**MARY WARD SETTLEMENT** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 JULY 2020** **MARY WARD SETTLEMENT (A COMPANY LIMITED BY GUARANTEE) TRADING AS MARY WARD CENTRE COMPANY NUMBER 46188 CHARITY NUMBER 223066** **MARY WARD SETTLEMENT FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **CONTENTS** |**CONTENTS**|| |---|---| ||**Page number**| |Report from the Chair|2-4| |Reference and Administrative Details|5| |Report of the Board of Trustees|6 - 21| |Statement of Corporate Governance and Internal Control|22 - 28| |Statement of Responsibilities of the Board of Trustees|29| |Independent A
Report to the Board of Trustees|30 - 32| |Consolidated Statement of Comprehensive Income|33- 35| |Consolidated Statement of Changes in Reserves|36| |Consolidated and Centre Balance Sheets as at 31 July|37| |Consolidated Statement of Cash Flows|38| |Notes to the Financial Statements|39- 64| |Summary of Results|65| 1 ## **MARY WARD SETTLEMENT REPORT FROM THE CHAIR FOR THE YEAR ENDED 31 JULY 2020** Mary Ward was on track for a successful year prior to the impact of COVID 19 in March 2020. On 15[th] of March 2020, the week prior to lockdown, enrolment and student numbers at Mary were in line with those at the same time in the previous year at 8,500 and 4,412 respectively; Mary Ward Legal continuing to provide specialist advice, casework and representation with demand far outweighing supply; and at Blackfriars parts of the community where there had not traditionally been strong links. At the Adult Education Centre, the national lockdown prevented us from offering any face to face learning in the 3[rd] term and the resulting loss of fee income has inevitably had a significant impact on the financial outturn for the year and will continue to have an impact into the next academic year. However, we were able to support almost 900 learners to continue learning through lockdown using a range of distance and online methods. Students on all accredited courses were supported to work towards their assessments and gain their qualifications. We also successfully delivered a wide range of additional online courses subjects including History, Philosophy, Economics, Ukulele, Keep Fit, Modern Foreign Languages, Singing, Psychology, Art, Community Interpreting and Pronunciation. This was the first time the Adult Education Centre had delivered on-line learning. It is clear that this will develop and remain part of our curriculum, offering alternative ways of learning to our students well beyond the current COVID crisis. As part of our support for all our students during this period of lockdown we have created 2 new pages on the website where there are a range of free resources and activities to keep people engaged and occupied - create a community feel for our students as well as enabling them to share their experiences. We intend that this should continue longer term in helping us strengthen our Mary Ward community. Covid-19 has had a significant impact on the Legal Centre and its clients. Nevertheless the Legal Centre helped 2,000 people with their legal issues during 2019-20 continuing to provide specialist advice casework and representation in the areas of debt, housing and welfare benefits, and a pro bono service offering advice on employment, housing, tax, consumer, general civil litigation, and family law. During the initial phase of lockdown, demand for advice in some areas fell due to measures introduced to reduce the impact of Covid-19, such as debt recovery and housing possession action being stayed, face-to-face tribunal hearings for welfare benefits appeals and PIP and ESA assessments being suspended, and payment holidays, though demand for employment and family matters rose dramatically. The Legal Centre is forecasting a surge in demand for advice in housing, debt and welfare benefits over the coming months when the measures to ease the impact of Covid-19 are removed, in particular when housing possession action resumes, and rising unemployment leads to increased debt and more people seeking benefits advice. To address the impact of Covid-19 the Legal Centre made a number of successful grant applications, securing funding from Trust for London via the Community Response Fund and the Community Justice Fund, and additional donations from our pro bono partners, including Linklaters, Clifford Chance, Eversheds, and Farrer & Co. The Legal Centre was able to maintain access to its specialist advice service and pro bono clinic during the lockdown by transforming its services from face-to-face to telephone and email. Prior to the lockdown, the Legal Centre continued to offer advice at various outreach venues across London and continued to develop its housing advice service in Newham and Southwark and grow its public law work. With a new grant from Trust for London and continuation funding from the City Bridge Trust, the Legal Centre was able to provide much-needed help with welfare benefits appeals and advice to people across London. From January 2021 the Legal Centre will have the benefit of funding from the Legal Education Foundation, under their Justice First Fellowship Scheme, to pay for another trainee solicitor. 2 **MARY WARD SETTLEMENT REPORT FROM THE CHAIR FOR THE YEAR ENDED 31 JULY 2020** At Blackfriars prior to March 2020 we saw the expansion of delivery services to local people and the continued development of links in the local community. Positive Ageing increased the number of its members through the new venue at Elephant & Castle Social Hub, and a steady stream of referrals. We continued to offer a wide range of activities, trips, hot food and the regular weekly befriending. Mental Health and Well-Being successfully concluded their delivery of the Well-Connected project and diversified continued to expand, both in the number of courses and total enrolments. The Orb Space project funded by the Department of Housing, Communities and Local Government continued during the year, opening the doors of the Settlement to parts of the local community which we have not traditionally had strong links with. During 2019-20 it attracted well over 350 people into the Settlement, and offered a wide range of activities and sessions. Some were regular and others were oneoff. We aim to continue some of the most successful of these, including cook & eat, spoken word, baby massage, and the death café. We had a hugely successful Black History Month event in October, with a number of incredibly talented spoken word artists, a local jazz band, hot food and the hall at capacity. We learned about the local community, something about bringing people together, and are working to raise funding for this project to continue. Following the nationwide lockdown in March, Blackfriars in Rushworth Street were closed to the public. The Mental Health & Wellbeing and Positive Ageing services immediately switched to providing emergency remote support for members. Initially this was focused on ensuring all members had food, medication and essentials. We worked closely with the wider voluntary and community sector and the Southwark Covid Hub, accepting referrals and working together to ensure that between us, needs were met. During the course of lockdown this support evolved and included: - one-to-one practical and emotional telephone support - an increase of the befriending service, using existing and new volunteers largely recruited from corporate partner organisations - in partnership with Fooditude, the delivery of over 100 meals per week to the most vulnerable members - the development of online and group telephone support sessions and activities We worked hard, and continue to do so, to mitigate the effects of Covid-19 and the lockdown on our members through the continuation of much needed services. The lockdown has highlighted the high levels of digital exclusion of the majority of Blackfriars members. Both teams started using telephone conferencing to try and overcome this, but the access to information, communication and entertainment which most would take for granted are just not possible for our members. This is an area of need which we will attempt to tackle in the coming year. We have made significant progress in developing partnerships in East London in preparation for our move to our new building in Stratford in 2022. We now have links with around 19 community organisations in our new area. In the first 2 terms around 25% of our community outreach work was with partners in East London. Serendipitously, the British Museum held a temporary exhibition of Middle Eastern artefacts called in multipartner art projects in response to the exhibition. Once again with the support of the British Museum students work was exhibited in the great court. 3 **MARY WARD SETTLEMENT REPORT FROM THE CHAIR FOR THE YEAR ENDED 31 JULY 2020** The redevelopment project for the Stratford building continued throughout the year and we have now developed a design for a building that will considerably improve the accessibility of all our courses, using level access. The building will have a very visible high street location and greatly improved specialist classroom facilities. We are very pleased to be supported by capital grants from Skills for Londoners, towards the whole project cost, from The London Marathon Trust, towards fitness and movement facilities, and from the Clothworkers Foundations, for our visual Arts spaces. Although this project too has been impacted by COVID, we continue to fundraise and expect to break ground in the spring of 2021. We would like to extend our thanks to all our service providers and users, and to our funders, many of whom have supported us for a number of years, and to all the individuals who volunteer in our operational activities. With their help we are able to provide classes, activities, support and advice on a whole range of issues, which have a positive impact on the lives of those we touch. In particular we would like to thank those funders who have supported our core work, and been flexible with their support during the last few months during the challenges of Covid-19. Frances Bates Chair 4 ## **MARY WARD SETTLEMENT REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2020** ## **REFERENCE DETAILS** Charity number: 223066 Company number: 46188 Address and Registered Office: 42 Queen Square, London WC1N 3AQ ## **KEY MANAGEMENT PERSONNEL** Key management personnel are defined as members of the Settlement represented by the following in 2019-20: Warden, CEO; Accounting Officer Deputy CEO Director of Adult and Community Education Director of Finance and Resources Director of the Mary Ward Legal Centre Director of Blackfriars Settlement Suzanna Jackson Allister Duncan (retired 31[st] March 2020) Sue Craggs Juliet Woodford Paula Twigg Liz Ranger ## **BOARD OF TRUSTEES** A full list of the Trustees is given on pages 22-23 of these Financial Statements. Ms. Beverley Campbell acted as Clerk to the Trustees throughout the year under review. ## **PROFESSIONAL ADVISERS** **FINANCIAL STATEMENTS AUDITOR AND REPORTING ACCOUNTANTS** Buzzacott LLP 130 Wood Street London EC2V 6DL ## **INTERNAL AUDITOR** Haines Watts 30 Camp Road Farnborough Hants GU14 6EW ## **BANKERS** **INVESTMENT MANAGER PROPERTY CONSULTANTS** The Co-operative Bank plc 3rd floor, St Paul's House 10 Warwick Lane London EC4M 7BP Rathbone Greenbank Investments 10 Queen Square Bristol BS1 4NT Gryphon Property Partners 12 Austin Friars London EC2N 2HE 5 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **NATURE, OBJECTIVES AND STRATEGIES** nnual Report, together with the Financial Statements of Mary Ward Settlement for the year ended 31[st] July 2020. This report is also prepared inancial Statements for Companies Act purposes. ## **LEGAL STATUS** The Settlement is a registered charity (number 223066) and company limited by guarantee (number 46188), first registered in December 1895. It provides adult education and community services under its trading . The Settlement is also the controlling entity the Legal Centre Blackfriars which are wholly owned subsidiaries. For the purpose of these Financial Statements, references to the Settlement or Group, refer to the activities and consolidated results of the Adult Education Centre, the Legal Centre and Blackfriars, whilst references to the Adult Education Centre or Centre include only those activities and results of the parent entity trading as Mary Ward Centre in its role as an Institute of Adult Learning (IAL). References to the Board or to the trustees refer to the Board of the Settlement or to its trustees, unless specifically stated otherwise. ## **OBJECTS AND MISSION** The objects for which the Settlement is established are the advancement of public education and the promotion of social service for the benefit of the community. The Settlement provide excellent, innovative and wide ranging adult education and community services. ## **PUBLIC BENEFIT** In setting and reviewing the Settlement advancement of education. The guidance sets out the requirement that all organisations wishing to be recognised as charities must demonstrate, explicitly, that their aims are for the public benefit. In delivering its mission, the Settlement provides the following identifiable public benefits through the advancement of education and community services: - High quality teaching; - Advice, information, assistance and representation dealing with housing, debt, welfare benefits and other financial and legal problems; - Widening participation and tackling social exclusion; - Strong student support systems, particularly for students with physical and learning difficulties; and Vocational support where appropriate. The effectiveness of the Settlement is covered throughout the Members Report. ## **IMPLEMENTATION OF THE STRATEGIC PLAN** The Settlement worked towards the objectives of the 2018-2022 Strategic Plan. Key elements of this plan include the implementation of the Buildings Strategy which will play a major part in achieving long term sustainability with a wider reach of adult education and community support and advisory services across London. Having purchased a new freehold site in the London Borough of Newham in July 2018, a key part of -20 has been to continue with the plans for the redevelopment of this site, set in motion during 2018-19, to become a new, modern set of premises for the provision of the activities of both the Settlement, from 2022 onwards. 6 ## **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **IMPLEMENTATION OF THE STRATEGIC PLAN (CONTINUED)** The key focus points of the new Strategic Plan include: - To grow existing services and to extend our range of services to enhance the delivery of our Mission, in ways that are relevant now and which look to the future; - To deliver excellent services, that prioritise outcomes and impact for our users; - To add our expertise, encouragement and support to the efforts and achievements of people in the communities and neighbourhoods in which we are located and create opportunities for them to reach their educational, social and economic potential; - To further develop an organisational structure and culture which realises the Settlement and Core Values; - To maintain good financial health in order to ensure the sustainable delivery of our Mission; - To redevelop our new premises to support a sustainable future, enhance the quality of our provision and enable us to reach new audiences; - To develop partnerships and alliances with other organisations that will improve and extend our ability to deliver our Mission and Strategic Objectives; - To improve our public profile and develop an effective communications, PR and marketing strategy that supports the development of the Settlement , our move east and contributes to our plans for growth. The Board monitors the performance of the Settlement against the plan. The Board reviews and updates the plan annually. During 2019-20 the Covid-19 pandemic had a significant impact of the Settlement and its operations. The Settlement took the decision to close its premises shortly before the wider national lockdown in March 2020, taking into account the vulnerability of many of its users. As a result of the prolonged national lockdown the Adult Education Centre did not open its doors for face to face tuition during the summer term, but focused on moving provision online where possible, prioritising accredited courses where students had been working towards qualifications. The Legal Centre prioritised delivery online and/or by telephone, and Blackfriars concentrated both on emergency online and telephone support, and working with local voluntary and community organisations to deliver essential services to vulnerable groups which included its membership base. The Settlement also prioritised planning ahead for 2020-21, ensuring that options would be available to preserve as much face to face provision as possible, with alternative arrangements for students and other users unable to attend in person or should another lockdown occur. While this meant that most of the summer term fee income, Legal Aid Agency income and some smaller provision-specific grant funding was lost, the Settlement mitigate losses. Furthermore, the Adult Education Centre received all of its AEB grant funding following the be made provided that the Adult Education Centre earned a minimum 68% of the AEB grant allocation. Additionally, some other grants, including London Borough of Camden funding for legal services were guaranteed at 2019-20 rates until the end of March 2021. The most significant longer term risk arising from the impact of Covid-19 relates to the affordability of the Settlement prioritised actions to ensure that this project is completed as planned. 7 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **IMPLEMENTATION OF THE STRATEGIC PLAN (CONTINUED)** ## **CORE VALUES AND OBJECTIVES** agreed across the Settlement group. ## Core Values - Putting the needs and aspirations of current and potential users at the centre of all that we do; - Providing consistently high and professional standards across our service; - Promoting access to education including the value of learning for personal development and quality of life and using learning as a tool to combat disadvantage; - Promoting access to justice and providing legal advice for the poorest and most disadvantaged; - Promoting collaborative work, both across the Settlement and with partner organisations; - Advancing equality, eliminating discrimination, and fostering good relations among all our users; - Meeting, or exceeding, the expectations of our key stakeholders, service users and partners; - Aiming for excellence in the outcomes and impact of our services; - Providing access to training and development in order that all staff may achieve their potential and be motivated and committed to their work and these core values; and - Maintaining an open, honest, accountable and fair approach in all our communications with all our service users, staff and other stakeholders. ## Strategic Objectives - To provide a range of services that delivers our Mission in ways that are relevant now and look to the future; - To deliver excellent services; - To maintain an organisational structure and culture which realises the Mission and Core Values; - To maintain good financial health in order to ensure the sustainable delivery of our Mission and objectives; - To secure the Settlement in its buildings and provide an environment and facilities that support the delivery of excellent services; - To plan for and provide equipment and technology that support excellent service delivery and effective management; and - To develop partnerships and alliances with other organisations that will improve and extend our ability to deliver our Mission and objectives. ## The Settlement - To achieve a minimum annual operating surplus of 1% of income, excluding any pension costs arising - To provide sufficient courses to ensure that we earn all of the available funding from the Education To diversify our funding streams, consistent with our Mission and Core Values, in order to maximise our income generating potential; - To effectively manage costs, keeping any increase in non-pay costs below the prevailing inflation rate; and - To secure funding for a capital investment programme following the purchase of Queensway House in Stratford, for its redevelopment and refurbishment as the main location for the Settlement activities following the end of its current lease on 42 Queen Square, in July 2022. A series of performance indicators have been agreed to monitor the successful implementation of the policies. The Covid-19 pandemic had a significant impact on the Settlement lts, and consequently the Settlement failed to meet its objective in relation to the minimum 1% operating surplus. However all other financial objectives were met. 8 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **STRATEGIC REPORT** ## **ACHIEVEMENTS AND PERFORMANCE** ## **PERFORMANCE INDICATORS** ## **ADULT EDUCATION CENTRE** **----- Start of picture text -----**
Target Achieved Target Achieved
Key Performance Indicator 2019-20 2019-20 2018-19 2018-19
Increase the number of people who 5,750 4,154 5,750 5,288
access adult education
Increase the number of course 13,000 8,403 13,000 12,014
enrolments
Increase the average number of 12 11 12 11
students per course
Maintain high average level of 90% and 91% 90% and 92%
student retention; AND
Maintain high retention across ALL No more than No more than 6% below 80%
courses 5% of courses 5% of courses
below 80% below 80%
Maintain high level of student 95%+ 92% 95%+ 98%
satisfaction
Increase the % of teaching sessions 95% 96% 95% 93%
graded good or better
Reduce the % of sessions graded Requires Sessions are Requires RI = 3
below good improvement ungraded Improvement Inadequate =
3 or lower; 3 or lower; nil
inadequate - inadequate -
nil nil
Maintain high level of average 95%+ Sessions are 95%+ 94%
achievement on non-accredited ungraded
courses; AND
Maintain high level of achievement
on ALL non-accredited courses
Improved average success rates for 90%+ 86% 90%+ 88%
students taking accredited courses
Improved success rates on ALL No more than 87% No more than 88%
accredited qualifications 5% of classes (4% below 5% of courses (19% below
below a 80% - 5 below a 80% - 10
success rate course success rate course
of 80% qualifications of 80% qualifications
out of 36) out of 51)
The % of students reporting 75%+ 77% 75%+ 100% (from a
additional benefits is increasing 74% response
rate)
**----- End of picture text -----**
The Adult Education Centre is committed to monitoring a range of key sector indicators and is required to complete the Annual Finance Record for the ESFA. The Adult Education Centre is assess - . This is notwithstanding decisions made in relation to the Property Strategy, which have increased costs in the short term, and further pressure caused by losses from Covid during 2019-20. 9 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **MARY WARD LEGAL CENTRE** The Legal -20 are outlined below: - people reduce their debt and maximise their income through providing free specialist casework and representation in housing, debt and welfare benefits; - Continuing to maintain access to our advice services in response to Covid-19 by transforming our services from face-to-face to telephone/email; - Securing additional grant funding and donations to deal with the devastating impact of Covid-19; - Helping 2,000 people with their legal issues; - Delivering against contractual funding outputs and outcomes; - Delivering debt advice at outreach venues across London; - Co-developing and delivering financial capability courses in partnership with local community organisations with funding from Comic Relief and RBS to improve the financial literacy of people living in London; - Delivering a pro bono advice service to help more people who cannot access help from legal aid to resolve their legal issues; - Passing our Lexcel audit with no corrective action practice quality mark; - Securing continuation funding from City Bridge Trust to deliver specialist welfare benefits casework and representation; - Securing funding from the Legal Education Foundation for a trainee solicitor under their Justice First Fellowship programme; - Supporting more vulnerable clients to sustain their tenancies and help break the cycle of homelessness through our Housing Support Worker; - Securing long-term funding from the London Borough of Camden to provide specialist advice to people in Camden; - Playing an active role in the development of the new Camden Advice Network with advice providers in the borough; - Continuing to deliver housing advice in Newham and Southwark; - and - Clients receiving help with their welfare benefits matters achieved an average increase of £87 a week in benefits. The actual performance against the agreed targets are set out in the table below. The figures for the numbers of clients seen have been affected by Covid-19 primarily because the national lockdown from March 2020 meant people could no longer attend our office and outreach centres. Specific measures introduced nationwide at the start of lockdown, to reduce the impact of Covid-19 led to an initial reduction in demand. For example, housing possession cases being stayed, face-to-face tribunal hearings for welfare benefits appeals and PIP and ESA assessments being suspended, and suspension of debt recovery, and payment holidays. However performance measuring outcomes for clients remains high. 10 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** The actual performance against the agreed targets are set out in the table below: |**Key Performance Indicator**|**Target**
**2019/20**|**Achieved**
**2019/20**|**Target**
**2018-19**|**Achieved**
**2018-19**| |---|---|---|---|---| |Meet annual target for matter starts|2,500|2,009|2,500|2,502| |Increase the number of people who
get advice through pro bono clinics|350|228|330|358| |Maintain a high level of client
satisfaction|95%|95%|95%|98%| |Maintain the high % of cases that
have a positive outcome|92%|93%|92%|92%| |A high % of clients who respond to
our survey report an improvement in
health and well-being|88%|91%|88%|93%| ## **BLACKFRIARS SETTLEMENT** ## **Positive Ageing** BFS. In February we learned that the COPSINS Consortium, of which we are a part, had been successful in securing the commissioned contract to provide services for older people in the London Borough of Southwark. This contract began on 1 June and will run whatever means a resident contacts services for older people, they will have access to the same services. There has been a steady flow of new referrals over the year. Since the Covid-19 nationwide lockdown we have worked very hard to meet the needs of isolated and anxious members and new contacts in the community. We have accepted new referrals from the Southwark Covid Hub, arranged volunteers to do shopping and deliver prescriptions, delivered meals twice weekly, sent out activity packs and supported over 100 people with befriending calls once or twice weekly. Needs have become more complex, with the team dealing with safeguarding issues, an increasing number of members and referrals with early dementia, and a slight increase in the average age of our service users (75.9 years). 11 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **Adult Education** We continued to provide learning and development classes on behalf of Southwark Adult Education but have greatly increased this offer with a range of other education opportunities provided through the Adult Education Centre. During the last year the number of enrolments at the Settlement increased by 45% to 1,040, despite being unable to offer face to face provision during the summer term because of the national lockdown. ## **Mental Health and Wellbeing** In the period under review the Mental Health and Wellbeing (MHWB) service successfully concluded and development for members. One to one support also contin crafts, both of which are very popular with members. During lockdown the service moved to offering remote support. Because so few of our members are able to access the internet, support was provided by telephone and text. The team made regular calls to members wanting this, and was available to support with issues and needs as they arose. The team contacted or was contacted by a large number of former services users who then re-engaged with the service during this time. The London Borough of Southwark funded the service during this time through the Covid-19 Community Fund. The service has a number of other partnerships enabling us to deliver a broad range of high quality services: - Art2Print, our Social Enterprise Design Studio, continued to provide opportunities for members to learn skills in graphic design in partnership with professional design studio, the Plant; Continued support from Lloyds Bank volunteers provided individually tailored IT training sessions. The service has once again hosted an Art Therapy student on placement with us from the University of Roehampton, who has run sessions which members have found very beneficial; The service has also hosted its first Social Work Student, on placement from London South Bank University, which increased the capacity of the team to provide sessions and individual support; During lockdown the service has been supporting 140 people, the majority with no internet access: support has been via telephone, text and post, and through provision of emergency food and medication and sending out activity packs. - d become a regular weekly event. ## **The Orb Space** This social integration project continues this year with a diverse range of activities and events including a hugely successful spoken word event for Black History Month, regular Cook & Eat courses, comedy workshops, spoken word courses, baby massage, and film nights. Through the project the people we engaged with had far more ideas and suggestions for events than we had the capacity to deliver, but the project engaged with over 380 people and received very positive feedback. We aim to continue this in the coming year, albeit in a scaled down and different format as a result of social distancing. 12 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **PERFORMANCE INDICATORS** The actual performance of services is set out in the table below: **----- Start of picture text -----**
Achieved Achieved
Key Performance Indicator
2019-20 2018-19
Older people supported through the 414 407
Positive Ageing service
No of members supported through the 140 72
MHWB project
Hours of volunteer support provided 10,879 n/a
Student enrolments 1,040 716
**----- End of picture text -----**
## **FINANCIAL REVIEW** The Settlement had an operating deficit of £363,000 in the year (2018-19: deficit of £483,000). This was after the inclusion of a £107,000 (2018-19: £123,000) Local Government Pension Scheme service cost; £34,000 (2018-19: £36,000) LGPS finance cost; and £4,000 (2018-18: £4,000) LGPS administration cost. The Settle to £9,451,000 (2018-19: £10,653,000 as restated). The two most significant factors in the movement in funds were the increase in the defined benefit obligation of the LGPS to £2,658,000 (2018-19: £1,674,000) and the incorporation of the 2019-20 deficit of the Adult Education Centre of £52,000 before the inclusion of the LGPS costs (2018-19: deficit of £124,000). target is to increase reserves, by a minimum of 1% of income, before taking into account the impact of LGPS costs. The written down value of fixed assets increased to £12,029,000 (2018-19: £11,227,000). Capital expenditure in the year totalled £1,022,000 (2018-19: £510,000), all but £19,000 of which related to the development of the freehold property, Queensway House, in Stratford, East London which forms a key part roperty Strategy to secure a location for its activities beyond 2022 when the lease on 42 Queen Square expires. The depreciation charge for the year totalled £220,000 (2018-19: £218,000). The value of the investment funds held by the Settlement rose to £27,000 (2018-19: £25,000). operational income fell by £30,000 to £5,433,000 (2018-19: £5,463,000), reflecting the loss of £324,000 tuition fee income in the Adult Education Centre, and other smaller losses from various income streams across the group, all a direct impact of Covid-19. These falls were offset by a new income source from the ESFA of £102,000 to cover , by income from the Coronavirus Job Retention Scheme totalling £260,000 across the Settlement, and several smaller, emergency grants awarded to help mitigate Covid-19 losses or to provide support for the provision of essential Covid-19 services. Costs of the Settlement decreased by £148,000 to 5,798,000 (2018-19: £5,946,000). Of this decrease, £216,000 relates to restricted during lockdown with the result that some operational costs were not incurred. This fall in operational costs was partially offset by an increase of £72,000 in staff costs, primarily the result of an d by the new grant income referred to above. 13 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **FINANCIAL REVIEW** (CONTINUED) The Adult Education income was £3,771,000 (2018-19: £3,741,000) and reflects the fall in student the Coronavirus Job Retention Scheme, both noted above. Costs at the Adult Education Centre rose by £64,000 to £4,092,000 (2018-19: £4,028,000) with the main increase arising from , partially offset by operational cost savings from the impact of Covid-19, both as noted above. The Le e was £1,232,000 (2018-19: £1,131,000), of which £825,000 (2018-19: £908,000) came from operational grants and funding for legal advisory services and £369,000 (2018-19: £222,000) from donations and other fundraising, including value in kind of £136,000 (2018-19: £139,000) from pro bono advice and the provision of legal trainees, and an intercompany donation of £124,000 provided to write-off a long term loan from the Settlement. Legal Centre costs fell £92,000 from £1,290,000 to £1,198,000. This reflects a decrease in operational staff costs of £35,000 as the Legal Centre was obliged to make staff reductions in response to funding changes, along with a fall of £57,000 in operational costs as an impact of Covid-19, At Blackfriars, operational income was £653,000 for the period (2018-19: £694,000), with operational expenditure of £732,000 (2018-19: £730,000). The 2019-20 Financial Statements and associated Notes are set out on pages 33 to 65. ## **TREASURY MANAGEMENT** Treasury management is the management of the cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. Short term borrowing for temporary revenue purposes is authorised by the Accounting Officer. Such and Skills Funding Agency. All other borrowing requires the authorisation of the Board in order to comply with the Financial Memorandum. There was a net decrease in the cash held by the Settlement of £1,235,000 to £1,723,000 (2018-19: decrease of £976,000 to £2,958,000). Preliminary work related to the development of Queensway House was by far the most significant factor, with £1,008,000 of such costs being capitalised during the period. The high rental costs of 10 Great Turnstile, following its disposal during 2017-18 continue to result in an annual cash outflow of £340,000. ## **RESERVES POLICY** The Settlement recognises the importance of reserves in the financial stability of the organisation and has a stated Reserves Policy reserves. Consequently the Settlement continues to ensure that it has adequate reserves to support its core activities. 14 ## **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** As at the balance sheet date the Settlement unrestricted reserves were £9,440,000, (2018-19: £10,639,000) of which £2,985,000 were unrestricted fixed asset reserves (2018-19: £3,063,000) and £6,455,000 other unrestricted reserves (2018-19: £7,576,000). Restricted reserves totalled £11,000 (2018-19: £14,000). Of these reserves £1,188,000 (2018-19: £1,297,000) are immediately available, or at short notice and can be drawn upon to meet the working capital needs of the Settlement. The decrease in reserves at the Balance Sheet date reflects the costs associated with the Settleme investment in its growth strategy. The combined result of an expected continuing operating deficit in the year 2020-21 and the costs of implementing the buildings strategy is likely to result in the Settlement below target in the n intention to restore the Settlement , excluding any impact from the LGPS, to at least the minimum target level as soon as practicable. ## **CURRENT AND FUTURE DEVELOPMENTS AND PERFORMANCE** ## **FINANCIAL HEALTH** In 2019-20 the Adult Education factors which had an adverse impact on the financial position: - - (i) the impact of the Covid lockdown, which resulted in the loss of most of the summer term tuition fee income, without an equivalent reduction in costs; and - (ii) the result of strategic activity taken by the Adult Education Centre to secure its future through a restructuring of its operational property portfolio which has both increased cash balances and led to increased operating costs in the short term. It is expected that these higher costs will be sustained as the Property Strategy is completed over the next 2-4 financial years, while the cash balance gradually falls, and that the ESFA financial health grading will fluctuate. The Property Strategy was agreed by the Board because the Settlement approaching the end (July 2022) of a long lease which has been on beneficial terms for many years. The landlord has indicated that if it were to offer a new lease it would be at a considerably higher rent. After careful consideration of the risks and opportunities, the Board adopted a strategy that, when implemented, will help provide for a financially sustainable future for the Settlement. As part of this strategy the Board took the decision to sell the freehold property at 10 Great Turnstile and to lease it back for a period to coincide with the termination of the lease on 42 Queen Square. This sale was completed during 2017-18, and the proceeds of the sale were put towards the purchase of a new building, Queensway House in the London Borough of Stratford which completed in July 2018. A fundraising programme has commenced which, together with a portion of the existing reserves, will enable the redevelopment and refurbishment of this building with the expectation that most of the Settlement service offering will operate from Queensway House from the financial year 2022-23. The premises at 1 Rushworth Street will be retained, enabling the Settlement to operate from two permanent sites in two London boroughs. 15 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **CURRENT AND FUTURE DEVELOPMENTS AND PERFORMANCE** (CONTINUED) In the short to medium term, the implementation of the Building Strategy will continue to put pressure on operating surpluses and cash balances and, in turn, on the ESFA financial health grade, with the financial health grading unlikely until the completion of the Buildings Strategy. cent years was always expected to fall during the execution of the Property Strategy, and consequently, given the challenges faced over 2019- ## **STUDENT NUMBERS** The Adult Education Centre is funded according to the levels of activity that it generates. In 2019-20, the Adult Education Centre generated a funding value of £2,257,000 (2018-19: £2,182,000). The total number of students enrolled onto courses was 4,154, compared with 5,288 for 2018-19. Student retention was 90% for 2019-20 compared with 92% for 2018-19. ## **STUDENT ACHIEVEMENTS** In 2019-20 there were 408 examination entries of which 353 were successful (2018-19: 764 and 675 respectively). In 2019-20 more students took a full ESOL qualification than single modes resulting in a reduction in the number of exam entries. Overall success is 83% (2018-19: 94%). Student achievement in non-accredited courses is 83% (2018-19: 94%) which is assessed using the Recognising and Rewarding Progress and Achievement (RARPA) strategy. ## **CURRICULUM DEVELOPMENTS** Curriculum planning at the Adult Education Centre combines a needs analysis of local communities with a broader perspective of its contribution to adult education across London. The Adult Education Centre has been effective in reviewing and realigning its curriculum to meet changing priorities and funding constraints, whilst retaining the distinctive characteristics of the curriculum and patterns of learning. In 2019-20 the Adult Education Centre continued to offer courses within the curriculum financed entirely from student fees and successfully ran such courses across the curriculum. Community Outreach continue to be successful at isolation as part of a project Ageing Better in Camden funded by Age UK Camden. In response to Covid-19 and local and national restrictions the Adult Education Centre moved provision online, supporting 605 students on 65 courses to continue with their learning and complete their qualifications. In addition the Adult Education Centre developed a programme of 34 online courses for the summer term whilst face-to-face teaching was suspended. 294 students enrolled onto these courses which generated a fee income of £23,172. Partnerships with employers, such as Voluntary Action Camden (VAC), continue to develop to provide bespoke training for employees. In Vocational and Life Skills, Level 1 and Level 2 courses continue to be offered which offer transferrable business skills to support employability including the introduction of a Coaching and Mentoring qualification. 24+ Loan provision continues to be offered in Community Interpreting, Counselling and Art and Design. Progression routes in Community Interpreting into specialist areas have also been offered, e.g. Level 6 Preparation for the Diploma in Public Service Interpreting; Law Option. A number of continuing professional development opportunities in Counselling and Community Interpreting are also offered to ## **PAYMENT PERFORMANCE** The Late Payment of Commercial Debts (Interest) Act 1998, which came into force on 1[st] November 1998, requires colleges, in the absence of agreement to the contrary, to make payments to suppliers within 30 days of either the provision of goods or services or the date on which the invoice was received. 16 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **PAYMENT PERFORMANCE (CONTINUED)** The target set by the Treasury for payment to suppliers within 30 days is 95%. During the accounting period 1[st] August 2019 to 31[st] July 2020, the Adult Education Centre paid 99% of its invoices within 30 days. The Adult Education Centre incurred no interest charges in respect of late payment for this period. ## **EVENTS AFTER THE END OF THE REPORTING PERIOD** There have been no significant post-balance sheet events. ## **FUTURE DEVELOPMENTS** The Strategic Plan of the Settlement includes its relocation to Queensway House, a new site in the London Borough of Newham, following the redevelopment and opening of this new site in 2022. It is envisaged that the Settlement will continue to operate from its property at Rushworth Street but will be able to extend the range of its community services to the new site, operating the whole variety of activities in both the Boroughs of Newham and Southwark. At a strategy day in June 2018, the following Strategic Objectives were agreed for the period 2018-23: - To grow existing services and to extend our range of services to enhance the delivery of our Mission, in ways that are relevant now and which look to the future; - To deliver excellent services, that prioritise outcomes and impact for our users; - To further develop an organisational structure and culture which realises the Settlement Core Values; - To add our expertise, encouragement and support to the efforts and achievements of people in the communities and neighbourhoods in which we are located and create opportunities for them to reach their educational, social and economic potential; - To maintain good financial health in order to ensure the sustainable delivery of our Mission; - To redevelop our new premises to support a sustainable future, enhance the quality of our provision and enable us to reach new audiences; - To develop partnerships and alliances with other organisations that will improve and extend our ability to deliver our Mission and Strategic Objectives; - To improve our public profile and develop an effective communications, PR and marketing strategy that supports the development of Blackfriars, our move east and contributes to our plans for growth. The Settlement plans to continue to be a distinct and high quality provider of adult and continuing education, to increase its provision for students over the next 3 years and to return to an 'outstanding' financial status with the ESFA within the life of the new strategic plan. The Settlement will continue to diversify its income streams and thereby reduce its dependency on ESFA funding, and plans to continue to work towards higher tuition fee income, without compromising access to education for those with the greatest needs. It is expected that there will be continuing development of a range of courses funded through student loans. Covid-19 continues to be a major factor in immediate plans and consequently the Adult Education Centre has focused on improving its technology including investing in staff training and resources to enable continuity of provision, both face to face and online. ## **ADULT EDUCATION CENTRE** The implementation of the Property Strategy is expected to see Queensway House in the London Borough of Newham being opened in 2022. Newham was identified at an early stage of research as an area where there is underprovision of adult education and where it is thought likely that the Adult Education Centre can maximise its impact. The opening of the new centre will allow for a major review of the curriculum and particular emphasis will be given to the specific needs of the community in this part of East London where the Adult Education Centre will be establishing its new base. 17 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **ADULT EDUCATION CENTRE (CONTINUED)** The Adult Education Centre will continue to manage its costs effectively, mindful that staff costs represent more than two thirds of total costs. Greater efforts will be made to make effective use of more volunteers in a more structured and better way. The public funding environment remains challenging and there is no immediate end in sight to this. Outcomes from Area Reviews are beginning to bring substantial change to the wider FE sector although there has been no immediate impact on the Settlement. ## **MARY WARD LEGAL CENTRE** Looking forward, the Legal Centre expects to be able to achieve the following Strategic Plan 2018-22: - To continue to adapt its advice provision to ensure safe access during the Covid-19 crisis, including a mix of face-to-face and remote appointments, and advice via video conference; - To continue to develop new advice provision in Southwark and Newham; - To expand its housing advice service and recruit additional solicitors; - To take an active role in advice networks, and work in partnership with local advice providers. To continue to seek new sources of income and funding to deliver specialist legal advice services including raising unrestricted income; - To secure continuation funding for its Housing Support Work project to help sustain tenancies and break the cycle of homelessness; - To secure funding to continue to develop a public legal education programme in financial capability. ## **BLACKFRIARS SETTLEMENT** Looking forward the Settlement expects to be able to achieve the following, as part of the Settlement Strategic Plan 2018-22: - To maintain and develop the range of activities currently offered to the local community by the Settlement primarily for the elderly and for people experiencing mental health issues To partner Mary Ward Adult Education Centre in hosting adult education classes at the Rushworth Street premises - To partner Mary Ward Legal Centre in hosting Legal Advice clinics and drop-in services at the Rushworth Street premises ## **GOING CONCERN** As part of our redevelopment project and in the development of our strategy for our move to Stratford we have developed detailed financial projections which include modelling the potential impact of Covid-19 on our original plans for growth. This work has the challenges and uncertainties created by the Covid-19 pandemic, and as such it considers that the Settlement has adequate resources to continue in operational existence for the foreseeable future and until at least March 2022. For this reason, will continue to adopt the going concern basis for the preparation of its Financial Statements. ## **RESOURCES** The Settlement has a variety of resources that it can deploy in pursuit of its strategic objectives. Tangible resources include the freehold of Queensway House on Stratford High Street in the London Borough of Newham, the long term leasehold (995 years) of 1 Rushworth Street, and the remaining term of the lease of 42 Queen Square, the Settlem main site for adult education. 18 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **Financial** The Settlement has £9,454,000 of net assets (2018-19: £10,653,000), having taken in to account the FRS102 pension liability of £2,658,000 (2018-19: £1,674,000). The balance owing to the Social Investment Business was £781,000 as at 31[st] July 2020 (2018-19: £862,000). ## **People** Until 31[st] March 2020 the Senior Management Team comprised six members of staff, including the temporary role of Assistant Chief Executive, to enable sufficient senior management time and resource for the planning of the redevelopment of Queensway House and the subsequent relocation of the majority of the activities of the Settlement to these new premises. From 1[st] April 2020, following the retirement of Assistant Chief Executive, the Senior Management Team now consists of five members of staff and is expected to remain at this level. The staff teams of the Adult Education Centre, the Legal Centre and Blackfriars are settled, with a low turnover. The Adult Education Centre employs a wide range of sessional tutors, many of whom have taught at Mary Ward for many years. ## **Reputation** The Settlement has a very well established reputation and draws students and clients from across London its ability to support students with both physical and learning difficulties. The Legal Centre is well regarded in the legal community, shown by the continuing support of a number of major law firms. Blackfriars runs a wide variety of well-established clubs, activities and services for older people and for people with mental health issues and continues to be well regarded in its local community in the London Borough of Southwark. ## **PRINCIPAL RISKS AND UNCERTAINTIES** The Settlement has undertaken further work during the year to develop and embed the system of internal control, including financial, operational and risk management which is designed to protect the Settlement assets and reputation. Based on the Strategic Plan, the Senior Management Team regularly undertakes a comprehensive review of the risks to which the Settlement is exposed. They identify systems and procedures, including specific preventable actions which should mitigate any potential impact on the Settlement. The internal controls eir effectiveness and progress against risk mitigation actions. In addition to the annual review, the Senior Management Team will also consider any risks which may arise as a result of a new area of work being undertaken by the Settlement. A risk register is maintained at the Settlement level which is reviewed regularly by the Audit and Risk Committee. The risk register identifies the key risks, the likelihood of those risks occurring, their potential impact on the Settlement and its subsidiaries and the actions being taken to reduce and mitigate the risks. Risks are prioritised using a consistent scoring system. The risk register includes a separate section for each business stream and, as needed, for major projects. Outlined below is a description of the principal risk factors that have the potential to have a significant impact on the Settlement. Not all the factors are within the Settlement - A reduction in student numbers and / or falling average class sizes as a result of the ongoing impact of Covid-19 - Increasing mismatch between work demands and the capacity of staff to deliver - Risks in connection with the implementation of the Property Strategy - Ability of the IT and communications infrastructure to respond to the demands placed on it 19 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **STAKEHOLDER RELATIONSHIPS** The Settlement has many stakeholders including: - students; - clients; - funding bodies; - staff; - local employers (with specific links); - our local authority; - ; - local community and voluntary organisations; and - other colleges, in particular other AECs. The Settlement recognises the importance of these relationships and is active in their maintenance and development. ## **EQUAL OPPORTUNITIES AND EMPLOYMENT OF DISABLED PERSONS** The Settlement is committed to ensuring equality of opportunity for all who learn and work there. It respects and values positively differences in race, gender, sexual orientation, ability, class and age. It strives vigorously to remove conditions which place people at a disadvantage and it will actively combat bigotry. This policy will be resourced, implemented and monitored on a planned basis. A Single Equality Policy is in place and is published on the publishes an Annual Equality Report, which includes its equality objectives. This ensures compliance with all of the relevant legislation, including the Equality Act 2010. The Settlement also undertakes equality impact assessments on policies and procedures as appropriate. The Settlement considers all applications from disabled persons, bearing in mind the aptitudes of the individuals concerned. Where an existing employee becomes disabled, every effort is made to ensure that employment with the Settlement continues. The Settlement development and opportunities for promotion, which are, as far as possible, identical to those for other employees. ## **DISABILITY STATEMENT** The Settlement seeks to achieve the objectives set down in the Disability Discrimination Act 1995 as amended by the Special Educational Needs and Disability Acts 2001 and 2005 and the Equality Act of 2010 by: - having a management structure bringing together the support for learners with disabilities and learning difficulties and the provision of additional learning support; - the use of 10 Great Turnstile to provide 100% level access to all areas and a wheelchair lift at the front entrance; the supply of specialist equipment for use by students with disabilities; - the continuing investment in resources to support students with learning difficulties and/or disabilities; and the continuing programme of staff development to ensure the provision of a high level of appropriate support for students who have learning difficulties and/or disabilities. In 2019-20 21% (2018-19: 21%) of the student body declared a disability or learning difficulty. This remains high in comparison with adult and further education colleges in general which is between 14% and 15%. 20 **MARY WARD SETTLEMENT REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** ## **FUNDRAISING** The Settlement aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. data, and ensures that communication preferences can be changed at any time. The Settlement manages its own fundraising activities and, during the period under review, has employed the services of a professional fundraising organisation who have made one of their employees available to provide hands-on expertise and operational input. The Settlement undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2019-20, the Settlement received no complaints about its fundraising activities. ## **TRADE UNION FACILITY TIME** There were no employees who were relevant union officials during the period, so there was no time or percentage of the pay bill spent on facility time. There were no paid trade union activities during the year. ## **DISCLOSURE OF INFORMATION TO AUDITORS** The members of the Board who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the Settlement each member has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the Settlement Approved by order of the members of the Board on 16 March 2021 and signed on their behalf by: Frances Bates Chair 21 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL** The following statement is provided to enable readers of the Annual Report and Financial Statements of the Settlement to obtain a better understanding of its governance and legal structure. The statement covers the period from 1[st] August 2019 to 31[st] July 2020 and up to the date of the approval of the Annual Report and Financial Statements. The Settlement endeavours to conduct its business: - in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership); - in full accordance with the guidance to colleges from the Association of Colleges in The Code of Good Governance for English Colleges; and - its operational activities. The Settlement is committed to exhibiting best practice in all aspects of corporate governance and, in particular, the Board has adopted and complied with the Code of Good Governance. The Board has not adopted, and therefore does not apply, the UK Corporate Governance Code. However, we have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code we consider to be relevant to the further education sector and best practice. In the opinion of the Board, the Settlement complies with all the provisions of the Code of Good Governance, and it has complied throughout the year ended 31[st] July 2020. The Board recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times. The Settlement is a registered charity. The trustees confirm that they have had due regard for the Charity Commission's guidance on public benefit and that the required statements appear elsewhere in these Financial Statements. ## **THE BOARD** The members of the Board, or on the Boards of its subsidiaries, who served during the year and up to the date of signature of this report are as listed in the following table: **----- Start of picture text -----**
Member Date of Term of Date of Elected trustees Position and Committees served
appointment office leaving
Ms F Bates March 2015 4 years Chair of Trustees; Governance
Reappointed and Nominations;
June 2019 Remuneration (Chair)
Ms R Brain*** October 2019 4 years
Ms N Cartner June 2017 4 years Governance and Nominations;
Quality Improvement Group
(Chair)
Mr B Chandler May 2018 4 years November Finance
2019
Mr G Collins May 2018 4 years Audit & Risk
Mr G Darby** May 2018 3 years Tutor Quality Improvement Group
Ms K Duong May 2018 4 years Treasurer; Audit & Risk;
Finance; Remuneration
Mr J Edwards* July 2013 4 years Finance (Chair); Governance
Reappointed and Nominations;
May 2018 Remuneration
Ms H Heathfield*** May 2018 4 years April 2020 Quality Improvement Group
**----- End of picture text -----**
22 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **THE BOARD (continued)** **----- Start of picture text -----**
Member Date of Term of Date of Elected trustees Committees served
appointment office leaving
Mr A Hill** March 2015 3 years Staff Quality Improvement Group
Reappointed
May 2018
Ms A Horsup March 2014 4 years April 2020
Reappointed
May 2017
Ms B Montoya June 2017 4 years
Mr P Nichols** April 2020 Co-opted
Ms P Nicholson** November 3 years Student Finance
2019
Mr R Nadarajan* July 2013 4 years
Reappointed
May 2018
Mr A Peck March 2014 4 years Audit and Risk (Chair);
Reappointed Governance and
May 2018 Nominations; Remuneration
Ms P Snow** June 2019 3 years Student
Ms K Watters** March 2015 4 years April 2020 Quality Improvement Group
Reappointed
May 2018
Baroness M May 2018 4 years December Vice Chair
Wheeler 2020
Ms A Williams** February 4 years Vice Chair
2011 extended Governance and Nominations
reappointed to Quality Improvement Group
March 2014 October
2020
Ms E Wyatt Oct 2016 4 years Finance
Ms B Campbell acts as Clerk to the Board
**----- End of picture text -----**
Ms K Duong was on maternity leave until October 2019. Chair role during coronavirus period. In addition to the Board, other people who served on committees during the year and up to the date of signature of this report were as listed in the following table: |**Member**|**Date of**
**Appointmen**|**Date of**
**resignation**|**Status of**
**appointment**|**Committees served**| |---|---|---|---|---| |Ms F Stormer|February
2019||External
representative|Audit & Risk| It is the Board's responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct. 23 **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **THE BOARD (CONTINUED)** The Board is provided with regular and timely information on the overall financial performance of the Settlement together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel related matters such as health and safety and environmental issues. The Board conducts some of its business through a number of committees. Each committee has terms of reference which have been approved by the Board. These committees are Governance and Nominations, Remuneration, Finance and Audit and Risk. Full minutes of all meetings except those deemed to be confidential are available from the Clerk at the address below. ## **ATTENDANCE** The table below summarises the attendance at Board and sub-committee meetings for the year to 31[st] July 2020. For trustees of subsidiary company boards, the number of meetings refers only to those meetings of the subsidiary represent. **----- Start of picture text -----**
Governance
Member Board Strategy days and Finance Audit and Quality
Nominations Risk Improvement
Group
Ms F Bates 4 of 4 1 of 1 1 of 1 1 of 2 0 of 2
Ms R Brain 3 of 3 1 of 1
Ms N Cartner 4 of 4 1 of 1 1 of 1 2 of 2
Mr G Collins 4 of 4 1 of 1 2 of 2
Mr G Darby 3 of 4 1 of 1 0 of 2
Ms K Duong 3 of 4 1 of 1 1 of 2 2 of 2
Mr J Edwards 4 of 4 1 of 1 1 of 1 1 of 2
Ms H Heathfield 2 of 2 0 of 1 1 of 2
Mr A Hill 4 of 4 1 of 1 0 of 2
Ms A Horsup 1 of 2 1 of 1
Ms B Montoya 4 of 4 1 of 1
Mr R Nadarajan 2 of 4 0 of 1
Mr P Nichols 1 of 1
Ms P Nicholson 3 of 3 1 of 1 1 of 1
Mr A Peck 4 of 4 1 of 1 1 of 1 2 of 2
Ms P Snow 3 of 4 1 of 1
Ms K Watters 1 of 2 1 of 1 2 of 2
Baroness M 0 of 4 0 of 1
Wheeler
Ms A Williams 2 of 4 1 of 1 1 of 1 2 of 2
Ms E Wyatt 1 of 4 0 of 1 1 of 2
**----- End of picture text -----**
The Remuneration Committee did not meet formally during 2019-20. In addition to the committees shown above, a Property Working Group operated during the year, overseeing the sale of 10 Great Turnstile and the purchase of Queensway House. The Property Working Group was not operated as a formal committee with registers of attendance, nor was it formally clerked. However all significant discussions were reported back to the full Board, and a record of any decisions taken by the Board was formally noted as part of the full board minutes. 24 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **ATTENDANCE** (CONTINUED) The Clerk maintains a register of financial and personal interests of the members of the Board. The register is available from the Clerk at the address below: Mary Ward Settlement 42 Queen Square London WC1H 3AQ All members of the Board are able to take independent professional advice in furtherance of their duties at the Settlement Clerk to the Board, who is responsible to the Board for ensuring that all applicable procedures and regulations are complied with. The appointment and removal of the Clerk are matters for the Board as a whole. Formal agendas, papers and reports are supplied to members in a timely manner, prior to board meetings. Briefings are also provided on an ad-hoc basis. The Board has a strong and independent non-executive element and no individual or group dominates its decision-making process. The Board considers that each of its non-executive members is independent of management and free from any business or other relationship which could materially interfere with the exercise of their independent judgement. There is a clear division of responsibility in that the roles of the Chair and the Warden, the Accounting Officer, are separate. ## **APPOINTMENTS TO THE BOARD** With the exception of ex-officio appointments, members of the Board hold office for a period of four years (increased from three years by special resolution at the AGM in March 2016). Elected trustees currently on the Board will serve the term to which they were elected. Appointed members may be re-appointed for a second term of four years on the recommendation of the Governance and Nominations Committee. Third and further terms of four years may exceptionally be approved by the board on recommendation of the Governance and Nominations Committee if it is considered that this would produce a better balance of knowledge, skills, commitment and experience amongst the members. Student and staff members of the Board are eligible to stand for re-election at the end of their term. Staff members are not eligible to serve as members if they cease to be a member of staff of the Settlement. Student members may continue to the end of their elected term of office even if they cease to be students of the Adult Education Centre during their term. The Board is responsible for ensuring that appropriate training is provided as required. ## **BOARD PERFORMANCE** A review of the performance of individual trustees, including the Chair, took place during the year. Individual performance appraisals are also scheduled for 2020-21 and it is proposed that an overall selfassessment of the ## **REMUNERATION COMMITTEE** The membership of the Remuneration Committee is entirely ex-officio and comprises five members made up of the Chair, the Treasurer, and the chairs of the other committees. The C are to make recommendations to the Board on the remuneration and benefits of the Warden and other senior post-holders, and to oversee staff terms and conditions including annual cost of living increases. Details of remuneration for the year ended 31[st] July 2020 are set out in note 11 to the Financial Statements. 25 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **THE GOVERNANCE AND NOMINATIONS COMMITTEE** The Governance and Nominations Committee comprises four members. The Committee is responsible for advising the Board on the composition, balance and appointment of the Board and its committees. It also ensures that members undergo a regular skills audit and that an annual assessment of training needs takes place. ## **AUDIT AND RISK COMMITTEE** The Audit and Risk Committee comprises up to five members. No member of staff is permitted to serve on the Audit and Risk Committee. The Committee operates in accordance with written terms of reference approved by the Board. The Audit and Risk Committee provides a forum for reporting by the Settlement financial statements auditors, who have access to the committee for independent discussion, without the presence of Settlement management. The Settlement review the systems of internal control, risk management controls and governance process in accordance with an agreed plan of input and report their findings to management and the Audit and Risk Committee. Management is responsible for the implementation of agreed audit recommendations and internal audit undertake periodic follow up reviews to ensure such recommendations have been implemented. The Audit and Risk Committee also advises the Board on the appointment of internal, regularity and financial statements auditors and their remuneration for both audit and non-audit work, as well as reporting annually to the Board. ## **THE FINANCE COMMITTEE** The Finance Committee comprises up to five members. The Committee is responsible for advising the Board on all strategic finance related matters. ## **INTERNAL CONTROL** ## **SCOPE OF RESPONSIBILITY OF INTERNAL CONTROL** The Board is ultimately responsible for the Settlement effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Board has delegated the day to day responsibility to the Warden, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of the Settlement objectives, whilst safeguarding the public funds and assets for which she is personally responsible, in accordance with the responsibilities assigned to her in the Financial Memorandum between the Adult Education Centre and the Education and Skills Funding Agency. She is also responsible for reporting to the Board any material weaknesses or breakdowns in internal control. 26 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL** The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Settlement policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place at the Settlement for the year ended 31[st] July 2020 and up to the date of approval of the Annual Report and Financial Statements. ## **CAPACITY TO HANDLE RISK** The Board has reviewed the key risks to which the Settlement is exposed, together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board is of the view that there is a formal ongoing process for identifying, evaluating and managing the Settlement significant risks that has been in place for the year ended 31[st] July 2020 and up to the date of approval of the Annual Report and Financial Statements. This process is regularly reviewed by the Board. ## **THE RISK AND CONTROL FRAMEWORK** The system of internal financial control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes: - comprehensive budgeting systems with an annual budget which is reviewed and agreed by the governing body; - regular reviews by the governing body of periodic and annual financial reports which indicate financial performance against forecasts; - setting targets to measure financial and other performance; - clearly defined capital investment control guidelines; and - the adoption of formal project management disciplines where appropriate. The Settlement has an internal audit service, which operates in accordance with the requirements of the _Post 16 Audit Code of Practice._ The work of the internal audit service is informed by an analysis of the risks to which the Settlement is exposed, and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the Settlement recommendation of the Audit and Risk Committee. At least annually, the internal audit service provides the governing body with a report on internal audit activity in the Settlement. The Settlement ontrols and governance processes. ## **THE REVIEW OF EFFECTIVENESS** As Accounting Officer, the Warden has responsibility for reviewing the effectiveness of the system of internal control. Her review of the effectiveness of the system of internal control is informed by: - the work of the internal auditors; - the work of the executive managers within the Settlement who have the responsibility for the development and maintenance of the internal control framework; and - comments made by the Settlement Financial Statements auditors and the Regularity auditors in their management letters and other reports. The Warden has been advised on the implications of the result of her review of the effectiveness of the system of internal control by the Audit and Risk Committee which oversees the work of the internal auditor and other sources of assurance, and a plan to address weaknesses and ensure continuous improvement of the system is in place. 27 ## **MARY WARD SETTLEMENT STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL FOR THE YEAR ENDED 31 JULY 2020** ## **THE REVIEW OF EFFECTIVENESS** (CONTINUED) The Senior Management Team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments and reinforced by risk awareness training. The Senior Management Team and the Audit and Risk Committee also receive regular reports from the internal auditor and other sources of assurance, which include recommendations for improvement. The Audit and Risk Committee s role in this area is confined to a high-level review of the arrangements for internal control. The Committee s agenda includes a regular item for consideration of risk and control and it receives reports thereon from the Senior Management Team. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its meeting on 17[th] November 2020 the Audit and Risk Committee carried out the annual assessment for the year ended 31[st] July 2020 by considering documentation from the Senior Management Team and internal audit service, as well as reviewing events since the year end. Based on the advice of the Audit and Risk Committee and the Warden, the Board is of the opinion that the Settlement has an adequate and effective framework for governance, risk management and control, and _the effective and efficient use of resources, the solvency of the institution and the body and the safeguarding of their assets_ ## **GOING CONCERN** After making appropriate enquiries, the Board considers that the Settlement has adequate resources to continue in operational existence for the foreseeable future and until at least 31 March 2022. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Approved by order of the members of the Board on 16 March 2021 and signed on their behalf by Frances Bates Chair Suzanna Jackson Accounting Officer 28 **MARY WARD SETTLEMENT STATEMENT OF RESPONSIBILITIES OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2020** The trustees (who are also directors of the Settlement for the purposes of company law) are responsible for Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law 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 Settlement and of the income and expenditure of the Settlement for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; - observe the methods and principles in 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); make judgements and estimates that are reasonable and prudent; - state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Settlement will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Settlement 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 Settlement and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the trustees confirms that: - so far as the trustee is aware, there is no relevant audit information of which the auditor is unaware; and - the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Settlement dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Board on 16 March 2021. Frances Bates Chair 29 **REPORT TO THE MEMBERS OF MARY WARD SETTLEMENT** **INDEPENDENT** ## **Opinion** We have audited the Financial Statements of Mary Ward Settlement and its subsidiaries for the year ended 31 July 2020 which comprise the group statement of comprehensive income, the group Statement of Changes in Reserves, the group and company Balance Sheets, the group Statement of Cash Flows, the principal accounting policies, and the Notes to the Financial Statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, l Reporting Standard applicable in the UK and In our opinion, the Financial Statements: settlement and the group affairs as at 31 July 2020 and of the income and expenditure for the year then ended; and ents of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable 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 UK, including the 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: use of the going concern basis of accounting in the preparation of the Financial Statements is not appropriate; or the trustees have not disclosed in the Financial Statements any identified material uncertainties that may cast significant doubt about the ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the Financial Statements are authorised for issue. ## **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 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. 30 **INDEPENDENT AUDITOR REPORT TO THE MEMBERS OF MARY WARD SETTLEMENT** (continued) ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: the information given in the trustee the Financial Statements are prepared is consistent with the Financial Statements; and the trustee applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the trustee including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the Financial Statements are not in agreement with the accounting records and returns; or certain disclosures of trustee e not made; or we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustee trustees 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 respon 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 to cease operations, or have no realistic alternative but to do so. ## **Financial Statements** Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are 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 responsibilities. This description forms part 31 **REPORT TO THE MEMBERS OF MARY WARD SETTLEMENT** (continued) **INDEPENDENT AUDITO** ## **Use of our report** Chapter 3 of Part 16 of the those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted as a body, for our audit work, for this report, or for the opinions we have formed. Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL > Date: 25 March 2021 32 ## **MARY WARD SETTLEMENT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2020** |**Notes**
**INCOME**
Donations and fundraising
2
Income for generating
funds
3
_Income from charitable_
_activities:_
Adult education
4
Community services
5
Legal services
5
Investment income
6
Other Income
CJRS grant
7
**Total income**
**EXPENDITURE**
_Cost of raising funds:_
Generating donations and
grants
8
_Expenditure on charitable_
_activities:_
Adult education
Community services
Legal services
**Total expenditure**
9/10
**Surplus / (deficit) before**
**other gains/losses**
Gain / (loss) on
investments
**Surplus / (Deficit) before**
**tax**
Taxation
**Surplus / (Deficit) for the**
**year**
Actuarial (loss) in respect
of pension schemes
26
Transfers between funds
**Total Comprehensive**
**Income for the year**|**Unrestricted**
**Funds**
**£'000**
396
300
3,282
-
15
11|**Restricted**
**Funds**
**£'000**
67
-
63
228
811
-|**Total**
**2020**
**£'000**
463
300|**_Unrestricted_**
**_Funds_**
**_£'000_**
_431_
_303_
_3,518_
_-_
_28_
_13_|**_Restricted_**
**_Funds_**
**_£'000_**
_39_
_-_
_30_
_221_
_880_
_-_|**_Total_**
**_2019_**
**_£'000_**
_470_
_303_
_3,548_
_221_
_908_
_13_| |---|---|---|---|---|---|---| |||||||| ||||3,345|||| ||||228|||| ||||826|||| ||||11|||| |||||||| ||260
**4,264**
58
3,839
-
-
**3,897**
**367**
2
**369**
-|-
**1,169**
-
24
702
1,175
**1,901**
**(732)**
-
**(732)**
-|260|_-_|_-_|_-_| |||||||| ||||**5,433**|_4,293_|_1,170_|_5,463_| |||||_78_
_3,846_
_78_
_-_|_-_
_62_
_620_
_1,262_|_78_
_3,908_
_698_
_1,262_| |||||||| |||||||| |||||||| ||||58|||| |||||||| |||||||| ||||3,863|||| ||||702|||| ||||1,175|||| |||||||| ||||**5,798**|_4,002_|_1,944_|_5,946_| |||||_291_
_(7)_|_(774)_
_-_|_(483)_
_(7)_| ||||**(365)**|||| |||||||| ||||2|||| |||||||| ||||**(363)**|_284_
_-_|_(774)_
_-_|_(490)_
_-_| |||||||| ||||-|||| |||||||| ||**369**
-
(1,492)
**(1,123)**|**(732)**
(839)
1,492
**(79)**|**(363)**|_284_
_-_
_(858)_|_(774)_
_(85)_
_858_|_(490)_
_(85)_
_-_| |||||||| ||||(839)|||| ||||-|||| |||||||| ||||**(1,202)**|_(574)_|_(1)_|_(575)_| 33 ## **MARY WARD SETTLEMENT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2020** |Represented by:
Restricted comprehensive income
Unrestricted comprehensive
income|**Unrestricted**
**funds**
_-_
_(1,123)_
_(1,123)_|**Restricted**
**funds**
_(79)_
_-_
_(79)_|**Total**
**2020**
_(79)_
_(1,123)_
_(1,202)_|**_Unrestricted_**
**_funds_**
_-_
_(574)_
_(574)_|**_Restricted_**
**_funds_**
_(1)_
_-_
_(1)_|**_Total_**
**_2019_**
_(1)_
_(574)_
_(575)_| |---|---|---|---|---|---|---| In 2019-20, £822,000 of income and £1,175,000 expenditure from legal services was restricted; all other income and expenditure was unrestricted (2018-19: £880,000 of income and £1,262,000 expenditure was restricted). In 2019-20 £55,000 (2017-18: £30,000) adult education income, £67,000 (2018-19: £39,000) donations and fundraising income and £236,000 (2018-19: £221,000) community services income was restricted. £24,000 (2018-19: £62,000) adult education expenditure and £702,000 (2018-19: £620,000) community services expenditure, before other gains and losses, was restricted. All other income and expenditure was unrestricted. 34 ## **MARY WARD SETTLEMENT CONSOLIDATED AND CENTRE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2020** **----- Start of picture text -----**
2020 2020 2019 2019
Notes Group Centre Group Centre
INCOME
Funding body grants 4 2,431 2,431 2,289 2,289
Tuition fees and education contracts 4 914 906 1,259 1,230
Other income from charitable activities 5 1,054 - 1,129 -
Other income - rent receivable 3 300 120 303 114
Investment income 6 11 10 13 4
Donations and fundraising 2 463 113 470 104
Other income CJRS grant 260 191 - -
Total income 5,433 3,771 5,463 3,741
EXPENDITURE
Staff costs 12 4,170 2,817 4,098 2,759
Other operating expenses 11 1,334 1,068 1,550 1,055
Depreciation 14 220 141 218 141
Interest and other finance costs 13 74 66 80 73
Total expenditure 5,798 4,092 5,946 4,028
(Deficit) before other gains and losses (365) (321) (483) (287)
Gain (loss) on investments 2 - (7) -
Deficit before tax (363) (321) (490) (287)
Taxation - - - -
Deficit for the year (363) (321) (490) (287)
Actuarial loss in respect of pension schemes 26 (839) (839) (85) (85)
Total Comprehensive Income for the year (1,202) (1,160) (575) (372)
Represented by:
Restricted comprehensive income (79) 5 (1) (1)
Unrestricted comprehensive income (1,123) (1,165) (574) (371)
(1,202) (1,160) (575) (372)
**----- End of picture text -----**
35 **MARY WARD SETTLEMENT CONSOLIDATED STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 JULY 2020** |**Balance as at 1st August 2018, as originally stated**
Opening funds adjustment
**Balance as at 1st August 2018, as restated**
Deficit from the income and expenditure account
Other comprehensive income
Total comprehensive income for the year
**Balance as at 31st July 2019**
Deficit from the income and expenditure account
Other comprehensive income
Total comprehensive income for the year
**Balance as at 31st July 2020**|Group
Centre
Income and
Income and
expenditure
expenditure
account
account
£'000
**11,228**
**8,015**
(490)
(287)
(85)
(85)
(575)
(372)| |---|---| ||**10,653**
**7,643**
(363)
(321)
(839)
(839)| ||(1,202)
(1,160)| ||**9,451**
**6,483**| 36 ## **MARY WARD SETTLEMENT CONSOLIDATED AND CENTRE BALANCE SHEET AS AT 31 JULY 2020** |**Notes**
**Non current assets**
Tangible fixed assets
14
Investments
15
Long term loan to group undertaking
**Current assets**
Work in Progress
Trade and other receivables
16
Cash and cash equivalents
21
Less: Creditors - amounts falling due within
one year
17
**Net current assets**
**Total assets less current liabilities**
Creditors - amounts falling due after more
than one year
18
**Provisions**
Defined benefit obligations
20/26
**Total net assets**
**Restricted reserves**
Income and expenditure account
Other Restricted Reserves
**Unrestricted reserves**
Income and expenditure account
Other Unrestricted Reserves
Designated Reserves:
Fixed Asset Reserve
**Total reserves**||**2020**
**Group**
_12,029_
_27_
_-_
_12,056_
_122_
_1,112_
_1,723_
_2,957_
_(1,285)_
**_1,672_**
_13,728_
_(1,619)_
_(2,658)_
**_9,451_**
_11_
_2,387_
_4,068_
_2,985_
**_9,451_**|**2020**
**Centre**
_9,031_
_-_
_-_
_9,031_
_-_
_1,073_
_1,468_|**2019**
**Group**
_11,227_
_25_
_-_
_11,252_
_108_
_557_
_2,958_|**2019**
**Centre**
_8,164_
_-_
_124_| |---|---|---|---|---|---| ||||||_8,288_| ||||||_-_
_478_
_2,675_| ||||_2,541_
_(931)_
**_1,610_**
_10,641_
_(1,500)_
_(2,658)_
**_6,483_**
_9_
_3,237_
_3,237_
_-_
**_6,483_**|_3,623_
_(1,208)_
**_2,415_**
_13,667_
_(1,340)_
_(1,674)_
**_10,653_**
_14_
_3,508_
_4,068_
_3,063_
**_10,653_**|_3,153_| ||||||_(921)_| ||||||**_2,232_**| ||||||_10,520_
_(1,203)_
_(1,674)_| ||||||**_7,643_**| ||||||_12_
_3,289_
_4,342_
_-_
**_7,643_**| ||||||| ||||||| ||||||| ||||||| The Financial Statements on pages 33 to 66 were approved and authorised for issue by the Board on 16 March 2021 and signed on its behalf on that date by: Frances Bates Chair Suzanna Jackson Accounting Officer 37 ## **MARY WARD SETTLEMENT CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020** |**Notes**|**2020**
**£'000**
_(363)_
_220_
_353_
_(272)_
_(14)_|**_2019_**
**_£'000_**
_(483)_
_218_
_59_
_(278)_
_(50)_| |---|---|---| |||| |**Cash flow from operating activities**||| |Deficit for the year||| |||| |**Adjustment for non cash items**||| |Depreciation
14||| |Provision of deferred income
Release of deferred gain
(Increase) in work in progress||| |(Increase) in debtors
16|_(555)_|_(46)_| |Increase / (decrease) in creditors due within one year
17|_77_
_279_
_145_
_(11)_
_40_
_(2)_|_(37)_
_-_
_163_
_(13)_
_80_
_7_| |Increase / (decrease) in creditors due after one year
18||| |Pension costs less contributions payable (including
administration cost)
26||| |||| |**Adjustment for investing activities**||| |Investment income
6||| |Interest payable
13||| |(Gains) losses on investments||| |||| |**Net cash flow from operating activities**|**_(103)_**
_-_
_11_
_(1,022)_
**_(1,011)_**
_(40)_
_(81)_
**_(121)_**
**_(1,235)_**
_2,958_
_1,723_|**_(380)_**| |**Cash flows from investing activities**
Disposal of non-current asset investments
15
Investment income
6
Payments made to acquire fixed assets
14
**Cash flows from financing activities**
Interest paid
Repayments of amounts borrowed
**(Decrease) 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||_95_
_13_
_(510)_| |||**_(402)_**| |||_(80)_
_(114)_| |||**_(194)_**| |||**_(976)_**| |||_3,934_
_2,958_| 38 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **1 ACCOUNTING POLICIES** ## **Statement of accounting policies and estimation techniques** The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Financial Statements. ## **Basis of preparation** These Financial Statements have been prepared in accordance with the _Statement of Recommended Practice: Accounting for Further and Higher Education 2015_ (the 2015 FE HE SORP), the _College Accounts Direction for 2018/19_ and in accordance with Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) ._ The Settlement is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS102. The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Settlement accounting policies. The Financial Statements are presented in sterling and are rounded to the nearest thousand. ## **Basis of accounting** The Financial Statements are prepared in accordance with the historical cost convention as modified by the use of previous valuations as deemed cost at transition for certain non-current assets. ## **Basis of consolidation** The consolidated Financial Statements include the Adult Education Centre and its subsidiaries, the Legal Centre, and Blackfriars, both controlled by the Settlement. Control is achieved where the Settlement has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. ## **Going concern** The activities of the Settlement, together with the factors likely to affect its future development and performance are set out in the Report of the Board of Trustees. The financial position of the Settlement, its cash flow, liquidity and borrowings are described in the Financial Statements and accompanying Notes. As part of our redevelopment project and in the development of our strategy for our move to Stratford we have developed detailed financial projections which include modelling the potential impact of COVID 19 on our original plans for growth. This work has the challenges and uncertainties created by the Covid-19 pandemic, and as such it considers that the Centre has adequate resources to continue in operational existence for the foreseeable future and until at least 31 March 2022. For this reason, it continues to adopt the going concern basis in preparing the financial statements. ## **Recognition of income** Income is recognised in the period in which the Settlement has entitlement to the income and the amount can be measured reliably and it is probable that the income will be received. Income is deferred only when the Settlement has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period. 39 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **Revenue funding** Government revenue grants, including funding body recurrent grants and other grants, are accounted for under the accrual model as permitted by FRS102. Funding body recurrent grants are measured in line with best estimates for the period of what is receivable and depend on the particular income stream involved. Any under or over achievement for the Adult Skills Budget is adjusted for and reflected in the level of recurrent grant recognised in the income and expenditure account. The final grant income is normally determined with the conclusion of the year end reconciliation process with the funding body at the end of November following the year end, and the results of any funding audits. Donations and grants are recognised when the Settlement has confirmation of both the amount and settlement date. In the event of donations and grants pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation or grant is subject to conditions that require a level of performance before the Settlement is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Settlement and it is probable that those conditions will be fulfilled in the reporting period. Fee and contractual income represent the amounts receivable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time. Incomplete contracts at the balance sheet date are accounted for by reference to the fair value of the work performed and amounts due but not received at the balance sheet date are described in the Financial Statements as contractual income debtors. ## **Capital grant funding** Government capital grants are capitalised, held as deferred income and recognised in income over the expected useful life of the asset, under the accrual method permitted by FRS102. Other non-governmental, capital grants are recognised in income when the Settlement is entitled to the funds, subject to any performance related conditions being met. ## **Fee income** Income from tuition fees is stated gross of any expenditure which is not a discount and is recognised in the period for which it is received and includes all fees payable by students or their sponsors, for example the National Health Service. ## **Investment income** All income from short term deposits is credited to the income and expenditure account in the period in which it is earned on a receivable basis. Rental income is stated gross of any expenditure and is recognised in the period for which it is payable. ## **Other income** Other sundry income is recognised to the extent that it is probable that the economic benefits will flow to the Settlement and the revenue can be measured reliably. It is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 40 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **Agency arrangements** The Settlement acts as an agent in the collection and payment of various discretionary support funds. Related payments received from funding bodies and subsequent disbursements to students are excluded from the income and expenditure of the Settlement, where the Settlement is exposed to minimal risks or enjoys minimal economic benefit related to the transactions. ## **Accounting for post-employment benefits** Post-employment benefits to employees of the Settlement (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit schemes, which are contracted out of the State Second Pension (for men born on or before 6[th] April 1951 and women born on or before 6[th] April 1953). ## **Teachers' Pension Scheme** The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions Settlement in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. 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 and the contributions recognised as an expense in the income statement in the periods during which services are rendered by employees. ## **The London Pension Fund Authority** The LGPS is a funded scheme. The assets of the LGPS are measured using closing fair values. LGPS liabilities are measured using the projected unit credit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. The actuarial valuations are obtained at least triennially and are updated at each Balance Sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Comprehensive Income and comprises the interest cost on the defined obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in interest and other finance costs. Actuarial gains and losses are recognised immediately in the Statement of Comprehensive Income. ## **Short term Employment benefits** Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the Settlement. Any unused benefits are accrued and measured as the additional amount the Settlement expects to pay as a result of the unused entitlement. 41 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **Non-current assets - Tangible fixed assets** Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. ## _Land and buildings_ Freehold buildings are depreciated on a straight line basis over their expected useful economic life of 40 years. Freehold land is not depreciated as it is considered to have an infinite useful life. The Settlement has a policy of depreciating major adaptations to freehold buildings over the period of their useful economic life of 40 years. Leasehold buildings are amortised over the term of the lease as are major adaptations to leasehold buildings. Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above. The related government grants are credited to a deferred income account within creditors, and are released to the income and expenditure account over the expected useful economic life of the related asset on a systematic basis consistent with the depreciation policy. The deferred income is allocated between creditors due within one year and those due after more than one year. Non-government grants are recognised in the Statement of Comprehensive Income when the Settlement becomes entitled to them. A review of impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable. On adoption of FRS102, the Settlement followed the transitional provision to retain the book value of land and buildings, which were revalued in 1996, as deemed cost but not to adopt a policy of revaluation of these properties in the future. ## _Subsequent expenditure on existing fixed assets_ Where significant expenditure is incurred on tangible fixed assets after initial purchase, it is charged to income in the period it is incurred, unless it increases the future benefits to the Settlement, in which case it is capitalised and depreciated on the relevant basis. ## _Equipment_ Equipment costing less than £1,000 per individual item is recognised as expenditure in the period of acquisition. All other equipment is capitalised at cost. All equipment, including fixtures and fittings, is depreciated over 5 years on a straight line basis. ## **Borrowing costs** Borrowing costs are recognised as expenditure in the period in which they are incurred. ## **Leased assets** Costs in respect of operating leases are charged on a straight-line basis over the lease term. The Settlement has 2 years remaining on an operating lease, until July 2022, with Meraki Holdings on the property occupied by the Legal Centre at 10 Great Turnstile. The amount payable by the Settlement under the lease (exclusive of rates and service charge) is £425,000 per annum. 42 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **Investments** Listed investments held as non-current assets and current asset investments, which may include listed investments, are stated at fair value, with movements recognised in the Statement of Comprehensive Income. Investments comprising unquoted equity instruments are measured at fair value, estimated using a valuation technique. ## **Cash and cash equivalents** Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are, in practice, available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An investment qualifies as a cash equivalent when it has a maturity of 3 months or less from the date of acquisition. ## **Financial liabilities and equities** Financial liabilities and equity are classified according to the substance All loans, investments and short term deposits held by the Settlement are classified as basic financial instruments in accordance with FRS102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS102 requires that basic financial instruments are subsequently measured at amortised cost, however the Settlement has calculated that the difference between historical cost and amortised cost basis is not material and so these financial instruments are stated on the Balance Sheet at historical cost. Loans and investments that are payable or receivable within one year are not discounted. ## **Taxation** The Settlement 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. Accordingly, the Settlement is potentially exempt from taxation in respect of income and capital gains received within categories covered by sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. The Settlement is partially exempt in respect of Value Added Tax, so that it can only recover a minor element of VAT charged on its inputs. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature. ## **Provisions and contingent liabilities** Provisions are recognised when the Settlement, or one of its subsidiaries, has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the effect of time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the Statement of Comprehensive Income in the period that it arises. 43 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** A contingent liability arises from a past event that gives the Settlement a possible obligation whose existence will only be confirmed by the occurrence, or otherwise, of uncertain future events not wholly within the control of the Settlement. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably. Contingent liabilities are not recognised in the Balance Sheet but are disclosed in the Notes to the Financial Statements. ## **Judgements in applying accounting policies and key sources of estimation of uncertainty** In preparing these Financial Statements, management have made the following judgements: - To determine whether leases entered into by the Settlement, either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. - To determine whether there are indicators of impairment of the Settlement Factors taken in to consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and, where it is a component of a larger cashgenerating unit, the viability and expected future performance of that unit. ## **Judgements in applying accounting policies and key sources of estimation of uncertainty (continued)** Other key sources of estimation uncertainty ## Tangible fixed assets Tangible fixed assets, other than investment properties, are depreciated over their useful lives, taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and the projected disposal values. ## Local Government Pension Scheme The present value of the LGPS defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 25, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31[st] March 2016, has been used by the actuary in valuing the pension liability at 31[st] July 2010. Any difference between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. 44 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## Sale and Leaseback The Settlement sold a property in 2017-18 under a sale and leaseback agreement. The sale price was above fair value and so the excess over fair value has been treated as a gain deferred over the life of the lease. Fair value has been determined by the trustees, taking into account an independent professional valuation report from its property advisers, Gryphon Property Partners, and adjusting the value shown in the report based on current market rental values and the future use of the property. The amortisation of the deferred gain over the life of the lease is being charged on a straight line basis to rental expenditure. No legal right to set off exists, as would normally be required for this treatment under FRS102, but the trustees believe that one of the purposes of the agreement is to give rise to a gain that partly represents the rent to be paid over the term of the lease. It is therefore considered true and fair to set off the gain against the rent. ## Gifts in Kind Donated professional services are recognised as income when the Settlement has control over them, any conditions associated with the donated service having been met, the receipt of economic benefit from the use by the Settlement of the item is probable and that the economic benefit can be measured reliably. In accordance with the FE/HE SORP (FRS102), the time of general volunteers is not recognised. On receipt, donated professional services are recognised on the basis of the value of the gift to the Settlement which is the amount that the Settlement would have been willing to pay to obtain those services on the open market; a corresponding amount is then recognised in expenditure in the same period as the receipt. 45 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **2 DONATIONS AND FUNDRAISING** **----- Start of picture text -----**
2020 2020 2019 2019
Group Centre Group Centre
Income from general fundraising and donations 274 68 216 41
Income from fund raising and donations for bursary
fund 18 18 11 11
Value in kind donations
171 27 243 52
Total
463 113 470 104
3 ACTIVITIES FOR GENERATING FUNDS
2020 2020 2019 2019
Group Centre Group Centre
Rent from group company - - - 2
Rent received
300 120 303 112
Total
300 120 303 114
4A ADULT EDUCATION
2020 2020 2019 2019
Group Centre Group Centre
Grants receivable 2,431 2,431 2,289 2,289
Tuition fees
906 906 1,228 1,228
Education contracts 8 - 31 2
Total
3,345 3,337 3,548 3,519
4B FUNDING BODY GRANTS
Group and Group and
Centre Centre
2020 2019
ESFA recurrent grant 2,243 2,182
ESFA non recurrent grants 156 75
Releases of deferred capital grants 32 32
Total 2,431 2,289
**----- End of picture text -----**
46 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **4C TUITION FEES AND EDUCATION CONTRACTS** |**4C**
**TUITION FEES AND EDUCATION CONTRACTS**|||||| |---|---|---|---|---|---| |Adult education fees
Fees for FE loan supported courses
Education contracts
**Total**
**5**
**OTHER INCOME FROM CHARITABLE ACTIVITIES**
Legal fees and disbursements
Grants receivable
Legal Centre
Total - Legal Services
Other Grants receivable
**Total**
**6**
**INVESTMENT INCOME**
Bank interest received
Other investment income
**Total**|**2020**
**Group**
_764_
_142_
_8_
**_914_**
**2020**
**Group**
_361_
_464_
_826_
_228_
**_1,054_**
**2020**
**Group**
_10_
_1_
**_11_**|**2020**
**Centre**
_764_
_142_
_-_
**_906_**
**2020**
**Centre**
_-_
_-_
_-_
_-_
_-_
**2020**
**Centre**
_10_
_-_
**_10_**|**2019**
**Group**
_1,065_
_163_
_31_
**_1,259_**
**2019**
**Group**
_494_
_414_
_908_
_221_
**_1,129_**
**2019**
**Group**
_8_
_5_
**_13_**||**2019**
**Centre**
_1,065_
_163_
_2_
**_1,230_**
**2019**
**Centre**
_-_
_-_| ||||||_-_
_-_
**_-_**
**2019**
**Centre**
_4_
_-_
**_4_**| **7 OTHER INCOME** 47 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **8 COST OF RAISING FUNDS** **----- Start of picture text -----**
2020 2019
Group Group
£'000 £'000
Adult education staff costs 28 28
Adult education support costs - 15
Legal services staff costs 12 11
Legal services support costs 11 17
Other staff costs 7 7
Total 58 78
TOTAL EXPENDITURE
Total
Grant Direct Support 2020
funding costs Costs Group
£'000 £'000 £'000 £'000
Adult education 28 1,947 1,916 3,891
Legal services 23 768 407 1,198
Other 7 226 476 709
58 2,941 2,799 5,798
Total
Grant Direct Support 2019
funding costs costs Group
£'000 £'000 £'000 £'000
Adult education 42 1,913 1,995 3,950
Legal services 28 798 464 1,290
Other 8 389 309 706
78 3,100 2,768 5,946
**----- End of picture text -----**
## **9 TOTAL EXPENDITURE** 48 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **10 SUPPORT COSTS** **----- Start of picture text -----**
Total
Other Adult Legal 2020
education services Group
£'000 £'000 £'000
Staff costs 252 1,202 230 1,684
Travel and subsistence 5 1 1 7
Publicity - 36 1 37
Premises costs 89 104 110 303
Administration 23 201 42 266
Audit fee 4 34 11 49
Legal and professional fees 16 128 11 155
Bank charges - 3 1 4
Interest payable 8 66 - 74
Amortisation and depreciation 79 141 - 220
476 1,916 407 2,799
Total
Other Adult Legal 2019
education services Group
£'000 £'000 £'000
Staff costs 196 1,249 269 1,714
Travel and subsistence - 2 1 3
Publicity - 37 - 37
Premises costs - 152 112 264
Administration 102 200 57 359
Audit fee 12 39 10 61
Legal and professional fees - 98 14 112
Bank charges - 3 1 4
Interest payable - 73 - 73
Amortisation and depreciation - 141 - 141
310 1,994 464 2,768
Support costs include:
2020 2020 2019 2019
Group Centre Group Centre
remuneration:
Financial Statements audit
38 21 37 19
Regularity audit 2 2 2 2
Internal audit
9 9 12 12
Other services - - - -
**----- End of picture text -----**
49 ## **MARY WARD SETTLEMENT** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **11 OTHER OPERATING EXPENSES** |Teaching costs
Non-teaching costs
Premises costs
Total|**2020**
**Group**
_103_
_723_
_508_
**_1,334_**|**2020**
**Centre**
_103_
_555_
_410_
**_1,068_**|**2019**
**Group**
_151_
_762_
_637_
**_1,550_**|**2019**
**Centre**
_151_
_392_
_512_
**_1,055_**| |---|---|---|---|---| ## **12 STAFF COSTS** The average number of persons (including key management personnel) employed by the Settlement during the year, described as both individuals and full-time equivalents was: |Adult Education Centre staff
Legal Centre staff
Blackfriars staff|**2020**
**No.**
**fte**
_164_
_61_
_24_
_18_
_15_
_10_
**_203_**
**_89_**|**_2019_**
**_No._**
**_fte_**
_174_
_71_
_24_
_20_
_12_
_7_
**_210_**
**_98_**| |---|---|---| The difference between the number of teaching staff and the full-time equivalent is the large number of part-time tutors employed by the Mary Ward Adult Education Centre. |**_Adult Education Centre:_**
Teaching staff
Non-teaching staff|**2020**
**No.**
**fte**
_124_
_30_
_40_
_31_
**_164_**
**_61_**|**_2019_**
**_No._**
**_fte_**
_136_
_38_
_38_
_33_
**_174_**
**_71_**| |---|---|---| ## **Staff costs for the above persons** |Adult Education Centre staff
Legal Centre staff
Blackfriars staff|**2020**
**£'000**
_2,817_
_916_
_437_
_4,170_|**_2019_**
**_£'000_**
_2,759_
_990_
_349_
_4,098_| |---|---|---| 50 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **12 STAFF COSTS** (continued) |Wages and salaries
Social security costs
Other pension costs (including LGPS adjustments of
£123,000; 2018-19 £123,000)|**2020**
**Group**
_3,302_
_272_
_596_
**_4,170_**|**2020**
**Centre**
_2,118_
_170_
_529_
**_2,817_**|**2019**
**Group**
_3,301_
_267_
_530_
**_4,098_**|**2019**
**Centre**
_2,122_
_170_
_467_
**_2,759_**| |---|---|---|---|---| ## **Key management personnel** Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Settlement and are represented by the Senior Management Team, which comprised the Warden (who is also the Accounting Officer), the Assistant Chief Executive Officer (until his retirement on 31[st] March 2020), the Director of Community and Adult Education, the Director of Mary Ward Legal Centre, the Director of Blackfriars Settlement and the Director of Finance and Resources. ||**2020**|**2020**|**2019**|**2019**| |---|---|---|---|---| ||**Group**|**Centre**|**Group**|**Centre**| ||**No.**|**No.**|**No.**|**No.**| |The number of key management personnel|6|4|6|4| The number of key management personnel and other staff who received annual emoluments, excluding pension contributions but including benefits in kind, in the following ranges was: |£30,001 to £35,000 p.a
£45,001 to £50,000 p.a.
£55,001 to £60,000 p.a
£60,001 to £65,000 p.a.
£70,001 to £75,000 p.a.
£75,001 to £80,000 p.a.
£80,0001 to £90,000 p.a.|**2020**
**Group**
_-_
_2_
1
_-_
_1_
_1_
_1_
**_6_**|**2020**
**Centre**
_-_
_1_
_-_
_-_
_1_
_1_
_1_
**_4_**|**2019**
**Group**
_1_
_1_
_-_
_1_
_1_
_1_
_1_
**_6_**|**2019**
**Centre**
_-_
_1_
_1_
_1_
_1_
**_4_**| |---|---|---|---|---| 51 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **12 STAFF COSTS** (continued) Key management personal emoluments are made up as follow: |Salaries
Employers National Insurance
Pension contributions
**Total key management emoluments**|**2020**
**Group**
_389_
_47_
_58_
**_494_**|**2020**
**Centre**
_268_
_33_
_49_
**_350_**|**2019**
**Group**
_380_
_46_
_47_
**_473_**|**2019**
**Centre**
_281_
_34_
_39_
**_354_**| |---|---|---|---|---| The above emoluments include amounts payable to the Accounting Officer (who is also the highest paid officer) of: |Relationship of Accounting Officer pay and remuneration expressed as a multiple
**2020**
staff
_2.5_
of
all staff
_2.6_
**2020**
**Group and**
**Centre**
**£'000**
Salaries
_85_
**_85_**
Pension contributions
**_16_**|**_2019_**
_2.9_
_2.9_
**2019**
**Group and**
**Centre**
**£'000**
_89_
**_89_**
**_15_**| |---|---| No trustees received any payment from the Settlement, making no claims for travel and subsistence or any other expenses (2019 none). 52 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **13 INTEREST AND OTHER FINANCE COSTS** |||||**2020**
**2020**|**2019**|**2019**|**2019**|**2019**|**2019**| |---|---|---|---|---|---|---|---|---|---| |||||**Group**
**Centre**|**Group**|||**Centre**|| |On bank and government agency loans||||_40_
_32_|||_44_||_37_| ||||||||_44_||_37_| |Pension finance costs (note 25)
**Total**
**4**
**TANGIBLE FIXED ASSETS**|**THE SETTLEMENT**|||_34_
_34_
**_74_**
**_66_**||_36_
**_80_**|||_36_
**_73_**| ||||**Land and buildings**
**Equipment**|||||**Total**|| |**Cost**||**Freehold**||**Leasehold**|||||| |As at 1st August 2019|||7,750|5,517|533|||13,800|| |Additions|||1,008|-|14|||1,022|| |**As at 31st July 2020**|||**8,758**|**5,517**|**547**|||**14,822**|| |**Depreciation**|||||||||| |At 1st August 2019|||-|2,105|468|||2,573|| |Charge for the year||||201|19|||220|| |**At 31st July 2020**|||-|2,306|487|||2,793|| |**Net book value as at 31st July 2020**|||_8,758_|_3,211_|_60_|||_12,029_|| |_Net book value as at 31st July 2019_|||_7,750_|_3,412_|_65_|||_11,227_|| ## **14 TANGIBLE FIXED ASSETS THE SETTLEMENT** 53 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** |**14**
**TANGIBLE FIXED ASSETS**|
**ADULT**|**EDUCATION CENTRE**|**EDUCATION CENTRE**||| |---|---|---|---|---|---| |||**Land and buildings**||**Equipment**|**Total**| |**Cost**||**Freehold**|**Leasehold**||| |As at 1st August 2019||7,750|2,143|420|10,313| |Additions||1,008|-|-|1,008| |**As at 31st July 2020**||8,758|2,143|420|11,321| |**Depreciation**|||||| |At 1st August 2019||-|1,745|404|2,149| |Charge for the year||-|132|9|141| |**At 31st July 2020**||**-**|**1,877**|**413**|**2,290**| |**Net book value as at 31st July**|**2020**|_8,758_|_266_|_7_|_9,031_| |_Net book value as at 31st July 2019_||_7,750_|_398_|_16_|_8,164_| In 2017-18 the Settlement sold a property for sale proceeds of £9,460,000, under a sale and leaseback agreement. As stated in the accounting policies, the sale price was above fair value and so the excess over fair value has been deferred over the life of the lease. Fair value has been determined by the trustees, taking into account an independent professional valuation report from Gryphon property partners, and adjusting this based on the current market rental values and the future use of the property. The total gain on the sale was £5,319,000. Of this, £4,068,000 was recognised as a gain on disposal in 2017-18, and the remaining gain of £1,081,000 was recognised as deferred income, to be released in equal amounts over the life of the lease. The amortisation of the gain credited to rental expenditure in 2019-20 was £272,000 (2018-19: £272,000). |**15**
**INVESTMENTS**
Listed investments
Market value as at 1st August 2019
Disposals
Loss on disposal
Introduced on acquisition
Net unrealised investment gains
**Total value of portfolio as at 31st July 2020**
Cost of listed investments at 31stJuly 2019|**2020**
**Group**
_25_
_-_
_-_
_-_
_2_
_27_
_3_|**2020**
**Centre**
_-_
_-_
_-_
_-_
_-_
_-_
_-_|**2019**
**2019**
**Group**
**Centre**
_127_
_-_
_(95)_
_-_
_(7)_
_-_
_-_
_-_
_-_
_-_
_25_
_-_
_3_
_-_| |---|---|---|---| 54 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **15 INVESTMENTS** (continued) Listed investments held at 31[st] July 2020 comprised the following: |UK fixed interest
UK equities
Unlisted investments
**Total**|**2020**
**Group only**
_26_
_1_
_27_|**_2019_**
**_Group and_**
**_Centre_**
_-_
_24_
_1_
_25_| |---|---|---| At 31[st] July 2020 the Settlement held no individual holdings that were material relative to the market value of the total listed investments portfolio held at that date. ## **16 DEBTORS** |**16**
**DEBTORS**||||| |---|---|---|---|---| |Amounts falling due within one year:
Trade receivables
Other debtors|**2020**
**Group**
**£'000**
_122_
_12_
_-_
_14_
_951_|**2020**
**Centre**
**£'000**
_41_
_10_
_179_
_6_
_837_|**_2019_**
**_Group_**
**_£'000_**
_200_
_4_
_-_
_17_
_336_|**_2019_**
**_Centre_**
**_£'000_**
_9_
_2_
_193_
_12_
_262_| |Amounts owed by group undertakings||||| |VAT recoverable||||| |Prepayments and accrued income||||| |||||| ||_1,112_|_1,073_|_557_|_478_| ## **17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Bank loans and overdrafts
Trade payables
Other taxation and social security
Accrual for untaken annual leave
Other accruals and deferred income
Deferred income - government capital grants
Deferred income
profit on disposal of property
(note 13)
**Total**|**2020**
**Group**
**£'000**
_132_
_107_
_72_
_94_
_576_
_32_
_272_
_1,285_|**2020**
**Centre**
**£'000**
_107_
_102_
_45_
_80_
_245_
_32_
_272_
_931_|**_2019_**
**_Group_**
**_£'000_**
_119_
_2_
_107_
_88_
_490_
_130_
_272_
_1,208_|**_2019_**
**_Centre_**
**_£'000_**
_94_
_-_
_66_
_66_
_293_| |---|---|---|---|---| |||||_921_| 55 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** |**18 CREDITORS: AMOUNTS FALLING DUE AFTER**|**18 CREDITORS: AMOUNTS FALLING DUE AFTER**|**ONE YEAR**|||| |---|---|---|---|---|---| |||**2020**|**2020**|**_2019_**|**_2019_**| |||**Group**|**Centre**|**_Group_**|**_Centre_**| |||**£'000**|**£'000**|**_£'000_**|**_£'000_**| |Bank loans||_659_|_530_|_743_|_743_| |Deferred income - government capital grants||_705_|_705_|_64_|_64_| |Deferred income|profit on disposal of property|_265_|_265_|_533_|_533_| |**Total**||_1,619_|_1,500_|_1,340_|_1,203_| |**19 MATURITY OF DEBT**|||||| |Bank loans and overdrafts are repayable as follows:|||||| |||**2020**|**2020**|**_2019_**|**_2019_**| |||**Group**|**Centre**|**_Group_**|**_Centre_**| |||**£'000**|**£'000**|**_£'000_**|**_£'000_**| |In one year or less||_124_|_99_|_117_|_94_| |Between two and five years||_571_|_452_|_540_|_429_| |Over five years||_86_|_86_|_205_|_177_| |**Total**||_781_|_637_|_862_|_700_| A loan to the Adult Education Centre, at 5%, repayable by instalments, falling due December 2025, is secured by a fixed charge on the freehold property. A loan to Blackfriars at 5%, repayable by instalments, falling due December 2024, is secured by a fixed charge on the leasehold property. ## **20 PROVISIONS** |At 1stAugust 2019
Expenditure in the period
**As at 31st July 2020**|**Defined**
**benefit**
**obligations**
**£'000**
1,674
984
2,658|**Group and Centre**
**Other**
**Total**
**£'000**
**£'000**
-
1,674
-
984
-
2,658| |---|---|---| Defined B Government Pension Scheme. Further details are given in note 25. 56 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **21 CASH AND CASH EQUIVALENTS** ||||||**Group**||||| |---|---|---|---|---|---|---|---|---|---| ||**At 1**|||||||**At**|| ||**August**|||**Cash**||**Other**||**31 July**|| ||**2019**|||**flows**||**changes**||**2020**|| ||**£'000**|||**£'000**||**£'000**||**£'000**|| |Cash and cash equivalents|_2,958_|||1,235||-||_1,723_|| ||**_2,958_**|||**1,235**||**-**||**_1,723_**|| |**22 CAPITAL AND OTHER COMMITMENTS**||||||**Group and Centre**|||| |||||||**2020**||**_2019_**|| |||||||**£'000**||**_£'000_**|| |Commitments contracted for at 31st|||||||||| |July||||||-||_-_|| |**23 LEASE OBLIGATIONS**|||||||||| |At 31stJuly the Settlement had minimum|lease payments||under|non-cancellable operating leases as|||||| |follows:|||||||||| |||**2020**|||**2020**|**_2019_**||**_2019_**|| ||**Group**|||**Centre**||**_Group_**||**_Centre_**|| |||**£'000**||**£'000**||**_£'000_**||**_£'000_**|| |**Land and buildings**|||||||||| |Not later than one year||_426_|||_359_|_425_||_359_|| |Later than one year and not later than|||||||||| |five years||_214_|||_148_|_599_||_507_|| |Later than five years||_-_|||_-_|_-_||_-_|| |||_640_|||_507_|_1,024_||_866_|| |||**2020**|||**2020**|**_2019_**||**_2019_**|| |||**Group**||**Centre**||**_Group_**||**_Centre_**|| |||**£'000**||**£'000**||**_£'000_**||**_£'000_**|| |**Equipment**|||||||||| |Not later than one year|||_3_||_-_||_3_||_-_| |Later than one year and not later|||||||||| |than five years|||_3_||_-_||_6_||_-_| |Later than five years|||_-_||_-_||_-_||_-_| ||||_6_||_-_||_9_||_-_| 57 **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **24 CONTINGENT LIABILITIES** There are no contingent liabilities. ## **25 EVENTS AFTER THE REPORTING PERIOD** There are no events after the reporting period that would have a material impact on these Financial Statements. ## **26 DEFINED BENEFIT OBLIGATIONS** The Settlement -employment defined benefit plans: the Government Pension Scheme (LGPS) for non-teaching staff, which is managed by the London Pensions Fund Authority. Both are multi-employer defined-benefit schemes. The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest formal actuarial valuation of the TPS was 31 March 2016 and of the LGPS 31 March 2016. |**Total pension cost for the year**
Teachers
Pension Scheme: contributions paid
Local Government Pension Scheme:
Contributions paid
FRS102 (s28) charge
Charge to the Statement of Comprehensive Income
Enhanced pension charge to Statement of
Comprehensive Income
**Total Pension Cost for Year within staff costs**|**2020**
**£**
**000**
328
88
107
195
24
547|**_2019_**
**_£_**
**_000_**
_187_
_129_
_123_
_252_
_37_
_476_| |---|---|---| There were no outstanding or prepaid contributions at either the beginning or the end of the financial year. All contributions due for the year had been paid. The employees of the Legal Centre and Blackfriars belong to defined contribution pension schemes operated by the National Employers Savings Trust (NEST) and Aviva, respectively. The costs are therefore not included above. the Teachers' Pensions Regulations 2010, and, from 1[st] April 2014, by the Teachers' Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools, and teachers and lecturers in establishments of further and higher education, may be eligible for membership. Membership is automatic for full-time teachers and lecturers and from 1[st] January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. 58 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **26 DEFINED BENEFIT OBLIGATIONS** (continued) ## **T** Although members may be employed by various bodies, their retirement and other pension benefits are set out in the regulations made under the Superannuation Act 1972 and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a 'pay-as-you-go' basis - these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act. Retirement and other pension benefits are paid by public funds provided by Parliament. The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1[st] April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. ## **Valuation** The latest actuarial review of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education (DfE) in April 2019. The valuation reported total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218 billion, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196 billion, giving a notional past service deficit of £22 billion. As a result of the valuation, new employer contribution rates were set at 23.68% of pensionable pay from September 2019 onwards (compared to 16.48% during 2018/19). The Department for Education has agreed to pay a teacher pension employer contribution grant to cover the additional costs during the 2019/20 academic year. Scheme website. ## **Scheme changes** Following the Hutton report in March 2011, and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS which was implemented from 1[st] April 2015. The key provisions of the reformed scheme include: a pension based on career average earnings, an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1[st] April 2015 will be fully protected. 59 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **26 DEFINED BENEFIT OBLIGATIONS** (continued) ## **Scheme changes** (continued) In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1[st] April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall up to three and a half years outside of the 10 year protection. Regulations giving effect to a reformed Teachers' Pension Scheme came into force on 1[st] April 2014 and the reformed scheme commenced on 1[st] April 2015. The pension costs paid to TPS in the period amounted to £328,000 (2018-19: £187,000). ## **FRS102 (Section 28)** Under the definitions set out in FRS102 (28.11), the TPS is a multi-employer pension plan. The Settlement is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the Settlement has taken advantage of the exemption in FRS102 and has accounted for its contributions to the scheme as if it were a defined-contribution scheme. The Settlement has set out above the information available on the scheme and the implications for the Settlement in terms of the anticipated contribution rates. ## **Local Government Pension Scheme** The LGPS is a funded defined-benefit scheme, with the assets held in separate funds administered by the London Pension Fund Authority. The total contribution made for the year ended 31[st] July 2020 was £150,000 (2018-19: £174,000) 112,000 (2018-19: £129,000) 38,000 (2018-19: £45,000). The agreed contribution rates for future years are 14.30% for employers and range from 5.5% to 12.5% for employees, depending on salary. In addition there is an agreed, annual, contribution designed to eliminate the actual deficit. ## **Principal Actuarial Assumptions** The following information is based upon a full actuarial valuation of the fund at 31[st] March 2016 updated to 31[st] July 2020 by a qualified independent actuary |updated to 31stJuly 2020 by a qualified independent actuary||| |---|---|---| ||**At 31st July**|**_At 31st July_**| ||**2020**|**_2019_**| |Rate of increase in salaries|_3.25%_|_3.9%_| |Rate of increase for pensions in payment / inflation|_2.25%_|_2.4%_| |Discount rate for scheme liabilities|_1.35%_|_2.1%_| |Inflation assumption (CPI)|_2.25%_|_2.4%_| |Commutation of pensions to lump sums|_50%_|_50%_| 60 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **26 DEFINED BENEFIT OBLIGATIONS** (continued) ## **Principal Actuarial Assumptions** (continued) The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: ||**At 31st July**|**_At 31st July_**| |---|---|---| ||**2020**|**_2019_**| |**Retiring today**||| |Males|21.3|19.9| |Females|23.9|23.3| |**Retiring in 20 years**||| |Males|22.7|21.7| |Females|25.4|25.2| ## **Sensitivity analysis** |**Present value of defined**|**Present value of defined**|**At 31st July 2020**|_At 31st July 2019_| |---|---|---|---| |**benefit obligation**|||| |Discount rate +0.1%||_6,076_|_4,970_| |Discount rate -0.1%||_6,331_|_5,166_| |Mortality assumption|1|_6,410_|_5,248_| |year increase|||| |Mortality assumption|1|_6,001_|_4,893_| |year decrease|||| The Settlement assets and liabilities in the plan at the Balance Sheet date and the expected rates of return were: |Equities
Target Return Portfolio
Infrastructure
Property
Cash
**Total fair value of plan assets**
**Weighted average expected long term rate of return**|**Value as at**
**31st July**
**2020**
**£'000**
_1,946_
_806_
_245_
_329_
_218_
**_3,544_**
**_5.0%_**|**_Value as at_**
**_31st July_**
**_2019_**
**_£'000_**
_1,849_
_862_
_194_
_309_
_179_| |---|---|---| |||**_3,393_**| |||**_10.0%_**| 61 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **26 DEFINED BENEFIT OBLIGATIONS** (continued) The amount included in the Balance Sheet in respect of the defined benefit pension plan is as follows: |Fair value of plan assets
Present value of plan liabilities
**Net pensions liability (Note 19)**|**2020**
**£'000**
_3,544_
_(6,202)_
**_(2,658)_**|**_2019_**
**_£'000_**
_3,393_
_(5,067)_
**_(1,674)_**| |---|---|---| ## **Amounts recognised in the Statement of Comprehensive Income in respect of the plan are:** |**Amounts included in staff costs**
Employer service cost (net of employee contributions)
Past service cost
**Total operating charge**
**Amounts included in interest and other finance costs**
Expected return on pension scheme assets
Interest on pension liabilities
Administrative charge
**Pension finance costs**
**Amounts recognised in Other Comprehensive Income**
Return on assets
Experience gain arising on defined benefit obligations
Changes in assumptions
**Amounts recognised in Other Comprehensive Income**
**Movement in net defined liability during the year**
Deficit in scheme at 1st August
Movement in year:
Employer service cost (net of employee contributions)
Employer contributions
Net interest on liabilities
Administration charge
Actuarial gain
**Deficit in scheme at 31st July**||**2020**
_219_
_-_
**_219_**
_-_
_34_
_4_
**_38_**
**2020**
_(111)_
_41_
_909_
**_839_**
**2020**
_(1,674)_
_(219)_
_112_
_(34)_
_(4)_
_(839)_
**_(2,658)_**||**_2019_**
_217_
_35_
**_252_**
_153_
_(117)_
_4_
**_40_**
**_2019_**
_(220)_
_-_
_305_
**_525_**
**_2019_**
_(1,426)_
_(252)_
_129_
_(36)_
_(4)_
_(85)_
_(1,674)_| |---|---|---|---|---| |||||| |||||| |||||| |||||| 62 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **26 DEFINED BENEFIT OBLIGATIONS** (continued) |**Asset and Liability reconciliation**
**Changes in the present value of defined benefit obligations**
**Defined benefit obligations at start of period**
Current service cost
Interest cost
Contributions by Scheme participants
Change in financial assumptions
Change to demographic assumptions
Estimated benefits paid
Curtailments and settlements
**Defined benefit obligations at end of period**
**Changes in the fair value of plan assets**
**Fair value of plan assets at start of period**
Interest on plan assets
Return on plan assets
Other actuarial gains
Administration cost
Employer contributions
Contributions by Scheme participants
Benefits paid
**Fair value of plan assets at end of period**|**2020**
_5,067_
_219_
_106_
_38_
_41_
_668_
_117_
_(54)_
**_6,202_**
_3,393_
_72_
_111_
_124_
_(4)_
_112_
_38_
_(54)_
**_3,792_**|**_2019_**
_4,418_
_217_
_117_
_45_
_558_
_(253)_
_(70)_
_35_| |---|---|---| |||**_5,067_**| |||_2,992_
_81_
_220_
_-_
_(4)_
_129_
_45_
_(70)_
**_3,393_**| ## **Other information** the lowest risk category with the lowest contribution rates. Following the 2019 triennial valuation, the was increased to 16.6% with effect from 1[st] April 2020 (previously 14.3% plus an annual lump sum payment of £35,692). The requirement for an annual lump sum payment was removed with effect from 1[st] April 2020. 63 ## **MARY WARD SETTLEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **27 RELATED PARTY TRANSACTIONS** Owing to the nature of the Settlement board being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board may have an interest. All transactions involving such Settlement and normal procurement procedures. Other than those disclosed in note 11, there were no expenses paid to or on behalf of the trustees during the year (2018-19: £nil). No trustee has received any remuneration or waived any payments from the Settlement, except in their capacity as a member of staff (2018-19: £nil). |**28**
**AMOUNTS DISBURSED AS AGENT**
Funding body grants
hardship support
Funding body grants
childcare
Funding body grants
24+ advanced learning loans
Disbursed to students
Administration costs
Balance unspent as at 31st July, included in creditors|**Group and Centre**
**2020**
**_2019_**
_33_
_36_
_4_
_10_
_105_
_26_
_142_
_72_
_(93)_
_(71)_
_(1)_
_(1)_
_48_
_-_|**Group and Centre**
**2020**
**_2019_**
_33_
_36_
_4_
_10_
_105_
_26_
_142_
_72_
_(93)_
_(71)_
_(1)_
_(1)_
_48_
_-_| |---|---|---| |||_72_
_(71)_
_(1)_
_-_| Funding body grants are available solely for students. In the majority of instances, the Settlement only acts as a paying agent. In these circumstances, the grants and related disbursements are therefore excluded from the Statement of Comprehensive Income. 64 ## **MARY WARD SETTLEMENT SUMMARY OF RESULTS FOR THE YEAR ENDED 31 JULY 2020** ## **This page does not form part of the audited Financial Statements** |Adult Education Centre
Holding Company
Surplus/(Deficit)
Legal Centre
Blackfriars
Group Surplus/(Deficit)|**Unrestricted**
**funds**
**_(1,165)_**
_(1,165)_
_34_
_(76)_
_(1,207)_|**Restricted**
**funds**
**_5_**
_5_
_-_
_-_
_5_|**Total**
**2020**
**_(1,160)_**
_(1,160)_
_34_
_(76)_
_(1,202)_|**_Unrestricted_**
**_funds_**
_(371)_
_(287)_
_(159)_
_(44)_
_(574)_|**_Restricted_**
**_funds_**
_(1)_
_(1)_
_-_
_-_
_(1)_|**_Total_**
**_2019_**
_(372)_| |---|---|---|---|---|---|---| |||||||_(372)_
_(159)_
_(44)_
_(575)_| 65