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2022-12-31-accounts

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THE REED EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

Report and Financial Statements

For the Year Ended 31 December 2022

Charity number: 328347

Company number: 02420409

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THE REED EDUCATIONAL TRUST LIMITED

Page
TRUSTEES’ ANNUAL REPORT 1
(INCORPORATING THE DIRECTORS’ REPORT)
AUDITORS REPORT 8
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 11
CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEETS 12
CONSOLIDATED STATEMENT OF CASHFLOWS 13
NOTES TO THE FINANCIAL STATEMENTS 14

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THE REED EDUCATIONAL TRUST TRUSTEES’ ANNUAL REPORT

The Trustees who are also directors of the charity for the purpose of the Companies Act 2006, present their report together with the financial statements of the Charitable Company for the year ended 31 December 2022. The Trustees have adopted the provisions of the Statement of Recommended Practise (SORP) ‘Accounting and Reporting by Charities’ effective from January 201 9 which are also prepared to meet the requirements for a directors’ report a nd accounts for Companies Act purposes.

Reference and Administrative Details

INCORPORATED in England on 6 September 1989 COMPANY NUMBER 02420409 REGISTERED CHARITY NUMBER 328347 REGISTERED OFFICE The Manor Little Compton Moreton in Marsh Gloucestershire GL56 0RZ

Directors and Trustees

The directors of the charitable company (the charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and since the year end were as follows:

Sir Alec Reed CBE FCMA Peter Green Asad Noorani FCA James Reed MA MBA FCIPD Stella Shaw SECRETARY Stella Shaw OPERATIONS MANAGER Stella Shaw AUDITORS Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX BANKERS HSBC City of London Branch 60 Queen Victoria Street London EC4N 4TR

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THE REED EDUCATIONAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (continued)

Structure, Governance and Management

Governing Document

The company is a charitable company, limited by guarantee and was set up on 6 September 1989. It is governed by a Memorandum and Articles of Association.

Appointment of Trustees

Trustees are elected by the Trust at the Annual General Meeting of the Trust to serve for a period of three years or less and at least one Trustee retires at each Annual General Meeting. A retiring Trustee may be reappointed.

Trustee induction

New Trustees are briefed on their obligations as Trustees, the structure and administration, plans and performance of the charity, and relevant current issues. They are provided with information on all the charity’s educational courses and are invited to attend any of the lectures. They receive a tour of the Manor and accommodation properties and are introduced to employees. Trustees are encouraged to attend external training courses pertinent to their role.

Organisation

The Board of Trustees, which governs the charity, consist of between three and eleven persons. The Board meets bi-annually and delegates authority to the Operations Manager for the day-to-day Management of the charity.

There were on average over the year 22 employees (2021: 18).

Related parties

The parent company operates from premises rented from The Reed Foundation.

There are common Directors and Trustees in both Reed Global Limited and the Charitable Company, The Reed Educational Trust Limited, including Sir Alec Reed and James Reed who have material interest in Reed Global Limited. The Subsidiary company trades with Reed Global Limited and its subsidiaries on a normal trading basis.

Risk Management

The Trustees regularly identify and review the major risks to which the charity is exposed. They ensure that the appropriate systems are in place to manage and mitigate those risks.

In addition, risk assessments are reviewed annually for all residential properties.

Some staff members are trained in the IOSH Managing Safely qualification and British Red Cross First Aid training, Mental Health First Aider. Staff are also trained in Fire Awareness.

A Safeguarding team consist of a Safeguarding Team Leader and 3 trained Designated Safeguarding Officers.

Objectives and activities

The objectives of the charity are:

To promote and provide for the advancement of education in accountancy or otherwise for the public benefit (whether in the United Kingdom or elsewhere) and in connection therewith to conduct, carry on, acquire and develop in the United Kingdom or elsewhere any college or school of accountancy or otherwise for the education of the members of the public (whether in the United Kingdom or elsewhere).

The main objectives for the year are the promotion and advancement of education by the provision of high-quality accountancy, financial services, and co-member development courses and to donate funds to educational projects that help those in poverty and those who cannot afford educational fees.

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THE REED EDUCATIONAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (continued)

Objectives and activities (continued)

The charity achieves its objectives by:

All accountancy and financial service courses at the Business School are accredited by the relevant professional body, which include:

The comprehensive range of qualifications offered in the year comprised:

Public Benefit

The main objective of the Reed Educational Trust is to promote and provide for the advancement of education in accountancy or otherwise for the public benefit (whether in the UK or elsewhere). The Trust’s primary charitable activity is the provision of high quality education to accountancy & finance students at Reed Business School as discussed above.

The Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to the supplementary guidance on the advancement of education and fee-charging.

In order to ensure that those who cannot afford fees and those in poverty are not excluded from the opportunity to benefit from education, the Trust has donated a proportion of its income to various educational charities and, in 2022, continued a bursary scheme to assist Charity employees who attend accountancy courses at Reed Business School.

It is the intention that this will be more widely promoted to the Charity sector so we can offer support to Charities who are facing huge funding challenges as a direct result of the impact of the COVID-19 pandemic. The bursary scheme includes awards to individuals embarking on an accountancy career via professional tuition courses at Reed Business School. These donations benefit the public in many different ways, offering educational opportunities to a variety of groups, both in the UK and overseas, mainly through the diverse activities of different charities. These donations will provide educational benefit to those who are in poverty or restricted by the ability to pay.

Bursaries to charities
2022
2021		 £
1,608
-

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THE REED EDUCATIONAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (continued)

Public Benefit (continued)

During 2022, Donations were donated, in line with the Trust’s educational objectives, via the Big Give Christmas Challenge organisation and the gardens of The Manor were opened via the NGS.

Other donations to charities:
Big Give Christmas Challenge 2022
Donations were made to Raleigh International Trust, Open University, Royal Welsh college of
Music and Drama
NGS Open Gardens
Total donations to charities:
2022
2021*		 £
20,000
226
20,226
21,097

Fundraising activities

The Charitable Company has registered with the fundraising regulator. The aim of the regulator is to ensure that fundraising is respectful, honest, open and accountable to the public.

All fundraising activities are directly managed by Charitable Company staff. We do not engage third parties to raise funds on our behalf. We are mindful that no fundraising should be unreasonably persistent or apply undue pressure on anyone or intrude on anyone’s privacy.

The Charitable Company receives the majority of its funding from the Education and Skills Funding Agency.

Achievements and Performance

Since its foundation over 50 years ago, Reed Business School has nurtured the developing careers of thousands of student professionals. Reed Business School continues to be the only professional examination training provider to openly and transparently publish results. Pass rates continue to excel with the following notable achievements:

Pass-Rates Overview

ICAEW results have continued to compare favourably with the national first time pass rates at Professional and Advanced Levels. Totalling all first-time sittings Reed Business School Professional Level courses achieved a pass rate of 84.3% compared to the national pass rate of 79.7%. Advanced Level courses achieved 87.0% compared to the national of 86.6%.

2022 Advanced Annual International Annual Order of Merit Prize Winners

Second place and the Deloitte prize: Lily Gammon, Apprentice, Francis Clark LLP

ACCA results in 2022 were again substantially higher than the average worldwide pass rates of 44.9% over all papers, with the total of all Reed Business School sittings achieving 83.1%; including 2 papers achieving 100% in both Jun-22 and Dec-22.

During the academic year of 21/22 we had a total of 290 apprentices on-programme, including 121 new starters.

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THE REED EDUCATIONAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (continued)

Delegate Day Overview

Pay Policy

The directors consider the board of directors, who are the Trust’s Trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All directors give their time freely and no director received remuneration in the year for that post. Details of directors’ expenses and related party transactions are disclosed in notes 6 and 18 of these financial statements. The pay of the staff is reviewed annually and normally increased in accordance with inflation.

Financial Review

The end of year Total Income increased by 11.9% to £2,307,699 (2021: £2,061,665) and Total Funds were considered high enough to make charitable donations of £28,487 (2021: £21,097). Income from charitable activities of course and accommodation provision increased by 10.5% to £2,234,915 (2021: £2,021,732), income from hire of facilities to other course providers increased by 184.7% to £62,047 (2021: £21,797) which is in line with 2020.

Total expenditure has also increased by 21.3% to £2,316,201 (2021: £1,909,615); included in these figures are the charitable donations made in the year £28,487 (2021: £21,097) given through Big Give donations to Educational Charities and bursaries. The cost of the main charitable activities of £2,001,970 increased by 9.6% over last year (2021: £1,826,479). Expenditure relating to the hire of facilities to other course providers £285,939 (2021: £62,039) increased by approximately 360.9%.

Principle income is received as course income by Reed Business School and the majority is expended on the provision of educational courses. A portion of its profits may be covenanted to Reed Educational Trust each year.

Expenditure is mainly on charitable activities, such as the provision of courses and accommodation. The cost of hiring facilities to other course providers is largely residential, building and staff costs.

Investment Policy

Aside from the grants and expenditure incurred on an ongoing basis to support the regular work of the Trust, any surplus funds that may become available are invested in the long term lease of property or freehold property that can be utilised to further support the work of the trust.

Reserves Policy and Going Concern

The Charity’s funds at the end of 20 22 were £1,953,864 (2021: £1,959,243). Of this total amount, £613,910 (2021: £589,294) are tangible assets in the form of properties used for residential facilities which are integral to the business providing accommodation facilities for its residential training courses.

The Trustees agreed to donate £20,000 to the 2022 Big Give Christmas Challenge which will be distributed to a range of applicable charities.

The Trustees agreed a reserves policy to maintain a level of unrestricted reserves to cover core expenditure which would allow the charity to carry on its activity in the event of financial difficulties.

Based on this the Trustees agreed to hold sufficient unrestricted funds to cover the annual expenditure within the Trust based upon the latest financial statements. It was also agreed the trading subsidiary would hold reserves funds equivalent to 6 months overheads based upon the latest financial statements.

The trust owns four properties providing residential facilities supporting the charitable objectives of providing residential training courses to promote and advance professional education and Co-Member development.

Plans for future periods

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THE REED EDUCATIONAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (continued)

Trustees’ responsibilities in relation to the financial statements

The Trustees (who are the directors of Reed Educational Trust Limited for the purpose of company law) are responsible for preparing the Report of the Trustees 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 the financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and Group for that period.

In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Charitable C ompany’s and Group’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and Group 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 Charitable Company and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company ’s website . Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

In so far the Trustees are aware of:

Auditors

Auditors will be proposed for appointment in accordance with Section 487 of the Companies Act 2006.

22/9/2023

Approved by order of the board of T rustees on …………………… and signed on its behalf by:

………………………………….

Peter Green Trustee

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE REED EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of The Reed Educational Trust Limited (the Charitable Company) and its subsidiaries (the Group) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and the related noted 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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, 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 director's 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s rep ort thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006

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

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE REED EDUCATIONAL TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the st atement of Trustees’ responsibilities set out in the Trustees’ annual report, the Trustees 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 auditor’s 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:

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and noncompliance with laws and regulations, our procedures included the following:

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE REED EDUCATIONAL TRUST LIMITED

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

22/09/2023 …………………………………. ………………………. Scott Lawrence FCA Date

Scott Lawrence FCA

(Senior Statutory Auditor)

For and on behalf of Hazlewoods LLP, Statutory Auditor Cheltenham

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THE REED EDUCATIONAL TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income and Endowments from
Charitable activities:
Provisions of courses and accommodation
Other trading activities
Hire of facilities to other course providers
Miscellaneous sales and other income
4
Investment income
Total Income & Endowments
Expenditure on
Charitable activities
Provision of courses and accommodation
Charitable donations
Other expenditure
Hire of facilities to other course providers
Total expenditure 3
Net incoming resources
Reconciliation of funds
Funds balances brought forward
Total funds carried forward at 31 December 2022		 Unrestricted
and Total
Funds
2022
£
2,234,915
62,047
8,051
2,686
2,307,699


1,998,652
28,487
285,939
2,313,078

(5,379)
1,959,243
1,953,864		 Unrestricted
and Total
Funds
2021
£
2,021,732
21,797
16,001

2,135
2,061,665
1,826,479
21,097
62,039
1,909,615
152,050
1,807,193
1,959,243

All income and expenditure has arisen from continuing activities.

The notes on pages 13 to 24 form part of these financial statements.

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THE REED EDUCATIONAL TRUST LIMITED CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEETS FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Fixed assets
Intangible assets
10
Tangible assets
11
Shares in group undertakings
12
Current assets
Stock
Debtors
13
Cash at bank and in hand
Creditors
Amounts falling due within one year
14
Net current assets
Creditors due more than one year
Provision for liabilities and charges
15
Net assets
Funds of the charity
Unrestricted income funds:
General funds
Total Charity funds		 Group
Charitable
2022
£
2021
£
2022
£
5,726
8,997
-
662,400
650,974
546,548
-
-
2
668,126
659,971
546,550
1,792
1,340
-
437,716
340,916
4,896
1,347,007
1,401,538
712,145
1,786,515
1,743,794
717,041
(422,932)
(376,492)
(10,934)
1,363,583
1,367,302
706,107
(65,311)

(52,178)
-
(12,534)

(15,852)
-
1,953,864
1,959,243
1,252,657
1,953,864
1,959,243
1,252,657
1,953,864
1,959,243
1,252,657		 Company
2021
£
-
585,217
2
585,219
-
9,489
748,281
757,767
(3,929)
753,838
-
-
1,339,057
1,339,057
1,339,057

The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

22/9/2023

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

………………………………….

Peter Green

The notes on pages 13 to 24 form part of these financial statements.

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THE REED EDUCATIONAL TRUST LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

0

Cash flows from operating activities
Cash generated from operations
Interest received
Tax paid
Net cash generated by operating activities
Cash flows used in investing activities
Purchase of Tangible Fixed Assets
Purchase of Intangible Fixed Assets
Net cash used in investing activities
Cash flows used in financing activities
Loan advances
Net cash used in financing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income/(expenditure) to net cash flow
from operating activities
Net income/(expense) for the reporting period (as per the
statement of financial activities) before taxation
Adjustments for:
Interest received
Depreciation and amortisation
(Profit) / loss on disposal
Tax (credit) / expense
(Increase) / decrease in Debtors
Increase in inventories
Increase/ (decrease) in Creditors
Net cash provided by operating activities		 Total
funds
2022
£
59,977
2,686
(32,361)
30,302
(85,907)
-
(85,907)
1,074
1,074
(54,531)
1,401,538
1,347,007
2022
£
(5,379)

(2,686)
77,753
-
(3,318)
(96,800)
(452)
90,859
59,977		 Total
funds
2021
£
103,396
2,135
-
105,531
(31,129)
(9,815)
(40,944)
-
-
64,587
1,336,951
1,401,538
2021
£
152,050
(2,135)
65,882
(1,250)
(26,029)
(26,916)
-
(58,206)
103,396

The Group has no debt and accordingly no net debt reconciliation is reported.

The notes on pages 13 to 24 form part of these financial statements.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Statutory Information

The Reed Educational Trust Limited is a charitable private company, limited by guarantee, registered in England and Wales. The Charitable Company’s registered number and registered office ad dress can be found on the Charitable Company information page.

In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The financial statements of the Group and Charitable Company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practise applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the Group operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Charitable Company and its subsidiary undertaking drawn up to 31 December 2022 on a line by line basis.

A subsidiary is an entity controlled by the Charitable Company. Control is achieved where the Charitable Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. Inter-company transactions and balances, between the Charitable Company and its subsidiaries, are eliminated in full. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Going concern

As disclosed in the Trustee’s Report, the longer term impact of Covid-19 pandemic has continued to have a significant impact on the Group. In assessing the going concern status of the Group and Charitable Company, the Trustees have given consideration to the cash on hand and available position of the Group at the date of approving the financial statements, prepared detailed cash flow forecasts and projections and applied stress test scenarios to those forecasts. The Trustees have also taken into consideration how the Group has adapted positively to the effect of Covid-19, including reviewing their ongoing provision of training.

After reviewing the Group's forecasts and projections, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group and Charitable Company therefore continues to adopt the going concern basis in preparing its financial statements.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2 Accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group ’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Turnover and income

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group ’s activities. Turnover is shown net of sales/value added tax , returns, rebates and discounts.

The Group recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the Group's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.

Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Software and website costs have been recognised and capitalised as the costs of the asset can be measured reliably and it is probable that future economic benefits that are directly attributable to the asset will flow to the Group.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2 Accounting policies (continued)

Amortisation

Amortisation is charged to the cost of providing courses and accommodation so as to write off the cost of assets over their estimated useful lives as follows:

Asset class Amortisation method and rate Software development and website costs 3 years straight line

Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation of fixed assets is calculated to write off their cost or valuation on a straight line basis over their estimated useful lives as follows:

Asset class Depreciation method and rate Freehold buildings 50 years Leasehold land and buildings 10 years Garden equipment 5 years (10 years prior to 2008) Fixtures and fittings 5 years (10 years prior to 2008)

Stocks

Stocks are valued at the lower of cost and net realised value, after making due allowance for obsolete and slow moving items.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the debtors.

Cash at bank and in hand

Cash at bank and cash 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelvemonths after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised where the Group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Provisions are normally recognised at their settlement amount.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2 Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Funds accounting

Unrestricted funds are those funds which the Trustees are free to use in accordance with charitable objects. Restricted funds are funds which are given for particular purposes specified by their donors.

Financial instruments

The Group only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Classification

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounte d at the financial asset’s original effective interest rate. For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3 Analysis of expenditure

Provision of courses and
accommodation
Charitable Donations
Hire of facilities to other course
Administrative / Managerial /
Financial expenses
External Audit
Legal & other professional services
Taxation
Total 2022
Total 2021		 Charitable
Activities
£
Charitable
Donations
£
Other
Activities
£
Total
2022
£
Total
2021
£
1,672,604
-
-
1,672,604
1,517,772
-
28,487
-
28,487
21,097
-
-
285,939
285,939
62,039
302,592
-
4,908
307,500
321,079
11,400
-
-
11,400
10,400
10,466
-
-
10,466
3,257
(3,318)
-
-
(3,318) (26,029)
1,993,744
28,487
290,847
2,313,078
1,909,615
1,821,258
21,097
67,260

4 Miscellaneous sales

Other operating income
Government grants		 2022
£
8,051
-
8,051		 2021
£
4,381
11,620
16,001

Government grants relate to grants receivable under the Coronavirus Job Retention Scheme.

5 Operating profit

2022 2021
£ £
Operating profit is stated after charging:
Auditors’remuneration 11,400 10,400
Amortisation of intangible fixed assets: owned assets 3,271 818
Depreciation of tangible fixed assets: owned assets 74,482 65,064

6 Trustees and directors

One of the Trustees received remuneration from the Group in the year 31 December 2022 (2021: one).

The Trustees have the power to appoint a paid member of staff as a trustee and duly appointed Stella Shaw in September 2014, who is a paid member of staff for the Group’s trading subsidiary. Remuneration was paid to Stella Shaw in respect of her role as Operations Manager of the trading subsidiary, not as payment for her trusteeship. No other remuneration, other benefit or reimbursement of trustee expenses was paid to Trustees for the year ended 31 December 2022 nor the year ended 31 December 2021.

2022 2021 £ £ Directors’ emoluments 47,301 45,660

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7 Staff costs

Staff costs
Wages and salaries
Social security costs (Employers NI)
Other pension costs
Redundancy costs		 2022
£
641,893
51,036
11,960
-
704,889		 2021
£
506,687
41,924
10,231
-
557,842

The average number of employees during the year was 22 (2021: 18).

No employees received employee benefits in excess of £60,000 during the year (2021 - none).

8 Taxation

All income of the Charitable Company falls within the exemptions afforded to corporate charities and charitable trusts by Sections 478 and 479 Corporation Tax Act 2010 and Sections 524 and 525 Income Tax Act 2007 and there is no corporation tax payable by the Charitable Company.

The subsidiary is not a charity and is subject to Corporation taxation.

Corporation Tax effective at 19% (2021: 19%)
UK corporation tax adjustment to prior periods
Deferred tax charge for the year
Deferred tax adjustment arising from changes in tax rates
Deferred tax adjustment to prior periods		 2022
£
-
-
(4,287)
-
969
(3,318)		 2021
£
32,361
(56,840)
3,049
3,073
(7,672)
(58,390)

9 Financial performance of the charity

The consolidated statement of financial activities includes the results of the Charity’s wholly owned subsidiary, Reed Business School Limited, whose activities are set out in Note 12.

As permitted by section 408 Companies Act 2006, the parent charitable company's statement of financial activities has not been included in these financial statements. Its deficit for the financial year was £86,400 (2021: surplus of £263,658).

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10
Intangible fixed assets
Group
Cost
1 January 2022 and 31 December 2022
Depreciation
1 January 2022
Charge for the year
31 December 2022
Net book amounts
31 December 2022
31 December 2021
The Charitable Company has no intangible fixed assets.		 Software
Costs
£
9,815
818
3,271
4,089
5,726
8,997

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11 Tangible fixed assets

Group
Cost
1 January 2022
Additions
Disposals
31 December 2022
Depreciation
1 January 2022
Elimination on disposal
Charge for the year
31 December 2022
Net book amounts
31 December 2022
31 December 2021		 Garden
Equipment
£
Fixtures and
Fittings
£
Short
Leasehold
Land and
Buildings
£
Freehold
Land and
Buildings
£
Total
£
12,581
638,534
472,031
824,174
1,947,320
-
10,099
75,808
-
85,907
-
(33,795)
-
-
(33,795)
12,581
614,838
547,839
824,174
1,999,432
12,581
576,853
424,289
282,622
1,296,345
-
23,290
27,936
23,256
74,482
-
(33,795)
-
-
(33,795)
12,581
566,348 452,225
23,256
1,337,032
-
48,490
95,614
518,296 662,400
-
61,681
47,742
541,552 650,975

Included within the net book value of land and buildings above is £518,296 (2021: £541,552) in respect of freehold land and buildings.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11 Tangible fixed assets (continued)

Charitable Company

Charitable Company
Cost
1 January 2022 and 31
December 2022
Depreciation
1 January 2022
Charge for the year
31 December 2022
Net book amounts
31 December 2022
31 December 2021		 Garden
Equipment
£
Fixtures and
Fittings
£
Short
Leasehold
Land and
Buildings
£
Freehold
Land and
Buildings
£
Total
£
12,581
45,525
154,132
824,174
1,036,412
12,581
45,525
110,466
282,622
451,194
-
-
15,414
23,256
38,670
12,581
45,525 125,880
305,878
489,864
-
- 28,252
518,296
546,548
-
-
43,666
541,552
585,218

Included within the net book value of land and buildings above is £518,296 (2021: £541,552) in respect of freehold land and buildings.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12

Trading subsidiary

The trading subsidiary Reed Business School Limited (company number: 02949665), which is incorporated in the United Kingdom and as the same registered office as the Charitable Company, runs the educational college and all commercial trading activities. The subsidiary may covenant a proportion of its profits after taxation to the Charitable Company. The Charitable Company owns the entire share capital of 2 ordinary shares of £1 each.

A summary of the trading results is shown below: 2022 2022 2021
£ £
Turnover 2,296,962 2,043,529
Cost of sales and administrative costs (2,228,110) (1,867,915)
Other operating income 8,851 16,469
Taxation 3,318 26,029
Donation paid to parent charity, recognised as a distribution - (329,915)
Net profit retained in subsidiary 81,021 (111,803)
The assets and liabilities were:
Fixed assets 121,578 74,754
Current assets 1,069,474 986,027
Current liabilities (374,223) (372,563)
Non-current liabilities (65,311) (52,178)
Provisions (12,534) (15,852)
Aggregate share capital and reserves 735,666 620,188
13 Debtors
Group Charitable Company
Amounts falling due within one year 2022
£		 2021
£		 2022
£		 2021
£
Trade debtors 145,635 80,256 - -
Other debtors 224,916 5,653 1,200 5,653
Prepayments and accrued income 67,165 255,007 3,696 3,833
432,820 338,824 4,896 9,489
14 Creditors
Group Charitable Company
Amounts falling due within one year 2022
£		 2021
£		 2022
£		 2021
£
Loans and borrowings 1,074 - -
Trade creditors 179,175 186,998 8,633
1,929
Taxation - 32,361 - -
Accruals and deferred income 192,562 119,875 2,301 2,000
VAT 24,855 20,804 - -
Payroll liabilities 17,754 12,802 - -
Other creditors 7,512 3,652 - -
422,932 376,492 10,934 3,929
Amounts falling after one year
Deferred income 65,311 52,178 - -

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14 Creditors (continued)

Deferred income relates to the apprenticeship funding received from the ESFA and is topped up by employers when necessary. The balance of deferred income has moved in the year as follows:

Deferred income reconciliation
Balance at 1 January
Amount released in year
Amount deferred in year
Balance at 31 December		 Group
Charitable Company
2022
£
2021
£
2022
£
2021
£
100,794
128,594
-
-
(100,794)
(128,594)
-
-
152,475
100,794
-
-
152,475
100,794
-
-

15 Provision for liabilities and charges

1 January 2022
Decrease in provision in year
31 December 2022		 Deferred Tax
£
15,852
(3,318)
12,534

16 Leasing Agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2022
£
90,482
347,839
438,322		 2021
£
81,409
-
81,409

The amount of non-cancellable operating lease payments recognised as an expense during the year was £91,040 (2021 - £45,116).

17 Transactions involving Trustees

The parent company operated from premises held on a lease.

Sir Alec Reed is a trustee of the Reed Educational Trust Limited and has a material interest in Reed Global Ltd. The company trades with Reed Global Ltd and its subsidiaries, Reed Specialist Recruitment Ltd, Reed Property Ltd, Reed Online Ltd and Reed Foundation a normal trading basis. Please refer to note 18 on related party transactions, subsections (i) to (iii) for further details of transactions.

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THE REED EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18 Related party transactions

The Group had the following related party transactions during the year:

(i) Sir Alec Reed

– Relationship Sir Alec Reed is a Trustee of the Charitable Company, The Reed Educational Trust Limited. The Group paid rent to Sir Alec for some properties used by residential students. The Company also shares the cost of a gardener with Sir Alec. The rent due for the car park and residential properties for the year totalled £26,000 (2021: £8,250). The shared cost of a gardener was £nil (2021: £nil). The balance due to Sir Alec Reed at the year-end was £nil (2021: £9,360).

(ii) Reed Global Limited and its subsidiaries

Relationship – There are common Directors and Trustees in both Reed Global Limited and the Charitable Company, including Sir Alec Reed who has a material interest in Reed Global Limited.

The Group invoices Reed Global Limited and its subsidiaries for professional training courses. The amount invoiced in the year totalled £1,123 (2021: £2,999). The balance due from Reed Global Limited subsidiaries at the year-end was £nil (2021: £1,477).

Reed Specialist Recruitment Limited invoiced the Group for the cost of staff working at the company and for other administrative recharges totalling £114,343 (2021: £82,011) and accrued £16,643 (2021: £11,353). The balance due to Reed Specialist Recruitment Limited at the year-end was £5,210 (2021: £6,768).

The Group invoiced Reed Specialist Recruitment Limited for use of facilities totalling £62,697 (2021: £22,697). The balance due from Reed Specialist Recruitment Limited was £21,750 (2021: £24,956).

Reed Property Limited invoices the Group for the use of property for residential students. The amounts invoiced in the year totalled £10,920 (2021: £2,730). The balance due to Reed Property Limited at the year-end was £910 (2021: £910).

(iii) The Reed Foundation

– Relationship Sir Alec Reed and James Reed are Trustees of the registered charity The Reed Foundation. The Reed Foundation owns property utilised by the Group. Rent is paid on the Manor and several other properties in the village which are owned by The Reed Foundation. The amount invoiced in the year was £128,308 (2021: £39,116). The amount due to Reed Foundation at the year-end was £64,154 (2021: £39,116).

19 Analysis of charitable funds

The entire funds held by the Charitable Company are unrestricted and are free reserves for use in achieving the charity’s aims and objectives.

20 Control

The Charitable Company is controlled by the Board of Trustees / Directors.

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THE REED EDUCATIONAL TRUST LIMITED SOLUS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Incoming resources:
Donation from subsidiary
Other income
Interest received
Expenditure on charitable activities
Net surplus)
Total funds brought forward
Total funds carried forward		 2022
£
-
666
1,220
1,886
(88,286)
(86,400)
1,339,057
1,252,657		 2021
£
329,915
942
725
331,852
(67,924)
263,658
1,075,399
1,339,057

This page does not form part of the financial statements

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