REGISTERED COMPANY NUMBER: 10094184 (England and Walesl REGISTERED CHARITh NUMBER: 1168455 rt of the Trustees and Audlted Financial Statements for the Year Ended 31 Jul 2024 for Canto Learnin Limited Canto Learnin Limited Contents of the Financial Ststements forthe ear ended 31 Jul 2024 Page Report of the Trustees 1 to 4 Report of the Independent Auditora Statement of Flnancial Activities Balance Sheet 10 Cash Flow Statement 11 Notes to the Cash Flow Statement 12 Notes to the Financial Statements 13 to 23 Canto Leamin Llmited Re istered number: 10094184 Re for the rt of the Trustees ear ended 31 Jul 2024 The trustees who are also directors of the charty for the purposes of the Companies Act 20C6, present their report with the financial statements of the charity for the year ended 31 July 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Prsctice applicable to charities preparing their accounts in accordants with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims To advance the education and skills of young people who live with challenges arising from learning, behavioural, emotional or Social difficutties by the provision of a specialist establishment. The Charity achieves the stated objective by continuing to successfvlly run the specialist establishment and by understanding those who access the provision, maintain the high standards in all work, continuing to striving for success, safe guarding th¢)se in the Charities care, and, ensuring equality, diversity and inclusion are promoted throughout the organisation. Public benefit All the Charity's activities are undertaken to further our charitable purpose for the benefit of the public. The trustees have had regard lo the Charity Commission guidance on public benefit in section four of the Charities Act 2011. The main benefits which have arisen during the year from the organisations aims and activities are delailed in the following sections and in the financial review. STRATEGIC REPORT Achlevement and performance Review of the yearfs actlvities The truslees are confident that the general balance be￿een income, expenditure and reserves has remained satisfactory throughout the year, and thal all resources have been used in an effective manner. Much of the surplus shown in these accounts has been allocated to maintenance and upgrade of the premises and to funding planned gr0￿h of core provision. Canto Leaming Ltd continues to increase student provision for the benefft of those residing in Northamptonshire and surrounding areas. The good reputation of the organisation is seeing increasing demand across the geographical area for services, which is leading to organic growth of student numbers across both Adult Social Care and Education funded provision. Otsted's most recent inspection in 2023 judged the education provision to remain good and recognising the valuable work being undertaken. The in-year monitoring visit from West Northamptonshire County Council confimied that the provision is meeting the needs of those who access it and that the provision was 100% compliant in all areas. We have made significant progress throughout the year in relation lo the key elements of our strategy, the board monitors the progress by reference to the following financial KPI'S.. 2024 2023 Accumulated surplus £1,603,750 £1,344,426 Wage cost as a 0/0 of incoming resources 66.30/0 Operating Surplus 0/0 13.9% Fundralslng activities The charity does not carry out significant fundraising activities, it does, however, undertake minor fundraising activities and social events aimed to give the young people who live wilh challenges arising from behavioural, emotional and social difficulties, a platform to express themselves and further their progression within the scope of the charities stated public benefit. Canto Leamin Limlted istered number: 10094184 Re for the rt of the Trustees ear ended 31 Jul 2024 STRATEGIC REPORT Financial revlew Financlal position The Charity is satisfied with its financial position, it has healthy resejves which would maintain the charily for a period of time should activities be unexpecledly curtailed. Principal fundlng sources The principal funding sources are various local authorities in and around the Northamptonshire region and the EFSA, who enable the Charity to undertake its day to day activities and meet its stated objectives. Investment policy and objectives The investment policy of the charity is to put surplus funds into low risk investments with a view to generating a reasonable return while maintaining the security and accessibility of the funds. At the balance sheet date the company held fixed term deposits with its main bankers which could be accessed if needed. Reserves policy The nature of fLsnding to the charity is such that payment5 are received in advsnce for various areas of the activities undertaken. These funds are reconcilable at the end of the academic year and, if unused, are at risk of being clawed back if the charity cannot demonstrate that the funds have been applied. Such 'at risk, funds are retained separately and only allocated to the finances of the charity as they are applied. It is from these applied funds that allocation is made to our reserves. ReseNe funds are invested in an array interest bearing noti￿ bank accounts to achieve a higher retum, while keeping any downside risk to a minimum. The trustees are satisfied that the amount of reserves remains at a healthy level and is being constantly monitored to ensure the long-term financial stability of the charty. At the balance sheet date, total reserves amounted to £2,343,882. Financial and rlsk management objectlves and policies The trustees have assessed the major risks to which the charty is exposed, those relating to 'ln Advance, payments which could be clawed back by the funding authorities. The trustees are satisfied that the measures in place adequately provide for any such risk that exists. Financial reports are completed and presented to each Board of Trustees meeting and satisfy the trustees that appropriate systems are in place to mitigate our exposure to all major risks. Future plans The Charity's future plan is to Continue and develop the core provision of education and training to our SEN student groups and to add to our facilities in order to enhance further their learning experience and wellbeing. Work continues to develop and upgrade the site by the addition of a further 2 room modular unit to increase the amount of student places available. Buildings essential maintenance continues and will be a constant feature of a planned renewal schedule for the nexl 5 years. Increased students number has seen an increase in both Adult Social Care and Education funding for 2024125. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Recruitment and appolntment of new trustees The identification, recruitment and appointment of new trustees is done by the existing trustees, in particular the head of Centre. These individuals are identrfi8d based upon their particular skills and knowledge, specifically, areas of weakness in the collective knowledge of the trustees is identrfied as part of the ongoing risk assessment, and the recruitment of a new trustees is targeted to help fill this knowledge gap. The training of new trustees are conducted by existing trustees, by the head of centre, by attending ongoing CPD, and by spending time in and around the Canto Community. Canto Leamln Limited Re istered number.. 10094184 ort of the Trustees ear ended 31 Jul 2024 for the REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 10094184 (England and Wales) Reglstered Charity number 1168455 Registered office Willis House Tonmead Road Lumbertubs Northampton Northamptonshire NN3 8HU Trustees Mrs C Dear Mr P Burch Mrs J Gadsden Mrs A Fometu MrA M Billingham Mrs M E Heron (resigned 19.7.2024) Mrs T Davidson MrA R Sanders Mr T J Go(xJridge Auditors Cottons Accountants LLP The Slables Church Walk Daventry Northamptonshire NN114BL EVENTS SINCE THE END OF THE YEAR Information relating to events since the end of the year is given in the notes to the financial statements. Canto Learnin Llmlted isterod number: 10094184 ort of the Trustees ear ended 31 Jul 2024 forthe STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also directors of Canto Leaming Limited for the purposes of company law) are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and the financial ststements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial ststements for each financial year, which 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 the income and expenditure, of the charitable wnpany for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently- obseNe the methods and principles in the Charities SORP 2015 (FRS 102).. make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial ststements; prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial st8tements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charilable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit infomiation of which the charitable company's audf(or is unaware; and the twstees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that infomation. AUDITORS The auditors, Cottons Accountants LLP, will be proposed for r&appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporaling a strategic report, approved by order of the board of Irustees, as the company diredors, on 10 February 2025 and signed on the board's behalf by: MrA M Billingham - Trustee Re rt of the Inde ndentAuditors to the Members of Canto Leamin Limited Opinion We have audited the financial statements of Canto Leaming Limited (the 'charitable ￿MpanY') for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally A¢￿pted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 July 2024 and of ils incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordan￿ with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordan￿ with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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 concem 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 identrfied any material Un￿rtaIntieS relating to events or conditions that, individually or wllectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other infomation. The other infomation comprises the infomiation included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otheNise explicitly stated in our report, we do not express any fomi of assurants conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othetwise appears to be materially misstated. If we identfy such material inconsistencies or apparent malerial misstatements, we are required to detennine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Trustees for the financial year for which the financial stalements are prepared is consistent with the financial statements; and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Re ort of the Inde ndent Auditors to the Members of Canto Learnin Limited Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and ts environment obtained in the course of the audit, we have not identrfied material misstatements in the Report of the Trustees. 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- adequate accounting records have not been kept or retums 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 retums; or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees. Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees detemiine 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 charitable company's ability to continue as a going concem, disclosing, as applicable, matters related to going con￿rn and using the going con￿rn basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Re ort of the Inde ndent Auditors to the Members of Canto Learnin Limited Our responslbilitses for the audit of the financlal ststsments 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurants, 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 Influen￿ the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prO￿dureS in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant.. the Charities Act 2022. Companies Act 2006 and UK Generally Accepted Accounting Practi￿. We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making inquiries to the management and by obsefving the oversight of management, the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud prevention, which may reduce the opportunities for fraud to take place. and fraud deterrence, which could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries through our review of all relevant available audit information. We assessed and understood the susceptibility of the company's financial statements to material misslatem@nt, including how fraud mighl occur. Based on this understanding we designed our audii procedures to identify non,. Financial Reporting Standard 102 The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements are prepared on a going con￿rn basis under the historical cost convention, modified to include cert8in rtems at fair value. The financial statements are presented in sterling which is the fvnctional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are sel out below. These policies have been consistently applied to all years presented unless otherwise slated. Going Concern The financial statements have been prepared on a going concem basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from the date the financial statements are authorised. The budgeted income and expenditure is sufficient with the level of reseNes for the chariiy to be able to continue as a going concern, desptte the curreni pandemic. Critical accounting judgements and key sources of estlmation uncertalnty The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statement5: -valuation of fixed assets -valuation of defewed inGome -calculation of accruals -valuation of the capital reserve Income All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any perf0mlan￿ conditions have been met. the amount can be measured reliably and it is probable that the income will be received. For donations to be recogni5ed the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of perfomance before entitlement can be obtsined then In￿Me is deferred until those conditions are fully met or the fulfilment of those condttions is within the control of the charity and it is probable that they will be fulfilled. 13 Canto Learnln Limited Notes to the Financlal Statements - continued for the ear ended 31 Jul 2024 ACCOUNTING POLICIES - contlnued Income Donated facilities and donated professional seNices are recognised in income at their fair value when their economic benefit is probable. it can be measured reliabty and the charity has control over the item. Fair value is detennined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees, Annual Report. Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation oU￿e1gh any benefits. then the fair valu8 is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure. Income from trading aclivities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is re￿iVed in exchange for supplying goods and se￿i￿S in order to raise funds and is recognised when entitlement has occurred. The charity receives government grants in respect of education service funding. Income from govemment and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assets for investment purposes such as shares and propety. It includes dividends, interest and rent. Vvhere rt is not practicable to identfy investment management costs incurred within a Scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to re￿1ve payment is established. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recogni5ed where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Grants payable to third parties are within the charitable objectives. Vvhere unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to reasonable expectation that the recipient will receive the grants. Vvhere grants are conditional relating to performance then Ihe grant is only accrued when any unfulfilled conditions are outside of the control of the charity. Support Costs allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charilable activities on a basis consistent with use of the resources. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimaled us@ful lrfe. Freehold property Improvements to property 2% on cost, excluding est. land value 2010 on cost 14 Canto Learnin Limited Notes to the Financial Statements - continued for the ear ended 31 Jul 2024 ACCOUNTING POLICIES - contlnued Tangiblo fixed assets Plant and machinery Fixtures and fittings Motor vehicles Computer equipment 15% oncost 150/0 on cost 200/0 on reducing balance 15/00n￿$t Stocks stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Taxation The chariiy is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered lo pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitsble company for UK corporation tax purposes. Fund accounting Unrestricted fvnds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charty for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Endowment funds represent those assets which must be held pennanently by the charity, principally. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management Charges and legal advi￿ relating to the fund are charged against the fund. Financial instruments The charity only has financial assets and liabilities of a kind that qualify as basic financial inslruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value. Pension costs and other post-retirement benerts The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to profit or loss in the period to which they relate. Debtors and creditors receivable I payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 15 Canto Leamin Limited Notes to the Financial Statements - continued for the earended 31 Jul 2024 DONATIONS AND LEGACIES 2024 2023 Donations 859 7,979 Income from fundraising activities was £859 of which £nil was attributable to capital reserve. £nil was attributable to endowments, £nil was attributable to restricted and £859 was attributable to unrestricted funds. OTHER TRADING ACTIVITIES 2024 2023 Clothing income Tuck shop income Avon income 7,140 1,769 21,557 6,580 1,682 17,212 30,466 25.474 Income from other trading activities was £30,466 of which £nil was attributable to endowments, £nil was attributable to restricted and £30,466 was attributable to unrestricted funds. INVESTMENT INCOME 2024 2023 Deposit account interest 12,465 5,910 Income from investment activities was £12,465 of which £nil was attributable to endowments, £nil was attributable to restricted and £12,465 was attributable to unrestricted funds. INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity Programme income Programme income Programme income Programme income Sundry income Grants 756,771 6,350 1.053,981 646,365 1,076,053 1,817,102 1,722,418 Income from charitable activities was £1,817.102 of which £nil was attributsble to endowments, £nil was attributsble to restricted and £1,817,102 was attributable to unrestricted funds. Grants received, included in the above, are as follows: 2024 2023 Government funding 1,053,981 1,076,053 16 Canto Learnin Llmlted Notes to the Flnancial Statements - continued forthe ear ended 31 Jul 2024 CHARITABLE ACTIVITIES COSTS Support costs (see note 8) Direct Costs Totals Programme income 1,575,049 13,664 1,588,713 The charity has only one activity, and all expendiiure is incurred in furtheran￿ of that adivily. The allocation of support costs is all allocated to one activity of the charity. SUPPORT COSTS Govemance costs Finance Totals Programme income 11,220 13,664 NET INCOMEI{EXPENDITURE) Net incomel{expenditure) is stated after chargingl(crediting): 2024 2023 Auditors, remuneration Depreciation - owned assets 5,760 36,567 4,800 47,949 10. TRUSTEES, REMUNERATION AND BENEFITS 2024 2023 Trustees, salaries Trustees. social security Trustees. pensions paid 83,959 8,723 2,439 77,179 8,817 2,221 95,121 88,217 The Trustees for which remuneration is paid are Mrs. J. Gadsden and Mrs C. Dear. Both trustees are also accruing pension contributions under the charities auto enrolment obligation. The chariiy has legal authority wtthin its memorandum and articles of association to pay remuneration to Trustees, and this has been agreed with the Charities Commission. The remuneration was paid. not for the role of Trustee, but for the job undertaken within the Charity. The charily considers that only its trustees are considered key management personnel and their remuneration is disclosed above. The charity did reimburse expenses to trustees; the amount reimbursed is disclosed below and related to travel and subsistence payments. There was only one trustee who received reimbursed expenses. Trustees, expenses 2024 2023 Trustees, expenses 2,805 2,464 17 Canto Learnin Limited Notes to the Financial Statements- continued for the ear ended 31 Jul 2024 11. STAFF COSTS AND TRUSTEES 2024 2023 Wages and salaries Social security costs Other pension costs 1,148,362 85,842 28.404 1,064.662 76,635 26.145 1.262.608 1,167.442 The average monthly number of employees during the year was as follows: 2024 2023 Employed Trustees other, Non-salaried, Trustees Leadership Team Teaching Staff Support Staff AdministratlV8 Stsff 12 28 17 14 60 52 The number of employees whose employee benefits (excluding employer pension costs) ex￿eded £60,000 was: 2024 2023 £70,001- £80,000 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds Restricted fund Total funds INCOME AND ENtX)WMENTS FROM Donalions and legacies 7.979 7,979 Charitable activities Programme income 1,722,418 1,722,418 Other trading activities Investment income 25,474 5,910 25,474 5,910 Total 1,761,781 1,761,781 EXPENDITURE ON Charitable activities Programme income 1.529,089 1.529,089 Other 13,530 13,530 Total 1,542,619 1,542,619 NET INCOME 219,162 219,162 RECONCILIATION OF FUNDS Total funds brought fotward 1,866,801 1,866,801 18 Canto Leamln Limited Notes to the Financial Statements - continued for the ear ended 31 Jul 2024 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - contlnued Unrestricted Restricted funds fund Totsl funds TOTAL FUNDS CARRIED FORWARD 2,085.963 2.085.963 13. TANGIBLE FIXED ASSETS Improvements to property Freehold property Plant and machinery COST At 1 August 2023 Additions 1,134,748 267.972 114,066 48,973 365 At 31 July 2024 1,134,748 382,038 49,338 DEPRECIATION At 1 August 2023 Charge for year 110,015 5,395 13,681 5,612 31,569 3,763 At 31 July 2024 115,410 19,293 35,332 NET BOOK VALUE At 31 July 2024 1,019,338 362,745 14,006 At 31 Juty 2023 1,024,733 254,291 17,404 Fixtures and fittings Motor vehicles Computer equipment Totsls COST At 1 August 2023 Additions 44.496 20,095 37.902 71.134 8,107 1.605.225 142,633 At 31 July 2024 64,591 37,902 79,241 1.747.858 DEPRECIATION At 1 August 2023 Charge for year 29,416 6,416 10.592 5,462 33,452 9,919 228,725 36,567 At 31 July 2024 35,832 16,054 43,371 265,292 NET BOOK VALUE At 31 July 2024 28,759 21.848 35,870 1,482,566 At 31 July 2023 15,080 27,310 37,682 1,376,500 No depreciation was provided on the estimated land value of £173,000 which is included in the total C05t at the start of the year. At the balance sheet date the Charity was committed to the purchase of capital assets totalling £84,510. All assets are used within the Charity for the benefit of the charitable purpose. 19 Canto Learnin Llmltsd Notes to the Financial Ststements - continued forthe ear ended 31 Jul 2024 14. STOCKS 2024 2023 Stocks 650 650 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors Other debtors Prepayments and accrued income 20,197 250 90,580 77,452 4.789 53,799 111,027 136,040 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans and overdrafts (see note 18) Trade creditors Social security and other taxes Other creditors Accruals and deferred income 28,043 2,263 21,581 29,803 11,587 26,633 3,861 22,238 8.013 15,909 93,277 76,654 Govemment grant income for the forthcoming academic year is paid up front and subjert to potential clawback at the end of the period. 17. CREDITORS: AMOUNTS FALLING DUEAFTER MORETHAN ONE YEAR 2024 2023 Bank loans (see note 18) 23,931 52,665 18. LOANS An analysis of the maturity cf loans is given below: 2024 2023 Amounts falling due wrthin one year on demand: Bank loans 28,043 26,633 Amounts falling be￿een one and ￿ year5: Bank loans - 1-2 years 23,931 27,324 Amounts falling due be￿een and five years: Bank108ns- 2-5 years 25,341 The company has one long term loan. bearing a fixed interest rate of 2.00 /¢ above base rate. 20 Canto Leamln Limited Notes to the Flnanclal Statements- continued for the ear ended 31 Jul 2024 19. SECURED DEBTS The following secured debts are included within creditors.. 2024 2023 Bank loans 51,974 79,298 There are bNo charges in relation to the loan monies outstanding both in favour of Lloyds Bank Plc, one over the property known as Willis House, and the other over all other assets of the Charity. 20. MOVEMETrif IN FUNDS Net movement in funds Transfers between funds At 31.7.24 At 1.8.23 Unrestricted funds General Fund Capital ReseN8 1,344,426 741,537 257,919 1,405 (1,405) 1,603,750 740,132 2,085,963 257,919 2,343.882 TOTAL FUNDS 2,085,963 257,919 2,343,882 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General Fund 1,860,892 {1,602,973) 257,919 TOTAL FUNDS 1,860,892 11,602,973) 257,919 Comparatives for movement In funds Net movement in funds Transfers btheen funds At 31.7.23 At 1.8.22 Unrestrfcted funds General Fund Capital ReseNe 1,108,785 758,016 219,162 16,479 (16,479) 1,344,426 741,537 1,866,801 219,162 2,085,963 TOTAL FUNDS 1,866,801 219,162 2,085,963 21 Canto Leamln Llmited Notes to the Flnancial Statements - continued for the ear ended 31 Jul 2024 20. MOVEMENT IN FUNDS - contlnued Comparative net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestrfcted funds General Fund 1,761,781 (1.542,619) 219,162 TOTAL FUNDS 1,761,781 (1,542,619) 219,162 A current year 12 months and prior year 12 months combined position is as follows.. Transfers beiween funds Net movement in funds At 31.7.24 At 1.8.22 Unrestricted funds General Fund Capital ReseNe 1,108,785 758.016 477,081 17,884 {17,884) 1,603,750 740,132 1,866,801 477,081 2,343,882 TOTAL FUNDS 1.866,801 477,081 2,343,882 A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlcted funds General Fund 3,622,673 {3,145,592) 477,081 TOTAL FUNDS 3,622,673 (3,145,592) 477,081 Transfe￿ between funds The Caprtal Reserve is released over the lrfe of the related asset, allocating the transfer of fund against the depreciation charge Wlth Unrestricted Funds. 22 Canto Learnin Limited Notes to the Financial Statements - conllnued for the ear ended 31 Jul 2024 21. EMPLOYEE BENEFIT 08UGATIONS The company operates defined contribution, auto enrolment retirement benefft schemes for all its qualfying employees. The totsl expense charged to profit or loss in the period ended 31st July 2024 was £30,843 (2023.. £28.366). The amount owed to the pension schemes at the year*nd was £Nil (2023: £5,667). 22. RELATED PARTY DISCLOSURES The Director, Mr. A. Billingham, is also a Partner of Clifford Roberts Chartered Accountsnts, who provided accountancy se￿iCe8 to the Charity. Included within accountancy costs are amounts totslling £4,380 paid to Clifford Roberts in respect of accountancy sejvices conducted at arm's length by other members of the fim. At the year-end there was an unsecured credit balance outstsnding of £Nil (2023.. £Nil). 23. AUDITOR LIABIUTY LIMITATION AGREEMENT The company has entered into a liability limitation agreement with its auditors and this agreement was approved by resolution dated 1 Oth October 2024. Liability is limited to the lesser of 20 times the audit fee or £100,000. In accordance with section 537 of Companies Act 2006, the effect of the liability limitation agreement is to limit the auditofs liability to less than such amount as is fair and reasonable, as detemiined by that section, the agreement shall have the effect as if it limited the lisbility to such amount as is fair and reasonable, as so determined. The agreement limits the liability owed to the Company by the auditors in respect of any negligence, default, breach of duty or beach of trust occurring in the course of the audit of the financial statements of the company for the year ended 31 st July 2024. The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations. POST BALANCE SHEET EVENTS There are no events after the period end that requires reporting on, other than the capital commitment disclosed within note 13. 25. FINANCIAL RISK MANAGEMENT The company has some exposure to credit, liquidity and cashflow interest rate risks, these risks are limited by the company's financial management policies and practices described below. Credlt risk The company offer credit terms to its customers which allows payment of the debt at a future specified lime. The company mitigates this risk by maintaining strong customer relationships and regular analysis its sales ledger for troubled customers. Llquldity risk The directors have ultimate responsibility for liquidity risk management in maintaining adequate reseNes and banking facilities. Currently based on the cash resetves this is not deemed a significant risk. Interest rate risk The company is exposed to interest rate risk through the impact of rate changes on interesl bearing borrowings. Apart from the Long-term loan the company does not have significant interest-bearing assets and liabilities. Fixed rate terms are agreed when considered favourable to mitigate risk. The company holds no derivative financial instruments at the year end. 23