2022-03-31-accounts - The Foundation Of Ludlow College

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REGISTERED CHARITY NUMBER: 528401

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 FOR FOUNDATION OF LUDLOW COLLEGE

FOUNDATION OF LUDLOW COLLEGE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

	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 2022

The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. 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.

A grant of £1,260 was made to the college for the purchase of a defibrillator.

As at 31st March 2022 no amounts were outstanding in respect of rental receivable for the main buildings. The rental, of £36,300 this year, is paid back to the college without passing through the bank account. The college confirms that this money has been spent on students’ education. 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. As well as the grant mentioned above, bursaries to students of a total of £2,231 were made.

The total market value of the financial investments at 31st March 2022 was £1,259,158 (2021 £1,145,703). Current assets were £58,765 (2021 £45,619). 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 I

FOUNDATION OF LUDLOW COLLEGE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 528401

Principal address Castle Square Ludlow Shropshire SY8 1GD

Trustees R E Meredith A Minton-Beddoes A Powis J M Hogan J Forsyth J Caird A Salwey D Butt E Carson R Swire V Ainsworth C Morris J Evans W Shuttleworth R Strachan

Independent examiner M A Skellum FCA Ballards LLP 11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH

Investment Brokers

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 2022.

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 2022

				2022	2021
			Restricte	Total	Total
	Unrestricted		d
		Fund	fund	Funds	Funds
INCOME AND ENDOWMENTS	Note	£	£	£	£
FROM	s
			-
Donations and legacies		1,050		1,050	1,050
Investment income	2	77,019	5814	82,833	77,990
Total		78,069	5,814	83,883	79,040
EXPENDITURE ON
Charitable activities	3
Grants		37,131	4,085	41,216	35,975
Support costs		1,821	-	1,821	1,137
Total		38,952	4,085	43,037	37,112
Net gains/(losses) on		73,606	24,847	98,453	163,499
investments
NET INCOME/		112,723	26,576	139,29	205,427
(EXPENDITURE)				9
Transfers between funds		(12,91	12,910	-	-
		0)
Net movement in funds		99,813	39,486	139,29	205,427
				9
RECONCILIATION OF FUNDS
Total funds brought forward		859,576	4,800,9	5,660,5	5,455,13
			83	59	2
TOTAL FUNDS CARRIED		959,389	4,840,4	5,799,8	5,660,55
FORWARD			69	58	9
CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 4

BALANCE SHEET AT 31 MARCH 2022

BALANCE SHEET	BALANCE SHEET
AT 31 MARCH 2022
			2022	2021
Unrestricted		Restrict ed	Total	Total
Fund		fund	Funds	Funds
FIXED ASSETS Notes £ - Tangible assets 6		£	£	£
	-	4,494,2 75	4,494,27 5
Tangible assets 6				4,494,27 5
Investments 7	918,795	340,364	1,259,15 8	1,145,70 3

	918,795	4,834,6 39	5,753,43 3	5,639,97 8
CURRENT ASSETS	0	0	0
Debtors 8				329
Cash at bank 9	52,934	5,831	58,765	45,290

	52,934	5,831	58,765	45,619
CREDITORS	(10,320)	0	(10,320)
Amounts falling due within one year 10				(17,997

NET CURRENT ASSETS	42,614	5,831	48,445	27,622
TOTAL ASSETS LESS CURRENT

LIABILITIES	961,409	4,840,4 69	5,801,87 8	5,667,59 9
CREDITORS	(2,020)	-	(2,020)
Amounts falling due after more than one year 11				(7,040

NET ASSETS	959,389	4,840,4 69	5,799,85 8	5,660,55 9
FUNDS 12
			959,389
Unrestricted funds				859,576
Restricted funds			4,840,46 9	4,800,98 3

TOTAL FUNDS			5,799,85 8	5,660,55 9

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 2022

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 2022

FOUNDATION OF LUDLOW COLLEGE NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022
INVESTMENT INCOME
	2022 2021
	£ £
Rents received	42,30 0 41,200
Investment dividends	30,21 4 32,857
Equities Investment Fund	10,31 9	3,933

	82,83 3 77,990

2. INVESTMENT INCOME

3. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS	CHARITABLE ACTIVITIES COSTS
Support
Direct costs Costs		Totals
£ £		£
Grants 41,216 -		41,216
Support costs	0- 1,821	1,821

41,216 1,821		43,037

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022, nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022, nor for the year ended 31 March 2021.

5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

	Unrestricted	Restric	Total
		ted
	fund	fund	Funds
INCOME AND ENDOWMENTS	£	£	£
FROM
Donations and legacies	1,050	-	1,050
Investment income	74,057	3,933	77,990
Total	75,107	3,933	79,040
EXPENDITURE ON
Charitable activities
Grants	31,728	4,247	35,975
Support costs	1,137	-	1,137
Total	32,865	4,247	37,112
Net gains/(losses) on	128,428	35,071	163,499
investments
NET INCOME/(EXPENDITURE)	170,670	34,757	205,427
Transfers between funds	(7,500)	7,500	-

Net movement in funds

163,170 42,257

205,427

Page

FOUNDATION OF LUDLOW COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -	continued
		Unrestricte	Restri	Total
		d	cted
		Fund	fund	Fund
				s
		£	£	£
	RECONCILIATION OF FUNDS
	Total funds brought forward	696,406	4,758,72	5,455,132
			6
	TOTAL FUNDS CARRIED FORWARD	859,576	4,800,98	5,660,559
			3
6	TANGIBLE FIXED ASSETS
.
				Freehol
				d
				Propert
				y
	COST			£
				4,494,275
	At 1 April 2021 and 31 March 2022
	NET BOOK VALUE
	At 31 March 2022			4,494,275
	At 31 March 2021			4,494,275
	The Freehold Land and Buildings are legally owned by the Foundation,			they are used
	although
	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
	beneft
	derived by the users of the accounts.
7	FIXED ASSET INVESTMENTS
.
				Liste
				d
				Investment
				s
	MARKET VALUE			£
	At 1 April 2021			1,145,703
	Additions			75,586
	Disposals			(60,586)
	Revaluations			98,456
	At 31 March 2022			1,259,158
	NET BOOK VALUE
	At 31 March 2022			1,259,158
	At 31 March 2021			1,145,703
	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 2022

7. FIXED ASSET INVESTMENTS - continued

	Unrestricte d	Restricted
	Funds	Funds	2022	2021
	£	£	£	£

COIF Income Units	758,522	225,299	983,820 842,202
COIF Property Units	57,993	-	57,993 100,919
Equities Investment Fund for Charities	102,280	115,064	217,345 202,582
Stocks and shares	-			0

	918,795	340,364	1,259,158 1,145,70 3

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

				2022	2021
				£	£
	Income from investments			0	0
	Rental income			0	0
	Other debtors			0	329
				0	329
9	CASH AT BANK
.
		General	Restricte	2022	2021
			d
		fun	funds	Total	Total
		d		funds	funds
		£	£	£	£
	Lloyds current account	52,908	4,775	57,683	42,469
	COIF deposit accounts	26	1,056	1,082	2,821
	Harris Allday deposit
	account
	Total	52,934	5,831	58,765	45,290

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
	2022 2021
	£ £
Scholarships	8,340 16,020
Other creditors	1,980	1,977

	10,32 0 17,997

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE	YEAR
	2022	2021
	£	£
Scholarships	2,020	7,040

Page 9

FOUNDATION OF LUDLOW COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022

12. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
	Net				Transfer s
	movement				between
	At 1.4.21		in funds		funds		At 31.3.22
Unrestricted funds	£		£		£		£
	859,576		112,724		(12,910)		959,389
General fund
Restricted funds	4,800,9 83		26,576			12,910	4,840,46 9
Restricted funds

TOTAL FUNDS	5,660,5 59		139,299			-	5,799,85 8

Net movement in funds, included in the above are as follows:
	Incomin g Resources					Gains and Movemen t
	resourc es expende d					losses	in funds
Unrestricted funds		£ £				£	£
		78,069 (38,952)				73,606	112,723
General fund
Restricted funds		5,814		(4,085)		24,847		26,576
Restricted funds

TOTAL FUNDS		83,883 (43,036)				98,453	139,299
Comparatives for movement in funds
				Net	Transfer s

		movement			between
		At 1.4.20	in funds		funds		At 31.3.21
		£	£		£		£
Unrestricted Funds	696,406		170,670 34,757		(7,500)		859,576
General fund
Restricted Funds	4,758,7 26				7,500		4,800,98 3
Restricted funds

TOTAL FUNDS	5,455,1 32		205,427		-		5,660,55 9

Page 10

FOUNDATION OF LUDLOW COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022

12. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Comparative net movement in funds, included in the above are as follows:	Comparative net movement in funds, included in the above are as follows:	Comparative net movement in funds, included in the above are as follows:	Comparative 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 Restricted funds	(4,247)	35,071	34,757

TOTAL FUNDS 79,040 (37,112) 163,499 205,427

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

CAPITAL COMMITMENTS
	2022	2021
	£	£
Contracted but not provided for in the fnancial 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 2022

15. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2022.

Page 12

FOUNDATION OF LUDLOW COLLEGE DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

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 staf of Ludlow College
Grants to College
Support costs
Governance costs
Professional charges
Total resources expended
Net income

2022
2021
£
£
1,050
1,050
42,300
41,200
30,214
32,857
10,319
3,933
________
82,833
77,990
83,883
79,040
(2,660)
(4,310)
2,231
838
4,085
4,247
37,560
35,200
________
41,216
35,975
__
1,824
1,137
43,039
37,112
40,843
41,928

This page does not form part of the statutory financial statements

Page 13