**Charity Registration No. 1117515**
**Company Registration No. 06000294 (England and Wales)**
## **NANCY REUBEN PRIMARY SCHOOL**
**ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2020**
## **NANCY REUBEN PRIMARY SCHOOL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Dayan A David|
|---|---|
||Reuben Foundation whose Trustees are:|
||M Turner|
||S D Reuben|
||R A Reuben|
||J A Reuben|
||R Stone|
||D L Reuben|
||D Reuben|
||E Sawyer|
|**Head Teacher**|Mr A Wolfson|
|**Charity number**|1117515|
|**Company number**|06000294|
|**Principal address**|48 Finchley Lane|
||Hendon|
||London|
||NW4 1DJ|
|**Registered office**|73 Cornhill|
||London|
||EC3V 3QQ|
|**Independent Auditors**|Gerald Edelman LLP|
||73 Cornhill|
||London|
||EC3V 3QQ|
|**Bankers**|HSBC|
||1 Central Circus|
||Hendon|
||London|
||NW4 3JU|
## **NANCY REUBEN PRIMARY SCHOOL**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 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 - 21|
## **NANCY REUBEN PRIMARY SCHOOL**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The Trustees present their annual report and accounts for the year ended 31 August 2020
The accounts have been prepared in accordance with the accounting policies set out in note s to the accounts and comply with the charitable company's governing documen t , 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 from 1 January 2019.
## **Objectives and activities**
The objects of the charity were to advance and promote for the public benefit Jewish religion and culture as well as religious understanding by providing educational facilities and services for children up to the age of eleven years.
In order to achieve these objectives the charity operates an independent primary school which offers a safe and supportive environment for the education of the children of the Jewish faith. The school gives them a good grounding to progress into secondary school. The school's aims are to give a balanced curriculum of both secular and religious studies. The ethos of the school is the strong belief that ignorance causes many of the difficulties in society today and therefore the aim is that all of their pupils leave school as an example of living and celebrating diversity.
The Trustees confirm they have given careful consideration to the Charity Commission's general guidance on public benefit in deciding what activities the charitable company should undertake. The charity has a specific policy whereby bursaries are paid in the form of reduced fees to pupils who come from disadvantaged families in the Jewish community. Bursaries awarded in the year under review were £20,690 (2019: £25,985)
## **Achievements and performance**
Nancy Reuben Primary School is an orthodox Jewish, independent, non-selective school for boys and girls aged 2 to 11. NRPS strives for academic excellence whilst endeavoring to create a caring and nurturing environment that will ensure the spiritual, moral and academic growth of each and every child in an Orthodox Jewish Framework. We inspire in our children a love of learning and a desire to acquire knowledge which extends to both secular and Jewish studies. We take great pride in the diversity of our pupil backgrounds and aim to create a community in the school which understands and values individual traditions and customs.
The school continues to go from strength to strength both academically and in the community sense and our intake in September 2020 was very good.
## **Success through Academic results**
Although not obliged to perform national standardized tests, we benchmark the education of our children against these to ensure that we remain above national expectations and to allow parents to compare the quality of the education that we offer with other schools. Assessments are performed from Year 1 to Year 6 and we are then able to track the attainment and progress of our pupils from their point of entry as they go through the school.
It is worth noting that entry to NRPS is not based on academic ability. There is no entrance exam. Graduates of NRPS are able to go on to the secondary school of their choice. A significant proportion of our pupils continue their education at Hasmonean, JFS or Immanuel College as their families choose to keep their schooling in a Jewish environment. A number of families opting for alternatives in the private sector have seen their children obtain places at Haberdashers' Aske's Boys School, North London Collegiate School, Haberdashers' Aske's Girls School and Immanuel College. Our graduates are consistently in top sets and performing well in whichever school they transfer to at age 11.
Whilst academic success is important it is not our only measure of success. It is of vital importance to us and our pupils that NRPS operates as a community and a family; an environment that helps children to grow into confident and responsible individuals. Central to our ethos is that children learn a sense of social responsibility: responsibility for each other, the wider community and themselves.
- 1 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
Within the school a sense of responsibility is conveyed to the children through empowerment and friendship. The key initiatives to develop a sense of responsibility are: - Student council where children elect their peers to represent them and contribute to decisions made about the activities of the school; - Star of the Week to reward children from each class in assembly (not just for academic success).
To develop understanding and acceptance of diversity we teach our children about different countries, and cultures. Further, we teach Modern Hebrew (Ivrit) as a modern foreign language. Our school is now a JNF Partner School. JNF fund a teachers two days a week to promote Israel Education and Ivrit.
Externally, our children participate in wider community activities including taking gifts to, and singing to residents at local care homes and competing against other Jewish schools in the Etgar challenge. In addition, our children are empowered to select charities and raise funds eg for the Jewish Care or GIFT.
NRPS is fortunate to have a strong and active parent body that values the education given to their children and help where possible to contribute to the success of their children and the school as a whole. They contribute in a variety of ways including helping with school outings. The PTA organise both several fundraising events annually and occasions for parents to socialise. Our parent body practices and reinforces the values of the school by showing kindness and charity to others in need within the school. For example, meal rotas are often organised to help parents through difficult periods of time be it due to ill health, the loss of a family member or the birth of a new baby.
We are very privileged to have outstanding staff, who work closely together and with parents to ensure that the academic standards and the welfare of the children is maintained.
The school, parents and pupils know that the continued success of our school is due to the generosity of our benefactors the Reuben Foundation and the Od Yosef Hai Community and we look forward to their continued support in developing the school further.
## **Financial review**
The net deficit for the year was £1 62 , 957 (201 9 surplus £ 196 , 793 ).
Total income received was £1, 398 , 234 (201 9 : £1, 727 , 454 ). Income from school fees amounted to £ 775,451 (201 9 : £8 55 , 604 ) a decrease of 9.4% mainly due to covid-19 pandemic fees were reduced for the summer term. Donations received amounted to £ 314 , 029 (201 9 : £ 498 , 04 9). Of this sum £46,596 (2019: £ 60 , 469 ) related to restricted donations (see note 16) with the majority of the balance relating to donations from the Reuben Foundation (see note 19).
Total expenditure amounted to £1,5 61 , 191 (201 9 : £1, 530 , 661 ) The main element was staff costs of £ 1,122,507 (201 9 £ 959 , 390 ). Please see note 7 for detailed breakdown of expenditure.
The charity holds free reserves amounting t o £ 173,528 (as represented by general unrestricted funds less a deduction for fixed assets). These reserves are required to be retained to finance the ongoing working capital requirements of the school. After a challenging period the Trustees have restored the school to comparative financial health with the continued support and assistance of the Reuben Foundation. The budget for the current year shows a projected surplus of circa £ 3 00,000 which includes a donation received from the Reuben Foundation of £450,000 in November 2020. The trustees are aware of the need to maintain this position and are constantly taking steps where possible to improve the position including raising additional funds from independent sources.
Designated funds were held at the balance sheet date of £229,6 2 5 representing funds raised for proposed school building improvements.
## **Structure, governance and management**
Nancy Reuben Primary School, a company limited by guarantee, was set up to provide educational facilities for Jewish children in North London. The charitable company is governed pursuant to its memorandum and articles of association. The charitable company commenced its activities on 1 September 2008.
- 2 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The Trustees, who are also the directors for the purpose of company law, and who served during the year were:
Dayan A. David Reuben Foundation M Turner S. D. Reuben A. Benjamin J A Reuben R. Stone D L Reuben E Sawyer Mr R D Reuben
Reuben Foundation is a charitable company registered with the Charity Commission (registration no:1094130). A full list of the Trustees of this charity at the date of this report has been included on the information page.
The Trustees may at any time co-opt any individual that they select to be a Trustee with such appointment lasting to the next annual general meeting. They may also formally appoint additional Trustees on a permanent basis at any time.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
All current Trustees are appraised of new developments in charity law and practice. All new Trustees are provided with all relevant information appertaining to its affairs to ensure that they can understand and meet the responsibilities the role entails.
The charity and the school are run by a Governing Council that maintains control of the funds retained and are solely responsible for their disbursement. The Governing Council consists of a representative of the Trustees and additional governors appointed including from the local community. The Governing Council currently comprises:
S Kelaty (Chairman) H Newman (Vice Chairman) P Adler A Berkley (Finance) D Ezra B Cohen A Benitah J Bokobza R David J Muyal (Finance) C Clif D Staszewski E Feigin R Conway C Blass
The Headteacher , Mr Anthony Wolfson has the responsibility for the day to day running of the school and reports formally to the Governing Council on all matters relating to the school.
- 3 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The Board has examined the principal areas of the Charity’s operations and considered the major risks faced in each of these areas. The review and assessment of the position was carried out in conjunction with the Foundation’s auditors, with specific reference to the internal controls required, to ensure the following criteria were met:-
- Comprehensive strategic planning.
- Comprehensive budgeting and management accounts.
- Established organisational structure and lines of reporting.
- Clear authorisation and approval procedures.
In the opinion of the Trustees the Charity has established suitable systems which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day-to-day operations.
## **Statement of Trustees' responsibilities**
The Trustees, who are also the directors of Nancy Reuben Primary 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.
## **Auditor**
A resolution proposing that Messrs Gerald Edelman be reappointed as auditors of the company will be put to the members.
- 4 -
NANCY REUBEN PRIMARY SCHOOL
TRUSTEES, REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT}
FOR THE YEAR ENDED 31 AUGUST2020
DI8Glosure ot Inlom)•tlon to audltor
Each of the Truste85 has confimied Ihat thèra is no infonna.On of which thoy are aware whicl) is rèl8vanl to
the audbt. bul of whlch tho 8udllor Is unaware. They have furlher confjmied Ihal they have takan appropriata
steps to Identify such relevant Infomation and lo establish that the auditor Is aware of such Information.
The Truslee8' re
wa5 approved by the Board of Twstses.
Dayan A. Davld
Truste•
Datsd.. 24 May 2021
## **NANCY REUBEN PRIMARY SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NANCY REUBEN PRIMARY SCHOOL**
## **Opinion**
We have audited the financial statements of Nancy Reuben Primary 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. 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 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the Trustees' Report for the financial year for which the accounts are prepared is consistent with the accounts; and
- the Trusteee s’ Report has been prepared in accordance with applicable legal requirements.
- 6 -
NANCY REUBEN PRIMARY SCHOOL
INDEPENDENT ALIDITOR'S REPORT ICONTINUED)
TO THE TRUSTEES OF NANCY REUBEN PRIMARY SCHOOL
Matters on vihKh we are required to report by ex¢tption
In the Iwhl OT Iho knOe and un(*r5tandir¥ of the charrta crryany aThl ts elv¥•m61 ot4ained ki thB
course of Ihe ajrt. we have thnbfE¢J malenal misslateffents in dwectors. rertyjrt Inc4je %Yilhin the
Trustees. report.
Wv have nothing to report in re5F¢cI ol Ihe mattern in rela1J ks whith Ihe Compan*s Acl 21KhS
requires us 10 rÈw>rt lo you rf. fww)n'
adequalo accwnlang havfr been kèpt. rntLm$ *j•1 loi audrt have rnl recsved
frem branc*es rvjt wsted by u5.. or
Ihe finanDal stalements are Trjt awÈÈmoni with atnt9 rocords relums..
certain disdwres ol truslees. 5wJfivJ by I*Af aro made. c
have not Tecewed all the IrrfOrma and ¢XPrIa$ knr our a1.. or
ResponsSbllities ol Trustv
As explained mort fulty Slatemenl of Truslpe* Re5Wnskn1th5. Ihe TnJsleÈs' 1esrths1b lor Ihe
preparabw ol the accounts and for bwj saIried Ihal ItY gwe a twe and law view. and lar Initrmal control
as Ihe diioct£¥s deiemne ts necessary ¢0 $Warats of at5 Ihal arn fr¥6 from mabnal
misslalemenl. whether (*Je b Iraud £v efftrf.
In preparirq Itw accounls. t1 Trustoes are re5PO75*1w tr 8ssewg the crffjpany5 ablY lo ¢¢tin8
S 8 goiro corM, dwk)sww. as apphcabkn. matter5 lo Cc#Tr and ra the going concem
basis ol acc(xJnling Un55 Ihe Tnolw$ ¢ther inleTrJ lo 318 Ihe C(par ty lo oF¢rakns. or have no
alis1 aiiwnabvo bth 10 do so.
Auditorfi r•spOn11111OlI lor aud al th• fln*ncl•l *thtÈm•n
Our obiÈctive$ 8r& 10 obiam reasonable assu(an¢* abcvtsl %¥*elher Ihe f1¥1 $tsknnwts as a ore freo
Irom maienal MS¢arenI. %*holher due lo lrn¢xl or err&T. and 10 isgje an audrtorfs rewt Ihdl indude5 our
opinKn. ReasoThatye as511rarKe 15 • h¥4h *vel of assurarKe trtjt 1$ not a warnnlee Ihai an audit (xjnducièd in
acrA>rdanco with ISAS IUKI aMtay5 ¢Jel¢d a maler431 misstalthmcnl when rt ¢Kisis. Mis$talemen15 can anse
from fraud crf crrw an(1 oro ¥Il¥] fflaienal rf. or irb Ihe aggregale. Ihey aSon8bty bo
e¥peclèd to the acontynic 011 ol users the bas#1 ofth*o finar 51atsments.
A lurthof d85crytsw ol re5PM$es lor LI authl of Ihe finar? stalemerts Irtsl8d on IhB Finanryal
Reporbng CouncJ15 blts at". hltps.IhThThv.IrC.ory.uklawJil¢)tsr8spS*)Ae$. TIw5 ¢Jesuww)n f¢)rm5 Part ol our
aLtthto¢s repNL
This report Is mado sc4ety to the t*thtsL4e cthxpanYs members. as a boty. xcordanL* with Chaptef 3 of Part
16 of the cCpar¥O$AcI and rLYb)r& under thatprt Our art th has beÈn urthrtaken so that
we might staio lo It th*ab (x¥mpanl5 membets I*Se matters we aTr required tQ 51ale to Ihem In an
audrtors. rewrt and for m othei purwse To ItE I*51 exlenl pern¢d by Lqw. do not attept or assume
responsibilrty lo anyono othor than the crynpy arKI ts rrwthrs as a b)dy. trIraj11 work. f¢y this
report. or for the ¢4Mnths we have fome¢J.
Hiien Pat•1 FCCA IS•nior Sta1( A11101>
lor and on behall ol
loki
Chartertd Ac¢ountan¢s
Statutory Auditor
## **NANCY REUBEN PRIMARY SCHOOL**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Unrestricted Designated**
**Restricted**
**funds**
**funds**
**funds**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**2**
267,433
-
46,596
Charitable activities
**3**
937,813
-
-
Investments
**4**
564
-
-
Other income
**5**
145,828
-
-
**Total income**
1,351,638
-
46,596
**Expenditure on:**
Raising funds
**6**
7,338
-
-
Charitable activities
**7**
1,504,336
-
49,517
**Total expenditure**
1,511,674
-
49,517
**Net income/(expenditure)**
**before transfers**
(160,036)
-
(2,921)
Gross transfers between funds
30
(30)
-
**Net (expenditure)/income for the year/**
**Net movement in funds**
(160,006)
(30)
(2,921)
Fund balances at 1 September
2019
406,804
229,655
2,921
**Fund balances at 31 August**
**2020**
246,798
229,625
-|**Total**
**2020**
**£**
314,029
937,813
564
145,828
1,398,234
7,338
1,553,853
1,561,191
(162,957)
-
(162,957)
639,380
476,423|**Total**
**2019**
**£**
498,049
1,053,903
278
175,224
1,727,454
40,974
1,489,687
1,530,661
196,793
-
196,793
442,587
639,380|
|---|---|---|
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 -
NANCY REUBEN PRIMARY SCHOOL
BALANCE SHEET
AS AT 31 AUGusf2020
2020
2019
Notes
Flxed assets
Tangible assets
12
73.270
93.187
Currènt assets
Dgblors
C8sh al bank and In hand
13
86.774
477.988
92,417
620,436
564.762
712.853
Cr•dltors.' amounts lalllng duè wlthln
ong y•ar
14
1161.6091
{166,660}
Not curr•nt assets
403,153
546,193
Tol41 assets le$• curr•nt llablllt6
476.423
639.380
In¢om• funds
Reslricled fLtnds
16
2,921
Design8led funds
General unrestricted funds
17
229.625
246.798
229,655
406,804
476,423
636,459
476,423
639,380
The accounts were approve¢J by the Truslees on 24 May 2021
Dayan A. David
Tru8t¢•
Cornpany Reglstratlon No. 06000294
## **NANCY REUBEN PRIMARY SCHOOL**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**20**
**Investing activities**
Purchase of tangible fixed assets
Interest received
**Net cash used in investing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
**£**
(128,611)
(14,401)
564
(13,837)
(142,448)
620,436
477,988|**2019**
**£**
**£**
94,907
(58,068)
278
(57,790)
37,117
583,319
620,436|
|---|---|---|
- 10 -
**NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **Charity information**
Nancy Reuben Primary School is a private company limited by guarantee incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charitable company's governing document, 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)” (as amended for accounting periods commencing from 1 January 2019. The charitable company is a Public Benefit Entity as defined by FRS 102.
The accounts 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 accounts have been prepared under the historical cost convention to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
These accounts are prepared on the going concern basis. The Trustees have a reasonable expectation that the charitable company has adequate resources to meet any liabilities as they fall due and will continue in operational existence for the foreseeable future.
In light of the recent Covid-19 outbreak in the UK and the likely economic disruption that this will cause, the Trustees have considered the impact that this could have on the company's affairs. Like many businesses the results of the charitable company is impacted by the health of the economy. Having considered this, and taking into account government support, the Trustees expect the impact on the charitable company to be limited to the short term and therefore do not believe it to pose a significant risk to the long term prospects of the charity.
Accordingly, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements for the year ended 31 August 20 20 .
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts .
Restricted funds are subject to specific conditions by donors as to how they may be used.
## **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.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
All other income is included on an accruals basis.
- 11 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is ac counted for on an accruals basis and the irrecoverable element of VAT is included in the expenses to which it relates.
Charitable expenditure relates to those costs incurred directly associated with the provision of education. These include overheads applicable to the buildings used for educational purposes as well as staff costs. Charitable expenditure also includes bursaries awarded by the school to disadvantaged pupils as well as other support costs.
Support costs also include governance costs which cover expenditure relating to public accountability of the charity and its compliance with regulation and good practice. These costs include those incurred with regard to strategic planning, legal and audit fees and meeting its statutory obligations .
The costs of raising funds are represented by costs incurred in inducing people and organisations to contribute financially to the charity's work. This includes the cost of advertising for donations and the staging of fundraising events.
## **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 5 years Fixtures, fittings & equipment 25% reducing balance
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 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 ) .
- 12 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **(Continued)**
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
## **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.
## _**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.
- 13 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**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 and are payable to the T eacher s pension scheme.
## **1.12 Taxation**
As the registered charity the Society is exempt from taxation on its activities which fall within the scope of part 10 ITA 2007 and section 256 of the Taxation of Chargeable Gains Act 1992 .
## **2 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
257,151
46,596
Other
10,282
-
267,433
46,596
**For the year ended 31 August 2019**
437,580
60,469
**Charitable activities**
Fees receivable
Local authority income
Other income||**Total**
**2020**
**£**
303,747
10,282
314,029
**2020**
**£**
775,451
117,129
45,233
937,813|Total
2019
£
487,909
10,140
498,049
498,049
**2019**
**£**
855,604
114,179
84,120
1,053,903|
|---|---|---|---|
|||||
## **3 Charitable activities**
- 14 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **4 Investments**
|Interest receivable
**Other income**
PTA Fundraising
PTA Gala Event
Furlough income|**2020**
**£**
564
**2020**
**£**
11,267
29,620
104,941
145,828|2019
£
278
**2019**
**£**
12,574
162,650
-
175,224|
|---|---|---|
## **5 Other income**
During the year the charity received grant of £104,941 under the Coronavirus Job Retention Scheme.
## **6 Raising funds**
|Fundraising and publicity
Other fundraising costs|**2020**
**£**
7,338
7,338|**2019**
**£**
40,974
40,974|
|---|---|---|
- 15 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **7 Charitable activities**
|Staff costs
Depreciation and impairment
Rent and rates
Insurance
Educational supplies
School trips and sports activities
Light and heat
Security
Printing, postage and stationery
Telephone and internet charges
Repairs and maintenance
Refreshments
Advertising
Legal & professional fees (including recruitment fees)
Bookkeeping expenses
Bad debt write off
Sundry expenses
Cleaning
Computer expenses
Grant funding of activities (see note 8)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds
**For the year ended 31 August 2019**
Unrestricted funds
Restricted funds|**2020**
**£**
1,122,507
34,318
56,726
7,405
34,784
16,269
14,890
51,203
23,232
2,536
33,244
24,135
4,335
9,834
13,180
17,588
17,552
22,346
15,847
1,521,931
20,690
11,232
1,553,853
1,504,336
49,517
1,553,853|**2019**
**£**
959,390
37,658
39,630
7,530
41,884
63,583
16,320
60,152
20,422
3,232
31,550
45,539
1,985
11,712
16,418
36,008
22,790
22,346
14,281
1,452,430
25,985
11,272
1,489,687
1,432,139
57,548
1,489,687|
|---|---|---|
- 16 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **8 Grants payable**
|Grants to individuals
**9**
**Governance costs**
Audit fees
Legal and professional
Bank charges|**2020**
**£**
20,690
**2020**
**£**
9,520
1,290
422
11,232|**2019**
**£**
25,985
**2019**
**£**
9,540
750
982
11,272|
|---|---|---|
||||
## **10 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefit during the year. No expenses were paid to the Trustees in the year.
- 17 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **11 Employees**
The average monthly number of employees during the year was:
|Teachers
Support staff
Administration
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
£70,000- £80,000|**2020**
**Number**
27
16
5
48
**2020**
**£**
1,018,417
82,711
21,379
1,122,507
**2020**
**Number**
1|**2019**
**Number**
29
15
5
49
**2019**
**£**
876,244
64,842
18,304
959,390
**2019**
**Number**
1|
|---|---|---|
- 18 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**12**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Fixtures,**
**fittings &**
**equipment**
**£**
**£**
**Cost**
At 1 September 2019
60,774
252,498
Additions
-
14,401
At 31 August 2020
60,774
266,899
**Depreciation and impairment**
At 1 September 2019
50,880
169,205
Depreciation charged in the year
9,894
24,424
At 31 August 2020
60,774
193,629
**Carrying amount**
At 31 August 2020
-
73,270
At 31 August 2019
9,894
83,293
**13**
**Debtors**
**2020**
**Amounts falling due within one year:**
**£**
Trade debtors
62,087
Other debtors
21,224
Prepayments and accrued income
3,463
86,774
**14**
**Creditors: amounts falling due within one year**
**2020**
**£**
Other taxation and social security
20,998
Trade creditors
12,945
Other creditors
118,187
Accruals and deferred income
9,479
161,609|**Total**
**£**
313,272
14,401
327,673
220,085
34,318
254,403
73,270
93,187
**2019**
**£**
73,460
5,261
13,696
92,417
**2019**
**£**
17,942
39,264
100,975
8,479
166,660|
|---|---|
## **15 Share capital**
The charitable company is limited by guarantee and therefore has no share capital.
- 19 -
**NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **16 Restricted funds**
During the year the C har ity receive d funding of a restricted nature from the Community Security Trust for use to cover part of their security costs incurred in the year .
## **17 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes namely future building improvements :
|||**Balance at**|**Resources**|**Balance at**|
|---|---|---|---|---|
||**1**|**September**|**expended**|**31 August 2020**|
|||**2019**|||
|||**£**|**£**|**£**|
|Designated funds||229,655|(30)|
229,625|
## **18 Pension Commitments**
The company provides pension arrangements to all full time employees through defined contribution schemes.
The pension cost charge for the year was £ 21 ,3 79 (201 9 : £ 18,304 ).
## **19 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|79,500|74,200|
## **Transactions with related parties**
During the year the charitable company entered into the following transactions with related parties:
The charitable company pays rent on the school premises to Od Yosef Hai, a registered charity of which the Trustee Dayan A David is also a trustee. The amount paid for the year under review was £ 42 ,000 (201 9 : £36,000). No formal lease exists in respect of this arrangement at present.
In addition, the charitable company received unrestricted donations totalling £ 250 ,000 (201 9 : £ 387 ,000) from The Reuben Foundation, a trustee of the company.
- 20 -
## **NANCY REUBEN PRIMARY SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **19 Related party transactions (Continued)**
During the year the sum of £8 , 867 (201 9 : £9, 50 0) was paid to Yossi David (son of the trustee Dayan A David) as salary.
|**20**|**Cash generated from operations**|**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
||(Deficit)/surpus for the year|(162,957)|196,793|
||Adjustments for:|||
||Investment income recognised in statement of financial activities|(564)|(278)|
||Depreciation and impairment of tangible fixed assets|34,318|37,658|
||Movements in working capital:|||
||Decrease in debtors|5,643|33,816|
||(Decrease) in creditors|(5,051)|(173,082)|
||**Cash (absorbed by)/generated from operations**|(128,611)|94,907|
- 21 -