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2023-07-31-accounts

Company Registration No. 04956068 (England and Wales) Charity Registered No. 1114995

HOMEFIELD COLLEGE LIMITED (A Company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2
Independent auditor’s report 9
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Directors & Trustees:
 Mr A Hill (Resigned 8 November 2023)
Dr J Hargis (Appointed 5 October 2023)
Ms E Hunt
Mr D Jackson
Ms J Jarman (Resigned 30 November 2023)
Mr R Miller (Resigned 28 September 2022)
Ms J Parr (Chair)
Mr G Pirt (Appointed 23 March 2023)
Ms J Rawle (Resigned 6 November 2022)
Ms C Stevens
Ms A Traynor
Ms J Ward
Ms I Wilson
Senior Management: Ms T Forman (Principal)
Ms C Ibbotson (Head of Curriculum & Quality)
Ms S Dickie (Head of Corporate Services)
Mr M Sessions (Head of Funding & Compliance)
Registered Office: 217 Loughborough Road
Mountsorrel
Loughborough
Leicestershire
LE12 7AR
Registered Company Number: 04956068 (England and Wales)
Registered Charity Number: 1114995
Auditor: The Rowleys Partnership Ltd
Charnwood House
Harcourt Way
Meridian Business Park
Leicester
LE19 1WP
Bankers:
 NatWest Bank Plc
Market Place
Loughborough
Leicestershire
LE11 3EA
Solicitors:
 Shakespeare Martineau
2 Colton Square
Leicester
LE1 1QH

The company is a registered Charity limited by guarantee.

1

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

The Trustees, who are also the directors of Homefield College Limited for the purposes of company law, present their report and the audited financial statements for the year ended 31 July 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019.

The Trustees have had regard to the Charity Commission’s guidance on public benefit. The mission statement for the Charity is to provide learning and living experiences that empower the Homefield community to recognise their potential as active citizens.

Beneficiaries of the Charity are people aged 16+ who live in the UK, and have complex needs, including those with Autistic Spectrum Conditions and communication and learning difficulties. Places are offered following a detailed assessment and induction procedure designed to identify those the College can have the maximum positive impact on, during their time attending the College. The College receives funding which is based on the outcome of the assessment process. Funding is received from the Education and Skills Funding Agency (ESFA) and/or Local Authorities.

Structure, Governance and Management

Homefield College Limited is a company limited by guarantee. Each of the Trustees is also a member and agrees to contribute £10 in the event of the Charity being wound up. The Charity is governed by its Memorandum and Articles of Association dated 17 December 2003, as amended by special resolution dated 12 June 2006. It is a registered Charity with the Charity Commission.

The Principal reports directly to the Trustee Board. There is an agreed decision-making scheme with delegated powers outlined in respect of appointments and financial matters to the Principal (executive for the whole organisation).

The Charity has ten Trustees who meet as a Board at least four times a year. Each Trustee is also a member of at least one of the following subcommittees: Teaching, Learning & Assessment; Lifelong Learning, Living and Inclusion; and Finance and General Purposes. Each subcommittee meets at least three times a year. Trustees are allocated to the subcommittee which can best utilise their skills and knowledge. All Trustees complete an induction programme and participate in internal and external training programmes which are specific to Trustees. In addition, they can and do join staff on College training days.

Risk Management

The College maintains a risk register. The register is routinely reviewed and amended to mitigate risk to Learners, Staff and the Company. Strategic planning is still a risk due to the uncertain and changing economic climate. The College finances are managed well but the level of external uncertainty makes longer term planning difficult. Relationships with the local authorities are good and student numbers continue to grow. It is recognised that inflation and energy costs are an increased risk for the organisation and will impact on our ability to plan and control expenditure in certain conditions.

The Senior Management Team continue to seek to reduce the financial risk to the organisation by:

2

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Key management personnel remuneration

All Trustees give their time freely.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings and the level of responsibility required. In view of the charitable nature of the company the remuneration benchmark is determined through comparative research into similar local salaries with the living wage as the minimum hourly rate.

Objects of the Charity

The Charity’s objects are to advance the education and training and to relieve the needs of individuals with learning difficulties, communication difficulties, epilepsy and students on the autistic spectrum in particular but not exclusively by the provision of a college.

Objectives and activities

The College was set up in 1987, became a registered Charity in June 2006 and operates in Sileby, Mountsorrel, Barrow upon Soar and Nuneaton. The College provides high quality practical experiences for people with learning difficulties to develop their:

In 2022-23, the College provided practical experiences for beneficiaries as set out below:

The funding the College receives is related not just to the number of people it caters for but also the amount of individualised support a person requires.

The programme for each beneficiary is individualised to reflect person centred planning and for ESFA funded learners may consist of units, which are externally accredited.

The closure of the residential care provision saw the return of 5 leased properties to the Landlord. During the year the College sold a 6-bedroom house and purchased a former office space. The consolidation of the property portfolio will enable the College to deliver high quality practical and learning experiences within its own properties and reduce the need to lease and hire external facilities.

3

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Objectives and activities (continued)

To enable the learners to be more active in the community, their programmes are, where possible, delivered in community settings and the premises of other providers of education and training. During the year the College engaged with T.E.C.K (motor vehicle and engineering) and Enstruct Training (environmental construction and woodland) as partners to widen our vocational provision for the students.

In addition, we operate the ‘No Limits’ programme with MacIntyre Care who provide individualised programmes for students with very complex needs in order that they may access the main college at a point during their study programme.

In February 2023 the College commenced a partnership with The Green place in Sileby. Students are actively involved in the upkeep and maintenance of the grounds and are exposed to the many sustainability projects The Green place are involved in.

The College has invested time and money to develop realistic work-based environments within the general community. Examples include:

Achievements and performance

The College was subject to a short inspection by Ofsted in June 2017, when Inspectors judged the College to be good. Since 2017 we have taken steps to extend the curriculum offer and improve the quality of education. This includes addressing the next steps from the short inspection, which were:

4

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Achievements and performance (continued)

During 2022/23, progress has been made against the areas for development identified in the 2021/22 Quality Improvement Plan:

The College has a highly ambitious and exemplary Duke of Edinburgh Award programme. Work has been undertaken with the regional co-ordinator to ensure adjustments so that students can access the scheme at several different levels. This has resulted in 28 certificates of achievement at Bronze, 12 Bronze Awards and 3 Silver awards. This is over 30% of funded students. We are recognised by DoE as an exemplar provider within the SEND sector.

The College has an aspirational careers strategy. In 2022/23, 78% undertook external work placements with companies such as Timpson, Boots and Waitrose, and 5% completed internal placements.

The Student Union, in its second year gained traction with students having an impact on their College lives.

Increased support for staff and students’ well-being has been a particular focus to support all through these challenging times. Additional well-being opportunities have been implemented and monitoring of workloads to ensure that it is manageable for all.

Financial review

At the balance sheet date the net assets of the charity totalled £3,350,499 (2022 - £3,094,938). The total incoming resources for the year were £5,881,854 (2022 - £5,579,736). The total resources expended for the year were £5,626,293 (2022 - £5,202,478) resulting in a net surplus of £255,561 (2022 - £377,258).

Expenditure during the financial year 2022-23 has been used to:

Activities funded included:

5

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Financial review (continued)

In 2022-23 the College planned to:

Future plans

The Trustees and the College management continue to proactively amend provision and the resources required, both physical and human. The funding environment is challenging but the College has the necessary skills, expertise and reputation at all levels to carry forward the College’s mission in partnership with its stakeholders.

The College will maintain present partnerships and will continue to build proactive partnerships with local, regional and national funding bodies.

In 2023-24 the College plans to:

The Trustees has given consideration to the Charity Commission’s guidance on public benefit when establishing the aims and activities of the College.

Investment powers and policy

There is no formal investment policy as the College holds no investments, however the Trustees aim to make money held in the College bank accounts earn as much interest as possible.

Fundraising policy

The College does not fundraise externally and seeks to continue its work via careful stewardship of its existing resources.

Reserves policy

The Trustees have considered the level of reserves held by the Charity. Following a risk assessment linked to the development of a policy it has been agreed that the College adopts a reserves policy that free reserves (as defined below) should represent 15%-20% of budgeted expenditure. The position at the date of these accounts was that free reserves totalled £1,909,400 (2022: £1,727,767) which represented 34% (2022: 33%) of actual expenditure in the year. Free reserves are defined as total unrestricted funds less the value of unrestricted fixed assets. The Charity has built and maintained the desired level of free reserves to maintain and develop its charitable activities. The Charity has plans to utilise the additional free reserves to develop the College Estate and further improve the learning environments.

6

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Trustees and Trustees’ interests

The Trustees of the Charity, all of whom have been Trustees for the whole of the period, unless otherwise indicated, are listed below:-

Mr A Hill (Resigned 8 November 2023)
Dr J Hargis (Appointed 5 October 2023)
Ms E Hunt
Mr D Jackson
Ms J Jarman (Resigned 30 November 2023)
Mr G Pirt (Appointed 23 March 2023)
Mr R Miller (Resigned 28 September 2022)
Ms J Parr (Chair)
Ms J Rawle (Resigned 6 November 2022)
Ms C Stevens
Ms A Traynor
Ms J Ward
Ms I Wilson

No Trustee had any financial interest in contracts with the Charity during the year.

7

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 (continued)

Statement of Trustees’ responsibilities

The Trustees (who are also the directors of the charitable company 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

A resolution to re-appoint The Rowleys Partnership Ltd as auditors will be proposed at the Annual General Meeting.

The report has been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities and in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board

J Parr C Stevens 217 Loughborough Road
Trustee Trustee Mountsorrel
Loughborough
Leicestershire
Date: LE12 7AR

8

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF HOMEFIELD COLLEGE LIMITED

Opinion

We have audited the financial statements of Homefield College Limited (the ‘charitable company’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s 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 Ethical 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 other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit or otherwise appears to be materially misstated. If we identify such

9

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HOMEFIELD COLLEGE LIMITED (continued)

Other information (continued)

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:

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 directors’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, 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 control 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.

10

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HOMEFIELD COLLEGE LIMITED (continued)

Auditor’s 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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

11

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HOMEFIELD COLLEGE LIMITED (continued)

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 auditor’s 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.

Mrs P Swann-Jones FCA (Senior Statutory Auditor) for and on behalf of: The Rowleys Partnership Limited

Statutory Auditors Chartered Accountants Charnwood House Harcourt Way Meridian Business Park Leicester LE19 1WP

Date:

12

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023 (incorporating the Income and Expenditure account)

Unrestricted Restricted Total Total
Notes Funds Funds 2023 2022
£ £ £ £
Income and endowments from
Charitable activities 5.a 5,645,108 - 5,645,108 5,465,666
Investments 5.b 24,141 - 24,141 1,765
Other income 5.c 212,605
 - 212,605 112,305
Total income and endowments 5,881,854 - 5,881,854 5,579,736
Expenditure on
Charitable activities 6 5,626,293 - 5,626,293 5,202,478
Total expenditure 6 5,626,293 - 5,626,293 5,202,478
Net income/(expenditure) 255,561 - 255,561 377,258
Total funds brought forward 3,094,938 - 3,094,938 2,717,680
Total funds carried forward 3,350,499 - 3,350,499 3,094,938

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

The notes on pages 16 to 25 form part of these financial statements.

13

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

BALANCE SHEET AS AT 31 JULY 2023

Notes 2023 2022
£ £ £ £
Fixed Assets
Tangible fixed assets 8 1,441,099 1,367,171
Current Assets
Stock 9 - 1,082
Debtors 10 144,076 73,976
Cash at bank and in hand 11 2,567,022 3,209,730
2,711,098 3,284,788
Creditors: amounts falling due
within one year 12 (801,698) (877,476)
Net current assets 1,909,400 2,407,312
Total assets less current liabilities 3,350,499 3,774,483
Creditors:amounts falling due
after more than one year 13 - (579,545)
Other Provisions - dilapidations 14 - (100,000)
Net assets 3,350,499 3,094,938
Funds
Unrestricted funds 19 3,350,499 3,094,938
Total funds 3,350,499
 3,094,938

For the year ending 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.

Directors’ responsibilities:

The financial statements were approved by the Board of Trustees on 29 November 2023 and were signed on its behalf by:

J Parr C Stevens Trustee Trustee Company Registration No. 04956068

The notes on pages 16 to 25 form part of these financial statements.

14

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Cash flows from operating activities
Surplus for the financial year
Adjustment for:
Depreciation of tangible assets
Profit on disposal of fixed assets
Interest paid
Interest received
(Increase) in debtors
Decrease / (increase) in stock
(Decrease)/ Increase in creditors
(Decrease)/Increase in provisions
Net cash generated from operations
Cash flows from investing activities
Purchase of tangible assets
Sale proceeds from sale of fixed assets
Interest received
Net cash used in investing activities

Cash flows from financing activities
Repayment of bank loans
Interest paid
Net cash (used in)/from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
255,561
68,085
(212,605)
24,080
(24,141)
(70,100)
1,082
(31,792)
(100,000)
(89,830)
(504,407)
574,999
24,141
94,733
(623,531)
(24,080)
(647,611)
(642,708)
3,209,730
2,567,022		 2022
£
377,258
59,391
(112,305)
17,690
(1,765)
(5,838)
(200)
230,812
100,000
665,043
(74,530)
220,000
1,765
147,235
(43,986)
(17,690)
(61,676)
750,602
2,459,128
3,209,730

The notes on pages 16 to 25 form part of these financial statements.

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HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

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

1. Company Status

The company was registered as a Charity on 29 June 2006. Its legal entity is a company limited by guarantee and does not have a share capital. Each member of the company guarantees to undertake to contribute up to a maximum of £10 towards payment of the debts and liabilities of the company in the event of the company being wound up whilst he or she is a member or within one year after he or she ceases to be a member. The charitable company is incorporated in England.

2. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company’s financial statements.

Basis of preparation

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charitable company’s accounting policies (see note 3).

Fund accounting

Unrestricted funds are general funds that are available for use at the Trustees' discretion in furtherance of the charitable company’s objectives. Designated funds are unrestricted funds earmarked by the Trustees for a specific purpose. Restricted funds are those which are to be used in accordance with specific restrictions imposed by the donor or which have been raised by the College for specific purposes.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company 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 financial statements.

Income recognition

All income is included in the Statement of Financial Activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants, where entitlement is not conditional on the delivery of a specific performance by the charitable company, are recognised when the charitable company becomes unconditionally entitled to the grant.

Gifts in kind

Any gifts in kind have been included within the financial statements at a valuation as estimated by the Trustees.

16

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.

Irrecoverable VAT is charged against the category of resource expended for which it was incurred.

Tangible fixed assets

Individual fixed assets costing £1,000 or more are capitalised and stated at cost less depreciation. Depreciation is provided on a straight line basis so as to write off tangible fixed assets over their estimated useful lives at the following annual rates:

Freehold property - 2% on a straight line basis
Long leasehold property - 2% on a straight line basis
Improvements to leasehold properties - Over the remaining term of the lease
Fixtures, fittings and equipment - 20% on a straight line basis
Motor vehicles - 25% on a straight line basis

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Statement of financial activities.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in previous years. A reversal of an impairment loss is recognised immediately in the Statement of financial activities.

Stock

Stock has been valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined on the first in first out basis, and includes all costs of purchase and other costs incurred in bringing stock to its present location and condition.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of financial activities.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

17

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

Deferred Capital Grants

Capital-based grants are recognised in the Statement of Financial Activities on a systematic basis over the useful economic life of the asset to match the associated depreciation charge. Grants relating to an asset which are deferred are recognised as a liability (deferred income) and are not deducted from the carrying value of an asset.

Financial instruments

The charitable company only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

Provisions for liabilities

Provisions are made where an event has taken place that gives the charitable company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the obligation.

Provisions are charged as an expense to the Statement of Financial Position in the year that the charitable company becomes aware of the obligation and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Retirement benefits

The charitable company operates defined contribution pension schemes on behalf of its staff. Contributions are charged to the Statement of financial activities as they become payable in accordance with the rules of the schemes.

Operating Leases

Payments made under operating leases are charged to the profit and loss account in the period in which they are incurred.

Interest income

Interest income is recognised in the Statement of Financial Activities using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Financial Activities over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

18

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

3. Judgements in applying accounting policies and key sources of estimation uncertainty

Many of the amounts included in the financial statements involved the use of judgement and/or estimation. These judgements and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to prior experience but actual results may differ from the amounts included in the financial statements. The key areas in the financial statements where these judgements and accounting estimates have been summarised below:

4. Net income / (expenditure)

The net income / (expenditure) is stated after charging:


Depreciation of fixed assets
Fees payable to the Charity’s auditor for the audit of the Charity’s annual
financial statements
Profit on disposal of fixed assets
Income
a. Income from charitable activities
LA student fees
DSS student contributions
EFA student contributions
Barrow of Treats & Brewards
Other income
Grant income		 2023
£
(68,085)
(15,000)
212,605
2023
£
3,959,608
11,704
1,606,130
25,187
10,292
32,187
5,645,108		 2022
£
(59,391)
(13,200)
112,305
2022
£
3,977,062
19,471
1,381,910
15,031
4,601
67,591
5,465,666

5. Income

Of total income from charitable activities £5,645,108 (2022: £5,465,666) was unrestricted and £Nil (2022: £Nil) was restricted.

b. Investment income

All investment income arises from money held in interest bearing deposit accounts.

Of total income from investments £24,141 (2022: £1,765) was unrestricted and £Nil (2022: £Nil) was restricted.

c. Other income
Profit on disposal of fixed assets		 2023
£
212,605
___		 2022
£
112,305
__

19

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

6. Expenditure on charitable activities

Education and training
Premises
Insurances
Bank charges and interest
Coffee shop costs
Other administration costs
Governance
Total expenditure
 Staff
Other
Depreciation
Total
Total
costs
costs
2023
2022
£
£
£
£
£
3,584,406
1,101,062
20,082
4,705,550
4,234,769
-
340,433
31,013
371,446
503,212
-
59,581
-
59,581
47,228
-
16,623
-
16,623
22,873
46,495
13,805
-
60,300
60,322
-
370,251
16,990
387,241
320,445
-
25,552
-
25,552
13,629
3,630,901
1,927,307
68,085
5,626,293
5,202,478

Of total expenditure on charitable activities £5,626,293 (2022: £5,202,478) was unrestricted and £Nil (2022: £Nil) was restricted.

7. Staff numbers and costs

The average number of persons (including part time employees) employed by the charitable company during the year, was 149 (2022: 127).

The aggregate payroll costs of these persons were as follows:

2023
£
Wages and salaries
3,173,761
Social security costs
254,745
Pension costs
78,790
Agency staff
40,177
Termination payments
83,428
3,630,901
The number of higher paid employees was:
No.
£70,000 - £80,000
1		 2022
£
2,747,187
217,552
68,276
438,518
21,422
3,492,955
No.
1

Defined contribution pension contributions in the sum of £7,584 (2022: £7,088) were made in respect of the employee earning in excess of £70,000.

None of the Trustees (or any persons connected to them) received any remuneration or benefits from the charitable company during the year, or the previous year. One Trustee received reimbursed expenses of £27.27 from the charitable company during the year (2022: £27.90).

The non-Trustee key management personnel comprise the members of the senior management team, detailed in the Trustees’ Report on page 1, who collectively manage the college and its operations on a day-to-day basis. The total employee benefits received by the key management personnel during the year was £287,638 (2022: £303,545).

20

HOMEFIELD COLLEGE LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

8. Tangible fixed assets

Cost
At beginning of year

Additions
Disposals
At end of year

Depreciation
At beginning of year
Charge for the year
Disposals
At end of year
Net book value
At 31 July 2023

At 31 July 2022
 Long
Leasehold
Fixtures,
Freehold
Leasehold
Property
fittings &
Motor
Property
Property Improvements equipment
vehicles
Total
£
£
£
£
£
£
1,339,752
214,230
89,572
179,714
148,304 1,971,572
389,000
-
-
106,857
8,550
504,407
(474,752)
-
-
-
- (474,752)
1,254,000
214,230
89,572
286,571
156,854 2,001,227
212,901
69,248
75,269
99,647
147,336
604,401
23,707
4,140
3,165
35,393
1,680
68,085
(112,358)
-
-
-
- (112,358)
124,250
73,388
78,434
135,040
149,016
560,128
1,129,750
140,842
11,138
151,531
7,838 1,441,099
1,126,851
144,982
14,303
80,067
968 1,367,171

9. Stock

Coffee shop stock & PPE

2023 2022
£ £
- 1,082

Coffee shop stock purchases recognised in expenditure during the year as an expense was £13,528 (2022: £14,797).

10. Debtors

Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
8,571
10,639
124,866
144,076		 2022
£
12,038
4,000
57,938
73,976

Trade debtors are stated after a bad debt provision of £5,900 (2022: £5,900).

21

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

11. Cash and cash equivalents
Cash and cash equivalents 2023
2022
£
£
Cash at bank and in hand 2,567,022

3,209,730
Creditors: amounts falling due within one year 2023
2022
£ £
Bank loans and overdrafts - 43,986
Trade creditors 80,438 128,398
Taxation and social security 61,629 59,964
Other creditors 13,356 15,160
Accruals 327,632 367,136
Deferred capital grants 231,618 149,169
Deferred income 87,025 113,663
801,698 877,476

12. Creditors: amounts falling due within one year

Deferred income represents income received in advance for social care services provided by the College in the next financial year.

13. Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Bank loans

Analysis of loans
Repayable within one year
Repayable between one and two years
Repayable between two and five years
Repayable in more than five years

Included in liabilities falling due within one year
 2023
£
-

-
-
-
-


-
-
-

2022
£
579,545
43,986
459,344
51,361
68,840

623,531
(43,986)

579,545

The bank loans were secured on 44 Cossington Road, Sileby and its associated assets, and on 217 Loughborough Road, Mountsorrel and its associated assets. The bank also holds a debenture over all assets of the company.

The loan for 44 Cossington Road, Sileby was repaid in full on 14 December 2022 when the property was sold.

The loan for 217 Loughborough Road, Mountsorrel was repaid in full on 20 July 2023.

22

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

14. Other provisions

2023 2022
£ £
` Dilapidations provision - 100,000

The provision for dilapidations was made in respect of 4 tenant repairing leased properties for which a 12 month notice period came to an end on 31 May 2023. During the year £72,000 of the provision was utilised and £28,000 was reversed, leaving a balance of £nil as at 31 July 2023.

15. Financial instruments

Financial instruments
2023 2022
£ £
Financial assets measured at amortised cost 2,711,098
 3,284,788
Financial liabilities measured at amortised cost 801,698 1,557,021

Financial assets measured at amortised cost comprise trade debtors, prepayments and accrued income and cash at bank and in hand.

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, accruals, deferred income and other creditors.

16. Pension costs

The company operates defined contribution pension schemes. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the schemes. Total contributions paid for the year ended 31 July 2023 were £78,790 (2022: £68,276).

17. Financial commitments

As at 31 July 2023, the company had future commitments under non-cancellable operating leases as follows:

follows:
2023 2022
£ £
Expiry date:
Due within one year 104,436 107,631
Due one and two years 179,546 55,648
Due two to five years 43,658 37,500
Due over five years 9,375 21,875
______ ______
337,015 222,654

23

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

18. Capital commitments

As at 31 July 2023, the company had future capital commitments as follows:

Property – salon refurbishment at 22 High Street,
19. Unrestricted funds
At 1
August 2022
£
General funds
Fixed assets
1,367,171
Free reserves
1,727,767
3,094,938
Comparative unrestricted funds
At 1
August 2021
£
General funds
Fixed assets
1,459,727
Free reserves
1,257,953
2,717,680		 2023
2022
£
£
Barrow.
9,933
-
__
__
Income Expenditure
At 31
Transfers
July 2023
£
£
£
£
-
(68,085)
142,0131,441,099
5,881,854
(5,558,208)
(142,013)1,909,400
5,881,854
(5,626,293)
-
3,350,499
Income Expenditure
At 31
Transfers
July 2022
£
£
£
£
-
(59,391) (33,165)1,367,171
5,579,736
(5,143,087)
33,165
1,727,767
_
5,579,736
(5,202,478)
-
3,094,938

20. Related party transactions

The college has accreditation with The National Autistic Society, of which Mrs C Stevens (trustee) is Chief Executive. During the year, accreditation fees of £2,471 (2022: £2,247) were paid to The National Autistic Society.

24

HOMEFIELD COLLEGE LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

21. Amounts disbursed as agent
Discretionary Support Funds
At beginning of year
Amounts received
Amounts disbursed
At end of year		 2023
£
18,742
53,550
(35,160)
37,132		 2022

£ £
26,905
30,487
(38,650)
18,742

Discretionary Support Funds are available solely to students, where the College is acting as paying agent. In these circumstances, the support funds and related disbursements are excluded from the Statement of Financial Activities. The amounts unspent are included in creditors at the year

25