THE WELSH SCHOOLS TRUST LTD
REGISTERED CHARITY NUMBER 1167479 COMPANY LIMITED BY GUARANTEE NUMBER 04783466
REPORT AND FINANCIAL STATEMENTS
31 AUGUST 2023
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The Welsh Schools Trust
Registered charity number 1167479 Company limited by guarantee number 04783466
Reference and Administrative Details
Board of Trustees
(Company Directors) Ms Glenys Roberts (Chair) Mrs. Ann Batey (resigned Mrs Angela Robinson Mr Ceredig Thomas (Vice-Chair) Ms Carole Boyce Ms Rhiannon Evans
Dr Catherine Emmerich – appointed 5 October 2022, resigned Dr Lynne Sykes – appointed 5 October 2022
Registered Office
73, Cornhill, London EC3V 3QQ
Correspondence address
Hanwell Community Centre, Wescott Crescent, London W7 1PD.
Independent Examiner
Thomas Ward FCA, Lonsdale Ward Limited, 5, Market Yard Mews 194-204 Bermondsey Street, London SE1 3TQ
Insurance Brokers
Hayes Parsons, Colston Tower, Colston Street, Bristol BS1 4XE
Bankers
HSBC UK
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The Welsh Schools Trust Ltd.
Trustees’ and Directors’ Report 31/8/23
Purpose of the charity:
The London Welsh School (Ysgol Gymraeg Llundain) was established in 1958 by a group of parents to provide an education for children between the ages of 3 and 11yrs. The school is an Independent School with charitable status and registered as a company limited by guarantee. Its objective is to provide children with a bi-lingual education in Welsh and English by following the National Curriculum of Wales. The school operates on a non-selective basis and admits pupils without reference to ability or aptitude. The school’s Fee Policy includes a dispensation process, so that no child is turned away on financial grounds. The Trustees therefore believe that the public benefit objectives of The Charity Commission’s guidance are met.
Whilst aiming for the highest standards of academic education, the school’s ethos is based on Christian principles, which provides the pupils with a sound moral compass and nurtures the pupils in the best of British values. The pupils are encouraged to aim for excellence in every endeavour, to develop an enquiring mind, and to acquire a love of learning and of the Welsh language and culture.
Achievements and performance:
The school’s academic performance is monitored by three Trustees who are members of the Curriculum and Standards Sub-committee. The group meets twice a term with the Headteacher to scrutinise and support the standard of teaching and learning from Early Years to Year 6. It monitors pupil attainment and progress, drawing on both formative and summative data. A summary of this information is provided for the Board’s scrutiny. The Board is satisfied with the results.
The Headteacher and Staff continue to work extremely hard to bridge the achievement gap created by the disruption to education as a result of the Covid-19 lockdowns. Throughout, the Board has worked diligently to support and advise the Headteacher and Staff with regular meetings held between the Chair of Directors and the Headteacher in which the Headteacher is held to account and matters such as CPD of staff, resourcing and marketing are discussed.
The long term impact of the pandemic has had an effect on numbers on roll, as with many other schools as noted in the press, with pupil numbers for September 2022 not increasing as expected. During lockdown government advice was to stay local and therefore families who would have travelled to the Welsh school did not and children settled into their local schools nearby.
However, the Welsh School is resilient and as we plan for the future we will work to our strengths to share our common goal which is to offer our pupils a sound, high quality bilingual education within a nurturing environment. We were awarded GOOD in our Ofsted inspection in January 2023 which is testimony to our hard work and resilience.
The pupils participate in a wide range of extra-curricular activities in London and Wales. These include participating in the annual St. David’s Day Service at The Palace of Westminster, competing at the Urdd National Eisteddfod and, at the end of the Summer Term, a three day visit to the Urdd’s recreational centre at Llangrannog, to name but a few. Ofsted has commended our Personal Development provision as outstanding.
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The Welsh Schools Trust Ltd.
Trustees’ and Directors’ Report 31/8/23 (continued)
Financial review:
The school’s financial statements accompany this report. The Income and Expenditure account for the financial year to 31/8/23 resulted in a shortfall of £13,963. This compares with a surplus of £259 for the financial year to 31/8/22.
The school’s total income of £234,331 for the year ending 31/8/23 is derived from three sources. 20% of this income comes from parental fees and the London Borough of Ealing's (LBoE) contribution to nursery education. Another 40% of the income is derived from a grant received from the Welsh Government which is subject to a new application every year. The remaining 40% of income arises from donations from institutions and private individuals, including the Radnor Walk and Kings Cross Chapel Trusts, and the fundraising events of the school’s Parents Teachers Friends Association (PTFA). The Trustees recognise that donation and bequest income is highly volatile and unpredictable, and it cannot be assumed that this level of donation income can be sustained in future years.
The five principal expense categories that account for 89% of the school expenses are staff salary, pension and training costs, rent for the school building payable to London Borough of Ealing, educational material, insurance and depreciation of fixed assets.
Management accounts are prepared three times a year by our accountants at the end of each term, the results of which are compared with a budget. Significant variances are investigated and explained.
The school has established a Designated Fund in the Balance Sheet of £55,000 to meet exceptional costs not normally incurred in the operation of the school or unexpected shortfalls of income. An example would be a serious fire forcing the closure of the school building, and the requirement to pay a premium for a short lease of an alternative building. The Trustees have discretion on what type of extraordinary situation would require these Reserves to be used, but the authority of all Board members would be required to release funds from the Designated Fund. Cash deposits meeting at least the value of the Designated Fund are held in HSBC Money Market accounts on a term of 3 or 6 months.
Thanks to donations from the PTFA and the Chapels a modest Diamond Jubilee Bursary Fund was set up during 2019/20 and added to during 2020/2021.This fund is ring fenced from the School’s other funds. It has been established to provide financial assistance to pupils or families in need of support.
Financial outlook for 2023/24:
The financial outlook for the academic year 2023/24 is not positive because of the drop in pupil numbers over the period since the Covid-19 pandemic. There is a continued marketing campaign ongoing to raise the profile of the school and attract new families. Costs are being tightly controlled. Our strategy for the next couple of years continues to focus on increasing pupil numbers.
Although pupil numbers have reduced and there has been a reduction in total fee income there has been no corresponding decrease in costs. Our major costs are fixed and not dependent on the number of pupils. We have been grateful in past years for the generous financial support of Trusts of Radnor Walk and Kings Cross Chapels, as well as the vigorous fundraising efforts of the school's PTFA. None of this financial support is guaranteed. In addition due to reduced pupils, the membership of the PTFA is reduced. These uncertainties, has required the preparation of another cautious and prudent Budget for next year.
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The Welsh Schools Trust Ltd.
Trustees’ and Directors’ Report 31/8/23 (continued)
Structure, Governance and Management
The Welsh Schools Trust Ltd. is a company limited by guarantee and a registered charity. The charity operates as a school known as The London Welsh School / Ysgol Gymraeg Llundain. The address of the school is Hanwell Community Centre, Wescott Crescent, London W7 1PD.
The school is regulated by Ofsted and is registered as a charity. The school is also incorporated as a company limited by guarantee. The affairs of the school are governed by a Board of Directors. The Directors of the company are also the Trustees of the charity. A list of names of the Trustees is provided in the Reference and Administrative Section above.
Appropriate training is given to Board members on a regular basis. Board meetings are held twice a term i.e. six times a year. Certain duties are delegated to Board sub-committees which meet on a more frequent basis. These sub-committees comprise of the Curriculum and Standards Subcommittee, the Finance Sub-committee, and the Risk Sub-committee.
The Board maintains a Risk Register which covers the key strategic, reputational, operational, regulatory and financial risks of the school. The Risk Register is reviewed annually, with risks being prioritised appropriately. Controls to mitigate the risks are included in the Register.
Appropriate risks are insured with Ecclesiastical through brokers Hayes Parsons, a Bristol based broker specialising in school insurance. The Ecclesiastical policy includes employers' liability cover for £10 million, and Public and Product liability for £10 million, as well as other insurable risks.
We employ Solomon Belay as the school’s Data Protection Officer (DPO) who reviews General Data Protection Regulations (GDPR) requirements and ensures that the school is compliant. No data breaches have been detected or reported by the school since the GDPR introduction in May 2018. All sensitive electronic school data is stored on the school’s central data server. Paper based sensitive school data is appropriately marked and stored securely in locked filing cabinets.
Information Technology Security is reviewed on a regular basis by Solomon Belay. All computers at the school have anti-virus protection installed (Sophos Intercept) and are protected with the latest anti-virus definitions and software. A Sonic Wall firewall is installed on the school network to prevent unauthorised access from the internet to school systems.
The school has a close relationship with the Parents Teachers Friends Association (PTFA) which is open to all parents, carers and friends to join. It organises fundraising events involving the school families, the wider local community and supporters from Wales. The school receives donations from the fund-raising activities of the PTFA, which is shown as part of the school’s donation income. PTFA is registered as a separate charity.
Trustee report approved by:
Glenys Roberts (Chair)
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25[th] June 2024
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Report of the Independent Examiner to the Trustees of The Welsh Schools Trust Ltd
I report on the accounts of The Welsh School Trust for the year ended 31st August 2023, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes, set out on pages 10 to 13.
This report is made solely to the Charity’s Trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. My examination has been undertaken so that I might state to the Charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for my examination, for this report, or for the opinions I have formed.
Respective responsibilities of Trustees and Examiner
The Charity’s Trustees are responsible for the preparation of the accounts. The Charity’s Trustees consider an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
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Examine the accounts under section 145 of the 2011 Act;
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To follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act; and
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To state whether particular matters have come to my attention.
Basis of Independent Examiner’s Report
My examination was carried out in accordance with the general Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes a consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.
Independent Examiner’s Statement
In connection with my examination, no matter has come to my attention:
a) which gives me reasonable cause to believe that, in any material respect, the requirements:
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to keep accounting records in accordance with section 145 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
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have not been met; or
b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached
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5, Market Yard Mews Thomas Ward FCA 194-204 Bermondsey Street Lonsdale Ward Limited London SE1 3TQ 27[th] June 2024
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The Welsh Schools Trust
Statement of Financial Activities (Incorporating an Income and Expenditure Account) For the year ended 31 August 2023
| Unrestricted Funds 2023 £ Notes Income from: Donations and legacies Grant received 3 97,312 Donations 89,640 Charitable activities Parental contributions 43,747 Sundry income 362 Investments Bank interest received 3,270 Total Income 234,331 Expenditure on: Charitable activities Educational materials 9,943 Support costs 4 238,351 Total Expenditure 248,294 Excess of expenditure over income (13,963) Total Funds Brought Forward 140,723 Total Funds Carried Forward at 31 August 2023 126,760 |
Unrestricted Funds 2022 £ 97,445 68,246 88,301 141 258 254,391 8,195 245,937 254,132 259 140,464 140,723 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 10 to 13 form part of the financial statements.
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The Welsh Schools Trust Company registration number : 04783466
Balance Sheet as at 31 August 2023
| Note Tangible Fixed Assets 7 Current Assets Cash at bank Debtors Creditors, amounts falling due within one year 8 Net Current Assets Net Assets Unrestricted Funds General funds 9 Designated funds 9 |
2023 £ 124,631 6,308 130,939 (6,113) £ £ |
£ 1,934 124,826 126,760 47,760 79,000 126,760 |
2022 | £ 1,513 139,210 |
||
|---|---|---|---|---|---|---|
| £ 149,060 1,690 150,750 (11,540) £ £ |
||||||
| 140,723 | ||||||
| 61,723 79,000 |
||||||
| 140,723 |
The company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its accounts for the year ended 31st August 2023 in accordance with section 476 of the Companies Act 2006. The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with the provisions of FRS 102 SORP.
Approved by the Board of Trustees on 25[th] June 2024 And signed on their behalf by:
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Mrs A.E. Robinson Director
The notes on pages 10 to 13 form part of the financial statements.
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The Welsh Schools Trust Ltd
Statement of Cash Flows
For the year ending 31 August 2023
| Note £ Cash flows from operating activities: Net cash (used)/provided by Operating activities11 Cash flows from investing activities Interest Payments to acquire fixed assets Change in cash and cash equivalents In the reporting period Cash and cash equivalents at the start of the reporting period Cash and cash equivalents at the end of the reporting period £ |
2023 £ (26,150) 3,270 (1,549) (24,429) 149,060 124,631 |
2022 £ £ 701 258 (1,154) (195) 149,255 £ 149,060 |
|
|---|---|---|---|
| £ £ |
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The Welsh School Trusts
Notes to the Financial Statements
For the year ended 31 August 2023
1. General information
The London Welsh School (Ysgol Gymraeg Llundain) is an Independent School with charitable status and registered as a company limited by guarantee, incorporated in England and Wales. Its objective is to provide children with a bi-lingual education in Welsh and English by following the National Curriculum of Wales, and to nurture the children in the best of British values. The charity is a public benefit entity. The address of its registered office is 73, Cornhill, London EC3V 3QQ.
2 . Summary of Significant Accounting Policies
Basis of accounting
These financial statements have been prepared in accordance with 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), the Charities Act 2011 and the Companies Act 2006.
The financial statements are prepared under the historical cost convention. The principal accounting policies that have been applied to all periods presented in these financial statements are set out below.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies selected for use by the Charity. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates.
(b) Going concern
Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Trustees have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements.
(c) Income recognition
All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity becomes legally entitled to the income, it is probable that the income will be received, and the amount can be quantified with reasonable accuracy.
Income from government and other grants are recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.
(d) Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is charged to the SOFA on an accruals basis.
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The Welsh Schools Trust Ltd Notes to the Financial Statements For the year ended 31 August 2023
2 . Accounting Policies (continued)
(e) Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less any residual value, of each asset evenly over its estimated useful life as follows:
Land and buildings Equipment
33% straight line 33% straight line
(f) Gifts in kind
Gifts in kind are brought into account at their estimated market value at the time the relevant gifts are made.
(g) Debtors
School fee and other debtors are recognised at the settlement amount due less any impairment losses for bad or doubtful debts.
(h) Creditors and provisions
Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
(i) Financial instruments
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.
(j) Pensions
Contributions to defined contribution plans are expensed in the periods to which they relate.
(k) Fund accounting
The general funds of the School represent unrestricted funds expendable at the discretion of the Trustees in furtherance of the objects of the charity. Designated funds comprise unrestricted funds which have been set aside by the Trustees for a specific purpose.
3. Grants
| Welsh Government London Borough of Ealing £ |
2023 93,360 3,952 97,312 £ |
2022 90,000 7,445 |
|---|---|---|
| 97,445 |
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The Welsh Schools Trust Ltd Notes to the Financial Statements
For the year ended 31 August 2023
4. Charitable expenditure – support costs
| Charitable expenditure – support costs | ||
|---|---|---|
| Staff costs Property costs Administrative expenses £ |
2023 177,584 28,279 32,488 238,351 £ |
2022 193,133 29,964 22,840 |
| 245,937 |
Administrative expenses include an independent examiner’s fee of £660 (2022 - £600).
Salaries
| Staff costs Wages and salaries Social Security Costs Pension costs £ |
148,989 8,627 19,968 177,584 £ |
161,657 10,030 21,446 |
|---|---|---|
| 193,133 |
The average number of employees during the year was 6 (2022: 6), engaged in the management and operation of the school.
During the year no employee received emoluments above £60,000 (2022: Nil).
Key management is considered to be the Trustees. No trustees received any remuneration or were reimbursed for expenses incurred.
Taxation
The Trust is exempt from corporation tax on its charitable activities.
Fixed assets
| Cost As at 1st September 2022 Additions At 31stAugust 2023 Depreciation As at 1st September 2022 Charge for the period As at 31st August 2023 Net book value As at 31st August 2023 As at 31st August 2022 |
Land and Buildings £ 14,000 - 14,000 14,000 - 14,000 - - |
Equipment £ 13,627 1,549 15,176 12,114 1,128 13,242 1,934 1,513 |
Total £ 27,627 1,549 |
|||
|---|---|---|---|---|---|---|
| 29,176 | ||||||
| 26,114 1,128 |
||||||
| 27,242 | ||||||
| 1,934 | ||||||
| 1,513 |
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The Welsh Schools Trust Ltd Notes to the Financial Statements For the year ended 31 August 2023
8. Creditors – amounts falling due within one year
| Creditors – amounts falling due within one year | ||||
|---|---|---|---|---|
| Other taxation and social security payable Accruals £ |
2023 2,387 3,727 6,114 £ |
2022 2,190 9,350 |
||
| 11,540 |
9. Summary of Funds
| As at 1stSeptember 2022 Deficit for the year At 31st August 2023 |
General Funds 61,723 (13,963) 47,760 |
Designated Funds 79,000 - 79,000 |
Total Funds 140,723 (13.963) |
|---|---|---|---|
| 126,760 |
All funds are unrestricted. The Trustees have determined that there should be a designated fund set aside to meet exceptional costs not normally incurred in the operation of the school or unexpected shortfalls of income of £55,000 and a bursaries fund of £24,000 to meet the cost of bursaries in future years.
10. Lease commitments
The trust has annual commitments of £27,948 in respect of a lease on its property that has 2 years to run.
11. Notes to the cash flow statement
Reconciliation of net income to net cash inflow from operating activities:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Net (expenditure)/income | (13,963) | 259 |
| Bank interest receivable | (3,270) | (258) |
| Depreciation | 1,128 | 1,129 |
| (Increase)/Decrease in debtors | (4,618) | (1,560) |
| Increase/(Decrease) in creditors | (5,427) | 1,131 |
| –––––––– | –––––––– | |
| Net cash provided (used) by operating activities |
(26,150) | 701 |
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