THE OPEN SCHOOL TRUST COUNCIL MEMBERS, ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 30TH JUNE 2024 COMPANY REG. NO. 02438525 CHARITY NO. 328414 *ADHNoo• 1011212024 COMPANIES HOUSE A07
THE OPEN SCHOOL TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JLfNE 2024 CONTENTS Legal and Administrative Infom)ation Council Members, Annual Rep)rt Report of the Auditors Statement of Financi&l Activities Balance Shcel Statement of C&5h Flows Nolcs fomiin8 part of the financial statements 10- 17 The following pages do not fom part of the statutory financial $tstements: Dclailed Siatemcn¢ of Financial Activities 18 D¢tailed Balanc¢ Sheet 19
THE.OPEN SCHOOL TRUST PAGE I FtNANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JLfNE 2024 REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHAIUTY, ITS TRUSTEES AND ADVISORS REGISTRATION NUMBER.. 02438525 (Company limited by guarantee) CHARITY NUMBER.. 328414 COUNCIL MEMBERS: Dr R. Dorrance (Chairy)erson) Dr R. Morpeth R.A. Marshall (appoinled July 2024) C.J. Woolliscroft Dr V. Pittard S. Mistry (resigned November 2023) N. Baryaii (resigned November 2023) C.L. Rose (appointed November 2023 Professor M.J. Weller (appointed March 2024) CHIEF EXECUTIVE OFFICER: E Chesternian REGISTERED OFFICE Woolpack House 70 High Sircel Sawslon Cambridge CB22 3HJ AUDITORS: Prenlis & Co LLP Chartered Accountants & Sialutory Auditors 115c Milton Road Cambridge CB4 IXE BANKERS: CAF (Charities Aid Foundation) Bank 25 Kings Hill Avenue Kings Hill West Mallirtg, Keni ME19 4TA Naiional Westminster Bank Kings Parade Branch 10 Benet Str¢¢t Cambridge CB2 3PU In5ignis St Johns Innovation Centre Cowley Road Cambridge CB4 OWS SOLICITORS.. Stone Kin8 3rd Floor Baieman House 82-88 Hills Road Cambridge CB2 ILQ
THE OPEN SCHOOL TRUST PAGE 2 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 COUNCIL MEMBERS. ANNUAL REPORT The Couneil Members preseni their annual report and financial statements of the Trust for the year ended 30th June 2024. The financi ststements hav¢ been pr¢pared to meet the requirements for a directors. report and financial sthtemenls for Companies Act purpose& The financial statements comply with ihe Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association. and Accounring and Reporting by Charitie5'. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with Ihe FIncIal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019). OBJECTIVES AND ACTIVITIES PURPOSES OF THE TRUST Assyf OUT IN THE GOVERNING DOCUMENT The Trust's object is that of promoting education for the benefit of the publie and to provide or assist in providing trM)th adults and young people with sound general and specialised education and training. Our mission is "to widen learning opportunities for all by creating and promoting alternative modes of study foi th05e who do not follow traditional educatiortal routes" MAIN ACTIVITIES UNDER TAKEN IN RELA TJON TO THOSE PURPOSES The principal activities of the Trust during the ycar were the provision of education for adults and young people through distance leamin8 courses and by publishing training and learning materials. COUNCIL MEAIBER'S REGARD TO THE CHARITY COMA41SSION'S GUIDANCE ON PUBLIC BENEFIT The Council Members confimi thai they have complied with the duty of section 4 of the Charities Act 2011 relating to public benefil and have ¢onsidered the Charity Commission's specifie public benefil guidance on education, which fomis the basis of the followin8 review. The Charities Act 2011 (Scclion 2 of Part l) identifies "th¢ adv8ncement of education" Ls & public benefit and stAtes that to advance education 'means to promote, sustain and increase individual and collective knowledge and undcrslandin8 of specific areas of study. skills and expertise" There is clear commonality with this and the Trust's mi55ion. The Trust's 51ralegic obj¢¢tives. which are kept under consiant review. also support this mission. The Tru mainly works with individuals lo achieve ihe advancement of educalion. Additionally, the Trust is involved in a programm¢ of improvcmcnl in delivery to ensure Ihal education is brought lo ill people what¢v¢r their background in the mosi attractive and appropriate way. The Trust's work also involves keeping its courses and resources up to dale in a wide range of curriculum areas. ACHIEVEMENTS AND PERFORMANCE The Trusi remains commiiied to its mission of providing accessible, flexible, and inclusive education. We conlinu¢ to offer a wid¢ range of qualifications, from GCSES 8nd A Icv¢ls lo vocational qualification& ensuring that learners have second-chance opportuni(ies and the flexibiliiy lo study anyiime, anywhere. Our sup.port s¢rviccs arc iailored lo help studen15 achieve their 80815. r¢gardl¢ss of th¢ir ¢ir¢umslanc¢s. and our partnerships wilh other orgunisalions enable u5 to stay at the forefront of educational developments. We also campaign on issues (hat impact distance learners, advocalins for beller access and opportunilies.This year, significant progress h45 been m4d¢ in enhan¢in8 our offerin8S. building on the foundation estAblished in the previous year. Financial Performance.. Despilc ongoing economic challeng. the Trusl has demonstraied resili¢n¢¢. with s¢v¢ral key arw showing improvement comparcd io the previous year.This year, wc saw a positive shift in financial perforniance, refleciin8 morc effective marketin8 stral¢gies and lh¢ 5UCC¢Ssful introduclion of new courses tailored lo our learners, needs. Our pann¢rships with schoo15. colleges. and local authorities have also Strengthened. leading to increased income from these collaborations. This growih underscores lh¢ Trust's expandin8 influence and the growing recognition of our educational services within Ihe broadcr community. Strategic investments in marketing and IT infrastructure have started lo pay off, contributing to a more slreamlined operation and enhanced service delivery. While challenge5 remain. these developments posilion ihe Trust for future stabiliiy and growth. Investlnent in Services.. This year. we have prioritised the enhgmcement of student support services, launching an impmved p&%loral Service that offers greater emoiiorbal and academic support to our Iwners. This ensures that every student has the resources they need to succeed in iheir studies. Furtherniore, we have conlinued to develop se¢tor-leading online self-study malcrials, ensuring they are fully accessible io all learners. including those with disabiliti¢5. This initiativ¢ not only ¢nri¢hes the l¢arnirkg ¢xp¢rien¢e but ai50 e5tabli5hes the Trust as a leader in accessible education. Looking ahead. the Trust is dedicgted to fijrther enhancing our education&1 offerings and expandinE our impact. The progrtss mRde this year has laid a solid foundation for continued growth, and we are confident that ongoing investment in student s¢rvic¢s and wurs¢ developmenl will result in positive outcomes, both a¢ademi¢aily and financially. We are also pleased w have strengthened our reserves. enabling us to r¢inv¢sl in our services. This will ensure that we remain l¢ad¢rs in online learning, providing fvlly inclusive and accessible courses that SUPPOrt every student in reachiTr8 their educalional goals, no matter their learning needs.
THE OPEN SCHOOL TRUST PAGE 3 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JifNE 2024 COUNCIL MEMBERS, AVAL REPORT FINANCIAL iiEVIEW REVIEW OF THE FINANCIAL POSITJONA T THE END OF THE YEAR Th¢ Council Members are Satisfied that the level of free re5erv¢s currently ha5 a 5urplu5 of £715,915 (2023.. £666.63]) which they are aiming io increase io a target of £ I million. Income for the year amounted to £1,266,353 (2023.. £1,084,241) and expenditure amounied lo £1,231,293 (2023.. £1.198,064). FUNDIUISING Th¢ Open School Trust does not openly fundraise or solicil donations from the public. CURRENTFINANCIAL POSITION Trustees are pleased to see that despite a tough markei in terms of the impaci of cost of living, and general economic climaie affecting students, that the charity has still performed well. RESER VES POLICY Thc Council Mcmbers have a target for free rtserves of £lmillion. and expect this to be achieved over an 8 year term, through increased sales and careful cost management. The Council Members have tonsidered ihat the most appropriate w)licy at present is to mllintain all surplus funds in the various bank current and deposit accounts. This policy is kept undcr review. having regard to the level of funds available. The Member of Council's inv¢stm¢nt powers aT¢ governed by the Trust Deed which permits The Open School Trust to invesl the monies of the Tnjst not immediately required for its purposes in such ways Rs the Trust shall in its absoluie discretion think fit. STRUCTURE. GOVERNANCE AND MANAGEMENT NA TURE OF THE GOVERNING DOCUMENT The Open School Tnjsl (registered charity 328414) was incorporated in Novcmbcr 1989 with an object to promote education for the bcnefil of the public. The Open School Trust was dormani from 2003 to 201 l and revived to imkc thc Naliorbal Extension College (NEC) oui of the adminisiraiion of the Learning and Skills Nciwork. The Open School Trust look over ihe assets and the liabiliiies of the NEC on 16 Decembcr 201 l and has been running the college a$ 8 going concern. The Open School Trust conlinues to use ihe trading name National Extension College (NEC). Th¢s¢ financial $14lem¢n15 covcr the 12 months of Irading 10 30 June 2023. The governing documcni 15 the Mcmorandum and Articles of Associaiion filed al Companies House on 20th October 1989. CONSTITUTION OF THE CHARITY The constitution of the Ch¥Arity is conlain¢d in items I to 7 of th¢ Memorandum of Association and items I to 69 of (h¢ Articles of Association. THE BOARD OF TRUSTE (COUNCIL MEMBERS) The Council Members of the Tru are also directors for the purposes of company law. The Council Members (referred lo in the company's articles as the "Council of Management") consist$ of noi less than three members. At presenl. the Council comprise5 of sevcn m¢mber5 from a variety of professional back8rounds relevant to the work of the Trust and meet al ]Ct thrcc limes a year. Council Members are responsible for the management of the risks faced by the Trust. Risks are identified and assessed and controls esiablished Ihrou8hou¢ the year. Significant new ventures are subject to a risk analysis by the Council Members before they are approved. Council Members make a di5tin¢tion belwe¢n those iniliativ¢s whi¢h 8r¢ 5ubj¢¢t to normal ¢ommerci81 practices and thos¢ which are subjeci lo Governmeni policy. In both cases. The Open School Trust conforms to Ihe1¢8islalive framework. The Trust mainlains a Rcglster of Inlcrests and both Council Members and senior executive managers arc required to declare annually, and whenever they may arise. any interest which may be perceived &% being likely lo interfere with the ¢x¢rcise of independent judgem¢nL Th¢ Council is also underpinned by a Senior managcmcnl Icam, which support its decision making. The senior management team meet on a monthly basis. Expens and tutors are engaged when required to provide the support and developmenl of Services. New Council Members are invited lo familiari Ihemselvcs with Ihc Trusi and the context within which it operate5. Bri¢fin8 sc5sions jointly led by the Chief Execuiivc Officer and the existing Council Members cover.. The obligations of the management team. The main documents which set out th¢ opcrational framcwork of the Trust. The current fIncIal position includin8 Ihe lalest published financial 5tstemertts and th¢ ¢urrenl Magement accounts. Future plafts and objectives. The Charity Commission guide "The Essential Trustee" KEY MANAGEMENT PERSONNEL REMUNERA TJON The Council Members consider the Member5 of Council and the Chief Executive as comprising the key management personnel of ihe charitable ompany in Charge of directing and controlling the charitabl¢ wmpany and running and operating the charitable company on a day to day basis.
THE OPEN SCHOOL TRIIST PAGE 4 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 COUNCIL MEMBERS, ANNUAL REPORT STATEME1 OF MEMBERS OF COUNCIL RESPONSIBILITIES All Coun¢il Members and ihe outgoing Chief Executive give Ih¢ir time freely and Theither the Council Members nor outgoing Chief Executive received any remuneration in the year. Details of Council Member's expenses )Je disclosed in note 6 to the financial Si&trments and relaied party iT8nsa¢tions are dis¢losed in note 16 to the financial statements. PRINCIPAL RISKSAND UNCER TAINTIES Iniernal controls over all forms of income, assets, commitment and expendilure ¢ontinue to be refined io improve efficiency and effectiveness. PerfoTmance is monitored ond appropria* management infonnation is prepared and r¢view¢d regularly by the management le&m and Tnte¢s. The Tn1 currenily produces an onnual budgei and rewrts monthly againsi thai budgei. tequirkng managers to ¢ommeni on variances and outline corrective a¢iir)n if required. The Council Members have dele8a¢ed auihoriry from the Council to ensure thai An active ri$k manmgemeni proce55 is in place and fom part of The Open School TN5t's ongoing organisation activity. The Membcrs of Council gre r¢quired by ¢ompgny low w prep&r¢ finan¢iol siaiem¢nts for each financial y¢ar which give a true and fair view of th¢ state of affairs of the Tnjst and of the surplu5 or deficit of the Trust for thai year. In preparin8 those financial siatements the Membeis of Coun¢il are required lo.. (&) Selecl suiiable a¢¢ountin8 poli¢ies ond then apply them nsISteni1y. (b) Observe th¢ method5 and principle5 of the Ch8Tities SORP., (C) Make judgem¢nts and estimates that are reasonable and prudent; (dl Siote wh¢ther the policies adopted are in a¢¢oTdance with the Companies Act 2006 and with applicable &ccountin$ standards and Siaiemeftis of Recommended Practice. 5ubjecl lo any material departures disclosed and explained in the fancIal staiement5' (e) Prepa ihe financial slal¢m¢nis on a going concern basis unless if is inappropriate ro presume that ihe TTUSt will conlinue in operalion. The Members of Council are responsible for k¢¢pin8 proper a¢counting r¢cords which disclose whth re450n4bl¢ 8¢¢ura¢y at )ny lim¢. Ihe fin8ncial P051tion of the charity and enable them to ensure that ihe fiiiancial gtaternenis comply with the Companies Act 2006, tht Charities A¢i 2011 and the Charilies IAc¢ounts and Reports) Regulgtions. The Members of Council we also responsible for $&feguarding the assets of the Charity and hence for taking reOnable steps for the prevention and detection of fraud and oih¢r irr¢gularitie$. STATEMENTOF DISCLOSURE OF tNFORMATION TO AUDITORS In the cose of eBch of the persons who are Mernbers of Council at the time when ihe Council Members, report is approved.. {Al So far eAch Member ol. Council is iw4re, Ih¢re 1$ no rel¢vani audit information, Ixing information needed by ihe Trust's Auditor in connection willi preparing their repoTL of which th¢ Trust's auditor is unaware. and {b) Each Member OF Council has taken all steps they ought to have taken as a Member of Council in order to make ihemselves aware of any relev8nr audit inforniation and to ¢$tablish thai the Trust's auditor is awore of ihot infomi&tion. The Auditors, Prentis & Co LLP, will be proposed for re4ppointment in a¢¢ordan¢e with Section 485 of the Companies A¢1 2006. APPEiOVAL This report was approved by the Members of Council and signed on its behalf, on CHAIR OF THE MEMBERS OF COUNCIL R. DORJIANCE Date 22-11-24
THE OPEN SCHOOL TRUST PAGE 5 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 INDEPENDENT AUDITOR'S REPORT TO THE COUNCIL MEMBERS OF THE OPEN SCHOOL TRUST OPINION We have audited the financial statrments of Open School Trust for the year ended 30 June 2024 which comprise of the Statement of Financial Activities, the Balance Sheet, Statement of C&5h Flow5 and notes to the finan¢ial statements including a summary of si8nifi¢ani accounting policies. The fin&n¢ial reporting framework Ihal has been &pplied tn their pr¢par8lion is applicable law and Uniied Kingdom Accounting Standards, including Financial R¢porting Standard 102 "The Financial Reportin£ Standard applicable in ihe UK and Republic of Ireland" (Uniied Kingdom GenerlY Accepl¢d Accounting Practice). In our opinion, the financial staiements.. give a true and fair view of th¢ stalc of th¢ ¢haritabl¢ company's affairs as al 30th Junc 2024, and of its dcficii for the year then cndcd. have been properly prepared in accordance with Uniied Kingdom Generally Accepted Accouniing Praciice. and hav¢ been prepared in accordance wilh the requirements of the Companies Aci 2006. BASIS OF OPINION We conducted our audit in accordance with International Sthndards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under thosc standards funher described in ihe Audiior's responsibililies for the audit of ihe finaneial statements section of our report. We are indcpendent of the charitabl¢ rnpanY in a¢wrdan¢¢ with th¢ ethical rquir¢ments Ihai are relevant lo our audit of Ihe financial statements in the UK, including ihe FRC'S Ethical standd. and the provisions available for small entities, in the circumstances sel out in note 5 to th¢ financial statements. and we have fylfill¢d our other eihical responsibilities in accordance with these requirements. We believe thai ihe audit evidence we have obiained is sufficicnr and appropriat¢ to PToYide a basis for our opinion. CONCLUSIONS RELATING TO GONG CONCERN In audiiing the financial slalemenis, we have concluded thai the Council's use of ihe going concem basis of accounting in the preparation of the financial siaiements is appropriate. BAs¢d on the work w¢ have performed. we have nol identified any malerial uncertainlies rclaling to evcnls or conditions thai, individually or collectively may casr significant doubt on the Trust's ability io continue a going concern for a period of at le&8t twelve months from when Ihe financial slalement5 arc auihoris¢d for issue. Our r¢sponsibilities and the responsibilitie$ of the Council with respect to going concern 8re described in Ih¢ relevY4nt s¢¢lions this report. OT14ER INFORMATION The oihcr informaiion comprises the information included in the Council Members, Annual ReTX)rt, other than the financial 518t¢m¢nls and our auditor's report Ihereon. The Council Member5 ar¢ r¢5ponsible for the othcr information, Our opinion on the financial stalcmenls docs not cover Ihc other information and. except to the exlenl oih¢rwi5e expliciily slated in our report, wc do not express any form of assuranec conclusion Ihereon. In connection with our audit of the financial statements. our responsibility is to read ihe oiher inform&lion and, in doing , consider whether the other infomiation is materially inconsistent wilh the financial sialemenis or our knowledge obtained in thc audii or otherwise appears to be malerially mi551aled. If we ideniify such malerial inconsislcncies or apparent material mis$tatements, we are required to d¢l¢rmin¢ whether there is a material missiatemcnt in the financiul 51atements or a material mi5stalem¢nl of the other information. If. based on the work we have performcd. w¢ conclude ihat there is a material misstatement of this oiher inforn)aiion, we are required io report that fact. We have nothing io report in this regard, OPINIONS ON OTHER MATTERS PRCSCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the r5e ofthe audil.. the information given in the Council Members Annyal Report for the financial year for which the financial statements are preparcd 15 consistent with the financial slaicment5: and th¢ Coun¢il Members Annual Report has been prepared irt accordance with applicMbl¢ leg81 requir¢menl5. mAER5 ON WHICH WE ARE REQUIRED TO REPORT B Y EXCEPTION In the light ol" the knowledge and understanding of the eharitable coMpY and ils eiivir<Jiiii)¢iit obtained in the coursc of ihc lludil, we have not identified materi81 misslal¢ments in the Council Memberfs Annual Report. We hav¢ noihing to report in respect of the following mallus where the Companies Act 2006 or Charities Act 2011 requires us lo report to you if. in our opinion- the charitable eompany has not kept adequate accounting records or returns adequate for our audit have not been received from br8mche5 not visited by us. or the financial sthtemenis are not in agreement with the 8¢un¢1ng records and retums. or ertain disclosures of trustee remuncration specified bylaw are not made. or we have noi received all the information and explanations we require for our audit.
THE OPEN SCHOOL TRUST PAGE 6 FINAfvCIAL STATEMENfs FOR THE YEAR ENDED 3QTH JLfNE 2024 INDEPENDENT AUDITOR'S REPORT TO THE COUNCIL MEMBERS OF THE OPEN SCHOOL TRUST RESPONSIBILITIES OF COUNCIL MEMBERS As explained more fully in the Council Members. responsibilities statement in the Council Members Annual Report. the Members of Council (who are also the directors of the chariiable company for the purpos¢s of company law) are responsible for the prepallOn of ihe financial lalemenkn and for boins at1..fIQd thot they givc o truc and foir N'icw. und for Juch intemul control as thc Cvull¥il M¥l))ber5 d¥t¢lKillfi¢ i) JiknW>>llL'y to enable the preparaiion of financial stat¢ment5 that are free from material missiatemeni, whether duc lo fraud or error. In preparing the financial statements. the Council Members are responsible for assessing the ch8ritsble company's ability to eonlinue &8 a going ncern. dis¢losing. &5 applicable. marters relaied going concern and using the going concern b&sis of accounting unless the Council Members either intend to liquidate the chwilable CoMpY or to ce&5e operations, or have no realistic alicmative bul to do so. The Council Members have elected for the financial statements to be audited in accordance with the Charities Act 201 I rather than the Companies Act 2006. Accordingl., '¢ hai'e been appointed auditor undcr ctIOn 144 of thc Chariiica Act 201 l and rcport in accord0n with rcgiilalioiis 'made under section 154 of that Act. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Irregularities, including fraud. are instances of non-compliancc with laws and regulations. The primary responsibility for the prevention and detection o( irregularities including fraud rests with boih Ihe management and those charged with governance of the charitable Company. We design pro¢¢dur¢s in line with our responsibilities, outlined above, to detect m&lerial misst&tment5 in respect of irregularities. including fraud. The Cxtent lo which our procedures are capabl¢ of d¢t¢¢tin8 irr¢gularilie5, including fraud is detsiled below.. We have Conldered lh¢ natur¢ ofthe induJtry and oC¢tor, control cnyironmcnl, lows regulations of Ihc charitsblc conipany, Cliarity La0 aijd regulations con5idcr¢d includcd, but were not limited lo, the Companies Act 2006. th¢ CharitlC5 Aci 201 I, Charity SORP and FRS102. Wc have enquired wilh the management in regards to their own assc55ment of ihe risks of irr¢8ularilies. in¢luding fraud. We 8150 enquir¢d of th¢ management and those charged with gov¢rn8nc¢ &s to any known insiances of non-compliance or su5pccied non-compliance with laws and r¢gulations. We obtained relevani documoniation ond ieprcJcntotionJ in ordcr lo fomi an opinion on potcntitsl irregulnritics, includi118 fraud. Wc considered the opportunilies and incentiVC5 that may exisi within the organisation for fraud. Based on this understandin8, we desi8n¢d spe¢ifi¢ audit procedures lo ideniify instances of non-compliance with laws and regulations. including obtaining addilional corroboraiive evidence as required. Exampl¢s of procedure5 included reviewing lar8¢ and unusual iransaclions, reviewin8 large &nd unoxpocted varianccs, r¢i'iewinB journal cntrico and rcviowin8 rclcvonl Ic881 corrcspondcncc. There are inherenl limitations in the audit procedures described above, noi leasi as sampling is used under Inlernalional Auditing Standards, therefore noi all irans8¢tions are revicwed, Therefore ihere is a risk w¢ will nol d¢l¢cl all irr¢gularilies including those lellding lo a maicrial mirvtJtemenl in the finanoitsl trtalemcnkn or non.complioncc with rcgula(ionJ. Thc riJk of nol dclccting u matcrilll iiii55tatCl)lknllt dui to fi'dud is aloo hiRh¢r than lh¢ ri..k of nol d¢l¢oting ono from ¢rror. frnud mlly involve dcliberlltc concclllmcnt by, for exanip1, ffjr&ry coIIuiitsll. 011)ISSIOI) or intentional misrepreseniaiion. A further description of our responsibilities foi the audir of ihe finan¢ial slal¢men(s is loted on the Financial Reporting Council's web$ilc At www.fr¢.org.uklaudiiorsr¢sponsibililies. This d¢rIptIOn forms pat1 of our Audilor's report. USE OF OUR REPORT This ieport is made solely io ihe charity's Council Members, as a body, in a¢cordanc¢ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 b¢¢n und¢rtaken SQ that we might slate to the charity's Council M¢mb¢rs Ihosc mallers we are required lo siale lo them in an auditor's report and for no oiher purpos¢. To the fullest exlcnt pemiitted by law. we do noi accept or assume responsibility w anyone other Ihan Iho Gharity, and th¢ charity,. Council Mombcro (kn o bod).. for our audii work, for thi& rcport, or for thc opiiiion5 W¥ liavc foi'iii¥Li. IAN SHIPLEY FCCA (Senior St8tuiOry Auditor) FOR AND ON BEHALF OF PRENTIS & CO LLP CHARTERED ACCOUNTANTS & STATUTORY AUDITORS 115c Milton Road Cambridg¢ CB4 IXE 2 11 d Pecernkr 20 Preniis & Co LLP is eligibl¢ aet as an auditor in ierms of section 1212 of the Companies A¢t 2006.
THE OPEN SCHOOL TRUST PAGE 7 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 STATEMENT OF FNANCIAL ACTIVITIES 2024 Unrestricted Funds 2024 2024 2023 To1 Unresiricted Funds Funds 2023 2023 Toial Funds Notes Restricted Funds Restricted Funds INCOME FROM: Charitable activities: Fees Publications and lieences Project income Other income Investment income: Interest received 1,203,682 2.631 1,203,682 2,631 35.282 775 1,055,159 3,704 ,055,159 3,704 3,000 13,606 35,282 3,000 775 13,606 23.983 1.231.071 23.983 1.266.353 8,772 1.081.241 8.772 1.084.241 TOTAL INCOME 35,282 3.000 EXPENDITURE ON: Charitable activities: Fees Publieaiions and licences Projects Other'co513 1,151,894 16,710 1,151,894 16,710 35,022 27,667 1,150.947 17,072 .150.947 17,072 3,000 27,045 35,022 3,000 27,667 27,045 TOTAL EXPENDITURE 1.196.271 35.022 .231..293 1,195.064 3.000 ,198,064 Net {exptndi¢ure)lincome and net movement in funds 34,800 260 35,060 (113,823) (113,823) RECONCILIATION OF FUNDS Total funds brought forward Total funds earried forward 759,315 7S9,315 873,138 873,138 794,115 260 794,375 759,315 759,315 I'he Statement of Financial Activitieg includes all gains and105ses reniSed in th¢ y¢ar. All income and expenditure derive from continuin8 &clivilies. The noies on page5 10 to 17 form part of th¢se fin8ncial ststement5,
THE OPEN SCHOOL TRUST PAGE 8 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 1024 BALANCE SHEET Notes 2024 2023 FLXEDASSETS Intllngible ass¢ts Tan8ible assets TOTAL FIXED ASSETS 75.337 7.423 79.93$ 12.749 82.760 92.684 CURR£NT ASSETS Sio¢ks Debtors CI5h at bank ind in hand 10 5,191 44,586 859.354 6.579 56.491 766.303 TOTAL CURRENT ASSETS 909,131 829,373 LIABILITIES., Creditors.. Amounts fallint due within one y¢ar 12 194,9151 {68.5891 NET CURRENT ASSETS 814,216 760.784 TOTALASSETS LESS CURRENT LIABILITIES 896.976 853,468 PROVISIONS FOR LL4BILITIES 13 1102,6011 194,1531 TOTAL NET ASSETS 794.375 759,JlS THE FUNDS OFTHE CHARITY., Unrestricted Fundg ¢siried Funds 14 14 794,115 200 759,315 TOTAL FUNDS 794.375 759.jls The finoncial statements w¢rt approved by the Council of Trusi¢e$ ott Z2nd November 2024 Ind Sign on ils beh#lf by CHAtR OF THE COLfNCIL OF MEMBEIiS R. DORKINCE The note5 on pa8e$ 10 10 17 fomi port of ihese finan¢ig1 $taments.
THEQPEN SCHOOL TRUST PAGE 9 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 STATEMENT OF CASH FLOWS 2024 Total Funds 2023 Total Funds Notes C&sh flows from optrAtlng aetivldes: Nei eash provided by/(used in) operaling oclivilies 18 137,395 (67,881) Cash flows from investing activitles: Purchase of tangible fixed assets Capitslisation of intsngible asseis Nei cash provided by/(used in) inveJilng oclivides (2.688) (41.656) (44.344) (3.887) (14.664) (18,551) Change in casli and casli equivolenis in iheyear Cash And cash equivalents brought forward C*sh And cash equivalents carri¢d forward 93.051 766.303 (86,432) 852,735 859.354 766.303
THEOPEN SCHOOL TRUST PAGE 10 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JitNE 2024 NOTES TO THE FINANCIAL STATEMENTS ACCOUNTING POLICIES (a) BASIS OF PREPARATION The financial statements have been prepared in accordance with the Statement of Recommended Practice.. A¢uting and Reporting by Charities preparing their financial Statements in accordance with the Financial Reporting Sthndard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019)- (Charities SORP (FRS 102)). the Financial Reporting StandArd applicabl¢ in lh¢ UK and Republic of IrelAnd (FRS 102) And the Companies Act 2006. The Open SchcM)l Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction values unles5 oihetlViS¢ 5tJtcd in th¢ relevant accounting policy rbotes. (b) INCOME RECOGNITION All incoming resourc¢s we includ¢d in ihc Siatemcnl ol Financial Aclivilic5 wh¢n the charity is legally entitled to the money and the amounis can bc quaniified with reasonable auraCY. The following specific policies are applied to particular categories of income: Fee and Publicaiions income.. Fee income reprcsents the invoiced value of fe¢s for distance learning Courses and contracts ncl of Value Added Tax and discounts. Because of the nature and advantage of distance learning Ihcrc 15 no set length of a course. Course$ can be undenaken in a matter of weeks or over a y¢ar. ¢ourses can be purchased simply for the maierial lo supwrt the malerial of other educator$, and students can cease their studies pem)anenily because of a number outside facior$. Becaus¢ of th¢ abov¢ there is no reliable measure of the Icngih of a course and liming of the income 51ream. Therore the trust considers it appropriate to recognise fee income where & course has been ordered. Publication income repre5¢nls the invoiced value of publications of learning material. Projeci and Granl income.. Income from grants, whether 'capilal' granis or 'r¢vcnue' Br1$, is reGo8niscd when th¢ trust ha5 enlitlemenl lo th¢ fund5. any perfomance conditions aitached to ihe granis have been met, il is probable Ihat the income will be received and ihe amount can be measured reliably and is not deferred. Invesimenl income.. Inlerest on funds held on deposit 18 included when receivable and the amounl can be measured reliably by the Irusi; Ihis is normally upon notification of the interest paid or payllble by ihe bank. (c) EXPENDITURE AND IRRECOVEFLABLE VAT Expenditure is recognised once there 15 81¢8al or Constructive obligation to make a payment to a third party, il is probabl¢ that Settlement will be required and the amount of the obli8ation can bc measured reliably. All expenditure is accounted for on an accruals basi5. All expenses including support ¢osts and gov¢rnan¢e costs are allocated or apportioned io the following expenditure headings &8 follows: RoiJingfynds.' Costs of raising funds comprise th¢ cost5 of s¢cking and applying for grants and costs associated with the seeking and arrangirhg of licence fee agreements. ChariÉablÉ aclivilies., Expenditure on charitable activities includes the costs of aclivities undertaken lo further Ihe purposes olihe irusl and Iheir associated supporn Sts. Costs relating lo a particular a¢livily are allocated d1clay. others are apportioned on arb appropriate ba515. Govemance costs include all expenditure not direcily related io the chariiable aciivity or fundraising ventures. This includes an appropriale proportion of costs of renting and running office premises, staff salaries for administration staff and audit fees. Irrccovcrable VAT is charged as a cost against the activity for which ihe expendilure was incurred.
THE.OPEN SCHOOL TRUST PAGEII FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FINANCIAL STATEMENTS (e) OPERA TING LEASES Rentals applicable to operating Iwes, where substantially all of the benefits and risks of ownership remain with the lea50r, are charged lo the S(aiement of Financial Activities as incurred. (t) TANGIBLE FIXED ASSETS The charity has a policy of capitalising fixed setS with a cost in excess of £250. Depreciation is provided on all tangible fixed assets al rales calculated lo write-off the costs less estimated residual value of each asset over ils eXted u5efi]I life &$ follows.. Leasehold improvemenls Equipment and software 4 years straight line 3 and 4 years straight line (g) INTANGIBLE FIXED ASSETS Gootavill.. GTh)dwill is the diffcrcncc betwcen amounts paid on the acquisition ora business and the fair value of the separable nel assets. The Council Members had previously estimated the economic life to be 20 years for which it was amorlised io the Siaiemcnl of Financial Activilies from l July 2012. Following a revicw undertaken by the Council Members. from l July 201 S it agreed that the economic life was to be reduced and as 5u¢h lh¢ remaining value of the goodwill will be amortised over the ncxi l O years. Course developmenl., The Trusi defers course development cxpendilurc on new course products where the project mee¢$ the ¢riieria s¢i oul for deferred costs in FRS 102. Idcnlifiable d¢velopm¢nt expenditure is deferred on clearly defined projccls where Ihe outcome has been aSSud wilh reasonable certainly and is viable in light of current market conditions. Income is expecied lo exceed all developmeni cos¢s. Th¢ life of each course on completion and commencemenl of markcting is expecicd lo be 3 years and cach course is reviewed annually to ensure commercial prospects r¢main. otherwise the costs are written off in that year. (h) STOCKS Stocks are valued al the lower of cost and net realisabl¢ valu¢ aft¢r making du¢ allowance for ob$olet¢ and slow moving items. Cost of course maierials and publications includ¢s materials. printing and other direct cosis ai cost price. (i) DEBTORS Trade and other dcbiors are recognised at the seiilemcnl amount duc after any trade discount offered. Prepayments ar¢ valu¢d Ji Ihe amount pffpoid net of any trade discounts due. li) CREDITORS Creditors and provisions are r¢co8niscd where the charity has a present obligation resulting from a pAst event ihAt will probably result in the transfer of funds to a third party and Ihe amounl duc to seiile Ihe obligation Can be measured or eslimal¢d reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for &ny Irade discounts due. (k) PROVISIONS FOR LIABILITIES A provision for deferred in¢om¢ r¢lating to the tutor element of each course 15 included under liabilities. Each course sold comprises of study materials and lulor support. The length of lime taken lo complete the course depcnds on the sludenl's objectives and oflen Ihe course is purchased for the sludy materials alone. Tutor support is given for a p¢riod of 24 monih5 from the start of the course and that part of the course fees is estimated and deferred over that period. LEGAL STATUS OF THE CHARITY The Trust is a company limited by guarantee and has no 5h8re Capital. In Ihe event of the charity being wound up, the liability in r¢spect of the guarantee is limited to £ I per member of the charity. INCOME FROM PROJECTS 2024 2024 Restricted Funds 2024 2023 Tolal Unrcstricted Funds Funds 2023 Reslricled FurKIs 2023 Total Funds Unrestricted Funds PET Digital Bursary Fund Open University 34,282 1.000 34,282 ,000 3,000 3,000 35.282 35,282 3.000 3,000
THE'OPEN SCHOOL TRUST PAGE 12 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FINANCIAL STATEMENTS EXPENDITURE ON.. CHARITABLE ACTIVITIES FOR THE YEAR ENDED 30TH JLfNE 2024 Activilies Undertaken Other Direct Directly Costs Support Costs 2024 Total Fccs Publications & licences Projecls Govemance costs 723,356 15.827 4,360 424.178 883 13.590 27,667 466.318 1.151,894 16,710 35.022 27,667 .231.293 21,432 739,183 25,792 ANALYSIS OF SUPPORT COSTS FOR THE YEAR ENDED 30TH JiFNE 2024 Publication5 & Licences 2024 Toial Fees GOvernCe Projecls Postsge and carriage Staff costs Office cxp¢n5¢5 Computer and hardware expenses Telephone Depreciation and amortisalion Profe55ionAI fees Accountancy Other costs Bank and credii card charges Premi$es expenses Adv¢rtisin8 and mark¢ting 783 136,567 515 55.888 4,596 54,155 29,525 126 409 14,412 42,502 84.700 785 150,442 516 56,004 4,606 54,268 29,586 126 410 14,442 42,590 84.876 285 13.590 116 10 61 30 88 176 424,178 883 13,590 438,651 ANALYSIS OF GOVERNANCE COSTS Le841 and professional Auditors remuneration Trusiees expcnses Apportionmeni of premises costs 1.213 ,094 2.360 6,000 1,213 8,094 2,360 6,000 424,178 883 27,667 .13.590 466,318
THE.OPEN SCHOOL TRUST PAGE 13 FINANCIAL STA TEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FtNANCIAL STA TEMENTS EXPENDITURE ON: CHARITABLE ACTIVITIES FOR THE YEAR ENDCD 30TH JUNE 2023 Activities Underiaken Direcily Other Direct Costs Support Costs 2023 Total Fees Publications & licences Projeets Govcrnan¢e costs 697,471 15,771 3.224 450.252 1.301 ,150,947 17,072 3,000 27,045 1.198,064 3,¢XIO 27,045 478.598 713.242 6,224 ANALYSIS OF SUPPORT COSTS FOR THE YEAR ENDED 30TH JUNE 2023 Publicaiions & Licences 2023 Toial Fees Governance Postage and carriage Staff Costs Office exp¢n$es Computer and hardware expenses Telephone Depreciaiion and amortisation Professional fees Accountancy Oiher costs Recruitmeni costs Bank and credit card charges Premises expenses Adv¢rti$ing and marketing 1.319 135,975 995 54.533 4,479 78,959 29,696 1,323 136,368 998 54,691 4,492 79,187 29.782 114 1,380 491 12,631 40,131 89,965 451,553 393 158 13 228 86 1,376 490 12.595 40,015 89,706 36 116 259 450,252 1.301 ANALYSIS OF GOVERNANCE COSTS Legal and profes$ion81 Auditors remuncralion Trustees expenses Apportionmenl of premises costs 13,409 7.596 40 6,000 13,409 7,596 40 6,000 450,252 1,301 27,045 478.598 NET EXPENDITUREIINCOME FOR THE YEAR The net expenditure ihis year is sialed after charging: 2024 2023 Auditors rcmuneralion Audit - Other services {consultancy) Depreciation of tangible fixed setS Amorti3ation of intangible fixed assets 8.094 126 8.014 46.254 7.596 25,318 53.869 MANAGEMENT THREAT IN RELATION TO NON-AUDIT SER VICES In common with many other businesses of our size and natur¢ we u5¢ our auditors lo assist wilh the preparation of the firkancial siatements. ANALYSIS OF STAFF COSTS AND REMLfNERATION OF KEY MANAGEMENT PERSONNEL 2024 2023 Salaries and wages Social security costs Pension contributions Benefits 625.886 49.918 33.945 3.489 607,782 47,048 32,156 815 713.238 687,801 The average weekly number of staff employed by the charity during the year were.. Charitable activities Management and Administration 2024 24 2023 24 26 26
THBOPEN SCHOOL TRUST PAGE 14 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JLfNE 2024 NOTES TO THE FINANCIAL STATEMENTS ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSOKNEL continued The number of employees whosc emoluments (salarics, pension contributions other benefits) exceeded £60,000 was 2 (2023.. 1) &$ below: 2024 2023 £60.000 - £70.000 £70,000 - £80,000 The Trust considers its key management personnel comprise the Council Members and the Chief Executive Office. all of whi¢h r¢c¢iv¢d £75,679 (2023 £76,685), TAXATION As a charity, Open School Trnst is exempt from tax on income and gains falling within seciion 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the ¢xtent that these are appli¢d to its charitable objects. No tax charge5 have arisen in the year. rNTANGIBLE FIXED ASSETS FOR THE YEAR ENDED 30TH JUNE 2024 COST OR VALUATION Balance al 1st July 2023 Additions Course Goodwill Dcvelopmenl Total 301,166 739,817 41.656 781.473 1,040,983 41.656 Balance at Joth June 2024 301.166 1.082,639 AMORTISATION Balance al Isi July 2023 Char8e for lh¢ year Balance al 30ih June 2024 249,966 25,596 711,082 20.658 961.048 46,254 275,562 731,740 1.007,302 NET BOOK VALUE as at 30th June 2024 25.604 49,733 75.337 INTANGIBLE FIXED ASSETS FOR THE YEAR ENDED 30TH JUNE 2023 COST OR VALUATION Balance at l st July 2022 Addition$ Cours¢ Goodwill Development Total 301,166 725,153 14.664 ,026,319 14,664 Balance at 30th June 2023 301.166 739,817 1.040,983 AMORTISATION Balance ai I st July 2022 Charge for ihe year Balance at 30th June 2023 224.367 25.599 682,812 28.270 907,179 53,869 961.048 249,966 711,082 28.735 NET BOOK VALUE as at 30th June 2023 51.200 79,935 TANGIBLE FIXED ASSETS YEAR ENDED 30TH JUNE 2024 COST OR VALUATION Balance ai 1st July 2023 Additions Disix)sals Balance al 30th June 2024 Equipmenl & Software Total 317,434 2,688 (4.249) 315,873 317,434 2,688 {4.249) 315,873 DEPRECIATION Balance al 1st July 2023 Charge for the y¢ar Eliminated on disposal Balance al 30th June 2024 304,685 8.014 {4,249) 308.450 304.685 8,014 (4,249) 308,450 NET BOOK VALUE as at 30th June 2024 7.423 7,423
THE OPEN SCHOOL TRUST PAGE 15 FINANCIAL STA TEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FINANCIAL STATEMENTS TANGIBLE FIXED ASSETS YEAR ENDED 30TH JUNE 2023 COST OR VALUATION Balance at I sl July 2022 Additions Equipment & Softwar¢ Total 313,547 3.887 313,547 3,887 Balance al 30th Jun¢ 2023 317,434 317,434 DEPRECIATION Balance Mi I sl July 2022 CharEe for the year Balan¢¢ at 30ih June 2023 279.367 25.318 279,367 25,318 304,685 12,749 304.685 NET BOOK VALUE as 30th June 2023 12.749 10. STOCKS 2024 2023 Finished goods and 8dS for resalc 5.191 6.579 DEBTORS 2024 2023 Trade debtors Prepayments and accrued income Other debtor5 22,958 21.628 38,942 16.236 1,313 56,491 44,586 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Tradc cr¢ditor5 Other crediiors Accruals and deferred income 27,792 20,705 46.418 12,198 16,089 40,302 94,915 68,589 13. PROVISIONS FOR LIABILITIES 2024 2023 Balanc¢ brought forward Movement in provision Balance carried forward 94.153 8,448 110.030 (15,877) 94,153 102,601 The provision relates to deferred course fee income. As the Trust a¢c¢ptS Students on a regular basi5, it is expecled that the Provision will be in lin¢ with student numbers. The provision is calculated on the income received from ¢our5¢ sales. diswunted to remove all non-tutor cost elements that are ¢on5idered exnded on the purch&se of the course, and deferred over the expected life of a cour5¢ up lo a 24 month period from commencement of the course.
THBOPEN SCH(M)L TRUST PAGE 16 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FINANCIAL STATEMENTS 14. ANALYSIS OF CHARITABLE FUNDS YEAR ENDED 30TH JUNE 2024 Brought Forward Carried Forward Income Expenditure LfNRESTRtCTED FIJNDS General funds 759.315 1,231,071 (1,196,271) 794.115 RESTRICTED FUNDS PET Digilal Bursary Fund TOTAL FLfNDS 34.282 1.000 (34.282) (740) (1.231.293) 260 759,315 1,266,353 794,375 14a. ANALYSIS OF CHARITABLE FUNDS YEAR ENDED 30TH JUNE 2023 Broughi Forward Carried Forward Income Expenditure UNRESTRICTED FUNDS General funds 873,138 1,081,241 (1,195.064) 759,315 RESTRICTED FUNDS Open University 3,000 (3,000) (1,198,064) TOTAL FUNDS 873,138 1,084,241 759.315 Restricted fund purpose,. Open University - funding received towards a joint project with Open University for market research on Chinese Icaming mark¢t, PET Digilal - funding r¢c¢iv¢d for the creation of a digital course for prisoners lo use in prison. Bursary Fund - 60ih anniversary bursary io cover course and exam fee5 for the successful applianl, funded by the trustee, R Morpclh, 15. ANALYSIS OF NET ASSETS BETWEEN FIJNDS YEAR ENDED 30TH JUNE 2024 2024 Unrestricted Funds 2024 2024 Total Funds Restricted Funds Intangible fixed set$ Tangible fixed assets Current asseis Creditors due wiihin one year Provision for liabilities 75,337 7.423 908,871 (94,915) (102,601) 794.115 75.337 7,423 909,131 (94.91 S) (102,601) 794,375 260 260 154. ANALYSIS OF NET ASSETS BETWEEN FUNDS YEAR ENDED 30TH JUNE 2023 2023 2023 2023 Total Funds Unrc51rict¢d Funds R¢stri¢t¢d Funds Inian8iblc fixcd assets Tangible fixed assets Current tsS5ets Creditors due wiihin one year Provision for liabililies 79,935 12,749 829.373 (68,589) (94.153) 759,315 79,935 12,749 829.373 (68,589) (94.153) 759,315
THF OPEN SCH(M)L TRUST PAGE 17 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024 NOTES TO THE FINANCIAL STA TEMENTS 16. RELA TED PARTY TRANSACTIONS Ther¢ were no r¢lal¢d party transactions during the year. 17. TRUSTEES EXPENSES During the year. I trustee had travel expenses r¢imbur5ed totalling £72. In the prior year, I trusiee also had their travel exp¢ns¢s reimbursed of £40. 18. RECONCILIA TION OF NET MOVEMENT IN Fi)s TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Nei movemenl in funds Add.. Depreciation Add.. Amortisalion Decrease in stocks Decrease in debtors Incre4se/{decrease) in creditors 35.060 8.014 46,254 1,388 11,905 34,774 137.395 (113,823) 25,318 53,869 3,857 10,211 (47,313) (67.881) 19. PENSIONS The company operates a stakeholder defined contribution pcnsion scheme for the bcnefil of the employeu. The asset$ of the scheme are administered by an indepcndenl pensions provider. Pension payments recogni5¢d 85 an expense during the year amount to £33,945 (2023: £32,156). 20. OTHER COMMITMENTS On 30th June 2024, the charity had loial commitments under non c8nccllable operating ]eS as follows:. Land & Buildings 2024 2023 In less than one year Beiween one and fivc ycars In more than five years 30,000 120,000 60.000 30,000 120,000 90.000 210.000 240,000 The Open School Trusl entered into a 10 year Icase with a 5 year break clause in 2021. The total commitment until the break clause is £60.000 (2023.. £90,000).