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Registered number: 14027113
Charity number: 1199008











WEMMS EDUCATION UNLIMITED LIMITED
(A Company Limited by Guarantee)










TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 AUGUST 2023

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 

CONTENTS



Page
Reference and Administrative Details of the Charity, its Trustees and Advisers
1
Trustees' Report
2 - 5
Independent Auditors' Report on the Financial Statements
6 - 9
Statement of Financial Activities
10
Balance Sheet
11 - 12
Statement of Cash Flows
13
Notes to the Financial Statements
14 - 24

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS
FOR THE PERIOD ENDED 31 AUGUST 2023


Trustees
Fiona Bulmer (appointed 16 October 2023, resigned 14 October 2024)
Sally Curtis (appointed 5 April 2022, resigned 14 October 2024)
Alan Dean (appointed 5 April 2022, resigned 19 March 2023)
Ian Harvey (appointed 5 April 2022, resigned 4 March 2024)
Rosemary Wemms (appointed 5 April 2022, resigned 16 February 2024)
Megan Booth (appointed 16 September 2024)
Alison Miller (appointed 14 October 2024)
Michael Roberts (appointed 14 October 2024, resigned 11 February 2025)
Michele Coleman (appointed 14 October 2024)
Lisa MacPherson (appointed 14 October 2024)

Company registered number
14027113

Charity registered number
1199008

Registered office
Woodstock House
Woodstock Lane North
Long Ditton
Surbiton
Surrey
KT6 5HN

Key management personnel
Principal (Joy Wemms)
 Vice Principal (Gail Lowe)
 Vice Principal (Sharon Bagley)

Independent auditors
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

Page 1

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 
  
TRUSTEES' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the period 5 April 2022 to 31 August 2023The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). 
 

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
 

Objectives and activities
 

a. Policies and objectives
 


 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
 

b. Activities undertaken to achieve objectives
 

Our main activity is operating a specialist school, Wemms Education Centre.
 

c. Main activities undertaken to further the Charity's purposes for the public benefit
 

The purpose of the Charity is to operate a specialist school to benefit children and young people who require an alternative learning environment where personal and academic development have equal importance.
 

Achievements and performance
 

a. Main achievements of the Charity
 

Through operating the school, the charity benefits its students, all of whom have special educational needs and are educated at our school as it has been named in their EHCP.
September 2022 saw the school move to a new, bigger site. This was a big change for students and staff alike. 
 

Page 2

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 
Achievements and performance (continued)

b. Review of activities
 

The school is a company limited by guarantee and operates as a charity. It was set up with four trustees appointed on 5 April 2022. The school previously operated from a site in Leatherhead.  As of 1 September 2022, it moved to Woodstock House and the charity took over the governance of the school. We understand that the plan was to grow the number of students that attended the school.
 
In March 2023, one trustee resigned from the board.
In May 2023 an Ofsted inspection found the school to be inadequate in the areas of behaviour and attitudes, personal development and leadership and management and that the arrangements of safeguarding were not effective. This resulted in a suspension of placements at the school by Local Authorities. This meant that the income to the school was not able to grow as predicted.
In October 2023 an additional trustee was appointed to the board.
There was an Ofsted Monitoring visit in February 2024 which recognised that there was now a 'vigilant and transparent safeguarding culture' but that the standards relating to leadership and management remain unmet.
A further two original trustees resigned in February and March 2024 respectively, leaving two trustees on the board.
A second Ofsted Monitoring visit took place in September 2024 which found that leadership and management standards remained unmet with the need for additional trustees with a more knowledgeable skill set and greater transparency.
On 16 September 2024 a new trustee was appointed and on 14 October 2024, a further four new trustees were appointed and the existing two trustees resigned. There was a limited and verbal handover process. Since then, there have been further appointments to the board and recruitment remains ongoing. The new board has a range of experience including education, finance, governance and human resources.
Upon forming, the new board set out to understand the challenges facing the charity. It was quickly established that there were significant shortcomings with historic financial administrative record keeping and systems.
At the time of writing this report, there are no trustees on the board who were present prior to 16 September 2024, therefore, the report is written to ensure the facts, as far as they are available, are represented.
 

c. Investment policy and performance
 

Given the level of our reserves, future liquidity requirements and uncertainty in the external environment, the Trustees consider that cash based investments with UK banks remain the most appropriate home for the charity’s funds.  These arrangements are reviewed regularly as part of our good stewardship of the charity’s resources.
 

Financial review
 

a. Going concern
 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies
 

b. Reserves policy
 

The aim is to increase the reserves of the charity to a solvent position.
 

Page 3

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 
Financial review (continued)

c. Principal funding
 

The charity's principal source of funds is the fees paid by Local Authorities by virtue of the school being named in each child or young person’s Education Health and Care Plan.
 

Structure, governance and management
 

a. Constitution
 

WEMMS Education Unlimited Limited is registered as a charitable company limited by guarantee and was set up  under the Memorandum and Articles of Association.
 

b. Methods of appointment or election of Trustees
 

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the charitable company's Memorandum and Articles of Association.
 

c. Organisational structure and decision-making policies
 

The Trustees are responsible for establishing WEMMS Education Unlimited Limited strategy and setting its overall direction.  Responsibility for the day to day management of the charity is delegated, through the Chair, to The Principal and through them to the rest of the staff team. 
 

d. Financial risk management
 

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
 

Plans for future periods
 

Mission, vision, ethos
Work is underway to ensure that the school is clear on its mission and has the vision to get there and the ethos to maintain it. 
Stakeholders
The new trustees have established positive relationships with key stakeholders, understanding that this is pivotal for the successful ongoing of the charity and school. 
Student numbers
A number of new students have been placed at the school and consultations from local authorities are ongoing with the aim of growing student numbers. 
Processes
Work has been done to improve the complaints, administrative and safeguarding processes.  
Staffing
A new leadership structure has been introduced to help ensure effective management of the school.
A trustee recruitment process has been created and is being followed.
Staff performance management processes have been put into place and work is being undertaken on human resources matters.
 

Page 4

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
 
Members' liability
 

The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.
 

Disclosure of information to auditors
 

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
 

Auditors
 

The auditorsShaw Gibbs (Audit) Limitedhave indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
 

 

Approved by order of the members of the board of Trustees and signed on their behalf by:


Megan Booth
Trustee

Date: 10 April 2025

Page 5

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEMMS EDUCATION UNLIMITED LIMITED
 

Disclaimer of opinion


We were engaged to audit the financial statements of WEMMS Education Unlimited Limited (the 'charity') for the period ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


We do not express an opinion on the accompanying financial statements of the charitable company. Because of the significance of the matters described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.


Basis for disclaimer of opinion


The charitable company did not maintain proper accounting records during the period and has been unable to fully recreate these. Supporting documents for several purchases and expenses were not retained and we have been unable to satisfy ourselves by alternative means concerning the expenditure recorded in the financial statements. The charitable company does not have copies of funding agreements for income and has been unable to obtain copies of these documents. 
We have been unable to satisfy ourselves by alternative means concerning the income recorded in the financial statements. The charitable company did not operate a separate bank account during the period and payments and receipts were made and received through a bank account controlled and in the name of a former Trustee. We have not had full access to those bank records and would not be able to identify transactions relating to the charitable company or the nature of those transactions. As the charitable company has not kept proper accounting records and lacks supporting documents, we have been unable to identify whether any funds should be recorded as restricted or designated funds. Without full income and bank receipt records, we have been unable to satisfy ourselves that debtors are complete. 
A fixed asset register had not been maintained and it has not been possible to recreate a register as it is not clear which assets on the site belong to the charitable company or which expenditure may have been for fixed assets. There is no formal agreement confirming the position when the charitable company was formed and took over the business and some assets of the previous unincorporated entity that was operating a school.  Without full expenditure and bank payment records we have been unable to satisfy ourselves that creditors are complete.  
The charitable company did not have any registered employees during the period.  All individuals working at the school were paid on a self employed basis.  We have not been provided with any records or details of advice given to the charitable company to determine whether this basis was correct.   It appears that the charitable company has not complied with some laws and regulations during the year, but we have been unable to verify the completeness and effect of any non-compliance. 
We consider that there has not been effective governance in the financial period and that the charitable company did not have policies and procedures in place as required. As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect of the accounting figures for the period.




Page 6

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEMMS EDUCATION UNLIMITED LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:

the information given in the Trustees' Report for the financial period for which the financial statements are prepared is consistent with the financial statements.
the Trustees' Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception


Notwithstanding our disclaimer of an opinion on the financial statements, in the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Trustees' Report.
Arising from the limitation of our work referred to above:
 
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; 
we were unable to determine whether the financial statements are in agreement with the accounting records and returns; and
we were unable to determine whether adequate accounting records have been kept.


We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

returns adequate for our audit have not been received from branches not visited by us; or
certain disclosures of Trustees' remuneration specified by law are not made; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.


Responsibilities of trustees


As explained more fully in the Trustees' Responsibilities Statement, 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.
 

Page 7

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEMMS EDUCATION UNLIMITED LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements


Our responsibility is to conduct an audit of the charitable company's financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.
However, because of the matters described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
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.

Other matters
 

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 gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the Charities Act 2011 and UK tax legislation. 
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 
Due to the lack of proper accounting records, the Trustees appointed in the period no longer being at the charity when the audit was carried out and the potential non-compliance with law and regulations as referred to in the basis for disclaimer of opinion paragraph,  we are unable to reach a conclusion in relation to the occurrence in any key audit matters relating to irregularities, including fraud. 
 


Page 8

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEMMS EDUCATION UNLIMITED LIMITED (CONTINUED)


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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.







Mark Dickinson FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

29 April 2025
Page 9

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)

 
 
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE PERIOD ENDED 31 AUGUST 2023


Unrestricted funds
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
Note
        £
        £
Income from:





Donations and legacies

3

3,854

3,854

Charitable activities

4

4,449,826

4,449,826

Other trading activities

5

9,340

9,340

Other income

6

975,000

975,000

Total income
5,438,020
5,438,020
Expenditure on:





Charitable activities

7

6,265,661

6,265,661

Total expenditure
6,265,661
6,265,661

Net movement in funds
  
(827,641)
(827,641)

Reconciliation of funds:

  



Net movement in funds

  

(827,641)

(827,641)

Total funds carried forward
  
(827,641)
(827,641)

The Statement of Financial Activities includes all gains and losses recognised in the period.

The notes on pages 14 to 24 form part of these financial statements.

Page 10

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
REGISTERED NUMBER: 14027113

 
 
BALANCE SHEET
AS AT 31 AUGUST 2023


2023
Note
£

Fixed assets
  

Tangible assets
 11 
201,202

Current assets
  

Debtors
 12 
660,930

  
660,930

Creditors: amounts falling due within one year
 13 
(1,209,422)

Net current liabilities 
  
 
 
(548,492)

Total assets less current liabilities
  
(347,290)

Creditors: amounts falling due after more than one year
 14 
(480,351)

Net liabilities excluding pension asset 
  
(827,641)

Total net assets 
  
(827,641)


Charity funds
  

Restricted funds
 15 
-

Unrestricted funds
 15 
(827,641)

Total funds
  
(827,641)

Page 11

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)
REGISTERED NUMBER: 14027113

 
 
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2023

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:






Megan Booth
Trustee

Date: 10 April 2025


The notes on pages 14 to 24 form part of these financial statements.

Page 12

 
WEMMS EDUCATION UNLIMITED LIMITED
 
(A Company Limited by Guarantee)

 
 
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023

Period ended
31 August
2023
£

Cash flows from operating activities

Net cash used in operating activities

250,340

Cash flows from investing activities

Purchase of tangible fixed assets
(250,340)

Net cash used in investing activities

(250,340)

Cash flows from financing activities

Net cash provided by financing activities

-

Change in cash and cash equivalents in the period
 
-

Cash and cash equivalents at the end of the period
-

The notes on pages 14 to 24 form part of these financial statements

Page 13

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

1.


General information

WEMMS Education Unlimited Limited (registered number 14027113) is a private company limited by guarantee, incorporated in England and Wales. The registered office is Woodstock House, Woodstock Lane North, Long Ditton, Surbiton, KT6 5HN.
The Members of the Company are the Trustees named on page 1. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per Member of the Company.


2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

WEMMS Education Unlimited Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The presentation currency of the Company is GBP. The financial statements are rounded to the nearest £.

Page 14

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

  
2.2

Going concern

Introduction
This Going Concern Statement has been prepared by the trustees of Wemms Education Unlimited Limited, a charity-based Independent Special Educational Needs (SEN) school. The purpose of this document is to provide an assessment of the school’s ability to continue as a going concern in light of the current financial situation, specifically the presence of a deficit. This statement has been prepared in compliance with applicable regulations and accounting standards.
Background of the Charity
Wemms Education is a registered charity that provides specialised educational services to children with special educational needs. The school is committed to delivering a high standard of education, care, and support to our students. The funding is provided by government funding and a small amount of income generated from leasing the facilities out of school hours.
Financial Situation
As of the date of this report, the school is operating with a financial deficit of £827,641, which has arisen due to several factors, including:
• Reduced funding due to the non-placing of students from local authorities
• Increased operational costs, due to over staffing
• Lack of audit trail for transactions in 2022-23
Despite the current deficit, the management team remains committed to the mission of the school and continues to actively pursue strategies to address the financial challenges.
Going Concern Assessment
Under the going concern assumption, the management believes that the school will continue to operate and continue the work that is underway to negotiate terms of payment for any outstanding financial obligations. However, due to the current deficit, the following factors have been considered:
1. Management Action Plan:
o Cost-Cutting Measures: The school has implemented a series of cost-cutting measures to reduce expenses, including revising non-essential expenditure and optimising resource usage.
o Grant Applications: The school is actively applying for additional grants and government funding to help bridge the financial gap.
o Financial Restructuring: A review of the school’s financial structure is underway, including exploring opportunities to refinance debts or restructure payment terms.
2. Support from Trustees:
The school’s Board of Trustees is committed to supporting the school’s operations and ensuring its financial stability. Additionally, the school’s key stakeholders, including staff, parents, and external partners, are being kept informed and involved in the ongoing efforts to ensure the school’s future.
3. Forecast and Cash Flow Projections:
Financial forecasts, and cash flow projections have been prepared to ensure that the school has sufficient liquidity to meet its obligations over the next 12 months. These forecasts consider the proactive discussions with the landlord and other creditors, building our relationship with the local authorities to secure pupil numbers, to secure a positive Ofsted report, as well as the anticipated costs of operation. While the school is currently operating at a deficit, the projections indicate that, with the implementation of a management action plan, the deficit will be reduced, and the school will
Page 15

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

2.2

Going concern (continued)

be able to continue its operations.
Conclusion
Based on the actions being taken and the financial forecasts, the Trustees and management of Wemms Education Unlimited Limited believe that the school will be able to continue as a going concern. While the school is facing a temporary deficit, the management is confident that the necessary measures will be effective in stabilising the financial situation and ensuring the continuation of services to our students.
The Trustees continue to monitor the financial position closely and will adjust the strategy as necessary to ensure the long-term viability of the school.

  
2.3

Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

  
2.4

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

 
2.5

Tangible fixed assets and depreciation

Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 16

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

2.5

Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
straight line

  
2.6

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

  
2.7

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.


2.8

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

  
2.9

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

  
2.10

Fund accounting

General funds are unrestricted funds which 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.

Page 17

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

3.

Income from donations and legacies



Unrestricted funds
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £
 


Donations

3,854

3,854



4.

Income from charitable activities



Unrestricted funds
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £



Income from charitable activities - Education

4,449,826

4,449,826



5.

Income from other trading activities

Income from fundraising events



Unrestricted funds
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £



Lettings income

9,340

9,340


Page 18

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

6.

Other incoming resources



Unrestricted funds
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £



Landlord capital contribution

975,000

975,000



7.

Analysis of expenditure on charitable activities


Summary by fund type



Unrestricted funds
Period ended
31 August
2023
Total
Period ended
31 August
2023
        £
        £



Education

6,265,661

6,265,661


Summary by expenditure type




Depreciation
Period ended
31 August
2023
Other costs
Period ended
31 August
2023
Total
Period ended
31 August
2023
        £
        £
        £




Education

49,138

6,216,523

6,265,661


Page 19

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

8.

Analysis of expenditure by activities




Activities undertaken directly
Period ended
31 August
2023
Support costs
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £
        £




Education

4,175,129

2,090,532

6,265,661



Analysis of direct costs



Education
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £



Depreciation

49,138

49,138

Teaching, school and development costs

3,813,110

3,813,110

Governance costs

312,881

312,881



4,175,129
4,175,129

Page 20

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

8.Analysis of expenditure by activities (continued)

Analysis of support costs



Education
Period ended
31 August
2023
Total
funds
Period ended
31 August
2023
        £
        £



Building repair and maintenance

213,364

213,364

Premises costs

1,455,840

1,455,840

Other costs

245,590

245,590

Unidentified expenses

175,738

175,738



2,090,532
2,090,532


9.

Auditors' remuneration

Period ended
31 August
2023
£

Fees payable to the Charity's auditor for the audit of the Charity's annual accounts
18,000

Fees payable to the Charity's auditor in respect of:

All non-audit services not included above
6,000


10.


Trustees' remuneration and expenses

During the period, no Trustees received any remuneration or other benefits.

During the period ended 31 August 2023, no Trustee expenses have been incurred.

Page 21

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

11.


Tangible fixed assets




Plant and machinery
Motor vehicles
Total

£
£
£


Cost or valuation

Additions
225,940
24,400
250,340


At 31 August 2023

225,940
24,400
250,340


Depreciation

Charge for the period
44,055
5,083
49,138


At 31 August 2023

44,055
5,083
49,138


Net book value


At 31 August 2023
181,885
19,317
201,202


12.



Debtors


2023
£

Due after more than one year

Other debtors
550,000

550,000

Due within one year

Other debtors
26,646

Prepayments and accrued income
84,284

660,930

Page 22

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

13.



Creditors: Amounts falling due within one year


2023
£


Trade creditors
605,327

Other creditors
550,000

Accruals and deferred income
54,095

1,209,422


14.



Creditors: Amounts falling due after more than one year


2023
£


Accruals and deferred income
480,351


15.

Statement of funds


Statement of funds - current period

Income
£
Expenditure
£
Balance at 31 August 2023
£

Unrestricted funds




General funds

5,438,020

(6,265,661)

(827,641)
 


16.

Summary of funds


Summary of funds - current period

Income
£
 
Expenditure
£
 
Balance at 31 August 2023
£
 
General funds

5,438,020

(6,265,661)

(827,641)
 

Page 23

 
WEMMS EDUCATION UNLIMITED LIMITED

(A Company Limited by Guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

17.


Operating lease commitments

At 31 August 2023 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

2023
£


Not later than 1 year
1,100,000

Later than 1 year and not later than 5 years
1,100,000

Later than 5 years
23,946,849

26,146,849


Page 24