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2020-07-31-accounts

Company Number: 06724508 Charity Number: 1139447

AREA 51 EDUCATION LIMITED

Report and Accounts

for the year ended 31 July 2020

AREA 51 EDUCATION LIMITED

Report and Accounts

for the year ended 31 July 2020

INDEX

Page Number
1 to 3 Trustees’ (Directors’) Annual Report
4 to 6 Auditors’ Report
7 Statement of Financial Activities
8 Balance Sheet
9 Statement of Cash Flows
10 to 16 Notes forming part of the Accounts
The following pages do not form part of the statutory accounts:
17 and 18 Detailed Income and Expenditure Account

AREA 51 EDUCATION LIMITED

Company Information

Company Number: 06724508

Charities Number: 1139447

Registered Office

1 Mallard Place Coburg Road London N22 6TS

Trustees and Directors

Dr M Griffiths – Chairman and Secretary Mr D Stansell – Treasurer

Senior Staff

Miss N Quarterman

Auditors

Dickinsons Enterprise House Beeson’s Yard Bury Lane Rickmansworth Hertfordshire WD3 1DS

Bankers

National Westminster Bank Plc PO Box 4115 Essex RM12 4DF

AREA 51 EDUCATION LIMITED

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2020

Trustees’ Annual Report

The trustees submit their report together with the audited accounts for the year ended 31 July 2020.

The accounts have been prepared in accordance with the Companies Act 2006, the Charities Act 2011, the memorandum and Articles of Association 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 UK and Republic of Ireland (FRS 102). This report is also a directors’ report as required by the Companies Act 2006, as all trustees are directors.

Structure, Governance and Management

The charity is constituted as a company, limited by guarantee, it does not have any share capital and it is governed by its Memorandum and Articles of Association.

The management of the charity is the responsibility of the trustees who are also appointed Directors of the company. New trustees are appointed on the recommendation of existing trustees and who are deemed to have appropriate experience and knowledge for the role.

There are no formal procedures for inducting new trustees, however, any new trustee appointed would be practically aware of the work undertaken by the Charity and support is always provided by the founding trustees.

Details of related party transactions, where applicable, can be found in the notes to the accounts.

The day to day running of the charity is undertaken by a senior staff member, Miss N Quarterman. Trustees meet on a regular basis to discuss performance and set targets for longer term goals.

Objectives and Activities

Area 51 Education Limited is a charitable organisation whose aims are:

  1. To advance the education of people with learning difficulties and disabilities in the development of functional skills for life and work.

  2. The elimination of discrimination on the basis of learning and/or physical disability.

  3. The promotion of social inclusion among people with learning and/or physical disabilities and their families who are socially excluded from society or part of society as a result of their disabilities by:

  4. i) Raising public awareness of the issues affecting people with learning and/or physical disabilities and their families, and;

  5. ii) Providing a positive model for continuing education for people with learning and/or physical disabilities after compulsory school-leaving age.

  6. To advance in life and help young people with learning and/or physical disabilities through providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals.

  7. To act as a resource for people with learning and/or physical disabilities living in the area of London by providing advice and assistance and organising programmes of physical, education and other activities by advancing education and relieving unemployment.

  8. Providing recreational and leisure time activity in the interests of social welfare for people living within the area of benefit who have need by reason of their age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons.

  9. To promote the social and economic inclusion, for the public benefit, of people with learning and/or physical disabilities who are excluded as a result of their disability by providing opportunities for the development of employment in social enterprise companies.

1

AREA 51 EDUCATION LIMITED

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2020

In shaping our objectives and planning our activities, the trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and have complied with section 4 of the Charities Act 2011.

The trustees consider that the charity exists for the purpose of the local public benefit within the North London Boroughs of Haringey, Hackney, Tower Hamlets, Enfield, Barnet, Waltham Forest, Islington and Camden.

The trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

Risk Assessment

In order to comply with the Statement of Recommended Practice for Charity Accounts (FRS 102) a review of the major risks to which the charity is exposed and the systems that have to be established to mitigate those risks has been carried out. The trustees receive regular reports and these are monitored on an ongoing basis at Board Level.

Achievements and Performance

The college has maintained the high standards achieved in its Ofsted report in 2016, undertaking a review of its assessment and recording processes to better reflect the achievements of its students in 2020. The college has developed new partnerships with Richard Cloudesley school to widen the range of opportunities available to its students. Work experience opportunities have been severely impacted over 19/20 due to the impact of the Coronavirus pandemic. Face to face teaching has also been reduced to shield many of our very vulnerable young people. The college has worked hard to develop online learning and remote teaching for its students and has provided additional services such as regular well-being checks for both students and staff.

Future Developments and Strategies

The college has experienced a set-back in its plans to develop the premises secured during 2019/20 due to the unexpectedly high costs of re-developing the site to the required standards and changes in the local development plans which are beyond the college’s control. However, the lease on the college’s current premises has been acquired by the Local Authority, which is expected to provide greater security and further options for alternative premises in the future. Whilst these options are being further explored, the new premises will be sub-let and the college continues to work with the Council and local stakeholders to identify solutions.

The college has plans to develop new provision in partnership with another local provider that will extend the scope of provision to include young people with complex physical disabilities and offer new pathways into work for this cohort. This provision will benefit the college as a whole through the opening up of new employment opportunities for young people with learning disabilities as well as introducing the college to a wider group of stakeholders and beneficiaries. The postponement of the college’s move to new premises has enabled the college to focus on developing its adult provision and the pandemic has provided opportunities to explore the provision of online learning for people with learning difficulties, for whom this traditionally had not been offered.

Financial Review

The Statement of Financial Activities for the year is set out on page 7 of the accounts.

Income from full time courses has decreased marginally compared to the prior year at £880,290 for the year ending 31 July 2020 (2019: £938,246). Owing to its status as an Independent Specialist Provider, the charity received grants from the Education Funding Agency during the year amounting to £1,013,641 (2019: £988,044).

Staff costs are the charity's core costs in meeting its objectives; these have increased from £1,166,612 in the prior year to £1,204,089.

A provision of £30,000 remains in the accounts for dilapidation costs on the current premises as it is the intention to relocate in the near future.

The results show a surplus for the year of £64,076 (2019: £107,770).

Statement of Trustees’ Responsibilities

Company law requires the trustees to prepare accounts for each financial period which, give a true and fair view of the state of affairs of the company and of the surplus for that period. In preparing those accounts the directors are required to:

2

AREA 51 EDUCATION LIMITED Trustees, (Directors,) Annual Report for th¢ year ended 31 July 2020 S¢lect suitable atcounting policies and then apply them consist¢ntly' Observe the methods and principles of the Charities SORP- Make judgements and estiinales that are reasonYLble and pmdenl. State whether applicable UK Arxounting Standard5 have been fr>llowed, subject to any material d¢partures disclosed attd explained the awount5' and Prepare the accounts on the going conrkm basis unless it is inappropriate to presume th the compat)y will continue in busine&s The trustees are respons&ble for keeping Proper accounting ￿ordS which dtsclose, with reasonable accuracy at aE]y time, Ihe f]nancial position of the company and to ena171¢ ih¢m to ensure the accounts have beet) properly prepared in accordance with the provisions of the Companies A¢1 2006. They are also i'esponsible for saf¢8uardiEJg the Assets of the company and hence for takTng reasonable steps for the prev¢ntion and d¢t¢¢tion of fraud and other irregularitie5. So far as the trustees, are aware. there 1$ no rel¢vanÉ audit inforniation of whT¢h the compangs auditors are unaware and they have taken all the steps that they ought to huv¢ luken dÉT¢clors in order to make themselves aware of any relevant audit information and to establish that the company's auditi)rb are aware ulihat infoi'mation. Legal and AdmiDiStrtive Information Area 51 Education Limited, also kt]own as The John Dewey SpeGiali51 Coll¢g¢ is limited by guarantee and has no share ¢apitsl. Under the provision5 of the company's memorandum of association, each m¢fflber would be required to contt'ibute 2 sum not exceediDg £1 for the payment of the debts of the company in the event of a d¢ficiency of assets on a winding up of the ¢ompany. The C(H￿panY is a registered charity under the Charities Act 2011 with registration number 1139447. The Company Number is 06724508. Reserves Poliey The Trustees have establÈshed a policy lo maintain reserves at a level sufficiellt tt> $e¢urt fu￿ding for suitable, long term pr¢mftses when these cat) be found. As at 31 July 2020 unrestricted r¢s¢rv¢5 amounted to £564,266 {2019.. £509,334) and restri¢ted reserves an)ount¢d to £87,783 {2019'. £78,639}. Trusttrs and Directorg The trustee& and also directors, who served during the year. were as follows.. Dr M Griffiths Mr D Stansell Auditors The Auditors, Di¢kinsot)s chart￿ed Accountants have indicated that they are willing to be reappointed at the forthcoming Annuykl General Meeting. Exernption Statement The accounts have been prepared in accordarkce with the ype¢ial provisions for small companies widcr Part 15 of the Companies Act 2006 By Order of the Board: Dr M GritTith$ Trust¢¢ Dlr¢cto Date

AREA 51 EDUCATION LIMITED

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2020

Opinion

We have audited the financial statements of Area 51 Education Ltd for the year ended 31 July 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and the related notes and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the 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 the provisions available for small entities, in the circumstances set out in note 3 to the financial statements 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. 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.

Opinion on other matters prescribed by the Companies Act 2006

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

4

AREA 51 EDUCATION LIMITED

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2020

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 2-3, the trustees (who are also the directors 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditor under s144 of Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

5

AREA 51 EDUCATION LIMITED liidependent Auditors? Report to the Trustees for the eAr ellded 31 Jul 2020 We coinmuni¢ate with those charged with govemance regardittg, among otiier matters, the planned scope and timing of the audit and signÉficant audit findings, including any sigTrifieattt deficiencies in intemal control ihat we identify during our audit. Use of our report This report is I￿ade solely to the Charitable Company's memb￿.5, as a body. in accoi'dance with Chaptei. 3 of Part 16 of the Companies Aci 2006. Our audit wodt has been undeitsken so ihat we mighi state ¢0 th¢ Company's meinb¢rs those matters we are required to state to the. in an auditor's report and for no other purpose. To ¢h¢ thllest extent perniitted by law, we do not atcepi or assume iesponsibility to &￿yone otli¢r than the compaiiy and the Company's members as a body, for our audit woi'k, for tliis report, oi. for the opinions we have formed. Domiiiic C4d¢r (Senior st2tutory auditor) f4)r and on behalf Df Dicliin.$oiJs, Statutory Audltor EnteTprise House Beeson's Yard Bury Lan¢ Rickmansworih Heirfordshire WD3 SDS D&te

AREA 51 EDUCATION LIMITED

Statement of Financial Activities

for the year ended 31 July 2020

Notes
Incoming Resources
Charitable activities
5
Donations
6
Investment income
Other income
7
8
Total Incoming Resources
Resources Expended
Costs of charitable activities
9
Other resources expended
10
Total Resources Expended
Net Movements in Funds
Reconciliation of Funds
Total Funds at 1 August 2019
Net Movement in Funds
Total Funds at 31 July 2020
18		 Unrestricted
Funds
£
1,883,381
3,980
484
50,291
1,938,136
1,881,377
1,827
1,883,204
54,932
509,334
54,932
564,266		 Restricted
Funds
£
10,550
-
-
-
10,550
1,406
-
1,406
9,144
78,639
9,144
87,783		 2020
Total Funds
£
1,893,931
3,980
484
50,291
1,948,686
1,882,783
1,827
1,884,610
64,076
587,973
64,076
652,049		 Unrestricted
Funds
£
1,909,895
13,257
482
-
1,923,634
1,826,659
2,326
1,828,985
94,649
414,685
94,649
509,334		 Restricted
Funds
£
16,395
-
-
-
16,395
3,274
-
3,274
13,121
65,518
13,121
78,639		 2019
Total Funds
£
1,926,290
13,257
482
-
1,940,029
1,829,933
2,326
1,832,259
107,770
480,203
107,770
587,973

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

All income and expenditure is derived from continuing activities.

The notes on pages 10 to 16 form part of these accounts

7

AREA 51 EDUCATION LI IVllTED Company F4umber: 06724508 Balallce Sheet Charity Numbei.: 1139447 s at 31 July 2020 at 31 July 2026 Asat 31 Jllly 2019 Notes FRxed Assets Tangible fixed assets 13 21281 33,629 Cui-r¢nt Assets Debts)i Cash at bald( and in Imnd 15 411,697 403,432 302.0 369,606 815,129 671.627 Creditors: Amounts falling due within i)n¢ year 16 (184,301} (117285) Net ¢orrent assets 630,768 554.344 Totsl ￿SSets less CUATettt Iiabilities 652,049 587,973 Funds of tli¢ Ch&rlty Restrictcd Income Funds Unr¢stsi¢ted JJ]come 14]nds 18 18 87,783 564266 78,639 509,334 Total fllnds 652,¢M9 587.973 The5E R(xo￿￿we￿ approved by thebogTdon.... Dr M Griffiths Trustee And Director The noles onpages l(1 to 16fopmpart ofihffsg acco￿17￿.

AREA 51 EDUCATION LIMITED

Statement of Cash Flows

for the year ended 31 July 2020

for theyear ended 31 July 2020
Notes
Cash flows from operating activities
Cash generated by operations
22
Interest paid
Net cash inflow from operating activities
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
23		 2020
£
£
41,527
(213)
41,314
(2,872)
484
(2,388)
(5,100)
(5,100)
33,826
369,606
403,432		 2019
£
£
185,036
(289)
184,747
(10,448)
481
(9,967)
(6,800)
(6,800)
167,980
201,626
369,606
(2,872)
484		 (10,448)
481
(5,100) (6,800)
167,980
201,626
369,606

The notes on pages 10 to 16 form part of these accounts.

9

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

1 Principal Accounting Policies

Accounting Convention

accounting and Reporting by Charities in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102), the Companies Act 2006, and the Charities Act 2011. The accounts include the results of the charity’s operations which are described in the Trustees’ Annual Report.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The trustees consider that the charity exists for the purpose of the local public benefit as defined in section 4 of the Charities Act 2011.

Going concern

Having considered the current and anticipated economic impact of Coronavirus on the charity’s activities the Trustees have adopted the going concern basis of accounting in preparing the financial statements; the Trustees are satisfied the charity has sufficient reserves and access to the financial support necessary to meet working capital requirements and enable the company to remain in operational existence for the foreseeable future.

Incoming Resources

Total incoming resources as shown in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources Expended

Expenditure is accounted for on an accruals basis, recognised when a liability is incurred, and classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Basic Financial Assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction cost and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic Financial Liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Depreciation

Tangible assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements -straight line over the lease term Plant and machinery -25% on written down value Fixtures and fittings -25% on written down value Motor vehicles -25% on written down value

Impairment of Fixed Assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cashgenerating unit to which the asset belongs.

10

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

Principal Accounting Policies (continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed, if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Government Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Fund Accounting - Unrestricted Funds

Unrestricted funds are those which are available for use at the discretion of the Trustees in the furtherance of the general objectives of the charity and which have not been designated for other purposes.

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

Fund Accounting - Restricted Funds

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

Retirement Benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

2 Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

11

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

2 Judgements and key sources of estimation uncertainty

Key sources of estimation uncertainty

The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Key estimates

Included within other creditors is a provision for dilapidation costs amounting to £30,000 (2019: £30,000). The trustees consider this is a prudent estimate of costs the charity will incur when they are required to vacate the premises. The trustees are not currently aware of when the lease on the premises will be terminated, however communications with the landlord provide reasonable assurance that notice will be served in the next few years.

3 Ethical Standard - Provisions available for small entities

In common with many other businesses of our size and nature we use our auditors to assist with the preparation of the accounts.

4 Turnover

The turnover and operating surplus for the year was derived from the company’s principal activity and arises solely in the United Kingdom.

5 Incoming Resources from Charitable Activities

Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Full time courses 880,290 - 880,290 938,246
Education Funding Agency 1,003,091 10,550 1,013,641 988,044
_ _ _ _
1,883,381 10,550 1,893,931 1,926,290
====== ====== ====== ======
6 Incoming Resources from Donations
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Donations 3,980 - 3,980 13,257
====== ====== ====== ======
7 Investment Income
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Bank interest received 484 - 484 482
====== ====== ====== =====

12

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

8 Other Income
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Government grant received 10,000 - 10,000 -
Furlough income 40,291 - 40,291 -
______ _ ______ _____
50,291 - 50,291 -
====== ====== ====== =====
9 Costs of Charitable Activities
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Equipment and general purchases 59,790 - 59,790 70,540
Learner transport and facilities hire 120,816 - 120,816 115,836
Staff costs including employer's NI 1,204,089 - 1,204,089 1,166,612
Subcontract labour 66,679 - 66,679 120,890
Staff training 29,573 - 29,573 23,662
Rent and service charges 183,082 - 183,082 133,190
Rates 21,372 - 21,372 11,937
Insurance 15,913 - 15,913 16,048
Light and heat 15,535 - 15,535 14,329
Cleaning 17,589 - 17,589 20,889
Repairs and maintenance 17,570 - 17,570 18,329
Staff recruitment 20,796 - 20,796 4,630
Printing, postage and stationery 7,974 - 7,974 9,298
Advertising 774 - 774 755
Telephone charges 3,579 - 3,579 3,675
Computer running costs 2,703 - 2,703 6,746
Hire of equipment 7,336 - 7,336 8,925
Motor vehicle leasing 8,284 - 8,284 8,419
Motor running costs 6,938 - 6,938 9,422
Travelling expenses 4,292 - 4,292 1,739
Entertaining 3,851 - 3,851 1,446
Legal and professional fees 17,894 - 17,894 1,542
Bad and doubtful debts 19,690 - 19,690 27,168
Sundry expenses 1,056 - 1,056 566
Accountancy charges 4,380 - 4,380 4,183
Audit fee 1,680 - 1,680 1,610
Charitable donations - - - 100
Subscriptions 4,329 - 4,329 3,499
Amortisation of leasehold improvements 10,549 - 10,549 18,358
Depreciation of plant and machinery 1,413 - 1,413 1,444
Depreciation of fixtures and fittings 1,439 1,406 2,845 3,595
Depreciation of motor vehicles 412 - 412 551
_ _ _ _
1,881,377 1,406 1,882,783 1,829,933
====== ====== ====== ======
10 Other Resources Expended
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Bank charges 1,614 - 1,614 2,037
Bank interest 213 - 213 166
Bank loan interest - - - 123
_ _ _ _
1,827 - 1,827 2,326
====== ====== ====== ======

13

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

11 Staff Costs and Pensions

Staff Costs and Pensions
Unrestricted Restricted Total Total
Funds Funds 2020 2019
£ £ £ £
Wages and salaries 1,082,515 - 1,082,515 1,063,859
Employers N.I. contributions 81,165 - 81,165 82,380
Teachers’ pension contributions - - - 9,367
Staff pension contributions 40,409 - 40,409 11,006
_ _ _ _
1,240,089 - 1,240,089 1,166,612
====== ====== ====== ======

No employee earned £60,000 or more. The average number of employees was 57 (2019: 56).

No employees participated in the Teachers' Pension Scheme. During the year ended 31 July 2020, pension contributions to the Teachers’ Pension Scheme were £Nil (2019: £9,367).

12 Tax on surplus on ordinary activities

The company is a registered charity and is not liable to corporation tax.

13 Tangible fixed assets

Tangible fixed assets
Leasehold Plant and Fixtures Motor
Improvements Machinery and fittings Vehicles Total
£ £ £ £ £
Cost
At 1 August 2019 112,894 20,196 53,557 4,000 200,647
Additions in the year
-		 2,050 822 - 2,872
_ _ _ _ _
At 31 July 2020 122,894 22,246 54,379 4,000 203,519
====== ====== ====== ====== ======
Depreciation
At 1 August 2019 106,191 15,760 42,719 2,348 167,018
Charge for the year 10,549 1,413 2,845 413 15,220
_ _ _ _ _
At 31 July 2020 116,740 17,173 45,564 2,761 182,238
====== ====== ====== ====== ======
Net book value
_ _ _ _ _
At 31 July 2020 6,154 5,073 8,815 1,239 21,281
====== ====== ====== ====== ======
_ _ _ _ _
At 31 July 2019 16,703 4,436 10,838 1,652 33,629
====== ====== ====== ====== ======

14

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

14 Financial Instruments
 2020 2019
£ £
Carrying amount of financial assets
Measured at amortised cost
 407,544 149,122
====== ======
Carrying amount of financial liabilities
Measured at amortised cost
 68,599 81,525
====== ======
15 Debtors
2020 2019
£ £
Trade debtors 359,999 105,371
Other debtors 47,545 43,754
Prepayments 4,153 30,721
Accrued income - 122,177
_ _
411,697 302,023
====== ======
Other debtors totalling £32,073 (2019: £32,073) are recoverable after more than one year.

16 Creditors: Amounts falling due within one year

Creditors: Amounts falling due within one year
2020 2019
£ £
Bank loan instalments (secured) - 5,100
Trade creditors 17,740 19,443
Taxation and social security 42,006 17,452
Accruals 85,762 5,760
Provision for dilapidations 30,000 30,000
Other creditors 8,853 39,530
_ _
184,361 117,285
====== ======

The bank loan is secured by way of a fixed and floating charge over the assets of the company.

17 Operating Lease Commitments

Operating lease payments represent rentals payable by the company for the lease of equipment and property.

At the reporting end date, the company had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

2020 2019
£ £
In less than one year 174,419 106,427
In two to five years 261,852 30,996
In over five years 1,065,276 -
====== ======

15

AREA 51 EDUCATION LIMITED

Notes forming part of the Accounts

for the year ended 31 July 2020

18 Reserves

Reserves
Balance at Movement in Balance at
1 August the year 31 July
2019 2020
£ £ £
Unrestricted funds 509,334 54,932 564,266
Restricted funds 78,639 9,144 87,783
_ _ _
587,973 64,076 652,049
====== ====== ======

19 Called up share capital

The company is limited by guarantee and has no share capital. Under the provisions of the company's memorandum of association, each member would be required to contribute a sum not exceeding £1 for the payment of debts of the company in the event of a deficiency of assets on winding up of the company.

20 Control

The charity has been controlled throughout the year by the trustees.

21 Related Party Transactions

During the year there were no related party transactions.

22 Cash generated from operations

22 Cash generated from operations
2020 2019
£ £
Surplus for the year 64,076 107,770
Adjustments for:
Finance costs 213 289
Investment income (484) (481)
Depreciation and impairment of tangible fixed assets 15,220 23,948
Movements in working capital:
(Increase)/Decrease in debtors (109,674) 72,649
Increase/(Decrease) in creditors 72,176 (19,139)
_ _
Cash generated by operations
 41,527
185,036
====== ======
23 Analysis of changes in net funds
Balance at Movement in Balance at
1 August the year 31 July
2019 2020
£ £ £
Cash at bank and in hand 369,606 33,826 403,432
Borrowings excluding overdrafts (5,100) 5,100 -
_ _ _
364,506 38,926 403,432
====== ====== ======

16