**THE ROYAL PINNER SCHOOL FOUNDATION (a company limited by guarantee)**
## **REPORT AND FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **THE ROYAL PINNER SCHOOL FOUNDATION**
I N D E X
## **Year ended 31 March 2022**
||**Page**|
|---|---|
|General information|2|
|Trustees’ annual report|3|
|Auditors’ report|12|
|Statement of financial activities|15|
|Balance sheet|16|
|Statement of cash flows|17|
|Notes to the financial statements|18|
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## **THE ROYAL PINNER SCHOOL FOUNDATION**
## G E N E R A L I N F O R M A T I O N
## **Year ended 31 March 2022**
|**Patron**|Her Majesty The Queen (1926 – 2022)||
|---|---|---|
|**Trustees**|Duncan Cashmore|Chairman|
||Gillian Brookes BA|Deputy Chairman|
||James Dye BA ATT|Finance Committee Chairman|
||Stephen Wilson MA|Grants Committee Chairman|
||Andrew Crawford (appointed 2 November 2022)||
||Guy Lewis BA||
||Elizabeth Pool BSc ACA (appointed 9 February 2022)||
||Jane Pool||
||James Ridgway BSc ACA||
|**Company Secretary**|David Crawford||
|**Assistant Secretary**|Jane Crawford||
|**Grants Manager**|Gill Wright||
|**Operational address**|The Royal Pinner Educational Trust||
||PO Box 7031||
||Basingstoke||
||RG24 4NU||
||Email: admin@royalpinner.co.uk||
||Telephone: 01256 578054||
||Website: www.royalpinner.org.uk||
|**Registered charity number**|1128414||
|**Company number**|06805043||
|**Bankers**|Barclays Bank plc||
||Leicester||
||LE87 2BB||
|**Investment Managers**|Cazenove Capital Management Ltd||
||1 London Wall Place||
||London||
||EC2Y 5AU||
|**Solicitors**|Devonshires||
||30 Finsbury Circus||
||London||
||EC2M 7DT||
|**Auditors**|Dixon Wilson Audit Services LLP||
||22 Chancery Lane||
||London||
||WC2A 1LS||
|**Registered Office**|22 Chancery Lane||
||London||
||WC2A 1LS||
2
## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T
## **Year ended 31 March 2022**
The Trustees present their report and accounts for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out therein and comply with the charity’s trust deed, the Charities Act 2011 and the Statement of Recommended Practice Accounting and Reporting by Charities (FRS 102). The Royal Pinner School Foundation is a company limited by guarantee and is exempt from using the word limited under section 60 of the Companies Act 2006 and is also now known as The Royal Pinner Educational Trust.
## **Our Patron – Her Majesty Queen Elizabeth II**
21 April 1926 – 8 September 2022
We are deeply saddened to record the death of Her Majesty Queen Elizabeth II, who became Patron of The Royal Commercial Travellers’ Schools in 1952. After the Schools closed in 1967, The Royal Pinner School Foundation was established in its new role as an Educational Trust, and we were honoured that Her Majesty again agreed to be Patron.
Since the Schools were founded in 1845, we have been privileged and honoured to enjoy the benefit of continuous Royal Patronage. The beneficiaries and families of our Trust have been inspired by Her Majesty’s faith, sense of duty and kindness throughout her reign, and particularly enjoyed participating in The Patron’s Lunch on The Mall in 2016.
Our thoughts and prayers are with the Royal Family, to whom we offer our heartfelt condolences at this sad time.
Guidance for organisations enjoying Royal Patronage – following the Accession of His Majesty King Charles III, the Royal Household will be conducting a review of the organisations of which The Late Queen was a Patron, together with those to which The King and The Queen Consort were connected as Prince of Wales and Duchess of Cornwall.
The Royal Household will be in touch with the charities individually in due time. Until then, pre-Accession references to indicate Patronage can remain in place. We currently await further contact from the Royal Household.
## **Overall comment on the year ending 31 March 2022**
The experience of various Lockdowns and Covid-19 restrictions has had an adverse effect on many families throughout the UK and, for our Foundation, the impact on the educational system is of particular concern. The educational disruption to our children has been predicted to have serious mental health consequences for this generation. Our beneficiaries and their families have already encountered hardship or adversity – death or long-term illness of a parent, redundancy, fall in earnings, abuse, mental health problems or special educational needs and disabilities (SEND) – and it has been disturbing to hear about the additional tensions within many families caused by the Lockdowns and associated restrictions.
During the year we have continued to provide laptops, printers and relevant IT equipment to those in need of help to overcome instances of digital poverty, and we aim to provide the appropriate level of support, both financial and pastoral, to our current and future beneficiaries during their time of need.
3
## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
## **Constitution**
The Charity is constituted as a company limited by guarantee, incorporated on 29 January 2009 and is governed by its memorandum and articles of association.
The Charity’s objects are the promotion of the education of the children of commercial travellers, with a preference for children who have not attained the age of twenty-five years, and primarily of the destitute orphans of deceased and the children of necessitous commercial travellers (“beneficiaries”) in one or more of the following ways:
- i) in awarding the beneficiaries exhibitions, bursaries, maintenance allowances or grants tenable at any school, university, college of education or other place of learning approved by the Board of Trustees;
- ii) in providing financial assistance, outfits, clothing, tools, instruments or books to help beneficiaries on leaving school, university or other educational establishment to prepare for, or to assist their entry into, a profession, trade or calling;
- iii) in awarding scholarships, or maintenance allowances to assist beneficiaries to travel, whether in this country or abroad, in order to further their education;
- iv) in providing financial assistance to enable beneficiaries to study music or other arts; and
- v) in otherwise promoting the education (including social and physical training) of beneficiaries.
## **Structure, Governance and Management**
**The Board of Trustees** consists of up to a maximum of fifteen members, who have been elected for a period of four years and are eligible for re-election for two further periods of four years. After that they may only be reelected after an absence of one year, unless all the other Trustees unanimously agree otherwise.
The Board normally meets three times a year as well as at the Annual Meeting. The main work of the Foundation is conducted by two committees. The Grants Committee, which is chaired by Stephen Wilson, usually meets around five times a year and is responsible for the assessment of all new applications and the annual review of awards when the amount of each grant for the following year is agreed. The Finance Committee, which is chaired by James Dye, meets as necessary during the year and is responsible for setting expenditure guidelines, managing the relationship with the auditors and investment managers and making recommendations to the Board on such matters as risk management and the appointment of auditors and investment managers.
New Trustees are identified for the contribution they can make to the Foundation’s affairs - in particular, we need a range of skills and experience including knowledge and experience of commercial travelling, education, special educational needs, finance and governance for registered charities.
Each Trustee is interviewed before recommendation for election to the Board. All new Trustees participate in an induction programme in order that they may understand both how the Foundation works and also the commitment required of them.
All Trustees are regularly informed of developments in and publications on best practice and regulations for charities.
**New Trustees** - we are very pleased to record that **Elizabeth (Libby) Pool** , who is an accountant and a former beneficiary, was elected as a Trustee on 9[th] February 2022. Libby’s knowledge and experience will be of particular benefit to the Finance Committee. We are also pleased to record that **Andrew Crawford** was elected as a Trustee on 2nd November 2022. Andrew has guided our Foundation for many years whenever legal advice has been required while he was a partner at our legal advisors. Following his retirement we have welcomed his agreement to become a Trustee. We trust that both Libby and Andrew will enjoy their new involvement in the Foundation.
**Governance –** the Trustees are in no doubt that good governance is fundamental to the success of the Foundation and they maintain an ethos of continuous improvement. Following the publication in 2017 of the Charity Commission New Good Governance Code, the Board has reviewed our procedures against the principles set out in the Code. Where applicable, amendments and improvements have been implemented in order to comply with the Code’s recommendations. The Board will continue to follow these principles and recommended good practice.
4
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **THE ROYAL PINNER SCHOOL FOUNDATION**
## **Year ended 31 March 2022**
## **Public Benefit**
Our constitution and objects, as detailed on page 4, records that our Foundation has been established in order to assist with the education of the children of commercial travellers where there is a measure of need. The aim of the Foundation is the promotion of education for a beneficiary class, and people in poverty are specifically included within our eligibility criteria. The Trustees, having regard to the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purpose and activities of the charity satisfy the requirements of the public benefit test set out in section 4 of the same Act, as demonstrated in the following paragraphs.
## **Activities, Achievements and Performance**
The Foundation is managed by the Secretary, supported by two assistants. They organise the day to day running of the Trust and spend much of their time in liaising with the grant applicants, beneficiaries and their families. Through a home visit, and/or a Zoom meeting, the accuracy of an application can be verified and the extent of the hardship experienced can be assessed. It is not unusual to find that applicants, in their written requests, have not felt able to reveal the full extent of their difficulties, while in other cases the hardship may not be as severe as implied in the application. Pastoral care is an integral part of the work of the Foundation, but it is through our grants that we help to alleviate the financial hardships encountered by our beneficiaries.
The Foundation’s ongoing aims and objects are described on page 4.
Potential beneficiaries find us through Schools, other Charities, the Educational Trusts’ Forum, the Internet, The Salespeople’s Charity and our Website. Our aim, as far as is possible within the limits of our resources, is to assist all applicants who meet our eligibility criteria, namely that a beneficiary must be the son or daughter of a commercial traveller where there is also an element of hardship in the family. The grants which have been agreed are listed under several headings in the table below. This financial help is supplemented by the pastoral support provided by the Secretary and his assistants, Jane Crawford and Gill Wright, through their home visits and liaison with our families and beneficiaries.
## **Grants Awarded**
In the twelve months to 31 March 2022 the total amount payable was £498,832 compared with £440,953 in the previous financial year.
The number of children helped and the grants awarded in each of the past four years is given below.
||2021-2022 160 £498,832
2020-2021 137
£440,953
2019-2020 153
£478,177
2018-2019150
£454,912|
|---|---|
During the year, 160 children from 86 families (last year 137 children from 77 families) were assisted by the Foundation. The table below shows the purposes for which the grants were made, the number who benefited and the respective expenditure. Some beneficiaries received grants in more than one category.
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## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
|**Purpose**|**Number of**
**Grants**|**Number of**
**Grants**|**Expenditure**|**Expenditure**|
|---|---|---|---|---|
||**2022**|**_2021_**|**£**
**2022**|**_£_**
**_2021_**|
|Assistance towards
Children at nursery, day and boarding schools
Students at universities and colleges, including
their final outfitting grants
Special educational needs and disabilities, drama,
dance, the arts, travel and special talent|98
61
26|_82_
_55_
_16_|340,960
82,900
74,972|_300,462_
_90,350_
_50,141_|
|**TOTAL**|**185**|**_153_**|**498,832**|**_440,953_**|
The £57,879 increase in expenditure on grants reflects not only the ending of the school fee discounts during the previous year when schools closed because of the coronavirus restrictions, but also the higher number of new applications received from the internet and our new website. Bearing in mind that several of our beneficiaries are now choosing not to study for a degree at university but instead to join an apprenticeship scheme, our expenditure on our student grants has reduced. As mentioned earlier, the educational disruption to our children has been predicted to have serious mental health consequences. We therefore continue to provide additional grants to help overcome instances of digital poverty, and our grants in support of special educational needs and disabilities (SEND) have also increased.
Overall, our expenditure on grants has now exceeded pre-Covid levels, and we aim to provide the appropriate level of support, both financial and pastoral, to our current and future beneficiaries during their time of need.
The Trustees have confirmed the Board’s policy that support for eligible applicants should not be withheld for purely budgetary reasons, merely to retain funds to be used for a similar purpose at a later date, in order that no eligible child in real need should be denied the assistance required. As detailed below under the headings Financial Review and Reserves Policy, we still have the ability to maintain our support for children and students in need. In addition, as all of our funds are unrestricted, the Trustees have the flexibility to use the funds at any time at their discretion. On seeing that digital poverty is a handicap for many families, and not just for students taking exams, we have provided additional grants for laptops and IT equipment, which has enabled those disadvantaged children and students to participate more in the various distance learning programmes. Our pastoral support has also been welcomed by parents and students alike during these challenging times.
**Range of grants awarded** - There is in reality a wide variation in the amount of the grants made as all awards are considered on an individual basis. Many of the grants relate to children who attend state schools, for whom agerelated grants may be awarded, starting at £600 per annum for children at primary school, £750 per annum at secondary school and £900 per annum when in the sixth form. Where appropriate, contributions are made towards independent school fees, for which grants have ranged from £326 per term to £4,267 per term. Our basic grant for students at university or college has been £600 per term during the 2021-2022 academic year, although higher amounts have been agreed for some students after reviewing their individual circumstances.
For most of our families Pinner is the only educational trust directly helping them, but especially in view of the cost of school fees, we have appreciated the co-operation and liaison with fellow members of the **Educational Trusts' Forum** ( **ETF** ). Through this informal association of educational trusts, arrangements can be made to share the cost of school fees between the parents, the trusts and the schools involved. Each trust will have been established for a specific purpose with its own eligibility criteria, but when there is common ground with another trust, or sometimes with several trusts, the combined contributions through the **ETF** can be very effective. We are unfortunately aware that some trusts have changed their criteria, which has meant that the potential number of trusts able to contribute in support of our children has reduced. Our liaison with schools and other trusts, however, still helps to resolve the difficulties faced by the families and children concerned.
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**THE ROYAL PINNER SCHOOL FOUNDATION** T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
In addition, we have also been pleased to receive several introductions through The Salespeople’s Charity, formerly known as The Commercial Travellers’ Benevolent Institution. We may have different age groups which we support, but we have a common background and have functioned side by side since we were each established many years ago. Our continued liaison can provide a comprehensive range of support for our beneficiaries.
As all of our grants are for educational purposes, we can be helping children from the beginning of their education until the completion of their full-time professional studies. Applications can be received at any stage of education and awards are usually agreed for one year at a time, as the family circumstances plus the student’s progress are carefully re-assessed each year, when subsequent grants can be increased, reduced or may no longer be required. Some families may only require support for a relatively short period of time, after redundancy or when a student is already at university. For other families, whose circumstances are unlikely to improve, including those with young children who have lost a mother or father, support could be required for many years.
When the Schools at Pinner were open nearly all the pupils had lost either their mother or father. Today the hardships which our children face can also include a parent’s redundancy or sudden drop in earnings, special educational needs and disabilities, mental health issues, domestic abuse, or a lost opportunity to develop a talent when there is a need for specialist tuition for ballet, music, sport or drama. Nevertheless, even today, a third of our beneficiaries have had to come to terms with the death or long-term illness of a parent.
**Future plans -** We aim to support our children and families, as detailed above, in a similar way for the foreseeable future.
**Achievements of our beneficiaries** - As we are non-selective in an academic sense, and several of our children have special educational needs and disabilities, there is a wide range of abilities among our beneficiaries. In spite of their health or family circumstances the achievements of many of our beneficiaries have been impressive.
We have seen a good spread of GCSE and A level results this year, including one girl who passed 10 GCSEs with top grades, while one girl and one boy achieved A*A*A grades in their A levels.
This year we have again been delighted to see several impressive degree results, including six graduates who achieved First Class Honours in Politics and International Relations, Economics, Philosophy, Journalism and Public Relations, Photography and Forensic Psychology.
It has also been pleasing to see that most of our graduates have found employment on the completion of their courses.
**Students** - We are aware that in many cases the amount of a government student loan does not even cover the cost of accommodation. In order to be eligible for an award our beneficiaries have already suffered some adversity and, being conscious that the high level of student debt is an extra burden, our student grants are considered on an individual basis.
This year we have supported students at universities and colleges throughout the UK including Cambridge, Glasgow Caledonian, Swansea, Liverpool, Warwick, Exeter, Manchester Metropolitan, Northumbria, Southampton, Aberdeen, Birmingham, Nottingham, Winchester and The Royal Veterinary College. The degrees have also covered a wide range of subjects including Architecture, Medicine, Accounting and Finance, Economics, Physiotherapy, Modern Languages, English with Creative Writing, Musical Theatre and Psychology and Cognitive Neuroscience.
## **Comment on grants and achievements**
We are delighted by what our beneficiaries have achieved and feel that our support has helped them to deal with their hardships and difficulties and to achieve their own individual potential.
7
## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
The financial support through our grants, combined with the pastoral care and liaison with schools and families, has helped to alleviate some of the hardships experienced by our beneficiaries and their families and has in many cases made a real difference to their lives. Nearly all of our students succeed in gaining employment on the completion of their courses and we believe that our financial and pastoral support has been effective and supportive in helping them.
## **Financial Review**
The Foundation’s investment fund is managed by Cazenove Capital Management Ltd and invested mainly in Cazenove’s own managed Common Investment Funds for Charities.
The investment fund is allocated to asset classes and Cazenove manage these investments, in order to achieve the optimum total return in keeping with the risk averse nature of the Foundation, within an agreed minimum and maximum range for each asset class.
A bespoke benchmark has been agreed with Cazenove. The actual performance of each asset class, after Cazenove’s management fees, is measured against the agreed mid-point of the range using an appropriate recognised index.
The net gain on our investment funds was £319,759 this year compared with a net gain of £667,688 in the previous year.
Investment income totalled £134,796 compared with £119,611 the previous year.
We made commitments for £498,832 of grants payable to our beneficiaries this year, which is £57,879 higher than the previous year, as detailed above under Grants Awarded.
The total resources expended in the financial year were in excess of incoming resources by £320,353 compared with £447,810 in the previous year.
The three-year grant of £600,000, payable by six instalments of £100,000, from The Leverhulme Trade Charities Trust which was agreed in March 2019, was extended for a further year in March 2022. Consequently, another £200,000 will be received during 2022.
We continue to be indebted to the Leverhulme Trustees for their generosity over many years, which has enabled us to maintain support for so many more children and their families than would otherwise have been the case.
Unrestricted funds decreased by £594 to £4,456,768 at the end of the year.
Although we have continued to spend more than our income received since 1991-1992, this followed many earlier years of income surpluses and cumulative capital gains. Nevertheless, as confirmed under Reserves policy below, we still have the ability to continue supporting those children who need us now as well as being able to meet expected needs in the future.
## **Reserves policy**
The Foundation’s policy on reserves is dictated by our decision to respond to all the eligible children who urgently need our help now as well as being able to meet the expected needs in the future. We have so far been able to help all those who apply to us and who merit and qualify for assistance. We may however need to change this reserves policy if it impacts on our long-term ability to maintain the real value of our investments. On the other hand, we are comforted by the fact that, although nothing has been set aside as a specific reserve for future commitments or expenditure, all of our funds are unrestricted and therefore the Trustees have the flexibility to use the funds at any time at their discretion.
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## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
## **Pay policy for senior staff**
The remuneration of the Foundation’s three staff is set by the Board of Trustees. Delivery of the Foundation’s charitable vision and purpose is primarily dependent upon our staff and their remuneration is set with the objective of ensuring that they are, in a fair and responsible manner, rewarded for their individual contributions to the Foundation’s success. The appropriateness and relevance of the remuneration policy is reviewed annually including reference to comparisons with other charities to ensure that the Foundation remains sensitive to the broader issues such as pay and employment conditions elsewhere.
## **Risk**
The Trustees continue to review the activities of the Foundation and to identify the major risks to which it is exposed, and procedures have been established to mitigate those risks. The three-year grant from The Leverhulme Trade Charities Trust (LTCT), which was agreed in 2019, has been extended for one year as part of a strategic review of the Trade Charities being undertaken by the Leverhulme Trustees. As we are conscious that one outcome of the strategic review could be that our grant from the LTCT may not be continued, we await their decision with interest. While our risk register is reviewed formally on an annual basis, our procedures and risks are monitored regularly throughout the year.
**Legacies** – There have not been any legacies received during the year.
## **Staff Retirement and Succession**
The Trustees have been very appreciative of the loyalty and hard work of David and Jane Crawford over many years but are also conscious that they need to retire at some stage in the foreseeable future. Our succession planning had to be put on hold when the Covid-19 restrictions were imposed. We are, however, pleased that Mrs Gill Wright has joined us as a member of staff, and that positive steps have been taken towards an effective handover, thereby maintaining our support for the children we assist both now and in the future.
## **Website**
Our website has been established under the name **“The Royal Pinner Educational Trust”** , which is now the working name of the Foundation. As our organisation is not a school, we consider that using the words **“Educational Trust”** in our title better reflects what we actually are. Some examples of our grants and pastoral support, plus the impact made, can be seen on the website - www.royalpinner.org.uk -
## **Connected Charities**
There are no connected charities.
## **Trustees**
The Trustees, who are directors for the purpose of company law, who served as trustees during the period and as at
9
## **THE ROYAL PINNER SCHOOL FOUNDATION**
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
## **Trustees’ Responsibilities**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare the financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditors**
So far as each Trustee is aware, there is no relevant audit information of which the company’s auditors are unaware. Each Trustee has taken all reasonable steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
## **Special Provisions**
This report is prepared in accordance with the provisions applicable to companies subject to the small companies regime in Part 15 of the Companies Act 2006.
## **Accounts**
The accounts set out on pages 15 to 23 have been drawn up in accordance with the relevant provisions of the Companies Act 2006, and 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).
## **Appreciation**
The Board of Trustees acknowledges with gratitude the efforts of all who have continued the work of the Foundation during the year and in particular the members of the Grants and Finance Committees and the office staff. We are very grateful to David Crawford, Jane Crawford and Gill Wright for their dedication, commitment and concern for the beneficiaries and for being part of the vital continuity of knowledge which is important to the Foundation. Their pastoral care (including home visits, when permitted, and Zoom meetings) has been much appreciated by the Trustees and the families concerned.
10
THE ROYAL PINNER SCHOOL FOUNDATION
TRUSTEES
Year ended 31 F1arch 2022
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21123
## **THE ROYAL PINNER SCHOOL FOUNDATION**
A U D I T O R S ’ R E P O R T
## **Year ended 31 March 2022**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ROYAL PINNER SCHOOL FOUNDATION**
## **Opinion**
We have audited the financial statements of The Royal Pinner School Foundation (the ‘charitable company’) for the year ended 31 March 2022 which comprise the statement of financial activities, balance sheet, statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the trustees’ 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.
12
## **THE ROYAL PINNER SCHOOL FOUNDATION**
A U D I T O R S ’ R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
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 information given in the trustees’ annual report, which includes the directors’ report prepared for purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ annual 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ annual 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
13
## **THE ROYAL PINNER SCHOOL FOUNDATION**
A U D I T O R S ’ R E P O R T ( c o n t i n u e d )
## **Year ended 31 March 2022**
## **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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charitable company by considering, amongst other things, the sector in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law, UK tax legislation, UK Charity Law.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of third parties.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our 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.
Steven Wakefield (Senior statutory auditor) For and on behalf of Dixon Wilson Audit Services LLP, Statutory Auditor 22 Chancery Lane
London WC2A 1LS
> 2023 31 January
14
## **THE ROYAL PINNER SCHOOL FOUNDATION**
S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S **(Incorporating an income and expenditure account)**
## **Year ended 31 March 2022**
||**Note**|**2022**|**2021**|
|---|---|---|---|
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**£**|**£**|
|**Income:**||||
|Donations and legacies|3|201,370|_27,258_|
|Investment income|4|134,796
|_119,611_
|
|**Total income**||336,166
|_146,869_
|
|**Expenditure:**||||
|Raising funds - Investment management costs||21,440|_20,435_|
|Expenditure on charitable activities|5|635,079
|_574,244_
|
|**Total expenditure**||656,519
|_594,679_
|
|Net gains on investments|9|319,759
|_667,688_
|
|Net (expenditure)/income||(594)
|_219,878_
|
|**Net movement in funds**||(594)|_219,878_|
|**Total funds brought forward**||4,457,362
|_4,237,484_
|
|**Total funds carried forward**||4,456,768
|_4,457,362_
|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
15
THE ROYAL PINNER SCHOOL FOUNDATION
CDmpany numbEr. 6805043
BALANCE SH EET
At 31 March 2022
2022
2021
Fixed assets
4394.070
4.380.287
Debrors
Cath 2£ bard( and In hand
10
102,535
136,197
238,732
{161.65TJ
77,Q75
4,457J62
49.920
249.¥20
CYè(fitor* amounts rIng due within one year
NetcuvYeYbtassÈts
11872221
61698
Net assets
4,456.768
The Fmd5 of tFE ChaTity
RtrralL4tv)n
General ld$
595.96B
3£6DfiCK)
547.453
3.909.909
Totsl chty lunck
13
4.456.76B
4,457J62
These accounrs const(Eute the 8nnLRt xcfwnts w*Ed lry the Cwre5 Att 21)J6 and ar* for tyrculation to th
members of the company.
STEPHEN WIISON
JAMES DYE
16
## **THE ROYAL PINNER SCHOOL FOUNDATION**
## S T A T E M E N T O F C A S H F L O W S
## **Year ended 31 March 2022**
|**Note**
Net cash used in operating activities
14
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments and short term deposits
Purchase of investments
Net 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|**2022**
**2021**
**£**
**£**
(527,049)
_(268,218)_
134,796
_119,611_
1,285,320
_1,185,503_
(979,344)
_(1,028,538)_
440,772
_276,576_
(86,277)
_8,358_
136,197
_127,839_
49,920
_136,197_
|
|---|---|
17
## **THE ROYAL PINNER SCHOOL FOUNDATION**
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
## **1. Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## (a) **Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Royal Pinner School Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £.
## (b)
## **Preparation of the accounts on a going concern basis and significant areas of uncertainty**
The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment returns and the performance of investment markets. Further details may be found in the financial review section of the Trustees’ annual report.
## (c) **Funds structure**
All funds are unrestricted and are available to spend on activities that further any of the purposes of the charity. The revaluation fund relates to movements in the market value of investments.
## (d)
## **Income recognition**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are recognised when the Trust has been notified in writing of both the amount and settlement date.
Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## (e)
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. Unconditional grant offers are accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant.
(continued)
18
## **THE ROYAL PINNER SCHOOL FOUNDATION**
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
## **1. Accounting policies** (continued)
## (f) **Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
## (g) **Allocation of support and governance costs**
Governance and support costs include those items of expenditure that relate exclusively to those categories, as well as an allocation of expenditure involving more than one category, based on an assessment of time and effort devoted by staff to the different activities. In accordance with this approach, overhead costs attributable to more than one category are allocated 85% to support costs and 15% to governance costs.
## (h) **Costs of raising funds**
The costs of generating funds consist of investment management costs.
## (i) **Charitable activities**
Costs of charitable activities include grants made, governance costs and support costs.
## (j) **Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire complex financial instruments.
## (k) **Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Realised gains and losses are taken to the unrestricted fund. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Unrealised gains and losses are taken to the revaluation fund. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## (l) **Operating leases**
Rentals applicable to operating leases are charged to the Statement of Financial Activities in equal amounts over the periods of the leases.
## **2. Legal status**
The Trust is a company limited by guarantee, incorporated in England and Wales, and has no share capital. The Trust’s registered address is 22 Chancery Lane, London, WC2A 1LS.
19
## **THE ROYAL PINNER SCHOOL FOUNDATION**
## N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
|**3.**
**Donations and legacies**
Subscriptions and donations
Legacies
Grants received|**2022**
**£**
1,370
-
200,000
201,370
|**2021**
**£**
_1,875_
_25,383_
_-_
|
|---|---|---|
|||_27,258_|
||||
|**4.**
**Investment income**
Income from listed investments
Interest on cash deposits|**2022**
**£**
134,795
1
134,796
|**2021**
**£**
_119,608_
_3_
|
|||_119,611_
|
||||
|**5.**
**Analysis of expenditure on charitable activities**
Grants payable
Support costs (note 6)
Governance costs (note 6)|**2022**
**£**
498,832
108,939
27,308
635,079
|**2021**
**£**
_440,953_
_106,740_
_26,551_
|
|||_574,244_
|
An analysis of grants payable is given in the Trustees’ Annual Report. All expenditure on charitable activities is related to the provision of educational assistance.
## **6. Analysis of governance and support costs**
|**Governance**
**General**
**function**
**support**
**£**
**£**
Staff costs
16,785
95,114
General expenses
1,996
11,305
Printing, stationery and postage
545
3,089
Rent, rates and insurance
(100)
(569)
Repairs
-
-
Legal fees
938
-
Trustees’ expenses
470
-
Auditors’ remuneration
6,674
-
27,308
108,939
|**2022**
**Total**
**£**
111,899
13,301
3,634
(669)
-
938
470
6,674
136,247
|**2021**
**Basis of**
**Total**
**apportionment**
**£**
_106,730_
staff time
_8,732_
staff time
_2,782_
staff time
_7,202_
staff time
_131_
staff time
_1,064_
Governance
_110_
Governance
_6,540_
Governance
_133,291_
|
|---|---|---|
Support costs are allocated between general support costs and Governance costs on the basis disclosed above.
20
## **THE ROYAL PINNER SCHOOL FOUNDATION**
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
|**7.**
**Net income/(expenditure) for the year**
This is stated after charging:
Operating leases – land and buildings
Auditors’ remuneration (excluding VAT)|**2022**
**£**
-
5,562
5,562
|**2021**
**£**
_3,563_
_5,450_
_9,013_
|
|---|---|---|
|**8.**
**Analysis of staff costs, trustee remuneration**
**and expenses and the cost of key management personnel**
Salaries and wages
Employer’s national insurance
Pension contributions|**2022**
**£**
94,069
8,172
9,658
111,899
|**2021**
**£**
_91,266_
_6,964_
_8,500_
_106,730_
|
The average number of employees for the year ended 31 March 2022 was 3 (2021 - 3). All employees were involved in managing the educational grant programme.
No employee had employee benefits greater than £60,000 (2021 - none).
The Foundation contributes 10% of eligible employees' salaries to personal pension schemes.
The Foundation considers its key management personnel comprise the trustees, the secretary, assistant secretary and grants manager. The total employment benefits including employer pension contributions of the key management personnel were £106,233 (2021 - £99,766).
The Trustees receive no remuneration for their services (2021 - nil). Directly incurred expenses are reimbursed if claimed. In the year to 31 March 2022 trustees’ expenses totalled £470 (2021 - £110). Four Trustees (2021 - one) received reimbursement for expenses incurred in travelling to board meetings.
|**9.**
**Fixed asset investments**
**Market value**
At 1 April 2021
Additions at cost
Disposals proceeds
Net gain on investments
Movement in short term deposits in year
At 31 March 2022
The portfolio is structured as follows:
UK equities
Overseas equities
UK bond funds
Global Bonds
Multi asset funds
Property funds|**2022**
**2021**
**£**
**£**
4,380,287
_3,869,564_
979,344
_1,028,538_
(1,284,661)
_(1,174,853)_
319,759
_667,688_
(659)
_(10,650)_
4,394,070
_4,380,287_
634,115
_929,937_
2,250,633
_2,032,551_
382,161
_489,743_
64,724
_-_
275,889
_372,512_
528,302
_447,298_|
|---|---|
(continued)
21
## **THE ROYAL PINNER SCHOOL FOUNDATION**
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
|**9.**
**Fixed asset investments (continued)**
Commodities
Other funds
Short term deposits|**2022**
**£**
97,660
159,667
919
4,394,070
|**2021**
**£**
_-_
_106,668_
_1,578_
|
|---|---|---|
|||_4,380,287_
|
The historic cost of investments excluding cash deposits is £3,705,767 (2021 - £3,861,673).
All investments are held in the name of Schroder & Co Limited.
All investments are carried at fair value, based on quoted market bid prices.
The main risk to the Foundation from financial instruments lies in the uncertainty of investment markets and volatility in yield. The Trust relies on dividend yields in part to finance its work. Liquidity risk is considered to be low as all assets are traded in markets with good liquidity. The Trust manages these investment risks by retaining expert advisors and aims for a high degree of diversification within investment classes.
|**10.**
**Debtors**
Grant receivable
Other debtors|**2022**
**£**
200,000
-
200,000
|**2021**
**£**
_100,000_
_2,535_
|
|---|---|---|
|||_102,535_
|
||||
|**11.**
**Creditors**
Grants payable
Other creditors
Accrued expenses|**2022**
**£**
160,716
-
26,506
187,222
|**2021**
**£**
_140,700_
_1,064_
_19,893_
_161,657_
|
## **12. Taxation**
As a charity, The Royal Pinner School Foundation is exempt from tax on income and gains to the extent these are applied to its charitable objects.
22
## **THE ROYAL PINNER SCHOOL FOUNDATION**
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
## **Year ended 31 March 2022**
|**13.**
**Funds**
Balance at 1 April 2021
Net expenditure resources for the year
Realised gains on investment assets
Unrealised gains on investment assets
Fund movement on realised gains and losses
Balance at 31 March 2022|**General**
**Revaluation**
**fund**
**fund**
**£**
**£**
3,909,909
547,453
(320,353)
-
149,410
-
-
170,349
121,834
(121,834)
3,860,800
595,968
|**Total**
**£**
4,457,362
(320,353)
149,410
170,349
-
4,456,768
|
|---|---|---|
## **14. Reconciliation of net income/(expenditure) to net cash flow from operating activities**
|Net (expenditure)/income for the reporting period
Adjustments for:
Gains on investments
Dividends and interest from investments
(Increase)/decrease in debtors
Increase in creditors
Net cash used in operating activities|**2022**
**£**
(594)
(319,759)
(134,796)
(97,465)
25,565
(527,049)|**2021**
**£**
_219,878_
_(667,688)_
_(119,611)_
_297,465_
_1,738_
_(268,218)_
|
|---|---|---|
## **15. Financial assets and financial liabilities**
The following are financial assets that qualify as basic financial instruments and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price:
|**Financial assets**
Investments|**2022**
**£**
4,394,070
4,394,070
|**2021**
**£**
_4,380,287_
_4,380,287_
|
|---|---|---|
23