**Registered Company No. 06410037 Registered Charity No. 1121757**
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION**
**REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION CONTENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**CONTENTS**|**Page**|
|---|---|
|Charity Information|2 – 3|
|Trustees’ Report|4 – 10|
|Independent Auditor’s Report|11– 14|
|Consolidated Statement of Financial Activities|15|
|Balance Sheets|16|
|Consolidated Cash Flow Statement|17|
|Notes to the Financial Statements|18 – 30|
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2020**
## **CHARITY TRUSTEES**
The Charity Trustees of the Independent Schools’ Bursars Association Charity (‘ISBA’ or the ‘Association’) are the members of the Board. They have all served throughout the year except where indicated. Together with past Trustees who served in the year as indicated, they are:
Eleanor Sharman Chair Nicholas Shryane Vice Chair Paul Flowerday Vice Chair Jim Doherty* Chair of FRAAC Jonathan Molloy Co-opted (Chair, Scottish Bursars) Norman Patterson Elizabeth Raper* John Wilder Kathryn Pillar Miles MacEacharn* Amanda Webb Neil Cufley Guy Ralphs (Resigned 28 June 2020) Penelope Rudge (Resigned 28 June 2020) Timothy Williams* (Resigned 31 July 2020 on re-appointment to a new school)
* Member of the Finance, Risk, Audit and Assurance Committee (FRAAC) The Chair and Vice Chairs are ex-officio members of FRAAC.
## **KEY MANAGEMENT PERSONNEL**
## **Chief Executive**
David Woodgate
**Chief Operating Officer**
**Professional Development Director/ Director of Training and Consultancy**
John Murphie Position vacant, duties discharged by Chief Operating Officer
## **Commercial Director**
Barbara Jackson
## **Research Director**
Edwina Dean-Lewis
**Registered Address:**
Bluett House Unit 11-12 Manor Farm Cliddesden Basingstoke Hampshire RG25 2JB
## **Website:**
www.theisba.org.uk
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2020**
## **ADVISERS**
|**Bankers:**|Lloyds TSB Bank plc|
|---|---|
||Basingstoke Branch|
||2 Winchester Street|
||Basingstoke|
||Hampshire|
||RG21 7EB|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||West Malling|
||Kent|
||ME19 4JQ|
|**Auditors:**|Crowe U.K. LLP|
||Aquis House|
||49 – 51 Blagrave Street|
||Reading|
||RG1 1PL|
|**Solicitors:**|Farrer & Co LLP|
||66 Lincoln’s Inn Fields|
||London|
||WC2A 3LH|
|**Insurance Brokers:**|Regis Mutual Management|
||8 Maltings Place|
||169 Tower Bridge Road|
||London|
||SE1 3JB|
|**Investment Managers:**|Rathbone Investment Management Limited|
||Port of Liverpool Building|
||Pier Head|
||Liverpool|
||L3 1NW|
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
The Trustees present their annual report for the year ended 31 December 2020 under the Companies Act 2006 and the Charities Act 2011 and the audited accounts for the year.
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
Founded in 1932, ISBA was established as an unincorporated charity under a trust deed in 1964 and registered with the Charity Commission under charity number 313680. In October 2007, it became incorporated as a charitable company with the liability of members being limited to £10 each by guarantee, under company number 06410037 and charity number 1121757. Details of ISBA’s Registered Office and key personnel are on page 2; professional advisers are on page 3.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
ISBA is governed by its Articles of Association, approved 17 May 2011, effective from 1 January 2012, and as amended 17 May 2017.
## **Recruitment and Training of Trustees**
ISBA’s elected Trustees, under the Articles, are the members of the Board of Directors. They are appointed at the Annual General Meeting following a ballot of ordinary members. New Trustees/Directors attend an induction day to learn about the workings of the Association and their duties. As all Trustees are bursars, they are familiar with the responsibilities of charity trustees and company directors by virtue of their appointments within schools with charitable status. As part of their Continuous Professional Development, all Directors aim to attend the Annual Conference, regional updates, and other professional development courses.
## **Organisational Management**
ISBA is managed by a Board of Directors of up to ten members elected by ISBA members, together with the Chair and two Vice-Chairs (whose membership of the Board is as a result of an election by members, but whose appointment as Chair and Vice Chair is by election by fellow Board members). The Board meets regularly to direct the management of the Association and to agree policy on any matters relevant to the administration of independent schools. The Chair of the Scottish Bursars Association also attends Board meetings as a co-opted member to advise on matters affecting Scottish schools.
ISBA has established a committee structure which challenges and scrutinises policies and plans before full Board approval. The Association’s accounts are managed by its Head Office. The Finance, Risk, Audit and Assurance Committee (FRAAC) has responsibility for overseeing the accounting and financial work of Head Office and presentation of the financial statements to the AGM.
In 2020, ISBA employed ten staff: Chief Executive Officer (CEO), Chief Operating Officer (COO), Commercial Director, Research Director, Membership Manager, Event Manager, PD Co-ordinator, a parttime Accountant, an accounts technician, and a Professional Development Assistant. Additionally, ISBA retains the specialist services of consultants and contractors to support the full-time employees. The CEO, COO, Commercial Director and Research Director are the key management responsible for day-today management of ISBA.
The remuneration of the CEO is reviewed by the Remuneration and Nominations Committee. A pay benchmarking exercise was completed in the fourth quarter of 2020.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
Amendments to the Articles of Association were agreed unanimously at the 2017 AGM. These amendments brought the Articles into line with current legislation and best practice, amended criteria for membership and devolved certain decision-making responsibilities from the AGM to the Board of Directors.
## **Membership**
All independent schools which are separately constituted under their own governing document and whose Head is in full membership of one of the Independent Schools Council (ISC) constituent associations are eligible for full membership of ISBA, as are other schools which whilst not constituted under their own governing document are deemed eligible for full membership by the Board. Most member schools are educational charities. In addition, Associate membership is open to independent schools that are not in membership of the ISC. As of 31[st] December 2020, there were 1062 in membership of which 61 were Associate Members (excluding international schools) and 60 were International Schools. In 2020 there were 73 new member schools and two school group head offices joined (compared with 71 schools in 2019).
In 2020, 43 schools did not continue with membership. Of those which left, 10 were international, 10 closed, 10 did not renew as a cost cutting measure and 4 had no bursar. Four schools merged into two entities and a further 7 left for unspecified reasons.
## **Group Structure and Relationships**
ISBA has a wholly owned trading subsidiary, ISBA Enterprises Limited, whose activities and trading performance are discussed in note 5. Two members of the ISBA Board are Directors of this subsidiary.
ISBA is an active constituent association of the ISC. ISBA’s Chair and CEO are directors of the ISC. It also works closely with a wide range of professional advisers in its ongoing endeavours to ensure that the administration and ancillary services within independent schools are both efficient and effective.
To widen access to the help and support the ISBA provides, it also co-operates with many non-member schools – charitable, non-charitable, independent, and state maintained.
## **Risk Management**
The Board is responsible for identifying and managing the risks faced by the Association. Detailed consideration of risk is delegated to the Finance, Risk, Audit and Assurance Committee which is assisted by the Head Office staff. Risks are identified, assessed and controls established. Whilst these controls are reviewed throughout the year, a formal review of the Association’s risk management processes is undertaken on an annual basis.
The key controls used by the charity include:
- clear policies and procedures to guide governance;
- a scheme of delegation
- detailed Terms of Reference for all Committees and officers;
- comprehensive strategic planning, budgeting, and management accounting;
- established organisational structure and lines of reporting;
- formal written policies; and
- clear authorisation and written approval levels.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
Through the risk management processes established for the Association, the Board is satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed.
The principal risks and uncertainties facing the charitable company are:
- financial – a decline in membership numbers, legal liability for incorrect Advice and Guidance, a major event affecting the annual conference or fraud. (See the post balance sheet statement below)
- financial – a sudden decline in the value of the ISBA reserve funds. (See the post balance sheet statement below)
- reputational – a failure to provide sound advice to members or compliance issues within the Association.
- personnel – the inability to recruit and retain staff with the appropriate skills and experience.
- competitive – the Association operates in a dynamic, evolving market with numerous commercial “competitors”;
- training – changes in routes to entry and background experience of new entrants to the profession;
- resource-related – ensuring that the Association has the capacity to meet member needs in the future;
- governance – a lack of strategic direction and forward planning: and
- Sectoral – a material diminution in the number of independent schools
## **Going Concern and the impact of COVID 19**
During the accounting year and continuing after it, the effects of the COVID 19 pandemic are marked on the business of the Association and the independent schools’ sector in general. With different variations, and different timings in the four home nations, the UK joined other European countries in placing varying restrictions on internal and external travel and large gatherings of people. This caused ISBA to postpone the annual conference due to be held in May, to December 2020 and finally to cancel it completely. Historically the Association has relied heavily on this annual event, and the one-day training events, to produce an annual surplus and that income is used to support ISBA activities and services throughout the remainder of the year. With this cancellation and replanning for November 2021, the decision was taken by the Board to alter the business model of the Association to one in which the core activity is covered by the income from annual subscriptions from schools, to charge for some online training and to start a business register. It is estimated that, with the new income streams in place, and the revised subscription level, the end of 2021 will see ISBA in surplus by £683k if the annual conference takes place.
Whilst the foregoing reflects the most likely outcome of the year, the charity has developed scenarios which look at different outcomes for 2020 and 2021, each accommodating a different effect as the current lockdown is eased.
Whatever the outcome, in accordance with Charity Commission guidance, the charity holds sufficient reserves to cover an unexpected shortfall in income no matter which scenario proves to be reality in the coming months. The charity retains sufficient reserves to enable it to continue in operational existence without interruption to the core services available to schools.
## **FUNDRAISING**
The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
## **OBJECTS, PUBLIC BENEFIT AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES**
The object of the Company, in accordance with its Articles, is the advancement of education by the promotion of efficient and effective financial management, administration and ancillary services at independent schools, in so far as it is charitable to do so.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Aims and Intended Effect**
ISBA’s aim is to provide first class support to independent schools as businesses and charities for the public benefit. It achieves this through providing accurate and timely training, advice, and guidance, advising and assisting schools to help them benefit the public through achieving the highest possible standards of financial management, administration and ancillary services; and working closely with government, ISC, Non-Governmental Organisations and other agencies to ensure that the sector’s and the Association’s voices are heard as and when policy is being formulated or debated. In the furtherance of this aim the Directors, as charity Trustees, have complied with the duty in S17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.
## **Objectives for the Year**
The Board’s main objective continued to be the provision of a range of services, to at least the same high standard achieved by the Association in previous years. The strategy for achieving this has been to seek timely and accurate information and to disseminate it to members by the most appropriate means. This strategy was proven to be valued by member schools this year as the Association pivoted it normal training output to an online platform and a very frequent series of webinars.
## **Principal Activities of the Year**
ISBA’s principal activities throughout the year have continued to be, as in past years, the provision of a range of services, advice, and support to independent schools; working closely with the government, the ISC, NGOs and other agencies to ensure that the sector’s and the Association’s voices are heard as and when policy is being formulated or debated.
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR**
Alongside the key focus for the year, the drafting and updating of many model policies, guidance notes, briefing notes and proforma contracts for the reference library, the Association conducted a continuous set of COVID 19 webinar briefings throughout the year to equip schools to safely deal with the everchanging effects of the pandemic on their methods of operating. The Association also continued to provide longer term support to member schools facing up to the effects of increased employer contributions to the Teachers’ Pension Scheme started in 2018.
## **Supporting schools**
In 2020, the Association published 670new items in the reference library, issued 86 Covid 19 bulletins and 12 monthly bulletins. A refreshed website was launched in December 2020. The online reference library accessed via the members’ website, remains the focal point for advice and guidance, along with telephone and email support. A wide range of staff in schools now access the website resource, which also offers six functional forum boards, the website now has more than 6,000 registered users.
## **The Association produced an impact report during the year outlining how it supports its members https://www.browseandread.co.uk/ISBA/impact-report/2019-2020**
## **Recruitment**
The ISBA vacancy board on its website is well established and receives an average of 4500 visits per month. This free resource for schools is a popular addition to schools’ own recruitment campaigns. The locum service for the provision of interim bursar support continued to assist schools during their recruitment phases and proved to be an affordable option for many schools.
## **Advice and Guidance**
A total of 3520 requests (1103 in 2019) for information either in the form of phone calls or emailed requests were made to, and answered by, the Association during the year.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **PROFESSIONAL DEVELOPMENT**
## **General**
Prior to the pandemic restrictions the Association ran a small number of “in person” events; these were:
- Finance
- Safer Recruitment
- Estates and three RoSPA courses.
In addition to the training above, 7863 delegates attended 103 webinars on various topics connected to COVID 19 and on the effects of the pandemic on the sector. Some of those webinars covered core skill subjects for support staff when the effects of the pandemic were stable at various points in the year.
## **So, you want to be a bursar?**
We continued to run this course three times per year, online, with additional 1 to 1 support of potential new entrants to the profession.
## **New Bursars’ Course**
We look forward to re-establishing this residential course. In the meantime, newly appointed Bursars have a one-hour training session per month on subjects they select to deal with subject matter areas with which they are unfamiliar.
## **ISBATV**
Each of the webinars has been recorded and is available via ISBA TV.
## **Support to regional groups**
Throughout the year we have run regional group meeting virtually. These have varied in frequency from completing the cycle of meeting from every three weeks when the pandemic was at its height, to every half term now that the transition has started towards normal patterns of working.
## **E-learning - Safeguarding (in association with Educare)**
The e-learning Safeguarding programme was launched in 2015. The programme is aimed at recently appointed members of the senior management team or governing body who are managing safeguarding in schools. The programme is actively being used by member schools.
## **E-learning – Health and Safety (in association with Educare)**
The e-learning Health and Safety programme was launched in 2016. The programme offered new members of a school’s senior management team and governing body a comprehensive online introduction to the statutory health and safety regulations for independent schools. Similar engagement from member schools as with the safeguarding programme.
## **Board Presentations**
ISBA has delivered an increasing number of strategic presentations to Boards of Governors and senior leaders in member schools, covering the nature of, and responses to, threats and issues facing the independent education sector.
## **FINANCIAL REVIEW AND RESULTS FOR THE YEAR**
Net outgoing resources for the financial year ended 31 December 2020 of £846,156 (2019 net incoming resources £62,151) before any gains or losses on investments; this reflects the very significant reduction in revenue generating activity caused by the Covid 19 pandemic.
Total funds held at the year-end were £717,013 (2019: £1,266,627). The Association's free reserves (after deducting the carrying value of tangible fixed assets held for the charity’s own use) have decreased from £1,358,579 to £603,074. These reserves represent sufficient to cover the liabilities should trading conditions in 2021 not allow an annual conference to be held. The Board keep the reserves policy and level under regular review by balancing the need to have funds available to meet unexpected contingencies with investing in new products and services to meet member needs.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Reserves Policy**
The current reserves policy has been in effect since July 2015. It requires sufficient free reserves be held:
- to respond to a sudden increase or decrease in membership, and the resultant costs of restructuring to meet changed requirements.
- to respond promptly to the impact of future legislation or regulatory change by way of increased staffing, greater use of external advisers and increased Advice and Guidance.
- to respond to any other adverse and uninsurable short-term event.
- to secure or expand the office accommodation by way of increased leasing or a freehold property purchase.
- to set in motion projects or other similar work that will benefit the membership as a whole and further the objects of the charity; and
Free reserves should be between 65% and 75% of average expenditure over the previous 5 years which equates to between £1,266,622 and £1,461,486. The ISBA Group’s current free reserves are £603,074 which is below the average. The pandemic caused a sharp drop in earnings for the ISBA Group, the main income planned for the year due from the annual conference could not be realised as restrictions of gatherings would not allow any of the planned training events to be held. As a consequence, the reserves the Group holds has had to reduce to support the minimised running costs of the Group this year. It is anticipated that the reserves holding will be back within the policy limits by December 2023.
## **Investment Policy, Objectives and Performance**
ISBA, advised by its retained professional fund managers, invests its reserves according to two objectives:
- First, a short-term, readily available, and low risk investment policy.
- Second, a long-term investment policy to cover seeking to grow capital while generating an interest and dividend flow.
During 2016 the investment policy was set to achieve a return target of RPI plus 2% with a hard drawdown limit of 30% but with notification to the ISBA if the figure of 20% is reached. This was to provide Rathbones with greater flexibility in applying the policy. The returns target was comfortably exceeded in 2020.
## **FUTURE PLANS**
The strategic themes are:
- Maintain and extend the advice and guidance core competence.
- Enhance training and development capabilities.
- Identify and develop business and commercial development opportunities.
- Maintain efficient marketing and communications plans.
- Identify opportunities for international expansion.
- Maintain the ISBA Group as a sustainable enterprise.
The objectives were tested to the full during 2020 as the Association moved all its training online and reacted with training, template policy documents, advice, and guidance promptly to the ever-changing demands of the pandemic. The operational plan to deliver these objectives was thus met and exceeded in 2020.
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##
##
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2020**
**Crowe U.K. LLP** _Chartered Accountants_ Member of Crowe Global Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL, UK Tel +44 (0)118 959 7222 Fax +44 (0)118 958 4640 www.crowe.co.uk
## **Opinion**
We have audited the financial statements of The Independent Schools’ Bursars Association for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 groups and the charitable company’s affairs as at 31 December 2020 and of the group’s 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 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.**
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
> Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Authorised and regulated by the Financial Conduct Authority. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Other information**
The trustees are responsible for the other information contained within the annual report. 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken during our audit
- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception.**
In light of the knowledge and understanding of the group and the charitable company and their environment obtained during the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- the parent company has not kept adequate accounting records; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small company’s regime and take advantage of the small companies’ exemption in preparing the Trustees Annual Report.
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the groups or 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 151 of the Charities Act 2011 and under the Companies Act 2006 and report in accordance with the Acts 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud.**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and group for fraud. The laws and regulations we considered in this context were Charity Commission regulations and General Data Protection Regulation (GDPR).
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance, Risk, Audit and Assurance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.
## **Use of report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Janette Joyce Senior Statutory Auditor
For and on behalf of
## **Crowe U.K. LLP**
Statutory Auditor Reading
Date: 24 May 2021
Crowe U.K. LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating a Consolidated Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Notes**
**INCOME AND ENDOWMENTS FROM:**
**Charitable activities:**
Subscriptions
Conference
Courses
Other
**Income from investments**
4
**Other trading activities**
5
**Total income**
**EXPENDITURE:**
**Expenditure on charitable activities**
Charitable donations
8
Conference expenses
8
Course expenses
8
Grants to regions
8
Advice, guidance, and information
8
**Expenditure on raising funds**
Investment managers fees
8
**Total expenditure**
8
**Net (outgoings)/ income**
Net gains/(losses) on investments
11
**Net Movement in Funds**
**Funds Brought Forward**
**Funds Carried Forward**
14a|**Unrestricted**
**Funds**
**£**
**558,839**
**395**
**130,578**
**3,264**
**19,039**
**94,896**
**807,011**
**900**
**240,463**
**522,386**
**4,942**
**876,214**
**8,262**
**1,653,167**
**(846,156)**
**78,316**
**(767,840)**
**1,484,853**
**717,013**|**Restricted**
**Funds**
**£**
**-**
**-**
**-**
**178,626**
**-**
**-**
**178,626**
**-**
**-**
**-**
**-**
**178,626**
**-**
**178,626**
**-**
**-**
**-**
**-**
**-**|**Total**
**2020**
**£**
**558,839**
**395**
**130,578**
**181,890**
**19,039**
**94,896**
**985,637**
**900**
**240,463**
**522,386**
**4,942**
**1,054,840**
**8,262**
**1,831,793**
**(846,156)**
**78,316**
**(767,840)**
**1,484,853**
**717,013**|_Total_
_2019_
_518,733_
_250,070_
_446,186_
_63,304_
_25,119_
_1,163,592_|
|---|---|---|---|---|
|||||_2,467,004_|
|||||_925_
_726,329_
_690,532_
_15,329_
_963,761_
_7,977_|
|||||_2,404,853_|
|||||_62,151_
_156,075_|
|||||_218,226_
_1,266,627_|
|||||_1,484,853_|
The statement of financial activities contains all recognised gains and losses in the year and the results reported relate to continuing operations.
The notes on pages 18 to 30 form part of these financial statements
15
##
||Notes|Group|Charity|Grcup|Cherry|
|---|---|---|---|---|---|
|||2020|2020|2019|2019|
|||£|£|£|£|
|FIXED ASSETS||||||
|Tangible fixed assets|10|113,939|113,939|126,274|126,274|
|Investments|11|1,247,607|1.247,609|1,158,646|1,158,648|
|||1,361546|1,361,548|1,284,920|1,284,922|
|CURRENTASSETS||||||
|Debtors|12|257,887|240,105|455,721|301,551|
|Cash on deposit||101,977|101,977|101,872|101,872|
|Cash at bank||396,822|301,269|254SJ.|158.863|
|||756,686|643.351|813,568|562,286|
|CREDITORS||||||
|Amounts falling due within|13|(1.401.219)|(1,262.357)|(6133)|(362.355)|
|one year||||||
|NET CURRENT (LIABILITIES)!||||||
|ASSETS||(644,533)|(619.008)|199933|199.931|
|NET ASSETS||||L4,a4,,B52|±4B4S53|
|UNRESTRICTED FUNDS||||||
|Revaluation reserve|II|291,886|291,886|240,320|240,320|
|General funds||425127|450,656|1,244,533|1,244533|
||14)|117&2|4ZM|t464&52|JM&853|
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Cash flows from operating activities:**
Net (expenditure)/ income
Depreciation and impairment of fixed assets
Loss on sale of fixed assets
(Gains)/losses on investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**
**Cash flows from investing activities**
Purchase of tangible fixed assets
Dividend reinvestment
Investment managers fees
**Net cash (used in)/ provided by investing activities**
**Change in cash and cash equivalents in the year**
**Reconciliation of net cash flow to movement in net**
**funds/debt:**
Net funds at 1 January 2019
Increase/ (decrease) in cash in the year
**Net funds at 31 December 2019**
Cash at bank
Cash on deposit||
|---|---|
The notes on pages 18 to 30 form part of these financial statements
17
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1 Company information**
The Charity’s principal activities are the provision of a range of services, advice, and support to independent schools; working closely with the government, the ISC, NGOs and other agencies to ensure that the sector’s and the association’s voices are heard as and when policy is being formulated or debated. The charity (company number 06410037 and charity number 1121757), is incorporated and domiciled in the UK. The address of the registered office is Bluett House, Unit 11-12, Manor Farm, Cliddesden, Basingstoke, Hampshire, RG25 2JB.
## **2 Accounting Policies**
## **Basis of Accounting**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102 1A (effective 1 January 2017), the Charities SORP (FRS 102), and the Companies Act 2006.
ISBA meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **Basis of Consolidation**
The group financial statements consolidate the financial statements of the Charity and its subsidiary undertaking, ISBA Enterprises Limited up to 31 December 2020. All inter-group transactions are fully eliminated on consolidation.
The Charity has taken exemption from presenting its unconsolidated income and expenditure account under section 408 of Companies Act 2006. The parent company’s loss for the year was £742,311 _(2019: surplus £218,226)_ .
## **Going Concern**
During the accounting year and continuing after it, the effects of the COVID 19 pandemic are marked on the business of the Association and the independent schools’ sector in general. With different variations, and different timings in the four home nations the UK joined other European countries in placing varying restrictions on internal and external travel and large gatherings of people, this caused ISBA to postpone the annual conference due to be held in May, to December 2020 and finally to cancel it completely. The Association depends on this annual event, and the one-day training events, to produce an annual surplus and that income is used to support ISBA activities throughout the remainder of the year. With this cancellation and replanning for November 2021, the decision was taken by the Board to alter the business model of the Association to one in which the core activity is covered by the income from annual subscriptions from schools, to charge for some online training and to start a business register. It is estimated that, with the new income streams in place, and the revised subscription level, the end of 2021 will see ISBA in surplus by £683k if the annual conference takes place.
Whilst the foregoing reflects the most likely outcome of the year, the charity has looked at one further outcome for 2020 and 2021, each accommodating a different effect as the current lockdown is eased.
Whatever the outcome, in accordance with Charity Commission guidance, the charity holds sufficient reserves to cover an unexpected shortfall in income no matter which scenario proves to be reality in the coming months. Whilst there has been a fall in value of the ISBA investments since the year end, there are still sufficient funds to enable the charity to continue in operational existence without interruption to the core services available to schools.
## **Income**
All income is credited to the Consolidated Statement of Financial Activities on a receivable basis. Income received relating to subscriptions and to courses and conferences to be held in the following financial year is treated as deferred income and included within creditors in the Balance Sheet.
18
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Resources Expended and Allocation of Expenditure in the Statement of Financial Activities**
All expenditure is accounted for on an accruals basis. Expenditure is accrued as soon as there is a legal or constructive obligation, it is probable that settlement will be received and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged against the category of expense to which it relates.
Charitable expenditure is disclosed by functional activity, with all direct and indirect costs (including both support and governance costs) being attributed to each category; where costs are not wholly attributable to an expenditure category they have been allocated on the basis of usage.
Staff costs have also been allocated according to the estimated time spent by staff working on each charitable function.
Governance costs are those associated with constitutional and statutory requirements.
## **Fixed Assets and Depreciation**
Items of equipment and furniture costing under £1,000 are written off in the year in which purchase occurs. Depreciation is calculated to write off the cost of fixed assets, by equal annual instalments over their expected useful lives on the basis of:
Short term leasehold improvements – over the term of the lease Office equipment and furniture - 3 years
Assets under the course of construction have no depreciation applied to them.
## **Investments**
Investments are included at market value on the Balance Sheet date. Any gain or loss on revaluation or disposal is taken to the Consolidated Statement of Financial Activities. Investment income is recognised in the period to which it relates.
## **Recognition of Liabilities**
Liabilities are recognised when the Association has an obligation to make payment to a third party.
## **Taxation**
As a registered charity, the Association is entitled to tax exemptions on all its income and gains, properly applied for its charitable purposes.
19
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2 Accounting Policies (continued)**
## **Funds**
Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects or administration of the charity.
## **Operating Lease Rentals**
Operating lease rentals are charged to the Consolidated Statement of Financial Activities on a straight line basis over the term of the lease.
## **Pensions**
Contributions to employees’ private pension schemes are charged to the Consolidated Statement of Financial Activities as they accrue. See more detail in Note 7.
## **Debtors**
Trade debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Financial Instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Note 19 provides more information in respect of this area.
## **3. Significant judgements and estimates**
In the application of the charity’s accounting policies, which are described in note 2, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.
The Trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.
20
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **4 Income from investments**
|Cash held on deposit
Dividends|**2020**
**£**
**132**
**18,907**
**19,039**|_2019_
_£_
_261_
_24,858_|
|---|---|---|
|||_25,119_|
## **5 Trading Subsidiary**
The Charity owns 100% of the ordinary £2 share capital of ISBA Enterprises Limited, a company registered in England and Wales (Company number 04334495). The registered office address can be seen under Note 1. The trading subsidiary participates in trading activities relating to the Association and donates all its taxable profits to the ISBA.
Its trading results for the year are extracted from their audited financial statements below:
|Turnover
Administration expenses
Net profit
Covenanted to ISBA
Retained in subsidiary|**2020**
**£**
**94,896**
**(120,425)**
**(25,529)**
**-**
**(25,529)**|_2019_
_£_
_1,163,592_
_(328,807)_
_834,785_
_(834,785)_
_-_|
|---|---|---|
The subsidiary donates all its profits to ISBA each year under a Deed of Covenant. No profits were made this year to donate.
The gift aid payment of £Nil _(2019: £834,785)_ and the management charge of £115,227 _(2019: £325,087)_ totalling £115,227 ( _2019: £1,159,872)_ , will be paid to ISBA.
At 31 December 2020 the net liabilities of ISBA Enterprises limited were (£25,527) _(2019 net assets: £2)._
## **6 Net (Outgoing)/Incoming Resources**
|Net(outgoing)/incoming resources is stated after charging:
Auditor’s remuneration:
For audit services
Depreciation and impairment of tangible fixed assets
Operating lease rentals|**2020**
**£**
**9,115**
**55,748**
**26,502**|_2019_
_£_
_9,115_
_7,860_
_27,491_|
|---|---|---|
21
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **7 Staff Costs**
|Staff costs comprised:
Wages and salaries (including agency salaries)
Social Security costs
Other pension costs
Other staff costs
The average number of persons employed during the year
Aggregate employee-benefits of key management personnel:|**2020**
**£**
**635,118**
**70,412**
**63,503**
**15,667**
**784,700**
**10.2**
**439,654**|_2019_
_£_
_589,346_
_64,274_
_57,743_
_22,552_|
|---|---|---|
|||_733,915_|
|||_10.5_
_374,315_|
Key management personnel include the Trustees and the Senior Management Team noted on page 2 of the financial statements.
The number of employees whose emoluments exceeded £60,000 were:
|£60,001 - £70,000
£70,001 - £80,000
£90,001 - £100,000
£130,001 - £140,000
£140,001 - £150,000|**2020**
**No.**
**2**
**1**
**1**
**-**
**1**|_2019_
_No._
_2_
_1_
_-_
_1_
_-_|
|---|---|---|
In the year contributions were made for 4 higher paid employees to a defined contribution pension scheme ( _2019: 3_ ).
Included within staff costs is £Nil ( _2019: £44,026)_ in relation to settlement costs.
No fee or other remuneration is payable to the Trustees other than the reimbursement of costs incurred in attending meetings. All the Trustees claim for these expenses which totalled £1,477 ( _2019: £10,605)_ .
## **Pension Costs**
The Charity paid into 10 _(2019: 11)_ defined contribution pension schemes. The assets of the schemes are held separately from those of the Charity in independently administered funds.
The pension cost charge represents contributions payable by the Charity to the fund and amounted to £63,503 _(2019: £57,743)_ . Other staff costs include £5,358 _(2019: £5,002)_ for Death in Service benefits for all employees.
22
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**8**
**Analysis of Resources Expended**
**Support**
**Costs**
**£**
**Staff**
**Costs**
**£**
**Other**
**Costs**
**£**
**Charitable Activities**
Charitable donations
**-**
**-**
**900**
Conference expenses
9a
**67,534**
**146,044**
**11,097**
Course expenses
9b
**129,989**
**283,548**
**78,518**
Grants to the regions
(institutions)
**-**
**-**
**4,942**
Advice, guidance, and
information
9c
**42,995**
**355,108**
**647,108**
**240,518**
**784,700**
**742,565**
**Expenditure on Raising**
**Funds**
Investment management fees
**-**
**-**
**8,262**
**Total Resources Expended**
**240,518**
**784,700**
**750,827**
Included in support costs are governance costs of £11,048 (_2019: £19,720_).
_2019 Comparative figures_
_Support_
_Costs_
_£_
_Staff_
_Costs_
_£_
_Other_
_Costs_
_£_
_Charitable Activities_
_Charitable donations_
_-_
_-_
_925_
_Conference expenses_
_9a_
_35,301_
_107,970_
_581,902_
_Course expenses_
_9b_
_71,367_
_223,370_
_393,403_
_Grants to the regions_
_(institutions)_
_-_
_-_
_15,329_
_Advice, guidance, and_
_information_
_9c_
_139,631_
_402,575_
_417,243_
_246,299_
_733,915_
_1,408,802_
_Expenditure on Raising Funds_
_Investment management fees_
_-_
_-_
_7,977_
_Total Resources Expended_
_246,299_
_733,915_
_1,416,779_|**Depreciation/**
**impairment**
**£**
**-**
**15,788**
**30,331**
**-**
**9,629**
**55,748**
**-**
**55,748**
_Depreciation_
_£_
_-_
_1,156_
_2,392_
_-_
_4,312_
_7,860_
_-_
_7,860_|**Total**
**£**
**900**
**240,463**
**522,386**
**4,942**
**1,054,840**
**1,823,531**
**8,262**
**1,831,793**
_Total_
_£_
_925,_
_726,329_
_690,532_
_15,329_
_963,761_
_2,396,876_
_7,977_
_2,404,853_|
|---|---|---|
23
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**9**
**Allocation of Support Costs**
2020
**Conference**
**Expenses**
**£**
Premises costs
**15,578**
Human resource costs
**11,705**
Communication costs
**17,844**
General office costs
**13,865**
Strategic projects
**3,998**
Governance costs
**3,129**
Travel costs
**1,415**
**67,534**
_2019 Comparative figures_
_Conference_
_Expenses_
_£_
_Premises costs_
_7,778_
_Human resource costs_
_1,141_
_Communication costs_
_8,371_
_General office costs_
_7,534_
_Strategic projects_
_2,412_
_Governance costs_
_5,108_
_Travel costs_
_2,957_
_35,301_
**9a** **Conference expenses – other costs**
Conference accommodation
Conference overheads
Conference exhibitors and sponsorship
**9b** **Course expenses – other costs**
Training expenses
**9c Advice, guidance, and information – other costs**
Professional expenses in the provision of advice and
to member schools
Human resource costs
Other costs|**Course**
**Expenses**
**£**
**29,926**
**22,486**
**34,279**
**26,887**
**7,680**
**6,011**
**2,720**
**129,989**
_Course_
_Expenses_
_£_
_14,431_
_2,360_
_17,317_
_15,585_
_4,990_
_10,568_
_6,116_
_71,367_
guidance||**Advice,**
**guidance,**
**and**
**Information**
**£**
**9,501**
**7,139**
**10,882**
**8,456**
**2,438**
**1,908**
**2,671**
**42,995**
_Advice,_
_guidance,_
_and_
_Information_
_£_
_26,016_
_4,255_
_31,220_
_31,347_
_8,995_
_26,772_
_11,026_
_139,631_
**2020**
**£**
**-**
**11,097**
**-**
**11,097**
**78,518**
**78,518**
**398,245**
**156,049**
**92,814**
**647,108**||**Total**
**Allocated**
**£**
**55,005**
**41,330**
**63,005**
**49,208**
**14,116**
**11,048**
**6,806**|
|---|---|---|---|---|---|
||||||**240,518**|
||||||_Total_
_Allocated_
_£_
_48,225_
_7,756_
_56,908_
_54,466_
_16,397_
_42,448_
_20,099_|
||||||_246,299_|
||||||_2019_
_£_
_203,745_
_195,761_
_182,396_
_581,902_
_393,403_
_393,403_
_307,882_
_83,555_
_25,806_
_417,243_|
|||||||
|||||||
|||||||
|||||||
|||||||
24
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **10 Tangible Fixed Assets – Charity and Group**
|**Cost**
At 1 January 2020
Additions
Impairment
Disposals
At 31 December 2020
**Depreciation**
At 1 January 2020
Depreciation charged in the year
Disposals
At 31 December 2020
**Net book value**
At 31 December 2020
_At 31 December 2019_|**Office**
**Equipment**
**and Furniture**
**£**
**49,273**
**2,117**
**-**
**-**
**51,390**
**43,914**
**4,327**
**-**
**48,241**
**3,149**
_5,359_|**Short-Term**
**Leasehold**
**Improvements**
**£**
**9,234**
**-**
**-**
**-**
**9,234**
**9,234**
**-**
**-**
**9,234**
**-**
_-_|**Assets Under**
**Course of**
**Construction-**
**Website &**
**Database**
**£**
**120,915**
**41,296**
**(50,726)**
**-**
**111,485**
**-**
**695**
**-**
**695**
**110,790**
_120,915_|**Total**
**2020**
**£**
**179,422**
**43,413**
**(50,726)**
**-**
**172,109**
**53,148**
**5,022**
**-**
**58,170**
**113,939**
_126,274_|
|---|---|---|---|---|
25
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **11 Investments – Charity and Group**
|**Listed investments**
Market value at 1 January
Additions
Disposals
Revaluation (losses)/ gains
Total investments
Cash awaiting investment
Market value at 31 December- Charity
Less £2 investment in subsidiary
Market value at 31 December- Group|**2020**
**£**
**1,121,406**
**275,411**
**(252,415)**
**78,316**
**1,222,718**
**24,891**
**1,247,609**
**(2)**
**1,247,607**|_2019_
_£_
_956,494_
_101,931_
_(93,094)_
_156,075_|
|---|---|---|
|||_1,121,406_
_37,242_|
|||_1,158,648_|
|||_(2)_|
|||_1,158,646_|
The charity holds a £2 investment in its trading subsidiary – ISBA Enterprises Limited, which must be deducted to arrive at the market value of investments for the group.
|Historic cost at 31 December (excludes cash)
Listed investments in pooled funds comprise: -
UK equities
Overseas equities
UK fixed interest securities
Overseas fixed interest securities
Infrastructure funds
Property funds
Commodities
Hedge funds
Cash|**930,832**
**357,639**
**534,485**
**127,042**
**28,460**
**60,712**
**36,456**
**14,623**
**63,301**
**24,891**
**1,247,609**|_881,086_|
|---|---|---|
|||_353,322_
_449,072_
_143,065_
_33,503_
_52,276_
_36,515_
_-_
_53,653_
_37,242_|
|||_1,158,648_|
Investments which comprise more than 5% of the market value of investments are: -
|T Bailey Fund
AXA Framlington UK
Scottish Mortgage Trust
Edgewood L Select Fund|**2020**
**Market Value**
**£**
**94,172**
**83,710**
**70,412**
**68,080**|**2020**
**Cost**
**£**
**91,066**
**73,107**
**18,885**
**31,475**|_2019_
_Market Value_
_£_
_79,567_
_52,000_
_33,582_
_41,454_|_2019_
_Cost_
_£_
_69,112_
_41,720_
_18,885_
_20,367_|
|---|---|---|---|---|
The revaluation reserve figure on page 16 is calculated by deducting the historic cost figure (£930,832) from the total market value of investments figure (£1,222,718).
26
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **12 Debtors**
|Trade debtors
Other debtors
Amounts due from subsidiary
Prepayments|**Group**
**2020**
**£**
**18,008**
**67,952**
**-**
**171,927**
**257,887**|**Charity**
**2020**
**£**
**18,008**
**67,917**
**-**
**154,180**
**240,105**|_Group_
_2019_
_£_
_261,137_
_10,000_
_-_
_185,584_
_456,721_|_Charity_
_2019_
_£_
_7,817_
_10,000_
_98,150_
_185,584_|
|---|---|---|---|---|
|||||_301,551_|
Included within other debtors is a loan to the Independent Schools’ Mutual Limited for £14,000 _(2019: £10,000)_ which is repayable in greater than one year.
## **13 Creditors**
|**Group**
**2020**
**£**
**Charity**
**2020**
**£**
_Group_
_2019_
_£_
Trade Creditors
**31,360**
**31,360**
_78,377_
Taxation and social security costs
**783**
**783**
_33,548_
Other creditors
**2,586**
**2,586**
_60,895_
Amounts due to subsidiary
**-**
**871,489**
_-_
Accruals
**170,494**
**166,614**
_99,442_
Deferred income
**1,195,996**
**189,525**
_341,373_
**1,401,219**
**1,262,357**
_613,635_
The movements on deferred income relating to subscriptions, conferences and courses
during the year were:
**_Balance at 1 January 2020_**
Amounts received during the year in relation to subscriptions, conference & courses
Current year subscriptions, conference & course income
**Balance at 31 December 2020**|**Group**
**2020**
**£**
**Charity**
**2020**
**£**
_Group_
_2019_
_£_
Trade Creditors
**31,360**
**31,360**
_78,377_
Taxation and social security costs
**783**
**783**
_33,548_
Other creditors
**2,586**
**2,586**
_60,895_
Amounts due to subsidiary
**-**
**871,489**
_-_
Accruals
**170,494**
**166,614**
_99,442_
Deferred income
**1,195,996**
**189,525**
_341,373_
**1,401,219**
**1,262,357**
_613,635_
The movements on deferred income relating to subscriptions, conferences and courses
during the year were:
**_Balance at 1 January 2020_**
Amounts received during the year in relation to subscriptions, conference & courses
Current year subscriptions, conference & course income
**Balance at 31 December 2020**|_Charity_
_2019_
_£_
_78,377_
_33,548_
_60,895_
_-_
_95,562_
_93,973_|
|---|---|---|
|||_362,355_|
|||
**£**
**341,373**
**128,361**
**726,262**
**1,195,996**|
||||
## **14a) Net Assets of the Funds**
The Charity’s and Group’s net assets belong to the various funds as follows:
|**Charity – Unrestricted**
Non-charitable trading funds
**Group**|**Fixed**
**Assets**
**£**
**113,939**
**-**
**113,939**|**Investments**
**£**
**1,247,609**
**(2)**
**1,247,607**|**Net Current**
**Assets**
**£**
**(619,006)**
**(25,527)**
**(644,533)**|**Fund**
**Balances**
**£**
**742,542**
**(25,529)**|
|---|---|---|---|---|
|||||**717,013**|
27
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **14b)** _2019 COMPARATIVE - Net Assets of the Funds_
The Charity’s and Group’s net assets belong to the various funds as follows:
|_Charity – Unrestricted_
_Non-charitable trading funds_
_Group_|_Fixed Assets_
_£_
_126,274_
_-_
_126,274_|_Investments_
_£_
_1,158,648_
_(2)_
_1,158,646_|_Net Current_
_Assets_
_£_
_199,931_
_2_
_199,933_|_Fund_
_Balances_
_£_
_1,484,853_
_-_|
|---|---|---|---|---|
|||||_1,484,853_|
## **15a) RESTRICTED FUNDS- Charity and Group**
The funds of the charity include restricted funds comprising the following unexpended balances of donations held for specific purposes:
|_Balance at_
_1 January_
_2020_
**2020**
_£_
Business interruption insurance
fighting fund
_-_
_2019 COMPARATIVE – Restricted funds_
_Balance at_
_1 January_
_2019_
_£_
_Brexit courses_
_-_
_ISC contribution for TPS work_
_-_
_-_|Incoming
resources
£
178,626
_Incoming_
_resources_
_£_
_88,001_
_60,000_
_148,001_|Resources
expended
£
(178,626)
_Resources_
_expended_
_£_
_(88,001)_
_(60,000)_
_(148,001)_|**Balance at**
**31 December**
**2020**
**£**
**-**
_Balance at_
_31December_
_2019_
_£_
_-_
_-_
_-_|
|---|---|---|---|
## _15b) 2019 COMPARATIVE – Restricted funds_
## **15 Other Financial Commitments**
At 31 December 2020, the Charity had future minimum lease payments under non-cancellable operating leases as follows:
|**Expiry:**
Within 1 year
Within 2 – 5 years
Greater than 5 years|**Land & Buildings**
**2020**
**£**
_2019_
_£_
**26,250**
_26,250_
**19,688**
_45,938_
**-**
_-_|
|---|---|
## **16 Capital Commitments**
At 31 December 2020 the group had capital commitments of £5,997 _(2019: £Nil)_ .
28
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **17 Related Party Transactions**
There were no related party transactions in relation to the group in the year, other than those disclosed in Note 5.
## **18 FINANCIAL INSTRUMENTS**
Financial assets held at amortised cost are trade debtors, other debtors, amounts owed by group companies, cash at bank and cash on deposit.
Financed liabilities held at amortised cost are trade creditors, amounts owed to group companies, other creditors, and accruals.
Financial assets measured at fair value are investments.
|**GROUP**
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial assets measured at fair value|**2020**
**£**
**597,727**
**204,440**
**1,222,718**|_2019_
_£_
_627,984_
_238,714_
_1,121,404_|
|---|---|---|
The group’s income, expense, gains, and losses in respect of financial instruments are summarised below:
## **Interest income and expense:**
|Total interest income for financial assets held at amortised cost
Total interest expense for financial liabilities held at amortised cost
**CHARITY**
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial assets measured at fair value|**1,012**
**-**
**484,627**
**1,072,049**
**1,222,718**|_261_
_-_|
|---|---|---|
|||_376,702_
_234,834_
_1,121,406_|
The Charity’s income, expense, gains, and losses in respect of financial instruments are summarised below:
## **Interest income and expense:**
|Total interest income for financial assets held at amortised cost
Total interest expense for financial liabilities held at amortised cost|**1,012**
**-**|_261_
_-_|
|---|---|---|
29
**THE INDEPENDENT SCHOOLS’ BURSARS ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **19. COMPARATIVE 2019 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
|_INCOME AND ENDOWMENTS FROM: _
_Charitable activities:_
_Subscriptions_
_Conference_
_Courses_
_Other_
_Income from investments_
_Other trading activities_
_Total income_
_EXPENDITURE:_
_Expenditure on charitable activities_
_Charitable donations_
_Conference expenses_
_Course expenses_
_Grants to regions_
_Advice, guidance, and information_
_Expenditure on raising funds_
_Investment managers fees_
_Total expenditure_
_Net income_
_Net gains/(losses) on investments_
_Net Movement in Funds_
_Funds Brought Forward_
_Funds Carried Forward_|_Unrestricted_
_Funds_
_£_
_518,733_
_250,070_
_358,185_
_3,304_
_25,119_
_1,163,592_
_2,319,003_
_925_
_726,329_
_602,531_
_15,329_
_903,761_
_7,977_
_2,256,852_
_62,151_
_156,075_
_218,226_
_1,266,627_
_1,484,853_|_Restricted_
_Funds_
_£_
_-_
_-_
_88,001_
_60,000_
_-_
_-_
_148,001_
_-_
_-_
_88,001_
_-_
_60,000_
_-_
_148,001_
_-_
_-_
_-_
_-_
_-_|_Total_
_2019_
_£_
_518,733_
_250,070_
_446,186_
_63,304_
_25,119_
_1,163,592_|
|---|---|---|---|
||||_2,467,004_|
||||_925_
_726,329_
_690,532_
_15,329_
_963,761_
_7,977_|
||||_2,404,853_|
||||_62,151_
_156,075_|
||||_218,226_
_1,266,627_|
||||_1,484,853_|
30