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2021-03-31-accounts

Birtenshaw Merseyside

(A company limited by guarantee) Report and Financial Statements Year ended 31 March 2021 Charity number 1176826 Company number: 10500399

1

The Trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 31 March 2021which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, governance and management

Birtenshaw Merseyside is a subsidiary of the Birtenshaw group.

Birtenshaw Merseyside is a registered charity and a company limited by guarantee, governed by its Articles of Association.

Strategic development and governance decisions are made by the Board of Trustees, on advice provided by the Chief Executive, with the bulk of the work carried out by a very strong Committee structure following a Directorate model:

  1. School Governing body

  2. Audit, Finance and Risk

Each of these committees, is chaired by a Trustee and comprises other Trustees, the Chief Executive and the Department Head responsible for the respective Directorate. The full Board of Trustees meets on a bi-monthly basis, following the Directorate Committee meetings.

The Board of Trustees are advised and briefed by the Chief Executive, supported by the Senior Executive Team. This team meet on a weekly basis to ensure the smooth running of the organisation, linked to the Senior Management Team and the wider Management Team.

The Chief Executive communicates with the Chair on a regular basis to discuss the running of the organisation. Major issues are discussed and solutions are agreed where necessary. This enables the Board of Trustees to keep up to date with all services and activities at Birtenshaw Merseyside.

Trustee recruitment and induction

Trustee vacancies are promoted widely, normally in the media and via other organisations and professional bodies so as to encourage a broad and diverse range of applicants. Candidates are invited for a site- visit, encouraged to attend at least one Board meeting and interviewed by the Chair of the Board and the Chief Executive Officer who subsequently make an appointment recommendation to the Board.

On appointment, Trustees are allocated to the Committee structure as appropriate. All new Trustees are provided with an induction which includes relevant reading materials related to the governance of the charity. Training is offered to Trustees as required and a short training session on key issues is provided by the Charity Solicitor at each Board meeting. When circumstances allow an ‘away day’ event is held annually for Trustees to review and update the strategic plan.

2

Key management personnel

The Trustees have identified the Senior Executive Team as the key management personnel of the charity. Executive pay is agreed by the Board via an externally commissioned executive pay benchmarking exercise bi annually.

Objectives and activities

The Trustees refer to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The objects of the Charity as set out in the Articles of Association are

The Trustees confirm that Birtenshaw Merseyside has complied with Charity Commission guidelines in relation to Public Benefit.

Birtenshaw Merseyside was established in 2018. A new state of the art special school opened in January 2018 with the first cohort of pupils joining in September 2018. The school includes a range of classroom sizes enabling individual, paired or small group learning environments. There is a sports hall, health and 25m hydrotherapy suite, a range of light and dark sensory rooms, IT and library facilities, a play safe room and a fully kitted out flat where young people can learn independent living skills. The site is on a long-term lease agreement and all the staff are employed jointly by Birtenshaw and Birtenshaw Merseyside.

Principal risks and uncertainties

The management of activities and the implementation of the Birtenshaw Merseyside strategy are subject to a number of risks. The key risks are considered to be reputational such as a serious safeguarding incident, and Regulatory and Compliance matters which could all result in reduced funding. Safeguarding risks are mitigated by ensuring there are robust policies and procedures in place which include recruitment, induction and training for staff, a culture of openness and reporting, internal and external monitoring inspections and reports. Regulatory and compliance risks are mitigated by having policy and procedures aligned with regulations, regulatory inspections, internal and external monitoring inspections and an experienced and knowledgeable staff team.

Birtenshaw group has a risk register which is regularly reviewed by the Senior Executive Team and the Board of Trustees and appropriate processes put in place to monitor and mitigate them.

The process for this is: the risk is identified; control measures are applied to transfer the risk, for example, insurance or activity carried out by another service, accept or tolerate the risk, or, treat or control the risk, or, stop the activity. Risk is re-assessed at planned regular intervals to monitor and review the effectiveness of either the risk control or the solution.

3

Achievements and performance

The Charity provides high quality services and continues to invest in infrastructure and the school facility. The school was successful in an application to the Department of Education to increase registered numbers from 50 to 80 pupils and is now operating at full capacity.

Plans for future periods

Birtenshaw Merseyside’s main focus continues to be the delivery of high quality services to larger numbers of pupils with special needs.

Financial review

Birtenshaw Merseyside opened January 2018 but was not fully operational until the first cohort of pupils joined at the start of the 2018/2019 academic year. Since that time pupil numbers have increased and the school operating at full capacity.

Total incoming resources for the year were £4.7m (£2.8m 2019-20), with total resources expended £2.9m (£2.3m 2019-20), meaning that net incoming resources for the 2020-21 year were circa £1.8m. The Charity is considered a going concern as pupil numbers are at full capacity and liabilities can be met as they fall due.

Covid 19

Birtenshaw has continued to run essential education services throughout the pandemic. Income from these services is unaffected with local authorities committed to paying the fees. Some other discretionary services have resulted in a loss of income. We have taken measures to reduce costs where possible to offset any loss of income. To date there has been no adverse impact against budget of the net surplus of the organisation. Birtenshaw has not needed to access any of the Government schemes.

Reserves policy

The Trustees are responsible for ensuring that the Charity maintains an appropriate level of reserves to meet assessed risk and to manage cash flow. Birtenshaw Merseyside is required to quantify the free reserves position when applying the SORPs definition of free reserves. At 31 March 2021 the free reserves figure is £1.5m (2020: -£238k). This has to be considered in light of the fact the charity is new and only became operational in September 2018 with expenditure incurred before any income was generated. The position has increased considerably in the least 12 months.

For the purposes of short and medium term financial management, the Trustees are more concerned with management of cash, and have a target of holding cash levels sufficient to fund three months of ongoing unrestricted expenditure to cover the unlikely eventuality of a material decline in incoming resources. The School is at capacity and demand for services is high with no indication of a downturn. Operational forecasts are made with a high degree of certainty as they are based on age profiles of the service users and placement growth. In addition the source of income i.e. contract income from local authorities is stable and reliable. The Trustees consider the charity should be holding three months of expenditure in cash reserves, based on 21/22 forecasts this would equate to £915k. The 31 March 2021 cash position is £2.3m therefore exceeding the target.

4

Trustees' responsibilities

The Trustees (who are also directors of Birtenshaw Merseyside) for the purposes of company law) are responsible for preparing the Trustees' Report and the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

In so far as the Trustees are aware:

Small Company regime

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

This report was approved by the Board of Trustees on 23 November 2021 and signed on its behalf by:

Ryan Armitage Chair of the Board of Trustees

5

Reference and administrative details

Charity number: 1176826 Company number: 10500399 Registered Office: Darwen Road, Bromley Cross, Bolton. BL7 9AB

Our advisers

External Auditors Beever and Struthers Statutory Auditors St George's House, 215-219 Chester Road, Manchester M15 4JE. Bankers NatWest Bank 24 Deansgate, Bolton, BL1 1BN Solicitors Browne Jacobson 18-22 Bridge Street, Manchester. M3 3BZ

Directors and Trustees

The directors of the charitable company (the charity) are its Trustees for the purpose of charity law.

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

Key management personnel Birtenshaw: Trustees’ and Directors

Trustees

Mr R Armitage Chair of the Board of Trustees Mr G Tomison (Term of office ended 17 September 2021) Mr A Morse Chair of Care Services Committee Ms K Brown (Resigned 07 September 2021) Mr J Pilkington Mr M Walmsley Chair of Audit, Finance and Risk Committee Ms D Sidebottom Chair of Education Committee Mr T Long Ms H Kirk (Term of office ended 12 June 2021) Ms D Thompson

Key management personnel:

Chief Executive: David Reid Deputy Chief Executive: Operations Deputy Chief Executive: Resources

6

Independent Auditor’s Report to the members of Birtenshaw Merseyside

Opinion

We have audited the financial statements of Birtenshaw Merseyside “the charitable company” for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and the related notes note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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

We have nothing to report in this regard.

7

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

8

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

9

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Sue Hutchinson (Senior Statutory Auditor)

For and on behalf of

BEEVER AND STRUTHERS

Statutory Auditor

St George’s House

215/219 Chester Road Manchester M15 4JE

Date: 29 November 2021

10

Birtenshaw Merseyside

Statement of Financial Activities for year ended 31 March 2021

Note
Income from:
Donations and grants
3
Charitable activities
4
Other trading activities
5
Total income
Expenditure on:
Expenditure
on
charitable
activities:
Charitable activities
6
Total expenditure
Net (expenditure) and net
movement in funds for the
year
Total Funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total Funds
2021
£
£
£
6,312
22,047
28,359
4,630,914
-
4,630,914
13,517
-
13,517		 Total Funds
2020
£
6,627
2,736,426
61,613
4,650,743
22,047
4,672,790		 2,804,666
2,865,975
4,409
2,870,384		 2,334,860
2,865,975
4,409
2,870,384		 2,334,860
1,784,768
17,638
1,802,406
(48,641)
-
(48,641)		 469,806
(518,447)
1,736,127
14,688
1,753,765		 (48,641)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

See Note 25 for Comparative Statement of Financial Activities for year ended 31 March 2020

11

Birtenshaw Merseyside

Balance Sheet as at 31 March 2021

Note 2021 2020
£ £ £ £
Fixed assets
Tangible assets 14 240,896 189,342
Current assets
Debtors 15 138,029 294,532
Cash at bank and in hand 2,270,070 508,915
––––––––– –––––––––
2,408,099 803,447
Creditors: amounts falling due
within one year 16 (866,883) (960,572)
––––––––– –––––––––
Net current assets 1,541,216 (157,125)
–––––––––– –––––––––
Total assets less current liabilities 1,782,112 (32,216)
Creditors: amounts falling due
after more than one year 18
(28,347)		 (80,857)
–––––––––– –––––––––
Net liabilities 1,753,765 (48,641)
========== ==========
Income funds
Restricted funds 21 17,638 -
Unrestricted funds 1,736,127 (48,641)
–––––––––– –––––––––
Total funds 1,753,765 (48,641)
========== ==========

and signed on their behalf by:

The Trustees have prepared accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The notes at pages 14 to 25 form part of these accounts

Mr R Armitage Ms D Sidebottom Chair of the Board of Trustees

Trustee Trustee

Approved by the Trustees on 23 November 2021

12

Birtenshaw Merseyside

Statement of Cash Flows for year ended 31 March 2021

2021 2020
£ £
Net cash generated from
Operating Activities 1,952,241 593,504
Cash flow from investing activities
Purchase of tangible fixed assets (126,414) (62,989)
Interest received 26 -
––––––––– ––––––––
(126,388) (62,989)
Cash flow from financing activities
Bank loan interest (6,388) (8,706)
Repayment of bank loans (57,294) (54,975)
Interest element on hire purchase (6,016) (6,016)
––––––––– ––––––––
(69,698) (69,697)
Net change in cash and cash equivalents 1,761,155 460,818
Cash and cash equivalents at beginning of year 508,915 48,097
Cash and cash equivalents at end of year 2,270,070 508,915
Reconciliation of Operating Surplus to Net Cash Inflow
from Operating Activities 2021 2020
£ £
Cash generated from operating activities
Surplus for the financial year 1,802,405 469,806
Adjustment for non cash items
Deprecation of tangible fixed assets 74,890 48,209
Decrease/(increase) in trade and other debtors 156,503 (261,090)
Increase/(decrease) in trade and other creditors (88,905) 321,857
Adjustment for investing or financial activities
Interest paid 12,404 14,722
Interest received (26) -
Net cash generated from operating activities 1,957,241 593,504

13

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

Notes on the accounts

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Birtenshaw Merseyside meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Preparation of the accounts on a going concern basis

The Trustees consider the financial position of the Charity on a regular basis as part of Board meeting discussions. In assessing the appropriateness of adopting the going concern basis for the preparation of these financial statements they considered the Charity’s three year plan to March 2024, the progress against the plan to date, the expected and secured amount of pupil numbers and the current bank facilities . The Trustees have concluded that the forecasts that have been prepared are appropriate and that the level of secured and expected pupil numbers is of a level that sufficient income will be generated to fund its activities and consequently the Charity can meet its financial obligations as they fall due and hence have concluded that it is appropriate to consider the organisation a going concern .

c) Income

Incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

Income receivable is reviewed on an entitlement, certainty and measurement basis. Income not meeting this criterion is treated as deferred income.

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable.

Income for service charges receivable for children’s education are recorded in the Statement of Financial Activities in the year in which they are received; amounts received that relate to academic terms subsequent to the accounting period are deferred.

Investment income is included when receivable.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these financial statements.

14

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

1. Accounting Policies (continued)

d) Resources expended

All expenditure is accounted for on an on-going basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of the resources. The irrecoverable element of VAT is included with the item of expenses to which it relates.

e) Reserves

Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity; unrestricted funds comprise the accumulated surpluses and deficits of unrestricted income and expenditure. Where the Trustees set aside unrestricted funds for specific purposes these are termed designated funds. Restricted funds are those where the donor has imposed restrictions on the use of the funds which are binding. Income arising on restricted funds and expenditure in respect of these funds are reflected through the Statement of Financial Activities.

f) Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

g) Leasing and hire purchase commitments

Rentals applicable to operating leases are charged to the Statement of Financial Activities over the period in which the cost is incurred. Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charges. Finance charges are written off to the Statement of Financial Activities over the period of the lease so as to produce a constant periodic rate of charge.

15

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

1. Accounting Policies (continued)

h) Liquid resources

For the purposes of the cash flow statement, liquid resources are defined as current asset investments and short term deposits.

i) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, human resources, payroll and governance costs which support Birtenshaw’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 8.

j) Operating leases

The charity classifies the lease of, printers, IT and sensory equipment as operating leases; the title to the equipment remains with the lessor and the equipment is replaced every 5 years whilst the economic life of such equipment is normally 10 years. Rental charges are charged on a straight line basis over the term of the lease.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The organisation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the charity may indemnify a Trustee or former Trustee against any liability incurred by him in that capacity to the extent permitted by sections 232 to 234 of the Companies Act 2006.

16

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

3. Income from donations and grants

2021 2021 2020
Unrestricted
Restricted
Total		 Total
Funds funds funds Funds
£ £ £ £
Donations - - - -
Grants receivable for core activities 6,311 22,047 28,359 6,627
6,311 22,047 28,359 6,627
**4. ** Income from charitable activities
Unrestricted
Unrestricted
funds funds
2021 2020
£ £
Education 4,630,914 2,736,426
Total income from charitable activities 4,630,914
2,736,426
**5. ** Income earned from other trading activities
2021 2020
£ £
Minor trading operations 13,517
61,613
**6. ** Analysis of expenditure on charitable activities
Other Total Total
Staff Costs Depreciation Costs 2021 2020
£ £ £ £ £
Cost of generating funds
Costs
of		 generating
donations and legacies - - - - -
Charitable activities
Education 1,942,228 74,860 853,296 2,870,384 2,334,860
Activities undertaken
directly (note 7)
Total 1,942,228 74,860 853,296 2,870,384 2,334,860

17

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

7. Summary analysis of expenditure for charitable activities

This table shows the cost of the main charitable activity

Costs
Children’s Services
Catering costs
Staff-related costs
Business running costs
Motor and travel
Loan interest
Training expenses		 Education
Total
2021
Total
2020
£
£
£
34,219
56,749
-
652,020
89,888
13,112
7,308
34,219
56,749
-
652,020
89,888
13,112
7,308
36,780
44,976
14,435
636,706
69,497
14,722
10,128
853,296
853,296
827,244

8. Analysis of governance and support costs

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned in line with income between the key charitable activities undertaken (see note 7) in the year. Refer to the table below for the analysis of support and governance costs.

Legal and other professional fees
Audit fees
Bank charges
Total		 Education
Total Total
2021 2020
£
£ £
3,653
3,653 576
4,212
4,212 6,884
107
107 107
7,972
7,972 7,561

9. Net income/(expenditure) for the year

2021 2020
This is stated after charging: £ £
Operating leases – Equipment 1,672 1,046
Motor vehicles 61,604 49,009
Properties 393,036 393,036
Depreciation 74,860 48,209
Audit fees 5,335 5,640

18

Notes forming part of the financial statements for the year ended 31 March 2021

_______________________________________________________________________________________

10. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Salaries and wages
Social security costs
Pension costs		 2021
2020
£
£
1,761,016
1,314,937
91,985
73,295
89,226
71,175
1,942,227
1,459,407

Salary costs are met by Birtenshaw and recharged directly. The wages costs above include costs for contract workers of £168k. (2020: £189k)

The number of employees whose annual remuneration was £60,000 or more were:

£100,001 - £110,000
£150,001 - £160,000		 2021
2020
Number
Number
2
2
1
1
3
3

The charity Trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). Related party transactions involving Trustees are detailed at note 12.

The key management personnel of the parent charity, comprise the Trustees, the Chief Executive Officer, Deputy Chief Executive: Operations and the Deputy Chief Executive: Resources. The total employee benefits of the key management personnel of the group were £506,000 (2020: £463,000).

11. Staff Numbers

The average number of employees during the year was as follows:

Education 2021
2020
Number
Number
63
50
63
50

The average number of full-time equivalent employees during the year was:

Education 2021
2020
Number
Number
56
45
56
45

19

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

12. Related party transactions

The charity enjoys a close working relationship with it parent Birtenshaw. Salary costs are met by Birtenshaw and recharged directly. Other associated costs are met by Birtenshaw and recharged directly.

Revenue funding
Staff Costs
Legal and professional
Other associated costs		 2021
2020
£
£
1,779,690
1,285,893
-
-
36,209
51,701
1,812,899
1,337,594

The charity enjoys a close working relationship with Tezlom (formally 247 / Professional Health). The Chair of the Board of Trustees is a Director and 30% shareholder of Tezlom. The company provides the charity with agency staff to support our activities.

Revenue funding
Tezlom		 2021
2020
£
£
13,251
-
13,251
-

All the above expenditure was included under staffing costs, and has been included in the financial statements under expenditure on charitable activities.

At the 31 March 2021 there was a trade creditor of £7,541 (2020: £Nil).

All the above expenditure has been included in the financial statements under expenditure on charitable activities.

At the 31 March 2021 there was no debtor or creditor balance with Birtenshaw (2020: nil)

13. Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

20

Notes forming part of the financial statements for the year ended 31 March 2021

_______________________________________________________________________________________

14. Tangible fixed assets

Cost:
As at 1 April 2020
Additions
Disposals
As at 31 March 2021
Depreciation:
As at 1 April 2020
Charge for the year
Depreciation
on
Disposals
As at 31 March 2021
Net book value
As at 31 March 2021
As at 31 March 2020		 Fixtures, Fittings Motor
Total
And Equipment Vehicles
£
£
£
245,355
12,750
258,105
35,022
91,392
126,414
-
-
-
280,377
104,142
384,519
(64,726)
(4,037)
(68,763)
(59,262)
(15,598)
(74,860)
-
-
-
(123,988)
(19,635)
(143,623)
156,389
84,507
240,896
180,629
8,713
189,342

Net Book Value of assets held on finance leases included in fixtures, fittings and equipment is £52,817 (2020: £74,673)

15. Debtors

Trade debtors
Other debtors
Prepayments and accrued income		 2021
2020
£
£
13,557
277,948
-
2,153
124,472
14,431
138,029
294,532

16. Creditors: amounts falling due within one year

Bank loan
Other Loans
Trade creditors
Other creditors
Accruals and deferred income
Taxation and social security costs		 2021
2020
£
£
36,488
36,488
-
-
77,591
67,939
22,411
27,429
730,393
828,716
-
-
866,883
960,572

Details of financial instruments are contained in note 19.

21

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

17. Deferred income

Deferred income comprises college and education income received in advance.

Balance as at 1 April 2020
Amount released to income earned from charitable activities
Amount deferred in year
Balance as at 31 March 2021		 2021
2020
£
£
-
-
-
-
-
-
-
-

18. Creditors: amounts falling due after more than one year

Secured bank loan (falling due in less than 5 years)
HP agreements (falling due in less than 5 years)		 2021
2020
£
£

28,347
-
58,447
22,410
28,347
80,857

19. Financial instruments

Financial instruments measured at amortised cost comprise the loan financing provided by Big Issue Invest.

Debt analysis




Loans repayable by instalments:


Within one year


In one year or more but less than two years


In two years or more and less than five years




Total loans



 2021
£

36,488
28,347
-
__
64,835
____		 2020
£
36,488
58,447
-
__
94,935
____

Big Issue Invest Loan is unsecured.

The loan is repayable monthly at a fixed rate of interest of 8% per annum over a period of 5 years. The loan is due to be repaid in 2023.

At 31 March 2021 (2020: nil) the charity has no undrawn borrowing facilities :

22

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________
20. Commitments under hire purchase agreements
Not later than one year
Later than one year and not later than five years		 2021
2020
22,411
27,194
-
22,410
22,411
49,604

The obligations under hire purchase agreements are secured on the specific assets to which they relate.

21. Restricted funds

The income funds of the charity include restricted funds comprising the following balances of donations and grants held on trust for specific purposes.

Sunshine Variety Movements in funds
Balance at
Incoming
Resources
Balance at
1 April
2020
resources
expended
Transfers
31 March 2021
£
£
£
£
£
-
22,047
(4,409)
-
17,638
-
22,047
(4,409)
-
17,638

Sunshine Variety provided a grant for the purchase of a vehicle. The grant was restricted to the purchase of a vehicle which is being depreciated over five years

22. Analysis of assets and liabilities between funds

Tangible Fixed Assets
Debtors
Cash
Current Liabilities
Long term Liabilities
Total Net Assets
2020 Comparative
Tangible Fixed Assets
Debtors
Cash
Current Liabilities
Long term Liabilities
Total Net Assets		 Unrestricted
Restricted
Total
2021
2021
2021
223,258
17,638
240,896
19,914
-
19,914
2,270,070
-
2,270,070
(748,768)
-
(748,768)
(28,347)
-
(28,347)
1,736,127
17,638
1,753,765
Unrestricted
Restricted
Total
2020
2020
2020
189,342
-
189,342
294,532
-
294,532
508,915
-
508,915
(960,573)
-
(960,573)
(80,857)
-
(80,857)
(48,641)
-
(48,641)

23

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

23. Commitments under operating leases

At 31 March 2021 the company had annual payment commitments under non-cancellable operating leases as follows:

lows:
2021 2020
Land
 Land
& Buildings Other & Buildings Other
£ £ £ £
Expiry date:
Within one year 460,461 61,604 460,461 49,009
Between one and two years 1,841,844 117,559 1,841,844 98,017
Between two and five years 7,063,227 - 7,523,688 -
–––––– –––––– ––––––– –––––––
9,365,532 179,163 9,825,993 147,026
======= ======= ======= =======

24. Post-balance sheet events

None

24

Notes forming part of the financial statements for the year ended 31 March 2021 

_______________________________________________________________________________________

Birtenshaw Merseyside

25. Statement of Financial Activities for year ended 31 March 2020

Income from:
Donations and grants
Charitable activities
Other
trading
activities
Total income
Expenditure on:
Expenditure
on
charitable activities:
Raising funds
Charitable activities
Other
Total expenditure
Net
income/(expenditure)
and net movement in
funds for the year
Total Funds brought
forward
Total funds carried
forward		 Unrestricted
Funds
Restricted
Funds
Total Funds
2020
£
£
£
4,627
2,000
6,627
2,736,426
-
2,736,426
61,613
-
61,613		 Total Funds
2019
£
15,000
685,541
40,910
2,802,666
2,000
2,804,666		 741,451
-
2,332,860
-
-
2,000
-
-
2,334,860
-		 -
1,090,153
-
2,332,860
2,000
2,334,860		 1,090,153
469,806
-
469,806
(518,447)
-
(518,447)		 (348,702)
(169,745)
(48,641)
-
(48,641)		 (518,447)

25