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2020-03-31-accounts

REGISTERED CHARITY NUMBER: 1175360

COMPANY REGISTRATION NUMBER: CE011855

TRUSTEES' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

FOR

QUEEN MARY'S SCHOOLS FOUNDATION

QUEEN MARY'S SCHOOLS FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Page
Reference and Administrative Details 1
Trustees' Report 2 to 9
Report of the Independent Auditor 10 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Financial Statements 15 to 24

QUEEN MARY'S SCHOOLS FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2020

TRUSTEES June Aubrook Susan Blakemore Vivian Fairbank Rebecca Hearsey John Punch Peter Stretton (resigned 6/5/2020) Philip Sturrock MBE John Vallance Paul Lee Katrina Healey-Davis Daniel Hunt (appointed 9/9/20) PRINCIPAL ADDRESS 20 Birmingham Road Walsall West Midlands WS1 2LT REGISTERED CHARITY 1175360 NUMBER INDEPENDENT AUDITOR Baker (Midlands) Limited Arbor House Broadway North Walsall WS1 2AN ACCOUNTANTS Whitehouse Ridsdale Limited 20 Birmingham Road Walsall West Midlands WS1 2LT BANKERS Lloyds Bank plc The Bridge Walsall West Midlands WS1 1LU CLERK TO THE GOVERNORS David Milne 20 Birmingham Road Walsall West Midlands WS1 2LT INVESTMENT ADVISERS I M Asset Management Ltd Riverside East 2 Millsands Sheffield S3 8DT

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

The trustees present their report with the financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of 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).

The Foundation was incorporated as a Charitable Incorporated Organisation (CIO) on 25 October 2017. It was previously an unincorporated charity and continued to operate as such until 31 March 2018. The financial statements attached reflect the activities of the CIO from 1 April 2018 to 31 March 2020.

INTRODUCTION

Our Annual Report for 2019-2020 looks back to a world before Covid 19 and the closure of the Foundation's Schools during the summer term.

Whilst so much has changed, the principles underlying our approach as a Charitable Foundation remain the same.

As the financial year drew to a close, it became apparent that the pandemic had the potential to impact the Foundation's income in terms of the fees generated by Mayfield School.

Mitigations included the reduction of fees for the summer term (to ensure that parents were able to afford to keep their children at the School) and the use of the Job Retention Scheme.

The Foundation is confident that as a result of these actions, coupled with its pre-existing and longer term investment strategy, it remains well equipped to meet its objectives and to meet the new challenges posed by the pandemic. Indeed, Mayfield School re-opened and enjoyed a successful Autumn Term without any significant financial repercussions and the number of pupils on the School Roll remains healthy.

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

OBJECTIVES AND ACTIVITIES

On incorporation as a CIO the Trustees adopted a governing document setting out the charitable objectives as follows.

The Foundation furthers the education of pupils attending the schools of the foundation and which are, namely, Mayfield Preparatory School, Queen Mary's Grammar School and Queen Mary's High School. Each of the schools are based in Walsall, West Midlands.

The Foundation assists pupils by the funding of prizes, scholarships and maintenance allowances. The objects of the CIO are the advancement of education by:

The aims of the Charity are (directly) the provision of excellent standards of education to all pupils, and to promote and enhance the education of boys and girls attending the schools of the Foundation, and by so doing, to develop life-long benefits to the whole community; and (indirectly), through the Foundation Schools, the promotion of education at other schools.

In support of these overall aims, the charity looks to enhance the facilities and opportunities at the three schools in the Foundation. In addition, the charity looks to contribute in the wide public interest to the welfare and education of young people from diverse backgrounds.

The Foundation recognises that the pandemic has reaffirmed and heightened significant inequalities in our society and, in some cases, between students attending the Foundation Schools.

Following their recent successful applications to the Selective Schools Expansion Fund, both the Grammar and the High School are committed to attracting a greater number of students from disadvantaged backgrounds. The Foundation is facilitating a lease over part of its premises to enable extra classroom space at the High School and which will be necessary to allow it to accommodate the resulting increase in student numbers.

The following people benefit from the work of the Charity: directly, the boys and girls attending the schools. Indirectly, through community links provided by the Grammar and High Schools, other schools in the local area, where support is provided to primary and secondary schools (for example in Maths, English and Languages) and particularly those schools forming part of The Mercian Trust, of which both the Grammar and High Schools are now members.

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

The Mayfield School makes its facilities available to other local groups and schools, and invites other schools to pastoral events. Admission to the High School and Grammar School is upon the basis of academic ability and potential. There are no fees payable for admission to these two schools.

The Charity reviews the needs of the beneficiaries of its work in the following ways: -

The key elements to the Charity’s medium to long term strategy would be as follows: -

The Charity measures the success of the strategy in the following ways:-

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

The Trustees are familiar with their duty to ensure public benefit, and in this respect, have had regard to the guidance issued by the Charity Commission. The Trustees ensure that each of the three schools in the Foundation demonstrates in reports received by the Trustees that the wider community is benefited. Given that the two secondary schools are open to all candidates based on proven ability, the public benefit is considered satisfied for these schools. Mayfield has recently joined a local consortium of maintained primary schools to provide cross-school support and to exchange good practice, and it makes its facilities (including its playing fields) available for other local schools; the Trustees are satisfied that there is a wider benefit for children in the local community as a result.

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

ACHIEVEMENT AND PERFORMANCE

The main objectives set previously included:

In respect of these objectives, it is considered that the following main achievements have been accomplished in the past year:

Following the appointment of I M Asset Management Ltd as Investment Advisors it was resolved that the Foundation would pursue a financial investment strategy on a low to medium risk, to optimise an income return without diminution of the investment capital. Further information is given in the section "Financial Review" below.

The benefits provided to the students at the three schools by the work of the Foundation are reflected in the above, and in particular:

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

The investment and fundraising by the Foundation has always been modest, with the Trustees preferring to maintain a low to medium investment risk to investments, as described above, and not to incur expense in speculative fundraising if that was not required. The Trustees consider their approach has been appropriate over the long term. Investment income has been maintained and Mayfield's reserves are comfortable. Notwithstanding the impact of the pandemic, the Trustees consider that their financial strategy will not change in the foreseeable future and will continue to provide sufficient financial support to the three schools. The Trustees are conscious, however, of the potential financial pressure on the Grammar and High Schools, which are maintained by public funds. The increasing pressure from lack of central funding is regarded as a potential harm to those schools. The Trustees recognise, however, that although they can continue to maintain support such as is provided at present, it would not be possible to assume the support currently provided by central funds.

FINANCIAL REVIEW

The Trustees have reviewed the financial performance of the Foundation for the past year and assessed the financial situation of the charity. There have been no significant events that have adversely affected the financial outcome. The volatility of the financial markets has had little adverse effect over the long term on the investment portfolio, which the Trustees consider is through a prudent investment policy and good advice.

Following a detailed presentation about funding strategies, and drawing upon the recommendation from various sources, the Trustees resolved:

Income from Mayfield Preparatory School remained under review. The school’s governing body, acting under the authority of the Trustees, undertook its annual review of fees and likely expenditure, and reported to the Trustees accordingly. The Trustees noted that such a review had considered the impact of any fees’ increase, the present financial climate, and had resolved that the school remained competitive against other local schools. The school continues to have waiting lists for all classes, and keeps a very tight and active control over collection of fees from parents. Accordingly, therefore, the Trustees considered that the financial position for Mayfield was satisfactory, and was well-established to meet the needs of the school.

Subject to the introductory comments made at the outset of this report, the Trustees therefore concluded that the charity's principal sources of funding, namely income from investments and from Mayfield, had not been adversely affected, and had been well-managed throughout the year.

The Trustees considered that no issues had been identified to suggest that operationally the charity was not a going concern.

The Trustees reviewed whether they required a formal policy on reserves. They concluded that it was not necessary to hold reserves at a particular level. The charity’s current assets were sufficient to accommodate known eventualities, including a contribution to the new multi-purpose hall for Mayfield. Reserves would be maintained to cover potential eventualities at Mayfield (for example, costs to provide cover for any long-term teacher absence), but such reserves were maintained on a prudent basis rather than through a formal policy.

PLANS FOR FUTURE PERIODS

There are no plans for any changes to the aims and objectives of the charity, which will be to offer financial and general support to the three schools of the Foundation, and to continue to monitor public benefit. It being recognised that additional assistance for disadvantaged students at both the Grammar and High Schools is likely as a result of the pandemic and the increase in numbers of such students at both Schools.

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity, Queen Mary’s Schools Foundation, was founded originally by Royal Letters Patent in 1554. It is now a Charitable Incorporated Organisation, number CE011855 .

There are three schools supported by the Foundation: Queen Mary’s Grammar School and Queen Mary’s High School converted on 1 June 2011 to Academy status under the Academies Act 2010. Both of these schools retain their status as non-fee paying selective grammar schools, where entry is based on ability tested by entrance examination. The Grammar School provides education to boys between Years 7 to 11 and to boys and girls in the Sixth Form; the High School provides education to girls between Years 7 to 11 and to girls and boys in the Sixth Form. The third school is Mayfield Preparatory School, an independent day school and nursery for children aged 3 to 11.

The Trustees who served during the year were:

June Aubrook Susan Blakemore Vivian Fairbank Rebecca Hearsey John Punch Peter Stretton Philip Sturrock MBE John Vallance Paul Lee Katrina Healey-Davis

Vacancies on the board of Trustees are filled by invitation or advertisement. The High School and Grammar School are represented by current Governors (traditionally, but not necessarily, the Chair, Vice Chair and others) and Mayfield by one current Governor (traditionally, but not necessarily the Chair). In this way, it is considered any potential conflicts of interest can be managed. The appointment is personal. If these Trustees leave the Governing Body of the appropriate schools, it is traditionally the case that the Trustee will retire from the Trust; if not, the remaining Trustees have the ability to remove them should they so wish. The positions of the Trustees who are not existing Governors would be advertised or nominated by other Trustees should vacancies occur, and an appropriate appointment made after due consideration by the existing Trustees as to the skills any proposed Trustee would bring to the Trust.

All new and existing Trustees and Goveners receive training from the Clerk as to their responsibilities and duties. Additionally, Governors at both the Grammar and the High School receive training from the Mercian Trust School Improvement Team. Governors are also able to receive training through the Local Authority.

The Trustees' Investment Committee reviews the Clerk's remuneration annually. The Mayfield Head's performance and salary is reviewed by a Mayfield Governor sitting with a Foundation Trustee. The Mayfield Governors appoint a sub-committee to review the performance and salaries of all other Mayfield employees. Their decisions are minuted by the Clerk.

The Trustees have examined the Foundation's activities and considered the risks faced. In their opinion there are established resources, controls and review systems which in normal conditions should allow such risks to be mitigated to an acceptable level. Mayfield School and the board of Foundation Trustees are separately insured with reputable insurance companies to cover liability. The accountants who assist the Foundation and the external auditors are regulated by professional bodies. The Investment Committee ensures there is a spread of investment to prevent over exposure in any one asset class area.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees 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).

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QUEEN MARY'S SCHOOLS FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

................................................................. John Punch - Trustee

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REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF QUEEN MARY'S SCHOOLS FOUNDATION

Opinion

We have audited the financial statements of Queen Mary's Schools Foundation (the 'charity') for the year ended 31 March 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditor thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF QUEEN MARY'S SCHOOLS FOUNDATION

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditor 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.

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 Report of the Independent Auditor.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Baker (Midlands) Limited Chartered Accountants & Registered Auditors Arbor House Broadway North Walsall WS1 2AN Date: .............................................

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

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QUEEN MARY'S SCHOOLS FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

Unrestricted
fund
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
4
3,787
Charitable activities
6
Charitable activities
1,809,990
Investment income
5
72,798
Total
1,886,575
EXPENDITURE ON
Charitable activities
7
Charitable activities
39,780
Support costs
56,957
Mayfield staff costs
1,384,549
Mayfield other costs
367,662
Total
1,848,948
Net gains/(losses) on
investments
-
NET
INCOME/(EXPENDITURE)
37,627
Transfers between funds
20
(16,579)
Net movement in funds
21,048
RECONCILIATION OF
FUNDS
Total funds brought
forward
549,662
TOTAL FUNDS CARRIED
FORWARD
570,710		 Restricted
fund
£
7,126
-
14,947
22,073
62,561
-
-
-
62,561
-
(40,488)
(18,399)
(58,887)
116,192
57,305		 Endowment
fund
£
-
-
-
-
-
9,209
-
-
9,209
(82,700)
(91,909)
34,978
(56,931)
4,210,570
4,153,639		 2020
Total
funds
£
10,913
1,809,990
87,745
1,908,648
102,341
66,166
1,384,549
367,662
1,920,718
(82,700)
(94,770)
-
(94,770)
4,876,424
4,781,654		 2019
Total
funds
£
36,980
1,716,482
99,724
1,853,186
33,491
61,319
1,278,462
366,246
1,739,518
51,793
165,461
-
165,461
4,710,963
4,876,424

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

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QUEEN MARY'S SCHOOLS FOUNDATION

BALANCE SHEET 31 MARCH 2020

Notes
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
20
Unrestricted funds
Restricted funds
Endowment funds
TOTAL FUNDS		 2020
£
3,927,711
924,049
4,851,760
37,901
711,274
749,175
(819,281)
(70,106)
4,781,654
4,781,654
570,710
57,305
4,153,639
4,781,654		 2019
£
3,194,611
1,015,959
4,210,570
54,068
712,958
767,026
(101,172)
665,854
4,876,424
4,876,424
549,662
116,192
4,210,570
4,876,424

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. John Punch - Trustee

The notes form part of these financial statements

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QUEEN MARY'S SCHOOLS FOUNDATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Notes
Cash flows from operating activities
Cash generated from operations
24
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Dividends received
Rental income
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Net cash provided by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2020
£
(56,329)
(56,329)
(733,100)
425
33,292
54,028
(645,355)
700,000
700,000
(1,684)
712,958
711,274		 2019
£
29,375
29,375
(660,266)
3,838
41,861
54,025
(560,542)
-
-
(531,167)
1,244,125
712,958

The notes form part of these financial statements

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QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

1. CHARITY INFORMATION

The Charity, Queen Mary’s Schools Foundation, was founded originally by Royal Letters Patent in 1554. It is a Charitable Incorporated Organisation, registered number CE011855 .

2. ACCOUNTING POLICIES

Accounting convention

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Trust’s governing document, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include certain items at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The Mercian Trust, formerly Queen Mary's Grammar School (Walsall), became a Multi-Academy Trust on 1 January 2018. New articles of association provided for five members, including the Queen Mary's Schools' Foundation itself and two persons nominated by the Foundation. No benefit accrues to the Foundation from this structure and there is no power to govern the financial and operating policies in order to obtain any benefit from the activities of The Mercian Trust. Accordingly the Foundation has not consolidated any accounts of The Mercian Trust for the period to 31 March 2020.

Going concern

The Trustees are required to assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

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continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

2. ACCOUNTING POLICIES - continued

Incoming resources

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Income from charitable activities arises from fees charged to parents of children attending Mayfield Preparatory School.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent and is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of any impairment losses.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/(expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in net income/(expenditure) for the year.

All none property related assets are treated as renewals rather than being capitalised.

Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/ (expenditure) for the year. Transaction costs are expensed as incurred.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the statement of financial activities unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. VAT on expenditure is irrecoverable and the cost is included within the item of expenditure to which it relates.

Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

2. ACCOUNTING POLICIES - continued

Charitable funds

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.

Pension costs and other post-retirement benefits

Retirement benefits for teachers at Mayfield Preparatory School are provided by the Teachers Pension Scheme ("TPS") which is a defined benefit scheme. Retirement benefits for other members of staff are provided by a group defined contribution scheme with an insurance company and employer contributions to this scheme are charged as an expense as they are paid.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 21, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank balances.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

-17-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

4.
DONATIONS AND LEGACIES
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Donations and gifts
3,787
7,126
-
5.
INVESTMENT INCOME
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Rental income
54,028
-
-
Income from listed
investments
18,353
14,939
-
Interest receivable
417
8
-
72,798
14,947
-		 2020
Total
funds
£
10,913
2020
Total
funds
£
54,028
33,292
425
87,745		 2019
Total
funds
£
36,980
2019
Total
funds
£
54,025
41,861
3,838
99,724

6. INCOME FROM CHARITABLE ACTIVITIES

Activity
Fees receivable
Charitable activities		 2020
£
1,809,990		 2019
£
1,716,482

7. CHARITABLE ACTIVITIES COSTS

Charitable activities
Support costs
Mayfield staff costs
Mayfield other costs
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Rates, insurance and utilities
Maintenance of premises and equipment
Telephone, postage and stationery
Audit fees
Professional fees
Entrance examinations
Clerk to the governors
Learning resources
Computer costs
Administration and accountancy
Subscriptions and courses
Other costs
Carried forward		 2020
£
1,384,549
80,757
109,997
14,893
4,200
15,390
39,780
54,519
16,665
34,409
46,490
13,247
43,261
1,858,157		 Direct
Costs (see
note 8)
£
102,341
66,166
1,384,549
367,662
1,920,718
2019
£
1,278,462
63,712
63,737
17,392
4,080
22,044
33,491
58,521
21,607
61,222
46,620
19,427
44,799
1,735,114

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

-18-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

8. DIRECT COSTS OF CHARITABLE ACTIVITIES - continued

Brought forward
Donations and educational enrichment		 2020
£
1,858,157
62,561
1,920,718		 2019
£
1,735,114
4,404
1,739,518

9. TRUSTEES' REMUNERATION AND BENEFITS

None of the Trustees (or any persons connected with them) received any remuneration, benefits or expenses from the Trust during the year.

The total cost of employment for the key management personnel was £145,384 (2019: £144,291).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

10. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2020
£
1,126,073
83,850
174,626
1,384,549		 2019
£
1,059,661
77,198
141,603
1,278,462

The average monthly number of employees during the year was as follows:

Teaching and support 2020
51		 2019
51

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

£60,001 - £70,000
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
fund
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,608
35,372
Charitable activities
Charitable activities
1,716,482
-
Investment income
81,719
18,005
Total
1,799,809
53,377		 2020
1

Endowment
fund
£
-
-
-
-		 2019
1
Total
funds
£
36,980
1,716,482
99,724
1,853,186

-19-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
Restricted
fund
fund
£
£
EXPENDITURE ON
Charitable activities
Charitable activities
33,491
-
Support costs
50,170
4,404
Mayfield staff costs
1,278,462
-
Mayfield other costs
366,246
-
Total
1,728,369
4,404
Net gains on investments
-
-
NET INCOME
71,440
48,973
Transfers between funds
(645,595)
(14,671)
Net movement in funds
(574,155)
34,302
RECONCILIATION OF FUNDS
Total funds brought forward
1,123,817
81,890
TOTAL FUNDS CARRIED FORWARD
549,662
116,192
12.
TANGIBLE FIXED ASSETS
COST OR VALUATION
At 1 April 2019
Additions
At 31 March 2020
NET BOOK VALUE
At 31 March 2020
At 31 March 2019		 continued
Endowment
fund
£
-
6,745
-
-
6,745
51,793
45,048
660,266
705,314
3,505,256
4,210,570		 continued
Endowment
fund
£
-
6,745
-
-
6,745
51,793
45,048
660,266
705,314
3,505,256
4,210,570		 Total
funds
£
33,491
61,319
1,278,462
366,246
1,739,518
51,793
165,461
-
165,461
4,710,963
4,876,424
Freehold
property
£
3,194,611
733,100
3,927,711
3,927,711
3,194,611

Freehold land and buildings with a carrying value of £3,927,711 as at 31 March 2020 is included on the following bases.

Land which is subject to long leases in favour of the Academy Schools is included at nil value. The Mayfield Preparatory School was independently valued at 31 March 2018 by PBG Chartered Surveyors at fair value on the existing use basis. The report and valuation were prepared in accordance with the RICS Valuation - Professional Standards Global and UK ("The Red Book") 2014 prepared by the Royal Institution of Chartered Surveyors and also the RICS Global Valuation Practice Guidance - Application VPGA1 - Valuation for inclusion within financial statements. The valuation was undertaken by a Chartered Surveyor who is both a Registered Valuer and who conforms to the requirements of the above "Practice Statements" and who is also an External Valuer. The new School Hall constructed during this and the prior year has been included at its cost of £1,393,366. Borrowing costs totalling £14,320 have been included in the cost of this property. The capitalisation rate used was 2.75%.

-20-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

12. TANGIBLE FIXED ASSETS - continued

The additional educational facilities in Wales are included at the 2016 cost as the Trustees consider this to be appropriate.

The charity’s freehold investment properties were valued as at 31 March 2018 by independent external valuers Llewellen Chartered Surveyors. The valuations were in accordance with the requirements of the RICS Valuation - Global Standards 2017 and UK national supplement, Charities SORP and Financial Reporting Standard 102.The properties were valued on the basis of fair value subject to any existing leases. The valuer’s opinion of fair value was primarily derived using comparable recent market transactions on arm’s length terms.

13. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 April 2019
Additions
Disposals
Movement
At 31 March 2020
NET BOOK VALUE
At 31 March 2020
At 31 March 2019		 Listed
investments
£
1,015,959
266,374
(228,438)
(129,846)
924,049
924,049
1,015,959

There were no investment assets outside the UK.

The listed investments are shown at market value. The historic cost at 31 March 2020 was £756,374 (2019: £718,438).

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Tax
Prepayments and accrued income		 2020
£
22,047
-
15,854
37,901		 2019
£
14,461
7,662
31,945
54,068

-21-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 16)
Taxation and social security
Other creditors		 2020
£
700,000
25,544
93,737
819,281		 2019
£
-
23,126
78,046
101,172

16. LOANS

An analysis of the maturity of loans are given below:

Amounts falling due within one year on demand:
Bank loans		 2020
£
700,000		 2019
£
-

Post Year-end and upon completion of the new school hall, the development loan has been converted to a 20 year loan.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2020
£
3,077
7,975
11,052		 2019
£
2,713
3,821
6,534

18. SECURED DEBTS

The following secured debts are included within creditors:

Bank loans 2020
£
700,000		 2019
£
-

The bank loan is secured on the property and was repaid on 30 April 2020.

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Investments
Current assets
Current liabilities		 Unrestricted
fund
£
-
-
689,991
(119,281)
570,710		 Restricted
fund
£
-
-
57,305
-
57,305		 Endowment
fund
£
3,927,711
924,049
1,879
(700,000)
4,153,639		 2020
Total
funds
£
3,927,711
924,049
749,175
(819,281)
4,781,654		 2019
Total
funds
£
3,194,611
1,015,959
767,026
(101,172)
4,876,424

-22-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

20. MOVEMENT IN FUNDS

Unrestricted funds

The unrestricted funds amounted to £570,710 at 31 March 2020 (2019: £549,662).

The Trustees have made no specific designation for these funds.

Endowment funds

Foundation endowment
Prize funds
Scholarship funds
Restricted funds
Income arising on prize funds
Income arising on scholarship funds
Queen Mary's Grammar School development
campaign and parental funding
Mrs Richardson legacy for the benefit of Queen
Mary's High School		 2020
£
3,743,949
37,151
372,539
4,153,639
2020
£
5,173
30,814
13,268
8,050
57,305		 2019
£
3,766,081
38,322
406,167
4,210,570
2019
£
3,958
30,362
73,822
8,050
116,192

21. EMPLOYEE BENEFIT OBLIGATIONS

Mayfield Preparatory School contributes to one multi employer defined benefit scheme and one group defined contribution scheme. The cost of these contributions in respect of the year ended 31 March 2020 was £134,175 (2019: £103,151) and £40,451 (2019: £38,452) respectively.

22. CAPITAL COMMITMENTS

The project to develop facilities at Mayfield Preparatory School with the construction of a new multipurpose hall has continued during the year. The total project cost is budgeted to be £1,480,000, with £1,394,000 spent at 31 March 2020.

23. RELATED PARTY TRANSACTIONS

The Foundation owns the freehold land on which Queen Mary’s Grammar School and Queen Mary’s High School sites are based. These sites are leased to the Academy Schools on peppercorn rentals under 125 year leases, the terms of which have been approved by the Department for Education. Areas for playing fields are let under separate 10 year leases granted in 2011.

During the year Mr Lee served as both Trustee of the Foundation and Governor of Queen Mary’s Grammar School. Miss Hearsey served as both Trustee of the Foundation and Governor of Queen Mary’s High School. Mrs Aubrook served as both Trustee of the Foundation and Governor of Mayfield School.

During the year the Foundation, on behalf of Mayfield Preparatory School, paid £2,202 (2019: £1,626) to Queen Mary’s Grammar School for the use of its swimming pool.

-23-

continued...

QUEEN MARY'S SCHOOLS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2020

23. RELATED PARTY TRANSACTIONS - continued

During the year the Foundation made donations from unrestricted funds of £19,922 (2019: £16,891) to Queen Mary’s High School and £16,155 (2019: £16,599) to Queen Mary’s Grammar School to support the costs of the year 7 entrance examinations. Donations of £6,675 (2019: £6,800) were made to the High School to support a pupil with special needs. The Foundation also donated £750 to each School in 2019 for pastoral support. Further donations of £62,560 (2019: £4,404) were made from restricted funds for the Schools to use for educational enrichment.

24. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Losses/(gain) on investments
Interest received
Dividends received
Rental income received
Expenditure attributable to endowment
Decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operations		 2020
£
(94,770)
82,701
(425)
(33,292)
(54,028)
9,209
16,167
18,109
(56,329)		 2019
£
165,461
(51,793)
(3,838)
(41,861)
(54,025)
6,745
17,119
(8,433)
29,375

25. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/19 Cash flow At 31/3/20
£ £ £
Net cash
Cash at bank and in hand 712,958 (1,684) 711,274
712,958 (1,684) 711,274
Debt
Debts falling due within 1 year - (700,000) (700,000)
- (700,000) (700,000)
Total 712,958 (701,684) 11,274

-24-