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2021-03-31-accounts

Registered number: 06739988 Charity number: 1133286

UNITAS

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

UNITAS

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 7
Independent auditors' report on the financial statements 8 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Company balance sheet 14
Consolidated statement of cash flows 15
Notes to the financial statements 16 - 33

(A company limited by guarantee)

UNITAS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Philip Clapp, Joint Chair
Nicola Lowit, Joint Chair
Erica Crump
Company registered
number
06739988
Charity registered
number
1133286
Registered office
King Street House
15 Upper King Street
Norwich
NR3 1RB
Chief executive officer
Martin Stephenson
Independent auditors
Larking Gowen LLP
Chartered Accountants
Statutory Auditors
King Street House
15 Upper King Street
Norwich
NR3 1RB
Bankers
The Co-Operative Bank PLC
PO Box 250
Skelmersdale

Page 1

UNITAS (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the group and the company for the year 1 April 2019 to 31 March 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Since the company and the group qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

At the date of this report, the Trustees are encouraged by the charity’s resilience to date in light of the Covid-19 crisis, and its ability to continue to provide a range of charitable activity to its beneficiaries throughout the crisis.

Objectives and activities

a. Policies and objectives

Unitas is a company limited by guarantee and a registered charity.

Its purpose is set out in the Memorandum of Association, as amended in 2017:

To act as a resource for people, in particular but not limited to young people, in the UK and worldwide by providing advice and assistance and organising programmes of physical, educational and other activities as a means of:

Unitas intends to achieve its objects by working in collaboration with other organisations to deliver products and services. Unitas will maintain quality of delivery through products and services being devised and refined according to the best available evidence, and with constant improvement and innovation being a priority for the organisation.

Page 2

UNITAS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

b. Activities undertaken to achieve objectives

All activities undertaken by Unitas during the year 2020-2021 have sought to further its charitable purposes for the public benefit. We adopt varied approaches to engaging young people and seek to support those staff who work to engage young people.

Principal charitable activities during this period (conducted by Unitas and Unitas Academy) have included:

The Trustees have complied with the duty in the Charities Act 2006 to have due regard to the public benefit guidance published by the Commission. Unitas works with beneficiaries and young people from all backgrounds - economic status, gender, ethnicity, race, religion or disability do not form part of any assessment processes. Our activities listed below illustrate how the charity provides public benefit.

Unitas is an equal opportunity organisation which is committed to working in a manner that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability.

Achievements and performance

a. Review of activities

Our objects were principally achieved through the programmes and services listed below. The main achievements and performance of Unitas during the year have included management of:

Summer Arts Colleges - working in partnership with Youth Offending Teams and arts organisations during the pandemic to deliver education projects for young people at risk of offending. Due to restrictions on face-to-face sessions, the delivery of this successful model now in its twelfth year was moved online for the majority of the sites. This necessitated extending the timeline into the Autumn and Winter with the full support of Arts Council England.

Unitas Academy - the Foundation Degree in Youth Justice (FDYJ), validated by the University of Suffolk continued into its fourth year with two new cohorts commencing, with students from Cohort 3 and Cohort 4 completing their qualification this year.

In addition, Cohort 3 of the BA in Social Policy completed with a fourth cohort now underway.

The third cohort of Managing & Coaching in Youth Justice (MCYJ) commenced in September 2020.

The Youth Justice Effective Practice Certificate (YJEPC) undertook two additional cohorts in June and January due to the demand from employers for staff training during the lockdown period.

Research and evaluation activities continue through rigorous evaluation of our programmes and development of additional research projects.

Page 3

UNITAS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

b. Factors relevant to achieve objectives

The environmental factors of Covid-19 have continued to be felt throughout 2020 and are continuing into 2021. The requirement to adhere to Government guidelines for home working have tested our systems, but the organisation has proven to be resilient and all Unitas scheduled courses continue without interruption, with adaptations being made to continue unbroken delivery. The financial context continues to be challenging for charities such as Unitas as charitable trusts are seeing unprecedented demands on their funds, making it all the more difficult for fundraising. Our medium-term future will rely on a continuing substantial shift towards income derived from sales augmented by investment funding from charitable trusts and arts agencies.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

b. Review

The year saw a surplus of £100,671 (2020: £15,191). After a successful pilot in 2017, we contracted with HMPPS to deliver 1250 places on the Foundation Degree in Youth Justice (FDYJ) over the next 5 years, which started from April 2018. In addition to the FDYJ we are contracted until 2022 to deliver 100 places on the Managing & Coaching in Youth Justice (MCYJ) BA and 20 places on the Independent Review Module (IRM) BA Hons. This meant a significant increase in sales to reduce the reliance on grant funding.

c. Reserves policy

Our current level of unrestricted funds is £375,697 (2020: £275,026). We have a target of £450,000, equating to 6 months’ worth of costs and investment funds of £100,000. However, whilst we continue to undergo a period of growth and high investment in new courses it has been appropriate to go below this target. As we earn income from the new courses, we expect to return to our target reserves in 2022.

d. Principal funding

Income is largely derived from sales of courses with less dependency on grant funding consistent with our strategic plan.

e. Material investments policy

Unitas does not hold any investments, cash is held in UK bank accounts.

Page 4

(A company limited by guarantee)

UNITAS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

a. Constitution

Unitas is a charitable company limited by guarantee, incorporated as a company in England and Wales in November 2008 and registered as a charity in December 2009. The company was established under a Memorandum of Association which established its objects and its powers as a charitable company, and it is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

b. Methods of appointment or election of Trustees

The Trustees are the members of the company. According to the Articles of Association Trustees are appointed by a resolution of Trustees. When seeking candidates for appointment, the Trustees will take into account any gaps in relevant skills and knowledge required in the governance of the charity.

c. Policies adopted for the induction and training of Trustees

Reviewed annually in the following circumstances, new Trustees, significant external policy developments, Charity Commission requirements and other priorities highlighted by the Trustees.

d. Pay policy for senior staff

The CEO is subject to an annual pay review carried out by the Trustees.

e. Organisational structure and decision making

The Trustees bring to the board of Unitas their belief in the importance of all people being able to develop their skills and access education. They collectively bring knowledge and experience gained from working across a range of professional environments. Each Trustee also brings business skills and experience of working in the public sector, the arts and with young people, which support the work of Unitas. Trustees have been provided with induction and training as to their role and responsibilities and have continuing access to information and advice services provided by the organisation’s auditors and legal advisers.

Full meetings of Trustees are held quarterly. At each meeting Trustees consider written and verbal reports on current and planned activities, finance, fundraising and risks. The Trustees consider the major risks to which the organisation is exposed at each quarterly meeting, and strategies are adopted to mitigate these risks as far as possible. Staff from Unitas attend these meetings to ensure Trustees are fully briefed and can be provided with additional information as required by the Trustees.

Day-to-day responsibility for operations and the successful functioning of the organisation is delegated to the Chief Executive, who is responsible for ensuring that the charity delivers the objects specified and meets targets set by the Strategic Plan and annual Business Plan as approved by the Trustees.

Expenditure on a single item in excess of £20,000 must be referred to the Trustees for authorisation. The Trustees are responsible for setting the pay and remuneration of the charity’s key management personnel. This is reviewed on an annual basis.

Page 5

UNITAS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

f. Risk management

The Trustees have assessed the major risks to which the company and the group is exposed, in particular those related to the operations and finances of the company and the group and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Plans for future periods

The 5-year strategic plan sets out the priorities until 2023 to ensure Unitas achieves its objectives. Further development of the Academy, including development of BA courses both to sell on the open market and for existing students to top up prior learning to a full BA, BA Hons or Masters.

Unitas is working in conjunction with other industry bodies to create an institute which will focus on the professional learning and development of those in the youth justice system in line with the Youth Justice Framework.

The main focus will be on further developing the Unitas Academy. This will be achieved by marketing the new and existing products to increase sales and by developing our digital resources still further so that there is a wide range of training programmes available up to Masters level.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' 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. 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 Group and the company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the 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 Group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

UNITAS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Philip Clapp Joint Chair Date:

Page 7

UNITAS (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF UNITAS

Opinion

We have audited the financial statements of Unitas (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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 8

UNITAS

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF UNITAS (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

Page 9

UNITAS (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF UNITAS (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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

Due to the field in which the Charity operates, we have identified the following areas as those most likely to have a material impact on the financial statements: health and safety; employment laws; GDPR; serious incident reporting and compliance with the UK Companies Act.

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

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognised the non-compliance.

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 Auditors' report.

Page 10

(A company limited by guarantee)

UNITAS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF UNITAS (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Giles Kerkham FCA DChA (Senior statutory auditor)

for and on behalf of

Larking Gowen LLP Chartered Accountants Statutory Auditors King Street House 15 Upper King Street Norwich NR3 1RB

Date: 28 January 2022

Page 11

UNITAS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
1,282,000
239
1,282,239
1,181,060
1,181,060
101,179
(508)
100,671
275,026
100,671
375,697		 Restricted
funds
2021
£
300,000
-
300,000
300,508
300,508
(508)
508
-
-
-
-		 Total
funds
2021
£
1,582,000
239
1,582,239
1,481,568
1,481,568
100,671
-
100,671
275,026
100,671
375,697		 Total
funds
2020
£
1,562,139
1,075
1,563,214
1,548,023
1,548,023
15,191
-
15,191
259,835
15,191
275,026

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 33 form part of these financial statements.

Page 12

UNITAS (A company limited by guarantee) REGISTERED NUMBER: 06739988

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
10
Tangible assets
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current liabilities
Total net assets
Charity funds
Restricted funds:
Unrestricted funds
16
Total funds		 9,154
1,093,258
992,929
2,095,341
(2,186,969)		 2021
£
457,957
9,368
467,325
(91,628)
375,697
375,697
375,697		 24,332
367,814
591,916
984,062
(1,213,145)		 2020
£
496,907
7,202
504,109
(229,083)
275,026
275,026
275,026

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Philip Clapp Joint Chair Date:

The notes on pages 16 to 33 form part of these financial statements.

Page 13

UNITAS (A company limited by guarantee) REGISTERED NUMBER: 06739988

COMPANY BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
10
Tangible assets
11
Investments
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current liabilities
Total net assets
Charity funds
Unrestricted funds
16
Total funds		 286
72,245
317,289
389,820
(481,548)		 2021
£
457,957
9,368
100
467,425
(91,728)
375,697
375,697
375,697		 482
47,800
252,519
300,801
(451,945)		 2020
£
496,907
7,202
100
504,209
(151,144)
353,065
353,065
353,065

The company's net movement in funds for the year was £ 22,632 (2020 - £(19,857)) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Philip Clapp Joint Chair Date: 18/1/22

The notes on pages 16 to 33 form part of these financial statements.

Page 14

UNITAS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of intangible assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 16 to 33 form part of these financial statements		 2021
£
550,038
(142,728)
(6,297)
(149,025)
-
401,013
591,916
992,929		 2020
£
286,930
(221,169)
(7,352)
(228,521)
-
58,409
533,507
591,916

Page 15

UNITAS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The company is a company limited by guarantee, incorporated in England and Wales. The registered office is King Street House, 15 Upper King Street, Norwich, Norfolk, United Kingdom, NR3 1RB. The registered company number is 06739988. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

UNITAS meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

In approving these accounts, the Trustees have assessed whether the use of going concern is appropriate and whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Taking into account the expected level of income and expenditure, the level of unrestricted funds, the liquid assets and funding secured to 31 March 2022 and beyond, the Trustees consider the organisation is in a stable financial position. The Trustees consider that the budgeted cashflow and the level of unrestricted reserves are sufficient for UNITAS to be able to meet its liabilities as they fall due for at least 12 months. For this reason, the Trustees consider it appropriate for the financial statements to continue to be prepared on a going concern basis and that there are no material uncertainties.

Page 16

UNITAS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Recognition policies for Academy contracts

YJEPC: 30% of income recognised at registration, 70% split over the 8 months of the course.

Foundation Degree and Bachelor of Arts (with or without Honours) courses: 15% of income recognised at registration, 85% split over the 26 months of the course.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Central Office.

Charitable activities and Governance costs are costs incurred on the company's charitable operations. Support costs and costs relating to the governance of the company are allocated to charitable activities to which they relate where possible, with the remainder apportioned appropriately between the Charity and its Subsidiary.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

2.5 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated statement of financial activities.

Page 17

UNITAS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.6 Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Intangible assets and amortisation

Intangible assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible assets include costs of developing training materials that will be realised in delivery of UNITAS courses.

The estimated useful lives are as follows:

Amortisation is provided on the following bases:

Book Publishing Rights - % 20% straight line
Training Materials - % 20% - 33% straight line
Website - % 20% straight line

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Page 18

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

2.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.15 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

Page 19

UNITAS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.16 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these adjustments and estimates have been made include:

Critical accounting estimates and assumptions:

The annual amortisation/depreciation charge for intangible and tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual lives are reassessed annually. See notes 10 and 11 for the carrying amounts of the assets, and notes 2.7 and 2.8 for the useful economic lives for each class of asset.

Page 20

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

Unrestricted
funds
2021
£
ACE - Summer Arts College
-
EPA (UA)
27,844
Criminology (UA)
1,123
Social Policy (UA)
8,464
Management & Coaching (UA)
72,686
Dissertation (IRM) (UA)
15,320
Youth Justice Institute (UA)
-
YJEPC (UA)
144,836
Foundation Degree (UA)
1,003,502
ITC Rainsbrook (UA)
8,225
Total 2021
1,282,000
Unrestricted
funds
2020
£
ACE - Summer Arts College
-
West Midlands PCC - Summer Arts College
-
Text Now
1,250
Social Policy (UA)
7,133
Management & Coaching (UA)
71,350
Dissertation (IRM) (UA)
863
Youth Justice Institute (UA)
33,600
YJEPC (UA)
143,258
Foundation Degree (UA)
972,729
Other
11,956
Total 2020
1,242,139		 Restricted
funds
2021
£
300,000
-
-
-
-
-
-
-
-
-
300,000
Restricted
funds
2020
£
300,000
20,000
-
-
-
-
-
-
-
-
320,000		 Total
funds
2021
£
300,000
27,844
1,123
8,464
72,686
15,320
-
144,836
1,003,502
8,225
1,582,000
Total
funds
2020
£
300,000
20,000
1,250
7,133
71,350
863
33,600
143,258
972,729
11,956
1,562,139

Page 21

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Investment income

Unrestricted
funds
2021
£
Bank interest receivable
239
Unrestricted
funds
2020
£
Bank interest receivable
1,075		 Total
funds
2021
£
239
Total
funds
2020
£
1,075

6. Analysis of expenditure by activities

ACE - Summer Arts College
Social Policy (UA)
Management & Coaching (UA)
Dissertation (IRM) (UA)
Criminology (UA)
EPA (UA)
YJEPC (UA)
Foundation Degree (UA)
Other
Total 2021		 Activities
undertaken
directly
2021
£
173,204
25,971
53,902
10,849
25,217
19,154
114,912
602,673
6,546
1,032,428		 Support
costs
2021
£
141,880
8,420
12,889
8,897
5,771
10,468
29,480
227,050
4,285
449,140		 Total
funds
2021
£
315,084
34,391
66,791
19,746
30,988
29,622
144,392
829,723
10,831
1,481,568

Page 22

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

ACE - Summer Arts College
TextNow
Social Policy (UA)
Management & Coaching (UA)
Dissertation (UA)
Other (UNITAS)
Youth Justice Institute (UA)
YJEPC (UA)
Foundation Degree (UA)
Other (UA)
Total 2020		 Activities
undertaken
directly
2020
£
254,383
7,474
25,717
38,442
486
-
2,522
112,489
604,889
30,525
1,076,927		 Support
costs
2020
£
82,074
842
9,861
38,724
6,883
146
31,303
60,324
226,227
14,712
471,096		 Total
funds
2020
£
336,457
8,316
35,578
77,166
7,369
146
33,825
172,813
831,116
45,237
1,548,023

Page 23

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Wages and salaries
Depreciation
Office costs
Property rent
Interest payable
Sundry expenses
Capital manager resources
Meetings and travel
Marketing
Legal and professional fees
Bad debts written off		 Total
funds
2021
£
286,477
4,131
30,644
31,646
378
23,466
46,513
1,630
5,910
16,245
2,100
449,140		 Total
funds
2020
£
302,876
3,830
31,252
28,912
342
12,335
42,444
23,318
10,896
14,891
-
471,096

7. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £9,150 (2020 - £9,000) , and fees for assistance in the preparation of the accounts of £2,000 ( 2020 - £2,000 ).

Page 24

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes
Other employment costs		 Group
2021
£
306,405
27,266
23,521
-
357,192		 Group
2020
£
287,767
25,512
21,222
21,874
356,375		 Company
2021
£
235,690
27,266
23,521
-
286,477		 Company
2020
£
234,268
25,512
21,222
19,624
300,626

The above costs, £357,192 (2020: £356,375) reflect general wages that are included within expenditure in the Statement of Financial Activities. A further £58,675 (2020: £81,526) of wages costs have been capitalised.

The average number of persons employed by the company during the year was as follows:

Group Group
2021 2020
No. No.
8 8

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 1 -
In the band £90,001 - £100,000 1 -
In the band £110,000 - £119,999 - 1

Key management personnel consist of the Trustees, the Chief Executive and the Business Director. Emoluments (including employer's national insurance and pension contributions) paid to members of the key management personnel totalled £184,210 (2020: £209,755).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been reimbursed (2020 - £NIL) .

Page 25

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Intangible assets

Group and Company

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Amortisation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Book
Publishing
Rights
£
11,410
-
-
11,410
9,128
2,282
11,410
-
2,282		 Training
Materials
£
624,490
141,748
-
766,238
209,171
141,672
350,843
415,395
415,319		 Website
£
155,202
980
(250)
155,932
75,896
37,474
113,370
42,562
79,306		 Total
£
791,102
142,728
(250)
933,580
294,195
181,428
475,623
457,957
496,907

Page 26

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
11.
Tangible fixed assets
Group and Company
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
12.
Fixed asset investments
company
Cost or valuation
At 1 April 2020
At 31 March 2021		 Office
equipment
£
17,947
6,297
24,244
10,745
4,131
14,876
9,368
7,202
Investments
in
subsidiary
companies
£
100
100

Page 27

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Stocks

Group
2021
£
Finished goods and goods for resale
9,154
14.
Debtors
Group
2021
£
Trade debtors
977,940
Other debtors
790
Prepayments and accrued income
114,528
1,093,258
15.
Creditors: Amounts falling due within one year		 Group
2020
£
24,332
Group
2020
£
147,015
-
220,799
367,814		 Company
2021
£
286
Company
2021
£
-
5,890
66,355
72,245		 Company
2020
£
482
Company
2020
£
13,500
5,830
28,470
47,800
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Accruals and deferred income		 Group
2021
£
44,285
-
162,599
1,980,085
2,186,969		 Group
2020
£
98,821
-
21,855
1,092,469
1,213,145		 Company
2021
£
30,296
379,485
8,552
63,215
481,548		 Company
2020
£
17,173
404,014
9,430
21,328
451,945

Page 28

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds

Statement of funds - current year

Balance at 1
April 2020
£
Unrestricted funds
Designated funds
Fixed asset fund
504,109
General funds
General funds
(229,083)
Total Unrestricted funds
275,026
Restricted funds
Arts Council England -
Summer Arts College
-
Total of funds
275,026		 Income
£
Expenditure
£
-
(185,559)
1,282,239
(995,501)
1,282,239
(1,181,060)
300,000
(300,508)
1,582,239
(1,481,568)		 Transfers
in/out
£
148,775
(149,283)
(508)
508
-		 Balance at
31 March
2021
£
467,325
(91,628)
375,697
-
375,697

Page 29

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General funds
Total Unrestricted funds
Restricted funds
Arts Council England -
Summer Arts College
Other Arts Programmes
Total of funds		 Balance at
1 April 2019
£
419,920
(160,085)
259,835
-
-
-
259,835		 Income
£
-
1,243,214
-
300,000
20,000
320,000
320,000		 Expenditure
£
(135,711)
(1,075,855)
(1,211,566)
(300,000)
(36,457)
(336,457)
(1,548,023)		 Transfers
in/out
£
219,900
(236,357)
(16,457)
-
16,457
16,457
-		 Balance at
31 March
2020
£
504,109
(229,083)
275,026
-
-
-
275,026

Page 30

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
9,368
Intangible fixed assets
457,957
Current assets
2,095,341
Creditors due within one year
(2,186,969)
Total
375,697		 Total
funds
2021
£
9,368
457,957
2,095,341
(2,186,969)
375,697

Analysis of net assets between funds - prior year

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
7,202
496,907
984,062
(1,213,145)
275,026		 Total
funds
2020
£
7,202
496,907
984,062
(1,213,145)
275,026

Page 31

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Amortisation and depreciation charges
Loss on disposal of fixed assets
Decrease in stocks
Increase in debtors
Increase in creditors
Net cash provided by operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
20.
Analysis of changes in net debt
At 1 April
2020
£
Cash at bank and in hand
591,916		 Group
2021
£
100,671
185,559
250
15,178
(725,444)
973,824
550,038
Group
2021
£
992,929
992,929
Cash flows
£
401,013		 Group
2020
£
15,191
135,711
8,621
18,931
(39,646)
148,122
286,930
Group
2020
£
591,916
591,916
At 31 March
2021
£
992,929

Page 32

UNITAS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £23,521 (2020 - £21,222). No contributions were payable to the fund at the balance sheet date.

22. Operating lease commitments

At 31 March 2021 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Not later than 1 year 19,085 17,660 19,085 17,660

23. Related party transactions

In the year the following transactions took place between the Charity and its wholly owned subsidiary Unitas Academy Limited:

The Charity charged Unitas Academy Limited £190,470 (2020: £144,332) for the use of training materials. At the balance sheet date, the Charity owed £379,485 (2020: £404,014) to Unitas Academy Limited.

24. Principal subsidiary

The following was a subsidiary undertaking of the company:

Name Company Holding Included in
number consolidation
Unitas Academy Ltd 10412927 100% Yes
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit / Net assets
£ £ (Loss) for £
the year
£
Unitas Academy Ltd 1,256,171 (1,138,183) 117,988 100

Page 33