Company Number: 7748737 Registered in England Registered Charity Number: 1144035 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 the Chairrman of Governors, The Revd Canon Tom Buchanan. This Committee also has responsibility to oversee the regulatory compliance of the Foundation. The Finance Committee is responsible for dealing with financial issues affecting both schools and is chaired by the Hon Treasurer, Roger Webster. In addition to these Committees there is also an Investment Committee which meets once a year to review the activities of the Investment advisers. A Nominations Committee meets at least once a year to assist with succession planning for off icers and the recruitment ol new Governors. The Governors also meet once a year lor an away day to discuss strategic issues. Ad hoc committees are established to look at specific issues. The day-lo-day running of the schools is delegated to the respective school Headmasters and Bursars. They are also supported by their Senior Management Teams and together this group are the key management personnel. The Headmasters and Bursars attend meetings of the above committees. The remuneration of key management personnel is set by the board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the Foundatlon's success. The policy is reviewed annually and appropriate benchrmarking data is used to ensure the FoLJndation takes into account the broader Issues of pay and employment conditions. Delivery of the Fciundation's charitsble vision and purpose is primarily dependent on the key management personnel and stsff under the direction of the Governors. To ensure that the Foundation is following best practice, Governors benchmarked the work of the charity against the new Charity Governance Code produced by the Charity Commission. The Governors benchmarked against the seven principles, particularly looking at the key outcomes, and identified a few areas where the Foundation could improve the way it operates. Action has been taken to ensure that these improvements are implemented. Group structure and relationships Leys Enterprises (Cambridge) Limited was incorporated in 1986 in England and with its registered office at The Leys School, Trumpington Road Cambridge, Cambridgeshire C82 7AD. The principal activities of the company are the running of the school shops for both The Leys and St Faith's schools. In addition the company runs the school's Balgarnie's café and the organisation of the summer school staff at The Leys School. All surplus income is donated to the Foundation under the gift aid scheme. Employment Policy The Foundation is an equal opportunities employer. We celebrate diversity and do not discriminate based on race, reliEion, colour, national origin, sex, sexual orientation, age, disability status or any other applicable characteristics protected by law. The Foundation regularly provides relevant information on the progress of the schools to all staff. The Headmasters al both schools communicate with the leaching staff at the end ol each term following the Full Board meetings and also at the start of each term. Both schools have established Staff Consultative Committees who meet every term and are provided with relevant information about the schools. The two Bursars also make a presentation to all the supwrt staff lollowing the Full Board meetings. Relationships The Foundation actively supports the attainrllent of the highest standards in the independent schools sector, partly through networking with other major schools and partly through peer group studies for the evaluation of quality and performance improvement methods. Page 4 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Both schools co-operate with many charities and other local bodies their endeavours to widen public access to the schools and also to optimise the use of their cultural and sporting facilities. The Foundation 3150 benefits from the generosity of a thriving network of Old Leysi8nS, 8nd Old Fidelians, whose close support the Schools greatly appreciate and gladly acknowledge. The Foundation works with a whole range of suppliers, many of whom have long standing relationships with the schools. We greatly value those relationships and work hard to foster a genuine sense of partnership. ststement on compliance with s172(11 Companies Act 2006 The Governors, as Directors, of The Leys and St Faith's Foundation consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Foundation for the benefit of its members as a whole (having regard to the stakeholders and matters sel out in s172111 (a-fl of the Act) in the decisions tsken during the year ended 3 1st July 2020 as set out above. OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES Charitable Objects of The Foundation The Foundation has two objects.. al The provision of high quality education, in particular by the conduct of the two Schools known as The Leys School and St Faith's School. bl The use of the facilities of the Schools, when not required for education, for other charitable purpose5, for the benefit of the local community and the wider public. The religious teaching in the Schools shall be in accordance with that of the Methodist Conference. Mission for The Leys The purpose of The Leys is to play our part in changing the world for the better. We do this through the education we provide, by making a distinctive and positive difference to the lives of our pupils, by being caring and rewarding in developing and managing our staff, by being a responsive and trusted partner to our parents, and by making a beneficial contribution to the wider community. Aims By foundation and slruclure, The Leys is a boarding community. We place great value on being a 'big, small school" in which we give Leysians a rich and challenging school experience which they find intrinsically valuable. By so doing, we seek to ensure, in the spirit of our Methodist founders and our Christian values, that we send Leysians out into the world ready academically, culturally, morally, physically, spiritually and socially - to live fulfilling lives which will make a positive contribution to the fast-changing world which lies beyond our gates. In order to achieve our purpose, we will always aim.. To have a distinctive notion of education, shared and understood by all stskeholders, and built on three foundation stones.. pastoral, academic and wider curricular. Of these three, 'pastoral' is accepted as pre-eminent, because if pupils feel sUPPOrted and confident, they will flourish in all areas of the life of the school. Page 5 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 2. To give Leysians a rewarding, challenging and valuable sch￿1 experience. Our location in the heart of the city of Cambridge allows us unique opportunities to ensure that a Leysian education is distinctive and endlessly exciting. 3. To nurture, within a community which is Christian in its core values, open and liberal in its world view and multicultural in its intake, young people who.. display kindness and sensitivity to those around them., have strong and solid values on which they can base their lives,. can think for themselves., can perform resiliently under pressure,. and are aware and respectful of sustainability, difference and diversity. Vision Our goal is for this ethos to be understood and respected by all pupils, staff, current and prospective parents, visitors and the wider comrnunity. If this is achieved, then the combination of our distinctive ethos and world-class location makes The Leys unique. Thereafter we seek (by the date of (>ur 150th annIVer￿ry in 20251 to be recognised as the leading city boarding school in the country. Mi55ion for St Faith's st Faith's seeks to be a happy, inclusive and a supportive community which welcomes families from all religious and cultural backgrounds. Underpinned by Christian values, we nurture every child as an infinitely valuable and uniquely gifted member of the St Faith's family. We aim to cultivate strength of character, distinguished inter-personal qualities, distinctive leadership ability and a keen sense of social responsibility. Our innovative and future-focused education builds on a strong academic heritage and promotes excellence in all areas. Values The School was originally founded to educate the children of Fellows of The University of Cambridge Colleges,. it subsequently formed a joint foundation with The Leys, an established Methodist school. St Faith's thus enjoys 8 unique, dual heritage resulting in an education characterised by academic excellence and innovation that is underpinned by a foundation of Christian values and principles. Al St Faith's all members of the School community are: Infinitely Valuable - we promote respect for each other., encouraging integrity of character Uniquely gifted we promote high expectations,. encouraging individual excellence Mutually dependent - we promote an attitude of service., encoLJraging personal initiative Continually learning - we promote a spirit of forEiveness' encouraEinE perseverance The Foundation's Public Benefit In meeting the first of its objects the Foundation's Public Benefit aim is lo provide an environment where each pupil can develop and fulfil his or her potential, thus lo help build self-confidence and inculcate desire to contribute to the wider community. The second object provides the opportunity for the Foundation to play an important role within the local community. Page 6 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 In the furtherance of these aims the Foundation Governors, as the Charity Trustees, have complied with the duty under Section 17 of the Charities Act 2011 lo have due regard to the Charity Commission's published guidance concerning the operation of the Public Benefit requirement under the Act. A specified Governor has a responsibility to oversee the public benefit activities of the Schools. An annual report for all Governors is produced to summarise the activities that have been undertaken to benefit the local community and wider public. The awarding of bursaries for the needy is a measurable means of providing public benefit. The Foundation takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the schools provide within the community. This year, the schools awarded £1,019,642 in Bursary Awards or scholarships. Over 2 18 pupils received some financial assistsnce. Within this provision means-tested awards based on a sliding scale according to financial circumstances totalling £822,444 were awarded to 99 pupils. St Faith's have appointed a 'Head of Outreach, to develop further their work with the community. Their partnership with two local maintained primary schools continues to grow and develop. Pupils from both schools have benefitted from lessons provided by St Faith's Heads of Department using specialist facilities and drama suite. Senior managers from the schools have met to share best practice and determine how the partnerships should grow. The link with two Cambridge special schools is also well established. In January, pupils from the schools joined together with St Faith's pupils for a two-day drama workshop, culminating in a performance to parents and staff. The Leys also appointed a 'Head of Outreach, who has developed the link with a local primary school where The Leys has provided 5peci31i5t teaching in dance, drama, hockey, rugby, tennis and cricket. A partnership was established with Cambridge Rugby Club to provide opportunities to 15 and 16 year olds leaving education after their GCSE'S and who were at risk of losing their way in the community. partnership was also established with the Red Hen Project, a local charity which supports the most vulnerable families in Cambridge. The children in these families attend primary schools in North Cambridge. The school provided resources, both physical and digital to support these children. We also provided Covid-safe transport for 12 families lo visit a local wildlife park after their usual annual day trip was cancelled due to Covid, many of the families commented that this was the only time they had left their neighbourhood during the year. Working with the Ollie Feast Trust The Leys also delivered sports activities packs to 48 families to enable them to engage in sporting and leisure activities during the holiday5. The Headmaster recently received the following email of thanks on behalf of the Queen Edith's Community Forum. '1 wanted to let you know how grateful we are lo the three members of your sports staff - Bruno Vincenle, Ashley Trent and Paddy Miller - for running 20 hours of sports provision over the school summer holidays for local children. The sessions were extremely well attended and have generated lots of positive feedback from parents, for example.. My daughter has never had the chance to do organised sport before so it has been lovely watching her try different things she has never seen. As an only child 3 shielding household she has had very little chance to see other children or exercise so it is brilli3nt to have something that gently reintroduces her to both. She did initially start by she couldn't do sports as she is not a boy, but seems to have lost that belief over th& w&eks, the girls winning the lug of war really helped. She especially enjoys the circuits bul has tried football and cricket too. From an organiser's point ol view, Bruno, Ashley and Paddy were a joy lo work with, and their enthusiasm and professionalism reflect really well on the Leys reputation for sporting excellence. Page 7 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Both schools have opened up their facilities to local schoo15 and the community for a wide range of activities. These have included running and hosting the Carnbridgeshire Chess League, the Cambridge Maths Challenge, hockey coaching for I(￿al primary pupils and providing facilities and resources to a range ol local charities. The Leys has been looking for opportunities to help the most vulnerable and disadvantaged children for a number of years. This year the school has partnered with the Royal National Springboard Foundation which is a charity providing disadvantaged and vulnerable Children and young people with the life- transforming opportunity of a fully funded boarding school education. The school welcomes the first recipient of the new Bursary Scherne in Septernber 2020. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE The Impact of Covid-19 on the Foundation The achievements and performance of the schools has been significantly impacted by Covid-19 and therefore we begin this section of the Trustees Report with an overview of actions the ￿h0O1$ took lo cope with the impact of Covid-19 and outline how the pandemic has affected the performance of the schools. Review of the summer term Both schools continued lo operate as normally as possible until the Government formally mandated all schools lo close on 20th March. By this staEe, several international boarders had already left The Leys to ensure they were able to return to their home countries. From the stsrt of the Summer Term the Leys did not open for any on-site teaching, with all teaching taking place remotely. The school wa5 fortunate that the IT infrastructure and digitsl strategy for teaching and learning meant that it could move smoothly to remote teaching and was able to deliver a very high- quality service. Al the end ol the summer term the school orEanised for all those pupils who could easily access the school lo come onto site to meet with their pastoral staff. St Faith's provided on-site teaching for pupils of essential workers during the Easter and Summer holidays and for the Summer Term. As the Government relaxed restrictions, the school began to teach other pupils on site and by the end of the term was educating the majority of pupils at the Sch￿1. A structured online programme of lessons was provided for year groups which had to rerllain at home. The Governing body were regularly updated and organised several additional virtual meetings. The first of these was held on March 315t where Governors discussed and aEree the financial and operational principles for the schools for the summer term and reviewed proposed budgets in light of the challenges caused by Covid-19. The key operational principles were.. To retain parent confidence in the educati(In service, both (>n-site and remotely to ensure the continuity of education. To continue to ensure a value for money provision. Page 8 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 To ensure fee affordability and maintain pupil numbers. To continue to pay full staff salaries. To maintain essential (particularly safety and c(Impliance relatedl site maintenance operations. To ensure the schools were ready to provide a lull on-site educational offering when the crisis was over. To retain a level of business contingency. The schools adopted a phased approach dealing with the immediate crisis and then the longer term potential impact and broader consequences. The key planning assumptions for the summer term were.. The schools to plan to provide only remote teaching for the Summer Term. The crisis would have a serious impact on the economy and therelore on the ability of some parents to pay the fees. The schools c(iuld not charge the usual fees for the Summer Term. The schools would lose most of the miscellaneous income for the Summer Term. The Schools would need to reduce operational spending and stop any project spending. The schools also identified the major financial related risks.. Remote learning provision not sufficient to justify the fees charged for the Summer Term. Parents unable to pay the fees and needing bursary support. Parents paying the fees later than normal. Based on the assumption5 and taking into account the key risks, the schools put together detsiled forecasts which took into account a reduction in fee income, a reduction in other income, operational savings, income frorn the Government furlough scherne and an increase in the bursary provision. The Leys was forecast to break even for the year and St Faith's to make a small surplus. The Governors reviewed a variety of actions to mitigate any cash flow challenEes and agreed a priority order of actions if they became necessary. Governors were regularly kept informed of the performance of the schools and formal rlleetings were held on 12m May and then on 22￿ June to review progres5. At the rmeetings, both schools were able to report how successfully they had manged to provide a high-quality educational provision throughout the term and the positive feedback they had received from parents. The Leys had provided all the teaching remotely, St Faith's had increasingly provided on-site leaching as the government allowed primary schools to bring children back onto Site. Both schools had managed to work closely with their respective parent bodies. The schools received very few queries about the fees charged for the summer term with the vast majority of parents paying on time. The number of parents requiring additional financial support was well below the forecast level and several parents contributed towards a new Covid hardship fund which had been set up. Page 9 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 The schools experienced no challenges with managing the cash flow and did not need to consider taking any other actions. The schools also reviewed the key covenant conditions lor the bank loan and mortgages. There were no concerns about breaching the conditions. Planning for 2020121 For the 2020121 academie year Governors made the following planning decisions and a5sumptions'. The fees would not rise for 2020121 The staff would not receive any Inflationary increase for 2020122 1. There would be potential for a drop in pupil numbers. There would be an increased requirement for bursary support. There would be a significant fall in miscellaneous incorne. The schools would need to reduce operating costs where possible. All project spending would be on hold. Actual performance for 2020121 Both schools have started the new year with hiEher pupil numbers than estimated in January when the original budget proposals for 2020121 were put together. Income from other sources is significantly down and forecast to be so lor the whole year. On the expenditure side, the school have reviewed and reduced many operation81 budgets and have decided to delay any project spending until there is more certainty. Detailed financial forecasts have been put tOEether for 3 planning scenarios including another full lockdown. All these forecasts demonstrate that the schools will be able to cope with the current crisis and should not lace significant cash flow challenges. The schools have also reviewed the key covenant conditions for the bank loans and mortgages. There are no concerns about breaching the conditions in 2020121. Planning for 2021122 LookinE to the medium term, the key factor will be the pupil numbers. The day market for both schools remains very strong and there are no indicators that this will change, indeed due to the challenges faced by local maintained schools during the lockdown there has been an increase in enquiries. The Leys is dependent on the boarding market and it is likely that the market for International boarders could be impacted by the current crisis. It is not Po￿lbIe at this stage to accurately forecast the potential impact on boarding numbers for 202 1122. The Leys has invested in several new initiatives to promote International boarding and are pleased with the recent interest from prospective parents. The demand for 202 1122 is encouraging. Both schools anticipate that miscellaneous income will slowly begin to increase again. Page 10 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Detailed planning is about to begin on the proposed school budget5 for 202 1122. Both schools will be taking a cautious approach to estimating pupil numbers and other income. Objectives for the year for The Leys In last yearfs Trustees, Report, the following objectives were identified for the next five years= l. Continue our focus to ensure that The Leys is recoEnised as a centre ol excellence for two core academic objectives.. the quality of the continued professional development of our academic staff and the quality of teaching and learning at The Leys. 2. Continue to offer a wide range of extra-curricular activities and aspire to high standards both in the wider CLJrriculum and in the all-round personal development of the pupils. 3. Continue to build links with feeder schools in the independent and maintained sectors and develop our marketing Strategies to keep the school full. 4. Continue to strengthen the positive impact of the school in terms of benefit to the wider community, not least through the future provision of fully-funded places for the most disadvantaged children. 5. Continue to develop the use of Information Technology both as a teaching tool and to enhance the administration of the Foundation as a whole. 6. Continue to focus on the future development of the campus through the implementation of a master plan for the site. 7. Continue to develop and enhance our reputation for excellent pastoral care. Review of the operational performance of The Leys 2019-20 The school was Inspected in late 2018 and was found to be regulatorily compliant throughout. We are now preparing for a forthcoming inspection though the COVID-19 pandemic has made the timing of future inspections uncertain. Staff training and the quality of teaching and learning continue to be key priorities. Academic results and work ethic within the School remain strong. Our pupils excelled themselves al A level and at GCSE, despite the huge uncertainty regarding how results would be calculated. The School completed the 'Centre Assessed Grades, process in a professional and timely way. Whilst the School was in lockdown, our online remote provision was widely praised by pupils and parents. Colleagues reacted with admirable speed and adaptsbility to the new systems and the previous work done on Google Classrooms and other IT training meant that our usual platforms operated effectively during the lockdown. An ISTIP inspection during 2019- 20 confirmed that the School is highly regarded in its induction of teachers new to the profession they in turn feel extremely well supported in their induction period. Pagell THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 2. The Leys continue5 to offer a wide range of extra-curricLJlar activities and high achievement 15 a feature of the wider curriculum, both individually and in terms of tearn and group perforrnance levels in sport, the performing and creative arts, the Combined Cadet Force and the Duke of Edinburgh Scheme. Consequently, the all-round personal development of the pupils remains a prominent and very successful focus. 3. A wide variety of outreach opportunities has been created for feeder schools in the independent and maintained sectors. The School roll was sustsined at around 560 pupils. Parental reviews and surveys continue to indicate very high levels of satisfaction with the education offered to our pupils and despite the COVI D-19 pandermic, demand for plac￿ rernains high and the school remains full. 4. The School is devoting more resources than ever before (including dedicated, timetabled staff timel to our public benefit activities. The details are included earlier in the report as part of The Foundation's public benefit. 5. We have created a New Vision Studio which allows teachers lo experiment with the latest cutting edge technology in Augmented Reality and Virtual Reality so that this can gradually be incorporated into our teaching and learning. We have completed the task of installing uniform Audio Visual Provision across the entire school campus, with over 75 units being expertly installed by the ICT and Maintenance Departments. There can be few if any schools who can claim that their teachers have such high-quality, uniform AV provision. The work we have done in recent years on Google Classroom and other plattorms meant that we were able to move quickly and effectively to remote leaching and learning when the School was forced by lockdown into closing physically. Surveys of staff, pupil and parents, as well as informal feedback from all the above, indicate that our provision was highly regarded by the overwhelming majority of stakeholders. 6. Work on the Masterplan continues and further refurbishments and enhancements have taken place, however, all major project spending was halted for the summer of 2020 in order to make allowance5 for the financial impact of COVID-19. 7. The school revised its pastoral and safeguarding policies in the light of COVID-19 so that we continued to provide excellent pastoral care even during lockdown and the additional support we offered to our most vulnerable pupils was highly regarded and praised by parents. Objectives for the year for St Faith's l. Continue to provide an excellent all-round education with a future-focus and strong academic core. 2. Continue t(> ensure that pupils, personal development is excellent, providing them with a strong foundation on which to build in the future. 3. Maintsin the current school roll. Page 12 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 4. Continue to develop good links with the community, including partnerships with maintained schools. 5. Increase the provision for means-tested bursaries. 6. Lead the introduction and development ol Engineering as a curriculum subject across maintained and Independent schocils in the UK and abroad. Review of the operational performance of St Faith's 2019120 l. Curriculum development continued to be a prominent feature of the School's all-round provision. Engineering and Computing, for example, were key aspects of the academic education and together with English, Maths, Science and Humanities formed a strong academic core. Languages were also important.. Spanish wa5 taught from age 4, Latin from age 9, French from age 10 and intensive courses of Mandarin, Arabic and German were provided for Year 8 pupils. Once again, over 90 10 of Year 8 pupils gained places at their first choice senior school, with 29 scholarships being awarded in the process., approximately two-thirds of these scholarships were for Art, Drama, Music and Sport and the remainder for core academic subjects 2. During the year, character education was further embedded in to the curriculum, with teachers using this as a point of focus in lessons. Assemblies also focussed on the importance of kindness, consideration and the concept of social responsibility. Additional rewards were introduced to recognise exceptional kindness. The results of this work have been tangible, with the number of incidents of unkindness and bullying decreasing and measurements of pupils, self-esteem and happiness rising. 3. The school roll has been maintained and demand for places remains very high. 4. We have continued to develop our link with local maintained schools and the community. The details are included earlier in the report as part of The Foundation's public benefit. 5. The budget for bursaries wa5 significantly increased, by 20 /•, to £243k. 6. In 2020, the St Faith's Engineering programmes of work were published jointly with the Independent Association of Prep Schools IIAPSI. These schemes provide detailed lesson plans for the teaching of Engineering lor pupils aged 7 to 13. They are being provided free of charge to any slate maintained or IAPS school that requests them. St Faith's continues to host and run National IAPS Engineering courses for schools wishing to introduce this new subject to the curriculum. We estimate that as a result of these courses, the publication of the schemes of work and the informal advice provided, we have assisted over 100 schools in the introduction of Engineering. Further courses are scheduled as we aim to 'roll out, Engineering across the state and independent sector. Page 13 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 FUND RAISING PERFORMANCE AT THE LEYS 2019120 We are, as ever, very grateful for the support from our community of Old Leysians, parents and friends of the School. All fundraising is carried out through the Development otFice. This is in the form of telephone campaigns, direct mail and face to face solicitation. The Office is staffed by professionals who undergo continuous peer review and indLJStry standard training. The School is registered with the Fundraising Regulator and staff are members of IDPE, which though not a regulated body does provide best practice for the industry and adhere to all ICO regulations. The activities and performance of the Office is monitored by the Headmaster and Governors. The Off ice saw a number of staff changes this year with Fiona Slot, the Alumni Relations Off icer and Old Leysian Society Secretary, leaving in December after 16 years of service and Thomas Northcote, Head of Development, leaving in March. Due to the Government-imposed lockdown restrictions recruitment for these positions was delayed leaving only one full-lime member of staff in the Office from March lo July. A new Director of Development has now been recruited and will take up post in August 2020. The Development Office has complied with all requirements of the Fundraising Regulator and ICO and there have been no complaints received by the School. The School only contscts those with a genuine connection with The Leys and do not cold calllma5S rnarket. We screen people lor TPS when conducting telephone fundraising and exclude as appropriate. All those aged over 80 are excluded from fundraising activity unless they opt in as are those under the aEe of 27. All those that request no contact are marked such and receive no communications. All other communications are measured and appropriate given the individuals relationship with the School. The Development Office raised a total of over £510,000 from 264 donors in philanthropic gifts in the financial year of 2019120. The regular giving programme has continued well, and August 2019 saw another Telephone Campaign which raised over £60,000 in pledges to The Leys in regular gifts. FollowinE on from the introduction of the new GDPR legislation, we are still, like many other educational inslitulions, are relying on 'legitimate interest" lo contact members of our community by post and telephone, although we are seeking consent from some individuals to send the Newsletter electronically as the relevant legislation is stricter regarding electronic communication. To date we have around 2000 consents to send the OL News electronically. All data is held securely on our alumni and supporter database which is accessible to limited members of the school staff. All staff in the Development Office have acce￿ to the database and have undertaken appropriate industry standard data protection training. INVESTMENT PERFORMANCE AGAINST OBJECTIVES The Governors, objective is lo achieve a lolal rale of return target that is equivalent to the median of the Wealth Management IWMI index for Charities judged on a 3 year rolling basis. The Sutvey ceased to exist in April 2016 and performance is now compared to the MSCI WMA Balanced Index, as a market comparator and the A￿et Risk Consultsnts IARCI Charity Steady Growth Index, as a peer groLJP rneasurement. On a rolling 3 year basis to July 2020, the net total rate of return of the fund was 23.6 / compared with the MSCI WMA benchrnark of 8.2 10 and ARC Steady Growth Index of 7.0 /.. On a rolling Page 14 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 5 year basis the net total return of the fund was 53.4/0 compared to 32.0/. for the MSCI WMA benchmark and 25.8 /. for ARC. The net total rate of return of the fund frorn August 2019 to JLJIY 2020 was 1.7 10 compared with a totsl decline of the MSCI WMA benchmark of-4.9 10 and -4.2 /. for ARC. During the year, across the individual asset classes, save for Fixed Interest investments, the portfolio enjoyed a uselul outperformance across all sections of the list. The largest equity exposure remains within the domestic UK market, although this was reduced during the year from 3 1.9 /. to 25.5 /.. Here returns were relative, with a decline of -8.5/0 ahead of a decline of 17.7 /.Vo in the FTSE All Share Index. Further afield, the significant contributor to the capitsl return was succes5 in North America, where 25 /0 of the investments are held with a return of 10.2 /0 Usefully ahead of 4.4 /. for the FTSE All World North American Index. The weighting in technology and medical related stocks within our North American holdings also explains the significant outperformance over the lonEer term with Apple, Visa, T-mobile and Idexx all lealuring strongly, delivering returns in excess of 90 /0 over the rolling 3 year period. In the case of Apple, the 3 year return is 198 /.. The managers continue to expect that the uncertainty surrounding Brexit, the US election, Covid when combined with growing friction on global trading relationships are likely to contribute to reasonable levels of volatility over the next twelve months., the portfolio remains suitably well-diversified to withstand a reasonable degree of such capital volatility. In terms of income, as a result of companies preserving cash on balance sheets to cope with the challenEes presented by Covid, the fund managers are factoring in a reduction of 15 - 20 /0 in the twelve months ahead. They are hopeful that this marks a low point and that dividends will resume towards the end of 2021 and into 2022. The Investment Committee continues to monitor the activities of the portFolio Managers and is satisfied with Quilter Cheviot's performance. ENVIRONMENTAL REPORT The Foundation welcomes the opportunity to report on the work both schools have been involved in to reduce our impact on the environment and educate our pupils on the importance of acting in a sustsinable manner. Both schools have committed a great deal of time and resources over recent years. St Faith's were the first Independent school winner of the Ashden Sustainability Award and have worked with a number of schools in the state and independent sectors to asslst them with putting together sustainability action plans. Total ener8y use and greenhouse emissions. Totals Gas Usage 4,716,342 KWH Electricity Usage 1,492,949 KWH Transport 202,000 litres Total Greenhouse EmisSlOnS Greenhouse Emissions (KgC021 867,807 615,170 623,589 2,106,567 Intensity ratio emissions per pupil 2,106,567 1132 1861 Page 15 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 The data ha5 been derived from the energy rnonitoring systems at the schools and checked with the invoice information. The fuel consumption has been calculated from invoice data. The intensity ratio looks at the emissions per pupil as the number of pupils is the main driver of our emissions. We also hope that by better educating our pupils we can drive the emissions per pupil down and this could become a key target which would motive the pupils. Specific actions by the schools The schools have recently focussed on their lighting with the installation of LED lighting where appropriate, the introduction of low energy lighting, the updating of external lighting to be more efficient, including the introduction of solar powered lighting where possible. An evaluation of kitchen energy usage has led to changes to working practices and the replacement of energy inefficient equipment. Both schools use modern BMS systems to moff itor heating systems and have gradually reduced run times and the average temperature settings. In addition, they have implemented heating system a￿et life-cycle reporting. Changes have been made to waste collection to encourage recycling and greatly reducing the waste going to landfill. In terms of transportation, the schools have installed additional covered cycle parking and also electrical car charging points for use by the staff. There is an ongoing programme to improve the energy eff iciency of the buildings with the installing of roof spaces and pipework together with the replacement of single glazed windows with double glazing. The master plans lor future site developments ensure a coherent and future focussed energy delivery plan that reflects renewable energy incentives, building improvement and longer-term sustainability. FINANCIAL REVIEW Results for the year The income generated by the Foundation reduced by £1.5M from £25.8M to £24.3M. The fall was totally due to the impact of Covid-19 on the income for the Summer Term. Both schools reduced the fee they charged their parents because they could not provide the full education experience due to the impact of Covid-19 restrictions, with the majority of teaching being delivered remotely. The schools also did not generate any income from letting activities which all had to be cancelled. To cope with this fall in income the schools reduced their operating costs and delayed planned spending on capital improvement projects which were not essential. In addition, the depreciation costs fell significantly as some of the boarding house refurbishments had been fully depreciated. The surplus generated increased from £IM to £1.4M. Page 16 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Reserves levelp policy and financial viability At the Balance Sheet dale, the Foundation's total reserves were £38.5M 12019 £37.2MI including £3,75M 12019 £3.8MI of endowed funds, £3.6M 12019 £3.6MI of expendable endowed funds, £1.55M (£2019 £1.2MI of restricted funds and £29.6M 12019 £28.5MI of unrestricted funds. These reserves are represented by fixed assets held for charitable purposes. Within the restricted funds,- £406k was desigllated to provide fillancial support for parents impacted Covid-19, £250k was designated towards ctssts ol the H.S.E. incident and £13 1 k was designated for the Gift of Education. Ideally, the Governors would like a General Fund of free reserves equivalent to 6 weeks unrestricted expenditure lo meet its immediate objectives and protect its current activities, including the provision of adequate working capital. The Governors recognise that due to the impact of Covid-19 on the income for the Summer Term that was not Possible to generate this level of free reserves and whilst Covid-19 continues to impact the Foundation, this will continue to be the case. The Governors are confident they have mitigation plans in place and therefore the lack of free reserves is not a significant issue. The Foundation monitors its cash flow carefully. There is a bank overdraft facility of £500K and an understanding with the bank that the facility can be increased lo £1 M if needed. A variety of scenarios have been modelled for 2020121 and the Foundation has a number of mitigating actions that could be taken if required. The Governors feel confident that the Foundation will not have any serious cash flow challenges. Going concern At the time ol approval of the Annual Report and Accounts, the COVID-19 pandemic continues to evolve and the long-term impact on the Foundation, in common with other businesses, is unknown. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils together with the management of expenditure should income be reduced and have undertaken various scenario exercises settling on two which include school operational for the year and a closure ol one month. The financial analysis demonstrates that even under the most pessimistic scenario the Foundation would not experience any significant financial problems and would be able to manage the cash flow implications without having to take any further mitigating actions for the year to 2021. In looking ahead lo July 2022 there are a range of additional mitigating actions which The Foundation could tske to improve the financial situation if required. There are currently significant cash balances and an investment portfolio should additional liquidity be required through this period of uncertainty to meet the liabilities as they fall dLJe for the Foundation as a whole. The Foundation does not anticipate any material reduction in prospective pupil numbers above that which the Foundation has used for the purposes of financial modelling and forecasting. Accordingly, the Governors believe the School's financial resources are sufficient to ensure the School will continue as a EoinE concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial ststements on the going concern basis. Page 17 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 PRINCIPAL RISKS AND UNCERTAINTIES The Foundation's Governors are responsible for the management of the risks laced by the Foundation. Detailed considerations of risk are delegated to the individual school commillees who are assisted by the senior management teams. Risks are identified, assessed and controls established throughout the year. The top ten risks facing the school is a standing item at all committee meetings. A full review of the charity's risk management process is undertaken on an annual basis at a full Governors, meeting. The key controls used by the Foundation include formal agendas for all committee and board activity, comprehensive strategic planning, budgeting and management accounting, an established organisational structure and lines ol reportinE, formal written policies, clear authorisation and approval levels and vetting procedures as required by law for the protection of the vulnerable. Through the risk management process established by the Foundation, The Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reascinable but not absolute assurance that major risks have been adequ8tely managed. Not surprisingly, the Governors consider the potential impact of the current Covid-19 crisis as the major risk facing the Foundation. The schools have considered a number ol different scenarios and assumptions and are confident that they have strong mitigating actions in place. Both schools coped exceptionally well with the challenges during the Summer Term and have started 202012 1 with full pupil rolls. The schools are not complacent and continue to plan for a range of wssible impacts caused by the current crisis. FUTURE PLANS The operational plans for the schools for the next five years show 8 good deal of continuity from previcius years, though the reality of dealing with COVID-19 and the likelihood that thi5 will continue to be a priority in the coming years means that the first priority of the schools will be to build resilience to potential external disruption le.g. through a pandemic) in terrns of the acadernie, pastoral and wider curricular offerings so that, even in extreme, unusual and unpredictable circumstances, we can continue to offer a distinctive education of extremely high quality whilst protecting the health and safety of all members of our schools, community. In addition, the operational plan for The Leys includes the following.. l. Continue our focus to ensure that The Ley5 is recognised as a centre of excellence for two core academic objectives.. the quality of the continued professional developrnent of our academic staff and the quality of teaching and learninE at The Leys. 2. Continue to offer a wide range of extra-curricular activities and aspire to high standards both in the wider curriculum and in the all-round personal development of the pupils. 3. Continue to build links with feeder schools in the independent and maintained sectors and develop our rmarketing strategies to keep the school full. 4. Continue to strengthen the positive impact of the school in terms of benefit to the wider community, not least through the future provision of fully-funded places for the most disadvantaged children. Page 18 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 5. Continue to develop the use of Information Technology both as a teaching tool and to enhance the administration of the Foundation as a whole. 6. Continue to focus on the future development of the campus throuEh the implementation of a master plan for the site. 7. Continue to develop and enhance our reputation for excellent pastoral care. The operational plan for St Faith's for the next five years includes the following.. l. Continue to provide an excellent all-round education with a fulure-locus and strong academic core. 2. Continue to ensure that pupils, personal development is excellent, providing them with a strong foundation on which to build in the future. 3. Maintain the eurrent school roll. 4. Continue to develop good links with the community, includinE partnerships with maintained schools. 5. Continue to increase the provision for means-tested bursaries. 6. Lead the introduction and development of Engineering as a curriculum subject acr05S maintained and independent schools in the UK and abroad. Page 19 ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** - - - - - ___________________________________________________________________________ - - - - - _____________________________________________________________________ financial statements or our knowledge obtsined in the audit or otherwise appears to be materially rnisstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstaternent in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have llothing to rewrt in this regard. Opinions on other matters prescribed by the Companies Acl 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report and the strategic report prepared lor the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements., and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requir￿ LJS to report to you if, in our opinion.. the parent company has not kept adequ8te accounting records., or the parent company financial ststements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remLJneration specified bylaw are not made- or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees deterrnine 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 group's or the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the goinE concern basis of accounting unless the trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial ststements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of a￿urance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material MI￿￿tement when it exists. Misstatements can arise from fraud or error and are considered material il, individually or in the Page 22 aggregate, they could reasonably be expected to influence the economic decisions of users taken Dn the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at= www.frc.or auditorsres onsibilities. This description fcirms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, lor this report, or for the opinions we have formed. Tina Allison Senior Ststutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date Page 23 _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF ACCOUNTING POLICIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Critical accounting judgements and key sources of estimation uncertainty In the application of the accounlinE 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 sourc￿. The estimat￿ 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 TrLJStees, no assumptions conceming the futLJre or estimated uncertainty affecting asset5 or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 1.1 S¢hool fees Fees receivable are ststed after deducting allowances, scholarships and other remissions granted by the Schools, but include contributions received from Trust Funds. 1.2 Donations, legacies, grants and other voluntsry income Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit lo the Schools is considered probable. Donations received for the general purposes of the Schools are credited to unrestricted funds, lo distinguish them from direct school income. Donations for purposes restricted by the wishes ol the donor are taken to Restricted Funds where these wishes are legally binding on The Foundation Trustees, except that any amounts required to be retained as capital in accordance with the donorfs wishes are accounted for instead as Endowments, permanent or expendable accordinE to the nature of the restriction. Grant income is recognised when there is evidence of entitlement, the receipt is probable and the amount can be reliably measured. There were no perforrllance related conditions attached to grant income received. 1.3 Investment Income Investment income from dividends, bank balances and fixed interest securities is accounted for on an accrual's basis. 1.4 Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT Is included with the item of expense to which it relates. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs cornprise the costs of complying with constitutional and ststutory requirements. Page 28 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF ACCOUNTING POLICIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 1.5 Intra-group Intra-group sales and charges between the Foundation and its subsidiary are excluded from trading income and expenditure. 1.6 Pension costs The School contributes to two pension schemes as follows.. lal The Teachers, Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the Foundation's share of the underlying assets and liabilities of the Teachers, Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The School's contributions, which are in accordance with the recomrnendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. Ibl The Foundation Group Personal Pension Plan - This is a defined contribution group personal pension plan for both The Leys and St Faith's schools non-teaching staff with Standard Life Assurance Company Limited. Employers, pensions costs are charged in the period in which the salaries to which they relate are payable. 1.7 Tangible fixed assets All expenditure on individual tanEible fixed assets over £2,000 is capitalised in the balance sheet at cost. Other expenditure on equipment incLJrred in the normal day-to-day running of the two SCh￿IS is charged to the Statement of Financial Activities as incurred. 1.8 Depreciation Depreciation is provided on a straiEht line basis at rates which are suff icient to write the tangible fixed assets down to their eslimaled residual value over their estimated useful lives. The depreciation rates are= Per Annum Freehold land Freehold buildings off site rebuild cost used for depreciation Freehold buildings on site new build cost used Freehold buildings on site totsl refurbishment Buildings on leasehold land Plant and machinery Fixtures, fittings and equipment 2Y. 7 - 20 years Length of lease 10- 20Y. 7-34/ During the year the Trustees reconsidered the useful economic life of some of the building assets which has resulted in a change to the estimated lives of these assets and them being written off over an extended time period. Boarding houses refurbishments will be written off over 15 years. Page 29 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF ACCOUNTING POLICIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 1.9 Investments Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the 'ownership" of the underlying assets. Investment in the subsidiary is valued at cost less provision for impairment. i.io stocks Stocks have been valued at the lower of cost and estimated selling price less costs lo selll estimated profit margin. 1.1 l Advanced fee scheme Amounts received under the school's Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as CLJrrent liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years. 1. 12 Financial instruments The Foundation has financial assets and financial liabilities of a kind that quality as basic financial instruments. Basic financial instruments are initially recognised at transaction value and SLJbseqLJently measured at the present value of future cash flows. Financial assets held at amortised cost comprise bank and cash in hand, together with trade and other debtors. Financial liabilities held al amortised cost comprise bank loans, trade and other creditors. Investments including cash held as part of the investment portfolio are held al fair value al the Balance Sheet date, with gains and losses being recognised within income and expenditure. 1. 13 Fund accounting The charitable trust funds of the Foundation are accounted for as unrestricted or restricted income, or as endowment capitsl, in accordance with the terms ol trust imposed by the donors or any appeal to which they rmay have responded. Endowment funds are further sub-divided into permanent and expendable. Unrestricted income belonES to the Foundation's corporate reserves.. spendable at the discretion of the Governors either to further the Foundation's Objects or to benefit the Schools, themselves. Where the Governors decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer lo the appropriate designated fund. Restricted income comprises gifts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor. Permanent endowment arises where a donor intends the gift to be retained permanently for use by the Foundation for its financial benelit li.e. by Investment). 11 the donor or the terms of an appeal has restricted the purpose for which the gift or any income from it is to be used, any part converted into income for spending will accrue to the appropriate restricted fund. The income on the permanent endowed funds held is used to pay for scholarships and bursaries as per the wishes of the donors. Page 30 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF ACCOUNTING POLICIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Expendable endowment funds are accounted for similarly, except that all capital can be converted into Income for spending either at the Governors, own discretion or else upon the happening of some event contemplated by the donor. 1.14 Leases Rentals payable under operating leases are charEed lo the Statement ol Financial Activities on a straight-line basis over the lease term, even if the payments are not made on such a basis unless the rental payments are structured to increase in line with expected general inflation, in which case the Foundationlgroup recoEnises annual rent expense equal to amounts owed to the lessor. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. Page 31 **12** _____________________________________________________________________ THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 ANALYSIS OF EXPENDITURE 2020 staff costs other Depreciation costs Total £'ooo £'ooo £'ooo £'ooo Costs of raising funds.. Trading costs FundraisinE for voluntary resources Financing costs under advance fee contracts Financing costs Bank and mortgage interest Investment managers charge 57 92 150 84 213 176 168 64 147 29 168 64 147 29 Total costs of raisinE funds 149 642 797 Charitsble activities: Education and grant making Teaching Welfare Premises Support costs and governance 10,745 1,051 913 1,916 1,465 1,633 1,703 845 119 77 1.320 12,329 2,761 3,936 2,761 Schools, operating costs Grants, awards and prizes 14,625 5,646 312 1,516 21,787 312 Cost of charitable activities 14,625 5,958 1,516 22,099 Totsl expenditure 14.774 6,600 1,522 22,896 2019 Staff costs Other Depreciation costs Total £'ooo £'ooo £'ooo £'ooo Costs of raising funds.. Trading costs Fundraising for voluntary resources Financing costs under advance fee contracts Financing costs Bank and mortgage interest Investment tnanagers charge Totsl costs of raising funds 61 119 208 59 275 178 156 71 172 38 704 156 li 172 38 890 180 Charitable activities Education an(1 grant making Teaching Welfare Premises Support costs and governance Schools, operating costs Grants, awards and prizes Cost of charitable activities Total exp&nditure 10,065 1,030 911 1,807 2,206 1,882 2,282 994 90 78 2,219 12,361 2, 990 5,412 2,801 13,813 7,364 358 2,387 23,564 358 13,813 13,993 7, 722 8,426 2,387 2,393 23, 922 24,812 Page 33 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 ANALYSIS OF EXPENDITURE ICONTINUEDI 2020 £'ooo 2019 £'ooo Governance expenditure includes: Auditors, remuneration for audit services Reimbursement ol personal expenses to Governors- travel costs 20 19 20 19 Total staff costs comprised.. The aggregated payroll costs for the year were a5 follows.. Wages and salaries Social security costs Pension contributions 11.627 1,148 1,999 14,774 11,386 1,127 1,480 13,993 Aggregate employee-benefits of key management personnel 1,581 1,501 The average number ol the Foundation's employees during the year was 395 12019 - 4051 of whom 167 12019 - I631 were teaching staff and the rest were support staff. None of The Foundation Trustees received any remuneration, or other benefits from the School or any connected organisalion. Two Trustees have close relatives which have worked for the Foundation through the year, one worked in the school holidays and was paid via payroll the other relation works as a teacher and is paid via payroll. During the year a total of £133 12019 - £1901 was reimbursed to 1 12019 - 31 Foundation Trustees for travel expense5. The Foundation received £50012019 £5,931 l in donations from its Trustees during the year which were for the specific purpose of the gift of education bursary. The number of higher paid employees was.. 2020 No. 2019 No. Taxable emoluments band.. £ 60,001 - £ 70,000 £ 70,001 - £ 80,000 £ 80,001- £ 90,000 £ 90,001 - £100,000 £ioo,ooi - £iio,000 £140,001 - £150,000 £160,000 - £170,000 £170,001 - £180,000 13 13 The total employer pension contributions for higher paid staff was £2 17, 170 12019 £167,258). During the year there were I termination payment made £33,07512019 £01. There was nil outstsnding at the year end. Page 34 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 TANGIBLE FIXED ASSETS FOUNDATION AND GROUP Foundation Subsidiary Fixtures, Plant and Fittings and Machinery Equipment £'ooo £'ooo Land and Buildings £'ooo Foundation Fixtures and Total Equipment £'ooo £'ooo Group Total £'ooo Cost lor frozen valuation) l August 2019 Additions Assets no longer in use 57,529 292 1,032 45 1551 2,677 167 11241 61.238 504 11791 62 61.300 504 1179) As at 31 July 2020 57,821 1,022 2,720 61,563 62 61.625 Depreciation As at l August 2019 Charge for year Assets no lollger in use 22,904 1,166 662 90 1551 1,611 260 11241 25.177 1,516 11791 33 25.210 1,522 (179) As at 31 July 2020 24,070 697 1,747 26,514 39 26,553 Net book value 31 July 2020 33,751 325 973 35,049 23 35,072 31 July 2019 34,625 370 1,066 36,061 29 36,090 Land and buildings at cost comprises the following at 31 July 2020. 2020 £'ooo 2019 £'ooo Freehold Long lease Ito 21191 44,721 13,100 44,429 13,100 57,821 57,529 The freehold and leasehold properties are insured for £145,514,93212019.. £141,002,840). Heritsge Assets (The Foundation and its treasure5) The Foundation has a substantial endowment of assets gifted or bequeathed on trust lor retention in perpetuity lo form a permanent record ol the Schools, history and which are required to be preserved lor their educational value to the Schools and, through reasonable public access to them, as a contribution to the nation's culture and education both nation211y and locally. These comprise a unique collection of paintings depicting The Leys School's previous eight heads since its founding in 1875, together with many other artefacts whose intrinsic value is also bound up with The Leys School's history. Most of these are irreplaceable originals to which no reliable value can be attributed. Accordingly, these assets are not capitalised in the financial ststemenls. Page 35 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 INVESTMENTS GROUP AND FOUNDATION Permanent Endowmenv Expendable Endowed Total £'ooo £'ooo 7,165 10,797 699 1,086 17441 11,1371 1591 1901 25 39 Unrestricted £'ooo 2,891 309 13141 1251 li Restricted £'ooo 741 78 1791 161 Balance l August 2019 Additions at cost Disposal proceeds Investment losses Change5 in cash awaiting investment Closing market value 31 July 2020 2,872 737 7,086 10,695 2020 £'ooo 10,613 82 10.695 2019 £'ooo 10,754 43 10,797 Investments comprise: Investments Cash The above investments are in listed stocks. The investment holdings at the year-end were UK £5.6m and overseas £5. 1 m. DEBTORS Group 2020 £'ooo Foundation 2020 £'ooo 2019 £'ooo 2019 £'ooo Amounts falling due in less than one year: Fees Sundry debtors Prepayments Due from subsidiary undertaking 58 43 472 547 289 305 58 40 469 138 547 237 304 170 573 1,141 705 1,258 io. CREDITORS 2020 £'ooo 2019 £'ooo 2020 £'ooo 2019 £'ooo Amount5 falling due within one year Trade creditors Taxation and social security Loans and mortgages Other creditors Accruals Deposits from parents Deferred income - fees in advance of term Deferred Income advance fees (see note 121 294 293 640 256 210 1.481 489 4,688 696 302 640 329 297 1,483 536 6,426 289 289 640 256 204 1.481 489 4,688 676 291 640 329 292 1,483 536 6,426 8,351 10,709 8,336 10,673 Pupil fees deposits the lotsl held in relation to fee deposits of £1,481,267 is included above. In the normal course ol business, the expected repayment of these amounts will be £341,572 within one year and £1,139,695 after more than one year. Page 36 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 ii. CREDITORS AMOUNTS FALL DUE AFTER MORE THAN ONE YEAR 2020 £'ooo 2019 £'ooo Amounts falling due after more than one year Deferred income- fees in advance scheme (see note 121 Bank loan and mortgages, 906 3,805 913 4,445 4,711 5,358 *The mortgage is secured on The Leys site with inter￿t payable at l°A above LIBOR, the repayment period is over 20 years from March 2012. The Bank loan is for the building of Great Hall, a total of £4.5m has been drawn down from Svenska Handelsbanken, also secured on The Leys site. The repayment period is over 10 years from November 2013. A second mortgage was taken out in July 2017 over a period of 20 years secured on the Leys site to purchase a property to be used for staff accommodation. 12. ADVANCE FEE PAYMENTS Parents may pay to The Foundation several years of tuition fees in advance. The money may be returned, subject to specific conditions on receipt of one term's notice. Advance fees are due to be applied as follows: 2020 £'ooo 2019 £'ooo After 5 years Within 2 to 5 years Within I to 2 years 339 567 229 684 906 4.688 913 6.426 Within l year 5,594 7,339 The movements during the year were as follows.. At l August 2019 New contracts during the year Amounts accrued to contracts Amounts utilised in payment of fees to the school 7,339 4,921 168 16.834) 6,757 6, 768 156 (6,342) Balance at 31 July 2020 5.594 7,339 Page 37 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 13. OPERATING LEASES The future rllinimum lease payments under non-cancellable operating leases are as follows.. GroLJP and Foundation 2020 £'ooo 62 136 25 2019 £'ooo 69 136 25 Within one year Between one and five years Over five years The total lease payments recognised in the Statement of Financial Activities amounted to £89,922 12019.. £71,063). 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS The net assets are held for the various funds and advance fees a5 follows.. 2020 Fixed Assets £'ooo Net Current Investments Asset511li3bilitiesl £'ooo £'ooo Long Term Total £'ooo £'ooo Permanent endowment funds Expendable endowed funds Restricted funds Unrestricted funds 3,618 132 3.750 3,468 737 1,979 141 813 13,6541 3,609 1,550 29,592 35,072 13,8051 35,072 9,802 12,5681 13,8051 38,501 Advance fees 893 13 19061 35,072 10,695 12,5551 14,7111 38,501 2019 Fixed Assets £'ooo Net Current Investments Asselsllliabilitiesl £'ooo £'ooo Long Term Total £'ooo £'ooo Permanent endowment funds Expendable endowed funds Restricted funds Unrestricted funds 3,658 122 3,780 3,507 741 1,991 131 500 15,1141 3,638 1,241 28,522 36,090 14,4451 36,090 9,897 14,3611 14,4451 37,181 Advance fees 900 13 19131 36,090 10,797 14,3481 15,3581 37,181 Page 38 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 PERMANENT ENDOWED FUNDS 2020 l August 2019 £'ooo Investment Losses 31 July 2020 £'ooo Income Expenditure £'ooo £'ooo £'ooo Endowment 3, 780 1301 3,750 The Permanent Endowed funds were set up with shares donated by Thomas R Fern and monies from school fundraising. The endowments were further increased with a legacy from the late Gerald A France. The funds were set up to provide funding for scholarships. In 2007 a gift of £50,000 was received to establish an endowed fund 'The Suresh Karthingesu Fund, to provide annual bursary support. Only the income is drawn down which helps fund Bursaries. 2019 l August 2018 £'ooo Investment Gains £'ooo 31 July 2019 £'ooo Income £'ooo Expenditure £'ooo Endowment 3,571 209 3,780 16. EXPENDABLE ENDOWED FUNDS Transfers and Investment Losses 2020 l August 2019 31 July 2020 £'ooo Income Expenditure £'ooo £'ooo £'ooo £'ooo Scholarships 3,638 1291 3,609 The expendable endowed lunds are made up of numerous donations the Income from which is used to provide scholarships and bursaries. The bursary fund is to provide funds for the gift of education initiative. 2019 l August 2018 Investment Gains 31 July 2019 Income Expenditure £'ooo £'ooo £'ooo £'ooo £'ooo Scholarship 3,438 200 3,638 Page 39 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 17. RESTRICTED FUNDS 2020 l August 31 July Investment Lossesl Transfers £'ooo 2019 £'ooo Income Expenditure £'ooo 2020 £'ooo £'ooo Wesley scholars fund Scholarship Development funds Great Hall Chapel Centenary fund The gift of education Ibursaryl Bursaries Ivariousl Prize funds Boat house redevelopment Vision studio other Community fund 39 38 65 96 1651 1961 39 38 26 21 810 30 62 1191 21 1.028 62 62 17 17 120 138 224 83 161 1511 50 78 70 1331 42 68 1,241 579 12121 1581 1,550 All funds represent monies given for the specific purposes, but not yet expended. The Gift of education bursaries is a new initiative with the Royal National Children's SpringBoard Foundation to provide transformative bursaries for disadvantaged and vulnerable children. The Community Fund is a new initiative linked lo the Old Leysian Mission. The donor has yel to specify the purpose of the fund. The transfer of £58,000 was to reimburse the unrestricted fund for expenditure incurred on behalf of the restricted fund in respect of the Great Hall and the vision studio. £741,000 of the gift of education bursary funds are held in investments until the lunds are needed for bursaries. 2019 l August 2018 £'ooo 31 July 2019 £'ooo Income Expenditure £'ooo £'ooo Transfers £'ooo Wesley scholars fund Scholarship Development funds Great Hall Chapel Centenary fund Bursaries Ely bursaries Prize funds Boat house redevelopment Other Community Fund 48 38 138 97 11471 1971 39 38 49 21 330 261 62 26 52 34 1241 26 21 579 261 53 76 78 70 219 1131 43 Iiii 1201 1201 70 46 36 921 609 12571 1321 1,241 Page 40 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 18. UNRESTRICTED FUNDS 2020 Transfer51 Investment Losses £'ooo l August 2019 £'ooo Income Expenditure 31 July 2020 £'ooo £'ooo £'ooo Designated funds Gift of education Funds towards HSE incident Funds for COVID-19 bursaries Unrestricted funds 92 39 250 406 23,032 131 250 406 28,805 28,430 122,6841 27 Total Unrestricted Funds 28,522 23,727 122,6841 27 29,592 The gift of education is expected to be fully utilised within 5 years, the HSE incident and the funds for helping parents Impacted by Covid-19 is expected to be fully utilised within 3 years. 2019 Tr3nsfers/ Investment Gains l August 2018 £'ooo Income Expenditu 31 July 2019 £'ooo 92 £'ooo 92 £'ooo £'ooo Designated funds (gift of education) Unrestricted funds 27,615 25,123 (24, 555) 247 28,430 Total unrestricted funds 27,615 25,215 (24, 555) 247 28,522 19. CONTRACTS AND COMMITMENTS There are no capital commitments for either school as at the 31 July 202012019.. £228,016). 20. RELATED PARTY TRANSACTIONS The Foundation's trading subsidiary, Leys Enterprises (Cambridge) Limited rnak￿ a donation under gift aid to The Foundation of its taxable profits each year. Included in Debtors of The Foundation is an amount of £137,540 due from the subsidiary. The staff workinglor Leys Enterprises ICambridEel Limited are employed by both The Leys School and Leys Enterprises Icambridgel Limited. The salaries are processed throuEh Leys School and transferred to Leys Enterprises (Cambridge) Limited. The transfer value of transaction charges for year ended July 2020 was £6,74312019 £11,585). 21. POTENTIAL LIABILITIES In February 2017 8 fatal accident occurred at the Leys school involving a member of the public. The Health and Safely Executive IHSEI completed an investigation and on 24th September wrote to the school to stste that they intended to prosecute the school. The first court hearing is scheduled for 215tr December 2020 and the school is now considering ils next actions. The school has plans in place to deal with any financial implications if the school is found guilty. Page 41 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 In January 2018 an accident occurred where a member of staff was injured. In September 2019 the member of staff began a legal case against the school. The school is working with the insurers on the case. 22. PENSION SCHEME The School participates in the Teachers, Pension Scheme I'the TPS'I for its teaching staff. The pension charge lor the year includes contributions payable to the TPS of £1,597,305 12019.. £1, 121,3731 and at the year-end there was nothing accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 las amendedl and The Teachers, Pension Scheme Regulations 2014 las amendedl. 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 erllployer contribution rate is set by the Secretary ol State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation ol the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would Increase from 16.4/ty to 23.61. from I September 2019. Employers are also required to pay a scheme administration levy of 0.0810 giving a total employer contribution rate of 23.68 /.. The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified In the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the 'McCloud/SarEeant case,. This case has required the courts lo consider cases regarding the implementation of the 2015 reforms to Public Setvice Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government pemission to appeal the Court of Appeal's judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and rnember representatives to agree how the discriminations will be remedied. A consultation was launched by the Eovernment on 16 July 2020 and closed to responses on I l October 2020. The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the McCloud/Sargeant case and until there is certainty about the v31LJe of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 202 1. In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation rnay become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different iesults than those contained in the Actuarial Valuation. Page 42 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Until the consultation and the c05t cap mechanisrn review are completed it is not Possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements. The contributions in respect of the support staff defined contribution scheme was £283,513 for The Leys, and £118, 150 lor St Faith's 12019.. £257,873 and £100,897). 23. ANALYSIS OF CHANGES IN NET DEBT l August 2019 Cash flows 31 July 2020 £'ooo 5,101 £'ooo 12 £'ooo 5,113 Cash in bank Advance fee payments due within one year Advance fee payments due after more than one year Bank loans falling due within one year Bank loans falling due after more than one year Mortgages falling due within one year Mortgages falling due after more than one year (6,426) (913) 257 16, 1691 19061 (190) (2, 757) (450) fl, 688) 11901 12,5671 14501 11,2381 190 450 Total borrowings (12,424) 904 111,5201 Net Debt (7,323) 916 16,4071 24. RECONCILIATION OF NET (EXPENDITUREIIINCOME TO GROUP CASH FLOW FROM OPERATING ACTIVITIES 2020 £'ooo 1,410 2019 £'ooo 1,012 Net income for the reporting period las per the statement of financial activitie51 Adjustments for Depreciation charge Investment income Investment managers fees Decreasellincreasel in stocks Decrease in debtors IDecreasel/increase in creditors (excluding advance fee movement) (Decreasellincrease in fees in advance scheme creditors IDecreasellincrease in parent deposits 1,522 13181 29 2,393 (311) 38 (16) 184 190 568 16181 11.7451 582 121 Net cash provide(I by The Group's operating activities 855 4,074 Page 43 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 25. FINANCIAL INSTRUMENTS Group Group Foundation Foundation 2020 £'ooo 5,209 10,695 12,8371 2019 £'ooo 5,937 10,797 (3,408) 2020 £'ooo 5,308 10,695 12,8281 2019 £'ooo 6,020 10,797 (3,382J Financial assets measured at amortised cost lal Financial assets measured 8t fair value Ibl Financial liabilities measured at amortised cost Icl Nel financial assets measured al amortised cost 13,067 13,326 13,175 13,435 (al Financial assets include cash, trade and fee debtors, staff loans, other debtors and accrued income. Ibl Financial assets held at fair value include assets held as investments. Financial liabilities include deposits, trade creditors and other creditors. Page 44 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 26. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES - COMPARATIVE FIGURES BY FUND TYPE Year ended 31 July 2019 Unrestricted Restricted Funds Funds Endowed Funds Total Funds 2019 £'ooo £'ooo £'ooo £'ooo Income and endowment5 from Charttsble Activities School fees Ineti Other educational income Other ancillary activities Voluntary sources Donations Investments Investment income Bank and other interest Other trading activities Non-ancillary trading income 22,462 2,068 49 22,462 2,068 49 iio 502 612 188 16 102 290 21 322 322 Totsl income 25,215 609 25,824 Expendtture on Raising fund5 Non-ancillary trading Fund-raising for voluntary resources Financing costs under Advance Fee Contracts Finance costs Bank and Mortgage interest Investment Management Fees 275 178 275 178 156 71 172 38 156 71 172 38 Totsl deductible costs Charitsble Activities Schools and grant making 890 890 23,665 257 23,922 Totsl expenditure 24.555 257 24,812 NET INCOME 660 352 1,012 Investment gains 172 43 409 624 Transfers between funds 75 1751 NET MOVEMENT IN FUNDS 907 320 409 1,636 Fund balances at l August 2018 27,615 921 7,009 35,545 FUND BALANCES at 31 July 2019 28,522 1,241 7,418 37,181 Page 45 THE LEYS AND ST FAITH'S SCHOOLS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 27. LEYS ENTERPRISES ICAMBRIDGEI LIMITED The Foundation owns the whole of the share capital of a IradinE company Leys Enterprises Icambridgel Limited company number 2016905, with the Foundation receiving taxable surpluses earned by the company as a donation under gift aid. 2020 £'ooo 2019 £'ooo BALANCE SHEET Tangible fixed assets 23 29 CURRENT ASSETS Stock Debtors Cash 99 99 53 35 35 137 11501 187 (206) CREDITORS.. amounts falling due within one year Net current liabilities 1131 (19) TOTAL NET ASSETS io io CAPITAL AND RESERVES Called up share capital Profil and loss account io io io io IThe Company has £2 share capital which after rounding to the nearest £1,000, becomes £nill PROFIT AND LOSS ACCOUNT 2020 £'ooo 214 11951 19 1181 2019 £'ooo 322 (253) 69 (21) Turnover Cost of Sales Gross profit Administration Net profit Donation to Parent under gift aid 48 (48) iii Retained prolit for period Page 46