**Charity Registration No. 1092152**
**Company Registration No. 04158590 (England and Wales)**
## **INAURA SCHOOL**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2020**
## **INAURA SCHOOL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mrs Sara Clay (Appointed 19 March 2020) Mrs Julia Gibbs Mrs Tessa Munt Mr Andrew Warner **Charity number** 1092152 **Company number** 04158590 **Registered office** Moor View Burrowbridge Bridgwater Somerset United Kingdom TA7 0RB **Auditor** Lentells Limited Ash House Cook Way Bindon Road Taunton Somerset TA2 6BJ
## **INAURA SCHOOL**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 18|
## **INAURA SCHOOL**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' 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 charitable company's memorandum and articles of association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
Inaura School is an independent, co-educational SEND school for pupils who have complex educational, social, emotional and mental health needs.
The school has four education learning bases located in the county of Somerset. We provide student educational day placements for Somerset local authority and the surrounding local authorities including Bath and North East Somerset, Bristol, Devon, Dorset, North Somerset, Gloucestershire and Wiltshire. Our Key Stage 2-3 learning centre is located in Wedmore while our Forest School is located nearby in the Westhay Moor Nature Reserve. Our two Key Stage 3, 4 and 5 learning bases are located in Burrowbridge and East Huntspill.
All of our students have Education Health and Care Plans and are placed with us through their local authority SEND departments. We work with students who have encountered challenges in mainstream, pupil referral units and other special school settings. Many of our students have experienced failure in multiple educational settings. That is why we do things a little differently.
Our approach encompasses a relational and non-coercive philosophy for teaching and learning. This philosophy focuses on building trust and systematically removing the barriers that pupils encountered in their previous learning journeys.
The aim of Inaura School is to:
- Re-engage our pupils in education
- Facilitate experiences of success
- Raise self-esteem
- Raise self-awareness
- Enable our young people to realise independence in their own life
Our philosophy is rooted in the belief that every individual will learn when presented with the right conditions. Our goal is to help students enjoy learning again. This 360-degree learner-centred approach focuses on the **Head, Heart, Hands** and **Home** .
**Head** - Promoting academic learning and the gaining of qualifications to enable choice and social mobility. **Heart** - Promoting emotional resilience, relationship building, higher self-esteem and self-awareness to facilitate experiences of success.
**Hands** - Promoting hands on activities that are flexible, practical and proactive rather than 'sit and get' lecture style learning.
**Home** - Promoting quality home/school relationships through effective communication and collaboration with parent/carers that closes the loop between the expectations of home and school.
- 1 -
## **INAURA SCHOOL**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **Our Ethos**
The school ethos is based on compassion, equality, openness and honesty. Inaura's highest priority is to keep our students safe, healthy, happy and inspire them to overcome personal obstacles that prevent them from learning.
## **What we believe at Inaura School**
We believe all young people are able and genuinely want to learn. This will only occur if we remove the barriers that are holding them back from engaging with school and assist them in overcoming past, present and future challenges. We will never enable learnt helplessness. We will empower students to learn the skills that will enable them to confront life's obstacles with confidence, poise and resilience.
**In+aura** - Our name means 'radiance piercing the darkness within'.
The school's objectives are:
- Improve the reputation of the school as a leader in innovative teaching and learning for SEND/SEMH students
- Build partnerships with other SEND/SEMH schools in the region
- Improve the school's public profile while marketing the school's unique selling points
- Build partnerships with various philanthropical organizations and trusts willing to support the school's continued growth while providing additional financial stability
## **The Relational Approach**
When using the relational approach, we look for opportunities to create positive conditions allowing us to invite the student (without coercion or conditional statements) to do what we are asking them to do. The challenging situation provides a way to build stronger relationships through trust and understanding. We want students to be safe, have fun and engage in their learning. Sometimes we will not be able to give students what they want but we work very hard to ensure that we give them what they need.
How does Inaura School do this?
- Using non-coercive techniques
- Applying restorative justice approaches
- Building relationships that encourage change and enable personal empowerment
- • Reiterating the mantra – Be safe; Have fun; Engage in your learning
We believe that this approach combined with our 1:1 student to teacher ratio and small group settings are what make Inaura unique amongst other schools working with SEND/SEMH young people who would otherwise be disengaged from the learning process.
## **Achievements and performance**
## **Financial review**
The school business is viable and independent professionals have approved our financial management plans.
The school has made a surplus this year of £106,000.00 and has met all the annual budget figures. The school no longer needs to secure short-term loans to assist with the cash flow difficulties that occurred previously and has successfully mitigated those periods. The cash flow position has strengthened for the next academic year 2020-2021.
The school has continued to take enormous steps to improve the overall performance and Ofsted Requires Improvement rating. The school was re-inspected on 14 to 16 January 2020 and was rated as a **Good** school.
We are no longer carrying a deficit and are now running at a projected yearly surplus of £20,000.
We upgraded our KS2-3 site by moving out of Godney at the end of October 2020 into the Poolbridge Learning Centre in Wedmore. The move has allowed us to modernise our facilities as well as increase additional student capacity while enabling the school to develop further.
- 2 -
## **INAURA SCHOOL**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **Principal funding sources**
All income this year has come from local authority referrals to the school. Services have been provided to five local authorities this year, but the majority of referrals come from Bath and North East Somerset, North Somerset and Gloucester Councils. We will continue to promote our school to other local authorities.
We received a grant for £25,000 from Kensington Mortgage Company to renovate and secure a new school site which enabled us to relocate our KS2-3 site.
## **Investment and reserves policy**
The school continues to be remunerated on a four-month cycle in advance, so there is a 'dynamic reserve', which reduces to a minimum every four months. We will need to continue to apply our risk management policy to our premises portfolio and staffing levels each year.
The trustees has assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
## **Governing document**
Inaura School is a company limited by guarantee and a registered charity number 1092152. It was incorporated on 12 February 2001 and its memorandum and articles of association have been amended by special resolutions dated 11 May 2002, 3 March 2007, 28 February 2009, 23 June 2020 and 8 October 2020. The company was registered as a charity on 22 May 2002.
Signatories to the memorandum and articles are liable up to a maximum of £10 in the event of dissolution.
Mrs Sara Clay (Appointed 19 March 2020) Mrs Julia Gibbs Mrs Tessa Munt Mr Andrew Warner Mrs Amanda Hannah (Resigned 16 November 2020)
## **Recruitment and appointment of new trustees 2019-2020**
Inaura's Trustees are all directors of the company limited by guarantee. In accordance with its articles of association two Trustees resign each year in rotation and for the last five years have been re-elected immediately. Inaura has benefited from a loyal and committed Trustee group. Trustees give their time voluntarily and no expenses were claimed during the year. The trustees have had due regard to the Charity Commission's guidance on public benefit.
The Trustees are all professionals with substantial experience in business, therapeutic, social and educational work. Trustees meet for a regular termly meeting, with a fourth optional meeting on a floating date to coincide with an annual Charity public event. This appears to be a successful model and will be continued.
## **Board of Governors**
The board of governors are responsible for working with the school to ensure that it delivers the best possible education for present and future pupils. This includes best practice in appointing and managing staff as well as ensuring that child protection and safeguarding remain the school’s first priority. Together with the Head Teacher, who is responsible for the day-to-day management, they set the school's aims, policies and the overall strategy. The board of governors are responsible for ensuring the efficient and effective monitoring of the school’s finances. The board meets six times per year. Since 2017, the school has appointed three new governors and two governors have resigned.
- 3 -
## **INAURA SCHOOL**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **Organisational structure for 2019-2020**
The school has a Head Teacher and Deputy Head Teacher who report to the Board of Governors. The school's senior leadership team consists of the Head Teacher, Deputy Head Teacher, Designated Safeguarding Lead, Health & Safety Officer, SENDCo, Business Manager and Curriculum Lead.
The school has four middle level manager/teachers, three administrators, a finance assistant, three specialist teachers, a literacy tutor, a music therapist and twenty-four learning support workers and ancillary staff.
Trustees recognise that as the school develops, their responsibilities need to be fully understood and enacted and make use of the Charity Commission's extensive guide booklets and the Department for Education’s Governance Handbook to reference the correct approach to any unfamiliar governance issues. The school is a member of the National Governance Association who provide information, advice, guidance, research and training for governing boards.
## **Auditor**
The trustees' r eport was approved by the Board of Trustees.
**Mr Andrew Warner** Trustee Dated: 21 June 2021
- 4 -
## **INAURA SCHOOL**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The trustees, who are also the directors of Inaura School for the purpose of company law, 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).
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 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 UK 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 charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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.
- 5 -
## **INAURA SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF INAURA SCHOOL**
## **Opinion**
We have audited the financial statements of Inaura School (the ‘charitable company’) for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, 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 charitable company'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 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 Auditor's 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**
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 charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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.
- 6 -
## **INAURA SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF INAURA SCHOOL**
## **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' r eport; 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 s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charitable company for the purpose 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.
## **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.
**P A Stallard FCA (Senior Statutory Auditor) for and on behalf of Lentells Limited** 21 June 2021 **Chartered Certified Accountants Statutory Auditor** Ash House Cook Way Bindon Road Taunton Somerset TA2 6BJ
Lentells Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
- 7 -
## **INAURA SCHOOL**
## **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 grants
**3**
-
3,960
Charitable activities
**4**
1,569,816
-
**Total income**
1,569,816
3,960
**Expenditure on:**
Charitable activities
Education
**5**
1,467,121
-
**Total charitable expenditure**
1,467,121
-
**Net income for the year/**
**Net movement in funds**
102,695
3,960
Fund balances at 1 September 2019
(66,741)
-
**Fund balances at 31 August 2020**
35,954
3,960|**Total**Unrestricted
funds
**2020**
2019
**£**
**£**
3,960
380
1,569,816
1,466,972
1,573,776
1,467,352
1,467,121
1,413,540
1,467,121
1,413,540
106,655
53,812
(66,741)
(120,554)
39,914
(66,742)|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 8 -
## **INAURA SCHOOL**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**9**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**11**
Net current assets
**Total assets less current liabilities**
**Deferred income**
**12**
**Net assets/(liabilities)**
**Income funds**
Restricted funds
Unrestricted funds|**2020**
**£**
**£**
12,038
61,442
538,356
599,798
(64,591)
535,207
547,245
(507,331)
39,914
3,960
35,954
39,914|**2019**
**£**
**£**
19,732
107,312
281,732
389,044
(42,560)
346,484
366,216
(432,958)
(66,742)
-
(66,742)
(66,742)|
|---|---|---|
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 21 June 2021
Mr Andrew Warner
## **Trustee**
## **Company Registration No. 04158590**
- 9 -
## **INAURA SCHOOL**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**16**
**Investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
(7,062)|**£**
263,686
(7,062)
-
256,624
281,732
538,356|**2019**
**£**
(3,246)|**£**
93,305
(3,246)
-
90,059
191,673
281,732|
|---|---|---|---|---|
- 10 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **Charity information**
Inaura School is a private company limited by guarantee incorporated in England and Wales. The registered office is Moor View, Burrowbridge, Bridgwater, Somerset, TA7 0RB, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charitable company. Monetary a mounts 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 freehold properties and to include 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 charitable company 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.
The trustees have in particular reviewed cashflow forecasts prepared by the management of Inaura School, and are satisfied that predicted cash deficits will be effectively managed as explained in note 18 to 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 Income**
Income is recognised when the charitable company 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.
## **1.5 Intangible fixed assets other than goodwill**
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software 5 years
- 11 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **(Continued)**
## **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:
Leasehold improvements over period of lease Plant and equipment 33% on straight line basis and 20% on straight line basis Fixtures and fittings 20% on straight line basis
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 Impairment of fixed assets**
At each reporting end date, the charitable company reviews the carrying amounts of its tangible and intangible 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 ) .
## **1.8 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.
## **1.9 Financial instruments**
The charitable company 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 charitable company's balance sheet when the charitable company 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.
- 12 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**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 p aymen ts 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 charitable company’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charitable company’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.
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## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **3 Donations and grants**
|||**Restricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2020**|2019|
|||**£**|£|
||Donations and gifts|-|380|
||Government grant income|3,960|-|
|||3,960|380|
|**4**|**Charitable activities**|||
|||**Education**|**Education**|
|||**2020**|
**2019**|
|||**£**|
**£**|
||Services provided under contract|1,569,816|
1,466,972|
|**5**|**Charitable activities**|||
|||**Education**|**Education**|
|||**2020**|
**2019**|
|||**£**|
**£**|
||Staff costs|1,166,669|
1,096,705|
||Student therapy|1,222|
1,544|
||Student activities|9,704|
13,442|
||Telephone|12,655|
9,683|
||Books and journals|459|
1,781|
||Consultant and practitioner fees|5,836|
6,749|
||Licences and registrations|4,893|
3,829|
||Pupil premium expenditure|-|
608|
||Bank interest|-|
145|
|||1,201,438|
1,134,486|
||Share of support costs (see note 6)|245,115|
256,566|
||Share of governance costs (see note 6)|20,568|
22,488|
|||1,467,121|
1,413,540|
- 14 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **6 Support costs**
|Research and training
Finance costs
Motor and travel
Premises costs
Office costs
Audit fees
Accountancy
Legal and professional
DBS fees
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
8,878
-
397
-
42,475
-
150,678
-
42,687
-
-
6,958
-
-
-
12,893
-
717
245,115
20,568
245,115
20,568|**2020**
**£**
8,878
397
42,475
150,678
42,687
6,958
-
12,893
717
265,683
265,683|Support
costs
Governance
costs
£
£
10,438
-
421
-
53,714
-
147,569
-
44,424
-
-
10,208
-
527
-
10,614
-
1,139
256,566
22,488
256,566
22,488|2019
£
10,438
421
53,714
147,569
44,424
10,208
527
10,614
1,139
279,054
279,054|
|---|---|---|---|---|
Governance costs includes payments to the auditors of £ 6,958 (2019- £ 10,208 ) for audit fees.
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
## **8 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Education
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
46
**2020**
**£**
1,058,921
86,767
20,981
1,166,669|**2019**
**Number**
46
**2019**
**£**
1,001,704
78,879
16,122
1,096,705|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
- 15 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**9**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
**£**
**Cost**
At 1 September 2019
54,922
24,322
15,451
Additions
-
7,062
-
At 31 August 2020
54,922
31,384
15,451
**Depreciation and impairment**
At 1 September 2019
38,954
20,558
15,451
Depreciation charged in the year
9,746
5,010
-
At 31 August 2020
48,700
25,568
15,451
**Carrying amount**
At 31 August 2020
6,222
5,816
-
At 1 August 2019
15,968
3,764
-
**10**
**Debtors**
**2020**
**Amounts falling due within one year:**
**£**
Trade debtors
53,996
Prepayments and accrued income
7,446
61,442
**11**
**Creditors: amounts falling due within one year**
**2020**
**Notes**
**£**
Other taxation and social security
26,955
Deferred income
**12**
25,000
Trade creditors
4,288
Accruals and deferred income
8,348
64,591|**Total**
**£**
94,695
7,062
101,757
74,963
14,756
89,719
12,038
19,732
**2019**
**£**
92,998
14,314
107,312
**2019**
**£**
21,987
-
8,808
11,765
42,560|
|---|---|
- 16 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **12 Deferred income**
|Deferred grant income
Deferred tuition income
Deferred income is included in the financial statements as follows:
Current liabilities
Shown as deferred income on the face of the balance sheet|**2020**
**£**
25,000
507,331
532,331
**2020**
**£**
25,000
507,331
532,331|**2019**
**£**
-
432,958
432,958
**2019**
**£**
-
432,958
432,958|
|---|---|---|
Tuition fees are invoiced and received by Inaura School in advance of the term to which they relate.
## **13 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|Unrestricted|
||**funds**|**funds**||funds|
||**2020**|**2020**|**2020**|2019|
||**£**|**£**|**£**|£|
|Fund balances at 31 August 2020 are|||||
|represented by:|||||
|Tangible assets|12,038|-|12,038|19,732|
|Current assets/(liabilities)|531,247|3,960|535,207|346,484|
|Provisions and deferred income|(507,331)|-|(507,331)|
(432,958)|
||35,954|3,960|39,914|(66,742)|
|**Operating lease commitments**|||||
|At the reporting end date the charitable company had outstanding commitments|||for future minimum lease||
|payments under non-cancellable operating leases, which fall due as follows:|||||
||||**2020**|**2019**|
||||**£**|**£**|
|Within one year|||57,626|62,769|
|Between two and five years|||244,754|42,400|
|In over five years|||190,350|-|
||||492,730|105,169|
## **14 Operating lease commitments**
- 17 -
## **INAURA SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **14 Operating lease commitments**
## **(Continued)**
Total lease payments made in the year in respect of land and buildings amounted to £89,154 (2019: £89,154)
## **15 Related party transactions**
There were no disclosable related party transactions during the year (2019 - £30,000 - loan from trustee advanced and repaid within the year ) .
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
|Aggregate compensation
**16**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease) in creditors
Increase in deferred income
**Cash generated from operations**|**2020**
**£**
253,182
**2020**
**£**
106,655
14,756
45,871
(2,969)
99,373
263,686|**2019**
**£**
239,779
**2019**
**£**
53,812
12,945
(50,372)
(9,209)
86,129
93,305|
|---|---|---|
- 18 -