REGISTERED CHARITY NUMBER: 528401
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 FOR FOUNDATION OF LUDLOW COLLEGE
FOUNDATION OF LUDLOW COLLEGE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 to 12 |
| Detailed Statement of Financial Activities | 13 |
FOUNDATION OF LUDLOW COLLEGE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The main objects of the charity are the provision of items, services and facilities for Ludlow College or any Higher or Further Education College conducted in Ludlow on the property of the charity, and the education of its students.
Significant activities
The charity pursues its objectives by providing facilities for Ludlow College and awarding university scholarships for college students.
Public benefit
The trustees have complied with their duty to have due regard to public benefit guidance published by the Charity Commission. The trustees consider that the charity meets the public benefit requirements of the Charities Act 2011 by carrying out its normal activities.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The Foundation Scholarship scheme continues with all existing commitments being honoured; the awarding of new scholarships to students for higher education has now been suspended.
No substantial grant had been made to the college, apart from the rental from HLC.
As at 31st March 2021 no amounts were outstanding in respect of rental receivable for the main buildings. Travel agency rent is now paid directly.
FINANCIAL REVIEW
Financial position
The trustees consider the performance of the charity during the year under review has been satisfactory.
As the granting of new scholarships has been suspended, there are no new liabilities in this area. Grants to the college to support the purchase of IMacs and Surface devices have been made, as well as bursaries directly to students to support travel costs etc.
The total market value of the financial investments at 31st March 2021 was £1,145,703 (2020 £983,723). Current assets were £45,619 (2020 £22,480). These show a significant improvement since last year and will enable the charity to continue to meet its objectives for the foreseeable future.
Reserves policy
Reserves are currently standing at a satisfactory level and are generating a consistent level of income to fund donations, activities for charitable objectives and to meet the general administration costs of the charity.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing documents, a Scheme dated 19/07/2002 as amended by a Scheme dated 19/03/2004 and as amended by a Scheme dated 05/12/2013.
Recruitment and appointment of new trustees
The appointment of trustees is governed by the Scheme governing the Foundation.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Page 1
FOUNDATION OF LUDLOW COLLEGE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number 528401
Principal address Castle Square Ludlow Shropshire SY8 1GD
Trustees R E Meredith A Minton-Beddoes R Strachan J M Hogan J Forsyth J Caird A Salwey D Butt E Carson R Swire V Ainsworth C Morris J Evans A Powis Independent examiner M A Skellum FCA Ballards LLP 11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH Investment Brokers Harris Allday Ground Floor, Beech House, Anchorage Avenue, Shrewsbury Business Park, Shrewsbury SY2 6FG CCLA, Senator House, 85 Queen Victoria Street, London EC4V 4ET M&G Charities, PO Box 9038 Chelmsford CM99 2XF
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
Arabella Salwey ............................................................................. Trustee
Page 2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FOUNDATION OF LUDLOW COLLEGE
Independent examiner's report to the trustees of Foundation of Ludlow College
I report to the charity's trustees on my examination of the accounts of the Foundation of Ludlow College (the Trust) for the year ended 31 March 2021.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination.
Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I confirm that no other matters have come to my attention that give me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
M A Skellum FCA Ballards LLP 11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH
Date: .............................................
Page 3
FOUNDATION OF LUDLOW COLLEGE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| Fund | fund | Funds | Funds | ||
| INCOME AND ENDOWMENTS | Notes | £ | £ | £ | £ |
| FROM | - | ||||
| Donations and legacies | 1,050 | 1,050 | 1,050 | ||
| Investment income | 2 | 74,057 | 3,933 | 77,990 | 57,205 |
| Total | 75,107 | 3,933 | 79,040 | 58,255 | |
| EXPENDITURE ON | |||||
| Charitable activities | 3 | ||||
| Grants | 31,728 | 4,247 | 35,975 | 111,147 | |
| Support costs | 1,137 | - | 1,137 | 15,600 | |
| Total | 32,865 | 4,247 | 37,112 | 126,746 | |
| Net gains/(losses) on investments | 128,428 | 35,071 | 163,499 | (49,453) | |
| NET INCOME/(EXPENDITURE) | 170,670 | 34,757 | 205,427 | (117,945) | |
| Transfers between funds | (7,500) | 7,500 | - | - | |
| Net movement in funds | 163,170 | 42,257 | 205,427 | (117,945) | |
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 696,406 | 4,758,726 | 5,455,132 | 5,573,076 | |
| TOTAL FUNDS CARRIED | 859,576 | 4,800,983 | 5,660,559 | 5,455,131 | |
| FORWARD | |||||
| CONTINUING OPERATIONS |
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 4
FOUNDATION OF LUDLOW COLLEGE
BALANCE SHEET AT 31 MARCH 2021
| BALANCE SHEET | BALANCE SHEET | |||
|---|---|---|---|---|
| AT 31 MARCH 2021 | ||||
| 2021 | 2020 | |||
| Unrestricted | Restricted | Total | Total | |
| Fund | fund | Funds | Funds | |
| FIXED ASSETS Notes |
£ | £ | £ | £ |
| - | 4,494,275 | 4,494,275 | ||
| Tangible assets 6 |
4,494,275 | |||
| Investments 7 |
845,186 | 300,517 | 1,145,703 | 983,724 |
| 845,186 | 4,794,792 | 5,639,978 | 5,477,999 | |
| CURRENT ASSETS | 329 | 0 | 329 | |
| Debtors 8 |
329 | |||
| Cash at bank 9 |
39,099 | 6,191 | 45,290 | 22,152 |
| 39,427 | 6,191 | 45,619 | 22,480 | |
| CREDITORS | (17,997) | 0 | (17,997) | |
| Amounts falling due within one year 10 |
(26,097 | |||
| NET CURRENT ASSETS | 21,430 | 6,191 | 27,622 | (3,617) |
| TOTAL ASSETS LESS CURRENT | ||||
| LIABILITIES | 866,616 | 4,800,983 | 5,667,599 | 5,474,382 |
| CREDITORS | (7,040) | - | (7,040) | |
| Amounts falling due after more than one year 11 | (19,250 | |||
| NET ASSETS | 859,576 | 4,800,983 | 5,660,559 | 5,455,131 |
| FUNDS 12 |
||||
| 859,576 | ||||
| Unrestricted funds | 696,406 | |||
| Restricted funds | 4,800,983 | 4,758,725 | ||
| TOTAL FUNDS | 5,660,559 | 5,455,131 | ||
The financial statements were approved by the Board of Trustees on ............................................. and were signed on its behalf by:
Arabella Salwey ...................................................................................... Trustee
The notes form part of these financial statements
Page 5
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The 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 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) issued on 6th July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property
- not provided
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Page 6
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 |
||
|---|---|---|
| INVESTMENT INCOME | ||
| 2021 | 2020 | |
| £ | £ | |
| Rents received | 41,200 | 17,329 |
| Investment dividends | 32,857 | 35,417 |
| Equities Investment Fund | 3,933 | 4,459 |
| 77,990 | 57,205 |
2. INVESTMENT INCOME
3. CHARITABLE ACTIVITIES COSTS
| CHARITABLE ACTIVITIES COSTS | CHARITABLE ACTIVITIES COSTS | CHARITABLE ACTIVITIES COSTS | |
|---|---|---|---|
| Support | |||
| Direct costs Costs |
Totals | ||
| £ | £ | £ | |
| Grants | 35,975 | - | 35,975 |
| Support costs | - |
1,137 | 1,137 |
| 35,975 | 1,137 | 37,112 | |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2021, nor for the year ended 31 March 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2021, nor for the year ended 31 March 2020.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | Restrict | Total | ||
|---|---|---|---|---|
| ed | ||||
| fund | fund | Funds | ||
| INCOME AND ENDOWMENTS | £ | £ | £ | |
| FROM | ||||
| Donations and legacies | 1,050 | - | 1,050 | |
| Investment income | 52,086 | 5,119 | 57,205 | |
| Total | 53,136 | 5,119 | 58,255 | |
| EXPENDITURE ON | ||||
| Charitable activities | ||||
| Grants | 109,935 | 1,212 | 111,147 | |
| Support costs | 15,600 | - | 15,600 | |
| Total | 125,534 | 1,212 | 126,746 | |
| Net gains/(losses) on investments | (42,830) | (6,624) | (49,453) | |
| NET INCOME/(EXPENDITURE) | ||||
| Transfers between funds | - | - | - | |
| Net movement in funds | (115,228) | (2,716) | (117,945) |
Page 7
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
| 5. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
|---|---|---|---|---|
| Unrestricted | Restri | Total | ||
| cted | ||||
| fund | fund | Funds | ||
| £ | £ | £ | ||
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | 811,635 | 4,761,441 | 5,573,076 | |
| TOTAL FUNDS CARRIED FORWARD | 696,406 | 4,758,725 | 5,455,131 | |
| 6 | TANGIBLE FIXED ASSETS | |||
| . | ||||
| Freehold | ||||
| Property | ||||
| COST | £ | |||
| 4,494,275 | ||||
| At 1 April 2020 and 31 March 2021 | ||||
| NET BOOK VALUE | ||||
| At 31 March 2021 | 4,494,275 | |||
| At 31 March 2020 | 4,494,275 | |||
| The Freehold Land and Buildings are legally owned by | the Foundation, | although | they are used | |
| exclusively by Hereford and Ludlow College. Market value is not available as the trustees | consider the | |||
| cost of carrying out a professional valuation to be excessive compared to the limited additional benefit | ||||
| derived by the users of the accounts. | ||||
| 7 | FIXED ASSET INVESTMENTS | |||
| . | ||||
| Listed | ||||
| Investments | ||||
| MARKET VALUE | £ | |||
| At 1 April 2020 | 983,724 | |||
| Additions | 112,500 | |||
| Disposals | (115,518) | |||
| Revaluations | 164,997 | |||
| At 31 March 2021 | 1,145,703 | |||
| NET BOOK VALUE | ||||
| At 31 March 2021 | 1,145,703 | |||
| At 31 March 2020 | 983,724 | |||
| There were no investment assets outside the UK. |
Page 8
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
7. FIXED ASSET INVESTMENTS - continued
| Unrestricted | Restricted | |||
|---|---|---|---|---|
| Funds | Funds | 2021 | 2020 | |
| £ | £ | £ | £ | |
| COIF Income Units | 648,934 | 193,268 | 842,202 | 701,216 |
| COIF Property Units | 100,919 | - | 100,919 | 103,198 |
| Equities Investment Fund for Charities | 95,333 | 107,249 | 202,582 | 77,402 |
| Stocks and shares | - | 0 | 101,907 | |
| 845,186 | 300,517 | 1,145,703 | 983,724 | |
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Income from investments | 0 | ||||
| Rental income | 0 | 0 | |||
| Other debtors | 329 | 329 | |||
| 329 | 329 | ||||
| 9 | CASH AT BANK | ||||
| . | |||||
| General | Restricted | 2021 | 2020 | ||
| fund | funds | Total funds | Total funds | ||
| £ | £ | £ | £ | ||
| Lloyds current account | 39,073 | 3,396 | 42,469 | 17,853 | |
| COIF deposit accounts | 26 | 2,795 | 2,821 | 2,123 | |
| Harris Allday deposit account | - | 2,176 | |||
| Total | 39,099 | 6,191 | 45,290 | 22,152 |
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Scholarships Other creditors 11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Scholarships |
2021 | 2020 |
|---|---|---|
| £ | £ | |
| 16,020 | 23,470 | |
| 1,977 | 2,627 | |
| 17,997 | 26,097 | |
| 2021 | 2020 | |
| £ | £ | |
| 7,040 | 19,250 | |
Page 9
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
12. MOVEMENT IN FUNDS
| Net | Net | Transfers | Transfers | |||||
|---|---|---|---|---|---|---|---|---|
| movement | between | |||||||
| At 1.4.20 | in funds | funds | At 31.3.21 | |||||
| Unrestricted funds | £ | £ | £ | £ | ||||
| 696,406 | 170,670 | (7,500) | 859,576 | |||||
| General fund | ||||||||
| Restricted funds | 4,758,726 | 34,757 | 7,500 | 4,800,983 | ||||
| Restricted funds | ||||||||
| TOTAL FUNDS | 5,455,132 | 205,427 | - | 5,660,559 | ||||
| Net movement in funds, included in the above are as follows: | ||||||||
| Incoming Resources |
Gains and |
Movement | ||||||
| resources | expended | losses | in funds | |||||
| Unrestricted funds | £ | £ | £ | £ | ||||
| 75,107 | (32,865) | 128,428 | 170,670 | |||||
| General fund | ||||||||
| Restricted funds | 3,933 | (4,247) | 35,071 34,757 |
|||||
| Restricted funds | ||||||||
| TOTAL FUNDS | 79,040 | (37,112) | 163,499 | 205,427 | ||||
| Comparatives for movement in funds | ||||||||
| Net | Transfers | |||||||
| movement | between | |||||||
| At 1.4.19 | in funds | funds | At 31.3.20 | |||||
| £ | £ | £ | £ | |||||
| Unrestricted Funds | 811,635 | (115,229) (2,715) |
696,406 | |||||
| General fund | ||||||||
| Restricted Funds | 4,761,441 | 4,758,725 | ||||||
| Restricted funds | ||||||||
| TOTAL FUNDS | 5,573,076 | (117,944) | - | 5,455,132 | ||||
Page 10
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
12. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming Resources Gains and Movement |
Incoming Resources Gains and Movement |
Incoming Resources Gains and Movement |
Incoming Resources Gains and Movement |
|---|---|---|---|
| resources Expended |
losses in funds |
||
| Unrestricted funds £ 53,136 General fund |
£ | £ £ |
|
| (125,534) | (42,830) (115,228) |
||
| Restricted funds 5,119 Restricted funds |
(1,212) | (6,624) | (2,717) |
| TOTAL FUNDS 58,255 |
(126,746) | (49,454) (117,945) |
|
Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.
The following restricted funds are held by the charity:
Harley Bequest - to supplement teachers' salaries Melsome Trust - to provide annual science and technology grants - to provide an annual grant to a former Ludlow College Nash Award student studying at Bristol University Curry Prize } Meredith Prize } the income from these funds is now used for the general Mills Prize } funding of prizes Student Prize }
Transfers between funds
The transfer of £7,500 from unrestricted funds to restricted funds is the amount set aside from the charity's income and invested in restricted COIF investments as detailed in note 14.
13. CONTINGENT LIABILITIES
Significant contributions have been made by the government in developing many of the buildings and should any of these assets be sold the charity may be liable, under the terms of the financial memorandum with the Council, to surrender a proportion of the proceeds.
14. CAPITAL COMMITMENTS
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Contracted but not provided for in the financial statements | - | - |
The Millichope Arts Centre was financed using £357,000 from the permanent endowment of the charity, being the proceeds of property sold in 2005 and 2006. This was authorised by the Charity Commission in an order dated 15 June 2006. Under the terms of the order the charity must replace this sum by setting aside each year for 50 years a 1/50th part of the sum from the charity’s income, which must be invested as permanent endowment of the charity.
Page 11
FOUNDATION OF LUDLOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021
15. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2021.
Page 12
FOUNDATION OF LUDLOW COLLEGE DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2021
| INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Rents received Investment dividends Equities Investment Fund Total incoming resources EXPENDITURE Charitable activities Foundation Scholarships Foundation Bursaries/Prizes Payments to staff of Ludlow College Grants to College Support costs Governance costs Professional charges Total resources expended Net income |
2021 2020 £ £ 1,050 1,050 41,200 17,329 32,857 35,417 3,933 4,459 ________ 77,990 57,205 79,040 58,255 (4,310) (16,716) 838 1,225 4,247 4,404 35,200 122,234 ________ 35,975 111,147 __ 1,137 15,600 37,112 126,747 41,928 (68,492) |
|---|---|
This page does not form part of the statutory financial statements
Page 13