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← Area 51 Education

2024-07-31-accounts

Company Number: 06724508 Charity Number: 1139447

AREA 51 EDUCATION LTD

Report and Accounts

for the year ended 31 July 2024

AREA 51 EDUCATION LTD

Report and Accounts

for the year ended 31 July 2024

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 17 Notes forming part of the Accounts
The following pages do not form part of the statutory accounts:
18 and 19 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 (and Directors)

Mr D Stansell – Chairman and Secretary Mr N Fryars – Treasurer

Senior Staff

Miss N Quarterman

Auditors

Dickinsons Chartered Accountants 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 2024

Trustees’ Annual Report

The Trustees submit their report together with the audited accounts for the year ended 31 July 2024.

The accounts have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 as amended by Charities Act 2022, 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 2024

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 as amended by Charities Act 2022.

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

Area 51 has continued to implement the Performance Improvement Action Plan that was drawn up after the 2022 OFSTED inspection. Significant progress has been made in most of the areas criticised by Ofsted at the last inspection. Evidence collection and assessments of learner progress are now robust. Enrichment activities are now taking place regularly. Although there are still some issues with consistency of practice across classes, we expect that the next inspection will yield a better rating.

A lack of management capacity has impeded some of the improvement efforts. Area 51 therefore started a Management Improvement project in mid-2024. This has established a new management structure that is in the process of being filled. Some external recruitment is required to achieve this.

New tenants have been found for Clarendon Units 2 and 3. Area 51 is planning to use Clarendon Unit 1 to house some of its own activities. This will require some construction work to make the space suitable. The space can then be used to house (some of) the activities that are currently in Parma House, which we expect to exit before the end of FY2024-5.

Two new Governors have been recruited.

The financial position of the provision remains challenging and has the Trustees’ attention. However, the Trustees’ view is that addressing the shortfall in management capacity is an essential prerequisite to being able to improve the finances of the provision.

Future Developments and Strategies

The Trustees have identified three main challenges that need to be addressed in the coming two years:

  1. Delivery capability - this includes:

  2. a. Strengthening the management of the provision (a new structure has been agreed and is in the process of being filled);

  3. b. Completing the Performance Improvement Action Plan that was drawn up after the 2022 OFSTED inspection;

  4. c. Resolving issues with staffing; this includes differentiating Area 51 as an employer by stressing development possibilities.

  5. Accommodation: an adequate replacement needs to be found for Parma House, which the provision is expected to surrender before the end of FY2024-5. Clarendon 1 is expected to play a role here.

  6. Financial position: several routes to improvement will be addressed once the new management structure has been filled.

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2

AREA 51 EDUCATION LTD

Trustees’ (Directors’) Annual Report

for the year ended 31 July 2024

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 £2,025,045 (2023: £1,968,062).

Staff costs are the Charity's core costs in meeting its objectives; these have decreased from £1,443,809 in the prior year to £1,337,436.

The result for the year is a deficit of £49,685 (2023: £145,977).

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:

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.

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 as amended by Charities Act 2022 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 2024 unrestricted reserves amounted to £428,460 (2023: £496,003) and restricted reserves amounted to £81,760 (2023: £63,902).

3

AREA 51 EDUCATION LTD Trvstees, (Directors,) Annu&l Report for the ear ended 31 Jul 2024 'Iruytees xttd Direetors I'he'fnJsteestDtrectors wl)o served during the year, were as folloiys.. Dr M Ciriffiths (Resign¢d l Novernber ?0241 Mr D Stansell MrN fryars Ms T Sanford {Re5igned l O¢tober 2023) Ms M Vadher (Resigned 28 November 2023) Auditon Tl)e Auditors. Dickinsons Chartered Aocowitan15' have indicated that they are willing to ￿ reappoinl¥d at the forthcoming Annual General MeetkT]g. Exemption Statement The accounts have been prepared in a￿OrdAnce the Special provisions for small coinpanies under Part IS of the Companies Act 2006. rder of the Board-. Mr D Stansell Trustce Date

AREA 51 EDUCATION LTD

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2024

Opinion

We have audited the financial statements of Area 51 Education Ltd for the year ended 31 July 2024 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

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:

5

AREA 51 EDUCATION LTD

Independent Auditors’ Report to the Trustees

for the year ended 31 July 2024

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 page 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, as amended by Charities Act 2022, 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

AREA 51 EDUCATION LTD Independent Auditors, Report to the Truslees foi. the ear end¢d 31 Jul 2024 We assessed the risks ofmalerial misslalement in respect of fraud as folloivs: The audit team questioned ivheiher thcrc H'erc any areas Ihal were susceptible to misstatement as part of theii. fraud discussion. In addressing the risk of managemcnt override ufeonlrol4 we tested ihe appropriateness of.journ81 enti'ics with a focus on lai'ge or unusual tran.sactions bascd on critej'ia deta'mined using our knowledge of the busine55 and indusliy. We also chall¢n8¢d assumptions and judgemcn15 made by managemenl in their significant accounting estiniates and judgem¢nis, We incorporated an element of unpredictability in the sele<ion of ihe twturc. timing, and exLent of our audit proceduiEs. Based on tILC results of oui. risk assessment we designed our audit prOc￿UlES to identify and lo address mat¢rial misststements in relalion to fiyud. in¢luding desi8nins audit procedures lo addres4 for cxamplc: The possibility of fraudulent or conupt payments made through third parlies. The i-isk of bi'ibery and coi'ruplion. The oppoi#unity lo se8ltgate duties within the entity. Based on the I'esults of our risk assessment wc designed our audil procedures to idenlify non-compliance with such laws and i'egulations id¢ntifi¢d above. Using our general commercial and sector experience and thiyjugh discussions with management, we identified w'eas of laws and I'egulalions that could reasonably be expcclcd lo havc d matci'ial cffeet on the financial slalements as well as those ai'ising fi'om Inanagemenl's own llssessmenl of the i-isks that iffegularilics may occur eilher bccau5e of fraud oi. ei'iY)r, Thc cng<igcmenl partner considers the engagement leam ¢oll¢cliv¢ly had the &ppropriale competence and capabilities to identify oi. reco8nise nonrycompliat￿c with IAWS and regulalions. We considei'ed the extenl to Mthich the audil ivas considered capablc of dctcctin8 irregularities.. TheiE are inhei'ent liniitalions in the audit proccdurcs described a￿￿)ve und the further Itmoved non-cnmplignce with laws and regulations is fi'oin the events and tr4nsoclions refleclcd in the financial 51aicmen15. the less likely we ivould become awarc of it. Also, Ihe risk of not detectiiig a material misslalement due to fraud is higher than Ihe i'isk of not delecling one fiom eiTOI', as fraud Inay involvc deliberate concealment by, for example, forgery or intentional misJepre5eniation. oi. throu8h collusion. A further description of our responsibililies is available on the Financiul Reportin8 Council'5 website al: htlp5'.Ilwww.fi'c.oi'g.uk/auditOl'srcsponsibilities. This descwipiion fom)s part of our auditor's ieport. Use of our r¢port I'his Kport is made solely lo Ihe Chayiiable Company's members, as a body, in accordance with Chapt￿. 3 of Pai'l 16 of the Companies Act 2006. Our audit work h&8 been undcilakcn so that we mighi slate lo the Company's membeis those mattel's we are reqLiired to .8late lo the, in an auditor's report and for no othcr pu￿￿¢. To Ihe fullesl exienc pem)ilted by l&w, Ive do not acccpl oi, assume responsibility to anyone other Ihan the company and IhL Company's members as a body, foi. our audit work. for thi5 rcpoi't. or for the opinions we have formed. JAmes Blrch (Senlor Sttulory Audltor) for Ind on boh#l( of Diekinsons, Statutory Auditor Bi'andon House rirs¢ Floor 90 The Bi'oadway Chesham Buckinghamshi HP5 IEG Date

AREA 51 EDUCATION LTD

Statement of Financial Activities

for the year ended 31 July 2024

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
Deficit in Funds
Reconciliation of Funds
Total Funds at 1 August 2023
Net Movement in Funds
Total Funds at 31 July 2024
18		 Unrestricted
Funds
£
2,025,045
2,486
6,629
48,706
2,082,866
2,136,476
13,933
2,150,409
-
(67,543)
496,003
(67,543)
428,460		 Restricted
Funds
£
-
-
-
32,564
32,564
14,706
-
14,706
-
17,858
63,902
17,858
81,760		 2024
Total Funds
£
2,025,045
2,486
6,629
81,270
2,115,430
2,151,182
13,933
2,165,115
-
(49,685)
559,905
(49,685)
510,220		 Unrestricted
Funds
£
1,968,062
46
3,924
73,306
2,045,338
2,214,262
13,527
2,227,789
38,812
(143,639)
639,642
(143,639)
496,003		 Restricted
Funds
£
-
-
-
55,011
55,011
18,537
-
18,537
(38,812)
(2,338)
66,240
(2,338)
63,902		 2023
Total Funds
£
1,968,062
46
3,924
128,317
2,100,349
2,232,799
13,527
2,246,326
-
(145,977)
705,882
(145,977)
559,905

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 17 form part of these accounts

8

AREA 51 EDUCATION LTD Balance Sheet Cbayity Yi umber: 1139447 as at 31 July 2024 A8Mt 31.july 2024 Asat 31 July 2023 Notes Fi.Ked assets Tangible lixed assets 13 20,180 26,076 cUrre￿t assets D¢biors Cash at bank and in hand 15 273,368 589,427 264.765 538,264 862,795 803,029 Creditors. am0￿￿18 falling due within olle year 16 1372,755) {269,200) Net emrrellt assets 490,040 533,8?9 Total assets lesy ellrrent liabÉlÉties 510,220 559.905 Fll￿dS of the eharity Restricted income funds lJnrestricted income funds 18 18 81.760 428,460 63,9(Y2 496,003 rotal lunds 510,22 559,905 The a¢couutS" Wete llppmved by thL board o Mr D .Stansell Trustee rhe iiotes onpages 1110 17foriii W3Tt ofthese accounts.

AREA 51 EDUCATION LTD

Statement of Cash Flows

for the year ended 31 July 2024

for theyear ended 31 July 2024
Notes
Cash flows from operating activities
Cash absorbed by operations
22
Net cash outflow from operating activities
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing 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		 2024
£
£
46,252
46,252
(1,718)
6,629
6,608
51,163
538,264
589,427		 2023
£
£
(92,219)
(92,219)
(8,679)
3,924
(4,755)
(96,974)
635,238
538,264
(1,718)
6,629		 (8,679)
3,924
(96,974)
635,238
538,264

The notes on pages 11 to 17 form part of these accounts.

10

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

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 as amended by Charities Act 2022. 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 as amended by Charities Act 2022.

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 2024

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.

12

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

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.


United Kingdom.
5 Incoming Resources from Charitable Activities
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Full time courses 856,369 - 856,369 801,718
Education funding agency 1,168,676 - 1,168,676 1,166,344
_ _ _ _
2,025,045 - 2,025,045 1,968,062
====== ====== ====== ======
6 Incoming Resources from Donations
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Donations 2,486 - 2,486 46
====== ====== ====== ======
7 Investment Income
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Bank interest received 6,629 - 6,629 3,924
====== ====== ====== =====
8 Other Income
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Other grants received - 32,564 32,564 55,011
Rent receivable 45,004 - 45,004 72,051
Student café and shop 3,702 - 3,702 1,255
______ _ ______ ______
48,706 32,564 81,270 128,317
====== ====== ====== ======

13

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

9 Costs of Charitable Activities

9 Costs of Charitable Activities
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Equipment and general purchases 34,913 - 34,913 43,948
Learner transport and facilities hire 144,516 - 144,516 111,427
Staff costs including employer's NI 1,337,436 - 1,337,436 1,433,809
Subcontract labour 157,212 - 157,212 165,920
Staff training 13,929 - 13,929 26,875
Clothing costs 331 - 331 2,664
Rent and service charges 223,627 - 223,627 244,748
Rates 27,745 - 27,745 11,793
Insurance 21,268 - 21,268 21,288
Light and heat 21,712 - 21,712 21,105
Cleaning 17,892 - 17,892 19,372
Repairs and maintenance 16,693 14,706 31,399 26,440
Staff recruitment 23,754 - 23,754 15,569
Printing, postage and stationery 8,159 - 8,159 11,193
Advertising 95 - 95 77
Telephone charges 7,515 - 7,515 8,332
Computer running costs - - - 2,096
Hire of equipment 5,718 - 5,718 5,367
Motor vehicle leasing 15,208 - 15,208 15,246
Motor running costs 5,580 - 5,580 7,374
Travelling expenses 1,283 - 1,283 3,367
Entertaining - - - 570
Legal and professional fees 28,729 - 28,729 15,480
Bad and doubtful debts 3,497 -
3,497
325
Sundry expenses 323 - 323 20
Subscriptions 11,715 - 11,715 11,342
Charitable donations 11 - 11 -
Loss on disposal of assets 1,697 - 1,697 -
Depreciation of plant and machinery 2,489 - 2,489 3,202
Depreciation of fixtures and fittings 3,429 - 3,429 3,850
__ _ __ __
2,136,476 14,706 2,151,182 2,232,799
======= ====== ======= =======
10 Other Resources Expended
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Bank charges 1,868 - 1,868 1,554
Accountancy charges 6,065 - 6,065 7,173
Audit fee 6,000 - 6,000 4,800
_ _ _ _
13,933 - 13,933 13,527
====== ====== ====== ======

14

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

11 Staff Costs and Pensions

Staff Costs and Pensions
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Wages and salaries 1,216,815 - 1,216,815 1,299,660
Employers N.I. contributions 97,666 - 97,666 108,722
Staff pension contributions 22,955 - 22,955 25,427
__ __ __ __
1,337,436 - 1,337,436 1,433,809
======= ======= ======= =======

The earnings of 1 member of staff, including benefits in kind, are within the range of £60,000 to £69,999 (2023: NIL). The average number of employees was 59 (2023: 63).

No employees participated in the Teachers' Pension Scheme.

12 Tax on Deficit

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 2023 122,894 38,487 67,917 229,298
Disposals in the year - 11,579 3,314 14,893
Additions in the year
-		 158 1,560 1,718
_ _ _ _
At 31 July 2024 122,894 27,066 66,163 216,123
====== ====== ====== ======
Depreciation
At 1 August 2023 122,894 25,251 55,077 203,222
Disposals in the year - 9,944 3,253 13,197
Charge for the year - 2,489 3,429 5,918
_ _ _ _
At 31 July 2024 122,894 17,796 55,253 195,943
====== ====== ====== ======
Net book value
_ _ _ _
At 31 July 2024 - 9,270 10,910 20,180
====== ====== ====== ======
_ _ _ _
At 31 July 2023 - 13,236 12,840 26,076
====== ====== ====== ======

15

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

15 Debtors

Debtors
2024 2023
£ £
Trade debtors 89,412 111,369
Other debtors 48,025 39,214
Prepayments 100,110 87,213
Accrued income 35,821 26,969
_ _
273,368 264,765
====== ======
Other debtors totalling £32,073 (2023: £32,073) are recoverable after more than one year.
Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 91,428 103,482
Taxation and social security 22,381 21,387
Accruals 35,455 47,773
Other creditors 223,491 96,558
_ _
372,755 269,200
====== ======

16 Creditors: Amounts Falling Due Within One Year

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
2024 2023
£ £
In less than one year 107,867 106,131
In two to five years 285,660 322,112
In over five years 41,659 113,074
====== ======
Vehicles
2024 2023
£ £
In less than one year 15,208 15,208
In two to five years 732 15,939
====== ======

Lessor

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

Property 2024 2023
£ £
In less than one year 51,600 75,184
In two to five years 86,000 231,817
====== ======

16

AREA 51 EDUCATION LTD

Notes forming part of the Accounts

for the year ended 31 July 2024

18 Reserves

Reserves
Balance at Movement in Balance at
1 August the year 31 July
2023 2024
£ £ £
Unrestricted funds 496,003 (67,543) 428,460
Restricted funds 63,902 17,858 81,760
_ _ _
559,905 (49,685) 510,220
====== ====== ======

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

2024 2023
£ £
Deficit for the year (49,685) (145,977)
Adjustments for:
Investment income (6,629) (3,924)
Depreciation and impairment of tangible fixed assets 5,917 7,052
Loss on disposal of tangible fixed assets 1,697 -
Movements in working capital:
Decrease/(Increase) in debtors (8,603) 56,065
Increase/(Decrease) in creditors 103,555 (5,435)
__ _
Cash generated from operations
 46,252 (92,219)
======= ======
23 Analysis of Changes in Net Funds
Balance at Movement in Balance at
1 August the year 31 July
2023 2024
£ £ £
Cash at bank and in hand 538,264 51,163 589,427
====== ====== ======

17

AREA 51 EDUCATION LTD

Detailed Income and Expenditure Account

for the year ended 31 July 2024

for theyear ended 31 July 2024
Year Year
Ended Ended
31 July 31 July
2024 2023
£ £
Incoming Resources
Incoming resources from charitable activities
Full time courses 856,369 801,718
Education funding agency 1,168,676 1,166,344
__ __
2,025,045 1,968,062
Voluntary income
Donations 2,486 46
Investment income
Bank interest received 6,629 3,924
Other income
Other grants received 32,564 55,011
Rent receivable 45,004 72,051
Student café and shop 3,702 1,255
__ __
Total Incoming Resources 2,115,430 2,100,349
======= =======
Resources Expended
Charitable activities (Page 19) 2,151,182 2,232,799
Other resources expended (Page 19) 13,933 13,527
__ __
Total Resources Expended 2,165,115 2,246,326
======= =======
__ __
Deficit for the year (49,685) (145,977)
======= =======

This page does not form part of the statutory accounts

18

AREA 51 EDUCATION LTD

Detailed Income and Expenditure Account

for the year ended 31 July 2024

for theyear ended 31 July 2024
Year Year
Ended Ended
31 July 31 July
2024 2023
£ £
Charitable activities
Equipment and general purchases 34,913 43,948
Learner transport and facilities hire 144,516 111,427
Staff costs including employer's NI 1,337,436 1,433,809
Subcontract labour 157,212 165,920
Staff training 13,929 26,875
Clothing costs 331 2,664
Rent and service charges 223,627 244,748
Rates 27,745 11,793
Insurance 21,268 21,288
Light and heat 21,712 21,105
Cleaning 17,892 19,372
Repairs and maintenance 31,399 26,440
Staff recruitment 23,754 15,569
Printing, postage and stationery 8,159 11,193
Advertising 95 77
Telephone charges 7,515 8,332
Computer running costs - 2,096
Hire of equipment 5,718 5,367
Motor vehicle leasing 15,208 15,246
Motor running costs 5,580 7,374
Travelling expenses 1,283 3,367
Entertaining - 570
Legal and professional fees 28,729 15,480
Bad and doubtful debts 3,497
325
Sundry expenses 323 20
Subscriptions 11,715 11,342
Charitable donations 11 -
Loss on disposal of assets 1,697 -
Depreciation of plant and machinery 2,489 3,202
Depreciation of fixtures and fittings 3,429 3,850
__ __
2,151,182 2,232,799
======= =======
Other resources expended
Bank charges 1,868 1,554
Accountancy charges 6,065 7,173
Audit fee 6,000 4,800
__ __
13,933 13,527
======= =======

This page does not form part of the statutory accounts

19