EBENEZER COMMUNITY COLLEGE LIMITED
Annual Report and Financial Statements for the year ended 31 AUGUST 2023
Charity registration number 1108579
CONTENTS
ORIGINS OF THE CHARITY............................................................................................ 1 STRUCTURE AND GOVERNANCE ................................................................................ 2 ACHIEVEMENTS AND PERFORMANCE ........................................................................ 3 FINANCIAL REVIEW ........................................................................................................ 3 TRUSTEE RESPONSIBILITIES ....................................................................................... 5 INDEPENDENT EXAMINER’S REPORT ......................................................................... 6 STATEMENT OF FINANCIAL ACTIVITIES ...................................................................... 7 BALANCE SHEET ............................................................................................................ 8 NOTES TO THE FINANCIAL STATEMENTS .................................................................. 9 REFERENCE AND ADMINISTRATION DETAILS ......................................................... 14
Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
ORIGINS OF THE CHARITY
Ebenezer community college (ECC) began in 1991, Ebenezer which means “Stone of Help” was first known as Ebenezer Welfare Centre (EWC) and was established by members of the African community in response to the needs of asylum seekers and refugees in 1991. The charity was founded to be a safe haven and support for refugees, asylum seekers within the community.
In 2003, the centre moved with the changing times and re-registered a new name as Ebenezer Community Learning Centre providing education, training and support to vulnerable adults and disadvantaged communities living within and around Haringey (North London). Then in 2017 To reflect our change, partnerships and delivery of further and higher education/academic qualification registered to Ebenezer Community College.
Ebenezer Community College (ECC) is located in seven sisters, North London. The college was established in 2003 by the founder Mr Osei Kwateng. ECC has been through a journey of change and development over the years.
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
STRUCTURE AND GOVERNANCE
GOVERNING DOCUMENTS
The Trustee's present their annual report with the accounts of the charity for the year ended 31st AUGUST 2023
Appointment of Trustees
The appointment of trustees is governed by the Trust Deed of the charity.
The Board of Trustees are authorised to appoint new trustees to fill vacancies arising through resignation or death of any existing trustees.
Constitution, Objects and Policies
The principal activity of the College continues to be that of providing academic and vocational training and advice to local community adult learners primarily from Black and Minority Ethnic backgrounds, to help them towards enhanced employment and/or further and higher education opportunities. Ebenezer Community College (ECC) is an Adult Education charity that aims to support all learners towards personal and economic freedom through achievement of educational goals our learners gain enhanced confidence, mindset and skill that allow them to embrace new employment challenges and opportunities. Additionally, ECC partners with colleges to offer pathways to further and higher education.
Development, Activities and Achievement
The college continues to operate in a challenging environment. Despite, this student numbers at the college grew by 53% in the last period. This has had positive impacts on college finances shown by an improvement in the college balance sheet. Relationships with the college’s main contractors continue to develop facilitating the provision of complementary courses in Further and Higher Education. The college is optimistic for the next financial period due to the introduction of new courses and the addition of School of Teaching to the current Schools of Computing, Health and Business. Management are confident that this new Teaching course will provide significant growth to student numbers and revenue. The college remains on schedule with repayments of the CBILS loan.
Public benefit statement
The Trustee confirms that it has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Ebenezer Community College Ltd.’s aims and objectives and in planning future activities. The purposes of the charity are to advance the objectives of the Ebenezer Community College or any such objects for educational purposes connected with or related to said college.
Consequently, the Trustee considers that the ECC operates to benefit the general public and satisfies the public benefit test.
Approval
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
This report was approved by the trustees on __28/03/2024_and signed on their behalf.
ACHIEVEMENTS AND PERFORMANCE
We continue to work with our partners to introduce new courses that offers great opportunity to the ethnic minorities. A four-year foundation courses for both business on health were introduced which is now helping those in our community to expand on the education and developed new careers.
We have also trained more than 100 teachers who have gained qualification in diploma in educations and are now trainee teachers.
The college is now midway in completing repayments of the £75,000 CBILS loan.
PLANS FOR FUTURE PERIODS
The Trustee does not consider there to be any material uncertainty around going concern.
FINANCIAL REVIEW
The trustees consider the performance of the charity to be satisfactory. The charity's main source of funds continues to be subcontracted funding for training and skill acquisition. All funds are unrestricted and are used to meet expenditures. Surplus funds are held at bank and are used to meet unforeseen expenditure that may occur are prepared on accrual basis in accordance with Statement of Recommended Practice (SORPs) for further and higher education (FE / HE) and FRS102.
Overview of Financial Performance
Income
In 2022/23 the charity’s total income for the year was £448,683, an overall increase of £157,049 from the previous year (2021/22: £291,634), due to an increase in the number of student and the courses offered in the college.
Expenditure
Total expenditure for the year was £362,548 (2021/22: £279,706), comprising of direct cost, £118,331; (2021/22: £80,906) and administrative cost £244,217 (2021/22: £198,801).
Reserves policy
the trustees have agreed a formal policy on reserves. The Trustees have set a reserve policy which requires that the reserves are maintained at a level which ensures that ECC
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
core activity could continue during a period of unforeseen circumstance with a knock-on effect on liquidity.
The Trustees agreed that a general unrestricted reserve should be maintained with an objective to cover up to six months of the running costs of the charity to enable ECC to meet contingency situations and/or carry out discreet pieces of work that will help us meet our strategic business plans aims.
The Trustees reserves policy in accordance with the Charity Commission's guidelines is to maintain total free reserves, excluding the element which relates to tangible fixed assets, at a level which is no less than approximately six months operating costs i.e. £181,274 in order to provide the charity with some ability to cope with unforeseen expenditure and for interruptions in income flows. Based on 2022/23’s expenditures, the monthly operating costs amount to circa £30,212. The charity’s total free reserves, excluding tangible fixed asset, at 31st August 2023 amounted to £(4,488) (2022 £(90,661)). The trustees are taking steps to increase and maintain free reserves to the desired level.
Risk review
The trustees regularly review an assess risk faced by the charity. Appropriate actions are then scheduled to address the residual risk, mitigating it to a level the trustees consider acceptable. The management committee have revealed the many risks which ECC is exposed to and systems have been established to mitigate this risk.
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Disclosure and barring services checks for all volunteers and Staffs continue to be implemented.
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All volunteers undertake a training course and are regularly supervised.
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Adequate insurance cover for the scheme has been taken out to cover employees and volunteers carrying out works for on behalf of students of Ebenezer Community College.
Principle risk and uncertainties primarily concerns lack of funding for vocational qualifications that can generate diverse income. We continue to work toward this strategic business objectives.
Monitoring of the implementation of the financial strategy generally is carried out via completion of risk register that is presented to the Trustees at every board meeting. The risk registers also identify all key areas of risk across the organisation, rating them under each organisation area (higher, average and low). Actions are then taken to mitigate the risk and any changes in risk rating is updated in the risk register.
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
TRUSTEE RESPONSIBILITIES
The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law, the Trustee must not approve the financial statements unless the Trustee is satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustee is required to:
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select suitable accounting policies and then apply them consistently.
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make judgements and accounting estimates that are reasonable and prudent.
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable the Trustee to ensure that the financial statements comply with the Charities Act 2011. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustee is aware:
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there is no relevant audit information of which the charity’s auditors are unaware; and
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the Trustee has 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.
Financial statements are published on the Trustee’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Trustee’s website is the responsibility of the Trustee. The Trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.
Adopted and signed for on behalf of the Trustees.
Chairman of Trustees ECC Ebenezer house, London, N15 5NH
Date: 28[th] March 2024
Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEE OF EBENEZER COMMUNITY COLLEGE LIMITED
I report to the to the trustees on my examination of the accounts of the Ebenezer Community College [the charity], charity number 1108579 for the year ended the 31st August 2023, which are set out on page 6 to 11.
Respective responsibility of trustees an examiner
The charity’s trustees are responsible for the preparation of the accounts in accordance with the charities Act 2011 (‘the Act’).
The charity’s trustees consider that an audit is not required for this year under section 144 of the Act and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act
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to follow the applicable directions given by the Charity Commission (under section 145 (5)(b) of the Act, and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s statement
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and the comparison of the accounts presented with these records. It also includes considerations of any unusual items or disclosures in the account and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the account present a true and fair view and the report is limited to those matters set out below.
Independent examiner’s statement
Since your charity’s gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I'm a member of the Association of Chartered Certified Accountants (ACCA) which is one of the listed bodies.
In connection with my examination, no materials matters have come to my attention which gives me cause to believe, that in any material respect:
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the accounting records were not kept in accordance with section 130 of the charities Act 2011
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the accounts did not accord with accounting records: or
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the accounts did not comply with applicable requirement concerning the form and content of the account set in the charities (Accounts and Reports) Regulations 2008 other than any requirements that the accounts give a ‘true and fair’ view which is not a matter considered as part of the independent examination.
I have no concerns and have come across no other matter 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.
Atim D Channa, ( FCCA) Sino UK Bridge Consulting Ltd 9 Dell Close, London, E15 3NU
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 AUGUST 2023
| SOFA | Notes | General Fund | Designated Funds | Restricted Funds | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| INCOME | 2 | |||||||||
| Tuition Fee | 6,900 | 0 | 0 | 6,900 | 6,361 | |||||
| Refund | (810) | 0 | 0 | (810) | 0 | |||||
| OLC | 368,300 | 0 | 0 | 368,300 | 235,391 | |||||
| SFA/EFA | 0 | 0 | 0 | 0 | 0 | |||||
| CTG | 53,128 | 0 | 0 | 53,128 | 30,010 | |||||
| DBS | 4,410 | 0 | 0 | 4,410 | 4,950 | |||||
| Income from Rent | 0 | 0 | 0 | 0 | 1,949 | |||||
| Commission | 13,400 | 0 | 0 | 13,400 | 4,000 | |||||
| Training | 0 | 0 | 0 | 0 | 8,400 | |||||
| Others | 3,355 | 0 | 0 | 3,355 | 573 | |||||
| Total | 448,683 | 0 | 0 | 448,683 | 291,634 | |||||
| EXPENDITURE | 9 | |||||||||
| Charitable Activities: | ||||||||||
| Direct Charity Expenses | 118,331 | 0 | 0 | 118,331 | 80,906 | |||||
| Administration Expenses | 244,217 | 0 | 0 | 244,217 | 198,801 | |||||
| TOTAL EXPENDITURE | TOTAL EXPENDITURE | 362,548 | 0 | 0 | 362,548 | 279,706 | ||||
| Net Income/(Deficit) | 86,135 | 0 | 0 | 86,135 | 11,927 | |||||
| Transfers between funds | 0 | 0 | 0 | 0 | 0 | |||||
| Total transfers and gains | 0 | 0 | 0 | 0 | 0 | |||||
| Net movement in funds | Net movement in funds | 86,135 | 0 | 0 | 86,135 | 11,927 | ||||
| Balance B/F | (80,212) | 0 | 0 | (80,212) | (92,139) | |||||
| 0 | ||||||||||
| Balance C/F at 31st August | 5,923 | 0 | 0 | 5,923 | (80,212) |
The above results were derived from continuing activities.
There were no other recognised gains and losses other than those shown above.
The Notes on pages 11 to 16 form part of these financial statements.
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
BALANCE SHEET
AS AT 31 AUGUST 2023
EBENEZER COMMUNITY COLLEGE LIMITED Draft BALANCE SHEET AS AT 31st AUGUST 2023
| ~~Fr~~ | ~~F~~ | ||||||
|---|---|---|---|---|---|---|---|
| ~~Fr~~ | 2023 | ~~F~~ | 2022 | ||||
| Total | Total | ||||||
| Note | £ | £ | £ | ||||
| Fixed Assets: | |||||||
| Tangible Fixed Assets | 4 | ~~F~~ | 10,411 | 10,449 | |||
| Current Assets:- | |||||||
| Debtors | 5 | ~~F~~ | 94,470 | 0 | |||
| Bank & Cash in Hand | 6 | ~~F~~ | 2,844 | 18,443 | |||
| Total Current Assets | ~~F~~ | 97,314 | ~~F~~ | 18,443 | |||
| Creditors :amounts falling due within one year | 7 | (51,632) | (46,922) | ||||
| Net Current Assets | ~~F~~ | 45,682 | ~~F~~ | (28,480) | |||
| Creditors :amounts falling due more than one year | ~~Fr~~ | (50,170) | (62,181) | ||||
| Net Assets | 5,923 ~~Fr... ~~ |
(80,212) ~~FO~~ |
|||||
| FUNDS | |||||||
| Unrestricted Funds | ~~Fr~~ | 5,923 | (80,212) | ||||
| Unrestricted Funds B/FWED | - | - | |||||
| Total Funds | 5,923 (80,212) ~~F.OOOODDDOUdEOOON~~ |
The notes on pages 11 to 16 form part of these financial statements Approved and signed on behalf of the Trustee. Mr Ernest Kwateng
Director, ECC
Date: 28[th] March 2024
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the financial statements of the charity.
(a) Basis of preparation
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared under the historical cost convention and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to further education (FE) and higher education (HE) preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) and the Charities Act 2011.
(b) Going concern
The financial statements have been prepared on a going concern basis as the Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern.
In making this assessment, the Trustee has considered the current high inflationary pressures on future income levels, expenditure requirements and the liquidity of the charity over the 12 months period from the date of the signed accounts. It has not identified any indication that the charity will not be able to meet liabilities, including planned commitments, as they fall due. For this reason, the Trustee continues to adopt a going concern basis for the preparation of the financial statements.
(c) Key management judgements and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of decisions about carrying values of assets and liabilities that are not readily apparent from other sources. The resulting accounting estimates will, by definition, seldom equal the related actual results.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Management do not consider there to be any material estimates or revisions requiring disclosure.
(d) Statement of Cash Flows
As per section 14.1 of the Charities SORP the Charity is not required to produce a statement of cash flows on the grounds that it is a small entity.
(e) Income
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
All income is included in the Statements of Financial Activities (SOFA) when the charity is legally entitled to the income; it is more likely than not that economic benefit associated with the transaction will come to the charity and the amount can be quantified with reasonable certainty.
(f) Expenditure
Expenditure is accounted for on an accruals basis and has been classified under the principal category of ‘expenditure on charitable activities’. 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 settlement will be required, and the amount of the obligation can be measured reliably.
(g) Taxation
The charity meets the definition of a charitable trust for UK income tax purposes, as set out in Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the charity is exempt from UK taxation in respect of income or capital gains under part 10 of the Income Tax Act 2007 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.
(h) Insurance
The charity, elected Members and staffs are covered by insurance liability policies, including ECC’s indemnity insurance.
2. ANALYSIS OF INCOME
| ANALYSIS OF INCOME | ANALYSIS OF INCOME | ~~F~~ | ~~F~~ | ||||
|---|---|---|---|---|---|---|---|
| ~~F~~ | 2023 | ~~F~~ | 2022 | ||||
| Unrestricte | Restricted | Restricted | £ | £ | |||
| Tuition Fee | 6,900 | 6,900 | 6,361 | ||||
| Tuition Fee Refund | (810) | (810) | 0 | ||||
| OLC | 354,967 | 354,967 | 235,391 | ||||
| SFA/EFA | 0 | 0 | 0 | ||||
| CTG | 64,765 | 64,765 | 30,010 | ||||
| DBS | 4,410 | 4,410 | 4,950 | ||||
| Income from Rent | 0 | 0 | 1,949 | ||||
| Commission | 13,400 | 13,400 | 4,000 | ||||
| Training | 0 | 0 | 8,400 | ||||
| Other trading Income | 5,051 | 5,051 | 573 | ||||
| Total | 448,683 | 0 | 448,683 | 0 | 291,634 |
3. EXPENDITURE ON CHARITABLE ACTIVITIES
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
| 2023 | 2022 | |
|---|---|---|
| DIRECT EXPENDITURE: | £ | £ |
| Agents Comission | 19,550 | 14,850 |
| Accreditation & Approval | 13,722 | 2,070 |
| Volunteers Expenses & allawances | 710 | 210 |
| Tutors Salaries | 72,844 | 38,190 |
| Assessors Salaries | 11,505 | 25,586 |
| Total | 118,331 | 80,906 |
| MANAGEMENT & ADMIN: | ||
| Inter Account movement | 0 | 0 |
| Refund Received (Sales Returns and Allowances) | 0 | 0 |
| Admin Staff Salaries | 33,862 | 18,198 |
| Management Salaries | 67,553 | 54,100 |
| HMRC | 4,500 | 144 |
| Rent | 45,372 | 48,256 |
| Rates | 5,565 | 6,693 |
| Light & Heat | 8,419 | 9,091 |
| Building Maintenance | 8,053 | 140 |
| Computer & Office Expenses | 959 | 9,230 |
| Insurance | 11,315 | 1,267 |
| Legal Fees | 1,488 | 3,630 |
| Health & Safety | 580 | 339 |
| Postage, Printing & Stationery | 963 | 680 |
| Advertising & Promotion | 1,086 | 765 |
| Telephone | 3,682 | 3,783 |
| Cleaning & Sundry Expenses | 15,376 | 14,422 |
| DBS | 3,356 | 2,100 |
| Accountancy Fee | 1,500 | 1,123 |
| Professional Fees) | 12,601 | 11,974 |
| Consultancy | 0 | 3,478 |
| Travel & Hotel Exps | 2,563 | 984 |
| Training | 6,146 | 1,409 |
| Interest Paid | 1,212 | 1,445 |
| Bank Charges | 3,495 | 3,352 |
| Depreciation | 4,356 | 2,197 |
| 244,001 | 198,801 |
INDEPENDENT EXAMINER’S REMUNERATION
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
In 2022/23 an independent examination fee of £1,500 was recharged (2021/22: £1,250). No other services were provided to the charity by its independent examiners during the year (2021/22: £nil).
TRUSTEE EXPENSES
The Trustee of ECC did not receive any remuneration or reimbursement of expenses during 2022/23 (2021/22: nil).
4.1. CREDITORS – Amounts due within one year
----- Start of picture text -----
2023 2022
£ £
Trade Creditors (OLC) 0 0
Accrued Payroll Cost (51,632) 46,922
Deferred income 0 0
Others 0 0
Total (51,632) 46,922
----- End of picture text -----
4.2. CREDITORS – Amounts due after more than one year
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Bank Loan (SBIL) | 50,170 | (62,181) | |
| Total | 50,170 | (62,181) |
5. ANALYSIS OF NET ASSETS BY FUND
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
| At 31 August 2023 | Unrestricted funds |
Unrestricted Restricted funds |
Total at 31st August |
|---|---|---|---|
| 2023 | |||
| £ | £ | £ | |
| Fixed Assets | 10,411 | 10,411 | |
| Investment | 0 | 0 | 0 |
| Current Assets | 97,314 | 0 | 97,314 |
| Total | 107,726 | 0 | 107,726 |
| At 31 August 2022 | Unrestricted funds |
Unrestricted Restricted funds |
Total at 31st August |
| 2022 | |||
| £ | £ | £ | |
| Fixed Assets | 10,449 | 10,449 | |
| Investment | 0 | 0 | 0 |
| Current Assets | 18,443 | 0 | 18,443 |
| Total | 28,891 | 0 | 28,891 |
6. MOVEMENT IN FUNDS
Purpose of unrestricted funds
The general fund comprises the accumulation of income surpluses because of surplus Revenue income after grants are charged to this fund. Any undistributed annual income is held for use in future years in accordance with the objectives of the trust.
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Ebenezer community college (ECC) | Annual Report and Financial Statements 2022/23
REFERENCE AND ADMINISTRATION DETAILS
CHARITY NAME: ECC
Registered charity number: 1108579
OFFICE OF THE CHARITY:
Ebenezer House, 726-728 Seven Sisters Road, N15 5NH
TRUSTEES:
SENIOR MANAGEMENT:
Director
Ernest O Kwateng of Ebenezer Community College
INDEPENDENT EXAMINERS:
Atim D Channa Sino UK Bridge, 9 Dell Close E15 3NU
BANKERS:
HSBC Bank Plc., P.O. 131, 1 The Town, Enfield, London, EN2 6LD
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