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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 03391872 (England and Wales) REGISTERED CHARITY NUMBER: 1063815

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR

KEREM SCHOOLS

Raffingers LLP, Statutory Auditor 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

KEREM SCHOOLS

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 August 2023

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 21

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

REPORT OF THE TRUSTEES for the year ended 31 August 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

a. Policies and objectives

The Charity was founded in June 1997 to take over the operation of a kindergarten (Kerem House) and a primary school known as "Kerem Schools", a modern orthodox Jewish day school. It commenced its operation on 1 September 1997 when it acquired the assets and liabilities of the Trust which had previously operated the Kerem School.

  1. The principal activity of the charity is providing education at primary level.

  2. The promotion and development of a balanced modern orthodox education for Jewish children is a cornerstone of the charity.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.

b. Strategies for achieving objectives

The charity ensures that its resources are focused towards the recruitment and retention of high quality staff ensuring that the ethos of the school is continued and that the children receive a very good education within a modern orthodox background.

c. Activities undertaken to achieve objectives

The promotion and development of a balanced orthodox education for Jewish children is the keystone of the charity. This is the main activity which is undertaken to further the Charity's purposes for the public benefit.

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

The charity operates the school known as Kerem school mainly for the benefit of local children.

Page 1

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

REPORT OF THE TRUSTEES

for the year ended 31 August 2023

ACHIEVEMENT AND PERFORMANCE

Achievements and Performance

a. Main achievements of the Charity

The school continues to operate well with mostly full classes and expenses well controlled.

During the year, two major improvement projects were undertaken - new playground equipment for the early years unit and the building of a STEAM (science, technology, art, engineering and maths) Lab. The lab, which opened in September 2023, greatly enhances the childrens' learning with many opportunities to use new and different equipment. Both of these were well received by the staff and the pupils.

b. Key performance indicators

The key performance indicators used by the charity are:

c. Review of activities

The charity continued in its pursuit in the provision of an exceptional orthodox education, and spent £2,341,489 directly towards that end (2022- £2,047,764). Of this amount, £1,662,235 (2022- £1,431,603) related directly to staff. The charity made a small surplus and was able to increase its net reserves to £910,080 (2022- £857,742).

d. Factors relevant to achieve objectives

The main factors relevant to the Charity's ability to achieve its objectives are as follows:

e. Fundraising activities and income generation

The main income generation of the school is via fees. During the year there was also a campaign to raise funds for the refurbishment of the Early Years Unit playground and the STEAM Lab referred to above.

f. Investment policy and performance

Any surplus funds at any time are held in an interest bearing deposit account in order to generate funds to help fund charitable activities and any future projects.

FINANCIAL REVIEW

Investment policy and objectives

Under its Memorandum of Association, the charity has the power to invest in any way the trustees wish.

Reserves policy

The reserves policy of the school is driven by the need to ensure the ability to continue providing a modern Jewish education to the pupils. Reports following recent regulatory inspections have been excellent. The trustees continue to be fortified in the knowledge that Kerem Schools offer high quality education in a stimulating modem environment.

The trustees have established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on activities and receiving resources through donations and parental contributions. The trustees consider the ideal level of reserves at 31 August 2023 would be three months of resources which would be approximately £600,000.

The free reserves (total reserves less restricted funds and fixed assets) as at 31 August 2023 were £772,921.

FUTURE PLANS

The charity plans to run the school at its current pupil levels continuing to ensure the current high standards at the school.

Page 2

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

REPORT OF THE TRUSTEES for the year ended 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee without share capital and incorporated on 25 June 1997 and registered as a charity on 6 August 1997.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

Recruitment and appointment of new trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. All new trustees are subject to a recruitment and induction process and are selected with a view to ensuring that the board has an appropriate balance of experience relevant to Kerem Schools strategic and operational requirements.

Trustees may be appointed by the existing trustees at any time, either to fill a casual vacancy or as an addition to the existing trustees. Any trustees so appointed will hold office only until the next Annual General Meeting and will then be eligible for re-election. No trustee had any beneficial interest in any contract with the charitable entity during the year.

Organisational structure

The school was run during the year by an excellent team of teachers led by Naomi Simon. The Governors determine the general policy of the School. The day to day running of the School is delegated to the Head, supported by senior staff.

The Charity and its school are administered by its board of trustees and various sub-committees including the board of governors. The major risks to which the charity is exposed have been reviewed by the trustees and systems are in place to minimise these risks.

Induction and training of new trustees

All new trustees are subject to a recruitment and induction process and are selected with a view to ensuring that the board has an appropriate balance of experience relevant to Kerem Schools strategic and operational requirements.

Page 3

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

REPORT OF THE TRUSTEES for the year ended 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management

Principal risks and uncertainties

The Trustees regularly undertake a review of the major risks to which the Charity is exposed, and systems designed to mitigate those risks are considered on an ongoing basis.

The Trustees recognise the absolute necessity of ensuring the protection and safety of all those that the charity serves. This means that the trustees, employees of the school and all those who work or volunteer for the school and work with children must obtain clearance from the Disclosure and Barring Service. The school has developed a safeguarding policy and one of the trustees is responsible for ensuring this policy is adhered to. Safeguarding training is compulsory for all staff.

The key risks identified by management are as follows:

~ Reputation -The school's success is built on its reputation for the education and well being of pupils. Risk is managed through various policies including safeguarding, staff recruitment and health and safety. The management of the school are continually investigating additional ways to teach and implementing them as soon as they are available.

~ Funding -The ability for the school to continue is reliant on pupil fees and the ability of the school to pay bills as they fall due. The risk is managed by controls put in place by the management and trustees and a modern orthodox ethos in the school.

Financial risk management objectives and policies

The trustees are responsible for the management of risks faced by the school. The governors routinely consider any perceived risks faced by the school and are assisted in this by the head and other key members of the schools senior management team. Key controls used to identify and control financial risks during the year include:

~ Formal agenda items for governors committee meetings.

~ Established organisational structure and lines of reporting.

~ Maintaining appropriate insurance.

~ Regular review of budgets against actual performance.

~ Comprehensive strategic planning, budgeting and management accounting.

Principal funding

The principal source of funding is fees for the school year.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03391872 (England and Wales)

Registered Charity number

1063815

Registered office

Kerem School Norrice Lea London N2 0RE

Trustees

Mrs S Abrahams (appointed 17.10.23) Mr A D Miller Mr J D Taylor Ms S Leek Trustee (resigned 17.10.23) Mr D Lichtenstein Trustee (resigned 29.3.23)

Company Secretary

Mr A D Miller

Senior Statutory Auditor

Mr Yedidya Zaiden, FCCA

Page 4

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

REPORT OF THE TRUSTEES for the year ended 31 August 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Raffingers LLP, Statutory Auditor 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

PUBLIC BENEFIT REPORT

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit and 'The Advancement of Religion for the Public Benefit' in particular, when reviewing the aim and objectives and in planning the charity's future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives set.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Kerem Schools for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Raffingers LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 24 May 2024 and signed on its behalf by:

Mr A D Miller - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KEREM SCHOOLS

Opinion

We have audited the financial statements of Kerem Schools (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KEREM SCHOOLS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KEREM SCHOOLS

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

To address the risk that revenue could be misstated due to fraud. we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KEREM SCHOOLS

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Yedidya Zaiden, FCCA (Senior Statutory Auditor) for and on behalf of Raffingers LLP, Statutory Auditor 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

24 May 2024

Page 9

KEREM SCHOOLS

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 August 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Provision of education
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
5
Provision of education
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
12,079
2,312,314
14,578
17,500
2,356,471
2,335,652
20,819
800,505
821,324		 Restricted
funds
£
36,944
412
-
-
37,356
5,837
31,519
57,237
88,756		 2023
Total
funds
£
49,023
2,312,726
14,578
17,500
2,393,827
2,341,489
52,338
857,742
910,080		 2022
Total
funds
£
54,308
2,192,807
500
-
2,247,615
2,047,764
199,851
657,891
857,742

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

KEREM SCHOOLS (REGISTERED NUMBER: 03391872)

BALANCE SHEET 31 August 2023

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
14
NET ASSETS
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
48,403
316,343
1,901,526
2,217,869
(1,046,744)
1,171,125
1,219,528
(398,204)
821,324		 Restricted
funds
£
85,683
-
3,073
3,073
-
3,073
88,756
-
88,756		 2023
Total
funds
£
134,086
316,343
1,904,599
2,220,942
(1,046,744)
1,174,198
1,308,284
(398,204)
910,080
821,324
88,756
910,080		 2022
Total
funds
£
24,845
235,482
1,872,274
2,107,756
(904,655)
1,203,101
1,227,946
(370,204)
857,742
800,505
57,237
857,742

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

The financial statements were approved by the Board of Trustees and authorised for issue on 24 May 2024 and were signed on its behalf by:

Mr A D Miller - Trustee

The notes form part of these financial statements

Page 11

KEREM SCHOOLS

CASH FLOW STATEMENT for the year ended 31 August 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
115,140
(1,383)
113,757
(117,010)
21,000
14,578
(81,432)
32,325
1,872,274
1,904,599		 2022
£
583,060
(1,406)
581,654
-
-
517
517
582,171
1,290,103
1,872,274

The notes form part of these financial statements

Page 12

KEREM SCHOOLS

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2023 2022
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 52,338 199,851
Adjustments for:
Depreciation charges 4,269 11,336
Profit on disposal of fixed assets (17,500) -
Interest received (14,578) (517)
Interest paid 1,383 1,406
- 2,486
(Increase)/decrease in debtors (80,861) 224,988
Increase in creditors 170,089 143,510
Net cash provided by operations 115,140 583,060

2.

ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1.9.22
£
1,872,274
1,872,274
1,872,274		 Cash flow
£
32,325
32,325
32,325		 At 31.8.23
£
1,904,599
1,904,599
1,904,599

The notes form part of these financial statements

Page 13

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Legal status of the Charity

The charity is a private company limited by guarantee incorporated in England and Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Income

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

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Expenditure

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

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

All expenditure is inclusive of irrecoverable VAT.

Charitable activities

The cost of charitable activities comprises those incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to the strategic management of the charity.

continued...

Page 14

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

1. ACCOUNTING POLICIES - continued

Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

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

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

Depreciation is provided on the following bases:

Long-term leasehold property - Over lease term Improvements to property- 20% per annum on reducing balance (not in first year) Playground equipment- 20% per annum on reducing balance (not in first year) Motor vehicles - 25% per annum on reducing balance

Taxation

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors 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 settlement can be estimated reliably.

Financial instruments

continued...

Page 15

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

1. ACCOUNTING POLICIES - continued

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

Critical accounting estimates and judgements

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. The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies.

Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Provision of education
Provision of education
Grants
Provision of education		 2023
£
49,023
2023
£
14,578
2023
£
2,312,726
-
2,312,726		 2022
£
54,308
2022
£
500
2022
£
2,189,594
3,213		 2022
£
54,308
2022
£
500
2,192,807

continued...

Page 16

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

5. CHARITABLE ACTIVITIES COSTS

Provision of education
6.
SUPPORT COSTS
Provision of education
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Surplus on disposal of fixed assets
8.
AUDITORS' REMUNERATION
Fees payable to the charity's auditors for the audit of the charity's
statements		 Direct
Costs
£
2,071,266
Management
£
255,223
financial		 Support
costs (see
note 6)
£
270,223
Governance
costs
£
15,000
2023
£
4,269
(17,500)
2023
£
11,400		 Totals
£
2,341,489		 Totals
£
2,341,489		 Totals
£
2,341,489
Totals
£
270,223
2022
£
11,336
-
2022
£
6,000

There were fees payable to Raffingers LLP of £3,600 for non audit services.

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
1,264,348
116,846
281,041
1,662,235		 2022
£
1,163,446
98,806
169,351
1,431,603

continued...

Page 17

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

10. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

Teaching
Administration and support		 2023
40
8
48		 2022
40
8
48

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£70,001 - £80,000
£80,001 - £90,000		 2023
-
1
1		 2022
1
-
1

11. TANGIBLE FIXED ASSETS

COST
At 1 September 2022
Additions
Disposals
At 31 August 2023
DEPRECIATION
At 1 September 2022
Charge for year
Eliminated on disposal
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022		 Improvements
Long
to
Playground
leasehold
property
equipment
£
£
£
580,250
-
33,351
-
49,084
67,926
-
-
-
580,250
49,084
101,277
580,250
-
12,006
-
-
4,269
-
-
-
580,250
-
16,275
-
49,084
85,002
-
-
21,345		 Motor
vehicles
£
30,000
-
(30,000)
-
26,500
-
(26,500)
-
-
3,500		 Totals
£
643,601
117,010
(30,000)
730,611
618,756
4,269
(26,500)
596,525
134,086
24,845

continued...

Page 18

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
£
Trade debtors
261,315
Other debtors
249
Prepayments and accrued income
54,779
316,343
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
£
Trade creditors
57,011
Social security and other taxes
-
Other creditors
76,586
Accruals and deferred income
782,202
Accrued expenses
130,945
1,046,744
14.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Deposits
398,204
15.
MOVEMENT IN FUNDS
Net
movement
At 1.9.22
in funds
£
£
Unrestricted funds
General fund
800,505
20,819
Restricted funds
Big grant
53,808
6,875
Steam room
-
25,000
Staff gifts
-
112
School equipment
468
(468)
Sponsored readings
1,163
-
STP grant
798
-
Bikes
1,000
-
57,237
31,519
TOTAL FUNDS
857,742
52,338		 2022
£
205,227
-
30,255
235,482
2022
£
53,228
21,479
76,980
728,902
24,066
904,655
2022
£
370,204
At
31.8.23
£
821,324
60,683
25,000
112
-
1,163
798
1,000
88,756
910,080

continued...

Page 19

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

15. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Big grant
IT equipment
Sports Equipment
Steam room
Staff gifts
School equipment
TOTAL FUNDS		 Incoming
resources
£
2,356,471
6,875
5,000
69
25,000
412
-
37,356
2,393,827		 Resources
expended
£
(2,335,652)
-
(5,000)
(69)
-
(300)
(468)
(5,837)
(2,341,489)		 Movement
in funds
£
20,819
6,875
-
-
25,000
112
(468)
31,519
52,338

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS		 At 1.9.21
£
654,430
3,461
657,891
follows:
Incoming
resources
£
2,193,339
54,276
2,247,615		 Net
movement
in funds
£
146,075
53,776
199,851
Resources
expended
£
(2,047,264)
(500)
(2,047,764)		 At
31.8.22
£
800,505
57,237
857,742
Movement
in funds
£
146,075
53,776
199,851

Unrestricted funds represent funds available to the trustees for the general purposes of the charity.

Restricted funds

During the year, the charity received donations and grants to be applied for specific purposes as listed below:

continued...

Page 20

KEREM SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

15. MOVEMENT IN FUNDS - continued

Big grant - This fund is used for the development of a new playground. IT equipment - This fund is used for the purchase of school IT equipment. Steam room - This fund is used for a classroom refurbishment. Staff gifts - This fund is used for staff gifts and refreshments. School equipment - This fund is used for the purchase of school equipment. Sponsored readings - This fund is used for sponsored readings.

STP Grant - This fund is used for a school travel plan which encourages the children to walk to school. Bikes - This is a fund used to buy balance bikes for the Early Years Unit.

16. RELATED PARTY DISCLOSURES

There were no related party transactions for the year under review. During the previous year, the charity received fee income from certain of the trustees of £7,940.

17. AUDITOR LIABILITY LIMITATION AGREEMENT

The charity has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the year ended 31 August 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements.

18. RETIRED BENEFIT SCHEMES

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £281,041 (2022: £169,351).

The charity has 2 pension schemes, Teachers Pension Scheme (TPS) for teachers and Nest for other staff.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the group in such a way that the pension cost is at a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying asset to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purpose and the contributions recognised in the period to which they relate.

Page 21