Company Registration No. 07744158 (England and Wales)
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2017
PAGES FOR FILING WITH REGISTRAR
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
COMPANY INFORMATION
Directors
Mr C Bell
Mr T G McDonagh
Inspector M Reid
Company number
07744158
Registered office
Manchester Collegiate Education Trust
979 - 981 Rochdale Road
Manchester
M9 8AE
Auditor
Mitchell Charlesworth LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
BALANCE SHEET
AS AT
31 AUGUST 2017
31 August 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
-
-
-
-
Current assets
Debtors
4
107,302
11,846
Cash at bank and in hand
4,430
6,980
111,732
18,826
Creditors: amounts falling due within one year
5
(261,841)
(76,115)
Net current liabilities
(150,109)
(57,289)
Capital and reserves
Profit and loss reserves
(150,109)
(57,289)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 30 May 2018 and are signed on its behalf by:
Mr C Bell
Director
Company Registration No. 07744158
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2017
- 2 -
1
Accounting policies
Company information
Manchester Collegiate Education Trust
(whose operating name is Harpurhey Alternative Provision School)
is a
private
company
limited by guarantee
incorporated in England and Wales.
The registered office is
Manchester Collegiate Education Trust, 979 - 981 Rochdale Road, Manchester, M9 8AE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 August 2017
are the
first
financial statements of Manchester Collegiate Education Trust prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 September 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.
The directors have assessed whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. Given that a loss has been made for the fourth consecutive year, the directors recognise that the financial risks have increased, however they judge, after consultation with the relevant stakeholders, that revenue will be sufficient for business to continue.
In particular the potential for there to be an element of subsidy has increased significantly and, further, the pursuit of charitable status will being additional benefits that will see outgoings reduced.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
.
1.4
Tangible fixed assets
Tangible fixed assets costing more than £5,000
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
33% straight line
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
1
Accounting policies
(Continued)
- 4 -
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.11
Expenses include VAT where applicable as the company cannot reclaim it.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 14 (2016 - 15).
3
Tangible fixed assets
Land and buildings
£
Cost
At 1 September 2016 and 31 August 2017
450,000
Depreciation and impairment
At 1 September 2016 and 31 August 2017
450,000
Carrying amount
At 31 August 2017
-
At 31 August 2016
-
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
- 5 -
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
107,302
11,846
5
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
25,636
14,129
Other taxation and social security
17,962
18,261
Other creditors
218,243
43,725
261,841
76,115
6
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Material uncertainties relating to going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1 to the financial statements concerning the company's ability to continue as a going concern. We draw attention to Note
1.2
in the financial statements, which indicates that the Company
incurred a net loss of
£92,820
during the year ended
31 August 2017
and, as of that date,
the Company’s current liabilities exceeded its total assets by
£150,109
. As stated in Note
1.2
, these
events or conditions, along with other matters as set forth in Note
1.2
, indicate that a material
uncertainty exists that may cast significant doubt on the Company’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Paul Booth.
The auditor was Mitchell Charlesworth LLP.
MANCHESTER COLLEGIATE EDUCATION TRUST
OPERATING AS HARPURHEY ALTERNATIVE PROVISION SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
- 6 -
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
186,750
-