FIUENDS OF FOLKESTONE ACADEMY LTD (a company limited by guarantee) TRUSTEES, REPORT AND ACCOUNTS YEAR ENDED 31 JANUARY 2021 Company Limited by Guarantee Company Registration Number 5017884 {England and Wales) Charity Regislration Nurnber 1103352
FIUENDS OF FOLKESTOYE ACADEMY LTD LEGAL ADMtNISTRATIVE INFORMATION Trustees Sir RogeT De Haan CBE DL (Chainnan) Graham Badman CBE Rosalind Mccarthy DL Trevor Mtnter OBE DL Michael P¢aT¢e Tracy Luke appointed 29 April 2021 Secretary Paula Hall Re%lstered v4nd Principal O(fAce Strand Housc Pilgrims Way Monks Horton Ashford TN25 6DR Solicltors Withers LLP 16 Old Bailey London EC4M 7EG Bgnkers N'ational Westminster Bank plc 37 Old Dover Road Canterbury cri 3JB Auditor MHA Macinlyre Hudson, 17-21 Ashford Road Maidslone Kent ME14 5DA Investment Manager Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU
FRIENDS OF FOLKESTONE ACADEMY LTD REPORT OF THE TRUSTEES The trustees of the Friends of Folkestone Academy Ltd. who are also the directors of the company, present their report logeiher with the audited fllw]cial statements for the year ended 31 January 2021. The thistees confinn that the annual report and financial Statements of the cbariiy comply with cuent statutory requirements, the requirernents of the governing document and the provisions of the Statement of Rttomm¢nded Practice (SORP) "Accounting and Reporting by Charities" applicable to charities preparing their accounts in accordance with tbe Financial Reporting Standard applicable in the UK and R¢public of Ireland (FRS 102). Constitution and Principal Objectives The Fri¢nds of Folkeslone Academy Ltd, a company litnilcd by guarantee and registered charily, was esiablished on 16 January 2004 (company numb¢r 5017884, charity number 1103352). The Friends of Folkestone Academy Ltd is hereafter referred to as "the charity" in these audiled financial siaiements. The charity's memorandum and articles of associaiion are the primary governing documents. The truslc¢s meet as often as is required to take dccisions atTecting the operation of the charity. As the charity has no $tafY, all decisions related to the operation of the charity are taken by the trustees. The objects of the charity are to advance for the public benefiL educalion in the United Kingdom including support of the aims and objeciives ofthe primary and secondary phases of Folkeslone A¢ad¢my, the relief of Unemplo7enl the provision of facilities in the interest of social welfare, for recreation and other leisure time occupation. Trustee5 Trustees are appointed by the recommendation of the existing trnslees, subject to the approval of a mcmbcr of the charity. New trustees, when appointed, will be provided with an infom]ation pack including the latest accoun15 and the memorandum and articles of association and will be afforded thc opportLmity to undertake a site visit to thc premises of Folkestone Academy. The following are the trustees of the chatity: Sir Roger De Haan Graham Badman CBE Rosalind Mccarthy Trevor Minter OBE DL Michael Pearce Tracy Luke Tracy Luke was appointed on 29 April 2021 and retires al the AGM, whilst Sir Roger De Haan and Rosalind Mccarthy retire by rotation and all 3 being eligible. a resolulion proposing their re-appoinlment will be submitted at the Annual General Meeting. All of the tNstees are also members of the charity bui they hold no beneficial interest therei Although no specific truslee training programme exists, tsustees continue to have exposure to educational and chaTitable matters either through their principal occupation an(Vor involvement in other charitable institutions.
FRIENDS OF FOLKESTONE ACADEMY LTD REPORT OF THE TRUSTEES {CO.ITIuED) Company Secretary Paula Hall was appointed as company secretary on 10 July 2020. replacing Frances Sharp who retired on the same dat¢. Members, Llability Each member of the charitable company undertakes to contribute to the assets of the harity in the event of Li being wound up while helshe is a member, or within one year after helshe ceases to be a member, such amounl as may be required, noi exceeding £1, for th¢ debis and liabilities contractcd before helshe ceases to be a n]ember. Reserves Poliey The poliey of the trustees ts to maintain a growing level of reserves which UndeiS the long tenn grant-making strategy of the charity. At this stage. no specific monetary targpA has been set. The trusiees are satisfied that the Charity's reserves are sufficient lor its current purposes. The reserves as ai 31 January 2021 amounted to £3.769,(K)0 (2020: £3,611,000) of which £1,171.0 comprises fixed assth fijnds. Investment Poll¢y The trustecs have appoint¢d Sarasin & Partnets LLP lo manage the investmenl portfolio. Monies are invested in one of Sarasin's Charity Authoriscd Investment Funds which is dcsigned specifically for charities. The investrnenl objective is to provide long tern) Capital and income through a broadly diversified 8Lobal portfolio. Grant Maklng Pollcy The charity's grant making activity is presently focussed on supporting the primary and secondary phases of two 5¢hools comprising Folkestone Academy. Operatln% and Flnancial Revlew Net income for the year before investment gains amounied to £37,000 (2020: £109,(KIO). The 2021 decrease arose primarily from a much higher donations cost, as well as a slight d¢¢r¢ase in investment income. Th¢ charity received 8 £48,000 (2020: £59,000) donation from its trading subsidiary and continued to bclt from rental income arising from its Subsidiary's occupation of the Marlowe Innovation Centre. The investment portfolio increased by £194,000 during the year due to a combination of the re-investment of income and an increase in the value of the charity's investments. Investment gains amounted to £121,(KKI (2020: £235,(M)O), reflecting a 4.80/0 rise in unit price5 in the year. The clwity a wholly owned subsidiary. FFMA Trading Limited tla 'Yhe Marlowe Innovation Centre" Thc subsidiary OpateS an "Innovation Centre" from premises on a site adjacent to tbe Royal Harknur Academy in Ramsgate, Kent. The objective is lo attract young. innovative businesses to the Marlowe Innovation C¢ntre and to build a lose working relationship between the school and tenant businesses, witb the aim of assisting in the education of students and crealing employment opportunitie5 in the area. SuTpluses generated are paid to the parent charity.
FIUENDS OF FOLKESTONE ACADEMY LTD REPORT OF THE TRUSTEES [CO,T[LED) Operating Flnancial Review (Continued) The Marlowe Innovation Centre (MIC) has retained its p)pularity as first step a¢¢omtnodation for small businesses, including those moving out from working from home. On average. occupation remains at 95 - 100 %. Their easy-in. easy-out licence allows tenants lo move olyices within the building. Over the past year, several tenants bave moved lo larger rooms as thcir business has expanded. The number of virtual tenants bas risen to 43. of whom 3 opt for au enhanc¢d package, involving call handling. In additio two tenants use the Marlowe Innovallon Centr¢ to handle all their back-office functions. Boardroom and meeting room bookings have declined due to Covid. Some companies are booking the boardroom for Zoom meetings. The MJ IC management regularly advertises ihe boardroom, meeting room and any offices becoming vacant on social media via the MIC Facebook page. Twitter and Instagram. This is the only marketing they do and is at nil cost. The Marlowe Innovation Centre h&g decreased reception cover during the pandemic so thal only one person is on duty at any one time. The Marlowe Innovation Centre wel¢otnes students from the Royal Harbour Academy and other local schools for work experience and other aclivities. Covld-19 Initially. the charity's investmenis sutTered a significant fall in value compared to the 2020 year-end valuation. however throughout th¢ year recovery has been good and the valuation ai 31 January 2021 is 4.8 % up on the previous year, excluding additional inv¢stm¢nts fundcd by cash and re-investing dividends. Dividend income Icvels have remained fairly consistent with those of last y¢3r. however this may ¢han8e depending on how the cconomy recovers as rcslri¢iion5 ease in the coming months. The charity's trading subsidiary may also be impacted to some extcnl which may result in il paying a lower level of dividend io the charity compared io the levels paid in previous years. However, al present there is no evidence that it will not be able to pay its rental obligations to the charity. The charity has prudently built up its reserves over the past few years and ils general fund as at 31 January 2021 was just under £2.6 million. There are no restrictions on trustees, ability to use these funds if necessary to enable it to Continue to fulfil its cbarilable objects. Based on the above and knving regard to the resources available kn the entity, the Truslees have concluded thai there is no Tnat¢rial uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts. Public Beneflt Thc charity's grant making activity has been focused on supporting the aIll and objectives of the Folkestone Academy. The principal way in which this h&s been accomplished has been througb payment of direcl charitable grdnts to fund initiatives not fi]nd by the school's mainstream government grants. The trustees have considered the impact of the public benefit requirement including the guidance issued by the Charity Conm)ission.
FRIENDS OF FOLKESTONE ACADEMY LTD REPORT OF THE TRUSTEES (COiYfThiJED) Rlsk Management The INsiees have examined the njOr strategic. business and operational risks which the charity faces and have put in place systems, policies, procedures and controls in order to manage and mitigate these risks. Where appropriaie. th¢ trustees will act only after taking appropriate professional advice. The main risk faced by the clwlty relates lo inveslmenl risk on ils portfolio. This risk is mitigated by investing all the charity's surplus funds in a reputable diversified investment fid designed exclusively for ¢haTities. Stydtement of Tru$tee$' Responsibilitles The trustees (who are also direclors of Friends of Folkestone Academy Ltd for the Purposes of company law) are respOlb1¢ for preparing the trnstees. report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Acc¢pled Accounting Practice). Company law requires the trustees to prepare fman¢ial statements for each financial year which givc a true and fair view of the state of affairs of th¢ ¢harity and of the incomin8 rcsources and application of resources, including the income and expenditure. of the charity for that period. In preparing these financial statern¢n the trustees are requirfyl io: select suitable a¢¢ounting policies and th¢n apply them consistently. • observe the methods and principles in the Charities, SORP; make judgements and estimales thal are reasonable and prudent. state whether applicable United Kingdom Accounting Standar(L8 have been followed, subject to any material departures disclosed and explained in the fmancial statements. prepare the financial slatemenis on the going concern basis unless it is inappropriate to prcsume that the charilable company will conlinuc in operation. The tnlstees are responsible for keepin8 proper accounting records that disclose with reasonable accuracy al any time the fu]ancial Position of the charitsble company and enable them to ensure that the financial slatements comply with the Companies Act 26. They are also responsible for safeguarding the assets of the charitsble company and hence for taking reasonable Steps for the prevention and deteclion of fraud and other irregularities. Each of the trusiees confllms that: so far as the trustee is aware, there is no relevant audit inf0mtion of which the Iw21able company's audilor is unaware; and th¢ trustee has taken all the steps that ougbt to have taken as a tee in order to be awar¢ of any relevant audit information and to establish thai the charitable company's auditor is aware of thai inforni8ti0n.
FRIENDS OF FOLKESTONE ACADEMY L TD REPORT OF THE TRUSTEES (CONTINLTD) Auditor MHA macint Hud50n have expressed their willineSS lo continue in otTice as auditor and a resolution proposing their re-appoinlment will be submitted at the Annual General Meeting. In preparing this rq)ort the truslees have taken advanlage of the small companies exemptions provided by sti0Th 415A of Part 15 of the Companies Act 2006. The report of the tNstees was approved by the ttustees on signed on their behalf by: io 2o21and Trevor Minter Trustee Reglstered and Princip81 Offl¢e Sirand Ilouse Pilgrims Way Monks Horton Ashford Tr125 6DR
FRIEI¥DS OF FOLKIST0 AcADEy LTD Independent 4uditor's report to the trustees of Friends of Folkestone Acad¢my Ltd Opinion We have audited the financial stalements of Friends of Folkestone Acaderny Ltd (the 'charitable company,) for the year ended 31 January 2021 which comprise the Statement of fllwicial activities, the Balance sheet and notes io the fjnancial statements. including a sunllnary of significant accountiug policies. The fllwi¢ial reporting framework that has been applied in tbeir PTeparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Siandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted A¢¢ounting Practice). In our opinion the financial sta¢ements: give a trne and fair view of the state of the charithble company's affairs as at 31 January 2021. and of its incoming resources and application of resources including its income and expenditure, for the ycar then ended. have been properly prepar¢d in accordance with United Kingdom Generally Accepled Accounting Practice. and have been prepared in accordance with the requiremenis of the Companies Act 2006. Basis for oplnlon We conducted our audit in ac¢ordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under thos¢ slandards are further dusLribed in the Auditor's responsibilities for the audii of the financial statcments seclion of our report. We are indep¢nd¢nl of the charitable wmpany in accordance with the cthical requirements that are levant to our audit of the financial statemcnts in the UK, including the FRC'S Ethical Standard, and we have lfIlled our other ethical responsibilities in accordance with these r¢quiremenls. We believe thal the audit evid¢nce we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions reRatln8 to going CODeern In auditing the fman¢ial statements, we have concluded that the tntees, use of the going concern basts of accounting in tbe preparation of the finaD¢ial ststements is appropriate. Based on the work we have perfornied we have not identified any material uncertainties relating lo events or conditions thaL individually or collectively, may cast significant doubt on the charitable companYs ability to continue as a going concern for a period of at least twelve months from when the fmaucial statements are authorised for issue. Our responsibilities and the responsibilities of the tsustees with respect to going concern are described in the relevant sections of this report.
FRtENDS OF FOLKESTONE ACADE.MY LTD Other Information The tmstees are responsible for the other inforniation. The other inforniation comprises the inforntIOn included in the trustees. annual repory other tball the financial statemcnts and our auditor's report thereon. Our opinion on the financial statements does not cover the oiher infornjation and, except to the extent otherwise explicitly stated in our reporL we do not express any fomi of assurance conclusion thereon. tn connection wilh our audit of the fancial statements. our responsibility 1$ to read the other information and, in doing so. consider whether the other information is materially inconsistenl with the financial slatements or our knowledge obtsined in the audit or othcrwise appears to be materially misstated. If we identify such material incoDSiStencies or apparent material misststemenis, we are required lo deterniine whether there is a maierial misslatemenl in the financial statements or a maleriai rnisslatemenl of the other infornjation. If, based on the work we have perforn]el we conclude that there is a malerial misstatemeni of this other infoTMati0 we are required to report that faci. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Comp2nle$ Act 2006 In our Opinio based on the work undertaken in the cowse of th¢ audit: the inforn]ation given in the tnlees. rert (incorporating the directors, report) for the financial year for which the fllwicial statements are prepared is consistent with the financial slalements. and the directors, rq)ort has been prepared An accordance with applicable legal requirements. Matter5 on which we flre required to report by excepilon In the light of our knowIge and understsnding of the charitable company and its environment obtained in th¢ course of the audil we bave not identified material misslatements in the directors. report. We have nothing to report io respe of the following matters in relation to which the Companies Act 2(K)6 requires us to report to you if, in our opinion: adequate accounting records have not been kepL or returns adequate for our audit have not been rec¢ived from branches not visited by us. or the fanCIal statements are not in agreement with the accountiag records and returns. or
FRIENDS OF FOLKESTONE ACADEMY LTD certain disclosures of directors, remunerdtion specified by law are not n]ade' or we have not received all the inforniation and explanations we rcquire for our audit. or the trustees were not entitled to prepare the fancIal stalements in awordance with the small Companies, regime and take advantage of the srnall companies. exemptions in preparing the directors, report and from the requirement to prepare a strategic rqTrort. Respon$lbllities of trustees As explained more fully in the tnt$, responsibilities stat¢menL the trustees (who are also the directors of the charitable company for the PUTposes of company law) are rcsponsible for the preparation of the fmancial slaiements and for being satisficd that they give a trne and fair view, and for such iDtemal control as the trusie¢s deteTrnine is neceSSY lo enable the preparation of financial statements that are free from material misst&t¢m¢nl, whether due to fraud or eTror. In prcparing the financial Statemenls. the tnteeS a responsible for assessing tbe charitable company's ability ltt continue as a going concern, disclosing, &$ applicable, matters relaied to going concem and using the going concem basis of accounting unless the Irustc¢s eiihcr intend to liquidaie the charitsble company or io cease operations, or have no realistic alternative bul to do so. Audltor's re$pon5ibilities for th¢ audlt of the finaDclal stst¢m¢nts Our objectives are ¢0 obtain reasonable &8surance about whether the financial statements as a whole are free from material misstatement, whether du¢ to fraud or error, and to issue an auditor's report that includes our opinion. Reasonablc assuranLe is a hi8h level of assurance, but is not a guarantee that an audit conductcd in accordance with ISAS (UK) will always delect a material misststemenl when it exists. Misstaternents can arise from fraud or error and are ronsidered material if, individually or in the aggregate, they could reasonably be expe¢led to inlluence the economic decisions of users taken on the basis of these financial slatcments. Irregularities. including fraud, are instances of non-complian¢¢ with laws and regulations. We design procedurcs in line with our responsibilities. outlined above, to detect material misstalcments in respect of irregularities. including fraud. The specific procedures for this engagement and the extent to wbich these are capable of detecting irregularitie5, including fraud 1$ detailed below: Enquiry of management and those charged with govemance around actua] and potential litigation and claims. Performing audit work over the risk of management override of controls, includin8 testing of journal entries and other adjustments for ppropriateness, evaluating the business ratio[e of significant transactions outside the normal course of business and reviewing accounting estimates for bias:
FRtENDS OF FOLKESTONE ACADEMY L TD Reviewing fmancial statement disclosures and testing to supporting documentation to assess compliance with appli¢able laws and regulatioDS' Reviewing meeting minutas of those charged with governance. Because of th¢ inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those l¢ading to a malerial misstatement in the fmancial statements or non-compliance with regulation. This risk incre&8es the more that compliance with a law or regulation is removed from the events and transactions reflected in the fmancial statements, as we will be less likely to bOrne aware of instances of non-¢ompliance. The risk is also greater rcgarding irregularities occurring due to fraud rather than error, as fraud involves in¢cntional concealrnenL forgery. Collusio Omissio or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on Financial Reporting Council's websitc at: ww.frc.org.uklauditorsresponsibilities. This description forni$ part of our auditor, report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slat¢ lo the charitable company's members those malters we are required to stale to thern in an auditor's report and for no oth¢r Purpose. To the fullest extent perniittcd by law, we do not accepl or assume responsibility to anyon¢ other than the charitable company and the charilable company's members as a body, for our audit work, for this report, or for the opinions we have fornied. Duncan Cochrane-Dyet Bsc BFP FCA (Senior Ststutory Auditor) For and on behalf of MHA MacIDtyre Hudson Statutory Auditor Maidstone United Kingdom Date.. 21 October 2021
FIUENDS OF FOLklSTONE ACADEMY LTD STATEAMENT OF FINNcIAL ACTtVlTIES FOR TIIE YEAR ENDED 31 jUARy 2021 2021 2021 2021 2020 Restricted FuDd Fixed Asset £'ooo UnrestrReted Funds Fixed Totsl Fund$ £'ooo Total Fulld$ £'ooo Gener#1 £'ooo Note £'ooo Income and endowments from". Other iu¢ome tnvestment income Totil income 75 121 196 75 121 196 75 129 204 Expendlture Dn: Raising funds Charitable a¢tivities Suppjrt costs Total expendlture 124 28 152 131 28 159 95 Net Ineome before lrtvtttment g&ln$l(10sse5> 65 (28) 37 109 GainO{losses) on investmcnls 12 121 121 235 Net Income 186 (28) 158 344 Funds brougbt forward 2,412 1.199 3,611 3,267 Total fundi cqrrled forward 16 2.598 1,171 3,769 3.611 The notes on pages 12 to 19 forni part of these financial statements.
FRIENDS OF FOLKESTO.YE ACADEIMY LTD (A company limited by guarantee) Registered jumber". 05017884 BALANCE SHEET 31 JANUèlRY 2021 Not¢ 31 JDuary 31 JAnu4ry 2021 2020 £'o&o £'ooo Flxed Ay$ets Tangible flxed assets Invesiments Inv¢stm¢nt in sub5idiaryuDdertaking io 12 1.171 2.540 1,199 2.244 3,711 3,443 Current B55ets Cash held by Investrtmt Manager Cash at bank and in hand 10 183 193 112 73 185 Crltors. ainounts falling due within one year 14 (17) Nel eurrent a&sets 58 168 TotAI assets le1 Current Ilabllltl 3.769 3.611 CbArlty Fundi Restricted l.unds Fixed A$8ct FuThd 16 .171 UDrutrlcted fundi General Trund Fixed A&s¢t Fund 16 2.598 2,412 16 3,769 3,611 The ttusttts consider that the company is entitl to exempiion frorn the rqUiremt to have an audit wider the provisions ofscction 477 of th¢ Companies Act ('th¢ A¢1") and mcmbus have not requircd the company to obtain an audii for thc year in quemion in a¢¢ordance with seaion 476 of the Act. In a¢¢ordance with sttlion 145 of the Chariti¢s Aci 2011 an independ¢ni examination is rquirnt howevtt. the membcn have voluntarily opt to have an audit under the Companics A¢1 2Th. The trustees a¢knowled8e their responsibilities for complying with the requirernents of the Act with rwt to accountin8 re¢ords and for preparing financial statcments whi¢b give i true and fair view of the statc of atTairs of the con)pany as at 31 January 2021 aod of its net tnwming ffsources for the year in accordance with the requircmcnts of seclion$ 394 and 395 of the Act and which otherwise comply with tbc requirements of the Act relatin8 to finan¢iai thtem¢mt4 50 far &$ applicable to thc c4m4)any. The financial S¢alcrnents have been prepared Én accordanc¢ with thc provisions appli¢able to Companies subjxt 10 the small ¢ompanic5 re8irne and in ac¢ordaoL with the prow•ons of FRS 102 Secuon IA- small cntittcs. The fmancia] stat¢mts were approv¢d by the tru5tee5 on 7 6cf1 2021 and signed on thc4r bcllalf by. T J Minter OBE DL (Trn*e¢) Thc notes on pagcs 12 10 19 forni part of thes¢ finaDciat stateme4ts. li
FRIENDS OF FOLKESTONE ACADEMY LTD NOTES TO THE FtNANCIAL STATE.MENTS FOR THE YEAR ENDED 31 JANUARY 2021 l Accounting Policies 1.1 Basis of Preparation of Finanel81 StatemeDts Friend5 of Folkestone Academy Lid is a registered Clwity and a Company limited by guaranlee, incorporated in England and Wales. Its registered office al principal place of business is disclosed in thc Lcgal and Administrative inforniation. The fu)ancial statemenls have been prepared under the historical ¢osi conventio except for the valuation of investrnents which are included at markel vaIue, and in accordance with Accounting and Rcporting by Charittes.. Statement of Recommended Practic¢ applicable to charilies preparing their accounts in accordan¢c with th¢ Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)- (Charities SOBTr (FRS 102)). th¢ Chariiics Act 2011 and the Companies Act 2006. Friends of Folkestone A¢ademy Ltd meets the definition of a public benefit entity under FRS 102. The financial statem¢nls have been presented in GBP and rounded to £'OOO. 1.2 Rental Income and Rents Receivable Rental inLome and rents receivable a included in the staiement of financial activities on an accruals basis. 1.3 Grants Receivable and Payable Grants receivabl¢ and payabl¢ arc included ill the statement of fllwicial activities on an accruals basis. 1.4 Investment Income and Intere$t Reetlvable InvcstmLnl income and AntLrcst rL'ccivable are in¢luded io tbe statement of financial activities on an accruals b&8is. 1.5 Expendlture Expenditure is accounted for on an accruals basis and has been classified under expense categories that aggregate all costs relating to that cat¢gory. Ivhere Costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources. 1.6 Unrestrleted Funds All fiu]ds except the Marlowe Innovation Centre (MIC) fixed &sset fimd are unrestricted. The MIC propety has re5trictiODS on its use for a period of time which expires in 2028. 12
FRIENDS OF FOLKESTOkNE ACADEMY LTD NOTES TO THE FINthCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 l Accounting policies (continued) 1.7 Support Costs Support costs comprise of expenditure incurred in connection with administration of th¢ charity and compliance with constitutional and statutory rquircmcnts. 1.8 Tanglble fixed assets Tangible fixed assets are included in the balance sheet at cost and are depreciated over their useful economic lives in accordallce with the depreciation policy. Rclaled grants are credited to a fixed asset fimd in the slatement of fancial activities and carried forward in the balance sheet. Assets are reviewed annuaIly for impairn]ent. Assets costing less than £l,OIyJ are written off in the year of acquisition, unless they are part of a greater amounL 1.9 Depr¢¢18tlon D¢preciation is provided on a straight line b&8is on the cost of tangible fixed &8sets. io wri them down to their estimated residu81 values over their expected useful lives. The annual r&t¢s used are.. Leasehold buildings 20/0 Fixtures and equipmeni 20 % 1.10 Investments Investments are included in the financial siatem¢niS al their markel value ai the balance sheet dale. Reali5ed and unrealiscd gains (or losses) are crediied (or debited) to the statement of fjnancial activitics in the year in which they arise. Invcstmcnts are a fomi of financial instrument and are initially recogniscd at their trdnsaclion cost and subsequently measured at fair value ai the Balancc Sheet date. unless the valuc cannot bc mcasured reliably in which case it is Measur 8t cost less irnpainnenl. Investment gain5 and losses. whether realised or unrealised, are combined and presented as 'Gains/(Losses) on investments, in the Statement of Financial Activities. 1.11 Golng concern To dale, the Covid-19 pandemic has not had a material impact on the charity's operations. Initially. the Charity's investments suffered a significant fall compared to the 2020 year-end valuation but have since recovered. Looking ahead, the ¢harity is likely lo see a fall in the income arisin8 on its investment holdings as a consequence of company, suspending or cutting their dividends and the historically low level of intercst rates. The charity's trading subsidiary may also be impacted to some extent whi¢h may result it it paying a lower level of dividend to the charity compared to the levels paid in previous years. However, at present there is no evidence that it will not be able to pay its rentsl obligations to the charity. The charity h&s prudently built up its reserves over the past few years and its general fiu)d as at 31 January 2021 was just under £2.6 million. Therc are no restrictions on trnstees, ability to use these fimds rfnecessary to enabl¢ it to continue to Ifil its charitable objects. 13
FRIENDS OF FOLKESTOYE ACADEMY LTD OTES TO THE FINANCIAL sTATEMErs FOR THE YEAR ENDED 31 JAhlJARY 2021 1.11 Going ¢onc¢rn ¢oDt. Based on the above and having regard to the resources available to the entity. the TNstees have concluded thai thcrc is DO matcrial uncertainty and that they can continue to adopi the going concern basis in preparing the annual report and accounts. 1.12 Financial Instruments The Charity only enters into basi¢ financial instrument transactions that result in the recognition of fllwicial assels and liabilities such as trade and other debtors and credRtors, loans from banks and other third parties, loans to related partieg and investments in ordinary shares. 2 Taxation The Friends of Folkeslone Academy Ltd is a registercd chaTity and as such 115 income and gains are exempt from income tax and COryK)ralion tax to the extent that they are applied io its charitablc activities under the provisions of th¢ Income and Corpordlion Taxes Act 1988. 3 Other Income 2021 £'ooo 75 2020 £'ooo 75 Rent receivcd 4 Bank Interest 2021 £'ooo 2020 £,0 Bank interest received 5 Investment Income 2021 £'ooo 48 73 121 2020 £'ooo 59 70 129 Dividend from subsidiary Other investmenl income 6 Charitable Activities 2021 £'ooo 124 28 152 2020 £'ooo 56 34 90 Donations Depreciation Costs of charitable activities totalling £152,0(X) (2020:£90.000) were attributable as follows: £124,000 from general unrestricted funds (2020:£56.000). £nil from fixed asset unrestricted funds (2020'.£6,000) and £28,000 from restricted funds (2020:£28.000). 14
FIUENDS OF FOLKESTONE ACADEMY LTD NOTES TO THE FINthCLiL STATEMENTS FOR THE YEAR ENDED 31 JANLTARY 2021 7 Support Costs 2021 £'ooo 2020 £'ooo Legal and pmfessioDal s¢rvi¢cs Audit services Supp)rt costs of £7.000 (2020: £5.IK)O} were attribuiable to general unrestricted fund$ and all relate to governance costs. 8 Audltors, remuneration 2021 £'ooo 2020 Fees payable to the Companys auditors for the audit of the Compangs accounts 9 Staff Costs No staff were employed durin8 the year and no trusiee received remuneration OT expenses (2020: none). 10 Tangible flxed assets Land Fixtures nd and Buildings Equipment Totil £'o( £'ooo £'ooo 1,407 67 1,474 Cost Ai l February 2020 Additions At 31 January 2021 1,407 67 1,474 Depreciation At l Fcbruary 2020 Charge At 31 January 2021 208 28 236 67 275 28 303 67 Net Book Values At 31 January 2021 1.171 At 31 January 2020 1,199 1,199 At 31 January 2021 the clwity had no capital commitments (2020: £nil). 15
FRIENDS OF FOLKESTONE ACADEMY LTD NOTES TO THE FL¥ANCIAL STATEMENTS FOR THE IIAR ENDED 31 JANUARY 2021 The land and buildings relate to the Marlowe Innovation Centre. The building is leased from Kent County Council at a peppercorn rent over a lease of 75 years from July 2009. No value has been placed on the land iti the financial statements due to the restrictive covenallls attaching to th¢ &et. The charity has an option to acquire the land at the end of the lease terni. Included within langible red assets are land and buildings with a carrying value of £1,171,(X)0 (2020: £1.199.000) that are rented to the charity's wholly owned subsidiary. FFMA (Trading) Limited. I I Investment ID subsldlary undertaking 2021 £'ooo 2020 £'ooo FFMA (Trading) Limited The investhient comprises l ordinary share of £1 which is lo/0 of the issued share capital of the company. The company. which is registered in England and Wales, is th¢ trading ami of the charity. Ils results for the year were as follows.. 2021 2020 £'ooo 284 (229) TU[Ver 278 (212) Other operattr incoTh Profit fi)r the year bcfi)re tax DistrknX)n to the clwity Retar£d profil/(k>ss) 69 (48} 21 55 (59) (4) Assets Liabthtrs SharelK)kJers' fillMIs 108 64) 86 63 23 16
FIUENDS OF FOLKESTONE ACADELTrIY LTD ,NOTES TO THE FINthCIAL STATEMENTS FOR THE YEAR ET)ED 31 JANUARY 2021 12 Llsted investments 2021 2020 £'ooo 1,548 33 At Cost: Opening balance Additions Disposals Total investments at cost 1,581 175 1,756 1,581 At Market Value.. Charity Authoriscd Investrnent Fund Total Investments at market value 2,540 2,540 2,244 2,244 Movements in investments at market value Market value as at l FebnLory 2020 Additions at cosi less equalisation Disposals Unrcalised inveslment gaIn(loSSeS} Total investments at market value 2,244 175 1,976 33 235 2,244 2.540 The investments are h¢ld in a Sarasin & Partners Charity Authorised Investment Fund. Income received on th¢ inveslment portfolio during the year comprised of bank interest amounting 10 £207 (2020: £88) and dividend income of £73,570 (2020: £70,242). The fixcd asset investmen15 in the Sarasin fund are invested in a wide variety of seclors with a significant geographical spread. 13 Current asset Investmenl 2021 £'o 2020 £'ooo 112 112 Cash held by S&P LLP 10 io 14 creditorgIM0llnts falllng due within one yr 2021 £'ooo 133 2020 £'ooo Trade ¢r¢ditors Accruals and deferred income 17 17 135 17
FRIENDS OF FOLKESTONE ACADEMY L TD NOTES TO THE FII%ANCIAL STA TEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 15 Trnnsactions with Related Parties The charity received Tent of £75,(K)0 (2020: £75.000) in raspect of a lease to its subsidiary for its premises located at the Marlowe Innovation Centre. Additionally. the cIlty received a donation of £48,(MJO (2020.. £59,IK)O) from its subsidiary. Grants of £124.000 {2020: £56,000) were made to the Folkestone Academy in the year. One of the trustees of the charity (M Pearce) is a governor of Folk¢stone Academy. 16 Statement of Funds Febnry Ineoming Outgoing Transfe GAins & Janry 2020 Resources Resources IA)Sses 2021 £'ooo £'ooo £'ooo £'ooo £,{0 £'ooo Restsleted Funds Fixed A5sei Fwxl (28) 1,171 Unrestiicted fundg Gera1 Pu rwl Asset F1 2.412 196 (131) 121 2,598 2.412 (131) 121 2,598 Total Funqb 3.611 196 159 121 3,769 Of the restricted fixed asset fund. £286.000 (2020: £293,000) relates to grant fimding provided by Coastal Comtnunities FuThl. FebnMry Inconkng Outgoing TrnDSfe Gains & JAnuAry 2019 Resources Resources Losses 2020 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Restsleted FuD(is Fixed Asset Fu1 1227 (28) 1,199 Unrestricted fuD(b Ge[1 Futxl Fixed Ptsset FutMI 2,034 204 (61) 235 2,412 2.040 204 (67) 235 2.412 Total Fu 3267 204 (95 235 3,611 18
FRIENDS OF FOLKESTONE ACADEMY LTD OTES TO THE FINLNCIAL STATEMEKTS FOR THE YEAR ENDED 31 JANUARY 2021 17 Analysis of Net Assets Behyeen Funds Th¢ funds of the charity comprise ofthe following assets: Unrestiicted Restiicted Total Funds Fundq Funds 2021 2021 2021 £'ooo £'ooo 1.171 1.171 2.540 193 (135) Total Funds 2020 £'ooo 1.199 2.2M 185 (17) Tangbie red assets Fixed &sset llNestrnts Cwrent assets Creditors withitt otr 2.540 193 (135) 2,598 3,769 3.611 Umtstrleted Restricted Funds Funds 2020 2020 £'ooo £'ooo 1.199 Total Funds 2020 £'ooo 1.199 2,244 185 {17) Tot Funds 2019 £'ooo 1,233 1976 78 (20) l'a4 fLKcd asscts 2,244 185 (17) Current assets Creditopa due wtihin 01 year 2.412 1,199 3,611 3,267 19