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← The School Of Artisan Food

2023-08-31-accounts

Charity registration number 1139632

Company registration number 06741463 (England and Wales)

THE SCHOOL OF ARTISAN FOOD

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

THE SCHOOL OF ARTISAN FOOD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees and Directors Alison Swan Parente
Daniel Jessel
Susan Amaku
Nicholas Hatton
Fran Warde
Martin Anderson
Hilary Hamer (Appointed 11 December 2023)
Trustee Joe Schneider
Secretary Sarah Andrew
Charity number 1139632
Company number 06741463
Registered office Lower Motor Yard
Welbeck
Worksop
Nottinghamshire
S80 3LR
Auditor PK Audit LLP
1 Parkshot
Richmond
Surrey
TW9 2RD
Bankers NatWest
Worksop Branch
69 Bridge Street
Worksop
S80 1DJ

THE SCHOOL OF ARTISAN FOOD

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 27

THE SCHOOL OF ARTISAN FOOD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 AUGUST 2023

The Board of Trustees, all but one of whom are also directors for the purposes of company law, present their report for the year.

Reference and Administrative Information

The School of Artisan Food is a company limited by guarantee (registration number 06741463) with charitable status (registered charity number 1139632).

Reference and administrative information are set out above and form part of this report. The financial statements comply with the Charities Act 2011, the Companies Act 2006, 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) (effective 1 January 2019).

Objectives and activities

The School of Artisan Food (SAF) was founded in 2009 as a not for profit company. It became a registered charity on 31 December 2010. SAF is a unique, open-minded organisation, dedicated to teaching artisan food production skills. Artisan is a term used to describe food produced by non-industrialised methods, often handed down through generations but now in danger of being lost. Tastes and processes, such as fermentation, are allowed to develop slowly and naturally, rather than curtailed for mass-production.

Located on the Welbeck Estate in Nottinghamshire, SAF offers the opportunity for people of all skill levels, regardless of their socioeconomic circumstances, to expand their knowledge and improve their employability and social mobility through a wide range of courses including: Bread making and Patisserie, Business and Entrepreneurship, Butchery and Charcuterie, Cheese making, Chocolate making, Ice Cream making, Foraging as well as Food Preserving.

For those wishing to become professional bakers, SAF offers a unique full-time Advanced Diploma which equips students with the essential baking skills and business knowledge needed to launch a successful artisan bakery, to work in the baking industry or to manage a bakery enterprise.

In September 2019 SAF enrolled students to the UK’s first FdSc Artisan Food Production degree, delivered in partnership with Nottingham Trent University. Students are enrolled each academic year for the two year programme.

As a charity, SAF works with voluntary organisations, schools, colleges and community groups to provide opportunities to inspire and teach artisan food production skills. SAF is committed to widening participation at every level and actively fundraises to provide bursaries to those who otherwise would be unable to access SAF’s courses. As a part of this work SAF launched the Best Food Forward Programme in 2022, a three year project to deliver food education to Schools and Healthcare professionals.

SAF is a place where people come to learn, to share and to be inspired. SAF is proud to inspire individuals to use the skills they have learnt, to seek out and to support artisan producers and suppliers and to share their experience with others.

THE SCHOOL OF ARTISAN FOOD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Our aims are to:

Achievement of these aims will further the legal purposes of the charity and the public benefit provided.

Our business-specific aims are to:

Achievement of these business-specific aims will ensure the ability of the charity to continue and to provide public benefit in the future, and will support the achievement of the charity’s main aims.

Our values

At SAF, students are taught by highly skilled and experienced tutors and artisan food producers who are able to share their artisan skills, knowledge and expertise; they are committed to ensuring that the next generation can learn from their experience. In recent years, most skills-based education in the food sector has focussed upon industrial production techniques, standardisation, shelf-life and price control.

It is only recently that government advisors, health professionals and an increasing number of public bodies have begun to realise the true cost of this in terms of health, cultural diversity and social cohesion. There is also increasing evidence that an ability to produce in smaller units contributes towards a more varied, resilient and sustainable food system. Emphasis on a farm-to-fork philosophy and local sourcing of seasonal, raw materials along with natural, slow fermentation processes are central to SAF’s vision for the promotion of health and well-being. SAF recognises cultural, economic and psychological barriers to healthy eating and engages in dialogue and debate about these issues.

Review of the year

The core activities of The School of Artisan Food are the full-time six-month Advanced Diploma in Artisan Bakery qualification, the FdSc Artisan Food Production foundation degree and a wide range of short courses and professional level courses.

The FdSc Artisan Food Production foundation degree is a two-year programme delivered by SAF in partnership with Nottingham Trent University.

The School has continued its recovery from the impact of the COVID-19 pandemic, which has brought significant challenges. Despite this, the School commenced the Best Food Forward programme with the first course being held in the year.

Notable activities in the year included:

THE SCHOOL OF ARTISAN FOOD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Advanced Diploma in Artisan Bakery

A full programme was delivered during the year to 17 students, who graduated in May 2023.

Recruitment for the Advanced Diploma continues to be strong given the high quality of teaching and the employment opportunities available.

FdSc Artisan Food Production

The School of Artisan Food welcomed its fourth cohort of students to enrol on the FdSc Artisan Food Production qualification in September 2022. We enrolled 12 students in year one with 6 students progressing onto year two, all of whom successfully completed the course. 1 student was on a work placement year, due to return to year two in September 2023

Short courses

The School was able to deliver a normal programme of short courses during the year, which included 183 days of planned short courses, delivered to 1,042 students.

Bespoke and tailored training

SAF continues to develop its bespoke training and tailored venue hire services, including delivery of bespoke events for clients including: Worshipful Company of Bakers, The Samworth Church Academy, The University of Sheffield, NAFDMA International Agritourism Association, KP Snacks and others.

Fundraising

The School is grateful to charitable trusts including The Barbara Curtis Charitable Trust, LEADER, AB Charitable Trust, Rothschild Foundation and The Whittaker Trust who have contributed towards student bursaries and other charitable activities.

SAF would particularly like to recognise the ongoing support from The Welbeck Estates Company Limited and from Bolsover Properties Limited.

Staff

The School has a passionate and dedicated team who collectively deliver a first class experience to our students and charitable partners. Led by Ian Waterland, our Managing Director, each member of the team regularly goes above and beyond and the trustees wish to place on record their thanks and appreciation for all their efforts.

Report of the Trustees

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s Memorandum and Articles of Association and UK Generally Accepted Accounting Practice. This Trustees’ report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Governance and management

SAF is governed by its Memorandum and Articles of Association. Its Trustees meet quarterly and more frequently if required. Day to day management is undertaken by a core team led by the Managing Director.

Alison Swan Parente, founder of SAF and previous Chair, serves in the role of Trustee and Principal Fundraiser.

Recruitment and appointment of Trustees

The directors of the company are also charity Trustees for the purposes of charity law, with one exception (see legal and administrative information). Under the requirements of the Memorandum and Articles of Association members of the Board are elected to serve for twelve months after which a minimum of one-third of the board must be re-elected at each Annual General Meeting.

Trustee induction and training

Potential Trustees meet with the Managing Director and Chair of Trustees for a discussion about SAF’s work and the interaction between the staff and Trustees. They are invited to join a full Board meeting and to meet with other Trustees. Once Trustees have been invited to join the Board, they are provided with a full information pack and monthly updates from the Managing Director comprising management accounts and details of the activity of the school. Trustees also receive monthly updates from the Chair on staffing, finance, courses and current issues. Regular meetings are held between the Chair of Trustees and Managing Director, and all Trustees are invited regularly to events and presentations.

THE SCHOOL OF ARTISAN FOOD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

Risk management

The Trustees have examined the major risks to which SAF is exposed and confirm that strategic planning and systems have been established to mitigate against these risks. Procedures are also in place to ensure compliance with health and safety regulations for staff, students and visitors to the school. These have all been revised in the light of COVID-19 and are being kept continually under review.

The risk register has been substantially overhauled and will continue to be periodically reviewed by Trustees. The risk register identifies that financial sustainability is the major risk to the charity. A key risk is that revenue targets are not met, which is heavily dependent on continued strong recruitment on to the Advanced Diploma and FdSc programmes.

Non-financial risks arising from health and safety, fire and food hygiene are managed by ensuring accreditations are up to date and that robust policies and procedures are in place. Regular awareness training for staff is scheduled throughout the year.

Public Benefit statement

The Trustees, having regard to the Public Benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purpose and activities of the company satisfy the requirements of the public benefit test set out in section 4 of the same Act. In particular, the School:

Financial review

Incoming resources of £1,490,487 (2022 restated - £1,514,858) were generated during the year and there was expenditure of £1,408,915 (2022 restated - £1,166,901) resulting in a net income for the year of £81,572 (2022 restated - £347,957). Details appear in the subsequent financial statements and refer to notes 1.2 and 23 for the prior year adjustment.

At the end of the reporting period, the charity reported a total fund of £714,286 (2022 restated – £632,714), of which £445,408 (2022 restated – £232,820) was restricted and £268,878 (2022 restated – £399,894) was unrestricted.

The Trustees have assessed the charity’s ability to continue as a going concern for at least 12 months from the date these accounts were approved. They have concluded that the charity has the ability to continue and as such the accounts are prepared on a going concern basis. This conclusion is based on available resources and committed future donations. The Trustees have made plans to deal with the current situation as much as it is possible, as summarised in the Trustees Report, and believe the charity has sufficient cash resources to meet all its liabilities falling due within 12 months of the date these accounts were approved.

Reserves

Reserves are split between three funds:

THE SCHOOL OF ARTISAN FOOD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management

The Trustees (all but one of whom are also the directors of the company from a company law perspective) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare the financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Trustees are required to:

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

So far as each Trustee is aware, there is no relevant information that has not been disclosed to the Company’s auditors and each Trustee believes that all steps necessary have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company’s auditors have been made aware of that information.

Auditor

PK Audit LLP were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

N Hatton Chair of Trustees

21 May 2024

THE SCHOOL OF ARTISAN FOOD

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE SCHOOL OF ARTISAN FOOD

Opinion

We have audited the financial statements of The School of Artisan Food (the ‘charity’) for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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 trustees' annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THE SCHOOL OF ARTISAN FOOD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE SCHOOL OF ARTISAN FOOD

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within 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 statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

THE SCHOOL OF ARTISAN FOOD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE SCHOOL OF ARTISAN FOOD

Based on our understanding of the company and industry, and through discussion with the directors and other management, we identified that the principal risks were in relation to:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities, including fraud and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Annie Lee (Senior Statutory Auditor)
for and on behalf of PK Audit LLP 23 May 2024
Statutory Auditor
1 Parkshot
Richmond
Surrey
TW9 2RD

THE SCHOOL OF ARTISAN FOOD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

Current financial year
Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
2
296,575
320,697
Charitable activities
3
861,005
-
Investments
4
3,301
-
Other income
5
8,909
-
Total income
1,169,790
320,697
Expenditure on:
Charitable activities
6
1,323,277
73,195
Other
10
12,443
-
Total expenditure
1,335,720
73,195
Net (outgoing)/incoming resources before transfers
(165,930)
247,502
Gross transfers between funds
34,914
(34,914)
Net (expenditure)/income for the year/
Net movement in funds
(131,016)
212,588
Fund balances at 1 September 2022
399,894
232,820
Fund balances at 31 August 2023
268,878
445,408		 Total
Total
As restated
2023
2022
£
£
617,272
630,120
861,005
873,619
3,301
295
8,909
10,824
1,490,487
1,514,858
1,396,472
1,166,901
12,443
-
1,408,915
1,166,901
81,572
347,957
-
-
81,572
347,957
632,714
284,757
714,286
632,714		 Total
Total
As restated
2023
2022
£
£
617,272
630,120
861,005
873,619
3,301
295
8,909
10,824
1,490,487
1,514,858
1,396,472
1,166,901
12,443
-
1,408,915
1,166,901
81,572
347,957
-
-
81,572
347,957
632,714
284,757
714,286
632,714
1,514,858
1,166,901
-
1,166,901
347,957
-
347,957
284,757
632,714

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE SCHOOL OF ARTISAN FOOD

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

Prior financial year
Unrestricted Restricted Total
funds funds As restated
2022 2022 2022
Notes £ £ £
Income and endowments from:
Donations and legacies 2 409,724 220,396 630,120
Charitable activities 3 873,619 - 873,619
Investments 4 295 - 295
Other income 5 10,824 - 10,824
Total income 1,294,462 220,396 1,514,858
Expenditure on:
Charitable activities 6 1,139,423 27,478 1,166,901
Total expenditure 1,139,423 27,478 1,166,901
Net (outgoing)/incoming resources before transfers 155,039 192,918 347,957
Gross transfers between funds 81,684 (81,684) -
Net (expenditure)/income for the year/
Net movement in funds 236,723 111,234 347,957
Fund balances at 1 September 2021 163,171 121,586 284,757
Fund balances at 31 August 2022 399,894 232,820 632,714

THE SCHOOL OF ARTISAN FOOD

BALANCE SHEET

AS AT 31 AUGUST 2023

Notes
Fixed assets
Intangible assets
12
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Net assets
Income funds
Restricted funds
19
Unrestricted funds
20		 2023
£
48,593
570,486
619,079
(280,194)		 £
25,310
680,373
705,683
338,885
1,044,568
(330,282)
714,286
445,408
268,878
714,286		 2022
As restated
£
£
39,478
757,120
796,598
75,416
453,089
528,505
(328,237)
200,268
996,866
(364,152)
632,714
232,820
399,894
632,714

The financial statements were approved by the Trustees on 21 May 2024

N Hatton

Trustee

Company registration number 06741463

THE SCHOOL OF ARTISAN FOOD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2023

Notes
Cash flows from operating activities
Cash generated from operations
22
Investing activities
Purchase of intangible assets
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash generated from 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		 2023
£
(3,024)
(30,140)
6,800
3,301		 £
140,460
(23,063)
-
117,397
453,089
570,486		 2022
As restated
£
£
325,859
(24,446)
(41,732)
2,221
295
(63,662)
-
262,197
190,892
453,089

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

Charity information

The School of Artisan Food is a private company limited by guarantee incorporated in England and Wales. The registered office is Lower Motor Yard, Welbeck, Worksop, Nottinghamshire, S80 3LR.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

1.2 Prior period adjustments

A prior year adjustment has been made to reduce certain grant funding from donation income on the statement of financial activities in the 2023 financial year and reallocate it to the 2022 financial year as it should have been recognised in the prior year. Adjustments have been made to the balance sheet within the unrestricted funds and the cash in bank as disclosed in note 23 to the accounts. A further prior year adjustment has been made to capitalise website development costs which were incorrectly charged to the statement of financial activities in 2021. An adjustment has been made to the balance sheet within the unrestricted funds as disclosed in note 23 to the accounts.

1.3 Going concern

The Trustees have assessed the charity’s ability to continue as a going concern for at least 12 months from the date these accounts were approved. They have concluded that the charity has the ability to continue and as such the accounts are prepared on a going concern basis. This conclusion is based on available resources and committed future donations. The Trustees have made plans to deal with the current situation as much as it is possible, as summarised in the Trustees Report, and believe the charity has sufficient cash resources to meet all its liabilities falling due within 12 months of the date these accounts were approved.

1.4 Charitable funds

Unrestricted funds represent sums held by the charity for charitable purposes that are not subject to any restrictions as to how the funds can be used.

Restricted funds represent sums given to the charity subject to restrictions as to how the funds can be used.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

1.5 Income

Income is credited on an accruals basis, with the exception of donation and legacy income. Course fees are credited to income in the period in which the courses are provided. Diploma course income is recognised net of bursaries as these are given to diploma students in the form of a reduction in course fees. Foundation degree income is credited to income over the duration of the course provided. Donation income is recognised when there is entitlement to the funds and receipt is probable.

Gift Aid recovered on donations and bursaries is treated as part of that gift and as an addition to the same fund as the initial donation or bursary unless the donor has specified otherwise.

Donated goods are recognised as donation income when the charity has control over the donated goods and has satisfied any performance related conditions attached to the donation. Income associated with donated goods is measured as the fair value of the goods received.

Donated facilities and services are recognised as donation income once the charity has received the service and has satisfied any performance related conditions attached to the donation. Income associated with donated facilities and services is measured as the amount the charity would pay on the open market for an alternative item that would provide an equivalent benefit.

1.6 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.7 Intangible fixed assets other than goodwill

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website Over 3 years

1.8 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold land and buildings Over 25 years Plant and equipment Over 5 years Fixtures and fittings Over 5 years Office equipment Over 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs 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 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Government grants

Where government grants in respect of the purchase of tangible fixed assets have conditions attached outside the control of the charity, the grants have been recognised as deferred income when received. This is amortised at rates calculated to write off the deferred grant income evenly over the expected useful life of the assets purchased.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

2 Donations, grants and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
262,539
263,353
Grants
34,036
57,344
296,575
320,697		 Total
Unrestricted
Restricted
funds
funds
As
2023
2022
2022
£
£
£
525,892
375,688
180,705
91,380
34,036
39,691
617,272
409,724
220,396		 Total
restated
2022
£
556,393
73,727
630,120

Bursaries are provided to subsidise the costs of the diploma courses for a select number of students each year. In 2023 the number of students benefitting from a bursary was 3 (2022: 5). The bursaries provided to students in 2023 totaled £34,914 (2022: £41,153) which can be seen in the accounts as a transfer from the restricted bursary fund to the general fund.

Donation income includes £6,991 (2022: £40) in relation to donated goods in the form of plant and equipment. There are no unfulfilled conditions attached to the resources donated.

Donation income includes £191,878 (2022: £182,417) in relation to donated facilities and services in the form of the use of offices and premises. There are no unfulfilled conditions attached to the services donated.

Donation income includes £5,327 (2022: £nil) in relation to donated consumables. There are no unfulfilled conditions attached.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3 Charitable activities

Education
BFF Project
2023
2023
£
£
Sales within charitable activities
855,614
2,050
Other income
-
3,341
855,614
5,391		 Total
2023
Education
2022
£
£
857,664
873,619
3,341
-
861,005
873,619		 Total
2023
Education
2022
£
£
857,664
873,619
3,341
-
861,005
873,619
873,619

4 Investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 3,301 295
Other income
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Net gain on disposal of tangible fixed assets - 617
Miscellaneous income 8,909 10,207
8,909 10,824

5 Other income

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

6 Charitable activities

Education
BFF Project
2023
2023
£
£
Charitable expenditure
415,227
72,695
Share of support costs (see
note 7)
815,278
74,275
Share of governance costs
(see note 7)
16,907
2,090
1,247,412
149,060
Analysis by fund
Unrestricted funds
1,246,912
76,365
Restricted funds
500
72,695
1,247,412
149,060		 Total
2023
Education
BFF Project
2022
2022
£
£
£
487,922
490,496
21,757
889,553
578,468
52,180
18,997
19,440
4,560
1,396,472
1,088,404
78,497
1,323,277
1,082,683
56,740
73,195
5,721
21,757
1,396,472
1,088,404
78,497		 Total
2022
£
512,253
630,648
24,000
1,166,901
1,139,423
27,478
1,166,901

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

7
Support costs
Support costs Governance
costs
2023
2023
£
£
Staff costs
277,255
-
Depreciation
104,836
-
Premises
434,520
-
Marketing
4,595
-
Travel and subsistence
1,084
-
Legal and professional
14,167
-
Bank charges
8,570
-
Office costs
43,491
-
Bad debt write off
1,035
-
Irrecoverable VAT
-
-
Audit fees
-
15,000
Accountancy fees
-
3,997
889,553
18,997
Analysed between
Charitable activities
889,553
18,997		 Total Support costs
Governance
costs
Total
Basis of allocation
2023
2022 (As
restated)
2022 (As
restated)
2022 (As
restated)
£
£
£
£
277,255
188,495
-
188,495
Staff time
104,836
89,558
-
89,558
Usage
434,520
341,943
-
341,943
Floor area
4,595
3,485
-
3,485
Usage
1,084
1,557
-
1,557
Usage
14,167
19,326
-
19,326
Usage
8,570
11,144
-
11,144
Transactions
43,491
24,993
-
24,993
Staff time
1,035
282
-
282
Direct
-
(50,135)
-
(50,135)
Direct
15,000
-
15,600
15,600
Direct
3,997
-
8,400
8,400
Direct
908,550
630,648
24,000
654,648
908,550
630,648
24,000
654,648

Governance costs include payments to the auditors of £15,000 (2022: £15,600) for audit fees.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

8 Trustees

During the year the following transactions took place with Trustees:-

Trustee Alison Swan Parente made donations to the charity totalling £16,100 (2022 - £22,198) and the charity made sales of £179 (2022 - £78) to her.

Trustee Daniel Jessel made donations to the charity totalling £nil (2022 - £15,000).

Trustee Nicholas Hatton made donations to the charity totalling £200 (2022 - £nil).

Trustees were reimbursed £64 (2022 – £114) in respect of travel expenses incurred.

No Trustees received any remuneration (2022 – no Trustees).

During the year the following transactions took place with entities related to Trustees:-

The Welbeck Estates Company Limited

(Trustee Alison Swan Parente is the wife of William Parente who is a director of the above-named company).

The charity paid rent to the company of £25,200 (2022 – £24,200). The company provided IT, management and property repair services to the charity of £135,023 (2022 - £52,181). The company recharged staff costs to the charity of £2,035 (2022 - £675). The charity made sales to this company of £nil (2022 - £658) in the year. The deemed donation relating to the rent-free period on the charity’s premises totalled £191,878 (2022 - £182,417). At the balance sheet date, the total amount due to The Welbeck Estates Company Limited was £3,037 (2022 - £10,551).

The Welbeck Bakehouse Limited

(Trustee Alison Swan Parente is a director and the controlling shareholder of The Welbeck Bakehouse Limited.)

The charity purchased goods from this company of £578 (2022 – £216). The charity made sales to this company of £528 (2022 - £2,320). The charity recharged IT, pension, utility and staff costs to this company of £31,522 (2022 - £27,694). At the balance sheet date, the total amount due from The Welbeck Bakehouse Limited was £5,753 (2022 - £2,369).

Bolsover Properties Limited

(Trustee Alison Swan Parente is the wife of William Parente who is a director of the company.)

Bolsover Properties Limited made donations of £nil (2022 - £50,000) to the charity.

Stichelton Dairy Limited

(Trustee Joe Schneider is a director of the company).

The charity recharged staff costs to this company of £1,070 (2022 - £1,204). At the balance sheet date, the total amount due from Stichelton Dairy Limited was £101 (2022 - £100).

Other entities based at Welbeck

The charity made sales of £15 (2022 - £nil) and purchases of £2,426 (2022 - £2,517) to/from entities based on the Welbeck Estate. The charity recharged staff costs to these entities of £815 (2022 - £299). The amount due to these entities at the year end was £31 (2022 - £172).

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

9 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
19 13
Employment costs 2023 2022
£ £
Wages and salaries 437,598 289,235
Social security costs 38,092 25,114
Other pension costs 10,520 6,696
486,210 321,045

The Trustees consider the key management personnel to comprise the Trustees and the Senior Leadership team. The total employment benefits including employer pension contributions and employer national insurance contributions of the Senior Leadership team were £79,337 (2022 - £61,320).

There were no employees whose annual remuneration was more than £60,000.

10 Other

Unrestricted
funds
2023
£
Net loss on disposal of tangible fixed assets
12,443
12,443		 Total
2022
£
-
-

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

12 Intangible fixed assets

Cost
At 1 September 2022 (as restated)
Additions
At 31 August 2023
Amortisation and impairment
At 1 September 2022 (as restated)
Amortisation charged for the year
At 31 August 2023
Carrying amount
At 31 August 2023
At 31 August 2022 (as restated)		 Website
£
49,396
3,024
52,420
9,918
17,192
27,110
25,310
39,478

13 Tangible fixed assets

Short
leasehold land
and buildings
Plant and
equipment
Fixtures and
fittings
Office
equipment
£
£
£
£
Cost
At 1 September 2022
1,607,714
415,072
99,980
63,136
Additions
210
19,201
2,347
8,383
Disposals
(16,055)
(120,876)
(17,338)
(31,054)
At 31 August 2023
1,591,869
313,397
84,989
40,465
Depreciation and impairment
At 1 September 2022
901,269
370,473
99,209
57,831
Depreciation charged in the year
64,108
19,634
294
3,609
Eliminated in respect of disposals
(1,674)
(116,014)
(17,338)
(31,054)
At 31 August 2023
963,703
274,093
82,165
30,386
Carrying amount
At 31 August 2023
628,166
39,304
2,824
10,079
At 31 August 2022
706,445
44,599
771
5,305		 Total
£
2,185,902
30,141
(185,323)
2,030,720
1,428,782
87,645
(166,080)
1,350,347
680,373
757,120

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
17
Trade creditors
Other creditors
16
Creditors: amounts falling due after more than one year
Notes
Deferred income
17
17
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Non-current liabilities		 2023
£
7,155
9,284
32,154
48,593
2023
£
10,714
205,454
30,665
33,361
280,194
2023
£
330,282
2023
£
535,736
2023
£
205,454
330,282
535,736		 2022
£
-
29,620
45,796
75,416
2022
£
7,493
167,455
77,713
75,576
328,237
2022
£
364,152
2022
£
531,607
2022
£
167,455
364,152
531,607

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

17 Deferred income (Continued)
Movements in the year:
Deferred income at 1 September 2022 531,607 570,281
Released from previous periods (167,455) (172,093)
Resources deferred in the year 171,584 133,419
Deferred income at 31 August 2023 535,736 531,607

Grant income of £364,151, which was used to purchase certain fixed assets in accordance with accounting policy note 1.13, has been deferred to match the expected life of the fixed assets. The remaining deferred income of £171,585 relates to short courses to take place after the financial year end.

18 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 September resources expended (Note: 1 September resources expended (Note: 31 August
2021 Donations, 2022 Donations, 2023
grants and grants and
legacies) legacies)
£ £ £ £ £ £ £ £ £
Restricted Donations fund 121,586 180,705 (27,478) (41,993) 232,820 285,783 (73,195) - 445,408
Bursary fund - 39,691 - (39,691) - 34,914 - (34,914) -
121,586 220,396 (27,478) (81,684) 232,820 320,697 (73,195) (34,914) 445,408

20 Unrestricted funds

The income funds of the charity include unrestricted funds as follows:

Movement in funds (as restated) funds (as restated) Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources
Transfers		 Balance at Incoming Resources
Transfers		 Balance at
1 September resources expended (Note: 1 September resources expended (Note: 31 August 2023
2021 Donations, 2022 Donations,
grants and grants and
legacies) legacies)
£ £ £ £ £ £ £ £ £
Unrestricted funds 143,710 1,294,462 (1,119,962) 81,684 399,894 1,169,790 (1,335,720) 34,914 268,878
143,710 1,294,462 (1,119,962) 81,684 399,894 1,169,790 (1,335,720) 34,914 268,878

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

21
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Total
Unrestricted
funds
2023
2023
2023
2022
£
£
£
£
Fund balances at 31
August 2023 are
represented by:
Intangible fixed assets
25,310
-
25,310
39,478
Tangible assets
680,373
-
680,373
757,120
Current assets/(liabilities)
(106,523)
445,408
338,885
(32,552)
Long term liabilities
(330,282)
-
(330,282)
(364,152)
268,878
445,408
714,286
399,894
22
Cash generated from operations
Net income for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss/(gain) on disposal of tangible fixed assets
Amortisation and impairment of intangible assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease) in creditors
Increase/(decrease) in deferred income
Cash generated from operations		 As restated
Restricted
funds
Total
2022
2022
£
£
-
39,478
-
757,120
232,820
200,268
-
(364,152)
232,820
632,714
2023
2022
As restated
£
£
81,572
347,957
(3,301)
(295)
12,443
(617)
17,192
4,429
87,644
85,129
26,823
(40,026)
(86,042)
(32,044)
4,129
(38,674)
140,460
325,859

23 Prior period adjustments

A prior year adjustment has been made to reduce certain grant funding from donation income on the statement of financial activities in the 2023 financial year (as below) and reallocate it to the 2022 year as it should have been recognised in accordance with accounting policy note 1.5 in the prior year. A further prior year adjustment has been made to capitalise website development costs which were incorrectly charged to the statement of financial activities in 2021. Adjustments have also been made to the balance sheet within the unrestricted funds, intangible fixed assets and the cash in bank as follows:

THE SCHOOL OF ARTISAN FOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

23 Prior period adjustments (Continued)
Changes to the balance sheet
At 31 August 2022
As previously Adjustment As restated
reported
£ £ £
Fixed assets
Other intangibles 20,017 19,461 39,478
Current assets
Bank and cash 328,089 125,000 453,089
Net assets 488,253 144,461 632,714
Income funds
Restricted funds 232,820 - 232,820
Unrestricted funds 255,433 144,461 399,894
Total equity 488,253 144,461 632,714
Changes to the statement of financial activities
Year ended 31 August 2022
As previously Adjustment As restated
reported
£ £ £
Donations and legacies 505,120 125,000 630,120
Net movement in funds 222,957 125,000 347,957