KT Educational Charitable Trust Annual Report and Financial Statements 31 December 2022 Company regi8tralion number 07057043 (England and Wak$l Charity Registration number 1135017
Contents Reports Reference and adminislralive detsils of the charity, ils Trustees and advisers Trustees, report Independent auditor's report Financial statements Statement of financial activities 11 Balan sheet 12 Statement of cash flows 13 Principal accounting policies 14 Notes to the financial statements 17 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 Buzzacotl LLP 130 Wood Street London EC2V 6DL Bankers HSBC HSBC Holdings PLC HBEU West London Corporate 2nd Floor, spa One 1 Beadon Road Hammersmith London W6 OEA Banque Transatlantique 26 Avenue Franklin Roosevelt Paris Solicitors Adam Perry & Co LLP 10 SpaTrs Business Centre 15-17 Ingate Place London SW8 3NS KT Educational Charitable Trust 1
Trustees, report Year lo 31 December 2022 The Trustees present their report with the financial statements of the charity for the year ended 31 Dember 2022. 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 sel out on pages 14 10 16 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 1021. Introduction The charity was incorporated as a company limited by guarantee on 26 October 2009 as French Education Property Trust I'FEPT l and obtained charitable status on 18 March 2010. On 18 September 2013 the charity changed ils name lo l([ Educational Charitable Trust I'KTECT'I. In the event of the winding up of the company each member guarantees a sum not exceeding £10. Objectlves The objectives for which the charity is established are to advanTr, 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 thg yoar KT Educational Charitable Trust sel up the Collège FranGais Bilingue De Londres ICFBLI school which opened in 2011. CFBL has a board of governors who meet regularly lo make key decisions for the school. The school ran at almost full capacity during 2022 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. Within the current downgraded economic situation CFBL'S financial situation remains a little fragile due to inflation in most of ils expenses. A eost savings plan has been put in place by the board of governors lo reconstitute these reserves and is currently in progress. KT Educational Charitable Trust 2
Trustees, report Year lo 31 December 2022 FINANCIAL REVIEW During the year the Charity received donations of £107,00012021 - £86,000), rental income of £1,800,00012021 £1,767,000} and interest of £3,37512021 £11,000). Costs relatsng to charitable actives in the year amounted to £1,946,00012021- £1,334,000). Net income for the year was £64,00012021- £530,000). The propety held as a programme related investment was valued al £27,091,000. The total funds as at 31 December 2022 were £8,094,00012021- £8,030,0001. Reserves policy The Iruslees regularly monitor the cash position of the charity lo ensure that there are sufficient funds for capital projects and the running of the charity, including servieing the bank finance. Financial position The charity had lolal funds al 31 December 2022 of £8,094,00012021- £8,030,000). On the programme related investments and long term loan are excluded, this leaves free resetves of £894,000 12021 £733,000). 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 likely to open a new class within ils own premises which will generate extra revenues. GOVERNANCE, STRUCTURE AND MANAGEMENT Organisation The trustees meet officially in person On or lce a year and more frequently when required. They also hold conference calls when required and there are at least monthly email exchanges rardIng budgets. Any new trustees are inducted regarding their responsibilities and the activities of the KTECT through detailed briefings. It is understood that current Iruslees have a long-term commitment and therefore there are no changes lo the trustees currently envisaged. All trLJStees have agreed to adhere to the charity's conflicts of interests, policy and have signed a statement lo this effect. Trustees The following trustees were in office at 31 December 2022 and served throughout the year". Trustees Mr Richard Fairbairn Mr Jean-Pierre Musti8r Mr Amaud Vaissié KT Educational Charitable Trust 3
Trustees, report Year lo 31 December 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT Iconlinuedl Trustees Icontinuedl Trustees, field of expertise is complimentary and they have been involved since inception of the Trust. Any new appointments will need the full board approval. 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 Iruslees receive any remuneration for their services. Trustees. responsibilities statement The Iruslees (who are also directors of KT Educational Charitsble Tnjst for the purposes of company lawl are responsible for preparing the trustees, report and financial statements in accordan with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare fi'nancial statements for each financial year which give a true and fair view of the stale of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial slatemenls, the trustees are required to. select suitable accounting policies and then apply them consistently., observe the methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable to the United Kingdom and Republie of Ireland IFRS 1021., make judgements and estimates that are reasonable and prudent., state whether applicable United Kingdom Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going Concern basis unless it is inappropriate to presume that the charity will continue in operation. The Iruslees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hen for tsking reasonable steps for the prevention and detection of fraud and other irregularities. KT Educational Charitable Trust 4
Trustees, report Year lo 31 December 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT Iconlinuedl Trustees, responsibilities statement Iconlinuedl Each of the Iruslees confirms Ihal.. so far as the trustee is aware, there is no relevant audit information of which the charity's auditor is unaware., and • the Iruslee has taken all the steps that he ought to have taken as a trustee in order to make himself aware of any relevant audit information and lo establish that the charity's auditor is aware of that information. This confim)alion 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 affe¢led by Brexit and other economic factors and could ultimately have the FX)lential to affect the ability of ils tenant school lo pay their rent in accordan with the lease agreement. The admissions numbers are monitored and the school itself is implementing its own communications strategies lo ensure the school operates at as close to fLJII capacity as possible. Raising funds The charity does not actively fundraise although il welcomes donations.The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It lakes 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 ils own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes lo react to and investigate any complaints regarding ils fundraising activites and lo learn from them and improve its service. During the year, the charity received no complaints about its fundraising acilNilies. The above report has been prepared in accordance with the special provisions as sel out in Financial Reporting Stsndard FRS102 and Part 15 of the Companies Act 2006 relating to small companies. Approved by the Board of Trustees". JP Muslier Trustee Approved on 12 July 2023 KT Educational Charitable Trust 5
Independent auditor's report Year ended 31 December 2022 Independent auditor's report to the members of KT Educational Charitable Trust Opinion We have audited the financial statements of Educational Charitable Trust (the 'charitsble company'l for the year ended 31 December 2022 which comprise the statement of financial aclivilies, the balance sheet, the statement of cash flows, the principal accounting policies and the notes lo the fi'nancial 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 Praclicel. In our opinion, the financial stalemenls.. give a true and fair view of the slate of the charitable company s affairs as at 31 DeTrmber 2022 and of Ils Income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 quirementS 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 concorn 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 lo continue as a going concern for a period of al least e1ve months from when the financial statements are authorised for issue. Our responsibilib'es and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. KT Educational Charitable Trust 6
Independent auditor's report Year ended 31 December 2022 Other infomiation The Iruslees are responsible for the other information. The other information comprises the information included in the annual report and financial stalemenls, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, expt to the exlenl otherwise explicitly slated in our reF)Ort, 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 inconsislenl 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 misstslements, 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 misstalemenl of this other infomialion, we are required lo report that fact. We have nothing to report in this regard. Opinions on other matters prescribod by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the informats'on given in the Iruslees, report, which is also the directors, report for the purposes of company law, ft)r the financial year for which the financial statements are prepared is consistent with the financial slatemenls,. and the trustees, report, which is also the directors, reF)Ort for the purposes of company law, has been prepared in accordan with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understsnding 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.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions from the requirement to prepare a strategic report. KT Educational Charitable Trust 7
Independent auditor's report Year ended 31 December 2022 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are aLso the dital5 of the charitaEAe (x)rrpany the purwses of uxnpany lawl are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is neSSary to enable the preparation of financial statements that are free from material misstalemenl, 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 lo liquidate the charitable company or to cease operations, or have no realistic alternative but lo 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, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 lo influence the economic decisions of users taken on the basis of these financialslatements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo 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 consiTdered 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.. • The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., • We identified the laws and regulations applicable lo the charity through discussions with management and from our knowledge and experience of the charity sector,. • We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These Included bul were not limited lo the Charities Act 2011,. Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable lo the United Kingdom and Republic of Ireland IFRS 1021 leffeclive 1 January 20191.. and The Companies Act 2006, and KT Educational Charitable Trust
Independent auditor's report Year ended 31 December 2022 Auditor's responsibilities for the audit of the accounts Icontinuedl How the audit was considered capable of detecting irregularities including fraud (continued) + We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and those charged with governance and review of minutes of trustees, meetings. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. Making enquiries of management and trustees as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and • Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. * Performed analytical prOdureS to identify any unusual or unexpected relationships., * Tested and reviewed journal entries to identify unusual transactions., • Tested the aulhorisalion of expenditure., • Assessed whether judgements and assumptions made in determining the accounting eslimales were indicative of FX)lential bias., and Investigated the rationale behind significant or unusual transactions. In response lo the risk of Irregularities and non-compliance with laws and regulations, we designed procedures which included, bul were not limited to.. • Agreeing financial ststemenl disclosures to undedying supporting documentation", + Reading the minutes of meetings of trustees., and + Enquiring of as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial Iransaclions, the less likely il 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 misstalemenls that arise due to fraud can be harder to delect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al www.trc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. KT Educational Charitable Trust 9
Independent auditor's report Year ended 31 December 2022 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 stale lo the charitable company's members those mallers we are required to slate lo them in an auditor's report and for no other purpose. To the fullest exlenl 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. Catherine Biscoe (Senior Statutory Audilorl For and on behalf of Buzzacott LLP, Slatulory Auditor 130 Wood Street London EC2V 6DL Date. 19 July 2023 KT Educational Charitable Trust 10
Statement of financial activities Year ended 31 December 2022 2022 Total funds £'ooo 2021 Total funds £'ooo Notes Income and expendlture Income from= Donations Charitable activth.es Provision of premises and facilities Interest receivable Total income 107 86 1,800 1.767 1,910 1,8e4 Expendlture Expenditure on charitable activities Provision of premises and facilities Total expenditu 1,846 1,846 1,334 1.334 Net income 530 Nèt ineomè and nèt mov•mènt in funds 530 Reconciliation of funds: Totsl funds brought forward at 1 January 2022 8.030 7,500 Totsl funds carried forward at 31 December 2022 8,094 8.030 All of the charity's activities derived from continuing operations during the above financial periods. All recognised gains and losses are included in the above ststement of financial aclivib'es. All funds of the charity are unreslrieted. The notes on pages 17 10 20 form part of these financial statements. KT Educational Charitable Trust 11
Balance sheet 31 December 2022 2022 £'ooo 2021 £'ooo Notes Fixed assets Programme lated investments 27,091 27,700 Non-currènt assèts Debtors 10 765 786 Current assets Debtors Cash at bank and in hand 26 2,260 2,286 2.161 2,204 Liabilities.. Creditor5". arnounts falling du8 within one year 18371 19191 Net current assets 1,449 1.285 Total assets less current liabilities 29,305 29.771 reditOTS- amounts falling due after one year 12 121,2111 121.7411 Totsl net assets 8,094 8.030 Thè funds of thè eharity.. Unrestricted funds Total charitable funds 8,094 8,094 8.030 8,030 Approved by the Trustees and signed on their behalf by". JP Muslier Approved on 12 July 2023 KT Educational Charitable Trust Company Registration Number 07057043 (England and Wales) KT Educational Charitable Trust 12
Statement of cash flows 31 December 2022 2022 £'ooo 2021 £'ooo Note5 Cash Inflow from operatlng aetlvltles: Net cash provided by operating activities 612 571 Cash outnow from financing activities: Repayments of borrowing Net cash used in financing activities 15131 15131 14951 14951 Chan98 in cash and cash èquival8nts in the y8ar 99 76 Cash and cash equlvalents at 1 January 2022 2,161 2,085 Cash and cash aquival$nts at 31 Decambar 2022 2.260 2,161 Notes to the cash flow statement for the yearto 31 December 2022. A Reconciliation of net movement in funds to net eash flow from operating activities 2022 2021 £'ooo £'ooo Net movement in funds las per the statement of financial activities) Adjustments for= Impainnent of programme related investments Decrease in debtors (Decieasel increase in Creditors Nat cash providad by opèrating aetivitiès 530 609 38 1991 612 33 571 B Analysis of cash and cash equivalents 2022 £'ooo 2021 £'ooo Cash 81 bank and in hand Total cash and cash equivalents 2.260 2.260 2.161 2,161 C Analysis of changes in net debt At31 December 2022 £'ooo At 1 January 2022 Cash flows £'ooo £'ooo Cash 2.161 99 2,260 Loans falling due within one year Loans falling due after more than one year Total 1529 121.2111 119,4801 121,7411 120.0921 530 612 KT Educational Charitable Trust 13
Principal accounting policies 31 December 2022 The principal accounting policies adopted, judgements and key sources of estimation UnrtaInty in the preparation of the financial statements are laid out below. Basis of preparation These financial statements have been prepared for the year lo 31 December 2022 with comparative information for the year ended 31 December 2021. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise staled in the relevant accounting policies below or the notes to these financial statements. The financial ststemenls 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 Icharities SORP FRS 1021 issued on 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The charity conslitules a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded lo the nearest thousand pounds. Critical accounting estimates and areas of judgement Preparation of the financial statements requires the Iruslees and management lo 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 lo a greater degree of uncertainly and volatility. Assessment of going concern The trustees have assessed whether the use of the going concem assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect lo a period of one year from the date of approval of these accounts. The Iruslees of the charity have concluded that the charity will have sufficient reserves lo meet liabilities as they fall due. Income recognltlon Income Is recognised in the period in which the charity has entillemenl to the income, the amount of income can be measured reliably and il is probable that the income will be received. Income comprises donations, rental income and charges for management services. KT Educational Charitable Trust 14
Principal accounting policies 31 December 2022 Income recognition Iconlinuedl Corporate donations are recognised when the charity has confi'rmation 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 fulfilmenl 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 commilling the charity lo make a payment to a third party, il 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." + Expenditure on raising funds includes all expenditure associated with raising funds for the charity. * Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of thè charity through the provision of its charitable activities. Such costs include direct and support costs in respect lo the provision of premises and facilities for schools offering a French or broader bilingual curriculum in the Kentish Town area, including governance costs. 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 il is necessary lo provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitsble working environment. Governance costs comprise the c051s involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good pmctice. Support costs and governance costs are apportioned based on the proportion of time spent on the activity. KT Educational Charitable Trust 15
Principal accounting policies 31 December 2022 Programme related investments Programme related investments comprise freehold property used by another charitable organisalion for purposes consistent with the charity's objectives. They are staled al fair value. The property is periodically independently valued by a professional chartered surveyor on a fair value basis which lakes 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 al their settlement amount, less any provision for non- recoverability. Prepayments are valued al 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. Credltors and provlslons Creditors and provisions are recognised when there is an obligation at the balance sheet ate as a result of a past event, it Is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay lo settle the debt. They have been discounted lo the present value of the future cash payment where such discounting is material. Bank loans are a basic financial instrument and are recognised al their Iransacts'on value, which is normally the principal amount advanced plus transaction costs. Subsequent to initial recognition, loans are slated at amortised cost with any differen beleen 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 al the discretion of the trustees in line with the governing document of the charity. KT Educational Charitable Trust 16
Notes to the financial statements 31 December 2022 1 Donations 2022 Total funds £'ooo 2021 Total funds £'ooo Donations 107 86 2 Income from charitablo activities 2022 Totsl funds £'ooo 2021 Total funds £'ooo Rental income 1,800 1,767 3 Expendlture on eharltable actlvltles 2022 Total funds £'ooo Direct costs £'ooo Support costs £'ooo Provision of premises and facilities Charitable donations . Accountancy seNices Interest payable Impairment of programme related investment property . Governan costs (note 41 2022 Total funds 448 448 667 667 609 116 1,846 609 107 780 1,066 2021 Total funds £'ooo Direct costs £'ooo Support costs £'ooo Pmvision ofpremises and facilities Charitsble donations . Accountancy SeGe8 Interest payable Govemance Gosts (note 4) 2027 Total ruff$ 547 547 684 86 776 684 97 1,334 558 4 Governance costs 2022 Totsl funds £'ooo 2021 Total funds £'ooo Legal and profession81 fees Administrative fees 107 116 86 97 KT Educational Charitable Trust 17
Notes to the financial statements 31 December 2022 S Staff costs. remuneration of key management and trustees, expenses and remuneration The charity employed no staff during the year12021 none). The key management personnel of the charity in charge of directing and controlling, running and operating the charity comprises the Iruslees. None of the Trustees received any remuneration for their services during the year 12021 none). No Iruslees 12021 none) were reimbursed for expenses incurred relating to travel and accommodation in the performance of their dulies12021 £nill. 6 Net income and net movernent in funds This is slated after charging 2022 Total funds £'ooo 2021 Total funds £'oc Auditorfs remuneration Audit lee- current year 7 Taxation KT Educational Charitable Trust is a registered charity and therefore is not liable to income tax or corporation lax on income derived from Ils charitable activities, as il falls within the various exemptions available lo registered charities. The charity is not registered for Value Added Tax and therefore expenditure is recorded inclusive of VAT where applieable. 8 Investments Programme related investment property 2022 £'ooo Programme related investrnent property 2021 £'ooo Al 1 January Impairment At 31 December 27,700 16091 27,091 27.700 27.7C The property at 87 Holmes Road, Kentish Town, NW5 3AX is let to Collège FranGais Bilingue de Londres Limited, a registered charity, for purposes consislenl with the charity's objectives", running a bilingual (French and English) School in the London Borough of Camden, therefore the propety is classified as a programme related Investment. On 31 December 2021 the propety was valued by Gerald Eve LLP. The valLJation was prepared in accordance with the requirements of the Royal Institution of Chartered Surveyors IRICSI Valuation Global Standards 2022 and the national standards and guidance set out in the UK national supplement INovember 20181, the International Valuation Standards and Financial Reporting Standard 102. On 31 December 2022 the property was valued by the trustees, using information provided by Gerald Eve LLP. KT Educational Charitable Trust 18
Notes to the financial statements 31 December 2022 9 Debtors. amounts falling due within one year 2022 £'ooo 2021 £'ooo Other debtors 26 43 43 26 10 Debtors. amounts falllng due after one year 2022 £'ooo 2021 £'ooo Other debtors 765 765 The other debtors due after one year are a deposit held with ANEFE (Association Nationale des Ecoles de I'Etrangerl in respect of bank financing (note 131. 11 Credltors: amounts falllng due wlthln one year 2022 £'ooo 2021 £'ooo Trade creditors and accruals Deferred income Bank loans (note 131 Other creditors 300 529 300 512 100 919 837 Income has been deferred because KT Educational Charitable Trust received rent from Collège FranGais Bilingue De Londres in December 2022 ft)r the period covering 1 January 2023 10 28 February 2023, therefore this income will appear in next year's accounts ending 31 December 2023. The movements in deferred income are analysed below.. 2022 £'ooo 2021 t'ooo Brought forward Released in year Deferred in year 300 13001 300 300 292 12921 300 300 12 Creditors: amounts falling due after one year 2022 £'ooo 2021 £'ooo Bank loans Inole 131 Loan from French Embassy Trust 19.361 1,850 21,211 19.891 1,850 21,741 KT Educational Charitable Trust 19
Notes to the financial statements 31 December 2022 13 Loans Loans repayable, included within creditors are analysed as follows.. 2022 £'ooo 2021 £'ooo holly repayable.. within five years Not wholly iepayable". within five years 2,983 18,757 21,740 2,887 19,366 22,253 Al 31 Dember 2022 bank loans lotalling £21,211,000 12021 £21,741,000) were secured by fixed charges over the charity's freehold property al Holmes Road, London. Al 31 December 2022, the balance of £21,211,000 12021 £21,741,000) comprised two loans from Banque Transatlantique. The loans are for a period of Ihity years from September 2017. Interest is Charged at a fixed rate of 3.30A. A loan of £800,000 12021 - £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 wilhoul detriment lo ils banking and other funding arrangements. The loan is guaranteed by the French Embassy. A loan of £1,050,000 12021 £1,050,000) was granted to the charity by the French Embassy Trust for the purpose of funding a deposit payable to ANEFE. 14 Related party transactions Wembley Educational ChariTtable Trust Wembley Educational Charitable Trust (Company Registration Number 08681480 England and Wales) was incorporated on g September 2013. Three Trustees of KT Educational Charitable Trust are also directors of Wembley Educational Charitable Trust. During the year, administrative fees of £107,072 12021 £86,142) 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. During the year KT Educational Charitable Trust paid donations of £448,000 12021.. £447,000) to Wembley Educational Charitable Trust. 15 Net assets The total unrealised gains as al 31 December 2022 constitute movements on revaluation and are as follows". 2022 £'ooo 2021 £'O(K) Unreallsed galns: on investment properties Totsl unrealised gain$ at 31 Decemb8r 2022 2,311 2,311 2.920 2,920 Reconciliation of movement in unrealised gains Unrealised losses at 1 January 2022 Less.. in respect to disposals In the year 2,920 2,920 2,920 16091 2,920 Impainnenl Total unrealised gains at 31 December 2022 2,311 2,920 KT Educational Charitable Trust 20