Westside Education Trust Annual Report and Unaudited Financial Statements
31 August 2020
Charity Registration Number 1170872 (England and Wales)
Legal and administrative information
| Trustees | N Basden |
|---|---|
| T Corbett | |
| S Evans | |
| J Hepburn | |
| Director | A Hanratty (appointed 28 September 2020) |
| Principal address | Galena House |
| 8-30 Galena Road | |
| London | |
| W6 0LT | |
| Charity registration number | 1170872 (England and Wales) |
| Bankers | CAF Bank Limited |
| 25 Kings Hill Avenue | |
| Kings Hill | |
| West Malling | |
| Kent | |
| ME19 4JQ | |
| Independent examiner | Hugh Swainson |
| Buzzacott LLP | |
| 130 Wood Street | |
| London | |
| EC2V 6DL |
Westside Education Trust
Contents
| Reports | |
|---|---|
| Trustees’ report | 4 |
| Independent examiner’s report | 10 |
| Financial Statements | |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Principal accounting policies | 13 |
| Notes to the financial statements | 16 |
Westside Education Trust
Trustees’ report 31 August 2020
The Trustees of the Trust present their statutory report together with the accounts of Westside Education Trust (‘the Trust’) for the year ended 31 August 2020.
The accounts have been prepared in accordance with the accounting policies set out on pages 13 to 15 of the attached accounts and comply with the Trust’s Constitution, applicable laws, accounting standards (United Kingdom Generally Accepted Accounting Practice) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
Objectives and activities
The Trust was established as a Charitable Incorporated Organisation (CIO) on 21 December 2016. The Trust’s objects are the advancement of education for the public benefit. The policies adopted in furtherance of these objects are to provide grants, other finance, services, advocacy/advice/information and to act as a resource body. There has been no change in these objectives during the year.
The Board of Trustees have paid due regard to guidance on public benefit issued by the Charity Commission in deciding what activities the Trust should undertake.
The Trust is a Charitable Trust with the purposes of spreading best practice within the Alternative Provision (AP) network, building a strong AP community and promoting the successes of strong AP schools for students who have been excluded or are at risk of exclusion from mainstream education. At the same time, the Trust supports the wider AP sector and in particular the Association of Alternative Education Providers (AAEP), a membership network of outstanding AP schools, such as Westside School which has a model of small-school alternative provision, based on high standards and individual support. The AAEP works to gather and disseminate best practice; lobby policymakers; and raise the profile of the AP sector. The Trust’s aim is to maximise its limited resources by supporting the AP sector to help itself to share resources and knowledge, thus ensuring that excluded young people in the country achieve better educational outcomes.
National statistics show us that children excluded from mainstream schools have shockingly poor outcomes: only 4% of children in AP achieve passes (9-4) in both English and maths compared to 64% nationally. Just over half (54%) of children in AP do not progress to sustained destinations in comparison to 94% of children in mainstream. Children receiving Free School Meals (FSM) are four times more likely to be permanently excluded than those who are not eligible for FSM. Children with Special Educational Needs (SEN) are six times more likely to be permanently excluded. Speech and Language therapy is particularly needed in AP. 17% of teachers in AP are unqualified compared to 8% of teachers in mainstream. The average attendance rate for children in mainstream is 96%; for children in AP it is just 67%.[1]
Westside Education Trust 4
Trustees’ report 31 August 2020
Objectives and activities (continued)
There are many children who cannot cope within mainstream education and need Alternative Provision to help them realise their aspirations. However, AP settings vary widely across the country in what they provide for these children. In 13 Local Authorities, no children in AP have passed their English and maths GCSE in the past three years. There are 3 Local Authorities where not a single teacher in AP is qualified. There is also a huge disparity between the north and south of the country, with 1 in 50 pupils in the North East achieving a basic pass in maths and English, compared to 1 in 12 in outer London[1] .
Achievements and performance
The Trust is governed by four Trustees: Sarah Evans, who is the Chair, Nicholas Basden, Timothy Corbett and John Hepburn. Carol-Anne Alcock acts as a consultant for the Trust. She was selected for her wealth of experience in the education sector and work with vulnerable children. She has several decades of experience as an outstanding Headteacher in London and was chosen to mentor other school leaders for the London Challenge. There she realised her ambition to improve educational outcomes and reduce the number of permanently excluded children in schools. She has a track record of attracting qualified teachers and school leaders from mainstream schools to Westside School (AP) and ensuring existing AP staff become qualified teachers. She helped run two past AAEP conferences, setting the structure for AP heads to share best practice and also lobby for improved policies. Michelle Brain was employed to manage the website, the link with other AP schools and funding applications. She also sent out a newsletter with pertinent articles or information on conferences or workshops being hosted by the AAEP. Michelle was key to organising the annual AAEP conferences. Michelle stepped down from her role in the Trust on 31 August 2020.
For the next financial year, the Trustees have employed a Director, Alexandra Hanratty, to run the Trust. Alexandra has devoted her career to helping disadvantaged children and young people achieve their potential within the charitable sector. In her past role, she helped to lead a national charity providing fully funded bursaries to vulnerable and disadvantaged children across the UK. Prior to that, she worked as Deputy CEO of an award-winning education and employment charity serving disadvantaged families at the foot of the Grenfell Tower. She starts officially on 28 September 2020 and will work part-time for the Trust, thereby reducing overheads.
1 Centre for Social Justice, May 2020. Warming the Cold Spots of Alternative Provision
Westside Education Trust 5
Trustees’ report 31 August 2020
Achievements and performance (continued)
The main activity of the Trust in 2019/20 was to build upon the founding aims and objectives of the network of AP schools, continue linking AP schools with each other, spread best practice within the network, and promote the successes of strong AP schools such as Westside School. For example, we were delighted that Westside School and The Boxing Academy achieved outstanding in every category under the new OFSTED framework. The Trust has been approached by over 20 leaders in education nationwide such as AP Heads, academy trust CEOs and Local Authority representatives who have expressed a desire to visit outstanding APs and learn from the excellent practice happening there.
The Trust has also been involved in lobbying and profile-raising initiatives, including working with the Centre for Social Justice on AP reform. The AAEP unfortunately had to cancel the annual national conference scheduled for June 2020 due to Covid-19 but plans to hold its third annual conference in the summer of 2021 in London.
During the year, the Trustees agreed to change the name to AP Challenge Trust (APC) with effect from the new year to better reflect its commitment to the wider sector. In preparation for doing so it was also agreed to invite advisors with outstanding AP experience from other geographical regions of the United Kingdom.
Plans for the future
The Trust plans to continue supporting the spreading of effective practice in AP Schools and Pupil Referral Units (PRUs) thus ensuring that children who cannot cope in mainstream school have a better chance of having their needs met with more individualised learning, allowing better school outcomes and life chances.
The Trust is going through a time of re-development initiated with the employment of the new part-time Director from the coming year. We will be building a new website, under the new name of APC, and social media presence in the new year. The number of APs within our membership network is growing, and effort is being made to work with other networks, so there is more unification and collaboration across the sectors, including existing PRUs.
In 2020-2021 our operational plan includes:
-
♦ Responding to AP needs: we will actively go out and visit APs, listen to Heads and their teams to understand the issues they face, resources they need, and work with them to learn from others;
-
♦ Sharing best practice: we will support the AP sector, school and MAT leaders through an annual conference and consultancy support. In line with changes to government policy, we will also actively help MATs, schools and Local Authorities set up their own APs through our ‘grass roots’ approach of sharing best practice;
-
♦ Showcasing outstanding provision: we will show what can be achieved and lead by example by inviting other APs, CEO of academy trusts and Local Authority representatives to visit outstanding APs during the year;
Westside Education Trust 6
Trustees’ report 31 August 2020
Plans for the future (continued)
-
♦ Developing an impact assessment process by collecting research as an umbrella organisation for APs, thereby making the case for donor support;
-
♦ Creating a hub of information, advice and guidance through an informative and accessible website and targeted social media presence from January 2021;
-
♦ Fundraising to build a strong foundation for the Trust, thereby providing services to APs at an affordable membership cost;
-
♦ Working with other networks, to lobby central and local government, Children’s Commissioner and other interested parties; and
-
♦ Collaborating with supporting agencies such as think tanks and other charities (i.e. Teach First, The Centre for Social Justice) as well as schools to promote the AP Sector nationally and, for example, help to inspire more qualified teachers to work with children out of mainstream;
Covid-19
During the financial year, the Covid-19 pandemic has changed the shape and nature of the world, and all AP Schools.
Due to Covid-19, the annual conference that was planned for the end of the academic year has had to be put on hold as well as the Continued Professional Development (CPD) for middle managers in APs. We are aware that the Autumn term will be challenging for the education sector, and so we are planning an annual conference in the 2021 Summer Term.
Financial Impact
As a result of Covid-19, the donations from Westside Community Enterprises Limited (see note 1) have been greatly affected.
Our fundraising strategy for the new year has considered the impact of this reduced income on the Trust and has responded by seeking to have a mixture of donor and grant funding to spread the risk. The Trustees continue to monitor the finances and have kept a cap on expenditure by employing part-time personnel. There are no premises costs.
Financial review
Results for the year
A summary of the year’s results can be found on page 11 of this report and accounts.
Income amounted to £51,370 (2019 – £100,000), of which £31,000 (2019 – £80,000) was received from Westside Community Enterprises Limited and £20,370 (2019 – £20,000) was derived from other donations. Expenditure amounted to £79,241 (2019 – £97,667). This balance comprised £76,227 (2019 – £94,833) of staff costs and £3,014 (2019 – £2,834) of support costs.
Westside Education Trust 7
Trustees’ report 31 August 2020
Financial review (continued)
Results for the year (continued)
The accounts for 2020 show a net decrease in funds of £27,871 (2019 – net increase of £2,333).
The total net assets in the balance sheet of £57,593 (2019 – £85,464) are stated at market value and funds are unrestricted.
It is confirmed that the Trust’s funds and anticipated income for the coming year is adequate to fulfil the planned charitable activities of the Trust.
Reserves policy
The policy of the Trust is that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months’ expenditure. The board of Trustees considers that reserves at this level will ensure that, in the event of a significant drop ln funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised.
At 31 August 2020, the free reserves of the Trust amounted to £57,593 (2019 – £85,464), which the Trustees believe is sufficient in the above context.
Given the challenges that will arise in the short to medium term as a result of Covid-19, this level of reserves is deemed appropriate and the Trustees are content that the charity is a going concern.
Governance, structure and management
Appointment of Trustees and key management personnel
All Trustees have given their time freely and no Trustee remuneration was paid in the year. Trustees are appointed by the existing board, selected to meet the needs of the Trust.
A new Trustee or new Trustees may be appointed at any time (either by way of replacement or addition). Trustees serve for three years after which they may put themselves forward for re-appointment. The Trustee Board shall consist of at least two persons but (unless otherwise determined by the Trustees) there shall be no maximum number of Trustees that may be appointed.
A Trustee may be appointed or discharged by a resolution of a meeting of the Trustees, provided that a memorandum declaring such appointment or discharge shall be signed as a deed, either at the meeting by the person presiding or in some other manner directed by the meeting and affected by two persons present at the meeting.
The Trustees meet as often as it needs to be effective. At Trustees’ meetings, the Trustees agree the board strategy and areas of activity, including considering grant making, investment, reserves and risk management policies and performance.
Westside Education Trust 8
Trustees’ report 31 August 2020
Governance, structure and management (continued)
Risk management
With the exception of the challenges faced because of the Covid-19 pandemic (see above), the Trustees have considered the major risks to which the Trust is exposed and have reviewed those risks and established systems and procedures to manage those risks.
The major operational risk is the extent to which our grants successfully meet the Trust’s objectives. The Trustees manage this risk by retaining Trustees and a Director of sufficient expertise and skill and gaining advice from experts in the field so as to ensure that their activities continue to meet our charitable objectives.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these accounts, the Trustees are required to:
-
♦ select suitable accounting policies and then apply them consistently;
-
♦ observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
-
♦ make judgements and estimates that are reasonable and prudent;
-
♦ state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
-
♦ prepare the accounts on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the governing documents. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on 18 January 2021 and signed on their behalf by:
Trustee Sarah Evans Chair
Westside Education Trust 9
Independent examiner’s report Year to 31 August 2020
Independent examiner’s report to the members of Westside Education Trust
I report to the board of Trustees on my examination of the accounts of the Trust for the year ended 31 August 2020.
Responsibilities and basis of report
As the board of Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with my examination giving me cause to believe that in any material respect:
-
♦ accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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♦ The accounts do not accord with those records; or
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♦ the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
21.1.2021
Hugh Swainson, FCA for and on behalf of Buzzacott LLP 130 Wood Street London EC2V 6DL
Westside Education Trust 10
Statement of financial activities Year to 31 August 2020
| Notes | Total funds 2020 £ |
Total funds 2019 £ |
|---|---|---|
| Income from: Donations 1 Expenditure on: Charitable activities 2 Net (expenditure) income for the year and net movement in funds Reconciliation of funds: At 1 September 2019 At 31 August 2020 |
51,370 (79,241) |
100,000 (97,667) |
| (27,871) | 2,333 | |
| 85,464 | 83,131 | |
| 57,593 | 85,464 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure is derived from continuing operations during the above two financial periods.
Westside Education Trust 11
Balance sheet 31 August 2020
| Notes | 2020 £ |
2020 £ |
2019 £ |
2019 £ |
|---|---|---|---|---|
| Current assets: Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets and net assets The funds of the Trust: Unrestricted income funds |
— 64,599 |
57,593 | 30,000 59,559 |
85,464 |
| 64,599 (7,006) |
89,559 (4,095) |
|||
| 57,593 | 85,464 |
Approved by the board of Trustees and signed on their behalf by:
Type text here
Trustee Sarah Evans Chair Date: 18th January 2021
Westside Education Trust 12
Principal accounting policies 31 August 2020
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
Westside Education Trust is a Charitable Incorporated Organisation (CIO).
Basis of preparation
These accounts have been prepared for the year to 31 August 2020. Comparative information is provided in respect to the year to 31 August 2019.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Trust constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the accounts requires the Trustees to make significant judgements and estimates.
The items in the accounts where these judgements and estimates have been made include the allocation of support costs.
In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. Estimates of future income and expenditure flows have been made in assessing the impact of the pandemic on the charity’s financial position and on its going concern (see below).
Assessment of going concern
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.
Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the charity, its beneficiaries, partners and stakeholders and wider society. The reduced opportunities for scheduled face to face interaction may well impact on the ability to plan effectively for the medium term but it is not anticipated at the current time that the overall financial position of the charity will be adversely affected or its financial solvency threatened.
Westside Education Trust 13
Principal accounting policies 31 August 2020
Assessment of going concern (continued)
The Trustees are of the opinion that the Trust will have sufficient resources to meet its liabilities as they fall due.
Income recognition
Income is recognised in the period in which the Trust has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Donations are recognised when the Trust has confirmation of both the amount and the settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that the donation is subject to conditions that require a level of performance before the Trust is entitled to the funds, the income is deferred and not recognised until either the conditions are fully met, or the fulfilment of these conditions are wholly within the control of the Trust and it is probable that these conditions will be fulfilled in the reporting period.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs.
Expenditure on charitable activities comprises staff costs and support costs.
All expenditure is statement inclusive of irrecoverable VAT.
Allocation of support and governance costs
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Trust it is necessary to provide support in the form of administrative services.
Governance costs comprise the costs involving the public accountability of the Trust (including audit costs) and costs in respect of its compliance with regulation and good practice.
Support costs and governance costs are apportioned directly to the one charitable activity.
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.
Cash at bank and in hand and short term deposits
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.
Westside Education Trust 14
Principal accounting policies 31 August 2020
Creditors
Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the Trust anticipates it will pay to settle the debt.
Fund structure
The unrestricted income fund represents funds available for the general charitable purposes of the Trust at the discretion of the Trustees.
Cash flow
The accounts do not include a statement of cash flow because the Trust is exempt from the requirement to prepare such a statement under the Charities SORP (FRS 102).
Westside Education Trust 15
Notes to the financial statements 31 August 2020
| 1 2 3 4 5 |
Income from: donations | Total 2020 £ 31,000 20,370 51,370 |
Total 2019 £ |
|---|---|---|---|
| Donations . Westside Community Enterprises Limited . Other gifts and donations |
80,000 20,000 |
||
| 100,000 | |||
| Expenditure on: charitable activities | Total 2020 £ 76,227 310 2,704 79,241 |
Total 2019 £ |
|
| Staff costs (note 5) Support costs (note 3) Governance costs (note 4) |
94,833 1,584 1,250 |
||
| 97,667 | |||
| Support costs Website costs Travel and subsistence Insurance Bank charges Total Governance costs Independent examiner’s remuneration – current year Accountancy fees Governors’ meeting expenses Total Staff costs and Trustees’ remuneration |
Total 2020 £ |
Total 2019 £ |
|
| — — 250 60 |
977 202 345 60 |
||
| 310 | 1,584 | ||
| Total 2020 £ |
Total 2019 £ |
||
| 1,104 1,200 400 |
1,000 250 — |
||
| 2,704 | 1,250 | ||
| 2020 £ |
2019 £ |
||
| Gross salaries Social security costs Consultancy fees |
20,904 320 |
35,000 4,830 |
|
| 21,224 55,003 |
39,830 55,003 |
||
| 76,227 | 94,833 |
| Staff costs and Trustees’ remuneration | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Gross salaries | 20,904 | 35,000 |
| Social security costs | 320 | 4,830 |
| 21,224 | 39,830 | |
| Consultancy fees | 55,003 | 55,003 |
| 76,227 | 94,833 |
Westside Education Trust 16
Notes to the financial statements 31 August 2020
5 Staff costs and Trustees’ remuneration (continued)
There was one employee during the year (2019 – one employee) who was involved in the co-ordination and direction of the work of the Trust. No employees received remuneration in excess of £60,000 during the year (2019 – none).
No Trustee received any remuneration in respect of their services during the period (2019 – none).
No Trustees were reimbursed for expenditure incurred in the performance of their duties during the period (2019 – none).
The key management personnel of the Trust in charge of directing and controlling the Trust comprise the Trustees. The total remuneration (including taxable benefits but excluding employer's pension contributions) of the key management personnel for the period was £nil (2019 – £nil).
6 Taxation
Westside Education Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
7 Debtors: amounts falling due within one year
| 8 | 2020 £ |
2019 £ |
|
|---|---|---|---|
| Other debtors | — | 30,000 | |
| Creditors: amounts falling due within one year | 2020 £ |
2019 £ |
|
| Accruals and deferred income | 7,006 | 4,095 | |
| 7,006 | 4,095 |
9 Related party transactions
Westside Education Trust received a donation of £31,000 (2019 – £80,000) in the year to 31 August 2020 from Westside Community Enterprises Limited, which is a trading subsidiary of Westside Academy Trust. Two of the Trustees of Westside Education Trust are also directors of Westside Academy Trust. At 31 August 2020, no amounts were due from Westside Community Enterprises Limited (2019 - £30,000).
Two of the Trustees of the Trust are also Trustees of Westside Academy Trust. Carol-Anne Alcock is also a Consultant to Westside Academy Trust as well as being the sole Director of Edukid Limited through which consultancy services are provided to Westside Education Trust. During the year to 31 August 2020, these consultancy services totalled £55,003 (2019 – £55,003).
There were no other related party transactions during the year (2019 – none).
Westside Education Trust 17