Wembley Educational Charitable Trust Annual Report and Financial Statements 31 December 2022 Company regi8tralion number oee81480 (England and Waksl Charity Registration number 1153762
Contents Reports Reference and adminislralive detsils of the charity, ils Trustees and advisers Trustees, report Independent auditor's report Financial statements Statement of financial activities 12 Balan sheet 13 Statement of cash flows 14 Principal accounting policies 15 Notes to the financial statements 18 Wembley Educational Charitable Trust
Reference and administrative detsils of the charity. its Trustees and advisers Trustees Mr Richard Fairbairn Mr Jean-Pierre Muslier Mr Arnaud Vaissié Ms Florence Gomez Registered office 23 Cromwell Road London SIMT 2EL Charlty reglstratlon number 1153762 Company registration number 08681480 (England and Walesl Audltor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers HSBC HSBC Holdings PLC HBEU West London Corpomte 2nd Floor, Space One 1 Beadon Road Hammersmith London W6 OEA Banque Transatlantique 26 Avenue Franklin Roosevelt Pari5 Sollcltors Adam Pery & Co LLP 10 Spaces Business Centre 15-17 Ingale Place London SW8 3NS Stone King LLP 16 St John's Lane London EC1M 4BS Wembley Educational Charitable Trust 1
Trustees. report 31 December 2022 The Trustees presenttheir reportwith the financial statements of the charity forthe year ended 31 December 2022. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors, report for the purposes of company legislation. The accounts have been prepared in accordance with the accounting policies sel out on pages 15 10 17 of the attached accounts and comply with the charitable company's memorandum and articles of association, applicable laws and the requirements of 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 United Kingdom and Republic of Ireland {FRS 1021. Introduction The charity was incorporated as a company limited by guarantee on g September 2013 as Wembley Educational Charitable TrLJSt I'WECT l and obtained charitable status on 11 September 2013. In the event of the winding up of the charity each member guarantees a sum not exceeding £10. Objectives The objectives for which the charity is established are to advance, for the public benefit, the education of pupils In the French education system. The objectives are in particular, but not limited lo, the provision of premises and facilities for schools offering a French or a broader bilingual curriculum in the Wembley area, and ancillary educational and other charitsble activities ft)r the benefit of the community at large. The charity aims lo provide assistance in establishing, maintaining, carrying on, managing and developing such schools. In setting the charity's objectives and planning its activities, the Iruslees have given careful consideotion to the Charity Commission's geneol guidance on public benefit ACHIEVEMENTS AND PERFORMANCE Review of the year Wembley Educational Charitable Trust owns respectively premises in Vvembley that are leased lo Lycée International de Londres Winston Churchill {LILI and premises in Ealing that are leased to Ecole Andre Malraux. As a landlord, WECT therefore collects rents from these o schools. Ecole Andre Malraux is a 200 pupil primary school from 310 10 years old. The school is owned by the French stste Lycée Francais de Londres Charles de Gaulle. The deeply discounted rent was negotiated a few years ago and there is limited interaction with the school apart from insurance, rent and aulhorisation lo do works. Lycée International de Londres Winston Churchill which opened in September 2015 is an all- though school and has a board of governors who meet regularly to make key decisions for the school. Wembley Educational Charitable Trust 2
Trustees. report 31 December 2022 ACHIEVEMENTS AND PERFORMANCE Iconlinuedl Review of the year Icontinuedl The school levels of admission have improved and is approaching 830, although they continue to be below target. Lycée Churchill is still short of around 70 pupils this year in comparison with the initial projection. The school's financial situation therefore remains fragile but has been solidified from a number of cost savings, Including the lower level of rent which has been fixed for the next 30 years. Within the current downgraded economic situation, the school is facing inflats'onary costs and will therefore need lo further adjust its expense's structure linclLJding slaffl. The charity had lolal funds as at 31 December 2022 of £7, 134,00012021- £7,005,000). Once the programme related investments and loan are excluded, the charity had free reserves of £1,115,000 12021 £739,000). The Iruslees are of the opinion that the free reserves are adequate. The amount of cash at bank and in hand was £1,924,000 al 31 December 2022. FINANCIAL REVIEWAND RESERVES During the year, the charity earned rental income of £2,702,000 12021 £2,701,000) and donations of £448,00012021 £447,000>. Totsl income for the year was £3,150,00012021 £3, 152,0001. Costs relating to charitsble activities in the year amounted lo £3,021,00012021 - £6,303,000 and included one off costs of £1,777,000 in respect of the refinancing of the loan). Reserves policy The Iruslees regularly monitor the cash position of the charity to ensure that there are sufficient funds for capital projects and the running of the charity, including the servicing of bank finan. In particular, at the current time, the reserves need lo be sufficient to enable the charity to operate in the current downgraded economic situation. GOVERNANCE. STRUCTURE AND MANAGEMENT Organisation The trustees meet officially in person once a year and the last AGM was held on 26 January 2023. The Trustees also hold conference calls when required and there are at least monthly email exchanges regarding budgets. Any new trustees are inducted regarding their responsibilities and the activities of the WECT through detailed briefings. It is understood that Current Iruslees have a long-term commitment and therefore there are no changes lo the trustees currently envisaged. All trustees have agreed lo adhere to the charity's conflicts of interests, policy and have signed a statement lo this effect. Wembley Eduealional Charitable Trust 3
Trustees. report 31 December 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT Iconlinuedl Trustees The following Iruslees were in office al 31 December 2022 and served throughout the period.. Trustees Mr Arnaud Vaissié Mr Jean-Pierre Mustier Mr Richard Faiibaim Ms Florence Gomez Trustees, field of expertise is complimentary and they have been involved since inception of the Trust. Any new appointments will need the full board approval. Key management personnel The trustees consider that they comprise the key management of the charity in charge of controlling, running, directing and operating the charity. None of the Iruslees receive any remuneration for their servIs. Trustees. responsibilities Statement The Iruslees Iwho a also directors of Wembley Educational Charitable Trust for the purposes of company lawl are responsible for preparing the trustees, report and financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare fi'nancial statements for each financial year which give a true and fair view of the stale of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required lo.. select suitable accounting policies and then apply them consistently., observe the methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland IFRS 1021, make judgements and estimates that are reasonable and prudent., • slate whether applicable United Kingdom Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., and + prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue in operation. Wembley Eduealional Charitable Trust 4
Trustees. report 31 December 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT Iconlinuedl Trustees, responsibilities statement Iconlinuedl The Iruslees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the Iruslees confirms that. so far as the trustee is aware, there is no relevant audit information of which the charity's auditor is unaware,. and the trustee has taken all the steps that he ought to have taken as a Iruslee in order to make himself aware of any relevant audit information and to establish that the charity's auditor is aware of that information. This confirmation is given and should be inlerpreled in accordance with the provisions of s418 ofthe Companies Act 2006. Risk management The trustees have reviewed the risks faced by the charity and have procedures in place to mitigate the risks identified. The key risk to the charity is the level of admissions al the tenant schools, this could be affected by Brexit or the COVID-19 pandemic and could ultimately have the potential lo affect the ability of ils tenant schools to pay their rent in accordance with the lease agreements. The admissions numbers are monitored and the schools themselves are implementing their own communications strategies to ensure the schools operate at as close to full capacity as possible. One aspect of this is the introduction of the English International Programme which stsrted al Lycée Churchill in September 2018. Raising funds The charity does not actively fundraise although it welcomes donations. The charity aims to achieve best practice in the way In which it communicates with donors and other supporters. 11 lakes care with both the tone of its communications and the accuracy of ils data and never sells data, it never swaps data and ensures that communication preferences can be changed al any lime. The charity manages its own fundraising activities and does not employ the services of professional fvjndraisers. The charity undertakes lo react lo and investigate any complaints regarding ils fundraising activities and lo learn from them and improve ils service. During the year, the charity received no complaints about its fundraising activities. FUTURE PLANS Given the limited rent level from Ecole Andre Malraux combined with its solid financial situation, the Trust's priority will focus on supporting the Lycée Churchill's sustainability. A review of possible synergies and collaborations that may lead to cost savings or revenues optimisalion will be carried out in 2023. Wembley Eduealional Charitable Trust 5
Trustees. report 31 December 2022 FUTURE PLANS Iconlinuedl As landlord, WECT will also ensure that the planned maintenance works lo the building are duly implemented and provisioned in the school's budget. The above report has been prepared in accordance with the special provisions as sel out in Financial Reporting Standard FRS102 and Part 15 of the Companies Act 2006 relating to small companies. Approved by the Board of Trustees.. JP Mustier Trustee Approved on.. 12 July 2023 Wembley Eduealional Charitable Trust 6
Independent auditor's report 31 December 2022 Independent auditor's report to the members of Wembley Educational Charitable Trust Opinion We have audited the financial statements of Wembley Educational Charitable Trust (the 'charitable company'l for the year ended 31 December 2022 which comprise the stslemenl of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial slalements. 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 Praclicel. In our opinion, the financial stalemenls.. give a trLJe and fair view of the slate of the charitable company s affairs as at 31 December 2022 and of ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordanTr with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial ststemenls section of our report. We are independent of the charitsble 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 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 concorn 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 lo 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 al least Ie1ve 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. Wembley Educational Charitable Trust 7
Independent auditor's report 31 December 2022 Other infomiation The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial stalemenls, other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, except to the extent otheiSe explicitly staled 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 lo read the other information and, in doing so, consider whether the other information is materialty inconsislenl with the financial stslemenls or our knowledge obtained in the audit or othetwise appears to be materially misstated. If we identify SLJch material inconsistencies or apparent material misslatemenls, we are required to determine whether there is a material misslalemenl in the financial statements or a material misststemenl of the other information. If, based on the work we have performed, we conclude that the 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 the audit.. the information given in the Iruslees, report, which is also the directors, report for the purposes of company law, for the financial year for which the financial statements are prepared is consislenl with the financial slalements., and the trustees, report, which is also the directors, report for the purposes of company law, has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misslalements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you If, In our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Iruslees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled lo prepare the financial statements in accordance with the small companies regime and lake advantage of the small companies, exempb'ons from the requirement lo prepare a strategic report. Wembley Educational Charitable Trust 8
Independent auditor's report 31 December 2022 Responsibilities of trustees As explained more fully in the Iruslees, responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company lawl 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 misstalemenl, whether due to fraud or error. In preparing the financial statements, the Iruslees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Iruslees 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 lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstslement, 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 guamntee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstslement 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 stslements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures In line with our responsibilities. outlined above, lo detect material misstatements in respect to irregularities, including fraud. The exlenl to which our procedures are capable of detecting irregularities, including fraud, is detailed below". How the audlt was consldered capable of detectlng Irregularltles Includlng fraud 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.. * The engagement partner ensured that the engagement team collectively had the appropriate eompetence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., • We identified the laws and regulations applicable lo the charity through discussions with management and from our knowledge and experience of the charity sector,. * We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included bul were not limited lo the Charities Act 2011,. Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordan with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland IFRS 1021 leffeclive 1 January 20191,. and The Companies Act 2006., and Wembley Educational Charitable Trust 9
Independent auditor's report 31 December 2022 Auditor's responsibilities for the audit of the accounts Icontinuedl How the audit was considered capable of detecting irregularities including fraud (continued) + We assessed the extent of compliance with the laws and regulations Identified above through making enquiries of management and those charged with governance and review of minutes of trustees, meetings. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. Making enquiries of management and trustees as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and * Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. * Performed analytical prOdureS to identify any unusual or unexpected relationships., • Tested and reviewed journal entries to identify unusual transactions., • Tested the aulhorisalion of expenditure., * Assessed whether judgements and assumptions made in determining the accounting eslimales were indicative of potential bias., and Investigated the rationale behind significant or unusual transactions. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, bul were not limited to. • Agreeing financial ststemenl disclosures to undedying supporting documentation", + Reading the minutes of meetings of trustees., and Enquiring of as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial Iransaclions, the less likely il 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 lo enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstalemenls that arise due to fraud can be harder to delect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al www.trc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Wembley Educational Charitable Trust 10
Independent auditor's report 31 December 2022 Use of our report This report is made solely to the charitsble 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 stale lo the charitable company's members those mallers we are required to slate to them in an auditor's report and for no other purpose. To the fullest extent permilled 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 auditwork, for this report, or for the opinions we have formed. Catherine Biscoe (Senior Statutory Audilorl For and on behalf of Buzzacott LLP, Slatulory Auditor 130 Wood Street London EC2V 6DL Dale: 19th July 2023 Wembley Educational Charitable Trust 11
Statement of financial activities Year ended 31 December 2022 2022 Total funds £'ooo 2021 Total funds £'o(xJ Notes Income and expendlture Income from.. Donations and legacies Charitable activities Provision of premises and facilities Interest re1vable Bank interest reIvable Total incom8 447 2,702 2,701 3.150 3,152 Expenditure.. Expenditure on charitable activities Provi510n of piemise5 and facilities Total 8XP8nditure 3.021 3.021 6,004 6,004 Net in¢ome lexpenditurel 129 12.8521 Net income (expendire) and net movement in fund¥ 129 12.8521 Reconclllatlon of funds.. Total funds brought forward at 1 January 2022 7.005 9,857 Totsl fund¥ carried forward at 31 December 2022 7,134 7,005 All of the charity's activities derived from continuing operations during the above Iwo financial periods. All recognised gains and losses are included in the above statement of financial activities. All funds of the charity are unrestricted. The notes on pages 18 to 22 form part of these fi'nancial statements. Wembley Educational Charitable Trust 12
Balance sheet 31 December 2022 2022 £'ooo 2021 £'ooo Notes Fixed a85ets Programme related investsnents 4S,271 48,300 Non-currnnt assèts Debtors 2,021 2,021 2.064 2.064 CUrnt assets Debtors Cash at bank and in hand 10 83 1,924 2,007 87 1,572 1.659 Liabilities: CieditOlS'. 8mount5 falling due within on8 y88r 11,7461 11,7441 Net current Se1 (liabiliti) 261 1851 Total assets less current liabilities 47,553 48,279 Creditors- amounts falling due after one year 12 140,4191 141,2741 Total net assets 7,134 7,005 The funds of thè eharity= Unrestricted funds Total charitable funds 7,134 7,134 7.005 7.005 Approved by the Trustees and signed on their behalf by". JP Muslier Approved on.. 12 July 2023 Wembley Educational Charitable Trust Company Registration Number 08681480 (England and Wales) Wembley Educational Charitable Trust 13
Statement of cash flows 31 December 2022 2022 £'ooo 2021 £'ooo Notes Cash flow frorn op8ratin9 activities.. Net cash provided by (used inl operating activities 1,177 18351 Cash flow from financing activities.. Repayment of boriowing Net cash used In financlng actlvltles 18251 18251 14,0591 14,0591 Changè in eash and eash èquivalènts in thè y•ar 352 14,8941 Cash and cash equivalents at 1 January 2022 1,572 6,466 Cash and cash equivalents at 31 December 2022 1,924 1,572 Notes to the cash flow 8tstement ft)r the year to 31 December 2022. A ReconcSllatlon of net movement In funds to net cash flow from operatlng actlvltles 2022 £'ooo 2021 £'ooo Net movem8nt in funds las per th8 stat8ment of financial aetivitiesl Adjustments for: Impaiment of programme related investments Decrease in debtors (Decrease) in creditors Write off ol Asset5 und81 construction Net cash provided by lused inl operating activities 129 12,8521 1,029 47 1281 1,645 449 11601 83 1,177 18351 B Analysls of cash and cash equlvalents 2022 £'ooo 2021 £'ooo Cash at bank and in hand Total cash and cash equivalents 1.924 1,924 1,572 1,572 C Analysis of changes in net debt At31 December 2022 £'ooo At 1 January 2022 Cash flows £'ooo £'ooo Cash 1,572 352 1,924 Loans falling due within one year Loans falling due after more than one year Total 18241 141,2741 140,5261 1301 855 1,177 1854 140,4191 139,3491 Wembley Educational Charitable Trust 14
Principal accounting policies 31 December 2022 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below. Basls of preparatlon These financial statements have been prepared for the year to 31 December 2022, wth comparative information for the year ended 31 December 2021. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise slated in the relevant accounting policies below or the notes lo these financial stslements. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland Icharities SORP FRS 1021 issued on 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Charities Act 2011. The charity conslitules a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest thousand pounds. Critical accounting estimates and areas of judgement Preparation of the accounts requires the trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include the valuation of programme related investment properties. Estimates used in the accounts, particularly with respect to the value of programme related investment properties are subject lo a greater degree of uncertainly and volatility. Assessment of going concern The Iruslees have assessed whether the use ofthe going concern assumption is appropriate in preparing these accounts. The Iruslees have made this assessment in respect lo a period of one year from the dale of approval of these accounts. Income recognition Income is recognised in the period in which the charity has entillemenl to the income, the amount of income can be measured reliably and il is probable that the income will be received. Income comprises donations, rentsl income and interest receivable. Wembley Educational Charitable Trust 15
Principal accounting policies 31 December 2022 Income recognition Iconlinuedl Corporate donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled lo the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilmenl of those conditions is wholly within the control of the charity and il is probable that those conditions will be fulfilled in the reporting period. Rentsl income on assets leased under operating leases is recognised on a straight line basis over the lease temi. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally on nolificalion of the interest paid or payable by the bank. Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation commilling the charity lo make a payment to a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned lo the applicable expenditure headings. The classification beeen activities is as follows.. * Expenditure on raising funds includes all expenditure associated with raising funds for the charity. • Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitsble aclivilies. Such costs include direct and support costs in respect to the provision of premises and facilities for schools offering a French or broader bilingual curriculum in the Wembley area and providing assistance with estsblishing, maintaining, managing and developing such schools, including governance costs. Allocatlon of support and governance costs Support costs represent Indirect charitable expenditure. In order to cary out the primary purposes of the charity il is necessary lo provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitsble working environment. Governance costs comprise the costs involving the public awounlability of the charity (including audit costs) and costs in respect lo its compliance with regulation and good pmctice. Support costs and govemance costs are apportioned based on the proportion of time spent on the activity. Wembley Educational Charitable Trust 16
Principal accounting policies 31 December 2022 Programme related investments Programme related investments comprise freehold property used by other charitable organisalions for purposes consistent with the charity's objectives. They are slated at fair value. The properties are periodically independently valued by a professional chartered surveyor on a fair value basis which lakes into consideration rental charge and the current use of the premises as schools. The value is considered each year and any impairment is written off and treated as charitable expenditure in the statement of financial activities. Debtors Debtors are recognised al their settlement amount, less any provision for non-recoverabilily. Prepayments are valued al the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of aequisilion. Credltors and provlslons Creditors and provisions are recognised when there is an obligation al the balance sheet date as a result of a past event, it Is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimaled reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted lo the present value of the future cash payment where such discounting is material. Bank loans are a basic fi'nancial instrument and are recognised al their transaction value, which is normally the principal amount advanced plus transaction costs. Subsequent lo initial recognition, loans are staled at amortised cost with any difference beeen cost and redemption value being recognised through the statement of financial activities using the effective interest method. Funds structure The funds of the charity are unrestricted and can be expended al the dIretIOn of the trustees in line with the governing document of the charity. Wembley Educational Charitable Trust 17
Notes to the financial ststements 31 December 2022 1 Income from donatlons and legacles 2022 Total funds £'ooo 2021 Total funds £'ooo Cash donation reiVed from Kentish Town Education Charitable Trust Total funds 447 447 2 Income from charltable actlvltles 2022 Total funds £'ooo 2021 Total funds £'ooo Rental income 2,702 2,701 3 Expenditure on charitable activities 2021 Total Support funds costs £'ooo £'OOO Irestatedl 2022 Total funds £'ooo D1ct Support costs costs £'ooo £'ooo Direct costs £'ooo Provision of premises and Charitable donations Governance costs (note 41 Accountancy Interest P8yable Bank charges Legal and professional Costs in respect of sports hall written off Premises costs Impaitment of progratllme related investrnent Total funds 107 107 329 16 1.483 86 86 388 16 1.941 1,777 14 329 16 388 16 1,483 1.941 1,777 14 90 90 47 55 5S 47 1,029 2,621 1.029 3,021 1,645 5,539 1,645 6,004 400 465 The 2021 figures have been reslaled to reanalyse costs beeen charitable donations and governance costs. 4 Governance costs 2022 Total funds £'ooo 2021 Total funds £'ooo Legal and professional fees Administrative fees 10 378 388 320 329 Wembley Educational Charitable Trust 18
Notes to the financial ststements 31 December 2022 5 Staff costs, remuneratlon of key management and trustees expenses and remuneration The charity employed no staff during the period12021 none). The key management personnel of the charity in charge of directing and controlling, running and operating the charity comprises the trustees. None of the trustees received any remuneration for their services during the period. No trustees were reimbursed for expenses incurred relating to travel and accommodation in the performance of their duties. 6 Net income and net movement in funds This is slated after charging.. 2022 Total funds £'ooo 2021 Total funds £'ooo Auditorfs remuneration 12 7 Taxation Wembley Educational Charitsble Trust is a registered charity and therefore is not liable lo income lax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available lo registered charities. The charity registered for Value Added Tax in August 2016 with the effective date of 30 September 2013. Therefore expenditure is recorded exclusive of VAT where applicable. 8 Investments Prograrnm8 Progiamme related related Investment investment property property 2022 2021 £'ooo £'ooo At 1 January Impairment At 31 December 46,300 11.0291 45,271 47,945 11,6451 46,300 The original property 154 Foty Lane, Wembley Park, HAO 9HDI is rented to Lyceé International de Londres Winston Churchill, a registered charity, for purposes consistent with the charity's objectives,. running a bilingual (French and English) school in Wembley, therefore the propety is classified as a programme related investment. In 2019 Ealing Educational Charitable Trust transferred the Ecole Andre Malraux building lo the charity. The property is let for purposes consistent with the charity's objectives., running a bilingual (French and English) school in Ealing, therefore the property is classified as programme related investment. Wembley Educational Charitable Trust 19
Notes to the financial ststements 31 December 2022 8 Investments Icontinuedl On 31 December 2021 the properties in Ealing and Wembley were valued by Gerald Eve LLP. The valuations were prepared In accordance with the requirements of the Royal Institution of Chartered SueY0rs IRICSI Valuation Global Standards 2022 and the national standards and guidance set out in the UK national supplement (November 20181, the International Valuation Stsndards and Financial Reporting Standard 102. On 31 December 2022 the property in Wembley was valued by Gerald Eve LLP and the trustees have used this valuation to inform their assessment of the value of the propety in Ealing. 9 Debtors: amounts falllng due after one year 2022 £'ooo 2021 £'(K)O Other debtors 2.021 2,064 Other debtors in both current and long-term debtors late to 8 deposit held by ANEFE as security against the bank loan Inole 131. 10 Debtors: amounts falling due within one year 2022 £'ooo 2021 £'CK)O Trade debtois Other debtors 74 83 78 87 11 Creditors: amounts falling due within one year 2022 £'ooo 2021 £'(K)O Trade creditors Defer18d Income Accruals Bank loan Inote 131 VAT liability 35 667 48 854 142 1,746 1Crf) 667 824 140 1,744 Income has been deferred because Wembley Educational Charitable Trust received rent from Lycée International de Londres VVThnslon Churchill in December 2022 for the period covering 1 January 2023 10 31 March 2023, therefore this income will appear in next year's accounts ending 31 December 2023. The movements in deferred income are analysed below.. 2022 £'ooo 2021 £'coo Bioughl forward Released in year Deferied In year 667 16671 667 667 667 16671 667 667 Wembley Educational Charitable Trust 20
Notes to the financial ststements 31 December 2022 12 Credltors: amounts falllng due after one year 2022 £'ooo 2021 £'(K)O Bank loan Inote 131 40,419 41,274 During the prior year the terms of the loan with Banque Transallantique were renegotiated. The total loan facility from 23 July 2021 was reduced to £42.5m on a 30 year term expiring June 2051 at a fixed rale of interest of 3.549 /o.The French Slate has guaranteed the repayment of the loan up lo the value of £47 million. The deposit held by ANEFE forms part of the security against the loan. 13 Loans Loans repayable, included within creditors are analysed as follows.. 2022 £'ooo 2021 £'ooo Vvholly repayable." within five years Not wholly repayable.. within five years 5,610 35,664 41,274 5,415 36,683 42,098 14 Related party transactions KT Educational Charitable Trust Three of the charity's trustees are also trustees of KT Educational Charitable Trust (Company Registration Number 07057043 England and Wales). During the current year, Wembley Educational Charitable Trust paid for administrative fees of £107,072 12021 £86,152) incurred by KT Educational Charitsble Trust. This has been treated as a donation in the year. Wembley Educational Trust received donations of £448,00012021'. £447,000) from KT Educational Charitable Trust during the year. Lyceé Intemational de Londres Rent of £2,666,66712021- £2,666,667) for the year ended 31 December 2022 was charged to Lyceé International de Londres. Al 31 December 2022 £667,000 12021 £667,000) of rent relating lo 2022 had been received and is included in creditors. Lyceé International de Londres is a registered charity (Company Registration Number 09033139 England and Wales) which has a common trustee, Mr Vaissié, with Wembley Educational Charitable Trust. In his roles Mr Vaissié acts in a manner which will avoid any conflicts of interests. Wembley Educational Charitable Trust 21
Notes to the financial ststements 31 December 2022 15 Net assets The total unrealised gains as at 31 December 2022 constitutes movements on revaluation and are as follows.. 2022 £'ooo 2021 £'ooo Unreali8ed gains.. On programme related investment properties Total unrealised gains at 31 December 2022 4,308 4,308 5,337 5,337 Reconciliation of movement in unrealised gains: Unrealised gains at 1 January 2022 Impairrnent Total unrealised gains at 31 De¢ember 2022 5.337 11,0291 4.308 6,982 11.6451 5,337 Wembley Educational Charitable Trust 22