2020-12-31-accounts - Derwen College

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				Page
Reference and administrative		details ofthe	College, Its Trustees and advisers	1-2
Trustees' report				3-25
Independent auditors'	report	on the financial	statements	26-28
Statement offinancial	activities			29-30
Balance sheet				31 - 32
Statement ofcash flows				33
Notes to the financial	statements			34- 54

		Unrestricted	Restricted	Endowment	Total	Total
		funds	funds	funds	funds	funds
	Note	2020 6	2020 f	2020 6	2020 6	2019
Income:
Donations and legacies		159,830	32,230		192,060	418,212
Charitable activities		8,849,030			8,849,030	9,266,940
Other trading activities		176,406			176,406	442,775
investments		147			147	1,527
Other income		551		584,413	584,964	47,354
Total income		9,185,964	32,230	584,413	9,802,607	10,176,808
Expenditure on:
Raising funds	9	343,984			343,984	570,103
Charitable activities	10	8,936,747	47,341		8,984,088	9,635,035
Total expenditure		9,280,731	47,341		9,328,072	10,205,138
Net
(expenditure)/income		(94,767)	(15,111)	584,413	474,535	(28,330)
Transfers between
funds	18	296,941		(296,941)
Net movement in
funds before other
recognised gains/(losses)		202,174	(15,111)	287,472	474,535	(28,330)
Other recognised
gains/(losses):
Losses on revaluation
offixed assets						(3,001,000)
Actuarial losses on
defined benefit pension
schemes	23					(50,000)
Net movement in funds		202,174	(15,111)	287,472	474,535	('3,079,330)

				Unrestricted	Restricted	Endowment	Total	Total
				funds	funds	funds	funds	funds
	Note			2020	2020	2020f	2020f	2019f
Reconciliation		of
funds:
Total funds	brought
forward			18	1,209,079	641,945	2,580,101	4,431,125	7,510,455
Net movement		in funds		202,174	(15,111)	287,472	474,535	(3,079,330)
Total funds forward	carried			1,411,253	626,834	2,867,573	4,905,660	4,431,125

			BALANCE SHEET	BALANCE SHEET	BALANCE SHEET
			AS AT	31 DECEMBER 2020
						2020		2019
			Note
Fixed assets
Tangible assets						3,636,895		3,845,624
						3,636,895		3,845,624
Current assets
Stocks				15	21,723		26,885
Debtors				16	369,761		296,182
Cash at bank and in	hand				1,550,441		907,244
					1,941,925		1,230,311
Creditors: amounts	due within one year			17	(673,160)		(844,810)
Net current assets						1,268,765		585,501
Total assets less current		liabilities				4,905,660		4,431,125
Net assets						4,905,660		4,431,125
Total net assets						4,905,660		4,431,125

			2020f	2019 Z
Charity funds
Endowment	funds	18	2,867,573	2,580,101
Restricted funds		18	626,834	541,945
Unrestricted	funds	18	1,411,253	1,209,079
Total funds			4,805,660	4,431,125

		STATEMENT OF CASH FLOWS
		FOR THE YEAR ENDED 31 DECEMBER 2020
			Note	2020f	2019
Cash flows from operating		activities
Net cash	used in operating	activities	20	(88,697)	(719,273)
Cash flows from investing		activities
Dividends,	interests and rents from investments			147	1,527
Proceeds	from the sale oftangible fixed assets			550	47,354
Purchase	oftangible fixed assets			(138,803)	(645,424)
Net cash	used in Investing	activities		(138,106)	(597,543)
Cash flows from financing		activities
Proceeds	from the sale of endowed properties			870,000
Net cash	provided by financing activities			870,000
Change	in cash and cash	equivalents in the year	r	643,197	(1,316,816)
Cash and	cash equivalents	at the beginning ofthe year		907,244	2,224,060
Cash and cash equivalents		at the end ofthe year	21	1,550,441	907,244

	Unrestricted	Restricted	Total	Total
	funds	funds	funds	funds
	2020f	2020	2020 6	2019f
Donations	30,990	32,230	63,220	338,472
Grants	128,840		128,840	79,740
	159,830	32,230	192,060	418,212
Total 2019	257,208	161,004	418,212

		Unrestricted	Total	Total
		funds	funds	funds
		2020 6	2020 5	2019f
Training Fees		8,159,912	8,159,912	8,913,908
Miscellaneous	Income	38,065	38,065	24,157
School Income		111,924	111,924	48,582
Short Breaks Income		126,275	126,275	188,840
Rental Income		92,143	92,143	91,453
Job Retention	Scheme Income	320,711	320,711
Total 2020		8,849,030	8,849,030	9,266,940
Total 2019		9,266,940	9,266,940

	Unrestricted	Total	Total
	funds	funds	funds
	2020f	2020f	2019f
Retail	118,186	118,186	195,976
Hospitality	58,220	58,220	245,799
	176,406	176,406	442,775
Total 2019	442,775	442,775

	Unrestricted	Total	Total
	funds	funds	funds
	2020 f	2020 f	2019f
Interest Receivable	147	147	1,527
Total 2019	1,527	1,527

		Unrestricted	Endowment	Total	Total
		funds	funds	funds	funds
		2020 f	2020 f	2020 6	2019f
Sale	ofAssets	551	584,413	584,964	47,354
Total	2019	47,354		47,354

			Unrestricted	Total	Total
			funds	funds	funds
			2020	2020 6	2019f
Retail	and Hospitality	Expenditure	180,328	180,328	341,344
Retail	and Hospitality	Staff Costs	163,656	163,656	228,759
			343,984	343,984	570,103
Total	2019		570,103	570,103

		Activities
		undertaken	Support	Total	Total
		directly	costs	funds	funds
		2020 6	2020	2020	2019f
Education		2,643,072		2,643,072	3,119,900
Care		3,116,880		3,116,880	3,541,195
Administration		765,828	884,995	1,650,823	1,189,762
Campus	&Estates	1,016,078	557,235	1,573,313	1,784,178
		7,541,858	1,442,230	8,984,088	9,635,035
Total 2019		8,270,866	1,364,169	9,635,035

					Campus	&	Total	Total
		Education	Care	Administration	Estates		funds	funds
		2020f	2020f	2020 f	2020		2020f	2019f
Staff costs		2,498,829	2,871,890				5,370,719	5,772,602
Depreciation				61,947			61,947	67,915
Premises &
Ground Costs		24,080	10,177	133,950	732,002		900,209	1,023,755
Equipment
Repairs and
Maintenance		12,939	22,185	12,372	141,839		189,335	183,631
Licences &
Subscriptions		3,985	23,557	64,366	1,869		93,777	68,266
Legal,
Professional	&
Consultation
Costs		19,227	17,358	104,309	150		141,044	220,065
Cleaning and
Consumables		16,649	106,313	1,209	73,600		197,771	248,237
Marketing and
Advertising		3,099		8,634			11,733	32,327
Learning
Equipment	and
Student Activities		40,701	11,827	32,511	12,932		97,971	163,432
Printing
Stationery and
Computing
Consumables		7,112	7,289	215,749		57	230,217	162,026
College Transport		5,854	1,770	51,571		76	59,271	121,949
External
Contractors		547	3,225	41,109	28,801		73,682	112,864
Miscellaneous		10,050	41,289	38,101	24,742		114,182	93,797
		2,643,072	3,116,880	765,828	1,016,078		7,541,858	8,270,866
Total 2019		3,119,900	3,541,195	352,114	1,257,657		8,270,866

			Campus &	Total	Total
		Administration	Estates	funds	funds
		2020	2020 6	2020 6	2019f
Staff	costs	884,995	557,235	1,442,230	1,364,159
Total	2019	837,648	525,521	1,364,169

				2020	2019
Fees payable	to the College's auditor	for the audit ofthe College's	annual
accounts				8,500	8,200
Fees payable	to the College's auditor	in respect of:
All non-audit	services not included above			1,600	1,600

	2020	2019f
Wages and salaries	6,163,641	6,955,353
Social security costs	468,680	549,915
Pension costs	344,284	(f49,739)
	6,976,605	7,355,530

2020	2019
No.	No.

		Freehold	Leasehold	Plant and	Motor
		property	property f.	machinery f	vehicles 6	Total f
Cost or valuation
At 1 January 2020		13,365,212	391,322	553,942	287,610	14,598,086
Additions		7,165	76,458	55,180	~	138,803
Disposals		(696,109)			(33,769)	(729,878)
At 31 December 2020		12,676,268	467,780	609,122	253,841	14,007,011
Depreciation
At 1 January 2020		9,971,637	227,887	298,982	253,956	10,752,462
Charge for the year			8,517	44,082	9,348	61,947
On disposals		(410,522)			(33,771)	(444,293)
At 31 December 2020		9,561,115	236,404	343,064	229,533	10,370,116
Net book value
At 31 December 2020		3,115,153	231,376	266,058	24,308	3,636,895
At 31December 2019		3,393,575	163,435	254,950	33,654	3,845,624
Included in freehold	property	is land at s cost off124,168(2019.		f124,168).

						2020f	2019
Finished	goods	and	goods	for	resale	21,723	26,885

				2020f	2019
Due within one year
Trade debtors				203,395	179,439
Other debtors					820
Prepayments and accrued income				166,366	116,123
				369,761	298,182
Creditors: Amounts		falling due	within one year
				2020 K	2019f
Payments received	on account			130,381	148,704
Trade creditors				248,976	180,505
Other taxation and	social security			110,977	138,431
Other creditors				35,701	30,853
Accruals and deferred		income		147,125	148,317
				673,160	844,810
				2020	2019f
Deferred income at 1		January 2020		9,457
Resources deferred	during the year			19,934	9,457
Amounts released	from previous		periods	(9,457)
				19,934	9,457

							Balance at 31
			Balance at 1			Transfers	December
			January 2020 6	Income	Expenditure f	in/out 6	2020 6
Unrestricted	funds
Designated	funds
Infrastructure	Improvement
Fund					(268,158)	268,158
General funds
General Funds - all		funds	607,526	9,047,161	(8,987,764)		666,923
Fixed asset	fund		601,553	138,803	(24,809)	28,783	744,330
			1,209,079	9,185,964	(9,012,573)	28,783	1,411,253
Total Unrestricted		funds	1,209,079	9,185,964	(9,280,731)	296,941	1,411,253
Endowment	funds
Big Lottery Fund —Ceramics
Building			190,000			(190,000)
Big Lottery Fund —The Acorns			300,000			(300,000)
Fixed asset	fund		2,090,101			175,630	2,265,731
Expendable	Endowment			584,413		17,429	601,842
			2,580,101	584,413		(296,941)	2,867,573
Restricted	funds
Fixed asset	fund		641,945	32,230	(47,341)		626,834
Total offunds			4,431,125	9,802,607	(9,328,072)		4,905,660

Statement offunds	(continued)
Statement offunds	- prior year
						Balance at
	Balance at					31
	1January			Transfers	Gainer	December
	2019f	incomef	Expendituref	inloutf	(Losses)f	2019f
Unrestricted
funds
Designated
funds
Infrastructure
Improvement
Fund	610,962	247,635	(257,044)	(601,553)
General funds
General Funds-
all funds	991,921	9,766,169	(10,152,564)			607,526
Fixed asset fund				601,553		601,553
Pension reserve	2577,000		474,000		(3,051,000)
	3,588,921	9,768,169	(9,678,564)	601,553	(3,051,000)	1,209,079
Total
Unrestricted
funds	4,179,883	10,015,804	(9,935,608)		(3,051,000)	1,209,079
Endowment
funds
Big Lottery Fund
—Ceramics
Building	190,000					190,000
Big Lottery Fund
—The Acorns	300,000					300,000
Fixed asset fund	2,090,101					2,090,101
	2,580,101					2,580,101
Restricted
funds
Fixed asset fund	750,471	161,004	(269,530)			641,945

Analysis	of n	et asse	ts	between fund	s - current period
					Unrestricted	Restricted	Endowment	Total
					funds	funds	funds	funds
					2020	2020	2020	2020
					E	E	E
Tangible	fixed	assets			744,330	626,834	2,265,731	3,636,895
Current	assets				1,340,083		601,842	1,941,925
Creditors	due	within	one	year	(673,160)			(673,160)
Total					1,411,253	626,834	2,867,573	4,905,660

Analysis	of n	et assets between funds	- prior period
			Unrestricted	Restricted	Endowment	Total
			funds	funds	funds	funds
			2019	2019	2019	2019
			E	E	E
Tangible	fixed	assets	601,553	663,970	2,580,101	3,845,624
Current	assets		1,230,311			1,230,311
Creditors	due	within one year	(622,785)	(22,025)		(544,810)
Tl			1,209,079	641,945	2,580,101	4,431,125

					2020 6	2019f
	Net income/expenditure for the period (as	per Statement	of	Financial Activities)	474,535	(28,330)
	Adjustments for:
	Depreciation charges				61,947	87,915
	Returns on investments and servicing	offinance			(147)	(1,527/
	Profit on the sale offixed assets				(584,964)	(47,354/
	Decrease/(increase) in stocks				5,162	(4,322/
	Decrease/(increase) in debtors				(73,580)	274,558
	Increase/(decrease) in creditors				28,350	(508,223)
	Defined benefit pension scheme cost less contributions			payable		(4,000j
	Defined benefit pension scheme finance cost					(73,000)
	Defined benefit pension gain on curtailment					(397,000)
	Net cash used in operating activities				(88,697)	(719,273)
21.	Analysis ofcash and cash equivalents
					2020f	2019 5
	Cash in hand				1,550,441	907,244
	Total cash and cash equivalents				1,550,441	907,244

Principal	actuarial assumptions at the Balance sheet dat	e (expressed as weighted averages):
		At 31	At 31
		December	December
		2020	2019
		0/
Discount	rate	1.40	2.10
Future salary increases		3.10	2.90
Inflation	(RPI)	3.10	2.90
Inflation	(CPI)	2.40	2.10

	At 31	At 31
	December	December
	2020	2019
	Years	Years
Mortality rates (in years)
-for a male aged 65 now	21.8	21.8
-at 65for a male aged 45 now	23.1	23.6
-for a female aged 65 now	23.7	23.6
-at 65 for a female aged 45 now	25.2	25.2

Pension commitments	Pension commitments	(continued)	(continued)	(continued)
The College's share ofthe		assets in the scheme			was:
								At 31	At 31
								December	December
								2020 6	2019f
UK Equities									1,541,000
Overseas Equities									2,731,000
Corporate bonds								2,629,000	3,796,000
Fixed Interest Government			Bonds						5,759,000
International Bonds								14,512,000	2,247,000
Cash and Others								149,000	395,000
Total fair value	ofassets							17,290,000	16,569,000
The actual return	on scheme		assets was	F1,359,000		(2019 - L1,558,000).
The amounts recognised		in the Statement		of Financial		Activities	are as follows:
								2020 E	2019f
Current service cost									(87,000/
Interest cost									72,000
Benefit changes,	gain/(loss)		on curtailment		and gain/(loss)		on settlement	40 000	397000
Total amount recognised			in the Statement of			Financial	Activities	40,000	382,000
Movements in the	present	value ofthe defined			benefit	obligation	were as follows:
									2020
									6
Opening defined	benefit obligation								13,466,000
Contributions by	scheme participants
Admin Expenses
Actuarial Losses									2,227,000
Losses on curtailments
Interest cost									276,000
Benefits paid									(337,000)
Liabilities extinguished		on settlements							(341,000)
Closing defined	benefit obligation								15,311,000

Movements in the	fair value ofthe	College's share ofscheme assets were	as follows',
			2020
Opening fair value ofscheme		assets	16,569,000
Interest income			339,000
Assets acquired	in a business	combination
Assets distributed	on settlements		(301,000)
Contributions by	employer
Contributions by	scheme participants
Benefits paid			(337,000)
Actuarial Gains			1,020,000
Closing fair value ofscheme		assets	17,290,000

cancellable	ope	rating leases as follows'.
			2020	2019
Not later than		1 year	24,721	28,876
Later than	1 year and not later than 5 years		23,929	48,650
			46,650	75,528