| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| FOR |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| FOR |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| Page |
| Report of the Trustees | 1 | to | 7 |
| Report of the Independent Auditors | 8 | to | 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 | to | 26 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 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 August 2024. 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 |
| A) | The advancement of education on the basis of Christian principles in the county of Hampshire and elsewhere including (but not by way of limitation) the provision of such education in any educational establishment for the general education of children or adults on the basis of such Christian principles as the trustees may from time to time think fit; |
| B) | The advancement of the Christian faith in accordance with the doctrines set out in the schedule to the articles and the worship of God in the county of Hampshire and elsewhere as the trustees may from time to time think fit including (but not by way of limitation) the preaching and proclamation of the Christian gospel and the teaching of Christian doctrine and principles and other such purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity. |
| C) | The relief of persons who are in conditions of hardship or distress or who are aged or sick in the county of Hampshire and elsewhere as the trustees may from time to time think fit. |
| Significant activities |
| The Trust runs The King's School which has a primary department and senior department located on one site. The school currently has 230 pupils, 72 at primary and 158 at senior. |
| Public benefit |
| The King's School provides benefit to the public within Hampshire by providing an excellent education based on Christian principles for children aged 4 to 16. Fees are intended to be affordable for families on average incomes and are deliberately kept below the normal rates for similar independent schools. In addition, the school offers bursary assistance to families on low income (to the value of £125k in the year ending 31 August 2024). |
| Children are drawn from families across the full range of Christian denominations as well as a proportion from families with no church connections. There are no academic selection criteria and whenever possible the school will accommodate pupils with learning difficulties and physical disabilities. There has been an increase in educational support for children with additional needs and improvements to the site for disabled access. |
| Volunteers |
| The school has voluntary help from parents and others in a wide range of activities, including governorship, support with events and the general maintenance of facilities. |
| Public benefit |
| The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The trustees refer to public benefit throughout this report. |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| ACHIEVEMENT AND PERFORMANCE |
| Charitable activities |
| In February 2023, King’s School underwent its first full inspection by the Independent Schools Inspectorate (ISI), comprising both a Focused Compliance and Educational Quality Inspection. The school met all regulatory requirements, with ISI awarding a judgement of Good for pupils’ achievement, including academic development, and Excellent for pupils’ personal development. |
| Academic outcomes continue to be strong. For the year ended 31 August 2024, 97% of pupils achieved five or more standard pass grades at GCSE, including English and Mathematics. Additionally, 37% of all grades awarded were at Grades 7-9, a particularly impressive outcome given the national decline in top grades and the school’s non-selective admissions policy. These results reflect the school’s commitment to academic excellence and inclusive support across a broad ability range. |
| Charitable Engagement |
| King’s School is actively involved in charitable giving at both local and international levels. The school community supports several charities through regular fundraising initiatives. Pupils play a central role in these efforts, participating in events and campaigns to raise funds and awareness—fostering values of compassion, service, and global citizenship. |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| FINANCIAL REVIEW |
| Financial Review |
| The trust's income in the year ending 31 August 2024 was £1.76 million in comparison to £1.60 million the previous year. The majority of the income was from school fees and extracurricular activities, and the remainder was from fundraising activities, donations and the gift aid claimed on these. |
| Total expenditure for the year ending 31 August 2024 was £1.77 million, compared with the £1.62 million the previous year. This resulted in a shortfall of £33k. |
| The majority of expenditure was on the costs of charitable activities which are divided between: |
| (A) | The direct costs of education (e.g. staffing, resources, activities) which amounted to £1,023k, a £151k reduction from the previous year. The largest component was staff costs of £931k which was £4k les than the previous year. The overall decline was due to less bursaries not being paid in 2024 with a decline of £125k |
| (B) | Support costs (e.g. support staff wages, general overheads) increased to £745k (from £440k). |
| A number of Key Performance Indicators are being used to plan and improve financial performance. One of these is the ratio of staff costs to net fee income for which the target is 60-65%. The ratio in the year ending August 2024 was 75%. |
| During the year the advance fees balance increased to £1,622k and the deposits balance decreased to £170k. Advance fees are not positively sought from parents as the school does not wish to be reliant on them, however, some parents who have the money to pay in advance are then able to have peace of mind that their child's fees are paid for a defined period. |
| Reserves policy |
| The Trust has most of its reserves in the buildings (Lakesmere House and the Homelodge building) which were valued at £2.1m in February 2020. |
| It is the aim of the Trustees to build up reserves to a level equal to three month's regular expenditure (monthly expenditure is currently around £125k). This aim has been met this year as current assets plus bank loan payments due within one year and deposits stand at £506k (August 2024). |
| The school plans to replace the existing temporary buildings with a permanent structure within the next two years. The school has planning permission and a preferred builder, is fundraising and is in discussions regarding finance. The Trustees will review the policy in light of project needs. |
| Principal funding sources |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| Operational costs are met primarily from school fees which are set at an affordable rate for the target market. Additional funding comes from donations. |
| The capital projects are now funded from cash reserves which are backed by a bank mortgage and advance fee payments. |
| Future Plans |
| The focus for the future will be to continue to strive for excellence in educational provision and to market the school effectively so that all 305 places are taken. Maximum pupil numbers are 15 per year in Reception, Years 1, 2 and 3; and 20 each in Years 4-6 (total primary 120 pupils - currently 76). In senior we can have 35 per year in Years 7-9 and 40 per year in Years 10 & 11 (total senior 185 - currently 157). Longer term aims include a purpose-built primary unit to replace some temporary buildings on the school site which is expected to increase primary capacity to 140. |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| Governing document |
| The articles of association allows for the members of the charity to appoint new trustees and to vary the number of trustees (minimum of three). Any person appointed as a trustee must fully accept the doctrines set out in the articles of association. |
| Recruitment and appointment of new trustees |
| The articles of association allows for the members of the charity to appoint new trustees and to vary the number of trustees (minimum of three). Any person appointed as a trustee must fully accept the doctrines set out in the articles of association. |
| Organisational structure |
| Governance and management of The King's School is undertaken by the Senior Leadership Team and the Governance Board. The Leadership Team is responsible for day to day operations. Their job is to deliver quality Christian education within the necessary legal and regulatory requirements. The Leadership Team is accountable to the Governance Board. The Governance Board comprises both Trustees and Governors and their responsibility is supporting and empowering the Leadership Team to carry our its responsibilities effectively. |
| Induction and training of new trustees |
| Induction and training of new trustees is carried out by meetings with other trustees and key people, review of key documents and involvement in the life of the school. |
| Pay and Remuneration |
| Salary levels are set annually. Key management personnel are paid less than would be expected within the state sector at rates of between 70 -75% of salaries based on DfE figures. The school has a desire to increase salaries where possible such that all staff are paid more in line with those in the state system. However, this will be a gradual process and not something that can be achieved currently. |
| Wider network |
| The school is a member of the Independent Schools Association (ISA). It is also a member of the Christian Schools Trust (CST). |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| 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. |
| The main risks identified by the Trustees are set out below. These are not all new risks to the trust and have been successfully managed in previous years by exercising care in budgeting and decision-making. |
| The main risks at present are connected with the external economy. |
| 1) | Pupil numbers have remained relatively static with the year ending with 229 pupils on role (September 2023). Current pupil numbers are 230 (March 2024). Improving marketing continues to be a priority to draw new pupils to the school. The majority of new pupils come from within the larger church community and by word of mouth. |
| 2) | The proportion of pupils requiring bursaries has reduced with improved processes for awarding and reviewing bursaries. However, this still represents a risk to the school's income. |
| 3) | External factors have increased the risk of existing parents defaulting on fee payments. This risk has been managed well by continuing to ensure that a member of staff is given time to keep abreast with credit control. |
| 4) | The deterioration of the primary accommodation is a serious cause of concern. The school is actively pursuing replacement accommodation to resolve this. |
| 5) | Future rises in interest payments on the trust's borrowing are also a potential risk. |
| 6) | All of the above give rise to a risk of cash flow problems. Alongside prudent budgeting and regular monitoring, we have the ability to improve cash flow through collecting advance fee payments. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| S F Kinchin |
| C Caws |
| M Parker (resigned 31 August 2024) |
| A Johnston |
| C Dendy |
| S Froud |
| J Hatcher (appointed 1 September 2024) |
| Secretary |
| A Scurr |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Auditors |
| Statutory Auditors |
| Station House |
| North Street |
| Havant |
| Hampshire |
| PO9 1QU |
| Bankers |
| Barclays Bank |
| Portsmouth City Branch |
| Portsdown Group |
| PO Box 6 |
| Portsmouth |
| Hampshire |
| PO6 7DB |
| COMMENCEMENT OF ACTIVITIES |
| The charity which has been trading since 1995, was incorporated as a Company limited by guarantee, in August 2004. Dormant company accounts were prepared for the year to 31 August 2005 and the running of the school transferred to the new charitable company on 1 September 2005. |
| STATEMENT OF TRUSTEES' RESPONSIBILITIES |
| The trustees (who are also the directors of Hampshire Christian Education Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom 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 those financial statements, the trustees are required to |
| - | select suitable accounting policies and then apply them consistently; |
| - | observe the methods and principles in the Charity SORP; |
| - | make judgements and estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
| The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 auditors are 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 auditors are aware of that information. |
| AUDITORS |
| The auditors, MC Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| Approved by order of the board of trustees on |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| Opinion |
| We have audited the financial statements of Hampshire Christian Education Trust (the 'charitable company') for the year ended 31 August 2024 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 August 2024 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 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| 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; or |
| - | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
| 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 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern. |
| Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation. |
| We set financial statement materiality level based on the level of income. As a not for profit organisation raising income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. |
| Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested. |
| Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override. |
| The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation. |
| Management assessed there is no going concern risk. The audit undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management. |
| 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 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| 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. |
| for and on behalf of |
| Statutory Auditors |
| North Street |
| Havant |
| Hampshire |
| PO9 1QU |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| STATEMENT OF FINANCIAL ACTIVITIES |
| (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2024 | 2023 |
| Unrestricted | Restricted | Total | Total |
| funds | funds | funds | funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies | 2 |
| Charitable activities | 5 |
| Other trading activities | 3 |
| Investment income | 4 |
| Total |
| EXPENDITURE ON |
| Raising funds | 6 |
| Charitable activities | 7 |
| Total |
| NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward |
| TOTAL FUNDS CARRIED FORWARD | 2,466,699 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST (REGISTERED NUMBER: 05212585) |
| BALANCE SHEET |
| 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 15 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 17 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
| NET ASSETS |
| FUNDS | 23 |
| Unrestricted funds | 2,466,699 |
| TOTAL FUNDS | 2,466,699 |
| These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
| The financial statements were approved by the Board of Trustees and authorised for issue on |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 265,962 | (201,388 | ) |
| Interest paid | (2,582 | ) | (18,282 | ) |
| Finance costs paid | (12,135 | ) | (11,914 | ) |
| Net cash provided by/(used in) operating activities | 251,245 | (231,584 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (11,888 | ) | (172,899 | ) |
| Interest received | 6,059 | 3,682 |
| Finance interest income | 94,197 | 8,631 |
| Net cash provided by/(used in) investing activities | 88,368 | (160,586 | ) |
| Change in cash and cash equivalents in the reporting period |
339,613 |
(392,170 |
) |
| Cash and cash equivalents at the beginning of the reporting period |
634,611 |
1,026,781 |
| Cash and cash equivalents at the end of the reporting period |
974,224 |
634,611 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 1. | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES |
| 2024 | 2023 |
| £ | £ |
| Net expenditure for the reporting period (as per the Statement of Financial Activities) |
(32,985 |
) |
(29,264 |
) |
| Adjustments for: |
| Depreciation charges | 110,650 | 73,468 |
| Interest received | (6,059 | ) | (3,682 | ) |
| Interest paid | 2,582 | 18,282 |
| Finance costs | 12,135 | 11,914 |
| Finance interest income | (94,197 | ) | (8,631 | ) |
| Increase in debtors | (1,039,738 | ) | (100,877 | ) |
| Increase/(decrease) in creditors | 1,313,574 | (162,598 | ) |
| Net cash provided by/(used in) operations | 265,962 | (201,388 | ) |
| 2. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.9.23 | Cash flow | At 31.8.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 634,611 | 339,613 | 974,224 |
| 634,611 | 339,613 | 974,224 |
| Debt |
| Debts falling due within 1 year | (50,703 | ) | 14,327 | (36,376 | ) |
| Debts falling due after 1 year | (297,978 | ) | 36,550 | (261,428 | ) |
| (348,681 | ) | 50,877 | (297,804 | ) |
| Total | 285,930 | 390,490 | 676,420 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 1. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. |
| Going concern |
| The trustee directors consider that there are no material uncertainties regarding the charitable company's ability to continue as a going concern. |
| 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 | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| Individual fixed assets costing £500 or more are capitalised at cost, with the exception of computer equipment which is capitalised if the individual cost is £250 or more. |
| Taxation |
| The charity is exempt from corporation 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. |
| Leasing commitments |
| Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 1. | ACCOUNTING POLICIES - continued |
| 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 the Statement of Financial Activities in the period to which they relate. |
| The charitable company contributed £18,032 (2023: £16,387) |
| Financial instruments |
| The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable investments in stocks and shares. The measurement basis used for these financial instruments is detailed below. |
| Debtors |
| Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. |
| Cash at bank & in hand |
| Cash at bank and in hand includes cash held on deposit or in a current account. |
| Creditors and provisions |
| Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. |
| 2. | DONATIONS AND LEGACIES |
| 2024 | 2023 |
| £ | £ |
| Donations |
| 3. | OTHER TRADING ACTIVITIES |
| 2024 | 2023 |
| £ | £ |
| Fundraising events |
| 4. | INVESTMENT INCOME |
| 2024 | 2023 |
| £ | £ |
| Deposit account interest |
| Finance interest income | 93,698 | 8,631 |
| All investment income is derived from assets held in the United Kingdom. |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 5. | INCOME FROM CHARITABLE ACTIVITIES |
| 2024 | 2023 |
| Activity | £ | £ |
| School fees and bursaries | Advancement of education | 1,386,431 | 1,492,539 |
| School trips and sales | Advancement of education | 70,704 | 76,679 |
| Rental income | Advancement of education | 3,808 | 1,268 |
| Sundry income | Advancement of education | 152,363 | 950 |
| 6. | RAISING FUNDS |
| Raising donations and legacies |
| 2024 | 2023 |
| £ | £ |
| Finance cost | 24,582 | 11,914 |
| 7. | CHARITABLE ACTIVITIES COSTS |
| Direct | Support |
| Costs (see | costs (see |
| note 8) | note 9) | Totals |
| £ | £ | £ |
| Advancement of education | 1,023,876 | 750,459 | 1,774,335 |
| 8. | DIRECT COSTS OF CHARITABLE ACTIVITIES |
| 2024 | 2023 |
| £ | £ |
| Staff costs | 931,464 | 934,579 |
| Educational resources | 33,341 | 32,131 |
| Trips, camps and events | 24,999 | 55,577 |
| Training | 8,945 | 2,977 |
| DBS and licences | 6,802 | 12,231 |
| Fundraising costs | 18,325 | 13,064 |
| Bursaries | - | 124,774 |
| 1,023,876 | 1,175,333 |
| 9. | SUPPORT COSTS |
| Governance |
| Management | costs | Totals |
| £ | £ | £ |
| Advancement of education | 745,043 | 5,416 | 750,459 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 9. | SUPPORT COSTS - continued |
| Support costs, included in the above, are as follows: |
| Management |
| 2024 | 2023 |
| Advancement |
| of | Total |
| education | activities |
| £ | £ |
| Wages | 173,958 | 95,640 |
| Hire of plant and machinery | 36,150 | 17,674 |
| Rates and water | 4,395 | 17,727 |
| Insurance | 23,154 | 22,153 |
| Light and heat | 57,958 | 2,870 |
| Minibus and car park expenses | 10,384 | 10,522 |
| Legal and professional fees | 20,934 | 9,366 |
| Repairs and maintenance | 198,944 | 106,173 |
| Stationery, postage and phone | 34,152 | 29,278 |
| Sundry expenses | 71,751 | 36,616 |
| Donations | 30 | 582 |
| Depreciation of tangible assets | 110,651 | 73,468 |
| Bank interest | 2,582 | 1,561 |
| Mortgage interest | - | 16,721 |
| 745,043 | 440,351 |
| Governance costs |
| 2024 | 2023 |
| Advancement |
| of | Total |
| education | activities |
| £ | £ |
| Auditors' remuneration | 5,416 | 5,106 |
| 10. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Auditors' remuneration | 5,416 | 5,106 |
| Depreciation - owned assets |
| Hire of plant and machinery | 36,150 | 17,674 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 11. | TRUSTEES' REMUNERATION AND BENEFITS |
| There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023. |
| Trustees' expenses |
| During the year no trustees (2023: none) were reimbursed for out of pocket expenses. |
| 12. | STAFF COSTS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| 1,105,422 | 1,030,219 |
| The average monthly number of employees during the year was as follows: |
| 2024 | 2023 |
| Advancement of Education | 53 | 54 |
| Support staff | 9 | 9 |
| Key management personnel |
| The key management personnel of the charitable company comprise, the Head Teacher, the Deputy Head Teacher, the Business Development Manager, the Head of Options and the Head of English. The total employee benefits of the key management personnel of the charitable company were £195,953 (2023: £95,640). This does not include remuneration for trustees, all of which is reported as per note 11. |
| 13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
| Unrestricted | Restricted | Total |
| funds | funds | funds |
| £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Charitable activities |
| Other trading activities |
| Investment income |
| Total |
| EXPENDITURE ON |
| Raising funds |
| Charitable activities |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
| Unrestricted | Restricted | Total |
| funds | funds | funds |
| £ | £ | £ |
| Total |
| NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
| Transfers between funds | 112,172 | (112,172 | ) | - |
| Net movement in funds | ( |
) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | 2,351,053 | 144,910 |
| TOTAL FUNDS CARRIED FORWARD | 2,466,699 | - | 2,466,699 |
| 14. | INTANGIBLE FIXED ASSETS |
| Website |
| £ |
| COST |
| At 1 September 2023 and 31 August 2024 |
| AMORTISATION |
| At 1 September 2023 and 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| 15. | TANGIBLE FIXED ASSETS |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST |
| At 1 September 2023 |
| Additions |
| At 31 August 2024 |
| DEPRECIATION |
| At 1 September 2023 |
| Charge for year |
| At 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 15. | TANGIBLE FIXED ASSETS - continued |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 September 2023 |
| Additions |
| At 31 August 2024 |
| DEPRECIATION |
| At 1 September 2023 |
| Charge for year |
| At 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| Cost or valuation of freehold property at 31 August 2024 is represented by: |
| £ |
| Valuation in 2010 | 1,627,715 |
| Valuation in 2015 | 272,285 |
| Valuation in 2020 | 200,000 |
| Additions | 42,333 |
| 2,142,333 |
| The Trust's other tangible fixed assets are included at cost. |
| If freehold property had not been revalued it would have been included at the following historical cost: |
| 2024 | 2023 |
| £ | £ |
| Cost | 2,049,402 | 2,049,402 |
| Aggregate depreciation | 908,985 | 867,997 |
| Freehold property was revalued on an open market basis on 31 August 2021 by Vail Williams LLP. |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Prepayments |
| Trade debtors are higher because the school raised invoices in June 2024. |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 19) |
| Fees in advance |
| Trade creditors |
| Social security and other taxes |
| Other creditors |
| Deposits | 170,769 | 178,220 |
| Accruals and deferred income |
| Fees in advance represents school fees received in advance for future academic years. |
| 2024 | 2023 |
| £ | £ |
| Brought forward | 209,687 | 292,116 |
| Amount released to incoming resources | (43,699 | ) | (161,651 | ) |
| Amount deferred in year | 1,456,303 | 79,222 |
| Carried forward | 1,622,289 | 209,687 |
| Fees received in advance are higher because the shool raised invoices in June 2024. |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans (see note 19) |
| Fees in advance | 246,489 | 21,285 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year on demand: |
| Bank loans |
| Amounts falling due between two and five years: |
| Bank loans |
| Amounts falling due in more than five years: |
| Repayable by instalments: |
| Bank loans | 147,466 | 176,659 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Bank loans |
| The bank loan was secured by a legal charge over the freehold property at Lakesmere House, Allington Lane, Fair Oak, Eastleigh. |
| 22. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
| 2024 | 2023 |
| Unrestricted | Restricted | Total | Total |
| funds | funds | funds | funds |
| £ | £ | £ | £ |
| Fixed assets | 2,409,793 | - | 2,409,793 | 2,508,555 |
| Current assets |
| Current liabilities | ( |
) | ( |
) | ( |
) |
| Long term liabilities | (507,917 | ) | - | (507,917 | ) | (319,263 | ) |
| 2,433,714 | - | 2,433,714 | 2,466,699 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 23. | MOVEMENT IN FUNDS |
| Net | Transfers |
| movement | between | At |
| At 1.9.23 | in funds | funds | 31.8.24 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 2,316,580 | (32,985 | ) | 99,521 | 2,383,116 |
| Revaluation reserve | 50,598 | - | - | 50,598 |
| Enrichment fund | 99,521 | - | (99,521 | ) | - |
| (32,985 | ) |
| TOTAL FUNDS | (32,985 | ) | 2,433,714 |
| Net movement in funds, included in the above are as follows: |
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 1,765,932 | (1,798,917 | ) | (32,985 | ) |
| TOTAL FUNDS | ( |
) | (32,985 | ) |
| Comparatives for movement in funds |
| Net | Transfers |
| movement | between | At |
| At 1.9.22 | in funds | funds | 31.8.23 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 2,244,038 | (39,630 | ) | 112,172 | 2,316,580 |
| Revaluation reserve | 50,598 | - | - | 50,598 |
| Enrichment fund | 56,417 | 43,104 | - | 99,521 |
| 2,351,053 | 3,474 | 112,172 | 2,466,699 |
| Restricted funds |
| Muga fund | 144,910 | (32,738 | ) | (112,172 | ) | - |
| TOTAL FUNDS | 2,495,963 | (29,264 | ) | - | 2,466,699 |
| HAMPSHIRE CHRISTIAN EDUCATION TRUST |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 23. | 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 | 1,547,271 | (1,586,901 | ) | (39,630 | ) |
| Enrichment fund | 56,169 | (13,065 | ) | 43,104 |
| 1,603,440 | (1,599,966 | ) | 3,474 |
| Restricted funds |
| Muga fund | - | (32,738 | ) | (32,738 | ) |
| TOTAL FUNDS | 1,603,440 | (1,632,704 | ) | (29,264 | ) |
| Enrichment fund |
| This fund is a fund designated by the trustee directors to be a physical account where fundraising events and school trips could be accounted for to ensure that all monies raised in this way could be spent on enhancements to the school rather then lost in the day to day running of the school. |
| Transfer between funds |
| The transfers from restricted to unrestricted funds relate to funds on which restrictions have been satisfied and therefore are no longer considered to be restricted funds. |
| 24. | RELATED PARTY DISCLOSURES |
| Purchases of £22,092 (2023: £nil) have been paid to a company who has a common director to |
| Hampshire Christian Education Trust. The aged creditor balance at the year end with this company is £nil (2023: £nil). |
| During the year 3 (2023: 3) trustees had a total of 5(2023: 3) children attending the school. The total fees paid relating to these school places was £16,202 (2023: £22,737). |
| All transactions are at arms length. |
| 25. | ULTIMATE CONTROLLING PARTY |
| The charitable company is not under the control of another entity or any one individual. |
| 26. | LEGAL STATUS |
| The charitable company is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10. |