DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
Charity number: 527552 Company Number: 00413810
Sunfield Children’s Homes Limited (Private Limited Company)
Trustees’ report and financial statements For the year ended 31 August 2023
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
CONTENTS
| Page | |
|---|---|
| Legal and administrative information | 2 |
| Report of the Trustees | 3 |
| Independent Auditor’s Report | 9 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 |
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DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Registered office Ruskin Mill Millbottom Nailsworth Stroud Gloucestershire GL6 0LA Principle office Clent Grove, Clent, Stourbridge West Midlands DY9 9PB
Trustees
H M Kippax A C H Gordon OBE Dr T Zundel V F B Griffiths T A Gratton C Court J Christley (appointed 13 February 2024)
Company secretary E Johnson
Key management personnel Aonghus Gordon OBE – Founder & Executive Chair Tara Gratton – Director of Schools and Rise Chris Lore – Head Teacher Shazuli Iqbal – Chief Financial Officer Lindsay Wilkinson – Trust Head of Human Resources
Auditors
Grant Thornton UK LLP 17[th] Floor 103 Colmore Row Birmingham B3 3AG
Bankers
Lloyds Bank Plc Barclays Bank PLC 12 Rowcroft 15 Colmore Row Stroud Birmingham Gloucestershire B3 2EP GL5 3BD
Brewin Dolphin 81 Colmore Row Birmingham B3 2AP
Solicitors
RWK Goodman 69 Carter Lane London EC4V 5EQ
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SUNFIELD CHILDREN’S HOMES LIMITED
REPORT OF THE TRUSTEES
The Trustees’, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year to 31 August 2023.
• Governing document
Sunfield Children's Homes Limited, also known as ‘Sunfield’, is registered with the Department for Education under sections 347(l) and (3) of the 1996 Education Act as an independent residential school suitable for pupils with severe learning difficulties. It is registered as a Children's Home under the Care Standards Act 2000 and is governed by the regulations of this Act.
It is a registered charity in England and Wales (registered number: 527552) and is constituted as a company in England and Wales (registered number: 00413810), limited by shares. Its objectives, powers and other constitutional matters are set out in its Memorandum & Articles of Association.
STRUCTURE, GOVERNANCE AND MANAGEMENT
• Group Structure
Sunfield Children’s Homes Limited is part of the Ruskin Mill Trust Group.
The whole of the issued share capital of 100 £1 ordinary shares is owned by Ruskin Mill Trust Limited. As Trustees of the Charity and Directors of the Company, members of the Governing Body are legally responsible for the overall management and control of the charity. The main Trustee body meets at least four times a year.
• Recruitment and appointment of new Trustees
Trustees are appointed in accordance with the Memorandum and Articles of Association. The charity’s practice regarding recruitment has been for members of the Board to make recommendations for suitably skilled and experienced people who are then appraised by Ruskin Mill Trust’s Board of Trustees.
Induction and training are carried out during the meeting cycle, and members are also invited to training within Ruskin Mill Trust’s other provisions. During the year, individual Trustees undertook a range of appropriate training.
• Organisational Management
The Trustees delegate the day to day running to a Senior Leadership Team who oversee operations. The key management personnel are listed on page 2. The Trustees did not receive any remuneration in the current or previous period.
• Directors and Trustees
The Trustees during the period are listed on page 2.
• Risk Management
A description of the principal risks and uncertainties facing Sunfield, as identified by Trustees, together with a summary of the plans and strategies for mitigating those risks, are reviewed regularly by the Trustee body, and plans are put in place to mitigate these risks. The risks and uncertainties facing Sunfield are set out in the Strategic Report on page 5.
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SUNFIELD CHILDREN’S HOMES LIMITED
• Employment Policy
Sunfield is an equal opportunity organisation and is fully committed to its Equal Opportunities Policy. It aims to ensure there is no discrimination on the grounds of disability and that access to work and promotion is based on ability, qualification and suitability for the work. Sunfield is committed to creating a working environment that is free from any form of discrimination.
Sunfield employs salaried staff with the appropriate qualifications to provide education and care for pupils and does not rely on volunteers.
The remuneration of the key management personnel, deemed to be the Senior Leadership Team listed on page 1, is reviewed annually by Trustees based on national criteria and affordability.
• Trustees' Indemnity Insurance
Trustee indemnity insurance is paid for under the Ruskin Mill Trust Group policy.
OBJECTS AND AIMS
• Charitable Objects
Sunfield's objects, as set out in the Memorandum of Association, are:
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to help, support and educate young people with severe and complex learning needs including those with autistic spectrum disorder;
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to provide support, assistance, education and training to the families and carers of people of any age with severe and complex learning needs including autistic spectrum disorder;
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to advance the education of the public and promote greater understanding of all matters concerning severe and complex learning needs including autistic spectrum disorder; and
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to conduct research into the causes, prevention, alleviation, and management of severe and complex learning difficulties including autism and to disseminate the useful results of such research.
• Background and Aims
Sunfield has over 80 years of experience in supporting individuals, aged 5-19, with complex learning needs, including Autistic Spectrum Conditions; it caters for day and residential placements of up to 52 weeks, as well as respite. Set within 58 acres of idyllic parkland, Sunfield is nestled on the slopes of the Clent Hills overlooking beautiful Worcestershire countryside. The grounds include a farm and walled garden with nature trails for exploration and adventure, as well as play areas and sensory areas with calm outdoor spaces, all designed to enable Sunfield’s young people to learn, exercise, enjoy and engage with their surroundings practically and safely.
As the first residential special school based on principles Rudolf Steiner established in the UK in the 1930s, Sunfield has a long history of being a therapeutic centre and international beacon of education. Its highly skilled teaching and residential staff teamwork alongside an integrated therapy team with particular skills in sensory education. Therapies available include speech & language, music, movement, drama and colour.
• Public Benefit
The Trustees have given due consideration to the published Charity Commission guidance on the operation of the Public Benefit requirement of the Charities Act 2011. As places at Sunfield are assessed on the needs of the pupils and the fees are largely paid by local authorities, the trustees consider that the Public Benefit test has been met. Where possible, Sunfield also makes its facilities available for community use. For example, Sunfield’s main hall is a popular venue for local drama and performance groups, and the school now operates a farm shop for the local community.
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SUNFIELD CHILDREN’S HOMES LIMITED
STRATEGIC REPORT
• Achievements & Performance
The school has had a strong focus on developing outdoor land and craft activities for the pupils, including improved access to animals and gardens. The school has developed a range of different garden spaces to meet pupil need and the animals move around the site so that all pupils can interact with them over the year.
There has been significant investment in the residential properties to create modern warm and welcoming spaces for the residential children. A number of residential staff have attended the Holistic Care and Support training at Upper Grove (the bespoke residential training facility on site) and the impact of the training is evident in that staff are baking bread and engaging in craft with the children in the homes.
As the school has continued to grow, there are now plans to build a new lower school on the site that will provide a space for the youngest children in Sunfield. This new purpose-built space will have a range of classrooms and therapy spaces as well as gardens and easy access to the farm so the children can still benefit from Sunfield’s amazing land resource.
There has been a strong recruitment drive, and the number of agency staff has significantly reduced over the year. This provides the children with a more consistent support team.
The school and children’s home both continue to receive positive feedback from local authority quality assurance visits, Ofsted Social Care, and families.
• Financial Review
Results
Trustees value the surplus of £180,053 made during the period to 31 August 2023 (2022: deficit of (628,941)).
Investment
Sunfield's investment objective is to seek to maximise total return within its chosen investment criteria by a combination of income and capital growth and within an acceptable level of risk. Trustees utilise the discretionary managed service of Brewin Dolphin Limited whose delegated manager makes the day-to-day decisions regarding investments in the portfolio. Trustees set the structure and parameters of the portfolio as set out in the Investment Policy and the Board of Trustees reviews the policy annually and monitors the investment performance termly.
Reserves
The Trustees review the charity’s financial plans and results regularly throughout the year. This is done through monitoring income and expenditure against budget forecasts and monitoring cash flow forecasts. The trustees follow the Ruskin Mill Trust Reserves Policy and, therefore, feel it prudent to build the level of reserves on an annual basis with the purpose of ensuring that the charity has sufficient reserves to act as a buffer against unexpected drops in income or increases in expenditure. The reserves held at year-end were £5,595,558 unrestricted (2022: £5,475,300) and £111,765 restricted (2022: £51,970).
Fundraising
Fundraising at Sunfield is overseen by Ruskin Mill Trust’s Director of Fundraising. No use is made of any external, professional fundraiser nor any commercial participator, so no fundraising activities were carried out on its behalf during the year nor were any approaches made to vulnerable individuals in pursuit of the raising of funds for the charity.
Sunfield has signed up to the Fundraising Regulator’s Code of Fundraising Practice. During the year there was no failure to comply with a scheme or standard cited nor were any complaints received about the fundraising activities conducted by the Trust.
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Money raised through fundraising activities are used by Sunfield as agreed with the donor and comply with any conditions attached by the donor.
• Risks & Uncertainties
The Trustees review the risks to which the charity is exposed such as the health and safety of children, visitors, volunteers, and staff on an on-going basis and are satisfied that systems are in place to manage exposure to the major risks. They maintain appropriate levels of insurance cover for all foreseeable risks.
Specific areas of risk and uncertainty are:
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Recruiting and Retaining Staff: The specialist recruiter based at Sunfield has made good progress towards recruiting the required staff for the school, however there are still gaps and some agency use. Unemployment rates across the country are at an all time low and there are particular shortages in the care and support sectors. Sunfield has successfully managed to work with agency staff whilst keeping costs down. The recruitment process now includes a trial shift to help applicants fully understand the role, and retention continues to be good.
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Poor Inspection result: Sunfield has recently had a very positive Ofsted inspection resulting in Good in all areas and Outstanding in Behaviour and Attitudes. The Director of Schools has developed robust quality assurance processes, working with the Civil Service, to ensure that Sunfield continues to improve and maintain high quality. Sunfield has regular residential quality assurance visits and concerns are quickly addressed.
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Regulatory non-compliance: The risk of regulatory non-compliance requires constant review and the upskilling of staff and trustees to meet an ever-changing regulatory landscape and student profile. Specifically:
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Keeping children safe: The potential risks associated with keeping service users across the whole of the Ruskin Mill Trust Group safe has required continued vigilance and mitigation by robust risk assessment and action plans, assessments, appropriate training, the appointment of safeguarding managers at each of the main centres and improved internal meeting and reporting arrangements. The Trust Head of Safeguarding is working effectively with Designated safeguarding leads across all sites as well as Headteachers and the Directors to ensure that each centre is compliant The Head of Safeguarding is part of the Civil Service and therefore works collaboratively with other key functions including HR, IT/MIS, H&S, and staff training to provide high quality support. In addition, a Ruskin Mill Trust Trustee holds lead responsibility for maintaining oversight of Safeguarding and Health & Safety across the Group.
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GDPR: A rigorous programme of cross-Trust training continues to be implemented to ensure compliance, all overseen by Ruskin Mill Trust’s Head of Legal Services. An external agency has been contracted to deliver training and site audits across the Trust.
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Charity Law: To assist compliance with Charity Law, Ruskin Mill Trust’s Head of Legal Services provides Trustees with regular Charity Law Updates which are supplemented by advice on further provisions as they come in to force. As an example, in order to comply with statutory changes made to the automatic disqualification rules for charity trustees, a new Trustee Eligibility Declaration procedure is being introduced.
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IT disaster: The Trust continues to monitor and improve IT cyber security arrangements to ensure a robustness and preparedness for any future attacks.
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Reputational Risk: The risk of reputational harm is being mitigated through the vigilance of the Trust including ongoing review of the Trust’s Risk Register and implementing a Code of Conduct and ensuring staff are suitably supported and trained.
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Risks to Ruskin Mill Trust Group’s Method (PSTE): Vigilance continues to be required to ensure that the Trust’s Method is not compromised. The Trust invests in staff training and research to support the method.
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Future Plans
Sunfield is planning to open the new lower school in September 2024. The space will provide additional
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teaching spaces for children aged 5 – 10 and sit between the main site and the farm. The building is designed to sit in the landscape, providing access to the outdoors and gardens in a safe and creative way. As part of the development, there are also plans to renovate some of the farm buildings to include a research centre, public café, and additional farm buildings.
There are changes planned for the main site as well, removing some of the existing buildings that are not fit for purpose and creating additional teaching space and social enterprise space for the older pupils.
In addition, Sunfield will launch a new therapy centre to recognize the contributions of Ita Wegman to the school.
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Trustees (who are also directors of Sunfield Children’s Home Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP and FRS 102;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
• Provision of information to Auditor
Each of the persons who are trustees at the time when this Report of the Trustees is approved has confirmed that:
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so far as those trustees are aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the trustees have taken all the steps that ought to have been taken as a trustee in order to be aware of any information needed by the charitable company’s auditor in connection with preparing its report and to establish that the charitable company’s auditor is aware of that information.
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• Qualifying third party indemnity provisions
Trustees’ indemnity insurance, indemnifying each director against liability to third parties, has been in place throughout the year ended 31 August 2023 and up to the date of approval of this report.
• Auditor
The auditor, Grant Thornton UK LLP, will be proposed for reappointment at the Annual General Meeting.
Approved by the Trustees on 15 April 2024 and signed on their behalf by:
……………………………………… Aonghus Gordon OBE Trustee
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SUNFIELD CHILDREN’S HOMES LIMITED
Opinion
We have audited the financial statements of Sunfield Children’s Homes Limited (the ‘charitable company’) for the year ended 31 August 2023, which comprise the Statement of Financial Activities (Incorporating an Income & Expenditure Account), the Balance Sheet, the Cash Flow Statement 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources including, its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Statement of Recommended Practice: Accounting and Reporting by Charities, 2019 Edition; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charitable company’s business model including effects arising from macro-economic uncertainties such as the cost of living crisis and high inflation, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.
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
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financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. 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.
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 themselves. 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:
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the information given in the Strategic Report and the Directors’ Report, prepared for the purposes of company law, included in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Strategic Report and the Directors’ Report included in the Trustees’ Report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the 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 Strategic Report or the Directors’ Report included in the Trustees’ Report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
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.
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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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
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We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), Charities SORP (FRS 102), the Companies Act 2006 and Charities Act 2011;
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We understood how the charitable company is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of board and other minutes and through our legal and professional expenses review;
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We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur and the risk of material override of controls. Audit procedures performed by the engagement team included:
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Identifying and assessing the design effectiveness of certain controls management has in place to prevent and detect fraud
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Challenging assumptions and judgements made by management in its significant accounting policies
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Identifying and testing journal entries, with a focus on manual postings, journals that directly impacted on the surplus reported in the statement of financial activities and journal entries posted in the closing and accounts preparation period
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Identifying and testing related party transactions
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Inspecting the board and other committee minutes
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Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item
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These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
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Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's:
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understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation
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knowledge of the charity, education and care sector
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understanding of the legal and regulatory requirements specific to the charitable company including:
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the provisions of the applicable legislation
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guidance issued by the Charities Commission.
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The team communications in respect of potential non-compliance with relevant laws and regulations included the potential for fraud in revenue through manipulation of income and management override of controls; and
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In assessing the potential risks of material misstatement, we obtained an understanding of:
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the charitable company’s operations, including the nature of its income and expenditure and its services and of its objectives and strategies to understand the classes of transactions, account smaterial misstatement.
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the charitable company's control environment, including:
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the policies and procedures implemented by the charitable company to ensure compliance with the requirements of the financial reporting framework and relevant laws and regulations
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the adequacy of procedures for authorisation of transactions and review of management accounts
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procedures to ensure that possible breaches of laws and regulations are appropriately resolved.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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. 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Jim McLarnon ACA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham
Date: 15/4/2024
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STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income & Expenditure Account) for the year ended 31 August 2023
| Notes | Unrestricted Funds Restricted Funds Total Funds Year to 31.8.23 Total Funds Year to 31.8.22 |
|---|---|
| £ £ £ £ |
|
| INCOME FROM: | |
| Donations and legacies | 77,466 59,795 137,261 168,630 |
| Charitable activities | 11,243,873 - 11,243,873 9,623,087 |
| Other trading activities | 43,064 - 43,064 23,382 |
| Investments | 12,573 - 12,573 10,195 |
| Other | 63 - 63 2,735 |
| TOTAL INCOME 3 |
11,377,039 59,795 11,436,834 9,828,029 |
| EXPENDITURE ON: | |
| Charitable activities | (11,256,638) - (11,256,638) (10,402,730) |
| TOTAL EXPENDITURE 5 |
(11,256,638) - (11,256,638) (10,402,730) |
| NET INCOME / (EXPENDITURE) FOR THE YEAR BEFORE LOSS ON INVESTMENTS |
120,401 59,795 180,196 (574,701) |
| Loss on investments 8 |
(143) - (143) (54,240) |
| NET (EXPENDITURE)/INCOME | 120,258 59,795 180,053 (628,941) |
| Transfers between funds | - - - - |
| NET MOVEMENT IN FUNDS | 120,258 59,795 180,053 (628,941) |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward 11 |
5,475,300 51,970 5,527,270 6,156,211 |
| Total funds carried forward 11 |
5,595,558 111,765 5,707,323 5,527,270 |
The notes on pages 16 to 32 form part of these financial statements.
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BALANCE SHEET As at 31 August 2023
(Company registration number 00413810)
| Notes | 31 August 2023 £ |
31 August 2022 | |
|---|---|---|---|
| £ | |||
| FIXED ASSETS: | |||
| Tangible assets 7 |
453,005 | 452,916 | |
| Investments 8 |
440,736 | 475,361 | |
| 893,741 | 928,277 | ||
| CURRENT ASSETS: | |||
| Debtors 9 |
5,386,812 | 5,168,674 | |
| Cash at bank and in hand | 511,464 | 430,985 | |
| 5,898,276 | 5,599,659 | ||
| LIABILITIES: | |||
| Creditors fallingdue within oneyear 10 |
(1,084,694) | (1,000,666) | |
| NET CURRENT ASSETS | 4,813,582 | 4,598,993 | |
| Creditors falling due in over one year | - | - | |
| NET ASSETS | 5,707,323 | 5,527,270 | |
| FUNDS | |||
| Unrestricted funds | 5,595,558 | 5,475,300 | |
| Restricted funds | 111,765 | 51,970 | |
| 12 | 5,707,323 | 5,527,270 |
The financial statements have been prepared in accordance with the Companies Act 2006.
Approved and authorised for issue by the Trustees on 15 April 2024 and signed on their behalf by:
Aonghus Gordon OBE Trustee
The notes on pages 16 to 32 form part of these financial statements.
14
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023
| Note Cash flows from operating activities: Net cash used in operating activities 14 Cash flows from investing activities Investment income Purchase of tangible fixed assets Payments to acquire fixed asset investments Receipts from sale of fixed asset investments Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
Year to 31 August 2023 £ 77,180 12,573 (43,756) (106,023) 140,505 3,299 80,479 430,985 **511,464 ** |
Year to 31 August 2022 £ (173,162) |
|---|---|---|
| 10,195 (362,912) (35,800) 36,648 |
||
| (351,869) | ||
| (525,031) 956,016 |
||
| 430,985 |
The notes on pages 16 to 32 form part of these financial statements.
15
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
1 ACCOUNTING POLICIES
Legal status of the charity
Sunfield Children’s Homes Limited (Sunfield) was incorporated in England and Wales as a company limited by shares (registered no. 00413810).
Sunfield is also registered with the Charity Commission in England and Wales (registered no.
527552).
The registered office of Sunfield is Ruskin Mill Trust, Millbottom, Nailsworth, GL6 0LA and the principal office of Sunfield is Clent Grove, Clent, Stourbridge, West Midlands DY9 9PB.
Basis of accounting
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Sunfield 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 note.
The financial statements are presented in sterling (£) which is the functional currency of the charity.
Going concern
For the foreseeable future the Trustees consider Sunfield a going concern based on recurring funding receivable from the local authorities to enable us to provide a level of care for our students and cover overheads. The Trustees also believe that reserves are maintained at an appropriate level to provide the sufficient level of cover necessary should it be required.
The Trust ensures that robust budgets are set, and that actual spend against these budgets is analysed monthly by both the Executive Team and the Board of Trustees’ Finance Sub-Committee; the full Board also receives these monthly management accounts and reviews them on a twomonthly cycle. The company is currently negotiating fee increases with local authorities to mitigate the impact of inflation on expenditure.
The group, headed by Ruskin Mill Trust Limited, has substantial net assets. Furthermore, Ruskin Mill Trust Limited has provided assurances that group financial support will be provided to Sunfield as required. There are therefore no material uncertainties surrounding the going concern status of Sunfield.
Income
Income derived from fees is accounted for on an accruals basis.
Donations and legacies are credited to revenue when the charitable company has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
16
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
1 ACCOUNTING POLICIES (continued)
Income from dividends is recognised when receivable.
All income is attributable to the one principal activity of the company which arose wholly within the United Kingdom.
Expenditure
Resources are included in the Statement of Financial Activities on an accruals basis. Overheads are allocated over the charitable and fundraising activities in proportion to the direct costs by those activities. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Included in Governance costs are the annual audit fee, professional fees related to maintain the constitutional framework and Trustee expenses.
Termination payments are accounted for as soon as the charitable company is aware of the obligation to make the payment.
Investments
Investments are stated at market value at the balance sheet date. The Statement of Financial Activities included the net gains and losses arising on revaluation and disposal throughout the year.
Fixed assets
Items of a capital nature, capable of lasting more than one year and costing more than £500 are normally capitalised.
Depreciation
Depreciation is calculated to write off the cost of an asset, over the useful economic life of that asset as follows:
| Leasehold buildings | 1% - 10% pa | straight line |
|---|---|---|
| Plant & machinery | 10% - 25% pa | straight line |
| Motor vehicles | 25% pa | straight line |
| Fittings & equipment | 10% - 25% pa | straight line |
A full year’s depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal.
Depreciation is not charged on assets under construction.
Operating lease agreements
Rentals paid under operating leases are charged to income on a straight-line bases over the period of the lease.
17
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 August 2023
1. ACCOUNTING POLICIES (continued)
Consumables
It is not the company’s policy to include consumables as a current asset in these financial statements. The consumables store area maintains medical and domestic supplies for daily use, not thought to be worth in excess of £15,000 at any one time.
Pension costs
Teachers are eligible for membership of the Teachers’ Pension Scheme which is a defined benefit scheme. It is a multi-employer scheme and the charity’s share of any deficit cannot be identified. Therefore, it is accounted for as a defined contribution scheme in accordance with the provisions of FRS 102.
All other staff are eligible to join our stakeholder scheme with an employer’s contribution of varying rates. Contributions payable are charged to the Statement of Financial Activities in the year in which they are due. All pension costs are allocated to unrestricted funds.
Fund accounting
Unrestricted Funds are available for use at the discretion of the Trustees to fulfil the charity’s general charitable objectives.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor and / or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in note 11.
Debtors
Short term debtors are initially measured at transaction price, less any impairment. Prepayments are measured at the amount prepaid.
Creditors
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and held with banks and other short-term deposits.
Financial instruments
Sunfield only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. Financial investments are initially measured at their transaction cost and subsequently measure at their fair value at the balance sheet date. Please see note 13.
Taxation
The company is a registered charity and as such is entitled to tax exemption on all its income and gains, properly applied for its charitable purposes.
18
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 August 2023
1. ACCOUNTING POLICIES (continued)
Significant estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The items in the financial statements where these estimates and judgements have been made include the following:
Useful economic lives of tangible assets
The annual depreciation charges for the tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.
Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of fee and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
19
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
2 STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 01.9.21 TO 31.8.22
| Notes INCOME FROM: Donations and legacies Charitable activities Other trading activities Investments Other TOTAL INCOME 3 EXPENDITURE ON: Charitable activities Other TOTAL EXPENDITURE 5 NET EXPENDITURE FOR THE YEAR BEFORE GAIN ON INVESTMENTS Loss on investments 8 NET INCOME Transfers between funds NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Total funds brought forward 11 Total funds carried forward 11 |
Unrestricted Funds £ 118,130 9,623,087 23,382 10,195 2,735 9,777,529 (10,402,730) - (10,402,730) (625,201) (54,240) (679,441) - (679,441) 6,154,741 5,475,300 |
Restricted Funds £ 50,500 - - - - 50,500 - - - 50,500 - 50,500 - 50,500 1,470 51,970 |
Total Funds Year to 31.8.22 £ 168,630 9,623,087 23,382 10,195 2,735 9,828,029 (10,402,730) - (10,402,730) (574,701) (54,240) (628,941) - (628,941) 6,156,211 5,527,270 |
|---|---|---|---|
20
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
3 INCOME
| Period to 31 August 2023 |
Period to 31 August 2022 |
|
|---|---|---|
| £ | £ | |
| Donations and legacies | 137,261 | 168,630 |
| Charitable activities | ||
| Care and education of children | 11,243,873 | 9,623,087 |
| 11,243,873 | 9,623,087 | |
| Other trading activities | ||
| Sale of goods | 28,064 | 14,597 |
| Rent | 15,000 | 8,785 |
| 43,064 | 23,382 | |
| Investments | ||
| Listed investments | 12,482 | 10,189 |
| Bank interest | 91 | 6 |
| 12,573 | 10,195 | |
| Other | 63 | 2,735 |
| TOTAL INCOME | **11,436,834 ** | 9,828,029 |
| 4 NET INCOME Net income is stated after charging: |
| Year to 31 | Year to 31 | |
|---|---|---|
| August | August | |
| 2023 | 2022 | |
| £ | £ | |
| Auditor's remuneration – audit | 14,500 | 13,000 |
| Auditor's remuneration – other services | 1,100 | 1,000 |
| Operating lease payments in year | 330,000 | 3,002 |
| Depreciation - owned assets | 43,667 | 48,146 |
21
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued) For the period ended 31 August 2023
5 ANALYSIS OF EXPENDITURE
| Staff costs (see note 6) £ 3,169,699 1,901,379 184,856 25,673 |
Staff costs (see note 6) £ 3,169,699 1,901,379 184,856 25,673 |
Depreciation (see note 7) £ 25,759 15,455 1,503 950 |
Depreciation (see note 7) £ 25,759 15,455 1,503 950 |
Support £ 3,463,720 2,467,644 - - |
Support £ 3,463,720 2,467,644 - - |
Period to 31 August 2023 £ 6,659,178 4,384,478 186,359 26,623 |
Period to 31 August 2022 |
|
|---|---|---|---|---|---|---|---|---|
| £ | ||||||||
| Charitable activities | ||||||||
| Care of children | 6,488,344 | |||||||
| Education of children | 3,769,598 | |||||||
| Therapies and healthcare for children | 120,656 | |||||||
| Training, research and awareness | 24,132 | |||||||
| Total | **5,281,607 ** | **43,667 ** | **5,931,364 ** | 11,256,638 | 10,402,730 |
22
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
6. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| Year to 31 | Year to 31 | |
| August 2023 | August 2022 | |
| £ | £ | |
| Wages and salaries | 4,613,002 | 3,902,486 |
| Social Security Costs | 501,721 | 427,502 |
| Other pension costs | **166,884 ** | 116,297 |
| 5,281,607 | 4,446,285 | |
| he monthly average headcount number of employees during the period was as follows: | ||
| Year to 31 | Year to 31 | |
| August 2023 | August 2022 | |
| Headcount | No. | No. |
| Psychology and therapies | 12 | 5 |
| Support services | 23 | 24 |
| Education | 70 | 62 |
| Care | 122 | 117 |
| 227 | 208 |
The monthly average headcount number of employees during the period was as follows:
The numbers of employees earning more than £60,000 (excluding employer NI and pension costs) were:
| Year | to 31 | Year to 31 | ||
|---|---|---|---|---|
| August | 2023 | August 2022 | ||
| No. | No. | |||
| £70,001 | - £80,000 | 1 | 1 |
Termination benefits of £Nil (2022: £11,864) were paid during the year.
No trustee expenses were reimbursed during the financial year (year ended 31 August 2022: £Nil).
No Trustees were remunerated in the current period (year ended 31 August 2022: £Nil).
Key management personnel of the company are remunerated by a different group entity and hence no disclosure is made in these financial statements.
23
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued) For the period ended 31 August 2023
7 TANGIBLE FIXED ASSETS
| Cost At 31 August 2022 Additions Transfers At 31 August 2023 Depreciation At 31 August 2022 Charge for the year Transfers At 31 August 2023 NBV At 31 August 2023 At 31 August 2022 |
Leasehold land & buildings £ 166,698 7,090 198,624 372,412 1,329 6,126 - 7,455 364,957 165,369 |
Plant & machinery £ 98,182 - - 98,182 85,222 4,662 - 89,884 8,298 12,960 |
Motor vehicles £ 220,522 22,200 - 242,722 208,837 7,703 - 216,540 26,182 11,685 |
Fittings & equipment £ 711,315 14,466 - 725,781 647,037 25,176 - 672,213 53,568 64,278 |
Assets Under Construction £ 198,624 - (198,624) - - - - - - 198,624 |
Totals £ 1,395,341 43,756 - |
|---|---|---|---|---|---|---|
| 1,439,097 | ||||||
| 942,425 43,667 - |
||||||
| 986,092 | ||||||
| 453,005 | ||||||
| 452,916 |
24
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
8 INVESTMENTS
| Market value at 31 August 2022 Acquisitions at cost Proceeds on disposal Gain/(Loss) in the period Market value at 31 August 2023 Investments at market value comprised: UK Bonds Overseas Bonds UK Equities North American Equities European Equities Japanese Equities Asia Pacific Equities Emerging Market Equities Absolute Return Property Other Investments Historical cost |
31 August 2023 31 August 2022 £ £ 475,361 530,449 106,023 35,800 (140,505) (36,648) (143) (54,240) |
|---|---|
| 440,736 475,361 |
|
| 31 August 2023 31 August 2022 £ £ 24,062 14,512 50,179 48,893 88,319 111,129 131,338 151,775 41,870 32,356 15,661 14,963 28,968 33,009 3,601 3,742 29,796 28,780 8,955 13,016 17,987 23,186 |
|
| 440,736 475,361 |
|
| 476,508 430,360 |
The following investments represent more than 5% of the total market value:
| 31 August | |
|---|---|
| 2023 | |
| £ | |
| Jupiter Unit Trust Managers – Global Strategic Bond | 25,882 |
| Brown Advisory Funds – US Sustainable Growth | 28,625 |
| Vanguard Investments Funds – US Equity | 40,168 |
25
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
9 DEBTORS: AMOUNTS DUE WITHIN ONE YEAR
| 31 August 2023 £ Trade debtors 972,302 Intercompany debtors 875,688 Prepayments and accrued income 29,456 Amounts due from related party (see note 19) 3,500,000 Other debtors 9,366 5,386,812 10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31 August 2023 £ Trade creditors 519,037 Other creditors 159,921 Social security and other taxes 171,913 Accruals 40,280 Fees in advance 193,543 1,084,694 Fees received in advance: 31 August 2023 £ Amounts brought forward 499,836 Amounts received during the year 10,937,580 Amounts utilised during the year (11,243,873) 193,543 |
31 August 2022 £ 654,555 979,022 10,586 3,500,000 24,511 |
|
|---|---|---|
| 5,168,674 | ||
| 31 August 2022 £ 219,325 128,063 153,442 - 499,836 |
||
| 1,000,666 | ||
| 31 August 2022 £ 34,357 10,088,566 (9,623,087) |
||
| 499,836 |
Fees received in advance relate to fees received from the Local Authorities in respect of the 2022/2023 academic year.
26
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued) For the period ended 31 August 2023
11 RECONCILIATION OF MOVEMENT IN FUNDS
| At 31 August 2022 £ 5,475,300 |
Income £ 11,377,039 25,100 34,695 - - - |
Expenditure £ (11,256,638) - - -- - - |
Losses £ (143) - - - - - |
Transfers £ - - - - - - |
At 31 August 2023 |
|
|---|---|---|---|---|---|---|
| £ | ||||||
| Unrestricted funds | ||||||
| General fund | 5,595,558 | |||||
| Restricted funds | ||||||
| Blacksmith Shelter | - - 100 1,870 50,000 |
25,100 | ||||
| Colour Light Therapy | 34,695 | |||||
| Share capital | 100 | |||||
| Bike project | 1,870 | |||||
| Lower School | 50,000 | |||||
| 51,970 | 59,795 | - | - | - | 111,765 | |
| TOTAL | 5,527,270 | 11,436,834 | (11,256,638) | (143) | - | 5,707,323 |
A £1,369 donation was received from Baron Davenports for the Sunfield bike project, and a further £500 has been donated by Dumbrek Charity towards this project.
A £50,000 donation has been received from the Edward Cadbury Charitable Trust to be used towards the Lower School development.
Blacksmith Shelter - £12,500 was received from the Sterling Charity Foundation. A further £10,000 was received from the Harlock Education Foundation and £2,600 was received from the Edward & Dorothy Cadbury Trust.
Colour Light Therapy - A legacy donation for £4,811.29 was received from A Partridge. A legacy donation for £22,250.70 was received from Mary Walls. A legacy donation for £7,632.86 was received from M A De Saulles. All to be used for colour light therapy equipment.
27
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
12 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Share capital: Authorised 100 Ordinary shares of £1 each Allotted and fully paid 100 Ordinary shares of £1 each As at 31 August 2023 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 453,005 453,005 As at 31 August 2022 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 452,916 452,916 |
Share capital: Authorised 100 Ordinary shares of £1 each Allotted and fully paid 100 Ordinary shares of £1 each As at 31 August 2023 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 453,005 453,005 As at 31 August 2022 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 452,916 452,916 |
Share capital: Authorised 100 Ordinary shares of £1 each Allotted and fully paid 100 Ordinary shares of £1 each As at 31 August 2023 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 453,005 453,005 As at 31 August 2022 Fixed assets £ Share capital - Other reserves - Restricted funds - Unrestricted funds 452,916 452,916 |
Investments £ - 61,665 61,665 379,072 440,737 Investments £ - 1,870 |
31 August 2023 £ 100 |
31 August 2022 £ 100 100 Total £ 100 111,665 |
|||
|---|---|---|---|---|---|---|---|---|
| 100 | ||||||||
| Other net assets £ 100 50,000 50,100 4,763,481 4,813,581 Other net assets £ 100 50,000 |
||||||||
| 111,765 5,595,558 |
||||||||
| 5,707,323 | ||||||||
| Total £ 100 51,870 |
||||||||
| - 452,916 |
1,870 473,491 |
50,100 4,548,893 |
51,970 5,475,300 |
|||||
| 452,916 | 475,361 | 4,598,993 | 5,527,270 |
28
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
13 FINANCIAL INSTRUMENTS
| Financial assets measured at settlement value Financial assets measured at fair value Financial liabilities measured at settlement value |
31 August 2023 £ 4,993,100 1,493,132 (719,237) |
31 August 2022 £ 4,610,050 1,110,051 (347,388) |
|---|---|---|
Financial assets measured at settlement value comprise cash, trade debtors and other debtors.
Financial assets measured at fair value comprise listed investments which is the market value at the balance sheet date.
Financial liabilities measured at settlement value comprise trade creditors, other creditors, and accruals.
14 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
| Net movement in funds Loss on investments Investment income Depreciation Increase in debtors (Decrease) / increase in creditors Net cash used in operating activities |
31 August 2023 £ 180,053 143 (12,573) 43,667 (218,138) 84,028 77,180 |
31 August 2022 £ (628,941) 54,240 (10,195) 48,146 (185,916) 549,504 |
|---|---|---|
| (173,162) |
29
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
15 PENSIONS
Teachers’ Pension scheme
The charity participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £50,836 and at the yearend an amount payable of £5,083.
The TPS is a statutory, defined benefit scheme, governed by the Teacher’s Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies. All teachers have the option to opt-out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and the employer makes contributions, as a percentage of salary – these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Valuation of the Teachers’ Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TTPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 26 October 2023.
The key elements of the valuation and subsequent consultation are:
-
Employer contribution rate increased by 5% from 1 April 2024. The main factor influencing this increase is a change in discount rate because the long-term expectation of real GDP growth has been revised downwards from 2.4% to 1.7%. This has increased the assessed cost of scheme liabilities.
-
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). (Previously 23.68%). The new rate will apply from 2024 to 2027.
-
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million (previously £218,100 million) and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million (previously £196,100 million), giving a notional past service deficit of £(39,800 million).
-
the SCAPE discount rate, set by HM Treasury, is used to determine the notional investment return. The current SCAPE rate is 1.7% above the rate of CPI, previously 2.4%.
-
The assumed rates of pension increases (equal to CPI) are forecast to decline from 10.1% in 2022/23 to 0% in 2025/26, returning to 2% in 2028/29. Previously 2% was forecast.
-
Salary increases are forecast at 1.6% in 2024/25 and 2025/26 with modest increases thereafter. Previously forecast salary increases were 4.2%.
A copy of the valuation report and supporting documentation is on the Teachers’ Pension website: - - https://www.teacherspensions.co.uk/ /media/documents/member/documents/factors/valuation/tps ew-2020-valuation-results-report---26_10_23(002).ashx?rev=aba4c7a4288a480487ee087589a8eda6&hash=732241CC77819285E35B0F7644 86A6E0
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Charitable Company has accounted for its contributions to the scheme as if it were a defined contribution scheme.
30
DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 August 2023
16 OPERATING LEASE COMMITMENTS
At 31 August 2023, the company had commitments under non-cancellable operating leases for land and buildings as set out below:
| ings as set out below: | |
|---|---|
| Operating Lease commitments due: Within 1 year Within 2 – 5 years Over 5 years |
Year Ended 31 August 2023 Year Ended 31 August 2022 £ £ 360,000 - 1,440,000 - 3,570,000 - |
| 5,370,000 - |
17 CONTINGENCIES
There are no contingent liabilities known or anticipated by the Trustees at the current or previous period end.
18 CAPITAL COMMITMENTS
There are no capital commitments at the current or previous period end.
19 ULTIMATE PARENT COMPANY AND CONTROLLING PARTY
Ruskin Mill Trust Limited (registered in England and Wales; company number: 07252866 and charity number: 1137167) is the sole member and controlling party of Sunfield Children’s Homes Limited. The objects of Ruskin Mill Trust Limited include the advancement of the education of young people with learning difficulties and/ or behavioural problems or special educational needs; the promotion of research into the practice and development of those areas of education; and the promotion of Rudolf Steiner education establishments. The charitable company runs six special educational needs schools/colleges. A copy of their financial statements can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.
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DocuSign Envelope ID: D24AE0A5-A1E3-47AB-8F3B-ADB68C5D70EF
SUNFIELD CHILDREN’S HOMES LIMITED
20 RELATED PARTY TRANSACTIONS
2023 transactions and year-end balance between subsidiaries and parent company
| Ruskin Mill Trust | Catherine Grace Trust | |
|---|---|---|
| Donation paid to parent | 2,287,338 | - |
| Trade debtor amounts due from subsidiary | 875,672 | 420 |
| Trade creditor amounts due to subsidiary | - | - |
2022 transactions and year-end balance between subsidiaries and parent company
| Ruskin Mill Trust | Catherine Grace Trust | |
|---|---|---|
| Donation paid to parent | 3,050,000 | - |
| Trade debtor amounts due from subsidiary | 979,022 | 420 |
| Trade creditor amounts due to subsidiary | - | - |
Mr A Gordon OBE (Director and Founder of the entity) is a trustee of Ruskin Mill Land Trust Limited from which the company made purchases of £330,000 (2022: £ Nil). At the year end, Ruskin Mill Land Trust owes Sunfield Children’s Homes Limited £3,500,000 (2022: £3,500,000), which is disclosed in debtors (Note 9).
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