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2023-08-31-accounts

Registered number: 00856842 Charity number: 307530

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 6
Independent Auditors' Report on the Financial Statements 7 - 10
Consolidated Statement of Financial Activities 11
Consolidated Balance Sheet 12
Charity Balance Sheet 13
Consolidated Statement of Cash Flows 14
Notes to the Financial Statements 15 - 26

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees I R Flack
D Eyton-Williams, Chair
J J Leydon
A Whiteley
Company registered
number
00856842
Charity registered
number
307530
Registered office
58-60 Shakespeare Road
Bedford
MK40 2DL
Company secretary
I R Flack
Independent auditors
Streets Audit LLP
Chartered Accountants
Registered Auditors
Potton House
Wyboston Lakes
Great North Road
Wyboston
Bedford
MK44 3BZ
Bankers
HSBC plc
12 Allhallows
Bedford
Bedfordshire
MK40 1LJ

Page 1

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2022 to 31 August 2023. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Greenacre Trust Limited (GT, formerly Rushmoor School Limited) is a company limited by guarantee (number 00856842) and a registered charity (number 307530). The company’s origins were as a privately owned independent school in London which moved to Bedford in 1918. In 1965 the original charitable corporate structure was created to acquire the school which traded successfully since that date. In January 2021 the company changed its name and on 1st May 2021, new articles were adopted to reflect its further changed status as a Charitable Development Education Trust. The former education delivery of Rushmoor School, together with that of St Andrew’s School (Bedford) Limited was transferred to a new charitable education trust, Bedford Greenacre Independent School Limited (BGIS). However, as a development education trust, Greenacre Trust Limited retained its freehold premises, together with certain other assets; in addition, the freehold premises held by St Andrew’s were transferred to Greenacre Trust Limited.

Objectives and activities

a. Objectives and activities

The Company’s principal charitable objective is to provide and maintain school premises for the delivery of independent education for boys and girls from Bedford and its surrounding area. Following the re-structuring in April/May 2021, the existing premises at Shakespeare Road, Bedford and Kimbolton Road, Bedford are leased to BGIS.

The company also owns the freehold of a 40 acre site, known as “Clapham Park” at Clapham Road, Bedford which has the benefit of planning consent for the construction of a new school. Building work on the site commenced towards the end of 2023 and it is planned that the development will be substantially completed by December 2024. The development will be funded from the sale of the existing school sites and with the benefit of a long-term loan, secured on the freehold of the new development. On completion, the new school will be leased to BGIS at a market rent. An Agreement to Lease between GT and BGIS reflects this current intention.

b. Main activities undertaken to further the Charity's purposes for the public benefit

The company is established as a Charitable Education Development Trust, by way of a not-for-profit company, limited by guarantee. The Charity’s objects are set out in the Articles of Association.

c. Public benefit

The Directors are supportive of the Charity Commission’s general guidance on Public Benefit and by making available school premises to Bedford Greenacre Independent School, which itself meets the guidance in a number of ways, the Company is committed to the provision of independently sourced education for pupils to whom it would not otherwise be available. Additionally, the school’s facilities will be made available to the wider community, in line with our own and the aims of BGIS.

Page 2

GREENACRE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance

a. Review of activities

The Company changed radically in 2021, part-way through the usual 12 month accounting cycle by adopting new Articles of Association, effective from 1 May 2021, ceasing the provision of educational services and becoming an Education Development Trust, with the Charity Commission’s approval.

During the period from 1 September 2020 to 30 April 2021, the company continued as Rushmoor School, working closely with St Andrew’s School (Bedford) Limited in the delivery of educational services. Whilst the school was able to attract additional numbers of pupils on role, the period was nevertheless affected by periods of significant disruption due to the impact of the coronavirus pandemic and periods of lockdown. The school’s response to these challenges, by following sound guidance to help prevent the spread of the virus and with the provision of a wide range of on-line teaching was well received by pupils and parents alike and was reflected in encouraging achievements both in terms of pupil attainment and in the company’s trading results. The final four months of the 2021 reporting period reflect the company’s changed status to that of an Education Development Trust during which it continued to progress arrangements ahead of planned development on the new Clapham Park site.

Since May 2021 and for the duration of the year under review, the company’s principal income has been by way of rent for the lease of the two school sites whilst expenditure has been for services related to the plans for the development of the new school. Looking ahead, the accounts for the year 2023/24 are likely to reflect the major part of the new school development phase with receipts again being mainly confined to regular rental payments and outgoings being the cost of the development which will be funded to a large extent by bank borrowing, pending receipt of proceeds from sale of the existing school sites.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

Income for the period under review was £687,193, principally from rental income. At the year end, the company had total funds of £9,074,229 of which £6.5m is accounted for by the two existing school sites. The company’s cash reserves, held by way of fixed term deposits with HSBC Bank, will be utilised to meet initial expenditure on the planned new school development.

The Charity’s Reserves Policy will be to maintain unrestricted funds to enable it to meet its short-term financial obligations. The Directors have approved budgets for the current and next few years in which available funds, including agreed borrowings from HSBC Bank will exceed committed annual expenditure. The company has no full-time employees or attendant commitments or liabilities.

Page 3

GREENACRE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

c. Current plans

HSBC Bank has recently agreed a bank facility which will support the planned development of the new school. The total cost of the development will be met from the company’s existing resources, which include the existing Shakespeare Road (formerly, Rushmoor) and Kimbolton Road (formerly, St Andrew’s) school sites, contracts for the sale of which have been agreed with third party developers, and a residual long term loan facility. Upon completion of the new school, the premises will be leased to Bedford Greenacre Independent School Limited and rental payments to the company will provide income from which the term loan will be serviced.

d. Principal risks and uncertainties

During the construction phase for the new school there will be a number of risks associated with the development; the Directors aim is that these risks will be limited by ensuring that its contracts are with companies adopting sound measures to ensure that risks are minimised and by taking appropriate insurance against such risks. In financial terms, the company has entered into a fixed price contract with Pellikaan Construction Limited for the development of the school and has employed consultants in a number of fields to aid its decision making. Currie & Brown, quantity surveyors, are acting as Project Managers for the development.

Financial risks centre on continued trading success by its tenant, BGIS; Trustees understand that the company has traded successfully during recent years despite the difficulties of the coronavirus pandemic and associated lock down periods. Directors maintain contact with the school’s management and understand that pupil numbers continue to grow in the expectation of occupying the new state-of-the-art school. The school has a very successful trading history and our trustees understand that budgets indicate future strong performance and security for meeting anticipated rental payments. On this basis, directors have confidence in its rental income being sufficient to meet agreed levels of loan repayments in the years ahead.

e. Future arrangements

The Directors anticipate that they will continue to meet the charitable objects of the Company for the foreseeable future. It is planned that, with the benefit of agreed bank funding, construction work on the Clapham Park site will be completed by December 2024 and ready for occupation by the school for the Spring Term 2025. Upon completion the existing sites will be vacated and the currently contracted sales will be completed, thus releasing funds which will reduce bank borrowing to a level which will be converted to a term loan facility, with agreed loan repayments which will be covered by rental income from the lease of the new school.

Structure, governance and management

a. Constitution

Greenacre Trust Limited is governed by its Articles of Association which now provide for the company to operate as a Development Education Trust. They also provide for the income and property of the company to be applied solely towards its objectives and no assets or funds shall be paid or distributed to members of the association.

Page 4

GREENACRE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management (continued)

b. Organisational structure and decision-making policies

The Directors of the Company who are also Trustees of the charity, are responsible for the overall management, performance and control of the company. They meet regularly, at least twice annually and as frequently as required to progress the business of the company. New directors will be appointed by the existing directors, ensuring that the necessary skills and experience are represented. New directors will be provided with comprehensive briefing on the company, its history and current aims, as well as attending appropriate training for new charity trustees.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Page 5

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Auditors

The auditors, Streets Audit LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

I R Flack Director and Secretary Date:

Page 6

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENACRE TRUST LIMITED

Opinion

We have audited the financial statements of Greenacre Trust Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve 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.

Page 7

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENACRE TRUST LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENACRE TRUST LIMITED (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 9

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENACRE TRUST LIMITED (CONTINUED)

To address the risk of fraud through management bias and override of controls, we:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Endersby (Senior Statutory Auditor)

for and on behalf of Streets Audit LLP Chartered Accountants Registered Auditors Potton House Wyboston Lakes Great North Road Wyboston Bedford MK44 3BZ

Date:

Page 10

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from:
Charitable activities
3
Other trading activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward as previously stated
Prior year adjustment
Total funds brought forward as restated
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
400,000
-
46,065
241,128
687,193
395,519
395,519
291,674
8,782,555
-
8,782,555
291,674
9,074,229		 Total
funds
2023
£
400,000
-
46,065
241,128
687,193
395,519
395,519
291,674
8,782,555
-
8,782,555
291,674
9,074,229		 Total
funds
2022
£
400,000
(6,264)
-
1,650
395,386
233,563
233,563
161,823
7,771,896
848,836
8,620,732
161,823
8,782,555

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 26 form part of these financial statements.

Page 11

GREENACRE TRUST LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00856842

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
15
Unrestricted funds
15
Total funds		 10,707
2,162,247
2,172,954
(121,054)		 2023
£
7,022,329
2,051,900
9,074,229
9,074,229
-
9,074,229
9,074,229		 4,998
2,200,389
2,205,387
(28,315)		 2022
£
6,605,483
2,177,072
8,782,555
8,782,555
-
8,782,555
8,782,555

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

I R Flack Director Date:

The notes on pages 15 to 26 form part of these financial statements.

Page 12

GREENACRE TRUST LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00856842

CHARITY BALANCE SHEET AS AT 31 AUGUST 2023

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
15
Unrestricted funds
15
Total funds		 10,707
2,162,247
2,172,954
(121,054)		 2023
£
9,153,618
2,051,900
11,205,518
11,205,518
-
11,205,518
11,205,518		 4,998
2,200,389
2,205,387
(28,315)		 2022
£
8,912,765
2,177,072
11,089,837
11,089,837
-
11,089,837
11,089,837

The Charity's net movement in funds for the year was £ 115,681 (2022 - £(14,170)) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

I R Flack Director Date:

The notes on pages 15 to 26 form part of these financial statements.

Page 13

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 15 to 26 form part of these financial statements		 2023
£
(172,845)
446,065
255,378
(566,740)
134,703
-
(38,142)
2,200,389
2,162,247		 2022
£
(405,855)
400,000
-
(63,805)
336,195
-
(69,660)
2,270,049
2,200,389

Page 14

GREENACRE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. General information

Greenacre Trust Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is 58-60 Shakespeare Road, Bedford, MK40 2DL.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Greenacre Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 15

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.9 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Page 16

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

3. Income from charitable activities

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Rental income 400,000 400,000 400,000
4. Income from other trading activities
Income from non charitable trading activities
Rushmoor School Shop income
5.
Investment income

Interest received		 Unrestricted
funds
2023
£
-
Unrestricted
funds
2023
£
46,065		 Total
funds
2023
£
-
Total
funds
2023
£
46,065		 Total
funds
2022
£
(6,264
Total
funds
2022
£
-

Page 17

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

6. Other incoming resources

Profit or loss on disposal of fixed assets
Access to land
7.
Analysis of expenditure on charitable activities
Summary by fund type
School Development
Operation of Rushmoor School
8.
Analysis of expenditure by activities
School Development
Operation of Rushmoor School		 Unrestricted
funds
2023
£
241,128
-
241,128
Unrestricted
funds
2023
£
395,519
-
395,519
Support
costs
2023
£
395,519
-
395,519		 Total
funds
2023
£
241,128
-
241,128
Total
2023
£
395,519
-
395,519
Total
funds
2023
£
395,519
-
395,519		 Total
funds
2022
£
-
1,650
1,650
Total
2022
£
97,919
135,644
233,563
Total
funds
2022
£
97,919
135,644
233,563

Page 18

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Professional fees
Repairs and renewals
Bank charges
Bank interest
Insurance
Governance costs
Total 2022		 School
Developme
nt
2023
£
135,644
244,667
2,590
318
-
1,100
11,200
395,519
233,563		 Operation
of
Rushmoor
School
2023
£
-
-
-
-
-
-
-
-
-		 Total
funds
2023
£
135,644
244,667
2,590
318
-
1,100
11,200
395,519
233,563		 Total
funds
2022
£
135,644
90,213
-
81
(375)
-
8,000
233,563

9. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 9,600 8,000

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 August 2023, no Trustee expenses have been incurred (2022 - £NIL) .

Page 19

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

11.
Tangible fixed assets
Group
Cost or valuation
At 1 September 2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022
Charity
Cost or valuation
At 1 September 2022
Additions
Disposals
At 31 August 2023		 Freehold
property
£
8,596,736
566,740
(14,250)
9,149,226
1,991,253
135,644
2,126,897
7,022,329
6,605,483
Freehold
property
£
11,080,011
566,740
(14,250)
11,632,501

Page 20

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

11. Tangible fixed assets (continued)

Charity (continued)

Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold
property
£
2,167,246
311,637
2,478,883
9,153,618
8,912,765

On 1 May 2021, the property used by St Andrew's School was transferred from St Andrew's School (Bedford) Limited to Greenacre Trust Limited. Greenacre Trust Limited recognised the asset at its fair value but, for group reporting purposes, the uplift in value will not be recognised until the property is sold to a third party. As a consequence, the value of assets for the group has a lower value than that reported by the charity.

As set out in note 16, a prior year adjustment was recognised in 2022 to reverse an impairment adjustment reported in the accounts for the year ended 31 August 2021.

Freehold property includes assets under the course of construction amounting to £3,485,682 (2022 £3,223,502).

12. Debtors

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Due within one year
Other debtors 10,707 4,998 10,707 4,998

Page 21

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

13. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income		 Group
2023
£
111,434
20
9,600
121,054		 Group
2022
£
6,120
5,195
17,000
28,315		 Charity
2023
£
111,434
20
9,600
121,054		 Charity
2022
£
6,120
5,195
17,000
28,315

14. Prior year adjustments

An impairment of £848,636 was recognised in the year ended 31 August 2021, as the sales value agreed for the disposal of certain property was assessed as being less than the historic cost of the assets concerned. The carrying values were re-assessed during 2022 and the impairment was deemed to be unnecessary, hence the values were restated by way of a prior year adjustment.

Page 22

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Statement of funds

Statement of funds - current year


Unrestricted funds
General Funds
Fixed asset reserve		 Balance at 1
September
2022
£
2,177,072
6,605,483
8,782,555		 Income
£
687,193
-
687,193		 Expenditure
£
(259,875)
(135,644)
(395,519)		 Transfers
in/out
£
(552,490)
552,490
-		 Balance at
31 August
2023
£
2,051,900
7,022,329
9,074,229

The General fund represents reserves which are available for the charity to use in the furtherance of any charitable objective.

The Fixed asset reserve represents the net book value of freehold property, which forms part of the general reserve. In addition to the reserves stated above, Greenacre Trust Limited recognised a fair value adjustment of £2,307,282 (2022 £2,307,282) in respect of freehold property transferred from St Andrew's School (Bedford) Limited.

Statement of funds - prior year

Unrestricted funds
General Funds
Fixed asset reserve		 As restated
Balance at
1 September
2021
£
1,943,410
6,677,322
8,620,732		 Income
£
395,386
-
395,386		 Expenditure
£
(97,919)
(135,644)
(233,563)		 Transfers
in/out
£
(63,805)
63,805
-		 Balance at
31 August
2022
£
2,177,072
6,605,483
8,782,555

Page 23

GREENACRE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

16. Summary of funds

Summary of funds - current year

Balance at 1 Balance at
September Transfers 31 August
2022 Income Expenditure in/out 2023
£ £ £ £ £
General funds 8,782,555 687,193 (395,519) - 9,074,229
Summary of funds - prior year
As restated
Balance at Balance at
1 September Transfers 31 August
2021 Income Expenditure in/out 2022
£ £ £ £ £
General funds 8,620,732 395,386 (233,563) - 8,782,555

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
7,022,329
Current assets
2,172,954
Creditors due within one year
(121,054)
Total
9,074,229		 Total
funds
2023
£
7,022,329
2,172,954
(121,054)
9,074,229

Page 24

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
6,605,483
2,205,387
(28,315)
8,782,555		 Total
funds
2022
£
6,605,483
2,205,387
(28,315)
8,782,555

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss/(profit) on the sale of fixed assets
Increase in debtors
Increase/(decrease) in creditors
Net cash used in operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2023
£
291,674
135,644
(446,065)
(241,128)
(5,709)
92,739
(172,845)
Group
2023
£
2,162,247
2,162,247		 Group
2022
£
161,823
135,644
(400,000)
-
(4,998)
(298,324)
(405,855)
Group
2022
£
2,200,389
2,200,389

Page 25

(A Company Limited by Guarantee)

GREENACRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2022
£
2,200,389
2,200,389		 Cash flows
At 31
August 2023
£
£
(38,142)
2,162,247
(38,142)
2,162,247		 Cash flows
At 31
August 2023
£
£
(38,142)
2,162,247
(38,142)
2,162,247
2,162,247
21. Capital commitments
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Contracted for but not provided in these
financial statements
Purchase, construction or development of
investment property 23,764,699 - 23,764,699 -

22. Related party transactions

The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 August 2023.

Page 26