**Charity Number**
**526956**
## **KELSICK'S EDUCATIONAL FOUNDATION**
Trustees' Report and Financial Statements For the year ended 31 March 2024
## **KELSICK'S EDUCATIONAL FOUNDATION**
Trustees' Report and Financial Statements For the year ended 31 March 2024
## **CONTENTS**
|**CONTENTS**||
|---|---|
||Page|
|**Trustees' annual report**||
|**-**
Reference and administrative details|1|
|**-**
Structure, governance & management|2|
|**-**
Objectives and activities|2|
|**-**
Achievements and performance and plans for future periods|3|
|**-**
Public benefit|6|
|**-**
Financial review|6|
|**-**
Trustees' responsibilities|8|
|**Independent Auditors' report**|9|
|**Statement of financial activities**|12|
|**Balance sheet**|13|
|**Statement of cash flows**|14|
|**Notes to the financial statements**|15|
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
The Trustees present their report together with the audited financial statements of the charity for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Charity.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
The registered name of the Charity is Kelsick’s Educational Foundation. The registered charity number is 526956.
Trustees who served during the year and those who were Trustees at the date of this report are as follows:
_**Nominated**_
**By Lakes Parish Council (Term of 4 years)** Mr N Martin (Chairman) Mr M Blackburn Mrs L Dixon (Vice Chairman) (resigned February 2024) Mr L Johnson
_**Co-opted (Term of 5 years)**_ Mr N Hutchinson Mrs A J Renouf Mr P B Edmondson Dr P Davies Mr J Cunningham (re-appointed June 2024) Mrs L Britnell (appointed February 2024)
## **By Westmorland and Furness Council (Term of 4**
**years)** Mr W Clark
## _**Ex officio (Vicar of Ambleside)**_
Revd. A Smith (appointed November 2023)
**By University of Cumbria (Term 4 years)** Dr E Mallabon (appointed August 2023)
## **Clerk to Trustees and Kelsick Centre Manager**
Mr M Seaton
## **Principal Office**
Kelsick Centre St Mary’s Lane Ambleside Cumbria LA22 9DG
## **Surveyors and Property Consultants**
GSC Grays (acquired Carter Jonas) Unit 9, Underley Business Centre Kearstwick Kirkby Lonsdale Cumbria LA6 2DY
## **Bankers**
Barclays Bank PLC Crescent Road Windermere Cumbria LA23 1EA
## **Auditors**
Xeinadin Audit Limited 100 Barbirolli Square Manchester M2 3BD
## **Solicitors**
Progression Solicitors 5 Crescent Road Windermere LA23 1EA
## **Investment Advisors**
Castlefield Investments 1 Portland Street Manchester M1 3BE
CCLA Senator House 85 Queen Victoria Street London EC4V 4ET
Page 1
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
## **STRUCTURE, GOVERNANCE & MANAGEMENT**
Kelsick’s Educational Foundation is a registered Charity (charity number 526956) and is governed by a Scheme dated 13 November 2001, reference N165/01(s), as amended by resolution dated 20 August 2009, made by the Charity Commissioners for England and Wales under the power given in the Charities Act 2011.
The Trustees are appointed under the Scheme as follows:
- a) The ex-officio Trustee will be the Vicar of the Parish of Ambleside or his / her nominee.
- b) The nominated Trustees must be appointed as follows :-
- i) One from Cumbia County Council for 4 years ii) Four by Lakes Parish Council for 4 years, of whom at least one shall be a woman. iii) One by the governing body of University of Cumbria for 4 years
- c) The Co-opted Trustees are elected by the existing board of Trustees. Co-opted Trustees must be persons who the other Trustees consider can bring particular expertise or knowledge to the Trustee body. Each appointment must be for a term of 5 years.
All new Trustees are required to undertake an induction programme and undergo a structured introduction to the operation of the Foundation.
Trustee meetings are held 4 times per year to review and agree major area of policy or at such other times as considered necessary.
## Risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Foundation and are satisfied that systems are in place to mitigate exposure to major risks.
## **OBJECTIVES AND ACTIVITIES**
## **The Objects of the Charity are:**
1. The provision of special benefits, of any kind not normally provided by the Local Education Authority, for any Voluntary Schools and Academies that were formerly Voluntary Schools serving the area of benefit, with preference being given to Voluntary Schools and Academies that were formerly Voluntary Schools within Ambleside.
2. In promoting the education (including social and physical training) of persons under the age of 25 who are resident in the area of benefit and in need of financial assistance.
3. Any surplus income may be applied for the above objects in Patterdale Ward and the former County of Westmorland.
## **Strategies for achieving the Objects of the Charity**
1. Maintaining appropriate levels of income from
- i. properties with regular rent reviews and oversight by agents, Carter Jonas.
- ii. investments through investment managers, Castlefield Investments.
2. Informing potential beneficiaries through
- i. Kelsick Brochure sent to all households
- ii. our web-site: www.kelsick.org.uk
- iii. annual advertisements in the 3 Parish Magazines going to all households iv. direct contact with schools by visits by the Trustees.
- v. Kelsick Office open each weekday morning
- vi. all board meetings reported in the Westmorland Gazette
Page 2
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
3. Meetings of the full Board of Trustees 4 times a year. At the quarterly meetings, the Trustees agree the broad strategy and areas of activity for the Foundation, including the consideration of grant making, property maintenance, investment, reserves and risk management policies and performance. The day to day administration of grants and the processing and handling of applications prior to consideration by the Board of Trustees is delegated to the Clerk to the Trustees. Meetings of sub-committees for Finance, Grants, Property and Publicity are convened as required. The Board keeps the skill requirements of the Trustee body under review in the event a Trustee permanently retires, and new Trustees are required.
4. Circulating Solicitors with the Kelsick brochure in request of potential donations.
## **Grant making policy**
The Foundation invites applications for grants from individuals, voluntary schools and groups by informing potential beneficiaries as stated on page 2. Applicants submit a summary of their requirements in specific format which is reviewed against criteria established by the constitution. The Trustees approve the grants at quarterly meetings.
Details of how to apply for grants, together with the relevant forms are available on the charity’s website and on application to the Foundation office.
## **ACHIEVEMENTS AND PERFORMANCE AND PLANS FOR FUTURE PERIODS**
The Kelsick’s Education Foundation continues to flourish, providing support for the three local schools, and young people living within the parishes.
## **Grants**
On Table B, for the financial year 2023-24, it shows an decrease from £282,769 in 2022-23 to £233,195. Grants to individuals are still marginally lower than pre covid levels but are starting to recover.
The decrease reflects the cessation of a non-recurrent grant to support the Educational Health Care Plan (“EHCP”) and a one-off grant of £12,000 paid in 2022-23 in recognition of the increased cost pressures in that period.
## **Table A**
**– - Higher Education Degree, HND Number of Applicants**
|**Academic Year**|**1st Year**|**2nd Year**|**3rd Year**|**4th& 5th Year**|
**Total**|
|---|---|---|---|---|---|
|**2012-13**|13|15|17|7|52|
|**2013-14**|15|10|8|6|39|
|**2014-15**|15|6|6|9|36|
|**2015-16**|14|12|7|6|39|
|**2016-17**|8|13|8|8|37|
|**2017-18**|10|9|15|13|47|
|**2018-19**|13|4|8|7|32|
|**2019-20**|9|9|6|7|31|
|**2020-21**|11|11|8|9|39|
|**2020-22**|9|10|6|8|33|
|**2022-23**|9|14|9|4|36|
|**2023-24**|15|4|11|5|35|
Page 3
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
## **Table B**
## **Categories of grant awards and comparison with 2022-23**
||**2023-24**|**2023-24**|2022-23|2022-23|
|---|---|---|---|---|
|**Category**|**Grant for**
**Category**|**As % of total**
**grant**|Grant for
Category|As % of total
grant|
|Primary – individuals|£14,323|6.14%|£12,775|4.52%|
|Secondary and Further
Education – Individuals|£22,605|9.69%|£26,434|9.35%|
|Higher Education|£36,369|15.60%|£29,598|10.47%|
|Schools|£155,122|66.52%|£212,962|75.31%|
|Special needs|£2,591|1.11%|£1,000|0.35%|
|Clubs & Associates|£2,185|0.94%|£0|0.00%|
|**TOTAL**|£233,195|100.00%|£282,769|100.00%|
Table A. This table should be read diagonally in order to see how the numbers of a given entry in a given year are maintained throughout a course.
Table B. This table shows the grant distribution between different categories.
## **Property maintenance**
GSC Grays are our advisers on our properties, rent, valuation, repairs and improvements. Our agent is Suzie Barron and our meetings with Suzie have gone well.
We are continuing the rolling program of property maintenance and upgrading as required. We incurred expenditure of £62,514 on maintenance and repairs during the year compared to a total of £99,480 in 2022-23. The decrease reflects the availability of contractors and timing of works over the summer period.
## **General**
Mike Seaton is our Clerk and Kelsick Centre Manager, and Helen Ramsay our Accounts Administrator.
I’d like to offer my sincere thanks to Mrs Linda Dixon who has served as a Trustee for 44 years.
The trustees have given support to me and the Foundation, without which we could not go forward. I would like to thank them all. Thank you.
Page 4
**KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
## **300[th] Anniversary**
2023 marked the 300[th] anniversary of the Kelsick Educational Foundation. In November 2023, more than 100 people from the local community attended a special event to celebrate the 300[th] anniversary of the Kelsick Educational Foundation.
As we plan for the future we will be reviewing our grant-making policies and procedures, and looking to expand the use of the Kelsick Centre as a key resource for the community.
Page 5
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
## **PUBLIC BENEFIT**
The Trustees of Kelsick’s Educational Foundation believe they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.
## **Principle 1. There must be identifiable benefits**
- 1a) To provide grants for the educational needs of young people resident in the Lakes Parish and the Voluntary Schools in the same area.
- 1b) To reduce the financial constraints on the educational development of young people resident in the Lakes Parish.
- 1c) There does not appear to be any detriment in the benefits provided.
## **Principle 2. Benefit must be to the public, or a section of the public.**
- 2a) The beneficiaries of the Kelsick Foundation are clearly laid out in the Scheme of 2001, and it is only to these beneficiaries that grants are given.
- 2b) The benefits are to a section of the public as laid down in the Charity Commission Scheme of 2001. This limits grant aid for educational need to young people under the age of 25 resident in the Lakes Parish and the Voluntary Schools in the same area. There are no other constraints applied by the Trustees other than the provision of receipts arising from the purchase of goods or services. The principle is that, no matter what the financial standing of the parents or of the individual, if the age, geographical and educational needs criteria are fulfilled the applicant will receive grant aid.
## **FINANCIAL REVIEW**
The two main funding sources are income from property and income from investments.
## **Activities and results**
The net operating surplus for the year was near break-even at £2,621. There was a gain in the value of our investment portfolio of £99,776 providing a total increase in funds of £102,397.
At the end of the financial year money held in the Banks came to £218,646 (2023 - £226,643) representing a decrease of £7,997 in the amount held compared with last year.
Our overall income for the year was £411,338 (2023 - £406,341) and expenditure £408,717 (2023 - £481,624).
Income from UK Investments was £51,906 (2023 - £57,685) and rental income from our property portfolio £359,182 (2023 - £348,656).
The increase in property income during the year reflects a number of rent reviews. More reviews will be undertaken throughout 2024-25 which will further increase this revenue.
It is a continuing sign of our financial health and resilience that we can continue to fund grant applications and have money available for emergency grant aid and for property maintenance. We now receive many letters from grant recipients, particularly in Higher Education, expressing their gratitude for the money they receive and stating how important it is in their being able to continue courses under considerably less financial stress.
Page 6
## **KELSICK’S EDUCATIONAL FOUNDATION**
Trustees’ Annual Report
For the year ended 31 March 2024
## **Fixed Asset investments**
The Trustees have appointed professional advisors (as noted on page 1) to assist them in the management of the property and investment portfolios. The net returns from the respective investments, after taking account of all directly attributable costs were 2.6% (2023 – 2.2%) for the property portfolio and 1.6% (2023 – 1.9%) for the investment portfolio.
## **Reserves policy**
Unrestricted funds are needed:
- a) to cover administration and support costs essential for the functioning of the Foundation.
- b) because most of our income is derived from property rent. All the properties were passed to the Foundation at the end of 99-year ground leases, and are therefore stone built, and expensive to maintain. It is essential we have significant reserves on which to draw for regular maintenance as well as for any major emergencies, the latter being, by definition, unpredictable, in order that our rental income can remain high.
- c) for the provision of grants. This being the purpose of the Foundation. It will be seen that our grant aid has increased from £45,166 in 1992/1993 to £233,195 in 2023-24. With further financial pressure on HE students from fee increases we anticipate that grant aid will remain at least at this level again in 2023-24. Furthermore, we frequently have requests for ‘emergency grants’ often of substantial amounts, particularly with regards to children with Special Needs and also developments within the three voluntary schools in the area of benefit.
- d) Investment income has stabilised with no further significant investment in the markets at present. We are looking to improve the income yield without reducing the capital base.
- e) because at the commencement of each financial year the Foundation has substantial commitments in the form of grants payable to the three voluntary schools in our area as well as to individuals. These grants are not contractual.
The target level of free reserves is circa £200,000 which is based on six months unrestricted running costs together with a fund for property maintenance. This is reviewed by the Trustees through quarterly management accounts and an annual budget taking into consideration the ongoing costs and property maintenance program. Free reserves as of 31 March 2024 were £197,456 (2023 - £185,636).
Page 7
KELSICK'S EDUCATIONAL FOUNDATION
Trustees, Annual Report
For the year ended 31 March 2024
TRUSTEES, RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees, Annual Report and the financlal statements In accordance
with appllcable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practicel.
The law applicable to charities in En8land & Wales requires the Trustees to prepare flnancial statements for each
financial year which give a true and fail view of the state of aflairs of the charity and of the incoming resources
and application of resources of the charity for that period. In preparing these financial statements, the I rustees
are required to..
al select suitable accountin8 poliaes and appty them conslstently;
bl obxèNe thè methods and principles in the Charities JOnP-
cl make jud8menis and accounting estimates that are reasonable and prudent;
dl state whether applicable accountbng standards have been followed. subject to any materlal departures
disclosed and explained in the financial statements,.
el prepare the financial statement5 on the goin8concern basls unless it is inapproprlate to presume thal the
Charity will continue in opeiation.
The Trustees are re5ponsSble IOT keepin8 proper accounting records that dlsclose with reasonable accuracy at any
tlme the financial position of the charity and enable them to ensure that ihe financial statements comply with the
Charities Act 2011. the Chafity IAccounts and Reports) Regulations 2C08 and the provi5ion5 tsf the trust deed. They
are also responsible foi safeguarding the assets of the charity and hence lor takin8 reasonable steps for the
prevenllon and detectiofi ol fraud and other lireBularStles.
In so far as the Trustees ère aware..
Ihere is no relevant audlt Information of which the charitvs audltOT 15 unaware,.
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant
audit information and io est8blish that the audFior is aware of that information.
The Trustees. report was approved and was 5i8ned on behaw of the Trusiees by-
Mr N Martln
Chalrman
15 August 2024
Page 8
## **KELSICK'S EDUCATIONAL FOUNDATION**
Independent Auditor's Report to the Trustees For the year ended 31 March 2024
## **Opinion**
We have audited the financial statements of Kelsick's Educational Foundation (the ‘Charity’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Statement of Financial Position, Statement of Cash Flows 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 Charity’s affairs as at 31 March 2024 and of its income and expenditure, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of 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 Charity 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**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees' 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.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity 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 the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the Trustee's Annual Report is inconsistent in any material respect with the financial statements; or
- the Charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- - we have not received all the information and explanations we require for our audit.
Page 9
## **KELSICK'S EDUCATIONAL FOUNDATION**
Independent Auditor's Report to the Trustees For the year ended 31 March 2024
## **Responsibilities of Trustees**
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 6, the Trustees 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 Charity’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 Charity 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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **Identifying and assessing potential risks related to irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and noncompliance with laws and regulations we have considered the following:
- The nature of the industry and sector, control environment and business performance including the Charity's remuneration policies, key drivers for remuneration and performance targets;
- Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
- Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition and the impact of COVID-19. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Charitable Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, Charities Act, Health and Safety Laws and Environmental Regulations.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
Page 10
## **KELSICK'S EDUCATIONAL FOUNDATION**
Independent Auditor's Report to the Trustees For the year ended 31 March 2024
## **Audit response to risks identified**
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Charity’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 Charity’s 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 Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
100 Barbirolli Square Manchester M2 3BD
Michael Garrett (Senior Statutory Auditor) For and on behalf of **Xeinadin Audit Limited**
15 August 2024
Page 11
## **KELSICK'S EDUCATIONAL FOUNDATION**
Statement of Financial Activities
For the year ended 31 March 2024
|||**Unrestricted**|**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|Funds|
||**Note**|**2024**|**2024**|**2024**|2023|
|||**£**|**£**|**£**|£|
|**INCOME**||||||
|Investment income|**3**|||||
|- Income from properties||**359,182**|-|**359,182**|348,656|
|- Income from investments||**51,906**|-|**51,906**|57,685|
|**Other income**|**4**|**250**|-|**250**|-|
|**Total income**||**411,338**|**-**|**411,338**|406,341|
|**EXPENDITURE**||||||
|**Costs of raising funds**||||||
|Investment property costs|**8**|**151,272**|-|**151,272**|175,613|
|Investment management costs|**8**|**11,149**|-|**11,149**|10,466|
|**Expenditure on charitable activities**||||||
|Education|**8**|**233,195**|-|**233,195**|282,769|
|Governance costs|**8**|**13,101**|-|**13,101**|12,776|
|**Total expenditure**||**408,717**|**-**|**408,717**|481,624|
|**Net income (expenditure) and net**||||||
|**movement in funds before gains and**|**losses**|||||
|**on investments**||**2,621**|**-**|**2,621**|(75,283)|
|Gains (losses) on revaluation and||||||
|disposal of investments||**99,776**|**-**|**99,776**|(140,036)|
|**Net movement in funds**||**102,397**|**-**|**102,397**|(215,319)|
|Fund balance at 1 April 2023||**10,290,344**|**500**|**10,290,844**|10,506,163|
|**Fund balance at 31 March 2024**||**10,392,741**|**500**|**10,393,241**|10,290,844|
Page 12
KELSICK'S EDUCATIONAL FOUNDATION
Statement of Financial Position
As at 31 March 2024
Noie
2024
2023
FLYed asstts
Investment propertSes
Investments
7.620.(
2.575.785
7,620,LMJ)
2.485,208
io
10.195.785
10.105.208
Current atsets
Dpbtors
Cash at bank and in hand
li
13.933
218.646
690
226.643
232.579
227.333
Credltors: amounts lalll
due wlthln one year
135.1231
141,6971
Net current ets
197.456
185,636
Net 4s5et5
10.393,241
10,290,844
FUNDS
Re5trlded funds
500
Unrestrided funds
General lunds
15
10392.741
10,290,344
Totsl funds
10,393,241
10,290,844
The flnanclal siatements on pales li 10 20 were approved by the Boafd of Tfustees and SiRned on its behalf by..
Mr N Mardn
Chalr
Mr J Cunnlr4ham
T ondcholrmon oJFlnonce
15 Au8USt 2024
Pa8* 13
## **KELSICK'S EDUCATIONAL FOUNDATION**
## Statement of Cash Flows
For the year ended 31 March 2024
|**Net cash generated from operating activities**
**Cash flow from investing activities**
Purchase of investments
Disposals of investments
**Net cash flow from investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents brought forward**
**Cash and cash equivalents carried forward**
**Cash and cash equivalents consists of:**
Cash at bank and in hand
**Net cash generated from operating activities**
Depreciation
(Increase) decrease in debtors
(Decrease) increase in creditors
Net movement in funds before gains and
losses on investments|**2024**
2023
**£**
£
**(17,196)**
(64,083)|
|---|---|
||**(106,615)**
(472,849)
**115,814**
487,081|
||**9,199**
14,232|
||**(7,997)**
(49,851)
**226,643**
276,494|
||**218,646**
226,643|
||**218,646**
226,643|
||**2,621**
(75,283)
**-**
-
**(13,243)**
8,267
**(6,574)**
2,933|
||**(17,196)**
(64,083)|
Page 14
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements For the year ended 31 March 2024
## **1 General information**
Kelsick’s Educational Foundation is a registered Charity (charity number 526956) and is governed by a Scheme dated 13 November 2001, reference N165/01(s), as amended by resolution dated 20 August 2009, made by the Charity Commission for England and Wales under the power given in the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) issued 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
## **2 Accounting policies**
## **i. Basis of preparation**
The accounts financial statements have been prepared in accordance with the relevant version of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The accounts financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **ii. Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value. UK quoted securities are valued at the mid-market price quoted by the London Stock Exchange at the year end date. Unit trusts are at the middle of the prices prevailing on that date. The SoFA includes the net gains and losses arising on the revaluation and disposals throughout the year.
Investment properties are not depreciated. They are valued periodically by Carter Jonas, Chartered Surveyors on an open market basis.
Depreciation is provided on associated fixtures used in the investment properties at rates calculated to write off the cost of each asset over its expected useful life as follows:
Fixtures, fittings and equipment 20% straight line
## iii. **Funds**
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable
Restricted funds are funds which have been given for a particular purpose. Details of the nature and purpose of the restricted fund is set out in note 14 to the financial statements.
Designated funds comprise those funds which the trustees periodically set aside for investment property refurbishments and other designated purposes.
Page 15
Notes to the Financial Statements (continued) For the year ended 31 March 2024
## **2 Accounting policies (continued)**
## **iv. Income recognition**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the monetary value of income can be measured reliably.
Investment income is earned through holding assets for investment purposes including property and quoted securities. It includes rent, dividends and interest. Income from quoted securities is stated gross of tax and is included in the SOFA in the year in which it is receivable. Rental income is recognised when the Charity's right to payment is established.
The Charity funds its activities almost entirely through its investment income.
## **v. Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure (including irrecoverable VAT) is accounted for on an accruals basis.
Costs of raising funds represents costs relating to activities where the primary aim is to raise funds and consists of expenditure relating to the management of investments.
Charitable activities comprise of those costs incurred by the charity where the primary aim is the delivery of activities and services within the objects of the charity. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grants payable include all expenditure incurred on grants awarded or on other schemes run in the pursuance of the Foundation's objectives. Grants are accounted for when the Foundation has a legal or constructive commitment.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
## **vi. Support costs allocation**
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. staff time or estimated usage as set out in Note 7.
## **vii. Gains and losses**
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value or cost in the year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the SoFA.
## **viii. Debtors and creditors receivable/payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **ix. Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **x. Operating leases**
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Page 16
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements (continued) For the year ended 31 March 2024
|**3**
**Investment income**
**Income from UK property**
Rents receivable
Room hire
**Income from UK investments**
Interest and dividends
Bank interest receivable|**2024**
2023
**£**
£
**350,483**
339,598
**8,699**
9,058|
|---|---|
||**359,182**
348,656|
||**49,058**
56,841
**2,848**
844|
||**51,906**
57,685|
## **4 Other income**
This represents the proceeds from the sale of a small parcel of land.
|**5**
**Staff costs**
Salaries and wages
Social security costs
The average number of part time employees during the year was
Administration support staff
Cleaner|**2024**
2023
**£**
£
**32,300**
36,509
**-**
-|
|---|---|
||**32,300**
36,509|
||**Number**
Number
**2**
2
**1**
1|
||**3**
3|
No employee received remuneration amounting to more than £60,000 in either year.
None of the Trustees received any remuneration or expenses during either of the above two years.
Staff costs include a cleaner engaged on a contract basis.
## **6 Taxation**
The Foundation is a registered charity and does not pay income tax.
|**7**
**Grants payable**
Grants awarded to voluntary schools and organisations
Ambleside Primary School
Grasmere Primary School
Langdale Primary School
Grants awarded to individuals|**2024**
2023
**£**
£
**56,685**
80,070
**56,558**
65,498
**41,879**
67,394|
|---|---|
||**155,122**
212,962
**78,073**
69,807|
||**233,195**
282,769|
Page 17
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements (continued)
For the year ended 31 March 2024
## **8 Total resources expended**
|2023
Total|£||69,807|212,962|10,466|8,299|99,480|13,267|1,952|-|3,963|7,500|3,324|-|8,645||36,509|5,450|481,624|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**2024**
**Total**|**£**||**78,073**|**155,122**|**11,149**|**9,723**|**62,514**|**16,134**|**4,606**|**-**|**9,188**|**4,043**|**4,452**|**-**|**13,390**||**32,300**|**8,023**|**408,717**|
|**Governance**|**£**||**-**|**-**|**-**|**-**|**-**|**-**|**4,606**|**-**|**-**|**4,043**|**4,452**|**-**|**-**||**-**|**-**|**13,101**|
|**Education**|**£**||**78,073**|**155,122**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**||**-**|**-**|**233,195**|
|**Investment property**
**costs**|**£**||**-**|**-**|**-**|**9,723**|**62,514**|**16,134**|**-**|**-**|**9,188**|**-**|**-**|**-**|**13,390**||**32,300**|**8,023**|**151,272**|
|**Investment**
**management costs**|**£**||**-**|**-**|**11,149**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**|**-**||**-**|**-**|**11,149**|
|**Basis of allocation**|||Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct||Staff Time|Usage||
|||**Costs directly allocated to activities**|Grants to individuals|Grants to voluntary schools and organisations|Investment management fees|Rates and services|Maintenance and repairs|Insurance|Legal and professional fees|Bad debts|Sundry expenses|Auditors' fees - audit services|Auditors' fees - other services|Depreciation|Property management costs|**Support costs allocated to activities**|Staff costs|Office costs||
Page 18
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements (continued) For the year ended 31 March 2024
|**9**
**Investment properties**
**Cost / Valuation**
At 1 April 2023
Additions
Revaluation
At 31 March 2024
**At cost**
**At valuation**
**Depreciation**
At 1 April 2023
Disposals
Charge for the year
At 31 March 2024
**Net book value :**
**At 31 March 2024**
At 31 March 2023|**Fixtures,**
**Freehold land**
**fittings and**
**and buildings**
**equipment**
**Total**
**£**
**£**
**£**
7,620,000
70,319
7,690,319
-
-
-
-
-
-|
|---|---|
||7,620,000
70,319
7,690,319|
||-
70,319
70,319
7,620,000
-
7,620,000|
||7,620,000
70,319
7,690,319|
||-
70,319
70,319
-
-
-
-
-
-|
||-
70,319
70,319|
||**7,620,000**
**-**
**7,620,000**|
||7,620,000
-
7,620,000|
The freehold land and buildings belonging to the Foundation were revalued at an open market value for existing use basis on 1 June 2022 by Carter Jonas, Chartered Surveyors.
|**10**
**Fixed Asset Investments**
**Fair value :**
At 1 April 2023
Additions at cost
Disposal proceeds
Increase (decrease) in fair value
**At 31 March 2024**|**2024**
2023
**£**
£
**2,485,208**
2,639,476
**106,615**
472,849
**(108,124)**
(487,081)
**92,086**
(140,036)|
|---|---|
||**2,575,785**
2,485,208|
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets including the London Stock Exchange. Holdings in common investment funds, unit trusts and open ended investment companies are at bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
Page 19
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements (continued) For the year ended 31 March 2024
|**10**|**Fixed Asset Investments (continued)**||**Market**||Market|
|---|---|---|---|---|---|
|||**Cost**|**Value**|Cost|Value|
|||**2024**|**2024**|2023|2023|
||**Direct Property & Property Funds**|**£**|**£**|£|£|
||Mayfair Capital In Prop Inc Trust|**25,986**|**24,102**|25,986|25,740|
||First Sentier inv responsible listed infrastr|**42,201**|**34,672**|42,201|36,814|
||FP Foresight OEIC FP FRSGHT GBL REAL INFRS A|**42,217**|**29,939**|42,217|35,453|
|||**110,404**|**88,713**|110,404|98,007|
||**Fixed interest & fixed interest funds**|||||
||Rathbone UT MGT Ethical Bond|**58,327**|**50,956**|48,235|38,337|
||Royal London Ethical Bond|**58,205**|**50,642**|49,435|39,968|
||RCB Bonds PLC 4.4% SNR 30/04/2027|**17,825**|**17,369**|17,825|17,175|
||RCB Bonds PLC 4.25% SNR 06/07/2028|**14,625**|**13,800**|14,625|13,525|
||Retail Charity BON 4.25% SNR 30/03/2028 GBP10|**22,725**|**21,042**|22,725|20,691|
||RETAIL CHARITY BON 4.25% SNR 20/06/28 GBP10|**24,625**|**23,697**|24,625|23,210|
|||**196,332**|**177,506**|177,470|152,906|
||**Global Equities & Equity Funds (ex UK)**|||||
||CFP Castlefield FD CFP Castlefield Sust UK SML|**-**|**-**|80,478|134,537|
||**Global Equities & Equity Funds**|||||
||FUNDROCK PTNRS LTD FP WHEB SUST B GBP ACC|**136,819**|**153,293**|136,514|142,899|
||Conbrio FD PTN LTD CFP CFLD BEST SUST EURP GE|**152,946**|**179,500**|152,946|170,836|
||FIRST SENTIER INVR STEWART INV WWIDE SUSTA|**151,120**|**169,126**|151,120|161,726|
||LIONTRUST FUND PAR SUST FUTURE GBL GTH 2 A|**92,670**|**110,864**|92,670|92,164|
||SARASIN FUND MANAG SARSIN RESPONSIBLE GBL|**75,737**|**84,307**|75,737|76,759|
|||**609,292**|**697,091**|608,987|644,384|
||**Multi-Asset Funds**|||||
||CCLA INVESTMENT MA INVESTMENT INCOME|**23,785**|**566,389**|23,785|517,068|
|||**23,785**|**566,389**|23,785|517,068|
||**Other assets**|||||
||Capital for Colleagues Ord 0.40|**43,605**|**64,074**|43,605|45,089|
||CFP Castlefield FD CFP Real RTN GN|**129,269**|**141,658**|125,078|138,174|
|||**172,874**|**205,731**|168,683|183,263|
||**UK Equities & Equity Funds**|||||
||Castlefield FD PTN BEST Income|**83,256**|**143,184**|-|-|
||Castlefield FD PTN UK Smaller Cos Fund|**565,464**|**697,171**|593,110|755,043|
|||**648,720**|**840,355**|593,110|755,043|
||**TOTAL**|**1,761,407**|**2,575,785**|1,762,917|2,485,208|
Page 20
## **KELSICK'S EDUCATIONAL FOUNDATION**
Notes to the Financial Statements (continued) For the year ended 31 March 2024
|**11**
**Debtors**
**2024**
2023
**£**
£
Other debtors
**13,933**
690
**13,933**
690
**12**
**Creditors: amounts falling due within one year**
**2024**
2023
**£**
£
Trade creditors and accruals
**15,239**
21,813
Other creditors
**19,884**
19,884
**35,123**
41,697
**13**
**Analysis of net assets between funds**
**General**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**£**
**£**
**£**
Fixed assets
10,195,285
500
**10,195,785**
Current assets
232,579
**-**
**232,579**
Current liabilities
(35,123)
**-**
**(35,123)**
**Net assets at 31 March 2024**
10,392,741
500
**10,393,241**
**14**
**Restricted funds**
**2024**
2023
**£**
£
At 31 March 2024 and 31 March 2023
**500**
500
**15**
**Unrestricted funds**
**2024**
2023
**£**
£
Balance at 1 April 2023
**10,290,344**
10,505,663
Incoming resources
**411,338**
406,341
Resources expended
**(408,717)**
(481,624)
Investment (losses) gains
**99,776**
(140,036)
Balance at 31 March 2024
**10,392,741**
10,290,344
**16**
**Leasing agreements**
**2024**
2023
**£**
£
Witin one year
**523**-
Between one year and five years
**1,962**-
**2,485**
-
Lanty Brow was gifted to the Foundation by the executors of the estate of the late Mr Hymas in December 1990,
under a deed of covenant which stipulated that no building was to take place on the land.
Minimum lease payments under non-cancellable operaring
leases fall due as follows:|**2024**
2023
**£**
£
**13,933**
690
**13,933**
690
**2024**
2023
**£**
£
**15,239**
21,813
**19,884**
19,884
**35,123**
41,697
**General**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**£**
**£**
**£**
10,195,285
500
**10,195,785**
232,579
**-**
**232,579**
(35,123)
**-**
**(35,123)**|**2024**
2023
**£**
£
**13,933**
690|
|---|---|---|
|||**13,933**
690|
|||**2024**
2023
**£**
£
**15,239**
21,813
**19,884**
19,884|
|||**35,123**
41,697|
||10,392,741|
500
**10,393,241**|
|||**2024**
2023
**£**
£
**500**
500|
|||**10,392,741**
10,290,344|
|||**2024**
2023
**£**
£
**523**-
**1,962**-|
|||**2,485**
-|
**17 Control**
There is no ultimate controlling party.
Page 21