Charity number: 1182947
FORMATIO
CHARITY TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2020
CHARITY REGISTRATION NUMBER 1182947
FORMATIO
CONTENTS
Charity Trustees’ Report ……………………… …………………………………………………………………………………………………….3 Independent Examiner’s Report ..................................................................................................................... 10 Statement of Financial Activities………………………………………….…………………………………………………………………………11 Balance Sheet…………………………………………………………………………………………………………………………………………………12 Notes to the Financial Statements……………….…………………………………………………………………………………………….....13
Formatio
Charity Trustees’ Report period ended 31 August 2020
Reference and Administrative Details
Charity Trustees
Bishop Alan Stephen Williams Catherine Anne Bryan Dr Arthur Naylor Paul Edward Stephen Barber Jane Ann Beever Professor John Scott Davidson (to September 2019) Professor Margaret Ann House Michael Peter Shorten Fr Adrian Porter SJ Anne Marie Whittle Margaret Sue Cronin Dr Daniel Doyle (to November 2019) Timothy Mark Warren Rt Hon Jennifer Nancy Willott OBE Angela Mary Cox OBE Robert Simpson Colleen Mary Collett
Bankers:
Lloyds Bank PLC Commercial Banking PO Box 1000 BX1 1LT
Charity registered number: 1182947
Principal office: 39 Eccleston Square London SW1V 1BX
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Formatio
Charity Trustees’ Report For the period ended 31 August 2020
Introduction
The Charity Trustees present their annual report together with the financial statements of FORMATIO for the period ended 31 August 2020.
Structure, Governance and Management
Formatio is a Charitable Incorporated Organisation incorporated on 11[th] April 2019. Its objects are to advance the Catholic religion for the public benefit by supporting Catholic education, and, in particular, to do so by promoting the formation of teachers, leaders and governors in Catholic education. The constitution of Formatio provides for a national network of Associate Members, consisting of the 22 Catholic dioceses of England and Wales, all Catholic universities, teaching schools (in England) and pioneer schools (in Wales). Representatives of the Associate Members meet together in four Regional Hubs.
The affairs of Formatio are managed by its national Steering Group, who are the Charity Trustees. Eight of the Charity Trustees are elected by the Associate Members, with two being elected by the Associate Members of each Region. Elected Charity Trustees are elected for a term of three years. Ten Charity Trustees are appointed, one each by the four Catholic universities, The Bishops’ Conference, the Conference of Religious and the Catholic Independent Schools’ Conference, and three by the Catholic Education Service. The Charity Trustees have the power to co-opt up to three further Charity trustees.
Charity Trustees
The Charity Trustees shown in the reference and administrative details of the CIO served throughout the period covered by this report except where otherwise shown.
No Charity Trustee received any remuneration from the charity during the period. No Charity Trustee had any beneficial interest in any contract with the charity during the period.
Risk Management
The CIO has assessed major risks faced by the charity and sought to establish systems and procedures to mitigate those risks. The main risks are the risk arising from the CIO’s dependency on its main funder and the risk of loss of key staff, committee members and Charity Trustees.
Potential Conflicts of Interest
A Charity Trustee must:
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Declare the nature and extent of any interest, direct or indirect, which he or she has in a proposed transaction or arrangement with the CIO or in any transaction or arrangement entered into by the CIO which has not previously been declared, and
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Absent himself or herself from any discussion of the Charity Trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the CIO and any personal interest (including but not limited to any financial interest).
Any Charity Trustee absenting himself or herself from any discussion with this clause must not vote or be counted as part of the quorum in any decision of the Charity Trustees on the matter.
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Achievements and Performance
Introduction
There are 853,435 pupils educated in 2,198 Catholic schools across twenty-two Catholic dioceses in England and Wales. The Formatio national strategy for leadership and governance was established in Summer 2017 supported by seed funding secured from the Assumption Legacy Fund for the purpose of employing four Hub Development Officers (HDOs) to work in four regional hubs across the twenty-two Catholic dioceses in England and Wales. The two HDOs in the North West and North East regional hubs were appointed from September 2018 and a successful appointment was made in the South East hub from September 2019. It is hoped that an appointment to the South West regional hub will be made during the 2020/2021 academic year.
Formatio Vision Statement
The national strategy conveys a clear vision to form, nourish and sustain Catholic leaders of education for faithful service founded on courage, humility, hopefulness and joy. This vision statement is the outcome of collaboration with Catholic school, college and university leaders, who identified the key themes and characteristics of effective and wholesome Catholic leadership, appropriate for our time. It was agreed by the Steering Group at their Spring 2019 meeting and is universally accepted.
National Strategy and Regional Hubs
The hub-based regional model for diocesan collaboration is established with four regional chairs in place. Termly reports to the national Formatio Steering Group from the HDOs have demonstrated the benefits of the regional hub model and the role of the HDOs which has facilitated the collaboration and co-operation of dioceses within each hub ensuring that all are empowered to form, nourish and sustain serving and aspiring leaders of Catholic education.
The national strategy has been used by regions to work effectively with their diocesan neighbours, adapt and refine processes that already existed and, in some instances, start to establish new processes. The Formatio Steering Group has worked to successfully unlock huge potential and a wealth of resources, not apparent before and there remains so much more to be developed in order to maximise this. It has provided the opportunity to bring together what works well in order to enhance the whole range of faith formation and professional development for leadership and governance in Catholic education. The Formatio national strategy empowers dioceses to collaborate regionally in order to strengthen provision and maximise opportunity.
In the NW, where the dioceses had formed the North West Catholic Dioceses Training Partnership fifteen years ago, there is a long history of working in partnership to provide leadership development and formation. There is a well embedded Framework for Leadership Development supporting teachers at every stage of their career. Similarly, in the NE, a number of cross diocesan programmes and initiatives developed over recent years, are now being supported and further developed by the NW HDO.
The SE and SW regional hubs are now established, though less advanced in their progress. Diocesan directors in both regional hubs are committed to the national strategy and to working together to ensure that the structures are in place to facilitate this.
North West Regional Hub
The North West regional hub includes the Catholic dioceses of Lancaster, Salford, Shrewsbury, Wrexham and the archdiocese of Liverpool. The NW HDO works with the North West Catholic Dioceses Training Partnership, driving the collaboration and contributing to the strategic vision for continued future development of the priority of forming Catholic leaders for the future.
The group continued to work to ensure that all leaders are encouraged to gain the National Professional Qualifications (NPQs), appropriate to their professional development and preparation for leading a school(s). Previous collaboration with providers of the NPQs confirmed that the content of the government programmes cannot be adapted to meet the distinctive needs of the Catholic leader but all North West
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dioceses agreed to adopt the model developed in the Archdiocese of Liverpool. Colleagues applying for the NPQs through their dioceses will be placed in a Catholic hub, so that they study the programme with other Catholic leaders and delivery of the programme content will involve Catholic leaders.
The NW HDO has been heavily involved in the framework for Catholic Leadership programmes which has been secured for 2019/20 academic year with colleagues having started the Catholic Middle Leaders programme at the beginning of the Autumn term. The newly developed Catholic Senior Leader Programme has been launched with recruitment for January 2020 underway. In July 2020, a NW regional hub day was planned for newly appointed head teachers across the five dioceses offering a variety of nourishing and sustaining opportunities to support them in their role; this had to be postponed. The partnership submitted a bid to the Leadership Equality and Diversity (LED) Programme Fund to support the ongoing development of the forming, nourishing, sustaining offer for Catholic leaders at all levels.
Following a review and refresh of the Catholic Leadership programmes and replaced by the Framework for Leadership Development which was launched in September 2019, it is evident that delegates are on the programme most appropriate to them for whichever stage they are in their career. Feedback from the programme leaders confirms that the revised framework and progression structure has resulted in better recruitment onto the programmes and that delegates are ambitious and committed future Catholic Leaders. There are 50 delegates from all five dioceses on both the Catholic middle leadership programme and the Catholic senior leadership programme. Aspiring to Assistant Head Teacher/Deputy Head Teacher programme has 39 delegates, Aspiring to Headship 18 delegates and Accompaniment to Headship 13 delegates, supported by DfE Equality and Diversity Fund.
North East Regional Hub
The North East regional hub includes the Catholic dioceses of Hallam, Hexham & Newcastle, Leeds, Middlesbrough, and Nottingham. The NE HDO has worked with all dioceses across the region and agreed priorities for the 2019/20 academic year, including the development of a resource focusing on the ethics of Catholic school leadership. To progress this, the NE HDO joined the Leeds diocesan Virtues and Leadership HT working group which is informed by “Moving towards Virtuous Professional Practice”, a paper on Catholic leadership standards produced by the Jubilee Centre for Character and Virtues. Leeds diocese piloted a mentoring scheme for new head teachers during their first five years, with mentor training facilitated by Leeds Trinity University. The programme is underpinned by the head teacher standards and will be shared across the hub following the pilot.
The NE HDO is also worked with Leeds Trinity University, to explore how a more effective partnership might be developed with reference to the Formatio national strategy. Early Career Development training and development resources will be piloted in Bradford and shared with other dioceses following the pilot. The dioceses of Leeds and Middlesbrough have collaborated on a new initiative, Audax Ducis , launched during the 2019/20 academic year to support induction for new Primary head teachers.
Growing collaboration between the five NE dioceses enabled further work to be undertaken with North East Teaching Schools across the region and the NE HDO has worked with a number of dioceses to maximise opportunities for teaching schools supporting and developing Catholic leaders. A successful bid to the DfE Equality and Diversity Fund supported 15 participants on the Aspiring Secondary HT programme across Lancashire and West Yorkshire. This programme, originally developed by the diocese of Hexham & Newcastle with cross diocesan delegates, has been refreshed to better reflect the Formatio national strategy.
The Leadership Academy in the diocese of Nottingham was established in direct response to the four academy trusts that have been established in the diocese and the need to form, nourish and sustain key staff; participants on the programmes followed a rigorous recruitment process. The Developing Leaders (RQTs/Middle Leaders) and Advancing Leaders (Middle Leaders/Senior Leaders) programmes both have 17
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delegates. The NE HDO hopes that opportunities will become available for delegates from other NE dioceses to participate in the future.
South East Regional Hub
The South East regional hub includes the Catholic dioceses of Arundel & Brighton, Brentwood, East Anglia, Northampton and the archdioceses of Southwark and Westminster. A successful appointment was made at the end of the summer term 2020 and the SE HDO will take up post in September 2020.
South West Regional Hub
The South West regional hub includes the Catholic dioceses of Clifton, Menevia, Plymouth, Portsmouth, and the archdioceses of Birmingham and Cardiff. The six diocesan directors continued to meet termly and in November 2019 agreed that having established these connections, and with the structure in place, they are now in a stronger position to work with an HDO to form, nourish and sustain leaders of Catholic education in the SW. A successful recruitment campaign took place during the summer term 2020.
Formatio National Projects
The Formatio strategy has provided the opportunity for a coherent, professional coordination of all aspects of the formation of Catholic educators across the country. The HDOs have had the unique opportunity of gaining an overview of the best practice across all dioceses in their regional hubs, while also observing the potential for further development and future growth and feeding this into the priorities for the national strategy. As well as working regionally, the HDOs have also been involved in the preparation, planning and delivery of a number of national Formatio projects.
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Catholic school leadership research questionnaire and talent management matrix Two projects have emerged in the Archdiocese of Liverpool: a talent management matrix and a research questionnaire on Catholic school leadership. After further piloting in northern dioceses, the long-term plan is to roll out these nationally as key tools which will inform future development priorities and investment in the recruitment, tracking and formation of Catholic leaders.
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National Catholic Syllabus for staff in Catholic schools – a paper was presented to the Formatio Steering Group in March 2020 proposing that a National Catholic Syllabus be developed for all staff teaching in Catholic schools across England and Wales. There was unanimous agreement that this should be developed further.
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National Catholic Leadership Programme – preliminary discussions took place during the Summer 2020 term to develop a more formal professional pathway to leadership in Catholic schools. The current licences for National Professional Qualifications (NPQs) ends at the end of the next academic year and what is proposed could provide a Catholic alternative. In addition, funding for the ninety Catholic Teaching Schools will also cease in September 2021 as the DfE replaces the current model with teaching school hubs giving no guarantee that any Catholic schools who apply will be selected. In the light of these developments, this initiative would provide an opportunity to harness the experience, resources and capacity of Catholic Teaching Schools across the four hubs to develop a high quality Catholic school leadership programme, that integrates functional educational leadership development with Catholic values and principles at the core rather than as an additional add-on module.
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Executive Leaders Formation Programme – over 100 serving and aspiring executive leaders have now completed this training which focussed on the role of the executive leader in the context of the mission and faith formation; feedback was overwhelmingly positive. All delegates were serving
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executive head teachers, head teachers or deputy head teachers, aspiring to roles with even greater responsibility. The collaboration with the Catholic Independent Schools Conference and EducareM has established key partnerships that we hope will continue with this and other future projects. Planning is in progress for a third cohort in 2020/21.
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CEO formation, training and network opportunities – a growing number of dioceses are organising their schools into multi academy trusts (MATs) led by a Chief Executive Officer, a role that is still relatively new in Catholic education. The first national conference was hosted by the diocese of Leeds in May 2020.
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Online Induction Training for Governors – following the pilot during the summer term 2019, modules 1&2 were released at the beginning of October 2019; during the first week, nearly 200 governors had registered. Schools have already commented that the first two modules will also be useful for whole school staff CPD. Additional modules are due to be finalised in Autumn 2020 and all modules will be diversified for use in Wales.
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Formatio website went live in summer 2020 (formatio.org.uk)
COVID-19
The safety, security and wellbeing of staff along with diocesan staff and school communities is always our highest priority and has been paramount in considering the ongoing work of Formatio during the 2019/20 academic year. During the first national lockdown which began on 23 March 2020, the HDOs worked at home and meetings and all aspects of Formatio work moved online in order to comply fully with PHE advice. Two of the three HDOs were also furloughed, the third not being eligible for the scheme. The HDOs were furloughed for two periods of six weeks; the first period during April/May 2020 and the second, over the summer break. Regular meetings took place during these periods in order to keep in touch with colleagues.
Notwithstanding the disruption caused by periods of furlough, the work of Formatio continued regardless, albeit in unprecedented circumstances. This was reported on in the usual way with HDO reports and updates about ongoing projects and new initiatives to the national Steering Group which continued to meet termly online.
Financial review
Reserves Policy
The operational policy for Formatio is to ensure that it has adequate financial reserves to meet its charitable obligations and day-to-day working requirements, as well as to meet future commitments. Formatio is reliant on income from fundraising to meet this operational policy. All funds are treated as restricted and are administered by the Charity Trustees. The organisation currently has no infrastructure costs. Support services for the current project are provided on a voluntary basis.
Financial Statement
During the period under review the Assumption Legacy Fund provided total £250,000 to fund the employment of Hub Development Officers (HDOs) in 4 regions – NW, NE, SE, SW for an initial period of 2 years. The HDOs were to be provided by an external provider; to date 3 HDOs have been provided. The total cost of these services to 31 August 2020 amounted to £81,845, leaving a balance of £168,155 for the remainder of the project. Fixed term contracts apply to all those engaged on the project.
Formatio Future Plans
In November 2019, the Formatio Steering Group met to complete a SWOT analysis of progress to date and agree key priorities for the next twelve months:
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Collaboration to ensure complete coverage and maximum benefit for the entire Catholic community across England and Wales
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Recruitment and retention and the development of a pathway to identify and grow Catholic leaders through a coaching and mentoring journey of accompaniment
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Research/intelligence based identification of areas of greatest need (the cold spots ) – seeking opportunity to work with Catholic universities to underwrite the research to ensure impact
The long-term plan is to maintain and further develop Formatio as a force in the development and nourishment of Catholic school leaders including governors, by empowering the regional hubs and supporting them from the centre. There is a confidence that the dioceses will see the regional hub model as an integral part of their structure to grow and develop Catholic leadership at all levels. The CIO intends to continue funding projects which promote the Formation of Teachers, Leaders and Governors in Catholic Education, it intends to ensure that this remains relevant to the needs facing education today. It will continue to seek funding for relevant projects.
Charity Trustees' Responsibilities Statement
The Charity Trustees are responsible for preparing the CIO’s Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Charity Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that period. In preparing these financial statements, the Charity Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue in operation.
The Charity Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the CIO’s transactions and disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Charity Trustees on 8[th] June 2021 and signed on their behalf by:
___________ Catherine A Bryan, Chair, Formatio Steering Group
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Independent Examiner’s Report to the Charity Trustees of Formatio
I report to the charity trustees on my examination of the accounts of the Formatio (the Charity) for the period 11 April 2019 to 31 August 2019.
Responsibilities and basis of report
As the Charity Trustees of the Charity, 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 Charity’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 the examination giving me cause to believe that in any material respect:
(1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
(2) the accounts do not accord with those records; or
(3) 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.
Name: David Smy FCA Address: Brompton House, St John’s Road, Bath, BA2 6PT
Date:
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Formatio: Statement of Financial Activities
(including Income & Expenditure Account)
For the year period 11 April 2019 to 31 August 2020
| 2020 | ||||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| Notes | £ | £ | £ | |
| INCOME from | ||||
| Donations and legacies: | ||||
| Grants | 1 | - | 250,000 | 250,00 |
| Donations | 250 | - | 250 | |
| ----------------- | ----------------- | ----------------- | ||
| Total income | 250 | 250,000 | 250,250 | |
| ----------------- | ----------------- | ----------------- | ||
| EXPENDITURE on | ||||
| Charitable activities: | ||||
| Cost of regional hubs | 2 | 250 | 81,845 | 82,095 |
| ---------------- | ---------------- | ---------------- | ||
| Total expenditure | 250 | 81,845 | 82,095 | |
| ---------------- | ---------------- | ---------------- | ||
| Net income/(expenditure) and | ||||
| Net movement in funds | - | 168,155 | 168,155 | |
| ------------------ | ------------------ | ------------------ | ||
| Funds at 31 August 2020 | £- | £168,155 | £168,155 | |
| ========= | ========= | ========= |
The charity had no recognised gains or losses other than as disclosed in the Statement of Financial Activities for the period ended 31 August 2020.
The accompanying notes form part of these financial statements.
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Formatio: Balance Sheet As at 31 August 2020
| 2020 | |||
|---|---|---|---|
| Notes | £ | £ | |
| CURRENT ASSETS | |||
| Cash at bank and in hand | 250,000 | ||
| CREDITORS:Amounts falling | |||
| due within one year | 6 | 81,845 | |
| ---------------- | |||
| NET CURRENT ASSETS | 168,155 | ||
| ---------------------- | |||
| NET ASSETS | £168,155 | ||
| ========== | |||
| FUNDS AND RESERVES | |||
| Unrestricted | - | ||
| Restricted | 7 | 168,155 | |
| ---------------------- | |||
| £168,155 | |||
| ========== |
The accompanying notes form part of these financial statements.
Approved by the Charity Trustees on 2020 and signed on their behalf by
Catherine Bryan Chair of Charity Trustees
Paul Barber Charity Trustee
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Formatio Notes to the financial statements For the period ended 31 August 2020
ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Formatio 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).
Assessment of going concern
The Charity Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Charity Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The Charity Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Charity Trustees are of the opinion that the charity will have sufficient resources to meet all its liabilities as they fall due.
Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific artistic projects being undertaken by the charity.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
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Expenditure on charitable activities comprises the cost of operating the regional hubs.
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Other expenditure represents those items not falling into any other heading.
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.
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.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
| 1. | GRANTS AND DONATIONS | 2020 | ||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| £ | £ | £ | ||
| Assumption Legacy Fund | - | 250,000 | 250,000 | |
| Donations | 250 | - | 250 | |
| ------------------- | ------------------- | ------------------- | ||
| £250 | £250,000 | £250,250 | ||
| ========= | ========= | ========= | ||
| 2. | EXPENDITURE ON CHARITABLE ACTIVITIES | |||
| Unrestricted | Restricted | |||
| Costs of charitable objectives | - | 81,845 | ||
| Governance costs (including | ||||
| Independent Examination fees | 250 | |||
| ------------------- | ------------------- | |||
| £250 | £81,845 | |||
| ========= | ========= | |||
| 3. | NET INCOME/EXPENDITURE FOR THE YEAR | 2020 | ||
| £ | ||||
| This is stated after charging: | ||||
| Independent Examiner's remuneration | ||||
| - Examination | 100 | |||
| - Accountancy services | 150 | |||
| ------------------- | ||||
| £250 | ||||
| ========= | ||||
| 4. | STAFF COSTS | |||
| There were on average 2 employees during the year and | their | |||
| remuneration was: | ||||
| - Salaries |
40,902 | |||
| - Social security costs |
2,996 | |||
| - Pension costs |
1,824 | |||
| ___ | ||||
| £ 45,722 | ||||
| ========== |
No employee received emoluments totalling £60,000 or more.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
5. 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 object.
6. CREDITORS: amounts falling due within one year
| 2020 | ||||||
|---|---|---|---|---|---|---|
| £ | ||||||
| Accruals and deferred income | 81,845 | |||||
| ---------------------- | ||||||
| £81,845 | ||||||
| ========== | ||||||
| 7. | RESTRICTED FUNDS | |||||
| Period ended 31 August 2020 | Fund balance | Income | Expenditure | Fund balance |
||
| At start of | At end of | |||||
| year | Year | |||||
| £ | £ | £ | £ | |||
| Assumption Legacy Fund | - | 250,000 | 81,845 |
168,155 | ||
| ---------------------- | --------------------- | -------------------- |
-------------------- | |||
| £- | £250,000 | £81,845 |
£168,155 | |||
| ========== | ========== | ========== |
========== | |||
| 8. | ANALYSIS OF NET ASSETS | |||||
| At 31 August 2020 | ||||||
| Unrestricted | Restricted |
Resources | ||||
| Funds | Funds | |||||
| £ | £ | £ | ||||
| Current Assets | - | 250,000 | 250,000 | |||
| Current Liabilities | - | (81,845) | (85,648) | |||
| ---------------------- | --------------------- -------------------- |
|||||
| £- | £168,115 £168,115 |
|||||
| ========== | ========== ========== |
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Charity number: 1182947
FORMATIO
CHARITY TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2020
CHARITY REGISTRATION NUMBER 1182947
FORMATIO
CONTENTS
Charity Trustees’ Report ……………………… …………………………………………………………………………………………………….3 Independent Examiner’s Report ..................................................................................................................... 10 Statement of Financial Activities………………………………………….…………………………………………………………………………11 Balance Sheet…………………………………………………………………………………………………………………………………………………12 Notes to the Financial Statements……………….…………………………………………………………………………………………….....13
Formatio
Charity Trustees’ Report period ended 31 August 2020
Reference and Administrative Details
Charity Trustees
Bishop Alan Stephen Williams Catherine Anne Bryan Dr Arthur Naylor Paul Edward Stephen Barber Jane Ann Beever Professor John Scott Davidson (to September 2019) Professor Margaret Ann House Michael Peter Shorten Fr Adrian Porter SJ Anne Marie Whittle Margaret Sue Cronin Dr Daniel Doyle (to November 2019) Timothy Mark Warren Rt Hon Jennifer Nancy Willott OBE Angela Mary Cox OBE Robert Simpson Colleen Mary Collett
Bankers:
Lloyds Bank PLC Commercial Banking PO Box 1000 BX1 1LT
Charity registered number: 1182947
Principal office: 39 Eccleston Square London SW1V 1BX
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Formatio
Charity Trustees’ Report For the period ended 31 August 2020
Introduction
The Charity Trustees present their annual report together with the financial statements of FORMATIO for the period ended 31 August 2020.
Structure, Governance and Management
Formatio is a Charitable Incorporated Organisation incorporated on 11[th] April 2019. Its objects are to advance the Catholic religion for the public benefit by supporting Catholic education, and, in particular, to do so by promoting the formation of teachers, leaders and governors in Catholic education. The constitution of Formatio provides for a national network of Associate Members, consisting of the 22 Catholic dioceses of England and Wales, all Catholic universities, teaching schools (in England) and pioneer schools (in Wales). Representatives of the Associate Members meet together in four Regional Hubs.
The affairs of Formatio are managed by its national Steering Group, who are the Charity Trustees. Eight of the Charity Trustees are elected by the Associate Members, with two being elected by the Associate Members of each Region. Elected Charity Trustees are elected for a term of three years. Ten Charity Trustees are appointed, one each by the four Catholic universities, The Bishops’ Conference, the Conference of Religious and the Catholic Independent Schools’ Conference, and three by the Catholic Education Service. The Charity Trustees have the power to co-opt up to three further Charity trustees.
Charity Trustees
The Charity Trustees shown in the reference and administrative details of the CIO served throughout the period covered by this report except where otherwise shown.
No Charity Trustee received any remuneration from the charity during the period. No Charity Trustee had any beneficial interest in any contract with the charity during the period.
Risk Management
The CIO has assessed major risks faced by the charity and sought to establish systems and procedures to mitigate those risks. The main risks are the risk arising from the CIO’s dependency on its main funder and the risk of loss of key staff, committee members and Charity Trustees.
Potential Conflicts of Interest
A Charity Trustee must:
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Declare the nature and extent of any interest, direct or indirect, which he or she has in a proposed transaction or arrangement with the CIO or in any transaction or arrangement entered into by the CIO which has not previously been declared, and
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Absent himself or herself from any discussion of the Charity Trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the CIO and any personal interest (including but not limited to any financial interest).
Any Charity Trustee absenting himself or herself from any discussion with this clause must not vote or be counted as part of the quorum in any decision of the Charity Trustees on the matter.
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Achievements and Performance
Introduction
There are 853,435 pupils educated in 2,198 Catholic schools across twenty-two Catholic dioceses in England and Wales. The Formatio national strategy for leadership and governance was established in Summer 2017 supported by seed funding secured from the Assumption Legacy Fund for the purpose of employing four Hub Development Officers (HDOs) to work in four regional hubs across the twenty-two Catholic dioceses in England and Wales. The two HDOs in the North West and North East regional hubs were appointed from September 2018 and a successful appointment was made in the South East hub from September 2019. It is hoped that an appointment to the South West regional hub will be made during the 2020/2021 academic year.
Formatio Vision Statement
The national strategy conveys a clear vision to form, nourish and sustain Catholic leaders of education for faithful service founded on courage, humility, hopefulness and joy. This vision statement is the outcome of collaboration with Catholic school, college and university leaders, who identified the key themes and characteristics of effective and wholesome Catholic leadership, appropriate for our time. It was agreed by the Steering Group at their Spring 2019 meeting and is universally accepted.
National Strategy and Regional Hubs
The hub-based regional model for diocesan collaboration is established with four regional chairs in place. Termly reports to the national Formatio Steering Group from the HDOs have demonstrated the benefits of the regional hub model and the role of the HDOs which has facilitated the collaboration and co-operation of dioceses within each hub ensuring that all are empowered to form, nourish and sustain serving and aspiring leaders of Catholic education.
The national strategy has been used by regions to work effectively with their diocesan neighbours, adapt and refine processes that already existed and, in some instances, start to establish new processes. The Formatio Steering Group has worked to successfully unlock huge potential and a wealth of resources, not apparent before and there remains so much more to be developed in order to maximise this. It has provided the opportunity to bring together what works well in order to enhance the whole range of faith formation and professional development for leadership and governance in Catholic education. The Formatio national strategy empowers dioceses to collaborate regionally in order to strengthen provision and maximise opportunity.
In the NW, where the dioceses had formed the North West Catholic Dioceses Training Partnership fifteen years ago, there is a long history of working in partnership to provide leadership development and formation. There is a well embedded Framework for Leadership Development supporting teachers at every stage of their career. Similarly, in the NE, a number of cross diocesan programmes and initiatives developed over recent years, are now being supported and further developed by the NW HDO.
The SE and SW regional hubs are now established, though less advanced in their progress. Diocesan directors in both regional hubs are committed to the national strategy and to working together to ensure that the structures are in place to facilitate this.
North West Regional Hub
The North West regional hub includes the Catholic dioceses of Lancaster, Salford, Shrewsbury, Wrexham and the archdiocese of Liverpool. The NW HDO works with the North West Catholic Dioceses Training Partnership, driving the collaboration and contributing to the strategic vision for continued future development of the priority of forming Catholic leaders for the future.
The group continued to work to ensure that all leaders are encouraged to gain the National Professional Qualifications (NPQs), appropriate to their professional development and preparation for leading a school(s). Previous collaboration with providers of the NPQs confirmed that the content of the government programmes cannot be adapted to meet the distinctive needs of the Catholic leader but all North West
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dioceses agreed to adopt the model developed in the Archdiocese of Liverpool. Colleagues applying for the NPQs through their dioceses will be placed in a Catholic hub, so that they study the programme with other Catholic leaders and delivery of the programme content will involve Catholic leaders.
The NW HDO has been heavily involved in the framework for Catholic Leadership programmes which has been secured for 2019/20 academic year with colleagues having started the Catholic Middle Leaders programme at the beginning of the Autumn term. The newly developed Catholic Senior Leader Programme has been launched with recruitment for January 2020 underway. In July 2020, a NW regional hub day was planned for newly appointed head teachers across the five dioceses offering a variety of nourishing and sustaining opportunities to support them in their role; this had to be postponed. The partnership submitted a bid to the Leadership Equality and Diversity (LED) Programme Fund to support the ongoing development of the forming, nourishing, sustaining offer for Catholic leaders at all levels.
Following a review and refresh of the Catholic Leadership programmes and replaced by the Framework for Leadership Development which was launched in September 2019, it is evident that delegates are on the programme most appropriate to them for whichever stage they are in their career. Feedback from the programme leaders confirms that the revised framework and progression structure has resulted in better recruitment onto the programmes and that delegates are ambitious and committed future Catholic Leaders. There are 50 delegates from all five dioceses on both the Catholic middle leadership programme and the Catholic senior leadership programme. Aspiring to Assistant Head Teacher/Deputy Head Teacher programme has 39 delegates, Aspiring to Headship 18 delegates and Accompaniment to Headship 13 delegates, supported by DfE Equality and Diversity Fund.
North East Regional Hub
The North East regional hub includes the Catholic dioceses of Hallam, Hexham & Newcastle, Leeds, Middlesbrough, and Nottingham. The NE HDO has worked with all dioceses across the region and agreed priorities for the 2019/20 academic year, including the development of a resource focusing on the ethics of Catholic school leadership. To progress this, the NE HDO joined the Leeds diocesan Virtues and Leadership HT working group which is informed by “Moving towards Virtuous Professional Practice”, a paper on Catholic leadership standards produced by the Jubilee Centre for Character and Virtues. Leeds diocese piloted a mentoring scheme for new head teachers during their first five years, with mentor training facilitated by Leeds Trinity University. The programme is underpinned by the head teacher standards and will be shared across the hub following the pilot.
The NE HDO is also worked with Leeds Trinity University, to explore how a more effective partnership might be developed with reference to the Formatio national strategy. Early Career Development training and development resources will be piloted in Bradford and shared with other dioceses following the pilot. The dioceses of Leeds and Middlesbrough have collaborated on a new initiative, Audax Ducis , launched during the 2019/20 academic year to support induction for new Primary head teachers.
Growing collaboration between the five NE dioceses enabled further work to be undertaken with North East Teaching Schools across the region and the NE HDO has worked with a number of dioceses to maximise opportunities for teaching schools supporting and developing Catholic leaders. A successful bid to the DfE Equality and Diversity Fund supported 15 participants on the Aspiring Secondary HT programme across Lancashire and West Yorkshire. This programme, originally developed by the diocese of Hexham & Newcastle with cross diocesan delegates, has been refreshed to better reflect the Formatio national strategy.
The Leadership Academy in the diocese of Nottingham was established in direct response to the four academy trusts that have been established in the diocese and the need to form, nourish and sustain key staff; participants on the programmes followed a rigorous recruitment process. The Developing Leaders (RQTs/Middle Leaders) and Advancing Leaders (Middle Leaders/Senior Leaders) programmes both have 17
6
delegates. The NE HDO hopes that opportunities will become available for delegates from other NE dioceses to participate in the future.
South East Regional Hub
The South East regional hub includes the Catholic dioceses of Arundel & Brighton, Brentwood, East Anglia, Northampton and the archdioceses of Southwark and Westminster. A successful appointment was made at the end of the summer term 2020 and the SE HDO will take up post in September 2020.
South West Regional Hub
The South West regional hub includes the Catholic dioceses of Clifton, Menevia, Plymouth, Portsmouth, and the archdioceses of Birmingham and Cardiff. The six diocesan directors continued to meet termly and in November 2019 agreed that having established these connections, and with the structure in place, they are now in a stronger position to work with an HDO to form, nourish and sustain leaders of Catholic education in the SW. A successful recruitment campaign took place during the summer term 2020.
Formatio National Projects
The Formatio strategy has provided the opportunity for a coherent, professional coordination of all aspects of the formation of Catholic educators across the country. The HDOs have had the unique opportunity of gaining an overview of the best practice across all dioceses in their regional hubs, while also observing the potential for further development and future growth and feeding this into the priorities for the national strategy. As well as working regionally, the HDOs have also been involved in the preparation, planning and delivery of a number of national Formatio projects.
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Catholic school leadership research questionnaire and talent management matrix Two projects have emerged in the Archdiocese of Liverpool: a talent management matrix and a research questionnaire on Catholic school leadership. After further piloting in northern dioceses, the long-term plan is to roll out these nationally as key tools which will inform future development priorities and investment in the recruitment, tracking and formation of Catholic leaders.
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National Catholic Syllabus for staff in Catholic schools – a paper was presented to the Formatio Steering Group in March 2020 proposing that a National Catholic Syllabus be developed for all staff teaching in Catholic schools across England and Wales. There was unanimous agreement that this should be developed further.
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National Catholic Leadership Programme – preliminary discussions took place during the Summer 2020 term to develop a more formal professional pathway to leadership in Catholic schools. The current licences for National Professional Qualifications (NPQs) ends at the end of the next academic year and what is proposed could provide a Catholic alternative. In addition, funding for the ninety Catholic Teaching Schools will also cease in September 2021 as the DfE replaces the current model with teaching school hubs giving no guarantee that any Catholic schools who apply will be selected. In the light of these developments, this initiative would provide an opportunity to harness the experience, resources and capacity of Catholic Teaching Schools across the four hubs to develop a high quality Catholic school leadership programme, that integrates functional educational leadership development with Catholic values and principles at the core rather than as an additional add-on module.
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Executive Leaders Formation Programme – over 100 serving and aspiring executive leaders have now completed this training which focussed on the role of the executive leader in the context of the mission and faith formation; feedback was overwhelmingly positive. All delegates were serving
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executive head teachers, head teachers or deputy head teachers, aspiring to roles with even greater responsibility. The collaboration with the Catholic Independent Schools Conference and EducareM has established key partnerships that we hope will continue with this and other future projects. Planning is in progress for a third cohort in 2020/21.
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CEO formation, training and network opportunities – a growing number of dioceses are organising their schools into multi academy trusts (MATs) led by a Chief Executive Officer, a role that is still relatively new in Catholic education. The first national conference was hosted by the diocese of Leeds in May 2020.
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Online Induction Training for Governors – following the pilot during the summer term 2019, modules 1&2 were released at the beginning of October 2019; during the first week, nearly 200 governors had registered. Schools have already commented that the first two modules will also be useful for whole school staff CPD. Additional modules are due to be finalised in Autumn 2020 and all modules will be diversified for use in Wales.
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Formatio website went live in summer 2020 (formatio.org.uk)
COVID-19
The safety, security and wellbeing of staff along with diocesan staff and school communities is always our highest priority and has been paramount in considering the ongoing work of Formatio during the 2019/20 academic year. During the first national lockdown which began on 23 March 2020, the HDOs worked at home and meetings and all aspects of Formatio work moved online in order to comply fully with PHE advice. Two of the three HDOs were also furloughed, the third not being eligible for the scheme. The HDOs were furloughed for two periods of six weeks; the first period during April/May 2020 and the second, over the summer break. Regular meetings took place during these periods in order to keep in touch with colleagues.
Notwithstanding the disruption caused by periods of furlough, the work of Formatio continued regardless, albeit in unprecedented circumstances. This was reported on in the usual way with HDO reports and updates about ongoing projects and new initiatives to the national Steering Group which continued to meet termly online.
Financial review
Reserves Policy
The operational policy for Formatio is to ensure that it has adequate financial reserves to meet its charitable obligations and day-to-day working requirements, as well as to meet future commitments. Formatio is reliant on income from fundraising to meet this operational policy. All funds are treated as restricted and are administered by the Charity Trustees. The organisation currently has no infrastructure costs. Support services for the current project are provided on a voluntary basis.
Financial Statement
During the period under review the Assumption Legacy Fund provided total £250,000 to fund the employment of Hub Development Officers (HDOs) in 4 regions – NW, NE, SE, SW for an initial period of 2 years. The HDOs were to be provided by an external provider; to date 3 HDOs have been provided. The total cost of these services to 31 August 2020 amounted to £81,845, leaving a balance of £168,155 for the remainder of the project. Fixed term contracts apply to all those engaged on the project.
Formatio Future Plans
In November 2019, the Formatio Steering Group met to complete a SWOT analysis of progress to date and agree key priorities for the next twelve months:
8
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Collaboration to ensure complete coverage and maximum benefit for the entire Catholic community across England and Wales
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Recruitment and retention and the development of a pathway to identify and grow Catholic leaders through a coaching and mentoring journey of accompaniment
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Research/intelligence based identification of areas of greatest need (the cold spots ) – seeking opportunity to work with Catholic universities to underwrite the research to ensure impact
The long-term plan is to maintain and further develop Formatio as a force in the development and nourishment of Catholic school leaders including governors, by empowering the regional hubs and supporting them from the centre. There is a confidence that the dioceses will see the regional hub model as an integral part of their structure to grow and develop Catholic leadership at all levels. The CIO intends to continue funding projects which promote the Formation of Teachers, Leaders and Governors in Catholic Education, it intends to ensure that this remains relevant to the needs facing education today. It will continue to seek funding for relevant projects.
Charity Trustees' Responsibilities Statement
The Charity Trustees are responsible for preparing the CIO’s Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Charity Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that period. In preparing these financial statements, the Charity Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue in operation.
The Charity Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the CIO’s transactions and disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Charity Trustees on 8[th] June 2021 and signed on their behalf by:
___________ Catherine A Bryan, Chair, Formatio Steering Group
9
Independent Examiner’s Report to the Charity Trustees of Formatio
I report to the charity trustees on my examination of the accounts of the Formatio (the Charity) for the period 11 April 2019 to 31 August 2019.
Responsibilities and basis of report
As the Charity Trustees of the Charity, 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 Charity’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 the examination giving me cause to believe that in any material respect:
(1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
(2) the accounts do not accord with those records; or
(3) 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.
Name: David Smy FCA Address: Brompton House, St John’s Road, Bath, BA2 6PT
Date:
10
Formatio: Statement of Financial Activities
(including Income & Expenditure Account)
For the year period 11 April 2019 to 31 August 2020
| 2020 | ||||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| Notes | £ | £ | £ | |
| INCOME from | ||||
| Donations and legacies: | ||||
| Grants | 1 | - | 250,000 | 250,00 |
| Donations | 250 | - | 250 | |
| ----------------- | ----------------- | ----------------- | ||
| Total income | 250 | 250,000 | 250,250 | |
| ----------------- | ----------------- | ----------------- | ||
| EXPENDITURE on | ||||
| Charitable activities: | ||||
| Cost of regional hubs | 2 | 250 | 81,845 | 82,095 |
| ---------------- | ---------------- | ---------------- | ||
| Total expenditure | 250 | 81,845 | 82,095 | |
| ---------------- | ---------------- | ---------------- | ||
| Net income/(expenditure) and | ||||
| Net movement in funds | - | 168,155 | 168,155 | |
| ------------------ | ------------------ | ------------------ | ||
| Funds at 31 August 2020 | £- | £168,155 | £168,155 | |
| ========= | ========= | ========= |
The charity had no recognised gains or losses other than as disclosed in the Statement of Financial Activities for the period ended 31 August 2020.
The accompanying notes form part of these financial statements.
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Formatio: Balance Sheet As at 31 August 2020
| 2020 | |||
|---|---|---|---|
| Notes | £ | £ | |
| CURRENT ASSETS | |||
| Cash at bank and in hand | 250,000 | ||
| CREDITORS:Amounts falling | |||
| due within one year | 6 | 81,845 | |
| ---------------- | |||
| NET CURRENT ASSETS | 168,155 | ||
| ---------------------- | |||
| NET ASSETS | £168,155 | ||
| ========== | |||
| FUNDS AND RESERVES | |||
| Unrestricted | - | ||
| Restricted | 7 | 168,155 | |
| ---------------------- | |||
| £168,155 | |||
| ========== |
The accompanying notes form part of these financial statements.
Approved by the Charity Trustees on 2020 and signed on their behalf by
Catherine Bryan Chair of Charity Trustees
Paul Barber Charity Trustee
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Formatio Notes to the financial statements For the period ended 31 August 2020
ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Formatio 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).
Assessment of going concern
The Charity Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Charity Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The Charity Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Charity Trustees are of the opinion that the charity will have sufficient resources to meet all its liabilities as they fall due.
Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific artistic projects being undertaken by the charity.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-
Expenditure on charitable activities comprises the cost of operating the regional hubs.
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Other expenditure represents those items not falling into any other heading.
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.
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.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
| 1. | GRANTS AND DONATIONS | 2020 | ||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| £ | £ | £ | ||
| Assumption Legacy Fund | - | 250,000 | 250,000 | |
| Donations | 250 | - | 250 | |
| ------------------- | ------------------- | ------------------- | ||
| £250 | £250,000 | £250,250 | ||
| ========= | ========= | ========= | ||
| 2. | EXPENDITURE ON CHARITABLE ACTIVITIES | |||
| Unrestricted | Restricted | |||
| Costs of charitable objectives | - | 81,845 | ||
| Governance costs (including | ||||
| Independent Examination fees | 250 | |||
| ------------------- | ------------------- | |||
| £250 | £81,845 | |||
| ========= | ========= | |||
| 3. | NET INCOME/EXPENDITURE FOR THE YEAR | 2020 | ||
| £ | ||||
| This is stated after charging: | ||||
| Independent Examiner's remuneration | ||||
| - Examination | 100 | |||
| - Accountancy services | 150 | |||
| ------------------- | ||||
| £250 | ||||
| ========= | ||||
| 4. | STAFF COSTS | |||
| There were on average 2 employees during the year and | their | |||
| remuneration was: | ||||
| - Salaries |
40,902 | |||
| - Social security costs |
2,996 | |||
| - Pension costs |
1,824 | |||
| ___ | ||||
| £ 45,722 | ||||
| ========== |
No employee received emoluments totalling £60,000 or more.
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Formatio Notes to the financial statements (continued) For the period ended 31 August 2020
5. 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 object.
6. CREDITORS: amounts falling due within one year
| 2020 | ||||||
|---|---|---|---|---|---|---|
| £ | ||||||
| Accruals and deferred income | 81,845 | |||||
| ---------------------- | ||||||
| £81,845 | ||||||
| ========== | ||||||
| 7. | RESTRICTED FUNDS | |||||
| Period ended 31 August 2020 | Fund balance | Income | Expenditure | Fund balance |
||
| At start of | At end of | |||||
| year | Year | |||||
| £ | £ | £ | £ | |||
| Assumption Legacy Fund | - | 250,000 | 81,845 |
168,155 | ||
| ---------------------- | --------------------- | -------------------- |
-------------------- | |||
| £- | £250,000 | £81,845 |
£168,155 | |||
| ========== | ========== | ========== |
========== | |||
| 8. | ANALYSIS OF NET ASSETS | |||||
| At 31 August 2020 | ||||||
| Unrestricted | Restricted |
Resources | ||||
| Funds | Funds | |||||
| £ | £ | £ | ||||
| Current Assets | - | 250,000 | 250,000 | |||
| Current Liabilities | - | (81,845) | (85,648) | |||
| ---------------------- | --------------------- -------------------- |
|||||
| £- | £168,115 £168,115 |
|||||
| ========== | ========== ========== |
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I ndependent Examinerfs Rep(rt to the CharitsiTru#ees of FcYmiJtK) I report to the tharity trustees on my examination of the accounts of the Fomiatio (the Charty) for the period 11 April 2019 to 31 August 2019. Responsibilitiesand basis of report As the Charity Trustees of the Charity, you are responsible forthe preparation of the accounts in accordan with the requirementsof the CharitiesAct 2011 ('theAcY). I report in respectof myexamination of the CharlsaCCoUnts carried out under section 145of the 2011 Act and in carrying out my examination I have followed all the applicable Dirertions given by the Charty Commissi( undersection 145(5)(b) of the Act. IndePendenteinerfSStatement I have completed myexamination. I confirmthat no material matters have come to my attention in connection with the examination gNing me cause to believethat in any material respect: (l) accounting records were not keptin respectof the Chartty as required by section 130 of the Act; or (2) the accountsdo not accord with those records; or (3) the accounts do notcomply with the applicable requirements concemingtheform and content of accounts setout in the Charities (Accounts and Reports) RegulatK)ns 2(Th otherthan any requirementthatthe accounts give a 'true and fairf viewwhich is not a rnatterconslded as part of an independentexamination. I have no concems 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 understsnding of the accounts to reached. Name: David Smy FCA Address: Brompton House, St John's Road, Bat 2 9 464•4e 1021 , BA2 6PT Date: