2021-08-31-accounts

THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

(Registered Charity No 1132512)

THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

CONTENTS	Page
Reference and administrative details	2
Trustees’ report	3 – 6
Independent examiner’s report	7
Statement of financial activities	8
Statement of financial position	9
Notes to the financial statements	10 - 14

1

THE NOTTING HILL PREP FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS

TRUSTEES	Rebecca Balon (Co-Chair)
	Jessica Benson (Co-Chair)
	Caroline Armstrong
	Jane Cameron
	Georgie Burleigh
	Lady Caroline Gladstone
	Patrick Smulders
CHARITY REGISTERED NUMBER	1132512
PRINCIPAL OFFICE	95 Lancaster Road
	London
	W11 1QQ
INDEPENDENT EXAMINER
	Haysmacintyre LLP
	10 Queen Street Place
	London
	EC4R 1AG
BANKERS	CAF Bank

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THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees submit their annual report and the financial statements of The Notting Hill Prep Foundation (“the charity”) for the year ended 31 August 2021. The Trustees confirm that the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the charity’s governing document and the smaller charity provisions of the Statement of Recommended Practice (SORP 2015)

REFERENCE AND ADMINISTRATIVE INFORMATION

Notting Hill Prep Foundation registered as a charity on 6 November 2009 (registered charity number 1132512). The principal address of the charity is 95 Lancaster Road, London, W11 1QQ.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Trust is constituted under a Trust deed dated 25 August 2009.

Trustees and Professional Advisors

A list of Trustees and professional advisors appears on page 2.

Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. Trustees are nominated by the Board of Trustees. The charity’s Trustees are appointed at a meeting of the Board of Trustees, following a selection process which takes into consideration eligibility, personal competence, specialist skills and local availability. New Trustees are inducted into the workings of the Foundation, including the provision of key information covering board policy, School ethos and financial information.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the Trust. The internal controls already in place are commensurate with the size of the charity and provide a high degree of comfort. The Trustees are satisfied that systems are in place to mitigate the charity’s exposure to any major risks.

OBJECTS AND ACTIVITIES

Charitable objects

The principal object of the charity is the advancement of education of the public through the provision of bursaries to pupils of Notting Hill Preparatory School.

The charity does not currently employ any staff. The Trustees and a Head of School Development, employed by Notting Hill Prep School, are responsible for the management of the charity and for the furtherance of the objectives for which it is established. The Trustees and Head of School Development meet on a regular basis to discuss the affairs of the charity.

Grant making policies

The Trust provided grants and bursaries during the year to pupils of Notting Hill Preparatory School for the furtherance of their education.

The Trust also provides funding and the sharing of resources to local charitable organisations and primary schools, to further the education of the local primary school aged children.

Volunteers

In addition to the Trustees, members of the school community (staff and parents) volunteer to support the activities of the charity,

FINANCIAL AND BUSINESS REVIEW

Review of the year

The charity has traditionally offered means-tested bursary places to incoming Year 7 pupils, for which it is largely reliant on donations. In its early years, the charity funded one pupil per year. Through continued fundraising, and thanks to the ongoing generosity of parents, the Notting Hill Prep Foundation is now able to offer at least two places each year. In

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THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

addition to those places, in September 2019, we welcomed into Year 4 the first recipient of the Jane Cameron. In the year ended 31 August 2021, the Notting Hill Prep Foundation funded seven pupils on means-tested bursary places.

Bursary (JCB) for excellence in performing arts. Thanks to the enthusiastic and generous community response to the 2018/19 fundraising drive to create this award in perpetuity, we are able, going forward, to have one JCB recipient as a member of the NHP student body at all times. This pupil will now be going into Year 6 in September 2021 and is thriving at NHP.

After the departure of the former part-time Head of School Development at the end of 2020, due to a job that was closer to her home in West Sussex, a full-time Head of School Development, Kirsty Murdoch, was brought on board at the start of January 2021. After the disruption caused by Covid-19 and the full re-opening of the school in March 2021, there was an understanding that this was going to result in another unpredictable year. With the understanding that the upheaval could possibly limit donations to the optional fee add-on as well as any individual giving, and with the loss our Head of School Development mid-way through the year, the trustees accepted that some reserves would need to be made back up where possible but that this would likely be a lean fundraising year—possibly one in which we would have to dip into our reserves. While not a desirable course of action, we felt confident that we were adequately funded to absorb that should it become necessary. The addition of direction from the new Head of School Development would aim to bring in experience and expertise to take into consideration the impact of Covid and work with the Trustees and school to build on the fundraising plan moving forwards.

In an effort to balance our strong commitment to our bursary programme with the unprecedented circumstances of lockdowns, home schooling and general financial uncertainty, and with the school re-opening part way through the year, the Foundation and Head of School Development decided to focus our efforts on an examination of our overall mission and building a strong strategy for the future direction of the Foundation, ensuring that plans were in place for goals to be met.

The results were:

1. A renegotiation of the fee agreement with NHP, which will result in a substantial reduction in the amount per pupil cost to the Foundation, beginning in September 2021.

2. A broadening of our mission and scope, [within our objectives,] to include NHP’s more general charitable outreach under the umbrella of the Foundation. If an aspect of our mission is to honour the core values around which the school was founded by serving the diverse local community in ways that enhance and improve the lives of local primary school children, we feel we can effectively accomplish this through:

3. a. Charitable outreach which involves the harnessing of the collective power of the NHP community to support local initiatives, with an educational aspect to them through donations, time commitment and the sharing of resources.

4. b. Providing fully funded, means-tested bursary places.

We view these two means as interconnected rather than separate, with our ability to award bursary places as the most valuable and lasting contribution to a child’s life that we as a school can make.

1. An ambitious but realistic ten-year plan to expand our bursary offerings, both in the number of students and in the year groups in which we offer places. Concurrent with this expansion, we will be broadening the wrap-around pastoral care we provide to our bursary pupils.

2. A revision to the charter to specify that 25% of any major PA fundraising events will be donated to the Foundation to directly fund bursaries.

By bringing these two things together under the Foundation, we feel we have not only been able to more cleanly separate the charitable arm of the NHP from the business arm of the school, but that it will result in enhanced awareness and visibility of our bursary programme and its importance throughout the school and local communities.

With the new Head of School Development in place, we have seen a significant increase in our fundraising in certain areas such as deposit donations due to an overall more strategic approach, as well as a more sustainable plan for longterm, individual giving and bursarial support. The introduction of a support network around the bursary pupils and their families and a number of other initiatives have ensured the Foundation can achieve our ambitions. Our community

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THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

partnerships focus has continued to grow and the NHP community now has a clearer understanding of the Foundation’s mission and goals. We have met our goals to date for the bursary programme and look forward to moving ahead and achieving our mission for a robust bursary programme alongside enhanced community service and involvement.

Financial review

During the year the charity raised £183,260 (2020: £162,704), including donations of £135,333 (2020: £128,869). The charity provided grants and bursaries during the year to pupils of Notting Hill Preparatory School for the furtherance of their education. During the year eight (2020: eight) grants were given to individuals totalling £118,610 (2020: £118,610).

The Trustees consider that the charity is adequately funded and has sufficient income and resources to continue its work.

Investment Policy and Performance

Funds generated by the Foundation are invested in managed unit trusts for Charities which match our investment objectives and aims to provide an income return to use to fund its bursaries and capital growth to reflect inflation and the future anticipated increase in school fees.

This is achieved by investing in a managed unit trust for charities which matches our investment objectives as follows:

1. An annual yield above that available from the FTSE All-Share Index

2. An income stream that increases every year

3. A level of capital growth, net of charges, that is higher than inflation over any the-year period, as measured by the U.K. Retail Price Index

By using a managed fund this enables the Foundation to obtain a better mix in its portfolio to spread the risk of its investment. Returns on investments are not guaranteed.

Professional advice on the investments and the investment policy will be reviewed annually.

Public Benefit

The Trustees in this report describe how those activities undertaken by the charity further its charitable purposes for the public benefit. The Trustees confirm that they comply with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance

Fundraising activities

The Trust raised money during the year through voluntary donations and social events.

Reserves policy

The charity is in large part dependent upon donations from parents of pupils at the School. The charity has been fortunate in the past to receive donations but this is not a guaranteed source of income. The Trustees therefore intend to maintain a level of unrestricted reserves which generates sufficient investment income to continue the charity’s activities on an ongoing basis. At present the unrestricted reserves of the charity amount to £619,982 of which £65,284 represents those funds currently held in the charity’s current account.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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THE NOTTING HILL PREP FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2010 and the provisions of the trust deed dated 25 August 2009. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees on 7 June 2022 and signed on their behalf, by:

Jessica Benson

Trustee

.

Caroline Armstrong

Trustee

6

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF

THE NOTTING HILL PREP FOUNDATION

We report on the accounts of the charity for the year ended 31 August 2021 which are set out on pages 8 to 14.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) [or under Regulation 10(1)(a) to (c) of the Charities Accounts (Scotland) Regulations 2006 (the 2006 Regulations)] and that an independent examination is needed.

Having satisfied ourselves that the charity is eligible for independent examination, it is our responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• state whether particular matters have come to my attention.

Basis of independent examiner's report

Our examination was carried out in accordance with the general Directions given by the Charity Commission and is in accordance with Regulation 11 of the 2006 Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with our examination, no matter has come to our attention:

• 1 which gives us reasonable cause to believe that, in any material respect, the requirements:

• to keep accounting records in accordance with section 130 of the Charities Act 2011; and

• to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Charities Act 2011 and section 44(1)(b) of the 2005 Act and Regulation 8 of the 2006 Regulations and which are consistent with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

• 2 to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Thomas Wilson ACA For and on behalf of Haysmacintyre LLP 10 Queen Street Place Chartered Accountants London EC4R 1AG

Date: 14 June 2022

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THE NOTTING HILL PREP FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2021

		General	Restricted		Total
		Fund	Fund
		2021	2021	2021		2020
	Notes			£		£
Income from
Voluntary income:
Donations	2	100,666	33,203	133,869		128,869
Investments		24,561	-	24,561		28,568
Other	3	23,366	-	23,366		45267
		----------------	-------------	----------------		----------------
Total Income		148,593	33,203	181,796		162,704
		---------------	-------------	----------------		----------------
Expenditure on
Charitable activities	4	121,490	33,203	154,693		120,200
		---------------	-------------	----------------		----------------
Total expenditure		121,490	33,203	154,693		120,200
		---------------	-------------	----------------		----------------
Net income		27,103	-	27,103		42,504
Gains/(Losses) on investments:
Unrealised		116,893		116,893		(108,040)
Realised		-		-		-
		---------------	-----------	----------------		----------------
Net movements in funds		143,996	-	143,996		(68,536)
Total funds brought forward	9	475,986	-	475,986		541,522
		----------------	------------------	------------------		------------------
Total funds carried forward		619,982	-	619,982		475,986
		=========	=========	=========		=========

All the amounts arise from continuing activities and there are no recognised gains or losses other than those shown above in the statement of financial activities.

The notes on pages 10 to 14 form part of these financial statements.

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THE NOTTING HILL PREP FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2021

			2021		2020
	Notes	£	£	£	£
FIXED ASSETS
Investments	5		564,576		447,683
CURRENT ASSETS:
Debtors	6	8,534		-
Cash at bank and in hand	7	65,284		86,074
		-----------------		-----------------
		73,818		86,074
LIABILITIES:
Creditors: amounts falling due within one year	8	(18,412)		(57,771)
		----------------		----------------
NET CURRENT ASSETS			55,406		28,303
			-------------------		-------------------
TOTAL NET ASSETS			619,982		475,986
			=========		=========
FUNDS OF THE CHARITY
Unrestricted funds	9		619,982		475,986
			------------------		------------------
TOTAL CHARITY FUNDS			619,982		475,986
			=========		=========

The financial statements were approved and authorised for issue by the Board of the Trustees on 7 June 2022 and were signed on their behalf by:

Jessica Benson

Trustee

Caroline Armstrong

Trustee

The notes on pages 10 to 14 form part of these financial statements.

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THE NOTTING HILL PREP FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

General information

The Charity is registered in England and Wales (charity number: 1132512). The Charity’s registered office address is: 95 Lancaster Road, London, W11 1QQ.

Basis of preparation

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Statement of Recommended Practice (SORP 2015).

The policies applied under the previous accounting framework are not materially different to the Charities SORP (FRS102) and no restatement were required in making the transition to FRS102.

The principal accounting policies adopted in the preparation of the Financial Statements are as follows:

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Going concern

The Trustees consider that there are no material uncertainties regarding the charity’s ability to continue as a going concern.

Incoming resources

Investment income is accounted for on an accruals basis.

Donations are included on receipt or being notified of a distribution if earlier.

Resources expended

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

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THE NOTTING HILL PREP FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Investments

All other investments are stated at market value. Realised gains and losses on investments represent the difference between sale proceeds and opening market value (or cost at date of purchase if lower). Unrealised gains and losses represent the change in market value of the investment portfolio in the year.

Debtors

Other debtors are recognised at the settlement amounts due for the provision of services delivered. Prepayments are recognised at the amount prepaid or the amount paid in advance.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors that have been raised by the charity for particular purposes.

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THE NOTTING HILL PREP FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

2.	DONATIONS	DONATIONS					2021		2020
							£		£
	Bursary						100,666	128,869
	Radius						33,203		-
							--------------	--------------
							133,869	128,869
							========	========
3.	OTHER INCOME						2021		2020
							£		£
	Deposits						23,357		4,737
	Other						9		530
							--------------	--------------
							23,366		5,267
							=======	=======
4.	TOTAL EXPENDITURE				Grant funding	Radius	Support	Total	Total
					activities	Projects	costs	2021	2020
					£		£	£	£
	Advancement of education				118,952	33,203	-	152,155	118,610
	Fundraising				-		780	780	-
	Administration				-		1,758	1,758	1,590
					---------------	---------------	----------------	---------------	---------------
					118,952	33,203	2,538	154,693	120,200
					========	========	========	=======	=======
4a.	CHARITABLE EXPENDITURE					2021		2020
						Number	£	Number	£
	Individual	grants	payable	–		8	118,952	8	118,610
	education
						========	========	=======	========
4b.								2021	2020
								£	£
	Independent Examiner’s fees							1,500	1,500
	Bank charges							258	90
								---------------	---------------
								1,758	1,590
								=======	=======

During the year eight (2020: eight) grants were paid to pupils of Notting Hill Preparatory School. During the year, no Trustees (2020: none) received any remuneration, benefits in kind or reimbursement of travel expenses.

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THE NOTTING HILL PREP FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

5.	INVESTMENTS				2021	2020
	UK listed investments
	At 1 September at market value				447,683	440,723
	Additions				-	115,000
	Unrealised gain/(loss)				116,893	(108,040)
					-----------------	-----------------
	At 31 August at market value				564,576	447,683
					=========	=========
	At 31 August at cost				560,678	560,678
					=========	=========
6.	DEBTORS				2021	2020
					£	£
	Balance due from Notting Hill Preparatory School				1,034	-
	Accrued income				7,500	-
					--------------	--------------
					8,534	-
					=======	=======
7.	CASH AND CASH EQUIVALENTS				2021	2020
					£	£
	Cash at bank				65,284	86,074
					=======	=======
8.	CREDITORS: amounts falling	due within one year			2021	2020
					£	£
	Accruals				7,557	1,500
	Balance due to Notting Hill Preparatory School				-	56,271
	Balance due to Parent’s Association				10,855	-
					--------------	--------------
					18,412	57,771
					======	======
9.	STATEMENT OF FUNDS	Brought	Incoming	Resources	Investment	Carried
		Forward	Resources	Expended	Gains	forward
		£	£	£	£	£
	Unrestricted funds
	General funds	475,986	148,593	(121,490)	116,893	619,982
	Restricted Funds	-	33,203	(33,203)	-	-

Included in the total income of the Foundation is £48,758 (2020: £53,579) relating to the Jane Cameron Bursary fundraising. In addition to this at the year-end there was a further £43,000 of longer term pledges that will be received in future years, giving a total of £400,000.

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THE NOTTING HILL PREP FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

11. COMAPRATIVE STATEMENT OF FINANCIAL ACTIVITIES (2020)

					General	Fund
				Notes	2020	2019
Income from					£	£
Voluntary income:
Donations				2	128,869	268,468
Investments					285,68	8,545
Other				3	5,267	98,610
					----------------	----------------
Total	Income				162,704	375,623
					----------------	----------------
Expenditure on
Charitable activities				4	120,200	119,250
					----------------	----------------
Total	expenditure				120,200	119,250
					----------------	----------------
Net income					42,504	256,373
(Losses)/gains on investments:
Unrealised				5	(108,040)	(6,593)
Realised				5	-	-
					----------------	----------------
Net movements in funds					65,536	249,780
Total	funds brought forward			9	541,522	291,742
					------------------	------------------
Total	funds carried forward				475,986	541,522
					=========	=========
12.	COMPARATIVE STATEMENT	OF FUNDS	(2020)
		Brought	Incoming	Resources	Investment	Carried
		Forward	Resources	Expended	Gains	forward
		£	£	£	£	£
	Unrestricted funds
	General funds	541,522	162,704	(120,200)	(108,040)	475,986
		=========	=========	========	=======	=========

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