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2021-08-31-accounts

Registered number: 0045867 Charity number: 1158943

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 10
Trustees' Responsibilities Statement 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17
Company Balance Sheet 18
Consolidated Statement of Cash Flows 19
Notes to the Financial Statements 20 - 35

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees A Culley
A S Hampton (resigned 31 August 2021)
J T Wilding
S J Lockyer (appointed 1 September 2020)
C R Osborn, Vice-Chair (resigned 31 August 2021)
B G Huggett
P S Hutley (resigned 31 August 2021)
S McKernan
P A Soutar
R M Walden
J Shaw, Chair
P M Wilson
T A Wilson
H Chalmers
D E Seagrove
J Southworth, Vice-Chair
A Blake (resigned 31 August 2021)
E Brown (resigned 31 August 2021)
P Ford
D Preston
H Stanton-Tonner (resigned 21 July 2021)
C Wardle (resigned 31 December 2021)
J Hetherington
J Duke
D Price
N Dangerfield (appointed 1 September 2020)
N Roskilly (appointed 1 September 2020)
C Salmon (appointed 1 September 2020)
D Sayers (appointed 1 September 2020)
M Burke (appointed 1 September 2021)
L Collins (appointed 1 September 2021)
S Knox (appointed 1 September 2021)
Company registered
number 0045867
Charity registered number 1158943
Registered office ISA House
Great Chesterford Court
Great Chesterford
Essex
CB10 1PF
Company secretary Rudolf Alastair Eliott Lockhart

Page 1

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Independent auditors Price Bailey LLP Chartered Accountants Causeway House 1 Dane Street Bishop's Stortford Hertfordshire CM23 3BT Bankers National Westminister Bank PLC 56 St Andrew's Street Cambridge Cambridgeshire CB2 3DA

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees are pleased to present their annual Directors’ report, together with the consolidated financial statements of the charitable limited company and subsidiary trading company for the year ending 31 August 2021, which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland published on 16 July 2014.

Chair’s report

In taking over as Chair this year from Jeff Shaw, Headmaster of Scarisbrick Hall School in Lancashire, I am pleased to commend the progress that the Association has made during his time while leading the Association. This has been another year made challenging by COVID-19 with schools’ physical sites closed by the Government between early January and early March, and a brief return for employees of the Association to working from ISA House in September, before a reversion to working from home for the rest of the year. Despite the range of challenges represented by COVID-19, the year was full of achievement for the Association with a healthy increase in membership, the further expansion of education support services to ISA Members and their schools, the growth in the variety and number of sports, arts and other competitions offered by the Association, and the co-operation and partnership, both formal and informal, with other organisations who share ISA’s charitable aims. Jeff has provided a huge amount for all ISA Members, supporting schools in a time of uncertainty in our sector. It is also particularly pleasing to once again note that ISA’s Members from all types of schools have continued to develop relationships with state school neighbours. ISA Members’ partnerships continue to be featured at www.schoolstogether.org, the website of Schools Together, promoted by the Independent Schools Council and the Department for Education.

The Association continues to grow and has now more than doubled in membership over the last ten years. During 2020-21 the Association increased its membership from 534 as of 1 September 2020, to 558 Members at the end of the Association’s year, a net increase of 24 Members and their schools. In the context of the challenging COVID environment this is an extremely heartening performance. The resulting additional funding has allowed the Association to continue to enhance its services to its Members, including a further expansion of our arts-based activities, as well as developing online sports activities to keep pupils engaged at times when national competitions were made impossible by COVID regulations. Although remote for most of the year, our team of seven Regional Representatives (now Regional Ambassadors) have done a sterling job visiting members (when able) and keeping in touch online providing crucial pastoral support. Their work is part of ISA’s agreed strategy to encourage all Members to access our full range of support services and events for children. Our online community has grown and remains an essential means of support and advice for our Members and the staff in their schools allowing for the rapid dissemination of vital information to Members and to answer their questions expertly and without delay. To prepare for the restart of inspection in September 2021, ISA provided 119 free consultant-led compliance checks. These visits help Members to get ready for inspection and provide much-needed confidence.

All but five of ISA’s national sports events were affected by COVID during this year. In total there were over 100 Member schools that took part in our three virtual competitions throughout the year and our two physical events: the Equestrian events at Princethorpe College in May, and the Golf Open Champs at Worksop College in June. The most successful campaigns of the year included the ISA Athletes of the Term award which saw more than 90 entries recognising and celebrating moment of sporting achievement; and the ISA Limitless Skills (keep active campaign) which saw over 2,000 pupils from more than 100 schools engaging throughout lockdown periods or while children were in isolation working from home. Recognising and celebrating moments of sporting success/achievements has everlasting effects on individuals, the success of these various campaigns was pivotal to keeping Member schools engaged in ISA sport.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Outside of physical events and campaigns, the sport department successfully ran a PE and Sport conference with 30 Member schools and professionals from outside of the Association attending and gaining much value from the CPD opportunities provided. We will continue to build on this through an improved partnership with the Youth Sport Trust and Independent Coach Education. These partnerships supported crucial Forums that were held throughout the academic year while schools and staff were in need of collaboration. This collaboration led to a reformed Cross-Association sport group which will support schools by providing clear and consistent guidance, while also helping guide discussions between Independent Schools Council and the Department for Education.

Further to our work in sport, the Association continues to develop offering within the arts and encourages participation through competition and events in the fields of Drama, Music, Art and Creative Writing. Despite the challenges of the COVID-19 pandemic, the Association has ensured that our members’ schools have not been prevented from participating in a wide variety of Arts competitions. The pandemic created uncertainty with lockdowns, social distancing, and the cancellation of live events, but the switch to online activities ensured that teachers were able to continue to engage and enthuse their pupils in participating in the arts. The number of schools with pupils taking part in the competitions increased leading to a greater overall number of entries than in the previous year. The Film and Digital Art Competition received 192 entries from across 45 schools. There were 127 entries from pupils at 21 schools for the Sports Cover Design Competition; 155 entries for the Comic Strip Competition from 28 schools; 256 entries from 77 schools for the Essay Competition; 198 entries from 63 schools for the Musician theatre Competition; 142 entries from 50 schools for the Shakespeare Monologue, and 197 entries from 40 schools for the EYFS Christmas Banner Competition. New for this year was the STEAM Competition with its aim to get children investigating and attempting to solve problems facing the world today. The competition encouraged team work as well as individual projects; the finalists then gave a live zoom presentation. A total of 29 entries from 18 schools were received, which confirmed to us that this area of creativity should be developed further in future years. The National Art Competition continues to attract a large number of schools to take part, despite the Regional Competitions and the National Final being moved online 140 schools took part resulting in a total of 1480 entries submitted for consideration. As in past years the standard of work submitted was of a very high standard which made judging the National Final an enjoyable experience.

Trustees believe that the breadth and accessibility of our artistic and sporting programmes demonstrate the public benefit that our work brings to the wider community. To also further this public aim, ISA has continued to encourage schools to work in partnership with state schools in sharing resources and establishing joint curriculum projects. Throughout 2020-21, ISA remained an active supporter of the Systems Partnership Unit at the Department for Education, further encouraging the creation of partnerships between state and independent schools often with the aim of promoting understanding and shared working for the benefit of pupils in both the state and independent education sectors. Further, ISA continues to provide expert advice on curriculum, examinations and assessment to several organisations, including all the main Examinations Awarding Bodies in England and WJEC/Eduqas in Wales, and to the regulator, Ofqual. ISA also advises governmental bodies on matters related to education.

We continue to provide low-cost training for teachers on all aspects of education, with 2020-21 seeing a continued emphasis on inspection, compliance and developing skills for school evaluation, in response to requests from our Members. All our training events continue to be open to teachers from the state and independent sectors, and the charity does not differentiate between Members and non-members in its pricing structure, in line with its values. During this period of pandemic approximately 95% of our courses took place virtually with just a handful delivered at ISA House where Government guidelines permitted. We were able to reduce the price of attending due to savings on overheads and have been able to attract a significantly greater number of people from a wider geographical sweep of schools, to take the courses.

Our programme of conferences was successfully switched online with strong feedback from delegates. Our Heads Induction Conference was held online in January 2021 where we welcomed 76 new members to the Association. Our Autumn Study Conference, originally planned in person for November 2020, was rescheduled as an Online Study Conference in February 2021. It had a focus on pedagogy and had sessions aimed at Heads, Deputies, and other Senior Leaders. The Deputy Heads Conference also made a successful transition to the online format and had tailored sessions on mental wellbeing and how to deal with the pandemic.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

After the ISA Awards Ceremony due to take place November 2020 was cancelled due to COVID-19, ISA ran its first ever Virtual Awards Ceremony in 2021. The video was pre-recorded at ISA House following COVID-19 guidelines and broadcasted to Members via the website in February, alongside our Online Study Conference. The video exceeded expectations, with approximately 150 live views and over 1000 views overall.

While this has been a strange year for everyone involved in the Association, I am pleased that ISA has been able to adapt to the new environment and to continue to provide expert advice and guidance to our members and across the educational sector. To find out more, visit our website at www.isaschools.org.uk.

Our purposes, activities and main objectives for 2020-21

THE OBJECT OF THE ASSOCIATION IS THE ADVANCEMENT OF EDUCATION BY FOSTERING THE HIGHEST POSSIBLE EDUCATIONAL STANDARDS IN INDEPENDENT SCHOOLS THROUGH THE PROMOTION OF FELLOWSHIP AND CO-OPERATION AMONG MEMBERS, ASSOCIATES AND AFFILIATES OF THE ASSOCIATION AND THROUGH CO-OPERATION WITH OTHER BODIES WITH SIMILAR CHARITABLE OBJECTS.

Trustees also confirm that they have complied with the duty in Section 4 of the 2006 Act and the 2011 Act to have regard to guidance on public benefit as published by the Charity Commission. In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including “Public benefit: running a charity” (PB2).

The Association relies on the income foremost from subscriptions and secondly from training charges to cover its operating costs, with a minor contribution from sponsorship that contributes under 10% of gross income. Affordability and accessibility to our training, sports and other pupil programmes remain important considerations for Trustees. ISA encourages as many young people as possible to take part in our activities, and as many teachers as feasible to take advantage of our highly-quality training events online via Zoom. The Association is keen to encourage teachers from a wide variety of schools, both state and independent, to attend our courses and we deliberately keep costs low to encourage participation. A full day’s training with expert tuition in small groups and all materials cost £120 per delegate. This is reduced from the previous price of £175 due to the lower costs of delivering the courses online. Our approach to inclusive participation is embedded within our wider strategies employed to achieve the charity’s aims and objectives. Specifically, in 2020-21 these were to:

Page 5

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Strategies for Achieving our Objectives

In putting these strategies into action throughout 2020-21, we have identified three major areas of activity:

  1. Training events, including courses on all aspects of education, and conferences that feature expert speakers and practical breakout sessions;

  2. Sports and arts-related events that encourage as many young people and schools as possible to take part; and,

  3. Expert advice on all aspects of education for Members’ schools, parents and the wider community.

Training Events

Each year we hold an Autumn Study Conference aiming to enhance pedagogy among senior leadership teams. Our plans to hold an in-person conference in November 2020 were thwarted by COVID-19 and we rescheduled for an Online Study Conference in February 2021. We successfully brought delegates together with a high quality set of speakers and received very positive feedback. In previous years our Autumn Study Conference has included a gala dinner with the ISA Awards ceremony. This too was switched to an online format and was watched by over 1,000 unique viewers. The Awards celebrate best practice in schools across the country, particularly in areas such as mental health, sports and the arts. Categories for entry are reviewed annually to ensure relevancy to our schools and to the education sector as a whole. Our January 2021 online Heads Induction Conference welcomed 76 new Members to train for the challenges of leading a school in uncertain times.

In addition to our programme of conferences, in 2020-21 ISA offered 90 training days to schools across the country. The range of topics covered, as usual, was broad and reflected the needs of Members and staff from their schools, with much of the programme developed through direct feedback. Inspection courses continued to be popular, but teaching and learning, and general leadership courses also had a lot of interest and high numbers of bookings. The courses was almost all delivered online, a move that proved popular with delegates drawn from a wider range of schools than in previous years with a noticeable increase in participation from people at schools further from ISA House. This has underlined the value of the provision of online courses. We offered the online courses at a reduced price of courses to just £120 (a significant reduction from £175) to reflect the reduced costs of delivering online training. Feedback from delegates attending training courses tended to be very positive.

Support for Parents, Schools of All Types, Charities with Similar Objects and the Wider Community

ISA seeks to provide free and impartial educational advice not just to Members but to schools of all types and to parents who often seek advice on areas such as SEN(D) provision and school admissions. ISA’s representatives also assist governmental agencies and NGOs working in education. In 2020-21 this included working with the Department for Education at ministerial level on maintaining high quality education during the period of COVID19 pandemic and the promotion of independent-state school partnerships, with each of the examinations awarding bodies (including Pearson, WJEC/Eduqas and AQA, and the regulator Ofqual) on examination reform and quality of marking, and with the inspectorates (particularly the Independent Schools Inspectorate) on compliance and regulation, as well as providing responses as part of official government consultations. During this year we have maintained our work with organisations that promote safeguarding and child protection in schools, such as the community interest company Freedom from Abuse, and with bodies supporting mental health such as MindEd and Beat Eating Disorders (BEAT).

Page 6

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

In addition to our work on child protection and mental health, and again in line with our charitable objects, we have continued to work with related charities, including: We (formerly Free the Children), which builds sustainable communities in places like Ecuador, Kenya and India) and provides important curriculum programmes for schools; Child Bereavement UK (supporting children where one or more parents have passed away); Debra (a national charity that supports patients affected by Epidermolysis Bullosa); United World Schools (building schools in remote locations in some of the world’s poorest countries) and Beanstalk (a literacy charity that trains volunteers, including older school children, to work in primary schools with children who have fallen behind with their reading). All of ISA’s charity partners are promoted by us and receive free places at our events and exhibitions.

The Association’s Honorary President, Lord Lexden, speaks in parliament on education and related matters such as equalities legislation, including in 2020-21 on international LGBT rights (October 2020), historic statues (October 2020), young people registering to vote (November 2020 and July 2021), historical representation of the UK (December 2020 and April 2021), prioritising COVID-19 vaccinations for teachers (January 2021 and February 2021), collaboration between the independent sector and government on assessments (January 2021), reopening of schools (January 2021), partnerships work between sectors in regard to cadet forces (March 2021), opportunities for the independent sector to aid education recovery schemes (March 2021), partnerships work between the sectors for Arts subjects (June 2021) and children in care and boarding schools (June 2021). One of our two academic awards is in the name of Lord Lexden. These were granted as normal for 2020/21 but official presentation was postponed due to COVID-19.

Sports, the Arts and other Competitions

ISA strongly advocates for a broad range of curriculum experiences, particularly in the arts where many children go on to enjoy productive careers in the UK’s creative industries. Our events in the expressive and fine arts help develop pupils’ self-confidence and expression across the range of arts, from dramatic performance, twodimensional and three-dimensional arts (including textiles and sculpture), as well as in areas such as creative writing. Given the ability of these sometimes-marginalised curriculum areas to raise confidence and attainment, as well as enhancing communication and expression, ISA encourages participation from children with special educational needs and disabilities. ISA’s membership includes schools that specialise in SEN(D) and many use arts therapeutically to build confidence, often achieving impressive results in public examinations given the initial challenges often faced. Both local (Area) and national events are offered, so children from a wide ability range and a variety of backgrounds can represent their schools. Each of ISA’s seven Areas across England and Wales arranges local arts competitions, sometimes with public display, presenting opportunities for pupils to have their work viewed outside of their school environment.

The Association’s annual creative writing competition also includes the opportunity for schools to promote creative work, with winners often featured in the Association’s magazine, the ISA Journal, with over 2,000 copies now distributed without cost across the wider educational community. The success of our Arts provision can be seen from the volume of entries for our competitions even though the competitions had to switch to online formats.

While many pupils do have access to traditional team-sports, we recognise that children involved in individual pursuits often miss the chance for representation and so we have striven to provide a wide range of sports events for pupils to be involved in. Our Sports competitions celebrate participation with an emphasis on pupils enjoying the range of sports on offer. In 2020-21 the impact of COVID-19 meant that many events had to be suspended, although we were pleased to be able to offer alternatives where pupils could compete remotely in a set of challenges.

Financial review

2020-21 has been another good year financially for the Association, delivering an increasing range of services to Members and to budget. Having fulfilled the stated reserves policy, Trustees established the aim for the Association to break-even over all activities during 2020-21; this goal was once again exceeded. This was particularly encouraging given the challenges represented by COVID-19 and its impact on member schools.

Page 7

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

While the impact of COVID-19 led to a reduction in income from charitable activities of £53,450 (2020 - £39,684), the reduction in expenditure (again, largely due to COVID-19) was more significant with £301,228 less (2020 - £101,180 more) spent on charitable activities. This was a result of the reduced costs due to conferences and courses taking place online and due to the reduced sports programme. There was also reduced spending on staffing due to new hires coming in on lower salaries and with lower employer pension contributions (particularly for those on the highest salaries), as well as lower running costs for ISA House due to the significant periods of working from home for staff.

Investment powers, policy and investment performance in 2020-21

The Trustees, having regard to the liquidity requirements of operating the charity, sweep funds into an interestbearing liquidity account daily. Deposit interest rates remain unfavourable and so Trustees’ longer-term aim of earning interest to match or exceed movements in the retail prices index (RPI) was again frustrated in 2020-21, with RPI at 2.8% in the twelve months to 31 August 2021 (2020 - 4.8%). The Association’s Finance Committee reviewed this performance and renewed its investment strategy. Investment income in 2020-21 totalled £5,491 (2020 - £10,294).

Reserves policy and going concern

Trustees recognise that reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. Given that the charity owns its buildings, has no mortgages or loans, and holds largely unrestricted funds, Trustees take the view that reserves are currently more than sufficient for the stated purpose. Professional fees and non-cancellable operating leases remain minimal. Cash-flow remained positive in each month, augmented by a regular influx of new Members throughout the year. The Association maintains a reserve balance at a minimum of £335,000 in easy access/short-term funds to cover its contractual obligations for both the Charity and its subsidiary which is currently regarded as three months

Plans for future periods

The Association has been operating under a strategic plan for 2016-21 agreed by Trustees. A new five year plan was agreed in June 2021 to take effect from September 2021.

In 2021-22 the Association is balancing the start of a new strategic plan for the period 2021-26 with the ongoing challenges presented by the COVID-19 crisis. The Association is maintaining the quality and range of what it offers to members while adapting to a new working environment with some periods of lockdown and other periods of limited working from home for some members of staff. ISA is looking to deliver conferences in person where possible, while offering a mix of in-person and online training courses. There is a particular desire to build on the experience of lockdown and maintain the greater levels of accessibility to training courses when they are online. We seek to continue to expand and diversify our arts programmes to involve more schools and more children in those schools. COVID-19 has a significant impact on ISA’s sports provision with some competitions that we have run in previous years not possible in 2021-22 although we have been looking to move back to a “normal” sports offer where possible. ISA has therefore continued to explore new events and challenges where pupils can compete online.

There remains a focus on continuing membership growth while maintaining high Membership satisfaction. Trustees recognise that the Association is not required to add to reserves but will continue to enhance services to support Members and their schools, and the wider education community in general, while also ensuring that the Association runs efficiently. ISA is working to strengthen the links between ISA’s HQ and its seven Areas around the country, including substantial grants to support the professional development of Members in those regions. All Members will continue to receive an expert-led compliance audit in the run-up to their next scheduled inspection. ISA is using its moderated online community based on the Discourse platform to encourage greater peer networking and peer support among members, and to use it to keep members updated and engaged with changing guidance from the Department for Education. ISA is expanding its network of strategic links with similar organisations overseas, developing relations with organisations in Australia, New Zealand, South Africa, Canada, and the USA in addition to the relationships already formed with those in other countries.

Page 8

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Looking further forward, ISA is prioritising the development of even stronger links with similar charities and education-based organisations, both in the UK and beyond; the further enhancement of support for ISA’s seven Areas around the country, particularly in the area of professional development and training; an increase in the knowledge of comparative educational systems through direct research where this can benefit children in ISA Members’ schools; to further enhance our training for teachers and headteachers, particularly in the areas of mental health and pupil welfare; and to widen and deepen opportunities for children, including those with additional educational needs, in the fine and performing arts, as well as in sports.

Governing Document

(1) The Independent Schools Association is a company limited by guarantee and governed by its Memorandum and Articles incorporated 06/11/1895, as amended by certificate of incorporation on change of name dated 24/05/1996 as amended by special resolution(s) dated 05/03/2011 as amended by special resolution(s) dated 01/10/2014 as registered at Companies House on 17/10/2014 as amended by special resolution(s) dated 03 December 2016.

Appointment of Trustees, organisation and duties

As set out in the Articles of Association, the Chair of the Trustees is nominated by the Executive Council for approval by Members at the Annual General Meeting in May, with term of office commencing 01 September. Members may also nominate other Members for election as Chair or as one of 14 Elective Councillors, one third of whom retire annually. ISA’s Trustees also consist of seven Area Co-ordinators elected by each of ISA’s Areas, plus up to five Vice-Presidents and three Honorary Officers, including the Chair and Vice-Chairs of the Association. ISA’s Honorary President is not a Trustee of the Association. When considering co-opting Trustees, the Board has regard to the requirement for any specialist skills needed, but has not exercised this right in recent years and remains content with the range of expertise on the Council. The Executive Council (Board) normally meets three times annually and during 2020-21 there were sub-committees covering finance, education, inspections and membership, the latter considering all new applicants for election to membership, subject to subsequent Executive approval. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity, to advise the Board and its committees on educational and financial matters, and to advise Members across the country on matters that affect their operation. The Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including the Association’s finance, employment and membership services.

Trustee induction and training

New Trustees are briefed on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and informed of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the current strategic objectives and the recent financial performance of the charity. Trustees are also encouraged to attend appropriate external training events where these will enhance the undertaking of their roles. It is emphasised to trustees that their approach to governance is underpinned by the Seven Principles of Public Life (“The Nolan Principles”), as these resonate with the serviceled values of the Association.

Page 9

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Related parties and co-operation with other organisations

Any connection between a Trustee and another Member, exhibitor, or outside body must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported. During the year, Trustees’ expenses totalled £217 (2020 - £9,277), representing less than 1% of income. A small number of Trustees claimed consultancy fees as outlined in Note 13, commissioned by the Association in direct support of Members and only where trustees’ expertise was deemed both greater and less expensive than that commercially available, to the direct benefit of our Members. The Association is one of the five headteachers’ associations that sit alongside representatives from independent school bursars and governors under the umbrella of the Independent Schools Council (ISC). The Chief Executive meets with his counterparts at these associations every month and Trustees offer their services as Board members for the ISC, The Boarding Schools Association, and the Independent Schools Teachers Induction Panel (ISTip). The Association has considerable links with other organisations and charities, to enhance its own expertise for the direct benefit of Members, and to help contribute to the wider educational health of the nation.

Pay policy for senior staff

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings, plus any performance uplift, on agreed scales. The directors do not currently benchmark against pay levels in other associations that form part of the Independent Schools Council, or via associations supporting members outside of independent education, but base remuneration on performance and Member satisfaction.

Risk management

The Trustees have a risk management strategy which encompasses a regular review of the risk and issues log collated by the Chief Executive; the establishment of policies, systems and procedures to mitigate those risks identified (including finance); and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise. This work has again identified that the increased burden faced by Members of inspection and compliance is the major financial risk for the charity, as Members who suffer from reputational damage following an inspection are at risk of closure. The continuing economic uncertainty faced by private businesses throughout the UK also remains a significant challenge to schools and, if resulting in closure, potentially threatens the Association’s income. The Association recognises that recent changes to teachers’ pension arrangements and possible changes to local business rates will serve to augment operating pressures for Members. The Association itself mitigates through continuing growth in membership and prudent financial management. The Association’s internal cost control measures are regarded as robust and are reviewed at least annually.

Approved by the board of Trustees on 16 May 2022 and signed on their behalf by:

~~J Southworth~~ John Southworth (May 16, 2022, 1:22pm) Chair

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware there is no relevant audit information of which the charitable company’s auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved by the Board of Trustees on _______ and signed 16 May 2022 on its behalf by:

~~J Southworth~~ John Southworth (May 16, 2022, 1:22pm) Chair

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INDEPENDENT SCHOOLS ASSOCIATION

Opinion

We have audited the financial statements of The Independent Schools Association (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 12

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INDEPENDENT SCHOOLS ASSOCIATION (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 13

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INDEPENDENT SCHOOLS ASSOCIATION (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 14

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INDEPENDENT SCHOOLS ASSOCIATION (CONTINUED)

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, and to the charitable company's trustees, as a body, Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Helena Wilkinson Senior Statutory Auditor for and on behalf of Price Bailey LLP Chartered Accountants Statutory Auditors Causeway House 1 Dane Street Bishop's Stortford Hertfordshire CM23 3BT

Date: 18 May 2022

Page 15

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Charitable activities
4
Other trading activities
4
Investments
5
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
987,748
80,756
5,491
-
1,073,995
3,035
898,628
901,663
172,332
1,184,085
172,332
1,356,417		 Total
funds
2021
£
987,748
80,756
5,491
-
1,073,995
3,035
898,628
901,663
172,332
1,184,085
172,332
1,356,417		 Total
funds
2020
£
1,041,198
84,352
10,294
52,286
1,188,130
6,532
1,199,856
1,206,388
(18,258)
1,202,343
(18,258)
1,184,085

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 35 form part of these financial statements.

Page 16

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee) REGISTERED NUMBER: 0045867

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
Net current assets
Total net assets
Charity funds
Unrestricted funds
21
Total funds		 5,254
101,095
959,026
1,065,375
(279,629)		 2021
£
72,112
498,559
570,671
785,746
1,356,417
1,356,417
1,356,417		 5,254
98,623
833,816
937,693
(258,664)		 2020
£
-
505,056
505,056
679,029
1,184,085
1,184,085
1,184,085

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by:

16 May 2022

~~J Southworth~~

John Southworth (May 16, 2022, 1:22pm) Chair

The notes on pages 20 to 35 form part of these financial statements.

Page 17

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee) REGISTERED NUMBER: 0045867

COMPANY BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
Net current assets
Total net assets
Charity funds
Unrestricted funds
21
Total funds		 5,254
58,247
885,994
949,495
(232,773)		 2021
£
72,112
498,559
1
570,672
716,722
1,287,394
1,287,394
1,287,394		 5,254
66,834
797,137
869,225
(240,280)		 2020
£
-
505,056
1
505,057
628,945
1,134,002
1,134,002
1,134,002

The Company's net movement in funds for the year was £153,392 (2020 - £(67,098)).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by:

16 May 2022

J Southworth John Southworth (May 16, 2022, 1:22pm) Chair

The notes on pages 20 to 35 form part of these financial statements.

Page 18

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of intangible assets
Proceeds from sale of investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 20 to 35 form part of these financial statements		 2021
£
206,302
5,491
(4,349)
(80,125)
-
(78,983)
-
127,319
833,816
961,135		 2020
£
53,697
11,418
(9,604)
-
752
2,566
-
56,263
777,553
833,816

Page 19

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

The Independent Schools Association is a charity, incorporated in England and Wales. Its Registered Office is ISA House, Great Chesterford Court, Great Chesterford, Saffron Walden, Essex, England, CB10 1PF. Its Registered Number is 00045867 Charity number 1158943.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Companies Act 2006.

The Independent Schools Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company and group's functional and presentational currency is Pound Sterling and to the nearest £.

2.2 Going concern

The Trustees consider that there are no material uncertainties about the charitable company and its subsidiary (the group) ability to continue as a going concern.

The Trustees believe that the forecasted results and good level of cash flow of the charity will enable the charity to continue as a going concern and, as a result, do not include any adjustments that would result if the charity was not able to continue as a going concern.

2.3 Income

All income is recognised once the Company and group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 20

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Intangible assets and amortisation

Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

Computer software - 33 %

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Freehold property - 2% to an estimated residual value of £490,000 Fixtures and fittings - 25% reducing balance

Page 21

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.7 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

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

2.11 Liabilities

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

The charity and group have financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their fair value as at the balance sheet date. All financial instruments of the charity and group are measured at cost.

Financial assets include investments in the portfolio, the bank balances, trade debtors, accrued income and other debtors but exclude prepayments and taxation.

Financial liabilities include trade creditors, other creditors, accruals and deferred income but exclude social security and other taxes due.

2.13 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.14 Pension costs

The charity operates a defined contribution pension scheme for employees. These assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities. The charity also makes contributions into individual's own personal pension arrangements.

Page 22

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.15 Fund accounting

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

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are not deemed to be any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from charitable activities

Subscriptions received
Conference and course income
Other income
Total 2020		 Unrestricted
funds
2021
£
759,949
226,598
1,201
987,748
1,041,198		 Total
funds
2021
£
759,949
226,598
1,201
987,748
1,041,198		 Total
funds
2020
£
764,910
272,507
3,781
1,041,198

.

Page 23

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

. (continued)

Income from non charitable trading activities

Sponsorship fees
Total 2020
5.
Investment income
Bank interest receivable
Total 2020
6.
Other incoming resources
Brexit Preparation grant
Coronavirus Job Retention Scheme		 Unrestricted
funds
2021
£
80,756
84,352
Unrestricted
funds
2021
£
5,491
10,294
Unrestricted
funds
2021
£
-
-
-		 Total
funds
2021
£
80,756
84,352
Total
funds
2021
£
5,491
10,294
Total
funds
2021
£
-
-
-		 Total
funds
2020
£
84,352
Total
funds
2020
£
10,294
Total
funds
2020
£
26,348
25,938
52,286

Page 24

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. Costs of Charitable activities by activity type

Direct costs
2021
Support
costs (note
9)
2021
£
£
Advancement of education
125,490
773,138
Total 2020
330,246
869,610
Included in Direct costs are Grants to institutions of £NIL (2020: £50,000).		 Total
funds
2021
£
898,628
1,199,856		 Total
funds
2020
£
1,199,856

8. Analysis of expenditure for raising funds

Unrestricted Total Total
funds funds funds
2021 2021 2020
£ £ £
Administration costs for preferred suppliers 3,035 3,035 6,532

9. Analysis of support costs

Staff costs
Premises costs
Other costs
Audit and accountancy
Legal and professional
Depreciation
Total 2020		 Support
2021
£
629,487
15,992
100,987
-
-
18,859
765,325
859,018		 Governance
2021
£
-
-
-
7,813
-
-
7,813
10,592		 Total
funds
2021
£
629,487
15,992
100,987
7,813
-
18,859
773,138
869,610		 Total
funds
2020
£
676,920
22,478
147,885
8,664
1,928
11,735
869,610

Page 25

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Auditors' remuneration

2021 2020
£ £
Fees payable to the Company's auditor for the audit of the Company and
Subsidiary's annual accounts 8,500 7,795
Fees payable to the Company's auditor in respect of:
All non-audit services not included above 1,795 1,265
11. Net income/(expenditure) for the year
2021 2020
£ £
This is stated after charging:
Operating lease rentals - Equipment 4,438 4,228
Depreciation 10,846 11,735
Amortisation 8,013 -
Disposal of investment - 752

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
545,033
46,996
37,458
629,487		 Group
2020
£
564,562
50,654
61,704
676,920		 Company
2021
£
545,033
46,996
37,458
629,487		 Company
2020
£
564,562
50,654
61,704
676,920

The average number of persons employed by the Company during the year was as follows:

Group Group Company Company
2021 2020 2021 2020
No. No. No. No.
Management 21 20 21 20

Page 26

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £70,001 - £80,000 1 -
In the band £100,001 - £110,000 1 -
In the band £140,001 - £150,000 - 1

The key management personnel of the charity comprise of the Chief Executive, Deputy Chief Executive and Officer Manager of The Independent Schools Association. The total employee benefits of the key management personnel of the Charity were £246,474 (2020: £252,340).

Page 27

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 August 2021, expenses totalling £217 were reimbursed or paid directly to 2 Trustees (2020 - £9,277 to 22 Trustees). The expenses related to travel reimbursements.

1 Trustee (2020: 2) claimed fees for educational consultancy which is not included in the above, under the authority of the Articles of Association as follows:

John Wood
Stephen McKernan		 2021
£
-
1,000
1,000		 2020
£
6,550
1,000
7,550

Other related party transactions are disclosed within Note 27 of the financial statements.

14. Intangible assets

Group and Company

Cost
Additions
At 31 August 2021
Amortisation
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Computer
software
£
80,125
80,125
8,013
8,013
72,112
-

Page 28

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Tangible fixed assets

Group and Company

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
499,855
-
-
499,855
10,588
-
-
10,588
489,267
489,267		 Fixtures and
fittings
£
80,778
4,349
(7,617)
77,510
64,989
10,846
(7,617)
68,218
9,292
15,789		 Total
£
580,633
4,349
(7,617)
577,365
75,577
10,846
(7,617)
78,806
498,559
505,056

Page 29

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Fixed asset investments

Company
Cost or valuation
At 1 September 2020
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Investments
in subsidiary
companies
£
1
1
1
1

Page 30

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Registered office or principal Principal activity number place of business The Independent Schools 10352253 ISA House, 5-7 Chesterford Educational support Association (Trading) Limited Course, Great Chesterford, services 2021 results Saffron Walden, CB10 1PF. Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiaries for the year were:

Names Income Expenditure Expenditure Profit/(Loss)/ Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for
the year
£
The Independent Schools Association 85,173 (3,034) 82,139 77,168
(Trading) Limited 2021 results
The Independent Schools Association 84,352 (6,532) 77,820 50,084
(Trading) Limited 2020 results
Stocks
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Finished goods and goods for resale 5,254 5,254 5,254 5,254

18. Stocks

Page 31

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

19. Debtors

Group
2021
£
Due within one year
Trade debtors
12,849
Amounts owed by group undertakings
270
Other debtors
37,074
Prepayments and accrued income
50,902
101,095
20.
Creditors: Amounts falling due within one year		 Group
2020
£
69,964
-
46
28,613
98,623		 Company
2021
£
5,161
2,109
75
50,902
58,247		 Company
2020
£
38,176
-
45
28,613
66,834
Bank overdrafts
Trade creditors
Amounts owed to group undertakings
Other taxes and social security costs
Other creditors
Accruals and deferred income
Deferred income at 1 September 2020
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 August 2020		 Group
2021
£
7,362
45,620
270
51,611
90,223
84,543
279,629
Group
2021
£
74,035
69,779
(74,035)
69,779		 Group
2020
£
-
45,791
-
20,778
102,236
89,859
258,664
Group
2020
£
38,948
74,035
(38,948)
74,035		 Company
2021
£
7,362
45,620
33,749
14,611
90,223
41,208
232,773
Company
2021
£
26,825
34,023
(26,825)
34,023		 Company
2020
£
-
45,125
35,366
20,778
102,236
36,775
240,280
Company
2020
£
1,950
26,825
(1,950)
26,825

Page 32

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds

Statement of funds - current year
Unrestricted funds
General funds
Statement of funds - prior year
Unrestricted funds
General funds
Coronavirus job retention scheme
Brexit preparation grant		 Balance at 1
September
2020
£
1,184,085
Balance at
1 September
2019
£
1,202,343
-
-
1,202,343		 Income
£
1,073,995
Income
£
1,135,844
25,938
26,348
1,188,130		 Expenditure
£
(901,663)
Expenditure
£
(1,154,102)
(25,938)
(26,348)
(1,206,388)		 Balance at
31 August
2021
£
1,356,417
Balance at
31 August
2020
£
1,184,085
-
-
1,184,085

The specific purposes of which the fundsare to be applied are as follows:

Unrestricted general funds

This represents funds with no restrictions applied.

Coronavirus job retention scheme

This represents income received from the Government job retention scheme during 2020 to cover staff costs during the COVID-19 pandemic.

Brexit government funds

This represents goverment grants received to assist with covering the costs of training employees for the changes in regulations.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Increase in debtors
Increase in creditors
Net cash provided by operating activities		 Group
2021
£
172,332
18,859
(5,491)
(363)
20,965
206,302		 Group
2020
£
(18,258)
11,735
(11,418)
(54,539)
126,177
53,697
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt		 Group
2021
£
961,135
961,135		 Group
2020
£
833,816
833,816
Cash at bank and in hand
Bank overdrafts repayable on demand		 At 1
September
2020
£
833,816
-
833,816		 Cash flows
£
125,210
(7,362)
117,848		 At 31 August
2021
£
959,026
(7,362)
951,664

25. Pension commitments

The Charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £37,458 (2020: £61,704). Balances owing to the fund at the year end amounted to £NIL (2020: £1,815).

Page 34

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Operating lease commitments

At 31 August 2021 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
4,438
5,906
10,344		 Group
2020
£
4,438
10,344
14,782		 Company
2021
£
4,438
5,906
10,344		 Company
2020
£
4,438
10,344
14,782

27. Related party transactions

During the year the charity procured services of £3,900 (2020: £11,110) from More House Foundation Ltd in relation to pre inspection visit and compliance reviews, a company of which B Huggett (Trustee) is a Director. No balance was owerd at 31 August 2021 (2020 - £NIL).

During the year the charity procured services of £205,016 (2020 - £200,474) from Independent Schools Council, a company of which the CEO and and J Southworth (Trustee) are among the nine Directors. The balance owed to Independent Schools Council at 31 August 2021 was £68,258 (2020 - £71,378).

During the year the charity paid a grant of £NIL (2020 - £50,000) to Deakins Scholarship Fund, a charity of which six of the seven Trustees are also Trustees of The Independent Schools Association. No balance was owerd at 31 August 2021 (2020 - £NIL).

The Charity has authority to transact with its Trustees under its Memorandum and Articles of Association. There were no other related party transactions or transactions with Trustees to report other than those reported in note 13.

Page 35