**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 2023**
## **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 2023**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Trustees**|2 to 14|
|**Independent Examiner's Report**|15|
|**Statement of Financial Activities**|16|
|**Balance Sheet**|17|
|**Notes to the Financial Statements**|18 to 21|
|**Detailed Statement of Financial Activities**|22|
**Classrooms in the Clouds**
**Reference and Administrative Details for the Year Ended 31 December 2023**
**TRUSTEES** M A Cashin (resigned 24/6/2023) S Hagen M Hagen (Chairman) L McLaren D G Sherpa A S Roberts D G Thomas C Owen A Waller (appointed 24/6/2023) S Sixsmith (appointed 24/6/2023) **REGISTERED OFFICE** 10 Grammar School Lane Wirral Merseyside CH48 8AY **REGISTERED COMPANY** 10471484 (England and Wales) **NUMBER REGISTERED CHARITY** 1170522 **NUMBER 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 2023. 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.
## **Why?**
Nepal is a land of mountains: both awe-inspiring physical peaks, and the metaphorical barriers which stand in the way of children’s schooling and women’s aspirations. Together, we believe we can move mountains. We can empower these women, and in turn the children they teach.
- Together, we can provide the resources needed to break down those barriers – from functioning classrooms to teacher training;
- Together, we can address gender inequalities, supporting women with a passion for teaching to become role models for the next generation;
- Together, we can spread the message through a network of schools and organisations in the UK, ultimately helping more children towards a brighter future and more women to find their own ‘why’.
## **What Nepali School Communities Want and Need**
A key desire is the development of high quality teaching and learning in local state schools. An emphasis on educating the youngest to become creative, resilient, curious, literate and numerate is essential for developing lifelong learning.
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The communities want teachers that work hard, are punctual and regular attendees and are excellent in their role. That is why we sponsor female teachers who are traditionally underrepresented in school and ensure they are on the same employment terms as government teachers. They are supported in tackling any skills shortfall with 3 female Education Support Leaders (ESLs) who lead and mentor the sponsored teachers.
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The ESLs provide sponsored teachers training and mentorship in their school settings. The majority of support is peer led and modelled in the classroom.
Engaging with the whole school community, Principals, SMC, Municipalities, teachers and parents, we can deliver a sustainable model for excellent teaching and learning for the 3 to 8 year old children in the 16 supported schools.
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## **How Is It Done?**
- Building good quality, earthquake-resistant classrooms;
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- Tackling gender inequality issues;
- Sponsoring, training and supporting
- new, local, female teachers;
- Creating long-term, sustainable
- partnerships with schools.
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## **What does the School Community Say?**
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**----- Start of picture text -----**
Lhamu Sherpa on her way to work
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Lhamu’s professional development includes early years skills, grade teaching, menstrual health and teaching experience in the UK (CITC ‘sister schools’). She studied whilst working and achieved her Bachelor in Education. Lhamu has been so impressive that the school appointed her Head of Early Years to oversee child-centred teaching in 8 early years classes – it is rare to see a woman in a school management role in rural Nepal.
The Chair of the Rural Municipality said, “I see small children so excited while going to school and are so well connected to their teachers, which was not noticeable when we had subject-based teaching. I have also remarked very excellent teamwork among the Early Grade Teachers compared to the subject based teachers in higher grades. Early Grade Teachers spend more time with children and provide individual care, which promotes the individual development of the children. I think it is the strength, the beauty of the Early Years at Shree Sagarmatha. As a parent and school invigilator, I have seen an improved performance of the grade teachers, which has direct influence on the children’s learning.
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## **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;
- **Release 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:
- **Passion –** attract passionate people who
- make a positive difference to those in need;
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- **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;
- **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_ ;
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We are developing the building blocks of education by improving the _early years teaching_ in terms of the built environment, skills and resources.
## **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 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.
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**----- Start of picture text -----**
Reusable Menstrual Health Kit being Made by Local
Women, trained by CITCNepal
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- **Cultural Empathy** – being interested in
- people and cultures, displaying empathy and embracing diversity;
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## **Achievements and performance**
Due to the generosity of so many people and organisations, income generation moved back to pre-pandemic levels. The main financial supporter of CITC remained behind CITC through all the challenges and underpins the ambitions of the team.
**A project at the village of Lokhim** to provide 6
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classrooms, an early years play area, toilets, clean water and fully resourced classrooms was detailed in last year’s report as under construction. It was completed in 2023 and officially opened by the local community in March.
Community representatives spoke about their excitement for the future of their children and CITC Director Samden Sherpa was able to share plans for developing the partnership further in front of his extended family who were visiting from far and wide.
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## **Learning Centre/Learning Hubs**
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The Rotary Club of Mid Wirral initiated a great fundraising effort by cycling the Caledonian Way. CITC’s secretary and Trustee led the ride and the club raised enough funds to be able to make a successful application for an International Rotary Global Grant with their international partner The Rotary Club of Dilibazar, Kathmandu. CITC is the ‘Cooperating Organization’.
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The project was to create a Learning Hub and 2 Learning Centres at 3 schools in the Lower SoluKhumbu – Shree, Lukla, Shree Garma and Shree Hunga. They would be ‘super’ libraries fully resourced for the relevant age ranges and with Interactive Computer Boards with approved education software. Each Rural Municipality (who have responsibility for Education) contributed by providing a building making it a true community partnership.
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They are now all up and running with training on the new IT having been given. CITC even used the Hub at Garma to host an annual teacher training event.
The final phase will be to fit photo-voltaic cells and battery storage at Shree Lukla – specialist advice has concluded that they will be best sited on the roof of a 6 classroom construction due for completion in 2024.
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The **Classroom/toilet project** referred to is underway at Shree Lukla the first school supported by CITC back in 2007. This time it will be a breath-taking 2 storey construction due for completion by October 2024. Special mention for the local Rural Municipality who have made a significant contribution to the project reflecting the importance they place on their children’s education.
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CITC is now confident in the power supply to the school as a result of the IRGG investment in Solar Energy. For the first time, therefore, each of the new classrooms will feature Interactive Boards to enhance the learning for the children and teachers.
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**Teacher Sponsorship –** Trustees agreed in 2023 to extend the number of sponsored female teachers to 27 working out of supported schools. CITC continues to mirror the Nepal Government teacher salaries and benefits. A selection process is run with the school and we are continually impressed with the work and attitude of successful applicants. They receive peripatetic support from the 3 CIRC Education Support Leaders who create a strong bond with the school community. 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
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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.
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CITC provided specialist training in child-centred, active learning, lesson planning, menstrual health and first aid. CITC invests in teacher materials and workbooks.
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 16 schools in the lower SoluKhumbu, 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,
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**----- Start of picture text -----**
Wedding of NGO Members Sona and
Samden Sherpa
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CITCNepal employs Samden as their Director of Partnerships and Governance, 3 peripatetic Education Support Leaders 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.
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**The crazy international band of cyclists** were on their adventures again this time in the Pyrenees. On a ride called ‘The Raid of The Judgement Mountains’ – 5 days, 12 Cols, 450KM and over 9,000M of ascent. For those who wanted more there was a 5 day warm up covering the same distances. Once again, the ride was made possible by the support team of Stan, Judy and Carol who fed, guided, encouraged and cheered the riders.
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Their efforts and the generosity of the sponsors (special mention for Diana Kanter who was indefatigable) meant over £20,000 was raised to support the fitting out of the classrooms being built at Shree Lukla.
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## **Financial Review**
Income levels have returned to pre-pandemic levels with a number of exciting possibilities emerging for 2024.
We raise money in a variety of ways, including:
- **Joint fundraisers** ;
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Cheshire Fire and Rescue Service
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•
•
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_Long Time Supporters Shayne and Hazel Adams, Kaboodle, Ludlow and Church Stretton_
- **Sponsored challenges** ;
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## **Grants from trusts and foundations;**
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_International Rotary foundation_
## • **Corporate Fundraising** ;
Hengistbury Investment Partners LLP Charitable Trust
- **International Support**
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## • **Donations of time and expertise**
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_Art project in Bung delivered by professional UK artist Lynda Roberts – providing art training and skills to teachers_
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_Part of the renovated library in Kharikhola, one of many transformations led by long term CITC supporter Cathie Bremner Owen_
_Asia Bookroom Annual Xmas Tree Fundraiser_
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The attached financial statements show that the money held by the charity at 31 December 2023 in the UK was £201,156.10.
## **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 form 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 **£100,000** 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 £100,000 from restricted funds as the beginning balance. Trustees will consider the size of the Reserve Fund annually.
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## **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.
In 2023 1 Trustee left and 2 Trustees were appointed bringing the total to 9. 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:
|**Organisation/Role**|**Who**|**Responsibility**|
|---|---|---|
|Classrooms in the Clouds|Trustees|Executive Responsibility for CITC
strategy including financial decisions
andpartnerships|
|Classrooms in the Clouds Nepal|NGO Committee|Delivery and supervision of Projects as
agreed byCITC ‘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
charityeffectiveness|
|Classrooms in the Clouds Nepal|NGO Committee|To support CITC by working within their
systems andprocedures|
|Classrooms in the Clouds|Trustees|To receive and carefully consider
petitions and other requests and
examine them against local need and
charityaims|
|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
agreedplan|
|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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## **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 2024 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 1 building project a year typically providing 6 new classrooms;
- Where necessary, projects will include gender specific toilets and clean water as part of our support for women and girls;
- By 2024, 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|Address|
|*Michael Hagen|Chair Trustee|**10 Grammar School Lane,Wirral,CH48 8AY|
|Sarah Hagen|SecretaryTrustee|10 Grammar School Lane,Wirral,CH48 8AY|
|David Thomas|Treasurer Trustee|22 Park Close,Oakley,Hants RG23 7LE|
|Dawa Geljen
Sherpa|Trustee/President
CITCNepal|Kathmandu|
|Mark Cashin
Resigned 24/6|Trustee|c/o Cheshire FRS HQ, Winsford, CW7 2FQ|
|Alex Waller
Appt 24/6|Trustee|c/o Cheshire FRS HQ, Winsford, CW7 2FQ|
|Lawrie McLaren|Trustee|Avenue Des Fleurs 22, Woluwe-St-Pierre, B-1150,
Belgium|
|Annette Roberts|Trustee|7 Carr Holme Gardens,Cabus,PR3 1LY|
|Catherine Owen|Trustee|2 Herrick Road,Scunthorpe,DN17 1NN|
|Sally Sixsmith
Appt 24/6|Trustee|c/o St. George’s CoE School, St. George’s, London
Road,Telford TF2 9LJ|
*Principal Officer; **Charitable Company registered address
Approved by order of the board of trustees on 22 June 2024 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 2023.
## **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 member of the Institute of Chartered Accountants in England and Wales, 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
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 2023**
|**Unrestricted**
**fund**
**Notes**
**£**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
-
Investment income
3
-
Other income
-
**Total**
-
**EXPENDITURE ON**
Raising funds
-
**Charitable activities**
4
Education projects
-
**Total**
-
**NET INCOME/(EXPENDITURE)**
-
**RECONCILIATION OF FUNDS**
Total funds brought forward
-
**TOTAL FUNDS CARRIED FORWARD**
-|**Restricted**
**fund**
**£**
305,765
548
-
306,313
35,153
268,881
304,034
2,279
195,701
197,980|**2023**
**Total**
**funds**
**£**
305,765
548
-
306,313
35,153
268,881
304,034
2,279
195,701
197,980|**2022**
**Total**
**funds**
**£**
209,031
-
671
209,702
31,453
299,838
331,291
(121,589)
317,290
195,701|
|---|---|---|---|
The notes form part of these financial statements
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## **Classrooms in the Clouds**
## **Balance Sheet 31 December 2023**
|**Unrestricted**
**fund**
**Notes**
**£**
**CURRENT ASSETS**
Cash at bank
-
**CREDITORS**
Amounts falling due within one year
8
-
**NET CURRENT ASSETS**
-
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
-
**NET ASSETS**
-
**FUNDS**
9
Restricted funds
**TOTAL FUNDS**|**Restricted**
**fund**
**£**
201,156
(3,176)
197,980
197,980
197,980|**2023**
**Total**
**funds**
**£**
201,156
(3,176)
197,980
197,980
197,980
197,980
197,980|**2022**
**Total**
**funds**
**£**
198,878
(3,177)
195,701
195,701
195,701
195,701
195,701|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 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 22 June 2024 and were signed on its behalf by:
M Hagen - Trustee
The notes form part of these financial statements
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## **Classrooms in the Clouds**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **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 exemption 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 2023**
|**2.**
**DONATIONS AND LEGACIES**
Donations
**3.**
**INVESTMENT INCOME**
Deposit account interest
**4.**
**CHARITABLE ACTIVITIES COSTS**
Education projects
**5.**
**SUPPORT COSTS**
Raising donations and legacies
**6.**
**TRUSTEES' REMUNERATION AND BENEFITS**|**Finance**
**£**
180||**2023**
**£**
305,765
**2023**
**£**
548
**Other**
**£**
34,973||**2022**
**£**
209,031
**2022**
**£**
-
**Direct**
**Costs**
**£**
268,881
**Totals**
**£**
35,153|
|---|---|---|---|---|---|
|||||||
|||||||
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
## **7. TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**||
|---|---|
||**Computer**|
||**equipment**|
||**£**|
|**COST**||
|At 1 January 2023 and 31 December 2023|2,057|
|**DEPRECIATION**||
|At 1 January 2023 and 31 December 2023|2,057|
|**NET BOOK VALUE**||
|At 31 December 2023|-|
|At 31 December 2022|-|
continued...
Page 19
## **Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2023**
|**8.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accruals and deferred income
**9.**
**MOVEMENT IN FUNDS**
**At 1/1/23**
**£**
**Restricted funds**
Restricted fund
195,701
**TOTAL FUNDS**
195,701
Net movement in funds, included in the above are as follows:
**Incoming**
**resources**
**£**
**Restricted funds**
Restricted fund
306,313
**TOTAL FUNDS**
306,313
**Comparatives for movement in funds**
**At 1/1/22**
**£**
**Restricted funds**
Restricted fund
317,290
**TOTAL FUNDS**
317,290
Comparative net movement in funds, included in the above are as follows:
**Incoming**
**resources**
**£**
**Restricted funds**
Restricted fund
209,702
**TOTAL FUNDS**
209,702|**2023**
**2022**
**£**
**£**
3,176
3,177
**Net**
**movement**
**At**
**in funds**
**31/12/23**
**£**
**£**
2,279
197,980
2,279
197,980
**Resources**
**Movement**
**expended**
**in funds**
**£**
**£**
(304,034)
2,279
(304,034)
2,279
**Net**
**movement**
**At**
**in funds**
**31/12/22**
**£**
**£**
(121,589)
195,701
(121,589)
195,701
**Resources**
**Movement**
**expended**
**in funds**
**£**
**£**
(331,291)
(121,589)
(331,291)
(121,589)|
|---|---|
continued...
Page 20
## **Classrooms in the Clouds**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2023**
## **9. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Restricted funds**
Restricted fund
**TOTAL FUNDS**|**At 1/1/22**
**£**
317,290
317,290|**Net**
**movement**
**in funds**
**£**
(119,310)
(119,310)|**At**
**31/12/23**
**£**
197,980|
|---|---|---|---|
||||197,980|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Restricted funds**
Restricted fund
**TOTAL FUNDS**|**Incoming**
**resources**
**£**
516,015
516,015|**Resources**
**Movement**
**expended**
**in funds**
**£**
**£**
(635,325)
(119,310)
(635,325)
(119,310)|
|---|---|---|
## **10. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2023.
Page 21
## **Classrooms in the Clouds**
## **Detailed Statement of Financial Activities for the Year Ended 31 December 2023**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Investment income**
Deposit account interest
**Other income**
Foreign currency profits
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Education projects
**Support costs**
**Finance**
Bank charges
**Other**
Postage and stationery
Sundries
Travelling
Administrative support
Computer software and maintenance costs
Independent examiners' fee
Insurance
Foreign currency losses
Advertising and marketing
Total resources expended
**Net income/(expenditure)**|**2023**
**£**
305,765
548
-
306,313
268,881
180
406
108
1,306
28,800
1,232
776
450
371
1,524
34,973
304,034
2,279|**2022**
**£**
209,031
-
671
209,702
299,838
146
54
13
1,274
27,534
1,225
776
431
-
-
31,307
331,291
(121,589)|
|---|---|---|
This page does not form part of the statutory financial statements
Page 22