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← The Island Project

2025-05-31-accounts

REGISTERED COMPANY NUMBER: 05924196 (England and Wales) REGISTERED CHARITY NUMBER: 1119034

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 May 2025

for

THE ISLAND PROJECT

Michael Dufty Partnership Limited Statutory Auditors 59-61 Charlotte Street St Pauls Square Birmingham West Midlands B3 1PX

THE ISLAND PROJECT

Contents of the Financial Statements for the Year Ended 31 May 2025

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11 to 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 25
Detailed Statement of Financial Activities 26 to 27

THE ISLAND PROJECT

Report of the Trustees for the Year Ended 31 May 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Governing Document

The organisation is a charitable company limited by guarantee (“the Charity”), incorporated on 4 September 2006. The Charity was established under a memorandum of Association which established the objectives and powers of the charitable company and is governed under its Articles of Association. In the event of the Charity being wound up members are required to contribute an amount not exceeding £10.

Recruitment and appointment of Trustees

The directors of the Charity are also charity trustees for the purpose of charity law and under the Charity’s Articles are known as Trustees.

OBJECTIVES AND ACTIVITIES

Objectives and aims

To advance the education and well being of children and young people with autism

To advance the acceptance of those diagnosed with autism through a school and through the provision of training, training materials and the dissemination of research results to professionals and carers.

To promote and maintain assistance

To provide guidance, assistance and help to families and carers of children and young people diagnosed with autism and associated disorders.

To raise funds and invite and receive contributions

The Charity will draw, make, accept, endorse, discount, execute and issue bills, cheques and other instruments and to operate bank accounts in the name of the Charity, providing that in raising funds the Charity shall not undertake any substantial permanent trading activities and shall conform to any relevant statutory regulations.

The Charity has power to acquire, alter, improve and (subject to such consents as may be required by law) to charge or otherwise to dispose of property. It also has power to pay out of the funds of the Charity the costs, charges and expenses of and incidental to the formation and registration of the Charity.

To co-operate with other charities

To co-operate with other charities, voluntary bodies and statutory authorities operating in furtherance of the objectives of similar charitable purposes and to exchange information and advice with them.

To establish or support any additional charitable trusts, associations or institutions formed for all or any of the objectives.

Page 1

THE ISLAND PROJECT

Report of the Trustees for the Year Ended 31 May 2025

OBJECTIVES AND ACTIVITIES Significant activities Jerrings Hall Farm and HS2

The School has completed its first year at Jerrings Hall Farm.

As reported previously, the changed, and much smaller environment, has meant that the School has had to make some practical changes to its operation, such as engaging additional behaviour support. The School has not been able to offer places to verbal pupils under the age of 14 which is an area where we have seen an increased need.

The Trustees had hoped that moving into a newly refurbished site would mean that ongoing maintenance would be minimal, at least in the first few years. However, due to the number of years that Jerrings Hall was unoccupied (over 8 years), there have been a number of maintenance repairs which have arisen as a direct result of this. The school has had to undertake extensive repairs to the fabric of the building, such as repointing on the Hall and Cottage.

The final claim to HS2 has been approved by the Trustees and submitted. However, despite hopes that a final resolution with HS2 would be completed by the end of 2024, this has not yet been reached.

STRATEGIC REPORT

Achievements and performance Charitable activities

Consultations from local authorities increased by 99.10% on the previous year (which itself was up by 108% on the preceding year). Since detailed records were kept for the academic year 2019 to 2020, the number of consultations received has increased by 2,650%. At the time of writing the report, we have already exceeded the number of consultations for the comparable period last year by almost 50%.

The level of need is indicative of a SEND system in crisis, and the Trustees are carefully monitoring any proposed government changes. Due to the level of need that the School is tailored to accept, the Trustees do not feel that any of the mooted changes will have a significant impact on the School.

On a positive note, the School held a Summer Family Day for friends and supporters. The event featured live music, food and activities. It was wonderful to see our families and pupils join us for the day, along with the many people who have supported us on our journey to new premises. The donations of many individuals and organisations meant that we were able to subsidise food and activities for everyone who came along to celebrate. Particular thanks should be extended to the artists who came along to provide music on the day.

The School is starting to build relationships with new organisations and communities in our new local area, and pupils are exploring the local surroundings as part of their community access.

With thanks to the McPhillips family and Digital Office Systems, our Orwell pupils each completed a weeks’ work experience at the DOS offices in Leicester. Both DOS and our pupils thoroughly enjoyed the experience and we hope to repeat this in future years.

The School has been successful in achieving the Super Kind Award and Eco Award this year.

The Super Kind Award the Social Impact Schools Award given by SuperKind Education to schools that have students participate in social action activities. We are proud that all of our pupils have taken part in this award which recognises and celebrates active citizenship, character development, and social action, such as volunteering, fundraising, and raising awareness for causes

The "Eco Award" for schools is an international accreditation that recognises schools for their environmental achievements and sustainability efforts. It is implemented by Keep Britain Tidy and uses , the program uses a seven-step framework to guide students in making their schools more eco-friendly. The award celebrates schools that take action on topics like energy, waste, and biodiversity, empowering students with environmental awareness and green skills.

Page 2

THE ISLAND PROJECT

Report of the Trustees for the Year Ended 31 May 2025

STRATEGIC REPORT

Financial review

Financial position

For the year ended 31 May 2025, The Island Project reported total income of £1,548,345, a decrease from the £1,944,700 reported in the previous year. Total resources expended for the period amounted to £1,826,878, an increase from £1,660,558 in 2024.

Consequently, the charity reports a net expenditure (deficit) for the year of £278,533, compared to a net income (surplus) of £284,142 in the prior year. This deficit has been funded from the reserves brought forward.

The reduction in total income is primarily attributable to a decrease in compensation income from HS2, which fell to £350,000 from £940,252 in the previous year.

Despite the drop in total income, the charity’s core operational revenue remains robust. Income from charitable activities (School fees) showed positive growth, increasing to £1,191,827 from £1,003,664 in 2024.

Expenditure increased during the year as the charity invested in its operations. The primary driver for this increase was direct Staff Costs, which rose to £906,653 (2024: £513,080). This reflects an investment in student capacity, with the average monthly number of employees increasing from 35 to 39.

Reserves policy

It is the policy of the charity that should the charity have any unrestricted funds which have not been designated for a specific use, the charity would aim to maintain these at a level equivalent to between three and six month’s expenditure. The trustees continue to aim for the charity to be in a position where it can ensure that that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05924196 (England and Wales)

Registered Charity number

1119034

Registered office

Jerrings Hall Farm Tanworth Lane Shirley Solihull West Midlands B90 4DX

Trustees

Jacqueline Anne Walters-Hutton Gordon Booth Lucy Doble Connie Browning (appointed 16/5/2025)

Company Secretary

Mrs S D Gallagher

Page 3

THE ISLAND PROJECT

Report of the Trustees for the Year Ended 31 May 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Michael Dufty Partnership Limited Statutory Auditors 59-61 Charlotte Street St Pauls Square Birmingham West Midlands B3 1PX

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Island Project 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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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:

Page 4

THE ISLAND PROJECT

Report of the Trustees for the Year Ended 31 May 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the profit or loss of the Charity for that year. In preparing these financial statements, the directors are required to:

The Trustees are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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 Trustees are aware;

AUDITORS

A resolution proposing that BK Plus Limited (formerly Michael Dufty Partnership Limited) be reappointed as auditors of the Charity will be put to the Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 16 February 2026 and signed on the board's behalf by:

Mrs J A Walters-Hutton - Trustee

Page 5

Report of the Independent Auditors to the Trustees of The Island Project

Opinion

We have audited the financial statements of The Island Project (the 'charitable company') for the year ended 31 May 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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

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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 6

Report of the Independent Auditors to the Trustees of The Island Project

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal 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.

Page 7

Report of the Independent Auditors to the Trustees of The Island Project

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011 and Companies Act 2006; and

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and considering available audit information.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions; and

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Page 8

Report of the Independent Auditors to the Trustees of The Island Project

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Dufty Partnership Limited Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 59-61 Charlotte Street

St Pauls Square Birmingham West Midlands B3 1PX

16 February 2026

Page 9

THE ISLAND PROJECT

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 May 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
5
Education
Other trading activities
4
Other income
6
Total
EXPENDITURE ON
Raising funds
7
Charitable activities
8
Education
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2025
Unrestricted
fund
£
6,217
1,191,827
301
350,000
1,548,345
-
1,826,878
1,826,878
(278,533)
464,305
185,772		 2024
Total
funds
£
285
1,003,664
499
940,252
1,944,700
303
1,660,255
1,660,558
284,142
180,163
464,305

The notes form part of these financial statements

Page 10

THE ISLAND PROJECT

Balance Sheet 31 May 2025

2025
Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
15
78,608
CURRENT ASSETS
Debtors
16
238,265
Cash at bank
225,074
463,339
CREDITORS
Amounts falling due within one year
17
(356,175)
NET CURRENT ASSETS
107,164
TOTAL ASSETS LESS CURRENT
LIABILITIES
185,772
CREDITORS
Amounts falling due after more than one year
18
-
NET ASSETS
185,772
FUNDS
21
Unrestricted funds
185,772
TOTAL FUNDS
185,772		 2024
Total
funds
£
56,191
343,757
289,647
633,404
(222,248)
411,156
467,347
(3,042)
464,305
464,305
464,305

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2025.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on 16 February 2026 and were signed on its behalf by:

The notes form part of these financial statements

continued...

Page 11

THE ISLAND PROJECT

Balance Sheet - continued 31 May 2025

Mrs J A Walters-Hutton - Trustee

The notes form part of these financial statements

Page 12

THE ISLAND PROJECT

Cash Flow Statement for the Year Ended 31 May 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Finance costs paid
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Repayment of loans
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2025
£
(15,045)
-
(15,045)
(47,447)
-
(47,447)
(2,081)
(2,081)
(64,573)
289,647
225,074		 2024
£
236,611
(900)
235,711
(55,970)
(5,139)
(61,109)
(1,954)
(1,954)
172,648
116,999
289,647

The notes form part of these financial statements

Page 13

THE ISLAND PROJECT

Notes to the Cash Flow Statement

for the Year Ended 31 May 2025

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

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Finance costs
Decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operations		 2025
£
(278,533)
25,029
-
105,492
132,967
(15,045)		 2024
£
284,142
4,241
900
1,986
(54,658)
236,611

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash At 1.6.24
Cash flow
At 31.5.25
£
£
£
Cash at bank 289,647
(64,573)
225,074
289,647
(64,573)
225,074
Debt
Debts falling due within 1 year (2,000)
(961)
(2,961)
Debts falling due after 1 year (3,042)
3,042
-
(5,042)
2,081
(2,961)
Total 284,605
(62,492)
222,113

The notes form part of these financial statements

Page 14

THE ISLAND PROJECT

Notes to the Financial Statements for the Year Ended 31 May 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The principal activity of the charity is the advancement of education for children and young people aged 5-19 with Autism Spectrum Disorder (ASD) and associated complex needs. This is achieved through the operation of The Island Project School in Solihull.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

Income

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

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Compensation for the operational disruption and increased running costs arising from the relocation is recognised when entitlement is established, receipt is probable, and the amount can be reliably measured.

Expenditure

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

Tangible fixed assets

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

Leasehold improvements - The period of the lease
Fixtures and fittings - 25% on cost
Computer equipment - 25% on cost

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:

continued...

Page 15

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

1. ACCOUNTING POLICIES - continued

Taxation

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

Fund accounting

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

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

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Debtors

Debtors include trade debtors, prepayments and certain other financial instruments. Prepayments are payments made for goods or services that will be received in the future. These are initially recorded as assets and amortised over time as the benefit of the prepaid expense is realised. Where payments are in doubt, a bad debt provision is recognised against any balances that have remained unpaid.

Creditors and Provisions

Creditors include trade creditors and certain other short and long-term financial instruments. Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable, and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, considering the related risks and uncertainties, and the related increases are generally charged as an expense to profit or loss.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments and original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

continued...

Page 16

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Certain of the amounts included in the financial statements involve 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. Information about such judgements and estimation is contained in the accounting policies and/or notes to the financial statements and the key areas are summarised below:

Judgements in applying accounting policies

The Trustees/Directors must judge whether all the conditions required for income and costs to be recognised in the Statement of Financial Activities have been met.

Sources of estimation

Depreciation rates are based on estimates of the useful lives and residual values of the assets involved.

The carrying value of debtors is assessed and the recoverability of debtors concluded on.

Deferred income is calculated based on the term dates of the school.

3. DONATIONS AND LEGACIES

Donations
4.
OTHER TRADING ACTIVITIES
Fundraising events
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
School fees
Education
6.
OTHER INCOME
Compensation payments		 2025
£
6,217
2025
£
301
2025
£
1,191,827
2025
£
350,000		 2024
£
285
2024
£
499
2024
£
1,003,664
2024
£
940,252

continued...

Page 17

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

7. RAISING FUNDS

Raising donations and legacies

Fundraising events
8.
CHARITABLE ACTIVITIES COSTS
Education
9.
SUPPORT COSTS
Finance
£
Education
245
Support costs, included in the above, are as follows:
Finance
Bank charges
Interest payable
Information technology
Telephone and computer costs		 Direct
Costs
£
1,171,859
Information
technology
£
21,262		 2025
£
-
Support
costs (see
note 9)
£
655,019
Other
£
633,512
2025
Education
£
245
-
245
2025
Education
£
21,262		 2024
£
303
Totals
£
1,826,878
Totals
£
655,019
2024
Total
activities
£
375
900
1,275
2024
Total
activities
£
18,625

continued...

Page 18

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

9. SUPPORT COSTS - continued Other

2025
Education
£
Wages
108,568
Other operating leases
145,031
Rates and water
1,648
Insurance
39,580
Light and heat
16,028
Postage and stationery
14,040
Sundries
1,972
Staff training
14,011
Cleaning
46,990
Repairs and renewals
26,701
HS2 related expenditure
136,406
Motor expenses
29,490
Legal and professional fees
66,327
Depreciation of tangible fixed assets
25,030
Exceptional items
(38,310)
633,512		 2024
Total
activities
£
112,781
187,949
2,374
32,364
23,452
14,098
12,141
9,876
43,589
32,987
213,717
28,241
24,240
4,241
-
742,050

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets 2025
2024
£
£
25,030
4,241
Other operating leases 145,031
187,949

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 May 2025 nor for the year ended 31 May 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 May 2025 nor for the year ended 31 May 2024.

continued...

Page 19

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2025
£
929,734
70,265
15,222
1,015,221		 2024
£
566,448
52,258
15,222
633,928
The total amount of employee benefits received by key management personnel is £247,717 (2024 The total amount of employee benefits received by key management personnel is £247,717 (2024 The total amount of employee benefits received by key management personnel is £247,717 (2024 - £237,400).
The average monthly number of employees during the year was as follows:
Direct 2025
33		 2024
29
Indirect 6 6
39 35
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
£60,001 - £70,000 2025
3		 2024
2
13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM Unrestricted
fund
£
Donations and legacies 285
Charitable activities
Education 1,003,664
Other trading activities 499
Other income 940,252
Total 1,944,700
EXPENDITURE ON
Raising funds 303
Charitable activities
Education 1,660,255
Total 1,660,558
NET INCOME 284,142
RECONCILIATION OF FUNDS
Total funds brought forward 180,163
Page 20 continued...

Page 20

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Unrestricted
fund
£
TOTAL FUNDS CARRIED FORWARD 464,305
14. AUDITORS' REMUNERATION

Fees payable to the charity's auditor was £3,800 (2024: £3,800).

15. TANGIBLE FIXED ASSETS

Fixtures
Leasehold
and
Computer
improvements
fittings
equipment
£
£
£
COST
At 1 June 2024
12,955
41,884
8,068
Additions
-
37,318
10,129
At 31 May 2025
12,955
79,202
18,197
DEPRECIATION
At 1 June 2024
682
1,544
4,490
Charge for year
682
19,801
4,547
At 31 May 2025
1,364
21,345
9,037
NET BOOK VALUE
At 31 May 2025
11,591
57,857
9,160
At 31 May 2024
12,273
40,340
3,578
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025
£
Trade debtors
146,762
Other debtors
80,000
Prepayments
11,503
238,265		 Totals
£
62,907
47,447
110,354
6,716
25,030
31,746
78,608
56,191
2024
£
19,706
305,139
18,912
343,757

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Page 21

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025
£
Bank loans and overdrafts (see note 19)
2,961
Trade creditors
2,671
Social security and other taxes
46,203
Other creditors
279,311
Accrued expenses
25,029
356,175
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2025
£
Bank loans (see note 19)
-
19.
LOANS
An analysis of the maturity of loans is given below:
2025
£
Amounts falling due within one year on demand:
Bank loans
2,961
Amounts falling between one and two years:
Bank loans - 1-2 years
-
20.
LEASING AGREEMENTS		 2024
£
2,000
276
13,298
172,512
34,162
222,248
2024
£
3,042
2024
£
2,000
3,042

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

Within one year
Between one and five years
In more than five years		 2025
£
136,232
516,116
373,333
1,025,681		 2024
£
128,232
492,349
470,000
1,090,581

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Page 22

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Notes to the Financial Statements - continued for the Year Ended 31 May 2025

21. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.6.24
£
464,305
464,305
Incoming
resources
£
1,548,345
1,548,345
At 1.6.23
£
180,163
180,163
follows:
Incoming
resources
£
1,944,700
1,944,700		 Net
movement
in funds
£
(278,533)
(278,533)
Resources
expended
£
(1,826,878)
(1,826,878)
Net
movement
in funds
£
284,142
284,142
Resources
expended
£
(1,660,558)
(1,660,558)		 At
31.5.25
£
185,772
185,772
Movement
in funds
£
(278,533)
(278,533)
At
31.5.24
£
464,305
464,305
Movement
in funds
£
284,142
284,142

continued...

Page 23

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

21. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement
At 1.6.23
in funds
£
£
Unrestricted funds
General fund
180,163
5,609
TOTAL FUNDS
180,163
5,609		 At
31.5.25
£
185,772
185,772

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
3,493,045
3,493,045		 Resources
expended
£
(3,487,436)
(3,487,436)		 Movement
in funds
£
5,609
5,609

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 May 2025.

23. DEFERRED INCOME

At 1 June 2024
Additions during the year
Amounts released to income
At 31 May 2025
At 1 June 2023
Additions during the year
Amounts released to income
At 31 May 2024		 Under 1 year
£
169,655
277,530
169,655
277,530
221,516
169,655
221,516
169,655		 Over 1 year
£
-
-
-
-
-
-
-
-		 Total
£
169,655
277,530
169,655
277,530
221,516
169,655
221,516
169,655

Deferred income represents amounts invoiced in advance relating to the Summer 2025 term, covering the period from 23 April 2025 to 8 August 2025.

continued...

Page 24

THE ISLAND PROJECT

Notes to the Financial Statements - continued for the Year Ended 31 May 2025

24. PENSIONS AND OTHER POST-RETIREMENT BENEFITS

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £15,222 (2024 - £15,222).

The defined contribution liability is allocated to unrestricted funds and education.

Page 25