Charity Registration No. 1112944
Company Registration No. 05513035 (England and Wales)
THE VOCATIONAL LEARNING TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
THE VOCATIONAL LEARNING TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr R D Morton Miss J O Ritchie Mr A Gilmore Mr K Mitchell Mr I Kershaw Mr CA Peterson Mr M McGarry Mrs M A McDonnell Mr T Stephenson Secretary Mr A Gilmore Charity number 1112944 Company number 05513035 Registered office The Work Place Heighington Lane Aycliffe Business Park Newton Aycliffe Co Durham DL5 6AH Independent examiner Harlands Accountants LLP The Greenhouse Amos Drive Greencroft Industrial Park Stanley England DH9 7XN Bankers The Co-Operative Bank PO Box 250 Skelmesdale WN8 6WT Solicitors DWF LLP Bridgewater Place Water Lane Leeds LS11 5DY
THE VOCATIONAL LEARNING TRUST
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the accounts | 6 - 12 |
THE VOCATIONAL LEARNING TRUST
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and accounts for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
Objectives and activities
Objectives and aims
The charity's main objective is to set up and oversee the running of the learning centre, the aim of which is to provide education, in particular, but not exclusively, in vocational and applied subjects aimed at young people in the North East with the ultimate goal of enhancing their skills and knowledge required for workplace readiness.
Public benefit
The charity's aims and achievements are set out within this report. The activities set out in the report have been undertaken to further the charity's charitable purpose for the public benefit. The trustees have complied, with the duty under section 4 of the Charities Act 2011, to have due regard to public benefit guidance published by the Charities Commission and the trustees have paid due regard to this guidance in deciding what activities the charity should undertake. The Work Place supports learning which is available to schools and colleges across the North East and North Yorkshire.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Charitable activities
The photovoltaic panels continue to contribute to the electricity bills and the interest free loan is on track to be repaid in seven years. Durham County Council’s Health & Safety Officers carried out the annual audit of The Work Place (Aycliffe) Ltd’s compliance with Health & Safety legislation.
The VOLT board did manage one meeting between lockdowns and complimented The Work Place (Aycliffe) Ltd staff on their Covid precautions and their ability to keep the business going despite all of the recent challenges. VOLT was not eligible for the Governments help for charities as the building did not qualify.
Plans for the future
A joint meeting of the two boards will hopefully be able to take place in 2021 to discuss the development of the first floor now that DCC have vacated their offices. The Work Place (Aycliffe) Ltd have successfully bid for funding to help this happen. Recruitment of another trustee will need to be reviewed.
Financial review
Reserves policy
It is the policy of the charity that unrestricted funds, which are the free reserves of the charity, remain at a level which will allow maximum flexibility in determining investment policy. There is now a £50,000 reserve in the Carsdale Asset Management account.
Principal funding sources
The principal funding source for the building is from rental income from the learning centre.
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THE VOCATIONAL LEARNING TRUST
TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
Investment policy and objectives
Restricted funds must be invested in accordance with the terms of the grant or donation. There are no restrictions on the charity's power to invest funds from the general fund.
Structure, governance and management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Vocational Learning Trust (VOLT) is constituted under a trust deed dated 19 July 2005 and is a registered charity - number 1112944.
Trustees
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Mr R D Morton Miss J O Ritchie Mr A Gilmore Mr K Mitchell Mr I Kershaw Mr CA Peterson Mr M McGarry Mrs M A McDonnell Mr T Stephenson
Organisational structure
The charity is run by a board of trustees, who make all decisions in relation to the running of the charity. There are currently no employees. The day to day running of the charity is the responsibility of Jane Ritchie, Founding Trustee.
Related parties
The Work Place (Aycliffe) Limited is a subsidiary company of the Vocational Learning Trust, the purpose of which is to operate the learning centre.
Disabled persons
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The trustees report was approved by the Board of Trustees.
Miss J O Ritchie
Miss JO Ritchie Dated: 30 June 2021
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THE VOCATIONAL LEARNING TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE VOCATIONAL LEARNING TRUST
I report on the accounts of the charity for the year ended 31 December 2020, which are set out on pages 1 to 12.
Respective responsibilities of trustees and examiner
The trustees, who are also the directors of The Vocational Learning Trust for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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(i) examine the accounts under section 145 of the 2011 Act;
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(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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(iii) to state whether particular matters have come to my attention.
Basis of independent examiner's report
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 a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner's statement
In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:
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(a) which gives me reasonable cause to believe that in any material respect the requirements:
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(i) to keep accounting records in accordance with section 130 of the 2011 Act; and
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(ii) to prepare accounts which accord with the accounting records, comply with the accounting requirements of the 2011 Act and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
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have not been met or
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(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Harlands Accountants LLP
The Greenhouse Amos Drive Greencroft Industrial Park Stanley DH9 7XN England
Dated: 30 June 2021
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THE VOCATIONAL LEARNING TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted funds Notes £ Income and endowments from: Donations and legacies 3 85,000 Charitable activities 4 102,492 Other income 5 11,912 Total income and endowments 199,404 Expenditure on: Raising funds - Charitable activities 6 189,797 Total resources expended 189,797 Net income/(expenditure) for the year/ Net movement in funds 9,607 Fund balances at 1 January 2020 1,501,660 Fund balances at 31 December 2020 1,511,267 |
Total 2019 £ 105,000 102,492 4,886 212,378 - 224,658 224,658 (12,280) 1,513,940 1,501,660 |
|---|---|
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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THE VOCATIONAL LEARNING TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 9 Investments Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 11 Net assets Income funds Unrestricted funds |
2020 £ £ 1,428,131 7,981 1,436,112 93,174 8,617 84,557 1,520,669 (9,402) 1,511,267 1,511,267 1,511,267 |
2019 £ £ 1,430,882 7,981 1,438,863 92,378 8,268 84,110 1,522,973 (21,313) 1,501,660 1,501,660 1,501,660 |
|---|---|---|
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 30 June 2021 and are signed on its behalf by:
Miss J O Ritchie Trustee
Company Registration No. 05513035
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
1.1 Accounting convention
These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The accounts are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
1.5 Resources expended
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grants offered subject to conditions which have not been met at the year end date are noted as commitment but not accrued as expenditure.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property Not depreciated Plant and machinery 25% on straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10 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.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 3 Donations and legacies 2020 £ Donations and gifts 85,000 For the year ended 31 December 2019 4 Charitable activities Rent received £ Charitable rental income 102,492 Analysis by fund Unrestricted funds 102,492 For the year ended 31 December 2019 Unrestricted funds 102,492 5 Other income funds £ Released from endowment funds 11,912 11,912 For the year ended 31 December 2019 4,886 |
2019 £ 105,000 |
|---|---|
| 105,000 | |
| 2019 £ 102,492 |
|
| 102,492 | |
| 2019 £ 4,886 |
|
| 4,886 | |
| 4,886 |
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
6 Charitable activities
| Charitable activities £ Depreciation and impairment 2,751 Accountancy 1,750 Legal and professional 300 4,801 Grant funding of activities (see note) 183,796 Share of support costs (see note ) 1,200 189,797 Analysis by fund Unrestricted funds 189,797 189,797 For the year ended 31 December 2019 Unrestricted funds 224,658 224,658 7 Grants payable Charitable activities £ Grants to institutions: Other 183,796 183,796 |
Total £ 2,751 1,750 300 4,801 183,796 1,200 189,797 189,797 189,797 |
2019 £ 3,516 1,750 300 |
|---|---|---|
| 5,566 217,796 1,296 |
||
| 224,658 | ||
| 224,658 | ||
| 224,658 | ||
| 2019 £ 217,796 |
||
| 217,796 |
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THE VOCATIONAL LEARNING TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 9 Tangible fixed assets Cost At 1 January 2020 At 31 December 2020 Depreciation and impairment At 1 January 2020 Depreciation charged in the year At 31 December 2020 Carrying amount At 31 December 2020 At 31 December 2019 |
Freehold property £ 1,427,582 1,427,582 - - - 1,427,582 1,427,582 |
Plant and machinery £ 333,027 333,027 329,727 2,751 332,478 549 3,300 |
Total £ 1,760,609 |
|---|---|---|---|
| 1,760,609 | |||
| 329,727 2,751 |
|||
| 332,478 | |||
| 1,428,131 | |||
| 1,430,882 |
Included in cost and valuation of land and buildings is freehold land of £207,360 (2019: 207,360).
The freehold property was re-valued to £1,150,000 on 4 July 2008 by an independent agent. The historical costs of the land and buildings is £4,770,456 (2019: £4,770,456). The trustees are of the opinion that this valuation represents a true open value of the property at the balance sheet date.
10 Creditors: amounts falling due within one year
| Other taxation and social security Accruals and deferred income 11 Creditors: amounts falling due after more than one year Other creditors |
2020 £ 5,107 3,510 8,617 2020 £ 9,402 |
2019 £ 4,758 3,510 |
|---|---|---|
| 8,268 | ||
| 2019 £ 21,313 |
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
THE VOCATIONAL LEARNING TRUST
12
Related Party Transactions
The Work Place (Aycliffe) Limited is a subsidiary company which was set up to lease and operate the learning centre. The trustees of the company include Miss JO Ritchie. During the year, The Vocational Learning Trust received rents of £102,500 (2019: £102,500) and recharged expenses of £nil (2019: £nil) from TWP (A) Limited. During the year, The Vocational Learning Trust made grants of £183,796 (2019: £217,796). As at 31 December 2020 The Vocational Learning Trust owed £nil to The Work Place (Aycliffe) Limited.
During 2012, Miss JO Ritchie made a loan to The Vocational Learning Trust of £85,680 for the installation of solar photovoltaic. As at 31 December 2020 the outstanding loan owed to Miss JO Ritchie was £9,402 (2019: £21,313). There are no fixed terms as to repayment or interest.
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