Charity Reglstration No. 280428 Company R•gl8tration No. 1497558 (England and Walos) THE SWEDISH FOLK HIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
THE SWEDISH FOLK HIGH SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Truste08 P Sanders N Wescombe R Danielsson (Appointed 23 February 20211 (Appointed 23 February 2021} E Ingvarsson Secrntary and Prfncipal A Thatcher Charity number 280428 Company number 1497558 Rogistered office Loxdale Lccks Hill Portslade East Sussex BN41 2LA Audltor West & Berry Limited Mocatta House Trafalgar Place Brighton BN1 4DU
THE SWEDISH FOLK HIGH SCHOOL CONTENTS Page Trustees report Stalgmenl of trustees resnSibilit Independent audit0S reFL)rt Statement of financial acts"vities Statement of financial posrtion 10 Slalement of cash flows 11 Notes to the finanrial 31atements 12-21
THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 The Iruslees present their report and finanual statemènts for the year ended 31 December 2021. Please refer to Legal and Administrative InforTnat*Jn page for charity statutory infomiation. The financial statements have been prepared in ardance with the ac¢ounting policies set out in note 1 to the financial ststemenls and comply with the charity's Memorandum and Articles of Association. the Companies Act 2006 and "Accounting and Reporting by Charities". Ststement of Recommended Practice applicable lo charities preparing their accounts in accordan with the Finanaal Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021" leffecb.ve 1 January 20191. Objectiv•s and activities The school was established for the advanwnenl, promth.on and ftJrther8no of public educab"on. The charity's main objective is the provision of high-quality educational courses for foreign students. The policy continues to be lo utilise the funds supplied by Folkhogskola Braheskolan and the charity's assets n the most efficient and effective manner for the benefft of the students. The involvement of Folkhogskola Braheskolan enables the charity to concentrate on the education of th8 students. The charity also supplies confen and sports knltties to the local community. The objectives of The Swedish Folk High School for the year were to.. Continue to prowde high qualty edu&91nal courses for fOren students, onlin8 when necessary. Guard against a decline in student numbers through maintaining promotional activities. Maintain Contacts wrth existing agents around the wodd and partneTS With accurate information about what is happening in the UK regarding Brexit and the Covid restrictions. Aso, to encourage them to promote our closed courses and internatnal adult and Young Leamer Vr8e$ when their markets open up after the Covid pandemic. Refresh our website and marketing infomiation ready for concerted promotions in 2022. lrnprove in-house written resources and material ready for improved stijdenl numbers in 2022. The trustees have paid due regard to guidan issued by the Charty Commission in deciding what aclNrties the charity should undertake. The charitable company's policy is lo consutt and discuss with employees matters likely to affect employees, interests. Infomalion of matters of eoncern to employees is given through regular meetings, information bultIn$ and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting th& rforniance of the charity. Applications for employment by disabled persons are ahvays fvlly consKlered. bearing in mind the •tiludes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charitable company continues and that the appropriate training is arranged. 11 is the policy of the charitable company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Stratagic r9POrt The descfiplion under headings 'Achievements and performance. and 'Financial review, meet the comrAny law requirements for the trustees lo present a strategic report.
THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT IINCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Achl•v•ments and wrfomance It seemed as though we were going to be able to stsrt the temi as normal in January 2021 when another Lockdown was announced. Due to the excellent communication preparation and training that our staff had had, our students quickly settted into the online dasses and schwl online organised activitie$. Due to our high British Counal scores, L0Xda was told that we were still in the top 8°A of all English language leaching providers in the UK. We were awarded use of the EL Gazette Centre of EXllenCe logo. The effects of CovHI-19 continued lo affect the work of The Swedish Folk Hh School. The Covid situation around the world did not improve and meanl that Loxdale dKI not reeewe any closed groups for the whole year and had very few inlemational aduh students. Instead of hawng to make further staff redundant, the school did not replace office staff when they gave notice and other stsff picked up the work. Non-teaching staff have been wonderful in diversrfying the work that they were supposed to do to support the charity's work. prtching in to help with caretaking and social duties and other administration duties. The principal also continued to attend regular Health & Safety, Employment Law and Industry speafi webinars and zoom meetings lo ensure that all legislatiLM was being adhered lo and that SFHS was being as fair and eonsiderale to staff and students. The Swedish students who study at Loxdale continue to b8 from all social backgrounds including immigrants lo Sweden, those with mild depression. autism or Aspergerfs. those with an incomplete secondary education, university students and malLlfe students_ Some have a range of mental hearth issu8S that can be exasperated by the Lockdown periods and uncertainty and the school conb'nued lo provide monthly counselling S8ssions, support them through regular meetings and tutorials and individualising support when needed. During the year, the principal kept up with changes to the various govemment schemes and employment laws and kept in regular contscl with our regular agendients. There were variou$ rules throughout the year about what students had to do in the first days on tsir arrival in the UK and the level of sew-isolalion needed_ The prinapal kept students regularty infomied and supported them during these periods. Loxdale organised for meals to be delivered to the students each day, took shopping orders, and delivered these too. The school also made sure students had lateral flow tests during the course to spot any sèl of Covid eady. Throughout the year. Loxdale regularly amended their Covid Procedu in accordance with both the government r8commendalions and the situation locally in Brighton & Hove. Al various b'mes of the year. these have included 51aggered class time5, less Students in each Class. class dining rooms, one way system around the school. social distanang, masks in the communal areas. student informab.on meetings, Changes to the way students were taught so there was less movement in the classes and changes to the tsmetable struelure so that students were not ¢hanging classes as much. The wcial prc*Jramme was also amended so that we could continue to offer these bul in a Covid safe way. These changes minimised infections and meant that we didn't have to close the school at any lime in 2021 apart from the initial goveinmenl Lod(down in JanuarylFebruary. Through renting Out badrooms on site, the sch(y)l also managed to create a new temporary income stream. Staff also adapted to set up and care for these 3 to 4 students.
THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT IINCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The Swedish Folk High School ntInueS to be a committed member of the English UK Special Interest Group for Young Learners and has improved its procedures and policies for working with vulnerable adults and children. Anna Thatcher, Principal is on the Board and organises training session for this group. Anna Thatcher is still involved with Sussex Safeguarding, 8 dedicated Safeguarding Group for language schools in Brighton. The charity has still managed lo welcome requests from various thariknes and members of the local community to use the sports hall and conference facilities at discounted rates. Plans for the future include continuo1 improvement to the school and the courses offered. The situation ig looking more positive for 2022 including the start of a Chilean Young Leamer course in January 2022. Summer 2022 bookings have also started lo come in. Financbal r•vl•w The statement of Financial Activities shows a net income of £22,512 12020.. £63,810 net lossl, total reserves stand al £1,087,47812020: £1,064,966) and free reserves al £64,118 {2020. £33,819) The principal sources of income are the edLFcational grant from Folkhogskola Braheskolan supplemented by conference, rentsl, the Summer SChcl. non-swedish students, and closed group inrne. The expenditu during the year continued to be applied to staff costs and the premise$ running costs, supporting the objectives. The Present level of funding is considered adequate to support the continuation of The Swedish Folk High School and the Iruslees eonsider that the finanaal tKJsition of the charity is sab"sfactory. The continued effect of Covid meant that the number of student weeks did not greatly improve in 2021. However, despite this and mosty due to the income from onsite accommodation rental and staff consolidation, Loxdal8 managed lo secure a profil for the year. In 2021 Loxdale English Centre had a total of 1471 student weeks. {2020." 1343 student weeks, 2019: 3819 student weeks}. The Principal and Accounts Manager ntInUe to work together to react quid(fy to maintsin ca5hflow for the school. cancellintychanging any wssible supplN?r contracts and limng all bul essential purchases. The Swedish Folk High School was also able lo use the Government Job Retention Scheme, also known as furfough scheme. This was an incredible help lo the chanty in being able to keep our staff employ8J ktween January and Seplembef 2021. The prinapal also applied for any grants that might possibly be given lo the school by the government or local eounal. As in 2020, the Board Confirmed that their parent company. FU. is in a strong financial situation and this should seNe as a guarantee. There is no threat lo Loxdale's continued work over the next year. H¢)wever. the Principal continues lo monitor the situation closely and rf a loan from FU or a bank is needed. this will be di$ssed in good lime. The trustees believe that maintaining reserves at current levels will provide sufficient resources in the event of further adverse conditions. Organisational controls include an annual reviw4V of the controls ¢Mr key financial systems. The trustees have assessed the major risks to which the charitable company is exposed and are satisfied that systems ale in place lo mrtigale exposure to the major risks. Structura, govemance and management The charitable company is a company limited by guarantee and is therefore govemed by ils memorandum and articles of association.
THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT IINCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The trustees. who are also the directors for the purpose of company law. and who served during the year and up lo the date of Signatu of the financial statements were". E nek B Fothman P Sanders N Weseombe R Danielsson E Ingvarsson (Resigned 23 Febnjary 20211 (Resigned 23 February 20211 (Appointed 23 February 2021) {&¥)1n1ed 23 February 2021) None of the truste&s has any beneficial interest in the o)mpany. Al of the trustees are members of the company and guaranl8e to contribute £1 in the event of a winding up. The Company Memorandum & Articles stale that one-third of the directors must resign each year but each can be eligiblé for re*lection should helshe and the Board wish rt. In accordance with the charity's procedures, new trustees, wilh an interest in the marketing and success of th& charity are nominated by Sliftelsen Braheskolan. They are inducted and supported by the Chairman. The trustees are Currently looking lo elect one more person lo the Board. The trustees meet at least four times a year to manage the charity's affairs. Al these meetings current situation is discussed. along with the matkeb.ng process. financial posrtion, major maintenance issues and funding. The Principal makes the day-t(hday decisions in njnning the school and meets with one or more of the Board to discuss marketing and maior financial decisions at various ts"mes. Key management remuneration is sel by the Trustee5. The charity receivas grant Inrne from Folkhogskola Br8heskolan on a monthly basis. The Ifustees consider that the major risk to which the charity 1$ exposed is a reduction in grant funding. However. the increase in the number of intemalional students, closed course income and the development of the summer young 18arnef courses are considered sufficient to mitsgate this risk. Auditor In aecordance with the company's aibcles. a resolution proposing that Wesl & Berry Limited be re4)pointed as auditor of the company will be put at a General Meets"ng. Disclo8uro of Inforniation to audltor Each of the trustees has confimied that there is no infomation of which they are aware which is relevant to the audit, bul of which the auditor is unaware. They have further eonfimied that they have taken appropriate steps lo identrfy such relev8nl infoimats'on and to establish that the auditor is aware of sueh infomation. The trustees report was approved by the Board of Trustees. /dts P Sanders Trusteo N Wescombe Trustee 24 February 2022
THE SWEDISH FOLK HIGH SCHOOL STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Iruslges, who are also the directors of The Swedish Folk High School for the purpose of ttsmpany law, are responsible for preparing the Trustees Report and the finanaal ststemenls in accordance with applicable law and United Kingdom Accounting Standards {United lQ"ngdom Generalty Apted Accounbng Practice}. Company Law requires the Iruslees to prepare financial stslemenls for each financial year which give a true and fair view of the stste of affairs of the tharity and of the incoming resources and aF¥)lieation of resourees, including the income and expenditure, of the charrtable company for that year. In preparing these financial ststemenls. the trustees are requrred lo.. - select suitable accounting policies and then apply them consistendy.. - observe the methods and principles in the Charities SORP: - make judgements and eslimales that are reasonable and prudent.. slate whether applicable UK Accounting Standards have been followed. subject lo any material departures disdosed and explained in the financial statements,. and prepare the financial statements on the going cOnM basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position of the charity and enable them to ensurè Ihat the financial slalements comply with the Companies A¢1 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevent and deleth.on of fraud and other IrregularitS.
THE SWEDISH FOLK HIGH SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE SWEDISH FOLK HIGH SCHOOL Opinion We have audited the financial statements of The Swedish Folk High School Ithe 'charity'l for the year ended 31 December 2021 whieh comprise the statement of financial activities, the statement of financial posilKJn, the slalement of cash flows and the notes lo the financial stalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Stsndard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting Praeticel. In our opinion, the financial statements.. give a true and fair view of the stale of the charitable company's affairs as at 31 December 2021 and of its incoming resoufces and application of resources, for the year then ended,. have been property prepaied in accordance with United "ngdorn Generally Accepted Accounting Practice; and have been prepared in accofdance wrth the requirements of the CompaniesAcl 201X. Ba8is for oplnlon We conducted our audit in accordance with Inlemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities lor the audil of tlje financial slalements sects.on of our reFKJrt. are independent of the charity in accordance with th8 ethical requirements that are relevant to our audrt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethi¢al responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions rol•tlng to going ¢oncern In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the finanaal statements is appropriate. Based on the work we have perfomied, we have not idefitsf any material uncertainties rolating to events or conditions that, individually or eollectively. may east signtfieant doubt on the char*ty's ability to continue as a going concern for a period of al a$1 twefve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Othgr infom)atlon The other information comprises the informab'on included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are re$ponsible for the other inforniath'on contained within the annual report. Our opinion on the financial statements does not eover the other information and, eXpt to the exlenl otherwise explicitly stated in our report, we do not express any fonn of assuran¢e conclusion thereon. Our responsibility is to read the other informaty'on and, in doing so, consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtsined in the course of the audit, or otherwise appears to be materially misstated. If we idenlfy such material inconsislenues or apparent material misslalements, we are required lo delem)ine whether this gives rise to a material misslalement in the financial statements themselves. If. based on the work we have performed. we conclude lttal the is a material misslalement of this other infomakn"on. we ar8 required to report that fact We have nothing lo report in this regard. Oplnions on other mattevB pr8serlbod by the Companles Act 2006 In our opinion. based on the work undertaken in the course of our audil.. the infomation given in the trustees rewrt. which indudes the directors. report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial slatemenls". and the directors, report included within the trustees rekX)rt has been prepared in 0rdance wrth applicable legal requirements.
THE SWEDISH FOLK HIGH SCHOOL INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE SWEDISH FOLK HIGH SCHOOL Matters on which w• are requir•d to rnport by •xc•ption In the light of the knowledge and understsnding of the charity and tts environment obtained in the course of the audiL we have not Identif material misstataments in the directors, report included within the trustees ieport. We havg nothing to report in respect of the following matters in retion to which the Companies kl 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or relums adequate for our audi( have not been received from branches not visited by us." or the finanal statements are not in agreement with the accounting records and retums,. or certain disclosures of trustees, remuneratson specrfied by law are not made,. or wa have not receivgd all the infonnation and explanatK)ns we require for our audtt," or the trustees were not entitled lo prepare the financial statements in accordance with the small companies regime and tske advantsge of the small companies. exempb.ons in preparing the trustees report and from the requirement lo prepare a strategic reporL Rasponsibiliti ot tru$tge8 As explained more fully in the statement of trustees responsibilÈties. the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view, and for such intemal ts)ntrol as the trustees determine is necessary to enable the pparatIOn of financial statements that are free from material misstatement, whether due to fraud 01 error. In preparing the finanryal slalements. the trustees are responsible for assessing the eharity's abilty lo continue as a going concem, dis¢losing, a5 applicable, matters related lo going concem and using the going concern basis of accounting unless the trustees either intend tr) Iuldate the charitable company or lo cease operations. or have no realislie alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reason8ble assuran about whether the financial slalements as a whole are free from material misststemenl, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assuran is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will ahNays detect a material misstalemenl when it exists. Misstatements can arise from fraud or error and are Considered material rf. individually or In the aggregate, they could reasonably be expected to influence the economic decisions of Use taken on the basis of these financial ststement$. Irregylarilies, including fraud, a instances of noniompliance wrth laws and regulations. We degn procedures in line with our responsibilities. outlined above. to detect material misstatements in respaet of irregularities, including fraud. The extent to which our procedures are capable of detecting iffegLtlarities. including fraud. is detailed below. The objectives of our audit are to identfy and assess the risks of material mis51atement of the ffinancial statements due lo fraud or error., to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due lo fraud or error, and lo respond appropriately lo those risks. Owing lo the inherent limitations of an audit. there is an unavoidable risk that material misstslemenls in the financial statements may not be detected, even though the audit is property planned and perfom*d in accordance with the ISAS IUKI. In identifying and assessing risks of material misstslement in respect of irwularities. including fraud and non- compliance with laws and regulth"ons, our pldureS induded the following: We obtained an understanding of the legal and regulatory frameworks applicable lo the charity and the sector in which it operates. We delemiined that the following laws and regulations were most significant". the Charities Act 2011 and the Compan$ Act 20(. We obtained an understsnding of how the chartty is comptying with the legal and regulatory framewrxks by making inquiries to management. We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. Audit pr(lureS perfom)ed by the engagement team induded..
THE SWEDISH FOLK HIGH SCHOOL INDEPENDENT AUDITOR'S REPORT ICONTINUED) TO THE TRUSTEES OF THE SWEDISH FOLK HIGH SCHOOL identsfying and assessing the design effecttveness of controls management has in place to prevent and detect fraud., • understanding how those charged with governance considered and addressed the potential for override of controls or other inappropnate influence over the financial reporting process., identifying and lesling joumal entn"es. in partieular any joumal entries postéd wth unusual account combinations., and assessing the extent of Complian with the levant laws and regulations. A further description of our responsibilities is available on the Financial ReFQrting Council's website at.. https.'Il .frc.org.ukJauditorsresponsibiliti8s. This description forms part of our audito¢s report. This report is made solely to the charitsble company's MemlS, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has en undertaken so that we might stste lo the charitable company's members those matters we are required tr) state lo them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitsble company's members as a t¥)dy. for oui audit work, for this report, or for the opinions we have formed. Mlchèll• Westbury FCCA {S•nior Statutory Auditor) for and on behalf ofWe$t & Berry knmited 24 February 2022 Ch8rtered Certifled A¢¢ountants Statutory Audltor Mocatta House Trafalgar Place Bnghlon BN14DU
THE SWEDISH FOLK HIGH SCHOOL STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOMEAND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Unrostrl¢ted Unrgstrlcted fund8 funds 2021 2020 Notos Grants Charitsble activities Investments Govemment grants 262,110 90,907 27,740 71,719 281.847 104,269 33,069 76,819 Totsl Incomo 452.476 496,004 Charitable activities 429.964 559,814 Net Incom•llexpenditurel for the yearf Net movement In funds 22,512 163,8101 Fund balances al 1 January 2021 1,064,966 1,128,776 Fund balances at 31 D•¢ember 2021 1,087,478 1,064.966 The slalement of financial activib-es includes all gains and losse5 reccMJnised in the year. Al income and expenditure derive from continuing actwities. The statement of financial actiVe5 also complies with the requirements for an income and expenditure account under the Companies Act 20C6.
THE SWEDISH FOLK HIGH SCHOOL STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 2021 2020 Notes Fixed asset8 Tangible assets 10 1.023,360 1,031, 147 Current assèts Debtors Cash al bank and in hand 11 165.827 271,293 104,823 182,536 437,120 287.359 Croditor8: amounts falllng due within ono year 13 (207,318) (109,794) Not current assets 229,802 177,565 Total aets less current Ilablllties 1,253.162 1,208,712 Croditors: amounts falling due after more than one year 14 1165,6841 1143,7461 Net a8s0ts 1.087,478 1,064,966 Ineom• funds nr General unrestricted funds Revaluation reserve 1,006,053 81,425 983,541 81,425 1,087,478 1,064,966 1,087,478 1.064,966 The finanrjal statements were approved by the Trustees on 24 February 2022 P Sanders Trustee N Wescomte Trustee Company R8glstratlon No. 1497558 10-
THE SWEDISH FOLK HIGH SCHOOL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Cash flovts from operatlng actfvltles Cash generated fromllabsorbed by) oper8tions 30,758 {145,782} Investlng activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Investment income received {407} 2.820 33.069 27,740 Not Cash generat fr¢)m invosting activiti 27,740 35,482 Financing activities Proceeds of new bank loans Repayment of bank loans 90.000 159.741) 50,000 11.1911 cash generatgd from flnanclng activities 30,259 48,809 Net increaselldocr•a8•) In cash and cash equivalents 88,757 161,491) Cash and cash equivalents al beginning of year 182.536 244.027 Cash and cash 8qulvalents at end <rf year 271.293 182,536 11
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting polici Charlty information The Swedish Folk High School is 8 private company limited by guarantee incorporated in England and Wales. The registered office is Loxdale. Hill, Portslade. East Sussex, BN41 2LA. 1.1 Aecounting convention The financial statements have been prepared in accordance wilh the charity's Memorandum and Artides of Association. the Companies Act 20C6, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland- I"FRS 102.1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practs'ce applicable to charities preparing their accounts in ac¢ordance wilh the Finanaal Reporting Stsndard applieable in Ihe UK and Republic of Ireland {FRS 1021" (effective 1 January 20191. The charity is a Public Benefft Entity as defined by FRS 102. The financial slalements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial slalements are rounded to the nearest £. The financial ststement5 have been prepared under the historical cost CL)nvenb"on. The principal accounb'ng policies adopted are set out below. The accounts eompty with FRS 102. 1.2 Going ¢oncorn The trustees have a reasonable expectstion that the charity wll continue in operalional existence for the foreseeable future. however, due to the impact of COVID-19 the trustees are aware of certain uncertainties which may cause doubl on the charity's abilty lo eontsnue as a going concem but agree that mitigating acb.ons taken including the availabilty of finance are judged sufficient that the accounts should be prepared on the basis of going concern. 1.3 Charltable funds Unrestricted funds are available for use al the discretion of the trustees in furtherance of their charitable objectlV8S_ The charity has estsblished a designated fund as a reserve to protect against industy downtum, rerfomi emergency rèpair work. or other uses at the di$¢retion of the ttustees. In nomial years the fund shall equate to 30% of the annual surplus. Due lo the drficult conditions created by the COVltk19 pandemic no amount has been transferred to this reserve for 2021. 1.4 Incomfj Grant and fental income are included on a recewable basis. Course fees received in advance are deferred. Funds received as Agent relating to accommodation are not recognised in the aco)unls. Government grants are reeognised when the charity becomes entsed to receive the grant. 12-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng poll¢l08 (Continued) 1.5 Expendituro Expendire is recognised once there is a legal or constructive obligation lo transfer economic benefit to 8 third paty, it is probable that a transfer of eo)nomic benefits will be required in settlement, and the amount of the obligation can be measured reliabty. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support C051s involved in undertaking each activity. Direct costs attnbutalse lo single activity are allocated directty lo that aclivity. Shared costs which contribute to more than one aelivity and support costs which are not attributable to a single activity are appottioned betsveen those aclivity'es on a basis consistent with the use of resources. Central stsff costs afe all¢xated on the basis of time spent. and depreciation charges are all¢)cated on the portion of the asset's use. Resources expended are included in the Statement of Financial Activitbes on an accruals basis inclusive of any VAT which cannot be recovered. Charitable expenditure are expenses in¢urred diredy in pursuance of the charity's principal activity and support costs relating to this aclNity. Support costs are those incurred in connection with running the charity that enabS the charitable activity lo be undertaken. Govemance costs are those incurred in the govemance of the charity and its assets and are primarily associated with constitutional ar*d statutory requirements. 1.6 Tanglblè rued assets Tangible fixed assets are inib'alty measured at cost and subsequently measured at cost or valuation, nel of depreciation and any impairment losses. The Charity has a polw of capitslising fixed assets that cost in excess of £250. Depreciation is reccy3nised so as to wrilg off the cost or valuation of assets less their residual values over their useful lives on the following bases". Freehold land and buildings Plant and equipment Motor vehicles 2% straight line (where above residual valLFel 25% reduung balance 25% reducing bajance No depreciation is provided in respect of freehold land and buildings. The Charity has a policy of high maintenance of the building and the trust feel that this leads lo a high residual value such that depreryation would not be material. The gain or loss arising on the disposal of an asset is detemiined as the ditlerents betsveen the le proceeds and the carrying value of the asset, and is reeognised in the ststement of financial activities. 1.7 Impairnient of fued a889ts Al each reporting end date. the charity reviews the carying amounts of its tsngible assets to delemiine whether there is any indication thal those assets have suffered an impaimient loss. If any such indution exists, the recoverable amount of the asset is estimated in order to detemiine the extent of the imroirmenl loss {if any). 1.8 Ca•h and Ga8h wuiyalents Cash and cash equivalents include eash in hand and deposits held at call with banks. 13-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting pollci88 (Contlnuedl 1.9 Financial instruments The charity has eleded to apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charitys balan sheet when the tharity becomes party lo the onlractual provisions of the instrument. Financial 85sets and liabilities are offseL with the net amounts presented in the financial slalwnents, when there is a legally enforceable right to sel off the recognised amounts and the is an intention to settle on nel basis or lo realise the asset and settje the liability simultaneousty. Basic financial assets Basic financial assets, which include debtors and cash and bank balan¢es. are initially measured at transaction priee including transaction costs and are subsequenlly carried al amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts dIsunted al a market rale of interest. Financial assets classffied a$ receiv8bke wrthin one year are not amortised. Basic financial liabilhles Basic financial Iiabililies, including eredttors and bank loans are initially recognised at transacts'on price unless the arrangement constitutes a financing transaction. where the debt instrument is measured al the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequentty carried at amortised cost. using thè effectiv& interest rato method. Trade creditors are obligations to pay for go(xls or serVIS that have been acquired in the ordinary course of operations from suppliers. AJnounts payable are classified a5 current liabilities rf payment is due within one year or less. If not. they are presented as non<urrenl liabilities. Trade creditors are recognised initially at transaction price and SUbsequenY measured al amorb.sed cost using the effecb've interest method. Dern¢ognition of financial Ilabllities Financial liabilities are derecognised when the charty's contractual oblatIonS expire or are discharged or eantelled. 1.10 Employee beTr•flts The cost of any unused holiday entitlement is recognised in the pericd in which the employee's services are recewed. Ternination benefits are recognised immediately as an expense when the charity is demonstrably committed to teminale the employment of an employee or to provide terminab.on benefits. 1.11 Retlrom•nt bengffts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.12 Forelgn exchang• Transactions denominated in foreign currencies are recorded at the rale ruling at the date of the transaction. Monetary assets and liabilrties denominated in ft)reign currencies are translated into sterting al the rates of exchange ruling at the balance sheet date. Al drfferences ar8 included in net oulgoings resources. 14-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting pollcl {Contlnued} 1.13 Funds The funds of the tharity are all unrestricted. 1.14 Value added lax Value added tax is not iecovered by the charty and as such is included in the relevant costs in Ihe Slalement of Financial Activities. Critical ac¢ountlng estlmats8 and judg•ments In the application of the charity's a(XOLtnting pdicies, the trustees are required to make judgements. eslimales and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered to relevanL Actual results may drffer from these estimates. The eslimales and undertying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales are recognised in the period in whtch the estimate is revised where the revision affects only that period, or in the period of the revision and future periods Whe the revision affects both current and future periods. Grants Unrestri¢t•d Unrestricted funds funds 2021 2020 Grants Receivable 262.110 281,847 Charitable actlvltles Unra¥trictedUnre8trictod funds funds 2021 2020 Incoming resources from charitable aclivities 90,907 104,269 Funds reIved as agent not recognised in the UnIS £114.109 (2020. £101.070) 15-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Investments Unr¢strictgd Unrestricted funds funds 2021 2020 Rentsl Income 27.740 33,069 Government grants Unrestrlcted Unrestricted funds funds 2021 2020 Gov8mment grants 71.719 76,819 During the year the charity reIved grants under the Governments Coronavirus Job Retention Scheme. Additionally the local authority provided Coronavirus grant funding under the scheme for small businesses. 16-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charitablo activities UnrgstrictedUnre8tricted fund8 funds 2021 2020 Staff costs Depreciation and impaimenl Commission and discounts Material I library I student Sport hall eosls Stsff canteen I weare l entertainment Building costs Marketing costs Bus passes Other administrab'on costs- main Representation l Bntish Council Subscriptions and professional fees Bank charges Loan interest Loss on disposal of tangible fixed assets 267,966 7,787 2,048 52,682 336,263 10,382 8,016 52,211 14 4.635 75.782 11,503 2,010 34,146 5,941 2,163 1.110 6,561 1,464 4,180 44,183 7,084 16 19,837 3,708 2,401 970 7,423 420,285 550,201 Share of g0veMan costs (see note ) 9.679 9,613 429,964 559,814 Governance costs include payments to the audrtots for audit fees of £5,200 {2020' £5,200) and non-audil fees £4,10012020 £4,100) Included in expenditure above are operab.ng kase payments of £3,45612020'. £3,456) Support costs are costs incurred to faa"litate an aclivty. Unlike direct costs, which result dir• from undertaking the activity. All costs above relate directly to the one actwity of running of the school, support costs including payroll and finance are not considered material lo disclose separately as support costs. Trustees None of the trustees lor any persons connected with them) received any remuneralion or benefits from the charity during the year. Furthermore no expenses wère 1mbu[sed to the trustees during the current or prior year. 17-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Employ898 The average monthty number of employees during the year was". 2021 Number 2020 Number Administrative Teaching Premises 10 Total 12 19 Employment CO8t8 2021 2020 Wages and salaries Social secur¢ty costs Other pension costs 246.743 12,983 8,240 307,508 18.831 9,924 267.966 336.263 There were no employees whose annual remuneration was more than £60.000. 10 Tangible fixod assets land *nd bulldlngs Plart and Motor v•hi¢1oS Totsl Cost At 1 January 2021 1.OCN).000 181,546 12,620 1,194,166 At 31 December 2021 1,000.000 181.546 12.620 1.194.166 Depreciation and impaim)ent Al 1 January 2021 Depreciation charged in the year 153,554 6,998 9,465 789 163,019 7,787 At 31 December 2021 160.552 10,254 170,806 Carrying amount At 31 December 2021 1.000,0 20.994 2,366 1,023,360 At 31 DeCeMr 2020 1.O¢Jo.000 27.992 3.155 1,031,147 On adoption of FRS 102 the deemed cost exempt was applied to land and buildings with a carrying value of £1,000,000. At the 31 December 2021. h8d the revaluèd assets baèn carried 8t historiGal cost le88 aGGumulated depreciation and accumulated impaim)enl losses. their carying amounts would have been approximately £918,57512020.' £918.5751- 18-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 11 Dgbtors 2021 2020 Amounts falling due within one ygar. Trade debtors Other debtors Prepayments and accrued income 139.323 9.017 17,487 62,137 8,780 33,906 165.827 104,823 12 Loans and overdrafts 2021 2020 Bank loans 189.327 159,068 Payable within one year Payable after one year 23,643 165,684 15,322 143,746 Amounts included above which fall due after five years.. Payable by instslments 34,755 48,886 The long-temi loans are secured by fixed charges over the freehold land and building. 13 CreditorB: amounts falling due within one year 2021 2020 Bank loans Other laxalion and social se¢unty Deferred income Trade creditors Other creditors Ac¢rual8 12 23,643 3,923 153,978 4,6 1,499 20,209 15,322 5,170 54,802 20,370 1,288 12,842 15 207,318 109,794 14 Credltorn: amounts falling due after more than one year 2021 2020 Not8s Bank loans 12 165.684 143,746 19-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 15 Dof•rr•d incomo 2021 2020 Arising from course fees 153,978 54.802 16 Rotirement b•nofrt schem Defined contribution schemes The charity operates a defined contribution pensh)n herne for all qualrfying employees. The ass8ts of the scheme are held separately from those of the charrty in an independently administered fund. The pension cost charge PresentS contributs.ons payable by the charitable company to the fund. The charge to profil or loss in respect of defined contribution schemes was £8,240 12020.. £9,924). The amount due lo the pension scheme at the balance sheet date £68112020". £836). 17 Designatod funds The income funds of the charity include the follrhwng designated funds which have been set aside out of unrestricted funds by the trustees for sFecffic Purposes". 2020 2021 B#lance at Allo¢abon Res[¢¢5 Balance •t Allocation Balancè at 1 January 2020 from gènpral &xF*nthd 1 January 2021 from 31 D8cemb•r 2021 Designated Fund 15,145 115.145} 15,145 115.14S} 18 Operating lea$• Commitmgnts Al the reporting end date the charity had outstanding mMitmentS for future minimum lease payments under non-cancellable operats'ng leases, which fall due as follows- 2021 2020 thin one year Beeen tr40 and five years 1.728 3,456 2,592 1.728 6.048 -20-
THE SWEDISH FOLK HIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 19 Rèlated party transactions Remuneration of key managemènt personnèl The remuneration of key management personn81 is as follryws. 2021 2020 Aggregate compensation 54.713 54,700 Trusts•8 There are no related party transactions with any trustees for both the current and prior year. 20 Cash generatod from op•rdtions 2021 2020 Surplusl{deficrtl for the year 22.512 (63.8101 Adjustmen15 for. Investment income recognised in stslement of financial activiti.es IGain}Iloss on disposal of tangible fixed assets Depreciation and impaimient of tangib fixed assets 127,740) 133,0691 1,464 10,382 7,787 Movements in working captsl= Ilncreasel in debtors {Decfeasel in creditors Increaselldecrease) in deferred income 161,0041 19.973} 99.176 15,0471 115,4131 140,2891 Cash generated froml(absorb8d by) 0rationS 30,758 1145,7821 21 Analysls of chang•8 In net funds At 1 January 2021 Cash Ilows At 31 D8¢ember 2021 Cash at bank and in hand 182.536 88.757 271,293 Loans falling due within on8 yeaf Loans falling due after more than one year {15,3221 1143,7461 {8.321) 121.938} 123,6431 {165,684} 23,468 58,498 81,966 -21