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2022-08-31-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 2022

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 - 11
Trustees' Responsibilities Statement 12
Independent Auditors' Report on the Financial Statements 13 - 16
Consolidated Statement of Financial Activities 17
Consolidated Balance Sheet 18
Company Balance Sheet 19
Consolidated Statement of Cash Flows 20
Notes to the Financial Statements 21 - 36

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 2022

Trustees A Culley (resigned 31 August 2022)
J T Wilding
S J Lockyer (resigned 31 August 2022)
B G Huggett
S McKernan
P A Soutar
R M Walden
J Shaw
P M Wilson
T A Wilson
H Chalmers
D E Seagrove
J Southworth (resigned 30 January 2023)
P Ford
D Preston
C Wardle (resigned 31 December 2021)
J Hetherington
J Duke
D Price
N Dangerfield
N Roskilly (resigned 27 June 2022)
C Salmon
D Sayers (resigned 31 August 2022)
M Burke (appointed 1 September 2021)
L Collins (appointed 1 September 2021)
S Knox (appointed 1 September 2021)
C Hammond (appointed 1 September 2022)
A Hampton (appointed 1 September 2022)
I Latif (appointed 1 September 2022)
G Maidment (appointed 1 September 2022)
C Osborn (appointed 1 September 2022)
O Scott (appointed 1 September 2022)
A Campbell (appointed 1 September 2022)
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

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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 2022

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 2022

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 2022, 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.

Chair’s report

In taking over as Chair this year from John Southworth, Principal of Mander Portman Woodward, London, I am pleased to commend the progress that the Association has made during his time while leading the Association. While the year was made more challenging by Covid, the overwhelming picture was of recovery relative to the previous year. Covid continued to cause significant disruption in members’ schools, although there were not the same national requirements to close schools as in the previous year. Public exams sat by most pupils in Year 13 and Year 11 were replaced by Teacher Assessed Grades. Employees of the Association had to revert to working from home between mid December 2021 and early February 2022 while for the rest of the year a hybrid approach to working was necessary with careful protocols to try to limit the risk of the virus spreading through the office. Despite the range of challenges represented by Covid, 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. The Association has provided a huge amount for all ISA Members, supporting schools in a time of uncertainty in our sector. It has been 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 2021-22 the Association increased its membership from 558 as of 1 September 2021, to 588 Members at the end of the Association’s year, a net increase of 30 Members and their schools. The resulting additional funding has allowed the Association to continue to enhance its services to its Members. Our team of seven Regional Ambassadors have done a sterling job visiting members to provide 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. ISA continues to provide free consultant-led compliance checks to help Members with an external view of compliance issues in their schools and to provide much-needed confidence.

The introduction of the new role of Director of Education and Inclusion to the team at ISA House in September 2021 added an additional senior person to the support team available to our members. It has also facilitated a stronger focus for the Association on educational matters and a higher profile for the work that ISA is doing in the area of inclusion. This has had a positive impact in both areas and provided a number of opportunities to reflect more of our diverse membership through what we do and who we are. This work reflects the importance of education and inclusion for the Association.

ISA was able to run a full programme of in-person sports competitions this year. Team events in particular continued to thrive from the off, with our popular events such as hockey, football and rugby in the Autumn term mirroring numbers from pre-Covid. The number of entries in the U11 Girls hockey event increased to 32 teams, a record number since our events at Lee Valley Hockey Centre started. The National Swimming Finals were also a successful return to the pool with some ISA areas choosing to run a virtual qualifier in the aftermath of the pandemic to ensure students in the respective areas still had the opportunity to compete at the Aquatics Centre.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Our senior netball events were moved to an exciting indoor facility at the University of Nottingham which has increased our school engagement to 43 schools, up from a peak of 29 in the pre-Covid period. The ISA National Cross-Country Finals returned to our calendars and had a new venue to accompany it. Worksop College opened its doors to our finalists and helped deliver a successful event for over 600 students from 139 Members’ schools. The spring term welcomed back one of our most popular events: the U11 Boys Football Finals as St George’s Park. The event provided great excitement and inspiration for young footballers, with over 27 teams making the journey from all of our 7 ISA regions. The sports department successfully ran a PE and Sport conference with delegates from 20 Members’ schools and professionals attending, all gaining much value from the CPD opportunities provided. The event was hosted at the University of Nottingham, in partnership with the Youth Sports Trust. This was a great chance for teachers and PE staff to learn and network with their peers and take new ideas and inspiration back to their schools.

A new triathlon event was introduced to the Association’s calendar of sports competitions. The event was run by a professional British Triathlon coach at the impressive Ipswich High School. Over 150 students attended. The flagship ISA National Athletics Finals at Manchester Regional Arena returned after a Covid-enforced two-year absence. We welcomed over 750 students from 123 members’ schools to a highly successful event. The Association’s sports programme acknowledges the importance of inclusivity for our Members’ schools. Within our larger events such as swimming, athletics and triathlon we continue to encourage para events, and the vision from the sports team is to see more and more inclusive opportunities on our national calendar over the coming months and years.

The introduction of new opportunities in the arts programme allowed an increase of pupils taking part with 4,398 grouped or individual entries this year, up from 3,446 in the previous year. We celebrated 70 years of the Queen’s reign with The Platinum Jubilee Challenge which was very popular with 48 schools taking part for 225 entries. The variety of artwork produced was very inspiring.

We were delighted that we were able to reintroduce live events for our members with opportunities such as Dance, Drama, and Public Speaking & Debating Competition. The National Art Competition generated over 1,700 entries and 177 schools took part in the competition, the art brochure was created again this year to celebrate the amazing art pieces produced by our schools’ pupils and teachers.

The STEAM Competition ran for the second time, attracting 50 entries, up from 29 in the previous year. The Shakespeare Monologue, Young Musician and Musical Competitions were also very well received with between 130 and 150 entries for each of them. The Film and Digital Art, the Essay and the Comic Strip Competition continued to grow in popularity with each receiving over 200 entries.

The Association continues to run competitions dedicated to EYFS & Primary Years pupils. We are very keen to continue expanding offerings for this age group to ensure that the Association supports the arts at all stages of learning. This year along with the Christmas Banner Competition (219 entries), Easter Egg Competition (249 entries) and the Handwriting Competition (175 entries), we put in place the new Bee Inspired Competition (190 entries). This competition was an opportunity for students to learn about our ecosystem whilst using their creative talents.

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 2021-22, 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.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

We continue to provide low-cost training for teachers on all aspects of education, with 2021-22 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. The vast majority of our courses took place virtually in order to make them as accessible as possible. We were able to keep the price of attending low due to savings on overheads on online training 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 in March 2022 where we welcomed 44 new members to the Association. Our Autumn Study Conference, held in November 2021, attracted 82 school leaders. It had a focus on pedagogy and had sessions aimed at Heads, Deputies, and other Senior Leaders. As part of the conference we were able to hold our first in-person ISA Awards Ceremony since covid. It was a pleasure to be able to be with members at this fantastic celebration of the achievements of ISA members’ and those at their schools.

I am delighted that ISA has been able to continue to provide expert advice and guidance to our members and across the educational sector, despite a year made all the more challenging by covid. To find out more, visit our website at www.isaschools.org.uk.

Our purposes, activities and main objectives for 2021-22

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 2021-22 these were to:

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategies for Achieving our Objectives

In putting these strategies into action throughout 2021-22, 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

Our Autumn Study Conference each year aims to enhance pedagogy among senior leadership teams and the November 2021 event brought 82 leaders from across our Members’ schools to Doubletree by Hilton in Coventry. Delegates heard from a variety of speakers on a broad range of topics including inspections, compliance in safeguarding, artificial intelligence and, diversity and inclusion. A choice of break-out sessions included sustainability, an EYFS update, managing reputation and exam reforms and assessments. Table talks were a new feature at this conference enable delegates to discuss and share best practice, divided by phase of school. The conference also features ISA’s annual Awards Ceremony, which recognises and celebrates best practice in schools across the country, particularly in areas such as mental health, innovation, sustainability, 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 2022 Heads Induction Conference at Fanhams Hall was moved to March this year due to Covid. We welcomed 44 new Members to train for the challenges of leading a school in uncertain times. This event was smaller than previous years, likely due to Covid fears and uncertainty. Updates for delegates included understanding brain development, crisis incident management, inspection of compliance and educational quality, legal pitfalls, and looking after mental wellbeing.

Our 2022 Annual Conference was at Low Wood Bay in the Lake District allowing more of our schools in the North to join this key conference for ISA Members focusing on fellowship and support within the Association. Delegates heard from a variety of speakers on different topics ranging from innovative learning environments, to safeguarding, to building resilience, to rethinking assessment. They also had the opportunity to meet with a variety of suppliers. The end of the conference focused on wellbeing offering them the opportunity to relax and celebrate at the dinner and then join in a choice recreational activities (water sports, walking up the hills or a boat tour) with colleagues from within the Association.

In addition to our programme of conferences, in 2021-22 ISA offered 97 training days to schools across the country, although 7 had to be cancelled. As well as a range of popular inspection and compliance-related topics, training opportunities included diversity and inclusion, pupil and staff mental health, self-evaluation for school improvement, supporting children with SEND, safeguarding, recruitment, finance and, teaching and learning. Training fees for course are deliberately capped to promote affordability. Average attendance at ISA’s day courses was 14.9 during the year compared to an average of 10.6 in the previous annual cycle of training. ISA is committed to offering courses in critical areas such as safeguarding and child protection, and is content to operate training events despite minority interest of Members, even if numbers are lower than might be expected. Further, to keep training events affordable, ISA utilises many voluntary speakers to help deliver our programmes, as well as expert professional trainers from a variety of skills and backgrounds. We continue to use our Members’ schools as well as ISA House in Great Chesterford, balancing delegates’ accessibility needs with keeping their travel costs to a minimum. We have successfully switched a lot of our provision to an online format to allow the training to be accessible to a wider audience and geographic location not creating barriers.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Support for Parents, Schools of All Types, 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 2021-22 this included working with the Department for Education at ministerial level to promote independent-state school partnerships, with each of the examinations awarding bodies (including Pearson, WJEC/Eduqas and AQA, and the regulator Ofqual) on the delivery of Teacher Assessed Grades, and with the inspectorates (particularly the Independent Schools Inspectorate) on compliance and regulation, as well as providing responses as part of official government consultations.

The Association’s Honorary President, Lord Lexden, speaks in parliament on education and related matters such as equalities legislation and justice for those convicted of same-sex offences. In 2021-22 Lord Lexden spoke several times on posthumous pardons for same-sex acts by Armed Forces personnel and the inadequacy of schemes under which pardons are available for same-sex offences (September & November 2021), enhancing the UK’s reputation as a global leader in combating HIV (October 2021), the role of the independent education sector in teacher training (November 2021), review of the Children and Families Act 2014 (December 2021), supporting children in care with the assistance of boarding schools (December 2021), extension of disregards and pardons schemes for same-sex offences to Northern Ireland (January 2022), disadvantaged pupils and the Turing scheme – an international study programme (January 2022), voting rights for overseas citizens (February 2022), T-Levels in rural areas (February 2022), shortcomings of the National Tutoring Programme (February 2022), encouraging young people to register to vote (March 2022), partnerships between the sectors in music education (March 2022), contributions of the independent sector and proposals from the schools bill (May 2022), educational reform and the introduction of a British baccalaureate (June 2022), the public benefit independent schools deliver with their charitable status (June 2022) and the European Convention of Human Rights (July 2022).

One of our two academic awards is in the name of Lord Lexden. These awards have continued to be granted despite the Covid-19 pandemic. In May 2022, official presentations at the House of Lords resumed, with the winners from 2020 and 2021 awards hosted by Lord Lexden.

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.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Key performance indicators

Number of Full Members (588)

Number of attendees at key conferences: Annual Conference (108), Autumn Study Conference (82), Heads Induction Conference (44) Total number of Training Days offered (97) Average attendance on training courses (14.9) Overall entries for Arts competitions (4,398)

Number of competitors at flagship sports events: National Athletics Finals (750+), National Swimming Finals (600+), National Cross Country Finals (600+)

Financial review

2021-22 has been another good year financially for the Association, delivering an increasing range of services to Members and to budget. Recognising the healthy state of the Association’s reserves, and having fulfilled the stated reserves policy, Trustees had planned to run a budget with a deficit of £75,781 over all activities during 2021-22; it is therefore very encouraging that the outturn for this year was £55,235 better than budgeted with a deficit this year of £20,546 (2021 - surplus of £184,503. This reflects the strength of the Association’s performance.

The charity’s income was substantially increased from £1,074,006 to £1,333,642 due to the growing membership and therefore increased subscription income, the ability to run a full set of conferences, and the expansion of income from trading activities. Alongside this there was an increase in expenditure from £889,503 to £1,354,188 due to an increase in staffing and the costs of running the full set of conferences and events.

Comparisons with the previous year are not straightforward due to the very different circumstances. The higher income and expenditure are both a function of the Association returning to a more normal set of activities and services than had been possible in the previous year when covid restrictions limited some activities.

Investment powers, policy and investment performance in 2021-22

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 2021-22. The Association’s Finance Committee reviewed this performance and renewed its investment strategy as detailed below.

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

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THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Plans for future periods

The Association began a new five year plan from September 2021 that will carry through to 2026.

In 2021-22 the Association sought to maintain the quality and range of what it offers to members while increasing its provision in key areas. ISA has enhanced the support it offers for members’ schools on inclusion and has been more active in supporting on education. The Association plans for more subject level support in the future. ISA has also enhanced its communications work, both working to improve the PR profile of the Association and its members’ schools and also working more closely with the other associations working in the independent schools sector.

We seek to continue to expand and diversify our arts programmes to involve more schools and more children in those schools. We are planning an increased sports programme and are committed to ensuring that there is an inclusive thread that runs through these events. We are planning to build on the success of our conference programme, and are looking to run bigger events to reflect our increasing membership. We are planning to add a cross-Association ICT conference to our suite of events. We are looking to expand our set of professional development 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 are looking to continue to expand our membership and hope soon to become the largest association of UK based independent school headteachers. It is vital that this alongside this growth we maintain 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 across Europe as well as in Australia, New Zealand, South Africa, Canada, and the USA in addition to the relationships already formed with those in other countries.

ISA recognises that our members run schools that operate in a particular economic and political context. They are mindful of the challenging economic environment and its impact on their own costs, as well as on their parents ability to pay the fees. ISA is acutely aware of the potential impact on our own budgets. We are planning for the possibility of a change in Government and the possibility for the introduction of new policy that may present challenges for our Members. The Association is planning to offer advice and support to Members and intends to continue to work closely with other bodies working in the independent schools sector on these issues.

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.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 2021-22 there were sub-committees covering finance, education, inspections, inclusion 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-today 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.

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, no Trustees received any remuneration or other benefits. 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. Remuneration for the CEO is determined by the Chair and Chair of Finance.

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

24 May 2023

Approved by the board of Trustees on

and signed on their behalf by:

P Soutar (May 24, 2023, 2:09pm) P A Soutar Chair

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THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

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.

24 May 2023 Approved by the Board of Trustees on _______ and signed on its behalf by:

P A Soutar P Soutar (May 24, 2023, 2:09pm) Chair

Page 12

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 subsidiary (the 'group') for the year ended 31 August 2022 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 13

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 14

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

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

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:

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 15

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, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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: 24 May 2023

Page 16

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 2022

Note
Income from:
Charitable activities
5
Other trading activities
4
Investments
6
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Net (expenditure)/income
Reconciliation of funds:
Total funds brought forward as previously stated
Prior year adjustment
Total funds brought forward as restated
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
1,232,687
95,159
5,796
1,333,642
5,276
1,348,912
1,354,188
(20,546)
1,356,417
125,121
1,481,538
(20,546)
1,460,992		 Total
funds
2022
£
1,232,687
95,159
5,796
1,333,642
5,276
1,348,912
1,354,188
(20,546)
1,356,417
125,121
1,481,538
(20,546)
1,460,992		 As restated
Total
funds
2021
£
987,748
80,756
5,502
1,074,006
3,035
886,468
889,503
184,503
1,184,085
112,950
1,297,035
184,503
1,481,538

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

The notes on pages 21 to 36 form part of these financial statements.

Page 17

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

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022

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
145,545
1,034,136
1,184,935
(263,431)		 2022
£
45,404
494,084
539,488
921,504
1,460,992
1,460,992
1,460,992		 5,254
100,825
1,087,087
1,193,166
(282,299)		 As restated
2021
£
72,112
498,559
570,671
910,867
1,481,538
1,481,538
1,481,538

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: 24 May 2023

P A Soutar P Soutar (May 24, 2023, 2:09pm) Chair

The notes on pages 21 to 36 form part of these financial statements.

Page 18

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

COMPANY BALANCE SHEET AS AT 31 AUGUST 2022

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
95,612
966,241
1,067,107
(225,615)		 2022
£
45,404
494,084
1
539,489
841,492
1,380,981
1,380,981
1,380,981		 5,254
58,247
1,014,055
1,077,556
(235,713)		 As restated
2021
£
72,112
498,559
1
570,672
841,843
1,412,515
1,412,515
1,412,515

The Company's net movement in funds for the year was £(31,534) (2021 - £165,563).

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: 24 May 2023

P Soutar (May 24, 2023, 2:09pm) P A Soutar Chair

The notes on pages 21 to 36 form part of these financial statements.

Page 19

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

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
Purchase of tangible fixed assets
Net cash provided by/(used in) 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 21 to 36 form part of these financial statements		 2022
£
(55,581)
5,784
-
-
(3,154)
2,630
-
(52,951)
1,087,087
1,034,136		 As restated
2021
£
219,304
5,491
(4,349)
(80,125)
-
(78,983)
-
140,321
946,766
1,087,087

Page 20

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 21

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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.

Amortisation is provided on the following basis:

Computer software - 33 % straight line basis

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

2.7 Investments

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

Page 22

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

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 with the exception of fixed assets held at depreciated 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 23

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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. Prior year adjustment

The prior year figures have been restated to correct the financial statements to include the results of the Charity's branches which had previously been incorrectly treated as separate entities. The net effect is as follows:

Reserves as at 1 September 2020 £112,950 Income for year ended 31 August 2021 £11 Expenditure for year ended 31 August 2021 (£12,160) Reserves as at 31 August 2021 £125,121

Page 24

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. Income from charitable activities

Subscriptions received
Conference and course income
Other income
Total 2021 as restated
Income from non charitable trading activities
Sponsorship fees
Total 2021
6.
Investment income		 Unrestricted
funds
2022
£
850,498
381,701
488
1,232,687
987,748
Unrestricted
funds
2022
£
95,159
80,756		 Total
funds
2022
£
850,498
381,701
488
1,232,687
987,748
Total
funds
2022
£
95,159
80,756		 As restated
Total
funds
2021
£
759,949
226,598
1,201
987,748
Total
funds
2021
£
80,756
Bank interest receivable
Total 2021 as restated		 Unrestricted
funds
2022
£
5,796
5,502		 Total
funds
2022
£
5,796
5,502		 As restated
Total
funds
2021
£
5,502

Page 25

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Charitable activities

Advancement of education
Total 2021 as restated		 Direct costs
2022
£
379,760
125,490		 Support
costs (note
9)
2022
£
969,152
773,138		 Total
funds
2022
£
1,348,912
898,628		 As restated
Total
funds
2021
£
886,468

8. Analysis of expenditure for raising funds

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Administration costs 5,276 5,276 3,035

9. Analysis of support costs

Staff costs
Premises costs
Other costs
Audit and accountancy
Legal and professional
Depreciation
Total 2021 as restated		 Support
2022
£
727,288
9,939
171,335
-
-
34,337
942,899
765,325		 Governance
2022
£
-
-
-
12,269
13,984
-
26,253
7,813		 Total
funds
2022
£
727,288
9,939
171,335
12,269
13,984
34,337
969,152
773,138		 As restated
Total
funds
2021
£
629,487
9,779
107,687
7,813
-
18,859
773,625

Page 26

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Auditors' remuneration

2022 2021
£ £
Fees payable to the Company's auditor for the audit of the Company and
Subsidiary's annual accounts 10,250 8,500
Fees payable to the Company's auditor in respect of:
All non-audit services not included above 2,000 1,795
11. Net income/(expenditure) for the year
2022 2021
£ £
This is stated after charging:
Operating lease rentals - Equipment 5,536 4,438
Depreciation 7,629 10,846
Amortisation 26,708 8,013

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2022
£
624,842
56,079
46,367
727,288		 Group
2021
£
545,033
46,996
37,458
629,487		 Company
2022
£
624,842
56,079
46,367
727,288		 Company
2021
£
545,033
46,996
37,458
629,487

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

Group Group Company Company
2022 2021 2022 2021
No. No. No. No.
Management 24 21 24 21

Page 27

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. Staff costs (continued)

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

Group Group
2022 2021
No. No.
In the band £70,001 - £80,000 1 1
In the band £100,001 - £110,000 1 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 £258,593 (2021: £246,474).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, expenses totalling £NIL were reimbursed or paid directly to Trustee (2021 - £217 to 2 Trustees). The expenses related to travel reimbursements.

0 Trustee (2021: 1) claimed fees for educational consultancy which is not included in the above, under the authority of the Articles of Association as follows:

Stephen McKernan 2022
£
-
-		 2021
£
1,000
1,000

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

Page 28

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14.
Intangible assets
Group and Company
Cost
At 1 September 2021
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Computer
software
£
80,125
80,125
8,013
26,708
34,721
45,404
72,112

Page 29

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Tangible fixed assets

Group and Company

Cost or valuation
At 1 September 2021
Additions
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold
property
£
499,855
-
499,855
10,588
-
10,588
489,267
489,267		 Fixtures and
fittings
£
77,510
3,154
80,664
68,218
7,629
75,847
4,817
9,292		 Total
£
577,365
3,154
580,519
78,806
7,629
86,435
494,084
498,559

Page 30

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Fixed asset investments

Company
Cost or valuation
At 1 September 2021
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Investments
in subsidiary
companies
£
1
1
1
1

Page 31

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 2022 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 95,159 (10,176) 84,983 80,756
(Trading) Limited 2022 results
The Independent Schools Association 80,756 (6,760) 73,996 69,025
(Trading) Limited 2021 results
Stocks
Group Group Company Company
2022 2021 2022 2021
£ £ £ £
Finished goods and goods for resale 5,254 5,254 5,254 5,254

18. Stocks

Page 32

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2022
£
86,780
-
45
58,720
145,545		 Group
As restated
2021
£
12,849
-
37,074
50,902
100,825		 Company
2022
£
36,847
-
45
58,720
95,612		 Company
As restated
2021
£
5,161
2,109
75
50,902
58,247

20. Creditors: Amounts falling due within one year

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 2021
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 August 2020		 Group
2022
£
-
17,137
-
39,131
100,359
106,804
263,431
Group
2022
£
69,779
84,043
(69,779)
84,043		 Group
As restated
2021
£
7,362
45,620
-
51,611
90,223
87,483
282,299
Group
2021
£
74,035
69,779
(74,035)
69,779		 Company
2022
£
-
17,137
26,741
17,162
100,359
64,216
225,615
Company
2022
£
34,023
44,930
(34,023)
44,930		 Company
As restated
2021
£
7,362
45,620
33,749
14,611
90,223
44,148
235,713
Company
2021
£
26,825
34,023
(26,825)
34,023

Page 33

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds

Statement of funds - current year

Balance at 1 Balance at
September Transfers 31 August
2021 Income Expenditure in/out 2022
£ £ £ £ £
Unrestricted funds
Designated funds
Area branches 125,121 30,395 (45,111) 6,275 116,680
General funds
General funds 1,356,417 1,303,247 (1,309,077) (6,275) 1,344,312
Total Unrestricted funds 1,481,538 1,333,642 (1,354,188) - 1,460,992
Statement of funds - prior year
Balance at As restated
1 September As restated Balance at
2020 (as As restated As restated Transfers 31 August
restated) Income Expenditure in/out 2021
£ £ £ £ £
Unrestricted funds
Designated funds
Area branches 112,882 22,961 (12,072) 1,350 125,121
General funds
General funds 1,184,153 1,051,045 (877,431) (1,350) 1,356,417
Total Unrestricted funds 1,297,035 1,074,006 (889,503) - 1,481,538

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

Unrestricted general funds

This represents funds with no restrictions applied.

Area branches

This represents funds generated by ISA's area branches which are designated for their use.

Page 34

THE INDEPENDENT SCHOOLS ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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/(decrease) in creditors
Net cash provided by/(used in) operating activities		 Group
2022
£
(20,546)
34,337
(5,784)
(44,450)
(19,138)
(55,581)		 Group
As restated
2021
£
184,503
18,859
(5,491)
(2,472)
23,905
219,304
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
Cash at bank and in hand
Bank overdrafts repayable on demand		 At 1
September
2021
£
1,087,087
(7,362)
1,079,725		 Group
2022
£
1,034,136
1,034,136
Cash flows
£
(52,951)
7,362
(45,589)		 Group
As restated
2021
£
1,087,087
1,087,087
At 31 August
2022
£
1,034,136
-
1,034,136

Page 35

THE INDEPENDENT SCHOOLS ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 £46,367 (2021: £37,458). Balances owing to the fund at the year end amounted to £4,252 (2021: £NIL).

26. Operating lease commitments

At 31 August 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Equipment
Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
5,455
7,588
13,043		 Group
2021
£
4,438
5,906
10,344		 Company
2022
£
5,455
7,588
13,043		 Company
2021
£
4,438
5,906
10,344

27. Related party transactions

During the year the charity procured services of £11,400 (2021: £3,900) 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 2022 (2021 - £NIL).

During the year the charity procured services of £212,014 (2021 - £205,016) 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 2022 was £74,487 (2021 - £68,258).

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 36