Registered numbgr: 01240377 Charfty number: 504913 LINKAGE COMMUNITY TRUST (A company Ilmltad by guarantse) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 LINKAGE COMMUNITY TRUST IA Company Ilmlted by guarantee) CONTENTS Page Reference and administratlve d•talls of the Trust, its Trusto99 and advls8rs Chalmian's statement Tru8t••s' rèport Tru$t••$' responslbllitles Stat¢m¢nt Indopend&nt auditors. report on the flnanclal statements Stat•m•nt of financial activitlos 5-14 15 16-18 19-20 Balance shoot 21-22 Statèmènt of ca8h flows 23 Not￿ to th• flnancial statements 24-63 LINKAGE COMMUNITY TRUST (A company Ilmltsd by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Tiustegs MrA TBake Mr K J Batty lappoinled 30 October 20191 Mr M Bell Professor S F Brown Professor M C Hanney {apptsinled 29 January 20201 Mr S J Hatchman Mrs C JeN5$ Mrs S Kane Ire-8ppoinled 21 October 2020, resigned 3 Novomber 20191 Mr A J Mofgan Ire5igned 30 Dèc8mber 2019) Mr A S Najmaldin {reslgned 29 April 20201 Mr M J Olivor (deceased S March 20211 Mr D Reed lappoinled 29 January 20201 Mf A K Riley (resigned 28 Aprll 20211 Mrs S M Simpson r M A Smith (appointed 28 Apr￿1 20211 Mrs S J Stewart Ireslgn&d 4 October 20191 Company Reglstfjr•d Numb•r 01240377 Charity Reglst•r•d Numbor 504913 RggiBtered Offl¢e Toynton Hall Main Road Toynton All Saint8 Spi15by Lincolnshire PE23 SAE Indèpfjndont Auditors Slreols Audll LLP chartered Ae¢ountant8 & Stalulory Auditor Tower Hous8 Lucy T¢JW8r Stre81 Lincoln LN11XW Bankors Lloyd$ Bank plc Hlgh Street Llncoln LNS 7AP Sollcltors Bridge McFarland 9 Commarket Louth Lin¢oln8hlre LN11 9PY Page 1 LINKAGE COMMUNITY TRUST IA company Ilmtted by guarantee) REFERENCE AND ADMINISTRATIVE DEfAILS OF THE TRUST, ITS TRUSTEES AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Investment Advlsors Ich.. investment manag•ment Ilmlled 1 Henley Way Doddinglon Road Llncoln LN6 3QR Page 2 LINKAGE COMMUNITY TRUST (A company limited by guarant••l CHAIRPERSON'S STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020 The Chalr presents their statement f￿ the year. 1 om very pleased to report another successful yaar for Linkage Community Trust, in spil8 of the trwng ¢ir¢umslances of the COVID-19 pandemlc from Spring 2020. This naturally Saw the cancellation of a number of Showpiece annual events such as the performing arts summer show and grgdualion ceremonlts. However, the resilience of both staff and clients meant that strvlces continued wherever pos8lble and only a small number of isolated cases of COVID-19 ware raported. Th6 Tru81 remalns focussecl on ils wsion that 'People with leaming difficulties and d1sabll￿eS have opportLtnlll8$ and choice. and are supported lo achleve their aspir81ions" and ils misslon'To provide person-cenlrod s8rvlces that enable indivlduals lo develop 8kllls and beh8vrour8 and lo Ilve independent IFves" In a challenging financial environment, Llnkage remains in a sound financlal position and achievod a successful financial result in the period thanks to continued ¢onlrol of costs and efficièn¢y gains. The Trusys Re¥idenlial Care provision served 163 clients. Using technology lo stay conneetsd, a wide range of activEtles have been accessed by the pe¢)ple we support as everyone adapted lo changing way of living. A furthèr 121 clients were supported through the Community Support service. living in the Community in ellher Ih8ir own properti8$ or Ihrou9h Linkage's ongolng partnorshSp with Platform Housing and Local Housing As50cialion8. The Trust b8nefiled from addf(ional govornmenl fundlng the Infection Prevention and Control Fund, whlch helped provide additional Staffing and raduce cross4ile worklng and the use of agency staff. The Adult Skills 8ervice continued to thrive and offered a growing range of opportunlti8s to up lo 75 extemal clients as well 85 to Ils Residential cllenls. This ha5 h8d lo adapt durin9 the pandemic, with activities ￿9*nI$*d into 5ecure'bubhle$' and ￿th opportunltles lor users lo acce88 sessions virtualty. The Employment servic¢ worked wllh ovar 110 local employers. supporting over 50 cllents and learner8 Into Work-based opportunities. The employTnent team has also been engaged in a new Inili*iv• with Lincolnshire County Councll, delivering their Specialist Tailored Employment Partnership (STEP) programme. During the pandemlc, thls swtched to 8 reduced offer, with electroni¢ admce meetinys available lo Linkage clients. Mar¢h 2020 saw Llnkage College Inspected by Otsled. who reported that Llnkage is a 'Good' Colle90 wf(h some Oulslanding features. In a posKive report. Ofsled said that Llnkage 'provides learners with opportunities which are life changing, and sUPPOrt them to achi6v* more than they thought they could.. Llnkage College ended 2020 with 140 learners, a slight reduction on the previous year, bul had lo react lo the fa$lfaGe basls ￿th addllional outreach and Zoom sessions introduced for all residential care homes. are Servlces Care se￿1¢$$ ¢ompri5es Resldenll81 C8r6, Communty Support and Employment Semces. During the period under revi8w Care Services sery$d almost 163 cllenls wSlhln its 23 resldenlial care home¥ and 121 cllents through 115 Community Support sarvice, with other8 benofitling from access to our R&$plte se￿¢0. Communlty Support services supports cllenls in the communty eilh8r in thelr ¢)wn privat8 accommodallon or In managed propertles provlded through our ongoing partnershlp work with Platform Housing (previously Watertool and Local Houslno Authorllles. The last year has seen a limè of drastic change for our ¢are servlces across rèsidential and communlty support 0$ the IrLssI responded to the COVID-19 pand•mlc. Paople within receipt of our Care wll have experlenGed new way8 of receiving their support, such as.. th8 Inlfoductlon of PPE ¢1 011 limos when 8UPPOrt is prowded.. th8 requirement$ for th6 staff who support them to be teslod weekly, and to receive ? lesl monthly themselves.. ever eharsging Govomment guidance has 50en great impact In the cholce and control lor our clients on how they live their lives., not being able lo see or have physical contact wf(h famlly m8mbers and friend$', the Introduction of the concept of 'bubbles' and needing to slay wihin a group of identrfied people in one location.. the opportunities and relalionghlps wtth the local comrnunity have become cut off as 8hop5, local cafes, pubs and other ho8pilalily services have been closed., and cross-site movement of people has also prevenltrd poople wlthin our c8re servic•8 belng able to acces¥ acllmlies provided by our adult Skills c6ntr8s from the main sites in whi¢h we operate. Desplte those Impltcallons. the clients we support and our colleagues who support them hav8 damonslrated On amazlng reslllence In Ihe face of such adver81ty As Gov6rnm•nt guidance ha8 ch8ng&d w8 have maxlmlsed the opportunities for people to be oble to connect with their families and lo provld* activities in person. This has Sèen a variety of focused a¢tNilles dellvered lo each care home bubble, such as walking group. cross country cycling, couch lo 1 k and regular trips lo safe10¢81 8pace8- al limes for only 45 minutas a day. Linkage Care Se[￿CeS has received additional g￿ntS through the Infection Pr8venllon & Control {IPC} fund to $upport its response lo the COVID-19 pandeml P8ge 6 LINKAGE COMMUNITY TRUST (A company limited by guarant¢o1 TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Desplle the challenglng se¢ond half of the year, new processes have continued to be Introduced that have enabled Lts lo be moro r8$ponsSve, more tailored to the needs. wfjshes and vulnerabil¢(ies of the poople Llnkage supports, and to ansure that our clients have the ¥klll8 they need to lead 8 life that l¥ safe and make8 sense to thèm. The Tru8t has continued on its journey ta digltallse SyEtemB and proce838s that wlll dlredly benefit and modeinise the Servi￿ rt prov¢dos for the people we support. which wll enable the Trust lo be as efficient as possible with ils rosources, as well as ensuring that clients have all the accessible technology in place thèy n•8d lo lead an •ngag8d, inleracuve and indepondont life. The Employment Team again worked with over 110 local 8mployers, Supporting over 50 cllonts and leamers lo access opportunitie5 in volunlgering, work experi6nce, community engagement, 8UPPOrtod intemships and p8ld employment. Durlng this year the team h8$ also been engaged in the delivery of the STEP service (Specialist Tailored Employment Partn8r$hipi, which Is a new venture b¢￿een Lincoln8hlre County Council and Linkage Community Trust fully in lune with our own objectives. We have endeavoured lo adhere 10 shifting Govemment guidance. and ar8 maintaining our COMD-$8cure por$on cenlred approach to safely support individuals to retain and resume their employmont, volunteer aGtivilles, work experlence and Intemshlp placement5 wherever possible. Educatlon The 201912020 academic year at tha coll$ge waB unique. The coronaviws pandemlc meant th81 learners enjoyed two terms of normal college life and one term in total lockdown. Just prior to the national lo¢kdown In March 2020 the College wa5 inspected by Ofsted, onè of the final inspections by Ofsled bèfor6 th8 pandemic struck. The college received 8 superb report regaTding f(s provision and the endorsèment by Olsted that Linkage18 a'Good' college with some outstanding feature¥. Ofsled staled in their report, 'Linkag@ provide learners wlh opportunlti$s whlch are16fe changing. ond support them to achieve morè than they thought they could." The monumentsl efforts and resourcefulness of the college's staff teams ensured learners were still engagad, which r$$ulled in an achlevement rate of 84.5%. Despite the pandemic the college's achievement iata was still in Ilne with national averages In a non-pandemlc year which is 8 phenomenal result in the circumstances. This outstanding achievemanl mainlalnad Linkage College's $latLtre In tho lop of specialist Golleges nationally. The collegg'8 rèlenlion rale of ils 140 learners remalnèd high al 96.8QA. The college began the academic year in September 2019 with a n•w, compr8h8nSNe curriculum 81ralogy that was linked directly to curriculum goals. The strategy w88 praised by Ofsted for its wsion, ambltlon and flexibility. However, during March 2020, the implementation of the curriculum changed slgnrfic8ntly due lo the pandemic. Staff had to qui¢kly find a different way of working and effeclfvely tailor the curriculum to ensure that learners could still me81 their leaming objectiv$$. Staff developed bespoke work pa¢ks that mlrrored each individual's timetable as well as introducin9 Vlrtual Sessions. Weekly ¢hall¢nge$ and Interactive acllvilies were introduced 81ong with support hotline5 for learners and parents, leading lo 87% engagement of 16arnors. The weekly challenge ¢ompelition, in lino with weekly themes, was extremely popular. On av8rage there were 2540 enlranls across all campuses and the judging panel of managers regularly chose a number cf wSnn8rs each week, such the standard of1oarr$8r8' woth. Olsl8d stalad In their report.. 'Staff celebrate diver811y, and leamers work well together. respect thelr peer3. gnd have empathy towards each otherfs disabiliti8s.' Health and well-being 8re effectively embedded Into all areas of the curriculum. In Novembèr 2019 a cohort of 25 118%) learners across all campuses participated in a residential trip through the National Ciltzen S8NI¢o. Page 7 LINKAGE COMMUNITYTRUST IA company Ilmlt•d by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Actlvilie8 Included.. abseiling, kart building, rock cllmbing, zip wire, high ropes and arch8ry. Sessions relating to online Safety have 5UPPgrted the inlfoduclion of virtU81 learning environments. In December 2019, Chri¥ Arnold ffom the local police vlslled lo dis¢us5 how to keep safe during dark nights, and Anna WoosleT CEO of Greenio Ltd vislled to discuss climate chang$. All learners a￿ given the Same opportunities and supported to enlar various competitions, such as a Boccla tournament in Lei¢e$ter$hlre, and an Art5 skill$ ¢ompelillon hosted by Landmarks College. A range of continuous Improvement initiatNe5 were undertaken wllh th8 SUPPOrt of the Board in 201912020. Linkage was awarded a £25,000 grant from the Karten Trust to upgrade ICT kil and So￿are for learners. Llnkage also received a gr8nt which helped our Lincoln c8mpus lo purchase IT equipment Bnd provided laptOP8 for staff to work from homo and facililale vlrtual l$•rnlng. The Board held a strategy day in November 2019 which approved plans for the East Riding campus following the presentsllon of a Suitability, Feasibility and Accessibllty report plus risk asse88ment and business plan. The Linkage College East Rkllng campus was made ready to open lo deliver an inttial 5eNice and raise profila from September 2020. Llnkage Outreach Prol8et IS•n$ory Bu8lLibraryl During this year undèr r¢vl8w the Linkage Oulrea¢h Project was created, with a second 9rant from the Nationol Lottery Community Fund Ilonnerly the Big Lott•ry Fund) and a wSder remll. The core remains work delivered on the Sensory Bus whlch during tho year work$d with 22 organisallon$. pr6domlnantly primary schoolg. and 425 chlldren and adults including sessions in 3 nursing hornes, a spe¢lal school and a Children'$ Centre. Most beneficiarie¥ were pupils with special educational needs and the outcomes were.. 970/0 happier 31Qh improved ability to share and interact 46% calmer and better able to sleep 48V/• more independent 16Yo better ¢on¢onlrallon On8 of the most useful aspécts of the work remalns tho beneficSaries' le8chers and carers belng able to observe what those In their care respond to and to lakg away ideas. The Development Workers have advised schools on creating their own Sensory Spac•B. We began delivery of LEG0￿b￿Se￿ therapy lo schools to build team work and co-operation, and was delivered 10 40 Ghlldren working along$id6 teachers or 8Lrpport stsff 50 that tho schools could continue delivery at the end of the session8. Thi$ has been an unqualifled 8uc¢•$8 and very popular with both children and staff. The project also delivered.. Tralnlng d8ys on the bus for 97 IraSnee teachers Bt Bishop Grossel881a Univ8rslty, and for traine8 nursery teachers in Sleaford. D$volullon of the Sensory Library to Rainbow Star8. A link to the Block Bus in Norfolk lo learn from each otherfs work. Pag8 LINKAGE COMMUNITY TRUST IA company limitèd by guarants•l TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Young Future5 Project {Chlldron & Families Development Work•rl The Young Futures Proj8cl, 8UPPOrted by BBC Children In Need. entered its third year of fLtnding. The proje¢t work8 with chlldren across Greater Lincolnshlre, all of whom have special educational needs and disabllili6s. who struggle lo access the same opportunllles In edu¢olion, training. wRhln the community and social aclivf(ie5 a5 their non4i$abled pèérs. Ov8r the last year the Development Worker h8$ ¥UPPOrt8d 75 young people and their familias. Many of the f&mili08 are wtthin the lowest income group and living in poverty so are doubly disadvantaged. and o numb6r of the young people have experienced abuse andlor live in chatslSc circumstances which has Impacted upon Ihelr development. The support offered lo young people and their famlly varles dependlng upon their IndiMdug1 needs. There has been an increase of ref8rrals from parents, c8rers and professionals regarding children who have Autism. ADHD andlor Tou￿tte syndrome. Many are struggling to address and manag6 anxiety, resulllng in th parenvcarer feeling unable to support their child at home or in the comrnunily. The prciecl ha$ gupported parents and schools lo pul Strategies in place which has 8nabled the children to speak out when feeling anxious, and al$0 provide environments whlch have helped to relieve Some of their anxleties. The prq'ect work8 in partnershlp with the Sensory LibrarylLSnkage Outreach Proje¢l, offerSng the Ir>8n of ¥en$ory eqLtlpment lo support relaxation, and lo enable the children to feel more $eGure and confldenL The18vel period of lime the young person is supported is bespoke. and can range from advlco belng glven over the phone lo woekly vlslls to the home or school over several months. Both par8nls and young ￿0p18 stsle that as a dlreGI result ot the Chlldren & Famllles Development Worker's support they are being 'li8len¢d lo.. Following a second Successful application, BBC Chlldr8n In Need have agreed to Gontlnue to fund th8 Prolecl for a further three years. Dlgltall$atlon Th8 obj8clive of th¢ ¢omprehensSve Llnk8ge•wide Fivfj-year Linkage Digital Slrotegy ig lo coordinate and update the many manLtal systems in use across Llnkage used to collate, process and secure essential inlormalion. and become a digitally maturè organisalion. The fuifilmenl of the strategy will not only secuie our systems and dalg against Cyber-attack, bul also increase effi¢iency, allowing more time lo be spent wlth clients and students and lead to significant savings to enhance the financial sustainability of Ihg Trust. It will also embod the crillcally irnportont gdaplallon lo COVID-se¢ure blendod loaining by ￿llkage College by offéflng a Virtual Learning Envlronmonl. Wa have cornpleled the succ8s$ful Implementation of Year 1 of the strategy. This focu3ed on a process review, and the selection and implemenlalion of So￿a￿ $olullon Planday to diive effi¢lenci88 In processes ¥uch a¥ Planning, Schedulin9, Time and Attondanca, TlmeBh8els and Reporting, and has already resuited In signlflcanl cost savings and efficiencies being realised. Supported by a further suc¢e$$ful funding bid. Year 2 planned activity includ88 the primary aims lo eslabllsh thè cyb8rsecurty of sysl8m$ and data.. complete the roll-out of Planday to 500 Linkoge staff.. and lo create B Virtual Learning Environm8nl (VLEI to serve all learners a¢TOSS our college campuses. The VLE wll facilitala the delwery of blended learning la div8rse offei of fac&tO•fo¢6. romole, and vlrtU81 le8¢hlngl lo ensure that we onlinue to deliver a comprehensive learning experlenc8 lo our learners that 1$ engaging and enjoyable a$ well as effective. This will strengthen our COVIO-secure practice qnd also 8UPPOrt and engage188rn&r8 when they cannot attend College. At th8 conclusion of our Flvtryear Dlgrtal Strategy 8 transfomiallonal change thot wll positively impact our clients, learners. parents, staff, partners and stakeholders will have occurred. In Short. the Digital Slrolegy aims to improvè the experience of all those who Gome into contact with Llnkage In any Wdy. Page 9 LINKAGE COMMUNITY TRUST IA company limited by guarant8¢1 TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 GOVERNANCE AND MANAGEMENT Trustees And Dlrectors l The Board and Its Sub-committees Th8 Trust li governed by a Board of Trustees which meets six times a year on a pr&planned ba3is, and more frequendy if required. In addillon the Board has an annual Strategy day and Trustee¥ recoiva flnanclal and other updates between board meeting5. All Trusl8es glva of their lime freely. Trus16es are required lo disclose all relovanl Interests and to wilhdr?w from any decisions where a confllcl of int8r8sl arises. No notice was receSved of any changes to Trustees, interests in the year. In addition lo meeting as a full board, TN8téts alsct contribute lo the governance process through the Care and EmployTnent. Education and Finance Committees. The Trustees who $erv•d th8 Trust durlng the year are Ilsted on page 1 of thls report. Recruitment and Appolntmont of New Trustees Subject always lo the requirements of the law and the Trusfs Article5 of Association, the Board Is empoweffjd 10 appoint as a tru81ee any person who is wlllng to act. either to fill a casual vacancy or by way of an addlllon lo th6 Trustees. Inductlon and Tralning of Trnsteè8 A programme of induction and dev8loprnent has been avallable to all the Truste&$. coverlng all the mgin feElure¥ of th¢ Trust's activities and the duties and responsibilities of Trust888. In 8ddlllon most meeting$ of the Board are preceded by a Trustee Devoloprnenl Session, where pr8s8nlatlons arg made to th8 Truslpes on varlous aspects of the Trust's acllvities and on developments in the environment in which the Trust OP8ralgs. Organl8atlonal Structure Responsibilty for each major area of activtty IC3re. Edu¢atlon and Flnancel Is delegated lo what Llnkage Ibul not Companies Housal describes 05 8 'Dir8Ctorf, each of whom reports lo the Chl•f ExecutSve. The Chlef Executive and the Directors mako up the Senior Management Team ISMTI, which reports regularly and roullnelyto the Board of Tru8te*s. Romunèratlon ol Key Manag•ment Personnel The remuneration of key management personnel is revtthed on an annual b951s by the Finance Committee. Wld&r Networks Memborshlp Th8 Trust is a full member of the A880clallon of College¥ (providing an umbrella over the entire FE sector), the Association for Rèal Change Iprovidlng an umbrella over the care sector}, the British Association for Supported Employment, the National As80¢ialion for Special Educational N60ds. the Nation81 Association of Specialist Further Education Colleyes. tho National Council of Voluntary Organisations. Volunlory Organisalion8 Disability Group and the Llncolnshire Chamber of Commerca. Key Stakeholdor8 Other organl$allon6 w5th whSch the Trust works closely include the Education and Skills Funding Agency, local authority Social Services and other departments. varlou$ inspecllon regimes (especially Ofsted and the Care Qualty Commi88ionl and a number of quality 0s8urance ¢rganisaUons (such as Inv6slor8 In People). Working In Partnerdhlp Both fomially and informally, the Trust work8 closely and collaboratively with a wide range of other servlGe providers, including mainstream and specialist FE colleg•s, housing asSOCtalions, local aulhoii118s, other care providers and local èmployers, both IndI￿duallY and through a variety of professional networks. Risk Management The Trustees ara satisfied that adequate $ystem8 are In place to identify 8nd manage those rt$k$ to which the Trust Is from time lo lime exposed. Pag8 10 LINKAGE COMMUNITY TRUST IA company Ilmlt8d by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 External Risks The fundlng of further education for those wllh a le8ming disability has been In a stale of flux fof a number of y¢ars. The funcllons of the Le$ming and Skllls Council were transferred lo the Young Persons Léarning Agency IYPLA"} in April 2010 and thon to the Education &nd Sklll8 Funding Agency in April 2012. In 2011 the allocation of funds from YPLA was largely tr8n8f8rr¢d lo local authorities ond in 2013 funding of general and indepertdenl speciallsl further education changed again wth local aulhori11gs gainlng greater powo18, although broadly putting the funding of general and independent speciallst further education ¢oll¢ges on a very similar ba81S. Potential students, particularly from outside Llncolnshire, are finding il incr8asingly dllficull to oblaln fundlng, esp6clally for ￿SIdential placemonls and for tuition on more than three days per week. Those who $ecur8 fundlng for a pl8C¢ 81 the Trust's college are lendSng to present with more complax needs and require significant levels of support. To addre$s Ihls issue the college is impl6menllng and will continue to seek more flexible models of staff employment. Costs continue to rise throughout thè Tru51, due to inflation. increas85 in the minimum wage and the Nallonal Living Wage. but, In past years, income has nat matched that, with very few commissioners agraaing lo incr8as8s In fees, and Indèed wllh decllne In aver8ge Collego fees. The Trust continues lo make efficiency gains. Th• Trust Is required to operate within a fagulalory environment that Is also conllnually changlng. For these reasons and others. strategic plans have been Tevwed, and il is th• Trust's intenllon lo pormil and en¢ourage the diversifi¢81ion of each of the Trust's CQTe services (Education, Care and Employmenll, lo take those s8rvices 'oul of county, and to provlde opportunities for the generation of non-feè based income through targeted fundin9 and fundraising campalgns. Internal Risks The Board always ensures Ihal the charbty has strong 'conlrol procedures, In place lo safeguard 11$ &$sels. Al a gov¢rnance level. these Include a formal programme of Iruslee Induction and devolopment, bl-monthly board rn88tings, the inclusion of 'standing items, on each board meeting's egenda lincludlng equality and diversity, health and safély, saf8guardlng and legal complianGel. a formal review of board informatson needs and the committee structure which pÈrmil8 Increased delegallon of board-level scrullny. Flnanclal Rl8k Financial r18k is minimised by the strict adherence to policies and of procedures govainlng all aspects of rinancial manag¢m6nl. These policres and procedures are regularfy and roulinaly reviewed to ensure that Ih•y continue lo meet the needs of tho Trust. Risk A$$esgmont The Board has adopted a corporala risk managemont framwork that enables the Trustses lo monitor the status of identified risks lo the TnJ51, to be assured that suitable plans and provi$lon$ are made by management and to be assocSaled regularly and roulinaly with the production of a corporala riBk roglster. GIv8n tho vulnerable nature of the Trusfs $ervlco users, r(sk assessment is an integral part of the day-104ay activity of many staff and managar$.11 Is the higher level, str•t&gl¢ risk analysls that 15 the Current locus of the Board of Tiuslaes and the Senior Management Team. Publlc 8en?flt Reporting When revrewing the Trust's objectives and aims and in planning fLtture activities. th¢ Trustees confSrm that they have complied with relevant legi51alion and have paid due regard lo guidanc8 published by th¢ Charlty C¢)mmlsslon. The Trustees have referred to the guidance and have aimed 10 5umm3ris8 the aclivili85 in this r•port and lo demon$lral8 that they have helped further the TNsV8 Bim$ and objectivès as detailed above. Page 11 UNKAGE COMMUNITY TRUST IA ¢ompany Ilmltod by guaranto•1 TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2020 LINKAGE STAFF Malor Achlevements The staff al Linkage remalns rt$ groale8t asset. Th•ir commitment lo tha education. care and welfare of the Trust's clients has remained ¢onsi5tenlly high. Year on yeer, the achlevemenls of all the staff are reflected in personal targets and reviewad in annual appralsals. Perfomiance ogainsl targets built into each divi$ion' operallng plan is also monitored routinèly and revi8wed annually. Durlng the period under review. th8 Trust's care services contlnued lo obtain consislenlly high grades from the Care Qualrty Commission and the Linkage College Ofsled maintained ils rating of 'Good' w(Lh outstanding 8lemenls' in Ils last inspection. Employ88 Involvgment and Staff Development Linkage has po$se8sed Invè$lor in People IIIPI status ¥lncg November 1995, and was su¢¢es$fully re-89s088ed In 2017. The Trust's commitment lo training and development 1$ considerable and seeks both lo enhance the quality of its work and lo maintain its enviable market position. Various mesn$ are employed lo ensure that staff al all l&vels and al all 611es are infomied of and able lo contribute lo developments oc¢urring acro$$ the org8nis81ion. Although there is no formal trade unlon Involvement, a knnkagevwlde consult¥livo body, the Staff Repre5enlalivgs Group, has actively assisted the Trust during recont reslruclure inilialives. Dlsabled Person¥ The Trust's policylg lo give full and fair consideration lo applications for employment made by disabled persons having regard to Ihelr particular apliludes and 8bililies. Disabled employeès receive appropriate training tc* facililala and encourag6 career development. Employees who become disabled are retained Sn their existing posts where possible or retrained for sultable allernalive p05ts. The Trust continues ID use and dèvelop commitment to Ihe'kn li¢k8' disability symbol promoted by the Department for Work and Pension$. FUTURE DEVELOPMENTS StratO9lc Plannlng The strategic plan is revised annLtally and r¢-¥ubmitted to the Board of Truste88 for amendment and l or approval. Thls was the fourth year of implemenllng the five year plan covering the period from 2016 10 2021. The plan outlines tha joumey for the naxi five year$ and sets out cloarfy the Trust's vision, miBsion and values. and the gclions the Trust will lake to achieve ils obleclives. Koy ObJectlvè8 The plan $$1$ out the Trust vl$lon- 'People w71h leamlng difficulties and disabllll¢$ have opportunities and choice and arè supported to achleve their aspirallons,. The Tru$l's m188bn'. To provide person ¢8ntfed 8ervi¢as that enable indlvlduals to develop 8klllB and behavlour6 to Ilve Indeperident The pl8n 8Ots three priorities., Prlority 1.. Puttlng People First- Linkage will focus on hèlplng the people It 8UPPOrt$ live the life they choose. Priority 2- Working Tog8lher- Llnkage w511 ft)cus on worklng collaboratively with other organisallons. agencie8 and experts lo off8r a lange of solutions for peopl8, their f8milies and carer5. Paga 12 LINKAGE COMMUNITY TRUST IA company lim5ted by guarantee) TRUSTEES. REPORT (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Prlodly 3.. Growing our BLFsin•ss - Llnkage will develop focu8 on d8livering more $ervl¢¢8 for more people. whether they need a lol of 8UPPOrt. or just occgsionalEy. FINANCIAL REVIEW Summary of the Results for 31 August 2020 D88pile continuing to face significant financial pres8ur88. thè r8slrucluring over recent poriods In addition lo tSghl control of costs have enabled the Trust to record an operating surplus for tho ygar before revaluations of £270.461 {2019.' £422,654). The results for th• ￿¥r further Include the ¢ffect8 of the propety revaluatlons and the actu?rial movement on the Tiusl's defined benefit P6nsion 8¢hem8. Qverall. the 8¢¢0unts show a net po¥f(ive movement of funds of £292,63212019.' £267,199). R•$ervg8 Policy The Board of Tru$le8$ ha8 revlewed re¥erves pollcy and re-examined the Tru$l'8 requirements for free reserves in light of both the predominant risks lo the Trust and its need for worklng capital. In completing this review Trustees analysed oxi81ing funds, assessed the rèliability of fuluie income slregms, reviewed committed expenditure and the extent lo which it is controllable and assessed the rlsk. to Idfrntrfy polent181 commitments and contingoncies. together wf(h the likèlihood that these risk8 wlll malerialise and give rlse to new eommllments. Thi¥ assessment placèd the minimum roquir8m6nl of fra8 reserves at £1.5million. As al 31 August 2020, free reserves wère £2,501,099 12019.. £2,453,385) based upgn calculations whl¢h excludè th$ unr8alised pension liabllity. Prlnclpal Fundlng Sources Tho Trust'8 principal funding source has always been the publlc purB8.' various 8gen¢l¢s of govemmenl funding (t5 education and care services. In recent years, Linkage College has b86n fund8d by a succe$$ion of national fundbng agencies. m¢yJt recently, the Education ond Skills Funding Agency, bul now with decision maklng and an importgnt element of funding devolved lo local authorities. Funding ol Linkagè's care seNces continues lo be d$liverod by local authority $o¢ial service departments. Funds in Deficit The Trustees are not awere of any funds boing overspent. AB the balanee shoot Illustrat85, the Trust has assets whl¢h are sufficlelll to meet the Trust's obllgalions on g fund by fund basis. It is also worth noting that budgetary Controls are in pla¢e which do not petmit funds to go into deficll. Fundral$lng Actlvltles For most of ts history, lh8 Trust has been oble lo roly upon fee Inc¢)me from aclivllle8. In recent ye8r¥. howe￿1, il has becom& Increasingty clegr that, if the Trust wishes lo maintain Ils pur6uII of excellence and lo benefit from opportunitie3 to explore new markets and test new servicès, 11 wll n89d to d8V8lop a non-fee based in¢ome stream. For thls reason, tt h8s embarked upon a fundralsing campaign. Invostmgnt Poll¢y and ObJeGtlves The Tiusl8es' inv8Stm@nt powers are pres¢rlbed Sn the Tru$t'8 Articl08 of Association. The Trusteas are permitted to invest any monies of the Trust not Immediately required lor Its purpose In or upon ¥uch investments, securities or propety as the management committee shall think fil and Is allowed by law. During tho year under review, the Trust's investment portfolio that was managèd by J M Finn & Co wa$ Iransfeffed lo a new portftjlio mgnaged bylch.. m8nagement services limited. Intérnal and External Factors The Trustees have mad8 a full assessment of thè Intemal and extemal factors that may affeGt theso financlal statements and do not deem any factors malarial enough lo h8V8 an Impact. Page 13 LINKAGE COMMUNITY TRUST (A company limlted by guaMnto•1 TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Fund$ hold a$ Custodlan for Others Includ8d in credf(or balances is £381,512 12019.. £385,156) due to students and resldents In re$pe¢t of moniès held on their behalf in bank accounts in the Trust's name. This amount is al80 included In th¢ figure for Gash at bank and In hand on the balance she21. Approved by 25 May 2021 order of the members the Board of and slgnad on thelr behaw by.. Trustses on Mrs S M Slmpson Page 14 LINKAGE COMMUNITY TRUST IA company Ilmited by guaranto81 STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2020 The Trustees {who are also the dlreclor8 of the Tnjst for the purposos of company lawl ore respon8ibl8 for preparing the Truslee8' report including the Slr81egl¢ report and the fin8nGi21 slalemenls in accordance with applicable law and Unlt8d Kingdom Accounting Standards {Unlted Klngdom Gènerally Accepted Accounting Praclicel. Compony law raquires the Trustees to prepare flnan¢ial slataments for each financial . Under company law. the Truslegs musl not approve the financial slalemenls unless they are 58tisfiod that they give a true and fair vt8W of the slate of affairs of the Trust and of Sls Incoming resources and appI￿allOn of resources, including Its income and expandilurg, for that perlod. In p￿parIng these flnancial s18lemenl8, the Trustees are required to, 801ecl 8ullable accounting policies and then apply them consistently,, obsetve the methods and principles of the Charfll8s SORP IFRS 102},' make judgm8nls and a¢counling eskn'males that •10 reasonable and prudent-, slate whether appll¢abl6 UK Accounllng Standards {FRS 1021 have been followed, subject to any material departures disclosed and explained in the financial stalemenl¥', prepar8 the financial statements on th8 golng conGgrn basis unl888 il 18 Inappiopliale to presume that th• Trust wll ¢onlinu6 In busin8ss. The Trustees 8re responsible for keeping ad2quale accountin9 records that are sufficient to show and explaln the Tru$l's Iransacllons and dlsclose with reasonable accvracy at any time the financial poslllon of the Trust and enabltr thom to ensuie th81 the financial statements comply with the Companies Act 2006. They are also rosponsible for safeguarding tho assets of the Trust and hence for taking reasonable steps for th• provenlion and detection of fraud and other irr8gularilies. Approved by order the members th8 Boafd and Eigned on ts behalf by.. Tru$leoS on Mr¥ S M Slmpson 02 Page 15 LINKAGE COMMUNITY TRUST IA company Ilmltod by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LINKAGE COMMUNITY TRUST Oplnion We have audlted the flnancial $tslements of Llnkage Community Trust Ilhe Irust'l for the year ended 31 Augugt 2020 which comprise the Slalement of fln8ncial 8cliMtlg8, the Balance sheet, the Statement of cash flows and the related notes, Including a summary of significant accounting policies, The financlal reporting frgmework that has been applied in their preparation Is applicable law 8nd Unlled Klngdom AccDunting Standards, Including Financial Reporting Standaid 102 'The Financial Reportlng Standard applicabl¢ in th6 UK and Republic of Ireland. (United Kln9dom Generally Accepted Accounting Practice). In OYT opinSon the finan¢lal $lat•menl8'. give a true and falr Mew of the state of the chorltablo compan￿6 affalrs 88 al 31 Au9USt 2020 and of its incoming Tosources and appli¢alion of resource$. Including Its Sncome and expenditure for the year then onded., have been properfy prepared in accordance with United Kingdom G8n8rally Accepted Accountlng Practice., and have been prepared In accordanc8 wlth the requirements of the Companles Acl 2006. Bas18 for oplnion We conducted our aud6t In accordance ¥￿th Intemalional Standards on Auditing IUKI IISAS IUKII and 8pplicabl8 law. Our r8sponsibililies under thos6 stsn¢Jards are further described in the Audltols, respon5ibililies for the audit of the financtal slalements section of our report. We are independent of the Gharilable company in accordance with the ethical requirements that are relevant lo our audll of the financial statsmenls Sn the Un((ed Kingdom, including the Flriancial Reporting Councll's Ethical Standard, and we have fulfilled our other ethical responsibilities in 8¢wrdance with these requirements. W¢ bolieve that the audit evidence we havo obtained is sufficient and appropdate lo provlde a ba$is for our oplnlon. Conclusion$ relatlng to golng c¢ncgrn We have nothlng lo report in respect of the follo￿n9 matters in relation lo whl¢h the ISAS IUKI requlre Lts lo report lo you where.. th8 Truste68' use of tho going cancern basls of a¢¢ounllng In the preparation of the financlal slalements 16 not approprialo., or the Trustees h8ve not disclosed In the financial statements any identlfled material uncertainties that may cast slgnificant doubt about the charitablè company's ability to continué lo adopt the golng con¢¢rn ba818 of accounting for a period of at least ￿1ve months ffom the dale when the financlal 8tatemenls are authorised for188U•. Page 18 LINKAGE COMMUNITY TRUST IA company Ilmltod by guarante81 INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LINKAGE COMMUNITY TRUST ICONTINUEDI Other information The TNstees are re5ponslble for the other Inforniation. Tho other Infomallon comprises the information Included in the Annual report. other than th¢ financlal slal8menls and our Audilor5' report Iheregn. Our opinion on the financial slalèm8nls do8s not COV8r the other information 8nd, excèpt lo the extent othèNSse expllcllly slalad In our rèport, we do not express any form ol assurance conclusion Ihortron. In connection with our oudf( of tho financial 8tattrmenls. our responsibility is lo read the olhei information and, in doing $0, ¢onslder whether the other Infomalion is materiolly Inconsislenl with the flnanclal ¥lalemenls or our know18dge obtained in the audit or otherwise appears lo be materially m565taled. If we identify such material inconsistencies or apparent material mis$lal8m8ntS, W8 ar8 required lo determine whèther there is a maledal misslalemenl In the financial slalemenls or a material misslalemenl of th¢ other Information. If, based on the work we have performed, we concludo that thero is a malorial misstal8m8nt of this other infomalion. we are required to report that fact. We have nolhlng to feport In thls reg8rd. Oplnlon on othor mattors pM8crlb•d by thè Companies Act 2006 In our opinion, based on the work undertaken in th? course of the audll.. the information given in the Tiu$lo08' roport including the SlralegSc report for the flnan¢lal year for whlch the financial statements are prepared is consislenl with the flnancial slalements. the Truste8s' report and the Strategic report have been prepared in accordance wkh applicable legal requirements. Matters on whlch we aro roqulrad to roport by exceptlon In the light of our knowledge and underslandlng of the charllablo company and rt8 environment oblalned in the course of the audit, we have not identified material mlts$lalgmenl$ Sn the TTUStees' report Includlng the Stroteyl¢ report. We have nothing lo report In respect of the following matters In relation to which Companies Act 2006 requires us to report lo you If, In our oplnS0n-. adequate accounting r8cords hav8 not begn kept, or returns adequate for Ouf audll havè not been received from bran¢ho$ not visil8d by us., or the finan¢lal $latemenl$ are not In agTeement wllh the accounting record5 and relurn8', or certain disclosures of Trusleas, r•muneralion specrfied by law are not made., or we have not ie¢eNed 011 the infofmalion and explanations ￿ raquira for our audit. Page 17 LINKAGE COMMUNITY TRUST {A company Ilmlted by guaranto01 INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UNKAGE COMMUNITY TRUST (CONTINUED) ResponslbSlltles of trustees As 8xplain8d mor8 fully in th8 Trus188s' responslbllities slalement. the Trustees (who ore 8180 the dlrectors of the charitable company for the purposes of company lawl are responsible for the pr6paralion of th8 financial stslements and for b¢ing 9alisfied that they give a true and fair view, and for such intemal control as the Trustees detemilne Ss necessary to enable the preparation of financial statements that are free from malorial ml8St8tement. whether due lo fr8ud or eryor. In preparing tho flnan¢lal slatomonl$, th• Trustees are responslble for assessina the ¢haritsble ¢ompanY8 ability to continue as a going concern, disclosing, as applicable, matters related to going conc6rn and uslng tho going concern basis ot accounting ursless th¢ Trusleas ailher intend to Ilquidata the charitable Gompany or lo cease operations, or have no realigtic allernalive but lo do so. Audltors, responslbllltl8$ for the audlt ol tho flnanelal statomonts Our objectives ara to obtain roasonable assurance about whglher the financial statements Ss a whol¢ ore free from material misstatement, whether due to fraud or ¢rror, and lo issue an Auditors, feport that Includ8s our opinion. Reasonable assurance is a high lavel of assuranca, but Is not a guarantee that an audit conducted in accordance wth ISA8 IUKI w511 always delecl a m8teri81 misstatement when il exists. Mi5ststemenls c8n arise from fraud or error and are considered material If, Indlvidually or In the aggregate, they could reasonably be expected lo Influence tho 6conoml¢ declslons of user6 taken on the basls of these fln8nclal statements. A further descrfption of our respon5ibililies for the audit of the financial statements 1$ located on thè Flnanclal Reportin9 Councifs website at.. .or .uklauditorsres onslbllllles. Thls dèscription fom15 part of our Auditors. report. Use ofour report This roport18 made solely to the charitable company's members, 85 a body, in accordance with Chapl8r 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the horitable compan18 m8mber8 those matter8 we aro required to slate to them in an Audilor5' report and for no other purpose. To the fullest extent permitied by law. we do not 8c¢epl or a¥¥ume responsibility to anyone other than the charitable company and Ils members. as a body. for our audit work, for this report, or for the opinion8 we have fomied. Robort Anderson (Senlor statutory audltorl for and on behalf of Stretts Audit LLP Chgrtered Accounlanls & Stalulory Auditor Tower House Lucy Tower Str••t LlnGoln LN1 1XW Date.. 25 May 2021 Page 18 LINKAGE COMMUNITY TRUST {A company Ilmltsd by guaranttel STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020 Ro$trl¢led fund¥s 2020 Unrnstrlctsd lund$ 2020 Total fund$ 2020 Total funds 2019 Not• Income from: Donations, grants and legacies., Donations Grants Charitable a¢livilie6 Other trading aGlévitt86 Invèslmenls 9,286 438,203 9.339 438,203 14,606,448 43,619 2,880 18,303 323, 792 14,352. 758 48, 733 3,271 14.506.448 40,202 2,880 3.417 Total Income Exp&ndlture on: Ra181ng fund5-. Expenditure of voluntsry income Fundraising expenses Charitable odivilies Other expenditure 450,905 14,649,584 15,000,489 14, 746,857 10 474,344 474.344 61,318 14,069,499 113,697 399,583 62.037 14, 164,264 (230,533) 61,318 14,069,499 113,697 11 13 Total expendltur• 474,344 14,244,514 14,718,868 14,395,351 Net {expenditure}lincome before not Ilossesllgalns on Investments Net11055esllgains on inveslmenl8 123,4391 305.070 281,631 111,1701 351,506 111,1701 71,148 Nèt movement in funds befor• othor recognl$ed galnsll1055esl Othor r•cognl8•d gainsl{IossesI: Gains on revaluation of fixed assets Acluarlal gainslllossesl on defin benefit pension schem88 123A39) 293,900 270.461 422,654 305.000 31 22,171 22.171 (460,455) N•t movement in funds 23.4391 316.071 292,632 267, 199 Page19 LINKAGE COMMUNITY TRUST {A company Ilmlted by guarant981 STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2020 R•strlcted funds 2020 Unregtrlctod funds 2020 Total lunds 2020 Total rund8 2019 R8conclllatlon of funds: Total funds brought forward Nd movement In funds 3.262.828 123.4391 16,505,970 316,071 19,788,798 292,632 19,50Y,599 287,199 Total funds ¢•rrlgd fop•vard 3,239,389 16,822,041 20,061,430 19, 768, 798 The Statefflent of financial aclivlll8s includes all gains and losses recognlsed In the year. Th¢ notes on pages 24 to 53 Iofm part of these financial slalemènls. Pago 20 LINKAGE COMMUNITY TRUST IA company Ilmited by guarante•l REGISTERED NUMBER.. 01240377 BALANGE SHEET AS AT 31 AUGUST 2020 2020 2Q19 Nots Flx•d as$ets Tanglble assets 17 19,571,116 19.564,404 19,571,116 19,564,404 Curr8nt a$$ots Debtors Inve$lm6nl$ C8sh at bank and in hand 2,059,244 2,161.799 1,374,872 1.919,335 2.174,291 579, 193 20 5,595,715 4.672.879 Creditors-. amounts falling due within one year 21 {2,938,OS81 (2.040,75Q) Not GUTrent asset$ 2,667,867 2.626,069 Total ass8t$1o$$ current Ilabllltlo$ Ciedilor¥,' amount8 falling due after more than ono year 22,228,773 22,190,473 22 11,283,343) (1.41fj.fj75) Net assets excludlng penslon Ilablllty Defined benefil pension Scheme liability 20,945,430 1884,0001 20, 773, 798 (1,005,OOOJ 31 Total assets 20,061,430 19, 768,798 Page 21 LINKAGE COMMUNITY TRUST IA company limlted by guaranto01 REGISTERED NUMBER: 01240377 BALANCE SHEET ICONTINUED} AS AT 31 AUGUST 2020 2020 2019 Not• Charlty funds R8slrlclgd funds Unr8Stricted funds 23 3.239.389 3,262,828 Designated funds General funds Revaluation reseNe 23 23 144,000 12.924,070 4,637,971 144,000 12, 728,999 4.637,971 Unrestricted funds 8xclLFding pension a$8et Pension res8rv8 23 23 17.706.041 {884,000} qT,5tO.970 (1,005,000) Total unreslricted fund8 23 16.822.041 78.505.970 Total funds 20,061 A30 79,768, 798 The Trustees acknowledgg their responsibllilies for ¢omplwng with the requirements of the Act with respect to accounting records and preparation of finan¢Sal slalemenls. The financial statements were approved and aulhorfs8d for Issue by tho Trustees on 25 May 2021 and signed on Ih8ir b6hall by.. MrsSMSI pson The notes on page8 24 10 53 form part of these financial statements. G•noral funds analy818 2020 2019 Amounts Invested in Land and Buildings Lo8n5 Secured on Prop8ty Free Reserves 11,839,646 11,825,621 {1,416,6751 {1.550.007) 2,501,099 2,453.385 12.924.070 12, 728,999 Page 22 LINKAGE COMMUNITY TRUST IA comp•ny limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 a8h flows from operatlng a¢tlvStlo8 N&1 cash used In oper81ing 8clivilie5 980,431 (454.095) Cash flows from Investlng actlvltl•s Proceeds from the sale of tangible fixed assets Purchase of tangible fixed 088Ots 500 185,508 152,1201 (344,786J Nat cA$h u*ed in investing actlvltles 151.6201 1169,2581 Ca¥h flowB from financlng actlvltlos Ropayments of borrowlng 1133,3321 (66,666) Net cash used In flnanclng actlvltles 1133.3321 {66,6661 Change in cash and Cash •qulv41onts in the year Cash and cash equivalents al thg bfrglnning of the year 795,479 579,193 1680.0191 1,259,212 C￿h and cash equlvalgnts at the ènd of the yoar 1.374.672 579,193 The note3 on pages 24 ts 53 form part of these financial slatemenl8 Paga 23 LINKAGE COMMUNITY TRUST (A company limited by guarants¢l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 General inforniatlon The Trust Is a company limited by guarantee. The members af the company are thè Trustees named on page 1. In the event of the Trust belng wound up, the liability in respect of the guarantee is limited to £1 per member of the Trust. The Trust's registered offi¢é 1$ Toynton Hall, Main Road, Toynton All Saint8, Spllsby. Lineolnjhire, PE23 SAE. Accounllng poll¢lè8 2.1 Ba$18 of preparation of flnan¢lal statements The financial stalemgnts have been prepared In ac￿rdance wrth the Chaiilie¥ SORP IFRS 1021 Accountlng and Reporting by Charftie$.' Slatèmont of Recommended Pra¢ti¢e applicable to char(tie5 preparing their gccoun18 in accordanco Imth the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable In the UK and Republrc of Ireland IFRS 102) and the Companies Act 2008. Linkage Communlty Trust meets the definttion of a publlc benefrt entity under FRS 102. Assets and liabilillès ar8 initially iecognised 01 hi$lori¢al GQSt or transaction value unless olherwlse stated in the relevant accounting policy. 2.2 Con8olldation Those finan¢lal slalements represent the figur0$ of the Trust only. Consolidated financial slal8menls havé not been prepared on the basis that the sub8ldi8ry ¢omp8ny 1$ not matertal lo the fin8n¢ipl statements. 2.3 Income All incomg Is recognised once the Trust has enlill&menl lo the income, il is probable that tho Irkcoma will b& received and the amount of income receivable can be measured reliably. Grants are included in the Stslemenl of finan¢lal activ￿leS on a recelvabl6 basls. The balance of Income received for Sp￿}rie purposes but not expended during thé por(od is Shown in the rel$vanl funds on th• Balance sheet. Where income is roceived In advancg of entitlement of ro¢glpl, Sts r6cognilion is defeTred and includod in cradilors a5 deferred income. Wh8r8 entitl8m8nl occurs before Income 1$ recoivad, the Income 18 accrued. 0th8r Incomg is recogni$ed in th& porlod In whlGh It Ss recefv8ble and to tha extent the goods have been provided or on complètlon of th8 service. Page 24 LINKAGE COMMUNITY TRUST IA company Ilmltod by guarant89) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting pollclos (continued) 2.4 Expenditure Expendllui8 18 recogniged once there 18 a leg81 or constructwe oblig8lion lo transfèr gconomic bènefit to a third p8ty, 11 Is probable th81 a transfer of economic beneflts will be required in setdement and th¢ amount af the obligallon can be measured reliably. Expenditure on raising funds includes all expenditurg incurred by th$ Trust to raise funds for its charitable purposes and includes the dired costs incurred in relation lo restricted voluntary Income re¢elved. Expenditure on charitable acllvllies Is Incurretl on undertaking the activities which further the Tru5Vs objecllvès. Expenditure is ¢la$sifi8d by aCtl￿ty. The costs of each artivty are mado up of the total of direct costs and an allocation of a corporate overhead. All expenditure is inclusive of irrecovèrable VAT. 2.5 Interost ro¢olvablo Interest on funds held on d8posII is inclL¢d8d when receivable and the amount can be measured reliably by the Trust., thi5 is normalty upon notification of the inl•resl paid or payable by the Inslilulion with whom the fund¥ are deposited. 2.6 Tanglbl8 flxed assets and d•proclatlon Tangible fixed ass81s costing £2,500 or more are capilallsed 8nd recogn18ed when future economic benefits are probable and the cost or valué of the asset Can be measured Tellably. Freehold Property 18 Initially recognised al cost. After recognition, undèr the revaluation model, tangibl$ flxod assets whose fair value can be megsured reliably shall be carried al a revalued amount. being Ihglr falr value at the dale of revaluation less any subsequent accumulalfjd depreciation and subsequent accumulated Impairmerrt losse8. Revaluations aro mada sufficient regularity to gnsLtre that the ¢8rrylng am(yJnt doe¥ not differ materially from that which w)uld bo delemiin8d using fair value at th• end of the reporting date. Fair values are dolormSned from markel-ba¥od evldonce by appraisal that Is nomialty untl8rtak¢n by professionally qualified valLter$. If there Is no market-b88ed evidence of fair value because of the speclalised nature of the langlble fixed asset and il Is rarely sold. except as part of a contributing business, a Trust may n8gd lo eslirnale falr value uslng an Incomo or depreciated replacement cost approach. Galns and losse8 on revaluolion are recognised in the Slalemant of financial ad¢￿1(•8, wRh $$parate revaluation roserve belng shown in the Statement of fund5 note. Other langlbl8 fix8d gssels are inlllalty recognlsed 8t ¢o$l. After recognition, undor the cost model, tangible fixed assets arts m8aBured at cost les$ accumulated deprecL41ion and any o¢cumulaled impaiTmenl losses. All costs incurred lo bring a tangible fix6d 868et Into Its Intendod working eondition should be included in the measurement of cost. Page 26 LINKAGE COMMUNITY TRUST (A company IlmEt•d by guardnteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting pollclas Icontlnuedl 2.6 Tanglble fixed assets and depr•clation {continuodl D&prgcSallon Is ch8rged so 8$ to allocate the c05t of tsngible fixed assets less their residual valuo OV8r their estimated u$¢ful Ilves. Oepreclatlon is provided on the followlng baBes.' Fre&hold Property Leasehold Property Movable Bulldings Motor Vèhlcles Fixture6 and Fitting8 no depreclalion- see below over the remaining lea88 term 51roighl line over 10 years slraighl line over 4 years 6traighl line over 3 ￿ar3 Freehold Property is rkol depreciated on tha grounds of immaterialily. Freehold Propety Is subject to régular maintenance and repair SLtch that in the Truste$s opinion the residual value 1$ not materlally different from the value In the financial slatemonls and ha5 a long useful econornic life. The Trustees consider the need for impairment at each period end. A rewew for impaimanl of a fixed asset is carried out If events or changes In circL¢mstances indicate Ih?I th? carrying value of any fixed asset may not be recoverable. Shortfalls between the ¢arrying value of fixed 855els and Ihelr recoverable amounts are recognSs8d as impairments. Impairment losses S￿ re¢ognised In the Statement of financial aclivilies. 2.7 Dèbtors Tr?de and other debtor5 are recognised at th8 se￿@ment Bmounl aft¢r any trade dls¢ount offered. Prepayments gre valued al the amount prepaid net of any trad• dlscounls due. 2.8 Currènt asset Investment$ Investments aro a form of financlal In$lrum6nl and are initially recognised al thelr Iran5HCtion cost and subsequenuy measured al falr value al the balance $hetsl dale, unle8s feir value cannot be measured reliabily in which case il is measured al co$1 less impaSrment. Inv6$lmenl 9ain5 and 103¥es, whether realised or unrealised, are comblned and shown in the headlng 'Gainslllos$e$l on Inveslmenls, in the Slalemenl of Financial AGtiviLies. 2.9 Cash at bank and In hand Cash al bank and In hand includes ¢ash and short-tem hlghly Ilquid Investments wlh a short malurfty of three months or less from the dale of acqui$ilion or opening of the deposit or slmllar account. Paga 26 LINKAGE COMMUNITY TRUST (A company Ilmlt•d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting pollcl¢s {¢ontlnuedl 2.10 Llabllltles Ligbilili¢¥ and provi81ons are re¢ognis¢d wh¢n tharè Is an obligation at the Balan¢é ghe81 dale a8 8 result of a past event. il is PTobable that 8 transfer of economic benefit wlll be required in settlem8nt. and the amount of th6 settlement Gan be e¥lim8led reliably. Liabllltlas are recognised at the amount that the Trust anlicip*e$11 w(11 pay to settle the debt or the amount il has recoived as advanced payments for th8 goods or $8rvices11 musl provid6. Prové8lon8 are measured at the best esllmate of the amounts requlred to s•tt18 the obligation. Whor• the effect of the Ilme value of money l¥ material, the provlsion is based on the present value of those amounts, dl$¢ounled at the pre-tsx ¢Jlscounl rate that reflects the risks 8pecific lo the liability. The unwinding of the discoltnl 1$ r¢¢ognised in the Slalemenl of fln&ncSal activities as a finance cost. 2.11 Flnanclal Instruments The Trust only has financlal 8S5ets and fin8ncial liabllitles of a kind th* qualify as baslc financial inslrum¢nls. Basic financlal in$lrumonls are Initially reGognised al Iiansaclion value and subsequ8nlly measured al Ih65r settlement value with Iho oxceptSon of bank loans which are subsequently measured at amortised cost using the offeGlSve Interest method. 2.12 Operating leases Rental$ pald under operating leases are Cha￿ed to the Statement of financial acllvilies on a slraighl Iln6 basis over the le4se term. 2.13 P•nslon$ The Trust operates a defined conlfibulion pension schame and the pension chorgg r•pr8sents the amounts payable by the Trust to the fund in respect of the year. The Tru81 operates a deflned beneflts p8nslon scheme and the penslon charge Is based on g full actuarial valuation dated 31 August 2020. 2.14 Fund accounting General funds &r& unre8tricted lunds which are available for use al the discretion of the Trusl8es in furth¢ran¢o of the general objeclivos of the Trust and which have not been designated for other purposes. Designated funds comprise unr8stri¢t8d funds that have b¢¢n set aside by the TNslo88 for Particular pUrpO￿s. The aim and use of each designated fund is s81 out in the nol68 lo the financlal stslements. Restri¢l&d fund6 are funds whlch are to be used in accordance with ¥pecific restrklions imposed by donors or which have been rai$$d by the Trust for particular purposes. The costs of raiging and administering such fund8 ar8 charged against the $p8¢6fio fund. The aim and use of each restricted fund 18 sal out in the notes to the financial statements. Investment income, 98lns and losses are allocated lo the appropriate fund. Page 27 LINKAGE COMMUNITY TRUST IA company Ilmltod by guArant•e} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Critical accounting estimates and ar8a$ of Judgment Esllmates and judgments are continually evaluated 8nd 8re based on historical experience and other factors, includlng expeGlations gf future events that aro believed to be reasonable under the clrcum$tan¢¢$. Criliral a￿oUntIng estimates and assumptlon8; The Trust makes estimate5 and Bs5umption5 concerning Ihs future. The re8ulllng accounllftg estimates and assumptions will. by definition, Seldom equal the related actual results. The estimates and as$umplions that hav¢ a slgnlflcant dsk of causing a material adjustment to the c8rrying amounts of a6$ets and Ilabilit18s wilhln the next financlal year are dl$cus$ed below. Tan9ible fixed a$sels ar• rocognis8d at cost or valuation. less accumulated d8prg¢i8tlon and any imp8itmenls. Depreciation takes place over the eslimal8d useful life, down lo the assessed residual value. The carrying amount of the Trust's fixed as$el$ is tested a5 500n as changed conditions show that 8 n*ed for Impaimienl has arlsen. The recoverability of trade debtors and a8$¢¢laled provlslonlng is considered on a regular b8sls. When calculatin9 the debtor provlslon, the Trustaes consider the age of the debts and the finan¢ial position of Its service user5. The pre8enl value of the defined benefrt liabilty depends on 8 number of factors that are detemlned on an actuarial b8515 using 8 Variety of 8$$umplions. The a8sumplSon8 used Sn éetemlning the nel cost I lincomel for pension$ in¢lu¢J$ tho dlscounl rate. Any changes in the8e assumpllons. whlch are dI￿1098d in note 30. wlll irnpacl the carrwng amount of the pension liability. Income from donations and legacies Restrl¢lod Unre6trlGled funds fund$ 2020 2020 Total funds 2020 Donations Grants 9.285 438,203 9,339 438,203 447.488 447,542 Rgslrictgd Unrestricted nds funds 2019 2019 Total runds 2019 Donatbons Grants 18,323 323, 792 (20) 18,303 323. 792 342. 115 (20) 342,095 Page 28 LINKAGE COMMUNtTY TRUST (A company Ilmltod by guaranteg) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analy818 of grants 2020 2019 ESFA Blg Lottary Fund Children in Need Forbes Trust Tolkièn Twsl K8rten TNSI Bally Thomas Brllish Alrway8 Carbon Fund Herllage Lottery other 76,767 141,031 36.867 26.000 so.000 24,820 23,12S 25,000 29,900 7,693 84, 834 13T,531 26.927 24.500 438,203 323, 792 Incom• from charltabl• activities Unro*trlet8d fund* 2020 Total funds 2020 Education and Adult Sklll$ Car¢ Employment Corporate and C8fe8 3.565.926 3,065,926 10.650.323 10,650,323 122,857 122,857 167,342 167,342 14,506,448 14,506,448 Pago 29 LINKAGE COMMUNITY TRUST IA company Ilmlt•d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Income from charftabl• actlvltie5 Icontinuedl Unrè$trld lunds 2C119 Total nds 2019 Education and Adult Skills Care Employment Corporat¢ and Cafes 3,657.443 1657,443 10,322,936 qO,322,936 140,465 140,465 231,914 231,914 14,352, 758 14,352, 758 Analy818 of Income from charltabl• activities by category 2020 2019 Educatlon and Adult Skills F•88 Receivable Training Outlet In¢ome Other Income 3,533,082 3,326 29,518 3,610.0>9 6,302 41,042 3.S65,926 3, 657.443 Caro Fee8 Receivable other Income 10,173.764 476,659 9,865.986 456,950 10,660,323 10,322.936 Employmènt Fe8s Re¢elvable 122,857 140,465 122,857 140,465 Corporate and Caf•8 Fees Receivable Training Oullel Income Other Income 9.552 74,594 83,196 40,311 162,838 28, 765 167.342 231,974 Pa98 30 LINKAGE COMMUNITY TRUST IA company Ilmlt•d by guarantefjl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Income from othèr trading actlvltlo8 Income from fundralslng events R•8trl¢led Unr•8trietod funds fund8 2020 2020 Total fund$ 2020 Income from Fundraislng 3,417 40,202 43.619 Rollnctod Unr•&lrioled funds fvnds 2019 2019 Tot•1 funds 2019 In¢ome from Fundralslng 2,021 46,712 48, 733 Inv•stmont income UnreJtrl¢ted Ivnd$ 2020 Totsl f4tnd? 2020 Bank Interest 2,880 2.880 Unre51rlolèd funds 207g Tolel funds 2019 Bank Intere¥t 3.271 3,271 Page 31 LINKAGE COMMUNITY TRUST {A Company limited by guarantso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 10. Expendltur• on ral8lng fundB Expenditure of voluntsry Income Rostrlctod fund8 2020 Total 2020 other Costs Payroll Costs 275,464 198,880 275A64 198.880 474,344 474,344 Rè$lrlct8d fvnds 2019 Total lunds 2019 Other Costs Payroll Costs 15t.4T9 248,104 151.479 248, 11)4 399,583 399,583 Fundralsing expenses Unrtstrlcted lunds 2020 Total fund¥ 2020 other Fundralsing Co$ls Fundralsing Salaries Fundrai$ing National Insurance FundraSsing Pen8ton 11.028 44.700 4,127 1,463 11,028 44,700 4,127 1,463 61,318 61,318 Page 32 LINKAGE COMMUNITY TRUST {A company Ilmlted by guarnnteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 10. Expendltur• on ralslng funds Icontlnuedl Unrosthcl8d fvnd$ 2019 Total funds 2019 Other Fundralsing Cost6 Fundral$lng Salari95 Fundral$lng National Insurance Fundraising Penslon 13,732 43,873 3, 197 1,235 13, 732 43.873 3, 197 1.235 62,037 62,037 11. Analy%lts of gxpenditure on charitable actlvltles Summary by fund type Unrpstrlctod fund• 2020 Total funds 2020 Edu¢ation and Adult Skllls Caro Employment Corporate and Cafes 3,236,873 3.236.873 10,528,590 10.528.590 133,814 133,814 170.222 170,222 14.069,499 14,069,499 Page 33 LINKAGE COMMUNITY TRUST IA company IlmSt•d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 11. AnalysI5 of expendtture on charilable actlvltle8 {continuedl Summary by fund type {¢ontlnuod UnrèÈtrl¢t&d funds 2079 Totol lunds 2019 Education and Adult Skllls Care Empl¢)ym?nt Coiporalg and Cafes 3.422,598 3,422,598 10.360,282 10,360,282 146, 199 146, 199 235, 185 235, 185 14, 164,264 14, 164,264 12. Analysis of expendltur• by ictlvltl88 Attlvltl undertaken dlr¢ctly 2020 Corporat• ovgrh?8d allotatlon 2020 Total funds 2020 Educallon and Adult SkS11s Care Employment Corporate and Cafes 2,734.148 9,299,037 133,814 1.902,500 11,732,278) 502,725 3,236,873 1,229,553 10,528,590 133,814 170,222 14.0fj9,499 14,069,499 A¢llvlli$s undert8ken directly 2019 Corporatè OVgrtj￿d Total funds 2019 2019 Educauon and Adutt Sk1118 C8re Emp1¢)￿￿8nt Corporate and C8fe3 2,877,984 8,966, 144 146, 199 2, 173,937 (1.938. 752) 544,614 3,422,598 1,394, 138 10.360,282 146, 799 235, 185 14, 164,264 14. 164.264 Page 34 LINKAGE COMMUNITY TRUST IA company Ilmltfrd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 12. Analysis of expondltur• by activities {contlnuodl An41y618 of dlrect Costs Educatlon and Adult Sklllj 2020 Corporats and Caf8* 2020 Totol funds 2020 Car• Emplo￿ent 2020 2020 Staff Costs Oih8r Dir0¢1 Costs 2.163,421 570,727 7,737,698 1,561.339 118,949 14,865 1.101,496 11,121,564 801,004 2,947,93S 2,734,148 9.299.037 133.814 1,902,500 14,069,499 Educetlon end Adult Skills 2019 Corporalg and C&f9$ 2019 rol•l funds 2019 Car8 2019 Employmanl 2019 Stsff Costs other Dlrect Costs 2,326,966 551,018 7,283,575 1,682,569 128,219 17.980 1,285, 134 11,023,894 888,803 3, 140.370 2,87T,984 8,966, 144 146, 799 2, 173,937 14. 164,264 13. Other expgndltur Unro8trl¢tsd funds 2020 Total funds 2020 Pen$lon Scheme- Interest on Llablllll88 Penslon Scheme - Inter¢$l on Assets Wrile-off of SubsSd(ary Loan Balance 81,000 164,000) 96,697 81,000 {64,000} 96,697 113.697 113.697 Pa98 35 LINKAGE COMMUNITY TRUST {A cornpany Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 13. Other exp•ndltur• IcontinLFedl Unfft$lrttrt&d runds 2019 Totsl lunds 2019 Proparty (Profll) l Loss on Dlsposal Pen8lon SGheme- Interest on Llabll-rt188 P$nslon Scheme- Interest on Assèts Contingency Expfyndituro (71, 153) f71, 153) io&ooo 105,000 (90,000) (90,000) f174,380J (174,380) (230,533) (230,533) 14. Auditors. remun•ratlon 2020 2019 Fees payable 10 tha Tnjst's auditor and rts associates for the audll of the Trusvs annual Bccounls 11,600 11,600 Fees payable to the Trusf$ auditor and Ils as8oclates In respoct of.. Audit-r8laled assurance s¢fyl¢es All non-audil services not Included above 720 2,800 2,800 Fees payable tg the Trust's auditor and it8 a850ciales in conne¢lion wllh the Trust's pen8ion schemels) in respect of-. The auditing of accoLtnts of th8 sGhemel$l 1,614 1.578 16. Staff costs 2020 2019 Wages and salaries Social sacurity c05t5 Contribution to defined contribution p8nsion 6chemes 10.392,624 10,3T4.384 708.908 69T,556 269.202 248,363 11.370.734 11,320,303 Page 36 LINKAGE COMMUNITY TRUST IA company Ilmltfjd by guarnnte•l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1S. Stsff costs Icontlnuod) The average number of persons employed by the Trust during the year was as follows: 2020 No. 2019 No. Educallon and OccupationBI & Recreation Ca ORS Corporate Serwces 8gnk Staff - Headccunt 89 258 97 61 710 259 96 62 86 593 621 The number of Imployees whose employee benefits loxcluding employer pension costs) excgeded £60,000 was.. 2020 No. 2019 No. In the band £60.001 - £70,000 In the band £70.001- £80,000 In the band £100,001- £110.000 The k8y management p¢rsonn61 of the Trust are considered lo be the Senior feader8hip team. The total amount ol employeè b8n8fits (including empl¢)yer penslon and national insurance contrlbutions) received by key management personn$l for their seNices to th8 Trust was £408,00012019- £361,500). 16. Trustees. remuneratlon and exp•n808 Durino the yoar, no Trustees recelved any remunerallon or other benefrt5 (2019- £NILJ. During the year ended 31 August 2020, no Tnjstee expen$e$ have baen InGU￿ed (2019- £NILJ. Pa9e 37 UNKAGE COMMUNITY TRUST IA company limited by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 17. Tanglble fixed a6sets Fr&ghold and Leisehold Propèrty Mov•abl• Bulldlngs Mptor Flxlurg• and Vèhleléfy Flttlng T¢*tal Cost or valuatlon Al 1 September 2019 AddS1ions DIspo8als 19,386,697 14.226 17,906 712.918 12.254 {63.2431 3A12.583 23.529,003 64,240 90,719 {63,243) At 31 August 2020 19.399.822 17,905 661,929 3,476.823 23,556,479 Depreciation At 1 September 2019 Chgrge for the year On disposals 4,483 200 17,905 691,294 63,143 163,2431 3,350,917 20,664 3,964,599 84,007 (63,2431 At 31 August 2020 4,683 17,905 591,194 3,371,581 3.985,363 Not book value Al 31 August 2020 19,396,139 70,735 105,242 19,571,116 At 31 August 2019 19,381. 114 121,624 61,666 19,564,404 Properties are revalued on a five-year cyclè. Valuallons have been cafried out to revalue propertie5 on arket V8lue basis. The valuations were undertaken by suf(ably qualified independent valuers. Howover, due trj the pandemic, It has not been possible to obtaln the round of valu8llons for the year gnded 31 August 2020 from qualified ind6pendent valuars. The tru$l8¢$ ¢onfirm that th8 property valuations remain an appropriate estimate of current markat valu8 and are not awar8 of any factors that would suggest impairment of any property. The Trust has adopted a policy of revaluation for langlble fixed assets. Had these a&se15 been measured at h58toric cost, the carrying v81ueE would h8ve been 85 follows.. 2020 2019 Freehold property 15,081,745 1&06T.520 Pa90 38 LINKAGE COMMUNITYTRUST IA company Ilmltod by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 18. Flxed asset Investments The Trust dèèms Llnkage Trading Ltd a subsidiary und6rtaklng due lo the control it exerts over tha company. The results for the subsidiary ara not consolidated on the grounds of immalgriallty. The accounts for Linkage Tr4ding Ltd for the year •nd8d 31 August 2020 show a profil ¢f £35,184 an¢J net liabllities of £58.489. 19. Dobtors 2020 2019 Due wlthln on• y•ar TTode debtors Amount8 owed by group undertakings Other d•blors Propaymenls and accrued income 673,257 76.803 131.483 1,177,701 625,918 IOT.544 109, 103 7,076, 7T0 2,059,244 1,919,335 Trade débtors ar8 Slated after provi$lon6 for impalrment of £33,$6812019- £16,993). 20. Current asset investment$ 2020 2919 Investment portfolio 2.161.799 2.174.291 Page 39 LINKAGE COMMUNITY TRUST (A Gornpany Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 21. Cr•dltor8: Amounts tslllng due wlthln one year 2020 2019 Bank loans Trade creditors Other taxation and $oclal securfty Student and resldent monies held Pension conlrlbulions due Olh$r ¢r¢dilor$ A￿ru81$ and deferred Income 133.332 472,095 195,453 281,612 67.878 81 S,008 882,782 133,332 169,928 199,476 385, 156 51,707 796.625 370,526 2,938,068 2,046, 750 2020 2019 Deferred in¢ome at 1 September R8sour¢&s deferred during the year Amounts released from previous periods 196.121 170,297 614,903 196, 121 1177,7521 1170,297) Daferred In¢om• at 31 August 633,272 196, 121 Page 40 LINKAGE COMMUNITY TRUST {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22. Credltors: Amounts falllng duo after more than one y•*r 2020 2019 Bank loan5 Other loans 1,033,343 250,000 1, 166.675 250.000 1,283,343 1,416,675 Included within the above are amounts falling du$ as follow6.. 2020 2019 Between one and two yoar8 Bank loan5 133.332 t33,332 Botween two and flvo yoars Bank loans 399.996 399,996 Over five years Bank loans other loans 500.015 250,000 633,347 250,000 The aggiegate amount of liabililles payable or repayabl• wholly or in part more than five years after the reporting date 1$: 2020 2019 Payable or repayable by inBlalmenls Payable or rtrpayable other than by instalmenls SOO.016 250,000 633,347 250,000 750,015 883.347 Bank loans are secured by l&gal charges over four freehold properties owned by the Trust with a total net book value of £4,310,000 12019 £4.310.000). The total bonk loan balancè of £1,166,675 12019 £1,300,007)1s 27%12019. 30Qhl of th¢ property value b8$ed on the most recent valuations. The other loan IS Secured by a legal Charge ovèr on8 freehold prop6rty owned by the Tw$1 which has a not book value of £275,000 (2019 - £275,000). The loan balanca Is 91Yo {2019- 91 %) of the value of the 6ecurlty h&ld. Page 41 LINKAGE COMMUNITY TRUST (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. Statsrn•nt ol funds Statsment ol fund8 - ¢urr•nt yg•r Balanco Jt 1 Septèmb•r 2019 TMnAlor¥ Inlout Galn¥l B#lance 4t 31 Loy¥o¥1 August 2020 Ineom• Exp•ndlture Unr6gtrl¢tod funds Do$lgnatod funds Digilali8alion Reserve 144,000 144.000 G•n•r*l fund5 Fr80 R88orvos Proparty Fund Revaluation Reserve Pension ReseNe 2,453,385 14.549,584 {14.227.3141 {263.3861 10,275,614 {2001 147.667 111,1701 2.501.099 10A22,971 4,637,971 4,637,971 11,005,000) 117,0001 115,829 22,171 1884.000} 16,381,970 14,549,684 114.244.5141 11.001 16.678.041 T¢tal Unrestrictgd funds 16,505,970 14,549,OB4 {14,244.5141 11,001 16,822.041 R•strlcted funds ESFA Maintenance Bursary Funds Promoting Independence I Developing Employment Opportunilifjs Big Lottéry Fund Forbes Trust Child￿n in Naod Tolkien Trust 113.607 13,839 43,171 19.492 196,2631 18,9091 110,4801 01,036 24.422 2.208 {2.208} B8,590 32,002 141,031 26,000 1137.960) 162.000) 3,280 64.941 5,002 1,5116 36,867 50.000 128.6881 160.0001 10 8.704 Page 42 LINKAGE COMMUNITY TRUST (A Company Ilmlt•d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. Stat•m•nt of funds Icontinued} Statement of fund8- ¢urrent year (continued) Balaneè at 1 Sèpt•mb¢r 2019 Tran8f•rg Inlout QJln¥l 8alance at 31 ILo$¥g$1 August 2020 Incom Exp•ndituro Karten Trust Bally Thomas British Airways Carbon Fund Lottery Herllago Fund Other ReStr￿ted Fund8 Flxed Asset8 Acqulred 24,820 23,125 {23,881) {4,8761 939 21,249 3.000 25,000 (25,0001 29,900 19,9001 1,000 21,000 87,333 33.499 {22,720) (5,082) 93,030 2.953.734 {16,147} 10,480 2,949,067 3.262.828 450,905 1474,3441 3.239,389 Total of funds 19.768.798 16.000,489 114.718.8581 11,001 20,061,430 Page 43 LINKAGE COMMUNrrY TRUST IA company1Smitod by guarantO01 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. Statemont of funds lcontlnued) Statement of funds- prlor year B818nce 81 I Septembor Z018 Balance at 31 Auyusl 2019 Translers in/out G8ln fLoss&s) Ineome Expendllur• Unrestrlcted tund8 Designated funds Digilalis81ion Reserve 144,000 144,000 G•n•ral funds Fro0 Reserv8S Propety Fund Revaluatlon Reserve Pension Reserve 2,219,073 14,402,721 (13.978,069J 10,284, 172 12,099) (260,888) (6,459J 71. 148 2,453,385 10.275, 614 4,332,971 304000 4,637,971 (642,000) (i&ooo) 112,455 f460,455) (1.005,OOOJ 16,194,216 14,402,721 {13,995,7681 (154.892) (84.307) 16,361,970 Total Unrèstrlctod funds 16,194,216 14,402,n1 113,995,768) {10,892) (84.307J 16.505.970 Restrfcted funds Boullham Pork ESFA MalntenanGe Bursary Funds Promotlng Independence I Developing Employmènt Opportunities Big Lottery Fund Forbes Trust Masonic Trust 7.817 (18, 709) 10,892 115.602 1.896 47,704 28, 774 (33,248J (16.831) (16.453) 113, 607 13,839 22, 149 (19,941) 2,208 20,498 31,502 51,738 t38,408 24,500 {100,316J f24,OOOJ {51, 738J 58,590 32,¢X12 Page 44 LINKAGE COMMUNITY TRUST (A company Ilmlt•d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. Ststsment of fund$ {¢ontlnugdl Statement of funds - prlor y•ar Icontlnugd) Balance 81 I Septombor 2018 BBlene• $1 31 Augu$l 2019 Tr•n$fers irfoul G8Fn fLo$sgs) Ineome Exp8nditurg Children In Need Tolkien Trust Karten Trust Fixed Assets Acqulred 7,696 26,927 (33, 108) ($9,000) (20,689) 1,515 88,016 20,006 87,333 2.968.286 (31,005J 16,4S3 2,953. 734 3,307,383 344,136 {399,5831 10,892 3,262,828 Totsl of fund8 19,501,599 14, 746.857 (14,394351) 184,307) 19, 768. 798 Page 45 LINKAGE COMMUNITY TRUST IA company Ilmltad by guarante81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Fund8 d•talls Unrestrlcted funds: For clarity of presentation. the Trustees choose 10 8how the value of property and the accumulat$d galns and 10sse5 as ¥ep$ralo funds. Fr88 Reserves above therefore repre8¢nls the accumulated surplus on charitable activllles. Restricted funds: Most of tho Trust's Incom8 is In the form of fees bul rt alao r•¢gives grants and ral$g$ funds lor speclffc purposes. These restricted funds are described balow.. ESFA Malnlenance r&preserrts fundin9 received from the Education gnd Skills Funding Agency I'ESFA'I to be spent on the malntenance ol educalonal f8clllliey. Bursary Fund those represent funds provi¢Jed by the ESFA to flnanclally support young people In learning at the discretion of the Tru81. Blg Lottory Fund - relate5 to unspent funds provided by the Big Lottery Fund for the acqui8lllon of a sensory library and its ass¢¢lated runnlng c081s. Forf>es Trust, Chlldren In N8ed, Tolkien Trust. Karten TNst, Bally Thomas, Brlll$h Alrways Carbon FurKI and Li)ttery Heritage Funds - relates lo fundlng provid8d lo be spent for the purposes imposed by the donor. Other Restricted Funds - relates lo varlous smaller donations and funds which arè subject to restrictions Imposed by the donor which have been combined for year*nd accounting putposes. Flxad Assets Acquired with Reslriclad Funds - repr8senls the net book value of assets acqulred wlth restricted funding streams, In particular relating to Boullham Park. Big Lottery Fund and Karten Trust. Transfers have been fe¢ogni$od in the re8trfcted fvnds analysis where funds hav8 bean reclassified. for the acquisrtion of flx¥d asset8 and also to re¢ogni8o where other funds received hBve beon allocated lo othér projeGI6. 26. Summary of funds summary of funds- current year Balanc¢ at i Soptomb•r 2019 Trnn$foM Inlout Galn•l B*lanc• at 31 {Lo$$o61 August 2020 Incorn• Exp•ndlturé Oeslgnated funds General funds Reslricled funds 144,000 16,361,970 14,$49,584 {14,244,6141 144,OOQ 11,001 16,678,041 3,262,828 450,905 1474,3441 3,239,389 19,768,798 15,000,489 114,718,8S81 11,001 20,061,430 Page 46 LINKAGE COMMUNITY TRUST IA company Ilmltod by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 25. Summary ol funds l¢ontlnued) Summary of funds- prlor yoar 8alanee al 1 September 2Q1 Balanc• at 31 August 2019 Tr8nsfors In/oul Gain (Lossgsj Income Expenditure Deslgnated funds Gene¥81 fund$ Reslricl¢d funds 144,OOQ 16, 794,210 14.402. 721 (13,995, 768) (154,892) 144,000 (84.307) 16,361,970 3,307,383 344,136 (399,583) 10,892 3,262,828 19.5Q1,599 14. 746.857 (74,395,351) (84,307) 19, 768, 798 26. Analysls of net assèts between funds Analysls of nèt assets betw88n fund8 . Current perlod R•#trlcted Unrostrfcted fundg fund¥ 2020 2020 Totsl fundg 2Q20 Tangible fixed asso18 Current assets Creditors due ￿thIn one year Creditors due in more than.on8 year Provi8lorts for liabilities and ¢haig8s 2,949,068 18,622,048 19.571,116 467,996 ,127,719 5.595,716 1177,6751 12,760.383) 12,938.0581 11,283,343) 11,283.3431 1884,0001 1884.0001 Totsl 3.239.389 16,822,041 20,061,430 Page 47 LINKAGE COMMUNITYTRUST IA company Ilmlt•d by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 26. Analy81$ of n•t a$$ots between funds Icontlnuod) Analysis of n8t a$s8t8 b•tw••n funds- prior perlod Reslri¢tgd Unrnstricted fvnds lunds 2019 2019 TolBI runds 2019 Tangible fixed assets Current assets Creditors due 4wthin one year Creditors due in more than ono year Provision8 lor liabililles and charges 2,953,735 16,610,669 19,564,404 486,768 4,186,051 4.672,819 {177,e751 11,869.075) (2.046, 750) 11.416.675) ft.416,675J 11,005,0001 (1,005,OOOJ Total 3.262.828 16,505,970 19, 768, 798 27. Ro¢on¢lllatlon of net movement In fund$ to net cash flow frorn operating a¢tlvltl•s 2020 2019 Net in¢ome for the perlod {as per Slalemenl of Financial Aclivlllesl 270,461 422,654 Adjustments for: DepreciatSon charge3 Galnsl{losses1 on investments Profrt on the sale of fixed assots Increase in debtors Increaselldecreasel In credilorB Pension finance and adminislralion costs Conldbullons to defined beneff( pension 8chem06 84,007 108,070 11,170 (71. 148) {500) (74.828) 1152,812) (389.686) 866,934 (357, T02) 17,000 15,000 1116,8291 (712,455) Not ca$h provld•d byllused in} opgratlng actlvltlo8 980.431 f454,095) Page 48 LINI￿GE COMMUNITY TRUST (A Company limited by guarants•l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 28. Analysls of cash and cash equlvalont$ 2020 2019 Cash in hand Residents money bank accounts 993,160 381,512 194,037 385, 156 Total ¢a$h and cash equlvalonts 1,374,672 579. 193 Analysls of changes In net dabt At1 S•ptsmb•r 2019 Othor non. ea¥h At 31 Augu*t chang•0 2020 Ca•h flows Cash at bank and In hand Debt due wllhin 1 year Debt due after l yeaf Llquid in￿StMents 579.193 {185,039) 11,416,675) 2,174,291 795,479 1,374,672 {185,039} {1,283,3431 112,4921 2,161.799 133,332 30. Reconcillatlon of ca8hflows from op•ratlng a¢tlvltleg 2020 2019 Nel cash (used in) I provldèd by operating a¢llvftlo8 Exceptional movem$nts in crfjdilor8 980.431 (454,095) 523.000 980.431 68.905 Page 49 LINKAGE COMMUNITYTRUST IA company limited by guaranto•) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 31. Pènsion commitments Llnkage Communty Trust operates separate pension schemes a Group Savlngs Plan and an Executive Pension Plan. The assets of both schemes are held Separately from those of Iho Trust In Independ•ntly admlnlstered fund8. Group Savings Plan.. The Group Savlngs Plan is a definied contribullon s¢h8m8. The pension cost In th6 accounts represents the lolal pension cost for the year which amounted to £269,202 {2019 - £248,363). Exo¢Utlvo Pon8lon Plan: Thls is a d8fined contribution plan w(th underlyng guarantees of a defined benefit nature. It is therefore accounted tor in 4ccordan¢o with the Financial Reportlng Standaid applicable in the UK and Republk Df Ireland IFRS 1021. The Scheme l¥ closed to further accrual of benefits. At 31 August 2020, the scheme m8k¢8 payments lo slx pensloners. The followng di8¢losur•B are taken Irom the report prepared by 88mett Waddingham LLP, the Plan's actuary. PrinGipal 8cluarial assumpllons at the Balance sheet dale {axpr8ss8d as weighted averages).. At 31 August At 31 August 2020 201P Dl$count Rale R¢lall Prlces Index IRPII Inllallon LPI Pen61on Increases Percentage of Pension Takan as Tax Free Cash 1.so 3.20 3.20 20.00 1.75 3.40 3.40 20.00 At SI August At 31 August 2020 2019 Years Y88rs Mort8lKy rates (in yoar81 - for g male aged 65 now - at 65 for a male aged 4S now - for a female aged 65 now - at 65 for a female aged 45 now 22,2 22.2 23.9 24.7 2&9 26.0 Pagè So LINKAGE COMMUNITY TRUST IA company Ilmlt8d by guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 31. P8n8Son commltments l¢ontlnued} The Trust's 8hare of the assets in the scheme was.. At 31 August Al 31 Augusl 2020 2019 Funds Cash Annulty Poltcie5 2,307.000 142.000 1.450,000 2.147.000 87,000 7,430,000 Total falr valu• of a88&ts 3,899,000 3.664,000 The actual return on scheme assets was £223.000 {2019- £215,000). The amounts racognis8d in the Statement of financlal actlvllles are ￿ follow8.- 2020 2019 Interest income Interest cost 164,000) 81.000 (90,000) 105,000 Total amount recognlsed In the Ststsm•nt of Ilnancial actlvltles 17,000 15,000 Movements in thg present valuo of Ihg defined benefit obligation were as follows.. 2020 Opening defined benefit obligalion Interest ¢081 Losso8119ainsl from Ghonges to financial a88umptions Benefits paid 4,669,000 81,000 138,000 1106.0001 Clo$lng deflned benefit obllgatlon 4,783,000 Pag8 51 LINKAGE COMMUNITYTRUST IA company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 31. P8n8lon commitments Icontlnuodl Movements in th8 falr value of the Tru81'8 share of scheme 86S8ts were as follows,. 2020 Opènlng falr value of s¢h6me assets Interest Incom8 Return on a$$els l•ss interest Conlribulion$ by employer Benefits pald 3,664,000 64.000 160.171 115.829 1105.0001 CIo8lng falr value of s¢h•me a89ets 3,899,000 32. Operatlng l*a¥• commltments Al 31 August 2020 the Tru81 had Commitments lo makè future minimLtm laas8 payments under non- ¢ancellable operating leases as folk)w$', 2020 2019 Not lalar than 1 ye8r L8lerlhan 1 year and not lalor than S yèars 8,103 8.747 6,912 11,366 18.850 18.278 Page 62 LINKAGE COMMUNITY TRUST IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 33. Related party transactlons Llnkage Trading Ltd: Llnkage Trading Ltd is 8 company limlled by guar8ntee which is controlhd by Llnkage Communty Trust. The Trust collects monl8s and incurs expenses on bèhaw of the comp4ny. Net expen888 and repaymen15 durlng thè year were £65,956 {2019 - £22,551). During tho year, the trustees agreed lo wrlle down the amount owing by the ¢ompany lo the Trust by £96,697. The balanc• oulslanding al the year-end Is £76,703 {2019 - £107,544) and included wllhln amounts owed by group und8rtakinos. TFM Networks Lirnited: TFM Ne￿Ik$ Llmit6d18 a Subsldiary company of Tfm Gh Limlled. Mr M Bell, a Trustee, was a director of Tfm Gh Llmrtod b@￿een September 2017 and November 2019. TFM Nelworks Limited providas communications servi¢86 to the Trust. The conlra¢t between the Tru81 and TFM Neknrk5 Limited pre4aled the directorship and continues post year-ond. Up lo the d$te of re8ignatlon during the year, TFM Nthorks Limited invoiced the TrLtg1 • lolal of £2,100 for the services provided, During the previous y8aar, TFM NehNorks Limlted Involced the Trust a totsl of £8,911 for the se￿e&S provided. Thè balance outstsnding at the prèvlous y83r-end was £nil. Pag6 53