Charity registration number: 1193244
KITE College
Annual Report and Financial Statements
for the Year Ended 31 August 2021
Kite College
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 17 |
Kite College
Reference and Administrative Details
Chairman Bob Law Trustees Bob Law John Saville Bentley Tinothy O'Connor Simon Bounds Peter William Steward Josephine Campbell Nikki Clark Julie Ely Senior Management / Leadership Steve Badder, Principle Team Charity Registration Number 1193244 Principal Office Unit 1 & 2 Eurolink Way Bonham Drive Sittingbourne Kent ME10 3RY Independent Examiner Alison & Gary Robinson Independent Examiner Aims Accountants for Business New Stonehill Farm Stone Hill Road Egerton Kent TN27 9DU
Page 1
Kite College
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2021.
Objectives and activities
Objects and aims
Kite College was registered with the Charity Commission on 26th January 2021 as a Charitable Incorporated Organisation (CIO) with a board of trustees consisiting of 9 members.
Our Mission:
To provide chances and opportunities to all young people with complex learning difficulties through ambitious and inspriational lifelong learning and skills programmes
Our Vision:
To be Kent & Medway's leading independent specialisty education and training provision
Our Values:
Putting the education, training and aspirations of learners foremost Inspire all learners to develop and achieve their goals To achieve excellence in all aspects of provision for learners Respect diversity and promote equality Being creative to overcome challenges
Objectives, strategies and activities
Kite College is an Independent Specialist College, situated in the former Skills Centre, located on the Euro Link Industrial Estate in Sittingbourne through a lease agreement with Kent County Council (KCC), providing opportuniteis for youg people up to age 25, increasing specialist provision for young people across East Kent (Sittingbourne, Sheppey, Maidstone and Thanet) subjected to EHCP with SEMH and complex learning and behaviour dificulties, which ensures a better 'Local Offer' ensuring greater choice given to young people and their parents.
The College opened on 1st September 2021 for staff and 13th September 2021 for new learners. Referrals to the college are via KCC SEN.
The priority was to ensure the bulding could provide a safe and calming learning environment to learners, staff and visitors. This meant a complete redecoration to all classrooms, workshops and toilets, as well as establishing a catering and dining area that could provide healthy meals to its community. New furntiure throughout, workshop equipment and teaching resources are in place. This means the College is now able to offer vocational training in Constuction, Motor Vehicle Technology, Hair and Beauty along with Maths and English. Employability & Life Skills can be delivered within a brand new Skills Studio equipeed with fully functioning kitchen and appliances, as well as a Foundation Learning Programme for those learners with more complex needs.
Page 2
Kite College
Trustees' Report
Fundraising disclosures
Due to the College not securing it EFSA high needs funding contract for 2021/22, a funding agreement between KITE College and KCC SEN funding was agreed. An agreement to commission 30 places at the college over the first 12 months regardless of places being filled.
Individual Funding Arrangements (IFAs) have also been agreed with Medway Council for individual young people at the College.
Public benefit
The College has been established in response to the high number of children and young people with SEN. This has risen significantly in Kent and the local authority's own place planning forecasts have highlighted the pressure. East Kent has the highest number in the County with Swale and Sheppey having the largest number of EHCP and forecasted to rise by 23%
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Structure, governance and management
Induction and training of trustees
All staff and Trustees receive a planned induction which is supplemented by external providers such as HAYS Education Training Services as well as managers and leadership having responsibilities within the process. Staff induction policy and procedure are in place, and all new staff are invited to spend one date in College prior to their start date.
All staff are required to undertake essential training that must be completed within two weeks from their start date. This training includes safeguarding, Health & Safety, Safer Recuritment, GDPR, Fire awareness and any other specific training identified for that person. A staff training register is in place that records all staff training details.
Organisational structure
Kite College was registered with the Charities Commision on 26th Januay 2021 as a Charitable Incorporated Organisation (CIO) with a board of Trustees consisting of 8 members. The College has been established in response to the high number of children and young people with SEN which has risen significantly. In Kent this has been particularly evident and the local authoirty's own school planning forecasts have highlighted the pressure. East Kent has the highest number in the County. Swale and the Isle of Sheppey have the largest number of EHCP, forecasted to rise by 23%.
Referrals to the College are via KCC SEN. Although the number of referrals has been high as expected, with 57 referrals during a 12-week period, staff recuritment has been difficult due to the timing of opening and a shortage of suitable applicants to fill the positions required at the College. This has impacted on the number of young people the College has been able to offer places to.
Page 3
Kite College
Trustees' Report
Financial instruments
Objectives and policies
The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
Cash flow risk
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
Page 4
Kite College
Trustees' Report
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on 18 June 2022 and signed on its behalf by:
......................................... ......................................... Bob Law Julie Ely Chairman and Trustee Trustee
Page 5
Kite College
Independent Examiner's Report to the trustees of Kite College
I report to the trustees on my examination of the accounts of Kite College for the year ended 31 August 2021.
Responsibilities and basis of report
As the charity trustees of Kite College 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 Kite College'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:
-
accounting records were not kept in respect of Kite College as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting 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.
...................................... Alison Robinson Independent Examiner CIMA
Aims Accountants for Business New Stonehill Farm Stone Hill Road Egerton Kent TN27 9DU
18 June 2022
Page 6
Kite College
Statement of Financial Activities for the Year Ended 31 August 2021
| Note Income and Endowments from: Donations and legacies Charitable activities Total income Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds carried forward 12 |
Unrestricted funds £ 10,000 25,470 35,470 (11,716) (11,716) 23,754 23,754 23,754 |
Total 2021 £ 10,000 25,470 |
|---|---|---|
| 35,470 | ||
| (11,716) | ||
| (11,716) | ||
| 23,754 | ||
| 23,754 | ||
| 23,754 |
All of the charity's activities derive from continuing operations during the above period.
The notes on pages 9 to 17 form an integral part of these financial statements. Page 7
Kite College
(Registration number: 1193244) Balance Sheet as at 31 August 2021
| Note Fixed assets Tangible assets 9 Current assets Cash at bank and in hand 10 Creditors: Amounts falling due within one year 11 Net current liabilities Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 12 |
2021 £ 89,487 47,349 (113,082) |
|---|---|
| (65,733) | |
| 23,754 | |
| 23,754 | |
| 23,754 |
The notes on pages 9 to 17 form an integral part of these financial statements. Page 8
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Kite College meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The financial statements have been prepared on a going concern basis.
The trustees assess whether the use of going concern is appropriate i.e. whether there are any 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 trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
All resources expended are inclusive of irrecoverable VAT.
Page 9
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Asset class Building Improvements Office Equipment
Depreciation method and rate straight line over 10 years staright line over 4 years
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 10
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 11
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 12
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
2 Income from donations and legacies
| Grants, including capital grants; Government grants Total for 2021 3 Income from charitable activities 4 Expenditure on charitable activities Note Governance costs |
Unrestricted funds General £ 10,000 10,000 Unrestricted funds General £ 25,470 Unrestricted funds General £ 11,716 |
Total funds £ 10,000 |
|---|---|---|
| 10,000 | ||
| Total 2021 £ 25,470 |
||
| Total 0001 £ Total funds £ 11,716 |
Page 13
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
Total expenditure £
5 Analysis of governance and support costs
Governance costs
| Staff costs Wages and salaries Legal fees Marketing and publicity Other governance costs Total for 2021 |
Unrestricted funds General £ 5,555 143 571 4,697 10,966 |
Total funds £ 5,555 143 571 4,697 |
|---|---|---|
| 10,966 |
6 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries |
2021 £ 5,555 |
|---|---|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
2021 No Number of Employees 1
No employee received emoluments of more than £60,000 during the year
Page 14
750
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
7 Independent examiner's remuneration
----- Start of picture text -----
2021
£
----- End of picture text -----
Other fees to examiners
Examination-related assurance services
Page 15
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
9 Tangible fixed assets
| Cost Additions At 31 August 2021 Depreciation At 31 August 2021 Net book value At 31 August 2021 10 Cash and cash equivalents Cash at bank 11 Creditors: amounts falling due within one year Other loans Accruals 12 Funds Unrestricted funds General |
Furniture and equipment £ 1,042 1,042 - 1,042 Incoming resources £ 35,470 |
Other tangible fixed asset £ 88,445 88,445 - 88,445 Resources expended £ (11,716) |
Other tangible fixed asset £ 88,445 88,445 - 88,445 Resources expended £ (11,716) |
Total £ 89,487 89,487 - 89,487 2021 £ 47,349 |
|
|---|---|---|---|---|---|
| 1,042 - |
88,445 - |
||||
| 1,042 | 88,445 | ||||
| Incoming resources £ 35,470 |
Resources expended £ (11,716) |
||||
| 2021 £ 112,332 750 |
|||||
| 113,082 | |||||
| Balance at 31 August 2021 £ 23,754 |
Page 16
Kite College
Notes to the Financial Statements for the Year Ended 31 August 2021
13 Analysis of net assets between funds
| 13 Analysis of net assets between funds | ||
|---|---|---|
| Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 89,487 47,349 (113,082) 23,754 |
Total funds at 31 August 2021 £ 89,487 47,349 (113,082) |
| 23,754 |
Page 17
Kite College
Statement of Financial Activities by fund for the Year Ended 31 August 2021
| Income and Endowments from: Donations and legacies Charitable activities Total income Expenditure on: Charitable activities Total expenditure Net income Reconciliation of funds Total funds carried forward |
Total Unrestricted Funds 2021 £ 10,000 25,470 |
|---|---|
| 35,470 | |
| (11,716) | |
| (11,716) | |
| 23,754 | |
| 23,754 |
This page does not form part of the statutory financial statements. Page 18
Kite College
Detailed Statement of Financial Activities for the Year Ended 31 August 2021
| Income and Endowments from: Donations and legacies (analysed below) Charitable activities (analysed below) Total income Expenditure on: Charitable activities (analysed below) Total expenditure Net income Reconciliation of funds Total funds carried forward |
Total 2021 £ 10,000 25,470 |
|---|---|
| 35,470 | |
| (11,716) | |
| (11,716) | |
| 23,754 | |
| 23,754 |
This page does not form part of the statutory financial statements. Page 19
Kite College
Detailed Statement of Financial Activities for the Year Ended 31 August 2021
| Donations and legacies UK Government grants Charitable activities Contractual income from government or public authorities Charitable activities Wages and salaries Light, heat and power Telephone and fax Office expenses Computer software and maintenance costs Printing, postage and stationery Sundry expenses Cleaning Motor expenses Advertising Independent examiner's fee Legal and professional fees Bank charges Loan interest |
Total 2021 £ 10,000 |
|---|---|
| 10,000 | |
| 25,470 | |
| 25,470 | |
| (5,555) (836) (386) (27) (100) (1,656) (414) (258) (140) (571) (750) (143) (48) (832) |
|
| (11,716) |
This page does not form part of the statutory financial statements. Page 20