I think you misread them. Sorry!
Looking at the 2102 accounts in detail, they say:
The financial results for the period are set out on page 9. The consolidated statement of financial activities shows total incoming resources of £2,601,437 (2011: £3,316,840) and total resources expended of £3,809,347 (2011: £5,321,886) giving a net outflow of resources for the period of £1,207,910 (2011: £2,005,046). However, this includes a depreciation charge of £1,189,604 (2011: £2,665,922) which is an accounting entry with no effect on the cash reserves of the charity. The net outflow of resources excluding depreciation is £18,306 (2011: surplus of £660,876).
… and similarly in 21010 they posted a depreciation charge of: £2,683,751
“The charity incurred a net deficit of £1,990,059, after charging depreciation of £2,683,751
during the year ended 31 March 2010”
what happened in 2009 I cant tell in detail ‘cos the crapity commission has screwed up by confusing Magna Trust and Magna Education Ltd for that year.
… but from the 210 accounts – Magna Trust claimed depreciation of £2,686,346 for 2009.
So the loses you documented are simply accounting entries, and nothing involving the going concern nature of the organisation – as far as I can see.
Magna Trust – Losses over the last 4 years:
2012 – £1.208m
2011 – £2.005m
2010 – £1.990m
2009 – £1.682m
I find it unusual that the CEO and one other paid exec of the charity were also trustees. but my charity expert flew to Stockholm this morning to speak at a conference, so I’ll have to wait her return to find out how common that is.