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2020-12-31-accounts

KT Educational Charitable Trust

Annual Report and Financial Statements

31 December 2020

Company registration number 07057043 (England and Wales)

Charity Registration number 1135017

Contents

Reports
Reference and administrative details of
the charity, its Trustees and advisers 1
Trustees’ report 2
Independent auditor’s report 7
Financial statements
Statement of
financial activities 12
Balance sheet 13
Statement of cash flows 14
Principal accounting policies 15
Notes to the financial statements 19

KT Educational Charitable Trust

Reference and administrative details of the charity, its Trustees and advisers

Trustees Mr Richard Fairbairn
Mr Jean-Pierre Mustier
Mr Arnaud Vaissié
Registered office 23 Cromwell Road
London
SW7 2EL
Charity registration number 1135017
Company registration number 07057043 (England and Wales)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC
HSBC Holdings PLC HBEU
West London Corporate
2ndFloor, Space One
1 Beadon Road
Hammersmith
London
W6 0EA
Banque Transatlantique
26 Avenue Franklin Roosevelt
Paris
Solicitors Adam Perry & Co LLP
10 Spaces Business Centre
15-17 Ingate Place
London
SW8 3NS

KT Educational Charitable Trust 1

Trustees’ report Year to 31 December 2020

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2020.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation.

The accounts have been prepared in accordance with the accounting policies set out on pages 15 to 18 of the attached accounts and comply with the charitable company’s memorandum and articles of association, 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 United Kingdom and Republic of Ireland (FRS 102).

Introduction

The charity was incorporated as a company limited by guarantee on 26 October 2009 as French Education Property Trust (“FEPT”) and obtained charitable status on 18 March 2010. On 18 September 2013 the charity changed its name to KT Educational Charitable Trust (“KTECT”). The charity’s parent entity was French Education Charitable Trust Limited (“FECT”) (Company Registration Number 08679804 (England and Wales)) until 1 October 2019, the date of FECT’s dissolution at Companies House. In the event of the winding up of the company each member guarantees a sum not exceeding £10.

Objectives

The objectives for which the charity is established are to advance, for the public benefit in the United Kingdom, the education of pupils in the French education system. The objectives are in particular, but not limited to, the provision of premises and facilities for schools offering a French or a broader bilingual curriculum in the Kentish Town area. The charity aims to provide assistance in establishing, maintaining, carrying on, managing and developing such schools.

In setting the charity’s objectives and planning its activities, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE

Review of the year

KT Educational Charitable Trust set up the Collège Français Bilingue De Londres (CFBL) school which opened in 2011.

CFBL has a board of governors who meet regularly to make key decisions for the school.

The school ran at almost full capacity during 2020 and the numbers for next school year are expected to be as high.

CFBL continues to pay rent on time to KT Educational Charitable Trust.

KT Educational Charitable Trust 2

Trustees’ report Year to 31 December 2020

ACHIEVEMENTS AND PERFORMANCE (continued)

Review of the year (continued)

Although the cumulated context of Covid-19 and Brexit seems to have had little to no impact on CFBL’s pupil intake, CFBL’s financial situation remains a little fragile after the school had to use some of its reserves to fund unforeseen staff pension expenses which occurred in previous fiscal years. A cost savings plan has been put in place by the board of governors to reconstitute these reserves.

In 2018 KT Educational Charitable Trust signed a grant agreement for a total of £450,000 with the French Scholarship Foundation (FSF). FSF is a registered charity whose charitable objects include advancing education and promoting the continued attendance of any child registered or applying to register to Collège Français Bilingue de Londres or Lycée International de Londres Winston Churchill. As of 31 December 2020, all but one payment of £75,000 had been made, with the final payment due in the first quarter of 2021

FINANCIAL REVIEW

During the period, donations of £79,000 (2019 – £27,000) were received. Rental income of £1,717,000 was received in the year (2019 – £1,666,000). Interest of £89,000 was received (2019 – nil). Costs relating to charitable actives in the year amounted to £1,131,000 (2019 – £1,088,000).

Net income for the year was £754,000 (2019 – £605,000). The property held as a programme related investment was revalued at 31 December 2020 with an increase in value of £5,400,000. The total funds as at 31 December 2020 were £7,500,000 (2019 – £1,346,000).

Reserves policy

The trustees regularly monitor the cash position of the charity to ensure that there are sufficient funds for capital projects and the running of the charity, including servicing the bank finance. In particular, at the current time, the reserves need to be sufficient to enable the charity to operate in the exceptional circumstances created by the Covid-19 pandemic.

Financial position

The charity had total funds at 31 December 2020 of £2,100,000 (2019 – £1,346,000). Once the programme related investments and long term loan are excluded, this leaves free reserves of £698,000 (2019 – £424,000). In the light of the uncertainties due to the Covid-19 pandemic, the trustees are of the opinion that the free reserves are adequate.

FUTURE PLANS

Given the high demand received by CFBL, especially amongst Early Years, the school board is discussing the possibility of increasing its overall capacity by renting additional premises, which would be dedicated to the Early Years and to after school and/or holiday activities for children. This would free some space on the main site to welcome older children’s classes, bring additional revenue to the school, and broaden its targeted audience with potentially more local and/or non-French families attracted by the Early Years offer with the hope that the latter will be keen on having their children pursue the bilingual school curriculum at CFBL.

KT Educational Charitable Trust 3

Trustees’ report Year to 31 December 2020

FUTURE PLANS (continued)

In January 2021, KTECT trustees decided to make a donation of £100,000 to CFBL in order to help the school limit its fee increase and therefore maintain its attractivity to local parents.

GOVERNANCE, STRUCTURE AND MANAGEMENT

Organisation

The trustees meet officially in person once or twice a year and more frequently when required. They also hold conference calls when required and there are at least monthly email exchanges regarding budgets. Any new trustees are inducted regarding their responsibilities and the activities of the KTECT through detailed briefings.

It is understood that current trustees have a long-term commitment and therefore there are no changes to the trustees currently envisaged.

All trustees have agreed to adhere to the charity’s conflicts of interests’ policy and have signed a statement to this effect.

Trustees

The following trustees were in office at 31 December 2020 and served throughout the year:

Trustees Appointed/resigned
Mr Richard Fairbairn
Mr Jean-Pierre Mustier
Mr Arnaud Vaissié

Key management personnel

The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity.

None of the trustees receive any remuneration for their services.

Trustees’ responsibilities statement

The trustees (who are also directors of KT Educational Charitable Trust for the purposes of company law) are responsible for preparing the trustees’ report and 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 charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

KT Educational Charitable Trust 4

Trustees’ report Year to 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Trustees’ responsibilities statement (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Risk management

The trustees have reviewed the risks faced by the charity and have procedures in place to mitigate the risks identified.

The key risk to the charity is the level of admissions at the tenant school, this could be affected by Brexit, the current COVID-19 pandemic and could ultimately have the potential to affect the ability of its tenant school to pay their rent in accordance with the lease agreement. The admissions numbers are monitored and the school itself is implementing its own communications strategies to ensure the school operates at as close to full capacity as possible.

KT Educational Charitable Trust 5

Trustees’ report Year to 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Raising funds

The charity does not actively fundraise although it welcomes donations.The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activites and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising acitvities.

Approved by the Board of Trustees:

Jean-Pierre Mustier

Trustee

Approved on: 26 August 2021

KT Educational Charitable Trust 6

Independent auditor’s report Year to 31 December 2020

Independent auditor’s report to the members of KT Educational Charitable Trust

Opinion

We have audited the financial statements of KT Educational Charitable Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 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 charity’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.

KT Educational Charitable Trust 7

Independent auditor’s report Year to 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, 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.

Opinions 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 the 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 the Companies Act 2006 requires us to report to you if, in our opinion:

KT Educational Charitable Trust 8

Independent auditor’s report Year to 31 December 2020

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 to irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

How the audit was considered capable of detecting irregularities including fraud

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

KT Educational Charitable Trust 9

Independent auditor’s report Year to 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

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

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

KT Educational Charitable Trust 10

Independent auditor’s report Year to 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

We did not identify any irregularities, including fraud.

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 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.

Avnish Savjani (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

21 September 2021

KT Educational Charitable Trust 11

Statement of financial activities Year ended 31 December 2020

Notes 2020
Total
funds
£’000		 2019
Total
funds
£’000
Income and expenditure
Income from:
Donations
1
Charitable activities
. Provision of premises and facilities
2
Interest receivable
Bank Interest receivable
Total income
Expenditure
Expenditure on charitable activities
. Provision of premises and facilities
3
Total expenditure
Net income before gains on revaluation of investment
property
Gain on revaluation of investment property
8
Net income and net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 January 2020
Total funds carried forward at 31 December 2020		 79
1,717
87
2		 27
1,666
—
—
1,885 1,693
1,131 1,088
1,131 1,088
754
5,400		 605
—
6,154
1,346		 605
741
7,500 1,346

All of the charity’s activities derived from continuing operations during the above two financial periods.

All recognised gains and losses are included in the above statement of financial activities.

All funds of the charity are unrestricted.

The notes on pages 19 to 23 form part of these financial statements.

KT Educational Charitable Trust 12

Balance sheet 31 December 2020

Notes
2020
£’000		 2019
£’000
Fixed assets
Programme related investments
8
Non-current assets
Debtors
10
Current assets
Debtors
9
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after one year
12
Total net assets
The funds of the charity:
Unrestricted funds
Total charitable funds
27,700		 22,300

806		 825

31
2,085		 623
1,340
2,116

(869)		 1,963
(919)
1,247 1,044
29,753

(22,253)		 24,169
(22,823)
7,500 1,346
7,500 1,346
7,500 1,346

Approved by the Trustees and signed on their behalf by:

Jean-Pierre Mustier

Approved on: 26 August 2021

KT Educational Charitable Trust Company Registration Number 07057043 (England and Wales)

KT Educational Charitable Trust 13

Statement of cash flows 31 December 2020

Notes
2020
£’000		 2019
£’000
Cash inflow from operating activities:
Net cash provided by operating activities
A
Cash inflow (outflow) from financing activities:
Cash inflows from new borrowing
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
B
Cash and cash equivalents at 31 December 2020
B
1,225		 481
—
(480)		 —
(464)
(480) (464)
745

1,340		 17
1,323

2,085		 1,340

Notes to the cash flow statement for the year to 31 December 2020.

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

2020
£’000		 2019
£’000
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Gain on revaluation of programme related investments
Decrease in debtors
Increase (decrease) in creditors
Net cashprovided by operating activities		 6,154
(5,400)
611
(140)		 605
—
18
(142)
1,225 481

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2020 2019
£’000 £’000
Cash at bank and in hand 2,085 1,340
Total cash and cash equivalents 2,085 1,340

C Analysis of changes in net debt

Analysis of changes in net debt
At 1 January
2020
£’000
Cash flows
£’000		 New loans
£’000		 Other non-
cash
changes
£’000		 At 31
December
2020
£’000
2,085
(495)
(22,253)
(20,663)
Cash
oans falling due within one year
oans falling due after more than one
ear
otal		 1,340 745 — —
(480)

(22,823)		 (15)
570		 —
—		 —
—
(21,963) 1,300 — —

KT Educational Charitable Trust 14

Principal accounting policies 31 December 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2020 with comparative information for the year ended 31 December 2019.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest thousand pounds.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include the valuation of programme related investment properties.

Estimates used in the accounts, particularly with respect to the value of programme related investment properties are subject to a greater degree of uncertainty and volatility.

As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

KT Educational Charitable Trust 15

Principal accounting policies 31 December 2020

Assessment of going concern (continued)

The full impact on the charity’s income and expenditure and financial position following the emergence of the global Covid-19 pandemic is still unknown. The Covid19 pandemic has changed the shape and nature of the world. It has impacted not only the basic nature of social interactions but has also had a significant economic impact at every level in ways which have been outside of our control. The impact of Covid19 on our finances is set out in the trustees’ report on pages 3 and 4.

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity’s financial position or going concern. The trustees of the charity have concluded that the charity will have sufficient reserves to meet liabilities as they fall due.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, rental income and charges for management services.

Corporate donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Rental income on assets leased under operating leases is recognised on a straight line basis over the lease term. Fees for management services are recognised on an accruals basis.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

KT Educational Charitable Trust 16

Principal accounting policies 31 December 2020

Expenditure recognition (continued)

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are apportioned based on the proportion of time spent on the activity.

Programme related investments

Programme related investments comprise freehold property used by another charitable organisation for purposes consistent with the charity’s objectives. They are stated at fair value. At 31 December 2020 the property was independently valued by a professional chartered surveyor on a fair value basis which takes into consideration rental charge and the current use of the premises as a school. The value is considered each year and any impairment is written off and treated as charitable expenditure in the statement of financial activities.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

KT Educational Charitable Trust 17

Principal accounting policies 31 December 2020

Creditors and provisions (continued)

Bank loans are a basic financial instrument and are recognised at their transaction value, which is normally the principal amount advanced plus transaction costs. Subsequent to initial recognition, loans are stated at amortised cost with any difference between cost and redemption value being recognised through the statement of financial activities using the effective interest method.

Funds structure

The funds of the charity are unrestricted and can be expended at the discretion of the trustees in line with the governing document of the charity.

KT Educational Charitable Trust 18

Notes to the financial statements 31 December 2020

1
2		 Donations
2020
Total
funds
£’000		 2019
Total
funds
£’000
Donations 79 27
Income from charitable activities
2020
Total
funds
£’000		 2019
Total
funds
£’000
Rental income 1,717 1,666

3 Expenditure on charitable activities

Expenditure on charitable activities
Direct
costs
£’000		 Support
costs
£’000		 2020
Total
funds
£’000
Provision of premises and facilities
. Charitable donations
. Accountancy services
. Interest payable
. Governance costs (note 4)
. Repairs and maintenance
2020 Total funds		 340
—
—
—
—		 —
6
700
85
—		 340
6
700
85
—
340 794 1,131
Direct
costs
£’000		 Support
costs
£’000		 2019
Total
funds
£’000
Provision of premises and facilities
. Charitable donations
. Accountancy services
. Interest payable
. Governance costs (note 4)
. Repairs and maintenance
2019 Total funds		 330
—
715
—
—		 —
9
—
33
1		 330
9
715
33
1
1,045 43 1,088

KT Educational Charitable Trust 19

Notes to the financial statements 31 December 2020

4 Governance costs

Governance costs

2020
Total
funds
£’000		 2019
Total
funds
£’000
Legal and professional fees
Administrative fees		 —
85		 6
27
85 33

5 Staff costs, remuneration of key management and trustees’ expenses and remuneration

The charity employed no staff during the year (2019 - none).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity comprises the trustees. None of the Trustees received any remuneration for their services during the year (2019 - none). No trustees (2019 - none) were reimbursed for expenses incurred relating to travel and accommodation in the performance of their duties (2019 - £nil).

6 Net income and net movement in funds

This is stated after charging

2020
Total
funds
£’000		 2019
Total
funds
£’000
Auditor’s remuneration
. Audit fee – currentyear		 7 6

7 Taxation

KT Educational Charitable Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

The charity is not registered for Value Added Tax and therefore expenditure is recorded inclusive of VAT where applicable.

KT Educational Charitable Trust 20

Notes to the financial statements 31 December 2020

8 Investments

Investments
Programme
related
investment
property
2020
£’000		 Programme
related
investment
property
2019
£’000
At 1 January
Revaluation
At 31 December		 22,300
5,400		 22,300
—
27,700 22,300

The property at 87 Holmes Road, Kentish Town, NW5 3AX is let to Collège Français Bilingue de Londres Limited, a registered charity, for purposes consistent with the charity’s objectives; running a bilingual (French and English) School in the London Borough of Camden, therefore the property is classified as a programme related investment.

On 31 December 2020 the property was independently valued by a professional chartered surveyor (Gerald Eve LLP) on a fair value basis which takes into consideration rental charge. The chartered surveyor is a member of the Royal Institution of Chartered Surveyors. The valuation was prepared in accordance with the requirements of Royal Institution of Chartered Surveyors (RICS) Professional Standards, January 2020 amendment and Financial Reporting Standard 102. There is a fixed charge over this property (see note 11).

9 Debtors; amounts falling due within one year

2020
£’000		 2019
£’000
Loan – Wembley Educational Charitable Trust (note 13)
Other debtors		 —
31		 600
23
31 623

10 Debtors; amounts falling due after one year

2020
£’000		 2019
£’000
Other debtors 806 825
806 825

11 Creditors: amounts falling due within one year

2020
£’000		 2019
£’000
Trade creditors and accruals
Deferred income
Bank loans
Other creditors		 7
292
495
75		 6
283
480
150
869 919

KT Educational Charitable Trust 21

Notes to the financial statements 31 December 2020

11 Creditors: amounts falling due within one year (continued)

Income has been deferred because KT Educational Charitable Trust received rent from Collège Français Bilingue De Londres in December 2020 for the period covering 1 January 2020 to 28 February 2020, therefore this income will appear in next year’s accounts ending 31 December 2021. The movements in deferred income are analysed below:

2020
£’000		 2019
£’000
Brought forward
Released in year
Deferred in year		 283
(283)
292		 275
(275)
283
292 283

12 Creditors: amounts falling due after one year

2020
£’000		 2019
£’000
Bank loans
Loan from French Embassy Trust
Other creditors		 20,403
1,850
—		 20,898
1,850
75
22,253 22,823

13 Loans

Loans repayable, included within creditors are analysed as follows:

2020
£’000		 2019
£’000
Wholly repayable: within five years
Not wholly repayable: within five years		 2,791
18,107		 2,564
18,814
20,898 21,378

At 31 December 2020 bank loans totalling £20,898,000 (2019 – £21,378,000) were secured by fixed charges over the charity’s freehold property at Holmes Road, London.

At 31 December 2020, the balance of £20,898,000 (2019 – £21,378,000) comprised two loans from Banque Transatlantique. The loans are for a period of thirty years from September 2017. Interest is charged at a fixed rate of 3.3%.

A loan of £800,000 (2019 – £800,000) was granted to the charity by the French Embassy Trust on an interest free, unsecured basis, repayable when the charity is in a position to do so without detriment to its banking and other funding arrangements. The loan is guaranteed by the French Embassy.

A loan of £1,050,000 (2019 – £1,050,000) was granted to the charity by the French Embassy Trust for the purpose of funding a deposit payable to ANEFE.

KT Educational Charitable Trust 22

Notes to the financial statements 31 December 2020

14 Related party transactions

Wembley Educational Charitable Trust

Wembley Educational Charitable Trust (Company Registration Number 08681480 England and Wales) was incorporated on 9 September 2013. Three Trustees of KT Educational Charitable Trust are also directors of Wembley Educational Charitable Trust. During 2014, KT Educational Charitable Trust provided an interest free, repayable on demand loan of £600,000 to Wembley Educational Charitable Trust. The amount was transferred to a savings account at Banque Transatlantique in the name of Wembley Educational Charitable Trust. At 31 December 2020, the full loan had been repaid. In addition, during the year, administrative fees of £78,532 (2019 – £26,919) incurred by the charity were paid by Wembley Educational Charitable Trust on behalf of KT Educational Charitable Trust. This has been treated as a donation in the year.

Ealing Educational Charitable Trust

Ealing Educational Charitable Trust (Company Registration Number 08845363 England and Wales) was incorporated on 14 January 2014. Three Trustees of KT Educational Charitable Trust were also directors of Ealing Educational Charitable Trust. On 11 February 2014, the charity transferred ownership of the investment property leased to the school André Malraux to Ealing Educational Charitable Trust. During 2019 Ealing Educational Charitable Trust transferred its assets and liabilities to Wembley Educational Charitable Trust and was dissolved on 22 October 2019.

French Education Charitable Trust

French Education Charitable Trust (Company Registration Number 08679804 England and Wales) was incorporated on 6 September 2013, and was the parent entity of KTECT. During 2019 French Education Chartiable Trust transferred its assets and liabilities to Wembley Educational Trust and was dissolved on 1 October 2019.

15 Net assets

The total unrealised gains as at 31 December 2020 constitute movements on revaluation and are as follows:

2020
£’000		 2019
£’000
Unrealised gains/(losses):
On investment properties
Total unrealised gains/(losses) at 31 December 2020
Reconciliation of movement in unrealised gains/(losses)
Unrealised losses at 1 January 2020
Less: in respect to disposals in the year
Add: net gains arising on revaluation in the year
Total unrealisedgains/(losses) at 31 December 2020		 2,920 (2,480)
2,920 (2,480)
(2,480)
—		 (2,480)
—
(2,480)
5,400		 (2,480)
—
2,920 (2,480)

KT Educational Charitable Trust 23