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2022-07-31-accounts

Charity Registration No. 1123336

Company Registration No. 05493554 (England and Wales)

Activate Community and Education Services

Company Limited by Guarantee

Annual Report and Financial Statements

For The Year Ended 31 July 2022

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

CONTENTS

Page
Trustees’ annual report 2
Independent auditor’s report 11
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the accounts 18

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

COMPANY INFORMATION

Trustees Mr D Barlow (Chair)
Mrs K Thompson
Mr K Siviter
Mr D Gregg
Ms S Henshall
Company secretary Mrs N Corke
Chief Executive Miss J Young
Charity number 1123336
Company number 05493554
Registered office The Bracknell Centre
Bracknell Avenue
Southdene
Kirkby
L32 9PW
Auditor MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
Bankers Unity Trust Bank Plc
9 Brindley Place
Birmingham
B1 2HB

Page 1

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

The Trustees present their report and the audited financial statements of the charity for the year ended 31 July 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) 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 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.

Trustees of the charity

The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end were as follows:

Mr D Barlow Mrs K Thompson Mr K Siviter Mr D Gregg Ms S Henshall (appointed 7 September 2022)

Aims and Objectives

Activate was established as a charity and a company limited by guarantee and Charity. Our aim is to develop the skills and experiences of young people and adults with learning disabilities in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society.

In order to do this Activate’s objectives are:

During the financial year the primary target area of benefit was Knowsley borough and the surrounding areas. Activate works with 8 local authorities.

Page 2

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2022

The board of trustees refer to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

Vision Statement

An inclusive society for all.

Mission Statement

To inspire individuals and communities through innovative and engaging services.

Projects

Further Education

Activate primarily operates as a Further Education college specialising in the education of young people with additional needs and disabilities. We are a member of the Natspec (an association for organisations which offer specialist provision for students with learning difficulties and disabilities).

From our own premises in Kirkby we are delivering further education provision to around 63 students aged 19-25 with learning difficulties and disabilities. Significant time has been invested in systems, resources, and premises to ensure that we are delivering the highest quality provision in line with Ofsted requirements.

As an education programme, Activate focuses on individual timetables built on a support package for each student's need and ambition. Students also work towards qualifications that are specific to their abilities, needs and interests. This year Activate has worked in partnership with 8 Local Authorities to ensure the best possible education and support for our young people.

In the 2021/22 academic year Activate had 21 leavers of which all left for a positive destination.

Destination Type
No. of students		 Destination Type
No. of students
Paid Employment 2
Social Care 15
Vocational/Work Experience 0
Voluntary 3
FE 1
Total
21

Page 3

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

At Activate each student has a varied timetable filled with subjects and topics that are personal and individualised to meet the needs and outcomes of the young person.

Activate’s Education provision primarily focuses on helping students develop employability skills, life skills and independent living skills so that our students can become actively engaged in their local community be it through work, volunteering or more engagement with community leisure activities.

Activate Futures

Activate Futures is a personalised study programme which focuses on the skills and experiences needed to pursue an active life in the community. Students take part in a range of experiences such as:

Page 4

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

Activate Choices

Activate Choices is a course for students with complex and profound multiple difficulties who require a learning sensory approach to education. Each student has a timetable to develop their individual outcomes and is based on the foundations of choice making. As part of Activate Choices students have access to the following:

All subjects and progress are monitored through RARPA (recognising and recording progress and achievement) based systems and through person centred qualifications.

Vocational Options

All courses have full access to the opportunities within Activate. Both courses are delivered differently to meet the needs of each student, but all students have access to the facilities such as:

Functional Skills are embedded throughout all subjects.

Page 5

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

Career Advice and Transition Team

The Career, Advice and Transtion (CAT) team identify and secure work skills and work experience placements which are both meaningful and purposeful and support the well-being and mental health of students to meet their needs and prepare them for their next steps into adulthood. Placements can be both internal (on-site) and external within the local community.

Student Destinations

Communication Pathway – 100% of leavers progressed to positive destinations.

Work Skills and Work Experience placements

This academic year we are supporting 45 students in a variety of settings both internally and externally, together with the introduction of several Enterprise projects to include students from the Year I cohort.

External placements

Internal placements

Career Building Sessions for Work Skills Pathway Leaver Cohort

Following the success last year of the Career Building sessions (in partnership with Knowsley Borough Council - Preparing for Adulthood Officer), we are pleased to say that this working partnership will be continuing to include ‘Meet the Employee’ sessions and Personal Health and Wellbeing sessions all supported by parental input.

Transition

Transitional Annual Reviews and Year I – Information, Advice and Guidance interviews commenced in September, they provide a platform to discuss student progress, future aspirations, and career pathways with the input of parents, professionals and Activate staff.

Page 6

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

The ‘Next Steps’ transitional event will be held in January 2023, followed by the National Careers Week in March 2023.

Learner Voice

Learner voice is continuing to grow with an increase of more sessions covering a variety of subjects, which will empower learners to make independent decisions about their education and future.

New Initiatives for 2022/2023

Page 7

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

Achievements and Performance

We are delighted following a second Ofsted inspection in October 2017 Activate was graded as a Good provider. The Ofsted report summarised that Activate demonstrated ‘extremely effective’ leadership whereby leaders and managers have ‘exceptionally high expectations’ of staff and students. Ofsted also referred to the results in accreditation as good.

The achievement rate for English and Maths qualifications dropped below national average for the SEN sector, this was due to the national pandemic.

The accredited vocational qualification achievement was 100%.

Overall Activate’s retention rate was 100%

100% of leavers attended work placements both internally and externally.

100% of students enrolled on an education programme showed progress and development over the academic year.

Student Feedback

100% of Activate students said that they enjoy their course. 100% of Activate students said they feel safe at Activate.

Annual Overview

Activate recruited 63 students for the year and retention was 100%. Learners follow a bespoke individual timetable across both pathways to provide learners with the transferable skills they need to meet their end destination outcomes and to enhance their adult life. We identified a new Awarding Body for functional skills to adapt a more rigorous approach to function skills qualifications to meet end destinations (certain learners completed full qualifications and specific completed units). Open Awards Qualifications for both year one and year two learners were constructed to follow the learners’ personalised pathways and both year three and year four learners follow qualifications that are relevant to their outcomes. The impact of this change has ensured that we offer a more meaningful curriculum for all.

Activate had an extension built during the year for hydro therapy and rebound, giving the opportunity for more students to access therapies onsite.

Future Plans

The Company's business strategy for the new financial year will be developed by the Senior Team led by the CEO. Activate will continue to develop the further education offer and quality of provision in line with Ofsted objectives and our own vision. The community engagement projects such as a coffee shop, animal visitor centre and craft/ veg shop continue to be developed and the site has opened up as ‘Activate Community Village’ to local community groups.

A priority for us is to build on the skills of our existing trustees and utilise the skills of the new trustees – The college is still hoping to recruit an SEN education specialist.

As stated above Activate were inspected by Ofsted in October 2017. This was Activate’s second inspection from HM Inspectors and it was concluded that Activate are a Good provider. Activate were due an inspection in the 21/22 academic year – this has been delayed so far due to Covid.

Page 8

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 JULY 2022

Structure, Governance and Management

Activate is managed by a board that sets strategic direction which is reviewed on a quarterly basis by a team consisting of Trustees, the CEO and Company Secretary. The Senior Management Team implements these strategies whilst maintaining control of the day to day business and responding positively to market conditions and funding availability. In line with our review of changes required to improve performance, the strategic goals and objectives are now linked to the organisation’s quality improvement plan.

The Trustees wish to thank all the staff, and in particular our management team, for all their hard work and commitment during the year.

The CEO remuneration is agreed by the Board of trustees whilst pay for the other key management personnel is agreed by the trustees following recommendations from the CEO. Regular benchmarking ensures that pay is comparable to similar roles in similar organisations.

Governing Document

Activate is governed by its Memorandum and Articles which are reviewed on a regular basis to ensure compliance whilst also allowing any potential amendments that may need to be made to reflect the objectives of Activate.

Company Status

The company is limited by guarantee and all members have agreed to contribute a sum not exceeding £1 in the event of a winding-up.

Recruitment and Appointment of Trustees

Applicants for the role of trustee are reviewed by the board and selection for interview is made. One trustee interviews the proposed trustee along with the CEO. Recommendations are then made to the Board. Proposed new trustees are invited to the next trustee meeting and a decision is made by the current trustees.

Induction and Training of Trustees

Induction takes place through planned sessions / meetings initially with the Chair of the board of trustees who will outline the procedures and processes of the board along with specific roles and responsibilities of trustees. The CEO will conduct the general induction regarding an introduction to the activities and programmes delivered by Activate. All new trustees are provided with an induction pack.

Page 9

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

Fundraising standards information

Activate occasionally carries out events such as Christmas Fairs which raise funds for the charity. The trustees have considered the requirements of the Charities (Protection and Social Investment) Act 2016 regarding disclosures concerning fundraising and fundraising standards and consider that no further disclosures are required in relation to our fundraising activities due to the level and type of fundraising undertaken by the charity.

Financial Review

The level of income for education in the financial year ending 31 July 2022 has remained stable. It is anticipated that this will continue for the next financial year as student numbers have remained consistent. Any increase is because there is an increase in more complex needs students who require more support while as college.

Social Care income for 2021/22 was approximately 10% of total income. The expectation is that this income will increase during 2022/23 when we move to larger premises.

Reserves Policy

At 31 July 2022 the charity had reserves of £ 1,647,843 (2021: £1,535,149) of which £150.911 (2021: £157,392) was restricted, £219,000 (2021: £110,085) was designated in relation to various projects as detailed below and £1,277,932 (2021: £1,267,672) was unrestricted. Unrestricted reserves include £270,179 (2021: £248,297) held as fixed assets.

It is the policy of Activate that unrestricted reserves should be maintained at a level equivalent to twelve months expenditure on service delivery and fixed office overheads. It is Activate’s intention to ensure reserves are built up each year to enable the organisation to get to this position. At £1,007,753 Activate is currently holding around 8 months of reserves.

Designated Reserves

The amount held in designated reserves is for the following expenditure:

Risk Management

Risk management is a standard agenda item at termly board meetings. Activate trustees consider risk management an integral part of governance and to ensure the organisation’s survival in a time of change and development it is imperative that an accurate risk register is in place.

Page 10

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2022

Trustees' responsibilities statement

The trustees (who are also directors of Activate Community and Education Services for the purposes of company law) are responsible for preparing the Trustees’ Annual Report 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:

Auditor

A resolution to re-appoint MHA Moore and Smalley as auditor for the ensuing year will be proposed at the Annual General Meeting.

Small company rules

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act.

This report has been approved by the Board of Trustees and is signed on its behalf.

…………………………………..

On behalf of the board of trustees

Mr D Barlow Trustee 08/03/2023 ……………………………

Page 11

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES

FOR THE YEAR ENDED 31 JULY 2022

Opinion

We have audited the financial statements of Activate Community and Education Services (the ‘charitable company’) for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, the cash flow statement and the related notes. 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) including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

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.

Page 12

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2022

Other information

The trustees are responsible for the 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 our 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:

Page 13

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES

FOR THE YEAR ENDED 31 JULY 2022

Respective responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11, 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.

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 field in which the client operates we identified that Ofsted status, safeguarding, DBS checks and compliance with the UK Companies Act are the areas most likely to have a material impact on the financial statements.

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 non-compliance. 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 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 auditor’s report.

Page 14

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES

FOR THE YEAR ENDED 31 JULY 2022

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with the 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.

............................................................................. Nicola Mason (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountants and Statutory Auditor

Richard House 9 Winckley Square Preston PR1 3HP

08/03/2023 ………………………

Page 15

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022

Notes
Income from:
Donations and legacies
3
Charitable activities
4
Other operating income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net income/(expenditure)
Transfer between funds
Net movement in funds
Reconciliation of funds
Fund balances at 1 August 2021
Fund balances at 31 July 2022		 Unrestricted
Funds
Unrestricted
Funds
Restricted
Funds
Total Funds
2022
Total Funds
2021
General
Designated
£
£
£
£
£
2,700
-
-
2,700
7,880
1,805,215
-
57,017
1,862,232
1,744,197
-
-
-
-
12,786
1,807,915
-
57,017
1,864,932
1,764,863
1,687,655
1,085
63,498
1,752,238
1,463,331
1,687,655
1,085
63,498
1,752,238
1,463,331
120,260
(1,085)
(6,481)
112,694
301,532
(110,000)
110,000
-
-
-
10,260
108,915
(6,481)
112,694
301,532
1,267,672
110,085
157,392
1,535,149
1,233,617
1,277,932
219,000
150,911
1,647,843
1,535,149

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Page 16

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

BALANCE SHEET

AS AT 31 JULY 2022

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
being net assets
The funds of the charity
Restricted funds
17
Unrestricted funds – designated
General fund
18
Unrestricted funds – general
General unrestricted funds
Total unrestricted funds
Total charity funds
19		 £
166,366
1,296,103
1,462,469
(235,166)
219,000
1,277,932		 2022
£
420,540
1,227,303
1,647,843
150,911
1,496,932
1,647,843		 £
128,642
1,167,178
1,295,820
(164,860)
110,085
1,267,672		 2021
£
404,189
1,130,960
1,535,149
157,392
1,377,757
1,535,149

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

08/03/2023

These accounts were approved and authorised for issue by the trustees on ………………………. and are signed on their behalf by:

............................................................................. Mr D Barlow Trustee

Company Registration No. 05493554

Page 17

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2022

Cashflows from operating activities
Net movement in funds
Depreciation
(Profit)/Loss on disposal of fixed assets
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities
Cashflows from investing activities:
Purchase of tangible fixed assets
Net cash used in investing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at 1 August
Cash and cash equivalents at 31 July
Analysis of cash and cash equivalents
Cash in hand
Cash at bank		 2022
£
112,694
38,074
-
(37,724)
70,306
183,350
(54,425)
(54,425)
128,925
1,167,178
1,296,103
431
1,295,672
1,296,103		 2021
£
301,532
19,638
403
51,724
(37,508)
335,789
(248,471)
(248,471)
87,318
1,079,860
1,167,178
466
1,166,712
1,167,178

Page 18

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

Charity information

Activate Community and Education Services is a private company limited by guarantee incorporated in England and Wales. The registered office is The Bracknell Centre, Bracknell Avenue, Southdene, Kirkby L32 9PW.

1.1 Accounting Convention

The accounts have been prepared in accordance with the charity’s Memorandum & Articles, The financial statements have been prepared in accordance with 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 (FRS102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity's income has remained stable this year and will continue at a similar level over the next year. The company has reserves of £1.6 million at the year end and a cash balance of £1.3 million.

JJ’s social care will be moving to new premises shortly, which will provide more space, enabling us to increase the number of clients we can serve. It is planned that any increase in costs relating to the new premises should be offset by an increase in revenue. We have still been unable to finalise the lease on the new premises, however we have renegotiated with the landlord that they will now repair the boiler.

We have committed to the installation of solar panels during the next 12 months. The initial outlay of £52k should be recouped within 2 years. After this time the panels should have a significant impact on reducing our energy footprint and consumption.

The trustees have reviewed the cashflow position in light of expected income levels and have considered any potential uncertainties. They have concluded that, at the time of approving the financial statements, the charity has adequate resources to continue in existence for the foreseeable future, and at the very least, longer than one year from the date of the audit report. The trustees have therefore, agreed to continue to adopt the going concern basis of accounting in preparing these 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.

Page 19

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies (continued)

1.4 Income

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 is recognised at the time of the donation.

Grants and contracts, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. Fixed assets donated to the charity are included as donation income at market value at the time of receipt. Assistance in the form of voluntary help is not quantifiable, and accordingly not dealt with in the accounts.

1.5 Expenditure

Expenditure reflects all amounts paid and accrued during the year. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. All costs are allocated between the expenditure categories of the Statement of Financial Activities (SOFA) on a basis designed to reflect the use of the resources.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs represent costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

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. Items of less than £500 are not capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements over the remaining period of the lease Fixtures, fittings and equipment 25% p.a. on a straight line basis Computer equipment 33% p.a. on a straight line basis

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.

Page 20

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies (continued)

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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).

1.8 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.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors 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 charity’s contractual obligations expire or are discharged or cancelled.

Page 21

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies continued

1.10 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value the unwinding of the discount is recognised as a financial cost in net income/(expenditure) in the period it arises.

1.11 Employee benefits

The cost of any unused holiday entitlements is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The contributions are charged as an expense as they fall due.

1.13 Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from qualifying income and from receipts under Gift Aid.

The charity is not able to recover Valued Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

1.14 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria is satisfied is recognised as a liability.

Page 22

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and labilities 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. Revision 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 both current and future periods.

3 Donations and legacies

Donations and gifts
The donations and gifts received in both years were unrestricted.
Charitable activities
Unrestricted income
Educational programmes
Adult Social Care programmes
Sub-total – unrestricted income
Restricted income
Educational programmes		 2022
£
2,700
2022
£
1,616,668
188,547
1,805,215
57,017
1,862,232		 2021
£
7,880
2021
£
1,540,562
138,376
1,678,938
65,259
1,744,197

4 Charitable activities

5 Other operating income

Other operating income
Coronavirus Job Retention Scheme grant
Government grant – Covid-19 charity grant		 2022
£
-
-
-		 2021
£
12,786
-
12,786

The other operating income received last year was unrestricted.

Page 23

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

6 Charitable activities

Current year
Staff costs
Depreciation and impairment
Premises costs
Office costs
Project expenses and course fees
Other costs
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds – general
Unrestricted funds – designated
Restricted funds
Prior year
Staff costs
Depreciation and impairment
Premises costs
Office costs
Project expenses and course fees
Other costs
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds – general
Unrestricted funds – designated
Restricted funds		 Educational
Programmes
£
995,945
11,736
79,640
7,591
83,620
22,749
1,201,281
360,823
13,883
1,575,987
1,511,404
1,085
63,498
1,575,987
Educational
Programmes
£
904,979
9,721
81,535
1,487
44,525
26,996
1,069,243
247,997
25,493
1,342,733
1,310,229
22,783
9,721
1,342,733		 Adult Social Care
Programmes
£
129,125
-
-
4,913
-
-
134,039
40,648
1,564
176,251
176,251
-
-
176,251
Adult Social Care
Programmes
£
93,347
-
-
3,683
-
-
97,030
21,371
2,197
120,598
120,598
-
-
120,598		 2022
£
1,125,070
11,736
79,640
12,505
83,620
22,749
1,335,320
401,471
15,447
1,752,238
1,687,655
1,085
63,498
1,752,238
2021
£
998.326
9,721
81,535
5,170
44,525
26,996
1,166,273
269,368
27,690
1,463,331
1,430,827
22,783
9,721
1,463,331

Page 24

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

7 Support costs

Support costs
Staff costs
Depreciation
Premises costs
Office costs
Other costs
Total support costs
Governance costs
Audit fees
Accountancy
Legal and professional
Total governance costs
Total support and governance costs
Analysed between:
Educational programmes
Adult Social Care programmes
Charitable activities		 2022
£
208,155
26,338
26,440
39,226
101,312
401,471
5,450
7,682
2,315
15,447
416,918
374,706
42,212
416,918		 2021
£
156,108
9,918
27,144
43,308
32,890
269,368
6,000
8,745
12,945
27,690
297,058
273,490
23,568
297,058

The support and governance costs have been allocated between Educational programmes and Adult Social Care programmes on the basis of their respective income levels.

Page 25

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

8 Auditor’s remuneration

The analysis of auditor’s remuneration is as follows:

Fees payable to charity’s auditors
Audit of the annual accounts
Non-audit services
All other non-audit services		 2022
2021
£
£
5,450
5,940
7,682
8,805

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. No reimbursements for expenses were made during this year or the prior year.

During the prior year the charity paid £500 for printing services to a company of which one of the trustees is a director.

10 Employees

Number of employees

The average monthly number of employees during the year was:

Direct charitable
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
£
76
1,212,333
63,024
44,358
1,319,715		 2021
£
73
1,056,241
58,885
39,309
1,154,435

There were no employees whose annual remuneration was £60,000 or more in either year.

Page 26

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

10 Employees (continued)

The remuneration of key management personnel is as follows:

Aggregate remuneration
Tangible fixed assets
Cost
At 1 August 2021
Additions
Disposals
At 31 July 2022
Depreciation and impairment
At 1 August 2021
Depreciation charged in the year
Disposals
At 31 July 2022
Carrying amount
At 31 July 2022
At 31 July 2021		 Leasehold
improvements
Fixtures,
fittings &
equipment
£
£
436,950
136,199
29,536
15,984
-
-		 2022
2021
£
£
239,163
237,684
Computer
equipment
Total
£
£
33,111
606,260
8,905
54,425
-
-
466,486
152,183		 42,016
660,685
61,489
116,937
20,687
12,195
-
-		 23,645
202,071
5,192
38,074
-
-
82,176
129,132		 28,837
240,145
384,310
23,051		 13,179
420,540
375,461
19,262		 9,466
404,189

11 Tangible fixed assets

Page 27

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

12
Debtors
Trade debtors
Prepayments and accrued income
13
Creditors: amounts falling due within one year		 2022
£
156,880
9,486
166,366		 2021
£
114,871
13,771
128,642
Taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals
Deferred income included in the financial statements
Deferred income is included in the financial statements as follows:
Total deferred income at 1 August
Amounts received in year
Amounts credited to statement of financial activities
Total deferred income at 31 July		 2022
£
17,859
59,740
60,900
3,690
92,977
235,166
2022
£
59,954
240,630
(240,844)
59,740		 2021
£
13,700
59,954
12,981
6,015
72,210
164,860
2021
£
60,285
272,838
(273,169)
59,954

14 Deferred income included in the financial statements Deferred income is included in the financial statements as follows:

Income has been deferred where charitable activities funding has been received in relation to the following financial period.

15 Agency arrangements

The School distributes 16-19 bursary funds to students as an agent for the ESFA. During the year the School received £7,196 (2021: £7,090) and disbursed £6,856 (2021: £8,637) from the fund. An amount of £15,750 (2021: £15,410) is included in other creditors relating to undistributed funds that is repayable to the ESFA if requested.

Page 28

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

16 Pensions

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £44,358 (2021: £39,309). The whole of this expense is allocated to unrestricted funds.

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Current year
Social Investment Business
Veolia
DfE School Capital Funding
LCR Cares - COVID 19
Community Support Fund
Skelton Foundation
IT Ford Britain Trust
Covid/Mental Health grant
Radcliffe Trust
Prior year
Social Investment Business
Veolia
DfE School Capital Funding
LCR Cares - COVID 19
Community Support Fund
Skelton Foundation		 Movement in funds
Balance at
1 August
2021
Income
Expenditure
£
£
£
127,673
-
(6,788)
20,094
-
(1,058)
-
48,156
(48,156)
8,125
-
(2,500)
1,500
-
(1,448)
-
2,940
(849)
-
1,921
(1,921)
-
4,000
(778)
157,392
57,017
(63,498)
Movement in funds
Balance at
1 August
2020
Income
Expenditure
£
£
£
134,461
(6,788)
21,152
(1,058)
31,809
53,759
-
-
10,000
(1,875)
-
1,500
187,422
65,259
(9,721)		 Transfers
£
-
-
-
-
-
-
-
-
-
Transfers
£
-
-
(85,568)
-
-
(85,568)		 Balance at
31 July
2022
£
120,885
19,036
-
5,625
52
2,091
-
3,222
150,911
Balance at
31 July
2021
£
127,673
20,094
-
8,125
1,500
157,392

Page 29

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

17 Restricted funds (continued)

Restricted funds descriptions

Page 30

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

18 Designated funds

The funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Current year
Roof repairs
Life skills room
Solar panels
Boiler
Prior year
Roof repairs
Extension for hydrotherapy
pool
Hydrotherapy pool
Gates
Portacabin
Life skills room		 Balance at
1 August
2021
£
109,000
1,085
-
-
110,085
Balance at
1 August
2020
£
109,000
150,000
50,000
15,000
20,000
8,868
352,868		 Movement in funds
Income
Expenditure
Transfers
£
£
£
-
-
-
-
(1,085)
-
-
-
50,000
-
-
60,000
-
(1,085)
110,000
Movement in funds
Income
Expenditure
Transfers
£
£
£
-
-
-
-
-
(150,000)
-
-
(50,000)
-
(15,000)
-
-
(20,000)
-
(7,783)
-
-
(22,783)
(220,000)		 Balance at
31 July
2022
£
109,000
-
50,000
60,000
219,000
Balance at
31 July
2021
£
109,000
-
-
-
-
1,085
110,085

Designated funds descriptions

Funds of £110,000 were set aside in the current year in relation the cost of installing solar panels (£50,000) and the cost of a replacement boiler (£60,000).

Page 31

ACTIVATE COMMUNITY AND EDUCATION SERVICES

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

19 Analysis of net assets between funds

Unrestricted
Designated
£
£
Fund balances at 31 July 2022 are
represented by:
Tangible assets
270,179
-
Current assets/(liabilities)
1,007,753
219,000
1,277,932
219,000
Unrestricted
Designated
£
£
Fund balances at 31 July 2021 are
represented by:
Tangible assets
248,297
-
Current assets/(liabilities)
1,019,375
110,085
1,267,672
110,085		 Restricted
£
150,361
550
150,911
Restricted
£
155,892
1,500
157,392		 Total
£
420,540
1,227,303
1,647,843
Total
£
404,189
1,130,960
1,535,149

20 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2022
£
1,286
1,935
3,221		 2021
£
1,070
2,141
3,211

The charity leases premises in Kirkby at a peppercorn rent but is responsible for keeping the property in a good and substantial repair and condition. The lease terms, as amended in June 2014, also include the requirement for the charity to meet specified outcomes for the delivery of services.

21 Related party transactions

There were no related party transactions apart from any disclosed in Notes 9 and 10 relating to the trustees.

Page 32