2020-07-31-accounts

Charity Registration No. 1158886

BUILDING HEROES EDUCATION FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

BUILDING HEROES EDUCATION FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Board Of Trustees

Board Of Trustees P J J Bradbury D L Porter D Barling A Foster M J Betteridge (Appointed 15 February 2020) R Tucker MBE (Appointed 27 March 2020) Lt Cdr N Atkins (Appointed 17 January 2020) P Findlay (Appointed 15 May 2020) Charity number 1158886 Independent examiner William Daniels FCA, CTA Suite 11 33-34 Gleaming Wood Drive Chatham Kent ME5 8RZ

BUILDING HEROES EDUCATION FOUNDATION

CONTENTS

	Page
Board's report	1 - 4
Statement of Board's responsibilities	5
Independent examiner's report	6 - 7
Statement of financial activities	8
Balance sheet	9 - 10
Notes to the financial statements	11 - 21

BUILDING HEROES EDUCATION FOUNDATION

BOARD'S REPORT

FOR THE YEAR ENDED 31 JULY 2020

The Board of Trustees present their report and financial statements for the year ended 31 July 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution , the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects are:

1. For the public benefit to advance the education of (a) ex-armed forces personnel and members of their immediate families and (b) socially and/or economically disadvantaged persons aged 18 and over and (c) other persons who may wish to attend educational courses provided by the Charity for the persons set out in (a) and (b) above in Construction and Horticultural Skills in such ways as the charity trustees think fit, including by providing their education and preparing them for entry to any occupation, trade or profession.

2. To advance in life and help young people through providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals.

3. To promote social inclusion for the public benefit amongst people aged 18 and over who are socially excluded and by preventing ex-armed forces personnel from becoming socially excluded and relieving the needs of those people who are socially excluded and assisting them to integrate into society.

The Board of Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

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BUILDING HEROES EDUCATION FOUNDATION

BOARD'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

We came into the year operating at five centres and leave with ten centres operational and more planned to be added early in the next year. Wiltshire College, Salisbury was added in November 2019 with 55 learners graduating in the academic year. Learning Curve Group, Middlesbrough was added in January 2020 with 18 learners graduating. South Thames College, Wandsworth was added in March 2020 with 12 graduating. A single cohort was taught at Sherford Training Centre, near Plymouth and another at the Train4All centre in Somerton, Somerset. As well as these centres delivering our Foundation in Property Management programme, we extended our offer to include a basic Engineering programme in partnership with Colchester Institute on their Harwich campus, the learners studied the Introduction to Engineering Operations Level 2 Diploma course which includes welding and fabrication, all achieved their required pass percentage. We are hoping to offer this course again and to find other locations for similar delivery. These additions follow our strategy to locate training centres near the large volumes of serving personnel as well as large number of veterans. This has led to very healthy numbers attending from day one at each centre.

Unfortunately, due to COVID-19 there was no College based delivery during the Summer Term losing us over 250 places.

Overall training volumes numbered 28 cohorts containing 320 learners for the academic year 2019-120, a 13% increase in learners over the previous year. However, had we delivered all our potential courses we would have delivered 570 places an increase of over 100%. With the uncertainty surrounding College opening during the pandemic, it is difficult to predict numbers for the next academic year, if we are fully open we expect to be able to offer over 750 places.

Applications for all our courses is currently running in excess of 1,200 per year generating a significant waiting list but with expansion plans we hope we will be able to satisfy that level of demand within one to two years.

We continue to be able to draw upon the Adult Education Budgets of the partner colleges to fund training for the financial year 2020-21 thereby significantly reducing the financial burden on the charity. All residential costs were met by contributions from other charities including the Royal British Legion, SSAFA and many of the relevant Regimental Funds.

We have been able to qualify for ESF funding from Coast to Capital LEP, Middlesbrough Council, Wiltshire Council. Wandsworth Council and the Paddington Development Trust to cover certain of the costs of our programmes. We have also been able to draw sub-contracted funding from the Construction Skills Fund to cover other costs incurred in the delivery of our programme.

Our collaboration with FIS, the finishes and interiors sector body, continues to enable us to access additional funding to cover our costs. We are very thankful for this on-going relationship.

We have received support from a number of donors including, The David Wilson Foundation, The Veterans Foundation, The Royal British Legion, Tesco, Frimley Golf Club, as well as a number of smaller organisations and private individuals.

Particularly welcome this year was several COVID Support grants, we have been fortunate to be awarded funds by the Armed Forces Covenant Trust, The National Lottery Community Fund, The Veterans Foundation and Horsham District Council, without this support it would have been very difficult to continue operations.

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BUILDING HEROES EDUCATION FOUNDATION

BOARD'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

Achievements and performance

We continue to examine expansion into further programmes including Groundworks and Civils and An Introduction to the Built Environment. We have been fortunate to find an employer to work with us on the Groundworks & Civils programme and will be working with Ringway/Eurovia in the next academic year to commence delivery. Interest has also been shown by Costain in this programme and discussions are underway.

Future plans are very exciting. Further expansion is planned with delivery on active Construction Sites. Dubbed Building Heroes 2.0 this concept has been well received by developers and contractors seeking solutions to the skills shortage in their supply chains. Initial discussion are underway with six sites and COVID permitting we would like to see this initiative open for business during the next academic year. Davidsons Group from Leicestershire are looking the most likely candidate as the first implementation.

Having now graduated over 900 learners in our history we are now examining the possibility of creating a trading organisation, staffed by our graduates and other Veterans, offering direct to the consumer and business to business property maintenance services. This business idea will be pursued in the next business year. Successfully launched it is believed that this business operation could provide all the funding necessary to run the charity going forward.

We end 2019-20 in a much healthier position than we came in with volumes increasing and new sources of funds available to us, planned volume for 2020-21 is 750 learners across our ten partner colleges. New delivery centres using the FE College model are planned in the East and West Midlands as well as South Wales and maybe Scotland. Some of these may be BH2.0 sites depending on the demand from contractor/developers.

The Trustees have strengthened with now eight appointed covering a wider geographical spread which will enable stronger regional links. The Trustees have now also formally appointed a Vice Chairman. We believe each of these actions will improve our overall Governance.

From humble beginnings Building Heroes has grown to be the largest Military to Construction Charity in the UK whether measured by beneficiaries or turnover, by adopting a collaborative approach we are heavily embedded in the body of Military Charities supporting our beneficiaries, s a member of COBSEO we are involved in creating a healthier and happier future for all Military Veterans, the future looks very positive.

Financial review

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Board of Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The Charity has a very substantial deficiency of funds, but has secured unsecured, interest free and long term finance which it considers will be sufficient to enable it to continue its operations.

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BUILDING HEROES EDUCATION FOUNDATION

BOARD'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

The Board of Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The Charity is a charitable incorporated organisation established under its constitution dated 1 October 2014 and registered with the Charity Commission on 16 October 2014.

The Board of Trustees who served during the year and up to the date of signature of the financial statements were:

P J J Bradbury D L Porter Air Marshal S K Reynolds CBE DFC RAF (Resigned 11 September 2019) D Barling A Foster Lt Col C More (Resigned 11 September 2019) M J Betteridge (Appointed 15 February 2020) R Tucker MBE (Appointed 27 March 2020) Lt Cdr N Atkins (Appointed 17 January 2020) P Findlay (Appointed 15 May 2020)

E very trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees in accordance with its constitution . In selecting individuals for appointment as charity trustees, the charity trustees have regard to the skills, knowledge and experience needed for its effective administration.

None of the Board of Trustees has any beneficial interest in the Charity. All of the Board of Trustees are members of the Charity. They have no liability in the event of a winding up.

The Board's r eport was approved by the Board Of Trustees.

P J J Bradbury Trustee Dated: 25 March 2021

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BUILDING HEROES EDUCATION FOUNDATION

STATEMENT OF BOARD'S RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2020

The Board of Trustees are responsible for preparing the Board's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Board of Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Board of Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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BUILDING HEROES EDUCATION FOUNDATION

INDEPENDENT EXAMINER'S REPORT

TO THE BOARD OF TRUSTEES OF BUILDING HEROES EDUCATION FOUNDATION

I report to the Board of Trustees on my examination of the financial statements of Building Heroes Education Foundation (the Charity) for the year ended 31 July 2020.

Responsibilities and basis of report

As the Board of Trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

William Daniels FCA, CTA

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BUILDING HEROES EDUCATION FOUNDATION

INDEPENDENT EXAMINER'S REPORT (CONTINUED)

TO THE BOARD OF TRUSTEES OF BUILDING HEROES EDUCATION FOUNDATION

Suite 11 33-34 Gleaming Wood Drive Chatham Kent ME5 8RZ

Dated: 25 March 2021

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BUILDING HEROES EDUCATION FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2020

		Unrestricte	Restricted	TotalUnrestricted	TotalUnrestricted	Restricted	Total
		d
		funds	funds		funds	funds
		2020	2020	2020	2019	2019	2019
	Note	£	£	£	£	£	£
	s
Income from:
Donations and
legacies	3	112,279	92,000	204,279	45,553	96,370	141,923
Charitable activities	4	265,759	-	265,759	137,535	-	137,535
Other trading
activities	5	20,220	-	20,220	310	-	310
Total income		398,258	92,000	490,258	183,398	96,370	279,768
Expenditure on:
Raising funds	6	5,337	-	5,337	732	-	732
Charitable activities	7	209,151	28,287	237,438	126,640	108,829	235,469
Total resources
expended		214,488	28,287	242,775	127,372	108,829	236,201
Net income for the year/
Net movement in funds		183,770	63,713	247,483	56,026	(12,459)	43,567
Fund balances at 1
August 2019		(303,375)	29,135	(274,240)	(359,401)	41,594	(317,807)
Fund balances at 31
July 2020		(119,605)	92,848	(26,757)	(303,375)	29,135	(274,240)

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

All income and expenditure derive from continuing activities.

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BUILDING HEROES EDUCATION FOUNDATION

BALANCE SHEET

AS AT 31 JULY 2020

Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year Loans and overdrafts 13 Taxation and social security Other creditors 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Net liabilities Income funds Restricted funds 16 Unrestricted funds	2020 £ £ 5,592 23,995 232,473 256,468 60,000 3,094 52,115 115,209 141,259 146,851 (173,608) (26,757) 92,848 (119,605) (26,757)	2019 £ £ 146 30,375 39,766 70,141 - 1,777 39,142 40,919 29,222 29,368 (303,608) (274,240) 29,135 (303,375) (274,240)

The financial statements were approved by the Board Of Trustees on 25 March 2021

P J J Bradbury Trustee

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BUILDING HEROES EDUCATION FOUNDATION

BALANCE SHEET (CONTINUED)

AS AT 31 JULY 2020

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

1 Accounting policies

Charity information

Building Heroes Education Foundation is a charitable incorporated organisation established under its constitution dated 1 October 2014 and registered with the Charity Commission on 16 October 2014 .

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's constitution, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts 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 Going concern

These financial statements are prepared on the going concern basis. The Board of Trustees have a reasonable expectation that the Charity will continue in operational existence for the foreseeable future, however, the Board of Trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern. It is reliant on unsecured, interest free long term loan funding and has been assured that no repayment will be sought until funds permit.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Board of Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

1 Accounting policies

(Continued)

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably.

Expenditure on generating funds comprises the direct costs incurred by the charity in generating funds .

Expenditure on charitable activities comprises the direct costs incurred by the charity in delivering its charitable objectives.

1.6 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:

Computers 33% pa

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 net income/(expenditure) for the year.

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

1 Accounting policies

(Continued)

1.7 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 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.

1.9 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 and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts 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.

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

1 Accounting policies (Continued)

Derecognition of financial liabilities

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

1.10 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.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Board of Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

3 Donations and legacies

Unrestricted Restricted Total funds funds 2020 2020 2020 £ £ £ Donations and gifts 24,062 - 24,062 Support grants 88,217 92,000 180,217 112,279 92,000 204,279 For the year ended 31 July 2019 45,553 96,370 4 Charitable activities 2020 £ Services provided under contract 265,759 5 Other trading activities Unrestricted funds 2020 £ Fundraising events 20,220	Total 2019 £ 45,553 96,370 141,923 141,923 2019 £ 137,535 Total 2019 £ 310

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

6 Raising funds Unrestricted funds 2020 £ Fundraising and publicity Staging fundraising events 5,337 5,337	Total 2019 £ 732 732

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

7 Charitable activities

Staff costs Depreciation and impairment Training projects Advertising Rent Travel and subsistence Telephone and internet Computer costs Insurance Bank charges Provision for bad and doubtful debts Consultancy and professional costs Other staff costs Other office expenses Miscellaneous costs Share of governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds	2020 £ 146,523 1,458 42,360 2,581 6,240 8,887 4,432 8,022 524 412 - 6,463 19 549 5,368 233,838 3,600 237,438 209,151 28,287 237,438	2019 £ 128,589 276 72,577 1,596 6,240 10,359 3,790 2,901 444 237 500 1,141 - 524 3,655 232,829 2,640 235,469 126,640 108,829 235,469

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

8 Support costs

Support costs Governance costs £ £ Legal and professional - 3,600 - 3,600 Analysed between Charitable activities - 3,600	2020 £ 3,600 3,600 3,600	2019 £ 2,640 2,640 2,640

9 Board Of Trustees

None of the Board of Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Employees

The average monthly number of employees during the year was:

	2020	2019
	Number	Number
	7	7
Employment costs	2020	2019
	£	£
Wages and salaries	137,741	120,298
Social security costs	6,214	5,624
Other pension costs	2,568	2,667
	146,523	128,589

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

11 Tangible fixed assets Cost At 1 August 2019 Additions At 31 July 2020 Depreciation and impairment At 1 August 2019 Depreciation charged in the year At 31 July 2020 Carrying amount At 31 July 2020 At 31 July 2019 12 Debtors Amounts falling due within one year: Trade debtors 13 Loans and overdrafts Other loans Payable within one year Payable after one year	Computers £ 828 6,904 7,732 682 1,458 2,140 5,592 146 2020 2019 £ £ 23,995 30,375 2020 2019 £ £ 233,608 303,608 60,000 - 173,608 303,608

The long term loans are unsecured, interest free and only repayable when funds permit.

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

14 Other creditors falling due within one year Trade creditors Accruals and deferred income 15 Creditors: amounts falling due after more than one year Borrowings	2020 £ 2,846 49,269 52,115 2020 £ 173,608	2019 £ 26,178 12,964 39,142 2019 £ 303,608

16 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
	Balance at	Incoming	Resources	Balance at 31
	1 August	resources	expended		July 2020
	2019 £	£	£		£
David Wilson Foundation - East Midlands
training	-	67,000	(8,000)		59,000
Veterans Foundation - staff for geographical
expansion	-	25,000	-		25,000
BFBS Big Salute - Workwear	22,917	-	(14,069)		8,848
Armed Forces Covenant - Employment
engagement	4,718	-	(4,718)		-
Robert Clutterbuck Charitable Trust -
Workwear	1,500	-	(1,500)		-
	29,135	92,000	(28,287)		92,848

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BUILDING HEROES EDUCATION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

17 Analysis of net assets between funds

	Unrestricte	Restricted	TotalUnrestricted	TotalUnrestricted	Restricted	Total
	d 2020	2020	2020	2019	2019	2019
	£	£	£	£	£	£
Fund balances at 31
July 2020 are
represented by:
Tangible assets	5,592	-	5,592	146	-	146
Current assets/
(liabilities)	48,411	92,848	141,259	87	29,135	29,222
Long term liabilities	(173,608)	-	(173,608)	(303,608)	-	(303,608)
	(119,605)	92,848	(26,757)	(303,375)	29,135	(274,240)

18 Contingent liabilities

The Charity has entered into a collaborative partnership with on of it s major providers of tuition services, Chichester College Group. The College claims that the Charity owes £1 07 ,000 in respect of past services provided. The Charity disputes the claim which it considers is excessive. Under the agreement the Charity will source and coordinate qualifying learners in exchange for which the College will, subject to agreed targets being met, waive its disputed claim.

19 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

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