Heron Educatlonal Foundation Charity No. 1187969 Trustees. Report and Unaudlted Accounts 31 Marth 2022
Heron Educatlonal Foundation Contents Pages Trustees, Annual Report Independent Examinerfs Report Statement of Financi31 Activities Balance Sheet Notes to the Accounts Statement of Cash flows 16 Detailed Statement of Financial Artivities 17to18
Heron Educational Foundation Trustees Annual Report The trustees present their report with the unaudited financial statements of the charity for the year ended 31 March 2022. REFERENCE AND AOMINISTRATIVE DETAILS Charity No. 1187969 Prlnclpal Office Hill Farm House Sproatley Roa Flinton East Riding of Yorkshire HU114NE Trustees The followin8 trustees served durin8 the year- C. Brazier CBE F.A. Caley F.P.A. Dudley M. Havler IResi8ned 18 June 2022) D. Merrington Hoskins M. Rilev Key Management Personnel Chair M Havler D Hoskins F Dudley C Brazler CBE Vice Chair Secretary Treasurer Accountants MPH Accountancy Rear of 9a Westgate Patrin8ton East Yorkshire HU12 ONA Bankers National Westminster Bank plc Willerby and Kirk Ella The Sqvare Willerby Hull HUIO 7UA
Heron Educational Foundation Trustees Annual Report OBJEcfs AND ACTIVITIES The Objects of thè CIO a. for the public benefit to Provide assistance for the higher education by means of exhlbttions. or financial assistance to enable beneficiaries to prepare for or enter a profession. trade or calling, otherwise promoting the education lincludine social and physical trainingl ot boys and girls resident in the Parish of Humbleton. The principal way in which these are achieved is through the provision of grants to children of the parish as they reach key stages of education lentering Primary School, Secondary School and Universityl. In addition, Trustees will consider applications from local schools for equipment or facilities that will beneftt children from the parish. We raise money to continue our work through rental income from our property in Humbleton as well as interest on our bank accounts. ACHIEVEMENTS AND PERFORMANCE Over the past year. we have given individual grants of £275 and £125 each to two young people to support their studies and a grant of £19 to provide leaving books for 4 students from Sproatley School. Much of our work this year has again been focussed on our construction project which has Started to convert the Old School into three 2-bed dwellings. build two 3-bed dwellin8s and refurbish the Old School House. Once complete (estimated November 20221 this will give us six properties which will be let at affordable rates in accordance with our Allocations Policy- which prioritises local people and those who are occupying properties for the first tirne. We have made considerable progress with the construction project again this year with the two new-build cottages bein8 well on the way to completion11 Juty 20221 and work on the remalninB 4 propertles planned to start in Aprillmay. Another very welcome event was the receipi of 3 separate grants from East Riding Council1£170,0(Xil, Homes England1£15.8301 and the Withernwick Windfarm Fund1£5CUJI all being used to assist wlth construttion costs. FINANCIAL RÉVIEW The Trust sold Heron's Farrn. Flinton in 2019 for £550.0(X). In accordance with Charity Commission direction, this sum can only be used to purchase capiial assets lsuch as buildings and landl or for irbvestm@nts- it cannot be spent on 8rants or maintenanceladministration. To that end, we have allocated £425,1)00 from this sale to the dwellings element of the construrtion project and the remaining £I25,C0 to the Communlty CentrelPavilion. At the end of the year, we had £426,726 in our actount5 (Net Worth minus Fixed Assets) and had already spent £54,000 on the Community Centre (drainage, utilities and planning permission). Following the various globallpost-pandemic cost increases for construction, the total c05l of the dwellings element of our Project IS jUSt over £1 million- a significant increase on last yearfs estimate of approximately £835.000. Trustee5 agreed to achieve this amount by increasing our ori8inal £425,0 to £465.c plu5 £300,(X)O from an ERYC CHF grant, £70,CM)O from an ERYC Commuted Sums grant and a 15 year loan of £200.OfX) from the Social & Community Capital arm of the Natwest bank. All of ihese grantslloans have been approved and over half of the total ha5 already been transferred into our accounts. Once the dwelling5 are complete. we will have them valued to update our Fixed Assets figu. The market value will be reduced by 20% because the ERYC CHF grant requires that they can only be rented or sold at 'alfordable' rates lie 80% of market value). On turrent plans we expect that the six dwellings will be worth approximately £930.tMIO- although we have no plans to sell any of them. Once the dwellings are occupied. we anticipate our net rental income I'affordable, rates minus management charge51 from all Six properties being £30.5CN) pa. This will enable u% to repay our loan and to increase our grant-giving in accordance with our plans above. We have no formal Reserve5 Policy. We always intend to have no less ihan £25,OW in our accounts with a minimum of £5000 available immediately in case of urgent requirements {eg repairs). Should WÈ need to
Heron Educational Foundation Trustees Annual Report PLANS FOR FUTURE PERIODS We expect the next 6 months to be taken up with overseeing the completion of the constnthction project and the occupation of our new properties-the first 2 in July and the remaining 4 in November/December. Once occupied, we will begin to rebuild our financial reserves, repay the loan and start to focus on Phase 2 of the project which will involve the building of a new Communtty CentrelPavilion for the village close to the Trusvs six dwellings. The profit ihat we exp@ct to generate from our new propèrtios will also enablè us to increase the amount that we provide to local childrenlyoung people to enable them to reach their full potential. As well as our current grant5, we anticipate being able to provlde more targeted land potentially life-¢han8in81 amounts to support the transition from education and inlo employment. We expect that these might include university fees, apprenticeships. professional qualifications leg HGV. AATI. tool purchases and business start-ups. STRUCTURE, GOVERNAhtCE AND MANAGEMENT Heron Educational Foundation is a registered charitable incorporated organisation ICIO- 11879691 and Is constituted under a Foundation model constitution dated 14 February 2020. The Trusl was originally established in 1718 by the will of Francls Heron to provide assistance for the higher education of chlldren Ilvlng in the parish of Humbleton. The constitution allows for a mlnimum of 3 and a maximum of 9 Trustees. A quorum 15 achieved when 50% (rounded upl ale in attendance. There is no restrictlon on residency or profession of Tnjstees although it 15 normal for all Trustees to have some connectlon (through resldency or family) to Humbleton or the surroundlng parishes. We hold Trust meetSngs every month and have added a Construction Project rneetln8 2 weeks after the Trust meeting to deal with the many issues that arise as we work through the various process to finance, specify and oversee the project. We have appointed a Project Sub-committee (consistin8 of the Chair, Secretary and Treasurer) to deal with day-to-day matters. The SuKommittee is authorised to spend up to £IO,OCK) without reverting to the full Trust meeting for approval.
Heron Educational Foundation Trustees Annual Report Statement of trustees, responsibilities in latiOn to the financial statements The charity trustees are responsible for preparing a trustee5' annLbal report and financial statements in accordance with applicable13w and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. the applicable Charities IAccounts and Report51 Re8ulations, and the provi5tons of the Trust deed. The Trustees arè also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irreBularities. Si8ne on behalf of the charity's trustees C. Bra2ier Trustee 03 August 2022
Heron Educational Foundation Independent Examiner5 Report Independent Examiner's Report to the trustees of Heron Educatlonal Foundation I report to the trustees on my examination of the financial statements of Heron Educational Foundation for the year ended 31 March 2022 which comprise the Statement of Financial Attivities, the Balance Sheet. the Statement of Cash Flows and the related notes. Responsibilities and basi5 of report As the chority's trustees you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 20111.the Act'l. The trustees consider that an audit is not required for this year under the Charitie5 Act 2011, s.144121 Ithe 2011 Act) and that an independent examination is needed. I report Sn respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable DIrtiOnS given by the Charity Commission under section 14515llbl of the Act. Independent examiner's statement I have completed my examination. I can confirm that no material matters have come to my attention in connertion with the examination giving me cause to believe that in, any material respect.. the accounting records We not kept in respect of the charity as required by sectlon 130 of the Act,. or the financial statements do not accord with those records- or the financial statements do not comply with the applicable requirements concerning the form and content of the ftnancial statements set out in the Charities IAccounts and Reports) Re8ulations 21Y)8 other than any requirement that the financial statements 8ive 8'true and fair, view which is not a matter considered as part of an independent examinatlon. I have no concerns and have come across no other matters in connection wtth the examlnation to which attention should be drawn in this report in order to enable a proper understandln8 of the financial statements to be reached. Shannon Smith MAAT ACCA MPH Accountancy Reaf of 9a Westgate Patrington East Yorkshire HV12 ONA 03 August 2022
Heron Educational Foundation Statement of Financial Activit for the year ended 31 March 2022 Unrestrirted funds Total funds Totsl funds 2022 2022 2021 Note5 Income and endowments from: Charitable activities Other trading activities Investments Other 2) 1.627 191,615 2LM) 1,627 191,615 2¢X) 4,452 45,600 Total 193.444 193,444 50,254 Expend5ture on: Other 61,807 61,807 43,811 Total 61,807 61,807 43,811 Net gains on investments 349 349 683 Net income 131.986 131,986 7,126 Transfers between funds Net income before other 8ainslllossesl 131,986 131,986 7,126 Other galns and losses Net movement In funds 131,986 131,986 7,126 Reconclliation of funds: Total funds brought forward 810,085 810,085 Total funds ¢arrled forward 942.071 942,071 7,126
Heron Educatlonal Foundation Balance Sheet at 31 March 2022 Charity No. 1187969 2022 2021 Fixed assets Investments 519.920 519,920 248,704 248,704 Current assets Stocks Cash at bank and in hand io i(KJ 567,281 567,381 16,0001 561.381 422,751 422.751 16CK)I 422.151 Creditors: AmoLtnt falling due withln one year Net current assets li Total assets less current IlabS1ities Net assets exduding pension asset or Ilabillty Total net assets 942.071 810,085 942.071 810,085 942,071 810,08S The funds of the charlty Restrlcted funds Unrestrlcted funds General funds 12 12 941.722 810,085 941,722 810,085 Reserves Revaluation reserve 12 349 349 Total funds 942,071 810.085 Approved by the trustees on 03 August 2022 And signed on thelr behalf by.. M. Havler Trustee 03 August 2022
Heron Educational Foundation Notes to the Accounts for the year ended 31 Marth 2022 l Accounting policies 8a5is of preparation The financial statements have been prepared in accordance w¢th Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland IFRS 1021 issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charitie5 Act 2011. Change in basls ot accounting or to previous a¢¢ounts There has been no change to the accounting policies (valuation rules and method of accounting) Since last year and no changes have been made to accounts for previous years. Fund a¢¢ountin8 Unrestricted funds These are available for use at the discretion of the trustees in fLSrtherance of the general objects of the charity. These are unrestricted funds earmarked by the trustees for particular purposes. These ore unrestricted funds which include a revaluation reserve representing the restatement of investment assels at their market value5. These are available for use subject io restrictions imposed by the donor or through terms of an appeal. Designated funds Revaluation funds Restricted funds Income Recognillon of income Income is included in the Statemenl of Financial Activities ISOFAI when the charity becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SOFA. Donations and legacles Voluntary income received by way of gr¥nt5, donatlons and 81fts is Included in the the SOFA when receivable and only when the Charity has unconditional entitlement to the income. Tax reclaims on Income from tax reclaims is included In the SOFA at the same time as the donations and gift5 giftldonation to which it relates. Donated services These are only included In income Iwith an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable. measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/llosses1 on This includes any gain or loss resultin8 from revaluing investments to market value revaluation of fixed at the end of the year. assets Gainslllossesl on investment assets This Includes any gain or loss on the sale of investments.
Heron Educational Foundation Notes to the Accounts Expenditure Recognition of expenditure Expenditure is recognised on an accruals basis. Expenditure includes any VAT which cannot be fully recovered, and reported as part of the expenditure to which it relates. Expenditure on These comprise the costs aswciated with attracting voluntary income, fundraising aising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activitie5 seryices in the furtherance of its objects. includin8 the making of grants and governance costs. All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. These include those costs associated with meetin8 the constrtutlonal and statutory requirements of the Charity, including any auditlindependent examination fees, costs linked to the strate8ic management of the Charity, together wlth a share of other administration costs. These are support costs not allocated to a particular activity- Grants payable Governance c05t5 Other expenditure Taxatlon The ch3rlty Is exempt from tax on its charitable activities. Freehold investment property Investment properties are measured inltlally at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or10sses are taken to the Statement of Financial Activities as thev arise. Stocks Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at falr value which is the amount the charily would have been willing to pay for the items on the open market. Trade and other debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offèred. Prepayments are valued at the amount Ppaid net of any trade discounts due. Cash and Cash equivalents Cash and cash equivalents cownpri5e cash at bank and on hand. deffland deposits with banks and other short-term highly liquid investment% wrth original maturtties of three months or less and bank overdrafts. In ihe Statement of flnanclal posltlon, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. Trade and other creditors Short term creditors are measured at the transaction pri. Other credftors and provisions are recoenised 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 nomially reco8nised at their settlement amount after allowing for any trade discounts due.
Heron Educational Foundation Notes to the Accounts Research and development Expenditure on research and development is written off in the year in which it is inCurd. Foreign currencies Monetary assets and liabilitie5 denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are tsken into attounl in arrivin8 at net income/expenditure. Leased assets Where the charity enters into a lease which entails taklng substantially all the risks and rewards of ownership of an asset, the lease 15 treated as a finance lease. Leases which do not transfer substantially all the risks and rewards of ownership to charity are classif4ed as operating leases. Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower. at the present value of ihe minlmum lease payments. The corresponding liability to the lessor is Included in the balance sheet date as a finance lease obliBation. Lease payment5 are apportioned between finance expenses and reduction of the lease obllBation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately. unless they are directly attributable to qualifying assets, In which case they are capitalised in accordance with the charity's policy on borrowin8 Costs. A55ets held under finance leases are depretiated in the same way as owned assets. OperatlnB lease payments are reco8nlsed as an expense on a straight-line basis over the lease term. In the event that lease Incentives ale received to enter into operating leases, such incentives are retognised as a liability. The aggregate benefit of Incentives is recognised a5 a reduction of rental expense on a stralght.line basis. Recelpt of donated 8oods, facilities and servlces All donated 8oods, facillties and servrce5 received are rec¢ydnised within incoming resources and expenditure at an estimate of the value to the charity.
Heron Educational Foundation Notes to the Accounts 2 Statement of Financial Activities- prlor year Unrestricted lunds Total funds 2021 2021 Income and endowments from: Charitable activities Other trading activities Investments Other 200 4,452 45,600 2CK) 4,452 45,6 Total 50.254 50,254 Expendlture on: Other 43.811 43.811 Total 43,811 43,811 Net gains on investmen15 683 683 Net income 7,126 7,126 Transfers between funds 802,959 802.959 Net Income before other 8alnslll¢ssesl Other 8alns and losses: Net movement in funds 810,085 810,085 810,085 810,085 Reconciliation of funds: Total fund5 Carrfed forward 810.085 810,085 3 Income from Charitable activities Unrestrlrted Total Total 2022 2021 YÉDL Wayleave 4 Income from other tradln8 actl¥ltles Unrestrfcted Total Total 2022 2021 Humbleton Recreation Club 21x1 2CM) 200 2C(I 2(J) 200
Heron Educational Foundation Note5 to the Actounts 5 Income from investments Unrestricted Total Total 2022 2021 COIF Dividend 120 120 89 Bank Interest Received 1,507 1,627 1,507 1.627 4,363 4.452 6 Other income Unrestrlcted Total Totsl Z021 2022 School House Rent 785 785 5,668 loo Sundry Income Grants I.830 191,615 I,830 191,615 39,832 45,600 7 Other expendlture Unrestrkted Total Total 2022 2021 Awards and Grants 419 419 I,ioo 1,039 306 Premises costs 157 157 General administrative c05tS 148 LeBal and professional costs 61,083 61,807 61.083 61,807 41,366 43,811 8 Staff costs No employee received emoluments In excess of £60,CW. 9 Investments Freehold Other investments Unlisted Investme Property Total Cost or revaluatlon At l April 2021 Additions Revaluation At 31 March 2022 Net book values At 31 March 2022 244,678 270,867 4,026 248,704 270,867 349 519,920 349 515.545 4,375 515.545 244.678 4,375 4,026 519,920 248.704 At 31 March 2021
Heron Educational Foundation Note5 to the Accounts 10 Stocks 2022 2021 Raw materials and consumables 100 11 Creditors: amounts falling due within one year 2022 2021 Accruals 6,0(X) 12 Movement In funds Intoming resources Ilncluding other At l April Balnsllosses 2021 Resources expended At31 Marth 2022 Restrfrted funds: Unrestrirted funds: General funds 810,085 193,444 161,8071 941,722 Revaluatlon Reserves: Revaluation fund 349 349 Total revaluation reserves 349 349 Total lunds 810,085 193.793 161.8071 942,071 Purposes and restrictions in relation to the funds- Revaluation reseNes Represent the amount by which Investments exceed their historical cost. 13 Analysls of net assets between funds Unrestrirted funds RestrSrted funds Totsl Investments Net current assets 4,375 422.151 426,526 515,545 519,920 422,151 942,071 515.545
Heron Educational Foundation Notes to the (Onts 14 Reconciliation of net debt At31 March At l Apryl 2021 Cash flows 2022 Cash and cash equivalents 567.281 567.281 1144.5301 1144,5301 422.751 422,751 Net debt 567.281 1144.5301 422,751
Heron Educational Foundation Statement of Cash flows for the year ended 31 Marth 2022 2022 2021 Cash flows from operating activities Net income per Statement of Financial Artivities 131,986 810,085 Adlu5tfflents for: Dividends, interest and rents from investments Decreasellincreasel in stocks (Decreaselllncrease in tr3de and other payables 1193,2421 IINJ 15.4(X)I 150,0521 11001 6,000 Net ¢ash (used Inllprovided by operatln8 •rtivities 166,5561 765,933 Cash Ilows from InVeing actlvltles Payments for investments Dividends, Interest and rents from investmenls 1270,8671 193,242 50,052 Net cash used in Investing artlvltles 177,6251 1194,6261 Net cash from financing actlvltles Nei Idecreasel/lncre•se in cash and cash equl¥alents {144,1811 571,307 Cash and cash equlvalents at the beglnning of the year 567,281 Cash and cash eqUIlentS at the end of the year 423.100 571,307 Components of cash and cash equivalents Cash and bank balances 422.751 567,281 422.751 567.281
Heron Educational Foundation Detailed Statement of Financial Activities for the year ended 31 March 2022 Unrestrirted lunds Totsl fvnds Total funds 2022 2021 2022 Income and endowments from: Charitable activilies YEDL Wayleave Other trading activities Humbleton Recreation Club 200 2CKJ 2CK) 200 200 200 Investments COIF Dividend Bank Interest Received 120 1,507 1,627 120 89 1,507 1,627 4.363 4.452 Other School House Rent Sundry Income Grants 785 785 5,668 loo 39,832 45.600 19),830 191,615 190,830 191,615 Total Income and endowments 193,444 193.444 50,254 Expenditure on: Other expenditure Awards and Grants 419 419 419 1,100 1,100 419 Premises costs Rates 3GO 360 14751 Premises repairs and maintenance Other premises Costs 1,091 13031 157 13031 157 423 1,039 General administrative costs. including depreciation and amortisation Staiionery and printing 148 148 148 306 306 Legal and professional costs Atjditlindependent examination fees Management charges Other legal and professional costs 21)) 21XJ 2(M) 81 81 729 60.802 60.802 40,437 61.083 61,083 41.366
Heron Educational Foundation Detailed Statement of Financial Arti¥ities Totsl of expenditure of other costs Totsl expenditure Net gains on investments 61,807 61,807 43,811 61,807 61,807 43,811 349 349 683 Net income 131,986 131.986 7,126 Transfers between funds 802,959 Net income before other galns/l1055esl Other Gains 131,986 131,986 810,085 Net movement In funds 131,986 131,986 810,085 Reconclliation of funds". Total funds brought forward 810,085 810,085 Total fvnd5 carrled forward 942,071 942,071 810,085