## **REGISTERED COMPANY NUMBER: 04789584 (England and Wales) REGISTERED CHARITY NUMBER: 1187235** **Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2020** **for** **Boat Building Academy Limited** Ward Goodman 4 Cedar Park Cobham Road Ferndown Industrial Estate Wimborne Dorset BH21 7SF **Boat Building Academy Limited** **Contents of the Financial Statements for the Year Ended 31 August 2020** ||**Page**| |---|---| |**Report of the Trustees**|1 to 7| |**Independent Examiner's Report**|8| |**Statement of Financial Activities**|9| |**Balance Sheet**|10| |**Cash Flow Statement**|11| |**Notes to the Cash Flow Statement**|12| |**Notes to the Financial Statements**|13 to 21| ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of 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). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** To teach men and women to build boats and design and make furniture of the highest quality to accepted industry standards using traditional and modern methods and materials, thus enabling our students to fully realise their potential The charity's objects ('Objects') are specifically restricted to the following, for the public benefit: a. to advance the education of the public in the art, craft and science of boat building, fine woodworking and related skills; and b. to educate people through the provision of sailing or sailing related activities and other training to develop their physical, mental and social capabilities. ## **Significant activities** The principal activity of the Boat Building Academy (BBA) is to train students on an intensive, practical course over both a 40-week ('the long course') or a 12-week course to a level where they have the potential to gain immediate employment in the marine or furniture making industries. The majority of the younger graduates (those seeking to enter the industry rather than those in retirement) are successful in finding work, and employers approach the BBA directly to seek skilled workers. A number of the former students have returned after working in the industry and now teach at the Academy, including the Principal. 2 - 5 day short courses complement these longer courses, providing training in boat building, woodworking skills and related subjects. In the last ten years the business has doubled its turnover and achieved international pre-eminence as a training establishment. As a fee-paying college, the BBA offers bursaries to support impoverished men and women who would benefit from the training. The second object 'to educate people through the provision of sailing or sailing related activities and other training to develop their physical, mental and social capabilities' is in its infancy. The BBA does not currently undertake sail training activities, but has been developing relationships with several sail training organisations and charities including Adventure Under Sail (AUS) and the Tectona Trust. The relationship with AUS has started with staff staying aboard and sailing on Training Ship Pelican of London. Staff/student exchange visits are planned, and BBA tutors will attend shore based events on the Pelican to brief and informally teach the boat crew on various traditional boat maintenance techniques. These plans were cut short due to Covid but will continue as soon as possible. Some students form the BBA have sailed on the Pelican's Ocean Science voyages and undertaken work placements. The BBA has a long history with TS Pelican: Chair of trustees - Tim Gedge - project managed the refit in 2007 using a team of BBA graduates and one of the graduates crossed the Atlantic serving as her ship's carpenter. Page 1 ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** ## **OBJECTIVES AND ACTIVITIES** ## **Main activities undertaken for the public benefit** The BBA has recently employed a fundraiser to lead on increasing our bursary fund as well as capital funding and Covid mitigation. One element of this work is engaging the Dorset Local Enterprise Partnership. The submission to the Dorset Local Enterprise Partnership (LEP) is aimed at making a contribution towards the discussion about the proposed Dorset Investment Prospectus; part of the LEP's response to the economic impacts of Covid-19 and the priorities within the Dorset Local Industrial Strategy (LIS). The BBA is an important business within Lyme Regis, Dorset and the South West and in addition to connecting with the LEP, aspires to further establish its relationship with the local community and beyond: - - Relationship development through the Dorset Coast Forum - Open days for locals, potential students, and all friends of the academy. The first was being organised for April this year. Unfortunately, this was postponed due to Covid 19 but will go ahead as soon as possible - Twice a year student boat launches - these usually draw a crowd of several hundred and are an important part of the Lyme Regis calendar - - - - Planned short courses and evening classes for the local community - A programme of lectures open to all - A programme of school and college visits The trustees have had due regard to the Charity Commission guidance on public benefit. ## **The Boat Building Academy Bursary scheme** In order to provide training to all people regardless of their financial position we have a scheme whereby potential students can apply for a bursary to cover up to 50% of the course fee. This is applicable to the 40-week and 12-week courses and is aimed specifically at impoverished people or in the words of the Charity Commission - 'the poor'. The BBA currently holds a bursary fund to support 1 student on each of the next three 40-week and three 12-week courses with the aspiration to support two students on each boat building and furniture making course from 2022. The BBA bursary scheme has been developed by trustees specifically with public benefit in mind. The trustees have developed a rigorous approach to selecting deserving students for bursaries. A key player in this process has been Gail McGarva who has significant experience with both sides of bursary programmes including QEST and the Arts Council. The application process is open to students who have been offered a place at the BBA through the usual application process. They will complete a bursary application form before a given deadline. Those who meet the criteria will be invited to spend a day at the BBA where they will be interviewed by 2 trustees and will work with staff to assess their approach to work. The original plan was for applicants to spend 2-5 days in the workshops but this is difficult with Covid restrictions. It might be that 1 day is rigorous enough anyway; this will be decided by trustees. Page 2 ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** ## **OBJECTIVES AND ACTIVITIES Contribution made by volunteers** The BBA has recently established a 'Friends manager' who will organise a group of volunteers and a sub-committee to: - assist the BBA in maintaining its service for the public benefit - help with the activities around fundraising - assist with the communication to the wider community and industry regarding the Company's activities and future plans - assist with funding and resourcing for special projects as well as for bursaries - provide ongoing education to its members including improving the understanding of the Company's activities - contribute to the BBA's future strategy and direction - help with day to day activities when required - assist in expanding the support of the BBA from the wider community and industry - assist with future career guidance of BBA students and graduates - establish a business mentoring service for graduates - establish relationships with other educational bodies (including local schools and colleges etc) and potential feeder establishments for new students The organisation will constitute people with the following backgrounds: - Boat building and furniture making graduates of the BBA - BBA short course students - BBA staff as well as former staff - Key relationships from the BBA suppliers - Potential donors - Key industry contacts including trade bodies such as: - Wooden Boatbuilders Trade Association - Worshipful Company of Shipwrights - British Marine - Current and future advisers Page 3 ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** ## **STRATEGIC REPORT Achievement and performance** ## **Charitable activities** In December 2017 an economic assessment of the Academy and its contribution to the local economy was carried out by the Policy & Research Unit, Dorset County Council. At that time the report concluded that …."the presence of the Boat Building Academy with the associated spending of students and their visitors, supports about 32 FTE jobs currently and contributes £1.16 million Gross Value Added to the local economy." As part of this review of the Academy's work, Dorset Council has undertaken to update this assessment, and the results are awaited. To date, the BBA has trained 536 40-week boat building students and 167 12-week furniture makers. There have also been 1821 places on short courses (some students doing more than one course) The boat building students who started in August 2019 had their training interrupted due to the Covid 19 lockdown but returned after 4 months to complete their course. As part of the training students build several boats per course and as usual the boats were built to an exemplary professional standard and launched in Lyme Regis harbour on 1 October. The launch on this occasion was a toned-down affair to reflect Covid restrictions. Covid 19 has not curtailed interest or enquiries about courses at the BBA. A full course of 18 students started the current 40-week course on 12 October and there are already 17 hopefuls lined up for March 2021. The 12-week courses are set to be fully booked next year. Short courses are also looking healthy with regular enquiries and bookings. The last course fee increases were in January and February 2019. They stand at: 40-week boat building £15,850 12-week Furniture £5,850 12-week Advanced Furniture Making £5,950 2-day short courses £275 5-day short courses £675 - £950 The next increase has been delayed until August 2021 due to the unstable financial situation caused by Covid 19 ## **Financial review** ## **Reserves policy** The BBA will always hold a diminishing figure to reflect the cost of running a course - if the academy had to close, adequate funds (variable dependent on student numbers) are held in order to either repay a percentage of the fees for the unused part of the course or to fulfil the commitment to the students - rent, materials, tutor cost etc. In addition, the BBA aims to hold a significant reserve in order to secure the business during periods of financial difficulty. Student numbers have been strong over the last few years with reserves increasing annually. Year ending August 2019, the reserve stood at £114,807. Results for the year ended 31 August 2020, show a net loss of £22,322 (2019 Profit of £83,882). At the year end reserves stand at £92,485, of which £10,000 is restricted funds and £20,000 is designated for Bursaries. This leaves £62,485 in general unrestricted funds which, less the NBV of tangible fixed assets at the year end, leaves a total of £58,255 in free reserves. Page 4 ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** ## **STRATEGIC REPORT Financial review** ## **The impact of Covid 19 on the BBA** In accordance with government requirements, on 20 March 2020, the BBA had to close and stop teaching its students, in the middle of the boat building course it was delivering, with staff being furloughed. It was able to restart at a much-reduced level on 13 July 2020 in accordance with government guidelines and restrictions. However, in view of the need to comply with Covid 19 social distancing restrictions and having regard to the close working environment involved in a boat building workshop, it was only possible to restart with 50% of the number of students that should have been on site completing their course. This has also involved students being organised into separate groups, in different areas of the building, to help avoid the possibility of infection spreading throughout the students and staff, should any Covid cases arise. There is only one dedicated classroom, as the majority of the space is taken up by the two workshops, communal spaces such as kitchen and dining area and on the first floor, residential, student accommodation. In addition, in view of the need for students to 'spread out' within the spaces available, it has also not been possible to deliver the financially beneficial short courses,that help support the business. The result of these Covid impacts is that the LRBBA has lost £275,000 in reduced income and other unexpected costs to be able to operate under Covid restrictions. The delay caused by the shutdown also meant that new students had not been able to start the next session of the boat building course at the expected time, which is the main source of income for the Academy. There is therefore an urgent need to create more workshop space and works are in hand to convert some of the first floor student living accommodation into classroom space, expand an existing mezzanine workshop over the main boat building area and undertake other re-organisation of spaces at ground floor level. The Academy is planning to take advantage of a government guaranteed loan scheme to assist in funding this work and is also applying to charitable trusts for support. ## **Future plans** The trustees are committed to: - continuing their current strategies of maintaining and improving the status of the BBA as a world-leader in the fields of boat building and furniture making by investing to provide the highest quality training to our students - continuing fundraising initiatives to provide bursaries to more applicants - remaining at the current site while maintaining and improving the buildings and facilities for the benefit of the training and student experience - Developing and expanding workshop space to allow training to continue in light of social distancing requirements - establishing the BBA as an important landmark in the local area as well as the larger business and charity community - using professional advisors where necessary - to constantly hold public benefit as the main driver in decision making - through rigorous discussion and challenging of ideas, policies and processes - fostering relationships with complimentary organisations both locally and further afield ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is a company limited by guarantee incorporated 6 June 2003 and registered as a charity 7 January 2020. The company has Companies Act 2006 Articles and therefore does not have a Memorandum of Association. It is governed under its Articles of Association. ## **Recruitment and appointment of new trustees** The directors/trustees may by board resolution: ## 1. appoint a person who is willing to act to be a director; and 2. appoint the Principal to be a director, if they consider that it would be in the best interests of the charity for them to do so. A director retiring may offer himself or herself for re-election and for a period not exceeding five years. There is no limit on the number of terms of office. Page 5 ## **Boat Building Academy Limited** ## **Report of the Trustees for the Year Ended 31 August 2020** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Organisational structure** The trustees are responsible for the overall management and control of the Boat Building Academy and meet formally twice a year. Policies are implemented by the Principal who is also a trustee. The Chair, Treasurer and Principal speak by phone or email regularly - usually on a weekly basis with other trustees included as appropriate. The Principal provides a report to the Board every two months detailing activities, financials, problems, opportunities, Covid 19 and any other issues arising. The Principal is paid a salary and there is provision in the BBA articles of association to allow this. All other trustees give their time freely. While no remuneration or expenses were paid in the year, reasonable expenses are available to trustees. The Principal undertakes the key leadership role; overseeing educational, pastoral and administrative functions in consultation with the training manager, tutors and the office manager. The day to day administration of the BBA is undertaken within the policies and procedures approved by the trustees which provide for only significant expenditure decisions and major capital projects to be referred to the Trustees for prior approval. The Principal oversees the recruitment of all staff. ## **Induction and training of new trustees** New trustees are issued with an induction pack containing: - Latest annual report and accounts - The most recent Principal's report - The most recent board and committee minutes - Copies of the BBA's key policies and procedures - Copies of the Commission's key pieces of guidance - particularly CC3 and the public benefit guidance Four of the current trustees are graduates of the BBA Boat Building or Furniture Making courses and are therefore well-versed with the approach and ethos. Those trustees who are new to the BBA have a guided tour of the facilities and meet all the staff as part of their induction. All trustees are invited to BBA events such as boat launches, furniture exhibitions and open days to give them a better understanding of the culture and purpose. The Principal attended an online trustee training course run by lawyers - Farrers and accountants - Haysmacintyre. This, or other local trustee training courses are available to all trustees. ## **Key management remuneration** The Trustees including the Principal consider that they are the key management personnel. The Trustees give of their time freely. The pay and remuneration of the Principal and all other staff is set by the Trustees and is kept under annual review. A number of criteria are used in setting pay: - Nature of the role and responsibilities - Competitor salaries in the region - The sector average salary for comparable positions - Trends in pay in recent years ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Registered Company number** 04789584 (England and Wales) ## **Registered Charity number** 1187235 Page 6 ## **Boat Building Academy Limited** **Report of the Trustees for the Year Ended 31 August 2020** ## **Registered office** Lyme Regis Marine Centre Monmouth Beach Lyme Regis Dorset DT7 3JN ## **Trustees** M J Convey (resigned 11.5.2020) T J H Gedge R H Aylott (appointed 2.3.2020) J Lloyd-Davies (appointed 1.9.2019) W M Reed (appointed 2.3.2020) Ms B R Bathurst (appointed 11.5.2020) R T Martin (appointed 11.5.2020) Ms G H McGarva (appointed 11.5.2020) ## **Company Secretary** ## **Independent Examiner** Ward Goodman 4 Cedar Park Cobham Road Ferndown Industrial Estate Wimborne Dorset BH21 7SF Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by: ............................................................................... W M Reed - Trustee Page 7 ## **Independent Examiner's Report to the Trustees of Boat Building Academy Limited** ## **Independent examiner's report to the trustees of Boat Building Academy Limited ('the Company')** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020. ## **Responsibilities and basis of report** As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. I M Rodd BSc FCA FCCA ICAEW Ward Goodman 4 Cedar Park Cobham Road Ferndown Industrial Estate Wimborne Dorset BH21 7SF Date: ............................................. Page 8 ## **Boat Building Academy Limited** ## **Statement of Financial Activities for the Year Ended 31 August 2020** |Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
111,171
Other trading activities
4
545,970
Investment income
5
1,153
**Total**
658,294
**EXPENDITURE ON**
Raising funds
6
415,308
**Charitable activities**
7
Charitable Activities
275,142
**Total**
690,450
**NET INCOME/(EXPENDITURE)**
(32,156)
**Transfers between funds**
17
(166)
**Net movement in funds**
(32,322)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
114,807
**TOTAL FUNDS CARRIED FORWARD**
82,485|Restricted
funds
£
15,000
-
-
15,000
-
5,166
5,166
9,834
166
10,000
-
10,000|2020
Total
funds
£
126,171
545,970
1,153
673,294
415,308
280,308
695,616
(22,322)
-
(22,322)
114,807
92,485|2019
Total
funds
£
-
836,769
639
837,408
342,400
411,126
753,526
83,882
-
83,882
30,925
114,807| |---|---|---|---| The notes form part of these financial statements Page 9 ## **Boat Building Academy Limited** **Balance Sheet 31 August 2020** |Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
13
4,230
**CURRENT ASSETS**
Stocks
14
36,821
Debtors
15
38,385
Cash at bank
268,807
344,013
**CREDITORS**
Amounts falling due within one year
16
(265,758)
**NET CURRENT ASSETS**
78,255
**TOTAL ASSETS LESS CURRENT LIABILITIES**
82,485
**NET ASSETS**
82,485
**FUNDS**
17
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
-
10,000
10,000
-
10,000
10,000
10,000|2020
Total
funds
£
4,230
36,821
38,385
278,807
354,013
(265,758)
88,255
92,485
92,485
82,485
10,000
92,485|2019
Total
funds
£
6,131
41,805
19,475
519,259
580,539
(471,863)
108,676
114,807
114,807
114,807
-
114,807| |---|---|---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020. The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: ............................................. J Lloyd-Davies - Trustee The notes form part of these financial statements Page 10 ## **Boat Building Academy Limited** |**Cash Flow Statement**
**for the Year Ended 31 August 2020**
2020
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
(239,767)
Net cash (used in)/provided by operating activities
(239,767)
**Cash flows from investing activities**
Purchase of tangible fixed assets
(1,838)
Interest received
1,153
Net cash used in investing activities
(685)
**Change in cash and cash equivalents in the**
**reporting period**
(240,452)
**Cash and cash equivalents at the beginning of**
**the reporting period**
519,259
**Cash and cash equivalents at the end of the**
**reporting period**
278,807|2019
£
154,076
154,076
(9,013)
639
(8,374)
145,702
373,557
519,259| |---|---| The notes form part of these financial statements Page 11 ## **Boat Building Academy Limited** ## **Notes to the Cash Flow Statement for the Year Ended 31 August 2020** ## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**Net (expenditure)/income for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Decrease/(increase) in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
**Net cash (used in)/provided by operations**|2020
£
(22,322)
3,739
(1,153)
4,984
(18,910)
(206,105)
(239,767)|2019
£
83,882
6,198
(639)
(3,277)
31,607
36,305
154,076| |---|---|---| ## 2. ## **ANALYSIS OF CHANGES IN NET FUNDS** ||At 1.9.19|Cash flow|At 31.8.20| |---|---|---|---| ||£|£|£| |**Net cash**|||| |Cash at bank|519,259|(240,452)|278,807| ||519,259|(240,452)|278,807| |**Total**|519,259|(240,452)|278,807| The notes form part of these financial statements Page 12 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements for the Year Ended 31 August 2020** ## **1. LEGAL FORM** The Charity (registration number 1187235) is a public benefit entity, limited by guarantee, incorporated in England and Wales (company number 04789584), and consequently does not have share capital. The address of its registered office is: Lyme Regis Marine Centre, Monmouth Beach, Lyme Regis, Dorset DT7 3JN ## **2. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** On 7th January 2020, Boat Building Academy Limited (company number 04789584) registered as a Charitable company (Charity registration number 1187235). The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Government grants** Government grants include money received as part of the Covid-19 Job Retention Scheme. Income is recognised in the same period in which the related payroll expenditure is recorded. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold property - 20% on cost Plant and machinery - Straight line over 3 years Fixtures and fittings - Straight line over 3 years ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Stock is valued on a "First in, first out" basis. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. continued... Page 13 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **2. ACCOUNTING POLICIES - continued** ## **Fund accounting** Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **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. ## **Cash at Bank and in hand** Cash at bank and 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** Creditors 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. ## **3. DONATIONS AND LEGACIES** |Gifts
Legacies
Grants
Grants received, included in the above, are as follows:
Job Retention Scheme
Other|2020
£
16,192
8,000
101,979
126,171
2020
£
94,479
7,500
101,979|2019
£
-
-
-| |---|---|---| |||-| |||2019
£
-
-| |||-| continued... Page 14 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **4. OTHER TRADING ACTIVITIES** |Course income
Materials
Woodworking skills
Wood
Accommodation
Washing machine money
Miscellaneous
**5.**
**INVESTMENT INCOME**
Interest receivable - trading
**6.**
**RAISING FUNDS**
**Other trading activities**
Opening stock
Closing stock
Staff costs
Bad debts
Depreciation
**7.**
**CHARITABLE ACTIVITIES COSTS**
Charitable Activities|Direct
Costs
£
248,953|2020
£
374,788
23,935
87,908
23,076
32,098
791
3,374
545,970
2020
£
1,153
2020
£
41,805
(36,821)
405,550
1,035
3,739
415,308
Support
costs (see
note 8)
£
31,355|2019
£
614,661
36,347
88,405
37,228
55,842
1,857
2,429
836,769
2019
£
639
2019
£
38,528
(41,805)
336,049
3,430
6,198
342,400
Totals
£
280,308| |---|---|---|---| continued... Page 15 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **8. SUPPORT COSTS** |**SUPPORT COSTS**|||||| |---|---|---|---|---|---| ||||Information|Human|| ||Management|Finance|technology|resources|Totals| ||£|£|£|£|£| |Charitable Activities|27,570|854|2,184|747|31,355| ## **9. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): ||2020|2019| |---|---|---| ||£|£| |Depreciation - owned assets|3,739|6,198| |Independent examination|1,980|-| |Accounts preparation fees|540|1,400| ## **10. TRUSTEES' REMUNERATION AND BENEFITS** William Reed, Director & Trustee, received remuneration totalling £20,000 (2019: £nil) in salary from his appointment as director in March 2020 to the year end of 31 August 2020. Employer pension contributions totalling £506 (2019: £nil) were made over the same period. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019. ## **11. STAFF COSTS** |Wages and salaries
Social security costs
Other pension costs|2020
£
368,298
29,822
7,430
405,550|2019
£
305,468
25,034
5,547| |---|---|---| |||336,049| The average monthly number of employees during the year was as follows: ||2020|2019| |---|---|---| |Head count|14|15| No employees received emoluments in excess of £60,000. continued... Page 16 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** ## **13.** |Unrestricted
Restricted
funds
funds
£
£
**INCOME AND ENDOWMENTS FROM**
Other trading activities
836,769
-
Investment income
639
-
**Total**
837,408
-
**EXPENDITURE ON**
Raising funds
342,400
-
**Charitable activities**
Charitable Activities
411,126
-
**Total**
753,526
-
**NET INCOME**
83,882
-
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
30,925
-
**TOTAL FUNDS CARRIED FORWARD**
114,807
-
**TANGIBLE FIXED ASSETS**
Fixtures
Freehold
Plant and
and
property
machinery
fittings
£
£
£
**COST**
At 1 September 2019
10,912
72,819
-
Additions
-
1,430
408
At 31 August 2020
10,912
74,249
408
**DEPRECIATION**
At 1 September 2019
10,912
66,688
-
Charge for year
-
3,603
136
At 31 August 2020
10,912
70,291
136
**NET BOOK VALUE**
At 31 August 2020
-
3,958
272
At 31 August 2019
-
6,131
-|Total
funds
£
836,769
639
837,408
342,400
411,126
753,526
83,882
30,925
114,807
Totals
£
83,731
1,838
85,569
77,600
3,739
81,339
4,230
6,131| |---|---| continued... Page 17 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **14. STOCKS** |Stocks
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Service charges due
Other debtors
Prepayments
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
Other creditors
Service charges paid in arrear
Accruals and deferred income|| |---|---| ## **15.** ## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** Income is deferred for courses that run over a period of weeks and have not yet been completed. The income is released monthly over the duration of the course. ## **17. MOVEMENT IN FUNDS** |**Unrestricted funds**
General fund
Bursary (Designated)
**Restricted funds**
Computer
Bursary
**TOTAL FUNDS**|Net
movement
At 1.9.19
in funds
£
£
114,807
(32,156)
-
-
114,807
(32,156)
-
(166)
-
10,000
-
9,834
114,807
(22,322)|Transfers
between
funds
£
(20,166)
20,000
(166)
166
-
166
-|At
31.8.20
£
62,485
20,000
82,485
-
10,000
10,000
92,485| |---|---|---|---| continued... Page 18 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **17. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Computer
Bursary
**TOTAL FUNDS**|Incoming
resources
£
658,294
5,000
10,000
15,000
673,294|Resources
Movement
expended
in funds
£
£
(690,450)
(32,156)
(5,166)
(166)
-
10,000
(5,166)
9,834
(695,616)
(22,322)| |---|---|---| ## **Comparatives for movement in funds** |||Net|| |---|---|---|---| |||movement|At| ||At 1.9.18|in funds|31.8.19| ||£|£|£| |**Unrestricted funds**|||| |General fund|30,925|83,882|114,807| |**TOTAL FUNDS**|30,925|83,882|114,807| Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
837,408
837,408|Resources
Movement
expended
in funds
£
£
(753,526)
83,882
(753,526)
83,882| |---|---|---| continued... Page 19 ## **Boat Building Academy Limited** ## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **17. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined position is as follows: |**Unrestricted funds**
General fund
Bursary (Designated)
**Restricted funds**
Computer
Bursary
**TOTAL FUNDS**|Net
movement
At 1.9.18
in funds
£
£
30,925
51,726
-
-
30,925
51,726
-
(166)
-
10,000
-
9,834
30,925
61,560|Transfers
between
funds
£
(20,166)
20,000
(166)
166
-
166
-|At
31.8.20
£
62,485
20,000
82,485
-
10,000
10,000
92,485| |---|---|---|---| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: ||Incoming|Resources|Movement| |---|---|---|---| ||resources|expended|in funds| ||£|£|£| |**Unrestricted funds**|||| |General fund|1,495,702|(1,443,976)|51,726| |**Restricted funds**|||| |Computer|5,000|(5,166)|(166)| |Bursary|10,000|-|10,000| ||15,000|(5,166)|9,834| |**TOTAL FUNDS**|1,510,702|(1,449,142)|61,560| ## **Purposes for restricted funds** Computer fund - Restricted for the purchase of new laptops for use by the charity. Bursary fund - Restricted funds to be awarded as student bursaries. continued... Page 20 ## **Boat Building Academy Limited** **Notes to the Financial Statements - continued for the Year Ended 31 August 2020** ## **18. RELATED PARTY DISCLOSURES** Commander Timothy Gedge, Director & Trustee, received payments totalling £56,500 for the year ended 31 August 2020 (2019:£60,000) for rental of the building. Page 21