New Barnet Parochial Schools Trust Year Ended 31 December 2020
Trustees' Annual Report and Review of Financial Activities
Background
Original Deed of Trust 1869
The first trust was a deed of conveyance executed on 3[rd] July 1869 by the original benefactor, George Hankey, who provided land “for a school for the education of children and adults or children only of the labouring manufacturing and other poorer classes in the district aforesaid and for no other purpose” to be held on trust by the vicar and chapelwardens of Holy Trinity Lyonsdown for ever hereafter. He further stipulated that “the principal officiating minister for the time being of the said chapelry shall … have the superintendence of the religious and moral instruction of all the scholars attending such school and may use or direct the premises to be used for the purpose of a Sunday School under his exclusive control and management”. The said minister shall chair a management committee responsible for the appointment of the school master/mistress and assistants and “the instruction at the said school shall comprise at the least the following branches of school learning namely reading writing arithmetic geography scripture history and (in the case of girls) needlework and it is hereby further declared that it shall be a fundamental regulation and practice of the said school that the Bible be daily read therein”.
Schools Sites Act 1841
The deed was made under the authority, and for the purposes, of the Schools Sites Acts 1841 and 1844 for affording facilities for the conveyance and endowment of sites for schools. The 1841 Act applied to “a site for a school for the education of poor persons, or for the residence of the schoolmaster or schoolmistress, or otherwise for the purposes of the education of such poor persons in religious and useful knowledge” with the proviso “that upon the said land so granted as aforesaid, or any part thereof, ceasing to be used for the purposes in this Act mentioned, the same shall thereupon immediately revert to and become a portion of the said [benefactor’s] estate” (Section 2).
In making the 2008 Scheme, the Charity Commission [letter of 23/09/08] accepts that: “The trusts were originally for a school for the poor. The Nursery is a school, it is a maintained school and we can assume therefore that in as much as the area of benefit contains poor persons they will still attend. … We agree with you that reverter has not been triggered as the school continues.”
Leases of the Schools Site 1905 and 2010
The New Barnet Parochial Schools originally consisted of infant and junior (mixed) departments, although the infants and girls schools moved to new premises in 1900, leaving the boys at Margaret Road. The schools were administered by the East Barnet Schools Board from 1894 until it was abolished by the Education Act 1902. In 1905 the vicar and chapelwardens leased the newly constituted Margaret Road Council School to the Local Education Authority for 81 years at a peppercorn rent. The vicar, who had previously chaired the managers and the Schools Board, continued as chairman of the board of governors. Provision was made in the 1905 lease for the church Sunday School to continue to meet on the school premises, which it did until the church hall was built in 1921.
The vicar and churchwardens (successors to the original vicar and chapelwardens) only rediscovered their responsibilities as Trustees in 2006 when the Council sought an extension to the 1905 lease. Having agreed that a reverter had not occurred under the 1841 Act, since the premises had remained a school, the Trustees reviewed the provisions of the 1869 Deed. They considered that the present St Margarets Nursery School no longer provided spiritual and moral instruction, the teaching of scripture (and other subjects), or daily Bible reading, so the purposes of the trust would have to be fulfilled by charging the Council a market rent which could in turn be applied to charitable purposes. The original objects were varied by a Charity Commission Scheme of 2008 to provide for income from the new lease which was completed in 2010 and arrears of rent (from November 2007) were received on 9[th] April 2010.
Aims and Purposes
Charity Commission Scheme 2008
The object of the New Barnet Parochial Schools Trust (referred to as “the Trust” in this report) is, for the public benefit, to advance the education of children and adults resident in the parishes of New Barnet, East Barnet or Lyonsdown, who are in need of financial assistance (“beneficiaries”) through:
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(1) the provision of a site for a School in accordance with the existing trusts; and
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(2) the provision of items, services and facilities for the Nursery School;
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(3) making grants or loans to beneficiaries for any or all of the following purposes:
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(a) to assist them to pursue a course of study at any school, university, college of education, or other institution of further education approved for the purpose by the trustees;
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(b) to enable them to participate in extra-curricular activities, educational trips or travel abroad to pursue their education;
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(c) to assist their entry into a profession, trade or calling;
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(d) assisting in the provision of a Sunday School.
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
Objectives and Activities
The Trust's role is to manage the rental income from the Council and apply it for charitable purposes, in accordance with the 2008 Scheme.
Its current strategy is to facilitate the provision of a Sunday School and supporting activities to be made available to children resident in the parishes of New Barnet, East Barnet or Lyonsdown. This encompasses children who are in need of financial assistance. No charge is made for attendance at Sunday School classes. Supporting activities include midweek children’s clubs with Bible teaching which act as an encouragement for children to attend Sunday school.
In planning the activities for the year, the Trustees have considered the Commission's guidance on public benefit and, in particular the specific guidance on charities for the advancement of education.
Benefits following from the Aims
Sunday School classes are open to all comers free of charge without restriction (even if they live outside the area of benefit or are not in financial need) and represent most local ethnic groupings. Different classes are provided for each age group, which are led by a full-time youth worker and full-time children’s worker, assisted by voluntary workers and volunteers.
Awareness and understanding of the Christian faith contributes to the spiritual and moral education of children and youth. Teaching the Bible to young people in a cohesive way with integrity helps to overcome misunderstandings that might otherwise arise. The second book of Timothy Ch3 v.16 says “All Scripture is inspired by God and profitable for teaching, for reproof, for correction, for training in righteousness”.
Parents are also encouraged by the youth and children’s workers to be involved with their children’s Bible education. Spiritual retreats are promoted by means of annual youth camps and children’s days away.
Achievements and Performance
Rental income of £63,500 was received over the year, the same amount as in 2019.
During 2020, grants amounting to £65,927 were awarded to assist local Sunday School ministries (£20,524 in 2019).
The number of children attending on a Sunday at assisted Sunday Schools has averaged:
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| spring term | 85.3 | 83.5 | 84.6 | 82.0 | 75.4 | 71.0 | 48.5 | 53.3 | 44.4 | 44.9 | 40.2 |
| summer term | 81.6 | 89.5 | 83.0 | 84.3 | 73.9 | 72.5 | 57.5 | 56.5 | 48.7 | 48.1 | 40.9 |
| autumn term | 82.7 | 76.4 | 81.3 | 79.8 | 81.4 | 71.2 | 63.2 | 54.9 | 51.7 | 47.4 | 47.8 |
| overall | 83.2 | 83.1 | 82.9 | 82.0 | 76.9 | 71.6 | 56.4 | 54.9 | 48.2 | 46.8 | 43.0 |
The equivalent figures for 2020 are not available as, because of the coronavirus pandemic, all teaching was adapted to make use of online services.
Financial Review and Financial Policies
Over the year there was a net operating deficit of £2,326 (£43,936 surplus in 2019). The deficit was due to an increase in the grants awarded.
Reserves Policy
“Reserves” describe that part of the funds that is freely available for general purposes at the discretion of the Trustees, but which is not yet spent, committed or designated, i.e. surplus liquid assets excluding endowments, restricted funds, designated funds and fixed assets held for the purposes of the Trust.
The Reserves Policy sets the level of financial reserves, in line with the guidance issued by the Charity Commission, in order to maximise the resources available for the work of the Trust.
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The level at which these reserves is set should be adequate to cover the following elements:
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normal working capital (say £2,000);
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six months’ operating expenses of the Trust (say £30,000), or five years’ overheads of managing the school (say £250,000) should the Council withdraw, whichever is the larger;
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any other contingencies or risks, assessed on the best evidence reasonably available, the likelihood of each of those needs arising, the possibility of support from elsewhere, and the potential consequences of the Trust not being able to meet those needs.
The target reserves figure for 2020, calculated on the basis of the above policy, is £252,000. There was actually £215,042 held in reserve on 31[st] December 2020, being the general funds of the Trust (£217,368 on 31[st] December 2019).
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
Grant-Making Policy
The Trustees make grants from time to time, as permitted in the 2008 Scheme. The beneficiaries are determined as the Trustees think fit, with particular reference to the perceived wishes of the original benefactor laid out in the 1869 Deed.
Investment Policy and Performance
It is the responsibility of the Trustees to review the performance of all investments from time to time. The CAF Gold account is generally regarded as providing a good short term investment account. The Trustees are also free to make loans as they see fit, but take advice on the terms and rate of interest before doing so.
Fund-Raising
Fund-raising is not seen as necessary at present, as the required resources are provided by rental income.
Risk Assessment
It is the responsibility of the Trustees to identify, assess and mitigate any major risks to which it is exposed.
Such risks include:
The Council withdrawing from the school lease at one of the two-yearly break points, having given 6 months’ notice. Under these circumstances, the Trustees would take over the management of a school that would satisfy the Schools Sites Act 1841, so as not to risk the site reverting to the estate of the original donor.
Plans for the Future
The Trustees plan to continue making grants as permitted in the 2008 Scheme, as and when funds allow.
Structure, Governance and Management
Governing Documents
The Trust was formed by Deeds of Conveyance executed on 3[rd] July 1869 (described above) and 5[th] November 1891 (endowing an additional piece of land for use as a playground) and varied by Schemes sealed on 16[th] February 1905 (allowing the premises to be leased to the Council at a peppercorn) and 11[th] November 2008 (see above).
It was registered by the Charity Commission as Charity Number 1135862 on 10[th] May 2010.
Board of Trustees
The ex-officio Trustees for 2020 were Revd Charles W G Dobbie (chairman), Mr Andrew R Fry and Mr Paul Tivey, being the vicar and churchwardens of Holy Trinity Church, Lyonsdown. The additional Trustees were Mrs Felicity Dobbie and Mr William Rugg.
The Trustees meet at least twice a year, two Trustees forming a quorum. Alternatively, decisions may be taken by means of a resolution in writing, signed by all the Trustees. The induction and training of new trustees is based on the comprehensive information available from the Charity Commission website.
Associated Charities
Although the ex-officio Trustees of the Trust are also Trustees of Holy Trinity Lyonsdown Parochial Church Council (known as the PCC), this was the intention of the founder and cannot be varied. It is not considered that the PCC is a ‘related party’ to the Trust so as to require further disclosure, since the object of the Trust comes under the head of ‘education’, whilst the PCC comes under ‘religion’. It is policy that all transactions between the two charities are on a commercial basis wherever practicable.
Similarly, with the Holy Trinity Lyonsdown Trust (HTLT), it is policy that all transactions between the two charities are on a commercial basis wherever practicable. It is not considered that the Trust is a ‘related party’ to HTLT so as to require further disclosure, since the object of HTLT also comes under ‘religion’.
Administrative Information
The Trust is based at 18 Lyonsdown Road, New Barnet, Hertfordshire EN5 1JE. The secretary is John Govey of 40d Station Road, New Barnet, Hertfordshire EN5 1QH.
John Macrory acts as the Trust's solicitor at Macrory Ward, 27 Station Road, New Barnet, Herts. EN5 1PH. A bank account (No 00019651) in the name of New Barnet Parochial Schools Trust is held with CAF Bank Ltd., PO Box 289, West Malling, Kent ME19 4TA (Code 40-52-40).
Annual Report approved by the Trustees and signed on their behalf by:
Rev Charles W G Dobbie (chairman)
Date: 12[th] January 2021
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
| Statement of Financial Activities | Total Funds | Total Funds | ||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Unrestricted | Unrestricted | |||
| Income | ||||
| Income from Charitable Activities | Notes | £ | £ | |
| Rent from St Margaret’s School | 63,500 | 63,500 | ||
| Investment Income | ||||
| Bank interest | 161 | 198 | ||
| Accrued loan interest | 4 | 0 | 822 | |
| Total Investment Income | 161 | 1,020 | ||
| Total Income | 63,661 | 64,520 | ||
| Expenditure | ||||
| Expenditure on Charitable Activities | ||||
| Grant Funding | 2 | 65,987 | 20,584 | |
| Total Expenditure | 65,987 | 20,584 | ||
| Net Income (Expenditure) | (2,326) | 43,936 |
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| Net Movement in Funds | (2,326) | 43,936 |
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| Total funds brought forward Total funds carried forward |
217,368 215,042 |
173,432 217,368 |
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| Balance Sheet at 31 December | 2020 | 2019 |
||
| £ | £ | |||
| Current Assets | ||||
| Cash at bank | 215,042 | 217,368 | ||
| Total Current Assets | 215,042 | 217,368 | ||
| Net Assets | 215,042 | 217,368 | ||
| Funds of the Charity | ||||
| Unrestricted funds | ||||
| General funds | 215,042 | 217,368 | ||
| Designated funds | 0 | 0 | ||
| Total Charity Funds | 6 | 215,042 | 217,368 |
Financial statements approved by the Trustees and signed on their behalf by:
Rev Charles W G Dobbie (chairman)
Date: 12[th] January 2021
The notes on pages 5 and 6 form part of these financial statements.
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
Notes to the Financial Statements
Note 1 Accounting Policies
The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) amended to February 2016 (Update Bulletin 1); the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) amended to July 2015; and the Charities Act 2011.
The Trust constitutes a public benefit entity as defined by FRS 102.
The financial statements have been prepared under the historical cost convention.
Although a deficit of £2,326 is shown for 2020, this is due to an increase in grant awards following the surplus of £43,936 achieved in 2019.
1a Funds
General funds represent the funds of the Trust that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Trust. The financial statements include all transactions, assets and liabilities for which the Trustees are responsible in law.
1b Income
Income and endowments are included in the Statement of Financial Activities when the Trust becomes legally entitled to the use of the resources; inflow of economic benefit is probable; and the monetary value can be measured with sufficient reliability. Rental income is recognised when the rental is due.
Amounts owing to the Trust on 31 December in respect of rents or other income are shown as debtors, less provision for any amounts that may prove uncollectable.
1c Expenditure and Liabilities
Liabilities are recognised as soon as there is a legal or constructive obligation and settlement is probable and quantifiable.
Grant funding is recorded when paid over, or when awarded if that award creates a constructive obligation on the Trustees.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
1d Fixed Assets
Tangible fixed assets for use by the charity are capitalised if they can be used for more than one year, and cost at least £1,000. They are valued at cost or else, for gifts- in-kind, at a reasonable estimate of their open market value on receipt. For land and buildings, see Note 3.
Depreciation is calculated to write off the capitalized cost of fixed assets less their currently anticipated residual fair value over their estimated useful lives.
Social investments are shown at historic cost with accrued interest added.
1e Statement of cash flows
The financial statements do not include a statement of cash flows as the charity constitutes a small charity under the SORP as amended by Update Bulletin 1.
1f Support costs
Support costs represent expenditure that does not directly relate to a specific activity. All support costs have been allocated to charitable activities because any allocation between specific activities would be immaterial.
1g Cash at bank
Cash at bank represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
Note 2 Grant Funding
The following grants have been made to support youth and children’s workers in accordance with the Trust’s grant-making policy:
| Beneficiaries Purpose Holy Trinity Lyonsdown Trust salaries Support costs bank charges Total |
2020 £ 65,927 60 65,987 |
2019 £ 20,524 60 20,584 |
|---|---|---|
Note 3 Fixed Assets
The freehold land and buildings comprise the present St Margaret’s Nursery School, Margaret Road, New Barnet, EN4 9NT. The Trustees hold the school in trust under the Schools Sites Act 1841, by which, should it ever cease to be a school within the meaning of the Act, the proceeds from the site would revert to the estate of the original donor. A capital valuation of the site and buildings is, therefore, not included in the financial statements.
Note 4 Related Party Transactions
The key management personnel of the charity constitute the trustees. There are no staff members. The trustees received no remuneration during the year (none in 2019). There were no other related party transactions during the year (none in 2019).
Note 5 Fund Details
All charity funds are currently unrestricted. There were no restricted income funds in 2020.
Note 6 Summary of Fund Movements
| Balance £ 1 Jan 2020 General funds 217,368 Restricted funds 0 Total 217,368 e 7 Analysis of Net Assets by Fund General funds £ Fixed assets - Current assets 215,042 Liabilities - Fund balance 215,042 |
Income £ Expenditure £ 63,661 (65,987) 0 0 63,661 (65,987) Restricted funds £ - - - - |
Funds £ 31 Dec 2020 215,042 0 215,042 Total £ - 215,042 - 215,042 |
|---|---|---|
Note 7 Analysis of Net Assets by Fund
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New Barnet Parochial Schools Trust Year Ended 31 December 2020
Independent Examiner's Report to the Trustees of New Barnet Parochial Schools Trust
I report on the financial statements of New Barnet Parochial Schools Trust, for the year ended 31 December 2020, as set out on pages 4 to 6.
Respective Responsibilities of Trustees and Examiner
The charity's trustees are responsible for the preparation of the financial statements. The charity's trustees consider that an audit is not required for this year (under section 144(2) of the Charities Act 2011 (the Act)) and that an independent examination is needed.
It is my responsibility to:
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examine the financial statements (under section 145 of the Act);
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Act); and
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to state whether particular matters have come to my attention.
Basis of Independent Examiner's Report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, 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 financial statements 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 my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements
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to keep accounting records in accordance with section 130 of the Act; and
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to prepare financial statements which accord with the accounting records and comply with the accounting requirements of the Act
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have not been met; or
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(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Signed
Date: 19[th] September 2021
Annette Foster
47 York Road New Barnet Herts. EN5 1LN
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