtors and prepayments. Financial assets also include cash and cash equivalents.
Financial liabilities measured at amortised cost comprise other creditors and accruals.
12 Movement in funds
| Movement in funds | ||||
|---|---|---|---|---|
| At | At | |||
| 1 September | Incoming | Outgoing | 31 August | |
| 2021 | resources | resources | 2022 | |
| £ | £ | £ | £ | |
| Unrestricted funds | 136,561 __ |
893,415 __ |
(888,722) __ |
141,254 __ |
| Movement in funds (prior year) | ||||
| At | At | |||
| 1 September | Incoming | Outgoing | 31 August | |
| 2020 | resources | resources | 2021 | |
| £ | £ | £ | £ | |
| Unrestricted funds | (61,217) __ |
896,902 __ |
(699,124) __ |
136,561 __ |
14
Grace Foundation (A Company Limited by Guarantee)
Notes to the accounts for the year ended 31 August 2022 (continued)
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 amounted to £50,021 - - (2021 £35,097). There were outstanding contributions of £5,037 (2021 £Nil) at the end of the financial year.
14 Reconciliation of income/(expenditure) in funds to net cash flow from operating activities
| Net income for the year Add back depreciation charge (Increase) in debtors (Decrease) in creditors Net cash provided by operating activities |
2022 £ 4,693 943 (3,547) (4,221) __ (2,132) __ |
2021 £ 197,778 943 (2,141) (60,436) _ 136,144 _ |
|---|---|---|
15 Related party transactions
During the year the company was invoiced £51,559 (2021 - £152,671) to Tove Learning Trust, a company in which Lord and Lady Edmiston are directors.
The charity deals with Tove Learning Trust on an arm’s length basis. £9,766 was outstanding in the current year (2021 - £31,699).
During the year donations of £870,000 (2021 - £894,766) were receivable from I.M.Group Limited, a company which Lord Edmiston indirectly owns 100% of the issued share capital. Donations of £20,000 were receivable from Grace Charitable Trust (2021 – Nil).
Radical Outreach Limited is a company owned and controlled by a family member of Lady Edmiston. During the year Radical Outreach Limited provided consultancy services to Grace Foundation and received £29,106 (2021 - £20,161). £Nil was outstanding in the current year (2021 - nil).
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