**Charity Registration No. 1068650**
**THE BIRKENHEAD SCHOOL FOUNDATION TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs L A C Dodd BA (Hons) Chartered|
|---|---|
||FCSI (Chair)|
||Mr M R Feeny LLB|
||Mr H E R FitzHerbert BA (Hons)|
||PGCE|
||Dr J K Moore OBE FRCA MBA|
||Mr E N Rice FRICS|
||Mrs Kirsten Pankhurst|
||Mr P R Vicars MA|
||Mr A J Cross LLB (Hons)|
||Mr M R Cashin MA|
|**Charity number**|1068650|
|**Auditor**|McLintocks (NW) Limited|
||46 Hamilton Square|
||Birkenhead|
||Wirral|
||Merseyside|
||CH41 5AR|
|**Bankers**|National Westminster Bank Plc|
||2 Grange Road West|
||Birkenhead|
||Wirral|
||Merseyside|
||CH41 4DF|
|**Solicitors**|DWF LLP|
||5 St Paul's Square|
||Old Hall Street|
||Liverpool|
||Merseyside|
||L3 9AE|
|**Investment advisors**|Rathbone Investment Management|
||Port of Liverpool|
||Pier Head|
||Liverpool|
||Merseyside|
||L3 1NW|
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Statement of trustees' responsibilities|3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Statement of financial position|8|
|Statement of cash flows|9|
|Notes to the financial statements|10 - 19|
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The trustees present their report and financial statements for the year ended 31 August 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The Trust's stated objects are;
'To assist and support Birkenhead School to further its charitable objects'
(The above is extracted from the Declaration of Trust).
It is currently envisaged that the Trust will assist the School in various ways:
By giving money to the School for the provision of bursaries
By providing money to the School for capital and special projects; such money to be as a gift or loan.
Money for bursaries comes from the Trust's income; money for capital or special projects may be from income or from the Trust's capital.
The Trust seeks to increase its income and capital over time, so that it can provide increased levels of support to the School.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The Trust has continued its aims of supporting the School throughout the year, and has granted a further £135,000 (2018-£144,794) to facilitate the provision of school bursaries and other necessary expenditure. This is in addition to restricted donations of £46,333 (2018 - £49,944).
The trustees consider the value of the investment property remains unchanged at £330,000, however the Trustees are actively exploring the building of an extension to the property at the request of the longstanding tenant which is agreed and calculated to result in an increased rental income and property value. At the year end, relevant agreements to lease were in negotiation before any tender / contract process for the construction.
## **Financial review**
The Trust had income during the year of £336,922 (2019 £718,395) and expenditure of £237,145 (2019 £225,081) which together with gain on investments of £238,390 (2019 £85,031) left £338,167 to be added to the reserves brought forward of £4,987,4023 leaving funds available to be carried forward of £5,325,569.
Investment income from its reserves is used to provide fee assistance to pupils and thereby to widen access to the School. More fee assistance is provided by the School than can be funded by the income of the Foundation Trust and it is therefore the policy of the Trustees to seek to increase the capital held by the Trust.
The Trustees have a reasonable expectation that the Trust has adequate resources to continue to fulfil its aims for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
- 1 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
Trustees have an investment policy which aims to secure a balance of income and capital growth. Professional investment managers are employed.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Trust aims to increase its level of income, both through encouraging donations and from sound management of its capital. It will respond, on request, to the strategic development needs of the School, considering how it can best support the School's charitable objectives.
## Covid-19
At present there is an unprecedented degree of uncertainty regarding the longer-term effects of the Covid-19 crisis. In the short term it is anticipated that the investment income of the charity may be reduced, however the board are continually being updated by the investment advisors and appropriate action taken to mitigate this effect.
## **Structure, governance and management**
The Birkenhead School Foundation Trust (the Trust) is a registered charity (charity no. 1068650). It is under the effective control of Birkenhead School (the School), a company limited by guarantee (company no. 4492250) and a registered charity (charity no. 1093419).
Trustees, who are appointed by the governors of the School are as listed. They are drawn from current or former governors of the School, senior executives of the School and a representative of the Old Birkonian Society.
Trustees delegate the day to day running of the Trust's business to their Secretary, who is the Bursar of the School.
The trustees who served during the year and up to the date of signature of the financial statements were: Mrs L A C Dodd BA (Hons) Chartered FCSI
(Chair) Mr M R Feeny LLB Mr H E R FitzHerbert BA (Hons) PGCE Dr J K Moore OBE FRCA MBA Mr Edward Rice FRICS Mrs Kirsten Pankhurst Mr P R Vicars MA Mr A J Cross LLB (Hons) Mr M R Cashin MA
Trustees are conscious of the need to keep within its number a wide range of skills and experience. New trustees are offered training on appointment and training for all Trustees is arranged from time to time.
The trustees' report was approved by the Board of Trustees.
.............................. **Mrs L A C Dodd BA (Hons) Chartered FCSI (Chair)** Trustee Dated: .........................
- 2 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 3 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **Opinion**
We have audited the financial statements of The Birkenhead School Foundation Trust (the ‘charity’) for the year ended 31 August 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the 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, 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 charity’s affairs as at 31 August 2020 and of its incoming resources and application of resources, 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 Charities Act 2011.
## **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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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**
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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’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.
## **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 auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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.
- 4 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 an auditor's report 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
- 5 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **McLintocks (NW) Limited**
.........................
**Chartered Accountants Statutory Auditor**
46 Hamilton Square Birkenhead Wirral Merseyside CH41 5AR
McLintocks (NW) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
- 6 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
162,064
15,214
Other trading activities
**4**
1,878
10,901
Investments
**5**
143,664
3,201
**Total income**
307,606
29,316
**Expenditure on:**
Raising funds
**6**
35,367
-
Charitable activities
**8**
138,325
63,453
**Total resources**
**expended**
173,692
63,453
Net gains/(losses) on
investments
**12**
238,390
-
**Net movement in funds**
372,304
(34,137)
Fund balances at 1
September 2019
4,836,033
151,369
**Fund balances at 31**
**August 2020**
5,208,337
117,232|**Total** Unrestricted
funds
**2020**
2019
**£**
**£**
177,278
537,092
12,779
2,549
146,865
142,570
336,922
682,211
35,367
37,690
201,778
140,266
237,145
177,956
238,390
85,031
338,167
589,286
4,987,402
4,246,747
5,325,569
4,836,033|Restricted
funds
2019
**£**
21,049
11,170
3,965
36,184
-
47,125
47,125
-
(10,941)
162,310
151,369|Total
2019
**£**
558,141
13,719
146,535|
|---|---|---|---|
||||718,395|
||||37,690|
||||187,391|
||||225,081|
||||85,031|
||||578,345
4,409,057|
||||4,987,402|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 AUGUST 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
Investment properties
**14**
Investments
**15**
**Current assets**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**17**
Net current (liabilities)/assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**18**
Unrestricted funds|**2020**
**£**
**£**
55,024
332,918
4,956,186
5,344,128
14,587
154,774
169,361
(187,920)
(18,559)
5,325,569
117,232
5,208,337
5,325,569|**2019**
**£**
**£**
58,052
332,918
4,575,583
4,966,553
142,497
68,667
211,164
(190,315)
20,849
4,987,402
151,369
4,836,033
4,987,402|**2019**
**£**
**£**
58,052
332,918
4,575,583
4,966,553
142,497
68,667
211,164
(190,315)
20,849
4,987,402
151,369
4,836,033
4,987,402|
|---|---|---|---|
||||4,966,553
20,849|
||||4,987,402|
||||151,369
4,836,033|
||||4,987,402|
The financial statements were approved by the Trustees on .........................
.............................. Mrs L A C Dodd BA (Hons) Chartered FCSI (Chair) **Trustee**
- 8 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**21**
**Investing activities**
Purchase of investment property
Purchase of other investments
Proceeds on disposal of other investments
Interest received
**Net cash generated from/(used in)**
**investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**2019**
**£**
**£**
**£**
**£**
81,455
339,669
-
(2,918)
(1,156,605)
(1,167,920)
1,014,392
586,193
146,865
146,535
4,652
(438,110)
-
-
86,107
(98,441)
68,667
167,108
154,774
68,667|
|---|---|
- 9 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **Charity information**
The Birkenhead School Foundation Trust is an unincorporated charity established under a trust dated 23 January 1998 with deeds of variation dated 26 November 2001 and 28 October 2002.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 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.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
- 10 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **1.5 Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 4% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## **1.8 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.9 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 11 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **1.11 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 12 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
162,064
15,214
Legacies receivable
-
-
162,064
15,214|**Total** Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
177,278
526,092
21,049
-
11,000
-
177,278
537,092
21,049|Total
2019
£
547,141
11,000|
|---|---|---|
|||558,141|
## **4 Other trading activities**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Income from energy
created
1,878
-
Fundraising events
-
10,901
Other trading activities
1,878
10,901|**Total** Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
1,878
2,549
-
10,901
-
11,170
12,779
2,549
11,170|Total
2019
£
2,549
11,170|
|---|---|---|
|||13,719|
## **5 Investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Rental income
27,500
-
Income from listed
investments
115,695
3,201
Interest receivable
469
-
143,664
3,201|**Total** Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
27,500
27,500
-
115,695
114,603
3,965
469
467
-
146,865
142,570
3,965|Total
2019
£
27,500
114,603
467|
|---|---|---|
|||146,535|
- 13 -
## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **6 Raising funds**
|**7**
**8**|**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Trading costs
Depreciation and impairment
3,028
3,028
Investment management
32,339
34,662
35,367
37,690
**Charitable activities**
**Grants**
**payable**
**Grants**
**payable**
**2020**
**2019**
**£**
**£**
Charitable donations
16,622
-
Grant funding of activities (see note 8)
181,831
183,866
Share of support costs (see note 9)
175
175
Share of governance costs (see note 9)
3,150
3,350
201,778
187,391
**Analysis by fund**
Unrestricted funds
138,325
140,266
Restricted funds
63,453
47,125
201,778
187,391
**Grants payable**
**2020**
**2019**
**£**
**£**
Grants to institutions:
Birkenhead School
181,831
181,334
Other
-
2,532|
|---|---|
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## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **9 Support costs**
|Sundries
Audit fees
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
175
-
-
3,150
175
3,150
175
3,150|**2020** Support costs Governance
costs
**£**
£
£
175
175
-
3,150
-
3,350
3,325
175
3,350
3,325
175
3,350|2019
£
175
3,350|
|---|---|---|---|
||||3,525|
||||3,525|
Governance costs includes payments to the auditors of £3,150 (2019- £3,350) for audit fees.
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **11 Employees**
There were no employees during the year.
## **12 Net gains/(losses) on investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Revaluation of investments|312,914|96,553|
|Gain/(loss) on sale of investments|(74,524)|(11,522)|
||238,390|85,031|
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## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**13**|**Tangible fixed assets**||
|---|---|---|
|||**Fixtures and fittings**|
|||**£**|
||**Cost**||
||At 1 September 2019|75,704|
||At 31 August 2020|75,704|
||**Depreciation and impairment**||
||At 1 September 2019|17,652|
||Depreciation charged in the year|3,028|
||At 31 August 2020|20,680|
||**Carrying amount**||
||At 31 August 2020|55,024|
||At 31 August 2019|58,052|
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## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **14 Investment property**
|**Investment property**||
|---|---|
||**2020**|
||**£**|
|**Fair value**||
|At 1 September 2019 and 31 August 2020|332,918|
Investment property comprises a commercial property let to Specsavers on a 15 year lease, which commenced in 2003. The fair value of the investment property has been arrived at on the basis of a valuation carried out at December 2012 by Smith & Sons Property Consultants, who are not connected with the charity. The valuation was made in accordance with guidelines issued by the Royal Institution of Chartered Surveyors.
The charity is currently re-negotiating this lease for a further long term period after extending the property. As part of this process the property will be professionally revalued during the year to 31 August 2021.
## **15 Fixed asset investments**
|**Listed**
**investments**
**£**
**Cost or valuation**
At 1 September 2019
4,294,483
Additions
1,156,605
Valuation changes
312,914
Disposals
(999,351)
At 31 August 2020
4,764,651
**Carrying amount**
At 31 August 2020
4,764,651
At 31 August 2019
4,294,483
Investments at fair value comprise:
Government stocks
United Kingdom equities and funds
Overseas euities and funds|**Cash in**
**portfolio**
281,100
-
-
(89,565)
191,535
191,535
281,100
**2020**
**£**
208,568
1,733,435
2,822,648
4,764,651|**Total**
**£**
4,575,583
1,156,605
312,914
(1,088,916)
4,956,186
4,956,186
4,575,583
**2019**
**£**
214,710
2,390,413
1,689,360
3,897,513|
|---|---|---|
The historical cost of the investments is £3,961,184 (2019 £3,768,638)
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## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **15 Fixed asset investments**
## **16 Debtors**
|**16**
**Debtors**|||
|---|---|---|
|**Amounts falling due within one year:**
Other debtors
**17**
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income|**2020**
**£**
14,587
**2020**
**£**
239
177,231
10,450
187,920|**2019**
**£**
142,497|
|||**2019**
**£**
-
178,833
11,482|
|||190,315|
## **18 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 September**
**2018**
**£**
Bursaries
161,510
Fundraising
activities
800
162,310|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**1 September**
**2019**
**£**
**£**
**£**
25,014
(46,332)
140,192
11,170
(793)
11,177
36,184
(47,125)
151,369|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
18,415
(46,831)
10,901
(16,622)
29,316
(63,453)|**Balance at**
**31 August**
**2020**
**£**
111,776
5,456|
|---|---|---|---|
||||117,232|
## **19 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Fund balances at 31 August 2020 are represented by:
Tangible assets
55,024
-
Investment properties
332,918
-
Investments
4,838,954
117,232
Current assets/(liabilities)
(18,559)
-
5,208,337
117,232|**Total**
**£**
55,024
332,918
4,956,186
(18,559)|
|---|---|
||5,325,569|
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## **THE BIRKENHEAD SCHOOL FOUNDATION TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **20 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
## **21 Cash generated from operations**
||||
|---|---|---|
|**Cash generated from operations**|**2020**|**2019**|
||**£**|**£**|
|Surplus for the year|338,167|578,345|
|Adjustments for:|||
|Investment income recognised in statement of financial activities|(146,865)|(146,535)|
|Loss on disposal of investments|74,524|11,522|
|Fair value gains and losses on investments|(312,914)|(96,553)|
|Depreciation and impairment of tangible fixed assets|3,028|3,028|
|Movements in working capital:|||
|Decrease in debtors|127,910|268|
|(Decrease) in creditors|(2,395)|(10,406)|
|**Cash generated from operations**|81,455|339,669|
22 **Analysis of changes in net funds** The charity had no debt during the year.
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