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 res￿nSibilit Independent audit0￿S 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 a￿rdance 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 confe￿n￿ 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&91￿nal courses for fOre￿n 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 internat￿nal 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 bul￿tIn$ 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$. Due to our high British Counal scores, L0Xda￿ was told that we were still in the top 8°A of all English language leaching providers in the UK. We were awarded use of the EL Gazette Centre of EX￿llenCe logo. The effects of CovHI-19 continued lo affect the work of The Swedish Folk H￿h School. The Covid situation around the world did not improve and meanl that Loxdale dKI not reeewe any closed groups for the whole year and had very few inlemational aduh students. Instead of hawng to make further staff redundant, the school did not replace office staff when they gave notice and other stsff picked up the work. Non-teaching staff have been wonderful in diversrfying the work that they were supposed to do to support the charity's work. prtching in to help with caretaking and social duties and other administration duties. The principal also continued to attend regular Health & Safety, Employment Law and Industry speafi webinars and zoom meetings lo ensure that all legislatiLM was being adhered lo and that SFHS was being as fair and eonsiderale to staff and students. The Swedish students who study at Loxdale continue to b8 from all social backgrounds including immigrants lo Sweden, those with mild depression. autism or Aspergerfs. those with an incomplete secondary education, university students and malLlfe students_ Some have a range of mental hearth issu8S that can be exasperated by the Lockdown periods and uncertainty and the school conb'nued lo provide monthly counselling S8ssions, support them through regular meetings and tutorials and individualising support when needed. During the year, the principal kept up with changes to the various govemment schemes and employment laws and kept in regular contscl with our regular agen￿dients. There were variou$ 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 SChc￿l. non-swedish students, and closed group in￿rne. 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 lim￿ng 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 In￿rne 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 A￿pted 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 cOn￿M 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 Irregularit￿S. 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, eX￿pt 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 0￿rdance 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 re￿tion 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 finan￿al 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$tge8 As explained more fully in the statement of trustees responsibilÈties. the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view, and for such intemal ts)ntrol as the trustees determine is necessary to enable the p￿paratIOn of financial statements that are free from material misstatement, whether due to fraud 01 error. In preparing the finanryal slalements. the trustees are responsible for assessing the eharity's abilty lo continue as a going concem, dis¢losing, a5 applicable, matters related lo going concem and using the going concern basis of accounting unless the trustees either intend tr) I￿uldate the charitable company or lo cease operations. or have no realislie alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reason8ble assuran￿ about whether the financial slalements as a whole are free from material misststemenl, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assuran￿ is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will ahNays detect a material misstalemenl when it exists. Misstatements can arise from fraud or error and are Considered material rf. individually or In the aggregate, they could reasonably be expected to influence the economic decisions of Use￿ taken on the basis of these financial ststement$. Irregylarilies, including fraud, a￿ instances of noniompliance wrth laws and regulations. We de￿gn 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 pl￿dureS 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 Mem￿lS, 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 actiV￿e5 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 a￿ets 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