REGISTERED COMPANY NUMBER: 04234021 (England and Wales) REGISTERED CHARITY NUMBER: 1087799
REPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021
FOR
WISBECH EDUCATIONAL FOUNDATION
Wheelers
Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
WISBECH EDUCATIONAL FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 4 |
| Report of the Independent Auditors | 5 to 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 to 26 |
WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021
The Trustees submit their report and financial statements for the year ended 31 January 2021 under the Companies Act 2006, the Company's Memorandum & Articles of Association, the Foundation's Scheme and the Charities (FRS102) '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)'.
OBJECTIVES AND ACTIVITIES
Objectives and aims
Wisbech Educational Foundation is a charity with the objective of "advancing education for the public benefit in or near Wisbech in particular but not exclusively by promoting the education of children attending independent schools in the area through the provision of grants to those in financial need, scholarships or prizes."
The Foundation is a continuation of the Wisbech Grammar School Charity which can trace it's history back to 1379 when a school was founded by the Wisbech Guild of the Holy Trinity at St Peter's and St Paul's church. Chartered by Edward VI in 1549 as a grammar school for boys, for much of its history it offered a largely classical curriculum of Greek, Latin and arithmetic under the governance of the Wisbech Corporation. After the first 150 years the school moved premises to the old guildhall in Hill Street and then on to South Brink before merging with the Wisbech High School for Girls in 1970 at their present site on North Brink.
For much of the 20th century, it was a non-fee paying voluntary-aided school, but following local council plans to remove this status and merge the Grammar School with a nearby secondary modern school, the governors took the decision to become fully independent in 1983 becoming a fee-paying day school, run by the charity for pupils aged 4 to 18 to attend from the three counties of Cambridgeshire, Norfolk and Lincolnshire. Following the closure of the nearby St Audrey's Convent, a significant feeder for the senior school, a new junior and infant preparatory school was opened in 1997, now known as Magdalene House.
In 2020, the charity decided to relinquish the day to day running of the school and Wisbech Educational Foundation will continue to carry on charitable educational work within the local community. This includes awarding bursaries to those pupils who fulfil the academic criteria for entry to an independent school, and who will act as a positive role model, but who would otherwise be unable to afford the education on offer. The Foundation will also consider bursaries for other fee paying educational courses on its merits.
The trustees have regard to the Charity Commission's guidance on public benefit.
STRATEGIC REPORT
Achievement and performance
Charitable activities
During the year, the charity helped a number of local families who had suffered hardship for a variety of reasons, principally related to the Coronavirus pandemic, with financial support toward school fees to ensure that their child's education was not further disrupted in what was already a turbulent year for all school-aged children.
Fundraising activities
The charity does not carry out significant fundraising activities.
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WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021
STRATEGIC REPORT Financial review
Financial review (including reserves policy)
Having relinquished the day to day running of the school to Wisbech Grammar School Ltd, the charity's finances are on a much sounder footing. The trustees have kept a tight control on the charity's running costs and the charity has made a surplus during the course of the year.
The charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020 and the liability in the accounts of £525,000 is in accordance with the cessation valuation report dated 1 September 2020. The charity intends on repaying this liability in ten annual instalments, with the first instalment paid in September 2021, however, it is still in the process of formally agreeing and documenting the payment plan.
The charity's principal source of funding is the income it receives from its land and buildings. The trustees intend to use one third of its rental income to fund bursaries, one third toward settlement of the pension cessation liability and one third to cover the charity's running costs and build its reserves so they can be invested to provide investment income to enable the charity to meet its objectives.
Plans for future periods
The charity is hoping to provide a bursary to pay 100% of the School fees for a pupil from the local area who wishes to attend the Sixth Form at Wisbech Grammar School but whose parents are unable to afford the fees.
To qualify for such a bursary, the pupil would ideally be someone who does not attend the school and would have to apply to Wisbech Grammar School for a place.
The pupil would have to satisfy the Grammar School that they had the necessary academic qualifications for a place in the Sixth Form and his or her parents would have to satisfy the Grammar School's criteria for the award of a 100% bursary. The Grammar School would then initially make the recommendation to the charity to fund the Bursary.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing instruments
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
04234021 (England and Wales)
Registered Charity number
1087799
Registered office
Wisbech Grammar School Chapel Road Wisbech Cambridgeshire PE13 1RH
Trustees
Chairman: Mrs E Morris, LLB Vice Chariman: Dr Q Wong, MB.BS, FRCGP, DRCOG, Treasurer: Mr C Goad, BFP, FCA
Dr C Mair BSc, BVetMed, MRCVS Dr D Barter, MB, BS, MRCP, FRCPCH, DCH (retired on 13 February 2020) Mrs J Bodger BEd The Venerable Hugh McCurdy, Archdeacon of Huntingdon and Wisbech, BA (retired on 11 April 2021) Mr I MacLachlan
Dr K Hart MBCRB, FRCPCH
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WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021
REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary
Mr C Goad BFP FCA
Auditors Wheelers Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
Bankers
Barclays Bank PLC 12 Old Market Wisbech Cambridgeshire PE13 1NN
Solicitors
Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA
CHANGE OF NAME
The charitable company passed a special resolution on 1 February 2020 changing its name from Wisbech Grammar School to Wisbech Educational Foundation.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Wisbech Educational Foundation 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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
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WISBECH EDUCATIONAL FOUNDATION
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021
AUDITORS
The auditors, Wheelers, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 11 October 2021 and signed on the board's behalf by:
Mrs E Morris LLB - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
Opinion
We have audited the financial statements of Wisbech Educational Foundation (the 'charitable company') for the year ended 31 January 2021 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).
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In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 January 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 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.
Material uncertainty related 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:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
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:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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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 (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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility of the prevention and detection of fraud rests with those charged with governance of the entity.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity and determined that the most significant are those that relate to the reporting framework (United Kingdom Accounting Standards in conformity with the Companies Act 2006, 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) and FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland") and the relevant tax regulations in the United Kingdom.
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We understood how Wisbech Educational Foundation is complying with those frameworks by identifying the Charity's policies and procedures regarding compliance with laws and regulations.
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We assessed the susceptibility of the Charity's financial statements to material misstatement, including how fraud might occur by enquiry during the planning and execution phases of our audit.
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Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved:
o Review of trustee minutes of meetings to identify any instances of non-compliance with laws and regulations, including communications with regulators and tax authorities.
o Auditing the risk of management override of controls, including through review of adjustments for appropriateness.
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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WISBECH EDUCATIONAL FOUNDATION
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.
Helen Garrett BA FCA, CTA (Senior Statutory Auditor) for and on behalf of Wheelers Chartered Accountants, Tax Consultants & Statutory Auditors 27-29 Old Market Wisbech Cambridgeshire PE13 1NE
Date: 19 October 2021
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WISBECH EDUCATIONAL FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and capital grants 3 Charitable activities 5 Charitable activities Investment income 4 Total EXPENDITURE ON Charitable activities 6 Charitable activities Other Total Net gains on investments NET INCOME/(EXPENDITURE) Extraordinary items Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit schemes Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ - - 190,152 190,152 124,573 - 124,573 114,500 180,079 - - 180,079 4,542,741 4,722,820 |
Restricted funds £ - - - - - - - 663 663 - - 663 4,450 5,113 |
Year ended 31.1.21 Total funds £ - - 190,152 190,152 124,573 - 124,573 115,163 180,742 - - 180,742 4,547,191 4,727,933 |
Period 1.9.18 to 31.1.20 Total funds £ 2,942 8,452,073 78,263 8,533,278 9,437,300 10,000 9,447,300 22,214 (891,808) (1,309,862) (273,000) (2,474,670) 7,021,861 4,547,191 |
|---|---|---|---|---|
The notes form part of these financial statements
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WISBECH EDUCATIONAL FOUNDATION
| FIXED ASSETS Investments Investments Investment property CURRENT ASSETS Debtors Cash at bank CREDITORS Amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year PENSION LIABILITY NET ASSETS FUNDS Unrestricted funds Restricted funds TOTAL FUNDS |
BALANCE SHEET 31 JANUARY 2021 Notes 13 14 15 16 17 22 21 |
31.1.21 £ 9,064 5,760,000 5,769,064 16,554 164,609 181,163 (109,683) 71,480 5,840,544 (587,611) (525,000) 4,727,933 4,722,820 5,113 4,727,933 |
31.1.20 £ 8,401 5,645,500 5,653,901 147,773 1,801,226 1,948,999 (1,875,243) 73,756 5,727,657 (655,466) (525,000) 4,547,191 4,542,741 4,450 4,547,191 |
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 11 October 2021 and were signed on its behalf by:
Mrs E Morris LLB - Trustee
Mr C Goad BFP FCA - Trustee
The notes form part of these financial statements
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WISBECH EDUCATIONAL FOUNDATION
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JANUARY 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Extraordinary items Interest element of hire purchase payments paid Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Sale of fixed asset investments Interest received Net cash provided by investing activities Cash flows from financing activities Capital repayments in year Net cash used in financing 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 |
Year ended 31.1.21 £ (1,626,159) (57) - (1,411) (1,627,627) - - - 412 412 (9,402) (9,402) (1,636,617) 1,801,226 164,609 |
Period 1.9.18 to 31.1.20 £ 278,516 (13,644) (264,939) (2,001) (2,068) (1,044,923) 1 2,670,409 4,120 1,629,607 (13,316) (13,316) 1,614,223 187,003 1,801,226 |
|---|---|---|
The notes form part of these financial statements
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JANUARY 2021
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Gain on investments Interest received Interest paid Interest element of hire purchase and finance lease rental payments Decrease in debtors (Decrease)/increase in creditors Difference between pension charge and cash contributions Net cash (used in)/provided by operations |
Year ended 31.1.21 £ 180,742 (115,163) (412) 57 1,411 131,219 (1,824,013) - (1,626,159) |
Period 1.9.18 to 31.1.20 £ (891,808) (22,214) (4,120) 13,644 2,001 178,670 995,343 7,000 278,516 |
|---|---|---|
- ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank Debt Finance leases Total |
At 1.2.20 £ 1,801,226 1,801,226 (17,084) (17,084) 1,784,142 |
Cash flow £ (1,636,617) (1,636,617) 9,400 9,400 (1,627,217) |
At 31.1.21 £ 164,609 164,609 (7,684) (7,684) 156,925 |
|---|---|---|---|
The notes form part of these financial statements
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021
1. STATUTORY INFORMATION
Wisbech Educational Foundation is a charitable company, limited by guarantee, registered in England and Wales. The company has no share capital and in the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The register number company number is 04234021 and the registered charity number is 1087799. The registered office is located at Chapel Road, Wisbech, Cambridgeshire PE13 1RH.
2. 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The financial statements are prepared in sterling which is the functional currency of the company.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Significant judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Investment property
Investment property is stated at fair value with changes in the fair value being recognised in the Statement of Financial Activities. No depreciation is provided in respect of investment property in accordance with FRS102 Chapter 16
The fair value of investment property is assessed on an annual basis by the trustees. The main investment property has been included at a valuation of £5.6m based on a valuation of the property in 2019 by an external valuer and in accordance with a property option agreement in place. The option gives the tenant, Wisbech Grammar School Limited, an option to purchase the land and buildings from the Charity in the future at a value pre-determined by a qualified independent surveyor and by reference to future RPI increase.
Pensions liability
The Charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020. The Charity has had various discussions with Cambridgeshire County Council and the appointed actuary of the scheme, who have indicated that the cessation liability amounts to £525,000. This liability together with the associated assumptions is the liability referred to in these financial statements as detailed in note 22. The Charity has not received any indication that the £525,000 liability will be revised.
Income
Income is recognised in the Statement of Financial Activities once the company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income received in advance of a term is deferred until the criteria for income recognition are met.
Interest receivable on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
continued...
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2021
2. ACCOUNTING POLICIES - continued
Expenditure
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.
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
i) The Charity's general fund consists of funds which the Charity may use for its purpose at its discretion, in furtherance of the general objectives of the Charity.
ii) The Charity's restricted funds are those where the donors have imposed restrictions on the use of the funds which are legally binding.
Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the quoted bid market price or market value. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the period.
The company does not enter into put options, derivatives or other complex financial instruments.
Trade and other debtors
Trade and other debtors are recognised and carried at the lower of their original invoiced value and recoverable amount. Provision for impairment is made through the Statement of Financial Activities when there is objective evidence that the company will not be able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand includes cash and short term highly liquid investments with an original maturity date of three months or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Creditors and provisions
Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recorded at transaction price.
Hire purchase and leasing commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset's useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the Statement of Financial Activities so as to achieve a constant rate of interest on the remaining balance of the liability.
continued...
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
2. ACCOUNTING POLICIES - continued
Rentals under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the lease term. Lease incentives are recognised over the lease term on a straight-line basis.
Financial instruments
The company only has basic financial instruments which are initially recognised at transaction value and subsequently measured at their fair value.
3. DONATIONS AND CAPITAL GRANTS
| Year ended 31.1.21 £ Grants and donations - Grants received, included in the above, are as follows: Year ended 31.1.21 £ Other grants - 4. INVESTMENT INCOME Year ended 31.1.21 £ Rent and lettings 189,627 COIF and Charifund shares 113 Deposit account interest 412 190,152 |
Period 1.9.18 to 31.1.20 £ 2,942 Period 1.9.18 to 31.1.20 £ 2,942 Period 1.9.18 to 31.1.20 £ 20,174 53,969 4,120 78,263 |
|---|---|
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
5. INCOME FROM CHARITABLE ACTIVITIES
| Activity School fees Charitable activities Examinations etc Charitable activities School bus Charitable activities School shop Charitable activities Sundry sales Charitable activities Catering department Charitable activities 6. CHARITABLE ACTIVITIES COSTS Direct Costs (see note 7) £ Charitable activities 55,984 7. DIRECT COSTS OF CHARITABLE ACTIVITIES Teaching and educational support staff School magazine Debtor legal action Bad debts School bus expenses School shop expenses Staff recruitment and removal expenses Catering expenses Teaching departmental costs Other benefits Teacher training Other teaching related costs Direct other - ICT Grants International student charges and fees |
Year ended 31.1.21 £ - - - - - - - Support costs (see note 8) £ 68,589 Year ended 31.1.21 £ - - - 6,971 - - - - - - - - - 49,013 - 55,984 |
Period 1.9.18 to 31.1.20 £ 7,833,248 (6,315) 159,577 4,717 35,273 425,573 8,452,073 Totals £ 124,573 Period 1.9.18 to 31.1.20 £ 7,079,956 28,931 7,496 60,173 237,803 490 35,753 304,115 341,611 4,545 22,234 4,168 25,336 - 67,729 8,220,340 |
|---|---|---|
The Charity, during the year, committed to providing grants to support seven students of Wisbech Grammar school with their school fees totalling £49,013.
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WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2021
8. SUPPORT COSTS
| SUPPORT COSTS | ||||
|---|---|---|---|---|
| Governance | ||||
| Management | Finance | costs | Totals | |
| £ | £ | £ | £ | |
| Charitable activities | 56,551 | 1,468 | 10,570 | 68,589 |
Support costs, included in the above, are as follows:
Management
| Advertising Legal and professional fees Maintenance of premises and equipment Consultancy School inspection costs Rates, water, gas, electricity and rent Insurance Other costs Finance Defined benefit service cost Bank interest Hire purchase interest Information technology ICT systems and support |
Year ended 31.1.21 Charitable activities £ 14 11,480 - - - 14,387 27,299 3,371 56,551 Year ended 31.1.21 Charitable activities £ - 57 1,411 1,468 Year ended 31.1.21 Total activities £ - |
Period 1.9.18 to 31.1.20 Total activities £ 89,728 68,455 305,811 21,964 9,150 307,706 94,572 191,242 1,088,628 Period 1.9.18 to 31.1.20 Total activities £ 14,000 13,644 2,001 29,645 Period 1.9.18 to 31.1.20 Total activities £ 73,745 |
|---|---|---|
continued...
Page 17
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
8. SUPPORT COSTS - continued Governance costs
| SUPPORT COSTS - continued Governance costs |
||
|---|---|---|
| Period | ||
| 1.9.18 | ||
| Year ended | to | |
| 31.1.21 | 31.1.20 | |
| Charitable | Total | |
| activities | activities | |
| £ | £ | |
| Auditors' remuneration | 10,570 | 24,942 |
9. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Period | ||
|---|---|---|
| 1.9.18 | ||
| Year ended | to | |
| 31.1.21 | 31.1.20 | |
| £ | £ | |
| Auditors remuneration | 10,570 | 24,942 |
10. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 January 2021 nor for the period ended 31 January 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 January 2021 nor for the period ended 31 January 2020.
11. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Teaching Management and administration Others |
Year ended 31.1.21 £ - - - - Year ended 31.1.21 - - - - |
Period 1.9.18 to 31.1.20 £ 5,784,927 526,364 720,289 7,031,580 Period 1.9.18 to 31.1.20 60 7 61 128 |
|---|---|---|
continued...
Page 18
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
11. STAFF COSTS - continued
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Year ended 31.1.21 £60,001 - £70,000 - £80,001 - £90,000 - £100,001+ - - 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted funds funds £ £ INCOME AND ENDOWMENTS FROM Donations and capital grants 2,942 - Charitable activities Charitable activities 8,452,073 - Investment income 78,263 - Total 8,533,278 - EXPENDITURE ON Charitable activities Charitable activities 9,437,300 - Other 10,000 - Total 9,447,300 - Net gains/(losses) on investments 22,217 (3) NET INCOME/(EXPENDITURE) (891,805) (3) Extraordinary items (1,309,862) - Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit schemes (273,000) - Net movement in funds (2,474,667) (3) RECONCILIATION OF FUNDS Total funds brought forward 7,017,408 4,453 TOTAL FUNDS CARRIED FORWARD 4,542,741 4,450 |
Period 1.9.18 to 31.1.20 2 1 1 4 Total funds £ 2,942 8,452,073 78,263 8,533,278 9,437,300 10,000 9,447,300 22,214 (891,808) (1,309,862) (273,000) (2,474,670) 7,021,861 4,547,191 |
|---|---|
continued...
Page 19
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2021
13. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | ||
|---|---|---|
| 31.1.21 | 31.1.20 | |
| £ | £ | |
| Shares | 4,064 | 3,401 |
| Other | 5,000 | 5,000 |
| 9,064 | 8,401 |
Additional information as follows:
| Unlisted | |
|---|---|
| investments | |
| £ | |
| MARKET VALUE | |
| At 1 February 2020 | 3,401 |
| Revaluations | 663 |
| At 31 January 2021 | 4,064 |
| NET BOOK VALUE | |
| At 31 January 2021 | 4,064 |
| At 31 January 2020 | 3,401 |
There were no investment assets outside the UK.
Investments (neither listed nor unlisted) were as follows:
| 31.1.21 | 31.1.20 | |
|---|---|---|
| £ | £ | |
| Valuation brought forward | 5,000 | - |
| Revaluation | - | 4,777 |
| Reclassification | - | 223 |
| 5,000 | 5,000 |
Other fixed asset investments have been included at a trustee's valuation of £5,000 based on comparable market data.
14. INVESTMENT PROPERTY
| FAIR VALUE At 1 February 2020 Revaluation At 31 January 2021 NET BOOK VALUE At 31 January 2021 At 31 January 2020 |
£ 5,645,500 114,500 |
|---|---|
| 5,760,000 | |
| 5,760,000 | |
| 5,645,500 |
continued...
Page 20
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
14. INVESTMENT PROPERTY - continued
The Investment Property is stated at fair value with changes in fair value being recognised in the Statement of Financial Activities. No depreciation is provided in respect of this property in accordance with FRS 102 Chapter 16. The property, let to Wisbech Grammar School, has been included at a valuation of £5.6m based on a valuation of the property undertaken in 2019 and in accordance with the property option agreement. The property known as Town Field, Elm, which does not form part of the purchase option agreement, has been valued by Maxey Grounds as at 31 January 2021, based on its market value in accordance with the requirements of the RICS Valuation - Global Standards 2020, at £160,000.
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors Prepayments and accrued income |
31.1.21 £ 16,554 - - 16,554 |
31.1.20 £ 100,497 14,626 32,650 |
|---|---|---|
| 147,773 |
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Hire purchase (see note 18) Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
31.1.21 £ 4,867 5,668 - 41,838 57,310 109,683 |
31.1.20 £ 9,400 79,702 100,869 1,583,066 102,206 |
|---|---|---|
| 1,875,243 |
17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Hire purchase (see note 18) Other creditors |
31.1.21 £ 2,817 584,794 587,611 |
31.1.20 £ 7,684 647,782 |
|---|---|---|
| 655,466 |
18. LEASING AGREEMENTS
Minimum lease payments fall due as follows:
| Hire purchase | contracts | |
|---|---|---|
| 31.1.21 | 31.1.20 | |
| £ | £ | |
| Net obligations repayable: | ||
| Within one year | 4,867 | 9,400 |
| Between one and five years | 2,817 | 7,684 |
| 7,684 | 17,084 |
continued...
Page 21
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2021
18. LEASING AGREEMENTS - continued
| Within one year Between one and five years In more than five years |
Non-cancellable operating leases 31.1.21 31.1.20 £ £ 71,068 70,615 176,514 214,699 25,833 35,833 273,415 321,147 |
|---|---|
Following the completion of the transfer of the business and tangible assets of the school, excluding the freehold land and buildings, on the 31 January 2020 to Wisbech Grammar School Ltd, the operating lease liabilities are being met by Wisbech Grammar School Ltd, however the leases have not been assigned.
19. SECURED DEBTS
The following secured debts are included within creditors:
| 31.1.21 | 31.1.20 | |
|---|---|---|
| £ | £ | |
| Hire purchase contracts | 7,684 | 17,084 |
As detailed in note 18, the original hire purchase liability is still in the name of the charity even though the assets were sold on 31 January 2020. The substance of the transaction is that the charity is collecting the payments from the new owners and settling the liability in respect of the hire purchase agreement.
20. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Investments Current assets Current liabilities Long term liabilities Pension liability |
Unrestricted funds £ 5,765,000 180,114 (109,683) (587,611) (525,000) 4,722,820 |
Restricted funds £ 4,064 1,049 - - - 5,113 |
31.1.21 Total funds £ 5,769,064 181,163 (109,683) (587,611) (525,000) 4,727,933 |
31.1.20 Total funds £ 5,653,901 1,948,999 (1,875,243) (655,466) (525,000) |
|---|---|---|---|---|
| 4,547,191 |
21. MOVEMENT IN FUNDS
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
At 1.2.20 £ 4,542,741 4,450 4,547,191 |
Net movement in funds £ 180,079 663 180,742 |
At 31.1.21 £ 4,722,820 5,113 |
|---|---|---|---|
| 4,727,933 |
continued...
Page 22
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
21. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 190,152 Restricted funds Restricted fund - TOTAL FUNDS 190,152 Comparatives for movement in funds Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS Comparative net movement in funds, included in the above are Incoming resources £ Unrestricted funds General fund 8,533,278 Restricted funds Restricted fund - TOTAL FUNDS 8,533,278 |
Resources expended £ (124,573) - (124,573) At 1.9.18 £ 7,017,408 4,453 7,021,861 as follows: Resources expended £ (10,757,162) - (10,757,162) |
Gains and losses £ 114,500 663 115,163 Net movement in funds £ (2,474,667) (3) (2,474,670) Gains and losses £ (250,783) (3) (250,786) |
Movement in funds £ 180,079 663 180,742 At 31.1.20 £ 4,542,741 4,450 4,547,191 Movement in funds £ (2,474,667) (3) (2,474,670) |
||
|---|---|---|---|---|---|
continued...
Page 23
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2021
22. PENSION AND SIMILAR OBLIGATIONS
The Charity ceased participation in the Cambridgeshire County Council Pension Fund on 31 January 2020. The liability in the accounts is in accordance with the cessation valuation report dated 1 September 2020.
The Charity has had various discussions with Cambridgeshire County Council and the appointed actuary of the scheme, who have indicated that the cessation liability amounts to £525,000. This liability together with the associated assumptions is the liability referred to in these financial statements. The Charity is still however in the process of formally documenting this agreement together with the payment plan by which it is to be settled. The figures advised by the actuary on behalf of the Cambridgeshire County Council includes a fixed interest sum of £27,250 in recognition of the fact that the liability is to be paid over a ten year term. In accordance with the Cambridgeshire County Council cessation valuation report, there is currently pending litigation which may result in changes to the calculated liability. The Charity, however, has not received any indication that the £525,000 liability will be revised.
The amounts recognised in the Balance Sheet are as follows:
| Present value of funded obligations Fair value of plan assets Present value of unfunded obligations Deficit Net liability |
Defined benefit pension plans 31.1.21 31.1.20 £ £ (1,167,000) (1,167,000) 642,000 642,000 (525,000) (525,000) - - (525,000) (525,000) (525,000) (525,000) |
|---|---|
The amounts recognised in the Statement of Financial Activities are as follows:
| Defined benefit | Defined benefit | |
|---|---|---|
| pension plans | ||
| 31.1.21 | 31.1.20 | |
| £ | £ | |
| Current service cost | - | 14,000 |
| Net interest from net defined benefit liability | - | 35,000 |
| Past service cost | - | - |
| - | 49,000 | |
| Actual return on plan assets | - | - |
continued...
Page 24
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
22. PENSION AND SIMILAR OBLIGATIONS - continued
Changes in the present value of the defined benefit obligation are as follows:
| Opening present value of defined benefit obligations at beginning of period Current service cost Contributions by scheme participants Interest cost on defined benefit obligation Benefits paid Remeasurements: Actuarial gains from changes in demographic assumptions Actuarial losses from changes in financial assumptions Actuarial gains from other experience adjustments |
Defined benefit pension plans 31.1.21 31.1.20 £ £ 1,167,000 869,000 - 14,000 - 2,000 - 35,000 - (23,000) - (57,000) - 356,000 - (29,000) 1,167,000 1,167,000 |
|---|---|
Changes in the fair value of scheme assets are as follows:
| Opening fair value of scheme assets at beginning of period Interest income on scheme assets Contributions by employer Contributions by scheme participants Benefits paid Return on plan assets in excess of interest income |
Defined benefit pension plans 31.1.21 31.1.20 £ £ 642,000 624,000 - 25,000 - 17,000 - 2,000 - (23,000) - (3,000) 642,000 642,000 |
|---|---|
Page 25
continued...
WISBECH EDUCATIONAL FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2021
22. PENSION AND SIMILAR OBLIGATIONS - continued
The amounts recognised in other recognised gains and losses are as follows:
| Actuarial gains from changes in demographic assumptions Actuarial losses from changes in financial assumptions Actuarial gains from other experience adjustments Return on plan assets in excess of interest income |
Defined benefit pension plans 31.1.21 31.1.20 £ £ - 57,000 - (356,000) - 29,000 - (3,000) - (273,000) |
|---|---|
The major categories of scheme assets as a percentage of total scheme assets are as follows:
| Defined benefit | Defined benefit | ||
|---|---|---|---|
| pension plans | |||
| 31.1.21 | 31.1.20 | ||
| Equities | 73% | 73% | |
| Bonds | 11% | 11% | |
| Property | 15% | 15% | |
| Cash | 1% | 1% | |
| 100% | 100% | ||
| Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages): | |||
| 31.1.21 | 31.1.20 | ||
| Discount rate | 1.00% | 1.00% | |
| Future salary increases | 2.50% | 2.50% | |
| Future pension increases | 1.90% | 1.90% | |
| 23. | RELATED PARTY DISCLOSURES |
There were no related party transactions for the year ended 31 January 2021.
Page 26