Charity registration number: 510668
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William°. e Hulme's1 Grammar School Foundation.
Annual Report and Financial Statements
for the Year Ended 31 August 2020
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AJ McLaren FCA Beever and Struthers St. George's House 215-219 Chester Road Manchester M15 4JE
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William Hulme's Grammar School Foundation
Contents
| ReferenceandAdministrative Details | 1 |
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| Trustees' Report | 2 to3 |
| Statement ofTrustees' Responsibilities | 4 |
| IndependentExaminer'sReport | 5 |
| Statement ofFinancial Activities | 6 |
| Balance Sheet | 7 |
| NotestotheFinancialStatements | 8to14 |
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William Hulme's Grammar School Foundation
Reference and Administrative Details
Trustees
Trustees J D Marsden K Platts D Barnes B Kumeta D W Homer (resigned 3 October 2020) K EM Robson H Beck Principal Office Spring Bridge Road Manchester M16 8PR Charity Registration Number 510668 Independent Examiner AJ McLaren FCA Beever and Struthers St. George's House 215-219 Chester Road Manchester M15 4JE
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William Hulme's Grammar School Foundation
Trustees’ Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2020.
Objectives and activities
Public benefit
The object of the Trust is to advance the education of children and young people in Manchester in any way that the Charity trustees think fit. The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance The Board of Trustees, under the terms of the Trust Deed, sets the policy for the organisation and running of the Trust. Formal meetings are called regulalry and when required.
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Financial review
The Foundation has focussed on its support of the Academy during the year and donated £88,866 (2019: £85,200) to support various activities. In addition the Foundation's trading company, WHGS Activities Limited, covenanted £44,400 (2109: £81,800) in support of the Academy. The Foundation also worked closely with both the WHGS 1975 Appeal and the J G Bird Trust in support of the Academy. The Foundation has continued to pursue outstanding debts during the year which has resulted in the recovery of £816 (2019: £1,606) during the year, The Foundation continued to receive rental income on the property occupied by the day nursery of£12,500 (2019: £25,000). The Creditors Voluntary Liquidation of the tenant during the year meant that this income ceased at the half year. As a consequence the Foundation incurred costs of £357 in maintaining the property in the second half of the year.
Policy on reserves
The Trust has two types of unrestricted funds: trust funds and company funds held within the trading company. In addition there are also restricted funds to support repair projects within the Academy.
The company funds relate to surpluses generated by the Trust's associated trading company. It is the policy of the Trustees to minimise taxation liabilities through taking advantage of the gift aid provisions and surpluses generated from these activities are transferred by gift aid to the Academy. This fund has no restrictions on its use by Trustees.
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The funds held at 31 August 2020 amounted to £59,342 in restricted funds and £404,148 in unrestricted funds.
The Charity Commission's definition of free reserves excludes the following items: Permanent endowment funds Restricted income funds Designated funds Fixed assets held for Charity use which could only be realised by disposal.
Plans for future periods
Aims and key objectives forfuture periods
Investment holdings are managed by Castlefield Investment Partners, who are authorised to buy: and sell investments on behalf of the Foundation in line with the medium risk profile specified by the Trustees. All investments are in investment products aimed at generating income for application towards the furtherance of the Charity's objectives. Investment returns in the year amounted to £9,499 (2019: 11,013).
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William Hulme's Grammar School Foundation
Trustees' Report
Structure, governance and management
Nature ofgoverning document
The Trust is governed by Tust deed N1 167 28.9.77 CCx93 which was sealed on 26 October 1979 as varied by scheme dated 30 April 1986 and varied by scheme dated 23 December 1997 and orders executed 14 February 2007, 8 March 2007 and 20 April 2007.
The annual report was approved by the trustees of the charity on 30 March 2021 and signed on its behalf by:
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JD Marsden i
Trustee
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William Hulme's Grammar School Foundation
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
T by the trustees ofthe charity on30 March 2021 and signed on its behalfby: JTrusteeD Marsden ine
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William Hulme's Grammar School Foundation Independent Examiner's Report to the trustees of William Hulme's Grammar School Foundation I report on the accounts of the charity for the year ended 31 August 2020 which are set out on pages 6 to 14.
Respective responsibilities of trustees and examiner The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner's statement In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act 2011; and
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- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
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have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
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A J McLaren FCA
Beever and Struthers St. George's House 215-219 Chester Road
Manchester M15 4JE
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30 March 2021
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William Hulme's Grammar School Foundation
Statement of Financial Activities for the Year Ended 31 August 2020
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|Unrestricted|Restricted|Total|
|funds|funds|2020|
|Note|£|£|£|
|Income and Endowments|from:|
|Donations and|legacies|46,964|9,267|56,231|
|Charitable|activities|816|-|816|
|Investment|income|3|54,033|-|54,033|
|Other income|24,599|-|24,599|
|Total Income|126,412|9,267|135,679|
|Expenditure|on:|
|Charitable|activities|(87,849)|(49,018)|(136,867)|
|Other expenditure|6|(8,990)|-|(8,990)|
|Total Expenditure|(96,839)|(49,018)|(145,857)|
|Net movement|in funds|29,573|(39,751)|(10,178)|
|Reconciliation|of funds|
|Total funds brought forward|14,681,034|99,093|14,780,127|
|Total funds|carried forward|12|14,710,607|59,342|14,769,949|
|Unrestricted|Restricted|Total|
|funds|funds|2019|
|Note|£|£|£|
|Income and Endowments|from:|
|Donations|and|legacies|44,866|8,832|53,698|
|Charitable|activities|1,606|-|1,606|
|Investment|income|3|90,077|-|90,077|
|Other income|30,238|-|30,238|
|Total Income|166,787|8,832|175,619|
|Expenditure|on:|
|Charitable|activities|(156,789)|(13,811)|(170,600)|
|Other expenditure|6|(5,443)|-|(5,443)|
|Total Expenditure|(162,232)|(13,811)|(176,043)|
|Net movement|in funds|4,555|(4,979)|(424)|
|Reconciliation|of funds|
|Total funds|brought forward|14,676,477|104,072|14,780,549|
|Total|funds|carried forward|12|14,681,032|99,093|14,780,125|
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All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 12.
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William Hulme's Grammar School Foundation
(Registration number: 510668) Balance Sheet as at 31 August 2020
| 2020 | 2019 | ||
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| Note | £ | £ | |
| Fixed assets | |||
| Investments | 9 | 14,737,805 | 14,763,806 |
| Current assets | |||
| Debtors Cash atbankand inhand |
10 | 34,125 93,159 |
6,451 46,515 |
| 127,284 | 52,966 | ||
| Creditors: Amounts fallingduewithin oneyear | 11 | (95,140) | (36,647) |
| Netcurrentassets | 32,144 | 16,319 | |
| Netassets | 14,769,949 | 14,780,125 | |
| Funds of the charity: | |||
| Restricted funds | §9,342 | 99,093 | |
| Unrestricted income funds | |||
| General funds | 1,448,229 | 1,418,654 | |
| Otherunrestricted funds | 13,262,378 | 13,262,378 | |
| Totalunrestricted funds | 14,710,607 | 14,681,032 | |
| Totalfunds | 12 | 14,769,949 | 14,780,125 |
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The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on 30 March
2021 and signed on their behalf by:
sccvevebecvccedesnebdeceted eqevccceen
JTrustee D MarsdenULiNa, Avej
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WilliamHulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
AssetsWilliam andHulme's liabilitiesGrammar are initiallySchool recognisedFoundation at historicalmeets the costdefinition or transactionof a public valuebenefit unless otherwiseentity understatedFRS in102. the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
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Income and endowments Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Investment income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
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Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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William Hulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including independent examination, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
As a registered charity, the Trust is not subject to taxation. However, provision is made for corporation tax on any uncovenanted trading profits generated by WHGS Activities Limited. deferred taxation is provided using the liability method on all timing differences which are expected to reverse without being replaced, calculated at the rate at which it is anticipated the timing differences will reverse.
Investment properties
The main land and buildings of the school were conveyed to the Foundation, at no cost, under the terms of the Scheme for Hulme Trust estates (Educational) Charity sealed on 26 October 1979. These assets are therefoere included in the balance sheet at valuation. Subsequent expenditure on specific major building projects is initially included in the accounts at cost.
The land and buildings of the Foundation are leased to the William Hulme's Academy for use in running of the school. As a result of this any capitalised expenditure has been reclassified as investment properties and is valued on a depreciated replacement cost basis.
Fixed asset investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
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William Hulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
Operating leases
Rental income from operating leases is recognised on a straight line basis over the term of the lease. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Financial instruments Classification Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual atrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
- 2 Income from donations and legacies
| Unrestricted | ||||
|---|---|---|---|---|
| funds General £ |
Restricted funds £ |
Total 2020 £ |
Total 2019 £ |
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| Donations and legacies; | ||||
| Received fromHulme Trust Estates | ||||
| (Educational Charity) Friends ofWHGS |
46,894 70 |
9,267 - |
56,161 70 |
53,528 170 |
| 46,964 | 9,267 | 56,231 | 53,698 |
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William Hulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
3 Investment income
| 3 Investment incomeincome | |||||
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| Unrestricted | |||||
| funds | |||||
| General £ |
Total 2020 £ |
Total 2019 £ |
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| Income from dividends; | |||||
| Dividends receivable from listed investments | 9,499 | 9,499 | 11,013 | ||
| Interest receivable and similar | income; | ||||
| Interestreceivableonbank deposits | 134 | 134 | 54 | ||
| Other interest receivable | - | - | 10 | ||
| CovenantincomefromWHGS Activites Limited | 44,400 | 44,400 | 79,000 | ||
| 54,033 | 54,033 | 90,077 | |||
| 4 Otherincome | |||||
| Unrestricted | |||||
| funds | |||||
| Total | Total | ||||
| General £ |
2020 £ |
2019 £ |
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| Realised&Unrealisedgains/(losses) oninvestments Rentalincome |
(26,001) 12,500 |
(26,001) 12,500 |
(6,446) 25,000 |
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| (13,501) | (13,501) | 18,554 | |||
| 5 Expenditure on charitable activities |
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| Unrestricted | |||||
| , | Note | funds General £ |
Restricted funds £ |
Total 2020 £ |
Total 2019 £ |
| Grants to WHGS Academy Governance costs |
84,249 3,600 |
49,018 - |
133,267 3,600 |
167,000 3,600 |
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| 87,849 | 49,018 | 136,867 | 170,600 |
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William Hulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
6 Other expenditure
Allocated support costs
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Unrestricted
funds
Total Total
General 2020 2019
£ 3 £
8,990 8,990 5,443
8,990 8,990 5,443
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7 Net incoming/outgoing resources
Net outgoing resources for the year include:
Independent examination fee
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2020 2019
£ £
3,600 3,600
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William Hulme's Grammar School Foundation
Notes to the Financial. ‘ Statements for the Year Ended 31 August 2020
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
9 Fixed asset investments
| 9 Fixed asset investmentsinvestments |
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| 2020 | 2019 | ||
| £ ] |
£ | ||
| Other investments | 14,737,805 | 14,763,806 | |
| Other investments | |||
| Listed | Investment | ||
| investments | property | Total | |
| £ | £ | - | |
| Cost orValuation | |||
| At 1 September2019 Realised&Unrealised gains/(losses) |
457,347 (26,001) |
14,306,459 - |
14,763,806 (26,001) |
| At 31 August2020 | 431,346 | 14,306,459 | 14,737,805 |
| Net book value | |||
| At31 August2020 | 431,346 | 14,306,459 | 14,737,805 |
| At31 August2019 | 457,347 | 14,306,459 | 14,763,806 |
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| 10 Debtors | |||
| 2020 | 2019 | ||
| £ | £ | ||
| Trade debtors Accruedincome |
575 7,400 |
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| Otherdebtors | 26,150 | 6,451 | |
| 34,125 | 6,451 | ||
| 11 Creditors: amounts fallingdue within one year | 2020 | 2019 | |
| £ | £ | ||
| Accruals | 95,140 eee |
36,647 OOOO |
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William Hulme's Grammar School Foundation
Notes to the Financial Statements for the Year Ended 31 August 2020
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|12|Funds|
|Balance|at|1|
|September|Incoming|Resources|Balance at 31|
|2019|resources|expended|August 2020|
|£|£|£|£|
|Unrestricted|funds|
|General|1,418,656|126,412|(96,839)|1,448,229|
|Revaluation|Reserve|13,262,378|-|-|13,262,378|
|Total|unrestricted|funds|14,681,034|126,412|(96,839)|14,710,607|
|Restricted|funds|99,093|9,267|(49,018)|59,342|
|Total|funds|14,780,127|135,679|(145,857)|14,769,949|
|Balance|at|1|
|September|Incoming|Resources|Balance|at 31|
|2018|resources|expended|August 2019|
|£|£|£|£|
|Unrestricted|funds|
|General|
|General|1,414,101|166,787|(162,232)|1,418,656|
|Revaluation|reserve|13,262,378|.|-|13,262,378|
|14,676,479|166,787|(162,232)|14,681,034|
|Restricted|funds|
|Restricted|104,072|8,832|(13,811)|99,093|
|Total funds|14,780,551|175,619|(176,043)|14,780,127|
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13 Analysis of net assets between funds
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||||||
|---|---|---|---|---|
|Unrestricted|
|funds|
|Restricted|
|General|funds|Total|funds|
|£|£|£|
|Fixed|asset investments|14,737,805|-|14,737,805|
|Current|assets|67,942|59,342|127,284|
|Current|liabilities|(95,140)|-|(95,140)|
|Total net assets|14,710,607|59,342|14,769,949|
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