**Registered number: 01716035 Charity number: 514138**
**APPRIS CHARITY LIMITED (A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent auditors' report**|7 - 10|
|**Consolidated statement of financial activities**|11|
|**Consolidated balance sheet**|12 - 13|
|**Company balance sheet**|14 - 15|
|**Notes to the financial statements**|16 - 37|
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020**
## **Trustees**
Paul McCann, Chair Edward Andrew Butterfield Gemma Taylor Paul Dale Mark Goldstone Paul Anthony Moore
## **Company registered number**
01716035
## **Charity registered number**
514138
## **Registered office**
B.T.A.L. House, Laisterdyke, Bradford, West Yorkshire, BD4 8AT
## **Independent auditors**
BHP LLP, New Chartford House, Centurion Way, Cleckheaton, Bradford, West Yorkshire, BD19 3QB
## **Bankers**
Yorkshire Bank Plc, 731 Leeds Road, Laisterdyke, Bradford, West Yorkshire, BD3 8LL
Page 1
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020**
The Trustees present their annual report together with the audited financial statements of the charitable company and the group for the year 1 August 2019 to 31 July 2020.
The directors of the company are also trustees of the charity and accordingly the report of the directors incorporates the trustees’ annual report.
Since the company and the group qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
## **OBJECTIVES AND ACTIVITIES**
The company’s charitable objective and its principal activity during the year was that of the provision of industrial and commercial training and education.
These activities deliver public benefit by supporting businesses in recruiting and training young people to gain the skills required by manufacturing industries which will benefit the local and national economy.
## **FINANCIAL REVIEW AND FUTURE DEVELOPMENTS**
The surplus for the group for the year was £39,527 (2019: £103,466 deficit). Total funds at the balance sheet date amount to £2,365,034 (2019: £2,325,507) and will be applied for future development and in furtherance of the charity’s objectives for the coming year.
## **GOING CONCERN**
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continues in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
The Trustees have considered the impact of COVID-19 on the Charity’s activities and workforce, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have in place plans to deal with any deficits that may arise.
Page 2
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **a. CONSTITUTION**
Appris Charity Limited is a company limited by guarantee. It was incorporated as a private limited company on 18 April 1983 as company number 01716035 and is governed by its Memorandum and Articles of Association.
The directors of the company are also trustees of the charity and accordingly the Directors’ Report incorporates the Trustees’ Report.
The company is also a registered charity, number 514138 and registered with the Charity Commission on 12 August 1983.
Charity Office: B.T.A.L. House, Laisterdyke, Bradford, BD4 8AT.
## **b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
The Chairman is elected by the trustees. Trustees are appointed in accordance with the company’s Articles of Association. The number of Trustees shall not be less than 3 but should not be subject to any maximum.
## **c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES**
New trustees are briefed by the Chairman on their legal obligations under charity law. There is no specific training regime for the trustees to equip them for their role, though they are required to be competent persons who normally are already directors of a company in membership.
## **d. RISK MANAGEMENT**
The trustees actively review the major risks which the charity faces on a regular basis and consider that maintaining free reserves at the level stated, combined with continuous review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks and confirm that they have established systems to mitigate the significant risks.
Other than bank balances, the organisation does not have any significant financial instruments. Liquidity risk is managed by the use of short term money market accounts when funds are available.
## **e. FUNDRAISING**
The charitable group doesn’t actively fundraise but appreciates donations from the public. The charitable group does not use any professional fundraiser or commercial participator to carry out activities on the charitable group’s behalf.
Due to the low level of fundraising the charitable group undertakes, the charitable group is not a participant of a voluntary scheme for regulating fundraising, or any voluntary standard of fundraising for the activities carried out on behalf of the charitable group. Should the charitable group at some point in the future undertake a specific fundraising campaign or start to generate more income through fundraising, the trustees will look to sign up to a voluntary fundraising code.
Page 3
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020**
## **f. FINANCIAL RESERVES POLICY**
The reserves of the company are accumulated substantially from earned income and not through donations.
The charity needs reserves for the following reasons:
- To maintain the fabric of its buildings to a level acceptable to its members and itself, and to project an image of a professional organisation.
- To be able to purchase resources to enable the company to keep up to date with fast moving and changing technology in order to deliver its business.
- In a continuous climate of change in training, education and development, to allow the company time to meet and adjust to those changes.
- To give the company the financial resources to expand its business and facilities to meet member needs.
- The company will monitor its resources on a regular basis along with its income and expenditure.
- It will also submit its accounts to annual audit and report back to its members.
- The policy will be reviewed annually by the Board of Directors, prior to the AGM and will be monitored month by month by the Managing Director.
As at the year end, the total unrestricted reserves of the group was £2,155,518 (2019: £2,127,880) of which free reserves (unrestricted reserves not represented by intangible assets, tangible assets and investment property) were £69,101 (2019: £585,740). The movement in in free reserves has resulted from the investment in the new training facility and the trustees have plans in place to increase the free reserves over the coming years.
## **DIRECTORS AND TRUSTEES**
The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:
Paul McCann, Chair Edward Andrew Butterfield Gemma Taylor Paul Dale Mark Goldstone Paul Anthony Moore
The trustees did not receive expenses for their role as trustee during the year.
At each annual general meeting 1/3 of the directors retire from office. All retiring directors are eligible for reappointment.
Page 4
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020**
## **TRUSTEES' RESPONSIBILITIES STATEMENT**
The Trustees (who are also directors of Appris Charity Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable group's auditor is unaware, and
- the Trustees have taken all the steps that ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 5
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020**
## **AUDITORS**
The Board appointed BHP LLP as auditors for the current year. It is proposed that they be appointed at the Annual General Meeting to hold office for the ensuing year.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
11-Feb-2021
Approved by the Board on ………………….……… and signed on its behalf by:
## Paul McCann
Paul McCann (Feb 11, 2021 13:07 GMT)
**Paul McCann Chairman**
Page 6
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF APPRIS CHARITY LIMITED**
## **OPINION**
We have audited the financial statements of Appris Charity Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2020 which comprise, the Trustees’ report, the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 July 2020, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **CONCLUSIONS RELATING TO GOING CONCERN**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or parent charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Page 7
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF APPRIS CHARITY LIMITED**
## **OTHER INFORMATION**
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report has been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Page 8
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF APPRIS CHARITY LIMITED**
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
We have been appointed auditor under the Companies Act 2006 and Section 151 of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 9
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF APPRIS CHARITY LIMITED**
## **USE OF OUR REPORT**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Lesley Kendrew BSc FCA **Senior Statutory Auditor** For and on behalf of: BHP LLP, Statutory Auditor
BHP LLP, Statutory Auditor New Chartford House Centurion Way Cleckheaton Bradford West Yorkshire BD19 3QB
## 11-Feb-2021
## Date: ………………………….
BHP LLP are eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Page 10
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020**
|**Note**
**INCOME FROM:**
Charitable activities
2
Investments
3
Other income - Grants
**TOTAL INCOME**
**EXPENDITURE ON:**
Charitable activities
5
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE) AND NET**
**MOVEMENT IN FUNDS FOR THE YEAR**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2020**
**£**
**468,657**
**39,030**
**1,520,421**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**
**24,464**|**Total**
**funds**
**2020**
**£**
**468,657**
**39,030**
**1,544,885**|_Total_
_funds_
_2019_
_£_
_463,128_
_39,457_
_1,109,109_
_1,611,694_
_1,715,160_
_1,715,160_
_(103,466)_
_2,428,973_
_2,325,507_|
|---|---|---|---|---|
||
**2,028,108**|
**24,464**|
**2,052,572**||
||
**2,000,470**|
**12,575**|
**2,013,045**||
||
**2,000,470**|
**12,575**|
**2,013,045**||
||
**27,638**
**2,127,880**
**2,155,518**|
**11,889**
**197,627**|
**39,527**
**2,325,507**||
|||
**209,516**|
**2,365,034**||
All activities relate to continuing operations.
The notes on pages 16 to 37 form part of these financial statements.
Page 11
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 01716035**
## **CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020**
|**Note**
**FIXED ASSETS**
Intangible assets
10
Tangible assets
11
Investment property
12
Total tangible assets
**CURRENT ASSETS**
Debtors
14
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS:**amounts falling due after
more than one year 16
**NET ASSETS**
**CHARITY FUNDS**
Restricted funds
17a
Unrestricted funds
17a
**TOTAL FUNDS**|**£**
**2,295,933**
**331,563**|
|**2020**
**£**
_£_
**(331,563)**
_1,739,767_
331,563
**2,627,496**
**2,295,933**
_233,950_
_649,905_
_883,855_
_(298,115)_
**652,599**
**2,948,532**
**(583,498)**
**2,365,034**
**209,516**
**2,155,518**
**2,365,034**|
|_2019_
_£_
_(331,563)_
_2,071,330_
_1,739,767_
_585,740_
_2,325,507_
_-_|
|---|---|---|---|---|---|
||
**226,563**
**724.003**|||||
||**950,566**
**(297,967)**|||||
|||||||
|||||||
||||||_2,325,507_
_197,627_
_2,127,880_
_2,325,507_|
|||||||
|||||||
Page 12
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 01716035**
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime.
11-Feb-2021
The financial statements were approved by the Trustees on …………….……… and signed on their behalf, by:
## Paul McCann
Paul McCann (Feb 11, 2021 13:07 GMT)
**Paul McCann Chairman**
The notes on pages 16 to 37 form part of these financial statements.
Page 13
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **COMPANY BALANCE SHEET AS AT 31 JULY 2020**
|**Note**
**FIXED ASSETS**
Intangible assets
10
Tangible assets
11
Investment property
12
Total tangible assets
Investments
13
**CURRENT ASSETS**
Debtors
14
Cash at bank
**CREDITORS:**amounts falling due within
one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS:**amounts falling due after 16
more than one year
**NET ASSETS**
**CHARITY FUNDS**
Restricted funds
17b
Unrestricted funds
17b
**TOTAL FUNDS**|**£**
**2,271,776**
**331,563**|**2020**
**£**
_£_
**(331,563)**
_1,718,372_
_331,563_
**2,603,339**
**100**
**2,271,876**
_223,151_
_537,330_
_760,481_
_(98,529)_
**538,495**
**2,810,371**
**(583,498)**
**2,226,873**
**209,516**
**2,017,357**
**2,226,873**|_2019_
_£_
_(331,563)_
_2,049,935_
_100_
_1,718,472_
_661,952_
**_2_**_,_**_3_**_25_**_,_**_507_
_. 80 424_
**_-_**|
|---|---|---|---|
||
**124,216**
**460,750**|||
||
**584,966**
**(46,471)**|||
|||||
||||_2,380,424_
_197,627_
_2,182,797_
_2,380,424_|
Page 14
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s deficit for the year was £153,552 (2019: £54,843).
## 11-Feb-2021
The financial statements were approved by the Trustees on ……………………… and signed on their behalf, by:
## Paul McCann
Paul McCann (Feb 11, 2021 13:07 GMT)
## **Paul McCann Chairman**
The notes on pages 16 to 37 form part of these financial statements.
Page 15
**(A company limited by guarantee)**
## **APPRIS CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES**
## **1.1 Basis of preparation of financial statements**
The financial statements have been prepared on a going concern basis 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 Companies Act 2006.
The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.
Appris Charity Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The group financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.
## **1.2 Company status**
Appris Charity Limited is a charitable company limited by guarantee incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. The registered office is B.T.A.L. House, Laisterdyke, Bradford, West Yorkshire, BD4 8AT.
## **1.3 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds relate to capital grants received and are reduced by the corresponding depreciation charge.
## **1.4 Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continues in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
The Trustees have considered the impact of COVID-19 on the Charity’s activities and workforce, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have in place plans to deal with any deficits that may arise.
Page 16
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## **1.5 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of a course or provision of other specified service is deferred until the criteria for income recognition are met.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Page 17
**(A company limited by guarantee)**
## **APPRIS CHARITY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## **1.7 Basis of consolidation**
The financial statements consolidate the accounts of Appris Charity Limited and all of its subsidiary undertakings ('subsidiaries').
The results of subsidiaries sold are included up to the effective date of disposal.
The company has taken advantage of the exemption contained within 408 of the Companies Act 2006 not to present its own Income and expenditure account.
## **1.8 Corporation Taxation**
The charitable company is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **1.9 Turnover**
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
## **1.10 Tangible fixed assets and depreciation**
All assets costing more than £100 are capitalised. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
|Freehold property|-|2% straight line|
|---|---|---|
|Plant and machinery|-|10% straight line|
|Fixtures, fittings and equipment|-|10% straight line|
|Computer equipment|-|10-33% straight line|
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account. Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets. No depreciation is provided in respect of the freehold property held as an investment.
There is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. Such property is held for investment and not for consumption and the trustees consider that to depreciate it would not give a true and fair view. Depreciation is only one of the many elements reflected in the annual valuation of properties and accordingly the amount of depreciation which might otherwise have been charged cannot be separately identified or quantified. The trustees consider that this policy results in the financial statements giving a true and fair view.
Page 18
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## **1.11 Goodwill**
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Goodwill was acquired by way of transfer of all assets and liabilities from Leeds Training Services Limited, a company registered in England and Wales, on 1 August 2011, and is now fully amortised.
Negative goodwill is capitalised and classified as a negative asset on the balance sheet. Negative goodwill relating to net current assets was immediately amortised and negative goodwill relating to investment property is being carried forward.
## **1.12 Fixed asset investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **1.13 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
## **1.14 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.15 Cash at Bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.16 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Page 19
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## **1.17 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **1.18 Financial instruments**
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Other financial assets**_
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Page 20
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## _**Impairment of financial assets**_
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
## _**Derecognition of financial assets**_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## _**Classification of financial liabilities**_
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Page 21
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. ACCOUNTING POLICIES (continued)**
## _**Other financial liabilities**_
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
## **1.19 Operating leases**
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
## **1.20 Government grants**
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Page 22
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **2. CHARITABLE ACTIVITIES**
|Annual fees
Course fees & services|**Unrestricted**
**funds**
**2020**
**£**
**185,469**
**283,188**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**
**-**|**Total**
**funds**
**2020**
**£**
**185,469**
**283,188**
|_Total_
_funds_
_2019_
_£_
_93,145_
_369,983_
_463,128_|
|---|---|---|---|---|
||**468,657**||**468,657**||
## **3. INVESTMENT INCOME**
|Rent receivable
Bank interest receivable|**Unrestricted**
**funds**
**2020**
**£**
**38,912**
**118**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**|**Total**
**funds**
**2020**
**£**
**38,912**
**118**
|_Total_
_funds_
_2019_
_£_
_38,900_
_557_
_39,457_|
|---|---|---|---|---|
||**39,030**|
**-**|
**39,030**||
## **4. GOVERNANCE COSTS**
|Auditor’s remuneration – audit fee
Depreciation on land and buildings
|**Total**
**2020**
**£**
**2,250**
**37,106**
**39,356**|_Total_
_2019_
_£_
_2,110_
_28,943_|
|---|---|---|
|||_31,053_|
Page 23
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
|Course fees and services
Revenue expenditure
College fees and subcontract
Staff training
Staff welfare
Wages and salaries (inc. NI)
Staff pension costs defined contribution
Rates
Cleaning
Power, light and heat
Property repairs and maintenance
Premises insurance
Equipment repairs
Leasing – equipment
Computer running costs
Leasing - motor vehicles
Motor running expenses
Subscriptions and donations
Legal and professional fees
Accountancy
Audit fees for subsidiary
Bank charges
Bad and doubtful debts
Printing and stationery
Advertising
Telecommunications
Sundry expenses
Recruitment costs
Depreciation of Fixtures, Fittings and Equipment
Depreciation of Plant & Machinery
Governance costs (see note 4)|**Total**
**2020**
**£**
**91,580**
**18,622**
**28,083**
**6,749**
**19,241**
**1,249,544**
**112,242**
**7,427**
**26,907**
**17,701**
**10,524**
**11,442**
**6,412**
**36,903**
**57,311**
**15,270**
**25,214**
**3,804**
**46,198**
**2,465**
**3,900**
**7,261**
**-**
**8,181**
**8,313**
**8,932**
**8,486**
**30,000**
**57,111**
**47,866**
**39,356**
**2,013,045**||_Total_
_2019_
_£_
63,617
21,612
69,592
2,704
19,722
1,093,296
101,896
5,483
22,649
13,019
7,606
10,156
2,136
-
48,008
28,509
24,996
3,200
2,284
442
3,790
723
1,716
8,055
9,862
8,907
13,383
-
52,689
44,055
31,053|
|---|---|---|---|
||||_1,715,160_|
Page 24
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **6. TURNOVER**
The whole of the turnover is attributable to unrestricted funds. All turnover arose within the United Kingdom.
|Income from annual subscription fees received
Income from apprenticeship course fees & other consulting services
ESFA grants
Rent receivable
Bank interest receivable
Other grants received – unrestricted|**Total**
**2020**
**£**
**185,469**
**283,188**
**1,506,021**
**38,912**
**118**
**14,400**
**2,028,108**|_Total_
_2019_
_£_
_93,145_
_369,983_
_1,085,743_
_38,900_
_557_
_-_|
|---|---|---|
|||_1,588,328_|
## **7. NET INCOMING RESOURCES/(RESOURCES EXPENDED)**
This is stated after charging:
||**2020**|_2019_|
|---|---|---|
||**£**|_£_|
|Depreciation of tangible fixed assets|**142,083**|_125,687_|
|Operating Lease charge for the year|**52,173**|_28,509_|
During the year, no Trustees received any remuneration (2019 - £nil).
During the year, no Trustees received any benefits in kind (2019 - £nil).
During the year, one Trustee received reimbursement of expenses totalling £445 (2019 – one totalling £344).
## **8. AUDITORS' REMUNERATION**
The auditor's remuneration amounts to £6,150 (2019 - £5,900).
Page 25
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **9. STAFF COSTS AND PENSION COMMITMENTS**
Staff costs were as follows:
|Wages and salaries
Social security costs
Other pension costs|**2020**
**£**
**1,125,046**
**124,498**
**112,242**
|_2019_
_£_
_985,303_
_107,993_
_101,896_|
|---|---|---|
||**1,361,786**|_1,195,192_|
All staff are employed by Appris Management Limited. Appris Charity Limited does not have any employees.
Contributions totalling £15,198 (2019: £13,801) were payable to a pension scheme at the end of the year and are included in creditors.
The key management personnel of the parent charity company and the group are the trustees. The total employee benefits of the key management personnel of the Trust were £nil (2019: £nil).
The average number of persons employed by the group during the year was as follows:
|**2020**
|_2019_|
|---|---|
|**No.**
|_No._|
|**28**|_26_|
The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:
||**2020**
|_2019_|
|---|---|---|
||**No.**
|_No._|
|£60,001 - £70,000|**2**|_-_|
|£70,001 - £80,000|**-**|_-_|
|£80,001 - £90,000|**-**|_1_|
|£90,001 - £100,000|**1**|_1_|
|£100,001 - £110,000|**1**|**-**|
Page 26
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **10. INTANGIBLE FIXED ASSETS**
|**Goodwill**
**Negative**
**goodwill**
**Total**
**Group**
**£**
**£**
**£**
**Cost**
At 1 August 2019 and 31 July 2020
**22,683**
**(1,134,987)**
**(1,112,304)**
**Amortisation**
At 1 August 2019 and 31 July 2020
**(22,683)**
**803,424**
**780,741**
**Carrying amount**
At 31 July 2020 and July 2019
**-**
**(331,563)**
**(331,563)**
**Negative**
**goodwill**
**Company**
**£**
**Cost**
At 1 August 2019 and 31 July 2020
**(1,134,987)**
**Amortisation**
At 1 August 2019 and 31 July 2020
**803,424**
**Carrying amount**
At 31 July 2020 and 31 July 2019
**(331,563)**
Goodwill was acquired by way of a transfer of all of the assets and liabilities from Leeds Training
Services Limited, a company registered in England and Wales, to Appris Management Limited.
Negative goodwill was acquired by way of a transfer of all of the assets and liabilities from Leeds
Training Trust, a registered charity, to Appris Charity Limited.|**Goodwill**
**£**
**22,683**|**Negative**
**goodwill**
**£**
**(1,134,987)**|**Total**
**£**
**(1,112,304)**|
|---|---|---|---|
||
**(22,683)**
**-**|
**803,424**|
**780,741**|
|||
**(331,563)**|
**(331,563)**|
||||
**Negative**
**goodwill**
**£**
**(1,134,987)**|
||||
**803,424**|
||||
**(331,563)**|
Page 27
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **11. TANGIBLE FIXED ASSETS**
|**Group**
**Cost**
At 1 August 2019
Additions
Disposals
At 31 July 2020
**Depreciation**
At 1 August 2019
Charged for the year
Depreciation eliminated on disposals
At 31 July 2020
**Net book value**
At 31 July 2020
_At 31 July 2019_|**Freehold**
**property**
**£**
**1,759,011**
**570,876**
**-**
**2,329,887**|**Plant and**
**machinery**
**£**
**440,547**
**18,399**
**-**
**458,946**
**215,412**
**47,866**
**-**
**263,278**
**195,668**
_225,135_|**Fixtures,**
**fittings and**
**equipment**
**£**
**403,581**
**108,974**
**-**
**512,555**|
**Total**
**£**
**2,603,139**
**698,249**
**-**
**3,301,388**|
|---|---|---|---|---|
||
**381,333**
**37,106**
**-**||
**266,627**
**57,111**
**-**
**323,738**
**188,817**|
**863,372**
**142,083**
**-**
**1,005,455**
**2,295,933**|
||**418,439**
**1,911,448**||||
||
_1,377,678_||
_136,954_|
_1,739,767_|
Freehold land at a cost of £356,370 (2019 - £356,370) has not been depreciated.
Page 28
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **11. TANGIBLE FIXED ASSETS (continued)**
|**Company**
**Cost**
At 1 August 2019
Additions
Disposals
At 31 July 2020
**Depreciation**
At 1 August 2019
Charged for the year
Disposals
At 31 July 2020
**Net book value**
At 31 July 2020
_At 31 July 2019_|**Freehold**
**property**
**£**
**1,759,011**
**570,876**
**-**
**2,329,887**
**381,333**
**37,106**
**-**
**418,439**
**1,911,448**|**Plant and**
**machinery**
**£**
**440,547**
**18,399**
**-**
**458,946**
**215,412**
**47,866**
**-**
**263,278**
**195,668**
_225,135_|**Fixtures,**
**fittings and**
**equipment**
**£**
**237,009**
**93,799**
**-**
**330,808**
**121,450**
**44,698**
**-**|
**Total**
**£**
**2,436,567**
**683,074**
**-**
**3,119,641**
**718,195**
**129,670**
**-**
**847,865**
**2,271,776**|
|---|---|---|---|---|
||||**166,148**
**164,660**||
||
_1,377,678_||
_115,559_|
_1,718,372_|
Freehold land at a cost of £356,370 (2019 - £356,370) has not been depreciated.
Page 29
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
|**12.**
**INVESTMENT PROPERTY**
**Group**
**Cost**
At 1 August 2019 and 31 July 2020
**Company**
**Cost**
At 1 August 2019 and 31 July 2020|**Freehold**
**investment**
**property**
**£**
**331,563**|
|---|---|
||
**Freehold**
**investment**
**property**
**£**
**331,563**|
Page 30
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **13. FIXED ASSET INVESTMENTS**
|**Company**
**Cost**
At 1 August 2019 and 31 July 2020
**Carrying amount**
At 31 July 2020 and 31 July 2019|**Shares in**
**group**
**undertakings**
**£**
**100**|
|---|---|
||**100**|
The charity holds 100 shares of £1 each in its wholly owned trading subsidiary company Appris Management Limited. These are the only shares allotted, called up and fully paid. The activities and results of this company is summarised below.
## **Subsidiary undertakings**
The wholly owned trading subsidiary Appris Management Limited is incorporated in England and Wales (company number 03335776) and pays all of its profits to the charity as a donation. A summary of the trading results is shown below.
The summary financial performance of the subsidiary alone is:
|Fees and services
ESFA Grants
Cost of sales and administration costs
Interest payable
Net profit/(loss)
Retained in subsidiary
The assets and liabilities of the subsidiary were:
Total assets
Total liabilities
Total net assets
Aggregate share capital and reserves|**2020**
**£**
**441,145**
**1,506,021**
**(1,750,019)**
**(4,068)**
**193,079**
**193,079**
**513,031**
**(374,769)**
**138,262**
**138,262**|
|_2019_
_£_
467,840
1,085,743
(1,597,494)
(4,712)|
|---|---|---|---|
||||
(48,623)
_(48,623)_|
||||
366,977
(421,794)|
|||
|
(54.817)|
||||(54,817)|
Page 31
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **14. DEBTORS**
|Trade debtors
Amounts owed by subsidiary
undertakings
Other debtors
Prepayments and accrued income|||**Group**
_2019_
_£_
62,816
_-_
113,929
57,205|
||**Company**
_2019_
_£_
-
201,863
20,345
943
_223,151_|
|---|---|---|---|---|---|---|
|||**2020**
**£**
**52,949**
_-_
**111,254**
**62,360**|||**2020**
**£**
-
**121,765**
**1,508**
**943**
||
|||**226,563**|
_233,950_||**124,216**||
## **15. CREDITORS: Amounts falling due within one year**
|Bank loans and overdrafts
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|||**Group**
_2019_
_£_
-
174,435
20,113
13,801
89,766|
||**Company**
_2019_
_£_
-
92,362
-
-
6,167
_98,529_|
|---|---|---|---|---|---|---|
|||**2020**
**£**
**15,621**
**84,590**
**38,811**
**15,198**
**143,747**|||**2020**
**£**
**15,621**
**21,539**
**-**
**-**
**9,311**
||
|||**297,967**|
_298,115_||**46,471**||
## **Deferred income included in creditors**
Deferred income comprises advance payments for training courses and membership subscriptions.
|Balance as at 1 August 2019
Amount released to income earned from charitable activities
Amount deferred in the year
Balance as at 31 July 2020
|**Group**
**Company**
**£**
_£_
**62,929**
_-_
**(62,929)**
_-_
**67,034**
_-_
**_67,034_**
_-_|
|---|---|
Page 32
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **16. CREDITORS: Amounts falling due after more than one year**
|Bank loans and overdrafts|||**Group**
_2019_
_£_
-|||**Company**
_2019_
_£_
-|
|---|---|---|---|---|---|---|
|||**2020**
**£**
**583,498**|||**2020**
**£**
**583,498**
||
|||**583,498**|
_-_||**583,498**|_-_|
Bank loans and overdrafts are secured hold a fixed and floating charge over all the property or undertakings of the charitable company.
## **17a. STATEMENT OF FUNDS (GROUP)**
|General funds
Restricted funds
|**Brought**
**Forward**
**1 August**
**2019**
**£**
**2,127,880**
**197,627**|**Income**
**£**
**2,028,108**
**24,464**|**Expenditure**
**£**
**(2,000,470)**
**(12,575)**
|**Carried**
**Forward**
**31 July**
**2020**
**£**
**2,155,518**
**209,516**|
|---|---|---|---|---|
||**2,325,507**|
**2,052,572**|
**(2,013,045)**|**2,365,034**|
## **STATEMENT OF FUNDS (GROUP) - PREVIOUS YEAR**
|General funds
Restricted funds
|**Brought**
**Forward**
**1 August**
**2018**
**£**
**2,244,584**
**184,389**|**Income**
**£**
**1,588,328**
**23,366**|**Expenditure**
**£**
**(1,705,032)**
**(10,128)**
|**Carried**
**Forward**
**31 July**
**2019**
**£**
**2,127,880**
**197,627**|
|---|---|---|---|---|
||**2,428,973**|
**1,611,694**|
**(1,715,160)**|**2,325,507**|
See accounting policy 1.3 for description, nature and purposes of the general funds and restricted funds.
Page 33
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **17b. STATEMENT OF FUNDS (COMPANY)**
|**Brought**
**Forward**
**1 August**
**2019**
**£**
General funds
**2,182,797**
Restricted funds
**197,627**
**2,380,424**
**STATEMENT OF FUNDS (COMPANY) - PREVIOUS YEAR**
**Brought**
**Forward**
**1 August**
**2018**
**£**
General funds
**2,250,878**
Restricted funds
**184,389**
**2,435,267**|**Brought**
**Forward**
**1 August**
**2019**
**£**
**2,182,797**
**197,627**|**Income**
**£**
**1,623,521**
**24,464**|**Expenditure**
**£**
**(1,788,961)**
**(12,575)**
|**Carried**
**Forward**
**31 July**
**2020**
**£**
**2,017,357**
**209,516**|
|---|---|---|---|---|
||**2,380,424**|
**1,647,985**|
**(1,801,536)**|**2,226,873**|
|||
**Income**
**£**
**1,189,912**
**23,366**|
**Expenditure**
**£**
**(1,257,993)**
**(10,128)**
|
**Carried**
**Forward**
**31 July**
**2019**
**£**
**2,182,797**
**197,627**|
||**2,435,267**|
**1,213,278**|**(1,268,121)**|**2,380,424**|
See accounting policy 1.3 for description, nature and purposes of the general funds and restricted funds.
Page 34
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**Unrestricted**
**funds**
**2020**
**£**
Intangible fixed assets
**(331,563)**
Tangible fixed assets
**2,086,416**
Investment property
**331,563**
Current assets
**950,566**
Creditors amounts falling due within one year
**(297,967)**
Creditors amounts falling due after more than one year
**(583,498)**
**2,155,517**|**Restricted**
**funds**
**2020**
**£**
**-**
**209,517**
**-**
**-**
**-**
**-**
**209,517**|**Total**
**funds**
**2020**
**£**
**(331,563)**
**2,295,933**
**331,563**
**950,566**
**(297,967)**
**(583,498)**
**2,365,034**|
|---|---|---|
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PREVIOUS YEAR**
|Intangible fixed assets
Tangible fixed assets
Investment property
Current assets
Creditors due within one year
|_Unrestricted_
_funds_
_2019_
_£_
**(331,563)**
**1,542,140**
**331,563**
**883,855**
**(298,115)**|_Restricted_
_funds_
_2019_
_£_
**-**
**197,627**
**-**
**-**
**-**
|_Total_
_funds_
_2019_
_£_
**(331,563)**
**1,739,767**
**331,563**
**883,855**
**(298,115)**
**2,325,507**|
|---|---|---|---|
||**2,127,880**|**197,627**||
Page 35
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **19. SHARE CAPITAL**
The company has no share capital but is limited by guarantee. Every member of the company undertakes to contribute up to £10 in the event of the company being wound up.
In these circumstances, any surplus assets are to be transferred to another charitable institution with similar objects to the company and similar restrictions on distribution of assets to members.
## **20. RELATED PARTY TRANSACTIONS**
The company has taken advantage of the exemption under FRS 102.33.1A to not disclose transactions with other members of the group. There are no other related party transactions during the period (2019 - £nil).
## **21. CONTROL**
Ultimate control of the company lies with the board of directors.
## **22. COMMITMENTS**
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|||**Group**
_2019_
_£_
17,813
7,024
_24,837_|||**Company**
_2019_
_£_
-
**-**|
|---|---|---|---|---|---|---|
|||**2020**
**£**
**50,558**
**140,414**
**190,972**|||**2020**
**£**
**42,664**
**138,659**
**181,323**||
|||||||_-_|
At the reporting end date the group had contracted with tenants for the following minimum lease rental receipts:
|Within one year
Between two and five years|||**Group**
_2019_
_£_
38,000
98,167
_136,167_|||**Company**
_2019_
_£_
**-**
**-**|
|---|---|---|---|---|---|---|
|||**2020**
**£**
**38,000**
**60,167**
**98,167**|||**2020**
**£**
**-**
**-**
||
||||||**-**|_-_|
Page 36
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **23. STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2019**
|**INCOME FROM:**
Charitable activities
Investments
Other income - ESFA Grants
**TOTAL INCOME**
**EXPENDITURE ON:**
Charitable activities
**TOTAL EXPENDITURE**
**NET INCOME / (EXPENDITURE) AND NET**
**MOVEMENT IN FUNDS FOR THE YEAR**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|_Unrestricted_
_funds_
_2019_
_£_
_463,128_
_39,457_
_1,085,743_
_1,588,328_
_1,705,032_
_1,705,032_
_(116,704)_
_2,244,584_
_2,127,880_|_Restricted_
_funds_
_2019_
_£_
-
-
_23,366_
_23,366_
_10,128_
_10,128_
_13,238_
_184,389_
_197,627_|_Total_
_funds_
_2019_
_£_
_463,128_
_39,457_
_1,109,109_
_1,611,694_
_1,715,160_|
|---|---|---|---|
||||
_1,715,160_|
||||
_(103,466)_
_2,428,973_|
||||
_2,325,507_|
Page 37
## **APPRIS CHARITY LIMITED**
## **(A company limited by guarantee)**
## **COMPANY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020**
||**Year**|**ended**|**Year ended**|**Year ended**|
|---|---|---|---|---|
||**31 July 2020**||**31 July 2019**||
||**£**|**£**|**£**|
**£**|
|INCOME|||||
|Rent receivable|98,912||98,900||
|Loan interest receivable|4,068||4,712||
|Bank interest receivable|118||557||
|ESFA funding and grants|1,506,021||1,085,743||
|UFI grants|14,400||-||
|Other income – restricted funds|24,464||23,366||
||_______||_______||
|||1,647,983|1,213,278||
|EXPENSES|||||
|Administration expenses (see below)||(1,801,535)|(1,268,121)||
|||_______||_______|
|DEFICIT ON ORDINARY|||||
|ACTIVITIES||(153,552)||(54,843)|
|||**_______**|**__ ____**||
|ADMINISTRATION EXPENSES|||||
|Insurance|1,708||1,275||
|Rates & water|6,754||4,893||
|Training fees|64,068||64,712||
|ESFA grants|1,506,021||1,085,743||
|Accountancy fees|1,357||-||
|Auditors remuneration|2,250||2,110||
|Sundry expenses|544||155||
|Bank charges|6,636||60||
|Legal and professional|45,624||-||
|Equipment leasing|36,903||-||
||_______||_______||
|||1,671,865|1,158,948||
|Depreciation:|||||
|Freehold property|37,106||28,943||
|Plant and machinery|47,866||44,055||
|Fixtures and fittings|32,123||26,047||
|Fixtures and fittings – restricted funds|12,575||10,128||
||______||______||
|||129,670||109,173|
|||________|________||
|||1,801,535|1,268,121||
|||**__ _____**||**_______**|
_**This page does not form part of the statutory financial statements**_ **.**
Page 38