# **REGISTERED COMPANY NUMBER: 10471484 (England and Wales) REGISTERED CHARITY NUMBER: 1170522**
**Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 December 2021**
**for**
**Classrooms in the Clouds (A Company Limited by Guarantee)**
Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
**Classrooms in the Clouds**
**Contents of the Financial Statements for the Year Ended 31 December 2021**
**Page Reference and Administrative Details** 1 **Report of the Trustees** 2-14 **Independent Examiner's Report** 15 **Statement of Financial Activities** 16 **Balance Sheet** 17 **Notes to the Financial Statements** 18-22 **Detailed Statement of Financial Activities** 23
## **Classrooms in the Clouds**
## **Reference and Administrative Details for the Year Ended 31 December 2021**
**TRUSTEES**
**REGISTERED OFFICE**
M A Cashin S Hagen M Hagen (Chairman) L McLaren R A W Middleton D G Sherpa A S Roberts (appointed 13/11/2021) D G Thomas (appointed 13/11/2021)
10 Grammar School Lane Wirral Merseyside CH48 8AY
**REGISTERED COMPANY NUMBER** 10471484 (England and Wales)
**REGISTERED CHARITY NUMBER** 1170522
## **INDEPENDENT EXAMINER**
Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
Page 1
## **Classrooms In The Clouds Trustees' Report**
The Trustees of Classrooms in the Clouds are pleased to present their Report and Accounts for the period ending 31 December 2021. These accounts have been prepared in accordance with Charities SORP (FRS 102) ‘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) (effective 1 January 2015)’, Financial Reporting Standard for Smaller Entities (effective January 2015) and the Charities Act 2011, and the Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005.
## **Objectives and Activities**
Classrooms in the Clouds exists because there are children in Nepal currently receiving an inadequate education, or in many cases, no education at all due to social, financial, practical, geographical or other reasons. Many children are out working, taking care of younger siblings, elderly or disabled relatives. There may be no school in their village, or if there is it may only go to the end of primary school, with no high school nearby. The only option for many is boarding school in Kathmandu which is simply unaffordable and impractical for all but a small minority. Attendance at school dwindles as children get older. The Nepalese government recognises that early years education has been undervalued. We need to provide incentives, facilities, teachers and professional development opportunities as well as tackling gender barriers to ensure children remain students for as long as possible to help them reach their full potential.
## **Purpose**
To raise funds and materials to assist in the provision of education to the children of Nepal.
## **Mission**
Our mission is to provide affordable, accessible and sustainable education to the children of Nepal, particularly those in most need.
## **Aims**
Classrooms in the Clouds strive to create a safe environment where children are able to achieve their full potential in all aspects of their learning. In particular, they will have the chance to achieve their Secondary Education Examination (SEE). We aim to improve conditions in 4 main ways:
•Building good quality, new classrooms;
•Providing gender appropriate hygiene facilities and tackle gender barriers;
•Sponsoring, training and supporting new teachers with an emphasis on attracting more local female teachers;
•Developing partnerships with local school communities to realise the potential of the additional facilities and training
Page 2
## **Values**
Our **Core Values** shape _what_ we do:
• **Creating Opportunity** for communities in need;
• **Socially Aware –** we will endeavour to source materials locally and utilise local labour as far as practically possible;
• **Sustainable** – we will work with local communities to understand and meet their needs, develop a long term, strong relationship and ensure their commitment to a project;
• **Everyone Matters** – we want to reach and influence those most in need and particularly to raise the expectations of women;
• **Realise Potential** – we believe we can help children realise their potential, thereby improving their life chances;
• **Maximise the use of Assets** – we recognise the focal point a school provides for a community and we want the benefits from our building projects to be maximised by widespread community use.
Our **Personal Values** shape _how_ we do:
## **Activities**
We establish long-term partnerships with the schools we support operating in a culturally empathetic way. Specifically we:
• Build classrooms in existing schools; • Sponsor teachers, with an emphasis on female teachers, give professional development and mentor/support progress;
• Take measures to reduce gender inequality such as menstrual health training, clean water, gender specific toilets and empowerment of women initiatives.
• **Passion –** attract passionate people who make a positive difference to those in need;
_Reusable Menstrual Health Kit being Made by Local Women, trained by CITCNepal_
• **Pragmatism** – aspiring to be the best whilst being realistic, practical and solution focussed;
• **Responsibility** – self-disciplined, taking ownership of issues and problems and leading by example;
• **Cultural Empathy** – being interested in people and cultures, displaying empathy and embracing diversity;
• **Openness to Experience** – receptive to learning opportunities, seeking out new experiences and taking a broad view.
We are a _long term partner_ of school communities; We are increasing our emphasis and support for _women and girls in education_ ;
We are developing the building blocks of education by improving the _early years teaching_ in terms of the built environment and skills and resources.
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## **Achievements and performance**
## **COVID-19**
The period under review continues to be dominated by the worldwide COVID-19 pandemic. In Nepal it is difficult to gauge exactly how the virus spread as testing is unreliable and the health system stretched in normal circumstances. The biggest negative impact, however, has been the economic one. The Nepal government was able to allow tourists in 2021 but in reduced numbers. The remittances from migrant workers - mostly working in India and the Middle East - has still not recovered to previous levels. This accounted for somewhere between 30 and 50% of the GDP! Some experts are predicting the impact is worse than the earthquakes of 2015.
CITC sponsored teachers carried on working with children in the community during the sporadic Nepal lockdowns. This is hugely appreciated by local communities who have been devastated by the impact of COVID-19 on the country.
Whenever schools were closed, CITC sponsored teachers made regular contact with children at home, allowing education to continue when it was stopped in most other areas. CITC was also able to continue with its building programme despite the difficulties..
2021 saw CITC improve its fundraising following the reduction in charitable giving in 2020. Classrooms In The Clouds, therefore, faces the twin challenges of more need than ever in Nepal and a fight for maintaining its income. The work of CITC in Nepal has never been more important in terms of giving young people hope and skills for the future so they can be the guardians of their beautiful country.
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**A project at the village of Lokhim** to provide 6 classrooms, an early years play area, toilets, clean water and fully resourced classrooms was begun in 2021.The classroom building will be similar in design to Kanku and occupied by primary years children.
_Local People Creating Aggregate from Stone_
Shree Janata School at Lokhim has poor primary school facilities - appalling sanitation facilities with unhygienic toilets and no safe water system, putting children at risk of diseases - This makes it extremely difficult for girls to manage their menstrual health needs effectively, impacting their confidence.
There is a lack of child friendly furniture and classroom resources resulting in an inadequate learning environment. Other challenges include insufficient teacher training, a lack of lesson plans and workbooks and a lack of opportunities for talented females to enter the teaching profession due to prevalent gender inequalities.
In rural Nepal learning by rote and ‘subject based’ teaching is prevalent, even for very young children, meaning the needs of the individual child are often overlooked.
Grade teaching - where a teacher has responsibility for one class is innovative in the Solukhumbu region, allowing the teacher to develop a deeper connection with their class and understand the needs of the children, resulting in better outcomes (as seen in CITC’s other supported schools). Lesson planning is also a new concept for the teachers – CITC has gathered evidence demonstrating the huge difference in lesson quality when lesson plan training has been implemented.
Complimenting 6 new classrooms, the project aims to
**Improve sanitation, particularly benefitting girls by building earthquake resistant, gender specific toilets**
**Reduce the risk of disease - enabling access to safe water** by building a sustainable, eco-friendly, water filtration system. **Enhance 6 classrooms** providing furniture and resources.
**Improve the quality of teaching and learning** by recruiting, sponsoring and training a female teacher - delivering professional development and continuous mentoring/appraisals
**Provide training for all primary teachers at the school** including quarterly training workshops covering Early Years, grade teaching, lesson planning and first aid.
**Supply lesson plans/workbooks for core subjects in grades 1-5.**
CITC has carefully considered the following means to minimise any potential negative environmental impacts of the project:
- Materials will be sourced locally where possible, reducing costs and minimising emissions.
- Use of machinery will be limited with traditional ‘hand crafted’ methods utilised where possible, using the skills of local labourers. All furniture will be hand crafted on site.
- Waste from toilets will flow into a purpose built septic tank.
- All water will be sourced responsibly from a nearby natural spring.
- Sustainable, natural materials will be used for the water filtration system.
- Previous demolished buildings will be reused, particularly to recycle aggregate.
- Training will be provided in sanitation, waste management and hygiene, helping to support community ownership and create environmentally aware students.
Page 5
In last year’s report, detail was provided of the big building project at Shree Kanku (6 classroom 2-storey block, WCs, clean water and furniture/furnishings) . One of the main supporters
were the fire Cadets of Cheshire Fire and Rescue Service. In previous projects the fire cadets have travelled out to Nepal to see the outcome of their fundraising efforts but COVID 19 restrictions meant that was not possible. CITC remains extremely thankful for the efforts of these fire cadets in making a difference to young people’s lives in a far away country.
CITC Trustee and president of the CITC NGO in Nepal, Dawa Geljen Sherpa, attended the handover ceremony on behalf of CITC. He heard a great deal about how much the investment in education meant to the local community. Local people had taken a great interest in the construction process and were particularly impressed with the high standards being set. More importantly, there were already signs that children’s education was improving as a result of CITC training and the provision of lesson plans
The practical response from the local community to support the construction was outstanding. Literally hundreds of people got involved including transporting materials and breaking down rock for aggregate. This is a vivid example of the importance and pride local people have in the education of their children.
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**Teacher Sponsorship -** By the end of the year, the CITCNepal team carried out the selection process for new teachers that means there are, for the first time, 23 sponsored female teachers working out of schools. CITC continues to mirror the Nepal Government teacher salaries and benefits. CITC have a sustainable model for teacher sponsorship whereby teachers are supported in their studies to achieve a Bachelor Degree in Education. This provides a gateway to obtaining a government-funded teaching role or another permanent role. Since 2009, over half the CITC sponsored teachers have gone on to find permanent employment or enter full-time study. In practice this success means that
CITC maintains a continuous process of selection and training meaning more and more women achieve their dream of becoming a teacher. CITC provided specialist training in child-centred learning, lesson planning, menstrual health and first aid. CITC invests in teacher materials and workbooks designed by a partner in Kathmandu called The Collective Schools Network.
These are a great teaching aid for teachers who have extremely busy lives outside school in their rural communities. The lesson plans mean it is easier to follow the curriculum over the school year and plot individual student progress.
CITC supports a ‘cluster’ of schools in the lower Soluhkhumbu, meaning sponsored teachers support each other as they extend their skills and experience. They use social media to share best practice. To support the teachers and maintain a strong relationship with CITC supported schools, CITCNepal has employed an Eduational Development Manager who is responsible for project delivery, 2 peripatetic Education Support Workers and a finance officer based in Kathmandu. Roles include the professional development of sponsored teachers, monitoring and reporting on children’s progress in supported schools, liaison with education officials and NGOs at a national, regional and local level and overseeing building projects.
Page 7
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Financial Review
The impact of Covid 19 continues to be felt and has
undoubtedly led to the reduction in number of fund
raising activities taking place. As a result of
fundraising efforts, however, from a number of
people and organisations we have seen an
improvement in income and would hope to
continue that improvement into 2022.
The total income generated for the year ended 31 [[st]]
December 2021 was £257,243 (2020: £211,737).
We raise money in a variety of ways, including:
• Joint fundraisers ;
Cheshire Fire and Rescue Service
Long Time Supporters Shayne and Hazel
Adams, Kaboodle, Ludlow and Church Stretton
• Sponsored challenges ;
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## **Financial Review**
The impact of Covid 19 continues to be felt and has undoubtedly led to the reduction in number of fund raising activities taking place. As a result of fundraising efforts, however, from a number of people and organisations we have seen an improvement in income and would hope to continue that improvement into 2022. The total income generated for the year ended 31[[st]] December 2021 was £257,243 (2020: £211,737). We raise money in a variety of ways, including:
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Cycling to The ‘Wild Peak’
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• Grants from trusts and foundations;
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British and Foreign School Society
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• Corporate Fundraising ;
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_International Rotary foundation_ Hengistbury Investment Partners LLP Charitable Trust
Page 8
## • **Donations of time and expertise**
_Art project in Bung delivered by professional UK artist Lynda Roberts – providing art training and skills to teachers_
_Part of the renovated library in Kharikhola, one of many transformations led by long term CITC supporter Cathie Bremner Owen_
Page 9
The attached financial statements show that the money held by the charity at 31 December 2021 was £320,224.
## **Reserves Policy**
The Trustees have identified the appropriateness of establishing a defined reserve policy for the charity. The purpose of a reserve policy is to help ensuring that the long term objectives of the charity can be met with some from of financial security.
A **Reserve Fund** has been established as an amount sufficient to maintain ongoing operations and programmes for **12** months. The **Reserve Fund** serves a dynamic role and will be reviewed and adjusted in response to internal and external changes.The target minimum **Reserve Fund** is equal to **£75,000** representing twelve months of operating expenses averaged annually over the last 2 years.
## **Funding Reserves**
## **Investing Reserves**
The **Reserve Fund** will be funded and available in cash or cash equivalent funds, in accordance with the risk preferences, liquidity needs and investment objectives of the charity. The reserves will be comingled with the general cash accounts of the charity but segregated in financial reporting.
## **Using Reserves**
Trustees will identify reasons for accessing the **Reserve Fund** and confirm that the use is consistent with the purpose of the reserves as described in this Policy having:
- analysed the need
- considered other funding sources; and
- created a plan for replenishment.
The Treasurer is responsible for ensuring that the **Reserve Fund** is maintained and used only as described in this Policy.
Trustees of Classrooms In The Clouds agree that the Reserve Fund will be established by designating £75,000 from restricted funds as the beginning balance. Trustees will consider the size of the Reserve Fund annually.
Page 10
## **Structure, Governance and Management**
CITC is governed by its Constitution dated 25 August 2007. In 2017, CITC completed its registration with the Charity Commission for England and Wales. A new company limited by guarantee (Company Number 10471484; Charity Number 1170522) was created. Classrooms In The Clouds Nepal is a registered NGO in Nepal.
2 additional Trustees were appointed during 2021 bringing the total to 8. Both bring additional skills to the charity and their love of Nepal. All Trustees will resign at each AGM where each shall then be eligible for re-election. In addition, Trustees may be added at any time with the consent of the Management Committee, provided there are never any more than 7 members of the Management Committee. The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. This requires the 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 period.
In preparing these financial statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently;
• observe the methods and principles of the Charities SORP
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any 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 business.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ascertain to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constituting 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.
In the interest of transparency and accountability to our donors we publish our annual report, accounts and impact report on the website. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 11
## The table below outlines the governance processes followed by CITC:
**----- Start of picture text -----**
Organisation/Role Who Responsibility
Classrooms in the Clouds Trustees Executive Responsibility for CITC strategy
including financial decisions and
partnerships
Classrooms in the Clouds Nepal NGO Committee Delivery and supervision of Projects as
agreed by CITC ‘on the Ground’
Classrooms in the Clouds Trustees Responsible for meeting the legal
requirements of a registered charity
Classrooms in the Clouds Nepal NGO Committee Responsible for meeting the legal
requirement of a Nepal registered NGO
Classrooms in the Clouds Trustees Delivering the CITC fundraising strategy and
developing relationships with donors and
supporters based on integrity, respect and
transparency
Classrooms in the Clouds Nepal NGO Committee Promoting the aims and objectives of CITC
with visitors to Nepal to encourage
additional supporters
Classrooms in the Clouds Trustees Develop systems and procedures to ensure
due diligence of all spending and other
matters in order to maximise charity
effectiveness
Classrooms in the Clouds Nepal NGO Committee To support CITC by working within their
systems and procedures
Classrooms in the Clouds Trustees To receive and carefully consider petitions
and other requests and examine them against
local need and charity aims
Classrooms in the Clouds Nepal NGO Committee To support the decision making process of
CITC by providing timely, relevant and
thorough background information on
petitions received
Classrooms in the Clouds Trustees To make their project decisions on a sound
financial basis
Classrooms in the Clouds Nepal NGO Committee To deliver projects within the financial
assumptions of CITC and report any
indication of variances against the agreed
plan
Treasurer To advise on all matters relating to finance
and take all reasonable measures to ensure
local/international financial rules are
followed
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Page 12
## **Long Term Plan Future plans**
Set out below are details of our medium and longer term goals. Undoubtedly their achievement are going to be subject to the ongoing return of the West to more normal conditions and positive economic factors. The Trustees are aware of the potential need to reconsider whether some of these goals are realistically achievable. By 2023 we plan to reach more children by:
•Being recognised as an effective, sustainable and passionate charity;
- Attracting regular, significant donation;
- Attracting corporate partners;
• An infrastructure in Nepal that is efficient and sustainable with a CITC base in Lukla;
• Be able to complete 2 building projects a year typically providing 12 new classrooms;
• Where necessary, projects will include gender specific toilets and clean water as part of our support for women and girls;
- By 2023, sponsor up to 30 teachers a
- year, supporting their professional development;
• Specifically target improvements in the quality of early years education;
• Refine our monitoring and evaluation processes to provide robust evidence of the success of our projects.
• Ensure that we enhance our communication to supporters around the world and make our annual financial reports available to anyone who would like to see them.
• To grow CITC so it can support multiple projects across the Himalayan region of Nepal;
• ‘Cluster’ CITC supported activity to foster an atmosphere that encourages professional development and self-achievement;
• Work where appropriate with other NGOs who support our aims and objectives;
• Develop health and well-being initiatives where they can be shown to support our education ambitions;
• Build a core funding base from corporate donations and ‘committed givers’ supplemented by individual fundraising events and activities.
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## _**Trustee Details**_
|**_Trustee Details_**||||
|---|---|---|---|
|**Name**|**Position**|**Nationality**|**Address**|
|*Michael
Hagen|Chair Trustee|UK|**10 Grammar School Lane, Wirral,
CH48 8AY|
|Sarah Hagen|Secretary Trustee|UK|10 Grammar School Lane, Wirral,
CH48 8AY|
|Ron
Middleton|Treasurer Trustee|UK|24 Kelmscott Road, Harborne, B17
8QN|
|Dawa Geljen
Sherpa|Trustee/President
CITCNepal|Nepal|Kathmandu|
|Mark Cashin|Trustee|UK|c/o Cheshire FRS HQ, Winsford, CW7
2FQ|
|Lawrie
McLaren|Trustee|Belgium|Avenue Des Fleurs 22,
Woluwe-St-Pierre, B-1150, Belgium|
|Annette
Roberts|Trustee|UK|7 Carr Holme Gardens, Cabus, PR3
1LY|
|David
Thomas|Trustee|UK|22 Park Close, Oakley, Hants RG23
7LE|
*Principal Officer; **Charitable Company registered address
Approved by order of the board of trustees on 25 June 2022 and signed on its behalf by:
............................................................................... M Hagen - Trustee
Page 14
## **Independent Examiner's Report to the Trustees of Classrooms in the Clouds**
## **Independent examiner's report to the trustees of Classrooms in the Clouds ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.
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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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 accounts to be reached.
E E Marshall-Birks FCA ICAEW Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
Date: .............................................
Page 15
## **Classrooms in the Clouds**
## **Statement of Financial Activities for the Year Ended 31 December 2021**
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2021 2020
Unrestricted Restricted Total Total
fund fund funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 - 257,243 257,243 211,735
Investment income 3 - - - 2
Total - 257,243 257,243 211,737
EXPENDITURE ON
Raising funds - 29,743 29,743 30,185
Charitable activities 4
Education projects - 152,000 152,000 142,500
Total - 181,743 181,743 172,685
NET INCOME - 75,500 75,500 39,052
RECONCILIATION OF FUNDS
Total funds brought forward - 241,790 241,790 202,738
TOTAL FUNDS CARRIED FORWARD - 317,290 317,290 241,790
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The notes form part of these financial statements
Page 16
## **Classrooms in the Clouds**
## **Balance Sheet 31 December 2021**
|**Unrestricted**
**Restricted**
**fund**
**fund**
**Notes**
**£**
**£**
**FIXED ASSETS**
Tangible assets
8
-
-
**CURRENT ASSETS**
Cash at bank
-
320,224
**CREDITORS**
Amounts falling due within one year
9
-
(2,934)
**NET CURRENT ASSETS**
-
317,290
**TOTAL ASSETS LESS CURRENT LIABILITIES**
-
317,290
**NET ASSETS**
-
317,290
**FUNDS**
10
Restricted funds
**TOTAL FUNDS**|**2021**
**Total**
**funds**
**£**
-
320,224
(2,934)
317,290
317,290
317,290
317,290
317,290|**2020**
**Total**
**funds**
**£**
686
243,991
(2,887)
241,104
241,790
241,790
241,790
241,790|
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 25 June 2022 and were signed on its behalf by:
............................................. M Hagen - Trustee
The notes form part of these financial statements
Page 17
## **Classrooms in the Clouds**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Financial reporting standard 102 - reduced disclosure exemptions**
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 33% on cost
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
continued...
Page 18
## **Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021**
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2. DONATIONS AND LEGACIES
2021 2020
£ £
Donations 257,243 211,735
3. INVESTMENT INCOME
2021 2020
£ £
Deposit account interest - 2
4. CHARITABLE ACTIVITIES COSTS
Direct
Costs
2021
£
Education projects 152,000
2020
£
142,500
5. SUPPORT COSTS
Finance Other Totals
2021 2021 2021
£ £ £
Raising donations and legacies 282 29,461 29,743
2020 2020 2020
£ £ £
118 30,067 30,185
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2021 2020
£ £
Depreciation - owned assets 686 685
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## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
continued...
Page 19
## **Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021**
## **8. TANGIBLE FIXED ASSETS**
**----- Start of picture text -----**
Computer
equipment
£
COST
At 1 January 2021 and 31 December 2021 2,057
DEPRECIATION
At 1 January 2021 1,371
Charge for year 686
At 31 December 2021 2,057
NET BOOK VALUE
At 31 December 2021 -
At 31 December 2020 686
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Accruals and deferred income 2,934 2,887
10. MOVEMENT IN FUNDS
Net
movement At
At 1/1/21 in funds 31/12/21
£ £ £
Restricted funds
Restricted fund 241,790 75,500 317,290
TOTAL FUNDS 241,790 75,500 317,290
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Restricted funds
Restricted fund 257,243 (181,743) 75,500
TOTAL FUNDS 257,243 (181,743) 75,500
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continued...
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## **Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021**
## **10. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
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Net
movement At
At 1/1/20 in funds 31/12/20
£ £ £
Restricted funds
Restricted fund 202,738 39,052 241,790
TOTAL FUNDS 202,738 39,052 241,790
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Restricted funds
Restricted fund 211,737 (172,685) 39,052
TOTAL FUNDS 211,737 (172,685) 39,052
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement At
At 1/1/20 in funds 31/12/21
£ £ £
Restricted funds
Restricted fund 202,738 114,552 317,290
TOTAL FUNDS 202,738 114,552 317,290
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Restricted funds
Restricted fund 468,980 (354,428) 114,552
TOTAL FUNDS 468,980 (354,428) 114,552
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A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
continued...
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**Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021**
## **11. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2021.
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## **Classrooms in the Clouds**
## **Detailed Statement of Financial Activities for the Year Ended 31 December 2021**
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2021 2020
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 257,243 211,735
Investment income
Deposit account interest - 2
Total incoming resources 257,243 211,737
EXPENDITURE
Charitable activities
Education projects 152,000 142,500
Support costs
Finance
Postage and stationery 125 -
Bank charges 157 118
282 118
Other
Sundries 122 110
Administrative support 25,283 25,295
Computer software and maintenance costs 418 403
Independent examiners' fee 764 740
Insurance 432 432
Legal and professional fees 733 -
Foreign currency losses 1,023 2,401
Computer equipment 686 686
29,461 30,067
Total resources expended 181,743 172,685
Net income 75,500 39,052
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This page does not form part of the statutory financial statements
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