**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 2023** **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| |**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 2023** The Trustees present their report and the audited financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (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 and resigned 1 December 2023) ## **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: - To provide a quality education to young people with disabilities - To promote social inclusion for the public benefit through education and training, specifically those with disabilities and difficulties. By preventing people from becoming socially excluded and supporting those people who are socially excluded and assisting them to integrate into society through education, training, and community activities. - To support employment, volunteering, and sustained destinations for young people with disabilities by ways and means suitable to the young people such as: - Assistance to find employment. - The advancement of education, training or retraining for young people with disabilities. - To provide space for training and employment opportunities within the local community by the provision of workspace, buildings and/or land for use on favourable terms. During the financial year the primary target area of benefit was Knowsley borough and the surrounding areas. Activate works with 8 local authorities. 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. Page 2 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2023** ## **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 2022/23 academic year Activate had 18 leavers of which all left for a positive destination. |**Destination Type**|**No. of students**| |---|---| |**Paid Employment**|0
15
0
3
|| |**Social Care**|| |**Vocational/Work Experience**|| |**Voluntary**
||| |**FE**
]|0
]| Page 3 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2023** 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 Workskills**_ Activate Workskills 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: - Work experience - Volunteering - Community projects - Travel training Page 4 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2023** ## _**Activate Communication**_ Activate Communication 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: - Sessions in a sensory environment - Communication - Music - Art - Speech and Language and Physio - Hydrotherapy 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: - Horticulture - Animal Care - Dog Therapy - Art - Drama - Functional Skills - Work Skills Placements - Practical Independence Skills - Enterprise - Travel Training 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 2023** ## **Career, Advice and Transition Team** The Career, Advice and Transition (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**_ The leaver cohort of 18 students have been supported by the Transition team into successful destinations, ranging from volunteering at Strawberry Fields to activity bases such as Ever Evolving and JJ’s. ## _**Work Skills and Work Experience placements**_ This academic year we are supporting students in a variety of settings both internally and externally, together with the introduction of several Enterprise projects ## **External placements** - Strawberry Fields - Arc Equestrian Centre - Tree Tots Children’s Centre - Kindfulness Café - Wheels for All ## **Internal placements** - Activate Village - Cluck and Collect - Hydro – Spa - Coppice Coffee Shop - Community Shopping - Farm Shop – stocktaking - Crafting - Grounds Maintenance ## _**Careers Week**_ Careers Week was a resounding success, students took part in several activity-based sessions with the Police, Fire Service, Nurse, Musician and an interactive visit to the Re-cycling Centre. ## _**Partnership working**_ This year we are continuing to work in partnership with Knowsley Local Authority, leading a joint venture of ‘Meet the Employee’ delivered to students through the career building sessions. We have also developed new working partnerships with Bluebell Park School, who visit Activate Village on a weekly basis with their pupils to take part in creative art and craft sessions and we are also working with Bewley Drive Carers centre providing a café experience for their service users on a weekly basis. Page 6 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2023** ## _**Transition**_ Transitional Annual Reviews have been delivered across all year cohorts, with input from students, parents and professionals. The ‘Next Steps’ transitional event was held in January 2023 and attended by a number of external providers, students and their parents. ## _**Learner Voice**_ Learner voice is continuing to grow with an increase of more sessions covering a variety of subjects, which empower learners to make independent decisions about their education and future. ## _**New Initiatives for 2023/2024**_ - Sandwich enterprise - Introduction of ‘The Lodge’ life skills apartment - Developing links with a National employer - The Leonardo Hotel - Community engagement with Dunelm Store in Aintree ## **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. Page 7 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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%. Activate had an extension built during the prior 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. ## **Structure, Governance and Management** Activate is managed by a board that sets strategic direction which is reviewed on a termly 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. Page 8 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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. ## **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 2023 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 at college. Social Care income for 2022/23 was approximately 13% of total income. The expectation is that this income will increase during 2023/24 as we have recently moved to larger premises. ## **Reserves Policy** At 31 July 2023 the charity had reserves of £1,667,803 (2022: £1,647,843) of which £137,949 (2022: £150,911) was restricted, £109,000 (2022: £219,000) was designated in relation to various projects as detailed below and £1,420,854 (2022: £1,277,932) was unrestricted. Unrestricted reserves include £295,789 (2022: £270,179) 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 £1,125,065 Activate is currently holding around 7 months of reserves. ## **Designated Reserves** The amount held in designated reserves is for the following expenditure: - Additional works required to repair and renovate the roof ## **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 9 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2023** ## **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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP 2019 (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation 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: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. ## **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** 26/01/2024 …………………………… Page 10 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **Opinion** We have audited the financial statements of Activate Community and Education Services (the ‘charitable company’) for the year ended 31 July 2023 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: - give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 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 2023** ## **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: - the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report has been prepared in accordance with applicable legal requirements. ## **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: - adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic 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 2023** ## **Respective responsibilities of the trustees** As explained more fully in the trustees’ responsibilities statement set out on page 10, 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: - Enquiries with management about any known or suspected instances of non-compliance with laws and regulations; - Enquires with management about any known or suspected instances of fraud; - Review of minutes of board meetings; - Auditing the risk of fraud in revenue, including through the testing of income cut off at the period end and through income transaction and proof in total testing, to provide comfort that revenue is completely stated in the financial statements; and - Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls 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. 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 2023** 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. ## **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 ## 29/01/2024 ……………………… Page 14 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2023** |**Notes**
**Income from:**
Donations and legacies
**3**
Charitable activities
**4**
Investment 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 2022
**Fund balances at 31 July 2023**|**Unrestricted**
**Funds**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total Funds**
**2023**
**Total Funds**
**2022**
**General**
**Designated**
**£**
**£**
**£**
**£**
**£**
50
-
-
50
2,700
1,963,845
-
64,465
2,028,310
1,862,232
4,930
-
-
4,930
-| |---|---| ||1,968,825
-
64,465
2,033,290
1,864,932| ||1,935,903
-
77,427
2,013,330
1,752,238| ||1,935,903
-
77,427
2,013,330
1,752,238| ||32,922
-
(12,962)
19,960
112,694
110,000
(110,000)
-
-
-| ||142,922
(110,000)
(12,962)
19,960
112,694
1,277,932
219,000
150,911
1,647,843
1,535,149| ||1,420,854
109,000
137,949
1,667,803
1,647,843| The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. Page 15 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **BALANCE SHEET** ## **AS AT 31 JULY 2023** ||||**2023**||**2022**| |---|---|---|---|---|---| ||**Notes**|**£**|**£**|**£**|**£**| |**Fixed assets**|||||| |Tangible assets|**11**||433,736||420,540| |**Current assets**|||||| |Debtors|**12**|271,694||166,366|| |Cash at bank and in hand||1,235,934||1,296,103|| |||1,507,628||1,462,469|| |**Liabilities**|||||| |Creditors: amounts falling due within one||(273,561)||(235,166)|| |year|**13**||||| |**Net current assets**|||1,234,067||1,227,303| |**Total assets less current liabilities**|||1,667,803||1,647,843| |**being net assets**|||||| |**The funds of the charity**|||||| |Restricted funds|**17**||137,949||150,911| |**Unrestricted funds – designated**|||||| |General fund|**18**|109,000||219,000|| |**Unrestricted funds – general**|||||| |General unrestricted funds||1,420,854||1,277,932|| |Total unrestricted funds|||1,529,854||1,496,932| |**Total charity funds**|**19**||1,667,803||1,647,843| These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. 26/01/2024 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 16 ## **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED 31 JULY 2023** |**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/(Decrease) 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|**2023**
**£**
19,960
39,524
-
(105,328)
38,395
(7,449)
(52,720)
(52,720)
(60,169)
1,296,103
1,235,934
622
1,235,312
1,235,934|**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| Page 17 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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 via the Department for Education has not changed significantly from the previous year. Learner numbers remain around 62-64 each year. A 2% increase to the LA has helped with some aspects of increasing rates on costs, however these increases must continue over the next few years as they have not aligned to inflation due to lower rates of LA funding for SEN education and across other areas. Activate have continued to provide an excellent service whilst still remaining affordable to LA's. JJ’s social care has grown. A new building has been secured from Feb 2023 and this has allowed member numbers to increase. Despite additional overheads of the new building such as rent, utilities and additional resources, JJ's made £111,715 surplus and it is envisaged that it will continue to do so. The trustees have looked at their cashflow position in light of expected income levels and have considered any potential uncertainties. Following this review, they have concluded that, at the time of approving the financial statements, the charity has adequate resources to continue in operational existence for the foreseeable future, and at the very least, greater than one year from the date of the audit report. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the accounts. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. Page 18 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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 19 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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 20 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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 21 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **NOTES TO THE FINANCIAL STATEMENTS** ## **COMPANY LIMITED BY GUARANTEE** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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||**2023**
**£**
50
**2023**
**£**
1,704,293
259,552
1,963,845
64,465
2,028,310||**2022**
**£**
2,700| |---|---|---|---|---| |||||**2022**
**£**
1,616,668
188,547| |||||1,805,215
57,017| |||||1,862,232| ## **4 Charitable activities** ## **5 Investment income** |**Investment income**||| |---|---|---| |Interest income|**2023**
**£**
4,930
4,930|**2022**
**£**
-| |||-| Page 22 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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**
**£**
1,223,219
12,414
154,297
7,854
88,862
17,956
1,504,603
406,895
16,059
1,927,557
1,850,130
-
77,427
1,927,557
**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||**Adult Social Care**
**Programmes**
**£**
-
-
-
23,707
-
-
23,707
59,709
2,357
85,773
85,773
-
-
85,773
**Adult Social Care**
**Programmes**
**£**
129,125
-
-
4,914
-
-
134,039
40,648
1,564
176,251
176,251
-
-
176,251||**2023**
**£**
1,223,219
12,414
154,297
31,561
88,862
17,956| |---|---|---|---|---|---|---| |||||||1,528,310
466,604
18,416| |||||||2,013,330| |||||||1,935,903
-
77,427| |||||||2,013,330| |||||||**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| Page 23 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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|**2023**
**£**
253,196
27,110
56,414
68,478
61,406
466,604
7,000
7,678
3,738
18,416
485,020
422,954
62,066
485,020|**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| 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 24 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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|**2023**
**2022**
**£**
**£**
7,000
5,450
7,678
7,682| |---|---| ## **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. ## **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|**2023**
**£**
81
1,334,922
86,131
55,361
1,476,414|**2022**
£
76| |---|---|---| |||1,212,333
63,024
44,358| |||1,319,715| There were no employees whose annual remuneration was £60,000 or more in either year. Page 25 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **10 Employees (continued)** The remuneration of key management personnel is as follows: Aggregate remuneration |**2023**|**2022**| |---|---| |**£**|£| |253,059|239,163| ## **11 Tangible fixed assets** |**Cost**
At 1 August 2022
Additions
Disposals
At 31 July 2023
**Depreciation and impairment**
At 1 August 2022
Depreciation charged in the year
Disposals
At 31 July 2023
**Carrying amount**
At 31 July 2023
At 31 July 2022|**Leasehold**
**improvements**
**Fixtures,**
**fittings &**
**equipment**
**Computer**
**equipment**
**Total**
**£**
**£**
**£**
**£**
466,486
152,183
42,016
660,685
52,720
-
-
52,720
-
-
-
-| |---|---| ||519,206
152,183
42,016
713,405| ||82,176
129,132
28,837
240,145
23,269
9,888
6,367
39,524
-
-
-
-| ||105,445
139,020
35,204
279,669| ||413,761
13,163
6,812
433,736| ||384,310
23,051
13,179
420,540| Page 26 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** |**12**
**Debtors**
Trade debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
Taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals
**14**
**Deferred income included in the financial statements**
Deferred income is included in the financial statements as follows:
Total deferred income at 1 August
Amounts released to the statement of financial activities
Amounts deferred in the year
Total deferred income at 31 July||**2023**
**£**
258,036
13,658
271,694
**2023**
**£**
19,356
54,481
38,965
24,564
136,195
273,561
**2023**
**£**
43,990||**2022**
**£**
156,880
9,486
166,366
**2022**
£
17,859
43,990
60,900
19,440
92,977
235,166
**2022**
**£**
42,555| |---|---|---|---|---| |||(43,990)||(42,555)| |||
54,481||
43,990| |||54,481||43,990| 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 £7,799 (2022: £7196) and disbursed £4,761 (2022: £6,856) from the fund. An amount of £18,788 (2022: £15,750) is included in other creditors relating to undistributed funds that is repayable to the ESFA if requested. Page 27 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **16 Pensions** The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £81,714 (2022: £44,358). 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
Radcliffe Trust
**Prior 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|**Movement in funds**
**Balance at**
**1 August**
**2022**
**Income**
**Expenditure**
**£**
**£**
**£**
120,885
-
(6,788)
19,036
-
(1,058)
-
64,465
(64,465)
5,625
-
(2,500)
52
-
(50)
2,091
-
(1,233)
3,222
-
(1,333)
150,911
64,465
(77,427)
**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)|**Transfers**
**£**
-
-
-
-
-
-
-
-
**Transfers**
**£**
-
-
-
-
-
-
-
-
-|**Balance at**
**31 July**
**2023**
**£**
114,097
17,978
-
3,125
2
858
1,889| |---|---|---|---| ||||137,949| ||||**Balance at**
**31 July**
**2022**
**£**
120,885
19,036
-
5,625
52
2,091
-
3,222| ||||150,911| Page 28 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** **COMPANY LIMITED BY GUARANTEE** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **17 Restricted funds (continued)** ## **Restricted funds descriptions** - Social Investment Business – funding received for capital restoration works to the building. - - Veolia – grant towards portacabin renovation for the Community Growing Project. - DfE Capital Funding – funding received from the Department for Education for capital and maintenance projects. - LCR cares - £10,000 grant received in relation to COVID-19. The Grant is to be used on the Community Farm Shop and Arts and Craft Centre and used to support a work placed venue for people with disabilities to build an arts and crafts activity centre. - Skelton Foundation - this relates to a grant of £1,500 for the New Sensory Room for Futures Student Confirmation. - - IT Ford Britain Trust – this was a grant of £2,940 received to purchase IT equipment. - Covid/mental health grant – this was a grant of £1,921 received to cover covid related expenditure and mental health training. - - Radcliffe Trust – this was a grant of £4,000 received for the purchase of the soundbeam system. Page 29 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **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
Solar panels
Boiler
**Prior year**
Roof repairs
Life skills room
Solar panels
Boiler|**Balance at**
**1 August**
**2022**
**£**
109,000
50,000
60,000
219,000
**Balance at**
**1 August**
**2021**
**£**
109,000
1,085
-
-
110,085|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**£**
**£**
**£**
-
-
-
-
-
(50,000)
-
-
(60,000)
-
-
(110,000)
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**£**
**£**
**£**
-
-
-
-
(1,085)
-
-
-
50,000
-
-
60,000
-
(1,085)
110,000|**Balance at**
**31 July**
**2023**
**£**
109,000
-
-| |---|---|---|---| ||||109,000| ||||**Balance at**
**31 July**
**2022**
**£**
109,000
-
50,000
60,000| ||||219,000| ## **Designated funds descriptions** Funds of £50,000 were set aside in the prior year in relation the cost of installing solar panels. These were installed in the current year so the funds which had been designated for this project have been allocated to capital costs incurred in the year. Funds of £60,000 were set aside in the prior year for the purchase and installation of a new boiler. This was purchased using restricted income received in the year so the full amount has been transferred back to unrestricted funds in the year. Page 30 **ACTIVATE COMMUNITY AND EDUCATION SERVICES** ## **COMPANY LIMITED BY GUARANTEE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **19 Analysis of net assets between funds** |**Unrestricted**
**Designated**
**£**
**£**
**Fund balances at 31 July 2023 are**
**represented by:**
Tangible assets
295,789
-
Current assets/(liabilities)
1,125,065
109,000
1,420,854
109,000
**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|**Restricted**
**£**
137,947
2
137,949
**Restricted**
**£**
150,361
550
150,911|**Total**
**£**
433,736
1,234,067| |---|---|---| |||1,667,803| |||**Total**
**£**
420,540
1,227,303| |||1,647,843| ## **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|**2023**
**£**
1,286
648
1,934|**2022**
£
1,286
1,935
3,221| |---|---|---| 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 31