COMPANY REGISTRATION NUMBER: 6709949 CHARITY REGISTRATION NUMBER: 1132261
Kings Reach Limited Company Limited by Guarantee Unaudited Financial Statements 31 August 2023
CLARITY ACCOUNTING LIMITED
Chartered accountants Brooklands House 58 Marlborough Road Lancing West Sussex BN15 8AF
Kings Reach Limited
Company Limited by Guarantee
Financial Statements
Period from 1 December 2022 to 31 August 2023
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent examiner's report to the trustees | 7 |
| Statement of financial activities (including income and | |
| expenditure account) | 9 |
| Statement of financial position | 10 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 |
Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Period from 1 December 2022 to 31 August 2023
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the period ended 31 August 2023.
Reference and administrative details
Registered charity name Kings Reach Limited Charity registration number 1132261 Company registration number 6709949 Principal office and registered Office FF10, Brooklands House office 58 Marlborough Road Lancing BN15 8AF West Sussex
The trustees
R King S Gray M Jung Company secretary Richard King Independent examiner Christopher E Short B.Eng (Hons) FCCA CTA Brooklands House 58 Marlborough Road Lancing West Sussex BN15 8AF
Structure, governance and management
The Board of Trustees are the proprietors of King's Reach Education. They met regularly during the year with the CEO. The Board have overall responsibility for the effective governance of the charity and the school. The Board has delegated responsibility to the CEO for the management of the school's short and long-term strategies. The Senior Leadership Team (SLT) work to a school improvement plan for development of the strategies.
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Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Period from 1 December 2022 to 31 August 2023
Objectives and activities
Governing document
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
The objects of the charity are:
a) The relief of unemployment for the benefit of the public in such ways as may be thought fit, including assistance to find employment.
b) To help and support young people, in particular but not exclusively those who are at risk of becoming victims or perpetrators of crime, by providing information, support and activities for them to enable them to participate in society as mature and responsible adults.
c) To provide assistance through mediation for families who are affected by the breaking down of family relationships.
d) The relief of poverty and the advancement of education.
e) To provide or assist in the provision of facilities in the interest of social welfare for recreation and other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.
f) Any other charitable activities that the directors consider beneficial to the local community.
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Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued) Period from 1 December 2022 to 31 August 2023
Achievements and performance
Bespoke Education Programme and Curriculum
In 2022/23 developments continued at King's Reach regarding education provision for disengaged and excluded students in Maidstone and the surrounding areas. This is heavily focussed on Social and Emotional progression, providing a one-to-one Bespoke Education Programme specific to the young person's individual needs, one-to-one mentoring sessions, education and vocational tuition programmes.
The design of the Bespoke Education Programme is to encourage constant progression of the student. We understand that each student is completely individual and this process allows us to offer a learning package that compliments each individual. This process looks to challenge and remove the barriers that affect each individual student for learning. Each young person referred to King's Reach has an initial assessment which takes place over 6 weeks. During this time the young person's strengths and interests are discovered and explored. This information is then used as a foundation for the education programme, where traditional subjects are embedded into a creative curriculum. By adopting this approach, we have repeatedly witnessed significant improvement in engagement and progression of young people who have previously struggled in a traditional classroom and school environment.
The school remodelled the Senior Leadership team which provides a more holistic overview of the school development. The BEP manager role changed to become the Deputy Head of School, Strategy Manager and Curriculum Manager posts were developed and this allowed further focus on the school development plan. A Financial consultant was commissioned to support development of a business plan.
In June 2023 King's Reach received a full Ofsted inspection. This was successful and King's Reach Education were given the rating of Good in Overall effectiveness. The school was awarded a rating of Outstanding in Personal development and Good in; Quality of education, Behaviours and attitudes and Leadership and Management.
Qualifications in Functional Skills Mathematics, English and IT continued to be delivered in house. Further course options offered to students included; Duke of Edinburgh Bronze Award, Music lessons, Bikeability, Forklift licence, Construction Skills Certification Scheme (CSCS card), First Aid, swimming lessons and gym programmes. Every student attended and received a qualification in at least one of the courses offered. One student started their GSCE course in maths.
The PSHE programme grew, covering a variety of topics; Sexual Health, Crime Diversion, Science days, Religious Education, Careers and Finances and Life Skills. This included various day trips including a visit to the Houses of Parliament. The Work Experience Programme was enhanced over this year with students taking part in week long placements and volunteering opportunities.
The "Future Me" programme was introduced, targeting social emotional competencies enabling successful transferrable life skills. This includes 16 points that students work through with their mentors. Points include areas of personal development; communication, respect, resilience and owning behaviours.
The annual student reviews continue to be held via video call. Feedback from the referring agencies and parents/carers was positive in relation to the bespoke programme offered to the students. A positive outcome with all students remaining on role at King's Reach.
Following the registration and successful Ofsted inspection the school has seen an increased number
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Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Period from 1 December 2022 to 31 August 2023
of referrals, due to the increase in need, King's Reach will look to increasing the student capacity.
Staffing
Assessment, evaluation and monitoring continued over the year, ensuring effective pastoral support for both students and staff. Weekly team meetings are attended by all staff, ensuring a high level of pastoral support is maintained.
Three new members of staff were employed, two tutors and one mentor. Staff Training and professional development continued this year with termly staff training days being well attended. Staff have access to over 70 different training programmes that can be accessed and completed online. The core training for all staff includes GDPR, Equality and Diversity, Personal Safety - Lone Working, Food hygiene Level 2, Safeguarding - Prevent Duty and Safeguarding levels 1 & 2.
Due to the vulnerabilities of our current and future students, a decision was made that all staff complete Level 3 Safeguarding training. All staff are encouraged to complete as many additional online programmes and qualifications that they wish to.
Additional courses completed by staff this year include; First Aid, Fire Safety and Manual Handling. Designated Safeguarding Lead training was completed by two additional members of staff. Training in SEN awareness ie autism, ADHD, ASD was increased.
Woodlands
During this year areas of the woodlands have remained closed to allow for coppicing to continue and for development of a safer and more sustainable environment for use with the students. Woodland work with students will be reinstated in the 2023/24 academic year.
Achievements
There were a number of highlights over this current period including:
· Successful Ofsted inspection.
· An end of school year summer BBQ for friends and families of King's Reach. This was well attended by staff, students, parents, volunteers, trustees, educational partners and the Child Centred Policing Team. This was highly enjoyed by all who attended.
· Introduction of the "Future Me" programme.
PLANS FOR FUTURE PERIODS
· To improve the role of the mentor and improve the systems, procedures, and training that under pin Mentorship.
· To develop a post 16 curriculum, to include apprenticeships/internship and/or scaffolded employment and work experience.
· To work towards recruiting an additional layer of Governance, a trustee advisory board to oversee the school. Thus, allowing the charity board to focus on wider charity initiatives/projects.
· Employ a Family Liaison and Safeguarding Officer
- Employ a Full-time teacher
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Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Period from 1 December 2022 to 31 August 2023
- Look to increase school premises and ability to increase student numbers
· Develop "Future Me" curriculum
- Register as a Trauma Informed School
RESPONSIBILITIES OF THE TRUSTEES
The trustees (who are also the directors of King's Reach Limited for the purposes of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and 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;
· make judgements and accounting 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 are sufficient to show and explain the charitable company's transactions and 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.
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Kings Reach Limited
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Period from 1 December 2022 to 31 August 2023
Financial review
Principal funding sources
The charity's principal funding comes from Kent and Medway County Councils for commissioned services and activities. In the period under review, income totalled £561,879(not including interest)
King's Reach has received both regular and one-off donations during the year. Donations totalled £3,241.
RESERVE POLICY
It is the policy of the charity that unrestricted funds, which have not been designated for a specific use, should be maintained at a level equivalent to three month's expenditure in line with Charity Commission recommendations. Due to increased funding and referrals this year, we have maintained reserves equivalent of three month's expenditure. The trustees consider that the achievement of reserves at this level will ensure that in the event of a significant drop in funding the charity's current activities can continue while consideration is given to ways in which additional funds may be raised.
ASSET COVER FOR FUNDS
Note 20 sets out an analysis of the assets attributable to the various funds and a description of the funds. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 5 April 2024 and signed on behalf of the board of trustees by:
R King Director
Richard King Charity Secretary
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Kings Reach Limited
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Kings Reach Limited
Period from 1 December 2022 to 31 August 2023
I report to the trustees on my examination of the financial statements of Kings Reach Limited ('the charity') for the period ended 31 August 2023.
Responsibilities and basis of report
As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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Kings Reach Limited
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Kings Reach Limited (continued)
Period from 1 December 2022 to 31 August 2023
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Christopher E Short B.Eng (Hons) FCCA CTA Independent Examiner
Brooklands House 58 Marlborough Road Lancing West Sussex BN15 8AF
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Kings Reach Limited
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Period from 1 December 2022 to 31 August 2023
| Year to | |||||
|---|---|---|---|---|---|
| Period from 1 Dec 22 to | 31 Aug 23 | 30 Nov 22 | |||
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 3,241 | – | 3,241 | 6,668 |
| Charitable activities | 6 | 561,879 | – | 561,879 | 445,913 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| Total income | 565,120 | – | 565,120 | 452,581 | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| Expenditure | |||||
| Expenditure on charitable activities | 7,8 | 432,336 | – | 432,337 | 353,089 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| Total expenditure | 432,336 | – | 432,337 | 353,089 | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| Net income and net movement in | funds | 132,784 | – | 132,783 | 99,492 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 260,091 | 10,000 | 270,091 | 170,599 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| Total funds carried forward | 392,875 | 10,000 | 402,875 | 270,090 | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 13 to 21 form part of these financial statements.
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Kings Reach Limited
Company Limited by Guarantee
Statement of Financial Position
31 August 2023
| 31 Aug 23 | 30 Nov 22 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 14 | 243,380 | 238,132 | |
| Current assets | ||||
| Debtors | 15 | 305,293 | 63,252 | |
| Cash at bank and in hand | 303,043 | 140,414 | ||
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| 608,336 | 203,666 | |||
| Creditors: amounts falling due within one year | 16 | 426,744 | 143,340 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| Net current assets | 181,592 | 60,326 | ||
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| Total assets less current liabilities | 424,972 | 298,458 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 17 | 22,098 | 28,367 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| Net assets | 402,874 | 270,091 | ||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |||
| Funds of the charity | ||||
| Restricted funds | 10,000 | 10,000 | ||
| Unrestricted funds | 392,875 | 260,090 | ||
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| Total charity funds | 20 | 402,875 ৶৶৶৶৶৶৶৶৶ |
270,090 ৶৶৶৶৶৶৶৶৶ |
For the period ending 31 August 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The statement of financial position continues on the following page.
The notes on pages 13 to 21 form part of these financial statements.
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Kings Reach Limited
Company Limited by Guarantee
Statement of Financial Position (continued)
31 August 2023
These financial statements were approved by the board of trustees and authorised for issue on 5 Apr 24, and are signed on behalf of the board by:
R King Director
The notes on pages 13 to 21 form part of these financial statements.
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Kings Reach Limited
Company Limited by Guarantee
Statement of Cash Flows
Period from 1 December 2022 to 31 August 2023
| 31 Aug 23 | 30 Nov 22 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 132,783 | 99,492 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 1,432 | 601 |
| Interest payable and similar charges | 1,457 | 1,064 |
| Accrued expenses | 340 | – |
| Changes in: | ||
| Trade and other debtors | (242,041) | (12,599) |
| Trade and other creditors | 282,908 | 115,340 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Cash generated from operations | 176,879 | 203,898 |
| Interest paid | (1,457) | (1,064) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Net cash from operating activities | 175,422 | 202,834 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (6,680) | (204,365) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Net cash used in investing activities | (6,680) | (204,365) |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | (6,113) | (9,032) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Net cash used in financing activities | (6,113) | (9,032) |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Net increase/(decrease) in cash and cash equivalents | 162,629 | (10,563) |
| Cash and cash equivalents at beginning of period | 140,414 | 150,977 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Cash and cash equivalents at end of period | 303,043 | 140,414 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
The notes on pages 13 to 21 form part of these financial statements.
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Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements
Period from 1 December 2022 to 31 August 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Office FF10, Brooklands House, 58 Marlborough Road, Lancing, BN15 8AF, West Sussex.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
No material uncertainties that may cast significant doubt about the charity continuing as a going concern have been identified by the Directors.
Going concern
There are no material uncertainties about the charity's ability to continue.
Consolidation
The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
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Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
3. Accounting policies (continued)
Fund accounting
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity when this can be quantified. The value of services provided by volunteers has not been included in these accounts.
Investment income is included when receivable.
Incoming resources from permissible trading activity are accounted for when earned.
Incoming resources form grants, when related to performance and specific deliverable, are accounted for as the charity earns the right to consideration by its performance.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
legacy income is recognised when receipt is probable and entitlement is established.
-
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
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Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
3. Accounting policies (continued)
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for the 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 include those costs associated with meeting the constitutional and statutory requirements of the charity and include the external scrutiny fees and costs linked to the strategic management of the charity.
Administration costs comprise service costs incurred in support of the charity.
Tangible assets
All fixed assets are initially recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment - between three and five years
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
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Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
3. Accounting policies (continued)
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Limited by guarantee
The company is limited by guarantee and each member of the company, in the event of the winding up of the company, undertakes to contribute to the assets of the company, a maximum of £1.
5. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations | 3,241 | 3,241 | 6,668 | 6,668 |
| ৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶ | |
| Charitable activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Sale of goods/services as part of direct | ||||
| charitable activities | 561,879 | 561,879 | 445,913 | 445,913 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
6. Charitable activities
- 16 -
Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
7. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Direct costs in relation to charitable | |||||
| activity | 286,146 | 286,146 | 214,972 | 214,972 | |
| Support costs | 146,190 | 146,191 | 138,118 | 138,117 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| 432,336 | 432,337 | 353,090 | 353,089 | ||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| 8. | Expenditure on charitable activities by activity type | ||||
| Activities | |||||
| undertaken | Total funds | Total fund | |||
| directly | Support costs | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Direct costs in relation to charitable | |||||
| activity | 286,146 | 139,872 | 426,018 | 345,146 | |
| Governance costs | – | 6,319 | 6,319 | 7,943 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| 286,146 | 146,191 | 432,337 | 353,089 | ||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| 9. | Analysis of support costs | ||||
| Support costs | Total 2023 | Total 2022 | |||
| £ | £ | £ | |||
| Staff costs | 68,703 | 68,703 | 71,016 | ||
| Premises | 1,863 | 1,863 | 16,840 | ||
| Communications and IT | 2,665 | 2,665 | 1,396 | ||
| General office | 34,493 | 34,493 | 17,196 | ||
| Finance costs | 1,457 | 1,457 | 1,064 | ||
| Support costs - Other costs | 32,009 | 32,009 | 30,606 | ||
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |||
| 141,190 | 141,190 | 138,118 | |||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |||
| 10. | Net income | ||||
| Net income is stated after charging/(crediting): | |||||
| 31 Aug 23 | 30 Nov 22 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 1,432 | 601 | |||
| ৶৶৶৶৶৶৶ | ৶৶৶৶ | ||||
| 11. | Independent examination fees | ||||
| Period from | |||||
| 1 Dec 22 to | Year to | ||||
| 31 Aug 23 | 30 Nov 22 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 2,640 | 2,300 | |||
| ৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶ |
- 17 -
Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
12. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| Period from | ||
|---|---|---|
| 1 Dec 22 to | Year to | |
| 31 Aug 23 | 30 Nov 22 | |
| £ | £ | |
| Wages and salaries | 243,109 | 163,171 |
| Social security costs | 15,730 | 8,792 |
| Employer contributions to pension plans | 6,373 | 5,185 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| 265,212 ৶৶৶৶৶৶৶৶৶ |
177,148 ৶৶৶৶৶৶৶৶৶ |
The average head count of employees during the period was 15 (2022: 9). The average number of full-time equivalent employees during the period is analysed as follows:
| of full-time equivalent employees during the | period is analysed as follows: | |||
|---|---|---|---|---|
| 31 | Aug 23 | 30 Nov | 22 | |
| No. | No. | |||
| Number of staff | 15 | 9 | ||
| ৶৶৶৶ | ৶৶৶৶ |
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
13. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees
14. Tangible fixed assets
| Land and | |||
|---|---|---|---|
| buildings | Equipment | Total | |
| £ | £ | £ | |
| Cost | |||
| At 1 December 2022 | 236,672 | 10,265 | 246,937 |
| Additions | – | 6,680 | 6,680 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| At 31 August 2023 | 236,672 | 16,945 | 253,617 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Depreciation | |||
| At 1 December 2022 | – | 8,805 | 8,805 |
| Charge for the period | – | 1,432 | 1,432 |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| At 31 August 2023 | – | 10,237 | 10,237 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Carrying amount | |||
| At 31 August 2023 | 236,672 | 6,708 | 243,380 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| At 30 November 2022 | 236,672 | 1,460 | 238,132 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
Land and Buildings includes the purchase of 50% of Woodlands during 2013 for £65,000 the other 50% is owned by Willington Court Limited (charity no 1105335).
- 18 -
Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
15. Debtors
| 31 Aug 23 | 30 Nov 22 | ||
|---|---|---|---|
| £ | £ | ||
| Trade debtors | 302,964 | 63,252 | |
| Other debtors | 2,329 | – | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ||
| 305,293 | 63,252 | ||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ||
| 16. | Creditors: amounts falling due within one year | ||
| 31 Aug 23 | 30 Nov 22 | ||
| £ | £ | ||
| Bank loans and overdrafts | 9,415 | 9,259 | |
| Trade creditors | 3,518 | 16,430 | |
| Accruals and deferred income | 305,604 | 2,300 | |
| Social security and other taxes | 8,369 | 8,712 | |
| Other creditors | 99,838 | 106,639 | |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ||
| 426,744 | 143,340 | ||
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ||
| 17. | Creditors: amounts falling due after more than one year | ||
| 31 Aug 23 | 30 Nov 22 | ||
| £ | £ | ||
| Bank loans and overdrafts | 22,098 | 28,367 | |
| ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ||
| 18. | Deferred income | ||
| 31 Aug 23 | 30 Nov 22 | ||
| £ | £ | ||
| Amount deferred in period | 302,964 | – | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶ |
19. Pensions and other post retirement benefits
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £6,098 (2022- £5,185).
- 19 -
Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
20. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||
|---|---|---|---|---|
| At | At | |||
| 1 December 2 | 31 | August 20 | ||
| 022 | Income | Expenditure | 23 | |
| £ | £ | £ | £ | |
| General funds | 260,091 | 565,120 | (432,336) | 392,875 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| At | At | |||
| 1 December 2 | 30 | November | ||
| 021 | Income | Expenditure | 2022 | |
| £ | £ | £ | £ | |
| General funds | 160,599 | 452,581 | (353,090) | 260,090 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Restricted funds | ||||
| At | At | |||
| 1 December 2 | 31 | August 20 | ||
| 022 | Income | Expenditure | 23 | |
| £ | £ | £ | £ | |
| Minibus | 10,000 | – | – | 10,000 |
| ৶৶৶৶৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶৶৶৶৶ | |
| At | At | |||
| 1 December 2 | 30 | November | ||
| 021 | Income | Expenditure | 2022 | |
| £ | £ | £ | £ | |
| Minibus | 10,000 | – | – | 10,000 |
| ৶৶৶৶৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶ | ৶৶৶৶৶৶৶৶ |
King's Reach received a £10K grant from the National Lottery in the year to 30 November 2016, which was part funding for a new mini bus to assist our education provision. Kings Reach is seeking to attain further funding for the provision of the mini bus.
- 20 -
Kings Reach Limited
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Period from 1 December 2022 to 31 August 2023
21. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | 243,380 | – | 243,380 |
| Current assets | 598,336 | 10,000 | 608,336 |
| Creditors less than 1 year | (426,744) | – | (426,744) |
| Creditors greater than 1 year | (22,098) | – | (22,098) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Net assets | 392,874 | 10,000 | 402,874 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Tangible fixed assets | 238,132 | – | 238,132 |
| Current assets | 193,666 | 10,000 | 203,666 |
| Creditors less than 1 year | (143,340) | – | (143,340) |
| Creditors greater than 1 year | (28,367) | – | (28,367) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| Net assets | 260,091 | 10,000 | 270,091 |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
22. Financial instruments
| The carrying amount for each category of financial instrument is as follows: | The carrying amount for each category of financial instrument is as follows: | ||
|---|---|---|---|
| 31 | Aug 23 | 30 Nov 22 | |
| £ | £ | ||
| Financial assets measured at fair value through income and expenditure | |||
| Financial assets measured at fair value through income and | |||
| expenditure | 236,672 | 236,672 | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
23. Analysis of changes in net debt
| At | |||
|---|---|---|---|
| At 1 Dec 2022 | Cash flows | 31 Aug 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 140,414 | 162,629 | 303,043 |
| Debt due within one year | (9,259) | (156) | (9,415) |
| Debt due after one year | (28,367) | 6,269 | (22,098) |
| ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | ৄৄৄৄৄৄৄৄৄ | |
| 102,788 | 168,742 | 271,530 | |
| ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ | ৶৶৶৶৶৶৶৶৶ |
- 21 -