**Registered number: 1802908 Charity number: 515473**
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2020**
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 10|
|**Independent auditors' report on the financial statements**|11 - 14|
|**Consolidated statement of financial activities**|15|
|**Consolidated balance sheet**|16|
|**Company balance sheet**|17 - 18|
|**Consolidated statement of cash flows**|19|
|**Notes to the financial statements**|20 - 36|
**(A company limited by guarantee)**
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020**
|**Trustees**|L J Ducket|
|---|---|
||P McCooey|
||L G Harman|
||Cllr S R Kirk|
|**Company registered**
**number**
1802908
**Charity registered**
**number**
515473
**Registered office**
Unit 3
Louth Station Estate
Louth
LN11 0JT
**Company secretary**
P McCooey
**Chief executive officer**
I Dickinson
**Independent auditors**
Streets Audit LLP
Chartered Accountants and Statutory Auditor
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
**Solicitors**
Langleys
Olympic House
995 Doddington Road
Lincoln
LN6 3SE
**Bankers**
Lloyds TSB
Nottingham BSC
11 Low Pavement
Nottingham
NG1 7DQ||
Page 1
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(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 Company for the year 1 August 2019 to 31 July 2020. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
It is understood that our services need to be beneficial in general and to a wide section of the community to comply with The Charity Commission.
The charity's objectives as set out within the Memorandum of Association of East Lindsey Information Technology Centre are:
1. The promotion and advancement of education and training of the public, including the long term unemployed to acquire vocational qualifications and work related skills as required by local employers and industries as well as meeting national government targets by means of both instructor led, self study courses and the provision of practical experience.
2. The relief of unemployment for the public benefit in such a way as may be thought fit, including assistance to find employment.
Additionally set out within our business plan we have the following company objectives:
1. To remain financially viable
2. To provide high quality learning services
3. To adhere to our customer service values
4. To provide staff with a positive, rewarding and safe working environment
Page 2
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Objectives and activities (continued)**
The company vision is to deliver high quality learning that raises participation and attainment while meeting the individual needs of learners through collaborative partnership working and employer engagement. First College is established to promote and provide for the advancement of the education and training of young persons and adults.
First College works closely with some 200 local employers and with Schools and Colleges of Further Education. First College primarily serves the East Lindsey area to the benefit of young people and adults with training, leading to the attainment of recognised qualifications and employment. First College is a member of the Work Based Learning Alliance Ltd of Lincolnshire and Rutland, and also a member of the Association of Employment Learning Providers, which is the national body representing provider views. The Business Manager is a Director of the Work Based Learning Alliance Ltd and is on the Board of the Employment Skills Board of the Greater Lincolnshire Local Enterprise Partnership.
## **Achievements and performance**
## **a. Review of activities**
## **Planned Developments 2019/20 and results**
_Complete all activities to comply with Cyber Essentials Plus and IASME Certification_
Cyber Essentials has been achieved. Cyber Essentials plus accreditation has been moved to a future date. IASME Certification was deemed to be above and beyond what was necessary.
_Roll out the full use of Egress Managed Workspace as an encrypted communication tool._
Egress managed workspace was initially adopted as planned, but we have since moved away from this application due to the installation of our own server and using it within Microsoft Teams through Sharepoint to offer the same benefits.
_Continue to tender for / secure Levy Employer Contracts and consider expanding our geographic coverage._
Levy contracts are continuing and in terms of our larger employers ie NHS, PSPL and ELDC we are expanding our geographical areas.
_Re-engage with our Non-Levy Employer customer base for the delivery of Digital Accounts._
Non-levy employer digital accounts are now live for all nain providers to work with. We have reengaged with many of our known employers as well as many new employers through this system. Approximately 50% of our current vacancies are Non-Levy Digital Accounts. It is employer choice but many of our employers provide us access so that we can ensure their funding is secured.
Page 3
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Achievements and performance (continued)**
_Introduce new learning to achieve the Adult Education Budget contract profiles_ .
Course development is ongoing. Some of the courses developed include ICT level 1 and 2, Customer Service Level 1, Administration Level 2, Retail Level 2, Introduction to Hospitality Level 1, Kitchen Management Level 3 etc. More recently we have expanded our delivery of health and wellbeing courses.
_Develop staff in the direction of training delivery to fit with funded guided learning activities._
Due to the pandemic during the year, the emphasis on upfront training delivery moved to online delivery, as we did not have students within our centres.
_Continue to be proactive with GLLEP/ESB and Collaboration group partners for the benefits of future joint bidding as and when opportunities become available_ .
Ian Dickinson continues to be a board member of GLLEP and represents independent training providers in Lincolnshire. There have not been any opportunities for joint bidding in the year.
_Enhance interest in First College via Social media by upping the supply content and staff sharing._
We have a significant social media presence which includes Facebook, Twitter, and Instagram. Staff continue to be encouraged to supply case studies and we have a dedicated member of staff preparing and releasing content.
_Introduce Apprenticeship Standards and End-point assessment activities across all occupational area’s and partner organisations._
All occupational areas now deliver Apprenticeship Standards only, this became effective from 01 August 2020. Further Standards development is ongoing as new and revised standards are introduced.
_Develop Full cost provision ideas into revenue producing activities through the Think Tank model and invest where required._
We have significantly developed our full cost provision offer and we can now deliver a variety of short courses as wells as longer training provisions.
_Develop marketing materials to be up to date and appropriate_ .
Most of our marketing has been online and therefore physical materials have not been required.
_Tender for the procurement of Schools meals delivery at Seathorne School BM/CM._
No tender took place but instead we were given an extension until August 2021 (due to the pandemic).
_Successful re-assessment against Matrix Standard in June 2020 in support of changes in the Common Inspection Framework Trustee_ .
## Achieved.
_Trustees to be named in relation to specific learning activities._
Louis Harman was nominated and appointed as our First College Learning Champion. Louis visited First
Page 4
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Achievements and performance (continued)**
College in January 2020 and met with learners, employers and staff. Louis was to visit again in September 2020 but due to lockdown this visit was postponed
## **b. Fundraising activities and income generation**
First College does not fundraise.
## **Financial review**
## **a. Going concern**
During the year and subsequent to the year end, the UK has experienced a pandemic of the Coronavirus. The potential effects to the charity and its future prospects cannot be fully quantified but the trustees remain committed to the protection of the charity. This is being regularly reviewed by the trustees. In addition the trustees are mindful of the significant ongoing support offered by the UK Government. Accordingly the financial statements have been prepared on a going concern basis.
## **b. Reserves policy**
The Charity holds reserves to ensure funds are available to maintain high quality training facilities, including up to date equipment and a safe working environment. In addition, Reserves are held to ensure continuity in the event of a large variation in the net income and to bridge any cash flow problems. The Board aims to maintain an adequate level of reserves. This is expected to be 3 months running costs and the cost of a planned and managed closure of the Charity.
Reserves at year end totalled £1.12M (of which £14k are Restricted Funds).
Reserves have decreased by £164,236 from activities during the year ended 31 July 2020. Contributing factors for the reduction in reserves include the loss of the non-levy contract as well as reduced activity as a result of the COVID pandemic.
Three months running costs and a planned closure are estimated at £404k. The Board actively seeks ways to utilise the organisation's reserves to advance the organisation relative to its business objectives.
## **Structure, governance and management**
## **a. Constitution**
East Lindsey Information Technology Centre is a registered charity, number 515473, and a registered company, number 1802908. Its governing document is its Articles of Association.
The company carries out its activities under the trading name of “First College”.
The financial statements comply with current statutory requirements and the company’s governing document and Statement of Recommended Practice Accounting and Reporting by Charities.
Page 5
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Structure, governance and management (continued)**
## **b. Methods of appointment or election of Trustees**
The company may by ordinary resolution appoint a person willing to act as a trustee. For appointment at an AGM, formal notice is required as specified in the memorandum and articles. The existing trustees may appoint a person who is willing to act as a trustee. There is no maximum number of trustees but there must be at least 3 in office at any time.
## **c. Organisational structure and decision-making policies**
The registered office and names and addresses of Advisers are set out on the Index page.
The Trustees during the year under review are set out on the Index page. No remuneration was paid nor expenses reimbursed to them during the year. However, some of the trustees represent companies that purchase training services from the company as disclosed in the notes to the accounts.
The Company’s premises are in Louth and Skegness. First College provides learning through its centres, outreach delivery and employers premises.
East Lindsey ITeC is sponsored by 4 local organisations. Each sponsor organisation provides up to two people to serve as directors and trustees on the East Lindsey ITeC Board. The Board sets policy, monitors progress and strives to provide good and sound governance.
The Senior Management function for First College has been deployed between two equal Senior Manager Roles, which report directly to the Board of Trustees. These are the Business Manager and the Learning Contracts Manager.
The **Business Manager** is responsible for leading company strategic planning and the implementation of policy, whilst ensuring that the company meets all legislative requirements including those related to personnel, charity commission, health and safety, safeguarding and equality and diversity. In addition, the Business Manager has responsibility for the company’s finance, administrative activities and the securing of new contracts/new opportunities.
The **Learning Contracts Manager** is responsible for the delivery of all learning operations of the college including contract delivery, as well as ensuring that the college meets all self assessment and quality requirements including internal and external audits and/or inspections. In addition, the Learning Contracts Manager supports strategic planning and the implementation of policy.
The First College organisational structure is based on the **Learning & Business Function** . The areas are Business, Early Years, Employability, Hospitality, ICT, Recruitment, Employer Engagement and School Meals. Each learning area has one person designated as a Team Leader. Team Leaders take a leading role in operational, performance and quality development matters.
The **Health & Safety Manager/Customer Assurance Adviser** is responsible for leading Health & Safety, Safeguarding and Equality & Diversity. This includes maintaining operating manuals, company health & safety setups and ongoing checks. The Customer Assurance side of the role involves activities including audits to implement, maintain and review customer focused quality systems of work.
Page 6
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Structure, governance and management (continued)**
The **Learning Development Manager** is responsible for identifying creative and innovative solutions to achieving learner aims that both integrate and streamline all learning delivery whilst promoting effective and efficient team working. The Learning Development Manager will review and implement revised learner processes providing staff with clear instruction.
The **Catering Manager – School Meals** is responsible for the delivery of school meals at two premises ensuring that quality is mirrored and maintained. The role includes working with schools to promote healthy eating in general and increase take up of school meals. Supporting the Food for Life Partnership and attending meetings to assist schools in becoming accredited themselves.
The **Lead Internal Quality Assurer (LIQA)** is responsible for ensuring that learning programmes, support provided to staff, processes and systems are continually monitored for maximum effectiveness and cross college consistency. The Lead Internal Quality Assurer will take a lead role in all matters relating to quality improvement including assessment, internal verification, awarding body liaison and ENVQ.
The **Quality Assurance Team (QA)** consists of the Quality Assurance representative from each learning function, the Learning Development Manager and is led by the Learning Contracts Manager. The role of the Quality Assurance Team is to ensure that Learning Programmes are delivered in accordance with Contract, Inspectorate and External Body requirements. The Quality Assurance Team is tasked to provide best practice in quality related matters including continuous improvement for the benefit of all Learners, the recognition and implemention of good practice and the monitoring of performance against targets and objectives, taking preventative and corrective actions as appropriate and necessary. Other staff are invited to attend quality assurance meetings to cover specific agenda items.
## **Working Groups**
The organisational structure is supplemented and supported by Working Groups comprising of staff from various areas to concentrate on specific topics and tasks. Wide involvement by staff is welcomed and encouraged. The Working Groups listed here were active in 19/20.
- Strategy Group
- Compliance Group
- Communication Group
- Quality Systems / Self Assessment and Inspection Working Group (QSWG)
- Internal Quality Assurance and Assessment Standardisation Group
## **Strategy Group**
The Strategy Group is led by the Business Manager and comprises of the Learning Contracts Manager and Finance Manager. The Strategy Group considers operational and strategic issues. It consults and liaises with Staff, Managers and Trustees as appropriate.
## **Internal Quality Assurance Assessment and Standardisation Group**
The Learning Development Manager/Lead IQA leads this group, which is responsible for ensuring best practice and standardisation across the whole college with all internal quality assurance and assessment processes. The group is attended by all Internal Quality Assurance staff.
Page 7
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Structure, governance and management (continued)**
## **Compliance Group**
The Compliance Group exists to ensure the company remains legal in relation to all areas affecting our business. The group consists of the Business Manager, the Health and Safety Manager and the Personnel Adviser. The Health and Safety Manager advises on First College legal obligations in relation to Health and Safety, Safeguarding, Welfare and Equality and Diversity. The group maintain all policies relating to these areas. The Business Manager will bring some other legal obligations to the meeting where appropriate, these can include Employment Law, Company Law and Charity Commission rules and regulations. The Business Manager is responsible for all staff employment conditions which include the contents of the Staff Handbook and all policy documents. These other policy documents are also reviewed within the Compliance Group.
## **Communication Group**
The Communication Group exists to ensure that there is an ongoing and clear understanding of Contracts Performance, Quality Assurance and other factors affecting First College. The group will review and discuss Contract performance, Financial performance, delivery in accordance with Contract, Inspectorate and External Body requirements, Self Assessment, Business Support including Marketing, Legal obligations, Infrastructure including Premises and IT. The Learning Contracts Manager will lead on matters relating to the Learning Function of First College and the Business Manager will lead on matters relating to the Business Function of First College. The Learning Contracts Manager and the Business Manager will agree agenda items in advance of meetings. The Learning Contracts Manager will Chair the meetings. Attending the meetings will be all Teams Leaders, the Learning Development Manager and the Health and Safety Manager. Other staff are invited to attend quality assurance meetings to cover specific agenda items.
## **Quality Systems / Self Assessment and Inspection Working Group (QSWG)**
The Quality Assurance Manager leads this group which keeps First College up to date on best practice in quality related matters. The Group maintains the Quality Management Manual (QMM). The group takes a leading role in all matters relating to self assessment, audit, action planning and external inspection, whilst liaising closely with the Internal Quality Assurance Assessment and Standardisation and Compliance Groups. The group is also attended by the Learning Development Manager LQA/LIQA and the Customer Assurance Advisors.
## **Equality and Diversity**
The Board will consider Equality and Diversity issue at its Board Meetings on an ongoing basis and will annually review all policies and other communication that relate to Equality and Diversity.
## **Data Protection**
The Board will consider Data Protection issues at its Board Meetings on an ongoing basis and will annually review all policies that relate to Data Protection.
## **Safeguarding**
The Board will consider Safeguarding issues at its Board Meetings on an ongoing basis and will annually review all policies that relate to Safeguarding.
Note: Other Staff Groups and/or Forums are brought together from time to time to address matters that may require a specific input; these can include Marketing etc.
Page 8
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Structure, governance and management (continued)**
## **Board Committee**
## **Remuneration Committee**
A selected group of Trustees and the Business Manager carry out an annual review of staff terms and conditions of service including salary, pension and travel arrangements that will be applied to all staff (including key management) annually. Any amendments required during the year as a result of a change in performance or job content are enacted by the Business Manager (working with in a +/ 10%) and reported to the Committee. The Board will follow Remuneration Committee recommendations.
## **d. Policies adopted for the induction and training of Trustees**
On appointment, all new trustees will be provided with the following documents:
- Memorandum of Association
- Articles of Association
- Charity Commission Guidance CC3 Responsibility of Charity Trustees
- The latest Strategic Business Plan and a copy of the latest Financial Statements
## **e. Financial risk management**
The Trustees have assessed the major risks to which the Group and the Company are exposed, in particular those related to the operations and finances of the Group and the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Plans for future periods**
1. Continue to tender for / secure Levy Employer Contracts and consider expanding our geographic area.
2. Re-engage with our Non-Levy Employer customer base for the delivery of Digital Accounts.
3. Introduce new learning to achieve the Adult Education Budget contract profiles.
4. Continue to be proactive with GLLEP/ESB and Collaboration group partners for the benefits of future joint bidding as and when opportunities become available.
5. Enhance interest in First College via social media by upping the supply of content and staff training
6. E-Learning delivery mechanisms for all activities to remain under constant review.
7. Introduce Apprenticeship Standards and End-point assessment activity across all occupational areas and partner organisations.
8. Develop Full Cost provision ideas into revenue producing activities through the Think Tank model and invest where required.
9. Develop marketing materials so as to be up to date and appropriate.
Page 9
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Company 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, 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 of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) 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 Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
## **Auditors**
The auditors, Streets Audit LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on _________________________________________________ and signed on their behalf by:
................................................ **P McCooey**
Page 10
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **Opinion**
We have audited the financial statements of East Lindsey Information Technology Centre (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 July 2020 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, 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 of the 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
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 the 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 11
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (CONTINUED)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors' 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.
## **Opinion 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 for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' 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 Trustees' report and from the requirement to prepare a Strategic report.
Page 12
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (CONTINUED)**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, 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 the 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.
## **Auditors' responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 auditors' report.
## **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, 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 those matters we are required to state to them in an auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
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**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (CONTINUED)**
## **Robert Anderson FCA (senior statutory auditor)**
for and on behalf of **Streets Audit LLP**
Chartered Accountants and Statutory Auditor
Tower House
Lucy Tower Street Lincoln LN1 1XW
Date:
Page 14
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (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:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income**
**Expenditure on:**
Raising funds
7
Charitable activities
8
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**817**
**817**
**(817)**
**14,487**
**(817)**
**13,670**|**Unrestricted**
**funds**
**2020**
**£**
**127,079**
**836,508**
**261,567**
**643**
**1,225,797**
**266,104**
**1,123,112**
**1,389,216**
**(163,419)**
**1,270,318**
**(163,419)**
**1,106,899**|**Total**
**funds**
**2020**
**£**
**127,079**
**836,508**
**261,567**
**643**
**1,225,797**
**266,104**
**1,123,929**
**1,390,033**
**(164,236)**
**1,284,805**
**(164,236)**
**1,120,569**|**Total**
**funds**
_2019_
_£_
_5,000_
_910,666_
_410,553_
_974_
_1,327,193_
_-_
_1,550,700_
_1,550,700_
_(223,507)_
_1,508,312_
_(223,507)_
_1,284,805_|
|---|---|---|---|---|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 20 to 36 form part of these financial statements.
Page 15
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee) REGISTERED NUMBER: 1802908**
## **CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020**
|**Note**
**Fixed assets**
Tangible assets
13
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**1,031**
**177,316**
**787,878**
**966,225**
**(82,507)**|**2020**
**£**
**236,851**
**236,851**
**883,718**
**1,120,569**
**1,120,569**
**1,120,569**
**13,670**
**1,106,899**
**1,120,569**|_1,922_
_161,423_
_981,999_
_1,145,344_
_(103,940)_|_2019_
_£_
_243,401_|
|---|---|---|---|---|
|||||_243,401_
_1,041,404_|
|||||_1,284,805_|
|||||_1,284,805_|
|||||_1,284,805_|
|||||_14,487_
_1,270,318_|
|||||_1,284,805_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ and signed on their behalf by:
## **P McCooey** Trustee
The notes on pages 20 to 36 form part of these financial statements.
Page 16
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee) REGISTERED NUMBER: 1802908**
## **COMPANY BALANCE SHEET AS AT 31 JULY 2020**
|**Note**
**Fixed assets**
Tangible assets
13
Investments
14
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**|**-**
**280,887**
**691,511**
**972,398**
**(82,142)**|**2020**
**£**
**236,851**
**3**
**236,854**
**890,256**
**1,127,110**
**1,127,110**
**1,127,110**|_1,922_
_161,420_
_981,999_
_1,145,341_
_(103,940)_|_2019_
_£_
_243,401_
_3_|
|---|---|---|---|---|
|||||_243,404_
_1,041,401_|
|||||_1,284,805_|
|||||_1,284,805_|
|||||_1,284,805_|
Page 17
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee) REGISTERED NUMBER: 1802908**
## **COMPANY BALANCE SHEET (CONTINUED) AS AT 31 JULY 2020**
|**Note**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**2020**
**£**
**14,340**
**1,112,770**
**1,127,110**|_2019_
_£_
_14,487_
_1,270,318_|
|---|---|---|
|||_1,284,805_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ and signed on their behalf by:
**P McCooey** Trustee
The notes on pages 20 to 36 form part of these financial statements.
Page 18
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 20 to 36 form part of these financial statements|**2020**
**£**
**(172,364)**
**643**
**(22,400)**
**(21,757)**
**-**
**(194,121)**
**981,999**
**787,878**|_2019_
_£_
_(174,139)_
_974_
_(13,530)_
**(12,556)**
**-**
**(186,695)**
_1,168,694_
_981,999_|
|---|---|---|
Page 19
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1. General information**
As set out in the trustees' report, East Lindsey information Technology Centre is an incorporated charity registered in England and Wales. The address of their registered office is First College, Unit 3, Louth Station Estate, Louth, LN11 0JT.
These financial statements have been prepared in sterling, which is the functional currency of the entity.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
East Lindsey Information Technology Centre 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 consolidated statement of financial activities (SOFA) and consolidated 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 Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.
## **2.2 Going concern**
During the year and subsequent to the year end, the UK has experienced a pandemic of the Coronavirus. The potential effects to the charity and its future prospects cannot be fully quantified but the trustees remain committed to the protection of the charity. This is being regularly reviewed by the trustees. In addition the trustees are mindful of the significant ongoing support offered by the UK Government. Accordingly the financial statements have been prepared on a going concern basis.
## **2.3 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.
Grants are included in the consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 20
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **2. Accounting policies (continued)**
## **2.4 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.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the consolidated statement of financial activities as the related expenditure is incurred.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Tangible fixed assets and depreciation**
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
|Freehold property|- 4% straight line (land is not depreciated)|
|---|---|
|Short-term leasehold property|- 10% straight line|
|Office equipment|- 25% straight line|
|Computer equipment|- 33% straight line|
Page 21
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **2. Accounting policies (continued)**
## **2.8 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 the 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 presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.9 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.10 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.
## **2.11 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.
## **2.12 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 in the consolidated statement of financial activities as a finance cost.
## **2.13 Financial instruments**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 22
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **2. Accounting policies (continued)**
## **2.14 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.15 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 Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 23
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **3. Income from donations and legacies**
|Donations
Government grants
**Total 2019**|**Restricted**
**funds**
**2020**
**£**
-
-
-
_5,000_|**Unrestricted**
**funds**
**2020**
**£**
-
127,079
127,079
_-_|**Total**
**funds**
**2020**
**£**
**-**
**127,079**
**127,079**
_5,000_|_Total_
_funds_
_2019_
_£_
_5,000_
_-_
_5,000_|
|---|---|---|---|---|
||||||
Government grants relate to the Covid-19 pandemic and include business support grants in addition to grants under the Coronavirus Job Retention Scheme.
## **4. Income from charitable activities**
|Adult Income
Youth Income
Commercial training and services
**Total 2020**|**Unrestricted**
**funds**
**2020**
**£**
230,055
498,360
108,093
836,508|**Total**
**funds**
**2020**
**£**
**230,055**
**498,360**
**108,093**
**836,508**|_Total_
_funds_
_2019_
_£_
_131,046_
_640,979_
_138,641_
_910,666_|
|---|---|---|---|
Page 24
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **5. Income from other trading activities**
## **Income from non charitable trading activities**
|School Meals Provision- First Meals Limited
School Meals Provision
**Total 2020**
**Investment income**
Investment income - local cash|**Unrestricted**
**funds**
**2020**
**£**
261,567
-
261,567
**Unrestricted**
**funds**
**2020**
**£**
643|**Total**
**funds**
**2020**
**£**
**261,567**
**-**
**261,567**
**Total**
**funds**
**2020**
**£**
**643**|_Total_
_funds_
_2019_
_£_
_-_
_410,553_
_410,553_|
|---|---|---|---|
||||_Total_
_funds_
_2019_
_£_
_974_|
## **6. Investment income**
## **7. Expenditure on raising funds**
## **Other trading expenses**
|**Unrestricted**
**funds**
**2020**
**£**
First Meals - operating costs
130,825
First meals- staff costs
135,279
**Total 2020**
266,104|**Total**
**funds**
**2020**
**£**
**130,825**
**135,279**
**266,104**|_Total_
_funds_
_2019_
_£_
_-_
_-_
_-_|
|---|---|---|
Page 25
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **8. Analysis of expenditure on charitable activities Summary by fund type**
|Charitable Activities
**Total 2019**
**9.**
**Analysis of expenditure by activities**
Charitable Activities
**Total 2019**
**Analysis of direct costs**
Staff costs
Materials and purchases
Subcontract tutors
Staff travel
Trainee allowances
Telephone
**Total 2020**|**Restricted**
**funds**
**2020**
**£**
817
_488_
**Activities**
**undertaken**
**directly**
**2020**
**£**
949,664
_1,338,639_|**Unrestricted**
**funds**
**2020**
**£**
1,123,112
_1,550,212_
**Support**
**costs**
**2020**
**£**
174,265
_212,061_
**Charitable**
**Activities**
**2020**
**£**
771,366
66,080
81,294
22,759
147
8,018
949,664|**Total**
**funds**
**2020**
**£**
**1,123,929**
_1,550,700_
**Total**
**funds**
**2020**
**£**
**1,123,929**
_1,550,700_
**Total**
**funds**
**2020**
**£**
**771,366**
**66,080**
**81,294**
**22,759**
**147**
**8,018**
**949,664**|_Total_
_funds_
_2019_
_£_
_1,550,700_|
|---|---|---|---|---|
|||||_Total_
_funds_
_2019_
_£_
_1,550,700_|
|||||_Total_
_funds_
_2019_
_£_
_955,394_
_250,661_
_86,626_
_36,537_
_488_
_8,933_
_1,338,639_|
Page 26
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **9. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Depreciation
Rent and rates
Light and heat
Repairs and renewals
Advertising
Staff travel and training
Printing, postage and stationary
Insurance
Legal and professional
Bank charges
VAT absorbed
Sundry
Hire of equipment
Profit on disposals
Bad debt provision
**Total 2020**|**Total**
**funds**
**2020**
**£**
**28,950**
**27,715**
**7,012**
**42,523**
**3,231**
**5,468**
**5,528**
**5,441**
**5,224**
**28**
**22,269**
**12,706**
**3,688**
**4,482**
**-**
**174,265**|_Total_
_funds_
_2019_
_£_
_25,892_
_29,034_
_8,382_
_54,541_
_5,506_
_5,640_
_6,259_
_6,658_
_4,984_
_-_
_19,120_
_29,705_
_9,805_
_6,725_
_(190)_
_212,061_|
|---|---|---|
## **10. Auditors' remuneration**
_-_ The auditors' remuneration amounts to an auditor fee of £3,500 _(2019 £3,500)_ , and accountancy, taxation and support services of of £2,200 ( _2019_ - _£2,200_ ).
Page 27
**(A company limited by guarantee)**
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **11. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2020**
**£**
**798,244**
**59,620**
**48,781**
**906,645**|**Group**
_2019_
_£_
_839,910_
_64,375_
_51,109_
_955,394_|**Company**
**2020**
**£**
**678,651**
**51,948**
**40,767**
**771,366**|**Company**
_2019_
_£_
_839,910_
_64,375_
_51,109_|
|---|---|---|---|---|
|||||_955,394_|
The average number of persons employed by the Company during the year was as follows:
||**Group**|**Group**|
|---|---|---|
||**2020**|_2019_|
||**No.**|_No._|
|All staff|**41**|_41_|
No employee received remuneration amounting to more than £60,000 in either year.
The key management personnel of the charity are the Business Manager and the Contracts Manager. The total employee benefits paid to the two members of key management personnel including national insurance and pension contributions (2019: two members) was £134,034 (2019: £134,034).
## **12. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2019 - £NIL)_ .
During the year ended 31 July 2020, no Trustee expenses have been incurred _(2019 - £NIL)_ .
Page 28
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **13. Tangible fixed assets**
## **Group and Company**
|**Cost**
At 1 August 2019
Additions
Disposals
At 31 July 2020
**Depreciation**
At 1 August 2019
Charge for the year
At 31 July 2020
**Net book value**
At 31 July 2020
_At 31 July 2019_|**Freehold**
**property**
**£**
**572,829**
**-**
**-**
**572,829**
**361,290**
**12,316**
**373,606**
**199,223**
_211,539_|**Short-term**
**leasehold**
**property**
**£**
**94,138**
**-**
**-**
**94,138**
**93,529**
**157**
**93,686**
**452**
_609_|**Office**
**equipment**
**£**
**165,577**
**3,464**
**-**
**169,041**
**142,119**
**9,962**
**152,081**
**16,960**
_23,458_|**Computer**
**equipment**
**£**
**250,112**
**21,446**
**(2,510)**
**269,048**
**242,317**
**6,515**
**248,832**
**20,216**
_7,795_|**Total**
**£**
**1,082,656**
**24,910**
**(2,510)**
**1,105,056**
**839,255**
**28,950**
**868,205**
**236,851**
_243,401_|
|---|---|---|---|---|---|
Page 29
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **14. Fixed asset investments**
|**Company**
**Cost or valuation**
At 1 August 2019
**At 31 July 2020**
**Net book value**
**At 31 July 2020**
_At 31 July 2019_|**Investments**
**in**
**subsidiary**
**companies**
**£**
**3**|
|---|---|
||**3**|
||**3**|
||_3_|
## **15. Principal subsidiaries**
The following were subsidiary undertakings of the Company:
|**Names**|**Company**|**Principal activity**|**Principal activity**|**Class of**|**Holding**|
|---|---|---|---|---|---|
||**number**|||**shares**||
|First Meals Limited|10729159|School meal provision Ordinary|||100%|
|The Big Idea (Lincolnshire) CIC|08158999|Dormant||Ordinary|100%|
|The financial results of the subsidiaries|for the year were:|||||
|**Names**||**Income**|**Expenditure**||**Profit/(Loss)**|
|||**£**||**£**|**/ Surplus/**|
||||||**(Deficit) for**|
||||||**the year**|
||||||**£**|
|First Meals Limited||**261,567**||**268,108**|**(6,541)**|
The financial results of the subsidiaries for the year were:
The net assets of First Meals Limited at the year end were £6,540 and the net assets of The Big Idea (Lincolnshire) CIC were £2. The Big Idea (Lincolnshire) CIC was dormant throughout the current and previous year. The registered office of the susidiairies is Unit 3 Louth Station Estate Louth Lincolnshire LN11 0JT.
Page 30
**(A company limited by guarantee)**
## **EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **16. Stocks**
|Raw materials and consumables
**17.**
**Debtors**
**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2020**
**£**
**1,031**
**Group**
**2020**
**£**
**52,533**
**-**
**94,100**
**30,683**
**177,316**|**Group**
_2019_
_£_
_1,922_
**Group**
_2019_
_£_
_45,519_
_-_
_75,026_
_40,878_
_161,423_|**Company**
**2020**
**£**
**-**
**Company**
**2020**
**£**
**45,297**
**110,842**
**94,100**
**30,648**
**280,887**|**Company**
_2019_
_£_
_1,922_|
|---|---|---|---|---|
|||||**Company**
_2019_
_£_
_45,516_
_-_
_75,026_
_40,878_|
|||||_161,420_|
## **18. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Pension fund loan payable
Accruals and deferred income|**Group**
**2020**
**£**
**26,184**
**16,073**
**9,077**
**31,173**
**82,507**|**Group**
_2019_
_£_
_34,024_
_37,951_
_6,417_
_25,548_
_103,940_|**Company**
**2020**
**£**
**25,177**
**20,020**
**9,077**
**27,868**
**82,142**|**Company**
_2019_
_£_
_34,024_
_37,951_
_6,417_
_25,548_|
|---|---|---|---|---|
|||||_103,940_|
Page 31
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **19. Statement of funds**
|**Statement of funds - current year**
**Balance at 1**
**August 2019**
**£**
**Unrestricted funds**
General Funds
**1,270,318**
**Restricted funds**
Learning and Skills Council
**9,975**
Traineeship Bursary
**4,512**
**14,487**
**Total of funds**
**1,284,805**|**Income**
**£**
**1,225,797**
**-**
**-**
**-**
**1,225,797**|**Expenditure**
**£**
**Balance at**
**31 July 2020**
**£**
**(1,389,216)**
**1,106,899**
**(670)**
**9,305**
**(147)**
**4,365**
**(817)**
**13,670**
**(1,390,033)**
**1,120,569**|**Expenditure**
**£**
**Balance at**
**31 July 2020**
**£**
**(1,389,216)**
**1,106,899**
**(670)**
**9,305**
**(147)**
**4,365**
**(817)**
**13,670**
**(1,390,033)**
**1,120,569**|
|---|---|---|---|
||||**9,305**
**4,365**
**13,670**|
||||**1,120,569**|
General Funds are funds for the use in the general futherance of the charitable objectives.
Restricted funds- Learning and Skills Council- constitutes a balance previously donated to be used in respect of the renovation of the Ida Road Property. This is being reduced in line with depreciation of the property.
Restricted funds- Traineeship Bursary- represents a balance for providing training grants.
Page 32
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **19. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Restricted Fund- Learning and Skills Council
Traineeship Bursary
**Total of funds**|**Balance at**
**1 August**
**2018**
_£_
_1,497,667_
_10,645_
_-_
10,645
_1,508,312_|**Income**
_£_
_1,322,193_
_-_
_5,000_
5,000
_1,327,193_|**Expenditure**
_£_
**Balance at**
**31 July 2019**
_£_
_(1,549,542)_
_1,270,318_
_(670)_
_9,975_
_(488)_
_4,512_
(1,158)
_14,487_
_(1,550,700)_
_1,284,805_|**Expenditure**
_£_
**Balance at**
**31 July 2019**
_£_
_(1,549,542)_
_1,270,318_
_(670)_
_9,975_
_(488)_
_4,512_
(1,158)
_14,487_
_(1,550,700)_
_1,284,805_|
|---|---|---|---|---|
|||||_9,975_
_4,512_
_14,487_|
|||||_1,284,805_|
## **20. Summary of funds**
**Summary of funds - current year**
|**Balance at 1**
**August 2019**
**£**
General funds
**1,270,318**
Restricted funds
**14,487**
**1,284,805**|**Income**
**£**
**1,225,797**
**-**
**1,225,797**|**Expenditure**
**£**
**Balance at**
**31 July 2020**
**£**
**(1,389,216)**
**1,106,899**
**(817)**
**13,670**
**(1,390,033)**
**1,120,569**|
|---|---|---|
Page 33
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **20. Summary of funds (continued)**
## **Summary of funds - prior year**
|General funds
Restricted funds|**Balance at**
**1 August**
**2018**
_£_
_1,497,667_
_10,645_
_1,508,312_|**Income**
_£_
_1,322,193_
_5,000_
_1,327,193_|**Expenditure**
_£_
**Balance at**
**31 July 2019**
_£_
_(1,549,542)_
_1,270,318_
_(1,158)_
_14,487_
_(1,550,700)_
_1,284,805_|
|---|---|---|---|
## **21. Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
-
236,851
13,670
952,555
-
(82,507)
13,670
1,106,899|**Total**
**funds**
**2020**
**£**
**236,851**
**966,225**
**(82,507)**
**1,120,569**|
|---|---|---|
## **Analysis of net assets between funds - prior period**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|_Restricted_
_funds_
_2019_
_£_
-
14,487
-
14,487|_Unrestricted_
_funds_
_2019_
_£_
243,401
1,130,857
(103,940)
1,270,318|_Total_
_funds_
_2019_
_£_
_243,401_
_1,145,344_
_(103,940)_
_1,284,805_|
|---|---|---|---|
Page 34
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **22. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net expenditure for the period (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Decrease in creditors
**Net cash used in operating activities**
**23.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**24.**
**Analysis of changes in net debt**|**Group**
**2020**
**£**
**(164,236)**
**28,950**
**(643)**
**891**
**(15,894)**
**(21,432)**
**(172,364)**
**Group**
**2020**
**£**
**787,878**
**787,878**|**Group**
_2019_
_£_
_(223,507)_
_25,893_
_(974)_
_(226)_
_41,860_
_(17,185)_
_(174,139)_
**Group**
_2019_
_£_
_981,999_
_981,999_|
|---|---|---|
|Cash at bank and in hand
Debt due within 1 year|**At 1 August**
**2019**
**£**
**981,999**
**(6,417)**
**975,582**|**Cash flows**
**£**
**(194,121)**
**(2,660)**
**(196,781)**|**At 31 July**
**2020**
**£**
**787,878**
**(9,077)**
**778,801**|
|---|---|---|---|
## **25. Pension commitments**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge
Page 35
**EAST LINDSEY INFORMATION TECHNOLOGY CENTRE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **25. Pension commitments (continued)**
represents contributions payable by the group to the fund and amounted to £47,427 (2019: £51,109). Contributions totalling £nil (2019:£nil) were payable to the fund at the balance sheet date and are included in creditors.
## **26. Operating lease commitments**
At 31 July 2020 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
||||**Group**|**Group**|**Company**|**Company**|
|---|---|---|---|---|---|---|
||||**2020**|_2019_|**2020**|_2019_|
||||**£**|_£_|**£**|_£_|
|Not later than|1|year|**-**|_18,064_|**-**|_18,064_|
## **27. Related party transactions**
Some of the trustess represent companies that purchase training services from the company. The services provided are not on preferential terms.
Lincolnshire County Council - £176,902 (2019: £291,454) with a balance outstanding of £2,744 (2019: £8,827)
Duncan & Toplis - £424 (2019: £8,075) with a balance outstanding of £142 (2019: £nil) PSPL- £745 (2019: £nil) with a balance outstanding of £231 (2019: £nil)
The provision of school meals is now operated through the trading subsidiary, First Meals Limited. This arrangement commenced on 1 August 2019. Costs relating to the provision of the meals are shown within expenditure on raising funds in the current year. Previously, costs were included within the charitable activity costs of the charity.
Page 36