OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Company registration number: 09242372 Charity registration number: 1163266

Entrain Space Trust

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2023

MMO Limited Wellesley House 204 London Road Waterlooville Hampshire PO7 7AN

Entrain Space Trust

Contents

Reference and Administrative Details 1
Strategic Report 2
Trustees' Report 3 to 5
Independent Auditors' Report 6 to 8
Statement of Financial Activities 9 to 10
Balance Sheet 11
Notes to the Financial Statements 12 to 22

Entrain Space Trust

Reference and Administrative Details

Trustees Mr K Bell
Mr M Pountain
Mr M Bell
Mr S M Heatley
Mr R A Fleming
Charity Registration Number 1163266
Company Registration Number 09242372
The charity is incorporated in England.
Registered Office Erskine House
Buckeridge Road
Wilton
SP2 0FX
Auditor MMO Limited
Wellesley House
204 London Road
Waterlooville
Hampshire
PO7 7AN

Page 1

EntralD Space Trust strat￿ll¢ Report for the Year Ended 31 March 2023 Th¢ tNths, who are dittctor8 for the purpose5 of company law. present their St￿te￿.C report for the yw ended 31 Mar¢h 2023, in eompliance with s414C of th¢ Companies A¢t 2006. FIna￿Cial revlejv Policy on Menys Th¢ ¢haTity iy co]Dmitted to reiaining suffi¢ient cash re8ery¢sin ternjg of cash ba]an¢es and kt￿wn committed in¢¢)rne to cov¢r operatin8 expenditure for 3 month& Th¢s appmved by the trust¢¢5 of the ¢lwity on 2L}.:/Ii . and si8ned oft its behalf by.. Page 2

Entrain Space Trust

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2023.

Objectives and activities

Objects and aims

The promotion and provision for public benefit of housing, training, employment and welfare services for the serving military, service leavers, veterans, their families and communities covering the United Kingdom. The provision of community housing, assets, services and facilities run by service leavers and veterans for wider social and community regeneration and social good and such other charitable purposes as the Trustees in their absolute discretion may determine.

Referrals have been consistently high this year as we strengthen relationships with military welfare services ‘inside the wire’ and promote our service in social media. Our Multiagency partnership has grown, with new partners being added and more joined up service delivery between them and our in-house team now in full swing. Funding for the employment support and peer mentoring support remains a challenge but we intend to focus on closer ties with the regimental associations and military charities to help plug some of those gaps in 2024. We have successfully launched our new ENTRAK bespoke software package to support our case work, rental information management and training and employment support programmes. Whilst the interest rate rises have been a challenge, it is one that has been managed

Public benefit

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Mr K Bell Mr M Pountain Mr M Bell Mr S M Heatley (appointed 13 July 2022) Mr R A Fleming (appointed 13 July 2022)

Page 3

Entrain Space Trust

Trustees' Report

Structure, governance and management Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity's activities expose it primarily to the financial risks of low level occupancy in the 44 apartments. In spite of the Covid pandemic high occupancy levels have been maintained and the Trustee's policy of bolstering reserves continues.

Credit risk

The charity's principal financial asset is Erskine House, The building comprises 44 accomodation units, an integrated cafe and training facility. The building has been independently valued at £5,065,000 . The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

Statement of trustees' responsibilities

The trustees (who are also the directors of Entrain Space Trust for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. 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 charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Page 4

Entrain Space Trust Tru$tees' Report The ttu8tees ￿sponSIble for keeping Proper aeeounting re¢ords that ¢8tt disclose with reasonable 8ccurttcy at any tim¢ the fin&n¢iat position of the charitable Company and ¢TJable them to ensure that the financial Stater1￿￿￿ Comply with the Companie& Act 2006. They are ￿80 responyible for $8feguarding the assets of the charitable eompany 8nd hence for taking regsonable step5 for the prevention and detection of fraud and other irregularities. The ￿5t¢¢8 are Te8rrt)ngible for the tDaintenan¢e aDd inlegTity of the eoryioyat¢ thrd Ilnan¢ial infornjation included on the charitable compan￿$ website. legislation governing the prepayation ¥nd di88emiuation of fin￿1claI 8tstements inay differ from legislation in other juri5di¢tion8. DI1d￿Vre •f informtlon to audltor Each tustee b&8 tsk¢n steps that they ought to have tsken as a trustee in order to rn&ke themselves aware of r¢l¢v4nt a￿lIt infonnatiott and to establish that th¢ ¢harity's auditor is aware of that inforEn&tion. The 1rn8tees eonfirnl that there is no relevant iDfornFation ttwt th¢y know of of which they know the auditor 1$ unthware. ReY4ppollltmettt of 4uditor Th¢ auditors MMO Limited are deemed to be r¢apN)int¢d under wtion 487{2) of th¢ Conlpgnies Act 2006. The ann approved by the Inwtee8 of the clwity on....... .. ..... . 4nd sigthed on its behalf by.. Page 5

Entrain Space Trust

Independent Auditor's Report to the Members of Entrain Space Trust

Opinion

We have audited the financial statements of Entrain Space Trust (the 'charity') for the year ended 31 March 2023, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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 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 original financial statements were 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

Entrain Space Trust

Independent Auditor's Report to the Members of Entrain Space Trust

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.

We have nothing to report in respect of the following matters where 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 (set out on page 4 and 5), the trustees 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Use of our report

This report is made solely to the charitable company's trustees, 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 charity's trustees 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Page 7

i Jiti'aiii SpaLe Ti'ust Independenl" Auditor's Reporl to the Members Of Enti'ain Space Ti'ust Gillian McInloslTr (Senior %iaiiitory Aiiditor) I'.or aod on behalf of MMO Limitcd, Sialiitot'y Audilor Wclleslcy Flouse 204 Lundon Road Watei'looville F4aiiipsliiiE P07 7AN Date.. Page 8

Entrain Space Trust

Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Total Income
Expenditure on:
Charitable activities
5
Other expenditure
6
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17
Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Total Income
Expenditure on:
Raising funds
Charitable activities
5
Other expenditure
6
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Restricted
£
41,155
531,752
572,907
(526,026)
(4,091)
(530,117)
42,790
42,790
5,640,164
5,682,954
Restricted
£
27,593
520,632
548,225
(89,031)
(376,852)
(1,510)
(467,393)
80,832
80,832
5,559,332
5,640,164		 Total
2023
£
41,155
531,752
572,907
(526,026)
(4,091)
(530,117)
42,790
42,790
5,640,164
5,682,954
Total
2022
£
27,593
520,632
548,225
(89,031)
(376,852)
(1,510)
(467,393)
80,832
80,832
5,559,332
5,640,164

The notes on pages 12 to 22 form an integral part of these financial statements. Page 9

Entrain Space Trust

Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 17.

The notes on pages 12 to 22 form an integral part of these financial statements. Page 10

Entrain Spaee Trnst (Registration number: 09242372) Balance Sheet as at 31 Mar¢h 2023 2023 2022 N•t¢ Thed a•¢ts Tottgible assets Investments 240,234 4,815.0( 279.328 12 5,055234 Current auets Debtors CLqh at b8nk and in hand 13 207.103 100,887 150.345 23,602 14 307,990 173,947 Credltor&. Amounts f#llln8 du¢ wltbln oDe ye N¢t ¢urrent MsetslOi4bllltle8) 15 260,949 1.503.716) 47,041 1.329.769 Tot•1 A8￿t$ leu eurrent ]]4bilities 5.102275 3.764,559 Credit•r8: Amounts falllDg due after more th*0 Me yur 16 .337 427 42.5 Net amets 3 764.848 Fund8 of the eharhy: R¢strl¢ted Ineome funds Restri¢￿] fi]nds Revaluation reserve 5.682.954 .918,106 5.640.164 1918 105 Tot41 restricted thdy 3.764.848 3,722.059 Totsl futtd8 17 3,722 059 zc $tytement8 on pages 9 to 22 were approved by the ttwtees, and authorised for issue on ........ . behalf by.. ds Tn The note6 on pA8es 12 to 22 fotm an integrnl part of these fin￿¢1￿1 statements. Pag¢ll

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

The address of its registered office is: Erskine House Buckeridge Road Wilton SP2 0FX

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Entrain Space Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Page 12

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 13

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Investment properties

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 14

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Fund structure

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 15

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 16

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 17

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

3
Income from donations and legacies
Grants, including capital grants;
Government grants
Total for 2023
Total for 2022
4
Income from charitable activities
Total for 2023
Total for 2022		 Restricted
funds
£
41,155
41,155
27,593
Restricted
funds
£
531,752
531,752
520,632		 Total
funds
£
41,155
41,155
27,593
Total
funds
£
531,752
531,752
520,632

Page 18

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

5 Expenditure on charitable activities

5
Expenditure on charitable activities
Note
Allocated support costs
7
Governance costs
7
Total for 2023
Total for 2022		 Restricted
funds
£
462,658
5,291
58,077
526,026
376,852		 Total
funds
£
462,658
5,291
58,077
526,026
376,852

Total expenditure £

In addition to the expenditure analysed above, there are also governance costs of £58,077 (2022 - £109,116) which relate directly to charitable activities. See note 7 for further details.

6 Other expenditure

6
Other expenditure
Note
Other resources expended
Total for 2023
Total for 2022		 Restricted
funds
£
4,091
4,091
1,510		 Total
funds
£
4,091
4,091
1,510

Page 19

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

7 Analysis of governance and support costs

Governance costs

Governance costs
Audit fees
Audit of the financial statements
Legal fees
Total for 2023
Total for 2022		 Restricted
funds
£
2,274
55,803
58,077
109,116		 Total
funds
£
2,274
55,803
58,077
109,116

8 Net incoming/outgoing resources

Net incoming resources for the year include:

Audit fees

2023
£
2,274		 2022
£
2,248

9 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

10 Auditors' remuneration

10 Auditors' remuneration
Audit of the financial statements
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
12 Fixed asset investments
Investment properties		 2023
£
2,274
2023
£
4,815,000		 2022
£
2,248
2022
£
4,815,000

Page 20

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Investment properties
Cost or Valuation
At 1 April 2022
Provision
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Investment
properties
£
4,815,000
-
4,815,000
4,815,000

Page 21

Entrain Space Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

13 Debtors

13 Debtors
Other debtors
14 Cash and cash equivalents
Cash at bank
15 Creditors: amounts falling due within one year
Trade creditors
Other creditors
16 Creditors: amounts falling due after one year
Bank loans
17 Funds
Balance at 1
April 2022
£
Restricted funds
Reserves
5,640,164
Balance at 1
April 2021
£
Restricted
Reserves
5,559,332		 Incoming
resources
£
572,907
Incoming
resources
£
548,225		 2023
£
207,103
2023
£
100,887
2023
£
260,949
-
260,949
2023
£
1,337,427
Resources
expended
£
(530,117)
Resources
expended
£
(467,393)		 2022
£
150,345
2022
£
23,602
2022
£
236,523
1,267,193
1,503,716
2022
£
42,500
Balance at 31
March 2023
£
5,682,954
Balance at 31
March 2022
£
5,640,164

Page 22