2023-08-31-accounts - Hampshire Christian Education Trust

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REGISTERED COMPANY NUMBER: 05212585 (England and Wales)

REGISTERED CHARITY NUMBER: 1106136

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

FOR

HAMPSHIRE CHRISTIAN EDUCATION TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

		Page
Report oftheTrustees	1	to	6
Report oftheIndependent Auditors	7	to	10
Statement ofFinancial Activities		11
Balance Sheet		12
Cash FlowStatement		13
Notes fo the Cash FlowStatement		14
NotestotheFinancialStatements	15	to	25

HAMPSHIRE CHRISTIAN EDUCATION TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims A) The advancement of education on the basis of Christian principles in the county of Hampshire and elsewhere including (but not by way of limitation) the provision of such education in any educational establishment for the general education of children or adults on the basis of such Christian principles as the trustees may from time to time think fit;
B) The advancement of the Christian faith in accordance with the doctrines set out in the schedule to the articles and the worship of God in the county of Hampshire and elsewhere as the trustees may from time to time think fit including (but not by way of limitation) the preaching and proclamation of the Christian gospel and the teaching of Christian doctrine and principles and other such purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity.
C) The relief of persons who are in conditions of hardship or distress or who are aged or sick in the county of Hampshire and elsewhere as the trustees may from time to time think fit.

Significant activities

The Trust runs The King’s School which has a primary department and senior department located on one site. The schoo! currently has 230 pupils, 72 at primary and 158 at senior.

Public benefit

The King's School provides benefit to the public within Hampshire by providing an excellent education based on Christian principles for children aged 4 to 16. Fees are intended to be affordable for families on average incomes and are deliberately kept below the normal rates for similar independent schools. In addition, the school offers bursary assistance to families on low income {to the value of £125k in the year ending 31 August 2023).

Children are drawn from families across the full range of Christian denominations as well as a proportion from families with no church connections. There are no academic selection criteria and whenever possible the schoo! will accommodate pupils with learning difficulties and physical disabilities. There has been an increase in educational support for children with additional needs and improvements to the site for disabled access.

Volunteers

The school has voluntary help from parents and others in a wide range of activities, including governorship, support with events and the general maintenance of facilities.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The trustees refer to public benefit throughout this report.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENT AND PERFORMANCE

Charitable activities In February 2023 the school underwent its first full inspection by the Independent Schools Inspectorate (ISI). This was a Focused Compliance and Educational Quality Inspection. All regulations were met and ISI graded the school Good for the achievement of the pupils, including their academic development, and Excellent for their personal development.

Academic attainment remains strong with 97% of pupils attaining 5 or more standard grade GCSE results in August 2023 including English and Maths. In addition 37% of all grades awarded were Grades 7-9, a particularly impressive result being in mind the overall fall in grades nationally and the fact that the school is non-selective and pupils have a wide range of ability.

The school is involved in several areas of charitable giving, regularly supporting several international charities, as well as those in the local neighbourhood. Pupils undertake various fund raising activities to support these.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW

Financial Review

The trust's income in the year ending 31 August 2023 was £1.6 million in comparison to £1.73 million the previous year. The majority of the income was from school fees and extracurricular activities, and the remainder was from fundraising activities, donations and the gift aid claimed on these.

Total expenditure for the year ending 31 August 2023 was £1.63 million, compared with the £1.56 million the previous year. This resulted in a shortfall of £29k.

The majority of expenditure was on the costs of charitable activities which are divided between:

(A) The direct costs of education (e.g. staffing, resources, activities) which amounted to £1,175k, a £36k reduction from the previous year. The largest component was staff costs of £935k which was £100k more than the previous year largely as a result of general pay increases. The second largest area of direct cost was bursary awards which has reduced by around £95k to £125k (the third year of significant reduction - last year was £240k).
(B) Support costs (e.g. support staff wages, general overheads, mortgage interest) increased to £440k (from £336k).

A number of Key Performance Indicators are being used to plan and improve financial performance. One of these is the ratio of staff costs to net fee income for which the target is 60-65%. The ratio in the year ending August 2023 was 75%.

Net current assets have reduced to E277k. This was due to the remaining costs of the MUGA and some essential maintenance projects on the school buildings resulting in cash assets reducing and fixed assets increasing.

During the year the advance fees balance increased to £188k and the deposits balance increased to £178k. Advance fees are not positively sought from parents as the school does not wish to be reliant on them, however, some parents who have the money to pay in advance are then able to have peace of mind that their child's fees are paid for a defined period.

Reserves policy

The Trust has most of its reserves in the buildings (Lakesmere House and the Homelodge building) which were valued at £2.1m in February 2020.

It is the aim of the Trustees to build up reserves fo a level equal to three month's regular expenditure (monthly expenditure is currently around £125k). This aim has been met this year as current assets plus bank loan payments due within one year and deposits stand at £506k (August 2023).

The school plans to replace the existing temporary buildings with a permanent structure within the next two years. The school has planning permission and a preferred builder, is fundraising and is in discussions regarding finance. The Trustees will review the policy in light of project needs.

Principal funding sources

Operational costs are met primarily from school fees which are set at an affordable rate for the target market. Additional funding comes from donations,

The capital projects are now funded from cash reserves which are backed by a bank mortgage and advance fee payments.

Future Plans

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The focus for the future will be to continue to strive for excellence in educational provision and to market the school effectively so that all 305 places are taken. Maximum pupil numbers are 15 per year in Reception, Years 1, 2 and 3; and 20 each in Years 4-6 (total primary 120 pupils - currently 76). In senior we can have 35 per year in Years 7-9 and 40 per year in Years 10 & 11 (total senior 185 - currently 157). Longer term aims include a purpose-built primary unit to replace some temporary buildings on the school site which is expected fo increase primary capacity to 140.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The articles of association allows for the members of the charity to appoint new trustees and to vary the number of trustees (minimum of three). Any person appointed as a trustee must fully accept the doctrines set out in the articles of association.

Recruitment and appointment of new trustees

Organisational structure

Governance and management of The King's School is undertaken by the Senior Leadership Team and the Governance Board. The Leadership Team is responsible for day to day operations. Their job is to deliver quality Christian education within the necessary legal and regulatory requirements. The Leadership Team is accountable to the Governance Board. The Governance Board comprises both Trustees and Governors and their responsibility is supporting and empowering the Leadership Team to carry our its responsibilities effectively.

Induction and training of new trustees

Induction and training of new trustees is carried out by meetings with other trustees and key people, review of key documents and involvement in the life of the school.

Pay and Remuneration

Salary levels are set annually. Key management personnel are paid less than would be expected within the state sector at rates of between 70 -75% of salaries based on DfE figures. The school has a desire to increase salaries where possible such that all staff are paid more in line with those in the state system. However, this will be a gradual process and not something that can be achieved currently.

Wider network

The school is a member of the Independent Schools Association (ISA). It is also a member of the Christian Schools Trust (CST).

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HAMPSHIRE CHRISTIAN EDUCATION TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The main risks identified by the Trustees are set out below. These are not all new risks to the trust and have been successfully managed in previous years by exercising care in budgeting and decision-making.

The main risks at present are connected with the external economy.

1) Pupil numbers have remained relatively static with the year ending with 229 pupils on role (September 2023). Current pupil numbers are 230 (March 2024). Improving marketing continues to be a priority to draw new pupils to the school. The majority of new pupils come from within the larger church community and by word of mouth.
2) The proportion of pupils requiring bursaries has reduced with improved processes for awarding and reviewing bursaries. However, this still represents a risk to the school's income.
3) External factors have increased the risk of existing parents defaulting on fee payments. This risk has been managed well by continuing to ensure that a member of staff is given time to keep abreast with credit control.
4) The deterioration of the primary accommodation is a serious cause of concern. The school is actively pursuing replacement accommodation to resolve this.
5) Future rises in interest payments on the trust's borrowing are also a potential risk. 6) All of the above give rise to a risk of cash flow problems. Alongside prudent budgeting and regular monitoring, we have the ability to improve cash flow through collecting advance fee payments.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 05212585 (England and Wales)

Registered Charity number 1106136

Registered office The King’s School Senior Lakesmere House Allington Lane, Fair Oak Eastleigh Hampshire $050 7DB

Trustees

S F Kinchin

C Caws J Pavey M Parker A Johnston C Dendy S Froud

Auditors Morris Crocker Limited Chartered Accountants Statutory Auditors Station House North Street Havant

Hampshire PO9 1QU

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

Barclays Bank Portsmouth City Branch Portsdown Group PO Box 6 Portsmouth Hampshire PO6 7DB

COMMENCEMENT OF ACTIVITIES The charity which has been trading since 1995, was incorporated as a Company limited by guarantee, in August 2004. Dormant company accounts were prepared for the year to 31 August 2005 and the running of the school transferred to the new charitable company on 1 September 2005,

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Hampshire Christian Education Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
- observe the methads and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and fo enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

in so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Morris Crocker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the board of trustees on eb Gf Sf Bebe and signed on its behalf by:

(_pewf Parker - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAMPSHIRE CHRISTIAN EDUCATION TRUST

Opinion

We have audited the financial statements of Hampshire Christian Education Trust (the ‘charitable company’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

~ give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethicat Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except fo the extent otherwise explicitly stated in cur report, we do not express any form of assurance conclusion thereon,

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requiremenis.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAMPSHIRE CHRISTIAN EDUCATION TRUST

Matters on which we are required to report by exception

in the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal contro! as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

in preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAMPSHIRE CHRISTIAN EDUCATION TRUST

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern.

Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation.

We set financial statement materiality level based on the level of income. As a not for profit organisation raising income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level.

Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested.

Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override.

The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation.

Management assessed there is no going concern risk. The audit undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

HAMPSHIRE CHRISTIAN EDUCATION TRUST

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 state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

“~ “_

Martin Southern BA(Hons) FCA (Senior Statutory Auditor) for and on behalf of Morris Crocker Limited Chartered Accountants Statutory Auditors Station House North Street Havant Hampshire POS 1QU Date: ws

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

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||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |Unrestricted|Restricted|Total|Total| |Notes|funds£|funds£|funds£|funds£| |INCOME|AND|ENDOWMENTS|FROM| |Donations and|legacies|2|18,580|-|18,580|48,120| |Charitable|activities|5| |Advancement|of education|1,571,436|-|1,571,436|1,665,210| |Other|trading|activities|3|1,111|-|1,111|2,844| |Investment|income|4|12,313|“|12,313|10,833| |Total|1,603,440|=|1,603,440|1,727,007| |EXPENDITURE|ON| |Raising funds|6|11,914|-|11,914|7,017| |Charitable|activities|7| |Advancement|of education|1,588,052|32,738|4,620,790|1,552,662| |Total|1,599,966|32,738|1,632,704|1,559,679| |NET INCOME/(EXPENDITURE)|3,474|(32,738)|(29,264)|167,328| |Transfers|between funds|23|412,172|(112,172)|-|-| |Net movement|In funds|115,646|(144,910)|(29,264)|167,328| |RECONCILIATION|OF|FUNDS| |Total funds|brought forward|2,351,053|144,910|2,495,963|2,328,635| |TOTAL FUNDS CARRIED FORWARD|2,466,699|-|2,466,699|2,495,963|

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The notes form part of these financial statements

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HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585)

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||||||||| |---|---|---|---|---|---|---|---| |BALANCE SHEET| |31|AUGUST|2023| |2023|2022| |Notes|£|£| |FIXED ASSETS| |Tangible assets|15|2,508,555|2,409,125| |CURRENT ASSETS| |Debtors|16|150,736|49,859| |Cash|at bank|634,611|1,026,781| |785,347|1,076,640| |CREDITORS| |Amounts|falling due within|one year|17|(507,940)|(603,946)| |NET CURRENT ASSETS|277,407|472,694| |TOTAL ASSETS|LESS|CURRENT| |LIABILITIES|2,785,962|2,881,819| |CREDITORS| |Amounts|falling|due|after more than|one year|18|(319,263)|(385,856)| |NET ASSETS|2,466,699|2,495,963| |FUNDS|23| |Unrestricted|funds|2,466,699|2,351,053| |Restricted funds|-|144,910| |TOTAL FUNDS|2,466,699|2,495,963|

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These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

TheWit financial.V ca statementsoe andwere wereapproved signed onby itsthe behalfBoard by: of Trustees and authorised for issue on ™ee ee MParker-Trustee

The notes form part of these financial statements

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

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|||||||| |---|---|---|---|---|---|---| |2023|2022| |Notes|£|£| |Cash|flows from|operating|activities| |Cash|generated|from|operations|4|(201,388)|410,078| |Interest paid|(18,282)|(13,179)| |Finance|costs|paid|(11,914)|(7,017)| |Net cash|(used|in)/provided|by operating|activities|(231,584)|389,882| |Cash|flows|from|investing|activities| |Purchase|of tangible|fixed|assets|(172,899)|(364,721)| |Interest|received|3,682|866| |Finance|interest income|8,631|9,967| |Net cash|used|in|investing|activities|(160,586)|(353,888)| |Change|in|cash|and|cash|equivalents| |in|the|reporting|period|(392,170)|35,994| |Cash|and|cash|equivalents|at the| |beginning|of the|reporting|period|1,026,781|$90,787| |Cash|and|cash|equivalents|at the end| |of the|reporting|period|634,611|1,026,781|

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The notes form part of these financial statements

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

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||||||| |---|---|---|---|---|---| |2023|2022| |£|£| |Net (expenditure)/income for the reporting|period|(as|per the| |Statement of Financial|Activities)|(29,264)|167,328| |Adjustments|for:| |Depreciation|charges|73,468|§3,883| |interest|received|(3,682)|(866)| |Interest paid|18,282|13,179| |Finance|costs|11,914|7,017| |Amortisation|charges|-|900| |Finance|interest|income|(8,631)|(9,967)| |Increase|in|debtors|(100,877)|(31,626)| |(Decrease)/increase|in|creditors|(162,598)|210,230| |Net cash|(used|in)/provided|by operations|(201 ,388)|410,078|

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2 ANALYSIS OF CHANGES IN NET FUNDS

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||||||||| |---|---|---|---|---|---|---|---| |At|1.9.22|Cash|flow|At|31.8.23| |£|£|£| |Net|cash| |Cash|at bank|7,026,781|(392,170)|634,611| |1,026,781|(392,170)|634,611| |Debt| |Debts|falling|due within|1|year|(49,535)|(1,168)|(50,703)| |Debts|falling due|after|1|year|(338,728)|40,750|(297,978)| |(388,263)|39,582|(348,681)| |Total|638,518|(352,588)|285,930|

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Total

The notes form part of these financial statements

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

q. ACCOUNTING POLICIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Going concern

The trustee directors consider that there are no material uncertainties regarding the charitable company's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, itis probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 10% on cost and 2% on cost Plant and machinery - 20% on cost Fixtures and fittings - 20% on cost Computer equipment - 33% on cost

Individual fixed assets costing £500 or more are capitalised at cost, with the exception of computer equipment which is capitalised if the individual cost is £250 or more.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight fine basis over the period of the lease.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

1%. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable investments in stocks and shares. The measurement basis used for these financial instruments is detailed below.

Debtors and cash at bank & in hand

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due, Cash at bank and in hand includes cash hefd on deposit or in a current account.

Creditors and provisions

	Creditors and provisions	Creditors and provisions	Creditors and provisions
	Creditors and provisions are recognised where the charitable company has a present obligation resulling from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions
	are normallyrecognised attheir settlementamount afterallowing foranytrade discounts due.
2.	DONATIONSAND LEGACIES
		2023	2022
		a	£
	Donations Giftaid	18,580	44,495 3,625
		18,580	48,120
3.	OTHER TRADING ACTIVITIES
		2023	2022
		e	£
	Fundraising events	1,111	2,844
4,	INVESTMENT INCOME
		2023	2022
		£	£
	Depositaccountinterest	3,682	391
	Finance interest income	8,631	10,442
		12,313	10,833

Ail investment income is derived from assets held in the United Kingdom.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

5.	INCOME FROM CHARITABLE ACTIVITIES	INCOME FROM CHARITABLE ACTIVITIES
				2023	2022
		Activity		£	£
	School feesand bursaries	Advancement ofeducation		1,492,539	1,617,908
	School trips and sales	Advancement ofeducation		76,679	39,446
	Rental income	Advancement ofeducation		1,268	2,290
	Sundry income Grants	Advancement ofeducation Advancement ofeducation		950 -	5,066 500
				1,571,436	1,665,210
	Grants received, included in	the above, are as follows:
				2023	2022
				£	£
	Evalve Advice			“	500
6.	RAISING FUNDS
	Raising donations and legacies
				2023	2022
				£	£
	Financecost			11,914	7,017
7.	CHARITABLE ACTIVITIES	COSTS
			Direct	Support
			Costs (see	_costs (see
			note 8)	note 9)	Totals
			£	£	E
	Advancement ofeducation		1,175,333	445,457	1,620,790
8.	DIRECT COSTS OF CHARITABLE ACTIVITIES
				2023	2022
				£	£
	Staffcosts			934,579	834,996
	Educational resources			32,131	63,298
	Trips, camps and events			55,577	43,475
	Training			2,977	2,635
	DBS and licences			12,231	9,781
	Fundraising costs Bursaries			13,064 124,774	16,861 240,434
				1,175,333	1,211,480

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

9. SUPPORT COSTS

9.	SUPPORT COSTS
			Governance
		Management	costs	Totals
		£	£	£
	Advancement ofeducation	440,351	5,106	445,457
	Support costs, included in theabove, are as follows:
	Management
			2023	2022
			Advancement
			of	Total
			education	activities
			£	£
	Wages Hire ofplantand machinery		95,640 17,674	120,000 20,356
	Ratesandwater		17,727	12,821
	Insurance		22,153	18,786
	Lightand heat		2,870	6,106
	Minibus and car parkexpenses		10,522	7,878
	Legaland professional fees		9,366	16,432
	Repairs and maintenance		106,173	38,093
	Stationery, postage and phone		29,278	21,934
	Sundryexpenses		36,616	5,332
	Donations Amortisation ofintangible fixed assets		§82 -	474 900
	Depreciation oftangible assets		73,468	53,883
	Bank interest		1,561	1,924
	Mortgage interest		16,721	11,255
			440,351	336,174
	Governance costs
			2023	2022
			Advancement
			of	Total
			education £	activities £
	Auditors’ remuneration		5,106	5,008
10.	NET INCOMEMEXPENDITURE}
	Netincome/(expenditure) is stated after charging/({crediting):
			2023	2022
			£	£
	Auditors’ remuneration		5,106	5,008
	Depreciation -owned assets		73,469	53,883
	Hireofplantand machinery		17,674	20,356
	Websiteamortisation		-	900

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

TRUSTEES' REMUNERATION AND BENEFITS

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees’ expenses

During the year no trustees (2022: none) were reimbursed for out of pocket expenses.

STAFF COSTS

STAFF COSTS
	2023	2022
	£	E
Wagesand salaries	951,841	892,301
Social securitycosts	61,991	53,967
Otherpension costs	16,387	8,728
	1,030,219	954,996

The average monthly number of employees during the year was as follows:

	2023	2022
AdvancementofEducation Support staff	54 9	60 10
	63	70

No employees received emoluments in excess of £60,000.

Key management personnel

The key management personnel of the charitable company comprise the trustees, the Head Teacher, the Deputy Head Teacher, the Assistant Head Teacher and the Business Manager. The total employee benefits of the key management personnel of the charitable company were £95,640 (2022: £122,707). This does not include remuneration for trustees, all of which is reported as per note 11.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

	Unrestricted	Restricted	Total
	funds	funds	funds
	£	£	£
INCOMEAND ENDOWMENTS FROM
Donations and legacies	13,256	34,864	48,120
Charitable activities
Advancement ofeducation	1,665,210	-	1,665,210
Othertrading activities	2,634	210	2,844
Investment income	10,833	-	10,833
Total	1,691,933	35,074	1,727,007
EXPENDITURE ON
Raising funds	7,017	=	7,017
Charitable activities
Advancementofeducation	1,549,321	3,341	1,552,662
Total	1,556,338	3,341	1,559,679

continued...

Page 19

HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

13.	COMPARATIVES FORTHESTATEMENT OFFINANGIAL ACTIVITIES -continued	COMPARATIVES FORTHESTATEMENT OFFINANGIAL ACTIVITIES -continued	continued
		Unrestricted	Restricted	Total
		funds	funds	funds
		£	£	£
	NETINCOME	135,595	31,733	167,328
	RECONCILIATION OF FUNDS
	Totalfunds broughtforward	2,215,458	113,177	2,328,635
	TOTALFUNDSCARRIEDFORWARD	2,351,053	144,910	2,495,963
14.	INTANGIBLE FIXEDASSETS
				Website
				£
	COST
	At 1 September2022and
	31 August 2023			4,500
	AMORTISATION
	At 1 September2022 and
	31 August2023			4,500
	NET BOOKVALUE
	At31 August2023			-
	At31 August2022			3
15.	TANGIBLE FIXEDASSETS
			Improvements
		Freehold	to	Plant and
		property	property	machinery
		£	£	£
	COsT
	At 1 September 2022 Additions	2,100,000 42,333	327,376 122,124	24,195 -
	At31 August2023	2,142,333	449,500	24,195
	DEPRECIATION
	At1September2022	59,200	.	19,371
	Chargeforyear	29,884	32,738	848
	At31 August2023	89,084	32,738	20,219
	NET BOOKVALUE
	At31 August2023	2,053,249	416,762	3,976
	At31August2022	2,040,800	327,376	4,824

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

TANGIBLE FIXED ASSETS - continued

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

	Fixtures
	and fittings £	Motor vehicles £	Computer equipment £	Totals E
COST
At 1 September 2022 Additions	100,794 6,490	14,700 -	80,256 1,952	2,647,321 172,899
At31 August2023	107,284	14,700	82,208	2,820,220
DEPRECIATION
At 1 September 2022	78,347	14,700	66,578	238,196
Charge foryear	4,623	-	5,376	73,469
At 31 August2023	82,970	14,700	71,954	311,665
NET BOOK VALUE
At 31 August2023	24,314	-	10,254	2,508,555
At31August2022	22,447	-	13,678	2,409,125

Cost or valuation of freehold properly at 31 August 2027 is represented by:

			£
Revaluation	in	2020	200,000
Revaluation	in	2015	272,285
Revaluation Cost	in	2010	(421,687) 2,049,402
			2,100,600

The Trust's other tangible fixed assets are included at cost.

if freehold property had not been revalued it would have been included at the following historical! cost:

		2022	2021
		£	£
Cost		2,049,402	2,049,402
Aggregate	depreciation	827,009	790,572

Freehold property was revalued on an open market basis on 31 August 2020 by Vail Williams.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2023	2022
		£	£
	Tradedebtors	127,748	18,516
	Otherdebtors	750	3,617
	Prepayments	22,238	27,726
		150,736	49,859
17.	CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEAR
		2023	2022
		£	£
	Bank loansand overdrafts (see note 19) Fees in advance	50,703 188,402	49,535 149,734
	Trade creditors	69,692	139,320
	Social securityand othertaxes Othercreditors	13,069 1,087	14,199 4,602
	Deposits Accruals and deferred income	178,220 6,767	154,070 95,486
		507,940	603,946

Fees in advance represents school fees received in advance for future academic years.

			2023	2022
			£	£
	Broughtforward Amountreleased to incoming resources Amountdeferred inyear		292,114 (99,624) 158,442	328,542 (182,884) 146,457
	Carriedforward		350,932	292,114
48.	CREDITORS: AMOUNTSFALLING DUEAFTER	AFTER MORETHAN ONEYEAR
			2023	2022
			£	£
	Bank loans (see note 19) Fees in advance		297,978 21,285	338,728 47,128
			319,263	385,856
19.	LOANS
	An analysis ofthe maturity ofloans is given below:
			2023	2022
			£	£
	Amounts falling due within oneyearon demand: Bank loans		50,703	49,535
	Amountsfallingdue between twoand five Bank loans	years:	121,319	133,710
	Amounts falling due in more than five years:
	Repayable byinstalments: Bank loans		176,659	205,018
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HAMPSHIRE CHRISTIAN EDUCATION TRUST

LEASING AGREEMENTS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

Minimum lease payments under non-cancellable operating leases fall due as follows:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2023|2022| |£|£| |Within|one year|7,656|7,656| |Between|one|and|five|years|1,914|9,570| |9,570|17,226|

----- End of picture text -----

SECURED DEBTS

The following secured debts are included within creditors:

----- Start of picture text -----
||||| |---|---|---|---| |2023|2022| |£|fs| |Bank|loans|348,681|388,263|

----- End of picture text -----

The bank loan was secured by a legal charge over the freehold property at Lakesmere House, Allington Lane, Fair Oak, Eastleigh.

ANALYSIS OF NET ASSETS BETWEEN FUNDS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|2022| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |£|£|£|£| |Fixed|assets|2,508,555|-|2,508,555|2,409,125| |Current assets|785,347|~|785,347|1,076,640| |Current|liabilities|(507,940)|-|(507,940)|(603,946)| |Long term|liabilities|(319,263)|=“|(318,263)|(385,856)| |2,466,699|-|2,466,699|2,495,963| |MOVEMENT|IN|FUNDS| |Net|Transfers| |movement|between|At| |At|1.9.22|in|funds|funds|31,8.23| |2|£|£|£| |Unrestricted|funds| |General|fund|2,244,038|(39,630)|112,172|2,316,580| |Revaluation|reserve|50,598|-|-|50,598| |Enrichment fund|56,417|43,104|-|99,521| |2,351,053|3,474|112,172|2,466,699| |Restricted|funds| |Muga fund|144,910|(32,738)|(112,172)|-| |TOTAL FUNDS|2,495,963|(29,264)|.|2,466,699|

----- End of picture text -----

MOVEMENT IN FUNDS

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

MOVEMENT IN FUNDS- continued

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

Net movement in funds, included in the above are as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|1,547,271|(1,586,901)|(39,630)| |Enrichment fund|56,169|(13,065)|43,104| |1,603,440|(1,599,966)|3,474| |Restricted|funds| |Muga fund|-|(32,738)|(32,738)| |TOTAL FUNDS|1,603,440|(1,632,704)|(29,264)| |Comparatives|for movement|in|funds| |Net| |movement|At| |At|1.9.21|in|funds|31.8.22| |£|£|£| |Unrestricted|funds| |General fund|2,115,063|128,975|2,244,038| |Revaluation|reserve|50,598|-|50,598| |Enrichment fund|49,797|6,620|56,417| |2,215,458|135,595|2,351,053| |Restricted|funds| |Muga fund|113,177|31,733|144,910| |TOTAL FUNDS|2,328,635|167,328|2,495,963|

----- End of picture text -----

Comparative net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||| |---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted|funds| |General fund|4,674,840|(1,545,865)|128,975| |Enrichment fund|17,093|(10,473)|6,620| |1,691,933|(1,556,338)|135,595| |Restricted|funds| |Muga fund|35,074|(3,341)|31,733| |TOTAL FUNDS|1,727,007|(1,559,679)|167,328|

----- End of picture text -----

Enrichment fund This fund is a fund designated by the trustee directors to be a physical account where fundraising events and school trips could be accounted for to ensure that all monies raised in this way could be spent on enhancements to the school rather then lost in the day to day running of the school.

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HAMPSHIRE CHRISTIAN EDUCATION TRUST

MOVEMENT IN FUNDS - continued
ULTIMATE CONTROLLING PARTY

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

Transfer between funds

The transfers from restricted to unrestricted funds relate to funds on which restrictions have been satisfied and therefore are no longer considered to be restricted funds.

RELATED PARTY DISCLOSURES

Purchases of £nil (2022: £17,937) have been paid to a company who has a common director to Hampshire Christian Education Trust. The aged creditor balance at the year end with this company is £nil (2022: £523). This company has also lent Hampshire Christian Education Trust £nil (2022:£nil). Interest paid on this loan totals to £nil (2022; Enil).

During the year 3 (2022: 4) trustees had a total of 3(2022: 7) children attending the school. The total fees paid relating to these school places was £22,737 (2022: £15,107).

All transactions are at arms length.

The charitable company is not under the control of another entity or any one individual.

LEGAL STATUS

The charitable company is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

Page 25