## **Mary Hare** Report of the Board of Governors and Accounts ## For the Year ended 10 July 2020 Registered charity number 1048386 ## **MARY HARE** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the company, its Governors, Directors and**|1 - 2| |**Charity Trustees and advisers**|| |**Governors' report**|3 - 10| |**Independent auditors' report on the financial statements**|11 - 13| |**Consolidated statement of financial activities**|14 - 15| |**Consolidated balance sheet**|16| |**Company balance sheet**|17| |**Consolidated statement of cash flows**|18| |**Notes to the financial statements**|19 - 46| ## **MARY HARE** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS, DIRECTORS AND CHARITY TRUSTEES AND ADVISERS FOR THE YEAR ENDED 10 JULY 2020** ## **Governors, Directors and Charity Trustees** A J Strivens (Chair) G M Bisset (appointed 6 May 2020) V P Bragg (resigned 14 October 2019) R W Clement (resigned 30 September 2019) A J Emerson (resigned 14 October 2019) J R F J Fox (resigned 14 October 2019) P R Gale A Granatt (resigned 14 October 2019) S Greenhalgh (appointed 6 May 2020) K M Loyd (resigned 30 November 2019) P J Ludlow A N R McAlpine B J McGhie (appointed 6 May 2020) A W McPhail C S Norman (appointed 6 November 2019, resigned 30 March 2020) J Podger (resigned 5 March 2020) C M Rowles (appointed 9 July 2020) R A G Sanders Rose OBE J P Sharpe G L C Woods (appointed 9 July 2020) ## **Company Registered Number** 3085006 ## **Charity Registered Number** 1048386 ## **Address and Registered Office** Arlington Manor Snelsmore Common Newbury Berkshire RG14 3BQ ## **Principal and Chief Executive Officer** P R Gale ## **Chief Operating Officer** P Robson (appointed 17 August 2020) ## **Company Secretary** J P Jackson (resigned 7 February 2020) Page 1 ## **MARY HARE** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS, DIRECTORS AND CHARITY TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** ## **Independent Auditor** James Cowper Kreston Chartered Accountants and Statutory Auditor 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB ## **Bankers** National Westminster Bank PLC 30 Market Place Newbury Berkshire RG14 5AJ ## **Solicitors** Pinsent Masons 30 Crown Place Earl Street London EC2A 4ES Page 2 ## **MARY HARE** ## **(A company limited by guarantee)** ## **GOVERNORS' REPORT FOR THE YEAR ENDED 10 JULY 2020** The Governors submit their report and the audited accounts for the year ended 10 July 2020 prepared in accordance with applicable accounting standards and 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 2015). ## **Reference and Administrative Information** Mary Hare Grammar School for the Deaf was established as a charity in the late 1940s in the form of a charitable trust. The charity was incorporated on 28 July 1995 under company number 3085006 and the name of the company was changed on 28 February 2005 to Mary Hare. The charity is registered with the Charity Commission under number 1048386. The Governors, Directors and Trustees, the principal Company officers, the registered office and the professional advisors are as shown on the Reference and Administrative details pages 1 and 2. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing Documents** On November 3rd, 2016, a Resolution was passed to approve the revised Articles of Association which were thereby adopted as the document under which the company is governed. These replaced the former Memorandum and Articles of Association. ## **Governing Body** The Governors are charity trustees, directors and members of the Company. The Governors are appointed by the Board of Governors, subject to retirement and re election procedures at the Annual General Meeting. Full details are in the company's Articles of Association. The Board of Governors has established sub committees to deal with certain specific aspects of Mary Hare's affairs. The principal sub committees and the chairs in the year were: Education & Care - J P Sharpe Finance - A J Strivens from 14th October 2019 (Acting), J R F J Fox until 14th October 2019 Business - A J Strivens from 5th March 2020 (Acting), J Podger until 5th March 2020 HR & Governance - A J Strivens Membership details of the sub committees are available from Mary Hare. New Governors are inducted into the workings of the charity on appointment and appropriate training is arranged. ## **Organisation** ## **Mary Hare** The Governors determine the general policy and strategy of Mary Hare, and have various duties in respect of appeals procedures and safeguarding. The Chief Executive Officer of Mary Hare coordinates total resources and activities across the range of Mary Hare interests and activities. Other senior roles also have responsibilities across the organisation, reflecting the broader structure of Mary Hare activities. ## **Mary Hare School** For the year ended 10 July 2020, the day to day management of Mary Hare School, was the responsibility of the Chief Executive Officer, P R Gale, working with his leadership team. Page 3 ## **MARY HARE** ## **(A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** ## **Mary Hare Professional Courses** This division coordinates the provision of training both in postgraduate education of teachers of the deaf and training of professionals and practitioners in deaf education and audiological science. As well as providing for a variety of award bearing courses, it runs a range of day courses and conferences. ## **The Burwood Centre** The Centre provides independent assessments for babies and children diagnosed with a hearing loss. The Centre's income is derived from fees paid by the families for assessments, charitable donations and support from unrestricted income. The reports produced are wholly independent, Mary Hare is determined to uphold the independence of the Burwood Centre. ## **Mary Hare Services Limited** The company is a wholly owned trading subsidiary of Mary Hare carrying out commercial activities to raise funds for Mary Hare. Activities include rental of facilities including the Arlington Arts Centre, and the use of the Mill Hall building for conducting weddings. It is not a registered charity. It draws up accounts to 10 July each year. ## **Arlington Laboratories Limited** Mary Hare has a 50% interest in this company. The company's investment takes the form of a share capital investment of £25,000. The company manufactures and sells earmoulds as well as hearing protection equipment on a commercial basis, mainly supplying NHS Trusts, and makes up accounts to 31 December each year. The accounts reflect Mary Hare's share of the retained profit, assets and liabilities of Arlington Laboratories for the period 1 July 2019 to 30 June 2020. ## **The Mary Hare Foundation** The Mary Hare Foundation is a charity established under a trust deed in 1991. The purpose of the Foundation is to raise significant funding for major capital and other projects undertaken by Mary Hare. ## **OBJECTIVES AND ACTIVITIES** ## **Our Vision:** Securing the future of deaf children and young people. ## **Our Mission:** Transforming the lives of deaf children and their families by providing: - an empowering and aspirational school where children, young people and adults are excited and proud to be - a centre of excellence with the needs of deaf students at its heart - an environment where children and young people build the language, confidence and resilience they need for success beyond school - a community of peers where enduring friendships are made ## **Our Aims:** 1. To provide exceptional education and care for all pupils 2. To provide an excellent environment for learning, living and working 3. To prepare all pupils for a successful transition into the wider community, able to meet challenges with confidence, resilience and determination 4. To promote Mary Hare and to establish the organisation as a key influence in the education of deaf children 5. Through empowering leadership at all levels, for staff to be skilled, well trained and highly motivated Page 4 **MARY HARE** ## **(A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** 6. To champion a culture of collaboration, innovation and excellence 7. To provide benefit for the local community where it supports our wider aims, sharing our facilities and expertise 8. To manage the charity, our businesses, risks and finances to ensure an enduring legacy for successive generations ## **Principal Activities** The principal activity of Mary Hare is to provide education for deaf children using an auditory oral method with spoken and written English and the use of the best technology at its heart. Pupils come from a range of communication backgrounds, including total communication, sign bilingual and auditory /oral. Mary Hare is a Non Maintained Special School which caters for children and young people (4 – 20 years of age) with moderate, severe or profound hearing loss. Pupils come from all over the UK with a small number from overseas. The school has two campuses, one in Greenham for the primary aged pupils, while the secondary pupils are based at Snelsmore Common. Mary Hare’s Professional Courses Division trains teachers of the deaf through postgraduate courses provided in partnership with the University of Hertfordshire. This relationship continues to develop and the course has been ratified for a further five years. Commercial activities carried out in Mary Hare Services Ltd include the letting of school facilities for an international language school and to other organisations, and for weddings; the letting of the Swimming Pool for swimming lessons and various other community uses; and the letting of the Arlington Arts Centre for commercial theatre, conferences and other events. Income from all Mary Hare’s commercial activities provides the school with significant additional funds. ## **STRATEGIC REPORT** In February 2020 the school received a Section 8 Ofsted inspection and the outcome was ‘Good’ in all areas. Key findings included: _‘Pupils are proud of their school and talk with excitement and passion about all aspects of their education here. Their enthusiasm for learning and appreciation of the opportunities the school provides are both heartening and humbling.’_ _‘Leaders and governors have worked hard to improve the school since the last inspection. They are determined that the school will not stand still. Plans to improve some aspects of provision are well developed. These include plans to provide new state-of-the-art facilities to improve the learning environment, resources and accommodation for primary-aged pupils.’_ _‘The arrangements for safeguarding are effective. The culture to keep pupils safe is strong because staff understand the complex needs of pupils very well. Pastoral care and pupils’ social and emotional development are strong. Specialist staff are employed to support pupils’ access to the curriculum, as well as ensuring that the welfare, health and safety of pupils are given the highest priority. Partnerships with outside agencies are positive. Record-keeping is detailed and consistent. Policies and procedures are followed well. Staff training focuses on the right things, including identifying and understanding the very specific additional risks that pupils who attend this school face._ The school is committed to seeking to achieve Outstanding. The project to build the new Primary School continues with detailed design work taking place with key stakeholders. We anticipate work to begin building in Spring 2021. Page 5 ## **MARY HARE (A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** Like all schools, the most significant challenge, both in terms of strategy and operationally, was the Coronavirus epidemic. Mary Hare’s approach was to seek to deliver the whole curriculum in real time to pupils online for whom this was realistic. This continued for Key Stages 4 and 5 and was reduced following consultation with families for Key Stage 3. The primary school used a platform requiring less real time interaction in keeping with the age of the children. Mary Hare’s approach to learning at home was extremely well received by parents who sent countless messages of support and gratitude. Another principle was to continue to care for the whole child with the safeguarding and wellbeing teams kept in regular contact with pupils. The Principal sent regular subtitled assemblies for pupils to watch with their families. ## **Educational Achievements and Performance** ## GCSE Mary Hare provides education to a wide range of deaf students, some, very able and others facing a range of challenges directly or indirectly caused by their deafness. Therefore, we celebrate the high grades at GCSE, which demonstrate our academic ambitions while equally celebrating the much more modest achievements of others remembering that these represent huge progress for the individual. Schools nationally are not publishing the same progress and outcome data for the qualifications this year as they were arrived at by teachers’ judgement, based on all the relevant information held by the school. It is worth noting the exceptional results of two students, one of whom achieved four 9’s, three 8’s and a 6, and the other, three 8’s, a 7 and five 6’s. ## Sixth Form Sixth Form results were very good and all going onto further and higher education were able to take up the places of their choice. The process was inevitably stressful for families and staff and was the latest blow to these young people who had already faced such a disappointing end to their schooling, having been unable to return since lockdown. There were some fully deserved, excellent results. One pupil achieved A*, A, A and C in Maths, Further Maths, Chemistry and Physics, another student achieved A*, A and B in Fine Art, Photography and Core Maths, two students achieved grade A in their Fine Art A level and one students was awarded a Distinction in IT. ## **Financial Review** |Mary Hare School
Burwood Centre
Trading Activities
Joint Venture Activities
Actuarial Gain/(loss) on DBPS
Exceptional item - Pension costs
Exceptional item - Legacies
Exceptional item - Project Professional fees
**Total**|**2019/20**
**2018/19**
**2017/18**
**£000s**
**£000s**
**£000s**
335
(175)
(166)
(56)
(61)
(57)
191
238
149| |---|---| ||**470**
**2**
**(74)**
71
182
132| ||**541**
**184**
**58**
(4,329)
(1,565)
397
(1,222)
(449)
(378)
0
266
0
(78)
(79)
(417)| ||**(5,088)**
**(1,643)**
**(340)**| There was a modest rise in the pupil numbers from 224 at the beginning of the academic year 2019/20 to 233 at the end of the year. This small increase together with the continued initiatives to ensure we obtain full cost recovery of services offered resulted in an increase in fee income to £12.15m from £11.5m in the prior year. There has been a continued focus on effectively managing costs. Excluding pension scheme costs the overall operating expenditure for the year reduced by 2.5%. This reduction was achieved despite staff numbers (FTE) remaining relatively static at 231 (2018/19 - 233). Page 6 ## **MARY HARE (A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** Mary Hare continued in 2019/20 with its multi-year major investment programme. Projects during the year included the continuation of upgrade work to the Mansell House and the Manor residential accommodations, investment in the IT server infrastructure, computers and whiteboards, further improvements to the canteen servery and a variety of works to upgrade bathroom facilities across the site. The accounts in the year benefit again from the contribution from Mary Hare business activities and from the joint venture activities, however, these were significantly impacted in the latter months of the financial year with the arrival of the Covid-19 pandemic. During the national lockdown, nearly all commercial activities had to be suspended and businesses and the Arlington Arts venue had to cancel all bookings. The highly successful Summer English Language School for foreign students also had to be cancelled for this year. A significant impact on the overall financial result for the year is the pension scheme costs arising from the annual revaluation of Mary Hare's share in the Royal County of Berkshire Pension Scheme (RCBPS). Mary Hare employees participate in three pension schemes: - The Teachers' Pension defined benefit Scheme (TPS); - The RCBPS defined benefit Scheme (closed to new members from 31 December 2018) and - The People’s Pension defined contribution Scheme (established 1 January 2019 for all non teaching staff joining from that date onwards). The RCBPS scheme reflects the majority of Mary Hare’s pension obligations. Each financial year end under the requirements of FRS 102, the amount of money owed to meet our pension obligations under the RCBPS have to be recalculated and netted against the revised asset value, resulting in a net liability or surplus. Although the TPS is a multi employer defined benefits scheme, it is not possible or appropriate to split the assets or liabilities of TPS that are attributable to Mary Hare. As such under the requirements of FRS 102 Mary Hare accounts for this scheme as if it were a defined contribution scheme. For the year ended 10 July 2020, net pension scheme adjustments totalling £5,551k of cost were included, an increase of £3,537k from the prior year. The major driver was a negative £3,445k reflecting a reduction in the discount factor (investment return) that is applied to the scheme liabilities. This discount rate is provided by our pension advisers who refer to IBoxx AA rated over 15 years Corporate bond rates which have fallen reflecting global macroeconomic outlook. There was also a less material £416k positive contribution due to the improved demographic assumptions aligned to average life expectancy impacting the period members’ pensions are expected to be paid out for. Every three years a formal actuarial valuation of the entire RCBPS is undertaken. Its purpose is to value the assets and liabilities of each individual employer and the pension fund as a whole, with a view to setting employer contribution rates that will result in each employer’s liabilities becoming as close to fully funded as possible over the agreed recovery period usually several years away. The latest valuation has resulted in a small reduction in in the regular employer contribution rate, effective April 2020 and lump sum payments for the three years from 2020. These lump sum contributions were predicted in our financial strategy and reflected in our five year forecast projections. This year the accounts include further professional fees of £78k incurred to progress plans for the development of a new Primary School on the Mary Hare site. Development costs incurred in the prior year were £79k. The overall cash balance at the year end was £3,885k, an increase of £1,190k from the prior year. This was driven by operational cash flow inflows of £1,428k netted against investment cash outflows, primarily tangible fixed assets of £238k. Excluding the various FRS 102 pension adjustments, the one off new primary school development costs and reflecting the contribution of the business and joint venture activities, Mary Hare has returned an operating surplus of £541k. We continue to enjoy the benefit of support from the Mary Hare Foundation which further enhances our ability to offer value for money and invest in the School’s future. We are grateful to the Foundation and its supporters for the success in raising substantial funds towards the new primary school project. Page 7 ## **MARY HARE (A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** ## **Plans for the Future** Some things that we hoped to do last year were affected by the Covid-19 pandemic and will need to be revisited. These include our decision to seek to speak out more on key issues facing deaf children – the ongoing assumption that they should attend their local school and the increasing difficulty families face in seeking placement and even in getting an EHC Plan for their child. In school we will be focussing on the move to Outstanding and supporting students who have missed considerable time in school, particularly those who are now in Years 11 and 13. We are also continuing to raise vital funds towards the new Primary School build and additionally we need to build a new Vocational Centre to accommodate the number of courses we now offer. ## **Principal Risks and Uncertainties** The Governors regularly examine the major risks facing Mary Hare. There are systems to monitor and mitigate any impact they may have on Mary Hare. The Governors are satisfied that adequate systems are in place. Mary Hare relies on the funding of pupil places by Local Authorities. Therefore, we need to be aware of the financial situation in Local Authorities and any barriers to placement families may face. The Board is alert to the need to ensure the highest possible level of safeguarding for our pupils, which is of paramount importance in our setting. Our procedures and practices are regularly inspected by Governors, Ofsted, the pupils’ home local authorities and independent third parties and their reports are scrutinised by management and the Board. The direct effects of the Covid-19 pandemic on Mary Hare are not currently significant, however, school leaders are monitoring the ‘pipeline’ of prospective pupils carefully as normal recruitment events have had to be postponed or adapted to meet current circumstances. A full Covid-19 risk assessment has been carried out, and adaptations to the way the School operates and delivers its education and care have been implemented. The risks are regularly reviewed and adjustments made to reflect the current situation and latest guidance. ## **Remuneration of Key Management Personnel** Key Management Personnel are remunerated at appropriate levels taken from the NJC or school leadership scales. These are reviewed by the HR and Governance Committee of the Board of Governors. ## **Reserves Policy** Mary Hare aims to have free reserves that equate to three months’ running costs in line with market practice. The size of this reserve has been determined using a simple income and expenditure risk assessment. We believe that if our annual income were to be reduced suddenly in some way, for example a big reduction in pupil numbers or a significant change in the way Local Authorities or the Education and Skills Funding Agency (ESFA) fund our pupils, three months' running costs would give us the time to rescale our operations whilst we continue to educate the children in our care. Mary Hare currently holds reserves in the form of fixed assets, mostly buildings. However, these do not offer the same liquidity as free reserves as it would be impractical to dispose of them quickly in the event of an emergency. The current gap to our targeted free reserves figure is being closed by building surplus cash flow through a combination of looking to ensure healthy pupil numbers, addressing our fee structure, careful cost control and income from the Mary Hare Businesses. It is our policy that these reserves will only be spent in the event of a sudden or unforeseen loss or reduction in income that threatened the viability of the organisation. The Governors review the level of reserves required to be held in investments, cash and cash investments annually. The CEO presents annually to the Board of Governors with a draft document and supporting materials that enable the governing body to make an informed decision about the level of reserves which feeds into their approval of the Strategy and Annual Operating Budget. Page 8 ## **MARY HARE (A company limited by guarantee)** ## **GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** ## **Public Benefit** Mary Hare provides education to its pupils within the national curriculum and meets the standards set by Ofsted. This meets a fundamental test for advancement of education for public benefit identified by the Charity Commission. The education is restricted to pupils who are moderately, severely or profoundly deaf or who have other hearing difficulties. This class of beneficiaries has a particular common charitable need which justifies restricting the benefit to them because of the special nature of the education required. In setting our objectives and planning our activities, we have given careful consideration to the Charity Commission’s general guidance on public benefit. ## **Environmental Initiatives** Mary Hare continues to undertake a series of environmental initiatives. There have been a wide range of projects being rolled out recently to reduce energy consumption. These include investing in and upgrading our main central boiler house, installation of modern efficient light fittings, a programme to install new double glazing windows, and in our older boarding houses sensors and new radiator heat controls. Both our newer buildings are partly heated by solar panels and in both the newer houses, the highest levels of insulation have been incorporated. With our recent swimming pool refurbishment we included a new swimming pool cover. Additionally, the environment featured heavily in the designs for future buildings in our plans approved last year by West Berkshire. Our pupils have formed an environmental group and are leading some initiatives around school to encourage awareness but also to change some behaviours. Page 9 ARY HARE IA company fAnlted by guarnnt•o1 GOVERNORS. REPORT {cop¥llNUED) FOR THE YEAR ENDED 10 JULY 2020 Accountlng Resp0Tr41bHlles The Gr)vein(Ys also dire¢aots of Mary H*e lor the of company law) are rest￿sIble for FKeparing G0veM￿S. rewl (indu(fing the Group slfttegrc repJt) and the accoun15 in accordance l¢cable law and United K￿g￿n Ac￿ntry Sland*ts (Unit•d G￿￿al￿ Accepted AccoLmting Pradicel. Cornwy law Gtyemots to lor e&h year whKh ￿ a true and èir ol the stale of affairs of the g￿￿p and d the Ir￿￿1ng re5￿CeS and SP￿1¢al￿n of resources. Ineluthng the iftc￿e and &Ynd￿urQ. of the group for Ihai WKXI. In tI￿se acMunts. Govemors ap required lo.. observe the mthd5 and pin¥les in SORP. make ￿dI￿ne￿5 and e5iwn*s Ihal ￿e reasonable and slate whether appwe UK Acccwnts"ng Sla¥Jard5 have been 101b￿￿d. subject to materral depthi￿s di5cbsed and exFdaned ￿ the acC￿lIts. prepare thp xcoun15 on the concem basis is ¥iappropriale lo preswne thal group and company w￿1 conlinue tn Opwat￿n. The Governors we responsble for keeF**J adewate w?unting re￿r￿S disclose with reasonable accuracy al any lime the fina￿la1 p0s￿On ￿ the gmup arKI enable them lo ensure Ihal the accoun15 Compty vAlh Ihe Comp8n*s Act 2006. They are atso responsible fLY safeguarthg assets of Ihe gro￿ arKt henre for lak'ng reasonatde sleps tor Ihe wevenI￿n deteclw of 11a￿1 and othEr irregularilies. Stalemènt of Dlsclosure So far as the Govemcys ate aware, thwe is no rele4art •JJil infcrfmakn of I￿¥ch the o)mpanVs auditors arè unaware. Audltor The auditors. James c￿￿r ltreslt)n. wil be proposed fty re•pc•)tment in ac￿l￿pA￿e wilh Section 485 ofthe Companies Act 2006. - 23J,Wv and sh￿d on Iheir b￿￿Kby. A J Slrivens Chalr ofGo¥emoYs Page10 **MARY HARE** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARY HARE** ## **Opinion** We have audited the financial statements of Mary Hare (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 10 July 2020 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated 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). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 10 July 2020 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Governors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Page 11 **MARY HARE** ## **(A company limited by guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARY HARE (CONTINUED)** ## **Other information** The Governors are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. ## **Opinion 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 Governors' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Governors' report and the Strategic report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our 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 Governors' report including the Strategic report. 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: - the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Governors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. Page 12 IA company Hmited ty guarant•81 INDEPENDEKf AUDITORS. REPORT TO THE hEMBERS OF MARY HARE ICONTINUEDI ResponslbllltlES of trustees As ewained more fully in the Govemors. respc￿s1)iSI￿S statement the Govemors IWIK) are al￿ the director5 of the charilable company for the puw05es of c(ryany law} are rnspon5iblE for the preparalion ol the fwbancial statements and for beiThJ sali5fied that they g￿e a tnk and lair view. and for such inlem81 control as the )vemors delemyne is neees5wy lo gnable the p￿Tr￿￿10n ol fThnci81 stalements that are fr￿ from malefial misslalemenl. Ythetherdue to fraud or eFror. In pwj311￿ the ￿8￿la1 stalemenls. the G0vem0￿ are responsiNe for assessing the group's and thè parent charitsble company's ability tc continue as a going ccrfKem, dtscltislng, as app1￿¥ble. Matte￿ relaied lo golng concern and usirwJ the going concem basis of accountirvJ uthss the Governow5 either irbtend la 14uidate the gioup orthe parent charitable corywy or lo cease ope￿ti￿ls. or have no realist¢ aMwnat4ve bul lo do 50. Audtttsrn. reSp[￿S{bIlItIVj forth• autut of the Ilnandal statements Our objectives Je lo oblain reaSon￿e assurance aboul TthEther the thar￿la1 statements as a whole are free from material mi%5talemenL whether due to frnwl i¥ error, to issue ￿ Audito￿. report that includes our opin*￿. Reasonable assurance is a hlgh level al ass￿￿￿8. but is not a guarantee that an audii conductEd in accof[lar￿ ￿ ISAS (UK) wll afvmys detect a maleriai mi55fatemenl when it exists. FAsstatements can arise from fraLKI Of effor and are cons&Jered material rf. in(hvAdualty LY in Ihe oggreg*. Ihey could reasonabty be expected lo econle company aNI ts meffl￿. as a body. for our audii for Ihb report. Dr for the opknions Mfdfv Ml¢hael Fa￿•11 MA FCA DChA Isenlor statutory audltor) for and on ￿hair of James Cowper Kreston Chortered Accounlants and Statsrtwy A 2 Communications Road G￿enbarn Buskne&s Pwk Greenh*n N&vbury Berkshlre RG19 &48 Date: 161,,) Pa9e 13 ## **MARY HARE** ## **(A company limited by guarantee)** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 10 JULY 2020** |**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
Other income
**Total income**
**Expenditure on:**
Raising funds:
Voluntary income
Other trading activities
Charitable activities:
6
Charitable activities
Pension scheme costs
Governance
**Total expenditure**
Net income from investments in joint
ventures
**Net income/(expenditure)**
Transfers between funds
16
**Net movement in funds before other**
**recognised gains/(losses)**
**Other recognised gains/(losses):**
Actuarial losses on defined benefit
pension schemes
23
**Net movement in funds**|**Restricted**
**funds**
**2020**
**£000**
**279**
**-**
**-**
**-**
**-**
**279**
**-**
**-**
**265**
**-**
**-**
**265**
**-**
**14**
**(98)**
**(84)**
**-**
**(84)**|**Unrestricted**
**funds**
**2020**
**£000**
**11**
**12,544**
**502**
**9**
**44**
**13,110**
**240**
**311**
**12,083**
**1,222**
**98**
**13,954**
**71**
**(773)**
**98**
**(675)**
**(4,329)**
**(5,004)**|**Total**
**funds**
**2020**
**£000**
**290**
**12,544**
**502**
**9**
**44**
**13,389**
**240**
**311**
**12,348**
**1,222**
**98**
**14,219**
**71**
**(759)**
**-**
**(759)**
**(4,329)**
**(5,088)**|Total
funds
2019
£000
453
11,936
683
6
28
13,106
194
446
12,234
449
43
13,366
182
(78)
-
(78)
(1,565)
(1,643)| |---|---|---|---|---| Page 14 ## **MARY HARE** ## **(A company limited by guarantee)** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) FOR THE YEAR ENDED 10 JULY 2020** |**Note**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2020**
**£000**
**2,661**
**(84)**
**2,577**|**Unrestricted**
**funds**
**2020**
**£000**
**3,030**
**(5,004)**
**(1,974)**|**Total**
**funds**
**2020**
**£000**
**5,691**
**(5,088)**
**603**|Total
funds
2019
£000
7,334
(1,643)
5,691| |---|---|---|---|---| All the activities relate to continuing operations. The Statement of Financial Activities includes all the gains and losses recognised in the year. The group's share of turnover from joint ventures was £604,765 (2019: £789,061). The notes on pages 19 to 46 form part of these financial statements. Page 15 IAARY HARE IA company limlted by guarantoal REGISTERED NUMBER: 30B5006 CONSOUDATED BALANCE SHEET AS AT 10 JULY 21120 2020 00 2019 Note Flx•d assets Tangbl8 assets Investmenis 11 12 12.846 110 13.008 286 11956 13.294 Currnnt assets Stocks Oebto Cash at bank and ui hand 47 13 338 2.695 263 3.522 Credi1￿ anwjunts falkn￿ due within one ye 14 12A321 (2.492 N¢t CU￿ent assets 1I31 1,030 Total assets l•ss current Ilabllliles 14.787 114.1841 14.324 t)efined benefit pensi￿ scheme liatHIty 23 (8.633) Total net assets 603 5,691 Charfty funds Restricted lurtds Unreslficled r￿K1$ Unfestsicled fLnds exdudirg pen5Km defftl Pensp)n ￿￿ClI 16 2￿7 2,661 18 12210 (14.1841 11.663 18.6331 16 Totsl ￿n￿Strided funds 16 (1.Y14) Total fun(ts 5,691 The ffinancHS $talemenls were *KI aLth￿￿ed for is5up by Governtys on Glgnpd ￿ their behafty. ?) A J Slrlvgns Go￿1￿£ The noles on pays 19 to 46 form part of the59 stala)￿1$. P4e 16 IAARY HARE IA ￿MpanY Ilnxted by guarnntse) REGISTERED NUMBEIL" 3085006 COMPANY BALANCE SHEET AS AT 10 JULY 2020 As restated 2019 £000 2020 Flxed assets Tangible assets Inve51rnenls 11 12 12,843 13.INJ5 25 1186B 13,030 Current ass•ts Stocks Debtors Cash at bank and kn harwj 13 $68 7K2 2.347 4.138 3.133 Creditors: amounts due bthin year 14 (2,2011 Net current assets 1.761 932 Tutal a552ts le55 currant Ilabllltles 14,619 114,1841 13.962 Defined benerrt pensnn scheme l*b 18.633) Total net assets 43S 5.329 Charlty funds Restricled funds Unrestricted knds Uniestricieil fund5 excfusfry pgns•)n habilly 16 Pen51on reserve 16 16 1677 2.661 11042 114,1841 11.301 {8.633) Total unrestricted funds 16 11142) 2,668 Total funds 5,329 signed un their behalf ty. ,],, 020 8nd A J Stnvons Th8 notes on p•Jes 1910 46 fonn part d these st*ements. P•Je 17 ## **MARY HARE** ## **(A company limited by guarantee)** ## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 10 JULY 2020** |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
19
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
20|**2020**
**£000**
**1,428**
**9**
**(247)**
**(238)**
**1,190**
**2,695**
**3,885**|2019
£000
357
6
(187)
**(181)**
**176**
2,519
2,695| |---|---|---| The notes on pages 19 to 46 form part of these financial statements Page 18 **MARY HARE** ## **(A company limited by guarantee)** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **1. Accounting policies** ## **1.1 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. Mary Hare 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 Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. ## **1.2 Going concern** The Governors have considered the impact of the global Covid-19 pandemic on the ability of the charity to continue operating for the foreseeable future. This review has included considering the impact of the pandemic to the date of signing the financial statements and based on this review the Governors believe that the financial statements have been prepared appropriately on the going concern basis. ## **1.3 Fund accounting** The nature and purpose of each fund are explained in note 16. ## **1.4 Fees and similar income** ## **Fees** Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. ## **Donations and legacies** Income from donations and legacies is recognised in the year in which the school becomes legally entitled to the relevant income and the amount can be quantified with reasonable certainty. Donations received for the general purposes of the charity are included within unrestricted funds. Donations for activities restricted by the provider are taken to restricted funds where these wishes are legally binding on the Governors. Donations in kind are reflected in the financial statements at their estimated value to Mary Hare. ## **Grants receivable** Grants are normally recognised as income in the period to which they relate. Grants received in respect of property or other fixed asset additions are credited to a fixed asset grant fund within restricted funds. An annual transfer to unrestricted funds is made in respect of the amortisation of the grants over the estimated useful life of the relevant asset. Page 19 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **1. Accounting policies (continued)** ## **1.4 Fees and similar income (continued)** ## **Deferred income** Income is deferred for grants and other income where a deposit or receipt for a future service has been received. ## **1.5 Expenditure** All expenditure is included on an accruals basis and is recognised where there is a legal or constructive obligation to pay. Expenditure is shown gross of any irrecoverable VAT. ## **Fundraising and publicity costs** Fundraising and publicity costs to promote the awareness of Mary Hare with the aim of generating fees and increasing donated income are treated as costs of generating funds. Other informative publicity is treated as charitable expenditure. ## **1.6 Group financial statements** The financial statements consolidate the results of the charity, Mary Hare, and its wholly owned subsidiary, Mary Hare Services Ltd. The financial statements also reflect the group's share of the retained profit, assets and liabilities in respect of its investments in 50% joint ventures, Arlington Laboratories Ltd, the Hearing Aid Repair Shop (UK) Ltd, Mary Hare Total Hearing Solutions Ltd and Mary Hare Hearing Centres LLP, in accordance with the Charities SORP (FRS 102). The accounting treatment is to reflect these transactions, assets and liabilities on a gross basis. Income received by Mary Hare and Mary Hare Services Ltd as Gift Aid, management charges and rent is included as net income from investments in joint ventures. ## **1.7 Tangible fixed assets and depreciation** 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. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following bases: Freehold property - 2% and 10% on cost Motor vehicles, tractors & - 20% on cost mechanical implements Furniture, fittings & equipment - 10% and 25% on cost Items costing in excess of £1,000 with an estimated useful life of several years are capitalised and depreciated. Items costing less than £1,000 are written off as an expense when acquired. Page 20 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **1. Accounting policies (continued)** ## **1.8 Investments** Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities. Investments in subsidiaries are valued at cost less provision for impairment. Investments in joint ventures are stated at the amount of the group's share of net assets. The Consolidated Statement of Financial Activities includes the group's share of the joint ventures' net income or expenditure using the equity accounting basis. ## **1.9 Operating leases** Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term. ## **1.10 Stocks** Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. ## **1.11 Debtors** Fees 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. ## **1.12 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. ## **1.13 Liabilities** 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 company 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. ## **1.14 Financial instruments** The group 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. Page 21 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **1. Accounting policies (continued)** ## **1.15 Pensions** Teaching staff employed by Mary Hare are eligible for membership of the Teachers' Pension Scheme, which is a national, statutory contributory, unfunded defined benefit scheme administered by the Teachers Pension Agency, an executive agency of the Department for Education. Pension costs are assessed in accordance with the advice of the Government Actuary. As this is a multiemployer scheme whose assets and liabilities are not separately identifiable, under Charities SORP (FRS 102) it is treated as a defined contribution scheme with a charge to the financial statements for the contributions paid and relevant disclosures about the scheme as a whole provided in note 23. Mary Hare has a funded defined benefit scheme for those members of staff who are not eligible to join the Teachers' Pension Scheme. The assets of this scheme are administered by the Royal County of Berkshire Pension Scheme. This is also a multi-employer scheme, but the assets and liabilities relating to Mary Hare are separately identifiable and are accounted for as belonging to Mary Hare. The financial statements take account of the annual valuation of the defined benefit scheme undertaken by the pension fund's actuaries. The scheme deficit is the shortfall of the value of the assets of the scheme compared with the present value of scheme liabilities. The deficit is shown as a liability in the balance sheet. The current service cost, expected return on pension scheme assets, interest on pension scheme liabilities and past service gains and costs are within the resources expended section of the Statement of Financial Activities. Actuarial gains and losses arising from updating the latest actuarial valuation to reflect conditions at the balance sheet date are recognised in the gains and losses section of the Statement of Financial Activities. More details are included in note 23. ## **2. Critical accounting estimates and areas of judgement** Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgement: ## **Tangible fixed assets (see note 11)** Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. ## **Bad debts** Using information available at the balance sheet date, the Charity makes judgements based on experience regarding the level of provision required to account for potentially uncollectible fees. ## **Pensions (see note 23)** Various assumptions are made in reporting the performance of the Charity's share of the pension scheme. A valuation is carried out for reporting purposes by a qualified independent actuary. The principal actuarial assumptions made are disclosed in note 23. Page 22 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **2. Critical accounting estimates and areas of judgement (continued)** ## **Allocation of expenditure** Where expenditure is not directly attributable to activity categories, costs are apportioned on the basis of various factors such as staff numbers or by reference to the proportion of resources utilised. ## **3. Income from donations and legacies** |**Restricted**
**funds**
**2020**
**£000**
General donations
(10)
Legacy income
-
Other grants
-
DfE grants received
289
279
Total 2019
-
**Income from charitable activities**
School fees
Burwood centre for childhood deafness fees
Hertfordshire University / Oxford Brookes training courses
Outreach and consultancy income
Music therapy
Other educational income
Total 2019|**Unrestricted**
**funds**
**2020**
**£000**
4
-
2
5
11
453
**Unrestricted**
**funds**
**2020**
**£000**
12,121
22
242
3
3
153
12,544
11,936|**Total**
**funds**
**2020**
**£000**
**(6)**
**-**
**2**
**294**
**290**
453
**Total**
**funds**
**2020**
**£000**
**12,121**
**22**
**242**
**3**
**3**
**153**
**12,544**
11,936|Total
funds
2019
£000
17
266
7
163| |---|---|---|---| ||||453| ||||Total
funds
2019
£000
11,467
24
234
5
6
200| ||||11,936| ||||| ## **4. Income from charitable activities** ## **5. Other trading activities** Other trading activities represents the turnover of the trading subsidiary, Mary Hare Services Limited. Page 23 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **6. Analysis of expenditure on charitable activities** ## **Summary by fund type** |Teaching and support costs
Welfare
Premises
Governance costs
Total 2019|**Restricted**
**funds**
**2020**
**£000**
169
-
96
-
265
94|**Unrestricted**
**funds**
**2020**
**£000**
8,327
2,993
1,985
98
13,403
12,632|**Total**
**funds**
**2020**
**£000**
**8,496**
**2,993**
**2,081**
**98**
**13,668**
12,726|Total
funds
2019
£000
7,609
3,058
2,016
43| |---|---|---|---|---| |||||12,726| |||||| ## **Summary by expenditure type** |Teaching and support costs
Welfare
Premises
Governance costs
Total 2019|**Staff costs**
**2020**
**£000**
7,682
2,631
341
-
10,654
9,527|**Depreciation**
**2020**
**£000**
31
-
394
-
425
420|**Other costs**
**2020**
**£000**
783
362
1,346
98
2,589
2,779|**Total**
**funds**
**2020**
**£000**
**8,496**
**2,993**
**2,081**
**98**
**13,668**
12,726|Total
funds
2019
£000
7,609
3,058
2,016
43
12,726| |---|---|---|---|---|---| Page 24 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **7. Analysis of expenditure by activities** |Teaching and support costs
Welfare
Premises
Governance costs
Total 2019|**Activities**
**undertaken**
**directly**
**2020**
**£000**
7,199
2,993
2,081
-
12,273
11,378|**Support**
**costs**
**2020**
**£000**
1,297
-
-
98
1,395
1,348|**Total**
**funds**
**2020**
**£000**
**8,496**
**2,993**
**2,081**
**98**
**13,668**
12,726|Total
funds
2019
£000
7,609
3,058
2,016
43| |---|---|---|---|---| |||||12,726| |||||| ## **Analysis of support costs** |Staff costs
Depreciation
Other costs
Governance costs
**Auditors' remuneration**
Fees payable to the company's auditor for the audit of the company's
annual accounts
Fees payable to the company's auditor in respect of:
All non-audit services not included above|**Total**
**funds**
**2020**
**£000**
**857**
**10**
**430**
**98**
**1,395**
**2020**
**£000**
**14**
**11**|Total
funds
2019
£000
780
10
515
43| |---|---|---| |||1,348| |||2019
£000
14
11| ## **8. Auditors' remuneration** Page 25 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **9. Staff costs** |Wages and salaries
Social security costs
Other pension costs|**Group**
**2020**
**£000**
**7,653**
**677**
**2,610**
**10,940**|Group
2019
£000
7,494
650
1,632
9,776|**Company**
**2020**
**£000**
**7,591**
**677**
**2,610**
**10,878**|Company
2019
£000
7,417
650
1,632| |---|---|---|---|---| |||||9,699| Included within other pension costs are costs of £1,222,000 (2019: £449,000) relating to the Royal County of Berkshire Pension Scheme. Of this amount, costs of £507,000 (2019: £676,000) represent the service cost less employer contributions during the year and a debit of £715,000 (2019: credit of £227,000) represents the net return on assets as shown in note 23. The average number of persons employed by the company during the year was as follows: |Teaching staff
Care staff
Teaching support
Management and administration
Catering, cleaning and maintenance
Burwood centre for childhood deafness
Arlington Arts Centre|**Group**
**2020**
**No.**
**66**
**65**
**61**
**31**
**47**
**3**
**6**
**279**|Group
2019
No.
69
67
64
29
47
3
5| |---|---|---| |||| |||284| The average headcount expressed as full-time equivalents was: |Teaching staff
Care staff
Teaching support
Management and administration
Catering, cleaning and maintenance
Burwood centre for childhood deafness
Arlington Arts Centre|**Group**
**2020**
**No.**
**60**
**49**
**50**
**27**
**39**
**1**
**5**
**231**|Group
2019
No.
62
49
52
27
38
1
4| |---|---|---| |||| |||233| Page 26 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **9. Staff costs (continued)** The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: ||**Group**|Group| |---|---|---| ||**2020**|2019| ||**No.**|No.| |In the band £60,001 - £70,000|**2**|1| |In the band £70,001 - £80,000|**1**|2| |In the band £80,001 - £90,000|**2**|1| |In the band £110,001 - £120,000||| ||**1**|1| With the exception of the Principal, neither the Governors nor persons connected with them received any remuneration or other benefits during the period other than the reimbursement of travel expenses incurred. Total reimbursements during the period were £1,145 (2019: £1,732) in respect of four trustees (2019: four trustees). All other trustees incurred expenses without reimbursement. The six (2019: five) employees receiving a salary above £60,000 this year are also accruing benefits either under a defined contribution or a defined benefit scheme (Teachers' Pension Scheme and The Royal County of Berkshire Pension Scheme). The contributions in the year amounted to £105,002 (2019: £70,007). The charity considers its key management personnel comprise the trustees and senior management team. The total employment benefits, including employer pension contributions and social security costs, of the key management personnel were £641,931 (2019: £654,158). ## **10. Parent company results** The parent company has taken advantage of Section 408 Companies Act 2006 in not preparing its own Statement of Financial Activities. The net deficit of the parent company was £4,894,000 (2019: £1,610,000). Page 27 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **11. Tangible fixed assets** ## **Group** |**Cost or valuation**
At 11 July 2019
Additions
Disposals
At 10 July 2020
**Depreciation**
At 11 July 2019
Charge for the year
On disposals
At 10 July 2020
**Net book value**
At 10 July 2020
At 10 July 2019|**Freehold**
**property**
**£000**
**13,532**
**-**
**-**
**13,532**
**925**
**199**
**-**
**1,124**
**12,408**
12,607|**Furniture,**
**fittings and**
**equipment**
**£000**
**4,193**
**233**
**(1,665)**
**2,761**
**3,838**
**207**
**(1,683)**
**2,362**
**399**
355|**Motor**
**vehicles,**
**tractors and**
**mechanical**
**implements**
**£000**
**247**
**14**
**(55)**
**206**
**201**
**19**
**(53)**
**167**
**39**
46|**Total**
**£000**
**17,972**
**247**
**(1,720)**
**16,499**
**4,964**
**425**
**(1,736)**
**3,653**
**12,846**
13,008| |---|---|---|---|---| Page 28 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **11. Tangible fixed assets (continued)** ## **Company** |**Cost or valuation**
At 11 July 2019
Additions
Disposals
At 10 July 2020
**Depreciation**
At 11 July 2019
Charge for the year
On disposals
At 10 July 2020
**Net book value**
At 10 July 2020
At 10 July 2019|**Freehold**
**property**
**£000**
**13,532**
**-**
**-**
**13,532**
**925**
**199**
**-**
**1,124**
**12,408**
12,607|**Furniture,**
**fittings and**
**equipment**
**£000**
**4,158**
**233**
**(1,665)**
**2,726**
**3,804**
**207**
**(1,683)**
**2,328**
**398**
354|**Motor**
**vehicles,**
**tractors and**
**mechanical**
**implements**
**£000**
**245**
**14**
**(55)**
**204**
**201**
**19**
**(53)**
**167**
**37**
44|**Total**
**£000**
**17,935**
**247**
**(1,720)**| |---|---|---|---|---| |||||**16,462**| |||||**4,930**
**425**
**(1,736)**| |||||**3,619**| |||||**12,843**| |||||13,005| For both the group and the company, included in freehold property is freehold land at valuation of £4,200,000 (2019: £4,200,000) which is not depreciated. Cost or valuation at 10 July 2020 is as follows: |At cost
At valuation:
2014|**Group**
**£000**
**13,416**
**116**
**13,532**|**Company**
**£000**
**13,416**
**116**
**13,532**| |---|---|---| Page 29 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **11. Tangible fixed assets (continued)** The freehold properties were revalued on 10 July 2014 by Savills (UK) Limited, Chartered Surveyors on a full vacant possession basis. The group and the company have applied the transitional provisions of the Charities SORP (FRS 102) and the valuation of freehold property has not been updated since the last valuation in 2014. If the freehold property had not been included at valuation they would have been included under the historical cost convention as follows: |Cost
Accumulated depreciation|**Group**
**2020**
**£000**
**13,416**
**(4,527)**
**8,889**|Group
2019
£000
13,416
(4,259)
9,157|**Company**
**2020**
**£000**
**13,416**
**(4,527)**
**8,889**|Company
2019
£000
13,416
(4,259)
9,157| |---|---|---|---|---| The Mill Hall property, the base for the primary school has been placed on the market for sale in anticipation of the school building a new primary school on the main campus. At the date of signing no offer for the sale has been received. ## **12. Fixed asset investments** |**Group**
**Cost or valuation**
At 11 July 2019
Movement
**At 10 July 2020**
**Net book value**
**At 10 July 2020**
At 10 July 2019|**Other fixed**
**asset**
**investments**
**£000**
**27**
**(27)**
**-**
**-**
27|**Investment**
**in joint**
**ventures**
**£000**
**259**
**(149)**
**110**
**110**
259|**Total**
**£000**
**286**
**(176)**
**110**
**110**
286| |---|---|---|---| Page 30 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **12. Fixed asset investments (continued)** |**Company**
**Cost or valuation**
At 11 July 2019
**At 10 July 2020**
**Net book value**
**At 10 July 2020**
At 10 July 2019|**Investments**
**in**
**subsidiary**
**companies**
**£000**
**25**| |---|---| ||**25**| ||**25**| ||25| Of the above £2 (2019: £2) is an investment in the subsidiary company and £25,000 (2019: £25,000) is investments in the joint venture companies. The company's subsidiary company investment comprises a 100% investment in Mary Hare Services Limited (company no. 03280117), a subsidiary which is used to carry out trading activities including letting the buildings and grounds of Mary Hare, providing catering and other function facilities where required, sale of sculptures, and the provision of training. Its taxable profits are donated to Mary Hare under Gift Aid. |Income
Expenditure
**Profit/(Loss) for the year**
Net assets|**2020**
**£000**
**505**
**(397)**
**108**
**2020**
**£000**
**171**
**171**|2019
£000
683
(416)
267
2019
£000
331
331| |---|---|---| The group's joint venture company investments comprise: - The company's 50% equity investment in Arlington Laboratories Limited, a company incorporated in England and Wales. - The subsidiary's investment in the Hearing aid Repair Shop (UK) Ltd, Mary Hare Total Hearing Solutions Ltd and Mary Hare Hearing Centres LLP. All are incorporated in England and Wales. Page 31 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** |**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 10 JULY 2020**||| |---|---|---| |Share of gross assets
Share of gross liabilities|**2020**
**£000**
**298**
**(188)**
**110**|2019
£000
460
201| |||661| ## **13. Debtors** |Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2020**
**£000**
**92**
**-**
**113**
**133**
**338**|Group
2019
£000
463
-
-
317
780|**Company**
**2020**
**£000**
**89**
**221**
**127**
**131**
**568**|Company
As restated
2019
£000
260
194
-
308| |---|---|---|---|---| |||||| |||||762| Page 32 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **14. Creditors: Amounts falling due within one year** |Trade creditors
Other taxation and social security
Other creditors
Deferred income
Deferred income at 11 July 2019
Resources deferred during the year
Amounts released from previous periods|**Group**
**2020**
**£000**
**222**
**263**
**718**
**1,229**
**2,432**
**Group**
**2020**
**£000**
**1,152**
**(1,152)**
**1,228**
**1,228**|Group
2019
£000
171
308
861
1,152
2,492
Group
2019
£000
1,097
(1,097)
1,152
1,152|**Company**
**2020**
**£000**
**218**
**263**
**718**
**1,188**
**2,387**
**Company**
**2020**
**£000**
**804**
**(804)**
**1,188**
**1,188**|Company
2019
£000
146
261
990
804
2,201
Company
2019
£000
895
(895)
804
804| |---|---|---|---|---| ## **15. Prior year adjustment** The charitable group has adopted an amendment to the Charities SORP on recognition of gift aid donations from a trading subsidiary to a parent charity. Gift aid donations are no longer accrued unless a legal obligation is in existence, and are now recognised on the date of payment. A prior year adjustment is required in the financial statements of the company to restate the opening reserves at 11 July 2018 and the prior year comparative profit and loss account. The net impact on the financial statements is an decrease in the parent charity's profit of £190,799 in 2019. There is no impact on the consolidated financial statements. Page 33 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **16. Statement of funds** ## **Statement of funds - current year** |**Balance at**
**11 July 2019**
**£000**
**Unrestricted**
**funds**
**Designated**
**funds**
Arts and design
centre
**188**
Sixth form
centre fund
**746**
Property grants
fund
**592**
Arlington Arts
Centre
**1,507**
New
primary
school
**-**
School
renovations
**49**
Greenham
Common Fund
**-**
Sundry
donations
**-**
**3,082**
**General funds**
Reserves
**5,521**
Revaluation
reserve
**3,060**
Pension reserve
**(8,633)**
**(52)**
**Total**
**Unrestricted**
**funds**
**3,030**|**Income**
**£000**
**-**
**-**
**-**
**-**
**-**
**-**
**3**
**1**
**4**
**13,106**
**-**
**-**
**13,106**
**13,110**|**Expenditure**
**£000**
**-**
**-**
**-**
**-**
**-**
**-**
**(3)**
**(1)**
**(4)**
**(12,728)**
**-**
**(1,222)**
**(13,950)**
**(13,954)**|**Transfers**
**in/out**
**£000**
**(6)**
**(28)**
**(23)**
**(38)**
**140**
**-**
**-**
**-**
**45**
**53**
**-**
**-**
**53**
**98**|**Gains/**
**(Losses)**
**£000**
**Balance at**
**10 July 2020**
**£000**
**-**
**182**
**-**
**718**
**-**
**569**
**-**
**1,469**
**-**
**140**
**-**
**49**
**-**
**-**
**-**
**-**
**-**
**3,127**
**71**
**6,023**
**-**
**3,060**
**(4,329)**
**(14,184)**
**(4,258)**
**(5,101)**
**(4,258)**
**(1,974)**| |---|---|---|---|---| Page 34 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **16. Statement of funds (continued)** ## **Statement of funds - current year (continued)** |**Balance at**
**11 July 2019**
**£000**
**Restricted**
**funds**
Burwood centre
for childhood
deafness
**16**
Arlington Arts
Centre - car park
**24**
- The Big Lottery
Fund
**153**
- Nordoff
Robbins
**100**
Swimming Pool
**400**
Devolved
formula capital
**72**
Teachers pay
grant
**7**
Teachers
pensions grant
**-**
Murray House
**1,694**
Howard House II
**164**
Other amounts
**31**
**2,661**
**Total of funds**
**5,691**|**Income**
**£000**
**-**
**-**
**-**
**-**
**-**
**96**
**24**
**169**
**-**
**-**
**(10)**
**279**
**13,389**|**Expenditure**
**£000**
**-**
**-**
**-**
**-**
**-**
**(96)**
**-**
**(169)**
**-**
**-**
**-**
**(265)**
**(14,219)**|**Transfers**
**in/out**
**£000**
**(6)**
**(4)**
**(5)**
**(2)**
**(7)**
**-**
**(31)**
**-**
**(39)**
**(4)**
**-**
**(98)**
**-**|**Gains/**
**(Losses)**
**£000**
**Balance at**
**10 July 2020**
**£000**
**-**
**10**
**-**
**20**
**-**
**148**
**-**
**98**
**-**
**393**
**-**
**72**
**-**
**-**
**-**
**-**
**-**
**1,655**
**-**
**160**
**-**
**21**
**-**
**2,577**
**(4,258)**
**603**|**Gains/**
**(Losses)**
**£000**
**Balance at**
**10 July 2020**
**£000**
**-**
**10**
**-**
**20**
**-**
**148**
**-**
**98**
**-**
**393**
**-**
**72**
**-**
**-**
**-**
**-**
**-**
**1,655**
**-**
**160**
**-**
**21**
**-**
**2,577**
**(4,258)**
**603**| |---|---|---|---|---|---| ||||||**2,577**| ||||||**603**| Page 35 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **16. Statement of funds (continued)** ## **Statement of funds - prior year** |**Unrestricted**
**funds**
**Designated**
**funds**
Arts and design
centre
Sixth form
centre fund
Property grants
fund
Arlington Arts
Centre
New primary
school
Sundry
donations
**General funds**
General Funds
Revaluation
reserve
Pension deficit
**Total**
**Unrestricted**
**funds**|Balance at
11 July 2018
£000
194
774
614
1,546
-
-
3,128
5,114
3,060
(6,619)
1,555
4,683|Income
£000
-
-
-
-
49
6
55
12,878
-
-
12,878
12,933|Expenditure
£000
-
-
-
-
-
(6)
(6)
(12,817)
-
(449)
(13,266)
(13,272)|Transfers
in/out
£000
(6)
(28)
(23)
(38)
-
-
(95)
164
-
-
164
69|Gains/
(Losses)
£000
-
-
-
-
-
-
-
182
-
(1,565)
(1,383)
(1,383)|Balance at
10 July 2019
£000
188
746
591
1,508
49
-
3,082
5,521
3,060
(8,633)
(52)
3,030| |---|---|---|---|---|---|---| Page 36 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **16. Statement of funds (continued)** ## **Statement of funds - prior year (continued)** |**Restricted**
**funds**
Burwood centre
for childhood
deafness
Arlington Arts
Centre - car park
- The Big Lottery
Fund
- Nordoff
Robbins
Swimming Pool
Devolved
formula capital
Teachers pay
grant
Murray House
Howard House II
Mansell House
Common Room
Foundation
Expenses
Other amounts
**Total of funds**|Balance at
11 July 2018
£000
23
26
157
103
409
-
-
1,734
168
-
-
31
2,651
7,334|Income
£000
-
-
-
-
-
135
28
-
-
5
5
-
173
13,106|Expenditure
£000
-
-
-
-
-
(63)
(21)
-
-
(5)
(5)
-
(94)
(13,366)|Transfers
in/out
£000
(7)
(2)
(4)
(3)
(9)
-
-
(40)
(4)
-
-
-
(69)
-|Gains/
(Losses)
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,383)|Balance at
10 July 2019
£000
16
24
153
100
400
72
7
1,694
164
-
-
31| |---|---|---|---|---|---|---| |||||||2,661| |||||||5,691| Page 37 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **Arts and design centre** This represents donations received towards the arts and design centre. The fund is classified as a designated fund within unrestricted funds. ## **Sixth form centre fund** This represents donations received towards the sixth form centre. The fund is classified as a designated fund within unrestricted funds. ## **Property grants fund** Mary Hare has received various grants towards property expenditure. The fund is classified as a designated fund within unrestricted funds. ## **Arlington Arts Centre** This represents donations received towards the Arlington Arts Centre. Certain funds are classified as designated funds within unrestricted funds and other funds are classified as restricted funds. In respect of restricted funds, a transfer will be made from restricted to unrestricted funds over the useful economic life of the Centre. ## **Burwood centre for childhood deafness** Mary Hare operates the Burwood centre for childhood deafness, a facility which assesses the level of deafness in young children, while ensuring it maintains its professional independence. The centre exists on donations and invoiced services provided. Any deficit in annual running costs is funded from unrestricted reserves. ## **Swimming pool** This represents donations from the Mary Hare Foundation for the refurbishment of the swimming pool. A transfer will be made from restricted to unrestricted funds over the useful economic life of the asset. ## **Devolved formula capital** This income is to be spent on items deemed as capital by the Department of Education. The balance at the year end represents equipment for senior teachers purchased in previous periods. A transfer is made from restricted to unrestricted funds in respect of depreciation on equipment funded by the grant. ## **Murray House** This represents donations from the Mary Hare Foundation for the building of Murray House. A transfer will be made from restricted to unrestricted funds over the useful economic life of the property. ## **Howard House II** This represents donations from the Mary Hare Foundation for the building of Howard House II. A transfer will be made from restricted to unrestricted funds over the useful economic life of the property. Various other revenue grants and donations have been received during the year. Page 38 ## **MARY HARE (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **17. Summary of funds** ## **Summary of funds - current year** |**Balance at**
**11 July 2019**
**£000**
Designated
funds
**3,082**
General funds
**(52)**
Restricted funds
**2,661**
**5,691**|**Balance at**
**11 July 2019**
**£000**
Designated
funds
**3,082**
General funds
**(52)**
Restricted funds
**2,661**
**5,691**|**Income**
**£000**
**4**
**13,106**
**279**
**13,389**
Income
£000
55
12,878
173
13,106|**Expenditure**
**£000**
**(4)**
**(13,950)**
**(265)**
**(14,219)**
Expenditure
£000
(6)
(13,266)
(94)
(13,366)|**Transfers**
**in/out**
**£000**
**45**
**53**
**(98)**
**-**
Transfers
in/out
£000
(95)
164
(69)
-|**Gains/**
**(Losses)**
**£000**
**Balance at**
**10 July 2020**
**£000**
**-**
**3,127**
**(4,258)**
**(5,101)**
**-**
**2,577**
**(4,258)**
**603**
Gains/
(Losses)
£000
Balance at
10 July 2019
£000
-
3,082
(1,383)
(52)
-
2,661
(1,383)
5,691| |---|---|---|---|---|---| |**Summary of funds - prior year**|||||| |Designated
funds
General funds
Restricted funds|Balance at
11 July 2018
£000
3,128
1,555
2,651
7,334||||| ## **18. Analysis of net assets between funds** ## **Analysis of net assets between funds - current period** |Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities and charges
**Total**|**Restricted**
**funds**
**2020**
**£000**
2,486
-
91
-
-
2,577|**Unrestricted**
**funds**
**2020**
**£000**
10,360
110
4,172
(2,432)
(14,184)
(1,974)|**Total**
**funds**
**2020**
**£000**
**12,846**
**110**
**4,263**
**(2,432)**
**(14,184)**
**603**| |---|---|---|---| Page 39 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **18. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior period** |Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities and charges
**Total**|Restricted
funds
2019
£000
2,554
-
107
-
-
2,661|Unrestricted
funds
2019
£000
10,454
286
3,415
(2,492)
(8,633)
3,030|Total
funds
2019
£000
13,008
286
3,522
(2,492)
(8,633)| |---|---|---|---| ||||5,691| ## **Group and charity restricted funds** |**Restricted funds**
Burwood centre for childhood deafness
Arlington Arts Centre car park
Arlington Arts Centre other costs
**DfE grants**
Devolved Formula Capital
Teachers Pay Grant
**Other funds**
Murray House
Howard House II
Swimming Pool
Other amounts|**Tangible**
**fixed assets**
**2020**
**£000**
10
20
246
276
-
-
-
1,655
160
393
-
2,484|**Other**
**assets**
**(liabilities)**
**2020**
**£000**
-
-
-
**-**
72
-
**72**
-
-
-
21
93|**Total**
**funds**
**2020**
**£000**
**10**
**20**
**246**
**276**
**72**
**-**
**72**
**1,655**
**160**
**393**
**21**
**2,577**|Total
funds
2019
£000
17
22
253| |---|---|---|---|---| |||||292
72
6| |||||78
1,696
164
402
29| |||||2,661| Page 40 ## **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **19. Reconciliation of net movement in funds to net cash flow from operating activities** |Net expenditure for the period (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Loss/(profit) on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Decrease in creditors
Investment income
Pension scheme costs
Movement on joint venture investments
**Net cash provided by operating activities**
**20.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**21.**
**Analysis of changes in net debt**
**At 11 July**
**2019**
**£000**
Cash at bank and in hand
**2,695**
Bank overdrafts repayable on demand
**-**
**2,695**|**Group**
**2020**
**£000**
**(759)**
**425**
**(16)**
**7**
**442**
**(60)**
**(9)**
**1,222**
**176**
**1,428**
**Group**
**2020**
**£000**
**3,885**
**3,885**
**Cash flows**
**£000**
**1,190**
**-**
**1,190**|Group
2019
£000
(78)
422
-
8
(337)
(57)
(6)
449
(44)
357
Group
2019
£000
2,695
2,695
**At 10 July**
**2020**
**£000**
**3,885**
**-**
**3,885**| |---|---|---| Page 41 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **22. Capital commitments** ||**Group**|Group|**Company**|Company| |---|---|---|---|---| ||**2020**|2019|**2020**|2019| ||**£000**|£000|**£000**|£000| |**Contracted for but not provided in these**||||| |**financial statements**||||| |Repairs, maintenance or enhancements to||||| |investment property|**140**|-|**140**|-| ## **23. Pension commitments** The company participates in the Teachers’ Pension Scheme (England and Wales) (the "TPS") and the Royal County of Berkshire Pension Scheme (RCBPS). The company makes contributions to both in accordance with recommended rates. These are both defined benefit schemes. In 2020 the cost of pension contributions was £1,335,953 (2019: £1,183,694) including £623,447 (2018: £454,156) to the TPS and £712,506 (2019: £729,538) to the RCBPS. The schemes are accounted for differently as the assets and liabilities of the RCBPS scheme can be separately identified as belonging to Mary Hare. This is not the case for the TPS scheme and only summary information for the scheme as a whole is provided. ## **The Teachers’ Pension Scheme** The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. ## **Valuation of the Teachers’ Pension Scheme** The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are: - employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy) - total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million - the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%. The next valuation result is due to be implemented from 1 April 2023. Page 42 **MARY HARE** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **23. Pension commitments (continued)** The Royal County of Berkshire Pension Scheme The group operates a defined benefit pension scheme, which has been closed to new members from 1 January 2019. The last formal valuation on the assets and liabilities of the whole scheme was performed on 31 March 2019 and updated to 10 July 2020, identifying specific assets and liabilities relating to Mary Hare, by a qualified independent actuary. The major assumptions used by the actuary were: Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages): |Discount rate
Future salary increases
Future pension increases
Mortality rates (in years)
- for a male aged 65 now
- at 65 for a male aged 45 now
- for a female aged 65 now
- at 65 for a female aged 45 now|**At 10 July**
**2020**
**%**
**1.55**
**2.75**
**2.00**
**At 10 July**
**2020**
**Years**
**21.5**
**22.9**
**24.1**
**25.5**|At 10 July
2019
%
2.35
2.75
2.25| |---|---|---| |||At 10 July
2019
Years
22.0
23.7
24
25.8| The group's share of the assets in the scheme was: |Equities
Other bonds
Property
Cash and other liquid assets
Target return portfolio
Longevity insurance
Commodities
Infrastructure
**Total fair value of assets**|**At 10 July**
**2020**
**£000**
**6,870**
**1,542**
**1,671**
**1,116**
**360**
**(700)**
**44**
**862**
**11,765**|At 10 July
2019
£000
6,372
1,799
1,617
795
570
(647)
92
1,103
11,701| |---|---|---| Page 43 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **23. Pension commitments (continued)** The amounts recognised in the Consolidated statement of financial activities are as follows: |Current service cost
Net interest on the defined liability (asset)
Administrative expenses
**Total amount recognised in the Consolidated statement of financial**
**activities**|**2020**
**£000**
**1,351**
**193**
**11**
**1,555**|2019
£000
1,393
179
11| |---|---|---| |||| |||1,583| Movements in the present value of the defined benefit obligation were as follows: |Opening defined benefit obligation
Contributions by scheme participants
Actuarial losses
Benefits paid
Current service cost
Interest cost
**Closing defined benefit obligation**|**2020**
**£000**
**20,334**
**235**
**3,807**
**(256)**
**1,351**
**478**| |---|---| ||| ||**25,949**| Movements in the fair value of the group's share of scheme assets were as follows: |Opening fair value of scheme assets
Interest income
Actuarial (losses)/gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Administration expenses
**Closing fair value of scheme assets**|**2020**
**£000**
**11,701**
**(237)**
**(522)**
**855**
**235**
**(256)**
**(11)**| |---|---| ||| ||**11,765**| Page 44 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **24. Mary Hare Foundation** As noted in the Report of the Board of Governors, Mary Hare is associated with the Mary Hare Foundation, a charitable trust (Registration No. 1002680). The purpose of the Mary Hare Foundation is to raise significant funding for major capital and other projects undertaken by Mary Hare. The Foundation financial statements are made up to 31 July. Its net assets at 31 July 2020 were £1,043,081 (2019: £806,741). Total funds raised in the year to 31 July 2020 were £700,709 (2019: £312,981). Mary Hare bears the administration costs of the Foundation. In the year to 10 July 2020 total costs were £85,483 (2019: £89,264). Further details of the Foundation can be obtained from Arlington Manor, Snelsmore Common, Newbury. During the year the Foundation has donated funds of £10,000 (2019: £10,460) to Mary Hare. ## **25. Arlington Laboratories Limited** Mary Hare has a 50% interest in this company. The investment takes the form of issued share capital of £25,000. The company manufactures and sells earmoulds on a commercial basis, mainly supplying NHS Trusts. Arlington Laboratories Limited was incorporated on 5 February 1997. It prepares accounts to 31 December. The information provided in respect of Mary Hare's share of retained profit, assets and liabilities is drawn from the statutory accounts for the year ended 31 December 2019 and management accounts for the period 1 January 2020 to 30 June 2020. During the year Mary Hare received £26,500 rent (2019: £36,552), £15,000 (2019: £15,000) as a management charge and a Gift aid donation of £50,000 (2019: £35,000) from Arlington Laboratories Limited. Page 45 **MARY HARE** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 10 JULY 2020** ## **26. Subsidiary joint venture investments** Mary Hare Services Ltd has investments in three other entities. Two are incorporated as limited companies in England and Wales, the Hearing Aid Repair Shop (UK) Ltd and Mary Hare Total Hearing Solutions Ltd. During the year ended 10 July 2008 a limited liability partnership venture was set up, Mary Hare Hearing Centres LLP. All are jointly managed and controlled by Mary Hare Services Ltd and a third party, with the risks and rewards of ownership split equally between these two parties. Therefore, in accordance with relevant accounting standards all have been treated as 50% joint ventures of Mary Hare Services Ltd. ## **The Hearing Aid Repair Shop (UK) Ltd** Mary Hare Services Ltd has a 50% interest in this company by way of owning issued share capital of £1. The Hearing Aid Repair Shop (UK) Ltd was incorporated on 5 January 2001 with its principal activity being the repair of hearing aids. It prepares accounts to 31 December. For the year ended 31 December 2019 the company reported a profit of £8,628 (2018: £9,298) and as at 31 December 2019 had net assets of £48,420 (2018: £49,786). ## **Mary Hare Total Hearing Solutions Ltd** During the year ended 10 July 2008 the company transferred all assets and liabilities to the new joint venture partnership, Mary Hare Hearing Centres LLP, and is dormant, with net liabilities of £45,448 (2018: £45,448). ## **Mary Hare Hearing Centres LLP** Mary Hare Hearing Centres LLP commenced trading on 1 January 2008 with its principal activity being the assessment of hearing and provision of aids for the hearing impaired. It prepares accounts to 31 December. For the year ended 31 December 2019 the LLP reported a profit of £89,274 (2018: £74,139) and as at 31 December 2019 had net assets of £322,654 (2018: £233,380). Mary Hare Services Ltd has an interest in Mary Hare Hearing Centres LLP by way of a loan. As at 10 July 2020 the loan was £45,197 net of a £75,500 provision. Page 46