2022-07-31-accounts

Company Number: 06724508 Charity Number: 1139447

AREA 51 EDUCATION LTD

Report and Accounts

for the year ended 31 July 2022

AREA 51 EDUCATION LTD

Report and Accounts

for the year ended 31 July 2022

INDEX

Page Number
1 to 4	Trustees’ (Directors’) Annual Report
5 to 7	Independent Auditors’ Report
8	Statement of Financial Activities
9	Balance Sheet
10	Statement of Cash Flows
11 to 18	Notes forming part of the Accounts
	The following pages do not form part of the statutory accounts:
19 and 20	Detailed Income and Expenditure Account

AREA 51 EDUCATION LTD

Company Information

Company Number: 06724508

Charities Number: 1139447

Registered Office

1 Mallard Place Coburg Road London N22 6TS

Trustees

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

Directors

Dr M Griffiths Mr D Stansell Ms T Sanford Mr N Fryars Ms M Vadher

Senior Staff

Miss N Quarterman

Auditors

Dickinsons Brandon House First Floor 90 The Broadway Chesham Buckinghamshire HP5 1EG Bankers

National Westminster Bank Plc PO Box 4115 Essex RM12 4DF

AREA 51 EDUCATION LTD

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2022

Trustees’ Annual Report

The Trustees submit their report together with the audited accounts for the year ended 31 July 2022.

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 being 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 Ltd 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 LTD

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2022

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

Despite the challenges presented by the pandemic, the college remained open throughout and staff continued their review of assessment and recording processes to better reflect the achievements of students. The college continues its partnership with Richard Cloudesley School in Islington. The 2-year pilot has been successful, but accommodation has been a challenge and for the moment the students have been relocated to Mallard Place.

While the impact of the Coronavirus pandemic has severely impacted work experience opportunities, new opportunities have been created in horticulture, catering and retail.

Future Developments and Strategies

The college’s current premises have been acquired by the local authority and the trustees and Council are actively seeking better premises for the college. Work continues with the Council and local stakeholders to identify solutions, the details of which remain undefined.

The college had plans to develop new provision and to extend the scope of provision and develop new opportunities for young people with very severe disabilities. To accomplish this a CEO was employed to focus on new developments and she began to explore new opportunities. Unfortunately, due to the outcome of the Ofsted inspection in November 2022, expansion became impossible, and this post was made redundant. The focus is now on developing a new curriculum, improving teaching and learning and continuing to improve assessment of students’ achievements and recording them effectively to return the college to its previous Ofsted status of ‘Good’.

The postponement of the college’s move to new premises is unsettling but the college continues to focus on developing its provision. 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 8 of the accounts.

Owing to its status as an Independent Specialist Provider, the Charity received grants from the Education Funding Agency and Local Authorities. During the year income amounted to £1,982,308 (2021: £1,919,790).

Staff costs are the Charity's core costs in meeting its objectives; these have increased from £1,161,919 in the prior year to £1,328,612.

The result for the year is a deficit of £39,786 (2021: surplus of £50,453).

2

AREA 51 EDUCATION LTD

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2022

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 Trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles of the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• and explained in the accounts; and

• Prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Company and to enable them to ensure the accounts have been properly prepared in accordance with the provisions of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The following additional directors were appointed to the Board during the period: Nick Fryars, Tess Sanford and Mona Vadher.

As mentioned above, a CEO – Carmel Medziolka - was appointed in December 2021 to take responsibility for non-educational matters and to grow the provision, and her salary was above the minimum reporting threshold required for the Charity Commission. It has subsequently not been possible to grow the provision in line with the original plans, and the role of CEO was therefore made redundant after the end of the period which these accounts cover.

So far as the Trustees' are aware, there is no other relevant audit information of which the Company's Auditors are unaware and they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's Auditors are aware of that information.

Legal and Administrative Information

Area 51 Education Ltd, also known as The John Dewey Specialist College 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 the debts of the Company in the event of a deficiency of assets on a winding up of the Company.

The Company is a registered charity under the Charities Act 2011 with registration number 1139447. The Company Number is 06724508.

Reserves Policy

The Trustees have established a policy to maintain reserves at a level sufficient to secure funding for suitable, long term premises when these can be found.

As at 31 July 2022 unrestricted reserves amounted to £639,642 (2021: £658,705) and restricted reserves amounted to £66,240 (2021: £86,963).

Trustees and Directors

The Trustees, who are also directors, and, who served during the year, were as follows:

Dr M Griffiths Mr D Stansell

Auditors

The Auditors, Dickinsons Chartered Accountants have indicated that they are willing to be reappointed at the forthcoming Annual General Meeting.

3

AREA 51 EDUCATION LTD Independent Audltors, R¢pDrt kn the Trustees for the ear ended 31 Jul 2022 ￿￿]￿PtIOn StatsmeDt The a¢couDls hav¢ beell prep￿ed ill a¢cODjan￿ with the special provisions for small companies UDder Part 15 of the Companie8 Act 2006. By Ord¢r of the Board.. LtsL3 Dr M Graffiihs Trustee 8nd Dlreetsr

AREA 51 EDUCATION LTD

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2022

Opinion

We have audited the financial statements of Area 51 Education Ltd for the year ended 31 July 2022 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:

• give a true and fair view of the state of the company’s affairs as at 31 July 2022 and of its deficit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• 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 (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

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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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:

• the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• • the directors’ report included in the trustees’ report has been prepared in accordance with applicable legal requirements.

5

AREA 51 EDUCATION LTD

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2022

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:

• adequate and proper 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 returns; 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 in preparing the trustees’ report and from the requirement to prepare a strategic report.

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.

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

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to include the Companies Act 2006, and relevant tax legislation.

We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. We examined discussed with management any known or suspected instances of fraud or non-compliance with laws and regulations.

6

AREIA 51 EDUCATION LTD Independent Auditors, Repoi't to Ihc Trustccs for thc edr ended 31 Jul 2022 We assessed tli¢ i'isks of inalei-ial Inissialemenl in respect of fraiid as follows.. The aiidit tcain qucstioiied wlieiher there were any aiEas Ihi wei-e susceptible lo misslalcmcnt as pait of their fiaud discussiot]. In addressTng ilie risk of maiiagemctjt override of conlrols, we tested Ilie appropi'iatene55 of joiiinal ¢iiti'ie5 with a fi)ciis on lai'g¢ oi. unu511al transa¢lion5 based on ci'ilei'ia deterinineil using our knowledgc of tlic busincss aIid iiiduslry. We al%0 cliallellgTed assuniption% and judBementE tnade by Inand¥tmenl in their sigiiificanl accoLiiiling estimate4 atid jiidgcrnciits. We incoi'porated an element of iijiprcdictability iii Ilie 5eleclioii of tlie naluiE. tiining. and extent of our audit procediiirs. Based on the IEslllis of oiir risk assessmct]t wc dcsiEned oui. aiidil procediiiE5 to identify and to address material tnis5talemenls in relation to fi'aijd, incliiding de5Tgning audit pi-o¢eduies lo addi'e%8, for example.. The possibility of fraiidulenl or coriupt paymcnts tnad¢ through Ihii'd parties. The ri%k of bi'ibery and corruption. The oppoitunity 10 segregate duties within the entity. Based on thc results of our risk a5sessinent we designed our audit procedures lo identify non-eompliancc with such laws and regLilaiions identified above. Using oui. genti'al ¢ommer¢ial and sector expcrienLc and througli disciissioijs with InanaEemeiit, we identified arcas of laws and regulations that could Tea50nably be expecled ro have a material effect on the f￿nanCIal stateincnts as well as those ai'ising from managenient'5 own asses%nient of tlic risks that irregularilies inay oecui. eithei. because of f13ud oi. ctTOr. The engagement partner Collsidcrs the engagemeiil team collectively had the appropi'iate cotnpetEnC¢ and capabilities lo identify or T¢cognis¢ non-compliance with laws and regulations. We considered the extent to whiGh the audst was Gonsidered ¢apable of detecting irregularities: There are inhciEnt limitations in the audit proc¢dure% dE5cribed above and the further rcmovcd non-eoinpliance with laws and regiilalions is fix)m the event5 aiid IraT15aGtion5 refl¢Gted ill tlie financial slateiments, the less likely we woiild becoine aware of it. Also, the i'isk of not dctccting a niaterial iiii5Statenienl diie to fraud is liigher than thc risk of not detecting one fix)m error, as fraud tnay involve delibrrat¢ ¢on¢ealment by, for example, forgery or ijitentional misrcprc5elltation. or tlirough ¢ollusion. A fujtliei. desci'iptioii of oui. re5poiisibilities is availltble on Ilie Fiiiancial Reporliiig Coiiiicil's wcbsite at.. https'.Ilwww.fir.oi'g.uklaudilorstrspon5ibilili¢s. Thi5 d¢5Gription fonns part of our aiidilor's iEport. Use of oui. report This rcpoit is rnade sol¢ly to (he Charitable Coijip1£ ny's metnbei's, as a body, in accordance with Chaptcr 3 of Part 16 of the Companies Act 2006. Our aiidit work lius been undeTlaken so that we might state to tlie Cojnpally's inembeis those mallei's we aTe reqiiircd to state to the, iii an auditor'5 report and foi" iio nther purposc. To Ihe fullest extcnl pcrmittcd by law, wc do llot accept or a%8uint Irsponsibility to anyonc other than the ¢ompany and the Company's menibers as a body, for ouj. audit work, for this report. or for the opiniolls wc have fonned. mini¢ CAder {Senioi' StAtutory Auditoi.) for behlf of Dicliillsons, StAtutDry Auditor Bj'andon House Fir%t Floor 90 The Broadway Chesham BiiGkingham5hirc HP5 IF.G t4 Date

AREA 51 EDUCATION LTD

Statement of Financial Activities

for the year ended 31 July 2022

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 Transfers Between Funds 18 (Deficit)/Surplus in Funds Reconciliation of Funds Total Funds at 1 August 2021 Net Movement in Funds Total Funds at 31 July 2022 19	Unrestricted Funds £ 1,982,308 170 184 80,070 2,062,732 2,107,927 1,455 2,109,382 27,587 (19,063) 658,705 (19,063) 639,642	Restricted Funds £ - - - 38,812 38,812 31,948 - 31,948 (27,587) (20,723) 86,963 (20,723) 66,240	2022 Total Funds £ 1,982,308 170 184 118,882 2,101,544 2,139,875 1,455 2,141,330 - (39,786) 745,668 (39,786) 705,882	Unrestricted Funds £ 1,919,790 1,747 35 46,937 1,968,509 1,915,885 1,351 1,917,236 51,273 607,432 51,273 658,705	Restricted Funds £ - - - - - 820 - 820 (820) 87,783 (820) 86,963	2021 Total Funds £ 1,919,790 1,747 35 46,937
						1,968,509
						1,916,705 1,351
						1,918,056
						50,453
						695,215 50,453
						745,668

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 11 to 18 form part of these accounts

8

AREA 51 EDUCATION LTD Balance Sheet Charlty Number. 1139447 as at 31 Juty 2022 Agat 31 July 2022 A•4t JI Jwly 2021 Note4 Flxed assets Tangible fixed assets 13 24.449 12,365 cUrre￿t 88gets Debtors Cash at bauk alld in halld 15 320.830 635.238 207,490 882239 956,068 1.089,729 Credltors: Amounts falllng wlthkn y¢Ar 16 (274,635) {356,426) Net ellrr￿t assets 681.433 733,303 Total assets less currcDt Ilabllltl¢J 705.882 745.668 Ihe ¢knrlty Restricted income fi]Dd8 Unrestrict•J income fimds 19 J9 66,240 639.642 86,963 658.705 Total fuDds 705.882 745.668 Th¢sr ¥Gcounts vKre 3pprov¢d by the board on .. ..... Drm Griffiths Trwl¢e Dlreetor The notes oKpuges 11 to 18forniporl 0fth￿e accotsnls.

AREA 51 EDUCATION LTD

Statement of Cash Flows

for the year ended 31 July 2022

Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 23 Interest paid Net cash (outflow)/inflow from operating activities Investing activities Proceeds from sale of tangible fixed assets Purchase of tangible fixed assets Interest received Net cash used in investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 24	2022 £ £ (228,164) - (228,164) - (19,021) 184 (18,837) (247,001) 882,239 635,238	2021 £ £ 479,352 - 479,352 1,500 (2,080) 35 (545) 478,807 403,432 882,239	2021 £ £ 479,352 - 479,352 1,500 (2,080) 35 (545) 478,807 403,432 882,239
	- (19,021) 184	1,500 (2,080) 35
			478,807 403,432
			882,239

The notes on pages 11 to 18 form part of these accounts.

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AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

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

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

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.

11

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

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.

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AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

Judgements and Key Sources of Estimation Uncertainty (continued)

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:

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	2022	2021
		£	£	£	£
	Full time courses	674,582	-	674,582	635,529
	Education funding agency	1,307,726	-	1,307,726	1,284,261
		_	_	_	_
		1,982,308	-	1,982,308	1,919,790
		======	======	======	======
6	Incoming Resources from Donations
		Unrestricted	Restricted	Total	Total
		Funds	Funds	2022	2021
		£	£	£	£
	Donations	170	-	170	1,747
		======	======	======	======
7	Investment Income
		Unrestricted	Restricted	Total	Total
		Funds	Funds	2022	2021
		£	£	£	£
	Bank interest received	184	-	184	35
		======	======	======	=====
8	Other Income
		Unrestricted	Restricted	Total	Total
		Funds	Funds	2022	2021
		£	£	£	£
	Other grants received	14,037	38,812	52,849	6,450
	Furlough income	1,520	-	1,520	40,487
	Rent receivable	64,513	-	64,513	-
		______	_	______	_____
		80,070	38,812	118,882	46,937
		======	======	======	=====

13

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

9 Costs of Charitable Activities

9	Costs of Charitable Activities
		Unrestricted	Restricted	Total	Total
		Funds	Funds	2022	2021
		£	£	£	£
	Equipment and general purchases	41,176	-	41,176	58,213
	Learner transport and facilities hire	93,900	-	93,900	91,578
	Staff costs including employer's NI	1,328,612	-	1,328,612	1,161,919
	Subcontract labour	202,375	-	202,375	166,092
	Staff training	11,933	-	11,933	12,862
	Clothing costs	187	-	187	2,371
	Rent and service charges	244,288	-	244,288	206,413
	Rates	4,702	-	4,702	24,513
	Insurance	18,855	-	18,855	14,914
	Light and heat	29,477	-	29,477	17,687
	Cleaning	19,171	-	19,171	18,309
	Repairs and maintenance	17,756	31,948	49,704	20,434
	Dilapidation costs (release of provision)	(50,000)	-	(50,000)	20,000
	Staff recruitment	25,783	-	25,783	5,911
	Printing, postage and stationery	12,265	-	12,265	9,893
	Advertising	390	-	390	122
	Telephone charges	7,804	-	7,804	3,694
	Computer running costs	1,775	-	1,775	1,173
	Hire of equipment	7,521	-	7,521	7,083
	Motor vehicle leasing	13,209	-	13,209	18,979
	Motor running costs	5,323	-	5,323	6,986
	Travelling expenses	4,257	-	4,257	2,173
	Entertaining	280	-	280	823
	Legal and professional fees	19,492	-	19,492	20,777
	Bad and doubtful debts	20,843	-	20,843	-
	Penalties and fines	-	-	-	34
	Sundry expenses	325	-	325	479
	Accountancy charges	8,483	-	8,483	5,314
	Audit fee	4,210	-	4,210	2,126
	Subscriptions	6,598	-	6,598	6,338
	Amortisation of leasehold improvements	-	-	-	6,154
	Depreciation of plant and machinery	3,441	-	3,441	1,435
	Depreciation of fixtures and fittings	3,496	-	3,496	2,167
	Profit on sale of intangible asset	-	-	-	(261)
		__	_	__	__
		2,107,927	31,948	2,139,875	1,916,705
		=======	======	=======	=======
10	Other Resources Expended
		Unrestricted	Restricted	Total	Total
		Funds	Funds	2022	2021
		£	£	£	£
	Bank charges	1,455	-	1,455	1,351
	Bank interest	-	-	-	-
		_	_	_	_
		1,455	-	1,455	1,351
		======	======	======	======

14

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

11 Staff Costs and Pensions

Staff Costs and Pensions
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
	£	£	£	£
Wages and salaries	1,205,430	-	1,205,430	1,062,284
Employers N.I. contributions	100,403	-	100,403	80,257
Staff pension contributions	22,779	-	22,779	19,378
	__	__	__	__
	1,328,612	-	1,328,612	1,161,919
	=======	=======	=======	=======

No employee earned £60,000 or more. The average number of employees was 63 (2021: 59).

No employees participated in the Teachers' Pension Scheme. During the year ended 31 July 2022, pension contributions to the Teachers’ Pension Scheme were £Nil (2021: £Nil).

12 Tax on (Deficit)/Surplus

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

13 Tangible Fixed Assets

Tangible Fixed Assets
	Leasehold	Plant and	Fixtures
	Improvements	Machinery	and fittings	Total
	£	£	£	£
Cost
At 1 August 2021	122,894	24,325	54,379	201,598
Additions in the year	-	9,238	9,783	19,021
Disposal in the year	-	-	-	-
	_	_	_	_
At 31 July 2022	122,894	33,563	64,162	220,619
	======	======	======	======
Depreciation
At 1 August 2021	122,894	18,608	47,731	189,233
Charge for the year	-	3,441	3,496	6,937
Eliminated on disposals	-	-	-	-
	_	_	_	_
At 31 July 2022	122,894	22,049	51,227	196,170
	======	======	======	======
Net book value
	_	_	_	_
At 31 July 2022	-	11,514	12,935	24,449
	======	======	======	======
	_	_	_	_
At 31 July 2021	-	5,717	6,648	12,365
	======	======	======	======

15

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

14	Financial Instruments	2022	2021
		£	£
	Carrying amount of financial assets
	Measured at amortised cost	247,154	157,276
		======	======
	Carrying amount of financial liabilities
	Measured at amortised cost	179,780	236,658
		======	======
15	Debtors
		2022	2021
		£	£
	Trade debtors	195,923	85,302
	Other debtors	36,811	33,590
	Prepayments	73,676	50,215
	Accrued income	14,420	38,383
		_	_
		320,830	207,490
		======	======

Other debtors totalling £32,073 (2021: £32,073) are recoverable after more than one year.

16

Creditors: Amounts Falling Due Within One Year

Creditors: Amounts Falling Due Within One Year
	2022	2021
	£	£
Trade creditors	66,165	46,224
Taxation and social security	25,554	18,704
Accruals	94,889	66,768
Provision for dilapidations	-	50,000
Other creditors	88,027	174,730
	_	_
	274,635	356,426
	======	======

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:

Property

Property
	2022	2021
	£	£
In less than one year	98,536	71,415
In two to five years	285,660	285,660
In over five years	184,489	255,904
	======	======

16

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

17 Operating Lease Commitments (continued)

Vehicles

	2022	2021
	£	£
In less than one year	15,208	15,208
In two to five years	31,147	46,355
	======	======

Lessor

At the reporting end date, the company had contracted with tenants for the following minimum lease payments:

Property	2022	2021
	£	£
In less than one year	75,184	-
In two to five years	300,736	-
In over five years	6,265	-
	======	======

18 Transfer to Unrestricted Funds

If restricted funding is not utilised at the period end, it is carried forward until such time that all costs for that particular project or purpose have ceased at which point, so long as the agreement does not prohibit it, the balance of funds become unrestricted reserves. The amount of £27,587 (2021: £Nil) is no longer subject to restrictions and has been transferred to unrestricted funds.

19 Reserves

Reserves
	Balance at	Movement in	Balance at
	1 August	the year	31 July
	2021		2022
	£	£	£
Unrestricted funds	658,705	(19,063)	639,642
Restricted funds	86,963	(20,723)	66,240
	_	_	_
	745,668	(39,786)	705,882
	======	======	======

20 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.

21 Control

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

22 Related Party Transactions

During the year there were no related party transactions.

17

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2022

23 Cash Generated from Operations

23	Cash Generated from Operations
			2022	2021
			£	£
	(Deficit)/Surplus for the year		(39,785)	50,453
	Adjustments for:
	Investment income		(184)	(35)
	Depreciation and impairment of tangible fixed assets		6,937	9,757
	Profit on disposal of tangible fixed assets		-	(261)
	Movements in working capital:
	Decrease/(Increase) in debtors		(113,340)	239,433
	Increase/(Decrease) in creditors		(81,792)	180,005
			__	_
	Cash generated from operations		(228,164)	479,352
			=======	======
24	Analysis of Changes in Net Funds
		Balance at	Movement in	Balance at
		1 August	the year	31 July
		2021		2022
		£	£	£
	Cash at bank and in hand	882,239	(247,001)	635,238
		======	======	======

18

AREA 51 EDUCATION LTD

Detailed Income and Expenditure Account

for the year ended 31 July 2022

		Year	Year
		Ended	Ended
		31 July	31 July
		2022	2021
		£	£
Incoming Resources
Incoming resources from charitable activities
Full time courses		674,582	635,529
Education funding agency		1,307,726	1,284,261
		__	__
		1,982,308	1,919,790
Voluntary income
Donations		170	1,747
Investment income
Bank interest received		184	35
Other income
Other grants received		52,849	6,450
Furlough income		1,520	40,487
Rent receivable		64,513	-
		__	__
Total Incoming Resources		2,101,544	1,968,509
		=======	=======
Resources Expended
Charitable activities	(Page 20)	2,139,875	1,916,705
Other resources expended	(Page 20)	1,455	1,351
		__	__
Total Resources Expended		2,141,330	1,918,056
		=======	=======
		__	__
(Deficit)/Surplus for the year		(39,786)	50,453
		=======	=======

This page does not form part of the statutory accounts

19

AREA 51 EDUCATION LTD

Detailed Income and Expenditure Account

for the year ended 31 July 2022

	Year	Year
	Ended	Ended
	31 July	31 July
	2022	2021
	£	£
Charitable activities
Equipment and general purchases	41,176	58,213
Learner transport and facilities hire	93,900	91,578
Staff costs including employer's NI	1,328,612	1,161,919
Subcontract labour	202,375	166,092
Staff training	11,933	12,862
Clothing costs	187	2,371
Rent and service charges	244,288	206,413
Rates	4,702	24,513
Insurance	18,855	14,914
Light and heat	29,477	17,687
Cleaning	19,171	18,309
Repairs and maintenance	49,704	20,434
Dilapidation costs (release of provision)	(50,000)	20,000
Staff recruitment	25,783	5,911
Printing, postage and stationery	12,265	9,893
Advertising	390	122
Telephone charges	7,804	3,694
Computer running costs	1,775	1,173
Hire of equipment	7,521	7,083
Motor vehicle leasing	13,209	18,979
Motor running costs	5,323	6,986
Travelling expenses	4,257	2,173
Entertaining	280	823
Legal and professional fees	19,492	20,777
Bad and doubtful debts	20,843	-
Penalties and fines	-	34
Sundry expenses	325	479
Accountancy charges	8,483	5,314
Audit fee	4,210	2,126
Subscriptions	6,598	6,338
Amortisation of leasehold improvements	-	6,154
Depreciation of plant and machinery	3,441	1,435
Depreciation of fixtures and fittings	3,496	2,167
Profit on sale of intangible asset	-	(261)
	__	__
	2,139,875	1,916,705
	=======	=======
Other resources expended
Bank charges	1,455	1,351
	__	__
	1,455	1,351
	=======	=======

This page does not form part of the statutory accounts

20