Registered Charlty Number 1095238 Hackney Free and Parochial Schools Educatlonal Trust Annual Report and Financial Statements For the year ended S April 2021 Unaudited
Hackne Free and Parochial Schools Educational Trust Contents Page Trust Information Report of the Trustees ststement of Trustees, Responslbilities Report of the Independent Examiner Statement of Financial Activities io Balance Sheet li Accounting Policies 12-15 Notes to the Financial Statements 16-19
Hackne Free and Parochial Schools Ed¢Jcational Trust Trust Information for Year Ended 5 A ril 2021 Trustees; PS Harvey D J Horder L M Horder S Hase Reverend A Gordon Reverend M Nelson C Reeves Principal Office and Administration; The Trust Partnership (Foundations) Ltd 6 Trull Fami Building5 Tetbury Gloucestershire GL88SQ Bankers; Barclays Bank pl I Churchill Place London E14 5HP Independent Examiner, Dunkley's Woodlands Grange Woodlands Bradley Stoke Bristol BS32 4JY Sollcltors" Farrer & Co 66 Lincoln's Inn Fields London SW2A 3LH Investment Managers; CCLA Investment Management Lt 80 Cheapside London EC2V 6DZ M&G Securities Ltd Victoria Road Chelmsford CM99 2XF
Hackne Free and Parochlal Schools Educational Trust Re ort of the Trustees for Year Ended 5 A ril 2021 The trustees present their Report and Firsancial Statements for the year ended 5 April 2021. Introductlon The Hackney Free and Parochial Schools Educational Trust (the Trust) was registered with the Charity Commission on 12 November 2012, nLtmber 1095238. The Hackney Free and Parochial Schools comprise The Urswick School Iformerly Hackney Free and Parochial Secondary School) at Paragon Road, Hackney E9 6NR and St John and St James Primary School at Isabella Road, Hackney E9 6DX. Prior to the registration of the Trust, the Hackney Free and Parochial Schools Reconstruction Fund, which was governed by a 1905 Board of Education Scheme with funds derived largely from a public appeal for donations made in 1937. refurbished and rectified faLtlts with the fabric of the Rams Episcopal Primary School Inow known as St John and St James Primary Sthooll, an(1 offset the maintenance costs of the schools. In the early 1990's, two major projects were carried out, the first to move the split 51te Hackney Free and Parochial Secondary School onto one site and the second to carry out development work at the Rams Episcopal Primary School. Since this time and until the registration of the Trust, the fund made contributions towards the maintenance costs both of both the Hackney Free and St John and St James, Schools. Structure, Governance and Management Recruitment and appointment of new trustees The charity has seven trustees who meet twice a year. As permitted by the Charity Commission during the Covid-19 pandemic, the Trustees held their meetings by video conference. The identification of potential new trustees is carried out by the board, the aim being to appoint those with the appropriate expert15e and experience for the charity's work. On agreeing to become a trustee of the charity, they are thoroughly briefed by their co-trustees on the history of the trust, the day-to-day management, the responsibilities of the trustees, the turrent objectives and future plans. The trustees are also encouraged to attend any courses. Key Management Personnel The trustees consider that they, and the secretary to the trustees, comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. The trustee5 receive no remuneration. Organisational strurture The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet two times every year to review developments with regard to the charity, its grant giving activities and to make any important decisions. When necessary, the trustees seek advice and support from the Charity's professional advisers. Safeguardlng The trustees reviewed their responsibilities in relation to safeguarding. It was agreed that DBS checks were not required as the trustees do not work in direct contact with children. When the trustees visit the schools they are accompanied and comply with any specific requirements of the schools when on their premises. It is the trustees policy to consider these matters annually, and the Clerk confirmed that the schools have a safeguarding policy in place and there were no significant incidents to report to the Trustees.
Hackne Free and Parochial Schools Educational Trust Re ort of the Trustees for Year Ended 5 A ril 2021 Rlsk management In line with the requirement for trustee5 to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks. The trustees have identified five main areas where risks may occur.. - Governance and management Operational Financial Reputational Law5. regulations, external and environmental Governance and management look at the risk the charity might suffer from the lack of direction, the skills and training of the trustees and the good use of its funds. Operational looks at the risk inherent in the charity's actlvities including sUPPOrting unsuitable appeals from charities. continuity of staff. lack of a disaster recovery poliry, etc. Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accountin& inappropriate investment policies, etc. Reputational looks at the possible damage to the charity's reputation. through association with un5Uitable charities, or with inappropriate activity. Laws, regulations, external and environmental look5 at the effects of government policies and the consequences of non-compliance with the laws and regulations. Havin8 assessed the major risks to which the charity is exposed, in particular to its finances, the trustees believe that by monitoring reserve levels, by ensuring that controls exist overthe key financial 5YStems, and by examining the operational and business risks faced by the charity, they have established effective system5 to mitigate those risks. Object and Public Benefit The object of the charity as set out in the Charity Commission Scheme Is.. 'the advancement of education at or in connection with the Hackney Free and Parochial Church of England Secondary School and St John and St Jame5 Church of England Prlmary School (the Schools),. Hackney Free and Parochial Secondary School changed its name to The Urswick School in September 2011. The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aim5 and objectives and in planning future activities. The public benefit provided by the Trust is for additional educational purposes over and above the delegated budgets received by the Schools.
Hackne Free and Parochial Schools Educational Trust Re ort of the Trustees for Year Ended 5 A ril 2021 Artivities during the year Generally the Trust makes one grant to each school each after the accounts have been approved, in order to continue to advance educational benefits to the pupils at these schools. being the beneficiaries of the Trust. Due to the Covid-19 pandemic, the Trust encouraged the schools to make applications for fundin8 for specific projects to help alleviate the impact of the pandemic on the pupils, where Government funding was not available or insufficient. Only one School was forthcomlng with requests which the Trustees supported. The Trustees will continue to support both schools going forward and they are encouraging The Urswick School to provide reports and applications for fund5. Trustees The Scheme allows for seven trustees lone ex offlclo, one nominated and fwe co-opted). The trustees who seNed during the year are those listed on page three. The ex officio trustees, term of office is the period for which he or she holds the office of Rector of Hackney. The nominated trustees, term of office is four years and co-opted trustees, terms of offlce are five years. Investment perforrnance The value of investments at 5 April 2021 was £1,955,545, an increase of £806,975 on the original investment. Financial review Details of the Trust5 incoming and outgoing resources in the year are given in the Statement of Financial Activities on page nine. The Trusts financial position on 5 April 2020 is set out in the Balance Sheet on page ten. These Financial Statements should be read in conjunction with the related accounting policies and notes on pages eleven to eighteen. Income for the year was £73,302 12020 £86,656). Expenditure for the year was £78,611 12020 E65,4791. At the year ended 5, April 2021, there was a deficit, before investment losses, of £5.309 12020 surplus £21.1771. Investment gain for the year were £324.60412020 lo55 £275,315). Resekves and Investment Policy The trustees, policy 15 to preserve the investment base of the Trust to ensure that sufficient income is generated annually to meet the Trusts requirements.
Hackne Free and Parochial Schoo15 Educa ional Trust Statement of Trustees, Res onsibilities for Year Ended S A ril 2021 Assessment of going concern The trustees have assessed whether the use of the going concern assumption 15 appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. The trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. Given the additional challenges of Coronavirus and Covid-19 in 2020121, the trustees are of the opinion that the Charity will still have sufficient resources to meet its liabilities as they fall due. Future developments We will continue to maintain and develop relationships with The Urswick School and St John and St James Primary School and to consider grant applications from each. The purpose of this statement is to distinguish the responsibilities of the trustees, a5 a body, for the Financial Statements from the responsibilities of the independent examiner as stated in their report. The Trust Deed and Charity Law require the trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the Trust and of its financial position at the end of the year. In preparing those Financial Statements the trustees are required to.. Select suitable Accounting Policie5 and then apply them consistentlv: Observe the methods and principals of the Charities SORP, Accounting and Reporting by Charities,. Make jL¢dgements and estimates that are reasonable and prudent: State whether applicable United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl ha5 been followed, disclosing and explaining any departures therefrom in the Financial Statements- and Prepare the Financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
Hackne Free and Parochial Schools Educational Trust Statement of Trustees, Res onsibilities for Year Ended 5 A ril 2021 The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and to enable them to ensure that the Financial Statements comply with the Charities Act 2011 and the Trust Deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. By Order of the Board of Trustee5 ..16J.i.kl.... ..2021 .. Trustee IICWI lFJ& kJELgki
Inde endent Examiner's Re ort to the Trustees of Hackne Free and Parochi I Schools Educational Trust Independent examiner's report to the trustees of Hackney Free and Parochial Schools Educational Trust I report to the charity trustees on my examlnation of the accounts of Hackney Free and Parochial Schools Educational Trust Ithe Trust) for the year ended 5th April 2021. Responsibilities and basis of report As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordan with the requirements of the Charities Act 20111'the Act'l. I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directlons given by the Charity Commission under section 14515llbl of the Act. Independent examlner'$ statement I have completed my examination. I confirm that no material matters have come to my attention in tonnection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respert of the'Tru5t as required by section 130 of the Act,. or the accounts do not accord with those records,. or the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention Should be drawn in this report in order to enable a proper understanding ol the accounts to be reached. Matthew Dobbins FCA Dunkley's Woodlands Grange Woodland5 Lane Bradley Stoke Bristol BS32 4JY Date.. 1710112022
Hackne Free and Parochial Schools Educational Trust Statement of Financial Activities for Year Ended 5 A ril 2021 Unrestrlrted Re5tri(ted Z021 2020 Note funds funds Total Funds Total Funds Income Investment Incoft 73,302 73,302 86,656 Total Income 73,302 73.302 86,656 Expenditure Charitable expendirure 58,CKK> 58.orKI 50,460 other Costs 20,611 20.611 15,019 Total Charitable Expenditure 78,611 78.611 65.479 Unrealised gains1llossesl on investment assets 327,750 327.750 1275,3151 Net Incomellexpenditurel 322.441 322.441 1254,1381 Net Movement in Funds 322,441 322.441 1254.1381 Balance at beginning of year 2.381.404 8,600 2,390,004 2,644,142 Balance at end of year 2.703.845 8.600 2,712,445 2,390,004 The Trust had no cOgnised Ealns or losses other than those stated above. All income Is derbved Irom continuing activities. The notes on pages 11-18 form part of these financial statements io
Hackne Free and Parochial Schools Educational Trust Balance Sheet for Year Ended S A ril 2021 Note 05.04.21 05.04.20 Total Funds Total Funds Foxed Asse1$ Tanglble assets- Leasehold property Investments 7W,000 1,630,940 1,958,690 2,658,690 2.330.940 Cuffont A55ets Debtots 1.959 56.454 1.899 60.933 Cash at bank and in hand Credltors Amounts falling due withln one year 14,6581 3.7681 Current Assets Less Current Llabilitles 53,755 59.064 NetAsset5 2,712,445 2.390,004 Funds io General fund 2.198,845 505,ODJ 8,600 1,876.404 505,000 8.600 General fund Revaluatlon Reserve Restrlcted fund IRH fjapper Legacy) 2,712,445 2.390,004 Approved by the trustees and signed on their behalf by.. . Trustee Ib/lz/ 2021 The notes on page5 11-18 form part of these financial statements li
Hackne Free and Parochial Schools Educational Trust Accountin Policies for Year Ended 5 A l. Basis of Accounting ril 2021 These accounts have been prepared for the year to S April 2021. The accounts have been prepared under the historical tost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these attounts. The accounts have been prepared in actordance 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 IFRS 102) (Charities 50RP FRS 1021 issued on 16 July 2014, Update Bulletin l issued on 2 February 2016, the Financial Reportirkg Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The date of transition to the Charities SORP FRS 102 was l July 2014. This is the first set of accounts of the charity prepad in accordance with the Charitie5 SORP FRS 102. The charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented.in sterling and are rounded to the nearest pound. Assessment of goinE concern The trustees have assessed whetherthe use of the going concern assumption is appropriate in preparin8 these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial ststements. The trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. Given the additional challenges of Coronavirus and Covid-19 in 2020121, the trustees are of the opinion that the Charlty will still have sufficient resources to meet its liabilities as they fall due. 12
Hackne Free and Parochial Scho Educational Trust Accountin Policies for Year Ended 5 A ril 2021 2. Accountlng policies Leasehold Property The leasehold property is included at market value, less depreciation and impairment at the Balance Sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities ISOFAI. The property, now vacant, is currently not being marketed for sale and purchase of the freehold is on hold pending clarification of the legal title. The Trustees have recently engaged a solicitor to prepare an application to the Land Registry to try to resolve the issue around the title. Investments Unit Trust investments have been valued at middle market price5 at the Balance Sheet date. Ary gain or loss on revalijation is taken to the SOFA. Other investments are high interest cash deposit accounts. Listed 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 closing quoted market prlce. The charity does not acquire put options, derivatives or Other complex financial instruments. Realised gains lor losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Reali5ed and unrealised investment gains lor losses) are combined in the Statement of finoncial activities and are credited lor debited) in the year in which they arise. Other Investments are included at cost, which is considered to be approximate to their market value. Income Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably. and it is probable that the income will be received. Income comprises notional rent income, investment income and interest receivable. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Expenditure Liabilitles are recognised as expenditure as soon as there is a legal or constructive obligation committing the group or charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be rnea5ud reliablv. 13
Hackne Free and Parochial Schools Educational Tru Accountin Policies for Year Ended 5 A ril 2021 Expenditure {continued) All expenditure is accounted for on an accruals basis and includes attributable VAT which cannot be recovered. Expenditure comprises dirett costs and sUPPOrt costs. All expenses, including support costs, are allocated to the applicable expenditure heading. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions Allocation of support and governance costs Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the chority it is necessary to provide support in the form of financial and governance procedures, provision of office seNices and equipment and a suitable working environment. Governance costs comprise all costs relating to the public accountability of the charity and it5 compliance with regulation and good pradite. These costs include costs relating to the'independent examination of the financial statements and legal fees. Support costs and governance costs are allocated to the charlvs single charitable activity. Taxation The Trust is treated for tax purposes as a charity and is not liable to Income Tax on investment income or income derived from charitable activitie5. The Trust is not registered for VAT. All amounts in the SOFA are shown inclusive of VAT, where relevant. Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayment5 are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. Cash at bank and In hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Creditors and provislons Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, nd the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. 14
Hackne Free and Parochial Sch ols Educational TfU5t Accountin Policies for Y ar Ended 5 A ri12021 Fund accountlng Restricted funds are monies raised for, and their used restricted to. a specific purpose. or donations subject to donor imposed conditions lincome and expenditure relatlng to the R H Gapper Legacvl. Unrestricted funds represent those monies that are freely available for application towards achieving any charitable purpose that fall within the charity's charitable objects. Statement of cash flows The financial statements do not include a statement of cash flows because the charity is exempt from the requirement to prepare such a statement under the Charities SORP FRS 102 Update Bulletin l. 15
Hackne Free and Parochial Schools Educational Trust Notes to the Financial Statements for Year Ended 5 A ri12 21 3. Charitable Expenditure Unrestricte Grants to The Urswick School Grants to St John and Stjarnes Prlmary School 2021 2020 30,276 20,184 58.000 58,000 50,460 zozi 2020 4. Othercosts Independent Examlnelsfee Accountancyfees Clerking feÈS lThPI Legal fees Premise expenses Other sundry expenses 600 720 2,814 6,397 3,600 4,818 1.909 3,938 2.402 3,452 2.598 2,382 20,611 15.019 The trustees received no MUneratIon fcrtheir servtes to the Trust and no expenses were relmbursed. 5. Movement on Unit Trust Investment5 2021 2020 Investments at market value at beginning of year 1.630.940 1,906.255 Additions In year SufpIu5lllossl on waluatK)n of investments atthe year eMI 327,750 1275,3151 Investments at market value at end of year (see note 71 1.958,690 1.630,940 TheTrust Is not chargeable to corporatlon tax on capital galns and. therefore, there would be no IKabiif(y to CorpOrat)n tax on capital gains if the investments were realised atthe market value shown in the Financial Staternents. 16
Hackne Free and Parochial S hoo15 Educational Trust Notes to the Financial ements for Year Ended 5 A ril 2021 6. Tang]ble Fixed Assets 2021 2020 Leasehold prOrtY3tya1UatIOn at beginningand end of year 7(Kl,000 700,OLK) The Trust owns the leasehold interest In the School Keepei's House of Urswick Sch¢)ol Iformerlythe Hackney Free and Paiochial School), whlch was independently valued by 8unch and Duke on 15 July 2014. The le35e runs from June 1985 to October 2083. The PToperty, while previously understood to be freehold has been corrected to dls¢lose the COrCt ownershlp. The trustees have agreed that the property should be shown at market value. The property* now vacant. Is currently not being marketed forsale and purtha5e of the freehold Is on hold pending ckrlflcation of An updated valuation was obtsined in 2017 from Bunch and Duke wlth an effective date of 05.04.17. The revlsed valuatlon was reflected in the Financlal siatements forthe yearto 5 April 2017. 2021 Z020 Market Market Value Value 7. Investments Name of Investment Units Cost COIF Charltles, Investment Fund 48,411.49120201 48.411.49120211 Incorne unrts 369,686 867,843 725,227 COIF Charitie5' Property Fund Income units 82,294.24120201 82.294.24120211 87.884 94,144 96,235 Charffttnd- Equf(ie5 Investment Fund for Charities- Income units 67,712.106120201 67.712.106120211 6911X 996,703 809,478 1.144570 1,958,690 1,630,940 8. Debtor5 and Prepaymet 2021 2020 Debtors Prepayments 1,959 ,959 1,899 1,899 9. Creditors 2021 Z020 CdItorS Ac¢ruals 3.608 1.050 4,658 2,943 825 3.768 17
Hackne Free and Parochial Schools Educational Trust Notes to the Finantial Statements for Year Ended 5 A ril 2021 io. Assets analysed by Fund 2021 Investment pr¢)perty Net Current Investments Total General Fund 195,OCK) 1.958,6 45,155 2.198,845 General Fund Revaluation Reserve 505.orK) 505,000 Restritted Fund 8.600 8,600 700,OCK) 1,958,690 53,755 2.712,445 10. Assets afialysed by Fund 2020 Investment Property Net Current Investrnents Total General Fund 195.OQK) 1,630,940 50,464 1.876.404 General Fund Revaluation Reserve 505,OCK) 505.000 Restricted Fund 8,600 8,600 700.000 1,630940 59,C64 2,390,IJ)4 11. Related Parties The trustees consider The Urswick School and St John and St James Primary School to be related parties of the charity due to the Close ties between the charrty ènd the 5choo15. The Trustee< Annual Report details how ihe objects of the charity interact with the Schools. Note 3 of the h'nancial statements details, in aggregate, the grants awarded to the schools. The tru$tees recelved no remuneration for theirservices to the Tnjst and no expenses were reimbursed. 18
Hackne Free and Parochial Schools Educational Trust Note5 to the Financial Statements for Year Ended 5 A ril 2021 12. Comparative statement of Flnanclal A¢iivitiesfor Ye•r Ended 5 April 2020 Unrestrlcted Restrlrted 2020 Total Funds Note funds funds Income Investment Income 86,656 86,656 Total Income 86,656 86,656 Expendlture Charitable expenditure 50,460 50,460 Other Costs 15,019 15,019 Total Charitable Expendlture 65,479 65,479 Unreallsed losses on investments assets 1275,3151 1275.3151 Net Expenditur• 1254,1381 1254,1381 Net Movement in Funds 1254,1381 1254,1381 Balance at beginning of year 2,635.542 2.644,142 Balah¢t ¥t end of year 2,381,404 8,600 2.390,(h)4 19