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2020-08-31-accounts

Annual Report & Accounts For the year ended 31[st] August 2020

Registered Company: 06654276 Registered Charity Number: 1125485

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Annual Report & Accounts for the year ended 31[st] August 2020

CONTENTS

1-17 REPORT OF THE GOVERNORS (incorporating the Strategic Review)

18 STATEMENT OF GOVERNORS’ RESPONSIBILITIES

19-20 INDEPENDENT AUDITOR’S REPORT

21-22 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE INCOME AND EXPENDITURE ACCOUNT

23 CONSOLIDATED AND SCHOOL BALANCE SHEETS

24 CONSOLIDATED CASH FLOW STATEMENT

25-28 STATEMENT OF ACCOUNTING POLICIES

29-42 NOTES TO THE ACCOUNTS

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

The Governors are pleased to present their annual report for the year ended 31 August 2020 under the Charities Act 2011 and the Companies Act 2006, together with the audited accounts for the period, and confirm that the latter comply with the requirements of the Acts, the Charity Commission's Scheme and the Charities SORP 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document – Constitution and Objects

The Merchant Taylors’ Schools, Crosby is a registered charity (registered number 1125485) and is incorporated under the Companies Act 2006 as a company limited by guarantee and not having a share capital (registered number 6654276). The Charity is governed by the Memorandum and Articles of Association dated 15 July 2008.

The school undertaking and expendable assets of Merchant Taylors' Schools of the Foundation of John Harrison (the previous unincorporated charity registered under number 526681), were transferred to the Company on 1 September 2008 to form part of the corporate property of the Company. A Charity Commission Scheme was sealed on 28 August 2008 and came into effect on 1 September 2008. This Scheme replaces the former trusts of the unincorporated charity and renames it Merchant Taylors' Schools of the Foundation of John Harrison Trust. The Scheme appoints the Company as sole corporate trustee of the unincorporated charity and the Schools' permanent endowment properties and various prize and scholarship funds. The Scheme includes a uniting direction, so that the unincorporated charity is treated as forming part of the Company for the purposes of charity registration and accounting.

Governing Body

The Governing Body consists of a maximum of three Nominated Governors and eleven Co‐opted Governors, all of whom are appointed for renewable periods of three years. The Nominated Governors are nominated, one each, by the Merchant Taylors’ Company, the Committee of the Merchant Taylors’ Old Girls’ Association and the Committee of the Merchant Taylors’ Old Boys’ Association. The Governors who served during this financial year are listed on page 15.

No employee of the Charity can be a Governor and no fee or other remuneration (other than the repayment of reasonable expenses incurred in relation to their

duties for the Charity) is payable to Governors. All Governors are also Directors of the Company.

Charity Governance Code

The Charity Governance Code is designed as a tool to support continuous improvement. The Board, having reviewed the Code’s key principles, considers its governance structure and arrangements to be appropriate for the nature of the School’s operations, and as such has decided not to formally adopt the Code. The Board does however regularly revisit the Code’s key principles to ensure that the highest standards of governance are maintained.

Recruitment and Training of Governors

When a vacancy arises for a Nominated Governor, the Board confers with the relevant organisation to identify candidates with the specialist skills required.

In the case of the Co‐Opted Governors, when a vacancy arises, the Governors approach or advertise for candidates who they consider are appropriate and would widen the Board's representation and skills. Nominees are considered by the Nominations Committee who review their skills and suitability for the Governing Body before making a recommendation to the Board. Prospective governors are then appointed following an affirmative vote by the Board and successful receipt of DBS check and character references.

New Governors are provided with an induction pack containing the governing documents of the school, other information about the school and information on the responsibilities of governors. They also have the opportunity to meet the Head Teachers, Director of Finance and Operations (DFO) and other Governors and managers, tailored to their specific requirements. All Governors take part in annual training and briefings on topical subjects incorporated into the programme of Governors’ Meetings, with external speakers/trainers being brought in as appropriate. Governors are also encouraged to attend training events run for the sector by external bodies such as the Association of Governing Bodies of Independent Schools (AGBIS). The Board conducted an AGBIS Governance Review exercise in 2020 and is acting on the recommendations as appropriate.

Governors are also expected to regularly attend Board and sub‐committee meetings. If appropriate, the Chair will meet with individual Governors to discuss their contribution and to the organisation as a whole.

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Report of the Governors for the year ended 31[st] August 2020

Organisational Management

The Governors, as the Charity's Trustees, are legally responsible for the overall management and control of the Schools. They meet as a full Board at least four times a year. The work of implementing their policies is carried out by a number of Committees, details of which are given on page 16. Each Committee meets at least once a term.

The day to day running of the Schools is delegated to the Senior Officers, namely the Heads at each school (three in total) and the Director of Finance and Operations (DFO). They meet regularly as the Executive Management Team and are supported by their senior management teams. The Heads and DFO attend meetings of the Governors and their Committees.

The remuneration of the Senior Officers is reviewed annually. The Governors set the remuneration levels through benchmarking against levels in other Schools of a similar size and character, available through external reports produced for the sector, and based on the performance of the individuals concerned.

Group Structure and Relationships

The Schools' fundraising activities are carried out by a separate registered charity, the Merchant Taylors' Schools General Charitable Trust, for whom the Schools provide office accommodation and other support services. The Trustees are current Governors of the Schools.

The Schools have close contact with their alumni associations. Some financial assistance for bursaries is given by the Old Boys' Charitable Trust, the Friends of Merchant Taylors' School for Girls and the Merchant Taylors' Company. The School greatly values its connections with the Merchant Taylors' Company in the City of London.

incidental educational activities and other associated activities for the benefit of the community. The Schools shall include instruction in accordance with the principles of the Christian faith, except that any pupils may be exempted from such instruction, in accordance with any policy set by the Governors from time to time. Under the Charity Commission's Scheme, the Charity also has various permanent endowment property and investments, as well as unendowed trust funds held for special purposes in connection with the development of the Schools' facilities and for scholarships, bursaries and prizes.

Aims and Public Benefit

Within these objects, the Schools' aims are as follows;

In the furthering of these aims, the Governors, as the Charity Trustees, have complied with the duty in s.17 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.

Principal activities of the period

A wholly owned trading subsidiary, Merchant Taylors’ Schools Crosby Services Limited, promotes commercial activities which use the Schools’ assets to generate income.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The Charity's objects, as set out in the Memorandum of Association, are to advance the education of boys and girls by the provision of day and/or boarding schools in or near Crosby and by ancillary or

The Charity principally provides education to boys and girls from the ages of 4 to 18, in its Senior Boys’, Senior Girls’ and Primary ‘Stanfield Merchant Taylors’.

Grant making policy

The Governors are committed to ensuring that access to the education the Schools offer is not restricted to those who can afford the fees. The Governors’ policy is to make bursary awards on the basis of the individual's educational ability, individual personal circumstances

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Report of the Governors for the year ended 31[st] August 2020

and their parents' financial circumstances, subject to any particular conditions imposed by the original donor where the award is out of restricted funds. Bursary awards may also be made to relieve hardship where an existing pupil’s education would otherwise be at risk, for example in the case of bereavement or redundancy. With the exception of a limited number of scholarships, all assistance now awarded is means‐tested and can in exceptional circumstances amount to 100% of the tuition fee.

Report on Schools’ Charitable and Community Activities and Public Benefit

improvements in teaching and learning as well as reflecting the capabilities of those particular cohorts. The Schools’ examination results are again among the best in the North West of England. The percentage of A*‐B grades at A Level was nearly 75%. The majority of the cohort secured first choice places at Russell Group or pre‐1994 Group universities.

Equally significant is the high number of pupils who study and do well in Science, technology, engineering and maths (STEM) as well as those studying Modern Foreign Languages which is declining at a national level. A number of pupils go on to study these and related subjects at university.

Public Benefit through Bursaries and Grant‐making

The Governors have given regard to The Charity Commission’s guidance on public benefit. Merchant Taylors’ is committed to open and inclusionary access for children irrespective of their financial background.

Accordingly, not only is fund‐raising for bursaries a key aspect of the activity at the School, but also supporting bursaries through its own resources. Merchant Taylors’ aims to raise £3 million for bursaries by 2023 and this has been a central tenet of our 400[th] anniversary celebrations.

During this year, total bursaries, grants and allowances totalled £1,183,291, benefitting 272 pupils. Of this, £210,686 came from external funding including support from Old Boys’ Trust and Friends of MTGS as well as the June Floyd and Glasgow Bursaries. £956,358 came from Merchant Taylors’ own resources and equates to 6.25% of gross fee income.

101 pupils receive some form of means‐tested bursary of which around one third are transformational bursaries of 90% or more, including clothing allowance and funded school meals.

We aim to offer further transformational bursaries in the future as well as continuing to offer other families the financial support they need for their children to attend Merchant Taylors’.

At GCSE the proportion of exam grades at A*‐A/9‐7 was over 60%. The School accept pupils from average and above in the ability range and strive to seek to add significant value. The results above attest to this happening.

The Schools also do well in providing value for money, having one of the lowest fee levels for top performing independent day schools in the country, as well as providing a significant number of means‐tested bursaries, allowing local children to access the Schools irrespective of parental income.

Merchant Taylors’ Schools continue to perform well in a wide range of sports, including athletics, cricket, cross‐country, football, hockey, netball, orienteering, rowing, rugby, swimming and tennis. Teams reach county and regional finals in a number of these team sports while individual pupils at various ages have attained county, regional and national honours. There is also a wide amount of participation across the sports ensuring that our pupils are living a healthy and active lifestyle.

There is also a strong focus on musical and dramatic performances in the Schools last year saw a senior production of Hairspray alongside a number of concerts. One of the Schools’ ensembles, SaxPac, played at the School Proms in the Royal Albert Hall in November. Thus we are able to provide substantial opportunities for creativity among our pupils.

Public Benefit through Educational Excellence

This year’s public examinations were obviously affected by the response to coronavirus. This meant that rather than sitting examinations, centres were asked to produce grades which were based on the most probable outcome for each student if they had taken the examination. This process was carried out using a robust methodology. The Schools’ results were slightly improved on previous years, reflecting the ongoing

The Combined Cadet Force (CCF), together with the Duke of Edinburgh Award Scheme, the Community Service Units, and various national individual subject competitions continue to give pupils a wide range of opportunities to develop skills and interests as well as taking on positions of responsibility and providing service to the community. Our budding lawyers were able to win through to the national final of The Law Society debating competition.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

Public Benefit through Partnership

Merchant Taylors’ engages in many other activities that provide benefit to the public.

The Governors attach great importance to the Schools’ relationship with the local community and actively seek ways in which the Schools’ facilities can be used for the public benefit.

The Schools welcome the local community in to use their facilities without charge or at subsidised rates, including in the following ways:

A community and charitable ethos is also encouraged throughout the Schools and each year they support numerous local and national charities, raising in the region of £15,000 ‐ £20,000, through the combined efforts of pupils, parents and staff.

This is generated through a combination of activities from own clothes days to concerts, coffee mornings, cake sales, collections, raffles and sports events. Charities that were supported this year included those offering support to the homeless, opportunities for underprivileged children and those providing mental health care – all areas that Merchant Taylors’ feels strongly about.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

STRATEGIC REPORT

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

The Schools intend to push forward their technological vision for education. To this end, a Director of Digital Learning has been appointed and an ICT Strategy Group is seeking to trial the use of one‐to‐one devices in lessons with a view to a wider roll out later in the year.

Operational performance of the Schools

In addition to the continuing excellent academic results, a number of objectives were met with regard to the development plan:

Plans for the Future

Merchant Taylors’ intends to celebrate its 400[th] anniversary when circumstances allow. This will bring the community together and will have at its centre the ambition to raise significant funds for its Bursary Campaign.

Merchant Taylors’ will find further ways to support the local community whether that is through use of its facilities or through partnerships with local stakeholders, such as charities and businesses.

An Estates Masterplan will be presented this year seeking to provide the appropriate facilities for Merchant Taylors’ to continue to deliver an excellent education for the next 15‐20 years and beyond.

Financial Review and Results for the Year

The accounts for the period show a less favourable out‐ turn compared to the prior year, with other unrestricted funds showing net incoming resources before transfers of £280,063, which represents 1.9% of fees receivable. This reduction from previous years is due to the impact of COVID 19 on fee income and the restructure of the Schools which should benefit future years in a cost saving

Tuition fee income has decreased by 6.1% from last year. Other income has increased slightly mainly due to the one‐off donations increasing from the 2018/19 levels.

Employment costs, which represent 64% of total expenditure, have decreased by 1.2%. Interest received has remained in line with last year due to interest rates continuing to remain low.

The Schools’ trading company (Merchant Taylors’ Schools’ Crosby Services Limited) continues to hire out facilities during the holidays and outside school hours as well as running the sports centre. This has generated a £9,962 deficit (2019: £25,735 surplus), this has occurred because in March 2020 the sports centre had to shut to the general public because of COVID 19.

The Schools are well resourced, including expenditure on sporting and other extra‐curricular activities. Investment in information technology has continued with the acquisition of new personal computers, software and networks. Significant work has also gone into maintenance of the estate, in order to establish a solid base from which to pursue further development in the future.

Although the School has generated an overall deficit the School has still invested in an ongoing capital expenditure plan to allow buildings to be updated. The Schools' buildings were valued for insurance purposes at £66.5 million in March 2016, representing the estimated rebuilding costs, including debris removal, fees and VAT.

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Report of the Governors for the year ended 31[st] August 2020

There was a decrease in realised and unrealised gains in the Schools' investments of £197,408 (2019 surplus of £257,611). This has resulted from the fall in the stock market due to COVID 19.

Capital commitments are shown in note 19.

There have been no significant events since the year end affecting the Company.

due taking into account the strength of the balance sheet and levels of cash and unrestricted investments currently held of £4.8m and £2.4m, as well as access to an arranged overdraft of £0.5m. As a result, the governors believe that, whilst uncertainty exists, this does not pose a material uncertainty that would cast doubt on the school’s ability to continue as a going concern. The governors therefore consider it appropriate to prepare the financial statements on a going concern basis.

External factors

Reserves Policy

The School has coped well with the COVID‐19 pandemic. There were fee rebates issued for the initial lockdown in 2020, in addition refunds for lunch and bus fees were provided for the period in which pupils were not in school. Pupil numbers are slightly ahead of forecast in 2020/21 despite the impact of Covid. Investment values for restricted funds as discussed previously have been affected in the short term, however it is expected this will even out as we come out of lockdown measures. Covid has also impacted upon the trading Company, with the sport centre closed to the public since March 2020, meaning there are no funds available for gift aid to the School.

Brexit has had very little impact so far on the school, and is expected to remain this way in the future.

Going Concern

In preparing these financial statements, the Governors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. In satisfaction of this responsibility, the Governors have considered the Group’s ability to meet its liabilities as they fall due for a period of at least 12 months from the signing of the financial statements. The financial statements have been prepared on a going concern basis, which principally assumes that the Group will continue to receive fee income at a sustainable level.

The Governors have continued to consider the impact of COVID 19 based on the latest available information and government guidance, and have completed sensitivity analysis on the potential financial impact of the pandemic on future numbers and fee income which has been fed into our financial plan. The Governors are satisfied with the projections. For the 20/21 academic year, the actual pupil numbers are in excess of original forecasts.

The Governors have also considered the cash requirements of the school for at least 12 months from the date of this report and are satisfied that sufficient funds are available to meet the liabilities as they fall

As at 31 August 2020, the School had total funds of £26,950k (2019: £27,669k). These are set out in notes 14‐18 of these accounts. Of these funds, £9,768k (2019: £10,141k) are restricted, primarily for use for grants and bursaries, and £2,916k (2019: £2,990k) are treated as a permanent endowment, part of which is invested in land and buildings. Unrestricted funds totalling £14,266k (2019: £14,538k) are tied up largely in fixed assets. Our balance of free reserves currently stands at £1.21m. This includes approximately 4 weeks worth of anticipated expenditure plus a contingency for potential losses of £90k. There are therefore limited free reserves, with the policy being to reinvest in developing buildings, equipment and resources, whilst also ensuring that cashflow overall remains positive. The Governors are satisfied that the School has sufficient financing available to meet its working capital requirements, and plans are being developed to improve this to enable further investment in resources in future.

The Governors have considered the level of reserves and financial forecasts in determining that Merchant Taylors’ Schools, Crosby is a going concern.

Streamlined Energy and Carbon Reporting (SECR) 12 months to 31 August 2020

A review of energy and carbon usage was undertaken by Amber Energy during the 2019/20 academic year. Their findings were reported as follows:

Total UK energy use/Green House Gas emissions : Grid Electricity: 916,444 kWh, 232.03 GHG emissions Natural Gas: 2,714,646 kWh, 499.14 CHG emissions Fuel reimbursed: 4,318 kWh, 1.19 GHG emissions

Intensity ratio

To convert absolute emissions to an emissions intensity metric, Merchant Taylors’ School (MTS) have calculated emissions per a relevant measure. An intensity ratio is a way of defining MTS emissions data in relation to an

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

appropriate metric, such as tonnes of CO2e per sales revenue, or tonnes of CO2e per total square metres of floor space. This allows comparisons of energy efficiency performance over time and with similar types of organisations

Charity's risk management processes is undertaken on an annual basis, using a recognised risk register template. The principal risks have been identified as:

SECR intensity ratios are calculated by dividing MTS emissions by its organisation specific metric. In this instance the intensity ratio used for MTS is square meterage of school buildings based on the following information:

Through the risk management processes, the Governors are satisfied that the major risks identified are adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that risks have been adequately managed. The key controls used by the Charity to manage risks include:

MTBS 11719 sq/m / 126,142 sq/ft
MTGS 6767 sq/m / 72,839 sq/ft
Stanfield 2731 sq/m / 29,396 sq/ft
TOTAL 21,217 sq/m / 228,378 sq/ft

Normalising Metric M[2] of School buildings : 21,217 M[2] the Intensity Ratio for 2019/20 = 1.02 KgCO2e/M[2]

The review highlighted that the figures quoted within the review report had been supplied directly from Merchant Taylors’ School and includes invoices for electricity, natural gas and business mileage claims. Conversion factors used were taken from the ‘2020 UK Government GCH Conversion Factors for Company Reporting’ to calculate emissions for Scopes 1, 2 and 3 as follows:

Scope 1: 2,714,646 kWh, 499 GHG emissions Scope 2: 916,444 kWh, 214 GHC emissions Scope 3: 4,318 kWh, 20 GHG emissions (includes Electricity T&D)

For ‘Grey Fleet’ business mileage claims an average consumption figure of 5.051/100Km had been used along with an average petrol/disease CV conversion of 10.02kW/l and the ‘unknown fuel’ figure taken from the ‘2020 UK Government’s GCG Conversion Factors for Company Reporting’.

The review concluded that Merchant Taylors’ School continues to strive for energy and carbon reduction arising from their activities. During the reporting period, no specific energy reduction measures were undertaken.

Risk Management

The Board of Governors is responsible for the management of the risks faced by the Schools. The Risk Register is reviewed at every Board meeting and relevant sections by each committee. The Schools’ staff also operate a Health and Safety Week once a year, which helps to raise awareness and manage risks around the site. Risks are identified, assessed and controls established. A formal review of the

Fundraising Policy

Section 162a of the Charities Act 2011 requires Charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise

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Report of the Governors for the year ended 31[st] August 2020

procuring money or other property for charitable purposes”. Such amounts receivable are presented in our accounts as “voluntary income” which includes legacies and grants.

The overall portfolio will be benchmarked against a range of agreed bespoke benchmarks.

During the course of the year, income receipts of £195,604 were distributed from the Grants and Bursaries Funds and capital withdrawals totalling £nil were made. Income totalling £24,410 was distributed from the Special Investments funds, and no capital withdrawals were made.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund raisers, or third parties. The day to day management of all income generation is delegated to the Executive Team, who are accountable to the trustees.

Report from the Schools’ Investment Manager

We manage five individual funds on behalf of the Schools, namely The Bursary Fund, Grieve Hudson Fund, Special Investment Fund, Edith Gillespie Fund and The Glasgow Bursary Fund. These combined funds are managed with a balanced return and medium risk mandate by the team in Liverpool.

The charity is not bound by any undertaking to be bound by any regulatory scheme and the charity does not consider it necessary to comply with any voluntary code of practice.

We have received no complaints in relation to fundraising activities.

The year under review has been amongst the most extraordinary experienced by investors in peace time given the current Covid‐19 related economic disruption being experienced throughout the majority of the World.

Investment Report

Investment policy and objectives

During the year under review and pre the Covid‐19 crisis, global markets briefly touched all‐ time highs as investors looked forward to synchronised global growth and a benign but supportive economic environment. This all changed towards the end of February as the full consequences of the Covid‐19 pandemic and the unheralded global economic disruption it caused became more apparent.

The investments of the Schools are managed on a discretionary basis on behalf of the Governors in accordance with the Trustee Act 2000. Investec were appointed as the Schools’ Investment Manager in September 2015. They have been replaced from 1 October 2020 by COIF Charity Funds ‐ CCLA

The Governors have five funds placed with Investec – the Special Investment Fund, the Grants & Bursaries Fund, the Grieve Hudson Fund, the Edith Gillespie Fund and the Glasgow fund.

Markets initially experienced a period of extreme volatility with investors’ nerves stretched to the limit as governments and Central Banks struggled to deal with the impact of severe lockdowns in all of the World’s major economies.

The Governors accept that the attainment of the long‐ term investment objectives requires the acceptance of a certain level of risk which manifests itself in the volatility of, and occasional declines in, the capital value of the funds. The Governors seek to minimise the risks in a manner which is consistent with the attainment of the investment objectives.

The reaction of Central Banks was swift and decisive in terms of providing liquidity and comfort in these trying times. There was a concerted effort to soothe investors’ concerns by cutting interest rates to levels never experienced before and also to provide economic support to many sectors as business confidence plummeted. Markets experienced their lows at the end of March and confidence has slowly returned as has an element of economic recovery in many sectors.

In order to achieve these objectives, the Investment Manager is required to ensure an adequate

degree of diversification across a range of asset classes of varying degrees of risk. The degree of risk to which the portfolios are exposed will vary from time‐to‐time in accordance with economic and market conditions and the Investment Manager’s views thereon, but in order to control the limits of risk tolerance, the Governors have agreed a set of ranges for the level of investment in each asset class.

Over the year under review the combined funds have not been immune from the volatility experienced in markets and in particular have been affected by the reduction and suspensions of dividends forced on many companies either by regulatory pressure or commercial imperative.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

Over the 12 months to the end of August 2020 we have been in close contact and communication with the Schools’ officers and Finance Committee, we have provided regular reports and updates and over the period can report that the combined Schools Funds have generated a return of ‐0.15% net of all fees, time weighted and cash adjusted. This compares to a benchmark return of ‐2.22% over the same time period and we believe that this above benchmark return is evidence of our robust and disciplined investment process in extremely trying times.

or Form Tutor responsible for pastoral care and academic development. We also have systems of peer support in assisting teaching staff in enforcing the Schools’ very vigorous anti‐bullying policy.

STAFF

The Governors are very appreciative of the dedicated contribution made by all the Schools' staff, without whom the high standard and achievements would not have been possible.

AUDITORS

The future returns will be driven by the longer‐term impact that the current pandemic will have on both the economy and indeed on investor and consumer behaviour. At the time of writing it would appear that we are seeing nascent signs of an improving environment for investors, though many challenges lie ahead in both health and economic terms which will present both threats and opportunities for the focused and disciplined investor.

EQUAL OPPORTUNITIES

The Schools welcome pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that the Schools will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes.

So far as each of the Governors is aware at the time the report is approved:

Report of the Governors, incorporating a strategic report, approved by the Board of Governors, as the company directors, on 2021 and signed on behalf of the Board by:

Mr P J Marshall QC Chair of the Board of Governors

The Schools are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the ground of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

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Report of the Governors for the year ended 31[st] August 2020

GOVERNORS AND SENIOR OFFICERS

Mr P J Marshall QC – Chair of the Board of Governors

Philip is the immediate past Joint Head of Chambers at 1 King’s Bench Walk in London (2013‐2020), having been called to the bar in 1989 and appointed a QC in 2012.

His various professional accolades include being past Secretary, Vice‐Chairman and Chairman, and now an Honorary Life Vice President of the Family Law Bar Association and also a Fellow of the International Academy of Family Lawyers.

He is also a proud Old Boy of Merchant Taylors’ (1978‐1985) and an alumnus of Liverpool University, where he graduated in Law in 1988.

Philip has devoted his time to his former school for many years, serving as President of the Old Boys’ Association, a Trustee of the Merchant Taylors’ Old Boys Charitable Trust and as a Governor, before becoming Chair of the Board of Governors in July 2020.

Dr M Agarwal

Manoj currently holds the position of Consultant Psychiatrist at Merseycare NHS Foundation Trust. Passionate about his work, during his extensive career as a Consultant, Manoj has always been involved in postgraduate medical education, having held positions of Director of Medical Education and Head of School of Psychiatry in the Mersey Deanery.

He has Post Graduate Certificates in Teaching and Learning in Clinical Practice, and Cognitive Behaviour Therapy.

Manoj has had a long association with the School, with both his children having attended Merchant Taylors’ Schools from the Reception years. As an active Rotarian, Manoj is committed to its motto, Service Above Self.

Manoj sits as a member on our Education & Safeguarding Committee.

Mr C Cowling, BSc, FIA, FIMA, Csci, CMath

Charles attended Merchant Taylors’ Boys’ School between 1975 and 1981 before going up to Durham University to read mathematics.

He qualified as a Fellow of the Institute of Actuaries and was a worldwide partner at Mercer in Liverpool before taking up his current role as a director of JLT in Manchester. He is also a Fellow of the Institute of Mathematics and its Applications and is a Past Master of the Worshipful Company of Actuaries.

Charles is married to an Old Girl and has four children. He is a keen singer and also a runner, and regularly runs marathons for charity. He is also a churchwarden of St Mary’s Mallerstang and a Trustee of the Brathay Trust. Charles is a Liveryman of the Merchant Taylors’ Company and is their representative on the Board of Governors.

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Report of the Governors for the year ended 31[st] August 2020

Dr J Fox MBChB (Birm) DRCOG

Jenny worked as a GP until her retirement in 2016. After studying medicine at Birmingham Medical School, she worked in General Practice in the West Midlands and London before being appointed to a partnership in South Birmingham for 5 years until her move North.

In 1993 she joined forces with another local GP to take over a small single‐handed practice in Southport, where she worked until her retirement. She was in the first cohort of GP’s to gain the MRCGP through Assessment of practice and latterly was awarded her Fellowship. She has also been heavily involved with educating junior doctors who have chosen a career in General Practice, becoming an Associate Dean with Health Education England.

Gaining her PGCME with a distinction at the tender age of 53 was a testimony to her passion for life‐long learning. Her other interests include gardening, cooking, fell walking, skiing and France. Jenny’s three daughters all attended the Schools and are busy striving to reach their potential in the workplace after university.

Mrs S Gascoigne B.Ed (Hons)

Having gained a B.ed Hons from St Martins Lancaster, Sandi taught in three primary schools across South Manchester for 15 years, during which time she was responsible for SEN and Safeguarding. She taught Year 6 for nine years, preparing the children for their 11+ examinations, and was a Deputy Head for six years.

Sandi moved to Southport in 2000 and bought Yarrow House Nursery with her husband, which they owned for 15 years, during which time they undertook huge expansions and a relocation, and achieved an Outstanding Ofsted in 2015, prior to selling the nursery to a chain of nurseries later in 2015. Whilst having the nursery, Sandi also studied and gained Early Years Professional Status specialising in Early Years, and formed an ongoing link with Edge Hill Teacher Training.

Since then Sandi enjoys part time supply teaching for Sefton in a variety of schools, still enjoying the primary school environment, and says she “is not ready to be a housewife just yet!”. Sandi brings with her previous experience of being both a Teacher Governor, and a Parent Governor. Sandi and her husband have two boys, both of whom attended Merchant Taylors’ Senior Boys’ School.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

Miss A Gervasoni MBA, BHSc (Hons), ALCM, LLCM

Anna, who is Vice Chair of the Board of Governors, attended Merchant Taylors’ Girls’ School between 1986 and 1993 and left to pursue a career in the NHS as an Occupational Therapist before then gaining her MBA and switching paths to run her family’s business.

After fifteen years at the helm of that company, she now specialises in new business ventures within the hospitality industry, focusing on opening new sites and turning existing businesses around. Anna is also a qualified music performer and teacher.

She enjoys hiking and cooking and is a member of Formby Ladies Golf Club. Anna is a former President of the Old Girls’ Association and is their representative on the Board of Governors.

Mr G Hartley

Currently holding the position of Headmaster at The King’s School Chester, George’s previous positions include Principal of Elizabeth College Guernsey, Headmaster of Sixth Form at Berkhamsted School Hertfordshire, and Teacher at Highgate School London and Eton College.

George was educated at Cranbrook School Kent and St Catharine’s College Cambridge, where he read Geography. He subsequently completed an MSc in Environmental Science at Imperial College London. George currently Chairs the HMC Membership Committee and has carried out many HMC accreditation visits at schools across the UK. He is also a governor of Rudd Heath Academy in Northwich and a trustee of the ‘Platform for Life’ charity in Chester which provides mental health counselling for families of low income.

Making full use of his extensive educational knowledge and background, George joins the Board of Governors and sits as a member on the Education & Safeguarding Committee.

Born in Preston, George is now married with two children. A long‐suffering fan of Preston North End FC (with visions of the Premier League!), George’s other interests include rugby, cricket, mountaineering, poetry, singing, cooking and wine.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

Mr J Hepworth MRICS John, who is a Member of the Royal Institution of Chartered Surveyors, is a Director and Head of Asset Management at Mason Owen & Partners, a commercial property consultancy based in Liverpool.

As Head of Asset Management, he is directly responsible for all aspects of Mason Owen’s Asset Management service and is also involved in providing proactive property management advice relating to a variety of developments throughout the country.

John specialises in providing a number of landlords and national multiple retailers with Landlord and Tenant advice.

In his leisure time, John is a keen golfer and is a Member of the Royal Birkdale Golf Club.

Mrs G Johnston An experienced teacher, holding an M.Ed. from Liverpool University, Glynis spent her final 10 years of teaching at Stanfield. In 2000 she joined her husband in a new Economics Consultancy Practice as Finance Manager – a position she continues to hold.

Since 1995 Glynis has been a magistrate, chairing adult courts but also specialising in domestic abuse. Having lived in Blundellsands for many years she is Chair of Blundellsands Park Trust, known locally as The Key Park. She believes passionately in conserving this beautiful place for future generations.

Glynis’s interest in children and children’s welfare led her to becoming a Trustee of Alder Hey Children’s Charity, sitting on Finance/Audit and HR Committees. Her hobbies include reading, travel and cooking but she likes nothing more than spending time with her four grandchildren, one of whom attends MTGS.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

SENIOR OFFICERS

Headmaster – Merchant Taylors’ Boys’ School Mr D Wickes BA (Hons) MA Headmistress ‐ Merchant Taylors’ Girls’ School Mrs C Tao BSc (Hons) MSC grad.IPD Headmistress – Stanfield Merchant Taylors’ Miss E Lynan BA (Hons) PGCE NPQH Director of Finance and Operations (DFO) Mrs L Hill BA (Hons) MSc FCMA

Company Secretary: Mr A D Norton BSc (Hons) FCCA (Resigned 31 December 2020) Mrs N Chapman ACMA CGMA (Appointed 31 December 2020)

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

MEMBERS OF THE BOARD OF GOVERNORS

(the dates in brackets indicate the year in which the current term of appointment expires)

Governor (end of current term) Appointing Body Date First Appointed
Chair of Governors
Mr P Marshall QC (2022) 2019
Nominative Governors
Mr P Marshall QC (2022) Merchant Taylors’ Old Boys Association 2019
Miss A Gervasoni (2022) Merchant Taylors’ Old Girls Association 2016
Mr C A Cowling (2023) Merchant Taylors’ Company 2017
Co‐optative Governors
Appointed by the Board of Governors
Dr J Fox (2021) (Resigned 31 December 2020) 2012
Mr J Hepworth (2021) 2018
Mrs S Gascoigne (2021)
2018
Dr M Agarwal (2022) 2019
Mrs G Johnston (2023) 2020
Mr G Hartley (2023) 2020
Mr D Yip (Resigned 11 October 2019) 2016
Mrs K Crewe‐Read (Resigned 10 October 2019) 2017
Mr J P Cartwright (Resigned 21 June 2020)
2017
Mrs B C Bell CBE (Resigned 12 July 2020) 2013

Visitor

Master of the Merchant Taylors' Company

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

GOVERNORS’ COMMITTEES AND APPOINTMENTS

Finance Committee

Mr C A Cowling (Chair) Mr P Marshall QC

Education and Safeguarding Committee

Dr J Fox (Chair) Mrs S Gascoigne Dr M Agarwal Mr G Hartley

Estates Committee

Mr J Hepworth (Chair) Members to be confirmed

Nominations and Governance Committee

Miss A Gervasoni (Chair) Mrs S Gascoigne Mrs G Johnston

Official Charity Address & Company Registered Office

Merchant Taylors’ Schools, 186 Liverpool Road, Crosby, Liverpool, L23 0QP Tel: 0151‐928‐3308 Fax: 0151‐949‐9300 Website: www.merchanttaylors.com

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Report of the Governors for the year ended 31[st] August 2020

PRINCIPAL ADVISERS

Architects ‐ 10architect Ltd
12 Hilton Street
Manchester
M1 1JF
Auditors ‐ BDO LLP
5 Temple Square
Temple Street
Liverpool
L2 5RH
Bankers ‐ Barclays Bank PLC
20 Chapel Street
Liverpool
L3 9AG
Insurance Brokers / ‐
Griffiths & Armour		 CS Financial Solutions
Pension advisors Drury House Unity Building
19 Water Street 20 Chapel Street
Liverpool Liverpool
L2 0RL L3 9AG
Investment Advisers ‐
CCLA
Senator House
85 Queen Victoria Street
London
EC4V 4ET
Legal advisors ‐ Weightmans LLP
No 1 Spinningfields
Manchester
M3 3EB

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Statement of Governors’ Responsibilities for the year ended 31[st] August 2020

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors are responsible for preparing the Strategic Report, the Annual Report and the financial Statements in accordance with applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

In preparing these financial statements the Governors are required to:

The Governors are responsible for keeping accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Independent Auditor’s Report for the year ended 31[st] August 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Opinion

We have audited the financial statements of The Merchant Taylors’ School, Crosby (“the Parent Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 August 2020 which comprise the consolidated statement of financial activities including the income and expenditure account, the consolidated balance sheet, the parent charity balance sheet, 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).

Conclusions related 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:

Other information

In our opinion, the financial statements:

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 and the Parent Charitable Company in accordance with the ethical requirements 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.

The other information comprises the information included in the Report of the Governors, other than the financial statements and our auditor’s report thereon. The Governors 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 the audit:

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Independent Auditor’s Report for the year ended 31[st] August 2020

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s 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;

Responsibilities of Governors

As explained more fully in the Statement of Governors’ Responsibilities, the Governors (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 Governors determines 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 Governors are responsible for assessing the Group’s and the Parent 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 Governors either intend to liquidate the Group or the Parent 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 the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditor’s report.

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. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an 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 and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Knowles (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Liverpool,UK

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Date:

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Consolidated Statement of Financial Activities for the year ended 31[st] August 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including the income and expenditure account) as at 31 August 2020

Notes
Income and Endowments from:
Charitable activities
Fees Receivable
1(a)
Other educational income
2
Investments
3
Donations and legacies
4
Other trading activities
‐MTS Crosby Services Limited
5
Other
Government Grant
2
2
Total Incoming resources
Expenditure on:
Raising funds
Investment Management
Fundraising costs
Charitable Activities
7
Teaching Costs
Welfare
Premises
Marketing and publicity
Grants, bursaries, awards & prizes
1(b)
Finance and other costs
Support costs
Governance costs
8
‐MTS Crosby Services Limited
Restructure costs
5
Total Resources Expended
6,7
NET INCOMING/(OUTGOING)
RESOURCES BEFORE GAINS/(LOSS)
ON INVESTMENTS
Gains/(loss) on investment assets:
Realised
Unrealised
11
NET INCOMING/(OUTGOING)
REOURCES BEFORE TRANSFERS
Transfers between funds
9
NET INCOMING/(OUTGOING)
RESOURCES
NET MOVEMENT IN FUNDS
Balances brought forward
at 1 September 2019
Fund Balances as at 31 August 202014‐17		 Unrestricted Funds
Other
Designated
£
£
14,617,311
‐
353,382
‐
10,702
51,811
67,143
‐
100,171
‐
24,746
234,942
‐
‐
15,408,397
51,811
‐
10,992
165,969
‐
9,423,030
‐
673,043
‐
1,677,415
‐
277,768
‐
34,882
‐
476,530
1,564,848
119,337
‐
‐
‐
110,133
605,379
‐
‐
15,128,334
10,992
280,063
40,819
‐
‐
(7,335)
(23,458)
280,063
10,026
(561,950)
‐
(281,887)
10,026
(281,887)
10,026
12,125,360
2,412,299
11,843,473
2,422,325		 Restricted
Funds
£
‐
‐
194,806
259,487
‐
‐
‐
454,293
39,094
‐
‐
‐
‐
‐
1,183,291
‐
‐
‐
‐
‐
1,222,385
(768,092)
(41,066)
(125,549)
(934,707)
561,950
(372,757)
(372,757)
10,140,889
9,768,132		 Endowed
£
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
73,693
‐
‐
‐
‐
‐
‐
‐
73,693
(73,693)
‐
‐
(73,693)
‐
(73,693)
(73,693)
2,990,006
2,916,313		 Total
Funds
2020
£
14,617,311
353,382
257,319
326,630
100,171
24,746
234,942
15,914,501
50,086
165,969
9,423,030
673,043
1,751,108
277,768
1,218,173
476,530
1,564,848
119,337
110,133
605,379
16,435,404
(520,903)
(48,401)
(149,007)
(718,311)
‐
(718,311)
(718,311)
27,668,554
26,950,243		 Total
Funds
2019
£
15,573,148
534,582
317,011
312,993
208,302
32,575
‐
16,978,611
50,076
125,676
9,464,455
970,229
1,998,590
158,953
1,126,151
673,494
1,674,243
136,436
182,567
‐
16,560,870
417,741
(22,914)
280,525
675,352
‐
675,352
675,352
26,993,202
27,668,554

All amounts relate to continuing operations.

The statement of accounting policies and notes on pages 25 to 42 form part of these accounts.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Consolidated Statement of Financial Activities for the year ended 31[st] August 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including the income and expenditure account) as at 31 August 2019

Notes
Income and Endowments from:
Charitable activities
Fees Receivable
1(a)
Other educational income
2
Investments
3
Donations and legacies
4
Other trading activities
‐MTS Crosby Services Limited
5
Other
2
Total Incoming resources
Expenditure on:
Raising funds
Investment Management
Fundraising costs
Charitable Activities
7
Teaching Costs
Welfare
Premises
Marketing and publicity
Grants, bursaries, awards & prizes
1(b)
Finance and other costs
Support costs
Governance costs
8
‐MTS Crosby Services Limited
5
Total Resources Expended
6,7
NET INCOMING/(OUTGOING)
RESOURCES BEFORE GAINS/(LOSS)
ON INVESTMENTS
Gains/(loss) on investment assets:
Realised
Unrealised
NET INCOMING/(OUTGOING)
REOURCES BEFORE TRANSFERS
Transfers between funds
Gains on revaluation of fixed assets
NET INCOMING/(OUGOING)
RESOURCES
NET MOVEMENT IN FUNDS
Balances brought forward
at 1 September 2018
Fund Balances as at 31 August 201914‐17		 Unrestricted Funds
Other
Designated
£
£
15,573,148
‐
534,582
‐
20,788
61,930
50,000
‐
208,302
‐
32,575
‐
16,419,395
61,930
‐
11,042
125,676
‐
9,464,455
‐
970,229
‐
1,924,897
‐
158,953
‐
34,656
‐
673,494
1,674,243
136,436
‐
‐
‐
182,567
‐
15,345,606
11,042
1,073,789
50,888
‐
‐
5,969
47,842
1,073,789
104,699
(558,685)
‐
‐
‐
515,104
104,699
515,104
104,699
11,610,256
2,307,600
12,125,360
2,412,299		 Restricted
Funds
£
‐
‐
234,293
262,993
‐
‐
497,286
39,034
‐
‐
‐
‐
‐
1,091,495
‐
‐
‐
‐
1,130,529
(633,243)
(28,883)
232,683
(429,443)
558,685
‐
129,242
129,242
10,011,647
10,140,889		 Endowed
£
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
73,693
‐
‐
‐
‐
‐
‐
73,693
(73,693)
‐
‐
(73,693)
‐
‐
(73,693)
(73,693)
3,063,699
2,990,006		 Total
Funds
2019
£
15,573,148
534,582
317,011
312,993
208,302
32,575
16,978,611
50,076
125,676
9,464,455
970,229
1,998,590
158,953
1,126,151
673,494
1,674,243
136,436
182,567
16,560,870
417,741
(22,914)
280,525
675,352
‐
‐
675,352
675,352
26,993,202
27,668,554

All amounts relate to continuing operations

The statement of accounting policies and notes on pages 25 to 42 form part of these accounts.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Consolidated and School Balance Sheets for the year ended 31[st] August 2020

CONSOLIDATED AND SCHOOL BALANCE SHEETS (Company number 06654276) 31 AUGUST 2020

CONSOLIDATED AND SCHOOL BALANCE SHEETS
31 AUGUST 2020
 CONSOLIDATED AND SCHOOL BALANCE SHEETS
31 AUGUST 2020
 CONSOLIDATED AND SCHOOL BALANCE SHEETS
31 AUGUST 2020
 CONSOLIDATED AND SCHOOL BALANCE SHEETS
31 AUGUST 2020
 CONSOLIDATED AND SCHOOL BALANCE SHEETS
31 AUGUST 2020
 (Company number 06654276) (Company number 06654276) (Company number 06654276) (Company number 06654276)
Consolidated
2020
2019
Notes£
£
£
£
FIXED ASSETS
School buildings and equipment
10a
15,354,655
14,899,567
Investment Properties
10b
180,000
180,000
Listed investments
11
10,102,704
10,992,378
25,637,359
26,071,945
CURRENT ASSETS
Debtors
12
921,081
665,989
Stock
27,487
13,773
Bank deposit and current
accounts
4,784,147
4,170,171
5,732,715
4,849,933
CURRENT LIABILITIES
Creditors
13
(4,419,831)
(3,253,324)
NET CURRENT ASSETS/
(LIABILITIES)
1,312,884
1,596,609
TOTAL NET ASSETS
26,950,243
27,668,554
ENDOWED FUNDS
14
Special Investment (BH) Capital Fund
622,725
622,725
Fixed Assets
1,295,845
1,295,845
Land & Building Reserve
997,743
1,071,436
RESTRICTED FUNDS
15
9,768,132
10,140,889
UNRESTRICTED FUNDS
Designated
16
2,422,325
2,412,299
Land and Buildings Reserve
17
115,074
123,291
Retained Surplus
17
11,728,399
12,002,069
TOTAL FUNDS
18
26,950,243
27,668,554		 School

2020
2019
£
£
£
£
15,354,148
14,898,048
180,000
180,000
10,102,704
10,992,378
25,636,852
26,070,426
934,898
680,145
26,528
13,295
4,778,016
4,148,067
5,739,442
4,841,507
(4,426,051)
(3,243,379)
1,313,391
1,598,128
26,950,243
27,668,554
622,725
622,725
1,295,845
1,295,845
997,743
1,071,436
9,768,132
10,140,889
2,422,325
2,412,299
115,074
123,291
11,728,399
12,002,069
26,950,243
27,668,554
25,637,359
1,312,884		 26,071,945
1,596,609		 25,636,852
1,313,391		 26,070,426
1,598,128
5,732,715
(4,419,831)		 4,849,933
(3,253,324)		 5,739,442
(4,426,051)		 4,841,507
(3,243,379)
26,950,243 27,668,554 26,950,243 27,668,554
622,725
1,295,845
997,743
9,768,132
2,422,325
115,074
11,728,399		 622,725
1,295,845
1,071,436
10,140,889
2,412,299
123,291
12,002,069		 622,725
1,295,845
997,743
9,768,132
2,422,325
115,074
11,728,399		 622,725
1,295,845
1,071,436
10,140,889
2,412,299
123,291
12,002,069
26,950,243 27,668,554 26,950,243 27,668,554

Approved and authorised for issue by the Governors on 2021, and signed on their behalf by:

C Cowling Finance Governor

The statement of accounting policies and notes on pages 25 to 42 form part of these accounts.

The Merchant Taylors’ Schools, Crosby has taken advantage of an exemption as per section 408 of the Companies Act 2006 from presenting the individual income and expenditure account. The deficit for the year for the School, is £708,349 (2019: £644,817 surplus).

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Consolidated Cash Flow Statement for the year ended 31[st] August 2020

CONSOLIDATED CASH FLOW STATEMENT

Net cash provided by operating activities
(see below)
Cash flows from investing activities
Dividends and interest from investments
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Proceeds from sale of fixed assets
Cash provided by investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period
Reconciliation of incoming resources
to net cash inflow from operations
Net movement in funds
Investment income receivable
Bank interest receivable
Depreciation of buildings
Depreciation of equipment
(Increase)/decrease in debtors
(Increase) in stock
Increase in creditors
Losses/Gains on investments
Gains on investment properties
Net Cash inflow from operating activities
Analysis of change in net debt
Bank deposit and current accounts
Total		 2020
£

261,677
(985,670)
(713,014)

1,405,280
‐

£
(718,311)
(246,617)
(10,702)
376,602
297,267
(259,450)
(13,714)
1,023,220
197,408
‐
645,703
01.09.19
£
4,170,171
4,170,171		 £
645,703
(31,727)
613,976
4,170,171
4,784,147
Cashflows
£
613,976
613,976		 2019
£
315,618
(340,995)
(2,697,584)
2,340,827
‐
£
675,352
(296,223)
(20,788)
373,240
227,287
(254,411)
(13,773)
265,096
(257,611)
‐
£
698,169
(382,134)
316,035
3,854,136
4,170,171
698,169
31.08.20
£
4,784,147
4,784,147

The statement of accounting policies and notes on pages 25 to 42 form part of these accounts

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Statement of Accounting Policies for the year ended 31[st] August 2020

STATEMENT OF ACCOUNTING POLICIES

Accounting Policies

The Principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of Accounting

The school is limited by guarantee and has no share capital

The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 (Charities SORP(FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.

The financial statements have been prepared in accordance with the historical cost convention, modified by the revaluation of investments and investment properties which are included at fair value.

The trustees confirm that the Charity meets the definition of a public benefit entity under FRS 102.

The group financial statement consolidates the financial statements of the Schools and its subsidiary undertaking Merchants Taylors’ Schools Crosby Services Limited. All inter group transactions are eliminated fully on consolidation. No separate statement of financial activities has been prepared for the charity as advantage of the exemption afforded by s408 of the Companies Act 2006 has been taken.

Financial Instruments

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument.

All financial assets and liabilities are initially measured at transaction price. The Merchant Taylors’ School, Crosby 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.

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts.

Creditors and provisions are recognised where The Merchant Taylors’ School, Crosby has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount to settle the obligation can be measured or estimated reliably.

Creditors and provisions are recognised at their settlement amount allowing for any trade discounts.

Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, the Governors are required to make estimates and judgements. The matters considered below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that would impact the amounts reported in the results of operations, financial positions and cash flows:

Other key sources of estimation uncertainty include:

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Statement of Accounting Policies for the year ended 31[st] August 2020

Going Concern

In preparing these financial statements, the Governors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. In satisfaction of this responsibility, the Governors have considered the Group’s ability to meet its liabilities as they fall due for a period of at least 12 months from the signing of the financial statements. The financial statements have been prepared on a going concern basis, which principally assumes that the Group will continue to receive fee income at a sustainable level.

The Governors have continued to consider the impact of COVID 19 based on the latest available information and government guidance, and have completed sensitivity analysis on the potential financial impact of the pandemic on future numbers and fee income which has been fed into our financial plan. The Governors are satisfied with the projections. For the 20/21 academic year, the actual pupil numbers are in excess of original forecasts.

The Governors have also considered the cash requirements of the school for at least 12 months from the date of this report and are satisfied that sufficient funds are available to meet the liabilities as they fall due taking into account the strength of the balance sheet and levels of cash and unrestricted investments currently held of £4.8m and £2.4m, as well as access to an arranged overdraft of £0.5m. As a result, the governors believe that, whilst uncertainty exists, this does not pose a material uncertainty that would cast doubt on the school’s ability to continue as a going concern. The governors therefore consider it appropriate to prepare the financial statements on a going concern basis.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. The prize and scholarship fund represents individual funds set up by a number of donors for specific prizes or scholarships. The Grants and Bursaries funds are used to provide assistance with fees, based on financial need, in the form of bursaries, scholarships, school assisted places and awards to certain pupils.

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. They include designated funds where the trustees, at their discretion, have created a fund for a specific purpose. The Governors have designated that the Grieve Hudson Fund should be used for providing financial assistance to pupils in the Boys’ School and the Edith Gillespie Fund should be used for providing financial assistance to pupils in the Girls’ School.

Fees and similar income

Fees receivable and other income (including trading activities and educational income) are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the Schools, but include contributions received from restricted funds for assisted places, bursaries, scholarships and other awards.

Bank interest and listed investment income

Bank interest and listed investment income, together with the recoverable taxation, are accounted for on a receivable basis. Liquid resources are represented by bank interest in the Cash Flow Statement.

Donations and legacies

Donations and legacies received for the general purposes of the Schools are included as unrestricted designated funds. Donations and legacies subject to the specific wishes of donors are carried to relevant restricted funds, or to endowed funds where the amount is required to be held as permanent capital.

Resources expended

Resources expended are accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Funds Structure

The Schools have an endowed fund consisting of a Special Investment capital fund which is a permanent endowment fund originally endowed in 1974. This fund is used to support capital and infrastructure investments in the Schools.

Overhead and other costs, not directly attributable to particular functional activity categories, are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, by reference to staff time.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Statement of Accounting Policies for the year ended 31[st] August 2020

Costs of generating funds include all financing support costs. Charitable activities include expenditure associated with the objects of the Schools and include both the direct costs and support costs of the activity.

Governance costs comprise the costs of running the charity, including audit fees, Governors' liability insurance, reimbursed expenses and all the costs of complying with constitutional and statutory requirements.

Finance Leases

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired by finance leases are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Schools. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities.

Operating leases

Rentals payable are charged on a time basis over the lease term.

Pension schemes

The Schools contribute to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the Schools. The Scheme is a multi‐ employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the Schools. In accordance with FRS102 therefore, the Scheme is accounted for as a defined contribution scheme.

The Schools also contribute to a defined contribution Administrative Staff Pension Scheme for those who wish to join it, at 8% or 6% of annual basic salary. Contributions are also made to one individual’s personal pension scheme.

Finance and other costs

Other costs include depreciation of equipment and the running cost of school buses.

School buildings and equipment

Capitalisation and replacement

Land and buildings are shown in the accounts at historical cost. The Governors do not consider that it is appropriate to apply a current day value to the Schools’ land and buildings. A number of the properties are listed and the Governors are required to keep the buildings in a good state of repair. The costs of minor repairs are written off as incurred, major refurbishments such as the roof at the Boys’ School are capitalised.

Depreciation

All buildings and sports facilities are depreciated over 50 years, or over their useful life if this is considered to be less.

The depreciation of other assets aims to write off the cost over their estimated useful lives.

The rates of depreciation used are
Assets under construction
Buildings and sports facilities
Motor vehicles
Equipment
Administration computers
Teaching computers		 as follows:
Years
Nil
10‐50
4
3‐10
3‐4
3‐4

Not all furniture is capitalised, but is written off in full when purchased. Individual capital items costing less than £500 are written off when acquired.

Investment Properties

Investment properties are valued at open market value by an independent qualified professional. Depreciation is not provided for on these properties and any movement is reflected in the Statement of Financial Activities.

Listed investments and investment income

Listed investments are included at closing bid price value at the balance sheet date. The value of gains or losses arising from disposals and the unrealised value of market movements are included in the Statement of Financial Activities. Investment income is accounted for in the period in which the Schools are entitled to receipt.

Stocks

Recognition of liabilities

Liabilities are recognised once there is a legal or constructive obligation that commits the Schools to pay out resources.

Taxation

As a registered charity, the Schools are exempt from taxation on income and gains arising out of their charitable activities.

At the year end stock is accounted for on vending machines and catering food items.

Grants and Bursaries

Grants and bursaries etc. from restricted funds are included as restricted expenditure and unrestricted income in the period for which the award is given.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Statement of Accounting Policies for the year ended 31[st] August 2020

Allowances from unrestricted funds towards school fees receivable are treated as a reduction in those fees. The disclosure of these amounts is given in note 1(a).

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

2020
1
FEES RECEIVABLE
£
(a)
Fees receivable consist of:
Gross fees
15,811,922
Less:
Total grants, bursaries, scholarships,
awards and allowances
Covid 19 Discount
(1,838,314)
(539,588)
13,434,020
Add:
Bursaries, scholarships and awards
paid for by Restricted Funds
1,183,291
14,617,311
All fees receivable were unrestricted in the current and
prior year.
Movements in deferred income
Fee income deferred at 1.9.19
Fee income receivable in the year
Fee income deferred at 31.08.20
Gross fees recognised in the year
1,212,345
15,772,015
(1,172,438)
15,811,922
(b)
The total amount paid for by Restricted Funds consists of:
Bursaries
‐
School Assisted Places
660,351
Scholarships
192,157
Awards
330,783
Total included in gross fee income
1,183,291
Prizes and leaving awards
‐
1,183,291
The total amount paid for by Unrestricted Funds consists of:
Prizes and scholarships
34,882
1,218,173
2
OTHER INCOME
2020
Educational activities
£
Registration fees
‐
School buses
353,382
353,382
All income from educational activities was unrestricted in the current and prior year.
Other ancillary income
2020
£
Miscellaneous items
Government grant re Furlough
24,746
234,942
259,688		 2019
£
16,320,214
(1,838,561)
14,481,653
1,091,495
15,573,148
1,216,470
16,316,089
(1,212,345)
16,320,214
‐
604,103
286,747
200,645
1,091,495
‐
1,091,495
34,656
1,126,151
2019
£
1,708
532,874
534,582
2019
£
32,575
‐
32,575

All other ancillary income was unrestricted in the current and prior year.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

3 INVESTMENT INCOME
Bank Interest
Listed investment income		 2020
£
10,702
246,617
257,319		 2019
£
20,788
296,223
317,011

Investment income of £194,806 (£234,293) was restricted and £51,811 (2019: £61,930) was designated. All other investment income in the current and prior year was unrestricted.

4 DONATIONS AND LEGACIES

These comprise sums received from various individuals and organisations, for investment in the Grieve Hudson, Edith Gillespie, Grants and Bursaries or Prize and Scholarship Funds.

In 2020 included in the total of £326,630 (2019: £312,993) is £90,000 (2019: £115,000) received from the Merchant Taylors’ Schools General Charitable Trust.

Donations and legacies of £259,487 (2019: £262,993) were restricted. All other donations and legacies in the current and prior year was restricted.

5 INVESTMENT IN SUBSIDIARY COMPANY

The School has a 100% interest in its trading subsidiary Merchant Taylors’ Schools Crosby Services Limited which is incorporated in the United Kingdom (Company number 08668764).

Merchant Taylors’ Schools Crosby Services Limited’s principal activity continues to be that of promoting commercial activities which use the Schools’ assets to generate income from lettings and other activities. Its trading results for the year, as extracted from the audited financial statements, are summarised below;

Turnover
Expenditure
Retained (loss)/ profit for the year		 2020
£
100,171
(110,133)
(9,962)		 2019
£
208,302
(182,567)
25,735

The net assets of the subsidiary at 31 August 2020 amounted to £100 (2019: £100)

6 EXPENDITURE
Direct charitable expenditure includes £370,875 (2019: £212,339) spent on major repairs and
maintenance of the Schools’ buildings and equipment.
2020 2019
Other expenditure includes: £ £
Auditors’ remuneration:
For audit 25,227 25,244
Governors’ liability insurance 17,407 14,700
Investment management fees 50,086 50,076
Lease payments 51,985 53,627
Total staff costs were as follows:
Salaries 8,371,908 8,749,747
Tax and National Insurance costs 792,210 785,472
Pension contributions (See Note 21) 1,489,975 1,083,448
Redundancy/ Settlement agreements 605,379 ‐
11,259,472 10,618,667

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

Included in the staff costs are salaries of £68,495 (2019: £134,573), Tax and NI of £3,152 (2019: £4,505) and Pension contributions of £2,560 (2019: £4,263) all relating to the Trading Company.

2020 2019
The number of employees whose emoluments exceeded
£60,000 were: No. No.
£60,000‐£70,000 7 4
£70,000‐£80,000 5 1
£80,000‐£90,000 1 1
£90,000‐£100,000 2 1
£100,000‐£110,000 2 1
£110,000‐£120,000 1 ‐
£120,000‐£130,000 1 ‐
£190,000‐£200,000
1		 ‐

The average total number of employees in the year was 307 (2019: 326), including 143 (2019: 140) part time staff. The average number of teaching and teaching support staff employed by the Schools was 151 (2019: 160). Included within these employee numbers are staff relating to the Trading Company of 10 (2019: 17).

Contributions were made to the Teachers Pension Scheme, which is a defined benefits scheme, for 17 higher paid employees and contributions amounting to £12,079 (2019: £6,990) were made to a defined contributions scheme for 2 employees.

During the year 34 employees received termination payments for loss of office amounting to £676,489 (2019: £129,796) in total.

The key management personnel of the School’s comprise the Governors, the Head at the Boy’s Senior School, the Head at the Girl’s Senior School, the Head at the Junior Boy’s School, the Head at the Mixed infants and Girl’s Junior schools and the Director of Finance and Operations. The Total employee benefits received by the key management personnel for their services to the charity were £709,803 (2019: £542,246). Neither the Governors nor persons connected with them received any remuneration or other benefit from the Schools. Expenses of £4,027 were re‐imbursed to 3 Governors (2019: £4,333 to 3 governors)

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

7
ANALYSIS OF TOTAL RESOURCES EXPENDED 2020
Staff Costs
Depreciation
Charitable Activities:
£
£
Costs of Activities in furtherance of the Charity’s
objects for the public benefit
Teaching Costs
8,248,252
279,409
Welfare
505,640
‐
Premises
Marketing and publicity
466,584
178,114
392,109
‐
Bursaries, awards and prizes (note 1b)
‐
‐
Finance and other costs
‐
‐
Fundraising
86,438
‐
Sub‐Total
9,485,028
671,518
Support Costs
1,094,858
‐
Trading Company
Re structure costs
74,207
605,379
928
‐
11,259,472
672,446
Governance Costs:
Management and administration of the charity
(note 8)
‐
‐
Costs of generating funds:
Investment management
‐
‐
11,259,472
672,446
ANALYSIS OF TOTAL RESOURCES EXPENDED 2019
Staff Costs
Depreciation
Charitable Activities:
£
£
Costs of Activities in furtherance of the Charity’s
objects for the public benefit
Teaching Costs
8,165,286
295,010
Welfare
630,147
‐
Premises
Marketing and publicity
519,615
72,298
308,054
‐
Bursaries, awards and prizes (note 1b)
‐
‐
Finance and other costs
‐
‐
Fundraising
84,313
‐
Sub‐Total
9,471,659
603,064
Support Costs
1,003,667
‐
Trading Company
143,341
1,012
10,618,667
604,076
Governance Costs:
Management and administration of the charity
(note 8)
‐
‐
Costs of generating funds:
Investment management
‐
‐
10,618,667
604,076		 Other
Total
2020
Total
2019
£
£
£
895,369
9,423,030
9,464,455
167,403
673,043
970,229
892,415
99,654
1,751,108
277,768
1,998,590
158,953
1,218,173
1,218,173
1,126,151
476,530
476,530
673,494
79,531
165,969
125,676
3,829,075
13,985,621
14,517,548
469,990
1,564,848
1,674,243
34,998
‐
110,133
605,379
182,567
‐
4,334,063
16,265,981
16,374,358
119,337
119,337
136,436
50,086
50,086
50,076
4,503,486
16,435,404
16,560,870
Other
Total
2019
£
£
1,004,159
9,464,455
340,082
970,229
1,170,921
86,655
1,998,590
158,953
1,126,151
1,126,151
673,494
673,494
41,363
125,676
4,442,825
14,517,548
670,576
1,674,243
38,214
182,567
5,151,615
16,374,358
136,436
136,436
50,076
50,076
5,338,127
16,560,870

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

Investment management expenditure of £39,094 (2019: £39,034) was restricted and £10,992 (2019: £11,042) was designated. There was no unrestricted costs in the current and prior year.

Bursaries awards and prizes of £1,183,291 (2019: £1,091,495) was restricted. All bursaries, awards in the current and prior year were unrestricted.

Depreciation of £73,693 (2019: £73,693) was from endowed funds. All other expenditure in the current and prior year was unrestricted.

8 ANALYSIS OF GOVERNANCE COSTS:

Governors’ liability insurance
Auditors’ remuneration (see note 6)
Legal fees
Governors training
Governors’ reimbursed expenses
Governors’ expenses comprise:
Travel		 2020
£
17,407
25,227
72,676
‐
4,027
119,337
2020
£
4,027
4,027		 2019
£
14,700
25,244
89,199
2,960
4,333
136,436
2019
£
4,333
4,333

During the course of the period reimbursements were made to 3 Governors (2019: 3).

9 TRANSFERS 2020

he transfers between funds are represented by:
a)transfers made in the course of normal operating
ctivity
evy on Schools’ net fees to Grants & Bursaries Fund		 Unrestricted
(561,950)
(561,950)		 Designated
‐
‐		 Restricted
561,950
561,950

TRANSFERS 2019

TRANSFERS 2019
The transfers between funds are represented by:
(a)transfers made in the course of normal operating
activity
Levy on Schools’ net fees to Grants & Bursaries Fund		 Unrestricted
(558,685)
(558,685)		 Designated
‐
‐		 Restricted
558,685
558,685

33

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

10a TANGIBLE FIXED ASSETS
GROUP




Cost
1 September 2019
Additions
Transfers

31 August 2020


Depreciation
1 September 2019
Charge for period

31 August 2020

Net book values
31 August 2020

31 August 2019
Asset
Freehold
under
Land and
construction
Buildings
£
£
432,000
19,126,166
‐
242,558
(432,000)
‐
______
_

‐
19,368,724

‐
(5,332,647)
‐ (376,602)
____ _
‐ (5,709,249)
_ _
‐ 13,659,475
____
432,000 13,793,519
___ ____		 Long term
Leasehold
Land and
Buildings
£
93,364
‐
‐
__
93,364
(93,364)
‐
_
(93,364)
__
‐
__
‐
______		 Equipment
Computers and
Motor
Vehicles
Total
£
£
3,017,341
22,668,871
886,399
1,128,957
432,000
‐
_
_
4,335,74023,797,828
(2,343,293)(7,769,304)
(296,267)(673,869)
___ __
(2,640,560)(8,443,173)
_ _
1,695,180 15,354,655
__ ___
674.048 14,899,567
_ __









All tangible fixed assets were used for Charitable purposes.

10b INVESTMENT PROPERTIES

GROUP £

Market value brought forward at 1 September 2019 180,000 Additions ‐ Transfer to tangible fixed assets ‐ Gain on revaluations ‐ _ Market value carried forward at 31 August 2020 180,000 _

Investment Properties are included on a fair value basis. External revaluations have been carried out by Clive Watkin, Berkeley Shaw and Entwistle Green all Estate Agents on a rolling three year programme and internally on an annual basis. The trustees have considered the valuations above as a fair reflection of the year end fair value.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

10a TANGIBLE FIXED ASSETS SCHOOL

SCHOOL




Cost
1 September 2019
Additions
Transfers

31 August 2020


Depreciation
1 September 2019
Charge for period

31 August 2020

Net book values
31 August 2020

31 August 2019
Asset
Freehold
under
Land and
construction
Buildings
£
£
432,000
19,126,166
‐
242,558
(432,000)
‐
______
_

‐
19,368,724

‐
(5,332,647)
‐ (376,602)
____ _
‐ (5,709,249)
_ _
‐ 13,659,475
____
432,000 13,793,519
___ ____		 Long term
Equipment
Leasehold
Computers and
Land and
Motor
Buildings
Vehicles
Total
£
£
£
93,364
3,009,744
22,661,274
‐
886,399
1,128,957
‐
432,000
‐
__
__
__
93,364
4,328,14323,790,231
(93,364) (2,337,215)(7,763,226)
‐ (296,255)(672,857)
_ _ __
(93,364) (2,633,470)(8,436,083)
_ _ _
‐ 1,694,673 15,354,148
_ _ ___
‐ 672,529 14,898,048
_ __ _









All tangible fixed assets were used for Charitable purposes.

10b INVESTMENT PROPERTIES

SCHOOL £ Market value brought forward at 1 September 2019 180,000 Additions ‐ Transfer to tangible fixed assets ‐ Gain on revaluations ‐ _ Market value carried forward at 31 August 2020 180,000 _

Investment Properties are included on a fair value basis. External revaluations have been carried out by Clive Watkin, Berkeley Shaw and Entwistle Green all Estate Agents on a rolling three year programme and internally on an annual basis. The trustees have considered the valuations above as a fair reflection of the year end fair value.

35

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

11 LISTED INVESTMENTS GROUP AND SCHOOL

Unrestricted
(Designated)
£
Market value as at 1 September 2019
2,285,353
Additions at cost
130,250
Disposals at opening market value
(226,183)
Increase in market value
(30,793)
Market value as at 31 August 2020
2,158,627
The composition of listed investments as at 31 August 2020 is as
£
Fixed interest UK
338,881
Fixed interest unit trusts
‐
Oversea fixed Interest
85,479
UK equities
549,127
European equities
191,565
North American equities
251,224
Japanese equities
90,076
International equities
81,765
Far Eastern and Australasian
89,459
Emerging Economies
77,551
UK property
139,463
Industrials
‐
Alternative assets
228,199
Commodities
35,838
Total
2,158,627		 Restricted
£
8,641,320
582,764
(1,179,097)
(166,615)
7,878,372
follows:
£
1,418,251
‐
326,939
1,891,866
559,160
930,984
258,608
329,427
320,262
263,642
524,698
‐
834,637
219,898
7,878,372		 Endowed
£
65,705
‐
‐
‐
65,705
£
65,705
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
65,705		 Total
£
10,992,378
713,014
(1,405,280)
(197,408)
10,102,704
£
1,822,837
‐
412,418
2,440,993
750,725
1,182,208
348,684
411,192
409,721
341,193
664,161
‐
1,062,836
255,736
10,102,704

All the quoted fixed asset investments are listed on a recognised Stock Exchange.

There are no individual investments which comprise greater than 5% of the value of the portfolio.

12 DEBTORS

Fees outstanding
Investment income
Amount due from subsidiary undertaking
Gift aid due from subsidiary undertaking
Legacies
Sundry debtors and prepayments		 Consolidated
2020
2019
£
£
458,826
236,637
18,703
‐
23,061
‐
‐
‐
‐
‐
443,552
406,291
921,081
665,989		 School
2020
2019
£
£
458,826
236,637
18,703
18,022
23,061
685
‐
‐
25,735
‐
439,347
394,027
934,898
680,145		 School
2020
2019
£
£
458,826
236,637
18,703
18,022
23,061
685
‐
‐
25,735
‐
439,347
394,027
934,898
680,145
680,145

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

13
CREDITORS
Creditors due within one year:
Trade creditors
Deferred income
Taxation and National Insurance
Pensions
Amount due to subsidiary undertaking
Other creditors and accruals		 Consolidated
2020
2019
£
£
410,588
316,480
1,172,438
1,212,345
221,226
201,423
157,694
124,866

‐
‐
2,457,885
1,398,210
4,419,831
3,253,324		 School
2020
2019
£
£
410,588
316,480
1,172,438
1,212,345
221,226
201,423
157,694
124,866
‐
2,464,105
1,388,265
4,426,051
3,243,379		 School
2020
2019
£
£
410,588
316,480
1,172,438
1,212,345
221,226
201,423
157,694
124,866
‐
2,464,105
1,388,265
4,426,051
3,243,379
3,243,379
14 ENDOWED FUNDS
GROUP AND SCHOOL 2020 Balance at Investment Resources Depreciation Balance at
01.09.19 Movement Expended 31.08.20
£ £ £ £ £
Special Investment Capital Fund 622,725 ‐ ‐ ‐ 622,725
Fixed Assets 1,295,845 ‐ ‐ ‐ 1,295,845
Land & Building Reserve 1,071,436 ‐ ‐ (73,693) 997,743
__ __ __ __ __
2,990,006 ‐ ‐ (73,693) 2,916,313
ENDOWED FUNDS
GROUP AND SCHOOL 2019 Balance at Investment Resources Depreciation Balance at
01.09.18 Movement Expended 31.08.19
£ £ £ £ £
Special Investment Capital Fund 622,725 ‐ ‐ ‐ 622,725
Fixed Assets 1,295,845 ‐ ‐ ‐ 1,295,845
Land & Building Reserve 1,145,129 ‐ ‐ (73,693) 1,071,436
__ __ __ __ __
3,063,699 ‐ ‐ (73,693) 2,990,006

The Special Investment (BH) Capital Fund represents a permanent endowment, as specified in the Charity Commission's Scheme. The income arising from the investments held in the Fund is allocated to the Special Investment (BH) Income Fund, which is used to help finance capital projects carried out by the Schools.

The Special Investment Capital Fund was originally endowed in 1974 with £145,331.

On 5 December 2001, the Governors were granted an Order by the Charity Commission to decide which part of this unapplied total return could be used for the Charity's income or capital purposes. The Governors have decided not to apply any of this return so far. The unapplied total return at 31 August 2020, therefore amounts to £477,394 (2019: £476,365).

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended31[st] August 2020

15 RESTRICTED FUNDS
GROUP AND SCHOOL 2020Balance at Incoming Resources Transfers Investment Balance at
01.09.19 Resources
Expended		 (Note 9) Movement 31.08.20
£ £ £ £ £ £
Prize and Scholarship
Funds 374,376 ‐ ‐ ‐ 3,820 378,196
Grants Fund 535,994 ‐ ‐ ‐ ‐ 535,994
Bursaries Fund 8,090,105 454,293 (1,217,606) 561,950 (170,435) 7,718,307
Glasgow fund 1,040,414 ‐ (4,779) ‐ ‐ 1,035,635
Donation from OBA 100,000 ‐ ‐ ‐ ‐ 100,000
__ _ __ __ __ ___
10,140,889 454,293 (1,222,385) 561,950 (166,615) 9,768,132
__ _ __ __ _ ___
RESTRICTED FUNDS
GROUP AND SCHOOL 2019Balance at Incoming Resources Transfers Investment Balance at
01.09.18 Resources
Expended		 (Note 9) Movement 31.08.19
£ £ £ £ £ £
Prize and Scholarship
Funds 355,712 ‐ ‐ ‐ 18,664 374,376
Grants Fund 535,994 ‐ ‐ ‐ ‐ 535,994
Bursaries Fund 8,105,155 395,559 (1,125,717) 558,685 156,423 8,090,105
Glasgow fund 1,014,786 1,727 (4,812) ‐ 28,713 1,040,414
Donation from OBA ‐ 100,000 ‐ ‐ ‐ 100,000
__ _ __ __ __ ___
10,011,647 497,286 (1,130,529) 558,685 (203,800) 10,140,889
__ _ __ __ _ ___

The Prize and Scholarship Funds represent individual trust funds set up by a number of donors, including the John Harrison Foundation account.

The Grants and Bursaries Funds are used to provide assistance with fees, based on financial need, in the form of bursaries, scholarships, school assisted places and awards.

16 UNRESTRICTED FUNDS –
DESIGNATED GROUP AND
SCHOOL 2020
Balance at
01.09.19
£
Special Investment
Income Fund
1,076,421
Grieve Hudson Fund
660,012
Edith Gillespie Fund
675,866
2,412,299		 Incoming
Resources
£
24,464
13,706
13,641
51,811		 Resources
Expended
£
(5,234)
(2,891)
(2,867)
(10,992)		 Transfers
£
‐
‐
‐
‐		 Investment
Movement
£
(10,535)
(10,158)
(10,100)
(30,793)		 Balance at
31.08.20
£
1,085,116
660,669
676,540
2,422,325

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

16 (Continued)

UNRESTRICTED FUNDS – DESIGNATED GROUP AND SCHOOL 2019

Special Investment
Income Fund
Grieve Hudson Fund
Edith Gillespie Fund		 Balance at
01.09.18
£
1,029,517
631,004
647,079
2,307,600		 Incoming
Resources
£
30,306
15,843
13,641
61,930		 Resources
Expended
£
(5,322)
(2,872)
(2,848)
(11,042)		 Transfers
£
‐
‐
‐
‐		 Investment
Movement
£
(21,920)
(16,037)
(15,854)
(53,811)		 Balance at
31.08.19
£
1,076,421
660,012
675,866
2,412,299

Details of the Special Investment Income Fund are given in note 14.

The Grieve Hudson and Edith Gillespie Funds were established from general legacies received for the Boys and Girls Schools respectively. The Governors have designated that the Grieve Hudson Fund should be used for providing financial assistance to pupils in the Boys’ School and the Edith Gillespie Fund should be used for providing financial assistance to pupils in the Girls’ School.

17 UNRESTRICTED FUNDS – OTHER

UNRESTRICTED FUNDS – OTHER
Balance at 1 September 2019
Net incoming resources before transfers
Transfers between funds (note 9)
Gain on revaluation of investment properties
Write back of accelerated depreciation of land and
buildings in previous years
Balance at 31 August 2020		 Land and
Building
Reserve
£
123,291
‐
‐
‐		 Retained
Surplus
£
12,002,069
280,063
(561,950)
‐		 Total
£
12,125,360
280,063
(561,950)
‐
123,291
(8,217)
115,074		 11,720,182
8,217
11,728,399		 11,843,473
‐
11,843,473

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

17 UNRESTRICTED FUNDS – OTHER 2019

Balance at 1 September 2018
Net incoming resources before transfers
Transfers between funds (note 9)
Gain on revaluation of investment properties
Write back of accelerated depreciation of land and
buildings in previous years
Balance at 31 August 2019		 Land and
Building
Reserve
£
131,508
‐
‐
‐		 Retained
Surplus
£
11,478,745
1,073,789
(558,685)
‐		 Total
£
11,610,256
1,073,789
(558,685)
‐
131,508
(8,217)
123,291		 11,993,852
8,217
12,002,069		 12,125,360
‐
12,125,360

The Land and Buildings Reserve results from the change in accounting policy in 1997, concerning the depreciation of the Schools' buildings. It represents the accelerated depreciation charged in previous years and has been transferred to the Retained Surplus.

18 ALLOCATION OF THE CHARITY'S NET ASSETS 2020

The net assets were held in the various Funds as follows:

Tangible Net Current Net Current
Fixed Assets Investments Assets Total
£ £ £ £
Endowed Funds 2,293,588 65,705 557,020 2,916,313
Restricted Fund
 ‐ 7,878,372 1,889,760 9,768,132
Unrestricted Funds 13,061,067 2,158,627 (953,896) 14,265,798
____ __ __ ___
15,354,655 10,102,704 1,492,884 26,950,243
____ __ __ ___

ALLOCATION OF THE CHARITY'S NET ASSETS 2019

The net assets were held in the various Funds as follows:

Tangible Net Current Net Current
Fixed Assets Investments Assets Total
£ £ £ £
Endowed Funds 2,367,281 65,705 557,020 2,990,006
Restricted Fund
 ‐ 8,641,320 1,499,569 10,140,889
Unrestricted Funds 12,712,286 2,285,353 (459,980) 14,537,659
____ __ __ ___
15,079,567 10,992,378 1,596,609 27,668,554
____ __ __ ___

As part of the Schools' incorporation, the Charity Commission determined that part of the Schools' properties should be treated as permanent endowment. This is set out in the new Scheme dated 28th August 2008.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY

Notes to the Accounts for the year ended 31[st] August 2020

19 CAPITAL COMMITMENTS

19
CAPITAL COMMITMENTS
Capital expenditure authorised but not contracted for is made up as follows:
Capital expenditure authorised and contracted for is made up as follows:
Roof refurbishment
Kitchen refurbishments
Williams Hall
Fire alarm system		 2020
£
‐
2020
£
‐

‐
‐
‐
‐		 2019
£
‐
2019
£
‐
470,000
224,356
228,054
922,410

20 COMMITMENTS UNDER OPERATING LEASES:

At 31 August 2020 the Schools had future minimum lease payments under non‐cancellable operating leases as follows:

Operating leases which expire:
Not later than one year
Later than 1 year and not later than 5 years
More than 5 years		 2020
£
51,985
58,972
22,560
133,517		 2019
£
54,343
56,283
27,730
138,356

The operating leases shown in the table above relate to leases on photocopiers, computers, computer networks and minibuses.

THE MERCHANT TAYLORS’ SCHOOLS, CROSBY Notes to the Accounts for the year ended 31[st] August 2020

21 PENSION SCHEMES

The School participates in the Teachers' Pension Scheme (England and Wales) (the “TPS"), for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,350,739 (2019: £946,883) and at the year‐end £112,244 (2019: £78,772) was accrued in respect of contributions to this scheme.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

The TPS is an unfunded multi‐employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The Schools also contribute to a defined contribution Administrative Staff Pension Scheme for those who wish to join it, at 8% of annual basic salary. The pension charge for the year includes contributions payable to Royal London of £139,811 (2019: £137,801)

22 RELATED PARTIES

The Schools' fundraising activities are carried out by a separate registered charity, the Merchant Taylors' School General Charitable Trust, for whom the Schools provide office accommodation and other support services. The Trustees of the General Charitable Trust are current Governors of the Schools. The General Charitable Trust donated £90,000 in 2020 (2019: £115,000).

Merchant Taylors’ School Crosby Limited, a wholly owned subsidiary, carries out commercial activities and uses the Schools’ assets to generate income from lettings and other activities. Its year end is 31 August 2020 and the deficit of £9,962 will be funded by the Schools.

Registered Company: 6654276 Registered Charity Number: 1125485