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2021-12-31-accounts

Company number: 07390138 Charity number: 1138894

Baker Dearing Educational Trust

Report and financial statements For the year ended 31 December 2021

Baker Dearing Educational Trust

Contents

For the year ended 31 December 2021

Reference and administrative details .............................................................................................. 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ......................................................................................................... 9 Statement of financial activities (incorporating an income and expenditure account) ................... 13 Balance sheet ............................................................................................................................... 14 Statement of cash flows ............................................................................................................... 15 Notes to the financial statements ................................................................................................. 16

Baker Dearing Educational Trust

Reference and administrative details

For the year ended 31 December 2021

Company number 07390138 – incorporated in the United Kingdom Charity number 1138894 – registered in England and Wales Registered office 2nd Floor, 1, The Sanctuary and operational London address SW1P 3JT Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: The Rt Hon Lord Baker of Dorking CH, Chairman The Rt Hon Lord Adonis Clive Barker Ms Madeleine Hallward Will Harding (appointed 22 April 2021) David Land Dr Theresa Simpkin (resigned 23 April 2021) Sir Mike Tomlinson CBE Jim Wade Michael Wright Chief Executive Simon Connell Bankers HSBC 16 King Street London WC2E 8JF Solicitors Stone King LLP 91 Charterhouse Street London EC1M 6HR Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL

1

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

The trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

The organisation is a charitable company limited by guarantee, incorporated on 28 September 2010 and registered as a Charity on 9 November 2010.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

The objects of the Charity are to advance the education of children, young people and young adults by technically-oriented study at new or existing colleges with an emphasis on practical training, business and commerce leading to employment.

Appointment of trustees

Trustees are selected by reference to their eligibility, personal competence and specialist skills. A Nominations Committee, chaired by Lord Baker, meets twice a year to discuss and recommend the appointment of trustees.

Trustee induction and training

On appointment trustees are inducted into the strategic aims of the Charity and the underlying financial implications. Throughout the year trustees are updated with progress reports and are invited to attend educational seminars and events to increase their awareness of the Charity's activities and the educational sector governance requirements.

The members of the company appoint new trustees. There must be a minimum of three trustees and a maximum of twelve.

All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in note 7 to the accounts.

Related parties and connected organisations

See note 9 for details of related parties and connected organisations.

2

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

Remuneration Policy for key management personnel

Remuneration is reviewed, and agreed, once each year by the trustees at a trustees’ meeting. The review takes into account the performance of individuals and the change in cost of living as measured by the RPI.

Objectives and activities

Baker Dearing Educational Trust (Baker Dearing) licenses UTCs (University Technical Colleges). The Charity offers guidance and support to UTCs to help them ensure high standards of education and financial viability and liaises between sponsors, the UTCs themselves and the DfE (Department for Education).

The trustees review the aims, objectives and activities of the Charity each year. This report looks at what the Charity has achieved and the outcomes of its work. The trustees report the success of each key activity and the benefits the Charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the Charity's aims, objectives and activities remain focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Vision of the Charity

Baker Dearing promotes and supports University Technical Colleges (UTCs).

UTCs are a relatively new concept in education, introduced in England in 2010. They offer students the opportunity to take a highly regarded, technically-oriented full-time course of study at a specialist school equipped to the highest standards. The UTCs are publicly-funded academies which are sponsored by a university in partnership with employers offering clear progression routes into higher education or further training and employment.

Students usually start at the age of 14, integrating academic requirements with the technical and practical elements of the curriculum in an adult environment, which is strongly influenced by profound engagement with local employers. Under the same roof they study technical subjects alongside the GCSE subjects of English, mathematics, science and IT. They also take part in sport and acquire employability, entrepreneurial and financial skills. Each UTC has particular technical specialisms.

UTCs typically have a capacity of between 500 and 800 students, a deliberately small size to foster loyalty and so that each student is known individually. The size also ensures that numbers in nearby schools are not unduly disturbed.

3

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

UTCs are demand-led, but have support from all three main political parties. The government has been committed to establishing UTCs and so far 48 are open. The DfE provides the capital cost of a UTC and the ongoing running costs.

The UTC brand and trademarks belong to the Charity which grants a licence to each UTC. The Charity retains close links with UTCs once they are open, to help ensure high standards of education, compliance with the licence and financial viability. It is in the interests of the whole UTC programme that the Charity’s brand values are preserved.

The Charity’s strategies and objectives

In order to achieve the above vision Baker Dearing Educational Trust’s objectives are:

With an original focus on opening new UTCs, the Charity’s support has evolved over time to meet needs of UTCs, aiming to provide services that cannot be provided by others within the education system. Today, the Charity exists to:

(1) Foster a favourable policy and funding environment for UTCs (Policy): Charity staff meet regularly with senior personnel at the Department for Education (“DfE”) and Education and Skills Funding Agency (“ESFA”) to communicate the views of UTCs and to discuss UTC challenges at a programme-wide level, with the aim of influencing policy decisions. The charity also meets with other key government stakeholders including Ofsted, HM Treasury, and Members of Parliament.

(2) Raise greater awareness of UTCs (Promotion) : Collectively on behalf of all UTCs, the Charity is uniquely positioned to co-ordinate publicity, with the aim of undertaking national awareness campaigns to complement local UTC marketing efforts. The Charity engages with trade and national press organisations, research companies, national employers, and others to communicate the value of a UTC education and to celebrate the many student success stories around the programme.

(3) Ensure UTC distinctiveness is preserved and standards are upheld (Standards): Embedding specialist colleges within the mainstream education system takes time and requires courage: there is significant pressure on UTCs to revert to ‘normal’ schools. The Charity provides ‘light touch’ support to protect the nature and standards of the unique UTC education provision, as defined by the requirements of the UTC licence.

(4) Facilitate connectivity and exchange amongst UTCs (Connectivity): As a relatively new national network of colleges, it is vital that UTCs share and implement best practice in the areas of technical education, student recruitment, employer engagement, and finance. The Charity provides

4

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

a rich programme of events for UTC staff; regular communication across all UTCs; data and analysis regarding programme developments; and the brokerage of UTC-to-UTC support, where needed.

(5) Provide UTCs with access to advisory support (Advisory): The Charity retains the services of a small number of highly experienced consultants and commissions support from UTC staff members, to offer individual UTCs advice and assistance in the areas of technical education, student recruitment, employer engagement, finance, re-brokerage, and DfE/ESFA negotiations. Positioned centrally within the UTC network, Charity staff have a holistic view of the entire UTC programme and provide advice to individual UTCs in this context.

(6) Procure services and offer benefits for UTCs on a collective basis (Benefits): The Charity is able to achieve group discounts for third-party services through negotiation and procurement on behalf of all UTCs, such as SSAT and GL Assessment. In addition, Baker Dearing directly funds various highly valued UTC initiatives such as the Redbourne data analysis, UTC Hub for student destinations, and the Baker Award for Technical Education.

Performance against objectives

By the end of 2021, 48 UTCs were open and applications to open further UTCs will be presented to the Secretary of State for approval.

Beneficiaries of our services

The Charity's main activities and who it tries to help are described below. All its charitable activities focus on the development and support of UTCs and are undertaken to further Baker Dearing Educational Trust's charitable purposes for the public benefit.

Beneficiaries of the services are the UTCs and their students.

Financial review

The trustees have determined that the Charity should be financially independent of Government. The Trust's income for the period included donations and licence subscriptions from UTCs. This has been used to support the Trust's promotional activities for the development and success of the University Technical College programme.

The donations include funds from Peter Cundill Foundation (£90,250), Michael Bishop Foundation (£75,000) and Garfield Weston Foundation (£125,000).

The Covid pandemic has clearly affected the UTCs in a similar way to all other schools. The Charity has worked with them to advise and has been instrumental in setting up online classes and online communications to assist.

5

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

The Charity, as with other organisations, has been affected by the Covid pandemic and has set up internal procedures to communicate using online computer systems which has allowed it to continue its activities and deliver its support without material issues.

Principle risk and uncertainty

The principle risk to the organisation arises from the lack of income, particularly from donations and grants. This can be mitigated by reducing expenditure. The Charity’s contractual arrangements with suppliers’ goods and services have short cancellation periods. The effect of lower expenditure would be to reduce the level of activity and services that the Trust can offer, but it would remain in existence.

Reserves policy and going concern

The reserves policy targets a level of reserves held to be sufficient to cover at least a quarter of the annual direct operating costs which implies a target reserve level of around £250,000. At the end of the year the level of free reserves stood at £300,023 (2019: £116,582). The income of the Charity is dependent on raising further donations and the Charity is confident that the current fundraising programme will ensure the appropriate amount is received. Should there be a shortfall the Charity can reduce operating costs to mitigate the situation. There are no material uncertainties about the Charity’s ability to continue as a going concern.

Statement on fundraising

Baker Dearing Educational Trust does not engage in public fundraising and does not use professional fundraisers or commercial participators. Baker Dearing Educational Trust nevertheless observes and complies with relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and Baker Dearing Educational Trust received no complaints relating to its fundraising practice.

Plans for the future

Baker Dearing will continue to provide support and advice to UTCs on a variety of areas covering education, marketing and finance. It will also continue to liaise with the Government to ensure that the UTC programme and the technical education provided by UTCs will be embedded in the educational landscape. The Covid pandemic will hopefully abate during 2022 and the Charity will continue to assist UTCs where possible. The Charity has operated both internally and externally by remote online communications which has allowed it to provide support where required.

Statement of responsibilities of the trustees

The trustees (who are also directors of Baker Dearing Educational Trust for the purposes of company law) are responsible for preparing the trustees’ annual reports and the financial

6

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 December 2021 was 9 (2020: 9). The trustees are members of the Charity but this entitles them only to voting rights. The trustees have no beneficial interest in the Charity.

The report of the Trustees has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

7

Baker Dearing Educational Trust

Trustees’ annual report

For the year ended 31 December 2021

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 9 March 2022 and signed on their behalf by:

The Rt Hon Lord Baker of Dorking CH Chairman

8

Independent auditor’s report

To the members of

Baker Dearing Educational Trust

Opinion

We have audited the financial statements of Baker Dearing Educational Trust (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Baker Dearing Educational Trust'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.

9

Independent auditor’s report

To the members of

Baker Dearing Educational Trust

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. 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.

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’ annual 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:

10

Independent auditor’s report

To the members of

Baker Dearing Educational Trust

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

11

Independent auditor’s report

To the members of

Baker Dearing Educational Trust

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available 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.

Noelia Serrano (Senior statutory auditor) 30 March 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

12

Baker Dearing Educational Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Note
Income from:
3
4
5a
15a
Reconciliation of funds:
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
UTC promotion and support
Raising funds
Net income/(expenditure) for
the year and net movement in
funds
Total expenditure
Charitable activities
UTC promotion and support
Total funds brought forward
Total funds carried forward		 Unrestricted
£
302,125
596,216
40		 Restricted
£
-
-
-		 2021
2020
Total
Total
£
£
302,125
324,973
596,216
501,658
40
1,301
898,381
827,932
5,250
33,750
826,356
778,639
831,606
812,389
66,775
15,543
233,248
217,705
300,023
233,248
898,381 -
5,250
709,690		 -
116,666
714,940 116,666
183,441 (116,666)
116,582 116,666
300,023 -

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

13

Baker Dearing Educational Trust

Company no. 07390138

Balance sheet

As at 31 December 2021

Note
Current assets:
11
Liabilities:
12
14a
15a
Total unrestricted funds
General funds
Total charity funds
Cash at bank and in hand
Short term deposits
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds:
Debtors		 £
30,293
-
638,950		 2021
£
300,023		 £
171,941
55,581
416,247		 2020
£
233,248
669,243
(369,220)		 643,769
(410,521)
300,023 116,582
300,023 233,248
-
300,023		 116,666
116,582
300,023 233,248

Approved by the trustees on 9 March 2022 and signed on their behalf by

The Rt Hon Lord Baker of Dorking Chairman

14

Baker Dearing Educational Trust

Statement of cash flows

For the year ended 31 December 2021

Note
£
£
16
167,082
40
40
167,122
471,828
17
638,950
Cash and cash equivalents at the beginning of
Cash and cash equivalents at the end of the
Change in cash and cash equivalents in the
2021
Net cash provided by investing activities
Net cash provided by/(used in) operating
Cash flows from investing activities:
Dividends, interest and rents from investments		 Note
£
£
16
167,082
40
40
167,122
471,828
17
638,950
Cash and cash equivalents at the beginning of
Cash and cash equivalents at the end of the
Change in cash and cash equivalents in the
2021
Net cash provided by investing activities
Net cash provided by/(used in) operating
Cash flows from investing activities:
Dividends, interest and rents from investments		 Note
£
£
16
167,082
40
40
167,122
471,828
17
638,950
Cash and cash equivalents at the beginning of
Cash and cash equivalents at the end of the
Change in cash and cash equivalents in the
2021
Net cash provided by investing activities
Net cash provided by/(used in) operating
Cash flows from investing activities:
Dividends, interest and rents from investments		 £
£
(117,864)
1,301
1,301
(116,563)
588,391
471,828
2020		 £
£
(117,864)
1,301
1,301
(116,563)
588,391
471,828
2020
638,950 471,828

15

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

a) Statutory information

Baker Dearing Educational Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office is 1, Sanctuary Buildings, London SW1P 3JT.

b) Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

16

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

Governance costs are allocated to the promotion and support of UTCs.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Debtors

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

k) Cash at bank and in hand

Cash at bank and cash 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.

l) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity 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.

m) Pensions

The charity offers a defined contribution scheme for all employees which is auto-enrolment compliant. All pension contributions relate to payments made to individual employees' personal pension plans. Contributions are charged to the statement of financial activities in the year to which they relate. Differences between contributions due and actually paid are shown as either accruals or prepayments in the balance sheet.

17

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

3
4
UTC promotion and support
Total income from charitable activities
UTC licence fees
Income from donations and legacies
All income from charitable activities in unrestricted.
Income from charitable activities
Net expenditure
Expenditure on:
Raising funds
Charitable activities
Total funds carried forward
Gifts
Net movement in funds
Total funds brought forward
Total income
Investments
Income from:
Donations and legacies
Total expenditure
Charitable activities		 Unrestricted
£
302,125		 £
199,973
501,658
1,301
Unrestricted		 Restricted
£
125,000
-
-		 2020
Total
£
324,973
501,658
1,301
702,932 125,000 827,932
33,750
763,639		 -
15,000		 33,750
778,639
797,389 15,000 812,389
(94,457) 110,000 15,543
(94,457)
211,039		 110,000
6,666		 15,543
217,705
116,582 116,666 233,248
Restricted
£
-		 2021
Total
£
302,125		 2020
Total
£
324,973
302,125 - 302,125 324,973
2021
Total
£
596,216		 2020
Total
£
501,658
596,216 501,658

18

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

5a Analysis of expenditure (current year)

Analysis of expenditure (current year)
Staff costs (Note 7)
UTC promotional activities:
Operational & programme management
Marketing & events
Administration
Premises
Reallocation of:
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of raising
funds
£
-
-
-
5,250
-		 Charitable
activities		 Governance
costs
£
-
19,865
-
-
-		 2021
Total
£
249,167
443,157
68,212
57,599
13,471		 2020
Total
£
253,213
376,879
78,771
96,346
7,180
UTC
promotion and
support
£
249,167
423,292
68,212
52,349
13,471
5,250
-		 806,491
19,865		 19,865
(19,865)		 831,606
-		 812,389
-
5,250 826,356 - 831,606 812,389
33,750 778,639 -

5b Analysis of expenditure (prior year)

Staff costs (Note 7)
UTC promotional activities:
Operational & programme management
Marketing & events
Administration
Premises, IT & personnel donated by Edge
Reallocation of:
Governance costs
Total expenditure 2020		 Cost of raising
funds
£
-
-
-
33,750
-		 Charitable
activities		 Governance
costs
£
-
16,839
-
-
-		 2020
Total
£
253,213
376,879
78,771
96,346
7,180
UTC
promotion and
support
£
253,213
360,040
78,771
62,596
7,180
33,750
-		 761,800
16,839		 16,839
(16,839)		 812,389
-
33,750 778,639 - 812,389

19

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

6 Net incoming/(outgoing) resources for the year

This is stated after charging / crediting:

This is stated after charging / crediting:
2021 2020
£ £
Auditor's remuneration (excluding VAT):
Audit 6,800 6,500

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Other forms of employee benefits
Employer’s contribution to defined contribution pension schemes		 2021
£
216,295
22,979
5,101
4,792		 2020
£
221,727
22,192
4,887
4,408
249,167 253,214

The following number of employees received employee benefits in excess of £60,000 (excluding employer pension costs and employer national insurance) during the year between:

2021 2020
No. No.
£140,000 - £149,999 - 1
£150,000 - £159,999 1 -

The aggregate remuneration for key management personnel (including employer national insurance contributions and employer pension contributions) is £168,090 (2020: £165,349).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £534 (2020: £466) incurred by 1 (2020: 1) member relating to attendance at meetings of the trustees and development of UTCs.

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Promotion of UTCs 2021
No.
3.0		 2020
No.
3.0
3.0 3.0

20

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

9 Related party transactions

During the year Lord Baker donated £7,500 (2020: nil)

From time to time, averaging approximately one day per week, Lord Baker receives secretarial support provided by the Baker Dearing Educational Trust for his personal administrative matters. One fifth of the salary costs for this person amounts to £7,254 (2020: £7,415).

In the year, the Trust paid £18,000 (2020: £13,500) to Consilia Consultants Ltd "Consilia" for expert consultancy services of which Simon Connell, Chief Executive, is a Director. Simon does not take part in any decisions with Trustees responsible for appointing and approving the work carried out by Consilia. The future level of services is expected to reduce.

10 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Debtors

Debtors
Trade debtors
Accrued income and pre-payments		 2021
£
17,452
12,841		 2020
£
143,373
28,568
30,293 171,941

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Accruals
Trade creditors
Deferred income (note 13)		 2021
£
16,162
5,938
347,120		 2020
£
39,158
34,230
337,133
369,220 410,521

13 Deferred income

Deferred income
Balance at the beginning of the year
Amount deferred in the year
Amount released to income in the year
Balance at the end of the year		 Other
contractual
income
20,000
23,720
(20,000)		 UTC
subscriptions
£
317,333
323,400
(317,333)		 2021
£
337,333
347,120
(337,333)		 2020
£
333,333
337,133
(333,333)
23,720 323,400 347,120 337,133

21

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

14a
14b
15a
Gatsby Charitable Foundation
Sage Foundation
Special Growth Fund
Total restricted funds
General funds
Unrestricted funds:
Movements in funds (current year)
Restricted funds:
Net assets at the end of the year
Net assets at the end of the year
Analysis of net assets between funds
Net current assets
Total funds
Total unrestricted funds
Analysis of net assets between funds
Net current assets		 At 1 January
2021
£
100,000
10,000
6,666
2020
2021		 Incoming
resources &
gains
£
-
-
-		 General
unrestricted
£
300,023		 Restricted
£
-		 Total
£
300,023
300,023 - 300,023
General
unrestricted
£
116,582		 Restricted
£
116,666		 Total
233,248
116,582 116,666 233,248
Outgoing
resources &
losses
£
(100,000)
(10,000)
(6,666)		 Transfers
£
-
-
-		 At 31
December
2021
£
-
-
-
116,666 - (116,666) - -
116,582 898,381 (714,940) - 300,023
116,582 898,381 (714,940) - 300,023
233,248 898,381 (831,607) - 300,023

Purposes of restricted funds

The Gatsby Charitable Foundation's grant is to support UTCs to engage in national technical education reforms including T Level implementation, entry age at 11 and join Multi Academy Trusts.

The Sage Foundation grant is used to deliver Sage Future Maker's AI For Good course at UTCs.

The Special Growth Fund assists UTCs with funding educational projects and resources such as employer based activities and engagement.

22

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

15b Movements in funds (prior year)

Gatsby Charitable Foundation
Sage Foundation
Special Growth Fund
Total restricted funds
General funds
Unrestricted funds:
Total funds
Total unrestricted funds
Restricted funds:		 At 1 January
2019
£
-
-
6,666		 Incoming
resources &
gains
£
100,000
25,000
-		 Outgoing
resources &
losses
£
-
(15,000)
-		 Transfers
£
-
-
-		 At 31
December
2020
£
100,000
10,000
6,666
6,666 125,000 (15,000) - 116,666
211,039 702,932 (797,389) - 116,582
211,039 702,932 (797,389) - 116,582
217,705 827,932 (812,389) - 233,248

Purposes of restricted funds

The Gatsby Charitable Foundation's grant is to support UTCs to engage in national technical education reforms including T Level implementation, entry age at 11 and join Multi Academy Trusts.

The Sage Foundation grant is used to deliver Sage Future Maker's AI For Good course at UTCs.

The Special Growth Fund assists UTCs with funding educational projects and resources such as employer based activities and engagement.

16 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period
(as per statement of financial activities)
Dividends, interest and rent from investments
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities		 2021
£
66,815
(40)
141,648
(41,301)		 2020
£
15,543
(1,301)
(113,703)
(18,403)
167,122 (117,864)

23

Baker Dearing Educational Trust

Notes to the financial statements

For the year ended 31 December 2021

Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than three months)
Total cash and cash equivalents		 At 1 January
2021
£
415,111
56,717		 Cash flows
£
223,839
(56,717)		 At 31
December
2021
£
638,950
-
471,828 167,122 638,950

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

the following periods
Less than one year 2021
2020
£
£
-
7,090
-
7,090
Property
- 7,090

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

24