COMPANY REGISTRATION NUMBER: 06647580 CHARITY REGISTRATION NUMBER: 1126187
The New Girls School Company Limited by Guarantee Financial Statements
31 July 2020
HAFFNER HOFF LTD
Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
The New Girls School
Company Limited by Guarantee
Financial Statements
Year ended 31 July 2020
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 7 |
| Statement of financial activities (including income and | |
| expenditure account) | 11 |
| Statement of financial position | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 |
The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 July 2020
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 July 2020.
Reference and administrative details
Registered charity name The New Girls School Charity registration number 1126187 Company registration number 06647580 Principal office and registered 2nd Floor Parkgates office Bury New Road Manchester M25 0TL The trustees Mr M M De Vries Mr M Luftig Mr J Roitenbarg Auditor Haffner Hoff Ltd Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
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The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 July 2020
Structure, governance and management
The New Girls School is constituted by Memorandum of Association and is a company limited by guarantee. It was incorporated on 15 July 2008 as a company and the company number is 6647580. It was registered as a charity on 07 October 2008 with a charity number 1126187.
Governing Body
The trustees of the Charity are legally responsible for the overall management of the school. The day to day running of the school is undertaken by the principal and the senior teaching staff. The principal is aware of the need to follow best practice and is actively reviewing the organisational structure of the school and the method by which new trustees are appointed. This ongoing review has concluded that the organisational structures in place are sufficient and robust to take the school into the future. The Trustees are kept informed of the running of the school and new Trustees will be appointed when and if the need arises.
Recruitment and appointment of new trustees would be in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation.
There is no chief executive officer. The day to day affairs are undertaken by Mr M M De Vries on behalf of the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees.
Training and induction of trustees is applied as applicable.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The risks faced by the trust are principally operational risks from ineffective running of the school. These risks are managed by the trustees ensuring the right staff are utilised and the right policies are implemented.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved from all aspects of the school management.
Risk management
The Trustees are responsible for the management of the risks faced by the Charity. A formal review of the charity's risk management processes is undertaken on an annual basis.
The key controls used by the charity include:
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Comprehensive strategic planning and budgeting;
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Established organisational structure and lines of reporting;
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Clear authorisation and approval levels.
Through the risk management processes established for the Charity, the Trustees are satisfied that
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The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 July 2020
the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
Objectives and activities
The objects of the charity are the advancement of Jewish religious education and the relief of poverty.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities and setting grant making policy for the year.
Aims
The main aim of the Charity continued to be the provision of educational facilities to Jewish girls ages 3 to 16.
Objectives for the year
This year, the focus has been on the continued achievement of academic performance.
Principal Activities of the year
The school provided education to 340 girls aged 3 to 16. This was achieved by the charity operating an infants section, a primary school and a high school all on one campus.
Grant making policy
The charity gives out grants in line with the above objects.
Grants made during the year to institutions are as detailed in the accounts.
The trustees consider they have met the public benefit test and outline these achievements below.
The trustees consider the shorter term aims to be similar to the longer term aims and assess the achievement of the charity in the same way.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the charity.
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The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 July 2020
Achievements and performance
A summary of the results and movements of funds for the year are shown in the Statement of Financial Activities. The most recent OFSTED inspection for the school was in July 2019. The trustees are proud to report that the school attained a GOOD grading from the inspectors along with some recommendation that the trustees have welcomed and are implementing.
Fundraising costs incurred during the year are as disclosed in the notes to the accounts.
The charity has support and governance costs comprising professional fees, administrative wages and sundry other costs.
There were no investments made during the year.
There were no related party transactions in the year.
There was an overall net income for the year amounting to £54,547.
Financial review
Results for the year
Donation income this year amounted to £84,053. Income in respect of contributions and fees amounted to £984,405. Grants receivable were £39,215. Educational expenditure in the year amounted to £1,277,355. Support costs were £67,165.
Review of activities and achievements
The charity operated a kindergarten for girls of pre-school age as well as a primary and high school. The student roll was 264 girls in the primary school as well as 76 girls in the high school during the year. The school has been inspected by OFSTED and continues to be monitored by them.
Development
The long-term aim is to maintain the school with classes of all ages up to and including age 16.
Reserves Policy
The trustees have reviewed the level of reserves held by the Charity. The review has concluded that to allow the Charity to be managed efficiently and to provide a buffer for uninterrupted services the level of free reserves, being those not tied up in fixed assets, needs to be maintained at not less than six months expenditure.
The free reserves of the charity, being the net current assets of the charity, amounted to £79,058, all of which are unrestricted. This amount is within the free reserves level set out above.
Coronavirus
The charity continued to operate during pandemic as best as possible and was also in receipt of JRS funding from HMRC for furloughed staff.
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The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 July 2020
Plans for future periods
The trustees plan to continue raising funds for projects in line with the memorandum and articles of association and to pursue those educational objectives and projects by operating and maintaining the school with all the resources available to the charity.
Trustees' responsibilities statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate 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.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
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The New Girls School
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 July 2020
The trustees' annual report and the strategic report were approved on 21 June 2021 and signed on behalf of the board of trustees by:
Mr M M De Vries Trustee
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The New Girls School
Company Limited by Guarantee
Independent Auditor's Report to the Members of The New Girls School
Year ended 31 July 2020
Opinion
We have audited the financial statements of The New Girls School (the ‘Charity') for the year ended 31 July 2020 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 July 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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The New Girls School
Company Limited by Guarantee
Independent Auditor's Report to the Members of The New Girls School (continued)
Year ended 31 July 2020
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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The New Girls School
Company Limited by Guarantee
Independent Auditor's Report to the Members of The New Girls School (continued)
Year ended 31 July 2020
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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The New Girls School
Company Limited by Guarantee
Independent Auditor's Report to the Members of The New Girls School (continued)
Year ended 31 July 2020
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity'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 charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Haffner Hoff Ltd
Accountants & statutory auditor 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
21 June 2021
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The New Girls School
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 31 July 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 1,165,787 | 39,215 | 1,205,002 | 1,155,333 |
| Charitable activities | 6 | – | 164,248 | 164,248 | 159,797 |
| Other trading activities | 7 | 29,775 | – | 29,775 | – |
| Investment income | 8 | 42 | – | 42 | 26,517 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 1,195,604 | 203,463 | 1,399,067 | 1,341,647 | |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| Expenditure | |||||
| Expenditure on charitable activities | 9,10 | 1,141,058 | 203,463 | 1,344,520 | 1,237,342 |
| Other expenditure | 12 | – | – | – | 1,289 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 1,141,058 | 203,463 | 1,344,520 | 1,238,631 | |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Net income and net movement in | funds | 54,546 | – | 54,547 | 103,016 |
| ========================================= | ================================ | ========================================= | ========================================= | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 848,595 | – | 848,595 | 745,580 | |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 903,141 | – | 903,141 | 848,595 | |
| ========================================= | ================================ | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 14 to 23 form part of these financial statements.
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The New Girls School
Company Limited by Guarantee
Statement of Financial Position
31 July 2020
| 2020 | 2019 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 17 | 1,066,420 | 1,014,380 |
| Current assets | |||
| Debtors | 18 | 7,665 | 9,924 |
| Cash at bank and in hand | 154,120 | 104,342 | |
| -------------------------------- | -------------------------------- | ||
| 161,785 | 114,266 | ||
| Creditors: amounts falling due within one year | 19 | 82,728 | 73,956 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 79,057 | 40,310 | |
| ----------------------------------------- | ----------------------------------------- | ||
| Total assets less current liabilities | 1,145,477 | 1,054,690 | |
| Creditors: amounts falling due after more than one year | 20 | 242,335 | 206,094 |
| ----------------------------------------- | ----------------------------------------- | ||
| Net assets | 903,142 | 848,596 | |
| ========================================= | ========================================= | ||
| Funds of the charity | |||
| Unrestricted funds | 903,141 | 848,595 | |
| -------------------------------- | -------------------------------- | ||
| Total charity funds | 22 | 903,141 | 848,595 |
| ================================ | ================================ |
These financial statements were approved by the board of trustees and authorised for issue on 21 June 2021, and are signed on behalf of the board by:
Mr M M De Vries Trustee
The notes on pages 14 to 23 form part of these financial statements.
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The New Girls School
Company Limited by Guarantee
Statement of Cash Flows
Year ended 31 July 2020
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 54,547 | 103,016 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 35,762 | 27,215 |
| Dividends, interest and rents from investments | – | (26,504) |
| Other interest receivable and similar income | (42) | (13) |
| Interest payable and similar charges | 10,212 | 18,036 |
| Loss on disposal of tangible fixed assets | – | 1,289 |
| Accrued expenses | 8,400 | 7,620 |
| Changes in: | ||
| Trade and other debtors | 2,259 | 7,801 |
| Trade and other creditors | (901) | (18,506) |
| -------------------------------- | -------------------------------- | |
| Cash generated from operations | 110,237 | 119,954 |
| Interest paid | (10,212) | (18,036) |
| Interest received | 42 | 13 |
| -------------------------------- | -------------------------------- | |
| Net cash from operating activities | 100,067 | 101,931 |
| ================================ | ================================ | |
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | – | 26,504 |
| Purchase of tangible assets | (87,802) | (133,567) |
| Proceeds from sale of tangible assets | – | 1,289 |
| -------------------------------- | -------------------------------- | |
| Net cash used in investing activities | (87,802) | (105,774) |
| ================================ | ================================ | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 37,513 | (11,213) |
| Payments of finance lease liabilities | – | (35,411) |
| -------------------------------- | -------------------------------- | |
| Net cash from/(used in) financing activities | 37,513 | (46,624) |
| ================================ | ================================ | |
| Net increase/(decrease) in cash and cash equivalents | 49,778 | (50,467) |
| Cash and cash equivalents at beginning of year | 104,342 | 154,809 |
| -------------------------------- | -------------------------------- | |
| Cash and cash equivalents at end of year | 154,120 | 104,342 |
| ================================ | ================================ |
The notes on pages 14 to 23 form part of these financial statements.
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The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 July 2020
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 2nd Floor Parkgates, Bury New Road, Manchester, M25 0TL.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported besides the fair value of the land and buildings.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
3. Accounting policies (continued)
Tangible assets (continued)
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
There is no depreciation charged on land and buildings owing to it being kept to a high standard.
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
| Fixtures and fittings | - | 15% straight line |
|---|---|---|
| Portacabins | - | 15% straight line |
| . |
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
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The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
3. Accounting policies (continued)
Financial instruments (continued)
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Limited by guarantee
The New Girls School is a registered charity and a company limited by guarantee and does not have a share capital. In the event of the charity being wound up, members are required to contribute an amount not exceeding £10.
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The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
5. Donations and legacies
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Donations | ||||
| Donations | 84,053 | – | 84,053 | |
| Voluntary contributions receivable | 984,405 | – | 984,405 | |
| Grants | ||||
| Grant’s receivable - C S T security grants | – | 39,215 | 39,215 | |
| Grant’s receivable - J R S grants | 92,329 | – | 92,329 | |
| Grant’s receivable | 5,000 | – | 5,000 | |
| ----------------------------------------- | ---------------------------- | ----------------------------------------- | ||
| 1,165,787 | 39,215 | 1,205,002 | ||
| ========================================= | ============================ | ========================================= | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2019 | ||
| £ | £ | £ | ||
| Donations | ||||
| Donations | 168,241 | – | 168,241 | |
| Voluntary contributions receivable | 930,939 | – | 930,939 | |
| Grants | ||||
| Grant’s receivable - C S T security grants | – | 56,153 | 56,153 | |
| Grant’s receivable - J R S grants | – | – | – | |
| Grant’s receivable | – | – | – | |
| ----------------------------------------- | ---------------------------- | ----------------------------------------- | ||
| 1,099,180 | 56,153 | 1,155,333 | ||
| ========================================= | ============================ | ========================================= | ||
| Charitable activities | ||||
| Restricted | Total Funds | Restricted | Total Funds | |
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Payments from governments or public | ||||
| authorities in the normal course of | ||||
| trading | 164,248 | 164,248 | 159,797 | 159,797 |
| ================================ | ================================ | ================================ | ================================ | |
| Other trading activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Other income | 29,775 | 29,775 | – | – |
| ============================ | ============================ | ============== | ============== |
6. Charitable activities
7. Other trading activities
- 18 -
The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
8. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Refunds | – | – | 26,504 | 26,504 |
| Bank interest receivable | 42 | 42 | 13 | 13 |
| -------------- | -------------- | ---------------------------- | ---------------------------- | |
| 42 | 42 | 26,517 | 26,517 | |
| ============== | ============== | ============================ | ============================ |
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |||
|---|---|---|---|---|---|
| Funds | Funds | 2020 | |||
| £ | £ | £ | |||
| Educational expenditure | 1,073,893 | 203,463 | 1,277,355 | ||
| Support costs | 67,165 | – | 67,165 | ||
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | |||
| 1,141,058 | 203,463 | 1,344,520 | |||
| ========================================= | ================================ | ========================================= | |||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2019 | |||
| £ | £ | £ | |||
| Educational expenditure | 926,263 | 215,950 | 1,142,213 | ||
| Support costs | 95,130 | – | 95,129 | ||
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | |||
| 1,021,393 | 215,950 | 1,237,342 | |||
| ========================================= | ================================ | ========================================= | |||
| Expenditure on charitable activities by activity | type | ||||
| Activities | |||||
| undertaken | Support | Total funds | Total fund | ||
| directly | costs | 2020 | 2019 | ||
| £ | £ | £ | £ | ||
| Educational expenditure | 1,277,355 | 56,727 | 1,334,082 | 1,227,347 | |
| Governance costs | – | 10,438 | 10,438 | 9,995 | |
| ----------------------------------------- | ---------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| 1,277,355 | 67,165 | 1,344,520 | 1,237,342 | ||
| ========================================= | ============================ | ========================================= | ========================================= |
10. Expenditure on charitable activities by activity type
11. Analysis of support costs
| Analysis of | |||
|---|---|---|---|
| support costs | Total 2020 | Total 2019 | |
| £ | £ | £ | |
| Staff costs | 46,448 | 46,448 | 67,029 |
| General office | 10,279 | 10,279 | 18,105 |
| Governance costs | 10,438 | 10,438 | 9,995 |
| ---------------------------- | ---------------------------- | ---------------------------- | |
| 67,165 | 67,165 | 95,129 | |
| ============================ | ============================ | ============================ |
- 19 -
The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
12. Other expenditure
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | ||
| £ | £ | £ | £ | ||
| Loss on disposal of tangible fixed | |||||
| assets held for charity's own use | – | – | 1,289 | 1,289 | |
| ============== | ============== | ======================= | ======================= | ||
| 13. | Net income | ||||
| Net income is stated after charging/(crediting): | |||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 35,762 | 27,215 | |||
| Loss on disposal of tangible fixed assets | – | 1,289 | |||
| ============================ | ============================ | ||||
| 14. | Auditors’ remuneration | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Fees payable to Haffner Hoff Limited | |||||
| Fees payable for the audit of the financial statements | 6,000 | 6,000 | |||
| ======================= | ======================= | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Fees payable to | |||||
| Fees payable to the charity's auditor and | its associates for other services: | ||||
| Other non-audit services | 2,400 | 2,400 | |||
| ======================= | ======================= |
15. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 878,655 | 796,201 |
| Social security costs | 13,690 | 10,591 |
| Employer contributions to pension plans | 4,564 | 2,980 |
| -------------------------------- | -------------------------------- | |
| 896,909 | 809,772 | |
| ================================ | ================================ |
The average head count of employees during the year was 118 (2019: 117). The average number of full-time equivalent employees during the year is analysed as follows:
| 2020 | 2019 | |
|---|---|---|
| No. | No. | |
| Number of teaching staff | 113 | 112 |
| Number of administrative staff | 5 | 5 |
| -------------- | -------------- | |
| 118 | 117 | |
| ============== | ============== |
- 20 -
The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
15. Staff costs (continued)
No employee received employee benefits of more than £60,000 during the year (2019: Nil).
16. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received or expenses reimbursed by the trustees.
17. Tangible fixed assets
| Freehold | Fixtures and | |||
|---|---|---|---|---|
| property | fittings | Equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 August 2019 | 860,163 | 45,922 | 164,879 | 1,070,964 |
| Additions | 3,600 | 67,639 | 16,563 | 87,802 |
| -------------------------------- | -------------------------------- | -------------------------------- | ----------------------------------------- | |
| At 31 July 2020 | 863,763 | 113,561 | 181,442 | 1,158,766 |
| ================================ | ================================ | ================================ | ========================================= | |
| Depreciation | ||||
| At 1 August 2019 | – | 31,852 | 24,732 | 56,584 |
| Charge for the year | – | 12,256 | 23,506 | 35,762 |
| -------------------------------- | -------------------------------- | -------------------------------- | ----------------------------------------- | |
| At 31 July 2020 | – | 44,108 | 48,238 | 92,346 |
| ================================ | ================================ | ================================ | ========================================= | |
| Carrying amount | ||||
| At 31 July 2020 | 863,763 | 69,453 | 133,204 | 1,066,420 |
| ================================ | ================================ | ================================ | ========================================= | |
| At 31 July 2019 | 860,163 | 14,070 | 140,147 | 1,014,380 |
| ================================ | ================================ | ================================ | ========================================= |
The freehold property was given a desktop valuation based on open market value for 31 July 2020 by Mr Avi Neumann on 26 May 2021 .
18. Debtors
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Other debtors | 7,665 | 9,924 |
| ======================= | ======================= | |
| Creditors: amounts falling due within one year | ||
| 2020 | 2019 | |
| £ | £ | |
| Bank loans and overdrafts | 12,487 | 11,214 |
| Trade creditors | 14,263 | 12,952 |
| Accruals and deferred income | 16,800 | 8,400 |
| Social security and other taxes | 8,662 | 9,403 |
| Loans | 18,088 | 20,088 |
| Other creditors | 12,428 | 11,899 |
| ---------------------------- | ---------------------------- | |
| 82,728 | 73,956 | |
| ============================ | ============================ |
19. Creditors: amounts falling due within one year
- 21 -
The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
20. Creditors: amounts falling due after more than one year
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | 242,335 | 206,094 |
| ================================ | ================================ |
21. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,564 (2019: £2,980).
22. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||
|---|---|---|---|---|
| At 01 | At 31 | |||
| Aug 2019 | Income | Expenditure | Jul 2020 | |
| £ | £ | £ | £ | |
| General funds | 848,595 | 1,195,604 | (1,141,058) | 903,141 |
| ================================ | ========================================= | ========================================= | ================================ | |
| At 01 | At 31 | |||
| Aug 2018 | Income | Expenditure | Jul 2019 | |
| £ | £ | £ | £ | |
| General funds | 745,580 | 1,125,697 | (1,022,682) | 848,595 |
| ================================ | ========================================= | ========================================= | ================================ | |
| Restricted funds | ||||
| At 01 | At 31 | |||
| Aug 2019 | Income | Expenditure | Jul 2020 | |
| £ | £ | £ | £ | |
| Restricted fund - grants receivable | – | 203,463 | (203,463) | – |
| ============== | ================================ | ================================ | ============== | |
| At 01 | At 31 | |||
| Aug 2018 | Income | Expenditure | Jul 2019 | |
| £ | £ | £ | £ | |
| Restricted fund - grants receivable | – | 215,950 | (215,950) | – |
| ============== | ================================ | ================================ | ============== |
- 22 -
The New Girls School
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 July 2020
23. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2020 | |
| £ | £ | |
| Tangible fixed assets | 1,066,420 | 1,066,420 |
| Current assets | 161,785 | 161,785 |
| Creditors less than 1 year | (82,728) | (82,728) |
| Creditors greater than 1 year | (242,335) | (242,335) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 903,142 | 903,142 |
| ========================================= | ========================================= | |
| Unrestricted | Total Funds | |
| Funds | 2019 | |
| £ | £ | |
| Tangible fixed assets | 1,014,380 | 1,014,380 |
| Current assets | 114,266 | 114,266 |
| Creditors less than 1 year | (73,956) | (73,956) |
| Creditors greater than 1 year | (206,094) | (206,094) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 848,596 | 848,596 |
| ========================================= | ========================================= |
24. Analysis of changes in net debt
| At | At | ||
|---|---|---|---|
| 1 Aug 2019 | Cash flows | 31 Jul 2020 | |
| £ | £ | £ | |
| Cash at bank and in hand | 104,342 | 49,778 | 154,120 |
| Debt due within one year | (11,214) | (1,273) | (12,487) |
| Debt due after one year | (206,094) | (36,241) | (242,335) |
| -------------------------------- | ---------------------------- | -------------------------------- | |
| (112,966) | 12,264 | (100,702) | |
| ================================ | ============================ | ================================ |
25. Related parties
Mrs Devries, wife of Mr M Devries, trustee of The New Girls School, is a paid employee of the school for her role as head teacher of the primary school.
Mrs Devries received £10,747 during the year.
26. Taxation
The New Girls School is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
- 23 -