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REGISTERED COMPANY NUMBER: 10094184 (England and Wales)
REGISTERED CHARITY NUMBER: 1168455




















Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 July 2023

for

Canto Learning Limited

Canto Learning Limited






Contents of the Financial Statements
for the year ended 31 July 2023




Page

Report of the Trustees 1 to 4

Report of the Independent Auditors 5 to 8

Statement of Financial Activities 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13 to 23

Canto Learning Limited (Registered number: 10094184)

Report of the Trustees
for the year ended 31 July 2023


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 ended 31 July 2023. 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
To advance the education and skills of young people who live with challenges arising from learning, behavioural, emotional or social difficulties by the provision of a specialist establishment.

The Charity achieves the stated objective by continuing to successfully run the specialist establishment and by understanding those who access the provision, maintain the high standards in all work, continuing to striving for success, safe guarding those in the Charities care, and, ensuring equality, diversity and inclusion are promoted throughout the organisation.

Public benefit
All the Charity's activities are undertaken to further our charitable purpose for the benefit of the public. The trustees have had regard to the Charity Commission guidance on public benefit in section four of the Charities Act 2011. The main benefits which have arisen during the year from the organisations aims and activities are detailed in the following sections and in the financial review.

STRATEGIC REPORT
Achievement and performance
Review of the year's activities
The trustees are confident that the general balance between income, expenditure and reserves has remained satisfactory throughout the year, and that all resources have been used in an effective manner.

Much of the surplus shown in these accounts has been allocated to maintenance and upgrade of the premises and to funding planned growth of core provision.

Canto Learning Ltd continues to increase student provision for the benefit of those residing in Northamptonshire and surrounding areas. The good reputation of the organisation is seeing increasing demand across the geographical area for services, which is leading to organic growth of student numbers particularly those funded via Adult Social Care.

Ofsted inspected the education provision during the year judging it to remain good and recognising the valuable work being undertaken. The in-year monitoring visit from West Northamptonshire County Council confirmed that the provision is meeting the needs of those who access it. These inspections, together with ongoing monitoring of non-financial KPIs, such as annual staff and student satisfaction survey, act as a barometer as to the success of the Charity in carrying out its objectives.

Due to the nature of the funding of the teaching, provision, where necessary, is made in the accounts for potential clawback, however 2022/23 saw growth payments being received and so no provision has been included.

We have made significant progress throughout the year in relation to the key elements of our strategy, the board monitors the progress by reference to the following financial KPI's:

20232022

Accumulated surplus£1,344,426£1,108,785

Wage cost as a % of incoming resources66.3%56.2%

Operating surplus %12.4%15.5%


Canto Learning Limited (Registered number: 10094184)

Report of the Trustees
for the year ended 31 July 2023


STRATEGIC REPORT
Achievement and performance
Fundraising activities
The charity does not carry out significant fundraising activities, it does, however, undertake minor fundraising activities and social events aimed to give the young people who live with challenges arising from behavioural, emotional and social difficulties, a platform to express themselves and further their progression within the scope of the charities stated public benefit.

Financial review
Financial position
The Charity is satisfied with its financial position, it has healthy reserves which would maintain the charity for a period of time should activities be unexpectedly curtailed.

Principal funding sources
The principal funding sources are various local authorities in and around the Northamptonshire region and the EFSA, who enable the Charity to undertake its day to day activities and meet its stated objectives.

Investment policy and objectives
The investment policy of the charity is to put surplus funds into low risk investments with a view to generating a reasonable return while maintaining the security and accessibility of the funds. At the balance sheet date the company held fixed term deposits with its main bankers which could be accessed if needed.

Reserves policy
The nature of funding to the charity is such that payments are received in advance for various areas of the activities undertaken. These funds are reconcilable at the end of the academic year and, if unused, are at risk of being clawed back if the charity cannot demonstrate that the funds have been applied. Such 'at risk' funds are retained separately and only allocated to the finances of the charity as they are applied. It is from these applied funds that allocation is made to our reserves. Reserve funds are invested in an array interest bearing notice bank accounts to achieve a higher return, while keeping any downside risk to a minimum.

The trustees are satisfied that the amount of reserves remains at a healthy level and is being constantly monitored to ensure the long-term financial stability of the charity. At the balance sheet date, total reserves amounted to £2,085,963.

Financial and risk management objectives and policies
The trustees have assessed the major risks to which the charity is exposed, those relating to 'In Advance' payments which could be clawed back by the funding authorities. The trustees are satisfied that the measures in place adequately provide for any such risk that exists. Financial reports are completed and presented to each Board of Trustees meeting and satisfy the trustees that appropriate systems are in place to mitigate our exposure to all major risks.

Future plans
The Charity's future plan is to continue and develop the core provision of education and training to our SEN student groups and to add to our facilities in order to enhance further their learning experience and wellbeing.

Work continues to develop the on-site work centre, coffee shop and meeting room and although the main focus remains is to deliver work experience in-house rather than using third parties, enriching the experience for students in a cost-effective manner in the main focus. Buildings essential maintenance continues and will be a constant feature of a planned renewal schedule for the next 5 years.

STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.


Canto Learning Limited (Registered number: 10094184)

Report of the Trustees
for the year ended 31 July 2023


STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment of new trustees
The identification, recruitment and appointment of new trustees is done by the existing trustees, in particular the head of centre. These individuals are identified based upon their particular skills and knowledge, specifically, areas of weakness in the collective knowledge of the trustees is identified as part of the ongoing risk assessment, and the recruitment of a new trustees is targeted to help fill this knowledge gap.

The training of new trustees are conducted by existing trustees, by the head of centre, by attending ongoing CPD, and by spending time in and around the Canto Community.

REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
10094184 (England and Wales)

Registered Charity number
1168455

Registered office
Willis House
Tonmead Road
Lumbertubs
Northampton
Northamptonshire
NN3 8HU

Trustees
Mrs C Dear
Mr A M Hanning (resigned 31.12.2022)
Mr P Burch
Mrs J Gadsden
Mrs A Fometu
Mr A M Billingham
Mrs M E Heron
Mr R Nutt (resigned 31.12.2022)
Mrs T Davidson
Mr A R Sanders (appointed 26.9.2022)
Mr T J Goodridge (appointed 30.1.2023)

Auditors
Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
NN11 4BL

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.


Canto Learning Limited (Registered number: 10094184)

Report of the Trustees
for the year ended 31 July 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also directors of Canto Learning Limited for the purposes of company law) are responsible for preparing the Trustees' Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which 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:

-select suitable accounting policies and then apply them consistently;
-observe the methods and principles in the Charities SORP 2015 (FRS 102):
-make judgements and estimates that are reasonable and prudent;

-
state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the financial statements;

-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

- there is no relevant audit information of which the charitable company's auditor is unaware; and

-
the trustees have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditor is aware of that information.

AUDITORS
The auditors, Cottons Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 21 December 2023 and signed on the board's behalf by:





Mr A M Billingham - Trustee

Report of the Independent Auditors to the Members of
Canto Learning Limited

Opinion
We have audited the financial statements of Canto Learning Limited (the 'charitable company') for the year ended 31 July 2023 which comprise the Statement of Financial Activities, 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Canto Learning Limited


Matters on which we are required to report by exception
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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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.

Report of the Independent Auditors to the Members of
Canto Learning Limited


Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory framework applicable to the company and
the sector in which they operate. We determined that the following laws and regulations were most
significant: the Charities Act 2022, Companies Act 2006 and UK Generally Accepted Accounting
Practice.
- We obtained an understanding of how the company is complying with those legal and regulatory
frameworks by making inquiries to the management and by observing the oversight of management,
the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud
prevention, which may reduce the opportunities for fraud to take place, and fraud deterrence, which
could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries
through our review of all relevant available audit information.
- We assessed and understood the susceptibility of the company's financial statements to material
misstatement, including how fraud might occur. Based on this understanding we designed our audit
procedures to identify non-compliance with such laws and regulations. The audit procedures
performed by the engagement team included:
> Identifying and assessing the design and effectiveness of controls management has in place to
prevent and detect fraud;
> Understanding of how senior management considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
> Challenging assumptions and judgements made by management in its significant accounting
estimates;
> Performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the business rationale of significant
transactions outside the normal course of business and reviewing accounting estimates for bias;
and,
> Assessing the extent of compliance with relevant laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Independent Auditors.

Report of the Independent Auditors to the Members of
Canto Learning Limited


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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Callum Veasey ACA (Senior Statutory Auditor)
for and on behalf of Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
NN11 4BL

21 December 2023

Canto Learning Limited

Statement of Financial Activities
for the year ended 31 July 2023

2023 2022
Unrestricted Restricted Total Total
funds fund funds funds
Notes £    £    £    £   
INCOME AND ENDOWMENTS FROM
Donations and legacies 3 7,979 - 7,979 2,944

Charitable activities 6
Programme income 1,722,418 - 1,722,418 1,509,724

Other trading activities 4 25,474 - 25,474 21,995
Investment income 5 5,910 - 5,910 166
Total 1,761,781 - 1,761,781 1,534,829

EXPENDITURE ON
Charitable activities 7
Programme income 1,529,089 - 1,529,089 1,284,342

Other 13,530 - 13,530 12,884
Total 1,542,619 - 1,542,619 1,297,226

NET INCOME 219,162 - 219,162 237,603


RECONCILIATION OF FUNDS
Total funds brought forward 1,866,801 - 1,866,801 1,629,198

TOTAL FUNDS CARRIED FORWARD 2,085,963 - 2,085,963 1,866,801

Canto Learning Limited (Registered number: 10094184)

Balance Sheet
31 July 2023

2023 2022
Unrestricted Restricted Total Total
funds fund funds funds
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 13 1,376,500 - 1,376,500 1,352,135

CURRENT ASSETS
Stocks 14 650 - 650 650
Debtors 15 136,040 - 136,040 138,042
Cash at bank and in hand 702,092 - 702,092 715,063
838,782 - 838,782 853,755

CREDITORS
Amounts falling due within one year 16 (76,654 ) - (76,654 ) (183,198 )

NET CURRENT ASSETS 762,128 - 762,128 670,557

TOTAL ASSETS LESS CURRENT
LIABILITIES

2,138,628

-

2,138,628

2,022,692

CREDITORS
Amounts falling due after more than one year 17 (52,665 ) - (52,665 ) (155,891 )

NET ASSETS 2,085,963 - 2,085,963 1,866,801
FUNDS 20
Unrestricted funds 2,085,963 1,866,801
TOTAL FUNDS 2,085,963 1,866,801


The financial statements were approved by the Board of Trustees and authorised for issue on 21 December 2023 and were signed on its behalf by:





Mr A M Billingham - Trustee





Mrs C Dear - Trustee

Canto Learning Limited

Cash Flow Statement
for the year ended 31 July 2023

2023 2022
Notes £    £   

Cash flows from operating activities
Cash generated from operations 1 187,245 352,663
Interest paid (3,554 ) (6,196 )
Net cash provided by operating activities 183,691 346,467

Cash flows from investing activities
Purchase of tangible fixed assets (72,314 ) (140,358 )
Sale of tangible fixed assets - 200
Interest received 5,910 166
Net cash used in investing activities (66,404 ) (139,992 )

Cash flows from financing activities
Loan repayments in year (130,258 ) (57,521 )
Net cash used in financing activities (130,258 ) (57,521 )

Change in cash and cash equivalents
in the reporting period

(12,971

)

148,954
Cash and cash equivalents at the
beginning of the reporting period

715,063

566,109
Cash and cash equivalents at the end
of the reporting period

702,092

715,063

Canto Learning Limited

Notes to the Cash Flow Statement
for the year ended 31 July 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2023 2022
£    £   
Net income for the reporting period (as per the Statement of
Financial Activities)

219,162

237,603
Adjustments for:
Depreciation charges 47,948 46,494
Loss on disposal of fixed assets - 756
Interest received (5,910 ) (166 )
Interest paid 3,554 6,196
Decrease/(increase) in debtors 2,002 (11,803 )
(Decrease)/increase in creditors (79,511 ) 73,583
Net cash provided by operations 187,245 352,663


2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 715,063 (12,971 ) 702,092
715,063 (12,971 ) 702,092

Debt
Debts falling due within 1 year (53,666 ) 27,033 (26,633 )
Debts falling due after 1 year (155,891 ) 103,226 (52,665 )
(209,557 ) 130,259 (79,298 )
Total 505,506 117,288 622,794

Canto Learning Limited

Notes to the Financial Statements
for the year ended 31 July 2023

1. STATUTORY INFORMATION

Canto Learning Limited is a private company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's business address is Willis House, Tonmead Road, Lumbertubs, Northampton. NN3 8HU.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
Canto Learning Limited is an incorporated Charity in the United Kingdom. The nature of the charity's operations and principal activities are to advance the education and skills of young people who live with challenges arising from learning, behavioural, emotional or social difficulties by the provision of a specialist establishment.

The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) '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 Companies Act 2006.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going Concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from the date the financial statements are authorised. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern, despite the current pandemic.

Critical accounting judgements and key sources of estimation uncertainty
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

-Valuation of fixed assets
-Valuation of deferred income
-Calculation of accruals
-Valuation of the capital reserve

Income
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.


Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

2. ACCOUNTING POLICIES - continued

Income
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Annual Report.

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants in respect of education service funding. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established.

Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs allocation
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the 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 - 2% on cost, excluding est. land value

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Improvements to property - 2% on cost
Plant and machinery - 15% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 20% on reducing balance
Computer equipment - 15% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

Financial instruments
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.


Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

3. DONATIONS AND LEGACIES
2023 2022
£    £   
Donations 7,979 2,944

Income from fundraising activities was £7,979 of which £nil was attributable to capital reserve, £nil was attributable to endowments, £nil was attributable to restricted and £7,979 was attributable to unrestricted funds.

4. OTHER TRADING ACTIVITIES
2023 2022
£    £   
Clothing income 6,580 5,512
Tuck shop income 1,682 2,314
Avon income 17,212 14,169
25,474 21,995

Income from other trading activities was £25,474 of which £nil was attributable to endowments, £nil was attributable to restricted and £25,474 was attributable to unrestricted funds.

5. INVESTMENT INCOME
2023 2022
£    £   
Deposit account interest 5,910 166

Income from investment activities was £5,910 of which £nil was attributable to endowments, £nil was attributable to restricted and £5,910 was attributable to unrestricted funds.

6. INCOME FROM CHARITABLE ACTIVITIES
2023 2022
Activity £    £   
Programme income Programme income 646,365 626,723
Grants Programme income 1,076,053 883,001
1,722,418 1,509,724

Income from charitable activities was £1,722,418 of which £nil was attributable to endowments, £nil was attributable to restricted and £1,722,418 was attributable to unrestricted funds.

Grants received, included in the above, are as follows:
2023 2022
£    £   
Government funding 1,076,053 883,001


Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

7. CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 8) Totals
£    £    £   
Programme income 1,515,063 14,026 1,529,089

The charity has only one activity, and all expenditure is incurred in furtherance of that activity. The allocation of support costs is all allocated to one activity of the charity.

8. SUPPORT COSTS
Governance
Finance costs Totals
£    £    £   
Programme income 4,366 9,660 14,026

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023 2022
£    £   
Auditors' remuneration 4,800 4,800
Depreciation - owned assets 47,949 46,493
Deficit on disposal of fixed assets - 756

10. TRUSTEES' REMUNERATION AND BENEFITS
2023 2022
£    £   
Trustees' salaries 77,179 75,986
Trustees' social security 8,817 7,600
Trustees' pensions paid 2,221 2,222
88,217 85,808

The two Trustees for which remuneration is paid are Mrs. J. Gadsden and Mrs C. Dear. Both trustees are also accruing pension contributions under the charities auto enrolment obligation.

The charity has legal authority within its memorandum and articles of association to pay remuneration to Trustees, and this has been agreed with the Charities Commission. The remuneration was paid, not for the role of Trustee, but for the job undertaken within the Charity.

The charity considers that only its trustees are considered key management personnel and their remuneration is disclosed above.

The charity did reimburse expenses to trustees; the amount reimbursed is disclosed below and related to travel and subsistence payments. There was only one trustee who received reimbursed expenses.

Trustees' expenses
2023 2022
£    £   
Trustees' expenses 2,464 401

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

11. STAFF COSTS AND TRUSTEES
2023 2022
£    £   
Wages and salaries 1,064,662 863,862
Social security costs 76,635 58,523
Other pension costs 26,145 21,013
1,167,442 943,398

The average monthly number of employees during the year was as follows:

2023 2022
Employed Trustees 2 2
Other, Non-Salaried, Trustees 7 7
Leadership Team 6 6
Teaching Staff 17 17
Support Staff 14 14
Administrative Staff 6 6
52 52

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
£70,001 - £80,000 1 1

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
funds fund funds
£    £    £   
INCOME AND ENDOWMENTS FROM
Donations and legacies 2,944 - 2,944

Charitable activities
Programme income 1,509,724 - 1,509,724

Other trading activities 21,995 - 21,995
Investment income 166 - 166
Total 1,534,829 - 1,534,829

EXPENDITURE ON
Charitable activities
Programme income 1,284,342 - 1,284,342

Other 12,884 - 12,884
Total 1,297,226 - 1,297,226

NET INCOME 237,603 - 237,603


RECONCILIATION OF FUNDS
Total funds brought forward 1,629,198 - 1,629,198

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted Restricted Total
funds fund funds
£    £    £   

TOTAL FUNDS CARRIED FORWARD 1,866,801 - 1,866,801

13. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 August 2022 1,134,748 228,089 35,402
Additions - 39,883 13,571
At 31 July 2023 1,134,748 267,972 48,973
DEPRECIATION
At 1 August 2022 90,779 8,780 28,726
Charge for year 19,236 4,901 2,843
At 31 July 2023 110,015 13,681 31,569
NET BOOK VALUE
At 31 July 2023 1,024,733 254,291 17,404
At 31 July 2022 1,043,969 219,309 6,676

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 August 2022 39,957 37,902 56,813 1,532,911
Additions 4,539 - 14,321 72,314
At 31 July 2023 44,496 37,902 71,134 1,605,225
DEPRECIATION
At 1 August 2022 24,247 3,765 24,479 180,776
Charge for year 5,169 6,827 8,973 47,949
At 31 July 2023 29,416 10,592 33,452 228,725
NET BOOK VALUE
At 31 July 2023 15,080 27,310 37,682 1,376,500
At 31 July 2022 15,710 34,137 32,334 1,352,135

No depreciation was provided on the estimated land value of £173,000 which is included in the total cost at the start of the year.

All assets are used within the Charity for the benefit of the charitable purpose.

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

14. STOCKS
2023 2022
£    £   
Stocks 650 650

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 77,452 94,144
Bad debt provision - (1,709 )
Other debtors 4,789 -
Prepayments and accrued income 53,799 45,607
136,040 138,042

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) 26,633 53,666
Trade creditors 3,861 4,481
Social security and other taxes 22,238 18,576
Other creditors 8,013 7,150
Accruals and deferred income 15,909 79,401
Deferred government grants - 19,924
76,654 183,198

Government grant income for the forthcoming academic year is paid up front and subject to potential clawback at the end of the period. The deferred government grant balance represents the monies received which the charity has not yet earned through carrying out its charitable activity, however, at the balance sheet date the directors' believed that all income received had been earned and that there should not be a clawback.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 18) 52,665 155,891

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year on demand:
Bank loans 26,633 53,666
Amounts falling between one and two years:
Bank loans - 1-2 years 27,324 54,357
Amounts falling due between two and five years:
Bank loans - 2-5 years 25,341 101,534

The company has two long term loans, one at a fixed rate and one at a variable rate, bearing interest at rates of 3.77% and 2.00% above base rate, respectively.

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 79,298 209,557

There are two charges in relation to the loan monies outstanding both in favour of Lloyds Bank Plc, one over the property known as Willis House, and the other over all other assets of the Charity.

20. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.8.22 in funds funds 31.7.23
£    £    £    £   
Unrestricted funds
General Fund 1,108,785 219,162 16,479 1,344,426
Capital Reserve 758,016 - (16,479 ) 741,537
1,866,801 219,162 - 2,085,963
TOTAL FUNDS 1,866,801 219,162 - 2,085,963

Net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£    £    £   
Unrestricted funds
General Fund 1,761,781 (1,542,619 ) 219,162

TOTAL FUNDS 1,761,781 (1,542,619 ) 219,162


Comparatives for movement in funds

Net Transfers
movement between At
At 1.8.21 in funds funds 31.7.22
£    £    £    £   
Unrestricted funds
General Fund 854,703 237,603 16,479 1,108,785
Capital Reserve 774,495 - (16,479 ) 758,016
1,629,198 237,603 - 1,866,801
TOTAL FUNDS 1,629,198 237,603 - 1,866,801

Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

20. MOVEMENT IN FUNDS - continued

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

Incoming Resources Movement
resources expended in funds
£    £    £   
Unrestricted funds
General Fund 1,534,829 (1,297,226 ) 237,603

TOTAL FUNDS 1,534,829 (1,297,226 ) 237,603

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between At
At 1.8.21 in funds funds 31.7.23
£    £    £    £   
Unrestricted funds
General Fund 854,703 456,765 32,958 1,344,426
Capital Reserve 774,495 - (32,958 ) 741,537
1,629,198 456,765 - 2,085,963
TOTAL FUNDS 1,629,198 456,765 - 2,085,963

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£    £    £   
Unrestricted funds
General Fund 3,296,610 (2,839,845 ) 456,765

TOTAL FUNDS 3,296,610 (2,839,845 ) 456,765

Transfers between funds

The Capital Reserve is released over the life of the related asset, allocating the transfer of fund against the depreciation charge with Unrestricted Funds.


Canto Learning Limited

Notes to the Financial Statements - continued
for the year ended 31 July 2023

21. EMPLOYEE BENEFIT OBLIGATIONS

The company operates defined contribution, auto enrolment retirement benefit schemes for all its qualifying employees. The total expense charged to profit or loss in the period ended 31st July 2023 was £28,366 (2022: £23,235). The amount owed to the pension schemes at the year-end was £5,667 (2022: £4,996).

22. RELATED PARTY DISCLOSURES

The Director, Mr. A. Billingham, is also a Partner of Clifford Roberts Chartered Accountants, who provided accountancy services to the Charity. Included within accountancy costs are amounts totalling £4,440 paid to Clifford Roberts in respect of accountancy services conducted at arm's length by other members of the firm. At the year-end there was an unsecured credit balance outstanding of £Nil (2022: £Nil).

23. AUDITOR LIABILITY LIMITATION AGREEMENT

The company has entered into a liability limitation agreement with its auditors and this agreement was approved by resolution dated 15th December, 2023.

Liability is limited to the lesser of 20 times the audit fee or £96,000. In accordance with section 537 of Companies Act 2006, the effect of the liability limitation agreement is to limit the auditor's liability to less than such amount as is fair and reasonable, as determined by that section, the agreement shall have the effect as if it limited the liability to such amount as is fair and reasonable, as so determined.

The agreement limits the liability owed to the company by the auditors in respect of any negligence, default, breach of duty or beach of trust occurring in the course of the audit of the financial statements of the company for the year ended 31st July 2023.

The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.

24. POST BALANCE SHEET EVENTS

There are no events after the period end that requires reporting on.

25. FINANCIAL RISK MANAGEMENT

The company has some exposure to credit, liquidity and cashflow interest rate risks, these risks are limited by the company's financial management policies and practices described below.

Credit risk
The company offer credit terms to its customers which allows payment of the debt at a future specified time. The company mitigates this risk by maintaining strong customer relationships and regular analysis its sales ledger for troubled customers.

Liquidity risk
The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves and banking facilities. Currently based on the cash reserves this is not deemed a significant risk.

Interest rate risk
The company is exposed to interest rate risk through the impact of rate changes on interest bearing borrowings. Apart from the Long-term loan the company does not have significant interest-bearing assets and liabilities. Fixed rate terms are agreed when considered favourable to mitigate risk.

The company holds no derivative financial instruments at the year end.