REGISTERED COMPANY NUMBER: 06636240 (England and Wales) REGISTERED CHARITY NUMBER: 1130196
Report of the Trustees and
## Financial Statements
for the Year Ended 31st August 2020
## for
The Ursuline Preparatory School Ilford
Cooper Paul Statutory Auditors Abacus House 14-18 Forest Road Loughton Essex 1G10 1DX
## The Ursuline Preparatery School Ilford
## Contents of the Financial Statements for the Year Ended 31st August 2020
|||Page||
|---|---|---|---|
|Report ofthe trustees|1|to|7|
|Report ofthe independent auditors|8|to|10|
|Statement offinancial activities||11||
|Statementoffinancial position||12||
|Statement ofcash flows||13||
|Notes to the statement ofcash flows||14||
|Notestothefinancialstatements|15|to|25|
## The Ursuline Preparatory School Iford
## Report of the Trustees for the Year Ended 31st August 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
The objects and public benefit aims of the School
The objects as set out in the Memorandum of Association is to acquire, provide, conduct and develop an independent Roman Catholic School for the education of Roman Catholic children, either with or without other Christian or non-Christian children. The Ursuline Preparatory School Ilford Ltd operates as a Roman Catholic Independent day school for boys and girls aged three to eleven
In furtherance ofthis objective, the Trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's published guidance concerning the operation of the Public Benefit requirement under the Act.
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## The Ursuline Preparatory School Iiford
## Report of the Trustees for the Year Ended 31st August 2020
## Achievement and performance
Review of the year In the year 2019-20 the school continued to provide:
- = A high quality education for 140 pupils at no cost to the state, including children of all abilities.
- = An academic environment for boys and girls, with a strong Catholic ethos which is not generally available in the maintained sector.
- e Last year our leavers gained places at a number of top grammar and independent schools including:
Secondary Transfer - Year 6 2019 - 2020 Essex 11+ Pupils in Year 6 were very successful this year in a variety of 11+ examinations.
Woodford County High for Girls Ilford County High for Boys Kent Girls Southend Boys Southend Girls Shoeburyness Boys Westcliff Boys Westcliff Girls Colchester Boys Colchester Girls KEGS Chelmsford County High School for Girls
|Independent School Examination results|Independent School Examination results|
|---|---|
|3 satForest|2 places|
|1 satBrentwood|1 place|
|1 satPark|1 place|
|Royal Hospital|1 place withscholarship|
|NewHall|1 place|
|Felsted|1 place|
|Christ'sHospital|1 place|
|Haileybury|1place|
The most recent Independent Schools Inspectorate (IST) Compliance inspection, June 2017
"We were very pleased with the high level of compliance in all areas inspected. This represents a great deal of hard work and attention to detail by the whole of the staff team."
"The school is fully compliant against all eight sections of the Independent Schools Standards."
The most recent Independent Schools Inspectorate (ISI) Full inspection, March 2013, found that our pupils achieved well:
"Pupils’ achievements are good, both in their academic work and their extra-curricular pursuits. They make good progress through the school from the EYFS onwards, reaching standards that are well above average in relation to national age-related expectations. Throughout the school, pupils have good attitudes to learning. They are keen learners who are interested in the world around them.
“Pupils' personal development is excellent. They have a strong sense of spirituality and a secure knowledge of the difference between right and wrong. Relationships between pupils of all cultural traditions are harmonious, and pupils are genuinely interested in the faiths and backgrounds of others.
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The Ursuline Preparatory School Ilford
## Report of the Trustees for the Year Ended 31st August 2020
## Achievement and performance (cont’d)
Review of the year (cont’d)
“The school offers excellent pastoral care. Teachers know their pupils very well and make every effort to ensure that they are happy and settled at school. Good attention is given to welfare, health and safety, and the schoo} complies fully with regulatory requirements."
## Safeguarding
The school takes very seriously the duty of care to safeguard and promote the welfare of children and is committed to ensuring safeguarding practice reflects statutory responsibilities, government guidance and complies with best practice. Our safeguarding policy recognises that the welfare and interests of children are paramount in all circumstances. Every person has a duty and the right to report any concerns or suspicions in confidence without fear of harassment.
Additional Support for the community and pupils
¢ The school operates an after care facility free of charge, every school day from 3.20pm until 6.30pm providing a homework club and a wide variety of extra-curricular activities for our students, including - 11+
- Mulitskills - Bollywood dancing - Creative keyboard ~- Choir - Eco Club - Young Voices - Football Rec & KS1 - Premier Sports - Football KS2 - Premier Sports - Mindful Art - Drawing Club - Netball - Academy - Scholarship Club - History - STEM club - Streetdance - Scratch Club - Speech and Drama - Piano - Violin - Woodwind - Guitar - Ballet - Irish dancing
e Trips: Classes continue to have an average of one trip per term and striving towards one per half term. Some of the trips that have taken place this year include: - Year 6 PGL trip to Marchant's Hill, Bedford's Park - Mudchute Farm and Park - Capel Manor - London Zoo - National Maritime Museum - Tower of London - Junior Citizen's - Benjamin Franklin House
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## The Ursuline Preparatory School Ilford
## Report of the Trustees for the Year Ended 3ist August 2020
## Achievement and performance (cont’d)
Review of the year (cont'd)
- Tower of London (pre-visit for concert) - Bancroft's Science Fair
- Perform4all - Peter Pan drama workshop
- e The school continues its strong links with LBR road safety team, including junior travel ambassadors in Year 5 and Living Streets Walk to school.
- The Enterprise Week proceeds were donated to CAFOD, Children in Need, Teenage Cancer Trust and Great Ormond Street Hospital.
- « The Choir took part in a concert for Young Voices at the O2 arena. The choir also took part in the Water City Music Festival at the Tower ofLondon and the Ilford Catholic Schools Concert.
- e We offer community service opportunities for the sixth form students of the Ursuline Academy Ilford.
- s We offer placements to trainee teachers to enable them to gain the relevant classroom experience.
- Inviting staff from neighbouring schools to attend subject forums.
- e Employing newly qualified members of staff and providing mentoring and support.
Planned Buildings Improvement:
- ¢ Repair chimney stack and investigate cracks in the wall e Repointing basements
## Financial review
## Investment powers and policy
These are governed by the Memorandum and Articles of Association, which permit surplus funds to be invested in any investments, security or property as may be thought fit and as may be prescribed by law.
The School's investment objective is to maximise the return on its investment funds while maintaining maximum security and a high degree of liquidity. To meet this objective the School invests in call deposits with a high security rating and either fixed interest rates or with a fixed relationship to base rate.
## Reserves policy
The Trustees have established a general reserve policy to afford some protection to the School and its charitable programme and to provide time to adjust to changing financial circumstances.
## General Reserves
General Reserves are not restricted or designated for use on a particular programme or for some other defined or designated purpose. The School's policy is to seek to maintain a balance on General Reserves which represents sufficient resources for the current activities of the school to continue in the event of a significant drop in income, and to provide flexibility to undertake future capital projects.
## Going concern
It is important we point out the impact of the COVID pandemic on pupil numbers. Marketing has not been as robust as in prior years due to the impact of several nation-wide lockdowns. As such, note 17 indicates that a material uncertainty exists that may cast doubt on the school’s ability to continue as a going concern.
## Financial results
Net outgoing resources for the year were £123,843 which included a further provision of £12,687 in the year for the pension deficit (2019: net outgoing resources of £20,409) thus at the end of this year, the Company had net assets of £1,713,946 (2019: £1,837,789).
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## The Ursuline Preparatory School Ilford
## Report of the Trustees for the Year Ended 31st August 2020
## Future plans
Pupil numbers are expected to be within the range 120 - 130 pupils in the Prep School and a 10 - 20 place nursery setting. This co-educational pupil roll provides the truly sustainable financial base necessary to allow the school to develop its full potential as a first rate independent Catholic school for boys and girls aged 3 to 11 years with the resources and facilities to match.
We are in the final stage of outsourcing the Holiday Club provision.
We run Enterprise Week each year where pupils have insight into business life skills and financial management along with Life skill course with our local banks and Apple store.
The Ursuline education Community will ensure we continue to collaborate with the Ursuline ethos.
The Articles of Association has been amended to state that the Ursuline Order has withdrawn from running of the school and this responsibility has now passed to the Diocese,
Solicitors (Winckworth Sherwood) have successfully managed the land transfer (transferring Hume House, currently held by the prep school, into the name of the Diocese, and transferring St Angela's from the Diocese to Hume House)
## Financial objectives:
Over the next 5 years the Company will steer a course to enable the school: To provide a strong, bespoke Catholic education in accordance with the Ursuline ethos. To provide a high quality education in a safe, happy and suitable environment. To review and procure cost efficient supplies and contracts of a high quality. To increase pupil enrolment numbers and retention of pupils to Year 6 completion To reduce the cost spent on credit control of fees.
## Structure, governance and management
## Organisation
The School is a registered charity (registration number 1130196) and is constituted as a company registered in England and limited by guarantee (registration number 06636240) as defined by the Companies Act 2006. Its objects, powers and constitution are set out in its Memorandum and Articles of Association dated 2nd July 2008.
Formerly part of the Ursuline High School, the Prep School has been an independent school in its own right since 1999. It continues to have close and valued links with the Ursuline Academy with which it is collocated.
The Board comprises a minimum of 5 and a maximum of 9 Trustees. Trustees shal! predominantly be of the Roman Catholic faith.
Trustees, are elected via nomination by the Provincial and then election by the members at the AGM.
The Trustees meet as a Board once a year to determine the general policy of the schoo] and review its overall management and control, for which they are legally responsible. The day-to-day running of the school is delegated to a Board of Governors (appointed by the Trustees), the Head and the Bursar, supported by other teaching members of the Senior Management Team
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## The Ursuline Preparatory School Ilford
## Report of the Trustees for the Year Ended 31st August 2020
## Structure, governance and management (cont’d)
## Induction and training of new trustees
New Trustees are inducted into the workings of the school, and also of the Company as a registered charity, including Board Policy and Procedures. They are given The Charity Commission leaflets CC3 and CC3(a), Responsibility of Charity Trustees, a copy of the Memorandum and Articles of Association, the latest audited accounts and up to date management figures.
## Risk management
## The Trustees have an established procedure to review key risks on an ongoing basis.
Reference and administrative details Registered Company number 06636240 (England and Wales)
## Registered Charity number
1130196
Registered office
2-4 Coventry Road
Ilford Essex 1G1 4QR
## Trustees
Sister K Colmer Religious Order (resigned 30/9/2020) AP Dobson Retired Professor OfLaw (appointed 30/9/2020) (resigned 30/6/2020) AP Dobson Retired Professor Of Law (appointed 30/9/2020) (resigned 30/6/2020) Sister M Moloney _ Religious Sister (resigned 30/6/2020) P Nicholson Retired headteacher D Waller Clergy R Savage Retired teacher 8 A Bird Insurance underwriter (appointed 7/7/2020) M J Guidotti (appointed 6/10/2020)
## Company Secretary
A Ayankogbe
Auditors Cooper Paul Statutory Auditors Abacus House 14-18 Forest Road Loughton Essex 1G10 1DX
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## The Ursuline Preparatory School Ilford
## Report of the Trustees for the Year Ended 31st August 2020
## Reference and administrative details (cont'd)
Professional advisers and key personnel Headmistress V McNaughton Bursar A Ayankogbe (from September 2020); P Boateng (to August 2020) Bankers National Westminster Bank 50 Hford Hill Uford Essex IG] 2AT
## Statement of trustees’ responsibilities
The trustees (who are also the directors of The Ursuline Preparatory School Ilford for the purposes ofcompany law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## Auditors
The auditors, Cooper Paul, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order ofthe board of trustees on 24 May 2021 and signed on its behalf by:
P Nicholson - Trustee
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## Report of the Independent Auditors to the Members of The Ursuline Preparatory School Ilford
## Opinion
We have audited the financial statements ofThe Ursuline Preparatory School Ilford (the ‘charitable company’) for the year ended 31st August 2020 which comprise the Statement of financial activities, the Statement of financial position, the Statement of cash flows 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 (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 31st August 2020 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 Auditors' responsibilities for the audit ofthe 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 ofthe financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
- We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
We draw your attention to note 17 in the financial statements which indicates that the school has net excess expenditure of £123,843 during the year ended 31st August 2020. As stated in note 17 this event along with other matters set forth in note 20, indicate that a material uncertainty exists that may cast significant doubt on the school's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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## Report of the Independent Auditors to the Members of The Ursuline Preparatory School Ilford
## Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Report of the independent auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 ofthe 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 Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light ofthe 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 Report of the trustees.
We have nothing to report in respect of the following matters where 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 exemption from the requirement to prepare a Strategic report or in preparing the Report of the trustees.
## Responsibilities of trustees
As explained more fully in the Statement of trustees’ responsibilities, the trustees (who are also the directors ofthe charitable company for the purposes of company law) are responsible for the preparation ofthe 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.
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## Report of the Independent Auditors to the Members of The Ursuline Preparatory School Ilford
## Our 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 a Report of the independent auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description ofour 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 Report of the Independent Auditors.
## 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 ofthe 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 auditors' report and for no other purpos df TD he fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the chafitabla }ompany and the charitable company's members as a body, for our audit work, for this report, or feCe s we have formed. PN AS Angrew Gibson (Senior Statutory Auditor) or and on behgif of Cooper Paul Statutery Auditors Abacus House 14-18 Forest Road Loughton Essex 1G10 1DX Dates nee eeseesccesesteestsenegbonseeseeneees
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## The Ursuline Preparatory School Ilford
## Statement of Financial Activities for the Year Ended 31st August 2020
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|2020|2019|
|Unrestricted|Total|
|fund|funds|
|Notes|z|£|
|Income and|endowments from|
|Donations|and|legacies|2|226|11,658|
|Other trading|activities|3|1,268,308|1,437,359|
|Investment|income|4|3,014|2,347|
|Other income|36,523|39,791|
|Total|1,308,071|1,491,155|
|Expenditure|on|
|Raising|funds|5|40,109|41,320|
|Charitable|activities|6|
|School|1,379,118|1,450,365|
|Other|12,687|19,879|
|Total|1,431,914|1,511,564|
|NET INCOME/(EXPENDITURE)|(123,843)|(20,409)|
|Reconciliation|of funds|
|Total funds|brought forward|1,837,789|1,858,198|
|Total funds carried forward|1,713,946|1,837,789|
**----- End of picture text -----**
The notes form part of these financial statements
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## The Ursuline Preparatory School Ilford
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|Statement31stof August Financial 2020Position|_|
|2020|2019|
|Unrestricted|Total|
|fund|funds|
|_|Notes|£|£|
|Fixed|assets|
|Tangible|assets|11|1,526,770|1,547,226|
|Current|assets|
|Debtors|12|8,474|14,706|
|Cash|at bank and|in hand|480,043|719,223|
|488,517|733,929|
|Creditors|
|Amounts|falling due within one year|13|(148,442)|(283,707)|
|Net current assets|340,075|450,222|
|Total|assets|less current|liabilities|vl|1,866,845|1,997,448|
|Creditors|
|Amounts|falling due|after more than one|
|year|14|(61,150)|(72,375)|
|Provisions for liabilities|16|“1|,749)|(87,284)|
|NET ASSETS|1,713,946|1,837,789|
|Funds|17|
|Unrestricted|funds|1,713,946|1,837,789|
|Total funds|41,713,946|1,837,789|
**----- End of picture text -----**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 24 May 2021 and were signed on its behalf by:
The notes form part of these financial statements
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## The Ursuline Preparatory School Ilford
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|Statement|of Cash|Flows|
|for the Year Ended|31st August 2020|
|2020|2019|
|Notes|£|£|
|Cash flows from|operating activities|
|Cash|generated from operations|1|(229,929)|48,149|
|Pension|deficit funding|(9,251)|(7,515)|
|Net cash (used in)/provided by operating|activities|(239,180)|40,634|
|Cash flows|from|investing|activities|
|Purchase of|tangible|fixed|assets|°|(103,407)|
|Net cash provided by/(used in)|investing activities|:|(103,407)|
|Change|in|cash|and|cash|equivalents|
|in the reporting period|(239,180)|(62,773)|
|Cash and|cash equivalents|at the|
|beginning of the reporting period|719,223|781,996|
|Cash and cash|equivalents|at the|end|
|of the|reporting|period|480,043|
**----- End of picture text -----**
The notes form part ofthese financial statements
~
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## The Ursuline Preparatory School Ilford
## Notes to the Statement of Cash Flows for the Year Ended 31st August 2020
## 1. Reconciliation of net expenditure to net cash flow from operating activities
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|2020|2019|
|£|£|
|Net expenditure|for the reporting|period|(as|per|the Statement|
|of financial|activities)|(123,843)|(20,409)|
|Adjustments|for:|
|Depreciation charges|20,456|19,506|
|Interest on pension deficit|1,030|1,454|
|Further provision|on pension|deficit|12,687|19,879|
|Decrease|in|debtors|6,232|8,605|
|(Decrease)/increase|in|creditors|(146,491)|19,114|
|Net cash|(used|in)/provided by operations|229,929|48,149|
**----- End of picture text -----**
2. Analysis of changes in net funds
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|||||||
|---|---|---|---|---|---|
|At1/919|Cashflow|At31/8/20|
|£|£|£|
|Net cash|
|Cash|at bank and|in hand|719,223|(239,180)|480,043|
|719,223|(239,180)|480,043|
|Total|719,223|(239,180)|480,043|
**----- End of picture text -----**
The notes form part of these financial statements
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## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements
## for the Year Ended 31st August 2020
## 1. Accounting policies
## Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## Expenditure
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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 35 years Improvements to property - 2% oncost Fixtures and fittings - 25% on cost
## Taxation
The charity is exempt from corporation tax on its charitable activities.
## Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the period of the lease.
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## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued for the Year Ended 31st August 2020
## 1. Accounting policies - continued
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. Donations and legacies
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|2020|2019|
|£|£|
|Donations|226|11,658|
|3.|Other|trading activities|
|2020|2019|
|£|£|
|Preparatory|School fees|1,141,961|1,244,241|
|Nursery fees|104,372|157,248|
|Lettings|12,575|20,670|
|School|shop|15|145|
|Visits|income|2,300|8,345|
|PE Income|3,635|6,596|
|Music|exam|fees|232|114|
|Club|income|3,218|-|
|1,268,308|1,437,359|
|4.|Investment|income|
|2020|2019|
|£|£|
|UK Bank interest receivable|3,014|2,347|
**----- End of picture text -----**
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## The Ursuline Preparatory Schoo) Ilford
Notes to the Financial Statements - continued for the Year Ended 31st August 2020
**----- Start of picture text -----**
5. Raising funds
Raising donations and legacies
2020 2019
£ £
Bursaries 40,109 41,320
6. Charitable activities costs
Support
Direct costs (see
Costs note 7) Totals
£ £ £
School 1,141,357 237,761 1,379,118
7. Support costs
Governance
Other costs Totals
£ £ £
School 200,197 37,564 237,761
8. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
2020 2019
£ £
Auditors' remuneration 5,793 5,700
Other non-audit services 5,577 3,455
Depreciation - owned assets 20,456 19,507
Other operating leases 9,335 22,920
**----- End of picture text -----**
## 9. Trustees’ remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31st August 2020 nor for the year ended 31st August 2019.
## Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31st August 2020 nor for the year ended 31st August 2019.
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## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued
## for the Year Ended 31st August 2020
## 10. Staff costs
**----- Start of picture text -----**
|||||
|---|---|---|---|
|2020|2019|
|£|£|
|Wages|and salaries|723,523|743,821|
|Social security|costs|65,012|70,981|
|Other pension|costs|130,755|105,152|
|919,290|919,954|
**----- End of picture text -----**
## The average monthly number of employees during the year was as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|2020|2019|
|Total|28|30|
**----- End of picture text -----**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
£60,001 - £70,000
**----- Start of picture text -----**
|||
|---|---|
|2020|2019|
|1|1|
**----- End of picture text -----**
## 11. Tangible fixed assets
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|Improvements|Fixtures|
|Freehold|to|and|
|property|property|fittings|Totals|
|£|£|£|£|
|Cost|
|At|1st September 2019|and|
|31st August 2020|1,163,455|451,403|56,843|1,671,701|
|Depreciation|
|At|1st September 2019|47,967|33,580|42,928|124,475|
|Charge|for year|6,177|9,028|§,251|20,456|
|At 31st August 2020|54,144|42,608|48,179|144,931|
|Net book|value|
|At 31st August 2020|1,109,311|408,795|8,664|1,526,770|
|At 31st August 2019|1,115,488|417,823|13,915|1,547,226|
**----- End of picture text -----**
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The Ursuline Preparatory School Iiford
## Notes to the Financial Statements - continued for the Year Ended 3ist August 2020
|12.|Debtors: amounts fallingduewithinoneyear|||
|---|---|---|---|
|||2020|2019|
|||£|£|
||Fees receivable|8,474|6,852|
||Otherdebtors|-|1,000|
||Prepayments and accruedincome|-|6,854|
|||8,474|14,706|
|13.|Creditors: amounts fallingduewithinoneyear|||
|||2020|2019|
|||£|£|
||Fees inadvance|62,738|201,910|
||Trade creditors|4,890|3,858|
||Depositsreceived fromparents|5,700|9.200|
||Social security and other taxes|15,647|27,517|
||Othercreditors|35,811|4,467|
||Pensioncontrol|13,966|13,188|
||Accruedexpenses|9,690|23,567|
|||148,442|283,707|
|14.|Creditors: amounts falling due aftermorethanoneyear|||
|||2020|2019|
|||£|£|
||Deposits received from parents|61,150|72,375|
|15.|Leasing agreements|||
||Minimumleasepaymentsundernon-cancellableoperating leases fall due as follows:|||
|||2020|2019|
|||£|£|
||Betweenoneandfiveyears|_|11,932|
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The Ursuline Preparatory School [ford
## Notes to the Financial Statements - continued for the Year Ended 31st August 2020
## 16. Provisions for liabilities
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|2020|2019|
|£|£|
|Provision for pension deficit|91,749|87,284|
|17.|Movement|in|funds|
|Net|
|movement|At|
|At|1/9/19|in|funds|31/8/20|
|£|£|£|
|Unrestricted|funds|
|General|fund|1,837,789|(123,843)|1,713,946|
|TOTAL FUNDS|1,837,789|(123,843)|_|1,713,946|
|Net movement|in|funds, included|in the|above are|as|follows:|
|Incoming|Resources|Movement|
|resources|expended|in funds|
|£|£|£|
|Unrestricted|funds|
|General|fund|1,308,071|(1,431,914)|(123,843)|
|TOTAL FUNDS|1,308,071|(1,431,914)|(123,843)|
**----- End of picture text -----**
## Comparatives for movement in funds
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Net|
|movement|At|
|At|1/9/18|in|funds|31/8/19|
|£|£|£|
|Unrestricted|funds|
|General fund|1,858,198|(20,409)|‘1,837,789|
|TOTAL FUNDS|1,858,198|(20,409)|_|1,837,789|
**----- End of picture text -----**
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The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued for the Year Ended 31st August 2020
## 17. Movement in funds - continued
Comparative net movement in funds, included in the above are as follows:
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Incoming|Resources|Movement|
|resources|expended|in funds|
|£|£|£|
|Unrestricted|funds|
|General fund|1,491,155|=|(1,511,564)|(20,409)|
|TOTAL FUNDS|1,491,155|(1,511,564)|(20,409)|
**----- End of picture text -----**
A current year 12 months and prior year 12 months combined position is as follows:
**----- Start of picture text -----**
|||||
|---|---|---|---|
|Net|
|movement|At|
|At|1/9/18|in funds|31/8/20|
|£|£|£|
|Unrestricted|funds|
|General fund|1,858,198|(144,252)|1,713,946|
|TOTAL FUNDS|1,858,198|(144,252)|1,713,946|
**----- End of picture text -----**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
**----- Start of picture text -----**
|||||
|---|---|---|---|
|Incoming|Resources|Movement|
|resources|expended|in funds|
|£|£|£|
|Unrestricted|funds|
|General fund|2,799,226|(2,943,478)|(144,252)|
|TOTAL FUNDS|2,799,226|(2,943,478)|(144,252)|
**----- End of picture text -----**
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## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued for the Year Ended 3ist August 2020
## 18. Related party disclosures
There were no related party transactions for the year ended 31st August 2020.
## 19. Staff pensions
SCHEME: TPT Retirement Solutions ~ Independent Schools’ Pension Scheme
The company participates in the scheme, a multi-employer scheme which provides benefits to some 66 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme, Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK,
The scheme is classified as a 'last-man standing arrangement’. Therefore the company is potentially liable for other participating employers' obligations ifthose employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share ofthe scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2017. This actuarial valuation was certified on 27 December 2018 and showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
## Deficit contributions
From 1 September 2019 to 30 April 2030: £2,387,357 per annum (payable monthly and increasing by 3% on each ist September)
Note that the scheme's previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £110.0m, liabilities of £147.4m and a deficit of £37.4m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions From 1 September 2016 to 31 August 2029: £2,341,000per annum (payable monthly and increasing by 3% on each 1st September)
The recovery plan contributions are allocated to each participating employer in line with their estimated share ofthe scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value ofthe deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
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## The Ursuline Preparatory School liford
## Notes to the Financial Statements - continued for the Year Ended 31st August 2020
## 19. Staff pensions - continued
**----- Start of picture text -----**
31 August 31 August 31 Augusts
2020(£s) 2019(£s) 2018(£s)
Present value of provision 91,749 87,284 73,466
**----- End of picture text -----**
## RECONCILIATION OF OPENING AND CLOSING PROVISIONS
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|||||||
|---|---|---|---|---|---|
|Period|
|Ending31|
|Period Ending31|August|
|August 2020(£s)|2019(£s)|
|Provision|at start of period|87,284|73,466|
|Unwinding of|the|discount factor (interest expense)|1,030|2,075|
|Deficit contribution paid|(8,446)|(6,755)|
|Remeasurements|-|impact of any change|in assumptions|11,881|(1,804)|
|Remeasurements|- amendments|to the|contribution schedule|20,302|
|Provision|at end|of period|91,749|87,284|
**----- End of picture text -----**
## INCOME AND EXPENDITURE IMPACT
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|Period|
|Ending31|
|Period Ending31|August|
|August 2020(£s)|2019(£s)|
|Interest|expense|1,030|2,075|
|Remeasurements|-|impact of any|change|in assumptions|11,881|(1,804)|
|Remeasurements|- amendments to|the|contribution|schedule|-|-|
|Contributions|paid in respect of future|service*|*|3|
|+|*|
**----- End of picture text -----**
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
## ASSUMPTIONS
**----- Start of picture text -----**
31 August 31 August 31 August
2020% per 2019% per 2018(% per
annum annum annum
Rate of discount 0.90 3.36 2.96
**----- End of picture text -----**
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:
Page 23
## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued
## for the Year Ended 31st August 2020
## 19. Staff pensions - continued
## DEFICIT CONTRIBUTIONS SCHEDULE
|||31 August|31 August||31 August|
|---|---|---|---|---|---|
|Yearending|ending|2020(£s)|2019(£s)||2018(£s)|
|Year|1|8,699|8,446||6,755|
|Year2|2|8,960|8,699||6,958|
|Year3|3|9,229|8,960||7,167|
|Year4|4|9,506|9,229||7,382|
|Year5|5|9,791|9,506||7,603|
|Year|6|10,085|9,791||7,831|
|Year7|7|10,387|10,085||8,066|
|Year|8|10,699|10,387||8,308|
|Year|9|11,020|10,699|_|8,557|
|Year|10|7,567|11,020||8,814|
|Year|11|-|7,567||9,078|
|Year|12|-|-||-|
|Year|13|-|-||-|
|Year|14|-|.||-|
|Year|15|-|-||-|
|Year|16|-|.||-|
|Year|17|-|=||-|
|Year|18|-|=||-|
|Year|19|-|-||-|
|Year20|20|-|-||-|
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e, the unwinding ofthe discount rate as a finance cost in the period in which it arises.
It is these contributions that have been used to derive the company's balance sheet liability.
The School has been notified by TPT Retirement Solutions of the estimated employer debt on withdrawal from The Independent Schools' Pension Scheme based on the financial position of the Scheme as at 30 September 2019. As of this date the estimated employer debt for the School was £755,164,
The pension charge for the year includes contributions payable to the scheme of £45,723 (2019: £38,909).
The School participates in the Teachers’ Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £85,207 (2019: £58,012) and at the year-end £6,361 (2019: £5,068) was accrued in respect of contributions to its scheme.
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## The Ursuline Preparatory School Ilford
## Notes to the Financial Statements - continued for the Year Ended 31st August 2020
## 19. Staff pensions - continued
The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pension Regulations 2010 and, from 1 April 2014, the Teachers' Pension Scheme Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The latest valuation report in respect of the TPS was prepared at 31 March 2016 and was published in March 2019. The report confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from September 2019.
The administration charge remains at 0.08% ofthe employers' salary costs which increases the employer payment rate from 23.6% to 23.68%.
The next revision to the employer contribution rate is not expected to take effect until 1 April 2023. This will follow on from the next actuarial valuation which will be prepared as at 31 March 2020. This valuation will also determine the opening balance of the cost cap fund and provide an analysis of the cost cap as required by the Public Services Pensions Act 2013.
## 20. Material uncertainty relating to going concern
During the year the school had excess expenditure of £123,843 which was primarily caused by a fall in Preparatory School fees of £102,280 (see note 3 Preparatory school fees 2020: £1,141,961; 2019: £1,244,241).
Due to the current Covid pandemic and its potential negative effect on the income of the pupils’ parents and their ability to pay school fees the school may not be able to continue to operate in its current form in upcoming years.
Page 25