2021-07-31-accounts - Wine And Spirit Education Trust

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CONTENTS			Page
Reference and Administration		Details
Trustees' Report			2-7
Independent Auditors'	Report		8-10
Statement ofFinancial	Activities
Consolidated Balance	Sheet		12
Charity Balance Sheet			13
Statement ofCash Flows			14-15
Notes to the Financial	Statements		16-31

				Unrestricted	Unrestricted	funds	Restricted	Total	Total
				General		Designated	funds	2021	2020
			Note
INCOME FROM:
Charitable activities:
Courses, examination	fees and
Teaching aids			3	14,526,871				14,526,871	13,262,917
Donations and legacies				668,688		4,590	6,000	679,278	252,099
Investments				24,269				24,269	14,327
Other trading activities			4	912,523				912,523	1,085,450
Government grant				15,412				15,412	255,267
Total income				16,147,763		4,590	6000	16 158353	14,870,059
EXPENDITURE ON:
Raising funds
Charitable activities
Costs of Generating		Voluntary		116,705				116,705	57,735
Income
Courses, examination	fees	and		15,602,751		19,520	3,850	15,626,121	14,570,995
teaching aids
Total expenditure			5	15,719,456		19,520	3,850	15,742,826	14,628,730
Net income I(expenditure)
before transfers				428,307		(14,930)	2,150	415,527	241,329
Transfers				(340,367)		346,089	(5,722)
Net income				87,941		331,159	(3,572)	415,527	241,329
Translation adjustment				(74,259)				(74,259)
Net movement in funds				13,682		331,159	(3,572)	341,268	241,329
Fund balances brought	forward			866,729	15,449,241		222,262	16,538,232	16,296,903
at 1 August 2020
Fund balance carried	forward
At 31July 2021				880,410	15,780,400		218,690	16,879,500	16,538,232

					2020
		Note
FIXEDASSETS
Tangible assets				18,741,211		18,291,642
Investment property				15,085,500		15,085,500
CURRENT ASSETS
Stocks		10	548,817		729,499
Debtors		11	2,259,641		2,017,852
Cash and bank balances		12	2,736,971		2,743,477
			5,545,429		5,490,828
CREDITORS: amounts	falling
due within one year		13	4,333,448		3,489,480
NET CURRENT ASSETS				1/11,981		2,001,349
TOTAL ASSETSLESS	CURRENT
LIABILITIES				35,038,692		33,378,491
CREDITORS: amounts	falling due
after more than one year		15		18,159,191		1S,840,259
NKT ASSETS				16,879,500		16,538,231
FUNDS
Restricted funds		17		218,690		222,262
Unrestricted funds:
Designated funds		17		15,780,400		15,449,241
General funds		17		880,410		866,728
TOTAL FUNDS				16,879,500		16,538,231

				2021	2020
		Note
FIXEDASSETS
Tangible assets				18,717,864		18,243,072
Investment property				15,085,500		15,085,500
CURRENT ASSETS
Stocks		10	548,817		729,499
Debtors		11	1,847,534		1,904,S24
Cash and bank balances		12	2,135,447		2,333,538
			4,531,619		4,967,861
CREDITORS: amounts	falling
due within one year		13	4,019,652		3,595,179
NET CURRENT ASSETS				511,967		1,372,682
TOTAL ASSETSLESS	CURRENT
LIABILITIES				34,315,331		34,701,254
CREDITORS: amounts	falling due
after more than one year		15		(18,159,191)		(18,706,589)
NET ASSETS				16,156,140		15,994,664
CHARITY FUNDS
Restricted funds		17		218,690		222,262
Unrestricted funds:
Designated funds		17		15,780,400		15,449,242
General funds		17		157,050		323,161
TOTAL CHARITY FUNDS				16,156,140		15,994,664

					Note		2021	2020	2020
	Net cash inflow from operations:
							1,715,611		1,708,041
	Net cash provided by operations				A
	Cash flows from investing	activities:
	Bank interest and other investment income					24,269		14,327
	Finance and other costs					(471,007)		(518,885)
	Payments to acquire tangible	fixed assets				(1,059,276)		(1,680,108)
	Net cash provided by/(used	in) investing		activities			(1,506,014)		(2,184,666)
	Cash flows from financing	activities:
	Purchase ofinvestment property
	Bank loan repayments					(216,102)		(559,243)
	Bank loan drawdown
	Net cash provided by/(used	in) financing		activities			(216,102)		(559,243)
	Change in cash and cash equivalents		in the reporting				(6,505)		(1,035,868)
	period
	Net cash and cash equivalents	at beginning		ofperiod	B		2,743,476		3,779,344
	Net cash and cash equivalents	at end ofperiod			B		2,736,971		2,743,476
A.	RECONCILIATION OF NET MOVEMENT IN				FUNDS	TO		2021	2020
	NET CASH INFLOW FROM OPERATIONS
	Net movement in funds							341,268	241,328
	Depreciation							609,707	574,219
	Bank interest and other investment		income					(24,269)	(14,327)
	Reduction in value ofinterest rate swap
	Finance and other costs							471,007	518,885
	Increase in stocks							180,682	234,163
	Increase in debtors							(241,789)	341,693
	Deposit for new building
	Increase in creditors							379,004	(187,920)
	Net cash inflow from operations							1,715,611	1,708,041

ANALYSIS OF CHANGES IN CASH AND	At			At
CASH EQUIVALENTS	1August		Other	31July
	2020	Cashflows	Changes	2021
Cash and cash equivalents	1,170,152	164,524		1,334,676
Deposit accounts	1,573,324	(171,029)		1,402,295
	2,743,476	(6,505)		2,736,971
Borrowings
Debts due within one year	756,433		336,361	1,092,794
Debts due after one year	18,514,253		(552,465)	17,962,355
	19,271,253		(216,104)	19,055,149
Total	(16,527,777)	(6,505)	216,104	(16,318,178)

3.	INCOME FROM CHARITABLE ACTIVITIES	INCOME FROM CHARITABLE ACTIVITIES			2021	2020
					Total	Total
	Courses				3,986,928	4,106,732
	Examinations				6,950,726	5,323,671
	Teaching Aids				3,589,217	3,832,514
					14,526,871	13,262,917
	All income from charitable activities in	2020 and 2021 was unrestricted.
4.	OTHER TRADING ACTIVITIES				2021	2020
					Total	Total
	Rent and service charge income				876,458	1,029,656
	Other				36,064	55,794
					912,523	1,085,450
	All income from other trading activities	in 2020 and 2021 was unrestricted.
5.	ANALYSIS OF TOTAL EXPENDITURE		Staff	Other		2021
			Costs	costs	Depreciation	Total
						f.
	Cost ofraising funds
	Fundraising		61,693	50,487	4,525	116,705
	Charitable activities
	Courses		3,361,599	2,758,027	246,554	6,366,181
	Examinations		2,997,545	2,459,338	219,854	5,676,737
	Teaching aids		1,336,237	1,096,810	98,050	2,531,697
	Governance costs		555,237	455,545	40,724	1,050,342
			8,251,219	6,769,720	605,182	15,626,121
	Total expenditure		8,312,912	6,820,207	609,707	15,742,826
	ANALYSIS OFTOTAL EXPENDITURE		Staff	Other		2020
	COMPARATIVE FOR 2020		costs	costs	Depreciation	Total
			K
	Cost ofraising funds
	Fundraising		40,325	11,939	5,470	57,735
	Charitable activities
	Courses		2,514,572	2,518,331	240,539	5,273,442
	Examinations		2,672,233	2,217,223	213,336	5,102,792
	Teaching aids		1,714,592	1,724,479	109,403	3,548,475
	Governance costs		477,058	163,759	5,470	646,287
			7,378,455	6,623,792	568,748	14,570,995
	Total expenditure		7,418,780	6,635,731	574,219	14,628,730

ANALYS	IS OF TOTA	L EXPEN	DITURE (continued)
				2021	2020
Other costs include:
Bank loan	interest			471,007	518,885
Auditors'	remuneration	-UK		35,856	21,700
Auditors'	remuneration	—Hong Kong		2,288	1,764
Auditors'	renumeration	-US		13,973	18,235
Legal, professional and		consultancy	fees	436 550	120 486
				959,675	681,070

STAFF COSTS	2021	2020
Salaries	6,320,769	5,914,014
Social security costs	606,391	497,267
Pension contributions	489,856	464,699
Other staff costs	903,776	512,657
Redundancy costs	60,198	30,144
	8,380,990	7,418,780

he averag as:	e nu	mber ofemployees (other than the trustees who	are on apart-time basis and who are not remu	nerated)
			2021	2020
			Number	Number
Management		and administration	35	34
Training	and	education	111	101
			146	135

The number ofhigher	paid employees	was:
Taxable emoluments	band:
f60,000 - f70,000
f70,001 - f80,000
f80,000 - f90,000
f90,001 - f100,000
f.100,001 - f110,000
f.110,001 - f120,000
f150,001-f160,000
f230,001 - f240,000

TANGIBLE FIXEDASSETS	Freehold land	Educational	Capital Project	Capital Project
GROUP	&buildings	&office			Total
Cost
At 1 August 2020	19,224,047	931,417	1,157,350		21,312,814
Additions	712,973	34,878	311,425		1,059,276
Disposals		(39,158)			(39,158)
At 31 July 2021	19,937,021	927,137	1,468,775		22,332,932
Depreciation
At 1 August 2020	1,631,947	806,080	583,145		3,021,172
Charge for year	450,384	64,776	94,547		609,708
Dispo sais		(39,158)			(39,158)
At 31 July 2021	2,082,332	831,698	677,692		3,591,721
Net Book Value
At 31 July 2021	17,854,689	95,439	791,083		18,741,211
At 31 July 2020	17,592,100	125,337	574,205		18,291,642
TANGIBLE FIXEDASSETS	Freehold land	Educational	Computers	&
CHARITY	&buildings	&office	ITSystems		Total
Cost
At 1 August 2020	19,224,047	812,809	1,154,109		21,190,966
Additions	712,973	37,766	311,425		1,062,164
Dispo sais		(39,158)			(39,158)
At 31 July 2021	19,937,021	811,417	1,465,534		22,213,972
Depreciation
At 1 August 2020	1,631,947	735,016	580,931		2,947,894
Charge for year	450,384	42,951	94,037		587,372
Dispo sais		(39,158)
At 31 July 2021	2,082,332	738,809	674,967		3,535,266
Net Book Value
At 31 July 2021	17,854,689	72,608	790,567		18,717,864
At 31 July 2020	17,592,100	77,793	573,179		18,243,072

VESTMENT PROPERTY
	2021	2020
Valuation
At 1 August 2020	15,085,500	25,158,760
Transfer to Fixed Assets		(10,073,260)
At 31July 2021	15,085,500	15,085,500
Historic cost
At 31July 2021	25,158,760	25,158,760
At 31July 2020	25,158,760	25,158,760

Its results for the year are	Its results for the year are	summarised	in the period was unrestricted:	in the period was unrestricted:
			2021	2020
Grant from parent charity			308,678	730,002
Expenditure on charitable		activities	(336,405)	(765,942)
Net income			(27,727)	(35,940)
Fund balances brought	forward		126,350	162,289
Fund balances carried	forward		105,580	126,350
WSETAmericas			2021	2020
Grant from parent charity				889,281
Expenditure on charitable		activities	568,365	(855,610)
Net income			568,365	33,761
Translation adjustment			15,745
Fund balances brought	forward		33,671
Fund balances carried	forward		617,781	33,671

STOCKS	Group	Group	Charity	Charity
	2021	2020	2021	2020
Stocks consist of:
Wines and spirits	190,335	226,818	190,335	226,818
Books and other course materials	399,442	443,805	399,442	443,805
Other materials	9,021	58,876	9,021	58,876
Stock Provision	(50,000)		(50,000)
	548,817	729,499	548,817	729,499

he value ofst	ock released to costofsale	s in the year was f73	6,102 (2020:f928,3	11).
DEBTORS		Group	Group	Charity	Charity
		2021	2020	2021	2020
Trade debtors		1,610,322	1,284,203	1,255,981	1,284,203
Prepayments	and accrued income	574,981	123,043	562,827	10,015
Other debtors		42,081	450,998	37,426	450,998
Service charge		41,136	159,608		159,608
StaffLoans		(8,879)		(8,879)
		2,259,641	2,017,852	1,847,354	2,017,852


CREDITORS: amounts	falling due within one year
		Group	Group	Charity	Charity
		2021	2020	2021	2020
Course fees received in advance (see		927,819	1,394,347	927,819	1,394,347
note 12)
Trade creditors		1,050,362	506,886	948,321	506,886
Accruals and other creditors		1,168,418	515,022	961,118	620,721
Bank loan (secured —see	note 15)	1,092,794	756,443	1,092,794	756,433
APP fees in advance		8,992	113,867	8,992	113,867
Rental income in advance		68,318	70,221	68,318	70,221
Other creditors		16,745	132,704	12,290	132,704
		4,333,448	3,489,480	4,019,652	3,595,179

FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS			Group	Charity	Charity
			Group	Group	Charity	Charity
			2021	2020	2021	2020
Financial assets measured at	amortised cost		4,229,991	4,228,347	4,229,991	4,228,347
Financial liabilities measured	at amortised	cost	(21,295,034)	(21,681,047)	(21,295,034)	(21,681,047)

GROUP				Balance at			Transfers	Balance at
				1August			and	31July
				2020	Income	Expenditure	Gains/Iosse	2021
Restricted funds
Peter Hampson Memorial			Fund	13,928			230	14,158
Worshipful Co.Distillers					6,000	3,850		2, 150
Building Donations				208,334			(5,952)	202,382
				222,262	6,000	3,850	(5,722)	218,690
Unrestricted funds	- designated
Designated
Information technology				400,000			(200,000)	200,000
Business development		fund		1,251,229			253,839	1,505,068
Bursary Fund				50,000	4,590	(19,520)	14,930	50,000
Open Access Fund				50,000				50,000
US and Hong Kong	Office			500,000			(400,000)	100,000
Property reserve				13,198,013			677,320	13,875,333
				15,449,242	4,590	(19,520)	346,089	15,780,400
Unrestricted funds	- general			866,728	16,147,763	(15,719,456)	(340,367)	880,410
Total unrestricted	funds			16,315,970	16,152,353	(15,738,976)	5,722	16,660,810
Total funds				16,538,232	16,158,353	(15,735,126)		16,879,500

ANALYSIS	ANALYSIS	OF NET ASSETSBETWEEN		Net current	Long term
FUNDS			Fixed assets	assets	liabilities	Total
			2021	2021	2021	2021
Group
Restricted	funds		202,382	16,308		218,690
Unrestricted		fund	33,624,329	1,195,673	(18,159,191)	16,660,810
			33,826,711	1,211,981	(18,159,191)	16,879,500
Charity
Restricted	funds		202,382	16,308		218,690
Unrestricted		funds	33,600,982	495,659	(18,159,191)	15,937,450
			33,803,364	511,967	(18,159,191)	16,156,140
COMPARATIVE ANALYSIS OFNET				Net current	Long term
ASSETS	BETWEEN FUNDS		Fixed assets	assets	liabilities	Total
			2020	2020	2020	2020
Group
Restricted	funds		208,334	13,928		222,262
Unrestricted		fund	33,168,808	1,987,421	(18,840,259)	16,315,970
			33,377,142	2,001,349	(18,840,259)	16,538,232
Charity
Restricted	funds		11,038	211,224		222,262
Unrestricted		funds	33,317,534	1,161,458	(18,706,589)	15,772,403
			33,328,572	1,372,682	(18,706,589)	15,994,665

				2021	2020
Due	in	less	than one year	802,184	898,656
Due	in	two	to five years	2,424,246	2,267,744
				3,226,431	3,166,400

				Unrestricted	Unrestricted	funds	Restricted	Total
				General		Designated	funds	2020
			Note				K
INCOME FROM:
Charitable activities:
Courses, examination		fees and		13,262,917				13,262,917
Teaching aids
Donations and legacies				245,459		6,640		252,099
Investments				14,237				14,327
Other trading activities			4	1,085,450				1,085,450
Government Grant				255,567				255,567
Total income				14,863,420		6,640		14,870,060
EXPENDITURE ON:
Raising funds				57,735				57,735
Charitable activities
Courses, examination	fees and			14,471,390		99,606		14,570,996
teaching aids
Total expenditure			5	14,529,125		99,606		14,628,731
Net income / (expenditure)
before transfers				334,295		(92,966)		241,329
Transfers				(567,954)		574,758	(6,804)
Net income				(233,659)		481,792	(6,804)	241,329
Remeasurement gains	/	(losses) on
interest rate swaps
Net movement in funds				(233,659)		481,792	(6,804)	241,239
Fund balances brought		forward
at 1 September 2019				1,100,388	14,967,449		229,066	16,296,903
Fund balance carried		forward
At 31July 2020				866,729	15,449,241		222,262	16,538,232

FUNDS GROUP				Balance at			Transfers	Balance at
				1August			and	31July
				2019	Income	Expenditure	Gains/losses	2020
Restricted funds
Peter Hampson Memorial			Fund	14,779			(851)	13,928
Building Donations	Fund			214,287			(5,953)	208,334
				229,066			(6,804)	222,262
Unrestricted funds	- designated
Designated
Information technology				400,000				400,000
Business development		fund		2,266, 164			(1,014,935)	1,251,229
Bursary Fund Open Access Fund				50,000 50,000	6,640	(13,349) (83,257)	9,709 83,257	50,000 50,000
US and Hong Kong	Office			500,000				500,000
Property reserve							1,496,727	13,198,012
				14,967,449	6,640	(99,606)	574,758	15,449,241
Unrestricted funds	- general			1,100,388	14,863,420	(14,529,125)	(567,954)	866,729
Total unrestricted	funds			16,067,837	14,870,060	(14,628,731)	6,804	16,315,970
Total funds				16,926,903	14,870,060	(14,628,731)		16,538,232
FUNDS CHARITY				Balance at			Transfers	Balance at
				1August			and	31July
				2019	Income	Expenditure	Gains/losses	2020
				K
Restricted funds
Peter Hampson Memorial			Fund	14,779			(851)	13,928
Building Donations	Fund			214,287			(5,953)	208,334
				229,066			(6,804)	222,262
Unrestricted funds	- designated
Information technology				400,000				400,000
Business development		fund		2,266,164			(1,014,935)	1,251,229
Bursary Fund				50,000	6,640	(16,349)	9,709	50,000
Open Access Fund US and Hong Kong	Office			50,000 500,000		(83,257)	83,257	50,000 500,000
Property reserve				11,701,285			1,496,727	13,198,012
				14,967,449	6,640	(99,606)	574,758	15,449,241
Unrestricted funds	-	general		938,099	14,482,142	(14,529,125)	567,954	323,162
Total unrestricted	funds			15,905,548	14,488,782	(14,628,731)	6,804	15,772,403
Total funds				16,134,614	14,488,782	(14,638,731)	0	15,994,665